Consideration and Approval of Contract:  Cooperative Purchase Contract with Designa Access Corporation for the Airport Paid Parking System

1. Approve the Cooperative Purchase Contract with Designa Access Corporation, through the National Cooperative Purchasing Alliance (NCPA) Cooperative Contract #05-59, for the purchase, installation, and support of a parking access and revenue control solution for the Flagstaff Pulliam Airport in the amount of $244,037.00, plus applicable taxes.
2. Authorize the City Manager to execute all necessary documents.

Construction of the new parking lot at the Flagstaff Pulliam Airport is nearing completion. This contract provides for purchase of the paid parking system and equipment required to move to a paid parking model for both the new and existing aiport parking lots. Paid parking fees have already been approved by Council. The contract with Designa for the paid parking system  was procured through an NCPA Region 14, Cooperative Contract #05-59 to supply materials and/or services (“Agency Contract”), which was awarded through a competitive and open procurement process.

Currently, parking at the airport is free and the City is constructing additional public parking space at the airport to meet parking needs which are in dire need. Adoption of a paid parking program is expected to cover the cost of construction of the new parking lot, fund operational costs for the program, and reduce reliance on the City's General Fund by helping the Flagstaff Pulliam Airport operate as an Enterprise Fund.  

Priority Based Budget Key Community Priorities and Objectives Carbon Neutrality Plan

• DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.

Regional Plan

• December 28, 2021 Council Meeting: Council adopted Ordinance No. 2021-23, establishing airport parking fees effective January 28, 2022.
• November 23, 2021 Work Session: Discussion on the proposed airport parking rates.
• March 16, 2021 Council Meeting: Council awarded a contract for the construction of a new airport parking lot.
• April 21, 2020 Council Meeting: Staff presented design concepts for the new airport parking lot and provided information on a paid parking system.
• December 10, 2019 Work Session: Staff provided an update on the temporary parking lot solutions and plans for developing additional airport parking including a paid parking system. 

1. Award the Cooperative Purchase Contract for an Airport Paid Parking System using the NCPA Region 14, Cooperative Contract #05-59 in an amount not to exceed $244,037.00; or
2. Do not award the Airport Paid Parking System contract; or
3. Advise staff to conduct a formal solicitation process in lieu of utilizing the NCPA Region 14, Cooperative Contract.

Passenger enplanements at the Flagstaff Pulliam Airport have grown significantly in recent years with the addition of new routes and a second airline resulting in a 72% increase in travelers. In 2020, during the height of the COVID pandemic, over 86,000 passengers continued flying out of Flagstaff Pulliam Airport after record enplanements of 123,957 in 2019. In 2021, enplanements were once again near record numbers with of 118,453 passengers boarding flights. This increase in passengers has added to the need to increase parking capacity, and the construction of the second parking lot will be completed in 2022. The new parking lot will add 413 parking spaces for travelers, more than doubling the airport's parking capacity. This additional space will allow temporary closures of the existing lot for maintenance and improvements. 

Several other factors have contributed to parking issues at the airport even before the increase in enplanements. These issues have included abandoned vehicles, people using the lot for vehicle storage, and vehicles parking at the terminal for events not related to the airport. 

A paid parking model will help ensure parking is available to the traveling public by allowing for increased parking enforcement. It will also create a long term revenue source for the airport to recover the cost of construction, provide for ongoing operational and maintenance, and help the airport become more self-sustaining as an enterprise fund.

Purchasing staff reviewed the Agency (NCPA) Cooperative Contract and have determined it to be acceptable in scope with City needs. Purchasing also confirmed the Agency Cooperative Contract to be current and valid through July 2024. 





 

This purchase is budgeted within the Airport Fund in account numbers 221-07-222-3504-0-4443 and 221-07-221-XXXX-0-4229.

While the Airport Fund operates as an Enterprise type fund, there is often a reliance on the General Fund to assist funding of annual budget requests. The goal with the implementation of a paid parking system is to help the Airport to become self-sustaining through annual revenues. This approach is critical to enable the Airport to make operational and capital decisions without competing for limited revenues on an annual basis. The Airport has benefited from recent federal funding during the pandemic which has reduced reliance on the General Fund, however these funds are one-time benefits. In the Fiscal Year 2021-2022, the Airport Fund shows a $450,000 annual ongoing need beginning in Fiscal Year 2024-2025. The parking rates proposed will allow for the Airport fund to eliminate its revenue reliance on the General Fund.  

 

Staff posted a Notice of Proposed New Rates or Fees Related to Airport Parking on October 22, 2021 which provided a detailed analysis of the proposed airport parking rates. This notice provided the dates proposed for the Council consideration of airport parking rates and the Management Services phone number. This notice was also posed on the City of Flagstaff Facebook page.

Airport staff presented a discussion on airport parking rates to the Airport Commission on October 17, 2021, to the Flagstaff Chamber of Commerce on November 14, 2021, and to the Tourism Commission on November 23, 2021.