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HomeMy WebLinkAboutResolution - 2019-R0423 - Ricondo & Associates - 09/19/2019 Resolution No. 2019-RO423 Item No. 6.24 November 19, 2019 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an additional Scope of Services in connection with Professional Services Contract 12869, Resolution No. 2016-R0179, On-Call Consulting Services at Lubbock Preston Smith International Airport, between the City of Lubbock and Ricondo & Associates, Inc., to conduct a Parking Requirements and Parking Product Development Plan, and related documents. Said Scope of Services is attached hereto, and incorporated into Professional Services Contract 12869 as "Exhibit A-1 — Scope of Work, Additional" as though set forth in full therein, and further incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on November 19,ci2019 DANIEL M. POPE, MA OR ATTEST: eb cca Garza, City S cretar APPROVED AS TO CONTENT: G A/ C&M dlL�_ Kelly Ca Zpbell, A. .E. Executive Director of Aviation APPROV- FORM: Mitchell Satterwhite, First Assistant City Attorney ccdocs/RES.Scope of Services-On-call consulting services November 4,2019 Resolution No. 2019-RO423 IIIIIIII RICONDO October 31, 2019 Lubbock Preston Smith International Airport Public Parking Requirements and Parking Product Development Plan - Scope of Services Prepared for: City of Lubbock Prepared by: RICONDO LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 1. SCOPE OF SERVICES The City of Lubbock,Texas(the City)has requested that Ricondo&Associates, Inc.,(Ricondo) provide the following scope of work to conduct a Parking Requirements and Parking Product Development Plan for Lubbock Preston Smith International Airport(the Airport). The purpose of the project would be to calculate the public parking space requirements based on current data to be provided by the City and to recommend value-added public parking product offerings and rate structures that are justifiable based on quantitative analysis and best-practice comparisons within the industry and comparable to those offered at peer airports. For purposes of this study, it is assumed that the physical locations for any public parking development would be within the current public parking footprints however, this study will provide recommendations on products, parking rates and development plans that work within that overall footprint. Furthermore, it is anticipated that a detailed analysis of rental car parking and facility needs would not be required for this study. 1.1 CONDUCT PROJECT KICKOFF MEETING 1.1.1 TASK DESCRIPTION The project kickoff meeting will serve as an opportunity for the Ricondo Project Manager (PM) and key Team members to confirm project processes,objectives,and timelines with the City's PM and other key internal decision- makers. Ricondo's goals for the kickoff meeting include establishing a clear understanding of the City's expectations, confirmation of project roles and responsibilities, and establishment of communication protocols and frequency. It is anticipated that this meeting will cover: ® Confirmation and identification of the City Project Team composition, roles, and communication protocols. ® Understanding of overall project objectives and the City's expectations. • Review of overall project timeline and deliverables. ® Review of critical steps in the study(milestones, deliverables). a Discussion of the City's desired study outcomes. In Discussion of existing parking operations and demands related to patterns and seasonality. 13 Desired proportion of parking spaces provided close-in versus rernote and structured versus surface. 0 Discussion of the competitive dynamics within the parking system in the vicinity of the airport. ® Discussion of existing parking product offerings and staff views related to new and improvement offerings. ® Existing and future parking pricing options, including the availability of historical pricing data that would help to define the effect of pricing changes on the elasticity of demand. ■ Confirmation of target planning horizons. In Discussion of strategy and timing for engagement of key stakeholders(if necessary). ® Review of existing public data availability and the need for updating/collecting supplemental data, if necessary. Public Parking Requirements and Parking Product Development Plan 11 I scope of Services LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 1.1.2 ASSUMPTIONS e Ricondo's PM, Officer-in-Charge (OIC), and/or task leader, will meet in person with the City PM and other relevant City personnel. ■ Ricondo will prepare kickoff meeting agenda and generate a meeting Summary. ■ Analysis of rental car facilities are not required for this study. 1.2 OBTAIN AND REVIEW PUBLIC PARKING DATA 1.2.1 TASK DESCRIPTION The goal of this task is to provide sufficient background information and data to assist in determining existing demand and in preparing models used to project future requirements and revenues for all public parking facilities. The following public parking data will be provided by the City or its parking operator for use in this study to determine existing and future demand of the Parking Garage, Short Term Parking, Long Term Parking, and Shelter Park: • Current aviation dernand forecasts depicting annual originating enplanements. ® Historical monthly originating passenger statistics for the last 4 years. ■ Current physical capacity(spaces)of each parking product and/or facility. ® Current rate structure as well as any rate changes that have occurred over the past 4 years, by product/facility. ■ Monthly transactions and revenue for the last 4 years, by product/facility. ® Daily peak occupancy counts by product/facility for the most recent 1 year. ® Daily overnight occupancy counts by product/facility for the most recent 1 year. o Hourly entry and exit reports by pl•ocluct/facility for the peak month of the most recent year(if daily peak occupancy counts are not available). m Parking transactions and revenues by duration category (e.g., 0-1 hour, 1-2 hours, 2-3 hours, etc.) on a monthly basis for the most recent 1 year. ■ Parking facility closure and diversion data for individual facilities for 4 years, if available. ■ Any information available pertaining to cost elasticity of demand for parking at the Airport including, but not limited to, changes in utilization data for periods preceding and following parking rate changes at the Airport. ■ Any other prior reports or analyses related to public parking demand and revenue from the last 4 years. ® Any available information on off-airport parking competitors (location, capacity, rate, occupancy, fees charged by the Airport,etc.) 1.2.2 ASSUMPTIONS ® Requested data/files will be provided in an electronic format. * All data will be provided by the City unless described otherwise. PUNIC Parking Requirements and Parking Product Development Plan 1 2 1 Scope of Services LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 1.3 CONDUCT BENCHMARKING OF PEER AIRPORTS 1.3.1 TASK DESCRIPTION Ricondo will prepare a summary of potential parking products based on professional experience and derived from benchmarking exercises conducted for other airports and available industry research (e.g., ACI Parking Database). Ricondo will conduct limited additional Supplemental research, if needed, to refine or expand on existing benchmarking information. Benchmarking will include: ® Parking rates at peer airports by product(walkable and shuttled,covered and uncovered, etc.) • Parking products provided which iwy include premier parking spaces, vehicle services, advanced reservation, reserved space programs, corporate parking programs, Sustained marketing/promotion programs (e.g., coLrponing, sweepstakes), and parking wayfinding systems, among other products and services. 1.3.2 ASSUMPTIONS ® Benchmarking data will be derived from available data sources and through sLlpplemental telephone conversations with peer airports, as needed. In-person interviews with peer airports will not be conducted as part of this study. 1.4 PREPARE ESTIMATED BASELINE PUBLIC PARKING DEMANDS AND REVENUES 1.4.1 TASK DESCRIPTION Ricondo will develop a public parking demand and revenue model that reflects recent parking operations(measured in terms of parking transactions, parking space Occupancy, and revenues) to determine when each parking facility will reach effective and physical capacity as well as the resulting impact on future revenLre. Once calibrated to base year conditions, the model will be used to forecast future on-Airport public parking demand and revenues. Key tasks will include the following: ia Assess Historical Peak Day and Overnight Parking Demands—Using data collected previously, Ricondo would analyze historical daily peak and overnight parking demand for the most recent 365 day period to identify the seasonality of parking demands and the typical design-day parking demand by facility. ® Prepare and Calibrate Baseline Public Parking Dernand/Revenue Model—Ricondo would customize its parking demand and revenue model to analyze existing activity and to forecast future Baseline parking activity for this study. The model uses transaction data by incremental parking duration (0 to 30 minutes, 30 minutes to 1 hOUr, 1 to 2 hours, etc.) to identify and summarize parking demands and revenues by parking facility for the following duration categories: short-duration (0 to 3 hours), mid-duration (3 to 24 hours),and long-clUration(greater than 24 hours). The model would be calibrated by facility to the existing (2014) design day conditions by replicating the existing short-duration and long-duration components of demand accommodated in each facility during the typical design-day period as developed in the previous subtask. The parking demand and revenue model would then be used to predict parking demand and revenue derived from each on-airport parking facility for the future approved design-day demand conditions assuming that existing parking facilities will remain in place without changes. Specifically, the model will provide an estimate of the year-by-year parking demands, by facility,during the typical busy day of the peak month,compare parking demands by facility with available capacity,and estimate the diversion of parking dernand by facility based on existing or future parking constraints that may evolve over the Public Parking Requirements and Parking Product Development Plan 1 3 1 Scope of Services I,f I' LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 planning horizon. The model will also be used to project annual parking revenue for the Baseline condition. The parking elasticity assumptions affecting demand between products will be derived from review of historical parking rate changes, if available, otherwise industry standard assumptions will be used. W Prepare Baseline Public Parking Requirernents—Existing and future design-day on-airport public parking demand would be converted to parking "requirements,"which includes an additional level-of-service based "buffer"of parking spaces such that a parking facility is not 100 percent occupied on the typical design day. The additional buffer would be confirmed with the City staff but would typically include an additional '10 percent over the actual demand for short-duration, high-turnover parking facilities(i.e.,Short Term Parking) and an additional 5 percent over the actual demand for long-duration, low-turnover parking facilities (i.e., Long Term Parking, Parking Garage, and Shelter Park). Identify Anticipated Public Parking Deficiencies—The estimated Baseline demands for public parking would be compared with available spaces and to identify estimated deficiencies (or surplus) in available spaces over the course of the Planning horizon. 1.4.2 ASSUMPTIONS ® Key assumptions are defined in the task description. * Ricondo will work with the City as well as rely on our experience at similar airports to develop assumptions regarding the displacement of parking demand between products. These scenarios will outline the allocation of demand that is turned away from a specific parking facility when it reaches capacity. No passenger surveys or analysis determining the predicted allocation of displaced demand will be conducted. 1.5 DEVELOP ALTERNATIVE PARKING RATES, PRODUCTS AND DEVELOPMENT STRATEGIES 1.5.1 TASK DESCRIPTION A high-level review of alternative parking development plans, parking products and parking rates and pricing schemes would be developed as alternative"packages"and analyzed to assess the financial viability of each option. Key tasks would include the following: R Identify Potential Rates and Products—Prepare a surnmary of potential parking products based on professional experience and benchmarking, including rates and products from peer airports. Parking rate scenarios will be developed based on an hourly and maximum daily rate basis. ® Prepare Parking Facility Plans—Ricondo will prepare a series of alternative parking development plans that are intended to address the deficiencies in parking supply identified in the previous task for the planning horizon. The concept plans will be depicted at a high-level color-coded format to depict parking by functional type (e.g., short-term, long-term, economy) and facility type (e.g., surface, structure). It is anticipated that up to three alternative parking development plans will be prepared. ® Define Draft Parking Development and Product Plans—Develop potential parking development and products plans that integrate best-practice parking products, parking rates, and facility operations in a holistic manner for each of the three facility development options described previously. Future alternatives would include the following: — Baseline Condition—A Baseline condition would include a continuation of the existing parking products program but with nominal rate increases(based on inflation). The model would be used to calculate future Public Parking Requirements and Parking Product Development Plan 1 4 1 Scope of Services LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 annual parking revenue in consideration of available product supply and the effects of diversion among parking products due to anticipated facility constraints. This condition will form the basis of comparison With future development and product plan option "packages"described below. — Development and Product Plan Alternative"Packages"—The parking demand and revenue model would be used to reflect the capacities by product provided for up to three parking development and product plan alternative"packages" and the likely parking rates for these products. — Confirm the Baseline and Alternative"Packages"—Ricondo would consult with City staff during a web-based meeting to review the draft Baseline and Alternative "Packages" prior to beginning detailed analysis in the next step. M Prepare Assessment of Parking Development and Products Plan—Ricondo would undertake focused evaluations the Baseline and up to three alternative parking development and product plan or strategy "packages"defined previously. For each selected strategic opportunity, Ricondo would conduct an analysis to further refine the strategy and to develop a business or operational case for each strategy(such as a rate change for example). This assessment will include analyzing impacts on Current operations and facilities (including potential cannibalization); and other factors pertinent to a specific opportunity. The analysis conducted under this work element will utilize the strategic parking rate and revenue model developed previously to assess the financial outcomes of the various parking strategies. Specific steps required for targeted opportunity evaluations would be tailored to the specific opportunity, but are expected to include one or more of the following: -- Assess financial returns resulting from rate changes, over time, for the current mix of parking products at the Airport. This assessment will include various assumptions regarding when, and how often, rates for each of the parking products are increased,with gross and net parking revenue estimated annually. Analyze the financial viability of each alternative "package" using the parking rate and revenue model to project parking revenues—gross and marginal—that would be generated by the proposed new or enhanced parking product and estimate the loss in revenues (cannibalization), if any, from other parking products offered at the Airport that would serve as a "donor product" to the new or enhanced parking product. If a new facility is included in an option "package," a high-level construction cost estimate will be included using industry standard benchmarks or a similar projects comparison. 1.5.2 ASSUMPTIONS m Key assumptions are provided in the task descriptions above. ® Detailed cost estimates, O&M cost analyses, or cost benefit analyses for any potential new parking facility are not anticipated in this task. 1.6 CONDUCT WORKSHOP TO REVIEW AND SELECT PREFERRED PLAN COMPONENTS 1.6.1 TASK DESCRIPTION Ricondo would prepare for and attend a workshop with the City staff to review the Baseline and Alternative development, product and rate "packages" and to select a recomlTiencled approach. Key steps would include the following: Public Parking Requirements and Parking Product Development Plan 1 5 1 Scope of Services 11 LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 61 Ricondo would prepare a preliminary list of evaluation criteria that would be used to evaluate the alternatives. The criteria and evaluation process would be structured to identify the strengths and weaknesses associated with the alternative "packages". The information would be reviewed with Authority staff and key stakeholders to revise and confirm the evaluation criteria. Upon confirmation of the evaluation criteria, Ricondo will prepare supporting analysis and an evaluation matrix used to compare the alternatives. Likely components of the matrix WOUlcl include(a)revenue analysis;(b)customer service implications related to the allocation of parking close-in versus remote, surface versus structure, off-airport versus on-airport, number of passengers required to use shuttle buses; (c) consistency with future airport development plans; and (d) constructability, if applicable. Riconclo would meet with the City staff and other stakeholders to review the alternatives, select desired components of the plans, and identify refinements. 1.6.2 ASSUMPTIONS Includes one two-person trip to the Airport for the workshop. 1.7 DEVELOP THE RECOMMENDED PARKING STRATEGY AND IMPLEMENTATION PLAN 1.7.1 TASK DESCRIPTION Upon completion of the review meeting, Ricondo would prepare a consolidated implementation plan that reflects the comments received during the evaluation workshop and that addresses the needs for public parking clemands over the course of the planning horizon. Key steps would include the following: Develop a final parking strategy for parking development, products and rate plan that integrates desired and best-practices parking products, parking rates, and facility operations for the proposed parking system. The goal will be to develop an overall plan that incorporates the new (and potential future) public parking capacity, improves market share and remains competitive with off-airport parking operators, and maintains or improves customer levels of service. Summarize the recommendations into a concise implementation plan that outlines the overall study recommendations and the key steps involved in implementing the recommended plan. 1.7.2 ASSUMPTIONS Key assumptions are provided in the task descriptions above. 1.8 DOCUMENTATION 1.8.1 TASK DESCRIPTION Ricondo would prepare a report documenting the study findings, recommendations and proposed implementation plan. The documentation would include the following * Prepare a Draft Report clocumenting the findings of the study and the recommended public parking development and products plan. n Prepare a draft Executive Summary highlighting the proposed implementation plan * Upon receipt of comments from the City prepare a Final Report and a final Executive Summary. Public Parking Requirements and Parking Product Development Plan 16 1 Scope of Services LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 1.8.2 ASSUMPTIONS The draft and final report will be provided in PDF format. 2. BUDGET AND SCHEDULE Ricondo proposes to perform the above-described services for a fee not to exceed $94,280, illClUding approved out-of-pocket expenses, which are reimbursable at cost, as presented in Table 1 and otherwise in accordance with the terms and conditions of Ricondo's contract with the City. Riconclo anticipates that the study will commence immediately Upon receipt of a Notice to Proceed (NTP) from the City, and the total task duration is anticipated to be approximately three months from that point. Public Parking Requirements and Parking Product Development Plan 17 1 Scope of Services LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT OCTOBER 2019 3. SIGNATURES CITY OF LUBBOCK Ricondo &Associates, Inc. 7 Daniel M. Pope, Mayor Bonnie A. Ossege,Vice President ATTEST: Rebe,_ Garza, City SecreJ6a,-\j7 APPROVED AS TO CONTENT: Kelly Campbell, Executive Director of Aviation APPROVED AS TO Mitchell SatterNj ite, First Assistant City Attorney Public Parking Requirements and Parking Product Development Plan 8 Scope of Services Table 1 labollFee Es—,S—q Micenda&l—Qtesf-Public Parting Study ODIMgf4tr. S 3)0 3 2!0 S 201 S 199 S Is. f "I labnr Estimate IHaurel Fee Estimate(SI hl_in0 Senior Technical T.k Dewdpti0n Dll..e. Dieaeter Cenwltant Cenwltanl Consultant SPecialin T-1 Labor E.pemee Andre Damn Mao— lawn Garman licblitn Icllltan Hubb- Pilar M.flitt 1D Public Parking Regeirementsaml Par2mg Pwdm Development Pun Total 66 0 120 4. 160 24 022 f 90.200 S 0,000 S 91,2.0 11 Conduet P,alect 2X4.11 l0eeti� lr.l 2= 5 2a f . . S 12 DbUm and Rnr Publc Forking Data i "I 0 S 8628 S 1.3 Conduct Benchmarking of Peer Airports 9 0 l: S 62.10 S 6,700 t.4 Prepare Estimated M,ohne Fublic Parking Demand,and Revenues 15 0 26 S 13032 f 10,032 I.S D—lop Atl-1a Parking Ratet Pwduets-d 0ry 1,V.-Strat,9 � 16 d :1 0 6! 1 11,140 f 13.160 1.6 Canductalcikrbep to 0.er,cw and 5<len PrefeutA Plan Campcnenn 20 0 P 0 31 S 11,500 f L000 f 13,900 t.T Develeplhe Rewmmended Parking5lrategy anrtrmplementanep Plan 20 0 0 31 k :am f 10,160 1.0 Duumenration 16 11 a 16 P 0 S IB 320 3 10.,020 .eroc<R.cendo L--l<t.Inc.000er 2019 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2019-558363 Ricondo &Associates, Inc. Chicago, IL United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is 11105/2019 being filed. City of Lubbock Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a description of the services,goods,or other property to be provided under the contract. 12869 Professional services for airport parking capacity planning and parking product development planning 4 Nature of interest Name of Interested Party City,State,Country(place of business) (check applicable) Controlling Intermediary Hanly, Paul Chicago, IL United States X Ricondo, Pedro Miami, FL United States X Trezise, R. Douglas Chicago, IL United States X Ricondo, Ramon Chicago, IL United States X Ricondo&Associates Employee Stock Ownership Plan Chicago, IL United States X 5 Check only if there is NO Interested Party. ❑ 6 UNSWORN DECLARATION My name is Darrin McKenna and my dale of birth is My address is 515 King Street Alexandria VA 22314 U.S. (street) (city) {state) (zip code) (country) I declare under penalty of perjury that the foregoing is true and correct. Executed in Fairfax County, State of Virginia on the 6 day of November ,20 19 (month) (year) Signature of authorize agent of contracting business entity (Declarant) Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.1.3a6aaf7d