ORDINANCE approving and authorizing Amendment No. 5 to Parking Operations and Management Concession Agreement between the City of Houston and NEW SOUTH PARKING - TEXAS for the Houston Airport System; amending Ordinance 2014-180 to increase the maximum contract amount - $513,059.00 - Enterprise Fund - DISTRICTS B - DAVIS and I - GALLEGOS

RECOMMENDATION:

Enact an ordinance approving and authorizing Amendment No. 5 to the Parking Operations and Management Concession Agreement between the City of Houston and New South Parking – Texas.

SPECIFIC EXPLANATION:
On December 8, 1999, a five (5) year agreement was awarded to Central Parking of Texas, Inc. for operations and management of parking facilities at George Bush Intercontinental Airport/Houston (IAH), William P. Hobby Airport (HOU) and Ellington Airport (EFD). The agreement was subsequently assigned to New South Parking-Texas (New South Parking), a joint venture of Central Parking and Global Parking Systems, LLC.

On August 24, 2004, Amendment No. 1 extended the term of the agreement by three (3) years plus two (2) one-year options in exchange for additional capital investment of $2.5 million.

On December 9, 2009, Amendment No. 2 extended the agreement to 2015, with two (2) additional one-year options, in exchange for approximately $3 million in additional capital investment, the agreement now expires on January 28th, 2017.

On November 30, 2011, Amendment No. 3 was approved to fund and implement the Parking Ambassador program, Valet Parking and other customer service enhancements.

On March 5, 2014, Amendment No. 4 was approved to include the operation and management of the new IAH ecopark 2 lot on Will Clayton Parkway and expand covered parking at the IAH ecopark lot on JFK Boulevard.

The Houston Airport System (HAS) recommends approval of Amendment No. 5 to the agreement to provide for additional scope of work which includes the following:

1. All parking management and operation functions of the new 3,000 space HOU parking garage scheduled to open in November 2015. This includes the maintenance of the garage and revenue control equipment, as well as providing liability insurance coverage.

2. Replacement of ambassador carts at IAH and HOU.

The anticipated additional expenses are as follows:

Management and operation of new HOU garage        $336,903
Replacement of Ambassador carts                              $176,156
Total                                                                             $513,059

The term of the agreement remains the same and will expire on January 28, 2017. HAS plans to advertise an RFP for a new parking operations and management agreement in the first quarter of 2016.

Currently, New South Parking is achieving 33.01% ACDBE participation on a 12% goal at IAH and 30.00% on a 3% goal at HOU.

Director's Signature:

______________________________________

Mario C. Diaz

Houston Airport System