LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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PENSACOLA INTERNATIONAL AIRPORT - PARKING RATE ADJUSTMENT
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RECOMMENDATION:
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That City Council approve a $2.00 increase to the to the daily maximum parking rate at the Pensacola International Airport garage and surface lots and a $1.00 increase to the daily maximum parking rate at the Pensacola International Airport economy lots, effective July 1, 2023.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Parking represents the largest single revenue source at Pensacola International Airport. In 2022, parking made up 38% of all non-airline revenue and 27% of all operating revenue. With the Airport’s ongoing strategy to maximize non-airline revenue sources to minimize costs to airlines, it is crucial to review parking rates on a periodic basis.
In February 2023, the Airport’s public parking facility operator, LAZ Florida Parking, LLC, reviewed the parking rate structure in place at Pensacola International Airport. Based on their review of rates at PNS and at other airports in the region, staff is proposing a $2.00 increase in the daily maximum rate at the garage and surface lots and a $1.00 increase in the daily maximum rate at economy lots. LAZ estimates that by increasing the daily maximum rate, an additional $1,532,155 in annual revenue will be generated. As outlined in their report, even with this increase, parking rates will continue to remain competitive with adjacent airports. In addition, as a courtesy to our customers, the Airport offers one-hour free parking at select locations. Below shows the current rate and the proposed rate.
With passenger numbers continuing to break historic records, the garage and main surface parking are full and close on almost a daily basis. Therefore, all patrons arriving at certain times are routinely directed to the Airport’s economy parking areas. In 2024, the Airport plans to begin development of additional economy parking to accommodate the needs of our residents and visitors. The proposed site for the additional parking is currently used during the holiday travel season as an overflow parking lot. The grass lot, which is located on Tippin Avenue just past Economy Lot 2, will be revamped to allow revenue-controlled access year-round. Once open, the increase in rates will help fund the additional cost associated with having the overflow parking lot open full time, including utility cost, additional shuttle service and maintenance cost. The additional revenue will also help fund the increased cost associated with parking due to inflation and current market conditions.
PRIOR ACTION:
July 11, 1991 - City Council adjusted the parking rates at the Pensacola Regional Airport to reflect the following. Short Term: $0.75/half hr.; $10.00/day and Long Term: $1.00 first 2 hours; $0.75 each additional 1/2 hour; $4.00/day; Flight Crew: $20/month.
April 10, 1997 - City Council approved parking rates for the future parking garage and modified surface parking at the airport to reflect the following. Surface: $2.00 first 2 hours; $1.00 each additional hour; $6.00/day and Garage: $1.00/half hr.; $7.50/day; Flight Crew: $20/month.
September 11, 2003 - City Council adjusted the parking rates at the Pensacola Regional Airport to reflect the following. Surface Lot: $2.00/hr.; $6.50/day Garage: $1.00/half hr.; $8.00/day Flight Crew: $20.00/month.
February 12, 2009 - City Council adjusted the parking rates at the Pensacola Gulf Coast Regional Airport to reflect the following. Shuttle Lot: $2.00/hr.; $8.50/day Surface Lot: $2.00/hr.; $8.50/day Garage: $1.00/half hr.; $10.50/day Flight Crew: $20.00/month.
March 23, 2013 - Mayoral approval to adjust the parking rates for Pensacola International Airport to reflect the following. Economy Lots: $2.00/hr.; $6.00/day Surface Lot: $2.00/hr.; $9.00/day Garage: $1.00/half hr.; $11.00/day Flight Crew: $90/month.
April 23, 2020 - City Council approve the establishment of a rate of $10 for the first five hours and $15 per day for valet parking services at the Pensacola International Airport.
April 22, 2019 - City Council adjusted the parking rates at the Pensacola International Airport to reflect the following. Economy Lots: $2.00/hr.; $8.00/day Surface Lot: $2.00/hr.; $9.00/day Garage: $1.00/half hr.; $11.00/day Flight Crew: $90/month.
FUNDING:
N/A
FINANCIAL IMPACT:
The rate adjustment is estimated to provide an additional $1,532,155 annually in non-airline revenue through parking concessions. This estimated increase could be impacted by Airline activity as well as any increase or decrease of the enplanement numbers.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
5/11/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) Laz Parking, Rate Change Survey
2) Parking Diagram
PRESENTATION: No end