Chattanooga Airport officials OK no-bid parking contract with Republic

Staff File Photo by Angela Foster / Cars exit the parking lot at Chattanooga Metropolitan Airport.
Staff File Photo by Angela Foster / Cars exit the parking lot at Chattanooga Metropolitan Airport.

Fast fact

Chattanooga Metropolitan Airport added new parking this year and now has 2,000 spaces, officials said.

Chattanooga Metropolitan Airport officials have approved a no-bid contract to extend its parking arrangement with Republic Parking, but not before questions were raised about the deal.

The Airport Authority approved an extension of its agreement with Republic for three more years with a 3 percent annual increase in the company's management fee.

Some panel members asked on Monday if bids were sought from other companies and whether there were comparisons of what different airports pay in fees and receive in parking revenues.

"Not to have it is not being judicious on our part," said Authority member Farzana Khaleel about the other fees and receipts.

April Cameron, the airport's vice president of finance and administration, said Lovell Field bylaws don't require it to bid out consulting services. She said Republic, which is Canadian owned but has its headquarters in Chattanooga, has managed the airport's parking since 1974.

"We have a great relationship with the corporate guys," Cameron said. "If we have a problem, the executive vice president of airports is out here in a few moments. For an airport that focuses so much on customer service, that's a big important function for us."

Commissioner Travis Lytle said that the deal is bigger than having a local manager who comes to the site. He asked if Cameron was confident about the company's services.

Cameron said airport officials have "complete confidence" in the company's executive team that's located downtown.

Jim Hall, another panel member, spoke about Republic Parking founder and longtime chief, the late Jim Berry, who died in 2013. This year, the company was sold to Imperial Parking Corp., based in Vancouver, B.C.

As a division of the Impark brand, Republic maintained its headquarters in Chattanooga and its name on more than 770 properties the company operates for cites and airports across the country.

Hall cited the company culture Berry had fostered and Republic's flexibility and help to the airport. But, he said, Lovell Field officials should look at comparisons with other airports.

"The board should have that information," Hall said.

Cameron said the airport, which receives about $4 million annually from parking operations, is paying about $36,000 a year plus expenses to Republic. Next year, the fee is expected to go to $37,015 with expenses coming in at about $299,600, according to the airport.

Cameron said the Augusta, Ga., airport's management fee is about $10,000 more than Chattanooga's. Knoxville's airport pays about $12,000 more annually than Lovell Field, Cameron said.

"From a flat management fee, I think we're comparable," she said.

Khaleel urged local officials to find out how much parking revenues other airports collect and then a valid comparison could be made for the future.

Contact Mike Pare at 757-6318 or mpare@timesfreepress.com.

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