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Committee backs amended SFO curbside management contract, trims multi‑year cap
Summary
The Budget and Finance Committee recommended approval of a curbside management contract at San Francisco International Airport with 5 Star Parking Management (FSP) but amended the measure to limit the initial term authorization to $10,450,000 rather than the $26 million requested; staff said much of the higher cost is tied to the opening of the new Terminal 2.
The Budget and Finance Committee on Feb. 1 recommended that the full Board approve a new curbside management contract at San Francisco International Airport with 5 Star Parking Management (FSP), but cut the initial authorization to $10,450,000 and required the airport to return for approval of any optional-year extensions.
Kathy Weidner of San Francisco International Airport told the committee the contract covers an initial two‑and‑a‑half year term and that 5 Star emerged as the preferred contractor after a request‑for‑proposals process. She said the airport sought a longer term for continuity on the curb and that 5 Star scored higher than the incumbent and proposed a slightly lower management fee.
Deborah Newman of the Budget Analyst’s Office recommended reducing the requested $26 million cap to just $10,450,000 for the initial period. Newman said projected monthly costs under the proposed agreement show increases tied largely to the opening of the new Terminal 2 and cited specific line items: "the cost for salaries will increase 19.2%... Fringe benefits, 21.6%... An overall increase of about 41%." The analyst recommended approval as amended and asked that the airport return to the Board before exercising any optional one‑year extensions.
Supervisors raised process questions after the apparent protest from the incumbent provider. Airport staff said the incumbent, Daja, submitted a letter of protest and the city attorney’s office reviewed the RFP evaluation sheets and "found [the protest] to be without merit," according to airport testimony. Airport staff also said most contractor‑variable costs are confined to management fees and that the airport sets zones and policy covering shared‑ride vans, so the curbside contractor's role is operational rather than policy‑making.
Public commenters offered brief support for repairs and service continuity. A supervisor moved approval as amended and the committee took the motion "without objection," forwarding the amended resolution to the Board with the budget analyst's recommendation.
The committee’s action limits the Board vote to authorization for the initial contract term and requires additional Board approval if the airport later seeks to extend the agreement for any optional years.
