The Killeen-Fort Hood Regional Airport will forfeit about $18,000 per year to upgrade its parking revenue control system, but officials said the cost of parking will not change.
Matt Van Valkenburgh, aviation director, said the airport entered into a lease agreement for its parking revenue control system in 2010, but the company went out of business.
The equipment is owned by the airport and was installed in 2004 when the facility opened.
Van Valkenburgh said since the company no longer exists, its products, software and hardware updates were discontinued, leaving the facility with outdated equipment.
“Our equipment is aging and it has outlived its useful life,” he said. “We’re experiencing some issues. ... Staff reviewed five parking revenue control systems. We called various airports to get feedback, we looked at various system costs, customer amenities, equipment support, software support and the upgrade kit of the system.”
The city entered into an agreement with Republic Parking System Inc., which will replace the equipment with newer technology for $398,000.
“It meets all the airport’s requirements; it’s the most cost-effective system we can get,” Van Valkenburgh said. “It’s the most flexible system to meet all of our demands, and the price is right.”
Money from the airport’s parking lot escrow account will contribute $106,000 to the project. Van Valkenburgh said $2,000 per month is put into the escrow account and money has flowed into the account for “many years.”
The revenue loss comes from financing money for the rest of the system. The airport will reimburse Republic Parking over a 71-month period at a 3 percent interest rate, about $18,000 per year, or 2.7 percent of parking revenues.
Hilary Shine, city spokeswoman, said the airport collected about $698,000 in parking revenue over the past 12 months. She said revenue goes into the airport’s enterprise fund and is used for operational expenses.
According to a Killeen City Council memorandum, “intangible benefits from a more reliable and user-friendly system should result in some revenue that had otherwise been lost due to equipment issues in the past.”