DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Briefing on the Consolidated Rental Car Facility project at San Antonio International Airport
SUMMARY:
The Aviation Department will recommend moving forward with an item seeking reimbursement of $250,000 for rental car industry technical representative services. Additionally, Staff will provide a briefing on the design under consideration for the Consolidated Rental Car Facility (CONRAC) at the San Antonio International Airport. The CONRAC will allow passengers to pick up and return rental cars at one location within walking distance of both terminals.
BACKGROUND INFORMATION:
In March 2012, City Council authorized the collection of a Customer Facility Charge (CFC) on rental car transactions at the San Antonio International Airport to be used to finance a CONRAC. The CONRAC will have a customer service area, ready/return spaces for the rental vehicles, a quick-turnaround area (QTA) for washing, fueling, and light maintenance and parking spaces to replace the public parking displaced by the facility.
Rental Car Industry Technical Representative Services
The Aviation Department is seeking authorization to reimburse the rent-a-car agencies (RACs) in the amount of $250,000 for technical representative services. These services have been used at several other airports during the development, design and construction for CONRACs including San Jose, Chicago Midway, Tampa, Seattle and Austin. Typically, the technical representative:
· Provides effective value engineering
· Understands the operating requirements for rental car industry
· Recognizes the lifecycle cost implications of such a facility as a CONRAC
· Coordinates the tenant improvements
· Manages conflicts among the car rental agencies
Previously, Aviation Staff requested a reimbursement of up to $1,000,000; however, the amount has recently been reduced to $250,000. The industry representative services will be redefined to best utilize the services for the program and the Transportation and Capital Improvements Department is expected to expand its role throughout the project.
CONRAC Design Considerations
On December 16, 2013, the Aviation Department briefed City Council on the three proposed design concepts for the CONRAC:
· Concept A: Place the facility adjacent to the Hourly Parking Garage
· Concept B: Place facility closer to Terminal A
· Concept C: Place facility across from Terminals A and B.
All three concepts allow for additional RAC brands beyond the current number and will maintain the number of public parking spaces displaced by the new facility.
All three options are higher than the original amount identified, based on preliminary design estimates, in earlier council briefings due to the expanded scope for off-site fuel storage and the requisite underground piping of fuel, the need to provide for new RAC brands and the replacement of displaced public parking.
The design for the CONRAC continues to be valued engineered and fine-tuned. Discussions continue with the Finance Department and the financial consultants for the City. Once the bond sizing has been determined, staff will bring forward a specific recommendation for the increase to the CFC in mid to late 2014.
On February 19, 2014, members of the Infrastructure and Growth Council Committee were briefed on the three options, including their components and anticipated costs. The Committee approved the briefing to move forward to the full City Council for consideration.
ISSUE:
City staff will provide an informational briefing to the City Council regarding the CONRAC project.
ALTERNATIVES:
This is a staff briefing intended for informational purposes and does not require alternatives.
FISCAL IMPACT:
This is a staff briefing intended for informational purposes and does not have a fiscal impact.
RECOMMENDATION:
Aviation is recommending the reimbursement of $250,000 to the car rental agencies for the services of an industry technical representative and that Concept C be pursued as the preferred design for the CONRAC.