DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Authorization for Reimbursement for a Rental Car Technical Representative and Recognition of City as Manager of the CONRAC Project
SUMMARY:
This Ordinance authorizes the reimbursement of funds in an amount not-to-exceed $250,000.00 to the rental car agencies (RACs) for industry technical representative services for the Consolidated Rental Car Facility (CONRAC) project at the San Antonio International Airport and recognizes the City as the Project Manager for the CONRAC project.
The reimbursement will be funded from the Customer Facility Charge (CFC), which is collected by the airport-area rental car companies for the associated planning, design and construction of the CONRAC.
BACKGROUND INFORMATION:
On March 8, 2012, City Council authorized the implementation of the CFC and approved the Rental Car CFC Policy through Ordinance 2012-03-08-0173. CFC funds are collected by the rental car companies and remitted to the airport. The collected funds can then be used for the costs for the planning, design, construction, and project financing, including a rental car technical representative for the CONRAC.
An Industry Technical Representative has been used at several airports during the development, design, construction and project close-out for CONRACs, including San Jose, Chicago Midway, Tampa, Seattle and Austin. The technical representative:
· Provides effective value engineering
· Understands the operating requirements of the rental car industry
· Recognizes the lifecycle cost implications of such a facility as the CONRAC
· Coordinates the tenant improvements
· Manages conflicts among the car rental agencies
On February 19, 2014, members of the Infrastructure and Growth Council Committee were briefed on the CONRAC project, which included the reimbursement. The Committee approved the briefing to move forward to the full City Council for consideration. Staff briefed the City Council during "B" Session on March 5, 2014 to reimburse the rental car firms for industry technical representative services for the CONRAC in the amount of $250,000.00. Previously, Staff had requested a reimbursement of up to $1,000,000.00; however, the amount has recently been reduced to $250,000.00. 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. The Council action also recognizes the City of San Antonio as the manager for the CONRAC project and all members of the project team. City Council moved the item go to the full City Council for a vote in April 2014.
ISSUE:
City Council approval is required to authorize reimbursement agreements.
ALTERNATIVES:
City Council could elect to not authorize the reimbursement of the rental car firms with CFCs for the rental car technical representative services for the CONRAC project. However, this action could result in the absence of a technical representative that would be an important part of the City's design and construction team effort.
FISCAL IMPACT:
Funds in the amount not-to-exceed $250,000.00 from the Consolidated Rental Car Project, funded by CFC funds, will be authorized for this action.
RECOMMENDATION:
Staff recommends the authorization to reimburse the rental car agencies in an amount not-to-exceed $250,000.00, funded by CFC funds, for an industry technical representative involved in the design and construction of the CONRAC located at the San Antonio International Airport.