DEPARTMENT: Aviation
DEPARTMENT HEAD: Noel T. Jones
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Amendment to the Downtown Hotel Shuttle Service Concession agreement for the San Antonio International Airport
SUMMARY:
This Ordinance will extend the term of the Downtown Hotel Shuttle Service Concession agreement with City Tours, Inc. at the San Antonio International Airport (SAT) by one year, which will become effective June 1, 2016. The minimum annual guarantee is $180,000.00.
BACKGROUND INFORMATION:
On March 3, 2011 City Council authorized a five-year concession agreement for Downtown Hotel Shuttle Services with City Tours, Inc. The service began in June 2011.
On February 9, 2016, the Aviation Department briefed members of the Economic and Human Development Council Committee on the solicitation for a shuttle service concession agreement that would serve as the exclusive shuttle service for SAT to the downtown area including hotels, motels, Convention Center and other area attractions. At the meeting, Council members requested additional information on the impact of Transportation Network Companies (Uber and Lyft) on the shuttle service, a survey of area hotels' support for a shuttle service and other information related to transportation options at the airport. The Aviation Department provided members of the EHDC with this information on May 3, 2016. At the meeting it was agreed that Aviation staff would negotiate with City Tours, Inc. to extend the agreement for up to a year on mutually agreeable terms.
Staff request Council approval of an extension and amendment of the Downtown Hotel Shuttle Service Concession Agreement with the following terms:
* A minimum annual guarantee of $180,000.00 with the minimum monthly guarantee in the amount of $15,000.00. The payment date of the monthly amount is the 10th day of the month.
* A percentage fee of 13% of cumulative year-to-date gross revenues (ticket sales, baggage ...
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