DEPARTMENT: Aviation
DEPARTMENT HEAD: Noel T. Jones
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Concession Agreement for FuelRod Kits at the San Antonio International Airport
SUMMARY:
This Ordinance will authorize a concession agreement with Tricopian, LLC (FuelRod) for FuelRod Kiosks at the San Antonio International Airport. Initially, the firm will install six kiosks in the airport. FuelRod Kiosks provide travelers, at a cost, with a convenient portable charging alternative for their smartphones and tablets. FuelRod will pay the Aviation Department a percentage rent rate of 12% on its gross revenue and is expected to generate $8,640.00 annually. The initial term is for one year with the option to renew for two one-year terms.
BACKGROUND INFORMATION:
FuelRod will install and maintain six kiosks in the San Antonio International Airport to dispense FuelRod kits and exchange individual FuelRods. Passengers will purchase a FuelRod kit at the kiosk which will include a fully charged “ready to go” FuelRod, a USB to Micro-USB cable and adaptors. The FuelRod charges a smartphone one time, and provides about a 30% charge for a tablet. Once used, the FuelRod can be recharged through the USB connection or could be exchanged at the Kiosk for a full-charged FuelRod.
FuelRod will provide the capital equipment, stock, installation and maintenance of the kiosks. The firm will also pay for the cost of running a new circuit where needed to provide an electrical outlet to a chosen location. The initial locations include:
• Terminal A: Three kiosks will be located post-security
• Terminal B: Two kiosks will be located post-security
• Terminal B: One Kiosk will be located pre-security in the baggage claim area.
The Aviation Director or his designee will have the authority to increase the number of kiosks or move the kiosks as needed.
ISSUE:
City Council authorization is required for concession agreements.
ALTERNATIVES:
City Council could elect to not approve the concession agreement for FuelRod kiosks at the airport. However, the kiosks provide passengers with an option to purchase a portable charging kit for their smartphone and tablet. The agreement is also expected to generate $8,640.00 annually in non-airline revenue.
FISCAL IMPACT:
FuelRod will pay the Aviation Department a percentage rent rate of 12% on its gross revenue and is expected to generate $8,640.00 annually which will be deposited into the Airport Operating and Maintenance Fund.
RECOMMENDATION:
Staff recommends City Council approve the concession agreement for FuelRod kiosks at the San Antonio International Airport.