City of San Antonio - File #: 17-5842

• File #: 17-5842
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 12/7/2017
• Posting Language: An Ordinance authorizing an amendment to the advertising concessions agreement with Clear Channel Outdoor, Inc. at the San Antonio International Airport to extend the term for six months through April 30, 2018 and alter the revenue methodology to a direct monthly percentage of gross sales without a minimum guarantee requirement to mitigate revenue risk to the vendor as a result of the short-term lease extension. [Peter Zanoni, Deputy City Manager; Russell Handy, Director, Aviation]
• Indexes: Aviation Concessions, Aviation Other

Date	Ver.	Action By	Action	Result
12/7/2017	1	City Council A Session	adopted	Pass

DEPARTMENT: Aviation


DEPARTMENT HEAD: Russell J. Handy


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Amendment to Advertising Concession Agreement with Clear Channel Outdoor, Inc. at the San Antonio International Airport


SUMMARY:

This Ordinance will authorize an amendment to the advertising concessions agreement with Clear Channel Outdoor, Inc. (Clear Channel) for advertising services for the San Antonio International Airport (SAT). The amendment will extend the agreement, currently operating under a holdover provision, through April 30, 2018 and, to mitigate revenue risk to the vendor of a short-term lease extension, alter the revenue methodology to a direct monthly percentage of gross sales without a minimum guarantee requirement.

This amendment was requested by the Aviation Department and agreed to by Clear Channel to ensure the continuity of soliciting and executing advertising services in the months leading up to and throughout the NCAA Men's Basketball Championship. This continuity will ensure a quality advertising product for customers and maximize revenue for Clear Channel and the Aviation Department.


BACKGROUND INFORMATION:

Advertising programs in airports assist in generating non-airline revenue and provides passengers and airport employees with information on services from local and national vendors. In May of 2007, City Council authorized an advertising concession agreement with Clear Channel Outdoor, Inc. for advertising services for the San Antonio International Airport for a term of 10 years and a minimum annual guarantee (MAG) of $912,000.00 through an Ordinance No. 2007-05-17-0563. Under the agreement, Clear Channel and the Aviation Department identified 91 locations that the advertising firm could use for advertisement. Typical advertisements are backlit billboard on a terminal wall or on a digital display for a flight information screen. The agreement expired on May 31, 2017 and has continued operation under a month-to-month ...