city of San Antonio


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File #: 21-1564   
Type: Real Property Lease
In control: City Council A Session
On agenda: 4/8/2021
Posting Language: Ordinance approving a concession agreement with Prepango, LLC for vending machines and/or kiosks for the San Antonio International Airport for a term of five years. The agreement will generate 15% or 20% of gross sales in revenue for the Airport Operating and Maintenance Fund pending the type of vending machine or kiosk. [Jeff Coyle, Assistant City Manager; Jesus Saenz, Director, Aviation]
Indexes: Aviation Concessions, Aviation Contract
Attachments: 1. Agreement, 2. Contracts Disclosure Form, 3. Map, 4. Draft Ordinance, 5. Ordinance 2021-04-08-0226
DEPARTMENT: Aviation


DEPARTMENT HEAD: Jesus H. Saenz, Jr., IAP


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Concession Agreement for Vending Machines at the San Antonio International Airport


SUMMARY:

This ordinance approves a five-year concession agreement with Prepango, LLC for vending machines and/or kiosks at the San Antonio International Airport for a term of five years. Prepango will install a personal protective equipment and sound machine vending machine/kiosk in each terminal, generating either 15% or 20% of gross sales in revenue for the Airport Operating and Maintenance Fund. The agreement allows additional vending machines to be added to the agreement with the written consent of the Director. The agreement became effective on February 1, 2021.


BACKGROUND INFORMATION:

The Aviation Department has utilized vending machines for more than five years to provide passengers additional options for the purchase of items ranging from audio to cosmetics that they may or may not find within retail stores at the airport.

In July 2020, the City entered into a short-term lease agreement with Prepango, LLC to install a personal protective equipment (PPE) vending machines in each terminal at the San Antonio International Airport. These vending machines sell item such as facial masks and hand sanitizers and are located pre-security. The Aviation Department would like to continue utilizing vending machine throughout the terminal facilities. The Aviation Department would also like to utilize the sound machines - vending machines that sell headphones and other audio equipment-that Prepango offers.

Prepango also offers vending machines and/or kiosks that sell KYLIE cosmetics, LEGO toys, and pharmacy items. The concession agreement will allow the Aviation Director to approve additional vending machines or kiosks to be installed at the San Antonio International Airport as passenger levels grow.


ISSUE:

This agreement will authorize a concession agreeme...

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