Consent 1.E.
Regular City Council Meeting
- Meeting Date:
- 12/17/2018
- TITLE
- Amendment 1 to Airport Wireless Network Concession Agreement with Boingo Wireless
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Airport
Presentation:
No
PROBLEM/ISSUE STATEMENT
Following an RFP process, the City Council approved the current Wireless Network Concession Agreement (Wi-Fi Agreement) with Boingo Wireless on October 26, 2013. The five-year term of the Agreement is scheduled to end on December 31, 2018. The Agreement provides the City an opportunity to renew the Agreement for two additional one-year periods. Wi-Fi coverage will be required in the new space created by the Terminal Building Expansion Project. Since design on this major expansion project is not yet complete, not enough detail is available at this time, to include in a new RFP for prospective Wi-Fi concession bidders. Additionally, the Airport intends to include a cellular offload component and free public Wi-Fi in the next Wi-Fi Concession RFP. To allow time to complete the details of the design for the Terminal Building Expansion Project and further explore the cellular offload requirements so that both can be included in a later RFP process, the Airport and Boingo desire to extend the Agreement. Additionally, during the extension of the Agreement, the Airport would like to have Boingo provide free Wi-Fi for the Terminal. The two parties desire to exercise both of the one-year renewal options at this time, thereby extending the expiration date of the Agreement to December 31, 2020. In the near future the Agreement will be further negotiated and amended to include the terms of the free public Wi-Fi during the two-year extension. Boingo desires the two-year term, so they can negotiate a new agreement with their circuit provider, CenturyLink, which will then have an impact on the terms of the free public Wi-Fi amendment. Additionally, several language changes have also been incorporated in this Amendment to update language, as required by updates to the Airport's Federal grant assurances.
ALTERNATIVES ANALYZED
City Council may:
- Approve Amendment 1 to the Wi-Fi Agreement with Boingo Wireless to renew the Agreement and extend the term for two additional years, with a new expiration date of December 31, 2020; or
- Disapprove Amendment 1 to the Wi-Fi Agreement with Boingo Wireless to renew the Agreement and extend the term for two additional years, and advise staff on how to proceed.
FINANCIAL IMPACT
There is no cost to the Airport associated with this Amendment and the City will continue to receive 20% of the revenues generated on the Wi-Fi Concession at the Airport, which has averaged $2,500 to $4,000 per year. This will likely change with a future Amendment with Boingo, once negotiations on the terms for the free public Wi-Fi service are completed.
RECOMMENDATION
Staff recommends that the City Council approve Amendment 1 to the Wi-Fi Agreement with Boingo Wireless to renew the Agreement and extend the term for two additional years, with a new expiration date of December 31, 2020.