REPORT TO THE CITY COUNCIL
FROM: HENRY THOMPSON, Director of Aviation
Airports Department
BY: JOSHUA CASTELLANO-GONZALEZ, Assistant Director of Finance and Administration
Airports Department
MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
SUBJECT
Title
Actions related to the First Amendment to the Support and Maintenance Agreement with Amadeus Airport IT Americas, Inc.:
1. Adopt a finding of categorical exemption pursuant to Section 15301/Class 1, and the commonsense exemption, under the California Environmental Quality Act (CEQA) Guidelines;
2. Approve the First Amendment to the Support and Maintenance Agreement with Amadeus Airport IT Americas, Inc., for (i) the addition of Biometrics Passenger Processing for international flights to the airline common use system at FAT with an initial cost of $66,952.82 and annual ongoing costs of $10,559.28 and (ii) the addition of Common Use Self Service (CUSS) kiosks for ticketing and baggage tagging to the airline common use system at Fresno Yosemite International Airport with an initial fee of $256,361.65 and annual ongoing operational costs of $51,083.88 for the remaining term of the Support and Maintenance. The total additional costs during the remaining term of the agreement are a one-time payment of $323,314.47, and annual costs of $61,643.16. (Council District 4)
Body
RECOMMENDATION
Staff recommends that City Adopt a Finding of Categorical Exemption pursuant to Section 15301/Class 1, and the commonsense exemption, under the California Environmental Quality Act (CEQA) Guidelines; approve the First Amendment to the Maintenance and Technical Support for shared use facilities and Resource Management Software (Contract) Agreement at Fresno Yosemite International Airport (FAT) for (i) the addition of Biometrics Passenger Processing for international flights to the airline common use system at FAT with an initial cost of $66,952.82 and annual ongoing costs of $10,559.28 and (ii) the addition of Common Use Self Service (CUSS) kiosks for ticketing and baggage tagging to the airline common use system at Fresno Yosemite International Airport with an initial fee of $256,361.65 and annual ongoing operational costs of $51,083.88 for the remaining term of the Support and Maintenance. The total additional costs during the remaining term of the agreement are a one-time payment of $323,314.47, and annual costs of $61,643.16; and authorize the City Manager or designee to execute all documents related to the Amadeus Airport IT Americas, Inc. agreements.
EXECUTIVE SUMMARY
FAT currently has eight (8) airlines operating on the common use system for ticketing and baggage tags. The current shared use platform was initially installed by Amadeus at the passenger check-in/ticketing counters in 2008 and was extended to the passenger gates in 2013. The airline shared use platform has proven to be an invaluable operational tool for FAT and the airlines and has extended the useful life of the terminal facility. The initial Contract also includes Airport Operational Database (AODB); Resource Management System (RMS); Enterprise Service Bus (ESB); DATAHUB /OAG; Flight Information Display System (FIDS); WebFIDS; EASE/EASE-FX - EASE™ (Extended Airline System Environment) Extended Airline System Environment; Hardware Warranty; Maintenance; 24/7 Help Desk, and Two (2) full-time, on-site staff: Manager and Engineer (Support and Services) at FAT’s terminal building.
The current shared use contract was approved in May 2023, with a term of 5 years, expiring in 2028. The purpose of the First Amendment of the Support Agreement is to add Biometrics Passenger Processing for departing international passengers and Common Use Self Service (CUSS) kiosks for departing passengers.
BACKGROUND
The Amadeus System (System) at FAT has been instrumental in accommodating the growth of airline service without having to physically expand the facility and has resulted in new efficiencies by enabling airlines to operate out of vacant counters, which is essential during peak processing times, and to accommodate additional flights. This capability has the direct effect of expanding the capacity of the facility by making it more efficient and sustainable, instead of investing in capital infrastructure and physical facility expansion at a much greater and long-term cost. The Amadeus System also allows new airlines to begin operations at FAT without costly and time-consuming changes to existing infrastructure. The System was proven invaluable when Southwest Airlines (Southwest) started its service in 2021, as the CUSS provided a seamless and cost-effective startup.
Amadeus is the only company that provides a shared use system whereby the airlines can operate in their native Departure Control System (DCS) environment. This type of system is not available from any other vendor. Without this capability, airlines would need to revert to using their proprietary systems, which is no longer possible or desirable because FAT does not have sufficient counter or gate space to accommodate all flights and airlines without making a significant and expensive expansion to the terminal facility. There are other forms of shared use systems, but they do not allow the airlines to operate from their native DCS environment. These other systems are specifically designed for use primarily at large international terminals where hundreds of flights occur per week and airlines interface with multiple foreign destinations.
Due to the specialized nature of this shared use platform, Council authorized the Airports Department (Department) to negotiate the current contracts which included System licensing, hardware, software, and support thereof (for check-in/ticketing counters and FIDS) directly with Amadeus in February 2008. This occurred after the Department had performed an extensive solicitation and search process and Amadeus was the only company that was (and still is) able to provide a shared use system of this type. In April 2008, the Council approved the initial Amadeus contract.
The purpose of this First Amendment is to include the integration of two new Amadeus products into FAT’s Common Use Operations System. The first product is the Biometrics for departing international passengers at FAT. Biometrics via facial scan will soon be a requirement of the Customs and Border Protection (CBP). Under this Amendment, FAT will add Biometrics to two of the passengers boarding gates (i.e., Jet Bridges 11 and 15), which are currently being utilized by the airlines that offer direct international service. It will additionally, be added to the new Concourse B gates (B1 and B2) upon completion of the terminal expansion project known as FATforward.
The second product is the Common Use Self Service (CUSS) kiosks for departing passengers. Currently, most airlines offer a proprietary self-service kiosk in the airport lobby to allow passengers to check-in their luggage and obtain a printed boarding pass. The purpose of the kiosk is to speed up the passenger check-in by bypassing the standard queuing line. The CUSS kiosks will put all the airlines on the same kiosk system that is connected to the current Common Use ticketing system found throughout FAT’s terminal building. Additionally, it will make all kiosks the same across FAT for a seamless operation. Thus, eliminating the need for proprietary technology from each airline. The CUSS will allow all airlines to operate at the same capacity and provide for an onsite technician (through Amadeus) to troubleshoot issues and prevent a specific airline’s kiosk(s) from going down at one time. Airlines currently operating at FAT have agreed to the installation of these kiosks and to bear the costs for operating these kiosks, as the operating costs will be built into the airlines’ rates and charges model.
The City Manager has previously approved Amadeus as a Uniquely Qualified Vendor for these services.
This Amendment is consistent with the previously executed Amadeus Contract and has been reviewed and approved as to form by the City Attorney’s Office. The City’s Risk Management Division has reviewed and approved insurance and indemnity provisions.
ENVIRONMENTAL FINDINGS
This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in CEQA Guidelines, Section 15301 for existing facilities, as it involves no alteration of existing facilities, with no expansion of use. Furthermore, the “Common Sense” exception to set forth in the CEQA Guidelines, Section 150601(b)(3) apply to this project.
FISCAL IMPACT
Funding for the additional costs over the remaining term of the Support Agreement shall be as follows: one-time payment of $66,952.82, as stated in the First Amendment for Biometrics and one-time payment of $256,361.65, as stated in the First Amendment for the CUSS kiosks. For the remaining term of the Support Agreement there will be an additional payment in annual installments of $10,559.28 and $51,083.88. Initial Funding for year one is included in the Airports Department FY26 budget. Funding for subsequent years will be incorporated to the Airlines rates and charges. There is no impact to the General Fund from this action.
Attachments:
Categorial Exemption
First Amendment to Amadeus Support Agreement
Original Executed Amadeus Support Agreement