REPORT TO THE CITY COUNCIL
December 7, 2017
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Approve a Prepaid Financial Services Agreement between City of Fresno and Ready Credit Corporation to provide prepaid financial services at Fresno Yosemite International Airport. (Council District 4)
Body
RECOMMENDATION
Staff recommends Council authorize the Director of Aviation to execute a Prepaid Financial Services Agreement (Agreement) with Ready Credit Corporation (Ready Credit), a Nevada Corporation, to provide self-service pre-paid cash cards at Fresno Yosemite International Airport (FAT).
EXECUTIVE SUMMARY
The Agreement will enable Ready Credit to provide two (2) self-service kiosks in the Terminal that will convert cash to a Visa or MasterCard prepaid card for a flat fee of Five Dollars ($5.00). This customer service enhancement supports the airlines ongoing effort to reduce cash transactions at airports throughout the United States. The term of the Agreement is for an initial five years with one five-year option.
BACKGROUND
Airlines at FAT approached Airport management with a request to bring self-service kiosks for customers to be able to convert cash into a credit card. This service will help the airlines and ultimately the traveling public by, (i) speeding up passenger processing, (ii) reducing cash handling costs from the airlines, and, (iii) improving traveler convenience and security since cards are globally accepted. Ready Credit provides the mentioned above service.
In August 2017, Airports Department solicited for Request for Letters of Interest from companies to operate prepaid financial services in the Terminal, publishing the request on industry websites. Ready Credit was the sole respondent. In California they provide this type of service in airport terminals at San Francisco, Oakland, San Diego and Sacramento.
The Agreement has been reviewed and approved as to form by the City Attorney’s office.
ENVIRONMENTAL FINDINGS
This is not a “project” pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference is not applicable to this project pursuant to Fresno Municipal Code 4-109(b)(3).
FISCAL IMPACT
The minimum annual revenue from this Agreement shall be a concession fee of 10% of gross revenues or a Minimum Monthly Guarantee equivalent to one thousand two hundred dollars ($1,200), whichever is greater. Total revenue for the initial five-year term is estimated to be a minimum of six thousand dollars ($6,000). All revenues generated from the Agreement will be deposited into the Airport Enterprise Fund and contribute to the operation and maintenance of FAT. There is no impact to the General Fund from this item.
Attachment:
- Ready Credit Financial Services Agreement