TITLE
Recommendation to authorize City Manager to enter into (i) an agreement between the City of Long Beach and SecurityPoint Media for advertising at the Long Beach Airport for one five-year term, with up to five one-year renewal options, at the discretion of the City Manager, and (ii) authorize City Manager to enter into a Memorandum of Understanding between the City of Long Beach and the Transportation Security Administration, to run concurrent with the SecurityPoint Media agreement, for the use of screening bins provided by SecurityPoint Media for passenger screening at the Long Beach Airport. (District 5)
DISCUSSION
The Transportation Security Administration (TSA) is responsible for passenger screening at the Long Beach Airport (Airport). An important part of the screening process includes outbound passengers placing certain items they are carrying, such as metal objects and shoes, into plastic bins for separate x-ray screening. The TSA is the entity responsible for providing these containers for passenger use.
The Airport was recently introduced by the TSA to SecurityPoint Media, a company with a screening bin product called SecureTray. The SecureTray program consists of three products: the actual bins, a carrier designed to ease transportation to and replenishment of the bins at the screening locations, and the divesting tables used to load and unload these personal items.
SecurityPoint Media offered its SecureTray program to the Airport at no cost; reimbursement to the company will consist solely of sales of advertising that will appear on the inside bottom of each bin. The company will return 15 percent of the advertising revenues to the Airport, though the primary benefit of the system will be to the Airport's customers.
The advantages of the SecureTray system include a well-maintained screening system, with bins cleaned on a regular basis (and replaced when warranted), an easy-to-use screening bin carrier system and new custom-designed tables for use by passengers to load and unload the individual bins.
The Long Beach Airport is currently constructing a new Passenger Concourse, with completion anticipated for December 2012. This long-awaited structure will replace the current temporary
boarding lounge facilities. It is hoped that, with City Council approval, the new SecureTray system will be in place for the grand opening of the concourse.
The Memorandum of Understanding (MOU) between the TSA and the Airport is required by the TSA in order to document TSA's right of approval for any company providing such services and TSA's commitment to allow such company into the secure checkpoint area, once approval has been given.
This matter was reviewed by Deputy City Attorney Richard Anthony on October 30, 2012, and Budget Management Officer Victoria Bell on October 17, 2012.
TIMING CONSIDERATIONS
City Council action on this matter is requested on November 13, 2012, in order to provide SecurityPoint Media, the Airport and the TSA sufficient time to install the SecureTray system in the new Concourse and to train employees in the system's proper use.
FISCAL IMPACT
Implementation of the new concession agreement will result in an estimated first-year advertising revenue of $3,700 to the Airport Enterprise Fund (EF 320).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER