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Good morning.
Good morning morning time is now 10:41 a.m.
meaning of the commute
Meeting of the committee on Aviation is called to order.
we were
We will.
We will now have a row.
We will now have a roll call to establish a quorum.
German
terminal
Terminal she has present vice-chairman Curtis.
all the way
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ottoman Robbins
Call Raymond Robinson.
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Alderman Napolitano
12 min
there are twelve members per
12 members present including myself ladies and gentlemen,
we have a quorum for our first in-person meeting of the
committee on Aviation in more than 43 months.
you can clap for the
You can clap for that.
my
miter saw
My understanding we have nobody signed up for public
comment.
put
first
birth chart
First order of business is the approval of the September
2022 and June 2022 monthly rule 45 reports for the
committee on Aviation. Is there no questions. Can I get a
motion to recommend approval this report has some moves
calling
all in favor of
All in favor, say aye.
all the
all opposed
if it
Infinity chair the eyes have it.
I don't.
item num
Item number two is an ordinance.
there
02
tooth
230002 to 13 an extension and amendment of concessionaire
covid-19 economic relief agreement at Chicago O'Hare
International Airport and Midway International Airport.
for this I
for this item
For this item. We have a substitute that you all should
have received. Can I get emotional except to substitute?
Urban Soul moves all in favor, say aye.
Call opposed.
Call Post opinion that you are the eyes have it with the
substitute accepted substitute ordinance 20 to 30 0 0 2 2 1
3 is now before us.
stop
do before
Stop before I invite to missionary to take the Mike couple
things. I wanted to share with all of you.
Bearpaw
Airport concessionaires is you all know we're severely
impacted by the onset of the covid-19 pandemic which nearly
put many of them out of business and cause many firms
interested in developing new concessions to put those plans
on hold.
men
many concessions
Many concessionaires had just signed agreements with plans
for build-outs in 2020 only for passenger traffic to dry up
with the onset of this unforeseen Global Health crisis.
I'm proud to say.
I'm proud to say that this committee was able to work with
the commissioner and Chicago Department of aviation in 2020
to pass an ordinance establishing a relief program to help
our Airport concessionaires weather that horrible storm.
please
these relief measures
These relief measures including rent assistance reduce
requirements for security deposits or letters of credit
relaxed operating space requirements and authorizations for
operational Alternatives, like kiosks or food carts.
or if
Are pork and see?
Airport concessionaire has employed thousands of Chicagoans
at both O'Hare and Midway international airports across all
50 words, and I'm proud to see these businesses continue to
succeed for the good of our communities and those who live
there.
and Beyond
And Beyond concessionaires are airports directly employ
more than 50,000 people and contribute a total of 70
billion dollars to the Chicagoland economy and supported
more than 700,000 jobs.
that
That speaks.
That speaks to the importance of this department this
Committee in ordinances like this year today.
these how
He's helped win.
He's helped to ensure their continued vitality and growth
of our two international airports are two economic engines
are job centers for this great City.
today's cancer
today's concession
Today's concessions ordinance gives no authority to
commissioner Jaimee Reed and her Partners here at City Hall
to renew contracts at O'Hare on a limited basis while
extending existing agreement at Midway International
Airport for three years.
all the
all of the
All of this prepares Midway to complete the revamp of its
concessions.
over the neck
over the next year
Altima
ultimately allows for the rebuilding of all concession
space at O'Hare is Terminal 1 and 3 and to ensure a
positive passenger experience continues as construction on
the terminal area plan gets underway.
I'll
I look forward to collaborating with members of this
committee and commission re on this important work and I
think Mary Johnson and the Chicago Department of Aviation
for their partnership on these important effort.
Commission
commissioner read
Commissioner. Thank you. Thank you Turman with me today. I
have a bitter who is our chief commercial officer and
dietary of towns who is responsible for legislative IGA
matters as well as Outreach. Good morning. Thank you for
having us today from day 1 Mary Johnson has stressed the
importance of increasing opportunities for diverse
businesses of all sizes and how critical it is to leverage.
Like I sent her is like our airports to connect young
people to New Opportunities. We are continually inspired by
the commitment to this work. We find and Leadership under
chairman O'Shea, vice-chairman Curtis in the entire
committee on Aviation as well as all members of the city
council, and we thank you all for your support as well know
the CDA comes before you today to review a substitute
concessions or
set
FedEx
Aesthetics and slim
aesthetic sense limited relief to the diverse team of can
concessionaires at Chicago's airport since the introduction
of the original ordinance. The city is further assess its
operational needs over the next several years and in light
of our 4021 development schedules and Optimum customer
experience and his further refined the extension time from
a maximum of five years under the original ordinance to two
years for O'Hare leases and three years plus 1 Year Edition
11 cities discretion for Midway Lisa's the structure of
this ordinance is fairly simple and provide CDA with the
flexibility that we need to proceed on construction at
O'Hare. Well, correct for the pandemic induce delay in
concession development at Midway. First of all, the
ordinance extends the concession agreement with Midway
partnership our Master concessions team at Midway for an
additional three years with an option for the city took
send agreement by one additional here. It also allows the
city to reverse pre-pandemic development schedules to
revise them and ownership provisions.
Midway and he
Midway Industrial
Midway and his relief is necessary for our concession plans
to come to fruition the pandemic halted concessions
development planned through the modernization program for 2
years or more as many diverse concessions on her struggle
to obtain financing necessary for their build-outs
extending the Midway partnership agreement gives these
diverse concession owners the appropriate time for these
build-outs to remain financially viable and give the city
an option to extend the contract into a fourth-year. It
deemed appropriate later on.
add a
Etowah
at O'Hare the
at O'Hare if you
At O'Hare the ordinance will give the city the tools needed
to properly phase the very complex construction schedule
planned for the 7.1 billion dollar terminal area plan
enabling work which really began earlier this March we
continue to work on those facing plans with our airport
partners.
It'll
It allows all.
It allows also for short-term extensions for individual
agreements for up to two years allowing this ETA to make
decision on what's necessary to maintain quality passenger
service during the complex construction schedule over the
next decade overall. We're thrilled about proceeding with
this ordinance because it will allow both O'Hare and Midway
to continue to maintain and grow the success of our acdbe
program, which is the highest in the nation. The FAA is
National goal is 10% yet. We see 56.4% at Midway, which is
the highest in the nation and 35.8% at O'Hare.
And this is because our diverse.
and this is because our diverse participation rates have
been so high the relief is going to be felt most by our
small businesses as we look to reimagine the concessions
operations at terminals one and three at O'Hare where
laser-like focus on increasing opportunities for small
tubers firms across our neighborhoods to get a foothold
into O'Hare and that's why we're organizing one of the
largest events this year and this Wednesday actually at
this called the O'Hare Airport concessions Symposium will
be held at you. I see I just want to thank died and her
entire team and I know that you've spread the word because
we've seen since we've given out those flyers for you to
distribute. We've seen attendance Skyrocket, so we thank
you so much, and we really look forward to that event.
Thank you so much for allowing us to be here and I'm happy
to answer any questions or my team today, but you may have
on this ordinance. Thank you Turman any questions from
committee members.
All right.
already have
All right happy.
Audrey Hopkins. Yeah, thank you. Just reminding
commissioner. Can you just talk about the trajectory of
annual passenger counts and how we're recovering now in the
in the post-pandemic are compared to where we were at in
2019 faster recovery. Although it's has its up and downs,
but since they don't realize much on business or
International traffic when we believe that Midway now is
pretty much back to where it was at pre-pandemic levels
O'Hare has lagged behind a bit. We are very excited to see
that the FAA is allowing the China flight.
start resuming back into the United States
Start resuming back into the United States. That was an
Start resuming back into the United States. That was a nun.
announced last week. So that will really help bolster our
already re-emerging International traffic at O'Hare and as
the last two, will be the business travel and we are seeing
some very good signs from that as well. I think last week
the Wall Street Journal talked about the tech industry's
coming back in and hotel occupancy be very high. Those are
all very positive indicators as well as Chicago's sort of
geographic location and are conducting traffic that we have
working with our airport Partners them including our
Airlines. We're really starting to see some of these
schedules come back. We got all of the free all of the
destinations back the frequencies or what we're now seeing
come back instead of two perhaps the week will see it go to
three or four and we are seeing that to lead us to be very
optimistic about the recovery. I don't care as well.
Thank you all.
Thank you Alderman Hopkins Alderman Del.
thank
Thank you, Miss.
Thank you. Mr. Chairman, Jamie. Zhu. Can you I'm just
interested in the in the number of concessionaires that
could potentially benefit from this agreement including
those that are on the month-to-month tenancy at Midway. And
then if you could break it down at O'Hare terminals 1 and 3
shirts. So overall at O'Hare we have 34 different
concessionaires that will be impacted by this of that.
twenty
27 or Ace
27 r a c t be Easter.
27 or acdbe certified in over at Midway we have of course
just the one that will be extended and under them. They
have 12 acdbe. I can a can you further refine it down into
terminals one and three we can do that and you know what
the thing is that most of these actually at O'Hare these
leaseholders have multiple locations and in all of the
terminals so really those numbers are pretty consistent
between turns 1 2 and 3. Okay. Thank you and the ones that
you're considering in this upcoming.
You know.
You know you gay.
You know you getting ready just Alexa more concessionaires.
Will they also be subject to this agreement on right now?
What we're doing is the concession from Symposium that
we're hosting on Wednesdays to really get people ready for
the upcoming bids. You are correct will be going out for
bids for terminals one and three and this is really to get
folks excited about it to get them certified to perhaps
Network. All of our Prime contractors will be there on site
to answer questions and to meet prospective new clients
that would that would want to put them on the bed. We are
still working on that bed and look for it to be issued.
Probably in the first quarter of next year. The reason
being we want people to have time to either expand their
next codes through certification and that is done by
procurement services or to get certified as an acdbe.
I just want to thank the king.
I just want to thank the committee again because we've seen
such a tremendous.
such a tremendous outpouring of Interest.
such a tremendous outpouring of Interest into the the new
bids. I were also working with the Restaurant Association
all of our assistants and sees and many others out there
Chambers of Commerce so that we can make sure we're getting
the word out. These really are once-in-a-lifetime
opportunities to get in and for first-time folks. We want
to make sure that they have adequate time to prepare where
I put are they subjected to this agreement. Will they get
the benefit of his agreement? So that is really are so the
folks that are coming in to Midway. Yes, they will continue
to get this benefit. This extends the actual lease terms of
that agreement over at O'Hare everyone right now in
terminals 12 and 3/4. Most part is on a month-to-month
lease.
Thank you. Thank you all coming down all the way in
Cardona. Good morning once a month, even the shortcomings
of the single prime prime an operator the same model, for
example HMS host operating months and haven't seen any
significant investment in the concessions. So question is,
you know, are we willing to break those up to a smaller FRP
to give opportunity to local and a CD bees and MB East?
one of the things that we really
one of the things that were really an
One of the things that we're really an enforceable I will
say that we do continue to see investment being on
month-to-month. It is very hard especially for small
businesses to go to a bank and get a loan. They're not
going to give you a loan on a month-to-month lease. So in
order for us to make sure that they are able to invest and
end keeps making money at our airports and keep that
elevated customer experience. Hi, we want to make sure that
they have a term that they can then take that to the bank
and to get money or hiring or whatever purposes to make
sure that they're viable over the next couple of years. But
one of the things that we really are looking at is there's
different models out there for a concessionaire. That's
something that we're evaluating and certainly with an eye
towards making sure that we get first time entrance. How do
we incentivize that really looking at the difference is
working with our Airline Partners between terminals one and
three and what people want what they expect to see and so
there will be a lot more back and forth with our Airline
Partners as well as Community engagement to make sure that
would we ask
issued
issue the
Issue this big.
Issue this bid that it reflects sort of the values of our
city and what you and end this entire body and Mary Johnson
has Express from day one either economically engines we
make we need to make sure that everyone has a chance to
participate. So we are going to you are going to go out and
do our fees for all of them and three terminals are still
existing terminal to the one that will be torn down. So
there is more complicated and we're still work.
directly with our Airline Partners on
Directly with our Airline Partners on that phasing or the
building of the new O'Hare Global terminal in the two
satellites the enabling work did break ground this March
and and we will be already broken ground where satellite
one will go. So all of that will factor in into yet another
bed. So even if this first time around people aren't
successful at 1 and 3, there will be many opportunities
coming with the global terminal in the satellite once we
build them or how about Terminal 5 to Terminal 5 current
lease have a five-year extension. It doesn't it doesn't
expire till 2033 and has yet another five years on it. I'm
so we believe that that is adequate right now to 2038 said
that they wouldn't need an extension at this time. But
that's not to say that perhaps it's in the future. But at
this time so are all the confessions of Terminal 5 already
rsvp'd out and voted. Yes, and we are evaluating one small
space right now that we have weave short listed that are
evaluating one space that we're doing directly that it's
not going.
Arkansas
concession Opera
concession operated
Our concession operator their Westfield. Thank you so much,
Thank you. Thank you.
I don't.
I don't get to see everybody. Hello while I'm in total
support of this. I'm concerned that we're not giving them
enough time considering they bet they had a rough. They
messed up with a Honda's expense overtime. Tell me how you
figure it out and how we got to the point.
Do we do?
So we just gave them a three-year.
So we just gave them a 3-year extended.
So we just gave them a three-year extension on considering
they've been all and financially with $0 coming in to
maintain their business is this giving them enough time to
really be a successful business? So we did look at that and
analyze it in a very thoroughly and we did elect to do one
more year that we could add to that. So it would be a total
of four years. Obviously, we're going to look at that and
measure it and make sure that all those folks that didn't
open cuz that's really what it comes down to his those
folks that think it to open in 2020. If you were scheduled
to open up your confession at Midway in the fall of 2020
you didn't end so trying to make up for that and put that
term on the end and it's up to four years now, but
certainly subjective evaluation as a German set this
decision and he's extensions are reviewed Natalie by
myself, but the corporation counsel as well as a business
Affairs, so we will work together to make sure that we're
addressing that and people do have that time to recoup the
money because we know that it cost money to
they have
Do they have to win?
they have to invest my
they have to invest money in order to make money.
Somaya
So my ass would be that and setting up and why they're
doing their contracts and talking with you all about their
extensions that you you cannot build something into so that
they can tell you whether if four years is going to be
enough to come back financially for them.
Thank you.
Hey,
Play Calvin Harris vice-chairman Curtis.
Could you talk?
Could you talk to you guys we talked about concessionaires
to talk about how many we have in total? And what's our
goal as we go to get here. So it's we really measure it.
Thank you by Cher. We measure it really buy what
participation we're getting and like I said the national
average for the FAA is 10% Midway again or 56% is a
certified acdbe. So our goal really is to increase the pool
at a City Bees because unfortunately what we do see is sort
of the same act bees that are participating in both
airports. And so what we want to make sure is that were
casting a wide net to get those new folks that have either
a retail shop or a food and beverage that want to get
engaged and be a part of these beds. So really our Focus
now and what God has put together is really this event on
Wednesday is to get that awareness out there so that people
can have time to go get certified getting certified. It's a
federal program. We are very
Limited
limited into how created we can be with these types of it's
because they are all regulated under the. So we have to be
very cognizant of local preferences, but we're getting
creative in a way that were able to break down packages and
a really do our leg work up front which is to get out there
and get notice and awareness.
Set this poem.
Set this program is coming. I was on the radio this morning.
She was out over the weekend talking about this.
event and putting it into the community newsletters and
newspapers and on the radio so that everyone has a chance
to hear these cuz it does take time to get certified. We
want to make sure people have that time to thank you and
Curtis Alderman Napolitano.
They
Play German appreciate it the morning for sure. How are
you? Quick question. It's kind of a two-part to and it's
more of just the Optics of of what we're doing here as
these contracts are being negotiated or they're up for bid
or religion or is this more or less looked at as as as a
revamping of terminals one and two and during the
negotiation process for current holders of of the
concessions is productivity or a portion of that contract
negotiation. Like if you have a concessionaire, that's
there that's been there for years and is doing very well
that great turn over one of the highly more the more used
concessions is that part of this negotiation process or is
it more or less kind of revamping these are determines a
little of both were so we're we're putting a substantial
amount of money also into the terminals one and three not
just terminal to but terminals 1 and 3 right now.
recently
Recently just heard about we got a 50 million dollar bills.
Recently just heard about we got a 50 million dollar bill on
the bipartisan infrastructure laws.
the bipartisan infrastructure log ramp for terminal 3. It's
really going to change the nature of how to Terminal 3
looks in a lot of ways, but we also are very cognizant that
people come to an airport. They expect to find certain
things. So we will use that in our evaluation. I certainly
would be on that but our evaluation team is looking at that
sort of looking at what customers want to buy and what they
expect to see we've got a lot of survey data that Amber and
her team are constantly out there in the terminals. What
would you like to see? What do you like about this to make
sure that we're capturing that and so that that can be
reflected also with our bid and we can reward those those
businesses that do well in that people want to see it in
there, but also give opportunities for new folks to come
in.
Thank you.
Thank you Allah.
Thank you ottoman Alderman late.
thank
Thank you chairman. Good morning to a couple of questions
because I'm new to the committee and wasn't I wasn't
totally up to speed before about how long people have been
on month-to-month. So, can you just give me a little bit of
back about how long those are concessionaires have been
going on month-to-month 85% and when I came in in 2018 as
commissioner 85% of the leases at that time or month to
month. So they've been out for a long time operating on
some of them a month to month during covid. When covid we
worked with the body chairman O'Shea by Cher Curtis in the
administration to make sure that we were giving enough
support to
concessionaire so that they didn't go out of business people
didn't
people didn't lose their jobs if they wanted to remain
open. And so we work very closely using some of our federal
cares act money to sort of use that to offset some of their
the rent and they would over the city that expired was a
typing that was originally a three-year agreement that
expired in May, I believe March March it expired in March
of this year. So they been on month-to-month yet again
since March
thank
Thanks under.
thanks. I'm just taking my notes and then I got a couple
other questions as far as the end of excited about this
form that you're having at the UIC forum. Right four new
potential concessionaires is really is to be life-changing
and generational in terms of the wealth that it can
generate for any one particular business owner. I'm
interested in what sort of resources there are for minority
and women-owned businesses to get certified. Like are you
going to have some dental certification folks on site to
help walk people through that? Yes, absolutely. So there
will be presentation done by bacp because they also have
small assistance. Like there are some micro loans and
things that are available financial assistance and and
small business assistance that they can offer and then
there also will be departing Port Services will talking
will be talking about how to get certified as an acdbe
since they are the entity that is charged with that died.
You want to talk a little bit more about the event.
LOL
Sherman just came up here and talk to me about but we are so
excited to make sure that all communities of all
communities across the 77 areas around the city of Chicago
to get the information about a symposium come small
businesses of any size any concept that you might have.
This is the place to be I ever and I did the walk-through
on Friday and we kept saying this is going to be networking
on steroids. I mean, we have everything that you could
possibly think of your partner with the Chicago Department
of experiment would they will help individuals get there
walk through the process to get an 80 DB certification. We
have workshops that will be going on upstairs. So we are so
excited about me to try and meet the primes. We have a lot
of speed dating but a speed networking as you may say to
meet the prime we have at least 11 times already committed
to say that they are coming and they will have that
2-minute elevator. Speech.
Probably look up to buy.
Probably went up to 5 min.
Up 25 minutes. Now other than will be able to walk to brew
toxin individuals about whatever concept that they might
have and how they'd be able to work together with the with
the new with the new construction and everything else
that's going on. Are we going to have net and more net
additional concessions faces or what's it going to do? Your
numbers have solutely will have opportunities especially if
we bring those satellites on that's all brand new space
Global terminal the way, you know, the the global terminal.
Replace Terminal 2.
replace terminal to which
Replace Terminal 2 which is almost 60 years old. It
certainly was not built at a time that is very conducive to
amenities. And so we will be having a blank slate where we
can actually go in there and and repurpose or a rebranding
and an add additional space for concessions and amenities.
So what are we what's that actual sort of increase going to
be from what we have today to what we envision like you not
to give me an exact number, but approximately I would say
once we achieved both of the satellites and the O'Hare
Global terminal as commissioner mention. I don't have the
exact numbers but I would say that the commercial space
will at least be increased by at least sixty to seventy
percent of what we have now in Terminal 1 2 3. So in other
words, it would be 160 to 170 percent of what we have now.
I don't have those exact numbers, but that's that's based
on sort of the plan that we have. And of course the plans
are still being design but is commission noted those new
spaces will be designed for this sort of commercial needs
of the current traveler and the way airports. Are you do
funk?
Now it right.
Right. I've been.
I've been to a few airports stand to you know, catch up to
some other yet. So very excited for all of what's ahead and
excited to hopefully be able to stop by on Wednesday.
Wonderful. Thank you. That's all I got Sherman.
turn the
turn off the
Is there no further questions? I like to request a motion
recommend approval of the substitute ordinance that allows
for the extension and Amendment of the concessionaire
covid-19 economic relief agreement that both of Chicago
O'Hare and Midway international airports.
all the way
Alderman how
Alderman Hopkins so moves all in favor. Say aye all
opposed.
in the
independent of
Independent of the chair the eyes have it do pass
recommendation of this ordinance will be reported out at
the next city council meeting on Wednesday, November 1st
2023.
can
camping in the
I can't begin to tell you how glad I am to have that behind
us? And thank you. I did number 3.
or
Oregon
ordinance to
Ordinance 202-300-0494 20 second amendment to license
agreement with Chicago Concourse Development Group for
wireless communication access system and services at
Chicago O'Hare and Chicago Midway international airports.
If
before I
Before I hand this over to our commissioner three, ladies
and gentlemen, this is this ordinance before us today. It
extends the license agreement with the Department of
Aviation Wi-Fi operator at both O'Hare and Midway airport
by a term of five years over the past several.
Department
nearest department of baby a
nearest department of Aviation
Nearest department of Aviation has received an average of
2.3 million dollars per year in licensee fees from Boyne go
through this agreement. This extension will permit blind go
to further invest in Wi-Fi a structure at both of our
airports spending up to two and a half million dollars to
upgrade these important systems Wi-Fi systems,
particularly, those it major public buildings and Transit
hubs require regular and continued investment to ensure
reliability for our passengers and employees.
What?
what's the
which is
Which is part.
Which is particularly important for certain regulatory
Partners like the Transportation Security Administration.
you're
the ordinate
The ordinance will allow for new investment increased
airport revenue and importantly it will provide the Chicago
Department of Aviation with the time. It needs to
comprehensively research the peace ability of taking
ownership of the Wi-Fi systems at both of our airports.
this
This will ensure.
This will in turn position is Chicago Department of
Aviation to further increase Revenue in the future and
decrease the burden of cost on our Airline partners.
add a
I thank you.
I think I'm
I think of machinery and the entire CD a team for their
partnership on this important ordinance in for pushing
Boingo to work to increase their ACD Benben wbe
participation rates.
Commission
commissioner
Commissioner read thank you chairman. Good morning again.
So as a term of noted this ordinances before you would
extend the City License agreement was Chicago Concourse
Development Group, LLC better known as Boingo 45 years. The
City's License agreement with Boingo has been in effect
since 2005 and it requires a firm to construct and maintain
both wi-fi system in Cellular Systems at both airport.
WinCo receives fees from passengers for the use of Wi-Fi
and its business also earned fees from airport users like
the Airlines and concessionaires and our federal Partners
will also receive significant fees from cellular carriers
for the use of in terminal cellular infrastructure and
advertising fees for ads placed on its way Wi-Fi website in
exchange for this agreement both reports Boingo pays the
CDA between 35 and 50% of its cellular revenue and 80% of
the firm's cellular Revenue over the past several years
city has received an average of 2.3 million dollars in the
license fees from Boingo a five-year extension.
disagree
This agreement is critical to improving our airports. Why.
This agreement is critical to improving our airports wife. I
am
infrastructure while also providing the CDA time to
consider how to expand.
consider how to expand our requirements for the scope of
the services at the end of the second and Beyond data usage
on the Wi-Fi network in our terminals has increased over
70% in the past three years without upgrades the system is
at risk of failure over the last five years going go over
the next five years, when will be investing up to 2.5
million dollars to enhance Wi-Fi 5 + y 5 6 equipment
throughout the terminal area is the distributed antenna
system or d a s that support cellular phone service will be
expanded throughout the additions to Terminal 5 where we
added 350,000 new square feet of building Frontage as well
as moved into carriers Delta any in southwest
new
Look what?
look what you
new equipment will be installed so that the 5G cellular
service area will be expanded at both O'Hare and Midway.
This enhancement is expected to result in five to seven
million dollars in additional revenue for providing the
service. The upgrades will also provide redundancy and
resiliency to the service provided to the both passengers
and Regulatory Agencies working at both airports. If the
demand for wireless Services continues to grow at its
current Pace Boingo also install a peanut wireless access
points that provide higher speeds and greater capacity than
current wireless equipment over all these enhancements are
expected to yield additional 11.5 million dollars in
Revenue to CDA over the next five years between
Spell Revenue.
Revenue in the Investments made by Boingo the value of The
Sixth Sense
extension for the city reaches up to 24 million dollars
over the next five years.
wouldn't
with the new law
with a new life
with a new license agree
With a new license agreement boingo's business week without
it would not be in a position to make these upgrades and
that would make the system at Chicago's airports increased
risk for a decrease system reliability or overall system
failure, which could hamper airport operations, the
five-year extension also allows the CD a time to onboard
its new information technology. Pmo an RFP that will be
issued in the days of his ahead of us as a target market
solicitation to the Department of procurement Services. The
new it pmo will assess the viability of the city taking
over the infrastructure that supports Wireless and cellular
Services which allows the city to act as a neutral host
service provider to all users at the airport if proven to
be feasible this shift could prove to be a big significant
new source of revenue for the CDA and a net positive with
respect to the cost to are Airline Partners In the
meantime. It's important to note that Blanco has currently
30% a c b participation rate, which is very high for this
segment of service going to occur.
works with other many
Works with other many other m b e & W B companies that are
not certified acdbe including Architects and engineers.
Grand
granted
granting going go to
Granting Boingo. This five-year extension will open many
new opportunities for other mbwb and acdbe. Company's given
that the planned investments in Wi-Fi + cellular
infrastructure at our airports near Johnson and the entire
city council have continually emphasized the importance of
increasing the universe of all firms with access to these
unique Contracting opportunities, all of which can build a
tremendous new capacity among entrepreneurs across our city
to that end Boingo have committed to the CDA to hosting an
Outreach seminar to encourage new diverse business firms of
all sizes to consider bidding for these new Contracting
opportunities CDA will work with one go to ensure the firm
performs appropriate Outreach to aldermanic office has a
cyst agencies and parties that can help get the word out
about this important seminar. Thank you again for your
time, and I am happy to answer any questions.
play
Harley Quinn
funny questions from committee members
ultimately
Call radhika ready.
Urban League redhead
it's for the public as well as all of our regulatory are
Airlines everyone's so when we have disruptions to Wi-Fi it
affects the entire system.
ottoman call
I've been calling.
Harlan Coben
who is
do if any is
Do if it is just made it if a passenger chooses the paid
high-speed internet and is there any profit for the city or
is it all blue Engel absolute profit for us? I'm do you
have exactly like that as well? So it did the past few
years we've been to City airports have been receiving about
2.3 million dollars in revenue from from this contract Miss
least. So what that represents is, we get a TB get 35 to
80% of all the Wi-Fi related revenue of it that they
generate and then 80% of cellular rubbing. His passengers
does choose to you know, get the enhanced Wi-Fi. We the
city CPA gets 35 to 50 per-cent of that depending on
certain terms in addition to that and actually more
lucrative is if you don't get the city Wi-Fi you'll see an
ad. So it's that ad Revenue that they're giving us, you
know, thirty-five to fifty percent of each time. So it's
about 2.3 million dollars a year in Revenue.
passing
How many passenger uses?
How many passenger uses Wi-Fi?
How many passenger uses Wi-Fi you know, that's a great
question. I don't have it in front of me. I would I would
know colloquially just from what I've seen around talking
with whistling on working with and I would say almost at me
almost everyone at some point is connecting to the Wi-Fi
with commissioner said there's the passenger aspect to it.
But there's also the very crucial operational aspects to
it. Where are airlines are concessionaires are
concessionaires are using this to Lincoln with their credit
card systems, you know, so it's it's not the passenger
facing piece of it is very important obviously from a
customer service perspective in front of a passenger
experience, but it's also the infrastructure piece of it,
but I don't have the exact numbers of how many passengers
use it or what percentage do we can get that? I'm just
throwing it out. It will be great if there was like a
welcome to Chicago advertisement. Everyone laws been
sitting by fire as soon as they get to the airport, but
there's any way of promoting the greatest city in the world
then maybe that could be a conversation with Lou Engle on
some type of Chicago Pride.
I hate that when you in.
I hate that when you enter.
I hate that when you enter into or leaving our city, I
agree and we've actually been working with them on
something. So I'm too awesome. Thank you. Thank you all the
way all the Miguel.
in
It just a quick.
It just a quick question. I
And just a quick question are they do they have an office
here in Chicago Boingo? They have folks that are on site at
the airports are both airports that run you know that are
there everyday, you know how to run the system. What do
they have an actual office outside of the airport? I'm not
sure but they certainly have offices in the airport
presented if you're from that company, I don't believe so.
All right. Thank you. Thank you all the mandal if there are
no further questions. I like to request a motion to
recommend approval on the ordinance.
it was
2022
202-300-4942
all the
alderman
Alderman Ervin so moves all in favor. Say aye.
all the pole
all opposed
All opposed the opinion of the chair the eyes have it the
do pass recommendation of this ordinance will be reported
out at the next city council meeting on Wednesday, November
1st 2023.
The
there
They're being.
There being no further business before the committee. Can I
get a motion to adjourn?
Olive
how to make a
All the way cardona's so moves all in favor. Say aye all
the post and if any of Charity, I have it ladies and
gentlemen, the committee committee on Aviation is
adjourned. Thank you. Don't forget the Symposium on
Wednesday folks.