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Committee forwards SFO payphone lease with Pelican Communications for Board approval
Summary
The committee recommended approval of a four-year lease between the City and Pelican Communications for airport payphones, with a proposed rent equal to 55% of gross revenues (estimated at about $294,643 annually), an increase from the prior 42% share.
San Francisco International Airport representatives asked the Budget & Finance Committee to approve a new four-year lease with Pelican Communications to operate approximately 350 pay phones at the airport and related facilities. Kathy Weidner, representing the airport, said the lease resulted from a competitive procurement and proposes a rent equal to 55% of annual gross revenues from the phones, compared with a historical share of ~42%.
Audit and recommendation: The budget analyst confirmed a competitive process was used and recommended forwarding the resolution to the full Board with recommendation. The analyst estimated the new rent would yield roughly $294,643 annually, about $44,404 more than the average annual rent under the prior lease.
Next steps: The committee forwarded the resolution to the full Board with recommendation for approval; the internet kiosk concession was being handled separately and may return to the Board in a new solicitation.
