Title
Smarte Carte Facility Lease Agreement at Phoenix Sky Harbor International Airport (Ordinance S-51222)
Description
Request to authorize the City Manager, or his designee, to enter into a facility lease agreement with Smarte Carte, Inc. (Smarte Carte) for 254 square feet (sq. ft.) of terminal space at Terminal 4, Phoenix Sky Harbor International Airport (PHX). Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Smarte Carte provides luggage cart rental services at PHX under Contract 155430, which began on November 1, 2021. A recent facility audit revealed that Smarte Carte initially occupied 127 sq. ft. of space at the start of their luggage rental service operations and subsequently occupied another 127 sq. ft. on or about January 2023, and these spaces were not included in Contract 155430. Smarte Carte desires to lease these two spaces totaling 254 sq. ft. in support of its luggage cart rental services at PHX.
Contract Term
The term of the lease will be for five years and effective retroactively on November 1, 2021, and expire on October 31, 2026, which is coterminous with the expiration date of the Luggage Cart Rental Services Contract 155430.
Financial Impact
Total anticipated revenue over the five-year aggregate term will be approximately $237,590. The terminal rental rate will be adjusted annually in accordance with the Rates and Charges provisions of Article IX of Chapter 4 of the Phoenix City Code.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.