Title
Automated Teller Machine Services at Phoenix Sky Harbor International Airport AVN RCS 24-006 - Request for Award (Ordinance S-50522)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Bank of America, National Association to provide Automated Teller Machine (ATM) Services at Phoenix Sky Harbor International Airport (PHX), for a five-year term with three one-year renewal options at the sole discretion of the Aviation Director. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
To maintain desired passenger amenities and the overall concessions program at PHX, the Aviation Department sought a qualified financial institution with airport experience to provide their expertise in ATM services at PHX. ATM services continue to be a key amenity for travelers and placing ATMs at key locations within the airport terminals and Rental Car Center will provide our customers with the convenience of services including withdrawing money, depositing checks, viewing their account balances, and more. The Aviation Department also sought an experienced financial institution to provide foreign currency exchange services at PHX.
Procurement Information
The Aviation Department issued Revenue Contract Solicitation (RCS) 24-006 on Sept. 12, 2023, with responses due on Nov. 15, 2023, for both ATM services and Foreign Currency Exchange services. One response was received for ATM services, and the respondent was deemed responsive and responsible. No responses were received for Foreign Currency Exchange services.
The Response Opening was held on Nov. 15, 2023, and it was determined that Bank of America, National Association submitted the response for ATM services with the highest proposed Minimum Annual Guarantee (MAG) of $150,000, providing the most financial benefit to the City. The Response was evaluated based on the highest proposed MAG, which meets or exceeds the minimum required MAG of $100,000.
Contract Term
The contract term is five years with three one-year renewal options to extend at the sole discretion of the Aviation Director.
Financial Impact
The estimated annual revenue to the City will be the established MAG or percentage of gross sales, whichever is greater. For the first year, MAG will be $150,000 or 10 percent of gross sales, whichever is greater. MAG will be adjusted annually thereafter at 85 percent of the prior year's annual rent or 100 percent of MAG for the first lease year, whichever is greater. The estimated revenue is $1.2 million over the eight-year aggregate contract term.
Concurrence/Previous Council Action
The Business and Development Subcommittee recommended approval of the item on Dec. 7, 2023, by a vote of 2-0.
The Phoenix Aviation Advisory Board recommended approval of the item on Dec. 21, 2023, by a vote of 8-0.
Public Outreach
The solicitation process included all standard and required local and national outreach efforts, including advertising in Aviation industry publications.
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.