Title
Cash-to-Card Kiosk Services Contract Request for Award (Ordinance S-51307)
Description
Request to authorize the City Manager, or his designee, to enter into a concession lease agreement with Ready Credit Corporation for cash-to-card kiosk services at Phoenix Sky Harbor International Airport (PHX), for a three-year term with two one-year renewal options. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
To support airport customers conducting transactions with businesses that do not accept cash payments, the Aviation Department sought a qualified cash-to-card kiosk operator with experience to provide the equipment and services for a seamless customer experience. Cash-to-card kiosks provide our customers with the convenience of converting customizable cash amounts to a debit-style card that can be used anywhere major credit cards are accepted. Cash-to-card kiosks continue to be an important amenity for travelers needing to convert cash to another form of payment to conduct business transactions.
Procurement Information
The Aviation Department issued Revenue Contract Solicitation (RCS) 24-007 on May 6, 2024, with responses due on May 30, 2024, for cash-to-card kiosk services. One response was received from Ready Credit Corporation, and the respondent was deemed responsive and responsible. Ready Credit Corporation is the incumbent provider of cash-to-card services at PHX.
The response was evaluated based on the highest proposed Minimum Annual Guarantee (MAG), which met the minimum required MAG of $10,000. As such, there was no evaluation panel convened for this RCS.
Contract Term
The contract term is three-years with two, one-year renewal options, to be exercised 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 $10,000 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 to the City is $50,000 over the five-year aggregate contract term.
Concurrence/Previous Council Action
The Business Development Subcommittee of the Phoenix Aviation Advisory Board recommended this item for approval on August 1, 2024, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended this item for approval on August 15, 2024, by a vote of 8-0.
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.