Title
Third-Party Registered Traveler Program (Ordinance S-43997)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Alclear, LLC (dba Clear) to provide a Third-Party Registered Traveler Program concession service at Phoenix Sky Harbor International Airport. For the term of the lease, Clear will pay a Minimum Annual Guarantee (MAG) or percentage rent equal to 10 percent of gross sales, whichever is greater.
Report
Summary
Lines at screening checkpoints are a major concern for airports. To improve passenger flow through the security screening process, many airports in the United States have contracted with Clear, a private company that uses automated secure biometric technology to expedite identity verification. Clear's biometric identity verification system has been certified by the U.S. Department of Homeland Security as a Qualified Anti-Terrorism Technology under the Safety Act. The Aviation Department believes that providing this service to passengers at Sky Harbor will improve the guest experience by shortening the time a passenger must stand in the screening lines.
Clear offers a subscription service that allows subscribers to expedite through the security checkpoint and proceed directly to physical screening. Clear operates in 28 airport locations and six professional sports stadiums and has over one million members nationwide. Clear will install enrollment kiosks at all checkpoints to provide Sky Harbor customers an opportunity to subscribe to this service.
Procurement Information
Clear is the only private trusted-traveler program sanctioned by the Transportation Security Administration. The agreement will be entered under sole source determination in accordance with the Procurement Code.
Contract Term
The lease will be three years with two, one-year renewal options, which may be exercised at the sole discretion of the Aviation Director.
Financial Impact
For the term of the lease, Clear will pay a Minimum Annual Guarantee (MAG) or percentage rent equal to 10 percent of gross sales, whichever is greater. MAG for the first full year will be $200,000. MAG for all years thereafter will be established at 85 percent of the annual rent owed by Clear during the immediate preceding year. Gross sales are derived from all enrollments to the Clear program originating in the defined catchment area of the State of Arizona.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on Oct. 4, 2017, by a vote of 3-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.