Title
Amendment Lease with Swissport Fueling, Inc. at Phoenix Sky Harbor Airport (Ordinance S-46099)
Description
Request to authorize the City Manager, or his designee, to amend Lease 132684 (Lease) with Swissport Fueling, Inc. (Swissport) at Phoenix Sky Harbor International Airport (PHX) by extending the lease term three years with two one-year options to extend. The total anticipated revenue over the term of the lease, if all options are exercised, will be $337,035.
Report
Summary
Swissport, and Servisair USA, Inc. who was Swissport’s predecessor under the Lease, have leased a vehicle fueling facility on the northwest airfield since Jan. 1, 2012. The facility contains 3,983 square feet of land, includes one 10,000 gallon diesel fuel tank, one 20,000 gallon unleaded fuel tank, and associated fueling equipment. The facility is used to fuel ground service equipment. Swissport’s current lease will expire Dec. 31, 2019, and they have requested to continue leasing the facility for an additional three years.
Contract Term
The term will be for three years with two one-year renewal options to be exercised at the sole discretion of the Director of Aviation Services. This Agreement will be coterminous with Swissport’s Terminal 3 Waste Triturator Agreement 135697.
Financial Impact
Annual rent will be approximately $67,407 ($16.92 per square foot) and will be adjusted on an annual basis based on the Phoenix-Mesa-Scottsdale Consumer Price Index (CPI) or 3%, whichever is greater. The total anticipated revenue over the term of the lease, if all options are exercised, will be $337,035.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Sept. 19, 2019 by a vote of 9-0.
Location
Phoenix Sky Harbor Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.