Title
Automated Teller Machine Concession Lease (Ordinance S-44132)
Description
Request to authorize the City Manager, or his designee, to enter into a lease with Bank of America, National Association, to provide automated teller machine concession services at Phoenix Sky Harbor International Airport and the Rental Car Center. Further request authorization for the City Controller to accept and disburse all funds related to this item. Bank of America, National Association will pay a Minimum Annual Guarantee (MAG) of $500,000 and 50 percent of all transaction fees. In subsequent years of the lease, the MAG will be subject to an annual 3 percent increase.
Report
Summary
Automated teller machine (ATM) services are considered an essential amenity for Airport customers. Through this Concession Lease, Bank of America will provide ATM services pre- and post-security at 11 defined locations. Services will be provided 24 hours a day, seven days a week including holidays. ATMs will accept multiple credit/debit card companies including, but not limited to: Visa, MasterCard, American Express and chip technology contained in Europay, MasterCard and Visa (EMV) cards. Passengers will have the ability to complete cash withdrawals, conduct account inquiries and other customary services. The locations, units and services may be adjusted to meet evolving customer and Airport needs at the sole discretion of the Aviation Director.
Procurement Information
Solicitation AVN RCS 17-038, Automated Teller Machine Concession, was conducted in accordance with Administrative Regulation 3.10. The Aviation Department issued a Revenue Contract Solicitation (RCS) for the automated teller machine concession on Sept. 5, 2017. One proposal was received and found responsive. Bank of America, National Association is the successful respondent with a Minimum Annual Guarantee (MAG) of $500,000.
Contract Term
The lease term is three years starting Jan. 1, 2018, with two one-year options to extend the term at the discretion of the Aviation Director.
Financial Impact
Bank of America, National Association will pay a Minimum Annual Guarantee (MAG) of $500,000 and 50 percent of all transaction fees. In subsequent years of the lease, the MAG will be subject to an annual 3 percent increase.
Public Outreach
The ATM business opportunity was advertised in the following publications or newsletters: The Airport Council International, Airport Minority Advisory Council, Federal Aviation Administration Opportunities Bid Board, and Phoenix Sky Harbor website. The announcement was also sent to more than 100 individuals from the Aviation Departments interest list. A pre-response meeting was held on Sept. 8, 2017.
Concurrence/Previous Council Action
This item was unanimously recommended for approval by the Phoenix Aviation Advisory Board on Nov. 16, 2017.
Location
Phoenix Sky Harbor International Airport is located at 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.