Title
Amendment to Lease 123530 with Oxford Electronics, Inc. at Phoenix Sky Harbor International Airport
Description
This report requests that the Transportation, Infrastructure, and Innovation Subcommittee recommend City Council approval to amend Lease 123530 with Oxford Electronics, Inc. (Oxford) to increase the leasehold from 1,920 to 3,840 square feet in West Air Cargo Building A at Phoenix Sky Harbor International Airport (PHX) on a month-to-month term. Estimated annual revenue to the City will be approximately $36,633.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
On March 19, 2008, Oxford and the Aviation Department (AVN) entered into an Airport Lease Agreement for ground service equipment space in West Air Cargo (WAC), Building A, Bay 18 (1,920 square feet) located at PHX. In August 2018, AVN issued Request for Proposal 19-001, Passenger Boarding Bridges Repair and Maintenance Requirements Contract (Contract), which sought a contractor to furnish labor, parts, equipment, and supplies necessary to maintain, inspect, and repair the passenger boarding bridges at the PHX. Oxford was the successful Offeror. On Dec. 14, 2018, Oxford and AVN entered into Contract 149032. The Contract provides that Oxford may store its supplies, materials, and equipment in a storage area at PHX. AVN designated WAC, Building A, Bay 13 (1,920 square feet) as that storage area.
Oxford has requested to relocate from Bay 18, to Bay 14 (1,920 square feet) located directly next to Bay 13 which is designated by Contract 149032 as storage. This amendment will reflect the new premises of approximately 3,840 square feet of space in Building A, Bays 13 and 14, at the WAC facility at PHX.
Contract Term
The term will be month-to-month as set be the original Airport Lease Agreement.
Financial Impact
Annual rent will be approximately $36,633 ($17.28 per square foot). Rates subject to annual Rates & Charges adjustments authorized by the Phoenix City Code. The use and occupancy of Bay 13 is reflected in Contract 149032, therefore this Amendment will reflect $0.00 Annual Rent for that space.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on May 21,2020, by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport, 1323 S. 27th St.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.