Title
Foreign Currency Exchange Services Concession Lease (Ordinance S-44133)
Description
Request to authorize the City Manager, or his designee, to enter into a concession lease with Travelex Currency Services, Inc., dba Travelex Worldwide Money, to provide foreign currency exchange services at Phoenix Sky Harbor International Airport. Further request authorization for the City Controller to accept and disburse all funds related to this item. Travelex Currency Services, Inc., dba Travelex Worldwide Money will pay the greater of a Minimum Annual Guarantee (MAG) or Percent Rent in the amount of 12 percent of gross sales. MAG for the first year will be $91,500.
Report
Summary
Providing foreign currency exchange services to passengers traveling through Phoenix Sky Harbor International Airport via international flights and international connecting flights is a vital service for international travelers. The Airport has become a primary provider of these services to individuals living in the Phoenix Metropolitan area due to limited currency changing venues in the market. Through this concession lease, Travelex Currency Services, Inc., dba Travelex Worldwide Money, will provide foreign currency exchange services such as: the exchange of U.S. and foreign currency, bank notes and coins; sale of travel insurance, international telephone debit and prepaid phone cards; purchase/sale of travelers checks and money orders; and process wire transfers. Services and locations may be adjusted to meet evolving customer and Airport needs at the sole discretion of the Aviation Director.
Procurement Information
Solicitation AVN RCS 17-036, Foreign Currency Exchange Services, was conducted in accordance with Administrative Regulation 3.10. The Aviation Department issued a Revenue Contract Solicitation (RCS) for foreign currency exchange services on Sept. 5, 2017. One proposal was received and found responsive. Travelex Currency Services, Inc., dba Travelex Worldwide Money, is the successful respondent with a Minimum Annual Guarantee (MAG) of $91,500.
Contract Term
The lease term is five years starting Jan. 1, 2018, with two one-year options to extend the term at the discretion of the Aviation Director.
Financial Impact
Travelex Currency Services, Inc., dba Travelex Worldwide Money will pay the greater of a Minimum Annual Guarantee (MAG) or Percent Rent in the amount of 12 percent of gross sales. MAG for the first year will be $91,500. The MAG will be adjusted annually thereafter at 85 percent of the annual rent revenues paid during the preceding year. The MAG will not fall below the proposed amount for year one.
Public Outreach
The foreign currency exchange services 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 Department’s 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.