Committee backs amendment to let Airport Commission sign 10-year leases for aviation support services without bidding

The Budget and Finance Committee on Sept. 1 amended and forwarded an ordinance to allow the San Francisco Airport Commission to enter into leases of up to 10 years with firms that provide aviation support services to airlines without a competitive-bid process.

Chair Carmen Chu opened discussion on the proposal introduced by airport staff. Kathy Weidner of the San Francisco Airport said the ordinance would permit the airport to provide lease space directly to businesses that provide servicing, cleaning, provisioning, cargo handling, aircraft inspection and maintenance, passenger and baggage handling, ramp support, checkpoint screening and perimeter control services to airlines. Weidner said the change applies to contracts between airlines and their designated support firms, not to general leases between the airport and unrelated companies.

Deborah Newman of the Budget Analyst’s Office recommended deleting language that would have made the waiver open-ended — removing the phrase "but not limited to" — so that the competitive-bid waiver applies only to the specified services. Newman also noted that without bidding the airport’s rental rates for such leases would be set by the airport’s approved schedule of charges and that the airport currently estimates about $13,500,000 in annual revenue from those support services.

Chair Chu asked for public comment; none was offered. The committee accepted the budget analyst’s amendment and forwarded the ordinance as amended to the full Board "without objection." The committee’s action was procedural: the amendment narrows the scope of the competitive-bid waiver to the enumerated aviation support services and leaves rent-setting to the airport’s approved charges.

The ordinance will next appear on the Board of Supervisors agenda for further consideration.