Committee recommends exercising first one-year option for Smart Cart airport lease

Kathy Weidner of San Francisco Airport told the Budget and Finance Committee the Airport seeks to exercise the first of five one-year options to extend the Smart Cart luggage-cart lease and operating agreement through March 31, 2008. The extension preserves existing financial terms: rent to the airport of 25 percent of Smart Cart gross revenues or a minimum annual guarantee of approximately $530,000, and the airport—s payment to Smart Cart for providing free luggage carts in the international-terminal customs area of $2,700,000 or $1.20 per actual cart used, whichever is less. Weidner said the combined effect results in a net not-to-exceed payment to Smart Cart under the extension of approximately $2,200,000.