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Committee recommends exercising first one-year option for Smart Cart airport lease
Summary
San Francisco Airport staff asked the committee to approve the first of five one-year extension options for the Smart Cart luggage-cart lease (4/1/2007–3/31/2008); the extension preserves existing financial formulas, with an estimated net not-to-exceed $2.2 million to Smart Cart and a recommended approval from the budget analyst.
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.
The Budget Analyst noted small fixed-fee increases in subsequent options but recommended approval of the extension on Page 20 of the analyst—s report. There were no public comments. The committee moved the item to the full Board with recommendation.
Next steps: the item will be transmitted with the committee—s recommendation to the full Board for approval and potential subsequent options will include modest fixed-fee increases noted by the analyst.
