Committee advances several airport lease and service amendments, including paid carts and a World Duty Free extension

The Budget & Finance Committee on May 5 advanced multiple airport contract changes and lease amendments to the full Board with positive recommendations.

Item 2 asked the Board to approve Amendment No. 3 to the Terminal 2 newsstand/coffee lease with World Duty Free Group North America, extending the lease through June 30, 2023; airport staff said a broader request-for-proposals process would not be economically sensible during the pandemic-related passenger downturn and that the lease’s minimum annual guarantee (MAG) is currently suspended.

Item 3 sought approval of Amendment No. 2 to the airport luggage-cart lease with Smart Cart Inc., changing luggage cart service in the Federal Inspection Services (FIS) area from free to paid, exercising a three-year option to extend the lease through Dec. 31, 2025, and eliminating an annual service fee. Airport staff estimated the change could save the port up to $3.1 million per year and the BLA recommended approval.

There was no public comment on either item. Committee members had no questions and recorded unanimous roll-call votes in favor; both items will go to the full Board with positive recommendations on May 11.

Separately, the committee approved an emergency public-works contract (Item 4) with A Ruiz Construction to repair a leaking section of the Civic Center steam loop under Administrative Code §6.6. Public Works reported the leak damaged communications lines at Larkin and McAllister and that the acting director declared an emergency; the contract cost shown in the presentation was approximately $275,271 and the project was completed April 6. The BLA recommended approval and the committee forwarded the contract to the full Board.