CITY COUNCIL STAFF REPORT
DATE: MARCH 11, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT NO. 25L083 WITH ALCLEAR, LLC DBA CLEAR, TO
ADJUST COMMERCIAL ACTIVITY FEE BASED UPON CPI, INCLUDE
10% COMMISSION ON MEET AND ASSIST FEE, AND TO INCREASE
THE MINIMUM ANNUAL GUARANTEE TO $131,000 FOR BIOMETRIC
PASSENGER SCREENING SERVICES AT THE PALM SPRINGS
INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Airport
SUMMARY:
This action will approve Amendment No. 1 to Non-Exclusive Operating and Lease Agreement No. 25L083 (Agreement) with Alclear, LLC dba CLEAR to adjust Commercial Activity Fee based upon CPI, include 10% commission on Meet and Assist Fee, and increase the Minimum Annual Guarantee (MAG) to $131,000 for biometric passenger screening at the Palm Springs International Airport (Airport/PSP).
RECOMMENDATION:
1. Approve Amendment No. 1 to a Non-Exclusive Operating and Lease Agreement No. 25L083 with Alclear, LLC dba CLEAR to adjust Commercial Activity Fee based upon CPI, include 10% commission on Meet and Assist Fee, and increase the Minimum Annual Guarantee (MAG) for biometric screening services at the Palm Springs International Airport (Airport/PSP).
2. Authorize the City Manager or designee to execute all necessary documents subject to such changes/revisions agreeable to the City Manager and City Attorney.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B) confirmed on March 28, 2025, Alclear, LLC dba CLEAR is a Delaware Limited Liability Company registered in the state of California and licensed to do business in the City of Palm Springs.
City Council Staff Report
March 11, 2026 – Page 2
Amendment No. 1 to Agreement 25L083 with Alclear, LLC dba CLEAR BACKGROUND:
In Calendar Year (CY) 2025, a total of 1,655,631 departing passengers used the Transportation Security Administration (TSA) security checkpoint at the Palm Springs International Airport. Of this total, approximately 194,809 or 11.8% were CLEAR members. This represents an 18% increase over CY 2024.
On April 9, 2025, the City Council approved Non-Exclusive Operating and Lease Agreement 25L083 (Attachment C) with CLEAR to lease Airport terminal space and provide biometric verifications of subscribing departing passengers at the Airport.
CLEAR’s service helps expedite the TSA’s security checkpoint processes for CLEAR members by reducing congestion and lessening passenger wait times. CLEAR members are escorted by a CLEAR employee to the TSA agent for screening through a designated lane at the TSA security checkpoint.
In September 2025, CLEAR approached the Airport with a request to begin offering meet and assist customer services at PSP through CLEAR’s Ambassador Assist program. This curbside to boarding gate service is available to CLEAR members who wish to have assistance throughout the Airport for a fee. In return for allowing CLEAR to offer this premium enhanced membership service, the Airport receives a 10% commission. This commission is in addition to the fixed lease space rent and the unique member verification fee.
STAFF ANALYSIS:
Since April 2022, CLEAR has verified over 500,000 unique members using the biometric processes at the Airport.
CLEAR operates four screening Pods in 285 square feet of space adjacent to the TSA checkpoint as well as the four screening Pods in 158 square feet of space on the south side of the main terminal doors for additional screening capacity and enrollments. Behind the verification lane, CLEAR occupies 426 square feet of office and breakroom space for their employees.
The continued presence and future growth of CLEAR will benefit passengers by helping expedite the TSA security checkpoint process for CLEAR members. CLEAR members can enjoy a streamlined and faster screening experience, as they are escorted by CLEAR employees through designated lanes, reducing wait times and alleviating congestion for travelers. Additionally, CLEAR will help alleviate general security line congestion, enhancing the overall passenger experience for all travelers. CLEAR’s growth of both members verified, and enhancement of services offered, will generate continued revenues for the Airport.
The amendment expressly authorizes CLEAR to provide meet and assist services at the Airport as a permitted commercial activity under the Agreement. This service, branded as City Council Staff Report
March 11, 2026 – Page 3
Amendment No. 1 to Agreement 25L083 with Alclear, LLC dba CLEAR CLEAR’s Ambassador Assist program, allows CLEAR members to receive curbside-to- gate assistance for an additional fee. In consideration for this expanded commercial activity, the amendment requires CLEAR to remit ten percent (10%) of gross revenues generated from the meet and assist service to the Airport as a commercial service fee.
In addition to the expansion of services, Amendment No. 1 also increases the lease rental rate to $136.90 per square foot per year for lobby and office space, with annual adjustments based on the Consumer Price Index (CPI). The amendment also increases the Commercial Activity Fee of $0.75 per unique member verification to escalate annually by CPI and to add a new Ambassador Assist fee equal to 10% of gross revenues generated from meet and assist services, excluding membership fees. Finally, the Minimum Annual Guarantee is increased under the amendment to $131,000.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council’s Strategic Plan Broad Goal of Economic Development, as well as the Airport’s Strategic Plan Priority 2 – Goal 2: Deliver an Unforgettable Guest Experience.
FISCAL IMPACT:
Based upon the current space leased by CLEAR in the Terminal building, the annual revenue to Airport Fund 415.38105 (Non-Airline Terminal Rent Fee) for FY 2026 will be $118,827.60. This amount may increase in FY 2027 based upon the July 1st Consumer Price Index (CPI) adjustment.
In addition to the rent for the Terminal building space, CLEAR is required to pay $0.75 per unique member verified using CLEAR biometric member screening services. This amendment will incorporate an increase in the fee based upon the July 1st CPI adjustment, calculated later this year. The amendment will also incorporate the 10% commission for CLEAR Ambassador Assist services as a Commercial Service Fee paid to the Airport.
City Council Staff Report
March 11, 2026 – Page 4
Amendment No. 1 to Agreement 25L083 with Alclear, LLC dba CLEAR Based upon the current trends of passenger enplanements and CLEAR members using their verification and meet and greet services, the estimated revenue to Airport Fund 415.38135 (Commercial Service Fees) for FY 2027 will be approximately $150,000, with a minimum annual guarantee of $131,000. Total revenue expected from CLEAR in FY 2027 will be at least $268,827.
REVIEWED BY:
Department Director: Harry Barrett Jr.
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 1 to Non-Exclusive Operating Lease Agreement 25L083 B. Public Integrity Disclosure
C. Non-Exclusive Operating Lease Agreement 25L083