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| TITLE: |
| Consideration and Approval of Lease Amendments: Flagstaff Airport Rental Car Concessions, IFB 2011-09A: Amendment to leases with Avis Budget Car Rental LLC, Alamo Rental Car/National Car Rental, The Hertz Corporation, and Enterprise Rent-A-Car companies. (Amendment to current leases with car companies for a one-year extension) |
| STAFF RECOMMENDED ACTION: |
- Approve the amendments to the current lease agreements for a lease renewal for one (1) year between the City of Flagstaff and Avis Budget Car Rental LLC, Alamo Rental Car/National Car Rental, The Hertz Corporation, and Enterprise Rent-A-Car Companies.
- Authorize the City Manager to execute all necessary documents.
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| Executive Summary: |
| Invitation for Bids ("IFB") for Rental Car Concession was last held in November 2010. The leases originating from the IFB have been amended and extended until May 31, 2023. The subject amendments extend the leases by an additional year, expiring May 31, 2024. This additional one-year extension will provide City staff sufficient time to issue a new invitation for bids for rental car concession at the airport. |
| Financial Impact: |
| The Airport will continue to receive revenue from the existing leases of at least $452,610 per year. Failure to extend the leases will result in a loss of car rental operations at the airport and the resulting revenue to the City until a new solicitation for car rental concessions can be issued. |
| Policy Impact: |
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| Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
Transportation and Other Public Infrastructure: provide Airport infrastructure to enhance tenant and patron experience and secure second airline. |
| Has There Been Previous Council Decision on This: |
| An Invitation for Bids for Rental Car Concession was held in November 2010, with Council approval on January 18, 2011. The terms of the lease agreement(s) were for an initial three (3) year term with two (2) additional one (1) year extensions subject to approval by the City Council and Lessee. In 2014, the leases were amended to remove the two (2) additional one (1) year extensions and replace them with a three (3) year extension. In 2017, the leases were amended again with an additional one (1) five (5) year extension, expiring May 31, 2022. On May 3rd, 2022, Council approved extending the leases by an additional year to expire on May 31, 2023. |
| Key Considerations: |
| Key Considerations: |
The extension of the Leases for one (1) additional year will:
- Assure car rental services for the public.
- Assure continued revenue that will grow with increased passenger service at the airport.
- Allow City staff to issue a new car rental concession invitation to bid
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