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, to continue leases on a month-to-month basis.
 

1. Approve amendments to the current leases 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, to continue the leases on a month-to-month basis; and
2. Authorize the City Manager to execute all necessary documents.

If approved, the current Airport car rental concessionaire leases will be continued on a month-to-month basis pending completion of a new invitation for bids and the award of resulting new leases.  The last Invitation for Bids ("IFB") for Rental Car Concession was  held in November 2010. The leases originating from the IFB have been amended and extended until May 31, 2024.  A sample form of lease extension is attached.

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 completed.
 

The City Council has previously approved leases and amendments, as listed in the Executive Summary.

1. Approve extension of leases on a month-to-month basis (Recommended);
2. Approve extension of leases for a longer term (e.g. 6 or 8 months);
3. Do not approve extension of leases, in which case there may be no car rental concessionaires operating at the Airport for a period of time (Not recommended).

Transportation and Other Public Infrastructure: provide Airport infrastructure to enhance tenant and patron experience and secure second airline.

Policy T.10.2. Improve multimodal access and service to and from the airport including transit, bicycle, and parking services.

EM-3:  Support residents, businesses, and institutions in the transition to electric vehicles. 
WS-3:  Continue to support water conservation efforts across the Flagstaff community.

As part of the new solicitation, City will be requiring surveys as to anticipated needs for improvements to car rental concessionaire facilities to increase use of electric vehicle fleets.  City will also be requiring concessionaires to start paying for its use of water for the wash bays, which the City anticipates will result in reduction of water use.