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6.17.
Regular City Council Meeting
Meeting Date:
04/27/2021
Information
Agenda Item
Resolutions - Aviation:
Consider resolutions authorizing the Mayor to execute Amendment No. 1 to contracts with EAN Holdings LLC, dba Enterprise Rent-A-Car; EAN Holdings LLC, dba Alamo Rent A Car; EAN Holdings LLC, dba National Car Rental; The Hertz Corporation; and Avis Rent A Car System, for the Rental Car Minimum Annual Guarantee (MAG) Abatements at Lubbock Preston Smith International Airport.
Item Summary
Due to the uncertainty and persistence of the effect of COVID-19 on operations and car rentals at Lubbock Preston Smith International Airport, all rental car companies desire to amend the lease to allow for periods of abatement that are reasonable and beneficial to both parties.
The abatement clause currently states "If, for any reason, the number of passengers deplaning on scheduled airline flights at the Airport during any monthly period shall be less than 85% of the number of such deplaning passengers for the same month of the immediately preceding year, the Minimum Annual Guarantee (MAG) shall be abated for the period of time the condition or conditions continue to exist." As such, when comparing 2021 to 2020 deplanements, the MAG would be reinstated beginning in March 2021, due to the drastic downturn in 2020.
Additionally, the agreement allows for Lessee termination of the agreement if the condition persists for more than 6 months.
The proposed amendment revises these provisions to state:
• If, for any reason, the number of passengers deplaning on scheduled airline flights at the Airport during any monthly period shall be less than 85% of the number of such deplaning passengers for the same month of 2019, the MAG shall be abated for the period of time the condition or conditions continue to exist: and,
• In the event any of the above conditions continue for a period in excess of eighteen (18) consecutive months, Lessee shall have the right to terminate this Agreement.
• The amendment shall have a retroactive application to the first day of the agreement from September 1, 2020, through August 31, 2022.
Airport staff and the Airport Advisory Board recommend approval of Amendment No. 1 for the rental car MAG abatements at Lubbock Preston Smith International Airport.
Fiscal Impact
Revenue loss will be offset by federal grant relief funds.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Airport Advisory Board
Attachments
Resolution Amendment 1 Enterprise
Amendment 1 Enterprise
Resolution Amendment 1 Alamo
Amendment 1 Alamo
Resolution Amendment 1 Hertz
Amendment 1 Hertz
Resolution Amendment 1 Avis
Amendment 1 Avis
Resolution Amendment 1 National
Amendment 1 National
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