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HomeMy WebLinkAbout1/3/2007 - STAFF REPORTS - 3.A. ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 16.39 TO THE PALM SPRINGS MUNICIPAL CODE, RELATING TO RENTAL CAR AGENCIES AND THE ESTABLISHMENT OF A CUSTOMER FACILITIES CHARGE. City Attorney's Summary This ordinance implements the provisions of California Civil Code Section 1936 and creates a customer facilities charge to be assessed against rental car contracts for the purpose of funding the financing, design, and construction of consolidated car rental facilities. The ordinance also provides for general administrative requirements for on- airport and off-airport car rental agencies. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 16.39 is added to the Palm Springs Municipal Code to read: Chapter 16.39 CAR RENTAL AGENCIES AND CUSTOMER FACILITIES CHARGE Sections: 16.39.005 On-Airport Car Rental Agencies 16.39.010 Off-Airport Car Rental Agencies 16.39.015 Customer Facilities Charge 16,39.020 Reporting and Remittance 16.39.025 Recordkeeping Requirements 16.39.030 Charges Deemed Debt to City 16.39.035 Failure to Remit Charges to City 16.39.006 On-Airport Car Rental Agencies. A. No on-airport car rental agency shall occupy airport terminals, service lots, parking spaces, or other areas on the airport without either a lease or license providing authorization to occupy such areas in accordance with this title. 6. The Director may approve and execute a lease with an on-airport car rental agency, on behalf of the City, if the term of the lease is for three years or less. The Director may extend or renew any such lease as long as the total term of the lease, including any extension or renewal, does not exceed three years. 3•A D. If the total term of any such lease or leases is longer than three years, City Council approval of the execution of the lease is required. If the Director has approved a lease on behalf of the City which totals three years, the Director may not thereafter approve a subsequent lease of the same premises to the same tenant, without authorization of the City Council to do so. D. A lease with a term of three years or less for use of the airport for on-airport car rental agency commercial activity may be approved and executed by the Director on behalf of the City if the Director determines: 1. That adequate space is available to accommodate such activity consistent with the space requirements of other airport uses; 2. That the proposed lease of space would conform to the most recent airport layout plan for the airport; and 3. That the proposed lease of space conforms to the council policy for on- airport car rental agency commercial activity. E. Approval of such leases by either the Director or the City Council is at the City's sole discretion. F. An on-airport car rental agency shall maintain insurance in amounts and under terms and conditions established by the City's Risk Manager to be necessary or desirable to protect the City and the general public. The insurance requirements shall be included in any leases with the on-airport car rental agency. G. An on-airport car rental agency shall pay such rentals, fees, charges, and deposits as may be established by resolution of the City Council if the lease is approved by the Director, or as otherwise set forth in leases authorized by the City Council. H. All leases with an on-airport car rental agency shall contain such other terms, conditions and provisions as may be determined by the City Council or the Director, if the Director is authorized to approve the leases, to protect, the safety, welfare and convenience of the City and the general public. 16.39.010 Off-Airport Car Rental Agencies. A. No off-airport car rental agency shall engage in or perform any car rental commercial activity at the airport without a ground transportation permit issued pursuant to this Title. B. The Director is authorized to issue permits under this Section. Such permits shall be valid for specified periods not exceeding three years from date of issuance. In addition to the terms and conditions required by this Chapter, such permits shall contain such other terms and conditions as the Director determines to be necessary for the protection of the safety, convenience, and welfare of the City and the general public. C. An off-airport car rental agency shall be limited to the commercial activity of delivering rental cars to a customer, or picking up or dropping off the customer at the airport for delivery or return of a rental car off of the airport. No other commercial activity shall be authorized by any permit issued to an off-airport car rental agency under this Section. D. An off-airport car rental agency, in delivering rental cars or picking up or dropping off customers at the airport, shall be limited to authorized locations for such delivery, pick-up or drop-off on the airport, as designated by traffic markings or signs, in rules and regulations issued by Director or in the permit. 16.39.015 Customer Facilities Charge. A. Each person who rents a vehicle from an on-airport rental car agency located on the Airport or in any consolidated rental car facility shall pay a customer facilities charge in the amount as is provided in California Civil Code Section 1936, as may be amended from time to time. B. Each on-airport car rental agency shall surcharge a customer facilities charge on every contract for a car rental derived from its commercial activity at the airport. All customer facilities charges collected by any on-airport car rental agency on behalf of City shall be deemed a debt owed to the City by such car rental agency. Each on-airport car rental agency shall remit all customer facilities charges collected from its customers to the City in the manner prescribed by City in writing. C. The fees paid pursuant to this Section shall be only be used to finance, design, and construct consolidated airport car rental facilities consistent with the provisions of California Civil Code Section 1936, as may be amended from time to time. 115.39.020 Reporting and Remittance_ A. Each on-airport car rental agency shall, on or before the last day of each calendar month, prepare and submit a monthly charge report, in a form satisfactory to the City's Finance Director, that specifies the total number of car rental contracts let and the amount of customer facilities charges collected for the preceding calendar month. B. The full amount of the customer facilities charges collected in the preceding calendar month shall be remitted to the Director along with the monthly charge report. 16.39.025 Recordkeeping Requirements. It shall be the duty of every on-airport rental car agency and every off-airport rental car agency liable for the collection and payment to the City of any charge imposed by this Chapter to keep and preserve for a period of three years all records as may be deemed necessary by the City to determine the amount of any such charges for which such rental car agency may be liable for the collection of and remittance to the City. 16.39.030 Charges Deemed Debt to City. Any charge required to be paid by any person under the provisions of this Chapter shall be deemed a debt owed to the City. Remittance to the City of all funds required to be collected by any on-airport rental car agency pursuant to this Chapter is a fiduciary obligation of the rental car agency and collectible in the same manner as a debt. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount. 16.39.035 Failure to Remit Charges to City. Any person who fails to remit charges or who does not remit charges in a timely manner shall, in addition to all remedies available to City under this Code and state law, be barred from using the airport or its facilities for the conducting of any commercial activity whatsoever. SECTION 2. The definition of "Director of Aviation" and "Director" as defined in Section 15.02.015 of the Palm Springs Municipal Code is amended to read: "Director of Aviation" or `Director" means the City Manager of the City of Palm Springs or the designee or designees of the City Manager. SECTION 3. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED AND ADOPTED THIS DAY OF 2006. AYES: NOES: ABSTAIN: ABSENT: RON ODEN, MAYOR ATTEST: James Thompson, City Clerk APPROVED AS TO FORM: Douglas Holland, City Attorney { FpALMsp� ti �2 c V N oq#1ev+per ,FOR CITY COUNCIL STAFF REPORT DATE: January 3, 2007 LEGISLATIVE SUBJECT: INTRODUCTION AND FIRST READING OF PROPOSED ORDINANCE ADDING CHAPTER 16.39 TO THE PALM SPRINGS MUNICIPAL CODE, RELATING TO RENTAL CAR AGENCIES AND THE ESTABLISHMENT OF A CUSTOMER FACILITIES CHARGE FROM: David H. Ready, City Manager BY: Richard S. Walsh, Director of Aviation SUMMARY The introduction and first reading of this Ordinance adding Chapter 16.39 to the Palm Springs Municipal Code, relating to rental car agencies and the establishment of a customer facilities charge. RECOMMENDATION: 1. Waive the reading of the ordinance text in its entirety and read by title only. Ordinance No. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING 16.39 TO THE PALM SPRINGS MUNICIPAL CODE, RELATING TO RENTAL CAR AGENCIES AND THE ESTABLISHMENT OF A CUSTOMER FACILITIES CHARGE. STAFF ANALYSIS: At its regularly scheduled June 7, 2006 Meeting, City Council approved to award full service airport rental car concession agreements to the five highest bidders — The Hertz Corporation, Budget Rent A Car System, Inc., DTG Operations, Inc. (Dollar/Thrifty), Vanguard Car Rental USA Inc. (National/Alamo), and Avis Rent A Car System, LLC and one limited service airport rental car concession agreement to Enterprise Rent — A — Car Company of Los Angeles. Included in the new concession agreements with the airport rental car operators is the provision to implement a Customer Facility Charge (CFC). This is a $10.00 per transaction fee that is collected by the airport rental car operators on behalf of the City from rental car customers, and is regulated by California State Law. The CFC fee can only be used for the expansion and enhancement of common airport rental car facility ITEM NO. il_�� City Council Staff Report January 3, 2007 -- Page 2 CFC Ordinance areas. This fee will only be implemented upon approval by the Council. Staff consulted with the airport rental operators regarding the need to expand and enhance common facilities before requesting Council approval. Upon approval of the Council, staff will then give no less than a 60 day implementation notice to the airport rental car operators. Further, at the Airport Commissions regularly scheduled December 6, 2006 meeting, a discussion was held to review the merits of imposing such an ordinance. The discussion primarily revolved around funding of typical projects, i.e., what the Airport could use these funds for, and the timing of imposing the ordinance. The Airport Commission requested this item be brought before them at its January 3, 2007 regularly scheduled meeting to include the draft ordinance. Also, a meeting was held with Rental Car companies on October 20, 2006 to discuss the possible projects that will be funded by the CFC. Subsequent to this meeting, the draft ordinance was circulated to the rental car agencies and consideration was given there comments, some of which are reflected in the current draft ordinance. The proposed projects and tentative timeline are: Phase One — Ready Return Lot Expansion to 200 spaces or more (Currently 149 spaces): • Complete concept for ready/ return plan (April 2007) • Two design concepts -- existing lot and planned lot (July 2007) • Review concepts with Rental Car companies (September 2007) • Final design — advertise for bids (December 2007) • Take possession of additional property and begin construction (February 2008) • Expansion of ready / return lot completed (May 2008) Phase Two — Replace Current Service Facilities: • PSP evaluation of potential sites • Kickoff planning meeting with Rental Car companies (August 2007) Phase Three— Portion of New Parking Garage Dedicated to Rental Cars • Tentative 2010 At its regularly scheduled meeting on January 3, 2007, the Airport Commission recommended the City Council approve the CFC Ordinance Chapter 16.39. City Council Staff Report January 3, 2007 -- Page 3 CFC Ordinance FISCAL IMPACT: Finance Director Review: Based upon the per transaction fee of $10.00 and at an anticipated annual transaction rate of 160,000 transactions, the Airport anticipates annual revenue from the implementation of the CFC at $1.6 m. Richard 5. Walsh, Director of Aviation David H. Rea y Manager Attachment: Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 16.39 TO THE PALM SPRINGS MUNICIPAL CODE, RELATING TO RENTAL CAR AGENCIES AND THE ESTABLISHMENT OF A CUSTOMER FACILITIES CHARGE. City Attorney's Summary This ordinance implements the provisions of California Civil Code Section 1936 and creates a customer facilities charge to be assessed against rental car contracts for the purpose of funding the financing, design, and construction of consolidated car rental facilities. The ordinance also provides for general administrative requirements for on- airport and off-airport car rental agencies. The City Council of the City of Palm Springs ordains: SECTION 1. Chapter 16.39 is added to the Palm Springs Municipal Code to read: Chapter 16,39 CAR RENTAL AGENCIES AND CUSTOMER FACILITIES CHARGE Sections: 16.39.005 On-Airport Car Rental Agencies 16.39.010 Off-Airport Car Rental Agencies 16.39.015 Customer Facilities Charge 16.39.020 Reporting and Remittance 16.39.025 Recordkeeping Requirements 16.39.030 Charges Deemed Debt to City 16.39.035 Failure to Remit Charges to City 16.39.05 On-Airport Car Rental Agencies. A. No on-airport car rental agency shall occupy airport terminals, service lots, parking spaces, or other areas on the airport without either a lease or license providing authorization to occupy such areas in accordance with this tille. B. The Director may approve and execute a lease with an on-airport car rental agency, on behalf of the City, if the term of the lease is for three years or less. The Director may extend or renew any such lease as long as the total term of the lease, including any extension or renewal, does not exceed three years. D. If the total term of any such lease or leases is longer than three years, City Council approval of the execution of the lease is required. If the Director has approved a lease on behalf of the City which totals three years, the Director may not thereafter approve a subsequent lease of the same premises to the same tenant, without authorization of the City Council to do so. D. A lease with a term of three years or less for use of the airport for on-airport car rental agency commercial activity may be approved and executed by the Director on behalf of the City if the Director determines: 1. That adequate space is available to accommodate such activity consistent with the space requirements of other airport uses; 2. That the proposed lease of space would conform to the most recent airport layout plan for the airport; and 3. That the proposed lease of space conforms to the council policy for on- airport car rental agency commercial activity. E. Approval of such leases by either the Director or the City Council is at the City's sole discretion. F. An on-airport car rental agency shall maintain insurance in amounts and under terms and conditions established by the City's Risk Manager to be necessary or desirable to protect the City and the general public. The insurance requirements shall be included in any leases with the on-airport car rental agency- G. An on-airport car rental agency shall pay such rentals, fees, charges, and deposits as may be established by resolution of the City Council if the lease is approved by the Director, or as otherwise set forth in leases authorized by the City Council. H. All leases with an on-airport car rental agency shall contain such other terms, conditions and provisions as may be determined by the City Council or the Director, if the Director is authorized to approve the leases, to protect, the safety, welfare and convenience of the City and the general public. 113.39.10 Off-Airport Car Rental Agencies. A. No oft-airport car rental agency shall engage in or perform any car rental commercial activity at the airport without a ground transportation permit issued pursuant to this Title. B. The Director is authorized to issue permits under this Section. Such permits shall be valid for specified periods not exceeding three years from date of issuance. In addition to the terms and conditions required by this Chapter, such permits shall contain such other terms and conditions as the Director determines to be necessary for the protection of the safety, convenience, and welfare of the City and the general public- C. An off-airport car rental agency shall be limited to the commercial activity of delivering rental cars to a customer, or picking up or dropping off the customer at the airport for delivery or return or a rental car off of the airport. No other commercial activity shall be authorized by any permit issued to an off-airport car rental agency under this Section- D. An off-airport car rental agency, in delivering rental cars or picking up or dropping off customers at the airport, shall be limited to authorized locations for such delivery, pick-up or drop-off on the airport, as designated by traffic markings or signs, in rules and regulations issued by Director or in the permit. 16.39.015 Customer Facilities Charge. A. Each person who rents a vehicle from an on-airport rental car agency located on the Airport or in any consolidated rental car facility shall pay a customer facilities charge in the amount as is provided in California Civil Code Section 1936, as may be amended from time to time. B. Each on-airport car rental agency shall surcharge a customer facilities charge on every contract for a car rental derived from its commercial activity at the airport. All customer facilities charges collected by any on-airport car rental agency on behalf of City shall be deemed a debt owed to the City by such car rental agency. Each on-airport car rental agency shall remit all customer facilities charges collected from its customers to the City in the manner prescribed by City in writing. C. The fees paid pursuant to this Section shall be only be used to finance, design, and construct consolidated airport car rental facilities consistent with the provisions of California Civil Code Section 1936, as may be amended from time to time. 16.39.020 Reporting and Remittance. A. Each on-airport car rental agency shall, on or before the last day of each calendar month, prepare and submit a monthly charge report, in a form satisfactory to the City's Finance Director, that specifies the total number of car rental contracts let and the amount of customer facilities charges collected for the preceding calendar month. B. The Full amount of the customer facilities charges collected in the preceding calendar month shall be remitted to the Director along with the monthly charge report. 16.39.025 Recordkeeping Requirements. It shall be the duty of every on-airport rental car agency and every off-airport rental car agency liable for the collection and payment to the City of any charge imposed by this Chapter to keep and preserve for a period of three years all records as may be deemed necessary by the City to determine the amount of any such charges for which such rental car agency may be liable for the collection or and remittance to the City. 16.39.030 Charges Deemed Debt to City. Any charge required to be paid by any person under the provisions of this Chapter shall be deemed a debt owed to the City. Remittance to the City of all funds required to be collected by any on-airport rental car agency pursuant to this Chapter is a fiduciary obligation of the rental car agency and collectible in the same manner as a debt. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount. 115.39.031 Failure to Remit Charges to City. Any person who fails to remit charges or who does not remit charges in a timely manner shall, in addition to all remedies available to City under this Code and state law, be barred from using the airport or its facilities for the conducting of any commercial activity whatsoever. SECTION 2. The definition of "Director of Aviation" and "Director' as defined in Section 16.02.015 of the Palm Springs Municipal Code is amended to read: "Director of Aviation" or "Director' means the City Manager of the City of Palm Springs or the designee or designees of the City Manager. SECTION 3. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED AND ADOPTED THIS DAY OF , 2006. AYES: NOES: ABSTAIN: ABSENT: RON ODEN, MAYOR ATTEST: James Thompson, City Clerk APPROVED AS TO FORM: Douglas Holland, City Attorney