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Date: June 21, 2017 NEW BUSINESS
Subject: APPROVAL OF AMENDMENTS TO EXISTING AIRPORT CAR RENTAL
CONCESSION AGREEMENTS INCREASING RENTAL RATES AND
EXTENDING THE TERM BY UP TO THREE YEARS
From: David H. Ready, City Manager
Initiated by: PSP International Airport
SUMMARY
This action provides for the City Council's approval of an amendment to the existing
lease agreements previously approved with five various car rental agencies currently
operating at the Palm Springs International Airport (PSP). The term of the existing lease
agreements ends June 30, 2017, and the proposed amendments will extend the term
one year to June 30, 2018, with two additional one-year optional extensions through
June 30, 2020. The proposed amendments also include an increase of 40.4% to the
current terminal rent, service facility rent, ready parking space rate, and overflow
parking space rate paid by the car rental agencies.
RECOMMENDATION:
1) Approve Amendment No. 3 to Agreement No. 6110 with Avis Budget Car Rental,
LLC, dba Avis Rent A Car System, LLC, and Budget Rent A Car System, Inc.,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
2) Approve Amendment No. 2 to Agreement No. 6111 with The Hertz Corporation,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
3) Approve Amendment No. 2 to Agreement No. 6112 with Enterprise Rent-A-Car
Company of Los Angeles, LLC, dba Alamo Rent A Car and National Car Rental,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
ITEM NO. '- H
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c4`'F°""�P CITY COUNCIL STAFF REPORT
Date: June 21, 2017 NEW BUSINESS
Subject: APPROVAL OF AMENDMENTS TO EXISTING AIRPORT CAR RENTAL
CONCESSION AGREEMENTS INCREASING RENTAL RATES AND
EXTENDING THE TERM BY UP TO THREE YEARS
From: David H. Ready, City Manager
Initiated by: PSP International Airport
SUMMARY
This action provides for the City Council's approval of an amendment to the existing
lease agreements previously approved with five various car rental agencies currently
operating at the Palm Springs International Airport (PSP). The term of the existing lease
agreements ends June 30, 2017, and the proposed amendments will extend the term
one year to June 30, 2018, with two additional one-year optional extensions through
June 30, 2020. The proposed amendments also include an increase of 40.4% to the
current terminal rent, service facility rent, ready parking space rate, and overflow
parking space rate paid by the car rental agencies.
RECOMMENDATION:
1) Approve Amendment No. 3 to Agreement No. 6110 with Avis Budget Car Rental,
LLC, dba Avis Rent A Car System, LLC, and Budget Rent A Car System, Inc.,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
2) Approve Amendment No. 2 to Agreement No. 6111 with The Hertz Corporation,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
3) Approve Amendment No. 2 to Agreement No. 6112 with Enterprise Rent-A-Car
Company of Los Angeles, LLC, dba Alamo Rent A Car and National Car Rental,
increasing rental rates by 40.4% and extending the term by one year through June
30, 2018, subject to two additional one-year optional extensions at the City's
discretion; and
ITEM NO. C
City Council Staff Report
June 21, 2017— Page 2
Approval of Car Rental Lease Agreement Amendments
Palm Springs International Airport
4) Approve Amendment No. 2 to Agreement No. 6113 with Enterprise Rent-A-Car
Company of Los Angeles, LLC, dba Enterprise Rent-A-Car, increasing rental rates
by 40.4% and extending the term by one year through June 30, 2018, subject to two
additional one-year optional extensions at the City's discretion; and
5) Approve Amendment No. 2 to Agreement No. 6114 with DTG Operations, Inc., dba
Dollar Rent A Car and Thrifty Car Rental, increasing rental rates by 40.4% and
extending the term by one year through June 30, 2018, subject to two additional
one-year optional extensions at the City's discretion; and
6) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On June 15, 2011, the City Council approved lease agreements with five different car
rental agencies to operate non-exclusive car rental concessions at PSP. The original
term of these lease agreements was for three years, through June 30, 2014.
By the close of the initial three-year term of these lease agreements in 2014, PSP had
not yet completed its Master Plan Update to address relocation of car rental facilities
and adjustment of baggage claim counters and vehicle service facilities. At that time,
City Council approved amendments to the lease agreements with the five various car
rental agencies, providing for a three-year extension of term through June 30, 2017,
with increases of approximately 13% to fixed rents charged for terminal rent, service
facility rent, ready space rate, and overflow space rates.
On October 21, 2015, the City Council held a public hearing and adopted Resolution
No. 23908 approving the Master Plan Update for the Palm Springs International Airport
(the "Master Plan"). The Master Plan identified a Recommended Alternative that
included a major capital project that will reconfigure the existing ready/return car rental
lot to accommodate a Quick Turn Around (QTA) facility and structured parking and
ready/return. The QTA facility and structured parking for rental cars will be located on
the site of the existing rental car ready/return lot located on the north side of the
terminal, as identified in the adopted Master Plan shown below:
02
City Council Staff Report
June 21, 2017— Page 3
Approval of Car Rental Lease Agreement Amendments
Palm Springs International Airport
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As noted in the October 21, 2015, staff report, it was estimated that the QTA facility and
structured parking for car rentals was estimated to cost $24-$25 Million, and would be
funded through capital funds generated by Customer Facility Charges (CFCs)
authorized to be levied at PSP by the FAA.
With adoption of the PSP Master Plan Update, PSP is initiating the process to select
professional consultants to provide design development, and prepare preliminary and
final construction drawings for construction of the QTA facility and structured parking
garage for consolidation of car rental operations at PSP. It is anticipated that the
timeframe for completion of design, construction bidding, and construction will take a
minimum of three years.
It is staff's recommendation that in lieu of issuing a Request for Bids solicitation for new
car rental concession lease agreements at this time, that the City Council consider
amending the existing lease agreements to extend the term one year through June 30,
2018, with two optional one-year additional extensions through June 30, 2020. Given
the uncertainty with the timing on delivery of the new QTA and structured parking facility
03
City Council Staff Report
June 21, 2017— Page 4
Approval of Car Rental Lease Agreement Amendments
Palm Springs International Airport
for car rental operations, issuing a formal bid process at this time might not yield the
best terms of new car rental concession agreements. It is expected that with the QTA
and structured parking facility in construction by 2020, PSP will then be in better
position to competitively bid car rental concession agreements, yielding improved
financial terms relative to PSP's delivery of a new and modern, consolidated car rental
operations facility.
Given the pending renovations specific to the car rental operations at PSP, extending
the term of these non-exclusive concession agreements is recommended to maintain
certainty of continued operations with the existing car rental agencies and increase
Airport revenues.
Staff has discussed the proposed term extensions with the local FAA Airport District
Office, and represents that FAA staff indicated nothing objectionable regarding the
amendments.
Finally, the Airport Commission, at its March 15, 2017 meeting, voted unanimously to
recommend approval of the lease amendments to the City Council.
ENVIRONMENTAL IMPACT:
Section 15061 (b)(3) of the California Environmental Quality Act (CEQA) Guidelines
exempts activities that are covered under the general rule that CEQA applies only to
projects that have the potential to cause significant effects on the environment. Where it
can be seen with certainty that there is no possibility the activity in question may have a
significant effect upon the environment, the activity is not subject to CEQA. The
requested action relates to approval of amendments to existing lease agreements for
car rental concessions at PSP, which itself will not result in any new direct physical
impacts to the environment. Therefore, the requested action is considered exempt from
CEQA.
FISCAL IMPACT:
The rental car concession fees at PSP are consistent with industry practice, and are
calculated using the greater of either a minimum annual guarantee or 10% of gross
revenue. In addition to this base fee, there are fixed rents charged to each of the car
rental agencies depending upon the amount of space occupied and facilities used. In
2016, the various car rental agencies operating at PSP collectively paid $5,823,324
based primarily from 10% of the gross revenue generated from rental transactions. In
addition, they collectively paid $845,500 in fixed rents charged for space leased.
04
City Council Staff Report
June 21. 2017— Page 5
Approval of Car Rental Lease Agreement Amendments
Palm Springs International Airport
The proposed amendments represent a significant increase of 40.4% to the fixed rents
charged for terminal leases, service facility rents, ready space rates, and overflow
space rates, to partially offset the cost of additional Airport security which was included
in the new fiscal year budget.
These fixed rent charges have increased over 50% since 2011, and the new
amendments will increase revenue by $345,000 annually effective July 1, 2017.
Because the proposed rental rate increases fall in the middle of the car rental
companies' fiscal year (January through December), they had requested the rate
increase for the period of July through December 2017 be $70,000, with the remaining
balance of $275,000 being collected from January through June 2018. Effective July 1,
2018, the rate will be adjusted so the monthly rates remain the same through June 30,
2020.
SUBMITTED
Marcus L. Fuller, MPA, P.E., P.L.S. Thomas Nolan
Assistant City Manager Executive Director, Airport
David H. Ready, Esq., P .
City Manager
Attachments:
1. Lease Agreement Amendments
05
Attachment 1
06
AMENDMENT NO. 3 TO LEASE A6110
AVIS BUDGET CAR RENTAL, LLC
D/B/A AVIS RENT A CAR SYSTEM, LLC AND BUDGET RENT A CAR SYSTEM, INC
OPERATING AND LEASE AGREEMENT
FOR OPERATION OF A CAR RENTAL CONCESSION
AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT NO. 3 to that certain NON-EXCLUSIVE OPERATING AND
LEASE AGREEMENT NO. 6110, ("Agreement"), is made and entered into this _day
of June, 2017, by and between the CITY OF PALM SPRINGS, a California charter city
and municipal corporation, ("City"), and AVIS BUDGET CAR RENTAL, LLC, a
Delaware limited liability company, doing business as AVIS RENT A CAR SYSTEM,
LLC, another Delaware limited liability company, and BUDGET RENT A CAR SYSTEM,
INC., a Delaware corporation, ("Tenant"), having its usual place of business at the Palm
Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California
92262, and a permanent mailing address at 6 Sylvan Way, Parsippany, New Jersey
07054. City and Tenant may hereinafter be referred to individually as a "Party" and
collectively as "Parties".
RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement
for Tenant's lease and operation at Palm Springs International Airport ("Airport"), as
more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain
Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and
WHEREAS, effective January 1, 2016, City and Tenant entered into that certain
Amendment No. 2 to seasonally increase leased counter space for 2016 and 2017; and
WHEREAS, the Parties wish to amend the Agreement to extend the term by one
year through June 30, 2018, subject to two additional one year optional extensions to
be exercised at the City's sole discretion, and to increase certain fixed rent charges as
specified in the Agreement, as more specifically described herein this AMENDMENT
NO. 3.
AGREEMENT
NOW THEREFORE, in recognition of the true and correct recitals above incorporated
by this reference herein, and in consideration of the City's covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, City and Tenant mutually agree as follows:
1 07
Premises: Each of Tenant's rental car agencies shall retain its existing
rental location for customer ticketing and transactions, along
with vehicle maintenance buildings and adjacent vehicle
storage per the Agreement as previously amended
(hereinafter, simply the "Agreement"). Ready and return car
spaces shall also be subject to existing terms and conditions
of the Agreement.
Term: One year, commencing on the Effective Date July 1, 2017,
through June 30, 2018.
Extension Option: Two (2), one (1) year options available at the discretion of
the City.
Early Lease Termination:Tenant is advised, and hereby accepts notice and
acknowledges that the Airport is planning to construct a new
rental car center or to substantially renovate the existing
rental car center, and such construction or renovation will
impact the Airport's available leased areas used in
conjunction with the rental car facilities. The City Manager,
in his sole discretion, has the authority to terminate the
Agreement during the term or any extension option year if
(a) the construction of the new rental car center is
substantially complete prior to June 30, 2020, or (b) the
rental car facilities renovations require a relocation of the
Tenant. In the event the City Manager exercises this early
termination, the City shall (i) meet and confer with
representatives from each of Tenant's rental car agencies,
(fi) provide Tenant with six (6) months' written notice of the
early termination, and (iii) negotiate and agree with Tenant
upon a transition plan and interim agreement, whereby City,
to the greatest extent practicable, shall make reasonably
comparable space available to Tenant in which Tenant's
rental car agencies may conduct their business. At a
reasonable and mutually agreed time, prior to City's opening
of its new or renovated rental car center, City will negotiate
with Tenant as to the terms and conditions of a new lease
agreement.
Rental Rate Adjustment: Commencing for the term of this AMENDMENT NO. 3 to the
Agreement:
Counter Square Footage: 547 (+130 s.f. seasonal)
Services Facilities Square Footage: 72,921
Ready Return Spaces: 91
2 08
Effective July 1, 2017, the annual rent shall be adjusted as
indicated in the following table:
Effective Terminal Service Ready Overflow
Dates Rent Facility Spaces Spaces
Effective $46.70 / SF $0.87 / SF $1,400 /space $1.50 / space
July 1, 2017
Effective $56.18 / SF $1.05 / SF $1,684 / space $1.80 / space
August 1, 2017
Effective $83.92 / SF $1.56 / SF $2,516 / space $2.70 / space
January 1, 2018
Effective $65.55 / SF $1.22 / SF $1,965.24 / $2.11 / space
July 1, 2018 space
Covenant Against Discrimination:
In connection with its performance under this Agreement,
Tenant shall not discriminate against any employee or
applicant for employment because of race, religion, color,
sex, age, marital status, ancestry, national origin, sexual
orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each an
"Impermissible Basis for Discrimination"). Tenant shall
ensure that applicants are employed, and that employees
are treated during their employment, without regard to any
Impermissible Basis for Discrimination. Such actions shall
include, but not be limited to, the following: employment,
upgrading demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including
apprenticeship.
Full Force and Effect: Except as expressly modified herein all other provisions of
the Agreement, as previously amended, shall remain
unmodified, and in full force and effect.
Corporate Authority: The persons executing this AMENDMENT NO. 3 on behalf
of the parties hereto warrant that (i) such party is duly
organized and existing, (ii) they are dully authorized to
execute and deliver this AMENDMENT NO. 3 on behalf of
said party, (iii) by so executing this AMENDMENT NO. 3,
such party is formally bound to the provisions of the
AMENDMENT NO. 3, and (iv) the entering into this
AMENDMENT NO. 3 does not violate any provision of any
other agreement to which said party is bound.
3 09
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY„
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Edward Z. Kotkin, Kathleen D. Hart, MMC,
City Attorney Interim City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No. 6110
"TENANT", "IS BUDGET CAR RENTAL, LLC, a Delaware limited liability company,
doing business as AVIS RENT A CAR SYSTEM, LLC, another Delaware limited
liability company, and BUDGET RENT A CAR SYSTEM, INC., a Delaware corporation,
6 Sylvan Way
Parsippany, NJ 07054
Corporations require two notarized signatures. One signature must be from the Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary,Treasurer, Assistant Treasurer,
or Chief Financial Officer.
By: By.
Signature(Notarized) Signature(Notarized)
Printed Name/Title Printed Namerritle
4 10
AMENDMENT NO. 2 TO LEASE A6111
THE HERTZ CORPORATION
OPERATING AND LEASE AGREEMENT
FOR OPERATION OF A CAR RENTAL CONCESSION
AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT NO. 2 to that certain NON-EXCLUSIVE OPERATING AND
LEASE AGREEMENT NO. 6111, ("Agreement"), is made and entered into this day
of June, 2017, by and between the CITY OF PALM SPRINGS, a California charter city
and municipal corporation, ("City"), and THE HERTZ CORPORATION, a Delaware
corporation, ("Tenant"), having its usual place of business at the Palm Springs
International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262,
and a permanent mailing address at 225 Brae Boulevard, Park Ridge, New Jersey
07656. City and Tenant may hereinafter be referred to individually as a "Party" and
collectively as "Parties".
RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement
for Tenant's lease and operation at Palm Springs International Airport ("Airport"), as
more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain
Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and
WHEREAS, the Parties wish to amend the Agreement to extend the term by one
year through June 30, 2018, subject to two additional one year optional extensions to
be exercised at the City's sole discretion, and to increase certain fixed rent charges as
specified in the Agreement, as more specifically described herein this AMENDMENT
NO. 2.
AGREEMENT
NOW THEREFORE, in recognition of the true and correct recitals above incorporated
by this reference herein, and in consideration of the City's covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, City and Tenant mutually agree as follows:
Premises: Tenant shall retain its existing rental location for customer
ticketing and transactions, along with vehicle maintenance
buildings and adjacent vehicle storage per the Agreement as
previously amended (hereinafter, simply the "Agreement").
Ready and return car spaces shall also be subject to existing
terms and conditions of the Agreement.
t 11 ,
Term: One year, commencing on the Effective Date July 1, 2017,
through June 30, 2018.
Extension Option: Two (2), one (1) year options available at the discretion of
the City.
Early Lease Termination:Tenant is advised, and hereby accepts notice and
acknowledges that the Airport is planning to construct a new
rental car center or to substantially renovate the existing
rental car center, and such construction or renovation will
impact the Airport's available leased areas used in
conjunction with the rental car facilities. The City Manager,
in his sole discretion, has the authority to terminate the
Agreement during the term or any extension option year if
(a) the construction of the new rental car center is
substantially complete prior to June 30, 2020, or (b) the
rental car facilities renovations require a relocation of the
Tenant. In the event the City Manager exercises this early
termination, the City shall (i) meet and confer with Tenant,
(ii) provide Tenant with six (6) months' written notice of the
early termination, and (iii) negotiate and agree with Tenant
upon a transition plan and interim agreement, whereby City,
to the greatest extent practicable, shall make reasonably
comparable space available to Tenant in which Tenant may
conduct its business. At a reasonable and mutually agreed
time, prior to City's opening of its new or renovated rental car
center, City will negotiate with Tenant as to the terms and
conditions of a new lease agreement.
Rental Rate Adjustment: Commencing for the term of this AMENDMENT NO. 2 to the
Agreement:
Counter Square Footage: 547
Services Facilities Square Footage: 73,231
Ready Return Spaces: 58
Effective July 1, 2017, the annual rent shall be adjusted as
indicated in the following table:
THIS SPACE INTENTIONALLY LEFT BLANK
2
12
Effective Terminal Service Ready Overflow
Dates Rent Facility Spaces Spaces
Effective $46.70 / SF $0.87 / SF $1,400 / space $1.501 space
July 1, 2017
Effective $56.18 / SF $1.05 / SF $1,684 /space $1.801 space
August 1, 2017
Effective $83.92 / SF $1.56 / SF $2,5161 space $2.70 / space
January 1, 2018
Effective $65.551 SF $1.221 SF $1,965.24 / $2.11 / space
July 1, 2018 space
Covenant Against Discrimination:
In connection with its performance under this Agreement,
Tenant shall not discriminate against any employee or
applicant for employment because of race, religion, color,
sex, age, marital status, ancestry, national origin, sexual
orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each an
"Impermissible Basis for Discrimination"). Tenant shall
ensure that applicants are employed, and that employees
are treated during their employment, without regard to any
Impermissible Basis for Discrimination. Such actions shall
include, but not be limited to, the following: employment,
upgrading demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including
apprenticeship.
Full Force and Effect: Except as expressly modified herein all other provisions of
the Agreement, as previously amended, shall remain
unmodified and in full force and effect.
Corporate Authority: The persons executing this AMENDMENT NO. 2 on behalf
of the parties hereto warrant that (i) such party is duly
organized and existing, (fi) they are dully authorized to
execute and deliver this AMENDMENT NO. 2 on behalf of
said party, (fii) by so executing this AMENDMENT NO. 2,
such party is formally bound to the provisions of the
AMENDMENT NO. 2, and (iv) the entering into this
AMENDMENT NO. 2 does not violate any provision of any
other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
3
13
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Edward Z. Kotkin, Kathleen D. Hart, MMC,
City Attorney Interim City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No. 6111
"TENANT", THE HERTZ CORPORATION, a Delaware corporation
225 Brae Boulevard
Park Ridge, NJ 07656
Corporations require two notarized signatures. One signature must be from the Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary,Assistant Secretary, Treasurer, Assistant Treasurer,
or Chief Financial Officer.
By: By:
Signature (Notarized) Signature(Notarized)
Printed Namerritle Printed Namerritle
4 14
AMENDMENT NO. 2 TO LEASE A6112
ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC
D/B/A ALAMO RENT A CAR AND NATIONAL CAR RENTAL
OPERATING AND LEASE AGREEMENT
FOR OPERATION OF A CAR RENTAL CONCESSION
AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT NO. 2 to that certain NON-EXCLUSIVE OPERATING AND
LEASE AGREEMENT NO. 6112, ("Agreement"), is made and entered into this _day
of June, 2017, by and between the CITY OF PALM SPRINGS, a California charter city
and municipal corporation, ("City"), and ENTERPRISE RENT-A-CAR COMPANY OF
LOS ANGELES, LLC, a Delaware limited liability company, doing business as ALAMO
RENT A CAR and NATIONAL CAR RENTAL ("Tenant"), having its usual place of
business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm
Springs, California 92262, and a permanent mailing address at 333 City Blvd. West Ste.
1101, Orange, CA 92868. City and Tenant may hereinafter be referred to individually as
a "Party' and collectively as "Parties".
RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement
for Tenant's lease and operation at Palm Springs International Airport ("Airport"), as
more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain
Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and
WHEREAS, the Parties wish to amend the Agreement to extend the term by one
year through June 30, 2018, subject to two additional one year optional extensions to
be exercised at the City's sole discretion, and to increase certain fixed rent charges as
specified in the Agreement, as more specifically described herein this AMENDMENT
NO. 2.
AGREEMENT
NOW THEREFORE, in recognition of the true and correct recitals above incorporated
by this reference herein, and in consideration of the City's covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, City and Tenant mutually agree as follows:
Premises: Each of Tenant's rental car agencies shall retain its existing
rental location for customer ticketing and transactions, along
with vehicle maintenance buildings and adjacent vehicle
storage per the Agreement as previously amended
(hereinafter, simply the "Agreement"). Ready and return car
1
15
spaces shall also be subject to existing terms and conditions
of the Agreement.
Term: One year, commencing on the Effective Date July 1, 2017,
through June 30, 2018.
Extension Option: Two (2), one (1) year options available at the discretion of
the City.
Early Lease Termination:Tenant is advised, and hereby accepts notice and
acknowledges that the Airport is planning to construct a new
rental car center or to substantially renovate the existing
rental car center, and such construction or renovation will
impact the Airport's available leased areas used in
conjunction with the rental car facilities. The City Manager,
in his sole discretion, has the authority to terminate the
Agreement during the term or any extension option year if
(a) the construction of the new rental car center is
substantially complete prior to June 30, 2020, or (b) the
rental car facilities renovations require a relocation of the
Tenant. In the event the City Manager exercises this early
termination, the City shall (i) meet and confer with
representatives from each of Tenant's rental car agencies,
(ii) provide Tenant with six (6) months' written notice of the
early termination, and (iii) negotiate and agree with Tenant
upon a transition plan and interim agreement, whereby City,
to the greatest extent practicable, shall make reasonably
comparable space available to Tenant in which Tenant's
rental car agencies may conduct their business. At a
reasonable and mutually agreed time, prior to City's opening
of its new or renovated rental car center, City will negotiate
with Tenant as to the terms and conditions of a new lease
agreement.
Rental Rate Adjustment: Commencing for the term of this AMENDMENT NO. 2 to the
Agreement:
Counter Square Footage: 393
Services Facilities Square Footage: 72,326
Ready Return Spaces: 59
Effective July 1, 2017, the annual rent shall be adjusted as
indicated in the following table:
2
16
Effective Terminal Service Ready Overflow
Dates Rent Facility Spaces Spaces
Effective $46.70 / SF $0.87 / SF $1,400 / space $1.50 / space
July 1, 2017
Effective $56.181 SF $1.051 SF $1,684 / space $1.80 / space
August 1, 2017
Effective $83.92 / SF $1.561 SF $2,516 / space $2.70 / space
January 1, 2018
Effective $65.551 SF $1.22 / SF $1,965.24 / $2.11 / space
July 1, 2018 space
Covenant Against Discrimination:
In connection with its performance under this Agreement,
Tenant shall not discriminate against any employee or
applicant for employment because of race, religion, color,
sex, age, marital status, ancestry, national origin, sexual
orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each an
`Impermissible Basis for Discrimination"). Tenant shall
ensure that applicants are employed, and that employees
are treated during their employment, without regard to any
Impermissible Basis for Discrimination. Such actions shall
include, but not be limited to, the following: employment,
upgrading demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including
apprenticeship.
Full Force and Effect: Except as expressly modified herein all other provisions of
the Agreement, as previously amended, shall remain
unmodified and in full force and effect.
Corporate Authority: The persons executing this AMENDMENT NO. 2 on behalf
of the parties hereto warrant that (i) such party is duly
organized and existing, (ii) they are dully authorized to
execute and deliver this AMENDMENT NO. 2 on behalf of
said party, (iii) by so executing this AMENDMENT NO. 2,
such party is formally bound to the provisions of the
AMENDMENT NO. 2, and (iv) the entering into this
AMENDMENT NO. 2 does not violate any provision of any
other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
3 17
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Edward Z. Kotkin, Kathleen D. Hart, MMC,
City Attorney Interim City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No. 6112
"TENANT", ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC, a
Delaware limited liability company, doing business as ALAMO RENT A CAR and
NATIONAL CAR RENTAL
333 City Blvd. West, Ste. 1101
Orange, CA 92868
Corporations require two notarized signatures. One signature must be from the Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,
or Chief Financial Officer.
By: By:
Signature(Notarized) Signature(Notarized)
Printed Name/Title Printed Namerritle
4 18
AMENDMENT NO. 2 TO LEASE A6113
ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC
D/B/A ENTERPRISE RENT-A-CAR
OPERATING AND LEASE AGREEMENT
FOR OPERATION OF A CAR RENTAL CONCESSION
AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT NO. 2 to that certain NON-EXCLUSIVE OPERATING AND
LEASE AGREEMENT NO. 6113, ("Agreement"), is made and entered into this _day
of June, 2017, by and between the CITY OF PALM SPRINGS, a California charter city
and municipal corporation, ("City"), and ENTERPRISE RENT-A-CAR COMPANY OF
LOS ANGELES, LLC, a Delaware limited liability company, doing business as
ENTERPRISE RENT-A-CAR ("Tenant"), having its usual place of business at the Palm
Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California
92262, and a permanent mailing address at 333 City Blvd. West Ste. 1101, Orange, CA
92868. City and Tenant may hereinafter be referred to individually as a "Party" and
collectively as "Parties".
RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement
for Tenant's lease and operation at Palm Springs International Airport ("Airport"), as
more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain
Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and
WHEREAS, the Parties wish to amend the Agreement to extend the term by one
year through June 30, 2018, subject to two additional one year optional extensions to
be exercised at the City's sole discretion, and to increase certain fixed rent charges as
specified in the Agreement, as more specifically described herein this AMENDMENT
NO. 2.
AGREEMENT
NOW THEREFORE, in consideration of the City's covenants set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, City and Tenant mutually agree as follows:
Premises: Tenant shall retain its existing rental location for customer
ticketing and transactions, along with vehicle maintenance
buildings and adjacent vehicle storage per the Agreement as
previously amended (hereinafter, simply the "Agreement").
Ready and return car spaces shall also be subject to existing
terms and conditions of the Agreement.
1
19
Term: One year, commencing on the Effective Date July 1, 2017,
through June 30, 2018.
Extension Option: Two (2), one (1) year options available at the discretion of
the City.
Early Lease Termination:Tenant is advised, and hereby accepts notice and
acknowledges that the Airport is planning to construct a new
rental car center or to substantially renovate the existing
rental car center, and such construction or renovation will
impact the Airport's available leased areas used in
conjunction with the rental car facilities. The City Manager,
in his sole discretion, has the authority to terminate the
Agreement during the term or any extension option year if
(a) the construction of the new rental car center is
substantially complete prior to June 30, 2020, or (b) the
rental car facilities renovations require a relocation of the
Tenant. In the event the City Manager exercises this early
termination, the City shall (i) meet and confer with Tenant,
(ii) provide Tenant with six (6) months' written notice of the
early termination, and (ifi) negotiate and agree with Tenant
upon a transition plan and interim agreement, whereby City,
to the greatest extent practicable, shall make reasonably
comparable space available to Tenant in which Tenant may
conduct its business. At a reasonable and mutually agreed
time, prior to City's opening of its new or renovated rental car
center, City will negotiate with Tenant as to the terms and
conditions of a new lease agreement.
Rental Rate Adjustment: Commencing for the term of this AMENDMENT NO. 2 to the
Agreement:
Counter Square Footage: 349.5
Services Facilities Square Footage: 46,434
Ready Return Spaces: 37
Effective July 1, 2017, the annual rent shall be adjusted as
indicated in the following table:
THIS SPACE INTENTIONALLY LEFT BLANK
2
20
Effective Terminal Service Ready Overflow
Dates Rent Facility Spaces Spaces
Effective $46.70 / SF $0.87 / SF $1,400 / space $1.501 space
July 1, 2017
Effective $56.181 SF $1.051 SF $1,6841 space $1.80 / space
August 1, 2017
Effective $83.92 / SF $1.56 / SF $2,5161 space $2.70 / space
January 1, 2018
Effective $65.55 / SF $1.221 SF $1,965.24 / $2.11 / space
July 1, 2018 space
Covenant Against Discrimination:
In connection with its performance under this Agreement,
Tenant shall not discriminate against any employee or
applicant for employment because of race, religion, color,
sex, age, marital status, ancestry, national origin, sexual
orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each an
"Impermissible Basis for Discrimination"). Tenant shall
ensure that applicants are employed, and that employees
are treated during their employment, without regard to any
Impermissible Basis for Discrimination. Such actions shall
include, but not be limited to, the following: employment,
upgrading demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including
apprenticeship.
Full Force and Effect: Except as expressly modified herein all other provisions of
the Agreement, as previously amended, shall remain
unmodified and in full force and effect.
Corporate Authority: The persons executing this AMENDMENT NO. 2 on behalf
of the Parties hereto warrant that (i) such party is duly
organized and existing, (ii) they are dully authorized to
execute and deliver this AMENDMENT NO. 2 on behalf of
said party, (iii) by so executing this AMENDMENT NO. 2,
such party is formally bound to the provisions of the
AMENDMENT NO. 2, and (iv) the entering into this
AMENDMENT NO. 2 does not violate any provision of any
other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
3
21
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY„
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Edward Z. Kotkin, Kathleen D. Hart, MMC,
City Attorney Interim City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No. 6113
"TENANT", ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC, a
Delaware limited liability company, doing business as ENTERPRISE RENT-A-CAR
333 City Blvd. West, Ste. 1101
Orange, CA 92868
Corporations require two notarized signatures. One signature must be from the Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,
or Chief Financial Officer.
By: By:
Signature(Notarized) Signature(Notarized)
Printed Name/Title Printed Namefritle
4 22
AMENDMENT NO. 2 TO LEASE A6114
DTG OPERATIONS, INC.
D/B/A DOLLAR RENT A CAR AND THRIFTY CAR RENTAL
OPERATING AND LEASE AGREEMENT
FOR OPERATION OF A CAR RENTAL CONCESSION
AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT NO. 2 to that certain NON-EXCLUSIVE OPERATING AND
LEASE AGREEMENT NO. 6114, ("Agreement"), is made and entered into this day
of June, 2017, by and between the CITY OF PALM SPRINGS, a California charter city
and municipal corporation, ("City"), and DTG OPERATIONS, INC., an Oklahoma
corporation doing business as DOLLAR RENT A CAR and THRIFTY CAR RENTAL
("Tenant"), having its usual place of business at the Palm Springs International Airport,
3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent
mailing address at 5330 E. 31st Street, Tulsa, OK 74135. City and Tenant may
hereinafter be referred to individually as a "Party" and collectively as "Parties".
RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement
for Tenant's lease and operation at Palm Springs International Airport ("Airport"), as
more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain
Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and
WHEREAS, the Parties wish to amend the Agreement to extend the term by one
year through June 30, 2018, subject to two additional one year optional extensions to
be exercised at the City's sole discretion, and to increase certain fixed rent charges as
specified in the Agreement, as more specifically described herein this AMENDMENT
NO. 2.
AGREEMENT
NOW THEREFORE, in recognition of the true and correct recitals above incorporated
by this reference herein, and in consideration of the City's covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, City and Tenant mutually agree as follows:
Premises: Each of Tenant's rental car agencies shall retain its existing
rental location for customer ticketing and transactions, along
with vehicle maintenance buildings and adjacent vehicle
storage per the Agreement as previously amended
(hereinafter, simply the "Agreement"). Ready and return car
spaces shall also be subject to existing terms and conditions
of the Agreement.
1
23
Term: One year, commencing on the Effective Date July 1, 2017,
through June 30, 2018.
Extension Option: Two (2), one (1) year options available at the discretion of
the City.
Early Lease Termination:Tenant is advised, and hereby accepts notice and
acknowledges that the Airport is planning to construct a new
rental car center or to substantially renovate the existing
rental car center, and such construction or renovation will
impact the Airport's available leased areas used in
conjunction with the rental car facilities. The City Manager,
in his sole discretion, has the authority to terminate the
Agreement during the term or any extension option year if
(a) the construction of the new rental car center is
substantially complete prior to June 30, 2020, or (b) the
rental car facilities renovations require a relocation of the
Tenant. In the event the City Manager exercises this early
termination, the City shall (i) meet and confer with
representatives from each of Tenant's rental car agencies,
(fi) provide Tenant with six (6) months' written notice of the
early termination, and (fii) negotiate and agree with Tenant
upon a transition plan and interim agreement, whereby City,
to the greatest extent practicable, shall make reasonably
comparable space available to Tenant in which Tenant's
rental car agencies may conduct their business. At a
reasonable and mutually agreed time, prior to City's opening
of its new or renovated rental car center, City will negotiate
with Tenant as to the terms and conditions of a new lease
agreement
Rental Rate Adjustment: Commencing for the term of this AMENDMENT NO. 2 to the
Agreement:
Counter Square Footage: 547
Services Facilities Square Footage: 46,434
Ready Return Spaces: 36
Effective July 1, 2017, the annual rent shall be adjusted as
indicated in the following table:
2
24
Effective Terminal Service Ready Overflow
Dates Rent Facility Spaces Spaces
Effective $46.70 / SF $0.871 SF $1,4001 space $1.50 / space
July 1, 2017
Effective $56.181 SF $1.05 / SF $1,684 / space $1.80 / space
August 1, 2017
Effective $83.921 SF $1.56 / SF $2,516 / space $2.70 / space
January 1, 2018
Effective $65.55 / SF $1.22 / SF $1,965.24 / $2.11 /space
July 1, 2018 space
Covenant Against Discrimination:
In connection with its performance under this Agreement,
Tenant shall not discriminate against any employee or
applicant for employment because of race, religion, color,
sex, age, marital status, ancestry, national origin, sexual
orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each an
"Impermissible Basis for Discrimination"). Tenant shall
ensure that applicants are employed, and that employees
are treated during their employment, without regard to any
Impermissible Basis for Discrimination. Such actions shall
include, but not be limited to, the following: employment,
upgrading demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including
apprenticeship.
Full Force and Effect: Except as expressly modified herein all other provisions of
the Agreement, as previously amended, shall remain
unmodified and in full force and effect.
Corporate Authority: The persons executing this AMENDMENT NO. 2 on behalf
of the parties hereto warrant that (i) such party is duly
organized and existing, (li) they are dully authorized to
execute and deliver this AMENDMENT NO. 2 on behalf of
said party, (iii) by so executing this AMENDMENT NO. 2,
such party is formally bound to the provisions of the
AMENDMENT NO. 2, and (iv) the entering into this
AMENDMENT NO. 2 does not violate any provision of any
other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
3
25
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Edward Z. Kotkin, Kathleen D. Hart, MMC,
City Attorney Interim City Clerk
APPROVED BY CITY COUNCIL:
Date: Agreement No. 6114
"TENANT", DTG OPERATIONS, INC. an Oklahoma corporation, doing business as
DOLLAR RENT A CAR and THRIFTY CAR RENTAL
5330 E. 31 st. Street
Tulsa, OK 74135
Corporations require two notarized signatures. One signature must be from the Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary,Treasurer,Assistant Treasurer,
or Chief Financial Officer.
By: By:
Signature(Notarized) Signature(Notarized)
Printed Nameffitle Printed Name/Title
26