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Home My WebLink About10/16/2002 - STAFF REPORTS (9) DATE: October 16, 2002 TO: City Council FROM: Executive Director-Airports RENTAL CAR STANDARD AGREEMENT -AMENDMENT#1 RECOMMENDATION: It is recommended that City Council approve Amendment#1 to the five(5) on-airport rental car concession agreements. SUMMARY: This action would modify the agreements to implement the allocation and payment provisions for the newly reconfigured ready/return facility at the Airport. BACKGROUND: As part of the Airport's mandated response to the events of "9/11" the rental car ready/return facility north of baggage claim is being reconfigured. The reconfiguration of the lot placed all returning vehicles more than 150 feet from the building in a lane configuration (see Exhibit "A" attached to the proposed amendment). The Amendment would continue the existing methodology for allocating the ready (clean vehicle)spaces and establish a new allocation methodology for the five(5)new return lanes. Most of the reconfiguration work is to establish the return lanes. Return lanes are seen as"roadway improvements"which are eligible for grant reimbursement so long as they are "not revenue producing." The revenue producing portion of the facility is the ready spaces which have gone from an old configuration of 194 spaces to 149 spaces in the new configuration. To maintain airport revenue production off of the facility, the amendment includes an increasedfee of$895/ready space/year; no charge for return lanes. This Amendmentwas reviewed and approved by the Airport Commission on June 5, 2002, and is ready for City Council consideration. There are five (5) Minute Orders to amend the five (5) existing concession agreements. ALLEN F. SMOOT, AAE �Exe—cutive Director-Airports APPROG€D �� City Manager ATTACHMENTS: 1. Minute Orders (5) REVIEWED BY DEPT.OF FINANCE 2. Amendment#1 (Sample) f , AMENDMENT#1 to AGREEMENT A - RENTAL CAR CONCESSION TIIIS FIRST AMENDMENT to Agreement A for Rental Car Concession, (herein "Agreement") made and entered into on the day of , 2002. by and between the CITY OF PALM SPRINGS (herein "City") and (herein "Concessionaire") is hereby amended effective immediately upon occupancy of the reconfigtued Ready/Return Rental Car Area. - WITNESSETH - WHEREAS the terrorist attacks of"September 11"have resulted in the establishment of a"300 foot rule"by the Transportation Security Administration(TSA)which does not allow certain vehicles within a 300-foot perimeter of the Airport Terminal Building unless said vehicles are inspected prior to approaching the building; and WHEREAS the Airport has had a Blast Analysis conducted for the Palm Springs International Airport so mitigation measures for the "300 foot rule" can be developed; and WHEREAS TSA has approved a mitigation measure, based on the Blast Analysis, for Palm Springs International Airport which will allow for the continued use of the Ready/Return Area so long as "dirty,"that is returning vehicles, are kept more than one hundred fifty (150) feet from the Airport Terminal Building; and WHEREAS following consultation with the Rental Car Concessionaires, a redesign of the Ready/Return Area has been completed wherein return of vehicles will occur further than 150 feet from the terminal and on the northerly terminal access road, a non-revenue area, and construction is scheduled to proceed summer of 2002; and WHEREAS withthe reconfiguration ofthe lot,the space allocation formula provided for the Concession Agreements must be amended, NOW THEREFORE, the parties hereto, for and in consideration of the premises, covenants and agreements hereinafter contained to be observed and performed, the representative parties DO HEREBY AGREE TO AMEND THE AGREEMENT AS FOLLOWS: Section 1. Section 3.1.1 Ready/Return Space is hereby deleted in its entirety and replaced with the following: "Section 3.1.1 -Ready Spaces/Return Lanes. The rental car Ready Spaces/Return Lanes,as provided in this SECTION, are located within the rental car Ready Lot/Return Lanes adjacent to the north side of the Terminal Building and depicted on Exhibit"A." The City will allocate a total number of Ready Spaces and a Return Lane within the Ready/Return Area to Concessionaire based on the allocation methods described herein. For all years of this Agreement,the Ready Spaces allocated to each Concessionaire shall be determined by taking the Ready Spaces multiplied by a fraction, the numerator of which is equal to the Concessionaire's Gross Revenues(as hereinafter defined)for the preceding Agreement Year and the denomination of which is equal to the total Gross Revenues of the five(5)on-airport car rental concessionaires at the Airport for the preceding Agreement Year. In the event a City audit of gross revenues determines an error in gross revenues of Concessionaire, the City may allocate said additional Ready Spaces based on the corrected Gross Revenues. For all years of the Agreement, the Return Lanes allocated to each Concessionaire shall be determined by assigning the largest Lane (see Exhibit "A") to the Concessionaire with the greatest number of Ready Spaces, as determined above, continuing to the next largest number of Ready Spaces and assigning the next largest lane until all Concessionaires have been assigned Return Lanes. EXCEPTION: Should the Transportation Security Administration impose security rules that negate the above process by reducing the total number of Ready Spaces/Return Lanes,the Airport shall have the right to adjust allocations." Section 2. Section 5.1.5 Ready/Return Space Fee is hereby deleted in its entirety and replaced with the following: "Section 5.1.5 Ready Space Fee. Concessionaire shall pay the City an annual fee for each Ready Space in an amount equal to Eight Hundred Ninety Five Dollars ($895.00)per space multiplied by the total number of spaces allocated to Concessionaire for the Agreement Year." Section 3. Exhibit "A" is hereby replaced by the attached Exhibit"A." Signatures on following page .$ a el s al s "s alp s it I I - I N / X wn F 6' k64 xiwm E6 i �E VSA AIRPORTS --`'=a. aoo Enylnsers 6 Constructors wW a CAR RENTAL LOT 255 North EdDoo Road #419 Phone. (760) 31B-0200 so o no eo izo Palm Springs, California 92262 FAX oLL= mmmnuend nupan (760) 318-3432 SCALE IN FEET MINUTE ORDER NO. APPROVING AMENDMENT #1 TO RENTAL CAR CONCESSION AGREEMENT #4303 WITH THE HERTZ CORPORATION, INCORPORATING THE RECONFIGURED READY/RETURN FACILITY INTO THE AGREEMENT. I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Rental Car Concession Agreement #4303 with The Hertz Corporation, incorporating the reconfigured ready/return facility into the Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of October 2002. PATRICIA A. SANDERS City Clerk MINUTE ORDER NO. APPROVING AMENDMENT #1 TO RENTAL CAR CONCESSION AGREEMENT #4304 WITH NATIONAL RENTAL CAR SYSTEM, INC . , INCORPORATING THE RECONFIGURED READY/RETURN FACILITY INTO THE AGREEMENT. I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Rental Car Concession Agreement#4304 with National Rental Car System, Inc., incorporating the reconfigured ready/return facility into the Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of October 2002. PATRICIA A. SANDERS City Clerk MINUTE ORDER NO. APPROVING AMENDMENT #1 TO RENTAL CAR CONCESSION AGREEMENT #4305 WITH AVIS RENT A CAR SYSTEM, INC., INCORPORATING THE RECONFIGURED READY/RETURN FACILITY INTO THE AGREEMENT. I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Rental Car Concession Agreement#4305 with Avis Rent A Car System, Inc., incorporating the reconfigured ready/return facility into the Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of October 2002. PATRICIA A. SANDERS City Clerk MINUTE ORDER NO. APPROVING AMENDMENT #1 TO RENTAL CAR CONCESSION AGREEMENT #4306 WITH BUDGET RENT A CAR SYSTEMS, INC . , INCORPORATING THE RECONFIGURED READY/RETURN FACILITY INTO THE AGREEMENT. I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Rental Car Concession Agreement#4306 with Budget Rent A Car Systems, Inc., incorporating the reconfigured ready/return facility into the Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of October 2002. PATRICIA A. SANDERS City Clerk MINUTE ORDER NO. APPROVING AMENDMENT #1 TO RENTAL CAR CONCESSION AGREEMENT #4307 WITH DOLLAR RENTA CAR SYSTEMS, INC., INCORPORATING THE RECONFIGURED READY/RETURN FACILITY INTO THE AGREEMENT. I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Rental Car Concession Agreement#4307 with Dollar Rent A Car Systems, Inc., incorporating the reconfigured ready/return facility into the Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16th day of October 2002. PATRICIA A. SANDERS City Clerk