REPORT TO THE CITY COUNCIL
October 9, 2014
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to On-Airport Non-Exclusive Rental Car Concession Agreements at Fresno Yosemite International Airport (Council District 4) - Airports Department
1. Adopt a finding of Categorical Exemption pursuant to Article 19, Section 15301(a) and (d)/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines to authorize Concession Agreements with Avis/Budget Car Rental, LLC, Enterprise Rent A Car of Sacramento, LLC, and The Hertz Corporation at Fresno Yosemite International Airport (FAT)
2. Approve On-Airport Non-Exclusive Rental Car Concession Agreements between the City and Avis/Budget Car Rental, LLC (Avis), Enterprise Rent A Car of Sacramento, LLC, (Enterprise), and The Hertz Corporation (Hertz)
Body
RECOMMENDATION
Adopt a finding of Categorical Exemption to authorize Concession Agreements with Avis, Enterprise and Hertz (RACs) at FAT and approve Concession Agreements between the City and RACs.
EXECUTIVE SUMMARY
The new RAC concession agreements were negotiated with the three parent companies that are currently operating seven brands at FAT. The new agreements will enable additional brands to be brought in to the airport without the need to expand facilities, which will provide customers more choices and is expected to enhance revenues to FAT. The new agreements will be for a term of five (5) years and include a mutual option for a second five-year term. Leased space at FAT will be rented at City of Fresno adopted Master Fee Schedule (MFS) rates, and the concession privilege fee will be 10% of gross revenues subject to a Minimum Annual Guarantee (MAG) of $542,965.95 for Avis, $731,886.46 for Enterprise, and $859,488.47 for Hertz. The previous concession agreements with Avis, Enterprise and Hertz expired on August 31, 2014, and are in a holdover status.
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