HomeMy WebLinkAbout10271RESOLUTION NO. 10271
A RESOLUTION APPROVING AMENDMENT NO. 4 TO A RENTAL CAR LEASE AND OPERATING
AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND AVIS RENT A
CAR SYSTEM, INC., AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
WHEREAS, the City of Pueblo entered a Rental Car Lease and Operating Agreement with Avis
Rent A Car System, Inc. on December 27, 1999; and
WHEREAS, both parties wish to amend the Lease; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1 _
A certain Amendment No. 4 to the Rental Car Lease and Operating Agreement, a copy of which
is attached hereto and made a part hereof by reference, after having been approved as to form by the
City Attorney, by and between the City of Pueblo, a Municipal Corporation, and Avis Rent A Car System,
Inc. relating to rental car operations at the Pueblo Memorial Airport is hereby approved, subject to the
conditions as set forth in said Amendment.
SECTION 2.
The President of City Council is hereby authorized to execute said Amendment No. 4 to the
Lease and Operating Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall
affix the Seal of the City thereto and attest the same.
INTRODUCED November 22, 2004
BY Michael Occhiato
Councilperson
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # I I
DATE: November 22, 2004
DEPARTMENT: AVIATION - DANIEL E. CENTA, P.E.
TITLE
A RESOLUTION APPROVING AMENDMENT NO. 4 TO A RENTAL CAR LEASE
AND OPERATING AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND AVIS RENT A CAR SYSTEM, INC., AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
ISSUE
Should City Council approve an Amendment to the Rental Car Lease and Operating
Agreement between the City of Pueblo and Avis Rent A Car System, Inc. to extend the
current lease agreement for an additional year and increase the rental rate.
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
On December 27, 1999, the City entered a Lease and Operating Agreement with Avis
Rent A Car System, Inc. for rental car services at the Pueblo Memorial Airport. This
lease was for a one -year period with an option for one additional year that expired
December 31, 2001. Amendments have been approved by City Council extending the
lease until December 31, 2004. Due to the airport's situation with the essential air service
funding, it was determined to be in the best interest of the City to extend the current
leases instead of seeking new proposals. City Council's approval of this Amendment will
extend the lease agreement through December 31, 2005 and increase the rental rate. The
increase to the rate is based on a five -year CPI -U Adjustment.
FINANCIAL IMPACT
Avis Rent A Car System, Inc. will continue to pay 10% of their gross receipts per month
and $10 a month for five (5) parking spaces. Their rent has been increased to $173.75
monthly ($2,085.00 annually) from $149.98 monthly ($1,799.76 annually).
PUEBLO MEMORIAL AIRPORT
RENTAL CAR LEASE AND OPERATING AGREEMENT
AMENDMENT NO.4
THIS AMENDMENT entered into as of this 22nd day of _ November 1 2004
between the City of Pueblo, a Municipal Corporation (the "Lessor ") and Avis Rent A Car
System, Inc. (the "Lessee"), WTTNESSETH:
WHEREAS, a Rental Car Lease and Operating Agreement ( "Agreement") between the
Lessor and Lessee was entered into on December 27, 1999 and amended on November 24, 2003
extending the Agreement for an additional year; and
WHEREAS, the term of the Agreement is due to expire on December 31, 2004 and both
Lessor and Lessee wish to extend the lease term for an additional year;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, Lessor
and Lessee agree as follows:
1. The term of the Rental Car Lease and Operating Agreement is hereby extended for a
one -year period beginning January 1, 2005 and ending December 31, 2005 under the
same terms and conditions, exclusive of the rental rate.
2. The rental rate will be increased to an annual rental of $2,085.00 payable in monthly
installments of $173.75. Said rent is based at the rate of $29.79 per square foot per
year for floor space.
3. The Rental Car Lease and Operating Agreement as modified and amended by this
Amendment No. 4 shall remain in full force and effect.
Signed in Pueblo, Colorado, the day and year first written above.
[SEAL]
ATTEST:
• �j u _
APPROVED AS TO FORM:
City Attorn y
LESSOR:
Pueblo, a Municipal Corporation
By L I L-�
Randy Tfiurston, President of City Council
LESSEE:
Avis Rent A Car System, Inc.
i.. /A I M
Robert Bouta, Senior Vice President
For properties & Facilities for Cendant Car Rental Group Inc.,
an authorized representative of Avis Rent A Car System, Inc.