HomeMy WebLinkAbout10571RESOLUTION NO. 10571
A RESOLUTION APPROVING AMENDMENT NO. 5 TO A RENTAL CAR LEASE AND
OPERATING AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION,
AND THE HERTZ CORPORATION, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL
TO EXECUTE SAME
WHEREAS, the City of Pueblo entered a Rental Car Lease and Operating Agreement with
The Hertz Corporation 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. 5 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 The
Hertz Corporation 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. 5 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 28, 2005
APP
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BY Michael Occhiato
Councilperson
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Background Paper for Proposed
RESOLUTION
Pte, #!0571
AGENDA ITEM # )
DATE: November 28, 2005
DEPARTMENT: AVIATION - DANIEL E. CENTA, P.E.
TITLE
A RESOLUTION APPROVING AMENDMENT NO. 5 TO A RENTAL CAR LEASE
AND OPERATING AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND THE HERTZ CORPORATION, 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 The Hertz Corporation 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 The
Hertz Corporation 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, 2005. 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, 2006 and increase the rental rate. The increase to the
rate is based on the Consumer Price Index for all Urban Consumers (CPI -U).
FINANCIAL IMPACT
The Hertz Corporation will continue to pay 10% of their gross receipts per month and
$10 a month for ten (10) parking spaces. Their rent has been increased to $304.26
monthly ($3,651.12 annually) from $290.64 monthly ($3,487.68 annually).
PUEBLO MEMORIAL AIRPORT
RENTAL CAR LEASE AND OPERATING AGREEMENT
AMENDMENT NO.5
THIS AMENDMENT entered into as of this 28th day of November _ ,2005
between the City of Pueblo, a Municipal Corporation (the "Lessor ") and The Hertz Corporation
(the "Lessee "), WITNESSETH:
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 22, 2004
extending the Agreement for an additional year; and
WHEREAS, the term of the Agreement is due to expire on December 31, 2005 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, 2006 and ending December 31, 2006 under the
same terms and conditions, exclusive of the rental rate.
2. The rental rate will be increased to an annual rental of $3,651.12 payable in monthly
installments of $304.26. Said rent is based at the rate of $45.639 per square foot per
year for floor space.
The Rental Car Lease and Operating Agreement as modified and amended by this
Amendment No. 5 shall remain in full force and effect.
Signed in Pueblo, Colorado, the day and year first written above.
[SEAL]
ATTEST: LESSOR:
Pueblo, a Municipal Corporation
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City glerk Robert D. chip g Jr., Pre of City Council
APPROVED AS TO FORM: LESSEE:
The Hertz Co ration
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City Attorney — �� Simon Ellis
Vice President, Properties and Concessi n V—