HomeMy WebLinkAbout11495RESOLUTION NO. 11495
A RESOLUTION APPROVING AMENDMENT NO. 8 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. 8 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. 8 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.
BY: Randy Thurston
Councilperson
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CLERK
INTRODUCED: December 22, 2008
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 18
DATE: December 22, 2008
DEPARTMENT: AVIATION - TOM MARTINEZ, ACTING DIRECTOR OF
AVIATION
TITLE
A RESOLUTION APPROVING AMENDMENT NO. 8 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, 2008.
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 lease. City Council's approval of this Amendment
will extend the lease agreement through December 31, 2009 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 $334.84 monthly ($4,018.08
annually) from $319.09 monthly ($3,829.08 annually).
PUEBLO MEMORIAL AIRPORT
RENTAL CAR LEASE AND OPERATING AGREEMENT
AMENDMENT NO.8
THIS AMENDMENT entered into as of this 22nd day of December 2008
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 December 10, 2007
extending the Agreement for an additional year; and
WHEREAS, the term of the Agreement is due to expire on December 31, 2008 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, 2009 and ending December 31, 2009 under the
same terms and conditions, exclusive of the rental rate.
2. The rental rate during the extended one -year period is $4,018.08, payable in monthly
installments of $334.84. Said rent is based at the rate of $50.226 per square foot per
year for floor space.
The Rental Car Lease and Operating Agreement as modified and amended by this
Amendment No. 8 shall remain in full force and effect.
Signed in Pueblo, Colorado, the day and year first written above.
[SEAL].
ATTEST: ;- y= LESSOR:
Pueblo, a Municipal Corporation
` By
City erk Barbara Vidmar, President of City Council
APPROVED AS TO FORM:
LESSEE:
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