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HomeMy WebLinkAbout11787RESOLUTION NO. 11787 A RESOLUTION APPROVING AMENDMENT NO. 9 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. 9 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. 9 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: January 11, 2010 BY : Vera Ort ATTESTED BY: WUNCILPE RSON APPROVED:+ u2 CIT CLERK PRESIDENT OF CITY COUNCIL peso- IM_7 D D ED Background Paper for Proposed RESOLUTION AGENDA ITEM # � - L DATE: January 11, 2010 DEPARTMENT: DEPARTMENT OF AVIATION THOMAS MARTINEZ, INTERIM DIRECTOR TITLE A RESOLUTION APPROVING AMENDMENT NO. 9 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. 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 through December 31, 2009. 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, 2010. 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 will remain $334.84 monthly ($4,018.08 annually). PUEBLO MEMORIAL AIRPORT RENTAL CAR LEASE AND OPERATING AGREEMENT AMENDMENT NO. 9 2010 THIS AMENDMENT entered into as of this 11th day of January , 2009 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 22, 2008 extending the Agreement for an additional year; and WHEREAS, the term of the Agreement is due to expire on December 31, 2009 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, 2010 and ending December 31, 2010 under the same terms and conditions, inclusive of the rental rate. 2. The Rental Car Lease and Operating Agreement as modified and amended by this Amendment No. 9 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 City perk APPROVED AS TO FORM: ✓Z;6 ory City Attorn President of City Council LESSEE: The He ion By / Simon Ellis Vice President Global Real Estate & Concessions