Loading...
HomeMy WebLinkAbout09743RESOLUTION NO. 9743 A RESOLUTION APPROVING AMENDMENT 2 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: '4d0111LsLf! A certain Amendment 2 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 2 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 December 23, 2002 BY Al Gurule Councilperson APPROVED: oae f City Council ATTEST: City C P rA Background Paper for Proposed RESOLUTION kwc). #97 43 AGENDA ITEM # 5 DATE: December 12, 2002 DEPARTMENT: AVIATION - JOHN O'NEAL TITLE A RESOLUTION APPROVING AMENDMENT 2 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? 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. Amendment 1 was approved by City Council on December 26, 2001 extending the lease agreement through December 31, 2002. Due to the events of September 11` the rental car business has suffered at airports and has not yet recovered. Hertz has requested that their lease be extended for a one -year period. City Council's approval of this Amendment will extend the lease agreement through December 31, 2003. FINANCIAL IMPACT The Hertz Corporation will continue to pay 10% of their gross receipts per month, plus $250.87 a month for 80 square feet of counter space, and $10 a month for ten (10) parking spaces. PUEBLO MEMORIAL AIRPORT RENTAL CAR LEASE AND OPERATING AGREEMENT AMENDMENT 2 THIS AMENDMENT entered into as of this 23rd day of December , 2002 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 between the Lessor and Lessee was entered into on December 27, 1999 and amended on December 26, 2001 to extend the Agreement for an additional year; and WHEREAS, Amendment 1 to the Lease and Operating Agreement is due to terminate on December 31, 2002 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 Lease and Operating Agreement is hereby extended for a one year period beginning January 1, 2003 and terminating December 31, 2003 under the same terms and conditions, including the rental rate. 2. The agreement as modified and amended by the Amendment to the Lease and Operating Agreement shall remain in full force and effect. Signed in Pueblo, Colorado, the day and year first written above. [SEAL] ATTEST: WIN& IM-ON APPROVED AS TO FORM: City Attorney LESSOR: Pueblo, a Municipal Corporation By President of City Council LESSEE: Th 7orpion By S' on Ellis, Vice President Properties and Concessions M