TITLE
Consider a memorandum/resolution to approve the Killeen Fort Hood Regional Airport rental car agreements.
SUMMARY
DATE: December 4, 2018
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: APPROVAL OF RENTAL CAR LEASE AGREEMENTS FOR KILLEEN FORT HOOD REGIONAL AIRPORT
BACKGROUND AND FINDINGS:
The Killeen-Fort Hood Regional Airport leases retail facilities in the terminal building to various businesses to provide appropriate services to the public as well as to provide revenue sources for the airport enterprise fund. The existing rental car leases were approved in 2011 for a five (5) year term and, per that agreement, an additional two (2) years through September 2018.
The Airport began negotiations with the rental cars in summer 2018, and based upon the age and scope of the existing agreement, developed, with a consultant, an up-to-date agreement which is industry standard. Staff released Bid 19-06 in October 2018 and received bid packages in November 2018 from Avis Budget Car Rental LLC, Clearwater Transportation, Ltd., EAN Holdings, LLC d/b/a Enterprise Rent-A-Car Company, EAN Holdings, LLC d/b/a Alamo Rent a Car and National Car Rental, and The Hertz Corporation. All bid packages are in compliance with bid requirements and all bidding companies are eligible to execute agreements to operate at the Airport. The new agreement is for a single term of five (5) years with no extensions and will commence on January 1, 2019.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) approve the agreements, or (2) do not approve the agreements.
Which alternative is recommended? Why?
Staff recommends alternative 1. Approval of the agreements will provide (1) continued exceptional rental car service for Airport customers, and (2) a consistent revenue source for the Airport for the next (5) years
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
Total annual revenue to the ...
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