Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 10-10-2022
Requesting Agency: Denver International Airport
Division:
Subject Matter Expert Name: Amy Edinger
Email Address: Amy.Edinger@flydenver.com
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Second Amendment between the City and County of Denver and Avis Budget Car Rental, LLC, concerning the movement of relevant clauses into this lease to consolidate all terms under one agreement at Denver International Airport.
Amends a ground lease with Avis Budget Car Rental, LLC to add $92,099,880 for a new contract total of $109,740,251 and 5 years for a new end date of 12-31-2027, to terminate the Rental Car Concession Agreement, reflect Payless being under the Avis Budget car rental brand, and move relevant clauses into this lease to consolidate all terms under one agreement, for rental car facilities at Denver International Airport in Council District 11 (201314182/ 202159846). The last regularly scheduled Council meeting within the 30-day review period is on 11-14-2022. The Committee approved filing this item at its meeting on 10-12-2022.
body
Affected Council District(s) or citywide? 11
Contract Control Number: 201314182/ 202159846
Vendor/Contractor Name (including any “DBA”): Avis Budget Car Rental, LLC
Type and Scope of services to be performed:
This amends the existing ground lease with Avis car rental to extend term for five years commencing January 1, 2021. This Second Amendment and Restatement terminates the Rental Car Concession Agreement with Avis Budget and Payless car rental and the Payless ground lease and moves relevant clauses into this Lease to consolidate all terms under one agreement. Payless was formerly an independent operator and now is a brand of Avis Budget. The Amendment provides some stability to the rental car industry, which is still in recovery from the pandemic travel shutdown, and time for the airport to commence its rental car master program. The other four main brand families updated their leases in spring 2022. Avis expressed concerns about space needs, and DEN worked with them to find additional interim permitted space, which required lengthy negotiation.
Location (if applicable): DEN
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
ACDBE- 2%
Are WBE/MBE/DBE goals met (if applicable)?
N/A
Is the contract new/a renewal/extension or amendment?
Amendment
Was this contractor selected by competitive process or sole source?
Competitive
For New contracts
Term of initial contract:
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term:
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
Price and length
If length changing
What was the length of the term of the original contract?
6 years
What is the length of the extension/renewal?
5 years
What is the revised total term of the contract?
11 years
If cost changing
What was the original value of the entire contract prior to this proposed change?
$17,640,371
What is the value of the proposed change?
92,099,880
What is the new/revised total value including change?
109,740,251
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)