A. MOTION TO AUTHORIZE Director of Aviation to negotiate and execute amendments to the agreements for Rental Car Concession and Lease at Broward County's Fort Lauderdale-Hollywood International Airport, extending the term of each agreement on a month-to-month basis beginning January 1, 2019, for a period not to exceed one year, subject to review by the Office of the County Attorney as to legal sufficiency.
ACTION: (T-10:29 A,M) Approved. (Refer to minutes for full discussion.) (See Yellow-Sheeted Additional Material, dated November 13, 2018, submitted at the request of the Aviation Department.
VOTE: 8-0.
B. MOTION TO AUTHORIZE Director of Aviation to negotiate new Rental Car Concession lease agreements with various current concessionaires of Packages A and B for consideration by the Board, namely, Enterprise Holdings, Inc. d/b/a Enterprise Rent-A- Car, National Car Rental, and Alamo Rent a Car; The Hertz Corporation d/b/a Hertz Rent a Car, Thrifty Car Rental, and Dollar Rent A Car; and Avis Budget Group d/b/a Avis Rent a Car, Budget Rent A Car, and Payless Car Rental, finding that it is in the best interest of the County to negotiate new agreements with these current concessionaires.
ACTION: (T-10:29 AM) Following the bifurcation of Item 70-B, the Board deferred Item 70-B to Tuesday, December 4, 2018. (Refer to minutes for full discussion.) (See Yellow-Sheeted Additional Material, dated November 13, 2018, submitted at the request of the Aviation Department.)
VOTE: 8-0.
C. MOTION TO WAIVE Chapter 26, Operational Policy, Aviation, Broward County Administrative Code, Section 26.9(c), Method of Awarding Privileges, which identifies the method for awarding On-Airport Rental Car Concessions as a Request for Letters of Interest, for purposes of the concession procurement referenced in Motion E.
ACTION: (T-10:29 A,M) Approved. (Refer to minutes for full discussion.) (See Yellow-Sheeted Additional Material, dated November 13, 2018, submitted at the request of the Aviation Department.
VOTE: 8-0.
D. MOTION TO WAIVE Chapter 26, Operational Policy, Aviation, Broward County Administrative Code, Section 26.5, Authority to Resolve Protested Solicitations and Proposed Awards, and Section 26.6, Hearing Procedure for Determination of the Purchasing Director, and to adopt for purposes of the concession procurement referenced in Motion E, the revised protest and appeals process approved by the Board under Chapter 21, Operational Policy, Procurement Code.
ACTION: (T-10:29 A,M) Approved. (Refer to minutes for full discussion.) (See Yellow-Sheeted Additional Material, dated November 13, 2018, submitted at the request of the Aviation Department.
VOTE: 8-0.
E. MOTION TO APPROVE Request for Proposals for On-Airport Rental Car Concessions at Broward County's Fort Lauderdale-Hollywood International Airport, RFP No. 20180430-0-AV-1, Packages C and D.
ACTION: (T-10:29 A,M) Approved. (Refer to minutes for full discussion.) (See Yellow-Sheeted Additional Material, dated November 13, 2018, submitted at the request of the Aviation Department.
VOTE: 8-0.
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Motion A. Authorizes the Director of Aviation to negotiate and execute amendments the agreements for Rental Car Concession and Lease at Broward County's Fort Lauderdale-Hollywood International Airport, extending the term of each agreement on a month-to-month basis beginning January 1, 2019, for a period not to exceed one year, subject to review by the Office of the County Attorney as to legal sufficiency.
Motion B. Authorizes the Director of Aviation to negotiate a new Rental Car Concession Lease and Operating Agreement with the current concessionaires identified in Motion B for Packages A and B for consideration by the Board.
Motion C. Allows for a competitive solicitation utilizing a Request for Proposals as the method of awarding the On-Airport Rental Car Concessions instead of a Request for Letters of Interest.
Motion D. Allows for the inclusion of the protest and appeals process under the Chapter 21, Operational Policy, Procurement Code.
Motion E. Approves the Request for Proposals for On-Airport Rental Car Concessions at Broward County's Fort Lauderdale-Hollywood International Airport, RFP No. 20180430-0- AV-1, Packages C and D. |
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
The Broward County Aviation Department (“BCAD”) utilized the services of Ricondo & Associates, Inc. ("R&A") to provide rental car concession business planning and consulting services in conjunction with preparing its next rental car concession solicitation packages for Broward County's Fort Lauderdale-Hollywood International Airport (“FLL”). R&A is recognized in the aviation industry as an expert on rental car concessions in airports.
Based on their analysis, R&A recommended that the occupancy of the Rental Car Center ("RCC") be divided into four separate packages: Package A and Package B (Attachment B to Exhibit 1), which are recommended to be negotiated as part of Motion B; and Package C and Package D (Attachment B to Exhibit 1), which are recommended to be solicited as set forth in the Request for Proposals ("RFP") identified in Motion E.
Motion A
On May 15, 2000, the County entered into an Agreement for Rental Car Concession and Lease at the FLL with the following companies:
- Alamo Rent-A-Car, Inc.
- National Car Rental System, Inc.
- ARC Holdings Group LLC
- Avis Rent A Car System, Inc.
- Budget Rent A Car Systems, Inc.
- Dollar Rent A Car Systems, Inc.
- Enterprise Leasing Company d/b/a Enterprise Rent-A-Car
- MAJ Rent-A-Car, Inc. d/b/a Thrifty Car Rental
- Royal Rent-A-Car Systems of Florida, Inc.
- The Hertz Corporation
On April 12, 2005, the County entered into two more agreements with:
- Continental Rent A Car Incorporated
- Orlin, Inc. d/b/a Payless Car Rental
Several of the agreements have since been assigned to new companies, but all 12 agreements are set to expire on December 31, 2018. Motion A authorizes the Director of Aviation to execute an amendment to each of the 12 agreements, extending the terms on a month-to-month basis beginning January 1, 2019, for a period not to exceed one year, subject to review by the Office of the County Attorney as to legal sufficiency. This will allow time to complete the negotiations and RFP set forth in Motion E.
Motion B
Chapter 26, Section 26.2(b)(4) of the Broward County Administrative Code states that “the County may, at its sole discretion, if it is determined to be in the best interests of the public and the County, negotiate a new agreement with the current concessionaire or consumer service provider for continued operation of the given concession or consumer service.”
Motion B authorizes the Director of Aviation to negotiate new Rental Car Concession Lease and Operating Agreements with Enterprise Holdings, Inc. d/b/a Enterprise Rent-A-Car, National Car Rental, and Alamo Rent a Car; The Hertz Corporation d/b/a Hertz Rent a Car, Thrifty Car Rental, and Dollar Rent A Car; and Avis Budget Group d/b/a Avis Rent a Car, Budget Rent A Car, and Payless Car Rental, for the spaces at the RCC identified as Packages A and B, finding that it is in the best interest of the County to negotiate new agreements with these current concessionaires. Any resulting agreement will be submitted to the Board for approval.
The nine brands associated with the three major rental car companies at FLL, Enterprise Holdings Inc., The Hertz Corporation, and Avis Budget Group, currently constitute approximately 85% of the market-share (via gross revenues) and negotiating with these three groups will be instrumental to guarantee the future revenue stream for the Airport and greatly minimize any operational disruptions to their current leaseholds during and after this period. Furthermore, a solicitation for Packages C and D (with a total of four slots, two per package) will provide for the highest level of participation, between any incumbents and new entrants, with as many as seven projected brands competing for one of these four slots.
Motion C
Chapter 26, Section 26.9(c) of the Code states that a car rental solicitation shall be awarded through a Request for Letters of Interest. BCAD is recommending that the procurement detailed in Motion E be solicited through a Request for Proposals because the procurement is based on specific information that is common among all potential vendors and includes consideration of the vendor's financial proposal.
Motion D
Chapter 26, Section 26.5 of the Code sets forth the procedures for protesting a solicitation or a proposed award of a contract under the Concession Policy award process. Section 26.6 establishes the procedures for resolution of a protest under the Concession Policy. Chapter 26 is not consistent with the Board-approved policy under Chapter 21, Operational Policy, Procurement Code, which includes guidelines to settle and resolve protests and appeals.
BCAD is requesting a waiver of Section 26.5 and Section 26.6 in Chapter 26 to allow for the utilization of the procedures set forth in Chapter 21, Sections 21.118 through 21.122 of the Procurement Code in the proposed solicitation set forth in Motion E. This proposed waiver will make the protest resolution and appeals process more efficient and consistent with current County policies.
Motion E
BCAD is seeking approval of the RFP (Exhibit 1) to select the most qualified firms for the operation of the On-Airport Rental Car Concession for Packages C and D ("RCC Concession") at FLL’s RCC.
The Office of Economic and Small Business Development has assigned a 2% Airport Concession Disadvantaged business Enterprise participation goal for this concession (Exhibit 2).
Successful proposers will have the right, privilege, and obligation to conduct and operate a high-quality, well-managed RCC Concession from its space at the RCC, which shall be limited to the renting of passenger car vehicles to airport customers, including the sale of any insurance or fuel related thereto, and the providing of any other incidental services, items, and equipment reasonably associated therewith. The term of the agreements awarded by the County for the concessions shall be for ten years unless otherwise extended or terminated as provided in such agreements.
Successful proposers will be required to pay facility rent, a privilege fee equal to the greater of 10% of monthly gross revenues or the monthly minimum annual guarantee, and a customer facility charge. |