THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The proposed action will authorize the Director of Aviation to negotiate new Rental Car Concession lease agreements with various current concessionaires.
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.”
As part of this action, the Director of Aviation will be given the authority 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.
On November 13, 2018, Item No. 70, the Board deferred Motion B to authorize the Director of Aviation to negotiate new Rental Car Concession lease agreements with various current concessionaires in order to meet with the car rental companies. The Director of Aviation is scheduled to meet with the rental car companies representatives on November 26, 2018, subsequent to the publication of this Agenda. Additional information on the meeting outcome will be forthcoming and disseminated to the Board prior to its consideration of this action.
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