THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The proposed action will authorize the Director of Aviation to negotiate new Rental Car Concession ("RCC") Lease and Operating 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.”
The three major rental car groups at Broward County's Fort Lauderdale-Hollywood International Airport ("FLL") are the following: Enterprise Holdings Inc., The Hertz Corporation, and Avis Budget Group. These three groups currently constitute approximately 85% of the market-share (via gross revenues). Negotiating with these three groups will be instrumental to guarantee the future revenue stream for FLL and greatly minimize any operational disruptions to their current leaseholds during and after this period.
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 and Operating Agreements with the three major rental car groups at FLL to provide additional time to meet with the companies. The County Administrator and the Director of Aviation met with Enterprise Holdings, Inc. d/b/a Enterprise Rent-A-Car, ("EHI") representatives on November 26, 2018. Another discussion took place on December 3, 2018, to exchange and clarify proposed lease terms with EHI representatives. Subsequently, on December 4, 2018 (Item No. 48) and December 11, 2018 (Item No. 36), the Board individually deferred each item in order to provide additional time for further discussions. Since the original meeting on November 26, 2018, County staff and EHI reached consensus on the proposed rent structure in order to move forward with negotiations.
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 the nine brands associated with the three major rental car groups: 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. Staff recommends that it is in the best interest of the County to negotiate new agreements with these current concessionaires.
Furthermore, on November 13, 2018, Item No. 70, Motion E, the Board approved a Request for Proposal ("RFP") to solicit for additional car rental concessions at FLL for the remaining 15% of the RCC's market-share. The RFP will provide for the highest level of participation between any incumbents and new entrants with as many as seven brands anticipated to submit a response to the RFP. Any resulting agreement from the negotiations or the RFP will be submitted to the Board for its consideration. |