Item Coversheet


City Council Agenda Request
September 19, 2023


AGENDA REQUEST NO: III.L.

AGENDA OF: City Council Meeting

INITIATED BY: Mitchell Davies, Interim Director of Aviation

PRESENTED BY: Mitchell Davies, Interim Director of Aviation

RESPONSIBLE DEPARTMENT: Aviation

AGENDA CAPTION:
Consideration of and action on authorization of a Five-Year Concession Agreement with Avis Budget Car Rental LLC, for off-site car rental services for the Sugar Land Regional Airport.
RECOMMENDED ACTION:
Consideration of and action on authorizing a concession agreement with an off-site rental car agency, Avis.
EXECUTIVE SUMMARY:

The Airport currently has two on-site rental car companies, Hertz and Enterprise. They have office and counter space located inside the Terminal Building and are available 7 days per week to assist walk-in or fly-in customers.

 

Some of our aviation customers, such as NetJets, have selected Avis as their preferred rental car provider. To be more competitive in attracting aviation customers, the Airport has reached an agreement with Avis to offer off-site rental cars to only aviation customers.

 

This partnership will increase our rental car revenue and offer a more attractive rental car business selection to our biggest aviation customers. Avis will pay the Airport 15% of their gross receipts, which is 4% higher than on-site rental car agencies.

 

This agreement was discussed at the October 7th Finance Audit Committee meeting and they were supportive of moving forward with the agreement.

 

The 5 year concession agreement has been reviewed and approved by The Legal Department. 

BUDGET

EXPENDITURE REQUIRED:  N/A

CURRENT BUDGET: N/A

ADDITIONAL FUNDING: N/A

FUNDING SOURCE:N/A