MEMORANDUM 08-119

TO: Mayor Hornaday and City Council

THRU: Walt Wrede, City Manager

FROM: Sheri Hobbs, Personnel/Airport Terminal Manager

DATE: August 19, 2008

RE: Active Car Rental Lease

An RFP for car rental leases closed on May 8, 2008. Two proposals were received. A lease proposal was presented to Council on June 9, 2008 but was not accepted. A second RFP was advertised and closed on July 22, 2008. The same two proposals were received, Active Car Rental and Homer Alaska Car Rental. After a review of the proposals I am submitting the lease for Active Car Rentals for approval by Council. Active Car Rentals has been operating from their home location since May 2008.

The leased area is car rental concession 124 the lease left vacant by Jeeps R Us. The lease term is September 1, 2008 through December 31, 2011. Active Car Rental is aware if their lease is approved by Council they cannot occupy the space until the State of Alaska has approved their sublease. The lease includes the car rental concession with 10 car rental parking spaces. Monthly rent for the concession area of 111 square feet is $194.25, plus 10% of car rental fees.

RECOMMENDATION: Approve Active Car Rental lease and authorize the City Manager to sign.

FISCAL IMPACT: Lease and gross sale fees totaling $11,300 are estimated for airport terminal revenue.