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HomeMy WebLinkAbout07/16/2024 07.J. Resolution authorizing award of RFP 12403P and execute agreement with The Hertz Corporation for rental car concessions r<- `y ^� ljlt '111 .1 . \i!!!t,,:ooR;}• •0 D_1f BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.J. For Meeting of: July 16, 2024 ITEM TITLE: Resolution authorizing award of RFP 12403P and execute agreement with The Hertz Corporation for rental car concessions SUBMITTED BY: Susan Knotts, Buyer II, Purchasing Division *Robert Hodgman, Director of Yakima Air Terminal/McAllister Field SUMMARY EXPLANATION: The City of Yakima Purchasing Division solicited RFP 12403P Rental Car Concessions and Lease for the Yakima Air Terminal/McAllister Field, requesting proposals to develop, manage, and operate rental car concessions at the Yakima Air Terminal. The RFP was advertised per policy in the Yakima Herald Republic. This RFP went out to a total of 38 companies with receipt of only one proposal from The Hertz Corporation, which was subsequently determined to be responsive, meaning compliant with proposal requirements. With one responsive proposal, an evaluation committee was not necessary. Yakima Air Terminal/McAllister Field staff and the Purchasing division have reviewed the proposal and determined it meets the City's needs, accordingly staff recommends award to The Hertz Corporation. ITEM BUDGETED: N/A STRATEGIC PRIORITY: Fiscal Sustainability RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution_Award RFP12403P_Hertz Agreement-Complete_CarRentalConcessions_12403P.pdf MemoOfAward_RFP12403P_RHsigned.pdf 78 RESOLUTION NO. R-2024- A RESOLUTION authorizing award of RFP 12403P and City Manager to execute agreement with The Hertz Corporation for Rental Car Concessions WHEREAS, the City owns and operates Yakima Air Terminal/McAllister Field in accordance with applicable Federal, State and Local regulations, and WHEREAS, the airport has property available for lease within parcel number 181335- 31001 Commercial Section #101, which property is located inside the main terminal building and parking area located at 2106 West Washington Avenue, and WHEREAS, the City posted and published a notice on April 2, and 4, 2024 in the Yakima Herald Republic, on Public Purchase.com and on the City's webpage that RFP No. 12403P was available for competitive proposals; and WHEREAS, the RFP specifications went out to a total of 38 companies and 66 different contacts, and WHEREAS, Proposals were due May 23, 2024, at 2:00 p.m. and publicly opened in Yakima City Hall Council Chambers in Yakima, Washington; and WHEREAS, one Proposal was received from the following: The Hertz Corporation, Estero, FL.; and WHEREAS, Purchasing has reviewed The Hertz Corporation Proposal for responsiveness to the RFP Specifications and determined it meets the requirements outlined in the RFP specifications; and WHEREAS, Yakima Air Terminal has reviewed The Hertz Corporation Proposal and determined it meets the needs of the Yakima Air Terminal/McAllister Field to furnish efficient, first- class rental car service while meeting the demands of the Yakima Air Terminal/McAllister Field and travelers visiting the Yakima Valley; and WHEREAS, the City of Yakima and The Hertz Corporation have negotiated a lease that includes a license to occupy and operate a car rental business within the air terminal, thereby providing the Yakima Air Terminal/McAllister Field passengers and the Yakima Valley with reliable car rental services, all of which is outlined in the "Car Rental Concessions and Lease Agreement" attached hereto and incorporated herein by this reference, and WHEREAS, Purchasing and Yakima Air Terminal recommend Award and Contract be issued to The Hertz Corporation; and WHEREAS, the City Council has determined that approval of the award and the attached lease agreement meets the requirements of this solicitation and the needs of the City of Yakima is in the best interest of the City of Yakima and will promote the purposes of the Yakima Air Terminal/McAllister Field; now, therefore 1 79 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to award RFP 12403P Rental Car Concessions and directed to execute the attached and incorporated Car Rental Lease Agreement with The Hertz Corporation for the lease of Yakima Air terminal/McAllister Field property located at 2300 West Washington Avenue in accordance with the terms set forth therein. ADOPTED BY THE CITY COUNCIL this 16th day of July, 2024. Patricia Byers, Mayor ATTEST: Rosalinda Ibarra, City Clerk 2 80 CITY OF YAKIMA YAKIMA AIR TERMINAL-MCALLISTER FIELD CAR RENTAL CONCESSION AGREEMENT THIS AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF YAKIMA,the owner and Operator of YAKIMA AIR TERMINAL - McALLISTER FIELD, AND The Hertz Corporation (hereinafter referred to as "Operator"), is executed this 1st day of July, 2024. WITNESSETH: WHEREAS, LESSOR operates the Yakima Air Terminal — McAllister Field which is a Department of the City of Yakima, hereinafter both referred to as "Lessor". McAllister Field may be referred to herein as the "Airport"; WHEREAS, car rental services at the Yakima Air Terminal-McAllister Field (hereinafter referred to as "Airport") are essential for proper ground transportation of passengers arriving at and departing from the Airport, and WHEREAS, the LESSOR finds that it needs car rental services in-terminal for ground transportation, and OPERATOR has the capacity to provide such car rental services as outlined herein; and WHEREAS, LESSOR has approved property available for lease as provided by this Agreement, and OPERATOR desires to occupy and use such property in accordance with the Agreement; WHEREAS, the parties agree that OPERATOR may operate an in-terminal car rental service at the Airport under the terms and conditions herein; NOW THEREFORE,in consideration of the concession rights granted herein and the mutual covenants and agreements hereinafter contained,the parties hereto agree,for themselves,their successors and assigns, as follows: 1. CONCESSION RIGHTS GRANTED: A. OPERATOR is hereby awarded a concession to operate a rental car business at the Airport in common with others having similar agreements with the LESSOR for the sole purpose of arranging and providing rental car services. OPERATOR shall not conduct any other business at the Airport without the prior written consent of the LESSOR. B. OPERATOR shall conduct said rental car business in a first-class manner continuously during the term of the Agreement. OPERATOR agrees it will not disturb the LESSOR or any other tenant,or person using the Airport, make or permit any disturbance or any unusual noise, vibration or other condition on or at the Airport. C. It is understood and made a specific condition of this Agreement that the OPERATOR is the holder of a license,franchise,agency agreement or other form of consent from The Hertz Corporation and shall do business at the Airport under the trade name and style of that company. 2. STATEMENT OF OBLIGATIONS: In addition to the obligations under the terms of this Lease, the minimum obligations that the Operator will provide include all requirements, duties, and responsibilities described in RFP 12403P Rental Car Concessions and Lease Agreements City of Yakima Air Terminal, which are attached as Exhibit F hereto and fully incorporated herein by this reference. 12403P Rental Car Concessions&Lease Page 1 of 25 81 DEFINITIONS: The following terms and phrases shall have the following meanings for purposes of this Agreement: A. Gross Revenues shall mean cash receipts derived from the time and mileage charges, including credit transactions derived from the rental of cars in OPERATOR's car fleet when delivered to the customer at the airport or where the rental contract was entered into at the airport even though the automobile is delivered elsewhere, whether returned to the airport or not. 1) Gross Revenues shall include, without limitation,the following sales by OPERATOR to its customers: a. Vehicle rental b. Mileage charges c. Fuel convenience charges d. Drop charges f. Protection products, such as Collision Damage Waiver (CDW), Personal Accident Insurance (PAI), Personal Effects Coverage (PEC) and Supplemental Liability Protection (SLP). 2) Gross Revenues shall not include: a. The amount of any federal, state or local taxes separately stated or collected by OPERATOR from its customers. b. Tow charges—A customer paying directly for their own charge and administration thereof. c. Red lights,parking tickets,violations and impounds—Customers paying directly for their own fines and administration thereof. b. Any sums received from damage to cars or other properties of OPERATOR. c. Payments for loss, conversion or abandonment of cars, or amounts paid by customers of OPERATOR as additional charges for waiver by OPERATOR of its rights to receive from customers any damages to rented cars. d. Amounts paid by customers of OPERATOR as additional charges on one-way rentals to cover the cost of returning rented cars to the airport. e. Sums received by reason of OPERATOR's disposal of capital assets or trade fixtures. B. Transaction Fee means the fees charged by the LESSOR and required to be collected by OPERATOR from its customers for each twenty-four (24) hour period or fraction thereof that a Vehicle is rented under a rental agreement, regardless of the ownership, area fleet or location assignment of the vehicle and without regard to the manner in which, or place at which, the vehicles are furnished to the customer and without regard to whether the vehicles are returned to the Airport or some other location. The transaction fee is at all times the property of the LESSOR and collected by OPERATOR as an agent in trust for the LESSOR. The LESSOR recognizes OPERATOR provides a one (1) hour grace period for customers and if exercised the OPERATOR is not required to collect an additional transaction fee from customer. C. Location shall mean a place where motor vehicles owned or leased by OPERATOR for commercial rental are delivered, parked, stored, fueled, washed or maintained by OPERATOR or its employees; or, where OPERATOR'S employees or officials are present to transact OPERATOR'S business and/or do transact such business; or, where OPERATOR'S logo is displayed; or that is advertised for the transaction of OPERATOR'S business; or, that is equipped for the transaction of business by an OPERATOR computer terminal, business telephone, FAX or telex;or,where commercial rental car transactions are conducted in any manner whatsoever. D. Rental Car or Motor Vehicles shall mean motor vehicles designed primarily for the carriage of passengers and commonly classified as sedans, coupes, convertibles, station wagons,four-wheel drive vehicles, passenger vans, sports utility vehicles, 15 passenger vans, pick-up trucks or moving trucks. OPERATOR shall not park, store on or lease from the LESSOR premises any vehicles except motor vehicles as defined herein that it owns or leases and are properly available for rental as provided herein; except for bona fide employee vehicles. 12403P Rental Car Concessions&Lease Page 2 of 25 82 3. PREMISES: LESSOR does herby lease and let unto OPERATOR, and OPERATOR does hereby lease from LESSOR, approximately 491 square feet of land in the City of Yakima, Washington, as that property is depicted in Exhibit A (hereinafter the "Premises"),attached hereto and by this reference made a part hereof,together with the right of ingress to and egress from the Premises and the public use areas/facilities used in connection therewith, over designated Airport property and roadways, subject to federal, state and local rules, regulations and laws governing the use of the Airport and as the same may be promulgated by LESSOR and/or any governmental entity from time to time. The Premises is a section of land which is located on a portion of the real property known as Yakima County Assessor's Parcel No. 181335-31001 Commercial Section#101 holding the address of 2106 W Washington Ave Yakima WA,98903. A legal description of the Premises is attached hereto as Exhibit E and is fully incorporated into the terms of this Agreement. A. COUNTER SPACE: LESSOR hereby grants to OPERATOR Counter Space No. 4 with 136 square feet, in the Airport Terminal Building as that property is depicted on the drawing marked Exhibit A, attached hereto and by this reference made a part hereof. B. OFFICE/STORAGE SPACE: LESSOR hereby makes available to OPERATOR, in common with all other car rental tenants, Office/Storage Space No. 4 , with 355 square feet, in the Airport Terminal Building as that property is depicted in the drawing marked Exhibit A, attached hereto and by this reference made a port hereof. C. RENTAL CAR STAGING AREA(EAST OF TERMINAL)AND VEHICLE TERMINAL PARKING: LESSOR hereby makes available to OPERATOR, in common with all other car rental tenants, 14 parking spaces in Section B, Rental Car Staging Area (East of Terminal Building) and 0 parking spaces in Section A, Terminal Vehicle Parking(North East of Terminal Building) as that property is depicted on the drawing marked Exhibit B attached hereto and by this reference made a part hereof. D. OVERFLOW PARKING AREA—2406 W Washington Ave: LESSOR hereby makes available to OPERATOR, in common with all other car rental tenants, 15 parking spaces in the Overflow Rental Car Parking Area as that property is depicted on the drawing marked Exhibit C attached hereto and by this reference made a part hereof. 4. TERM: Unless terminated earlier as otherwise provided herein, the term of this Agreement shall be for a period of five (5) years from its effective date. The Lessor may, at its option, extend the Agreement on a year-to-year basis for up to two (2) additional years. Agreement extensions shall be exercised by LESSOR giving written notice to OPERATOR of its intent to exercise any extension. Such written notice must be given a minimum of thirty (30) days prior to the expiration of the term, including any extension, of this Lease. 5. RENTS AND FEES: A. OPERATOR promises and agrees to pay LESSOR rent for the property at the current 1st Floor Terminal Rate per square foot of the Premises, to be paid in advance on or before the 10th day of each month ("Lease Rental Rate"). Payments shall be made to the City of Yakima, Accounts Receivable, 129 N. 2nd St., Yakima, WA 98901. Each payment shall contain the following notation"Rent&Fees for Airport Rental Car Lease Agreement." Any rental payments/fees past due shall accrue a delinquency charge of twelve percent(12%per annum.) 1) LESSOR shall be entitled, at its sole and complete discretion, to either accept or reject a tender of payment of rent or any fee which is not paid within the time required by this Agreement. In the event LESSOR elects to accept a tender of payment of rent or fee after the time required by this Agreement, LESSOR may do so without thereby waiving OPERATOR'S continuing obligation to make such payments when required under the terms of this Agreement. OPERATOR hereby acknowledges that this constitutes a waiver by OPERATOR of any argument that by accepting a late payment of rent or fees, 12403P Rental Car Concessions&Lease Page 3 of 25 83 LESSOR has waived any default which is based upon such late payment or has waived OPERATOR'S continuing obligation to make such payments when and as required by the terms of this Agreement. 2) In the event LESSOR elects to provide written notice of delinquency or other violation of the Agreement, OPERATOR agrees to pay LESSOR's cost and attorneys'fees reasonably incurred in providing such notice in addition to the late charge and all other payments and obligations called for herein. B. The Lease Rental Rate provided for above shall be determined by the Airport Rates and Fees which are established and approved by Yakima City Council. These Rates and Fees are outlined in the City of Yakima Master Fee Schedule. For the purposes of this Agreement,the Lease Rental Rate will be adjusted annually based on the 1st Floor Terminal Rate set in the Airport Rates and Fees. This rate is subject to review and modification upon the anniversary of this Agreement. The initial monthly Lease Rental Rate is $1,705.53 plus concession and transaction fees, calculated by the following structure: 1) Counter Space and/or Storage/Office Space monthly rent of $1,425.53 based on the 491 square feet at a rate of$34.84 per square foot per year. 2) Car Rental Staging(East of Terminal) &Vehicle Terminal Parking monthly rent of $280 based on 14 total parking spots at a rate of$20 per spot. 3) Car Rental Overflow Parking monthly rent of $270 based on 15 total parking spots at a rate of$18 per spot. 4) Concession Fee monthly rate of ten percent (10%) of the gross receipts 5) Transaction Fee of five dollars ($5) on each transaction 6) Leasehold Tax is required in addition to the amounts in paragraph 5(B) subsections (1)-(5), OPERATOR shall pay a monthly amount equal to the full sum owned under paragraph 5(B) subsections (1)-(5) multiplied by the current leasehold tax rate established by the State of Washington. The State of Washington leasehold tax is currently established at a rate of 12.84%. For example, if OPERATOR paid LESSOR a total monthly combined charge of $3,000.00 for the rent and charges in paragraph 5(B) subsections (1)-(5), OPERATOR would pay an additional amount of $385.20 to cover the State of Washington leasehold tax that is in place as of the date of this Agreement. The leasehold tax percentage may go up or down depending on the current rate established by the State of Washington and OPERATOR agrees to pay the current rate in effect as of the date the leasehold tax is due. a. OPERATOR must provide an official report to the LESSOR on or before the 15th day of each month that reports the amount of gross revenue and number of vehicle transactions in the prior month for concession billing purposes. b. The term "fair market value" means the most probable annual rate in terms of money which the Premises, (which excludes those improvements owned by the OPERATOR),would bring if exposed for lease in the open market for similarly situated properties, with a reasonable time allowed to find an OPERATOR, and with full knowledge of the highest and best use to which the Premises could be put consistent with the then most current Airport Master Plan and Federal Aviation Administration ("FAA") regulations. c. Airport Rates and Fees are reviewed and adjusted on an annual basis and approved via resolution by the Yakima City Council. Rental rates are subject to increase or decrease based on modifications made to the Airport Rates and Fees. d. All Lease rates identified above are Lease payment rates for property only and do not include any taxes of any sort. All applicable taxes, including leasehold taxes, shall be paid by OPERATOR and shall be computed on the basis of the Lease rate in effect at the time the tax is imposed (see 12403P Rental Car Concessions&Lease Page 4 of 25 84 Section 7, below). Any taxes paid by OPERATOR shall be in addition to the rent due as described herein. e. In the event the Lease term commences on a date that is not the first day of the month, respectively, OPERATOR shall pay a pro-rated amount for the first month of the Lease. f. Failure to calculate and apply the rental increase for any year shall not be considered a waiver of an increase for any succeeding year and OPERATOR will be subject to back-pay if determined by the LESSOR, based on the rental increase. C. Deposit: Upon execution of this Agreement by both parties, OPERATOR shall deposit with LESSOR the amount of one month's rent plus leasehold tax thereon("Deposit"),as a guarantee of OPERATOR'S performance of this Agreement and the timely payment of the Lease payments provided for herein; in the event OPERATOR shall fail to pay the Lease payments as provided herein, or otherwise breach this Agreement then the LESSOR may apply such Deposit,or any part thereof as may be necessary,to the payment of the Lease or to the payment of damages for such breach or pursue any other remedies provided herein or by law. Nothing herein shall prevent the LESSOR from pursuing any and all available remedies for a breach of the Agreement. Any amount of the Deposit that is expended as payment of past due Lease payment obligations shall be repaid ("Deposit Cure Payment") to the LESSOR by the OPERATOR, in order to maintain the required Deposit value at all times during the Agreement term. The Deposit Cure Payment shall be made within five (5) days of any expenditure by the LESSOR of the deposit amounts as provided in this paragraph. Contemporaneously with making the Deposit Cure Payment, OPERATOR shall send written notice to the current Airport Director that the Deposit Cure Payment has been made. The failure to maintain the Deposit amount or to timely make the Deposit Cure Payment and written notification thereof shall constitute a material default by OPERATOR under the terms of this Agreement. 6. ADDITIONAL OBLIGATIONS OF OPERATOR: The OPERATOR hereby covenants and agrees: A. To furnish prompt, efficient, first-class rental car service which is adequate to meet all reasonable demands for its operation at the Airport. B. That the rental cars used by the OPERATOR under this Agreement shall be maintained, at the OPERATOR'S sole expense, in good, safe and operative order, free from known mechanical defects, and in a clean, neat and attractive condition, inside and outside. C. That the facilities and services provided by the OPERATOR shall remain open and staffed for such periods during each day, and such days during each week, as may be necessary to meet reasonable demands for said service. At a minimum, the facilities and services provided shall be open and fully staffed seven (7) days per week during all flight operations. Additionally, the facilities and services provided shall be open seven (7) days per week during normal business hours of 08:00 AM to 05:00 PM. Except as otherwise stated herein,functions of OPERATOR during normal business hours, but NOT during flight operations, do not require full staff, but OPERATOR must provide an alternate method for passengers to pick up and drop off rental cars. If,during times of normal business hours without flight operations, OPERATOR wishes to provide an alternate method for pick up and drop off, the alternate method shall be approved by the Airport in writing prior the implementation of any alternate method by OPERATOR. Any such approval is in the sole discretion of the Airport. In the absence of prior written approval, OPERATOR shall fully staff the facility seven (7) days a week during normal business hours. D. That the personnel performing services at the premises shall be neat, clean and courteous. The OPERATOR shall not permit its agents, servants or employees to conduct business in a loud, noisy, boisterous, offensive or objectionable manner, or to solicit business at the Airport in any manner whatsoever except through the use of approved signs as defined in Section 13. 12403P Rental Car Concessions&Lease Page 5 of 25 85 E. That it shall observe and comply with any and all applicable Federal, state and local laws, statutes, ordinances, regulations and standards and shall abide by and be subject to all reasonable rules and regulations which are now, or may,from time to time, be promulgated by the LESSOR concerning management, operation or use of the premises. The OPERATOR shall obtain and keep in force all permits required by law for operation of the rental car business. F. That it will meet all expenses in connection with its operations at the premises, and the rights and privileges herein granted, including, without limitation by reason of enumeration, taxes, permit fees, license fees and assessments lawfully levied or assessed upon the OPERATOR, and that it will secure all such permits and licenses. G. That it shall not engage in any business or other activity that will divert customers from the premises to an off-site office, parking lot, garage, etc., for any purpose whatsoever, including, but not limited to, writing of sales agreements off the leased premises. If the LESSOR believes, in its opinion,that the OPERATOR is engaging in such diversion business or other activity described hereinabove, it reserves the right to inspect office records of OPERATOR for off-premises offices/activities. Failure to permit such inspection or rectify any violations provided herein shall be subject to the LESSOR's right to terminate as specified in Section 23, herein. In addition, the LESSOR shall have the right to include such business or other activity within the definition of gross revenues and the right to recover any revenues lost as a result of any diversion of business from the premises. H. That it will comply with the rules and practices as set forth in the current Yakima Air Terminal Security Plan as amended from time to time,a copy of which will be provided to LESSOR upon request. Any fines assessed against the LESSOR by the Transportation Security Administration as a result of the OPERATOR's failure to comply with the provisions of this paragraph or other intentional or negligent acts or omissions of OPERATOR, its employees or agents will be paid promptly upon demand to the LESSOR by the OPERATOR. I. The LESSOR shall be the sole and final judge of the quality and the adequacy of the services furnished by the OPERATOR as specified herein. In the event the LESSOR determines that OPERATOR has failed to comply with the requirements hereunder with respect to the quality and adequacy of its services, the LESSOR may, upon thirty(30) days written notice, exercise its right to terminate this Agreement as per Section 23, contained herein. However, the LESSOR may, in its discretion, extend the time for compliance if, in its opinion, the OPERATOR is making reasonable progress in complying with the requirements of this Agreement. J. OPERATOR shall provide to LESSOR, within thirty (30) days of execution of this Agreement, a Performance Bond issued by a surety company authorized to do business in the State of Washington, in an amount of Ten Thousand Dollars and No Cents ($10,000.00) as security for the full and faithful performance of the terms, covenants and conditions of this Agreement on OPERATOR'S part to be performed or observed, including but not limited to payment of all rents and fees. The Performance Bond may be issued for a one-year period, and shall be renewed annually throughout the term of this Agreement. The Performance Bond shall be in the form provided in Section VII. Bonds of the Request for Proposal 12403P. 7. TAXES AND LIENS: In addition to the rent and fees payable above, OPERATOR promises and agrees to pay, as the same become due and payable,all licenses,fees and taxes,including but not limited to the leasehold excise, required to be paid by OPERATOR by reason of this Agreement and by reason of OPERATOR'S use and occupancy of the premises and by reason of OPERATOR'S construction or ownership of improvements to the premises. OPERATOR shall neither suffer nor permit the attachment of any lien or other encumbrance to the premises by reason of OPERATOR'S occupancy thereof. OPERATOR agrees to indemnify and release LESSOR and shall hold LESSOR harmless from any such taxes and liens. In the event that any lien is placed upon the LESSOR's property as a result of any action or inaction of the OPERATOR, including,without limitation,the negligence or willful misconduct of the OPERATOR,the OPERATOR shall at once cause the same to be dissolved and discharged by giving bond or otherwise. 12403P Rental Car Concessions&Lease Page 6 of 25 86 8. USE& FAA GRANT ASSURANCE COMPLIANCE: OPERATOR shall use and occupy the premises solely for the purpose of maintaining and conducting a non-exclusive commercial rental car, van and truck operation, as defined herein. Any occupancy, use, activity, display or product not specifically permitted herein shall be and is hereby prohibited. The use of the property for any other purpose shall be deemed a material breach of this Agreement constituting grounds for its termination. This provision shall apply to any assignment of this Agreement,whether voluntary or due to mortgage foreclosure or for any other reason. Failure of the assignee to comply with this Section shall be reasonable cause for LESSOR to withhold approval or consent to assignment. OPERATOR understands and agrees that LESSOR is responsible, as an airport sponsor,for compliance with the Federal Aviation Administration ("FAA") grant assurances ("Grant Assurances"). A copy of the Grant Assurances is attached hereto as Exhibit D and is fully incorporated by this reference. OPERATOR agrees that it has read and is familiar with the Grant Assurances. OPERATOR shall use and occupy the Premises in a manner that is consistent with and in compliance with the Grant Assurances. If at any time this Agreement or the actions or inactions of OPERATOR are not in compliance with the Grant Assurances,this shall be deemed a material default under the terms of this Agreement and LESSOR may immediately terminate the Agreement. 9. UTILITIES: LESSOR shall supply all power, water, sewer and garbage without additional cost to the OPERATOR. 10. JANITORIAL: OPERATOR shall furnish all janitorial services at OPERATOR'S expense. 11. PREMISES CONDITION &COMPLIANCE WITH DISABILITIES LAW: OPERATOR has made a full inspection of the premises, is fully aware of its condition except with respect to environmental conditions and accepts the premises on an"AS-IS" basis. LESSOR makes no representation or warranty, express or implied, regarding the premises or the condition of the same. Any warranty of fitness for a particular purpose and/or merchantability are specifically disclaimed. OPERATOR agrees to pay for any improvements, repairs and/or modifications necessary to the operation of OPERATOR'S business. Improvements, repairs and/or modifications shall be approved in writing by LESSOR before any work is commenced. Notwithstanding anything herein to the contrary, as between LESSOR and OPERATOR, (i)OPERATOR shall bear the risk of complying with Title III of the Americans with Disabilities Act of 1990,any state or local laws governing handicapped access or architectural barriers, and all rules, regulations, and guidelines promulgated under such laws, as amended from time to time (the "Disabilities Acts") in the Premises, and (ii) LESSOR shall bear the risk of complying with the Disabilities Acts in the common areas of the building, other than compliance that is necessitated by the use of the Premises as a result of any alterations or additions, including any initial tenant improvement work, made by or on behalf of OPERATOR(which risk and responsibility shall be borne by OPERATOR). 12. MAINTENANCE: OPERATOR agrees to keep and maintain the premises in at least as good a condition as the condition of the premises at the beginning of OPERATOR'S occupancy, normal wear and tear excepted. OPERATOR further agrees that OPERATOR shall be responsible to maintain all areas, trade fixtures and other improvements, existing and future, in an attractive and usable manner as reasonably determined by the LESSOR and consistent with other properties at the LESSOR. Maintenance shall include, but not be limited to weed control, garbage and debris removal, painting, snow removal and pavement maintenance. In case of any dispute which may arise at any time between the LESSOR and OPERATOR as to the standard of care and maintenance of the PREMISES, the standard and care of the Premises and the adjoining areas shall conclusively be 12403P Rental Car Concessions&Lease Page 7 of 25 87 determined by the Airport Director of the Yakima Air Terminal — McAllister Field acting in good faith and exercising reasonable judgment. The LESSOR, by its authorized representatives,shall have the right to enter the Premises at any reasonable time for the purposes of maintenance inspection conducted in a manner such that it will not unreasonably interfere with or disrupt OPERATOR'S operation. The OPERATOR may, from time to time, at its own expense, make such improvements in and about the Premises, whether structural or otherwise, and may install such machinery, equipment and facilities therein as may be considered proper and necessary in connection with the use and operation of the Premises, provided, however, that all such construction and improvements shall be done according to plans drawn up by a qualified architect or engineer and submitted in advance to the Airport Director of Yakima Air Terminal—McAllister Field,which plans must have the advance written approval of the Airport Director and all necessary permits issued by the City of Yakima or any other agency prior to commencing any work. OPERATOR shall not demolish or alter any existing buildings or improvements, or parts thereof,without the express prior written consent of the LESSOR. 13. SIGNS: OPERATOR, at OPERATOR'S own expense, may erect sign(s) of a type, number and location suitable to LESSOR, in LESSOR's sole discretion. No signs or other advertising matter or devices shall be used or displayed in or about the premises or upon any portion of the Airport without the prior written approval of the LESSOR. 14. EMPLOYEE PARKING: OPERATOR's employees are required to park privately owned vehicles in the employee designated parking lot adjacent to the terminal building. Any parking pass fees associated with parking in the employee parking lot shall be paid by employee or OPERATOR. 15. IMPROVEMENTS: OPERATOR agrees to do all repair, remodeling, alterations, upkeep, and replacement of the premises and facilities therein at OPERATOR'S expense. All repair, remodeling, alterations,trade fixtures and improvements to the premises by OPERATOR shall conform to applicable rules, regulations and codes, and OPERATOR shall procure all building and other permits therefor. All repair, remodeling, alterations,trade fixtures and improvements shall be designed with a view toward aesthetic considerations and installation shall not commence until plans and specifications therefor have been submitted to and approved in writing by the LESSOR prior to commencement of any work. 16. REVERSION OF IMPROVEMENTS: A. Upon termination of this agreement for any reason, improvements to the premises shall revert to the LESSOR. LESSOR may, at its option, require OPERATOR to remove such improvements within thirty(30) days of the effective date of the termination. If LESSOR seeks to have any improvements removed, it shall notify OPERATOR of its intent within twenty (20) days of receiving notice of the termination, or before the effective date of the termination if the notice is provided less than twenty(20) days in advance. B. Prior to the expiration of this Agreement, OPERATOR shall remove all such trade fixtures and repair any damage to the premises caused by removal of trade fixtures to the reasonable satisfaction of the LESSOR. Fixtures not removed within thirty(30) days after termination become the property of the LESSOR unless other arrangements have been previously approved in writing by the LESSOR. C. OPERATOR shall, as additional consideration for grant of this Agreement, insure that all liens, security interest and other encumbrances against said improvements and structures except those created or suffered by LESSOR, whether consensual or involuntary, shall be paid, discharged or satisfied prior to time for reversion thereof to LESSOR; and, in any event,the parties acknowledge that LESSOR shall not, by virtue of termination of the leasehold interest nor reversion of the structures or other improvements, be liable for any debt or encumbrance associated therewith. 12403P Rental Car Concessions&Lease Page 8 of 25 88 17. REGULATIONS: OPERATOR agrees to comply with all applicable laws, ordinances, rules, regulations and policies of all governmental authorities having jurisdiction over the Airport, including policies adopted by LESSOR, as such laws, ordinances, rules, regulations and policies apply to the use and operation of Airport property, facilities and operations as those laws, ordinances, rules, regulations and policies now exist or may hereafter become effective. OPERATOR further agrees to accept responsibility for not allowing unauthorized persons access to the Airport Air Operations Area (AOA). 18. SUBLETTING: OPERATOR shall have no authority to sublet the premises. 19. ASSIGNMENT: OPERATOR shall not assign this Agreement without the prior written approval of LESSOR. If assignment is approved, such assignment shall be in conformance with all applicable LESSOR, local, state and federal laws, ordinances, rules, regulations and policies. OPERATOR shall give preference to aeronautical activities and all assignees shall comply with all laws, ordinances, rules, regulations and policies applicable to the use and operation of LESSOR property, facilities and operations as those laws,ordinances, rules, regulations and policies now exist or may hereafter become effective. Consent to assignment by LESSOR shall not be construed to be a consent to any subsequent assignment. LESSOR may assign its interest in this Agreement without the consent of OPERATOR. 20. MISCELLANEOUS PROVISIONS: A. The parties agree that LESSOR, through its authorized representative, may enter upon the premises at any reasonable time to make such inspections as LESSOR may deem necessary to the proper enforcement of any term, provision or condition of this Agreement. No such entry or inspection by LESSOR is required by this provision, and the failure of LESSOR to enter and make inspection shall not alter the relationship of the parties and their respective rights and duties provided by this Agreement. B. LESSOR may further develop or improve Airport property and facilities, regardless of the desire or views of OPERATOR regarding any such development or improvement, and without interference or hindrance on the part of OPERATOR and without liability to OPERATOR, provided the operations of the OPERATOR are not unreasonably interrupted. C. LESSOR reserves the right, but shall not be obligated to OPERATOR, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the LESSOR,together with the right to direct and control all activities of OPERATOR in that regard. D. LESSOR reserves the right to take any action necessary or desirable by LESSOR to protect the operations of the LESSOR against obstruction, or any other activity interfering with the efficient operation of the Airport, together with the right to prevent OPERATOR from erecting, or permitting to be erected, any building or other structure on the premises which, in the sole opinion of the LESSOR, would limit the usefulness of the premises or constitute a hazard to aircraft. E. During time of war or national emergency, LESSOR shall have the right to lease the landing area or any part thereof to the United States of America for military use, and, if any such lease is executed, the provisions of this Agreement shall be suspended insofar as they are inconsistent with the provisions of the lease agreement with the United States of America. F. This Agreement shall be subordinate to the provisions of any existing or future agreement between LESSOR and the United States of America relative to the operation or maintenance of the Airport,the execution of which has been or may be required as a condition to the expenditure of federal funds for the development of the Airport. 12403P Rental Car Concessions&Lease Page 9 of 25 89 G. If the premises or any interest therein is taken as a result of the exercise of the right of eminent domain, this Agreement shall terminate as to such portion as may be taken. If the portion taken does not feasibly permit the continuation of the OPERATOR's operations, OPERATOR shall have the right to terminate this Agreement. Such termination shall be effective as of the date OPERATOR's operations cease. OPERATOR shall be entitled to a portion of the award representing its interest in the premises. LESSOR shall be entitled to the remainder of the award. 21. INDEMNITY/DUTY TO DEFEND/HOLD HARMLESS: A. OPERATOR shall take all necessary precautions in performing under this Agreement to prevent injury to persons or property. The OPERATOR agrees to release, indemnify, defend, and hold harmless LESSOR, its elected and appointed officials,officers,employees,agents,representatives,insurers,attorneys,and volunteers from all liabilities, losses, damages, and expenses related to all claims, suits, arbitration actions, investigations, and regulatory or other governmental proceedings arising from or in connection with this Agreement or the acts, failures to act, errors or omissions of the OPERATOR, or any OPERATOR'S agent or subcontractor, in performance of this Agreement. In the event that any lien is placed upon the LESSOR's property as a result of any action or inaction of the OPERATOR, including, without limitation, the negligence or willful misconduct of the OPERATOR, the OPERATOR shall at once cause the same to be dissolved and discharged by giving bond or otherwise. B. Industrial Insurance Act Waiver. It is specifically and expressly understood that the OPERATOR waives any immunity that may be granted to it under the Washington State industrial insurance act,Title 51 RCW, solely for the purposes of this indemnification. OPERATOR's indemnification shall not be limited in any way by any limitation on the amount of damages, compensation or benefits payable to or by any third party under workers' compensation acts, disability benefit acts or any other benefits acts or programs. OPERATOR shall require that its subcontractors and agents, and anyone directly or indirectly employed or hired by OPERATOR, and anyone for whose acts OPERATOR may be liable in connection with its performance of this Agreement, comply with the terms of this paragraph, waive any immunity granted under Title 51 RCW, and assume all potential liability for actions brought by their respective employees. The parties acknowledge that they have mutually negotiated this waiver. C. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the OPERATOR, on the one hand, and LESSOR, on the other hand, the OPERATOR's liability, including the duty and cost to defend, shall be only to the extent of the OPERATOR's negligence. D. Nothing contained in this Section or this Agreement shall be construed to create a liability or a right of indemnification in any third party. E. The terms of this section shall survive any expiration or termination of this Agreement. F. OPERATOR agrees to reimburse LESSOR for any damage to the premises caused by the occupancy of the Premises by the OPERATOR, its employees, agents, servants, invitees, independent contractors or any other person acting on behalf of OPERATOR or under its direction. G. OPERATOR shall keep and hold the LESSOR and its elected and appointed officials, agents and employees, free and harmless from any and all claims and actions, loss, damage, expense or cost, including reasonable attorney's fees, incidental to the investigation and defense thereof, resulting from, arising out of, or caused by OPERATOR resulting in any liability under the Federal Comprehensive Environmental Response Compensation Liability Act of 1980, as amended, 42 U.S.C. 9601 et seq.; Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq.; Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.; the Clean Water Act, 42 U.S.C. 1251 et seq.;the Washington Environmental Policy Act, RCW Ch. 43.21C;the Washington Water 12403P Rental Car Concessions&Lease Page 10 of 25 90 Pollution Control Act, RCW Ch. 90.48;the Washington Hazardous Waste Management Act, RCW Ch. 70.105;the Washington Model Toxic Control Act, RCW Ch. 70.105D, and the regulations promulgated thereunder, or under any applicable local or state environmental ordinance, statute, law, rule or regulation. The provisions of this Sub-section shall survive the termination of this Agreement. H. OPERATOR agrees to release, indemnify, defend, and hold harmless LESSOR and the City of Yakima, its elected and appointed officials,officers,employees,agents, representatives,insurers,attorneys,and volunteers from all liabilities, losses, damages, and expenses related to all claims, suits, arbitration actions, investigations, and regulatory or other governmental proceedings arising from or in connection to any alleged violation of or compliance with the Disabilities Acts related to or occurring in an area that OPERATOR has agreed to bear the risk of compliance under Paragraph 26 herein. 22. INSURANCE: At all times during performance of this Agreement, OPERATOR shall secure and maintain in effect insurance to protect LESSOR and OPERATOR from and against any and all claims, damages, losses, and expenses arising out of or resulting from the performance of this Agreement. OPERATOR shall provide and maintain in force insurance in limits no less than that stated below,as applicable. LESSOR reserves the right to require higher limits should it deem it necessary in the best interest of the public. OPERATOR will provide a Certificate of Insurance to LESSOR as evidence of coverage for each of the policies and outlined herein. A copy of the additional insured endorsement attached to the policy will be included with the certificate. This Certificate of insurance shall be provided to LESSOR prior to OPERATOR taking possession of the Premises. Failure of LESSOR to demand such verification of coverage with these insurance requirements or failure of LESSOR to identify a deficiency from the insurance documentation provided shall not be construed as a waiver of OPERATOR 'S obligation to maintain such insurance. OPERATOR'S insurance coverage shall be primary insurance with respect to those who are additional insureds under this Agreement. Any insurance, self-insurance or insurance pool coverage maintained by LESSOR shall be in excess of and in addition to the OPERATOR'S insurance and neither LESSOR nor its insurance providers shall contribute to any settlements, defense costs, or other payments made by OPERATOR'S insurance. All additional insured endorsements required by this Section shall include an explicit waiver of subrogation. If at any time during the life of the Agreement, or any extension, OPERATOR fails to maintain the required insurance in full force and effect, all work under the Agreement shall be discontinued immediately. Any failure to maintain the required insurance shall be sufficient cause for LESSOR to terminate the Agreement. Failure of LESSOR or any of the additional insureds to report a claim under any insurance policy required by this Agreement shall not prejudice the rights of LESSOR, its officers, employees, agents, and representatives thereunder. LESSOR, and its elected officials, officers, principals, employees, representatives, and agents shall have no obligation for payment of premiums because of being named as additional insureds under any policy. The following insurance is specifically required: A. Commercial General Liability Insurance: Before this Agreement is fully executed by the parties, OPERATOR shall provide LESSOR with a certificate of insurance as proof of commercial liability insurance with a minimum liability limit of Two Million Dollars($2,000,000.00)per occurrence,combined single limit bodily injury and property damage, and Four Million Dollars ($4,000,000.00) general aggregate. The certificate shall clearly state who the provider is,the coverage amount,the policy number,and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration of this Agreement. The policy shall name the City of Yakima, its elected and appointed officials, officers, agents, employees, and volunteers as additional insureds. The policy shall contain a clause providing that the provider will not cancel or change the policy without giving the LESSOR prior written notice. The insured shall not cancel or change the insurance without first giving LESSOR 12403P Rental Car Concessions&Lease Page 11 of 25 91 thirty (30) calendar days prior written notice. The insurance shall be with an insurance company or companies rated A-VII or higher in Best's Guide and admitted in the State of Washington. B. Automobile Liability Insurance: Before this Agreement is fully executed by the parties,OPERATOR shall provide LESSOR with a certificate of insurance as proof of automobile liability insurance and personal umbrella liability insurance with a minimum liability limit of Two Million Dollars ($2,000,000.00) per occurrence. The policy will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is,the coverage amount,the policy number,and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration of this Agreement. The certificate of insurance and additional insured endorsement shall name the City of Yakima, its elected and appointed officials, employees, agents, attorneys and volunteers as additional insureds. The policy shall contain a clause providing that the provider will not cancel or change the policy without giving the LESSOR prior written notice. The insured shall not cancel or change the insurance without first giving LESSOR and the City of Yakima thirty(30)calendar days prior written notice. The insurance shall be with an insurance company or companies rated A-VII or higher in Best's Guide and admitted in the State of Washington. The business auto liability shall include Hired and Non-Owned coverage if necessary. C. Employer's Liability(Stop Gap): The OPERATOR and any and all agents,employees,and representatives of the same shall at all times comply with all applicable workers' compensation, occupational disease, and occupational health and safety laws, statutes, and regulations to the full extent applicable, and shall maintain Employer's Liability insurance with a limit of no less than $1,000,000.00. LESSOR shall not be held responsible in any way for claims filed by the OPERATOR or its employees, agents or representatives for services performed under the terms of this Agreement. The OPERATOR agrees to assume full liability for all claims arising from this Agreement including claims resulting from negligent acts of all agents, employees, and representatives. The OPERATOR is responsible to ensure subcontractor(s) have insurance as needed. Failure of subcontractors(s)to comply with insurance requirements does not limit the OPERATOR'S liability or responsibility. 23. DEFAULT,TERMINATION &FORFEITURE: A. The failure by OPERATOR to pay rent and fees in the amounts and at the times specified herein, or the failure by OPERATOR to otherwise comply with any term, provision or condition of this Agreement, shall constitute grounds for termination of this Agreement and forfeiture of all rent paid by OPERATOR to the time of termination. This Agreement and tenancy shall terminate and rent paid shall be forfeited for cause as specified above on written notice by LESSOR to OPERATOR stating the amount of rent in default or otherwise stating accurately the manner in which OPERATOR fails or has failed to comply with this Agreement. OPERATOR shall comply with this Agreement in the manner specified in the notice within thirty (30) days, or, in the event the default is a failure to make full payments,ten (10)days,from OPERATOR's receipt of such notice, otherwise this Agreement and tenancy shall be terminated and rent forfeited. Such notice shall be given in writing and served on OPERATOR by personal delivery or mailed by certified mail with return receipt requested addressed to OPERATOR as stated herein or such other address as the parties may advise each other in writing. It is further agreed that after receipt of notices and as an additional condition to avoid forfeiture, OPERATOR shall pay LESSOR's costs and expenses, including attorney's fees,for the preparation and service of such notice. Nothing contained herein shall release or diminish OPERATOR's obligation to pay rent for the full term of this Agreement save such amount as LESSOR recovers from any subsequent Operator during the term of this Agreement. Notices shall be deemed received three (3) days after mailing to OPERATOR at the address below OPERATOR's signature to this Agreement or such other address as the parties may advise each other in writing. B. As additional and not alternative remedy, optional with LESSOR and upon thirty(30)days written notice to OPERATOR, should OPERATOR be in default hereunder other than default in the payment of rent, LESSOR may cure or correct the same and the cost of such action by LESSOR shall immediately become due and payable from OPERATOR,together with late fees on said sum at a rate of twelve percent(12%) per annum, and the non- payment of said sum by OPERATOR shall be adequate grounds for Lease to invoke the other remedies as provided in this Agreement, including, without limitation,termination of the Agreement. 12403P Rental Car Concessions&Lease Page 12 of 25 92 C. Subject to the terms of Paragraph 16 herein, upon termination of this Agreement for any reason, OPERATOR shall immediately surrender the premises to the LESSOR in good condition and repair, ordinary wear and usage excepted; and OPERATOR shall remove all of OPERATOR'S personal property, trade fixtures, and equipment from the premises and shall repair any damage to the premises caused by such removal. Any personal property of OPERATOR, or anyone claiming under OPERATOR, which shall remain upon the premises at the expiration or termination of this Agreement shall be deemed to have been abandoned and may be retained by LESSOR as LESSOR'S property or disposed of by LESSOR in such manner as LESSOR sees fit without compensation to any party. D. The foregoing remedies in Sections 23(A)-(C) shall be in addition to and shall not preclude any other remedy available to LESSOR under applicable law. E. Termination for Passenger Decrease: Yakima Air Terminal had an average passenger volume for the calendar year of 2023 of approximately 47,000. The average passenger volume for any calendar year during the term of this Lease shall be determined by reports provided by airlines. Within thirty (30) days of any anniversary of the effective date of this Lease, OPERATOR may request LESSOR provide OPERATOR with the previous calendar year's average passenger volume ("Prior Year Average"). Any such request must be in writing. A calendar year shall mean the most recent January 1 through December 31 of the year prior to the receipt of said written request. If such a written request is timely given by OPERATOR, LESSOR shall provide OPERATOR with the Prior Year Average within fourteen (14)days of the receipt by LESSOR of the written request. If such written request is not timely given by OPERATOR, LESSOR shall have no obligation to provide the Prior Year Average to OPERATOR. For purposes of illustration, if the effective date for this Lease was June 1, 2024(a)OPERATOR's written request must be given and received within the 30-day period prior to the June 1st(May 2nd—May 311 of any given year during the term of this Lease; and (b) if a timely written request was received in 2026, LESSOR would provide the Prior Year Average for the 2025 calendar year. If the process in this Subsection (E) is timely followed by OPERATOR and the Prior Year Average is less than 23,500 (one-half of 2023 average passenger volume), OPERATOR may terminate this Lease as follows: (a) OPERATOR must give written notice to LESSOR of its intent to terminate within five (5) days of its receipt of the Prior Year Average; and (b)the notice of termination shall not be effective until thirty(30) days after receipt by LESSOR. 24. INSOLVENCY: In the event (a) OPERATOR is declared bankrupt by a court of competent jurisdiction; (b) OPERATOR makes an assignment for the benefit of creditors; (c) OPERATOR has a receiver appointed over it; or (d) OPERATOR's leasehold estate is subjected to execution to satisfy any judgement against OPERATOR, LESSOR may immediately or at any time thereafter without notice or demand enter into and upon the premises or any part thereof and repossess the same and expel OPERATOR or any person upon the premises and remove their effects, and thereupon this Agreement and the tenancy hereby created shall absolutely terminate, without prejudice to any remedies which might otherwise be available to LESSOR for collection of past due,future rent, or damages. 25. VENUE,ATTORNEY FEES,JURISDICTION: A. In the event of litigation to enforce the rights and obligations hereunder, venue shall lie in Yakima County. B. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. 12403P Rental Car Concessions&Lease Page 13 of 25 93 26. NON-DISCRIMINATION CLAUSE: OPERATOR, for itself, its representatives, employees, and successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as follows: A. OPERATOR shall not discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of race, age, color, sex, religion, national origin, creed, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited to the following: employment, upgrading, demotion,transfer, recruitment,advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the performance under this Agreement. B. In the construction of any improvements on, over or under LESSOR land and the furnishing of services thereon, no person shall be discriminated against on the basis of race, age, color, sex, religion, national origin, creed, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. C. OPERATOR shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. D. It is the policy of the Department of Transportation that minority business enterprise as defined in 49 CFR Part 23, i.e., firms owned and controlled by minorities; firms owned and controlled by women and firms owned and controlled by financially disadvantaged persons; shall have the maximum opportunity to participate in the performance of leases as defined in 49 CFR Section 23.5. Consequently, this Agreement is subject to 49 CFR Part 23 as applicable. OPERATOR shall comply with this policy. E. OPERATOR shall comply with the Americans with Disabilities Act of 1990,42 U.S.C. §12101 et seq. (ADA) and its implementing regulations and Washington State's anti-discrimination law as contained in RCW Chapter 49.60 and its implementing regulations with regard to the activities or services provided pursuant to this Agreement. F. OPERATOR hereby assures that no person shall be excluded from participation in, denied the benefits of or otherwise discriminated against in connection with the award and performance of any contract, including leases, covered by 49 CFR Part 23 on the basis of race, age, color, sex, religion, national origin, creed, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. 27. DISADVANTAGED BUSINESS ENTERPRISES: A. CONCESSIONAIRE OBLIGATION:This Agreement is subject to the requirements of the U. S. Department of Transportation's regulations, 49 CFR Part 23, Subpart F. LESSOR agrees that it will not discriminate against any business owner because of the owner's race, color, national origin or sex in connection with the award or performance of any concession agreement covered by 49 CFR Part 23 Subpart F. B. SUB-TENANT OBLIGATION: OPERATOR agrees to include the above statements in any and all sub-leases. 12403P Rental Car Concessions&Lease Page 14 of 25 94 28. INTEGRATION: This Agreement contains all of the terms and conditions agreed on by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement, are deemed to exist or to bind either of the parties. 29. RECORDS, INSPECTION &PRODUCTION: OPERATOR shall maintain (in accordance with generally accepted accounting practices) books, accounts, records, documents and other materials ("Records") related directly or indirectly to the costs, expenses, and expenditures incurred and/or made pursuant to this Agreement. The Records shall, at all times, be subject to inspection by and with the approval of LESSOR. The making of(or failure or delay in making) such inspection or approval by LESSOR shall not relieve OPERATOR of responsibility for performance in accordance with this Agreement, notwithstanding LESSOR's knowledge of defective or non-complying performance, its substantiality or the ease of its discovery. OPERATOR shall provide LESSOR sufficient, safe, and proper facilities, and/or send copies of the requested documents to LESSOR. The OPERATOR's records relating to this Agreement will be provided to LESSOR upon the request of LESSOR. OPERATOR shall promptly furnish LESSOR with such information and records which are related to this Agreement as may be requested by LESSOR. All records relating to the OPERATOR's obligations under this Agreement must be made available to LESSOR, and the records relating to the OPERATOR's obligations under this Agreement are City of Yakima records. Such records must be produced to third parties, if required pursuant to the Washington State Public Records Act, Chapter 42.56 RCW, or by law. All records relating to the OPERATOR's under this Agreement must be retained by the OPERATOR for the minimum period of time required pursuant to the Washington Secretary of State's records retention schedule. If any litigation, claim or audit is started before the expiration of the of the minimum period of time required pursuant to the Washington Secretary of State's records retention schedule,the records shall be retained until all litigation, claims, or audit findings involving the records have been fully resolved. The terms of this section shall survive any expiration or termination of this Agreement. 30. NO THIRD-PARTY RIGHTS: This Agreement is entered into for the sole benefit of the parties. It shall confer no benefits or rights,direct or indirect, on any third parties. No person or entity other than the parties hereto may rely upon or enforce any provision of this Agreement. 31. COMPLIANCE WITH LAW: OPERATOR shall comply with all applicable federal,state and local laws, rules and regulations in carrying out the terms and conditions of this Agreement. 32. WAIVER OF BREACH: A waiver by either party hereto of a breach of the other party hereto of any covenant or condition of this Agreement shall not impair the right of the party not in default to avail itself of any subsequent breach thereof. Leniency, delay or failure of either party to insist upon strict performance of any agreement,covenant,or condition of this Agreement, or to exercise any right herein given in any one or more instances,shall not be construed as a waiver or relinquishment of any such agreement, covenant, condition or right. 33. MODIFICATIONS OR AMENDMENTS: The parties may modify this Agreement but no proposed changes or modifications shall have validity or become binding on either party unless such changes or modifications are in writing and executed by both parties. 12403P Rental Car Concessions&Lease Page 15 of 25 95 34. SEVERABILITY: If a court of competent jurisdiction holds any part,term or provision of this Agreement illegal or invalid in whole or in part, the validity of the remaining provisions shall not be affected, and the parties' rights and obligations shall be construed and enforced as if the Agreement did not contain the particular provision held invalid. Further, if any provision of this Agreement is in direct conflict with any statutory provision of the State of Washington,that provision in this Agreement which may conflict shall be deemed inoperative and null and void insofar as it may conflict, and shall be deemed modified to conform to such statutory provision. 35. NOTICES: Unless otherwise stated herein, all notices and demands are required in written form and sent to the parties at their addresses as follows: TO LESSOR: COPY TO: COPY TO: CITY OF YAKIMA CITY OF YAKIMA CITY OF YAKIMA YAKIMA AIR TERMINAL—MCALLISTER FIELD PURCHASING DIVISION CITY MANAGER Robert Hodgman, Airport Director Susan Knotts, Buyer II 129 N. Second Street 2406 W. Washington Avenue, Suite B 129 N. Second Street Yakima, WA 98901 Yakima, WA. 98903 Yakima, WA. 98901 Phone (509) 575-6149 Phone (509) 575-6093 Fax (509) 575-6181 Fax (509) 576-6394 TO OPERATOR: The Hertz Corporation Business Real Estate Department Attn: 8501 Williams Road Address Estero Florida 33928 City State Zip (949) 903-1622 Phone Number airports@hertz.com Email 36. SURVIVAL: Any provision of this Agreement which imposes an obligation after expiration or termination of this Agreement shall survive the expiration or termination and shall bind the parties. 12403P Rental Car Concessions&Lease Page 16 of 25 96 LESSOR: CITY OF YAKIMA 129 N. Second Ave. Yakima, Washington 98901 By: Dave Zabel!, Interim City Manager Date ATTEST: By: Rosalinda Ibarra, City Clerk STATE OF WASHINGTON ) ) ss County of Yakima ) I certify that I know or have satisfactory evidence that signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the City Manager of the City of Yakima,Washington to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date By: Notary Public for the State of Washington Residing at: Appointment Expires 12403P Rental Car Concessions&Lease Page 17 of 25 97 Co OPERATOR: Signature Josh a BI Mint The Hertz Corporation Business Name 8501 Williams Rd Address Estero FL 33928 City State p (^) - Yakima (949) 903 1622 [Regional It&Contact] By: Joshua Blum 6/19/2024 Date Its: Vice President, Global Real Estate & Concessions STATE OF F' County of I certify that I know or have satisfactory evidence that-1694111 t J114 igned this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the -, CR ‘•ouvl to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date By: 44"P SARAN5R;NCE Notary Public for the State ofwdglTI„ t�,� '�10f jot �(�(n . NotaryPublic-state of Florida ` Residing at: 4e ro , ��`l Commission#HH 339758 4 of n My Comm.Expires Dec 8, 2026 Bonded through National Notary z. 0 Appointment Expires l 2 u/ 13 Z Z(a Attachments to the Agreement Exhibit A—Rental Car Concession Counters& Optional Office/Storage Space Exhibit B—Rental Car Staging Area and Vehicle Terminal Parking Exhibit C—Optional Vehicle Overflow Parking Exhibit D—Grant Assurances Exhibit E—Premises Exhibit F—RFP 12403P Specifications 12403P Rental Car Concessions&Le ase Page 18 of 21 EXHIBIT A RENTAL CAR CONCESSION COUNTERS & OPTIONAL OFFICE/STORAGE SPACE FIRST FLOOR ALARMED • ALARMED EMERGENCY EMERGENCY GATE 0 EXIT EXIT i C:ATF i GATE 2 •�♦M 1 M 1 _ � • firs'• • . GATE I GATE 5 r — rig • • • • VA omcac 2 0: *. CUSTODIAL AREA 4117 • / 3 BAGGAGE CLAIM CAR VI i ' um `' RESTROOMS ��• ! ►.� TSA SECURITY OFFICE 4 _�_ CI SECURITY CREENINGCHECKPODTr -sue i r. lig 5 rl - E- 111 u K". _. _�I nn•a 11ISrJ 0p • D•NoOR — 6 I aimi:m gm , ,im Hay=---- 111`-' , ` t ..1 ' �..Y `-;--• ' ; a c, .v .,41..., lit •ti HORIZON AIR RESTROOMS i MAIN LOBBY OPERATIONS MANOR Legend Figure No. 1—Office/Storage Space 3: 155 Square Feet Figure No. 2-Counter Space 3: 88 Square Feet Figure No. 3-Counter Space 2: 117 Square Feet(165 w/hallway) Figure No. 4-Counter Space 1: 101 Square Feet(143 w/hallway) Figure No. 5—Office/Storage Space 1: 206 Square Feet Figure No. 6—Office/Storage Space 2: 144 Square Feet Figure No. 7—Office/Storage Space 4: 355 Square Feet Figure No. 8 -Counter Space 4: 136 Square Feet 12403P Rental Car Concessions&Lease Page 19 of 25 99 EXHIBIT B RENTAL CAR STAGING AREA AND VEHICLE TERMINAL PARKING . 'vas I. .111 LJ1LI 1J1U :tb ;. . v, 1 e1,E2 _. 4i i) e 1 °1 1 1 1 1 i go ' • D r Pill i l id ILAJ I r 1 _ -IL_� L. • • \ l IFL4W1 r---r-- k. . .1 "'" 1.- s , $411(i. '1 •-- ;tit, ._.„. • .Wit.'__71 .. - 'vww--. J 11 ii to =I, i Section B - i , vi" , 0 , 1 F1,, 1 • at E Section A-Terminal Vehicle Parking, 36 total spaces available. Section B- Rental Car Staging Area, 42 total spaces available. 12403P Rental Car Concessions&Lease Page 20 of 25 1 00 EXHIBIT C OPTIONAL VEHICLE OVERFLOW PARKING =r . _ • 111,..•AP ., • 4 . h -. -ll _ ' TilT..... . • V_ t ') \ 7.11 \ 1 . t. I • 11I till 6Lr/l . _L'•''- L -- . 7 ti • - ' � S c II •ENNE•P - • W.-.) -'J 1 ' ref 2406 W Washington Ave, Yakima,WA 98903 55 Total parking spaces available 12403P Rental Car Concessions&Lease Page 21 of 25 101 EXHIBIT D GRANT ASSURANCES Please see link below to the Airport Improvement Program Grant Assurances Airport Improvement Program Grant Assurances for Airport Sponsors, May 2022 (faa.gov) 12403P Rental Car Concessions&Lease Page 22 of 25 102 EXHIBIT E PREMISES PARCEL INFORMATION Yakima County WA, Property Record Card Yakima County WA,Property Record Card 181335-31001 Owners: Yakima City Assessed Val 2106 W Washington Ave PROPERTY DETAILS Parcel Number 181335-31001 Situs Address 2106 W Washington Ave Property Use 43 Aircraft Transportation Tax Code Area 333 Property Size 212.58 Neighborhood C303 Owners Yakima City Legal Description Section 35 Township 13 Range 18 Quarter SW:ALL S1/2 OF SEC.EX N 627 FT OF W 45.3 FT OF NW1/4 SW1/4&amp;EX S 400 FT OF SE1/4 SE1/4 SE1/4&amp;EX BEG AT NE COR OF W1/2 SE1/4 SW1/4,TH S 87 FT,TH SWtLY TO PT 95 FT N OF SW COR OF SEC,TH N TO NW COR OF SW1/4 SW1/4,TH E TO BEG.INCL.N 93 FT OF S 493 FT OF E 30 FT OF SE1/4 SE1/4 ALSO PT OF VAC.16TH AVE.EX CITY RD R/W UNDER AF 7749428 Fire District - School District Yakima School District W7 Total Bldg SQFT 300 UTILITY INFORMATION Gas Yes Electricity Yes Water Public Sewer/Septic Public SITE INFORMATION Property Type Government Owned Zoning As Street Type Two-Way Street Finish Paved/Asphlt Traffic Heavy Side Walk Yes Curbs Yes Location Road-Fmtage LAND DETAILS FOR LAND RECORD#1 Land Flag C Soil Class - Calc CU No Water Source Public Sewer Source Public Flood Plain Floodway Lot Shape Irregular Topography Level Land View No View Landscaping None Value Method Acres Lots - Square Feet 9,259,984 sqft Acre(s) 212.580 DETAILS FOR COMMERCIAL SECTION#101 Building Type Office/Medical Quality Average Condition Good Ext.Wall Type Block Year Built 1965 Ground Floor 18,590 Stones 2.0 Foundation Yes Construction Masonry-Wall Heat/Cool Type Package-NC 12403P Rental Car Concessions&Lease Page 23 of 25 103 iiiii :Imirti . ISITIF.--M\ . I ,t3 141111111 ::•,-,;,:...imp; _1 _ sF = ao1I1� .,- a Niiir.....a..=,ki.se , III =.1-0: _ _ ,___, ii, „ taoon i. .,a,�,--r-.,-r f �� . Y _ , _., tom.,_ _� ,•,.r.. - �.:.V _ - —t 6llifigiglIlligllaila-6- -..."1"11.1 illit ---- 11V-....41°111 2106 W WASHINGTON AVE YAKIMA,WA 98902 2106 W WASHINGTON AVE YAKIMA,WA 98902 I Nike I RESTAURANT I._ 6.152 sgl1 YAX&lA AIRPORT 1&5%S. Si 0 11 12403P Rental Car Concessions&Lease Page 24 of 25 104 EXHIBIT F SPECIFICATIONS RFP 12403P Rental Car Concessions and Lease Removed Sections: VII.Sample Agreement, Pages 26-51 VIII.Attachments, Pages 52-60 12403P Rental Car Concessions&Lease Page 25 of 25 105 City of Yakima NOTICE TO PROPOSERS RFP 12403P Notice is hereby given by the undersigned that sealed Requests for Proposals will be accepted in the office of the Yakima City Clerk, Yakima City Hall, 129 N. 2nd Street, Yakima, Washington 98901 until the hour of 2:00:00 PM DST on May 2, 2024. At such time, Proposers names will be publicly read for: Rental Car Concessions and Lease Agreements at the Yakima Air Terminal-McAllister Field. Request for Proposals Packets are available at www.YakimaWA.Gov/Services/Purchasing or in the office of the Purchasing Manager,Yakima City Hall, 129 N. 2nd St.,Yakima, WA 509-575-6093 A pre-proposal conference and site visit will be held at 1:00 PM on April 9, 2024 at the Yakima Air Terminal 2400 W. Washington Ave. Yakima, WA 98903. Attendance is not mandatory; however, Proposers are STRONGLY urged to attend. The City of Yakima reserves the right to reject any & all RFPs. The City hereby notifies all Proposers that it will affirmatively ensure compliance with WA State Law Against Discrimination (RCW chapter 49.60) & the Americans with Disabilities Act (42 USC 12101 et set.) Dated April 2, 2024. Publish on April 2nd &4th, 2024 Susan Knotts, NIGP-CPP, CPPB, CPPO Buyer ll 12403P Rental Car Concessions&Lease Agreements Page 1 of 60 106 CITY OF YAKIMA REQUEST FOR PROPOSAL # 12403P SIGNATURE SHEET 5M1I �� THIS IS NOT AN ORDER RFP Release Date:April 2, 2024 RFP Proposal Receipt: Proposal must be sealed, plainly marked with due date, time, RFP Number 12403P, and the words "DO NOT OPEN" delivered to the address listed below. Late Proposals will be rejected. Proposals MUST be date and time stamped in on or before the date and time listed below that the Proposal is due. Proposal openings are public. Proposals shall be firm for acceptance for one hundred twenty(120)days from date of Proposal opening, unless otherwise noted. Deliver to: City of Yakima Clerk's Office 129 North Second Street Yakima, WA 98901 Do not bring your Proposal into the opening room. Proposals must be received and date stamped by the Clerk's Office Purchasing For: Buyer in charge of this procurement(Contact for further information): City of Yakima, Air Terminal-McAllister Field Susan Knotts, NIGP-CPP, CPPB, CPPO 2400 W. Washington Avenue Buyer II Yakima, WA 98902 Proposals Must be completely uploaded by: Public Opening Q Phone E-Mail Address May 2, 2024 at 2:00:oo PM PST (509) 575-6095 Susan.Knotts@YakimaWA.Gov PROJECT DESCRIPTION SUMMARY Rental Car Concessions and Lease Agreements at the Yakima Air Terminal-McAllister Field ❑ Check if you are a WMBE, DBE, or ACDBE Vendor. Must list certification Number: ❑ I hereby acknowledge receiving addendum(a) , (use as many spaces as addenda received) In signing this Proposal we also certify that we have not, either directly or indirectly, entered into any agreement or participated in any collusion or otherwise taken any action in restraint of free competition; that no attempt has been made to induce any other person or firm to submit or not to submit a Proposal; that this Proposal has been independently arrived at without collusion with any other Proposer, competitor or potential competitor; that this Proposal has not been knowingly disclosed prior to the opening of Proposals to any other Proposer or competitor;that the above statement is accurate under penalty of perjury. Furthermore, the Washington State Interlocal Cooperative Act(RCW 39.34) provides that other governmental agencies may purchase goods or services on this solicitation or contract in accordance with the terms and prices indicated therein if all parties agree. The City does not accept any responsibility or involvement in the purchase orders or contracts issued by other public agencies. We will comply with all terms,conditions and specifications required by the City of Yakima in this Request for Proposal and all terms of our Proposal. If the Concessionaire is a partnership, all general partners are required to sign the Proposal and the Concession Agreement. If the selected Proposer is a Limited Liability Company, all managing members are required to sign the Proposal and the Concession Agreement. Add additional signature pages as necessary. Company Name Company Address Name of Authorized Company Representative(Type or Print) Title Phone ( Fax ( ) Signature of Above Date Email Address 12403P Rental Car Concessions&Lease Agreements Page 2 of 60 107 CERTIFICATE OF CITY & ACKNOWLEDGEMENTS IF PROPOSER IS A CORPORATION OR LIMITED LIABILITY COMPANY I, the undersigned, as Secretary or Assistant Secretary of the Corporation or duly authorized representative of the Limited Liability Company submitting the foregoing Proposal, hereby certify that pursuant to the By-Laws and Resolutions of the Corporation or Operating Agreement of the Limited Liability Company, the agent who has signed this Proposal on behalf of the Proposer is authorized to do so. Secretary or Assistant Secretary (Corporate Seal) STATE OF COUNTY OF On this day of , 2024, before me personally came and appeared , to me known, who being by me duly sworn, did depose and say that he is the of Proposer and that he signed his name thereto by City of the Board of Directors or Members. Notary My Commission Expires: My Commission Number: 12403P Rental Car Concessions&Lease Agreements Page 3 of 60 108 ACKNOWLEDGEMENT OF A PARTNERSHIP STATE OF COUNTY OF On this day of , 2024, before me personally came and appeared , known to me to be all the general partners of , who executed the same as and for the act and deed of said firm. Notary My Commission Expires: My Commission Number: ************************************************************************************************************* ACKNOWLEDGEMENT OF A LIMITED PARTNERSHIP STATE OF COUNTY OF On this day of , 2024, before me personally came and appeared , known to me to be all the general partners of the limited partnership of , who executed the same as and for the act and deed of said limited partnership. Notary My Commission Expires: My Commission Number: 12403P Rental Car Concessions&Lease Agreements Page 4 of 60 109 TABLE OF CONTENTS DEFINITIONS 7 GENERAL INFORMATION 9 A. Project Summary 9 B. Scope and Objectives 9 C. Background and Current Operations 9 D. Contracting Agency and Point of Contact 10 E. Public Records Access 10 F. Proprietary Information 10 G. Requests for Public Disclosure 11 H. Retention of Rights 11 I. Clarifications and/or Revisions to Specification and Requirements 11 J. News Releases 11 K. Proposer Conference and Site Visit 12 L. Examining Documents & Facilities 12 M. Delivery of Concession Site 12 N. Calendar of Events 12 O. Contract Term 12 P. Incurring Costs 12 Q. No Obligation to Contract 12 S. Best Modern Practices 12 T. More or Less 13 PREPARING AND SUBMITTING A PROPOSAL 13 A. General Instructions 13 B. Organization and Format of Required Proposal Elements 13 C. Prohibition of Proposer Terms &Conditions 14 D. Submitting a Proposal 14 E. Multiple Proposals 15 F. Withdrawal of Proposals 15 EVALUATION AND CONTRACT AWARD 15 A. Preliminary Evaluation 15 B. Sources of Information 16 C. Evaluation Criteria 16 D. Proposal Scoring 17 E. RFP Evaluation 17 F. Proposer Presentations 17 G. Tired Score 17 H. Tax Revenues 17 I. Offer in Effect for One Hundred Twenty (120) Days 18 J. Award /Best and Final Offers 18 12403P Rental Car Concessions&Lease Agreements Page 5 of 60 110 K. Notification of Intent to Negotiate/Intent to Award 18 L. Right to Reject Proposals and Negotiate Contract Terms 18 M. Protest Procedure 18 N. Execution of Concession Agreement 19 PROPOSAL REQUIREMENTS 19 A. Proposers Qualifications 20 B. Staff Qualifications 20 C. Financial Requirements 21 D. Operations 22 E. Concession Services 22 F. General Requirements 23 REQUIRED FORMS 25 A. Forms Due with Proposal 25 B. Forms Due Before Contract Execution 25 SAMPLE CONTRACT 26 ATTACHMENTS 52 12403P Rental Car Concessions&Lease Agreements Page 6 of 60 111 I. DEFINITIONS The following terms and phrases shall have the following meanings for purposes of these specifications and Agreement: "Buyer" means the contact person listed on page 2 of this document. "City" means the City of Yakima, Washington. "Contract" means written agreement between the "City" and the "Operator" (or "Successful Proposer") that covers the service to be performed subsequent to this RFP. "Contract Manager" means the individual in the City of Yakima Purchasing Division (Buyer) responsible for managing this RFP and subsequent contractual issues. "Contractor" means a proposer that is awarded a Contract under this RFP and its employees or other personnel (including officers, agents, etc.) provided by the Contractor to perform the services under this Contract. "Department" or"Division" means the Yakima Air Terminal-McAllister Field or"YKM". "Executive" means the City of Yakima City Manager. "Gross Revenues" mean cash receipts derived from the time and mileage charges, including credit transactions derived from the rental of cars in OPERATOR'S car fleet when delivered to the customer at the airport or where the rental contract was entered into at the airport even though the automobile is delivered elsewhere, whether returned to the airport or not. a. Gross Revenues shall include the following sales by OPERATOR to its customers: 1. Vehicle rental 2. Mileage charges 3. Fuel convenience charges 4. Drop charges 5. Tow charges 6. Protection products, such as Collision Damage Waiver(CDW), Personal Accident Insurance (PAI), Personal Effects Coverage (PEC) and Supplemental Liability Protection (SLP). b. Gross Revenues shall not include: 1. The amount of any federal, state or local taxes separately stated or collected by Lessee from its customers. 2. Any sums received from damage to cars or other properties of Lessee. 3. Payments for loss, conversion or abandonment of cars, or amounts paid by customers of Lessee as additional charges for waiver by Lessee of its rights to receive from customers any damages to rented cars. 4. Amounts paid by customers of Lessee as additional charges on one-way rentals to cover the cost of returning rented cars to the airport. 5. Sums received by reason of OPERATOR'S disposal of capital assets or trade fixtures. 12403P Rental Car Concessions&Lease Agreements Page 7 of 60 112 "Location" mean a place where motor vehicles owned or leased by OPERATOR for commercial rental are delivered, parked, stored, fueled, washed or maintained by OPERATOR or its employees; or, where OPERATOR'S employees or officials are present to transact OPERATOR'S business and/or do transact such business; or, where OPERATOR'S logo is displayed; or that is advertised for the transaction of OPERATOR'S business; or, that is equipped for the transaction of business by an OPERATOR computer terminal, business telephone, FAX or telex; or, where commercial rental car transactions are conducted in any manner whatsoever. The subject of this Agreement is the "LESSOR Location". "Operator" means the awarded Proposer. "Owner" also referred to as City of Yakima or YKM. "Project Manager" means the individual in City of Yakima, YKM and/or an assigned individual from the Proposer/Operator responsible for administering day-to-day operational matters of the Contract. "Proposal" means the complete response of a proposer submitted on the approved forms and setting forth the proposer's prices for providing the services described in the RFP. "Proposer" means any individual, company, corporation, or other entity that responds to this RFP. "Rental Car or Motor Vehicles" mean motor vehicles designed primarily for the carriage of passengers and commonly classified as sedans, coupes, convertibles, station wagons, four-wheel drive vehicles, passenger vans, sports utility vehicles, 15 passenger vans, moving trucks. OPERATOR shall not park, store on or lease from the LESSOR premises any vehicles except motor vehicles as defined herein that it owns or leases and are properly available for rental as provided herein; except for bona fide employee vehicles. "RFP" means Request for Proposal. "SOW" means Statement of Work. "Subcontractor" means any entity that enters into any agreement with the Contractor to fulfill the requirements and performance obligations of the Contract. "Transaction Fee" means the fees charged by the LESSOR and required to be collected by OPERATOR from its customers for each twenty-four (24) hour period or fraction thereof that a Vehicle is rented under a rental agreement, regardless of the ownership, area fleet or location assignment of the vehicle and without regard to the manner in which, or place at which, the vehicles are furnished to the customer and without regard to whether the vehicles are returned to the Airport or some other location. The transaction fee is at all times the property of the LESSOR and collected by OPERATOR as an agent in trust for the LESSOR. "YKM" means Yakima Air Terminal-McAllister Field, a Division of the City of Yakima. 12403P Rental Car Concessions&Lease Agreements Page 8 of 60 113 RFP #12403P Rental Car Concessions and Lease Agreements City of Yakima Air Terminal II. GENERAL INFORMATION A. Project Summary The purpose of this Request for Proposal (RFP) is to provide interested parties with information to enable them to prepare and submit a proposal to develop, manage, and operate rental car concessions at the Yakima Air Terminal-McAllister Field. The City of Yakima (referred to as "City" throughout this document), Yakima Air Terminal-McAllister Field (hereinafter referred to as YKM), as represented by City Purchasing, intends to use the results of this solicitation to award a contract for such services. B. Scope and Objectives The City is requesting a non-exclusive, full-service, fully integrated Rental Car Concessions and Lease Agreement. The air terminal can permit the operation of up to four (4) high quality, professionally operated and managed rental car service concessions, with four (4) separate brand identifications that will reflect the prestige and dignity of YKM. No more than one branded operator will operate in any single concession area and only one recognized brand will be operated pursuant to any concession agreement. C. Background and Current Operations COMMUNITY OVERVIEW The City of Yakima, county seat of Yakima County, was incorporated in 1886 and is located in central Washington State. It encompasses 28.7 square miles in an area of rich volcanic soil. The City is 145 miles southeast of Seattle, and 200 miles southwest of Spokane, Washington. The region is served by rail, highway and air transportation facilities, which have helped develop the City as the commercial and business center of Central Washington. With a 2020 population of 96,968, Yakima is the eleventh largest city in the State of Washington. The City provides the full range of municipal services contemplated by charter or statute. These include public safety (police, fire, and building), public improvements (streets, traffic signals), sanitation (solid waste disposal, sanitary wastewater utility), water and irrigation utilities,transit, community development, parks and recreation, and general administrative services. The City of Yakima lies within Yakima County in the fertile Yakima River Valley. Apples, cherries, pears, grapes, and other fruits, plus hops and a wide variety of field crops and vegetables make the Yakima Valley one of the top agricultural producing areas of the nation. There are over 400,000 acres of Agriculture zoned land within the County which produce over thirty types of fruits and vegetables. With its farm production base, the Yakima area is a major food processing region. Adding to the area's economy are over 250 manufacturing firms in the Yakima area that produces a variety of products including wood products, packaging, plastic products, produce and aircraft parts. BACKGROUND AND CURRENT OPERATIONS YKM is owned and operated by the City of Yakima and is a Primary Commercial Service Non-Hub airport located in Central Washington State. Although our passenger numbers had decreased with the loss of our second flight in September 2022, since then, our second flight has returned and we have witnessed a continual increase in passenger flow through the terminal as it is prime travel time for connecting into Seattle and arriving back home in Yakima. 12403P Rental Car Concessions&Lease Agreements Page 9 of 60 114 Annual passenger count for the past six (6)years are as follow: YEAR Annual Passengers 2023 47,587 2022 71,176 2021 88,903 2020 58,702 2019 135,973 2018 138,972 The airport terminal building consists of approximately 30,838 square feet, of which approximately 22,958 square feet consists of the first floor where passengers arrive and depart. The concourse has multiple aircraft parking positions with five (5) gates. The food, beverage and retail concessions are located on both the pre- security/landside and security side of the terminal building. The pre-security/landside portion of the terminal building will consist of the airline ticket counters, baggage claim and rental car counters. In late 2024, the terminal building is slated to be demolished in phases and reconstructed in a similar location. Engineering plans for the modernized terminal building are currently underway. CURRENT OPERATIONS Currently, Alaska Airlines provides two (2) daily flights to Seattle and a midnight arrival into Yakima. In 2022, the terminal experienced a total of 71,176 who boarded or disembarked from Alaska Airlines. With the return of the second flight we are expecting to see numbers increase to pre-COVID amounts which at our peak was 138,972 passengers annually. Rental car gross revenues for the past six(6)years were as follows: YEAR GROSS REVENUES 2023 $ 860,730 2022 $ 1,023,068 2021 $ 1,047,926 2020 $ 607,620 2019 $ 1,417,272 2018 $ 1,323,197 D. Contracting Agency and Point of Contact This RFP is issued by the City of Yakima Purchasing Division. The person responsible for managing this RFP process from beginning to end is the Buyer listed on page 2 of this solicitation. From the date of release of this RFP until a Notice of Intent to Award the Contract is issued, all contacts with City's employees, and other personnel performing official business for the City regarding this RFP shall be made through the Buyer listed on page 2. Contact with other City personnel regarding this RFP is not permitted during the procurement process and violation of these conditions may be considered sufficient cause for rejection of a Proposal and disqualification of the Proposer. E. Public Records Access It is the intention of the City to maintain an open and public process in the solicitation, submission, review, and approval of procurement activities. Proposal openings are public. Records will not be available for public inspection prior to issuance of the Notice of Intent to Award or the award of the contract. F. Proprietary Information Any consideration of proprietary information is the responsibility of the Proposer to object to through the courts following third party notice, not the City. 12403P Rental Car Concessions&Lease Agreements Page 10 of 60 115 All information submitted in response to a request for public disclosure will be handled in accordance with applicable City procurement regulations and the Washington State Public Records Act (RCW 42.56 et seq.). It is the Proposer's responsibility to defend the determination in the event of an appeal or litigation. Unless otherwise noted, data contained in a proposal, all documentation provided therein, and innovations developed as a result of the contracted commodities or services cannot be copyrighted or patented. All data, documentation, and innovations become the property of the City. G. Requests for Public Disclosure Washington State Public Disclosure Act (RCW 42.56 et seq.) requires public agencies in Washington to promptly make public records available for inspection and copying unless they fall within the specified exemptions contained in the Act, or are otherwise privileged. All documents submitted in relation to this Specification shall be considered public records and, with limited exceptions, will be made available for inspection and copying by the public. It is the intent of the City to post all RFP responses online and available to the public after the contract is signed. Marking the entire submittal as "confidential" or "proprietary" is not acceptable and is grounds to reject such submittal. The Owner will comply with the Public Disclosure Act which allows, at Owner's option, to provide third party notice. Owner may provide third-party notice of a request if it deems appropriate. H. Retention of Rights The City retains the right to accept or reject any or all proposals if deemed to be in its best interests. All proposals become the property of the City upon receipt. All rights, title and interest in all materials and ideas prepared by the proposer for the proposal to the City shall be the exclusive property of the City and may be used by the City at its option. I. Clarifications and/or Revisions to Specification and Requirements If a Proposer discovers any significant ambiguity, error, conflict, discrepancy, omission, or other deficiency in this solicitation, the Proposer has an affirmative duty to immediately notify the Buyer of such concern and request modification or clarification of the RFP document. Unless Instructions are specifically provided elsewhere in this document, any questions, exceptions, or additions concerning the subject matter of the RFP document(s) shall not be considered unless submitted via e-mail (no phone calls) to the Buyer listed on page 2, a minimum of five business (5) days prior to the submittal due date. In the event that it becomes necessary to provide additional clarifying data or information, or to revise any part of this RFP, supplements or revisions will be provided to all known Proposers in the form of an Addendum. All Addenda will be posted on www.YakimaWA.Gov/Services/Purchasing and/or sent directly to interested parties who have registered for updates to this RFP. If the City issues an addendum, the Proposer shall acknowledge the addendum on page 2. By acknowledging all addenda, the Proposer agrees that the terms of said addenda are incorporated into the Proposal Documents. The City reserves the right to reject any Proposal that does not acknowledge all addenda. If any requirements of the RFP are unacceptable to any prospective Proposer, they may choose not to submit a proposal. J. News Releases News releases pertaining to the RFP or to the acceptance, rejection, or evaluation of Proposals shall not be made without the prior written approval of the Buyer listed on page 2. 12403P Rental Car Concessions&Lease Agreements Page 11 of 60 116 K. Proposer Conference and Site Visit A pre-proposer site visit/conference will be held at 1:00 PM on April 9, 2024 in the Yakima Main Air Terminal located at 2400 W. Washington Ave,Yakima, WA 98903. Attendance to the pre-proposal site visit/conference is not mandatory; however, Proposers are STRONGLY urged to attend. L. Examining Documents& Facilities The Proposer is hereby advised that by submitting a Proposal, they are deemed to have studied and examined all facilities and all relevant documents and acknowledged all requirements contained herein before proposing. M. Delivery of Concession Site YKM shall deliver the Concession Area to the Selected Proposer in an "as is" condition. By submitting a Proposal, Proposer is deemed to agree that the Concession Area is in a condition suitable for the Concession. The Proposer agrees to accept the facilities as of date of delivery without any further recourse to the City. N. Calendar of Events Listed below are important dates and times by which actions related to this RFP may be completed. In the event that the City finds it necessary to change any of these dates and times it will do so by issuing an addendum to this RFP. DATE EVENT April 2, 2024 RFP Issuance April 9, 2024 @ 1:00 Site Visit/Pre-proposal Conference April 24, 2024 Due date for written questions April 25 or 26, 2024 Addenda -Written answers provided (target) May 2, at 2:00:0o PM PST Proposals Due The schedule of events after the Proposal due date will be handled as expeditiously as possible, but there is not a set schedule. An Evaluation Committee will be formed to evaluate proposals and may choose to interview Proposers. Every effort will be made to notify short-listed proposers of important post-opening dates. O. Contract Term See Section 4 of Contract. P. Incurring Costs The City is not liable for any cost incurred by a Proposer in the process of responding to this RFP including but not limited to the cost of preparing and submitting a response, in the conduct of a presentation, in facilitating site visits or any other activities related to responding to this RFP. Q. No Obligation to Contract This RFP does not obligate the City to contract for service(s), or product(s) specified herein. City reserves the right to cancel or reissue this RFP in whole or in part, for any reason prior to the issuance of a Notice of Intent to Award. The City does not guarantee to lease any specific space or square footage. Proposals that stipulate that the City shall guarantee a specific space or square footage will be disqualified (e.g. "all-or-none".) R. Best Modern Practices All work, including design, shall be performed and completed in accordance with the best modern practices, further, no detail necessary for safe and regular operation shall be omitted, although specific mention thereof may not be made in these specifications. 12403P Rental Car Concessions&Lease Agreements Page 12 of 60 117 S. More or Less Quantities are estimated only and Proposal shall be on a MORE OR LESS basis. For the purpose of comparison, Proposals shall be made in the quantities listed in this specification. Listed quantities shall not be considered firm estimates of requirements for the year, nor shall the City be bound or limited to quantities listed. Payment will be made only for quantities actually received,whether greater or less than the stated amounts. T. Failure to Execute Concession Agreement Should the Selected Proposer fail or refuse to execute the Concession Agreement in substantially the form attached hereto, or otherwise default on the agreement created by the City's acceptance of the Selected Proposer's Proposal, the Proposal Guarantee submitted by the Selected Proposer and any interest thereon shall become the property of the City, without the necessity of any further action on the part of the City, not as a penalty, but as liquidated damages. Proposers acknowledge that the City has incurred costs and will incur additional costs and damages by reason of such default and that such damages are difficult to determine. III. PREPARING AND SUBMITTING A PROPOSAL A. General Instructions The evaluation and selection of an Operator will be based on the information submitted in the Proposal plus references, and best and final offers (BAFOs) where requested. Failure to respond to each of the requirements in the RFP may be the basis for rejecting a Proposal. B. Organization and Format of Required Proposal Elements Proposers responding to this RFP must comply with the following format requirements. The City reserves the right to exclude any responses from consideration that do not follow the required format as instructed below. Proposals shall be organized and presented in the order and by the numbers assigned in the RFP with each heading and subheading should be separated by tabs or otherwise clearly marked. Tab 1-Table of Contents Provide a table of contents for the Proposal. Tab 2- RFP Signature Sheet Complete and sign the Signature Sheet, page 2 of this RFP solicitation, along with the Certification of City & Acknowledgements on pages 3 and 4. Tab 3-Transmittal Letter The transmittal letter must be written on the Proposer's official business stationery and signed by an official authorized to legally bind the Proposer. Include in the letter: 1) Name and title of Proposer representative; 2) Name, physical and mailing address of company; 3) Telephone number,fax number, and email address; 4) RFP number and title; 5) A statement that the Proposer believes its Proposal is fully responsive to the RFP and meets or exceeds all requirements set forth in the RFP (unless otherwise expressly indicated by the Proposer in this Proposal). 6) A statement acknowledging the Proposal conforms to all procurement rules and procedures articulated in this RFP, all rights,terms and conditions specified in this RFP; 7) A statement that the individual signing the Proposal is authorized to make decisions as to the prices quoted and that they have not participated and will not participate in any action contrary to the RFP, 8) A statement that the Proposer will be making a number of representations outside of its formal Proposal document in possibly, discussions, presentations, negotiations, demonstrations, sales or 12403P Rental Car Concessions&Lease Agreements Page 13 of 60 118 reference material and other information-providing interactions and as such hereby warrants that the City can rely on these as inducements into any subsequent contract, and be made a part thereof; Tab 4- Response to Proposer's Qualification Requirements Provide a point-by-point response to each requirement specified in Section V. A. of this RFP. Responses that fail to meet the mandatory requirements shall be rejected. Tab 5- Response to Staff Qualification Requirements Provide a point-by-point response to each requirement specified in Section V. B. of this RFP. Responses to requirements must be in the same sequence and numbered as they appear in this RFP. Tab 6- Response to Financial Requirements Provide a point-by-point response and documents to each specified item in Section V. C. of this RFP. Responses to requirements must be in the same sequence and numbered as they appear in this RFP. Tab 7- Response to Operational Requirements Provide a point-by-point response and documents to each requirement specified in Section V. D. of this RFP. Responses to requirements must be in the same sequence and numbered as they appear in this RFP. Tab 8—Response to Concession Services Requirements Provide a point-by-point response to each requirement specified in Section V. E. of this RFP. Responses to requirements must be in the same sequence and numbered as they appear in this RFP. Tab 9- Response to General Requirements Provide a point-by-point response and documents to each requirement specified in Section V. F. of this RFP including any facility improvements or upgrades, offered. Responses to requirements must be in the same sequence and numbered as they appear in this RFP. Tab 10-Sample Contract and Terms and Conditions The Sample Contract, General and Special Terms and Conditions provided with this RFP represent the terms and conditions which the City expects to execute in a contract with the successful Proposer. Proposers must accept or submit point-by-point exceptions along with proposed alternative or additional language for each point. The City may or may not consider any of the Proposer's suggested revisions. Any changes or amendment to any of the Contract Terms and Conditions will occur only if the change is in the best interest of the City. Tab 11- Required Forms Include here the completed forms required in the RFP that are not required to be submitted under another tab. Failure to complete and/or provide any required forms may result in disqualification of proposal. • Proposal Guarantee and Bid Bond • Proposer Questionnaire • Proposer References • Personnel Inventory Form C. Prohibition of Proposer Terms&Conditions A Proposer may not submit the Proposer's own contract terms and conditions in a response to this RFP. If a proposal contains such terms and conditions,the City, at its sole discretion, may determine the proposal to be a nonresponsive counteroffer, and the proposal may be rejected. D. Submitting a Proposal All Proposals shall list the information on the outside of the package as specified on Page 2 of this RFP. Proposers shall submit one original (so marked) paper copy, along with four (4) electronic version of all files via USB drive no later than the date and time listed on Page 2 of this RFP. Late Proposals will not be accepted or evaluated and will be returned to sender unopened, unless it can be proven the Proposal was in the hands 12403P Rental Car Concessions&Lease Agreements Page 14 of 60 119 of a third-party delivery company an should have been delivered on time,thus showing no advantage over the other Proposers. If City Hall is closed for business at the time scheduled for opening,for whatever reasons, Proposer's response will be accepted and opened on the next business day of the City, at the originally scheduled hour. Any sections deemed by proposer to be confidential per Washington State Public Disclosure Act (RCW 42.56 et seq.) shall be separated from the main document and marked "confidential". All other sections of the response shall be made available to the public immediately after contract signing. All materials required for acceptance of the Proposal by the deadline must be sent to the address listed on page 2 of this RFP. E. Multiple Proposals Multiple Proposals from a Proposer will be permissible; however, each Proposal must conform fully to the requirements for proposal submission. Each such Proposal must be submitted separately and labeled as Proposal#1, Proposal #2, etc. on the first page of their response. F. Withdrawal of Proposals Proposers may withdraw or supplement a proposal at any time up to the proposal closing date and time. If a previously submitted proposal is withdrawn before the proposal due date and time, the Proposer may submit another proposal at any time up to the proposal closing date and time. After proposal closing date and time, all submitted Proposals shall be irrevocable until contract award. G. Proposal Guarantee A Proposal Guarantee in the form of a cashier's check, a certified check or a bid bond issued by a surety authorized to do business in the state of Washington and made payable to the City, in the amount of $5,000.00 shall accompany Proposal. Cash or other types of checks will not be accepted. The bid bond, which has been included with this Proposal, is submitted to the City by the Proposer with the full understanding that: 1. It guarantees that the Proposer will not withdraw its Proposal for a period of 120 calendar days after the Due Date. If the Proposal is accepted by the City, the Proposer will, in a timely manner, enter into the Concession Agreement with the City, provide all other required information and materials to the City and meet and/or perform all other obligations within 30 calendar days of written Notice of Intent to Award. 2. The Proposer's failure to enter into the Concession Agreement with the City, provide all other required information and other materials to the City, or meet and/or perform all other obligations within 30 days after the date of written Notice of Intent to Award shall be just cause for cancellation of the award by the City and the forfeiture of Proposal Guarantee. 3. If the City cancels the Proposer's award as a result of the Proposer's failure, the City may, at its sole discretion, accept another Proposal or reject all Proposals. 4. If the award is not made to the Proposer for any other reason than that which is listed above, or if the City rejects all Proposals,this Proposal Guarantee shall be returned, without interest. IV. EVALUATION AND CONTRACT AWARD A. Preliminary Evaluation All Proposals, and where applicable, any Controlling Parties, shall be evaluated against the same standards. The Proposals will first be reviewed to determine if they contain the required forms, follow the submittal instructions and meet all mandatory requirements. Failure to meet mandatory requirements may result in proposal rejection as non-responsive. In the event that NO Proposer meets specified requirement(s), the City reserves the right to continue the evaluation of the Proposals and to select the Proposal most closely meeting the requirements specified in this RFP, or not select any Proposals. 12403P Rental Car Concessions&Lease Agreements Page 15 of 60 120 B. Sources of Information In the process of evaluation, the City may acquire and use, to the extent deemed necessary, information obtained from the following sources: • The Proposer, including representations and other data contained in Proposer's submittal, or other information provided by Proposer. • Financial data and records concerning Proposer's performance. In addition, the City reserves the right to audit or to appoint a competent representative to audit the books and records of any Proposer in order to verify its financial responsibility. • Other information available to the City, including publications, credit ratings,trade and financial journals or reports. • Other sources, including banks or other financial companies; state, county and municipal departments and agencies; and other airports. • The results of Proposers background checks of concession employees to verify information furnished or to secure additional information the City may deem necessary or desirable. C. Evaluation Criteria The proposals will be scored using the following criteria: # Description Max Points Operations&Safety Plan; Proposer's proposed operating, safety and security 20 plans. After Hour Car Pick Up;the ability and availability to provide service to those 18 customers flying in on our flights that occur before or after normal business hours. i.e midnight arrival and/or 5 AM departure. Management Policies; Proposer's management policies. 16 AND Marketing Plan;proposed plans for marketing and promoting the Concession. 4 Current/Past Performance; evaluation of the Proposer's current and past 14 performance with the City of Yakima and in providing comparable services at other airports or public facilities. AND References; Personal and professional references. 5 Experience;of Proposer and those employees of the Proposer whom the Proposer 12 certifies will have overall management supervision as well as those persons who will have major responsibilities in the control and management of the operation of the Concession. 6 Financial Condition; of Proposer, and if relevant, any Controlling Party, and the 10 ability to obtain adequate financing to perform those functions necessary for the Concession. 7 Facility Improvements Offered;proposed plans, if any,for Improvements to the 10 Concession Area for use of space, decor, and quality of equipment and furnishings. AND Capital Improvements Offered; any proposed facility capital improvement. TOTAL POSSIBLE POINTS 100 12403P Rental Car Concessions&Lease Agreements Page 16 of 60 121 D. Proposal Scoring The points stated above are the maximum amount awarded for each category. The evaluation process is designed to recommend award of this procurement to the Proposers that best meets the needs of the City and not necessarily with the best cost Proposal. The cost proposal section shall receive a weighted score, based upon the ratio of the lowest proposal to the highest proposal. The lowest cost Proposal will receive the maximum number of points available for the cost category and other proposals will be scored accordingly. Results of reference checks will be used to clarify and substantiate information in the written proposals. The reference results shall then be considered when scoring the responses to the requirements in the RFP. Should the Evaluation Team request any oral presentations or demonstrations from one or more of the short- listed proposers, the Evaluation Team will review the initial scoring and adjust based on the information obtained in the oral presentation or demonstration to determine final scoring. E. RFP Evaluation Evaluation of proposals shall be based on conformity to the specifications, cost, past experience and performance with the City and other agencies, proposer's brand past performance with the City and other agencies, proposer's service availability, parts availability, equipment design and functionalism and effect on productivity and bidder's supporting documentation. After receipt of Proposals, based on evaluation of the written proposals by the Evaluation Team on the stated criteria, an estimated four to six top scoring Proposals may be short-listed. A Proposer may not contact any member of an Evaluation Team except at the Evaluation Team's direction. The City may award a Concession Agreement based on the Proposals received, without conducting negotiations or discussions. Each Proposal should be submitted on the most favorable terms. F. Proposer Presentations Short-listed Proposers may be required to provide additional information and/or participate in interviews to support and clarify their Proposals, if requested by the Evaluation Team. If additional information is requested, it shall be furnished in the format and within the time frame specified by the City. The Evaluation Team will make every reasonable attempt to schedule each presentation at a time and location agreeable to the Proposer. Failure of a Proposer to produce requested information, interview or permit a site visit on the date scheduled may result in rejection of the Proposer's submittal. G. Tired Score In case of a tied score, recommendation of award will go to the firm who was favored by the majority of the Evaluation Team members, according to their score. The Evaluation Team shall then offer an "Intent to Negotiate" and/or "Intent to Award"the final contract with the successful Proposer and the decision to accept the award and approve the resulting contract shall be final. Notwithstanding the foregoing, the selection of a Proposal shall not be effective and binding upon the City until the Concession Agreement has been formally executed by both parties. H. Tax Revenues RCW 39.30.040 allows the City to consider the tax revenue that is generated by a purchase of supplies, materials, and equipment, including those from a local sales tax or from a gross receipts business and occupation tax, it determining which bid proposal is the lowest, after the tax revenue has been considered. 12403P Rental Car Concessions&Lease Agreements Page 17 of 60 122 I. Offer in Effect for One Hundred Twenty(120) Days A Proposal may not be modified, withdrawn or canceled by the Proposer for a period of one hundred twenty (120) days following the deadline for proposal submission as defined in the Calendar of Events, or receipt of best and final offer, if required, and Proposer so agrees in submitting the proposal. J. Award/ Best and Final Offers The Buyer will compile the final scores for all sections of each responsive proposal. The award will be granted in one of two ways. The Evaluation Team's Recommendation of Award may be granted to the highest scoring responsive Proposals from a responsible Proposers. Alternatively, Proposers with the highest scoring proposal may be requested to submit their Best and Final Offers. If Best and Final Offers are requested by the Evaluation Team and submitted by the Proposers,they will be evaluated against the stated criteria, scored and ranked by the evaluation committee. The Intent to Negotiate then will be granted to the highest scoring Proposers, up to four (4). However, a Proposer should not expect that the City will request a Best and Final Offer. Proposers that already hold a lease agreement with YKM may request to remain in their respective ticket counters. In the event the Proposers under mutual agreement wish to change their counter location, the Proposer with the highest points after the evaluation process will have first choice on rental car counter space, optional office space, vehicle staging and terminal parking, and vehicle overflow parking (Exhibits A, B, and C to the Agreement). The second highest Proposer will have second choice, third highest Proposer will have third choice, while the fourth Proposer will occupy the remaining rental car space and vehicle parking. K. Notification of Intent to Negotiate/Intent to Award Proposers will be notified in writing of the City's "Intent to Negotiate" and/or "Intent to Award" the contract(s) resulting from this RFP. If the City determines, in its sole discretion that selected Proposer(s) did not obtain and/or has failed to diligently and promptly apply for and/or pursue all required permits, licenses, and certificates required to operate the Concession within the time period provided herein, including any extension of time authorized by the City, the City may; (i) withdraw the Notice of Intent to Award the Concession Agreement to the Selected Proposer and issue a Notice of Intent to Award to another Proposer submitting the Proposal with the best overall benefit to the City, or(ii)withdraw the Proposal Documents without making an award, or (iii)take such other action as the City shall determine appropriate. L. Right to Reject Proposals and Negotiate Contract Terms The City reserves the right to negotiate the terms of the contract, including the award amount, with the selected Proposer(s) prior to entering into a contract. If substantial progress is not made in contract negotiations with the highest scoring Proposer(s), the City may choose to cancel the first Intent to Negotiate and commence negotiations with the next highest scoring Proposer(s). M. Protest Procedure Any protest must be made in writing, signed by the protestor, and state that the Proposer is submitting a formal protest. The protest shall be filed with the City of Yakima Purchasing Division at 129 No. 2nd St., Yakima, WA 98901, by fax: 509-576-6394 or email to: Purch@YakimaWA.Gov. The protest shall clearly state the specific factual and legal ground(s)for the protest, and a description of the relief or corrective action being requested. Protests based on specifications/scope of work, or other terms in the RFP shall be filed at least five (5) calendar days before the solicitations due date, and protests based on award or after the award shall be filed no less than five calendar (5) days after Award Announcement (see below for details). The following steps shall be taken in an attempt to resolve the protest with the Proposer: 12403P Rental Car Concessions&Lease Agreements Page 18 of 60 123 Step I. Purchasing Manager and Division Manager of solicitation try resolving matter with protester. All available facts will be considered and the Purchasing Manager shall issue a written decision. Step II. If unresolved, within three (3) business days after receipt of written decision,the protest may be appealed to the Department Head by the Purchasing Manager. Step III. If still unresolved, within three (3) business days after receipt of appeal, the protest may be appealed to the Executive (or his designee). The Executive shall make a final determination in writing to the Protester. Award Announcement Purchasing shall announce the successful Proposer via Website, e-mail, fax, regular mail, or by any other appropriate means. Once the Intent to Negotiate is released by Purchasing, the protest time frame begins. The timeframe is not based upon when the Proposer received the information, but rather when the announcement is issued by Purchasing. Award Regardless of Protest When a written protest against making an award is received, the award shall not be made until the matter is resolved, unless the City determines that one of the following applies: • The supplies or services to be contracted for are urgently required; • Delivery or performance will be unduly delayed by failure to make award promptly; • A prompt award will otherwise be advantageous to the City. If the award is made, regardless of a protest, the award must be documented in the file, explaining the basis for the award. Written notice of the decision to proceed shall be sent to the protester and others who may be concerned. The City retains the right to enter into any contract and nothing herein shall be construed to limit that authority in any manner. N. Execution of Concession Agreement Final Agreement; within forty-five (45) days after City's receipt of copies of all required permits, licenses, and certificates, from the Selected Proposer, the City shall endeavor to deliver or mail to the Selected Proposer, in duplicate, the final Concession Agreement in the form substantially similar to the Agreement attached hereto completed in accordance with the Proposal submitted by Proposer and as accepted by City. Within ten (10) days thereafter, the Selected Proposer shall deliver both copies to the City, with the Concession Agreement duly executed by it as "Concessionaire" and the Performance Bond required in the Concession Agreement. Upon receipt,the City will execute both copies and return one to the Concessionaire. V. PROPOSAL REQUIREMENTS The following requirements are mandatory and the Proposer must satisfy them at no additional cost to the City. It is the burden of Proposer to provide evidence in its Proposal that it is fully competent to provide the Concession and that it has the necessary experience and capacity to fulfill the requirements of the Proposal Documents. Responses to each requirement in this Section must indicate that the Proposer either "does comply" with the requirement or "does not comply". No explanation is required, as non-compliance with any of the following requirements may result in proposal rejection and remove that Proposal from further consideration. If Proposer feels that any of the Requirements are proprietary, contact the Buyer listed on Page 2 to determine if requirements should be changed. 12403P Rental Car Concessions&Lease Agreements Page 19 of 60 124 A. Proposers Qualifications 1. Proposer's Company must have at least three (3) years of substantial, continuous, and recent experience in comparable successful Rental Car Concessions. 2. Detailed information relating to concessions and other business ventures that the Proposer has operated or is currently operating that are comparable to the Concession herein. Such information shall include, but not be limited to, number of years business was operated, the level of Proposer's involvement, proven experience. 3. Provide verification that Proposer has determined all requirements for permits, licenses, and certificates required by any regulatory agency (federal, state, and local) for Proposer to operate the Concession, and that Proposer has or will be able to obtain all required permits, licenses, and certificates upon thirty (30) calendar days of receipt of the Notice of Intent to Award the Concession Agreement. The Selected Proposer must promptly and diligently apply for and pursue the required permits, licenses, and certificates and shall provide the City with copies of all applications for such permits, licenses, and certificates. This requirement is waived for incumbent operators. Selected Proposers shall provide the City, upon request, with a copy of any such licenses, permits and certificates and any applications and other information provided to such regulatory agencies and continuously keep City fully informed of the status of each application. 4. Proposer References; using the attached Reference Form in Section VIII, provide at least three (3) references for organizations with whom your company has provided similar services over the last five (5) years, excluding the City of Yakima and/or Yakima Air Terminal. Include a contact name, email address, telephone number, and a clear, concise description of the project. The City will determine which, if any, references are contacted to assess the quality of work performed. The results of any reference checks will be provided to the Evaluation Team for this RFP and will be used when scoring the written proposal. 5. Proposer Questionnaire; Proposer must complete the Proposer Questionnaire Form in Section VIII. and submit it in accordance with Section III. B. B. Staff Qualifications 1. Identify and provide a resume for the Manager that will be assigned to YKM and list any additional locations they will be managing during the Contract term. The Manager will be the primary point of contact for the City and must be available on an as-needed basis. Describe how the Manager will guarantee availability to the City during the entire duration of the project. 2. Identify additional key personnel from your company along with any managerial and/or supervisory staff that will be assigned to this contract, including their full legal name and address, current job title and the role they will play. For each staff person, attach a brief resume with any pertinent licenses and/or accreditations. 3. Identify the Account Manager who will be handling all invoices and billing and will serve as the primary accounting point of contact for this contract. 4. If any of these contacts change during the contract term, the Operator shall verbally notify the City within twenty-four (24) hours of change and follow up in writing within five (5) business days of the date of change. 12403P Rental Car Concessions&Lease Agreements Page 20 of 60 125 C. Financial Requirements The purpose of this section is to provide the City with a basis for determining a Proposer's financial capability to undertake this Contract. Proposer shall submit the following: 1. Financial Review or Compilation Report;for both the Company and parent company a current Financial Review or Compilation Report by a CPA firm, which is not to be older than one (1)year. 2. Provide the City with a full Dun & Bradstreet report for both the Proposer's company and parent company, if applicable, which is not to be older than six(6) months. 3. Proposer will meet all expenses in connection with its operation at YKM, and the rights and privileges herein granted, including, without limitation by reason of enumeration, taxes, permit fees, license fees and assessments lawfully levied or assessed upon the concession operator, and that it will secure all such permits and licenses. 4. Compensation The Proposer agrees to pay the City of Yakima/YKM during the term of the Concession Agreement: a. Concession Counter Space; rent is set to current years Rates & Fee's as adopted by the Yakima City Council, which are subject to review and/or change annually. The 2024 rate for terminal first floor is $34.84 per square foot, per year. Concession counter space is shown in Exhibit A, Figures 2, 3, 4, and 8. b. Optional Office/Storage Space; rent is set to current years Rates & Fee's as adopted by the Yakima City Council, which are subject to review and/or change annually. The 2024 rate for terminal first floor is $34.84 per square foot, per year. Optional office/storage space is shown in Exhibit A, Figures 1, 5, 6 and 7. c. Rental Car Staging Area and Vehicle Terminal Parking Space; rent is set to the current years Rates & Fee's as adopted by the Yakima City Council, which are subject to review and/or change annually. The 2024 rate for Parking Spots by the Terminal is$20 per spot per month. Vehicle staging area and terminal parking spots are shown in Exhibit B. d. Optional Rental Car Overflow Parking Space; rent is set to the current years Rates & Fee's as adopted by the Yakima City Council, which are subject to review and/or change annually. The 2024 rate for Parking Spots in Overflow Parking is $18 per spot per month. All overflow parking is shown in Exhibit C. e. Concession Fee, consisting of; • Ten percent(10%)of the Gross Revenues as defined herein, and • A Transaction Fee of five dollars ($5.00) on each vehicle transaction as defined herein The Proposer acknowledges that payment of the Transaction Fee, in addition to any other possible charges required by the Concession Agreement, is subject to, and further explained by, all the other terms and conditions set forth in the RFP and Contract Documents. 5. Performance Bond After Notice of Award and before Contract is signed, Operator shall furnish a duly-executed bond upon a form approved by the City, signed by approved surety or sureties in the amount of Ten Thousand Dollars and No Cents ($10,000.00) conditioned upon the faithful performance of the Contract by the Operator within the time prescribed thereon. At the option of the Operator, an irrevocable Letter of Credit or a savings account by a commercial bank, acceptable to the City, in the amount of Ten Thousand Dollars and No Cents ($10,000.00) may be assigned to the City for the term of the Contract in lieu of a Performance Bond. At any time and as often as may be deemed necessary, the City may require any or all sureties or any surety company to appear and qualify them upon the bond, or show continued assignment of the prescribed savings account. Whenever such surety or sureties are deemed by the City to have become 12403P Rental Car Concessions&Lease Agreements Page 21 of 60 126 insufficient, the City may demand in writing that the Operator furnish additional surety in an amount not exceeding that originally required as may be deemed necessary considering the work remaining to be done. No further Concession services shall be allowed until such additional surety as required is furnished. In the event that the bonding company or bank requires an executed contract prior to insurance of the required Performance Bond or Letter of Credit, Operator will be required to: a. Show evidence in the term of a letter from the bonding company of the capacity of the Operator to be bonded or from the bank of the capacity of the Operator to issue a Letter of Credit. b. The Contract will be subject to receipt of a Performance Bond or Letter of Credit within 30 days of execution of Contract. D. Operations The purpose of this section is to provide the City with a basis for determining a Proposer's capability to perform this Contract. 1. Organizational Capabilities a. Describe how your Company plans to provide the services required by this RFP to customers of YKM. b. Provide an organizational chart for your company and include an issue escalation process used to resolve any potential issues between the City and the Operator during the Contract term. 2. Operating and Marking Plan a. Provide a proposed operating plan for the Concession that shall address, at a minimum, the Standards of Service set out in the attached Concession Agreement and specific services to be provided. b. Provide a marketing and public relations plan to promote the Concession and to assure that individuals using the Airport are aware of the Concession in order to maximize its use and revenue. 3. Safety and Security Plan a. Outline a safety and security plan and/or protocol to assure that individuals using the Concession and their property at the Airport are safe and secure at all times. b. Describe the program that Proposal will use to provide a criminal and security background check that will be applied to all Proposer's employees who will provide Concession services. This program must, at a minimum, address felonies, crimes involving moral turpitude, and the disqualifying criminal offenses listed in 49 CFR §1542.209(d). c. Outline Proposer's alcohol and drug testing program to be applied to all Proposer's employees at the Concession. 4. Capital and Facility Improvements Provide a detailed plan and approximate dollar value of any planned capital and/or facility improvement to either the Concession space or other areas of the facility. 5. DBE and/or ACDBE Plan If applicable, provide complete information and documentation pertaining to Proposers status as a Disadvantaged Business Enterprise (DBE) and or ACDBE. E. Concession Services The Proposers hereby covenants and agrees: 1. To furnish prompt, efficient, first-class rental car service which is adequate to meet all reasonable demands for its operation at YKM. 12403P Rental Car Concessions&Lease Agreements Page 22 of 60 127 2. That the rental cars used in concession services at YKM shall be maintained, at the Proposer's sole expense, in good, safe and operative order, free from known mechanical defects, and in a clean, neat and attractive condition, inside and outside. 3. That the facilities and services to be provided by the Proposer for the purpose of providing rental car service at YKM shall remain open and staffed for such periods during each day, and such days during each week, as may be necessary to meet reasonable demands for said service. Rental Car Agencies that are able to support the demands of after normal business hour flight arrivals at the Airport, a reduction of their rent will be incorporated by the Airport. 5. That all personnel performing services on behalf of the Proposer shall be professional, courteous, neat, and clean at all times. The Proposer will not permit its agents, servants or employees to conduct business in a loud, noisy, boisterous, offensive or objectionable manner, or to solicit business at YKM in any manner whatsoever except through the use of approved signs as defined in the Contract. 6. That it shall not engage in any business or other activity that will divert customers from YKM to an off-site office, parking lot, garage, etc., for any purpose whatsoever, including, but not limited to, writing of sales agreements off YKM premises. If the City believes, in its opinion, that the winning proposer is engaging in such diversion business or other activity described hereinabove, it reserves the right to inspect off-YKM office records. Failure to permit such inspection or rectify any violations provided herein shall be subject to the City's right to terminate as specified in the Contract. In addition, the City shall have the right to include such business or other activity within the definition of gross revenues and the right to recover any revenues lost as a result of any diversion of business from YKM. 7. To observe and abide by all reasonable rules and regulations which are now, or may,from time to time, be promulgated by the City concerning management. 8. To comply with the rules and practices as set forth in the current Yakima Air Terminal Security Plan, to be provided after award, and as amended from time to time. Any fines assessed against YKM by the Transportation Security Administration as a result of the concession OPERATOR'S failure to comply with the provisions of this paragraph or other intentional or negligent acts or omissions of concession operator, its employees, agents or representatives will be paid promptly upon demand to the City by the concession operator. Concession operator further agrees to accept responsibility for not allowing unauthorized persons access to YKM Air Operations Area (AOA). 9. The City shall be the sole and final judge of the quality and the adequacy of the services furnished by the concession operator as specified herein. In the event the City determines that the concession operator has failed to comply with the requirements hereunder with respect to the quality and adequacy of its services, the City may, upon thirty (30) days written notice, exercise its right to terminate the resulting Agreement as per the Contract. However, the City may, in its discretion, extend the time for compliance if, in its opinion, the concession operator is making reasonable progress in complying with the requirements of the Agreement. F. General Requirements 1. Proposer's Representations and Warranties; unless otherwise specifically stated by the Proposer, Operator warrants, a. The Proposer hereby represents and affirms that the Proposal contained herein is in no way conditioned upon any predetermined level of aviation, passenger, or other business activity at the Airport, past, present, or future. Proposer has not relied on any representations of the City or its agents, either verbal or written, as to the level of business at the Airport before or during the term of the Concession Agreement, nor of any factors that might bear on such business potential, including without limitation the information provided on the Airport website or the exhibits attached or 12403P Rental Car Concessions&Lease Agreements Page 23 of 60 128 otherwise included in the Proposal Documents. The Proposal contained herein is based solely on Proposer's own knowledge of the market and the rental car business and its own assessment of the market potential at the Airport for such a concession. b. That the Proposer has read, understands, and all services furnished under this Contract conform strictly with to the specifications, terms, conditions, and provisions set forth herein, and are legally merchantable. Proposer further warrants that no violation of any federal, state or local law, statute, rule, regulation, ordinance or order will result in or from the Proposer performing and/or providing the required services as state herein. c. The Proposer is fully qualified and competent to the successfully operate the Concession at the Airport and will fully comply with all the requirements associated with doing so. d. The Proposer has submitted an accurate and complete Proposal and has provided all the information requested by the City. The Proposer acknowledges that all of the information submitted by the Proposer and all of the warranties and representations made by the Proposer will be relied upon by the City. This Proposal is fully responsive to the RFP and meets or exceeds all the specifications contained in the RFP (unless otherwise expressly indicated by the Proposer in this Proposal). e. Neither the Proposer nor any of the Proposer's officers, directors, owners, employees, representatives or controlling parties has in any manner conspired, colluded or agreed, directly or indirectly, with any person,firm, corporation or other Proposer or potential Proposer to unfairly compete or compromise, in any way, the procurement process. The Proposer has not paid or agreed to pay, directly or indirectly, any person, partnership, company, association, organization, corporation or any other Proposer or any potential Proposer and has not paid any money or provided any other valuable consideration to any party for providing assistance in seeking acceptance of the Proposal or attempting to seek acceptance of the Proposal or to fix the proposed terms, conditions or provisions of this Proposal or any other Proposal of any other Proposer, and hereby states that no such money or other consideration will be hereinafter paid. f. No controlling party, officer, director, owner, agent, employee or representative of the Proposer is related by blood or marriage to any director, agent, employee, or officer of the City except as noted herein below. g. Proposer hereby certifies for itself and each controlling party, and each officer, director, employee, and agent of Proposer who will be directly involved in the supervision, direction, management, or operation of the Concession, that no such individual or entity has ever been convicted of, and does not have pending criminal charges of,the disqualifying criminal offenses listed in 49 CFR §1542.209(d) or any comparable laws or regulations. Proposer further certifies that no individual or entity who has been convicted of, or has pending criminal charges of, the disqualifying criminal offenses listed above, will perform any work pursuant to the Concession or the Proposal Documents on the City property, unless the Proposer obtains the prior written approval of the City. h. Proposer certifies that it has determined and obtained all requirements for permits, licenses, and certificates required by any regulatory agency (federal, state, and local) for Proposer to operate the Concession. i. Proposer's warranties (and any more favorable warranties, service policies, or similar undertaking of Proposer)shall survive delivery, inspection, and acceptance of the services. 2. Points not addressed a. Proposers are encouraged to list any points not addressed in these specifications that they feel improve or enhance the operation of the Concessions. 12403P Rental Car Concessions&Lease Agreements Page 24 of 60 129 b. Proposer may submit any additional information that is material and relevant to a determination of its qualifications and ability to operate a successful concession of the type required hereunder offering safe, uninterrupted, technically sound, and efficient service in a clean, attractive, and professional environment consistent with the highest standards as determined by the City in its sole discretion. c. Capital Improvements Offered; describe in detail any improvements you propose to make to the YKM facility at no cost to the City. VI. REQUIRED FORMS A. Forms Due with Proposal Below is a list forms to be completed and submitted with Proposal in accordance with the instructions given in Section III Preparing and submitting a Proposal. The following forms are located in the Bid Specifications; 1. Signature Sheet (page 2)to be submitted under Tab#2. 2. Certification of City&Acknowledgements (pages 3-4)to be submitted under Tab#2. One of the following: • Corporation/Limited Liability • Partner Ship • Limited Partnership The following forms are located in Section VIII, Attachments; 3. Proposal Guarantee/Bid Bond (page 53)to be submitted under Tab#11. 4. Proposer Questionnaire (pages 54-58)to be submitted under Tab#11. 5. Proposer References (page 59)to be submitted under Tab#11. 6. Personnel Inventory Form (page 60)to be submitted under Tab#11. B. Forms Due Before Contract Execution The following forms shall be completed and submitted after Notice of Intent to Award is issued and before Contract Execution Date. These forms can be found in the Section VIII, Attachments; 1. Performance Bond (pages 61). 2. Certificate of Insurance with Additional Insured Endorsement and Waiver of Subrogation. 12403P Rental Car Concessions&Lease Agreements Page 25 of 60 130 4.,_,_,,. ., n�t Purchasing Division memo To: Dave Zabel!, Interim City Manager From: Susan Knotts, Buyer II Date: June 27, 2024 Re: Award of RFP 12403P Rental Car Concessions and Lease, Yakima Air Terminal On April 2, 2024, the City of Yakima solicited RFP 12403P Rental Car Concessions and Lease for Yakima Air Terminal/McAllister Field, requesting proposals to develop, manage, and operate rental car concessions at the Yakima Air Terminal/McAllister Field. The RFP was advertised in the Yakima Herald Republic on April 2, and 4, 2024, and on the City of Yakima website. A Notice to Proposers was sent out nationally through Public Purchase with a proposal due date and time of May 23, 2024, at 2:00 PM in which all submitted proposals were kept in an electronic lock box until the due time then unencrypted and publicly opened in the City Council Chambers. Notice was sent to 33 companies through Public Purchase and I emailed 13 known companies with 19 different contacts. This RFP went out to a total of 38 Companies and 66 different contacts, with receipt of only one Proposal; The Hertz Corporation, Estero, FL. Purchasing reviewed the submittal for responsiveness to the RFP specifications. The Hertz Corporation Proposal was determined to meet the minimum requirements of the RFP with no exceptions to the City's Contract. Due to The Hertz Corporation being the only company to submit a proposal, there was no need for the Evaluation Committee to review and score the submittal. The Yakima Air Terminal/McAllister Field reviewed the proposal submitted by The Hertz Corporation and determined it meets the needs of the City of Yakima and the Yakima Air Terminal/McAllister Field and because The Hertz Corporation is a current vendor in the Yakima Air Terminal, the Yakima Air Terminal/McAllister Field felt there was no need to conduct a presentation/interview. Purchasing and the Yakima Air Terminal/McAllister Field recommends Award of RFP 12403P Rental Car Concession and Lease to The Hertz Corporation. Sincerely, -I T'' __,/e tv1:9-thcev4—. - Susan Knotts, NIGP-CPP, CPPB, CPPO Buyer II, Purchasing Division APPRDVE! './0'.(/2.471 Ro err Hodgman, akima ir-Terminal/McAllister Field Director Date Page 111 131