REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department BY: MARCOS AYALA, Airports Property Specialist II Airports Department SUBJECT ..Title Approve a consultant services agreement with Ricondo & Associates, Inc., to provide professional services for the development and execution of a Request for Proposals (RFP) and agreement for on-airport non-exclusive rental car concessions at Fresno Yosemite International Airport in the amount of $67,620. (Council District 4) ..Body RECOMMENDATION Staff recommends that the City Council approve and authorize the Director of Aviation to execute a consultant services agreement with Ricondo & Associates, Inc. (Ricondo) in the amount of $67,620 for professional services to develop and execute a rental car (RAC) concessions RFP and agreement at Fresno Yosemite International Airport (FAT). EXECUTIVE SUMMARY The Airports Department (Airports) entered in the current RAC concessions agreements on August 15, 2014, and their terms end on August 31, 2024. Airports requires the assistance of an experienced consultant to develop and execute a RAC RFP and agreement since it has been more than ten-years that the last RAC RFP was issued. Ricondo will bring industry knowledge to the RFP process and to the new agreements that will be executed. BACKGROUND In 2008, Airports completed construction on the Consolidated Rental Car Facility (CRCF), at that time Airports Management and the Rental Car Companies (RAC) agreed to extend the then current agreement. From 2008 - 2014, the rental car industry began to shift from individual companies to combined brands, such as AvisBudget Group, Hertz/Dollar/Thrifty and Enterprise/National/Alamo. The major players in the industry combined brands to create three (3) major companies offering multiple brands. Due to this change, in April 2014, the Airports Department completed a Request for Letters of Interest (LOI) prior to issuing an RFP, to determine if there were new interested rental car companies that wished to enter the Fresno market. At the end of the LOI it was determined that there were no new entrants and the RACs and the Airport agreed to cancel any RFP and entered into a Restated non-exclusive on-airport rental car concessions agreements with Avis Budget, Enterprise, and Hertz, respectively, on August 15, 2014. The agreement was for a period of five (5) years with one five (5) year option. Those agreements will terminate on August 31, 2024. In preparation for the new RAC concession agreements, Airports published an LOI on October 11, 2023, where it solicited responses from RACs wishing to operate at FAT. Airports received responses from RACs currently operating at the airport, as well as RACs interested in operating at FAT that are not at the airport. With the interest of new parties wanting to operate at FAT, Airports is required to issue an RFP. Airports issued a Request for Qualifications (RFQ) for RAC RFP development and execution consultant services on December 6, 2023, and received no responses by the January 16, 2024 deadline. Airports sought recommendations for consultants from peer airports that had recently published a RAC RFP and had used a consultant to assist them. The recommended consultants were contacted with a request to submit a quote for services using the scope of work from the RFQ. Ricondo demonstrated significant airport and RAC industry experience, and is familiar with RAC operations at airports across the country. The agreement utilizes standard document ALL-S Generic CSA Total Fee (08-2023), which is pre-approved as to form by the City Attorney's Office and used without modification by Airports Properties staff. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, this action does not qualify as a project as defined by the California Environmental Quality Act; as it does not commit the City to definite course of action that will have an impact on the environment. LOCAL PREFERENCE Local preference was not implemented per Fresno Municipal Code Section 4-109(b)(3), as there were no responses from RFQ, and no local firms that provided the specific consulting service within the area of expertise for the subject matter of work. FISCAL IMPACT There is no impact to the General Fund or the ratepayers of the City of Fresno from this item. Attachments: Ricondo Consultant Services Agreement Ricondo Proposal Committee Recommendation Memo