Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
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Rental Cars<br />
Lease Option Period<br />
April 1, 2006 through March 31, 2007<br />
April 1, 2007 through March 31, 2008<br />
April 1, 2008 through March 31, 2009<br />
April 1, 2009 through March 31, 2010<br />
April 1, 2010 through March 31, 2011<br />
April 1, 2011 through March 31, 2014<br />
MAG<br />
$5,850,000<br />
6,009,000<br />
6,176,000<br />
6,351,000<br />
6,535,000<br />
6,535,000<br />
The eight on-<strong>Airport</strong> rental car companies that operate at the consolidated rental car facility located<br />
approximately one mile north <strong>of</strong> the Terminal Complex generated an aggregate <strong>of</strong> approximately $32.2 million in<br />
revenue in Fiscal Year 2008-09. This represents an approximately 10.2% increase compared to rental car revenues<br />
<strong>of</strong> approximately $29.3 million generated in Fiscal Year 2007-08, reflecting the impact <strong>of</strong> State legislation<br />
permitting rental car companies to charge customers for concession fees paid to airports, which in effect increased<br />
reportable revenues from the rental car companies by 10%. Each rental car company lease includes one five-year<br />
option to extend at the discretion <strong>of</strong> the <strong>Commission</strong>. For the expiration dates <strong>of</strong> each lease, see the table “Principal<br />
<strong>Airport</strong> Concessionaires.”<br />
Effective on the commencement <strong>of</strong> each lease through December 31, 2010, the <strong>Airport</strong> is <strong>of</strong>fering each<br />
rental car company an incentive that will lower its concession fees, if at least 15% <strong>of</strong> their rental cars meet an EPA<br />
Green Vehicle score <strong>of</strong> 17 or higher. Rental car customers will also receive a $15 credit if they select a rental car<br />
that has an EPA Green Vehicle score <strong>of</strong> 18 or higher. This program will be evaluated at the end <strong>of</strong> 2010 to<br />
determine if the targets <strong>and</strong> incentives require adjustment.<br />
The aggregate MAG (the total concession fees <strong>and</strong> building space rental) for Fiscal Year 2007-08 received<br />
from the on-<strong>Airport</strong> rental car companies was $41.135 million <strong>and</strong> for Fiscal Year 2008-09 was $42.39 million.<br />
Parking<br />
In October 2006, New South Parking-California was selected by the <strong>Commission</strong> through a competitive<br />
process to provide public <strong>and</strong> employee parking services, commencing July 2, 2007 for an aggregate maximum<br />
fixed price equal to $48,287,442. The parking management agreement is for a term <strong>of</strong> three years with two one-year<br />
options to extend.<br />
Concession Revenues<br />
The table on the following page summarizes concession revenues for Fiscal Years 2007-08 <strong>and</strong> 2008-09<br />
attributable to the <strong>Airport</strong>’s highest paying concessionaires. For the purpose <strong>of</strong> this table “Concession Revenue” is<br />
defined as fees <strong>and</strong> rentals collected by the <strong>Commission</strong> for: (i) the right to provide <strong>and</strong> operate restaurants, bars,<br />
car rental services, newsst<strong>and</strong>s, gift shops, specialty shops, advertising displays, insurance, public telephones <strong>and</strong><br />
other merch<strong>and</strong>ising concessions <strong>and</strong> consumer services in the Terminal Area; (ii) the right to provide <strong>and</strong> operate<br />
courtesy vehicles, ground transportation services, hotels, service stations <strong>and</strong> other concessions <strong>and</strong> services in the<br />
groundside area; (iii) other activities <strong>and</strong> services in the groundside area <strong>of</strong> the Terminals such as public automobile<br />
parking <strong>and</strong> traffic fines.<br />
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