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Committee recommends four SFO rental-car leases and reports closed-session settlement recommendations

Government Audit and Oversight Committee, Board of Supervisors, City and County of San Francisco · May 7, 2020
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The committee recommended four on-airport rental-car leases (Avis/Budget; Enterprise/Alamo/National; Hertz; SIXT) to the full Board, reviewed minimum annual guarantees and MAG vs. percentage rent, and reported in open session that two settlement ordinances considered in closed session were recommended unanimously; Chair Marr raised concerns about potential wage impacts on over 500 rental-car workers that motivated closed-session sequencing.

On May 7 the Government Audit and Oversight Committee considered four related airport items together: three lease resolutions and one resolution approving a fourth rental-car operations lease at San Francisco International Airport, and two ordinances authorizing settlements that were considered in closed session.

The leases would be five-year initial terms with two two-year extension options and include minimum annual guarantees (MAGs) for the first year. Airport staff summarized the proposed year-one MAGs as: Avis/Budget — $11,076,378; Enterprise (Alamo/National/Enterprise brands) — $16,087,548; The Hertz Corporation…

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