20 NORTH CLARK STREET | SUITE 1500 | CHICAGO, IL 60602 | TEL +1 312-606-0611 | WWW.RICONDO.COM
DRAFT FOR CLIENT DISCUSSION PURPOSES ONLY
March 27, 2024
Ms. Melissa Garza-Perry via electronic mail
Airports Properties Manager [email protected] City of Fresno
Airports Department
4995 E. Clinton Way
Fresno, California 93727
RE: Rental Car Concession Program Support Consulting Services
Dear Melissa:
Sorry to have missed you when I stopped by the Airport the other day, but Marcos and Michael represented you and the Airport very nicely. I appreciate their time and courtesy and the opportunity to provide you with Ricondo’s proposal to provide rental car concession consulting services to Fresno Yosemite International Airport.
BACKGROUND
The current Concession and Lease agreements among the on-airport rental car companies and the City of Fresno (the City) for the right to operate at the Rental Car Center (the RCC) at Fresno Yosemite International Airport (the Airport or FAT) are scheduled to expire August 31, 2024. The Airport has determined that it is in its best interest to issue a Request for Proposals (RFP) for new rental car concessions , especially in light of interest expressed from rental car companies not currently operating at FAT , to become on -airport concessionaires.
The Airport has invited Ricondo & Associates, Inc. (Ricondo) to submit a proposal to provide rental car consulting services relating to the scope items listed in your email invitation:
1. Assist airport staff with the development, drafting, and execution of a n RFP for On-Airport Non- Exclusive Rental Car Concessions at FAT. This is specifically for the development of the Rental Car Concession opportunity and determination of Quick Turn Around (QTA) service facilities.
2. Develop and draft detailed operating lease language specifically for new entrants, space, future construction, and customer facility charge (CFC) usage.
3. Ability to assist in bringing new entrants not currently operating in the Fresno market into the current facility.
4. Provide guidance and assistance in revising the CFC under Sections 50474.21 and 50474.3 of the California Government Code, for the building of a new Consolidated Rental Car Facility (CRCF).
Ms. Melissa Garza -Perry
City of Fresno
March 2 7, 2024
SCOPE OF WORK
Ricondo proposes the following scope of work and budget to provide the Airport’s requested services.
TASK 1: STRATEGIC PLANNING
▪ Review existing rental car concession and lease agreement s and other relevant client -provided materials.
▪ Kick-off Meeting (virtual or in-person)
— Determination of Airport’s policy objectives and priorities for its rental car concession program, for the existing RCC facilities, and a potential future consolidated rental car facility (CONRAC) development.
Deliverables:
▪ PowerPoint presentation to Airport management and staff. ▪ Preparation of a detailed Project Schedule to include key task milestones and deliverables that meets the Airport’s project timeline and tracks ongoing activities.
TASK 2: REN TAL CAR CONCESSION PROGRAM BUSINESS PLANNING ▪ Benchmarking of peer airports and best practices.
▪ Advise Airport staff on current best practices, revenue enhancement opportunities at other airports. ▪ Develop and achieve Airport consensus on rental car concession business plan consistent with the Airport’s objectives, including the feasibility of adding a new entrant rental car concessionaire to the existing RCC facilities.
▪ Advise the Airport on rental car industry electric vehicle charging issues at other airports. ▪ Develop concession and lease agreement terms consistent with the Airport’s business plan and industry best practices; develop RFP solicitation documents and the concession and lease agreement in coordination with the Airport’s legal counsel.
▪ Develop space allocation/re-allocation scenarios for all rental car facilitie s (terminal counters, ready/return area; QTA and maintenance areas) , including for a potential new entrant; provide recommendations to the Airport regarding possible feedback from the rental car companies based on current industry conditions and Ricondo’s on-going experience at other airports. ▪ Support the Airport throughout the rental car concession RFP process. ▪ Prepare with Airport management and staff for pre-proposal meeting(s) and other rental car industry meetings. Attend meetings as requested (virtual or in-person). ▪ Provide support to the Airport with the presentation and discussion of rental car concession business terms with the rental car industry as required.
Ms. Melissa Garza -Perry
City of Fresno
March 2 7, 2024
Deliverables
▪ Business terms matrix containing key business and financial terms and for ongoing use by the Airport to obtain internal consensus on the business plan.
▪ Prepare and present s pace re-allocation alternative(s) to the Airport and subsequently, the rental car companies.
▪ PowerPoint presentation materials for rental car company meetings.
TASK 3: PROVIDE GUIDANCE AND ASSISTANCE IN REVISING THE CUSTOMER FACILITY CHARGE (CFC) UNDER SECTIONS 50474.21 AND 50474.3 OF THE CALIFORNIA GOVERNMENT CODE, FOR THE BUILDING OF A NEW CONSOLIDATED RENTAL CAR FACILITY (CRCF).
Ricondo has supported a number of California airports (including SAN, SJC, PSP, SMF ) with the initial implementation, the transition to a per-transaction-day rate, or subsequent rate adjustments of the Customer Facility Charge in accordance with 50474.21 and 50474.3 of the California Government Code. We are currently engaged at three (3) other California airports to support the process of transitioning to the per-transaction- day CFC.
FAT has already implemented a per-transaction-day CFC however, the current rate will likely not generate sufficient revenue to support the development of a new CRCF.
Ricondo would prepare a financial plan including a CFC rate-sizing and debt capacity analysis to support Airport decision-making for future CFC rate adjustments to meet future rental car related capital projects.
If the City decides to adjust the CFC rate, Ricondo would provide support to the City as needed in accordance with the process required by the CFC statute.
Deliverables:
▪ Benchmark of CFC rates at other California Airports
▪ CFC rate sizing and debt capacity financial model
SCHEDULE
The tasks identified in this scope of work are anticipated to be completed over a duration of approximately four (4) to six (6) months from the date of the Airport’s Notice to Proceed.
RICONDO STAFFING
Jim Branda would lead this project for Ricondo. He would be assisted by other Ricondo rental car practice experts as needed.
Ms. Melissa Garza -Perry
City of Fresno
March 2 7, 2024
BUDGET
These consulting services would be provided on a time and materials basis for a not-to-exceed amount of $67,620. A detailed break-down of assumed staff hours and anticipated expenses is attached.
If you have any questions concerning our proposal or need additional information, please contact me at 312-606-0611, extension 145, or via email at [email protected] Sincerely,
RICONDO & ASSOCIATES, INC.
James E. Branda
Vice President
Attachment (1) Proposed Fee
cc: 24-98-1660-01-1110
cc: [email protected]
[email protected]
Jim Jarvis, Ricondo
Jake Strawn, Ricondo
O:\Bidding\FAT\02 - Rental Car Concession Program - March 24\FAT Rental Car Consulting Services_FINAL.docx Labor Rates $419.00 $352.00 $298.00 $257.00 $205.00 $162.00
MANAGING SENIOR TECH/ TOTAL TRAVEL TOTAL
OFFICER DIRECTOR CONSULTANT CONSULTANT CONSULTANT ADMIN HOURS LABOR EXPENSES COST
1. Strategy Development
Kickoff meeting preparation including development of PPT presentation; Benchmarking and best practices; Existing concession and lease agreement and other documents 12 0 4 0 0 8 24 7,516.00 7,516.00 Kickoff Meeting to determine rental car program strategic business, financial and policy objectives (in person or virtual). 10 0 4 0 0 0 14 5,382.00 1,200.00 6,582.00 Subtotal Task 1 22 0 8 0 0 8 38 12,898.00$ 1,200.00$ 14,098.00$
2. Rental Car Concession Program Business Planning
Advise on current best practices; revenue enhancement opportunities; 4 0 0 0 0 0 4 1,676.00$ 1,676.00$ Develop rental car concession program business plan; benchmarking of peer airports 16 0 0 0 4 20 7,352.00$ 7,352.00$ Develop RFP and concession agreement documents; coordinate with City's legal counsel 10 0 0 0 0 2 12 4,514.00$ 4,514.00$ Develop facility space allocation/re-allocation scenarios including for possible new entrant 6 0 16 16 0 0 38 11,394.00$ $11,394.00 Support Airport and prepare with staff with presentations and discussions of business plans to RAC industry during the RFP process 24 0 0 0 0 6 30 11,028.00$ $11,028.00 Attend rental car industry meetings, including pre-proposal meeting as requested (assumed 1 in person, the rest virtually) 20 0 0 0 20 8,380.00$ 1200.00 9,580.00$ Subtotal Task 2 80 0 16 16 0 12 124 $44,344.00 1,200.00$ $45,544.00
3. CFC Rate Change Analysis
Prepare CFC debt capacity and rate sizing model 2 0 0 8 0 0 10 2,894.00$ 2,894.00$ Support Airport thoughout CFC rate change process in accordance with CFC Statute 6 0 0 10 0 0 16 5,084.00$ 5,084.00$ Subtotal Task 3 8 0 0 18 0 0 26 7,978.00$ $7,978.00 Total Proposal Hours 110 0 24 34 0 20 188
Total Labor Costs & Expenses 46,090.00$ -$ 7,152.00$ 8,738.00$ -$ 3,240.00$ 65,220.00$ 2,400.00$ 67,620.00$ Prepared by: Ricondo & Associates, Inc. March 26, 2024.
HOURS FEE
FRESNO YOSEMITE INTERNATIONAL AIRPORT
RENTAL CAR CONCESSION PROGRAM SUPPORT SERVICES
PROPOSED BUDGET
Education
Bachelor of Arts – Political
Science, Monmouth College
Juris Doctorate – Washburn
University
Professional Affiliations
Airports Council International-
North America – Member
American Association of Airport
Executives – Corporate Member
Chicago Bar Association
Years of Experience
Ricondo: 17
Other Firms: 22
Office Location
Chicago, Illinois
James E. Branda
Vice President
Mr. Branda has nearly 40 years of airport rental car concession and facility development experience. He is an industry leader in developing and implementing rental car concession programs, as well as in business and financial planning for consolidated rental car facilities, havin g assisted with more than half of the consolidated rental car facilities currently in development or operation in the United States. Mr. Branda led Budget Rent A Car’s worldwide properties and facilities division for 14 years.
Since 1998, he has provided r ental car consulting services exclusively at airports, including those serving Boise, Chicago, Cincinnati, Columbus, Detroit, El Paso, Fort Lauderdale, the State of Hawaii, Los Angeles, Nashville, Northwest Arkansas, Oakland, Orlando, Philadelphia, Portland (Oregon), Raleigh-Durham, Sacramento, San Antonio, San Diego, San Jose, Seattle-Tacoma, Tampa and Washington, DC. Mr. Branda is also a licensed attorney.
He represents airport sponsors in various rental car concession matters, including strategic planning, the development and negotiation of rental car concession agreements and concession bid specifications, the development of facility leases, and consolidated rental car facility business, financial, and operations (such as common use transportation system) planning.
For the State of Hawaii Department of Transportation, Airports Division, Mr. Branda leads the Statewide Car Rental Facility Development Program Management Support Services effort to develop rental car facilities at all of the major airports in the State. T he initial phase of this project included developing a Statewide rental car facilities plan, a preliminary plan of finance and Customer Facility Charge (CFC) sizing analysis, and supporting the Airports Division in implementing a CFC consistent with the St ate’s CFC statute. The State successfully opened the $340 million Kahului (Maui) Airport Consolidated Rental Car facility in 2019. Currently, Mr. Branda also led the coordination of facility planning design efforts with the business and financial planning tasks for the team that developed the $390 million consolidated rental car facility at Daniel K. Inouye Honolulu International Airport which opened in December 2021.
RICONDO RENTAL CAR CONS ULTING PRACTICE
Ricondo stands apart from its peers in this field because of our combination of experience in airport rental car business and financial planning; rental car operations planning; and CONRAC planning, development, implementation, and commissioning.
The experience of our rental car practice team allows us to provide high-level expertise for every aspect of rental car concession p rogram strategic planning, development and imp lementation, regardless of its scope and complexity. Ricondo has been involved in numerous CONRAC planning projects, concession and lease negotiations, and facility financings, including for airports serving the State of Hawaii, as well as Chicago, Cincinnati, Columbus, Dallas, Detroit, Fort Lauderdale, Los Angeles, Nashville, Oakland, Orlando, Pittsburgh, San Antonio, San Diego, San Jose, Seattle-Tacoma, Tampa, and Washington, DC.
This experience has also provided Ricondo with an in-depth understanding of how to manage all components of the project to balance the goals of all stakeholders. While each rental car concession program and facility development project is unique, there are certain components that usually share a critical path. With our expertise in this area, we can assist our clients to develop integrated solutions and anticipate any challenges or issues, both in the near and long term. Our Rental Car Practice team members have developed a level of credibility with the rental car industry which gives Ricondo the ability to anticipate and identify the inevitable impediments that could delay the schedule, drive up project costs, and frustrate a successful outcome.
The services provided by Ricondo’s Rental Car Consulting practice include the following:
General
▪ CONRAC feasibility studies (physical, business,
operational)
▪ current market and industry conditions
assessments
▪ demand forecasts
▪ public policy, regulatory advocacy, and
legislative support
▪ CONRAC development
▪ multi-use facility development (public
parking/rental car/ground transportation)
▪ legal/litigation support
▪ project management, including airport and
industry liaison services
▪ coordination of facility and common
transportation systems commissioning and
start-up
Business Planning
▪ concessions program development
▪ concessions policy and objectives formulation
▪ request for proposals/request for
qualifications/request for bids, concession
agreements, and lease agreement development
▪ contract negotiation and implementation
Financial Planning and Financing
▪ special facility bond feasibility studies
▪ CFCs (alternative uses, authority to impose, and
implementation)
▪ financial analyses to support CFC rates and
revenues, as well as other potential revenue
sources
Facility Planning
▪ facility concept development and program
definition
▪ ground transportation and curbfront planning
and management
▪ advisory services for design and engineering
consultants
Operational Planning
▪ advisory services for airport rental car industry
best practices
▪ fuel and common busing consortia development
and implementation
▪ common busing capacity and route studies
Ricondo has provided rental car concession, facility planning, and financial and business advisory services at a broad spectrum of airports, as shown in the following Table.
TABLE 1: RENTAL CAR BUSINESS AND FINANCIAL PLANNING EXPERIENCE
PROJECT
DURATION AIRPORT
CFC SIZING/
IMPLEMEN-
TATION
BUSINESS
PLANNING
FINANCIAL
PLANNING
FACILITY
PROGRAMMING
PLANNING
2018–Present Aspen-Pitkin County Airport ◼ ◼ ◼
2019–Present Charlotte Douglas International Airport ◼ 2013–2018 Cincinnati/Northern Kentucky International Airport ◼ 2017–2021 Dallas Love Field ◼ ◼ ◼ ◼
2008–Present Daniel K. Inouye International Airport ◼ ◼ ◼ ◼ 2017–2023 Detroit Metropolitan Wayne County Airport ◼ ◼ ◼ 2017–2018 Dublin Airport ◼ ◼ ◼
2017–Present Dulles International Airport ◼
2008–Present Ellison Onizuka Kona International Airport ◼ ◼ ◼ ◼ 2017–2018 Fort Lauderdale–Hollywood International Airport ◼ ◼ ◼ ◼ 2017–2018 Greenville-Spartanburg International Airport ◼ ◼ 2008–Present Hilo International Airport ◼ ◼ ◼ ◼
2017–2023 Indianapolis International Airport ◼ ◼ ◼ ◼
2018 Jacksonville International Airport ◼ ◼
2017–2018 John Glenn Columbus International Airport ◼ ◼ ◼ ◼ 2008–Present Kahului Airport ◼ ◼ ◼ ◼
2018–Present Key West International Airport ◼ ◼ ◼ ◼
2008–Present Lihue Airport ◼ ◼ ◼ ◼
2018–Present Long Beach Airport ◼
2015–2018 Lubbock Preston Smith International Airport ◼ ◼ ◼ 2016–2017 Meadows Field Airport (Bakersfield California) ◼ ◼ ◼ ◼ 2015–2018 Midway International Airport ◼ ◼
2023-Present Nashville International Airport ▪ ▪
2017–Present Northwest Arkansas Regional Airport ◼
2016–Present Oakland International Airport ▪ ◼
2016–2020 Palm Springs International Airport ◼ ◼ ◼ ◼
2014–2018 Philadelphia International Airport ◼
2018–Present Pittsburgh International Airport ◼ ◼ ◼ ◼
2018 Portland International Airport ◼ ◼
2017–Present Reagan Washington National Airport ◼ ◼
2016–2018 Roberts Field Airport (Redmond Oregon) ◼ ◼ ◼ ◼ 2018 Sacramento International Airport ◼ ◼ ◼ ◼
2018–2019 Southwest Florida International Airport ◼ ◼ 2013–Present Tampa International Airport ◼ ◼ ◼ ◼
2018–2019 Tri-Cities Airport (Tennessee) ◼