TITLE
Recommendation to authorize City Manager to execute all documents necessary to amend Lease No. 29211 with Williams Scotsman, Inc., for the Long Beach Airport’s temporary building units and to extend the lease term for an additional 24-month period, in an amount not to exceed $181,000, with a month-to-month holdover option. (District 5)
DISCUSSION
On January 29, 2002, the City Council authorized the City Manager to execute a 36-month lease with Williams Scotsman, Inc. (Williams Scotsman), of temporary modular building units for the North Boarding Lounge and the Rental Car Building. The installation of the temporary modular building units was necessary to accommodate the substantial increase in passengers due to the increase in flights with JetBlue Airways (JetBlue) in April 2002. Rental car companies were relocated to a modular building to provide more floor space in the Airport Terminal building.
On August 27, 2002, the City of Long Beach approved a Lease/Leaseback Agreement with JetBlue for a temporary South Boarding Lounge. Due to limited cash flow and timing considerations, JetBlue shouldered the total cost of procuring and installing modular trailers, furnishings, and the improvements to the existing security screening area as required by the Transportation Security Administration (TSA). The City reimbursed JetBlue for the cost of these latter improvements via credits to the airline's monthly use fees.
On February 1, 2005, the City Council authorized a 36-month extension of the lease for the three temporary facilities. The City Council authorized additional 24-month extensions of the lease of three facilities on January 22, 2008 and February 16, 2010, and the remaining two facilities on May 1, 2012.
The modular units were intended to provide reasonable accommodations for near-term passenger activity, pending the construction of permanent terminal improvements consistent with the Long Beach Airport Noise Compatibility Ordinance.
Terminal...
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