TITLE
Recommendation to authorize City Manager to execute a 36-month lease extension with Williams Scotsman, Inc., for 26 temporary modular building units, in an amount of $222,000 per year, and not to exceed
$666,000 for three years. (District 5)
DISCUSSION
On January 29, 2002, the City Council authorized the City Manager to execute a 36-month lease of temporary modular building units for the north boarding lounge facility and the car rental office at the Long Beach Airport. 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 in April 2002. The car rental companies were relocated to a temporary office 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 Airways for the south modular units. Due to limited cash flow and timing considerations, JetBlue Airways shouldered the total cost of procurement and installation of modular trailers, furnishings, and the improvements to the existing security screening area as required by the Transportation Security Administration (TSA). To reimburse JetBlue, the City will be crediting JetBlue a portion of their monthly use fee for a period of three years, which commenced March 1, 2004. Also, the City took over the lease payments of the south modular units starting June 2003.
The existing temporary facilities include 12 modular units for the north boarding lounge, 10 modular units for the south boarding lounge and 4 modular units for the car rental office. The temporary boarding lounges consist of passenger security screening areas, passenger waiting areas and restroom facilities.
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 Be...
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