Addendum No. 1 - Questions and Answers Request for Proposals Montrose Regional Airport On-Airport Rental Car Services May 29, 2015

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1 Addendum No. 1 - Questions and Answers Request for Proposals Montrose Regional Airport On-Airport Rental Car Services May 29, 2015 Below are clarifications and answers to written questions that were received by the deadline of 2 PM on May 22, Answers are in bold print. 1. Are any changes anticipated at the Airport in the next 5 years affecting car rentals? Enplanement and deplanement figures are expected to increase. 2. Do you anticipate any additional airlines providing service to the Airport? Or losing any airlines? Management continually strives to attract additional airline service. 3. Could the schedule allow for a pre-bid meeting? No pre-proposal conference will be scheduled. 4. Could a second round of questions and answers be included? The questions deadline was May 22, and no second round of questions will be added. 5. What is the latest date that an addendum could be issued? No addenda are anticipated after the release of this addendum, which will be available no later than May 29, 2015 at 2:00 PM. Proposals will be due on June 12, 2015 no later than 2:00 PM, our clock. 6. Could the deadline for submitting proposals after issuance of any addenda be extended? The deadline for submitting proposals will remain as stated in the RFP. 7. Could you send out a courtesy whenever an addendum is posted to the website? Anyone who has registered an address on the site will automatically receive notification of any addenda posted. Those who do not register (and therefore do not receive automatic notification) must check periodically for addenda. 8. Can the proposal deadline be extended? The deadline will remain June 12, 2015 at 2:00 PM. 9. One original and three copies of the proposal are required. Could we submit one original and a PDF on disk or other storage device? The requirement will remain as stated; one original and three copies are required. 10. General Requirements # 3 states that failing to acknowledge receipt of any addenda may result in rejection of the proposal. How are addenda to be acknowledged? An Acknowledgment form will accompany any addenda and must be completed and returned with the proposal. 11. Could the requirement to label our proposal package with the name of the proposing company be eliminated? No, the package exterior must bear the name of the proposing firm.

2 12. Will you open bids/proposals publicly and read respondent name and Minimum Annual Guarantee (MAG) aloud? This solicitation is a Request for Proposals (RFP), which differs from an Invitation to Bid (ITB). Responses to ITBs are read aloud; responses to RFPs are not, per Montrose County Procurement Policy. 13. Page 2 states that the proposals will be recommended by an evaluation committee based on (i) the revenue the County gets from the various fees and rents and (ii) adherence with the RFP requirements, which are both weighted equally. How is adherence quantified for weighting purposes? The evaluation committee will make a determination of how well a proposal meets requirements as well as the revenue proposed. 14. The RFP states that the Board County of Commissioners may award contracts based on criteria outlined in the RFP. Please clarify how the proposals will be awarded. For award consideration, any proposal must be meet all RFP requirements. All evaluation criteria will be considered equally in making award recommendations to the Board. The Board of County Commissioners will make the final decision. 15. Please provide for immediate notification of award by , in addition to mail. Those firms being recommended to the Board for award are normally given a courtesy notification in advance of the Board of County Commissioners meeting. 16. Page 3 states that CFCs are used for airport improvements and/or expansion as funding allows. Please add language to the RFP that is similar to the Sample Agreement language, which restricts the use of these funds to rental car related projects. The use of CFCs is at the County s sole discretion. The sample agreement, Article 3, states that Montrose County reserves the right to pursue the planning, financing and construction of new car rental facilities of any nature as Montrose County may determine to accommodate Montrose County s business needs, and Montrose County may take any action that it deems desirable in connection therewith, including leasing new or other available facilities to rental car companies or to other non rental car concessionaires. 17. Please provide an accounting of CFC funds collected to date, along with qualifying projects that have used CFC funds, and the amount of CFC funds used in those projects. The County collects an average of $150,000 per year in Customer Facility Charges. The terminal expansion, two (2) parking lot expansions, parking lot enhancement projects (crack sealing, asphalt repair, painting, entrance relocation, and fencing) benefit rental car firms directly. Other projects impact rental car companies indirectly by improving airport infrastructure and facilities, allowing for expanded airline participation, increased passenger traffic, and in turn, greater demand for rental cars. 18. Since counter/office spaces are of equal size, could existing locations be grandfathered for easier transition and cost minimization? All respondents must specify a preference for location in their proposal. Spaces will be awarded according to recommendation by committee and decision of the BOCC. 19. Page 3 also states that there is a company operating from an off airport location, in addition to the 6 brands in the terminal. Please provide the names of the brands that are operating from on airport agreements and the brand that is using an off airport agreement. Additionally, please provide the annual (or monthly) breakdown of rental

3 car revenues by brand for 2012, 2013, 2014, and Brands represented on-airport include Alamo, Avis, Budget, Enterprise, Hertz and National. The off-airport operator is Enterprise. Total rental car revenues are provided in the RFP; for purposes of this RFP, individual revenues will not be disclosed. 20. Are off-airport brands required to be under an off-airport permit or agreement? What are the terms of such agreement? What is the fee required for an off-airport rental company? Please provide a copy of any concession/license agreement County has with an off-airport operator. This information is not material for responding to the RFP for on-airport rental car services, but may be obtained through a Colorado Open Records Act request. 21. Please clarify how proposers will demonstrate 100% ownership or authorization to operate the brands proposed. Is a letter or affidavit from a company s corporate Secretary or other corporate officer affirming proposer s right to operate the brands proposed acceptable? A licensing agreement, letter or affidavit from a company s corporate Secretary or corporate officer or other similar documentation are acceptable as evidence of ownership. 22. Do qualifications numbers 2 and 3 refer to nationwide experience? Experience and revenues do not need to be from Montrose. 23. One of the criteria to qualify for an award is no outstanding judgments or bankruptcies within the past five years. Could this be amended to refer only to default on any airport concession agreements? All criteria will remain as written in the RFP. 24. Please clarify that we are not proposing a dollar amount for the counter/office space, ready/return parking and overflow parking. Confirmed. 25. Why were some of the Ready/Return parking spaces moved from what is currently in place? To facilitate future road access, some of the existing Ready/Return area required relocation. Additionally, the number of parking spaces was increased for all Concessionaires, from 17 per Concessionaire to 20 or 21, in order to meet increased vehicle demand. 26. We are required to bid each year of the term, with a minimum MAG of $40,000 per year. Can that be changed to an annual commitment with end of the year calculation to ensure that the companies pay the greater of the annual MAG or annual 10% of gross revenues? The Minimum Annual Guarantee (MAG) requirement will remain as stated in the RFP. 27. Are Concessionaires only responsible for snow removal in the overflow spaces that are assigned to each individual Concessionaire? The County will not remove snow in the overflow lot. It is the responsibility of Concessionaires to remove snow within this lot. 28. Can the performance bond be in the amount of 1/3 of the annual MAG? The performance bond must be in the amount of the highest MAG. 29. Instead of 14 calendar days to return the executed agreement, can this be changed to 30 days? The length of time to return the executed contracts will be extended to 30 calendar days. 30. Regarding submitting a description of years of experience, gross revenue for the last three years, a list of other airports from which we operate, references, and a sample format of gross receipts report, can this be waived for incumbent bidders and their associated brands?. Incumbents must follow the same rules as all other respondents;

4 no special considerations are allowed, per state statute. Please note that Form B References asks for 3 individuals, firms, or airports. 31. On Form A, please confirm that the requirements are for the combined brands that are proposed in the submittal (i.e. that we are requested to list a manager for each brand or itemize which SUVs will be used for each individual brand, since it is a shared fleet). On Form A, please itemize for each brand when requested. Include an explanation, if applicable, to aid in evaluating the proposal. 32. Please remove the requirement to list our preferences as part of the proposal. Preferences must be indicated in the proposal submission. 33. Please confirm that this Sample Agreement will be modified only by addendum and all changes will be final in advance of the bid deadline. Attachment 5 is a sample agreement that may be modified as necessary, upon mutual consent of the parties. 34. Could the daily collection of Customer Facility Charge be changed to $3.00/rental day at the Airport of any rental car for a maximum amount of 5 rental days? The statement will remain as is; no change will be made. 35. The RFP and contract differ as to the time the term begins. The contract will be changed to read that the term begins at 12:01 AM on September 1, Where is the grant for the spaces that conveys the exclusive right to use space under this agreement? Please see title, recitals and agreement articles. 37. Article 3, Contract. Customer Facility Charge/Right to Construct New Facilities - the last sentence that references the County s ability to lease property to rental car companies (and specifically to rent space to non rental car concessionaires) belongs in a section outside of the CFC paragraph. The paragraph will remain unchanged. 38. Please change notice regarding inspection of records to allow for at least 7 days advance written notice prior to inspection. The contract will remain as written in the contract. 39. Contract Article 4.D. Please replace the references to rent and rental in sections 4 D, E, and F with the word fee. The agreement will remain as written. 40. Contract Article 4.F. Could percentage fee payments be changed from the 15 th of the month to the 20 th? The first sentence in Section 4F will be changed to read By the 20 th day of every month Concessionaire shall pay the airport the difference between its guaranteed minimum concession rental set forth on its bid proposal for the concession period then ending and ten percent (10%) of its gross revenues/gross receipts for said concession period. In addition, the accompanying report will also be due on the 20 th of the month. 41. Contract - Please add or property after automobiles in H.4a.2. The paragraph will not be changed but will remain as in the agreement. 42. Please change 70% for an abatement trigger to 85%. The figure will remain at 70%. 43. Contract Article 6, paragraph C. Please provide at least 7 days prior written notice for audits, add language subjecting the audit language in subsection C to the limitation imposed under subsection D, and that the audit right only extends during the term of the agreement and the three years that immediately following the expiration or termination of the agreement. Paragraph C will remain as written; no change. 44. Contract Article 7. Please delete the last sentence of this section as Section 22 sets forth language for a prevailing party. Article 7 will remain as written; no change.

5 45. Contract Article 9. Please delete references to attorneys and insurers and revise wording regarding airport conduct. Article 9 will remain as written; no change. 46. Clarification: Article 10 Insurance. o Paragraph 1, sentence #2 should read The certificate shall be provided to Lessor. (not policy, as written). The final sentence of the paragraph requires a 30 day notice of cancellation, termination, or material change. A 10 day notice is acceptable. o Self-insurance is not permitted. o Page 6 last sentence With respect to an act, omission, negligence, or other fault of Lessee, every policy required above shall be primary insurance and insurance carried by the Airport, Lessor or its officials and employees, shall be excess and not contributory insurance to that provided by Lessee. This sentence shall be corrected to read With respect to an act, omission, negligence, or other fault of Lessee, every policy required above shall be primary insurance. o The last sentence in the second to last paragraph ( Lessor reserves the right to request and receive a certified copy of any policy and any endorsement thereto ) shall remain as written; no change. 47. Clarification regarding purchase of insurance by the airport in the event of Lessee s failure to procure and/or maintain coverage, as well as other violations - please note that notice and opportunity to cure will be added as follows: o Lessor, at its option, may declare this Agreement terminated If Lessee is in violation of any provision of this Agreement other than the payment of rents or expenses which violation is not cured within a thirty (30) day period. No termination declared by Lessor under this Agreement shall be effective unless and until at least thirty (30) days have elapsed after written notice to Lessee specifying the date upon which such termination shall take effect and the cause for which it is being terminated. Lessee may cure the cause of such termination within said thirty (30) day period, or such longer as the parties may agree thereto, in the event that the cause cannot be cured within thirty (30) days. In the event Lessee cures within the notice and cure period, any notice of termination issued prior to such cure shall be rendered null and void and without further force or effect. 48. Where is the airport s obligation to keep the facility and the building systems in good condition and repair? See Contract Article 14 paragraph A. 49. Does the reference to displacement in article 14 only refer to our loss of a subsequent bid? No, it also includes this (current) agreement. 50. Contract Article 15. Delete section c as books and records are addressed in an earlier section. Paragraph C will remain in Article Article 17 suggested verbiage changes. Article 17 will remain as written. 52. Article 18. Add not to be unreasonably withheld, conditioned or delayed at the end of the first sentence. Article 18 will remain as written; no change. 53. Article 23. Delete rental, fee or charge on the first line and replace it with term. Article 23 will remain as written; no change. 54. Article 24. The performance bond is to ensure our faithful performance of the terms and obligations under this agreement. Please reference that in this provision. Also provide for our return of our bond upon the expiration or termination of the term

6 where we have complied with our obligations. Article 24 will remain as written; no change. 55. Article 26. We should have the right to quiet enjoyment as long as we are not in default beyond any applicable notice and cure period. Please revise. Article 26 will remain as written; no change. 56. Article 27. If all of the concessionaires operate in the same area, could we be responsible for monitoring access and egress only to the areas we expressly lease under the agreement? Article 27 will remain as written; no change. 57. Page 4, Multiple Brands Please replace the word firm with brand in lines 3 and 5. Yes, please replace the word firm with brand in lines 3 and Page 4, Multiple Brands Please confirm that one entity who owns or operates more than one brand, may submit more than one proposal so long as each proposal is for a separate and distinct brand or brands, or any combination thereof, owned or operated by proposer. For example, Enterprise Leasing Company of Denver, LLC could submit one proposal for its Alamo brand, another separate proposal for its Enterprise brand, and a separate proposal for its National brand, if we so desired. Many airports have allowed one entity to operate multiple concession agreements. Only four (4) concessions are available. In order to provide for maximum competition, multiple brands must respond with one proposal and operate from one counter/office unit, one Ready/Return Lot, and one Overflow section. 59. Page 4, Multiple Brands (see also Page 7 and Form A) Please waive the requirement to provide evidence of ownership of brands for incumbents. The County already has this information from us. Incumbents must follow the same requirements as all other respondents. 60. Page 4, Multiple Brands (see also Page 7) Please exclude incumbent operators from the requirement to report separate financial information for each brand under a multiple branded proposal. Incumbent operators must provide this information; exclusion from this requirement is not permitted. 61. Form A, Page 1 Please waive the requirement for a list of vehicles and approximate number of vehicles for incumbent operators. Incumbents must follow the same requirements as all other respondents. 62. Form A, Page 2 Please waive the requirement for number of personnel and positions intended for incumbent operators. Incumbents must follow the same requirements as all other respondents. 63. Pages 1 & 2 If these requirements are not waived, please confirm that vehicle and personnel information requested on this form may be provided via attachment. An attachment is acceptable On Form D, please confirm that collusion is the illegal cooperation and/or intent to cheat or deceive between unaffiliated entities and not the coordination between brands controlled and operated by the same entity. Collusion is the illegal cooperation and/or intent to cheat, deceive, or defraud. 65. Sample Agreement, Article 1 Could the term be extended to five (5) years, with options to extend, or two additional one-year options added to the current proposed 3 year term. The term will remain at 3 years.

7 66. Contract Article 3 Please insert in the fourth line as follows: to complete a rental car related project Article 3 will remain as written; no change. 67. Contract Article 3 The existing agreement includes a Subsection D indicating that CFCs are excluded from gross revenue but the Sample Agreement provided with this RFP does not. Please include this language in the new agreement. The agreement will be corrected to exclude CFCs from gross revenue. 68. Contract Article 4.H. Please include language in the 2nd line as follows:... actually charged to the customer by Rental Car Concessionaire, net of any discounts, coupons or credits at the time the rental contract is closed,... No change. 69. Contract Article 4.H. Is revenue generated from Fixed Base Operators to be included in Gross Revenues? Yes, revenue generated from FBOs is included as revenue. 70. Contract Article 4.H. - Please provide that the concession recovery fee will be capped at 11.11%. The Customer Facility Charge is $3.00; no fees are capped. 71. Contract Article 6.B. Please insert relevant to its Concession Agreement with Montrose County in the first line in this sentence, so that it reads: All books and records of Lessee relevant to its Concession Agreement with Montrose County must be made available to Lessor in Montrose County. No change. 72. Contract Article 9 Please provide for mutual indemnification of Lessee that mirrors this language. No, mutual indemnification is not permitted. 73. Contract Article 15.C. Please remove the words together with all tax returns of Lessee from the first sentence. We suggest language is returned to the same as is in the current agreement, as follows: Maintain and provide, as requested by Lessor, accurate records of its gross sales and business transactions relative to Lessee s gross sales. The wording will be changed as requested. 74. Contract Article 16 Please delete delivery of notices by hand. No change. 75. Contract Article 24 Please confirm that existing Lessees may simply amend their existing bond rather than issue a new bond. A new bond will be required. 76. (Page 6) please confirm that proposers are to maintain surety equal to the highest MAG specified in its individual proposal. Confirmed. 77. (Page 19) Please clarify what you mean by sample format of monthly gross revenues/gross receipts report. Can this requirement be waived for incumbent companies? No, requirements apply to all respondents. Sample report needs to show how the report will look, but does not need to be an actual report. Please see the following page for the Acknowledgment form, which must be completed and returned with your proposal.

8 Acknowledgment of Addendum No. 1 - Questions and Answers Request for Proposals Montrose Regional Airport On-Airport Rental Car Services May 29, 2015 I have received, read and understand Addendum No. 1 dated May 29, Respondent Company Name Authorized Representative Signature Print Name and Title THIS FORM MUST BE COMPLETED AND RETURNED WITH YOUR PROPOSAL