PUBLIC NOTICES
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Port of San Diego
PUBLISHED: Wednesday May 15, 2013

SAN DIEGO UNIFIED PORT DISTRICT  
 
ORDINANCE 2717
 
ORDINANCE GRANTING LEASE TO HERTZ CORPORATION DBA HERTZ RENT A CAR LOCATED AT 3202 NORTH HARBOR DRIVE, SAN DIEGO, FOR FIVE YEARS AND ONE FIVE YEAR OPTION TO EXTEND,
EXPIRING MAY 31, 2023

 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
WHEREAS, the Hertz Corporation dba Hertz Rent A Car (Hertz), Avis Rent A Car System, LLC dba Avis Rent Car Rental (Avis), and Enterprise Rent A Car Company of Los Angeles, LLC dba National Car Rental (National)operate car rental facilities on Harbor Island in close proximity to San Diego International Airport (SDIA); and
WHEREAS, Hertz, Avis, and National occupy 22 acres of tideland property on Harbor Island under three separate leases that currently expire on June 30, 2015, on file in the Office of the District Clerk as Document Nos. 49515, 49517 and 49516; and
WHEREAS, due to uncertainty surrounding the timing and space requirements of SDIA's proposed Consolidated Rental Car Facility (CONRAC), the three rental car companies have requested the District renegotiate their leases early to accommodate their long-term plans; and
WHEREAS, the proposed leases with each of the three rental car companies reflect total annual revenue to the District of approximately $2,813,054, increasing revenue to the District by $126,278 per year over the current annual lease revenue of $2,686,776; and
WHEREAS, lease rents will increase with annual Consumer Price Index (CPI)
adjustments between 2-4%; and
WHEREAS, Hertz has asked for a 5-year term lease with one 5-year option to extend; and
WHEREAS, Hertz has been a tenant in good standing since 1995; and
WHEREAS, the proposed lease includes a reciprocal termination clause that provides flexibility to the District and Hertz, either to cancel the lease or to cancel a portion of the leasehold after the initial term of the lease, with a prior 18 month written notice.  This will afford the District flexibility to consider and plan for future uses of the property, while maintaining and increasing a significant revenue stream; and
WHEREAS, through negotiations, staff proposed and Hertz agreed to the following rent:
 
Tenant Current Annual Rent x CPI = Proposed Rent
Hertz $1,114,512 4.7% $1,166,894
 
WHEREAS, staff recommends the following new terms for Hertz:
 
·   New lease with updated lease language;
·   New 5-year term with a 5-year option for Hertz (estimated term of 2013 - 2023);
·   Mutual termination rights after the initial term, upon 18-month written notice;
·   Increased rent (see chart above); and
·  Annual CPI increases capped between 2-4% annually.
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.  That the lease for five (5) years and one (1) additional five (5) year lease term option to extend to Hertz Corporation dba Hertz Rent A Car, leasing certain premises located at 3202 North Harbor Drive, San Diego is hereby approved and granted.
Section 2.   The Executive Director or his designated representative is hereby directed to execute said lease with Hertz Corporation dba Hertz Rent A Car for a five (5) year term with one (1) additional five (5) year option to extend, expiring May 31, 2023.
Section 3.   This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110711

SAN DIEGO UNIFIED PORT DISTRICT  
 
ORDINANCE 2718
 
ORDINANCE GRANTING LEASE TO AVIS RENT A CAR SYSTEM, LLC DBA AVIS RENT A CAR, LOCATED AT 3180 NORTH HARBOR DRIVE, SAN DIEGO, FOR FOUR YEARS AND ONE FIVE YEAR OPTION TO EXTEND, EXPIRING MAY 31, 2022
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
WHEREAS, the Hertz Corporation dba Hertz Rent A Car (Hertz), Avis Rent A Car System, LLC dba Avis Rent Car Rental (Avis), and Enterprise Rent A Car Company of Los Angeles, LLC dba National Car Rental (National)operate car rental facilities on Harbor Island in close proximity to San Diego International Airport (SDIA); and
WHEREAS, Hertz, Avis, and National occupy 22 acres of tideland property on Harbor Island under three separate leases that currently expire on June 30, 2015, on file in the Office of the District Clerk as Document Nos. 49515, 49517 and 49516; and
WHEREAS, due to uncertainty surrounding the timing and space requirements of SDIA's proposed Consolidated Rental Car Facility (CONRAC), the three rental car companies have requested the District renegotiate their leases early to accommodate their long-term plans; and
WHEREAS, the proposed leases with each of the three rental car companies reflect total annual revenue to the District of approximately $2,813,054, increasing revenue to the District by $126,278 per year over the current annual lease revenue of $2,686,776; and
WHEREAS, lease rents will increase with annual Consumer Price Index (CPI) adjustments between 2-4%; and
WHEREAS, Avis has asked for a 4-year term lease with one 5-year option to extend; and
WHEREAS, Avis has been a tenant in good standing since 1995; and
WHEREAS, the proposed lease includes a reciprocal termination clause that provides flexibility to the District and Avis, either to cancel the lease or to cancel a portion of the leasehold after the initial term of the lease, with a prior 18 month written notice.  This will afford the District flexibility to consider and plan for future uses of the property, while maintaining and increasing a significant revenue stream; and
WHEREAS, through negotiations, staff proposed and Avis agreed to the following rent:
 
Tenant Current Annual Rent x CPI = Proposed Rent
Avis $700,860 4.7% $733,800
 
WHEREAS, staff recommends the following new terms for Avis:
 
·   New lease with updated lease language;
·   New 4-year term with a 5-year option for Hertz (estimated term of 2013 - 2022);
·   Mutual termination rights after the initial term, upon 18-month written notice;
·   Increased rent (see chart above); and
·   Annual CPI increases capped between 2-4% annually.
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.  That the lease for four (4) years and one (1) additional five (5) year lease term option to extend to Avis Rent A Car System, LLC, leasing certain premises located at 3180 North Harbor Drive, San Diego is hereby approved and granted.
Section 2.   The Executive Director or his designated representative is hereby directed to execute said lease with Avis Rent A Car System, LLC for a four (4) year term with one (1) additional five (5) year option to extend, expiring May 31, 2022.
Section 3.   This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110714

SAN DIEGO UNIFIED PORT DISTRICT  
 
ORDINANCE 2719
 
ORDINANCE GRANTING LEASE TO ENTERPRISE RENT A CAR COMPANY OF LOS ANGELES, LLC DBA NATIONAL RENT A CAR, LOCATED AT 3280 NORTH HARBOR DRIVE, SAN DIEGO, FOR FOUR YEARS AND ONE FIVE YEAR OPTION TO EXTEND, EXPIRING MAY 31, 2022
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
WHEREAS, Section 87(b) of the Port Act grants authority to the District to lease the tidelands or submerged lands, or parts thereof, for limited periods, not exceeding 66 years, for purposes consistent with the trusts upon which those lands are held, by the State of California; and
WHEREAS, the Hertz Corporation dba Hertz Rent A Car (Hertz), Avis Rent A Car System, LLC dba Avis Rent Car Rental (Avis), and Enterprise Rent A Car Company of Los Angeles, LLC dba National Car Rental (National)operate car rental facilities on Harbor Island in close proximity to San Diego International Airport (SDIA); and
WHEREAS, Hertz, Avis, and National occupy 22 acres of tideland property on Harbor Island under three separate leases that currently expire on June 30, 2015, on file in the Office of the District Clerk as Document Nos. 49515, 49517 and 49516; and
WHEREAS, due to uncertainty surrounding the timing and space requirements of SDIA's proposed Consolidated Rental Car Facility (CONRAC), the three rental car companies have requested the District renegotiate their leases early to accommodate their long-term plans; and
WHEREAS, the proposed leases with each of the three rental car companies reflect total annual revenue to the District of approximately $2,813,054, increasing revenue to the District by $126,278 per year over the current annual lease revenue of $2,686,776; and
WHEREAS, lease rents will increase with annual Consumer Price Index (CPI) adjustments between 2-4%; and
WHEREAS, National has asked for a 4-year term lease with one 5-year option to extend; and
    WHEREAS, National has been a tenant in good standing since 1995; and
WHEREAS, the proposed lease includes a reciprocal termination clause that provides flexibility to the District and National, either to cancel the lease or to cancel a portion of the leasehold after the initial term of the lease, with a prior 18 month written notice.  This will afford the District flexibility to consider and plan for future uses of the property, while maintaining and increasing a significant revenue stream; and
WHEREAS, through negotiations, staff proposed and National agreed to the following rent:
 
Tenant Current Annual Rent x CPI = Proposed Rent
National $871,404 4.7% $912,360
 
WHEREAS, staff recommends the following new terms for National: 
 
· New lease with updated lease language;
·   New 4-year term with a 5-year option for Hertz (estimated term of 2013 - 2022);
·   Mutual termination rights after the initial term, upon 18-month written notice;
·   Increased rent (see chart above); and
·  Annual CPI increases capped between 2-4% annually.
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
           
Section 1.  That the lease for four (4) years and one (1) additional five (5) year lease term option to extend to Enterprise Rent A Car Company of Los Angeles, LLC dba National Car Rental, leasing certain premises located at 3280 North Harbor Drive, San Diego is hereby approved and granted.
Section 2.   The Executive Director or his designated representative is hereby directed to execute said lease with Enterprise Rent A Car Company of Los Angeles, LLC dba National Car Rental, for a four (4) year term with one (1) additional five (5) year option to extend, expiring May 31, 2022.
Section 3.    This ordinance shall take effect on the 31st day from its passage by the Board of Port Commissioners.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.                                            
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110716

SAN DIEGO UNIFIED PORT DISTRICT
 
ORDINANCE 2720
 
SEC. 2.00 - ESTABLISHMENT OF COST RECOVERY USER FEE SCHEDULE FOR DISTRICT SERVICES
 
The Board of Port Commissioners shall adopt and may amend from time to time a Cost Recovery User Fee Schedule of the fees to be paid as provided therein for services and administrative acts of the District which fees shall not exceed the costs incurred and which shall apply to requests or applications in process on or after its effective date.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110718

SAN DIEGO UNIFIED PORT DISTRICT  
 
ORDINANCE 2721
 
ORDINANCE AMENDING PARKING RATES AT THE CONVENTION CENTER PUBLIC PARKING FACILITY
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
WHEREAS, Section 21 of the Port Act authorizes the Board of Port Commissioners (BPC) to pass all necessary ordinances and resolutions for the regulation of the District; and
    WHEREAS, Section 36 of the Port Act requires the BPC by ordinance to set parking rates for District owned public facilities; and
WHEREAS, the District and the City of San Diego (City) are parties to a management agreement pertaining to operation, management, maintenance, and promotion of the San Diego Convention Center Public Parking Facility (Parking Facility); and
WHEREAS, the City designated the San Diego Convention Center Corporation as its operator, which has the right to handle the City's obligations set forth in the management agreement; and
WHEREAS, under the terms of the management agreement, the District retains the operation and maintenance responsibilities for the approximately 1,850 parking spaces in the Parking Facility, including the collection of parking revenues; and
WHEREAS, the District and Ace Parking Management, Inc. (Ace) are parties to a separate operating agreement for the management and maintenance of the Parking Facility in which Ace is reimbursed for its operating expenses at a rate of 25.99% of total gross parking revenues up to $3.6 million, and 18% of revenues over $3.6 million; and
WHEREAS, the District's management agreement with the City for the operation and management of the San Diego Convention Center provides that the District establish parking rates based on a survey of comparable Centre City parking rates; and
WHEREAS, the current $10.00 daily parking rate at the Parking Facility has been in effect since May 8, 2009 pursuant to Ordinance No. 2558; and
WHEREAS, after review of the surveys, staff has determined that existing parking rates are below market and that increasing the rates would be appropriate at this time; and
WHEREAS, staff recommends amending the parking rates as follows:
 
Parking Category Proposed Rates
General Public and Conventioneer Daily $15.00 per 24-hour period or
Rate any part thereof
Special Event Rate
$15.00 to $20.00 rate range
Non-Convention Center

Employee Transient Rate
San Diego Convention Center and San Diego SAME
Marriott Hotel and Marina Employees Only

Monthly Rate
San Diego Convention Center Employees Only SAME

 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
 
Section 1.   That the rates for the Parking Garage at the San Diego Convention Center shall be amended as follows:
 
· $15.00 per 24-hour period or any part thereof for the General Public and
Conventioneer Daily Rate
·  $15.00 to $20.00 rate range for Non-Convention Center Special Events
·  $4.00 per 24-hour period or any part thereof for San Diego Convention Center
and San Diego Marriott Hotel and Marina Employees only
·  $50.00 per month for San Diego Convention Center Employees only
 
   Section 2.   That the Executive Director may use the rates established pursuant to this ordinance for a new or extended Parking Garage Operating Contract for said Parking Garage.
Section 3.   This ordinance and the parking rates herein shall take effect on the 31st day from its passage by the Board of Port Commissioners or June 7, 2013, whichever date is later, and said rates shall be posted.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Smith, Valderrama
NAYS: Nelson.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110719

SAN DIEGO UNIFIED PORT DISTRICT  
 
ORDINANCE 2722
 
AN ORDINANCE AMENDING PARKING RATES AT THE CONVENTION CENTER HOTEL (HILTON BAYFRONT) PUBLIC PARKING FACILITY
 
 
WHEREAS, the San Diego Unified Port District (District) is a public corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix I (Port Act); and
WHEREAS, Section 21 of the Port Act authorizes the Board of Port Commissioners (BPC) to pass all necessary ordinances and resolutions for the regulation of the District; and
WHEREAS, Section 36 of the Port Act requires the BPC by ordinance to set parking rates for District owned public facilities; and
WHEREAS, the Convention Center Hotel (Hilton Bayfront) Public Parking Facility (Hotel Parking Facility) is currently managed and maintained by Ace Parking Management, Inc. (Ace) through an operating agreement with the District; and
WHEREAS, there are 1,894 spaces of which 1,000 spaces are for public parking and 894 spaces are for Hilton Bayfront's use for hotel patrons wherein Hilton Bayfront sets its own rates and pays the District percentage rent for that parking revenue pursuant to its lease terms; and
WHEREAS, the District performs a survey of parking rates to determine if
changes are needed to bring District parking rates in line with the market.  Rates at the Hotel Parking Facility have not been adjusted since the rates were established on June 8, 2004 by Ordinance No. 2297; and
WHEREAS, the current daily parking rates for the Hotel Parking Facility are a
range of $8.00 to $14.00, a range of $30.00 to $110.00 for monthly, and the special event rate of $10.00; and
WHEREAS, staff, in consultation with Ace and ABM Parking Services, the District's operator of the Lane Field parking lot, conducted rate surveys of comparable parking facilities, Embarcadero parking facilities, and downtown surface and structured parking facilities to assess current market rates; and
WHEREAS, after a review of the surveys, staff determined that existing parking rates are below market and that increases to the rates would be appropriate at this time; and
WHEREAS, staff recommends the parking rates for the Hotel Parking Facility be amended as follows:
 
Parking Category Proposed Rates
Posted Daily Maximum Rate $15.00
Padres/Event Parking (Non-Convention) $20.00 - $25.00
Monthly Rate $180.00
Port Tenant Monthly Parking Eliminate
Port Tenant Employee Daily Maximum Eliminate
Gaslamp/Padres Employee Parking Eliminate
Early-Bird Daily Special Eliminate
Convention Center Event Parking Eliminate
Incremental Transient Rate Eliminate
 
NOW, THEREFORE, the Board of Port Commissioners of the San Diego Unified Port District does ordain as follows:
 
Section 1.  That the rates for the Convention Center Hotel (Hilton Bayfront) Public Parking Facility, located at the southwest corner of Eight Avenue and Harbor Drive in the City of San Diego, shall be amended as follows: 
 
· $15.00 for the Posted Daily Maximum Rate
·   $20.00 - $25.00 for Padres/Event Parking (Non-Convention)
·   $180.00 for Monthly Parking
·   Eliminate Port Tenant monthly parking
·   Eliminate Port Tenant Employee Daily Maximum Parking
·   Eliminate Gaslamp/Padres Employee Parking
·   Eliminate the Early-Bird Daily Special
·   Eliminate Convention Center Event Parking
·   Eliminate the Incremental Transient Rate
 
Section 2.  This ordinance and the parking rates herein shall take effect on the 31st day from its passage by the Board of Port Commissioners or June 7, 2013, whichever date is later, and said rates shall be posted.
 
AYES: Castellanos, Malcolm, Merrifield, Moore, Nelson, Smith, Valderrama
NAYS: None.
EXCUSED: None.
ABSENT: None.
ABSTAIN: None.
SIGNED BY: Ann Y. Moore, Chair
ATTESTED BY: Timothy A. Deuel, District Clerk
Pub. May 15-00110722                    


Port of San Diego
PUBLISHED: Wednesday May 15, 2013


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