Council took up an airport staff request to approve a nonexclusive operating and lease agreement (No. 25L418) to allow a new rental‑car operator (Sixt) to operate at Palm Springs International Airport beginning Nov. 1, 2025 through June 30, 2026, with optional extensions. The item prompted public comment from incumbent operators and a narrow council decision to proceed.

What operators said: Representatives of Enterprise Mobility and Hertz told council that adding an operator during the current term conflicts with the terms of the 2011 concession procurement, which incumbents said capped the number of operators and shaped their commercial expectations. Scott Bowman (Enterprise) asked the council to “deny the airport's request or, at a minimum, postpone the vote,” citing fairness and integrity of the procurement process. Morgan Williams (Hertz) pointed to an unambiguous contract clause (Section 4.03) that, in their reading, limits new contracting when five concessionaires were selected under that process.

Staff and legal response: Airport Director Harry Barrett said staff interpreted the current master agreement as counting rental‑car brands (three companies operating multiple brands) rather than counting individual historical concession slots, and that the airport had identified unused campus space to accommodate a new operator without affecting existing terminal capacity. City Attorney Jeff Ballinger told council the city is not legally obliged to notify incumbents that merged entities be counted as one and that staff will clarify contract language in future agreements.

Council action and vote: Following public comment and extensive council questions about notice, capacity, and how merged brands are treated, the council voted 3–2 to move the item forward (Gardner, Mayor Pro Tem and Reddy in favor; Bernstein and Mayor DeHart opposed). Several council members urged further clarification on contract language governing future bids and suggested staff incorporate clearer merger/brand language going forward.

Implications: The airport said the space identified for the new operator is largely under‑utilized and would be converted to revenue‑producing uses; staff noted the airport continues to lease an off‑site “Accelerator Campus” area for operational space. Incumbent operators stressed fairness and requested an opportunity to negotiate or be offered additional shared space ahead of direct negotiations with a new operator.

Provenance: Topic introduced SEG 979; deliberations and motion on SEG 1418–1443.