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Agenda Item
ASR
Control 05-002318 |
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MEETING DATE: |
03/07/06 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
John Wayne Airport
(Approved) |
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Department contact
person(s): |
Alan L. Murphy, (949) 252-5183 |
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Subject: Approve Consent for Assignment of Hertz
Lease
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approval Not Required |
Discussion |
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4/5 Vote |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: $3,811,561 |
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Funding Source: N/A |
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Prior Board Action: Board
M.O. dated November 14, 2000 awarded Hertz lease. |
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RECOMMENDED ACTION(S)
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1. |
Find the proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301of the CEQA Guidelines. |
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2. |
Approve consent to assignment of the Hertz Corporation lease resulting from a transfer of all outstanding shares of capital stock. |
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3. |
Authorize Airport Director to execute the approval document. |
SUMMARY:
Approve the consent to assignment of The Hertz Corporation lease resulting from a transfer of all outstanding shares of The Hertz Corporation capital stock and authorize the Airport Director to sign the approval document.
CEQA COMPLIANCE:
The recommended action is Categoricially Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301.
BACKGROUND INFORMATION:
The County of Orange (County) and The Hertz Corporation (Hertz) entered into an On-Airport Rental Car Concession Lease dated December 15, 2000 (the Lease) for Hertz's operation of an on-airport rental car concession at John Wayne Airport (JWA). The term of the Lease is eight (8) years, with a termination date of November 30, 2008.
Hertz is an indirect wholly owned subsidiary of Ford Motor Company (Ford). On October 10, 2005 JWA received notification from Hertz that Ford had reached a definitive agreement wherein CCMG Holdings, Inc. (CCMG), or one of its wholly-owned subsidiaries, would acquire all of the outstanding shares of Hertz capital stock.
Stock Transfer Requirements
Clause 31 (Assigning, Subletting, and Encumbering) of the Lease deems any transfer of any stock or interest in a corporation in the aggregate of twenty-five (25%) to be an assignment within the meaning of the Lease. The change in stock ownership from Ford to CCMG is, therefore, considered an assignment even though The Hertz Corporation and its management representation remain unchanged at JWA. County approval and consent is required for any such assignment. Hertz has remitted the required transfer fee of $3,311.00. The terms and conditions of the Lease are more fully described in the attached Lease Summary.
The use is in conformance with the General Plan of the County.
A four-fifths vote by the Board is required to approve the consent to assignment in accordance with Government Code 25536.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
EXHIBIT(S):
A. Lease Summary
B. Location Map
ATTACHMENT(S):
A. Stock Transfer Authorization Letter