To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Charles M. Schulz - Sonoma County Airport Rental Car Operator Lease and Concession Agreement.
End
Recommended Action:
Recommended action
Delegate authority to the Director of Public Infrastructure to execute new rental car lease and concession agreements with the current Airport rental car operators (Avis Budget, Enterprise, Hertz, and Autodistributors) for a term of ten years.
end
Executive Summary:
Approval of this item will delegate authority to the Director of Public Infrastructure to execute ten (10) year rental car lease and concession agreements with Avis Budget Car Rental, LLC (“Avis”); Enterprise Rent-A-Car Co. of San Francisco, LLC (“Enterprise”); Hertz Corporation (“Hertz”); and Autodistributors, Inc., a Nevada corporation, d/b/a Ace Rent a Car (“Ace”), based on the proposed agreement template approved by County Counsel. If approved, the Agreements will allow for the continued, uninterrupted operation of rental car businesses at the Charles M. Schulz - Sonoma County Airport.
Under the agreements, the operators will pay the Airport Enterprise Fund a concession fee of ten percent (10%) of gross receipts, as well as terminal rent for counter and office space and ground rent for exclusive-use areas.
Discussion:
Concession fees collected from rental car operations on airport premises has historically been a significant source of revenue for the Charles M. Schulz, Sonoma County Airport (“Airport”). Current rental car operations at Airport are being conducted on a month-to-month basis pending execution of new ten-year agreements. The Airport issued a Request for Proposals (RFP) in February 2026, which resulted in four (4) qualified proposals. Interviews and final selections were completed in April 2026.
Avis, Enterprise, and Hertz have each operated at the Airport for over 20 years, and Ace has operated for over 10 years. Their continued presence provides established, customer service-oriented rental car options that support the needs of the traveling public.
Under the proposed agreements, the Airport will provide counter and office space, as well as exclusive-use areas including vehicle pick-up and drop-off, overflow parking, and wash/detail facilities. Operators will pay a concession fee of ten percent (10%) of gross receipts, remit Customer Facility Charges (CFCs) to the Airport, and pay terminal rents, ground rents and a car wash maintenance fee.
Rental rates including the car wash maintenance fee will be adjusted annually in accordance with Board-approved rates and charges. Staff is recommending the Board delegate authority to the Director of the Department of Public Infrastructure to execute each agreement using the attached template agreement, the terms of which have been reviewed and negotiated with all proposed lessee/concessionaires. Although the operators are a service provider, they are acting as long-term lessees and consistency allows for better customer service and fleet investment. Continuity will improve usage and cost-recoupment in the planned consolidated rental car facility.
Rental car gross receipts and associated concession fees for the period 2021 through 2025 are summarized below:
|
|
2021 |
2022 |
2023 |
2024 |
2025 |
|
Gross Receipts |
$9,087,130 |
$11,815,360 |
$12,677,643 |
$13,557,946 |
$13,788,314 |
|
Concession Fee (10%) |
$908,713 |
$1,181,536 |
$1,267,764 |
$1,355,794 |
$1,378,831 |
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Organizational Excellence
Goal: Goal 1: Strengthen operational effectiveness, fiscal reliability, and accountability
Objective: Objective 1: Align the Board of Supervisor’s strategic priorities, policy, and operational goals with funding and resources.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
12-4-18: Approved a new five (5) year lease and concession agreement with Avis, Hertz, Enterprise, and Sixt.
09-26-12: Approved updated rental car lease and concession agreements between the County and Avis Budget Car Rental, LLC, Enterprise Rent-A-Car, and Hertz Corporation;
01-24-12: Approved amendment to lease and concession agreement adding the Alamo and National rental car brands to Enterprise’s rental car business at the Airport;
12-15-09: Approved amendment to lease and concession agreement adding the Budget rental car brand to Avis’ rental car business at the Airport;
03-09-06: Approved amendments to the Avis, Enterprise and Hertz lease and concession agreements regarding use of Airport’s then newly constructed car wash facility.
Fiscal Summary
|
Expenditures |
FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
$1,400,000 |
$1,470,000 |
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
|
$1,400,000 |
$1,470,000 |
Narrative Explanation of Fiscal Impacts:
This item is a revenue item with no specifically associated expenses. Projected revenue associated with these agreements will be included in the annual Airport Recommended Budget (41301-34030102). Airport staff is currently projecting $1,400,000 in revenue for the airport in fiscal year 2026-27.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Rental Car Concession and Lease Agreement
Related Items “On File” with the Clerk of the Board:
None