HomeMy WebLinkAbout24976RESOLUTION NO. 24976
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, MODIFYING THE PALM
SPRINGS INTERNATIONAL AIRPORT CUSTOMER
FACILITY CHARGE
WHEREAS, the City of Palm Springs, California ("City") owns and operates the
Palm Springs International Airport ("Airport"); and
WHEREAS, the City Council of the City of Palm Springs, California ("City Council")
adopted Ordinance No. 1708 on January 3, 2007 establishing a Customer Facility Charge
("CFC") at the Airport in accordance with California Civil Code Section 1939, and
WHEREAS, California Civil Code Section 1939 was subsequently incorporated
into the California Government Code, Article 6, Section 5074; and
WHEREAS, the CFC established by City Council is to be used by the City solely
for the financing, planning, design, and construction of a consolidated rental car facility
(CONRAC) at the Airport and the design, construction, and operation of the associated
common use transportation system, as needed, in accordance with California
Government Code, Article 6, Section 50474; and
WHEREAS, in September 2019, City Council authorized the preliminary planning
and design of the CONRAC Project; and
WHEREAS, the scope of the preliminary planning and design effort for the
CONRAC Project included the preparation of a CFC Capacity Analysis to determine the
affordability of the CONRAC Project and an analysis of the ability of the current $10.00
per transaction CFC to finance the CONRAC Project; and
WHEREAS, the CFC Capacity Analysis determined that the $10.00 per transaction
CFC is not sufficient to fund the CONRAC Project; and
WHEREAS, the City retained the PUN Group, LLP to conduct an independent
audit of the CFC Capacity Analysis in accordance with California Government Code,
Article 6, Section 50474; and
WHEREAS, the PUN Group, LLP, in its letter report to the City dated November 9,
2021, confirmed the findings of the CFC Capacity Analysis that the $10.00 per transaction
day CFC is not sufficient to fund the CONRAC Project; and
WHEREAS, on January 27, 2022 the City Council conducted a publicly noticed
hearing pursuant to the Ralph M. Brown Act ("hearing") to review the costs of financing
the design and construction of a CONRAC in accordance with California Government
Code, Article 6, Section 50474.
Resolution No. 24976
Page 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City has established the preliminary amount of revenue
necessary to finance the reasonable cost to design and construct a CONRAC and to
design, construct, and operate any common -use transportation system, or acquire
vehicles for use in that system, as needed, based on evidence presented during the
hearing.
SECTION 2. The City Council finds, based on evidence presented during the
hearing, that the current $10.00 per transaction CFC will not generate sufficient revenue
to finance the reasonable costs to design and construct a CONRAC and to design,
construct, and operate any common -use transportation system, or acquire vehicles for
use in that system.
SECTION 3. The City Council finds that the reasonable cost of the CONRAC
Project requires the additional amount of revenue that would be generated by the
proposed $9.00 daily rate, pursuant to this paragraph.
SECTION 4. During the Brown Act Public Hearing, the City outlined each of the
following:
Steps it has taken to limit costs
Other potential alternatives for meeting its revenue needs other than the
collection of the alternative CFC; and
The extent to which rental car companies or other businesses or individuals using
the facility or common -use transportation system will pay for the costs associated
with these facilities and systems other than the fee from rental customers.
SECTION 5. Subject to the requirements of California Government Code,
Article 6, Section 50474, the City Council hereby modifies the CFC levied on rental car
transactions occurring on or about the Airport to be $9.00 per rental transaction day. At
no time shall the CFC be collected from any customer for more than five days for each
individual rental car contract.
SECTION 6. This Resolution shall take effect on March 1, 2022, if by such date
the City has received notification that the State Controller has reviewed and
substantiated the need for and amount of the modified CFC. Alternatively, this
Resolution shall take effect on any later date that the City receives notification that the
State Controller has reviewed and substantiated the need for and amount of the
modified CFC.
Resolution No. 24976
Page 3
ADOPTED THIS 27T" DAY OF JANUARY, 2022.
c4&v-4"
Justin Clifton, City Manager
ATTEST:
ony J. Mejia, ity
b*fki-----
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24976 is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on January 27, 2022, by the
following vote:
AYES: Councilmembers Holstege, Kors, Woods, Mayor Pro Tern Garner, and
Mayor Middleton
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this day of
Anthony J. Mejk MMC, C' Clerk
City of Palm S rings, lifornia
p
I