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CITY COUNCIL STAFF REPORT
DATE: JANUARY 27, 2022 PUBLIC HEARING
SUBJECT: CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
FROM: Justin Clifton, City Manager
BY: Department of Aviation
SUMMARY
This action addresses the requirement contained in California Government Code, Article
6, Section 50474 (Section 50474) that an airport governing body conduct a Brown Act
Public Hearing to consider adoption of a resolution authorizing the conversion of the
current Palm Springs International Airport (Airport) $10.00 per transaction Customer
Facility Charge (CFC) to a $9.00 per transaction day CFC (maximum 5-day limit) to
finance the 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.
RECOMMENDATION:
1. Conduct a Brown Act Public Hearing to consider the implementation of an
alternative CFC in the amount of $9.00 per transaction day (maximum 5-day
limit) at the Airport in accordance with Section 50474.
2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRING, CALIFORNIA MODIFYING THE PALM SPRINGS
INTERNATIONAL AIRPORT CUSTOMER FACILITY CHARGE.
3. Authorize the City Manager, or his designee, to coordinate the filing of the
necessary reports and documents with the State of California as required in
Section 50474 and to notify the rental car companies serving the Airport of the
change in the CFC rate as of March 1, 2022.
BACKGROUND:
The implementation of a CFC at California airports is governed by Section 50474 which
sets forth the criteria for implementation of a CFC, CFC-eligible costs, and post
Item 2C - 1
City Council Staff Report
January 27, 2022 -- Page 2
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
implementation-auditing requirements for eligible California airports. Section 50474
further stipulates that the use of collected CFC revenues shall be used solely to:
“finance, design, and construct consolidated airport car rental facilities” and “to finance,
design, construct, and operate common-use transportation systems that move
passengers between airport terminals and those consolidated car rental facilities, and
acquire vehicles for use in that system” (Section 50474.21). Finally, Section 50474
establishes the process an airport governing body must follow to establish a CFC at an
airport on a per transaction day basis.
On January 3, 2007, City Council adopted Ordinance No. 1708 authorizing the
establishment of a CFC at the Airport in accordance with the requirements of
California Civil Code Section 1939, which at the time governed the implementation and
use of CFC revenue at California airports. The City has collected a $10.00 per
transaction CFC since 2007, and the Airport will use the funds collected through its CFC
to finance, design, and construct the CONRAC.
STAFF ANALYSIS:
Section 50474 provides that an eligible California airport can implement an alternative
CFC of up to $9.00 per transaction day (5-day maximum) for eligible uses (Section
50474.21) under certain circumstances, including the inability of a per transaction CFC
to provide sufficient revenue to finance the reasonable costs associated with the design
and construction of a CONRAC.
Brown Act Public Hearing Requirements
To proceed with the conversion of the current Airport per transaction CFC rate, Section
50474 stipulates that the City Council must conduct a Brown Act public hearing to
review the reasonable costs to finance, design, and construct a CONRAC at the Airport
and, if applicable, the reasonable costs to finance, design, construct and operate a
common-use transportation system that would move passengers between the Airport
terminal and the CONRAC, including the acquisition of vehicles for use in this system
(collectively, the Project). During the Brown Act public hearing, the City is required to
provide the following information (Subsection (b)(1)) and make the following “findings”:
1. A detailed description of the established reasonable costs for the Project;
2. A determination that the current $10.00 per transaction fee will not generate
sufficient revenue to finance the reasonable costs of the Project;
3. An indication that cost of the Project requires the additional amount of revenue that
would be generated by the proposed per day CFC;
4. A description of the steps it has taken to limit the costs of the Project;
Item 2C - 2
City Council Staff Report
January 27, 2022 -- Page 3
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
5. A description of other funding alternatives the City has explored for meeting the
funding needs of the Project other than collection of the alternative per transaction
day CFC; and
6. A description of the extent to which the City will require the rental car companies and
other businesses using facility and common use transportation system will pay for its
use, other than through the CFC.
Prior to scheduling and conducting the Brown Act public hearing, the City is required to
engage the services of an independent auditor to verify the matters contained in Section
50474, Subsection(b)(4)(B)(i). In the case of a CFC for a common-use transportation
system, the audit shall also consider the reasonable costs of providing the transit
system or busing network pursuant to Section 50474. Upon completion of the
independent audit, the City is required to file this report with the State and post the
same on the City’s website.
In addition, Section 50474 stipulates that an informational meeting with the rental car
companies serving the Airport should be conducted by the City to discuss the findings of
the compliance report, the independent audit, and schedule for consideration of the
proposed Resolution by City Council.
City Actions Taken to Date
1. On September 18, 2019, The City retained the architectural firm M. Arthur Gensler &
Associates, In. (Gensler) to provide preliminary design services for the Project. In
conjunction with this preliminary design effort, a preliminary rough order of
magnitude project cost estimate was also prepared and presented by Gensler. In
addition, Ricondo & Associates, Inc. (Ricondo), as a subconsultant to Gensler,
prepared the Customer Facility Charge and Common Transportation Analysis ((CFC
Capacity Analysis)) to determine the adequacy of the current $10.00 per transaction
CFC to fund the Project (Attachment B). As demonstrated in the CFC Capacity
Analysis, the current $10.00 per transaction CFC will not generate sufficient revenue
to finance the reasonable costs of the Project.
2. August 2021, the City retained The Pun Group, LLP (Pun Group) to prepare an
attestation of the matters contained in Section 50474, Subsection(b)(4)(B)(i). The
Pun Group’s independent audit report (Attachment C) confirmed that the current
$10.00 per transaction CFC will not generate sufficient revenue to finance the
reasonable costs of the Project.
3. On December 6, 2021, the City conducted an informational meeting with the rental
car companies serving the Airport. During this meeting, the City reviewed the
Item 2C - 3
City Council Staff Report
January 27, 2022 -- Page 4
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
findings of the Pun Group report and schedule (Attachment D) for consideration of
the proposed Resolution by City Council.
Enterprise Rent-a-Car (Enterprise) has expressed their perspective on the future
CONRAC and its funding. Enterprise is concerned with the City’s plan to increase
the charge to a maximum CFC allowed by California law and further believes the
CFC should not be increased to more than $5 per day until the Project is better
defined. Enterprise prefers to have a specific and agreed upon design and cost
estimate before the City sets its policy on the structure and level of the CFC that
Enterprise, and the other rental cars, are required to collect. Enterprise does not
believe a $9.00/day CFC is or will be in the future a reasonable or affordable fee for
PSP rental car customers, and recommends that the City consider another approach
to the CFC policy. This is further explained in the Enterprise Rent-a-Car position on
a CFC at the Airport (Attachment E).
4. On January 10, 2022, the City posted the Pun Group report on the City’s website at
Public Hearing Notices - The Pun Group - Examination of CFC Rate Analysis 11-09-
21 and submitted this report to the State of California.
Brown Act Public Hearing Recommended Findings
Following are the recommended “findings” to be considered by City Council associated
with the Brown Act Public Hearing:
1. A detailed description of the established reasonable costs for the Project.
Finding: In April 2020, Gensler prepared preliminary rough order of magnitude
(ROM) cost estimates for three potential sites to accommodate the CONRAC.
The preliminary ROM cost estimates range from $178.4 million to $191.0 million
and are based solely on the preliminary design of the CONRAC without the
benefit of full project definition and design and therefore may vary significantly. It
is reasonable to assume that the ROM cost estimates approximate the
reasonable costs of the CONRAC as of April 2020 based solely on a very
preliminary phase of design.
2. A determination that the current $10.00 per transaction fee will not generate
sufficient revenue to finance the reasonable costs of the Project.
Finding: The CFC Capacity Analysis concludes that continued use of the $10.00
per transaction fee will not generate sufficient revenue to finance the reasonable
costs of the CONRAC. The CFC Capacity Analysis projects that continued use of
a $10.00 per transaction fee could provide an estimated $53 million in funding
capacity for the CONRAC. Alternatively, imposition of a per day CFC (with a
Item 2C - 4
City Council Staff Report
January 27, 2022 -- Page 5
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
maximum collection period of 5-days) at $6.00 per day, $7.00 per day, $8.00 per
day, and $9.00 per day has the potential to provide $89 million, $100 million,
$111 million, and $122 million respectively in funding capacity based on the
issuance of 30-year debt and other assumptions contained in the CFC Capacity
Analysis.
3. An indication that cost of the Project requires the additional amount of revenue
that would be generated by the proposed per day CFC.
Finding: Based on the results of the CFC Capacity Analysis as well as the ROM
estimates prepared by Gensler, the current $10.00 per transaction CFC will
generate insufficient revenue to fund construction of the CONRAC.
4. A description of the steps it has taken to limit the costs of the Project.
Finding: During the preliminary conceptual design phase, Gensler, in
conjunction with Airport staff and the rental car companies serving the Airport
(the Project Team), evaluated several options to limit the cost of the CONRAC
including the use of multiple construction phasing methods / stages, alternative
project delivery, the evaluation of multiple facility concepts, and the deferment /
delay of construction to build additional CFC Pay-Go capacity to fund the
CONRAC. As the design of the CONRAC progresses, the Project Team will
continue to evaluate the steps enumerated above, conduct value engineering on
the preferred design alternative, and consider the overall scope and size of the
CONRAC to limit costs.
5. A description of other funding alternatives the City has explored for meeting the
funding needs of the Project other than collection of the alternative per
transaction day CFC.
Finding: The FAA Airport Improvement Program (AIP), the FAA Passenger
Facility Charge (PFC) Program, and general Airport operating revenues were
evaluated as possible alternative funding sources for the CONRAC. Based upon
a review of the eligibility requirements for AIP grants and the PFC program, the
CONRAC is not eligible for funding from these programs. In addition, the City’s
current Airport / Airline Use and Lease Agreement uses an airport-wide residual
ratemaking methodology which requires that all eligible non-airline operating
revenues be credited to the airlines for purposes of establishing annual rates and
charges for use of the Airport. Therefore, non-airline operating revenues
generated at the Airport are not currently available to support the funding needs
of the CONRAC.
Item 2C - 5
City Council Staff Report
January 27, 2022 -- Page 6
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
6. A description of the extent to which the City will require the rental car companies
and other businesses using facility and common use transportation system will
pay for its use, other than through the CFC.
Finding: The rental car companies will be expected to pay for their tenant
improvements to their exclusive use spaces within the CONRAC, annual facility
operating and maintenance expenses, and fair market value rent to the City for
the footprint of the land underlying the CONRAC. The rental car companies may
also be required to pay a portion, or all, of the costs of the common use
transportation system, depending on the availability of sufficient CFC revenues
from time to time, provided such common use transportation system is required
for the operation of the CONRAC.
RECOMMENDED ACTION:
Based on the results of the CFC Capacity Analysis, continuation of the current $10.00
per transaction CFC will not generate sufficient revenue to fund construction of the
Project. The CFC Capacity Analysis further concluded and recommended that in order
to provide maximum CFC funding capacity for the Project the City should transition to a
$9.00 per transaction day (maximum 5-day limit) as soon as practical.
Therefore, City staff recommends that City Council authorize the implementation of an
alternative CFC in the amount of $9.00 per transaction day (maximum 5-day limit) at the
Airport in accordance with Section 50474, and authorize the City Manager, or his
designee, to coordinate the filing of the necessary reports and documents with the State
of California as required in Section 50474 and to notify the rental car companies serving
the Airport of the change in the CFC rate as of March 1, 2022.
FISCAL IMPACT:
Implementation of a $9.00 per transaction day CFC capped at 5-days will have a
positive impact on the City’s ability to pay for the design, financing, construction, and
operation of the Project to serve Airport passengers and rental car customers. All
revenue received will be deposited into account 405.38125.
Item 2C - 6
City Council Staff Report
January 27, 2022 -- Page 7
Authorize Proceeding with a Per Transaction Day
Customer Facility Charge
REVIEWED BY:
Department Director: Harry Barrett Jr.
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton
ATTACHMENTS:
A. Resolution
B. Ricondo – Customer Facility Charge and Common Transportation Analysis
C. Pun Group – Examination of Customer Facility Charge Rate Analysis
D. Palm Springs International Airport CFC Analysis
E. Enterprise Rent A Car position on CFC at Palm Springs Airport
Item 2C - 7
AVIATION DEPARTMENT:
City Council Meeting of 01-27-22
CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
ATTACHMENT A
RESOLUTION
Item 2C - 8
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRING, 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.
Item 2C - 9
Resolution No. _____
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.
Item 2C - 10
Resolution No. _____
Page 3
ADOPTED THIS 27TH DAY OF JANUARY, 2022.
Justin Clifton, City Manager
ATTEST:
Anthony J. Mejia, MMC
City Clerk
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. ____ 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:
NOES:
ABSENT:
ABSTAIN:
Anthony J. Mejia, MMC
City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this ______ day of ______________, _________.
Item 2C - 11
AVIATION DEPARTMENT:
City Council Meeting of 01-27-22
CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
ATTACHMENT B
RICONDO - CUSTOMER FACILITY CHARGE
AND COMMON TRANSPORTATION ANALYSIS
Item 2C - 12
20 NORTH CLARK STREET | SUITE 1500 | CHICAGO, IL 60602 | TEL +1 312-606-0611 | WWW.RICONDO.COM
MEMORANDUM
Date: October 18, 2021
To: Ulises Aguirre
Palm Springs International Airport
From: Jim Branda
Subject: CUSTOMER FACILITY CHARGE AND COMMON TRANSPORTATION ANALYSIS
Ricondo & Associates, Inc. (Ricondo) is pleased to provide the attached Customer Facility Charge (CFC) and
Common Use Transportation (CUT) System Analysis (CFC and CUT Analysis) for the Palm Springs
International Airport (Airport).
The CFC and CUT Analysis is dated January 2021 and is being submitted at this time in final format based
upon our October 14, 2021 conference call and Ricondo’s understanding that the City of Palm Springs (City)
does not have additional feedback or input on Ricondo’s January 2021 draft version.
The purpose of the CFC and CUT Analysis is to evaluate the affordability of the proposed Airport
Consolidated Rental Car Facility (CONRAC) project and determine whether the Airport’s existing CFC ($10.00
per transaction) would generate sufficient revenue to fund the CONRAC. The CFC And CUT Analysis further
evaluates a potential change in the Airport’s existing CFC rate structure to a per transaction day CFC, in
accordance with California Government Code, Article 6, Section 50474 (CFC Stat ute).
Based upon the CFC and CUT Analysis presented herein, the Airport’s existing CFC - $10.00 per transaction
– does not generate sufficient revenue to fund the CONRAC. The number of Airport rental car transactions
would need to more than double to generate equivalent CFC revenue as a $8.00 or $9.00 per transaction
day CFC (see Table 1-1). While the CFC and CUT Analysis is based upon a set of assumptions and activity
projections that were established as of the 4th quarter of calendar year 2020, Ricondo is of the opinion that
continued use of a per transaction CFC will not generate sufficient revenue to fund the Airport’s proposed
CONRAC to a size and scope to accommodate existing and projected rental car demand at the Airport.
Thank you for the opportunity to assist the City with preparation of this CFC and CUT Analysis. Please let
me know if you have any questions or would like to discuss this analysis in greater detail.
ENCLOSURES
cc: 18011078
Bryan Elliott, Ricondo
Josh Francosky, Ricondo
p:\_projects\psp (city of palm springs)\18011078-psp conrac facility planning and programming\03-conrac facility planning & programming\03-conrac programming &
planning\psp final report transmittal_101821.docx
Item 2C - 13
g I RICONDO ®
January 2021
Palm Springs International Airport
Customer Facility Charge and
Common Transportation Analysis
Prepared for:
The City of Palm Springs, CA
Prepared by:
RICONDO
Ricondo & Associates, Inc. (Ricondo) prepared this document for the stated purposes as expressly set forth herein and for the sole use of the City of Palm Springs, CA and its intended recipients. The techniques and methodologies used in preparing this document are consistent with industry practices at the time of preparation and this
Report should be read in its entirety for an understanding of the analysis, assumptions, and opinions presented. Ricondo & Associates, Inc. is not registered as a municipal advisor under Section 15B of the Securities Exchange Act of 1934 and does not provide financial advisory services within the meaning of such act.
Item 2C - 14
11111111 RI C O N D O ®
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | ii |
LIST OF TABLES
Table 1-1 Summary of Estimated CFC Funding Capacity for Project Costs ...................................................................... 1-3
Table 1-2 Common Use Transportation Bus Fleet Requirements ........................................................................................ 1-3
Table 1-3 Airport CFC Rate Benchmarking .................................................................................................................................... 1-4
Table 2-1 Enplaned Passenger Forecast Scenarios .................................................................................................................... 2-2
Table 3-1 CFC Revenue Forecast – Key Assumptions1 .............................................................................................................. 3-1
Table 4-1 FORECAST of Peak Period Bus Fleet RequiremenTs .............................................................................................. 4-4
Table 4-2 Annual Busing Cost Benchmark ..................................................................................................................................... 4-4
Table 4-3 FORECAST Annual Busing Cost ...................................................................................................................................... 4-5
Table 4-4 Fleet Requirement and Annual Cost for Passenger Demand Driven Headway Busing Operation ..... 4-5
Table 5-1 CFC Capacity Analysis – Key Assumptions ................................................................................................................ 5-1
Table 5-2 Summary of Estimated CFC Funding Capacity for Project Costs ...................................................................... 5-2
Table 5-3 Rough Order of Magnitude Project Option Costs.................................................................................................. 5-3
Table 5-4 Summary of Year One Busing Costs (South Site Only) ......................................................................................... 5-4
Table 5-5 8-year, 9-year, and 10-year CONRAC Construction Deferral Options ........................................................... 5-5
LIST OF EXHIBITS
Exhibit 1-1 Passenger Forecasts – FY 2021 through FY 2050 Baseline, Low, and High Scenarios ............................. 1-2
Exhibit 2-1 FY 2021 – FY 2050 enplaned Passenger Forecast ................................................................................................... 2-3
Exhibit 3-1 Annual CFC Revenue Forecast1 ...................................................................................................................................... 3-2
Exhibit 4-1 South Site Proposed Bus Route ..................................................................................................................................... 4-2
Exhibit 5-1 CFC Capacity Analysis Forecast – Total Estimated CFC Funding Capacity .................................................... 5-3
Exhibit 5-2 CFC Revenue Gap Analysis1 ............................................................................................................................................. 5-5
Item 2C - 15
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | i |
TABLE OF CONTENTS
1.Executive Summary ....................................................................................................................... 1-1
2.Passenger Forecast ........................................................................................................................ 2-1
2.1 Methodology and Assumptions ........................................................................................................................................ 2-1
2.2 Impact of COVID-19 on Passenger Airline Activity .................................................................................................... 2-1
3.Customer Facility Charge Revenue Forecast .............................................................................. 3-1
4.Common Use Transportation System Analysis .......................................................................... 4-1
4.1 Methodology ............................................................................................................................................................................. 4-1
4.2 Bus Route Structure ................................................................................................................................................................ 4-1
4.3 Fleet Requirements ................................................................................................................................................................. 4-3
4.4 Annual Busing Cost Forecast ............................................................................................................................................... 4-4
4.5 Recommendation .................................................................................................................................................................... 4-5
5.CFC Funding Capacity Analysis .................................................................................................... 5-1
5.1 Methodology ............................................................................................................................................................................. 5-1
5.2 Assumptions .............................................................................................................................................................................. 5-1
5.3 CFC Funding Capacity Projections .................................................................................................................................... 5-2
5.4 Project Cost Estimates ........................................................................................................................................................... 5-3
5.5 CFC Funding Capacity Gap .................................................................................................................................................. 5-4
5.6 CONRAC Affordability Options .......................................................................................................................................... 5-4
6.Implementation of Per Transaction Day CFC ............................................................................. 6-1
LIST OF APPENDICES
Appendix A Palm Springs International Airport - Approximate Location of Alternative Rental Car Facility
Sites
Appendix B Projected CFC Revenue and Funding Capacity – 20 Year Debt (Busing Included)
Appendix C Projected CFC Revenue and Funding Capacity – 25 Year Debt (Busing Included)
Appendix D Projected CFC Revenue and Funding Capacity – 30 Year Debt (Busing Included)
Appendix E Projected CFC Revenue and Funding Capacity – 20 Year Debt (Busing Not Included)
Appendix F Projected CFC Revenue and Funding Capacity – 25 Year Debt (Busing Not Included)
Appendix G Projected CFC Revenue and Funding Capacity – 30 Year Debt (Busing Not Included)
Item 2C - 16
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 1-1 |
1.EXECUTIVE SUMMARY
In 2019, the City of Palm Springs (City) retained Gensler to provide preliminary design services for a consolidated
airport car rental facility (CONRAC) at Palm Springs International Airport (the Airport or PSP). In conjunction with
this preliminary CONRAC design effort, the City retained Ricondo & Associates, Inc. (Ricondo) to prepare a Customer
Facility Charge (CFC) and Common Use Transportation (CUT) system analysis to evaluate the affordability of the
CONRAC project and determine whether the Airport’s existing CFC ($10.00 per transaction) would generate
sufficient revenue to fund the CONRAC. The City also requested Ricondo’s assistance in evaluating a potential
change in the Airport’s existing CFC rate structure if it determined that the existing CFC will not generate sufficient
revenue to pay for the CONRAC. Specifically, this analysis covered a potential transition from the existing per
transaction CFC to a per transaction day basis, in accordance with California Government Code, Article 6, Section
50474 (CFC Statute).
The CFC Statute establishes CFC implementation guidelines, defines CFC-eligible costs, and sets forth post CFC -
implementation auditing requirements for all California Airports. Under this statute, CFC revenues can be used to
“finance, design, and construct consolidated airport vehicle rental facilities” as well as “to finance, design, construct
and operate common-use transportation systems that move passengers between airport terminals and those
consolidated vehicle rental facilities, and acquire vehicles for use in that system” (Section 50474.21 (a)(1-2)). The CFC
Statute also establishes procedures for changing an airport’s existing CFC from a ‘per transaction‘ to a ‘per
transaction day basis.
The Airport’s current CFC—$10.00 per transaction—was enacted in October 2007 under California Civil Code Section
1936, which was the governing regulation for California airports at that time. The CFC funds collected since October
2007 will be used to finance, design, and construct a CONRAC. According to City records, CFC funds collected
through June 2020 total $24 million.
Under Section 50474.3 (b)(3)(C) of the CFC Statute, California airports may implement an alternative CFC of up to
$9.00 per transaction day (five transaction day maximum) for eligible uses under certain circumstances. In March
2020, Ricondo presented a preliminary CFC Analysis (Preliminary CFC Analysis) to the City that modeled the
projected funding capacity under four alternative per transaction day CFC rates: $6.00 per transaction day; $7.00 per
transaction day; $8.00 per transaction day; and $9.00 per transaction day. Ricondo’s modeling assumed the five-day
transaction day cap.
This report updates the CFC revenue forecasts from Ricondo’s Preliminary CFC Analysis by adjusting the forecasts
for existing and projected future impacts on air travel caused by the Coronavirus Disease 2019 (COVID-19). This
report, like the Preliminary CFC Analysis, forecasts CFC revenues based on the City’s existing per transaction
methodology and alternatively, on the allowable per transaction day rates as permitted by the CFC Statute.
For this updated analysis, Ricondo modeled the future impact of COVID-19 on the Airport’s passenger activity using
three passenger forecast scenarios. These scenarios represent a baseline, low, and high scenario for passenger
growth rates at the Airport through 2050, as shown on Exhibit 1-1.
Item 2C - 17
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 1-2 |
EXHIBIT 1-1 PASSENGER FORECASTS – FY 2021 THROUGH FY 2050 BASELINE, LOW, AND HIGH
SCENARIOS
SOURCE: Ricondo & Associates, Inc., December 2020.
Ricondo updated its Preliminary CFC Analysis using the Baseline Scenario in Exhibit 1-1. CFC capacity forecasts were
modeled for applicable per transaction day rates, capped at five transaction days, and capacity was also modeled
for a continuation of the existing per transaction rate. Table 1-1 summarizes estimated CONRAC funding capacity
under the five CFC rate structures for 20-, 25-, and 30-year debt amortization periods 1.
Gensler has identified three alternate locations for a CONRAC facility at the Airport, which are referenced in this
document as the North Site, South Site, and Split Site and are described further in Section 5.4. Gensler further
produced rough-order-of-magnitude (ROM) cost estimates for each site to inform the City of potential probable
costs of construction for each site. Ricondo applied Gensler’s ROM cost estimates to determine if shortfalls exist in
projected CFC funding capacity.
1 These funding capacity calculations exclude the operating costs for a CUT system which would be required should the City select Gensler’s
South Site.
1.3 M
1.5 M
1.6 M
1.8 M
2.0 M 2.2 M
0.7 M
1.2 M
1.4 M
1.5 M
1.7 M
1.8 M
2.0 M
0.9 M
1.5 M
1.7 M
1.9 M
2.1 M
2.3 M 2.5 M
1.3 M
0.0
0.3
0.5
0.8
1.0
1.3
1.5
1.8
2.0
2.3
2.5
2.8
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050Annual Enplaned Passengers (Millions)Fiscal YearBaseline Scenario Low Scenario High Scenario Actual
Item 2C - 18
• • •
......... ......... • ••••
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 1-3 |
TABLE 1-1 SUMMARY OF ESTIMATED CFC FUNDING CAPACITY FOR PROJECT COSTS
ESTIMATED CFC PAYGO CAPACITY1 NET BOND CAPACITY2 TOTAL ESTIMATED FUNDING CAPACITY3
20-Year Bond Term Amortization
CFC Rate$10.00 Per Transaction $30,658,092 $18,381,206 $49,039,298 $6.00 Per Transaction Day $38,184,725 $41,450,202 $79,634,927 $7.00 Per Transaction Day $40,438,691 $48,358,569 $88,797,261 $8.00 Per Transaction Day $42,692,658 $55,266,936 $97,959,594 $9.00 Per Transaction Day $44,946,624 $62,175,303 $107,121,927
25-Year Bond Term Amortization
CFC Rate$10.00 Per Transaction $30,658,092 $20,837,907 $51,495,999 $6.00 Per Transaction Day $38,184,725 $46,990,141 $85,174,866 $7.00 Per Transaction Day $40,438,691 $54,821,831 $95,260,523 $8.00 Per Transaction Day $42,692,658 $62,653,522 $105,346,179 $9.00 Per Transaction Day $44,946,624 $70,485,212 $115,431,836
30-Year Bond Term Amortization
CFC Rate$10.00 Per Transaction $30,658,092 $22,717,613 $53,375,705 $6.00 Per Transaction Day $38,221,386 $51,228,939 $89,450,324 $7.00 Per Transaction Day $40,475,352 $59,767,095 $100,242,447 $8.00 Per Transaction Day $42,729,318 $68,305,252 $111,034,570 $9.00 Per Transaction Day $44,983,285 $76,843,408 $121,826,693
NOTES:
1 Estimated CFC Pay-As-You-Go (PAYGO) capacity reflects CFCs available to fund project costs on a pay-as-you go basis through July 1, 2025.
2 Net Bond Capacity reflects the net CFC bond proceeds available for project cost after cost of issuance and debt service reserve.
3 CFC funding capacity for projected costs does not include common busing operating costs as those costs, if permitted by the City to be paid from CFC revenues,
would impact CFC cash flow after payment of project debt service.
SOURCE: Ricondo & Associates, Inc. (analysis), December 2020.
Ricondo also performed a CUT system analysis, which established the annual operational requirements for a shuttle
bus system to transport rental car customers between the Airport passenger terminal and the South Site created an
annual ROM cost estimate for this CUT system. This analysis is summarized in Table 1-2. Should the City decide to
construct the CONRAC on the South Site, Ricondo recommends use of a common transportation system based on
passenger demand driven headways. A busing operation based on passenger driven headways provides a higher
level of customer service than a fixed headway operation and eliminates passenger leave behinds. Table 1-2
summarizes the fleet requirements and the projected annual costs for a passenger demand driven headway busing
operation.
TABLE 1-2 COMMON USE TRANSPORTATION B US FLEET REQUIREMENTS
2026
(OPENING DAY (DBO)) 2030 2035 2040
Fleet Requirement (Off-Peak Month/Peak Month) 3/7 4/8 4/8 4/9
Annual Cost Passenger Demand Driven Bus Fleet Requirement (Off-Peak Months/Peak Months)
$2,590,000 $3,159,000 $3,889,000 $4,531,000
NOTE:
1 Date of Beneficial Occupancy (DBO).
SOURCE: Ricondo & Associates, Inc., December 2020.
Item 2C - 19
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 1-4 |
Ricondo further developed a benchmarking analysis comparing current CFC rates at other California airports and at
airports with similar characteristics as PSP is provided in Table 1-3 below for information and reference.
TABLE 1-3 AIRPORT CFC RATE BENCHMARKING
AIRPORT AIRPORT CFC RATE CFC PER DAY / TRANSACTION
California Airports CFCs (Transaction Based)
San Francisco International Airport SFO $16.00 Transaction
Palm Springs International Airport PSP $10.00 Transaction
Long Beach Airport (Daugherty Field) LGB $10.00 Transaction
Oakland International Airport OAK $10.00 Transaction
Ontario International Airport ONT $10.00 Transaction
San Luis Obispo County Regional Airport (McChesney Field) SBP $10.00 Transaction
California Airports CFCs (Per Day Basis - 5 Day Maximum)
San Diego International Airport SAN $9.00 Day
Los Angeles International Airport LAX $9.00 Day
Hollywood Burbank Airport (Bob Hope Airport) BUR $6.00 Day Fresno Yosemite International Airport FAT $4.50 Day
Norman Y. Mineta San Jose International Airport 1 SJC $7.50 Day
Airports Similar to PSP CFCs
Reno/Tahoe International Airport RNO $5.50 Day
Charleston International Airport CHS $5.00 Day
Ellison Onizuka Kona International Airport at Keāhole KOA $4.50 Day
Lihue International Airport LIH $4.50 Day
Pensacola International Airport PNS $4.25 Day
Myrtle Beach International Airport MYR $4.00 Day
St. Pete-Clearwater International Airport PIE $4.00 Day
El Paso International Airport ELP $3.50 Day
Savannah/Hilton Head International Airport SAV $3.00 Day
NOTE: 1 Airport is requesting approval by San Jose City Council to increase CFC rate to $9.00 per day.
SOURCES: Internal CFC Database, Ricondo and Associates, Inc., December 2020; Enterprise Rental Car, https://www.enterprise.com/en/home.html (accessed
December 17, 2020); Hertz Rental Car, https://www.hertz.com/ (accessed December 17, 2020); Avis Rental Car, https://www.avis.com/en/home (accessed
December 20, 2020).
As noted in Table 1-3, San Diego International Airport and Los Angeles International Airport currently charge the
maximum $9.00 rate permitted by the CFC Statute.
Based on the results of this CFC Analysis, Ricondo finds that continuation of the current $10.00 per
transaction CFC will not generate sufficient revenue to fund construction of the CONRAC at the Airport.
Ricondo further finds that to provide maximum CFC funding capacity for the CONRAC the City should
transition to a $9.00 per transaction day as soon as practical.
Item 2C - 20
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 2-1 |
2.PASSENGER FORECAST
2.1 M ETHODOLOGY AND ASSUMPTIONS
For this analysis, Ricondo developed three passenger forecast scenarios (low, baseline, and high). The three scenarios
depict a range of possible growth rates reflecting future impacts on passenger activity at the Airport. Each forecast
projects departing seat capacity and load factors by month, airline, and destination through FY 2023. Published
airline schedules were used through November 2020, and near-term future schedules were based on airline
guidance and future service announcements. The gradual increase in passenger activity in the forecast reflects
airlines restoring capacity and achieving higher load factors over the course of an assumed recovery timeline. The
baseline forecast represents the expected future activity. Two alternative scenarios were developed that represent
different levels of activity that could occur. The low scenario assumes a shorter high season at the Airport (by one
month, compared to the baseline forecast) and marginally lower load factors over the course of the recovery. The
high scenario assumes an extended high season (by one month compared to the baseline forecast) and marginally
higher load factors over the course of the recovery. For FY 2024 through FY 2029 the compound annual growth rate
(CAGR) from the 2019 Palm Springs International Airport Report of the Airport Consultant (Feasibility Report)2 was
applied to the baseline figure of FY 2023 enplaned passengers. From FY 2030 through FY 2050, enplaned passenger
CAGR was assumed to be 2.0 percent annually under all three scenarios, consistent with the Feasibility Report.
2.2 IMPACT OF COVID-19 ON PASSENGER AIRLINE ACTIVITY
The COVID-19 pandemic has depressed demand for air travel worldwide. Airlines have responded by placing aircraft
in storage and drastically reducing capacity across their networks, initially through flight cancellations and later
through schedule reductions. In May 2020, the low point in terms of reduced airline capacity, scheduled domestic
seat capacity at US airports represented 24 percent of the May 2019 capacity.3 Demand began to recover in June
2020 as evidenced by scheduled domestic seat capacity in September 2020 being 49 percent of the figure for
September 2019.4 Despite these gains, load factors remain below pre-pandemic levels, and in some cases have been
restricted by airlines blocking seats as a safety protocol and in an effort to encourage passengers to fly.
The development of the baseline and scenario passenger forecasts used in this analysis take into consideration the
following factors related to the ongoing COVID-19 pandemic:
The severity and duration of the downturn in air travel demand, as well as the timing, pace, and length of the
recovery, are unknown at this time. The distribution of an effective vaccine or treatment for COVID-19 would
affect the timing and magnitude of the demand recovery. A full recovery to pre–COVID-19 activity levels will
likely require development and widescale deployment of a vaccine to prevent the disease or an effective therapy
to treat it. The timing and likelihood of these medical developments are unknown.
2 Ricondo and Associates, Inc., Report of the Airport Consultant, Palm Springs International Airport - (Chapter 5) Passenger Demand and Air
Service Analysis, June 19, 2019.
3 Innovata (published airline schedules), January 2021.
4 Innovata (published airline schedules), January 2021.
Item 2C - 21
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 2-2 |
A prolonged contraction of demand for air travel increases the likelihood of structural changes to the airline
industry as compared to a “return to normal” recovery. These structural changes may include airline
bankruptcies and failures, consolidations, and hub closures or other network changes.
National governments, including the United States, have imposed short-term regulatory changes, including
requiring airlines to maintain service to certain destinations, as well as bans on certain international travel. State
and local governments have imposed stay at home orders and required quarantines after arriving from other
cities and states that have restricted travel. The extension or reinstatement of these temporary changes, or the
introduction of additional regulatory requirements (e.g., government-coordinated scheduling and fare pricing),
would impact demand for air travel and patterns of activity.
There are indications that passenger traffic is recovering faster at PSP than for the U.S. as a whole. In September
2020, the most recent period for which data was available at the time this report was prepared, PSP domestic
passengers represented 70 percent of September 2019 passengers, compared to 39 percent for domestic
passengers for all U.S. airports.5 In January 2021 scheduled departing seats from PSP to domestic destinations
represented 97 percent of January 2019 compared to 61 percent for domestic departing seats from all U.S. airports.6
The faster rate of recovery at PSP is attributable to several factors that make it particularly attractive as a leisure
destination during the pandemic. The Palm Springs region has a year-round warm climate and offers numerous
outdoor activities that can be enjoyed while maintaining social distance. There is an abundance of outdoor dining
options and rental properties where visitors can have an entire space to themselves as opposed to hotels with
shared amenities that may not be open during the pandemic. Airlines have added new routes in response to
increased interest in warmer leisure destinations like PSP. Southwest Airlines launched service to PSP in November
2020 and incumbent airlines Alaska, Allegiant, and Delta have added service to new destinations and increased
service on existing routes.
Table 2-1 summarizes the Airport’s forecast enplaned passenger CAGR for FY 2020 through FY 2050 under the
baseline, low, and high growth scenarios. The scenarios are plotted on Exhibit 2-1.
TABLE 2-1 ENPLANED PASSENGER FORECAST SCENARIOS
COMPOUND ANNUAL GROWTH RATE
SCENARIO
FY 2020-
FY 2023
FY 2023-
FY 2029
FY 2029-
FY 2050 TOTAL (2020-2050)
Baseline Scenario 11.1% 2.2% 2.0% 2.9%
Low Scenario 4.6% 4.0% 2.0% 2.7%
High Scenario 16.0% 2.2% 2.0% 3.4%
SOURCE: Ricondo & Associates, Inc. (forecasts), December 2020.
5 United States Department of Transportation T-100 Database, January 2021
6 Innovata (published airline scheduled), January 2021
Item 2C - 22
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 2-3 |
EXHIBIT 2-1 FY 2021 – FY 2050 ENPLANED PASSENGER FORECAST
SOURCE: Ricondo & Associates, Inc., December 2020.
1.3 M
1.5 M
1.6 M
1.8 M
2.0 M 2.2 M
0.7 M
1.2 M
1.4 M
1.5 M
1.7 M
1.8 M
2.0 M
0.9 M
1.5 M
1.7 M
1.9 M
2.1 M
2.3 M 2.5 M
1.3 M
0.0
0.3
0.5
0.8
1.0
1.3
1.5
1.8
2.0
2.3
2.5
2.8
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050Annual Enplaned Passengers (Millions)Fiscal Year
Baseline Scenario Low Scenario High Scenario Actual
Item 2C - 23
........ ........ • ••••
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 3-1 |
3.CUSTOMER F ACILITY CHARGE R EVENUE
F ORECAST
Ricondo prepared an update to the Preliminary CFC Analysis revenue forecast based on the three passenger forecast
scenarios described in Section 2. In keeping with a conservative approach to forecasting, the baseline passenger
forecast scenario was used for the CFC revenue forecast. The revenue forecast assumed that if the CFC rate were
increased, the new rate would be effective July 1, 2021. To calculate CFC revenue forecast scenarios through June
2040, five alternative CFC rates were used: $10.00 per transaction; $6.00 per transaction day; $7.00 per transaction
day; $8.00 per transaction day; and $9.00 per transaction day. The per transaction day modeling assumes a five-day
maximum collection period as allowed under the CFC Statute. Table 3-1 shows the assumptions used in developing
the CFC revenue forecast scenarios, and Exhibit 3-1 presents the annual CFC revenue forecasts at the five different
CFC levels through FY 2040. Annual CFC revenue forecasts are highlighted in 2025, 2030, 2035 and 2040 for
comparison.
TABLE 3-1 CFC REVENUE FORECAST – KEY ASSUMPTIONS1
CFC Implementation Schedule
New CFC Implementation Date 7/1/2021
CFC Forecast End Date 6/30/2040
Rental Car Activity Forecast
Passenger Forecast Scenario Used Baseline
Forecast Rental Car Transaction Compound Annual Growth Rate (2021-2029) 7.24 percent
Forecast Rental Car Transaction Compound Annual Growth Rate (2030-2040) 2.00 percent
Forecast Rental Car Transaction Compound Annual Growth Rate (2021-2040) 4.18 percent
Rental Car Transactions per Enplaned Passenger 2/ 0.20
Average Length of Rental Car Transaction (days) 3 3.50
CFC Scenarios
CFC Scenarios Modeled $10/Transaction | $6/Day | $7/Day | $8/Day | $9/Day
NOTES:
1 This draft report is not and shall not be considered to be a recommendation or advice to the City of Palm Springs, CA ("Client") with respect to the issuance of
municipal securities. Ricondo & Associates, Inc. (“Ricondo”) is not registered as a municipal advisor under Section 15B of the Securities Exchange Act of 1934. The
assumptions included in this report have been provided by Client or Client’s Municipal Advisor or underwriter, or, with Client’s approval, have been derived from
general, publicly available data approved by Client. Ricondo owes no fiduciary duty to Client. Client should discuss the information and analysis contained in this
report with internal and external advisors and experts that Client deems appropriate before taking any action. Any opinions, assumptions, views, or information
contained herein are not intended to be, and do not constitute, “advice” within the meaning of Section 15B of the Securities and Exchange Act of 1934.
2 Projected Total Rental Car Transactions per Enplanement based on Actual FY 2017-FY 2020 rental car transactions divided by total enplaned passengers.
3 Projected Average Length of Rental Car Transaction provided by Palm Springs International Airport.
SOURCE: Ricondo & Associates, Inc., December 2020.
Item 2C - 24
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 3-2 |
EXHIBIT 3-1 ANNUAL CFC REVENUE FORECAST1
NOTE:
1 Forecast based on baseline passenger enplanement forecast.
SOURCE: Ricondo & Associates, Inc., December 2020.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
20212022202320242025202620272028202920302031203220332034203520362037203820392040$10.00/Trans Scenario $6.00/Day Scenario $7.00/Day Scenario
$8.00/Day Scenario $9.00/Day Scenario
$8.1M
$7.4M
$6.7M
$6.0M
$12.2M
$9.0M
$10.0M
$11.0M $10.8M
$9.8M
$8.9M
$8.0M
$9.5M
$8.6M
$7.8M
$7.0M
$2.7M $3.0M $3.3M $3.6M
Item 2C - 25
....... ....... ....... ....... .......
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 4-1 |
4.C OMMON USE T RANSPORTATION S YSTEM
ANALYSIS
Ricondo performed a CUT analysis to determine the fleet requirements and annual costs for operating shuttle buses
to move passengers between the passenger terminal and the South Site (described in Section 5.4). This section
describes the methodology, assumptions, and results of the analysis. Of the proposed CONRAC sites currently under
consideration, only the South Site would require common busing.
4.1 METHODOLOGY
Fleet requirements and annual operating costs were based on two alternative headway methodologies. A “headway”
refers to the time interval between the arrival of buses at a particular pickup or drop-off area. The two methodologies
are as follows:
Fixed Headway – predetermined headways that are set regardless of passenger demand throughout the day.
Passenger Demand Driven Headway – headways that are adjusted based on passenger demand, specifically set
to eliminate leave-behinds (i.e., every passenger waiting at a stop would be able to board the first bus to arrive).
The two alternative methodologies were developed to provide a range of fleet requirements and operating costs
and reflect the most common operational models used in an airport environment.
4.2 BUS ROUTE STRUCTURE
The proposed bus route would follow a circuit on Kirk Douglas Way from the CONRAC customer service building
(CSB) to the passenger terminal, as shown in Exhibit 4-1. Assuming posted speed limits and standard shuttle bus
acceleration and deceleration, a base circuit time per bus was developed. The route would drop off and pick-up
passengers at the passenger terminal’s outer curbside roadway and proceed to the CONRAC via Kirk Douglas Way.
The base circuit time is approximately seven minutes, which includes one and a half minutes of stop time at a
potential new controlled intersection at the exit to the CSB but does not include dwell times for loading and
unloading of passengers. Calibration factors were used to account for these variables and calculate the actual route
circuit times. The model assumes two minutes of dwell time for loading and an additional three minutes for
unloading at both the passenger terminal and the CSB. The total route circuit time per bus was calculated as 17
minutes.
To ensure this circuit time could be consistently met, the analysis also assumed that a curbside attendant program
would be operated at both the passenger terminal and CSB. This attendant program would include assisting
customers and their luggage as they get on and off the buses, dispatching buses, and ensuring passenger safety at
the passenger terminal and CONRAC curbsides.
It was also assumed that “double busing” will be required. Double busing assumes that the common bus will be the
only bus picking up/dropping off passengers at the passenger terminal. All rental car companies not participating
in the CONRAC would be required to double bus (i.e., bus their customers to the CONRAC where they could then
take the common bus to the passenger terminal).
Item 2C - 26
Drawing: P:\_PROJECTS\PSP (City of Palm Springs)\16070980 PSP Financial Planning Services\03-CFC & Rental Car Concession Planning\07-CFC Planning Services (October 2020)\03-Common Use System Analysis\Busing\CAD\Busing Route.dwgLayout: 8.5x11L Plotted: Jan 5, 2021, 08:41AMNORTHCustomer Facility Charge and Common Transportation Analysis0SOURCE: Google Earth Pro, 2020 (aerial photography--for visual references only, may not be to scale); Ricondo and Associates, Inc. December 2020.500 ftKirk Douglas WayKirk Douglas Way
TerminalProposed South SiteConsolidated Airport CarRental Facility (CONRAC)Customer Service Building (CSB)Item 2C - 27PALM SPRINGS INTERNATIONAL AIRPORT .. •. f JANUARY 2021 rrr EXHIBIT 4-1 South CONRAC Site Proposed Bus Route
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 4-3 |
4.3 FLEET REQUIREMENTS
The number of buses necessary to meet forecast passenger demand was based on the operational assumptions for
both fixed headways and passenger demand driven headways. Under both methodologies, it was assumed that the
bus would operate from 4:00 a.m. to 12:00 a.m. each day during both peak and non-peak months. For the passenger
demand driven headway, it was assumed that the peak months include January through April, November, and
December (six months), and that the off-peak months include May through October (six months).
Fixed Headways
The fleet requirement under the fixed headway scenario was based on the route circuit time (travel time, signal time,
and drop-off / pickup time) and desired headway times. As described previously, the total circuit time was assumed
to be 17 minutes. It was assumed that during the peak periods during the day (4:00 a.m. - 8:00 p.m.), buses would
run 7-minute headways during the peak months and 10-minute headways during the off-peak months. During the
non-peak periods (8:00 p.m. to 12:00 a.m.), buses would run 12.5-minute headways during the peak months and
15-minute headways during off-peak months.
Passenger Demand Driven Headways
The fleet requirement under the passenger demand driven headway scenario was based on the route circuit time
(travel time, signal time, and drop-off/pickup time), the number of passengers transported, and the passenger
capacity per bus. Headways are adjusted so that leave-behinds would be minimized by increasing the number of
buses being operated. Passengers transported, or bus ridership, was based on an average busy day for rental car
transactions during both a peak month (March 15, 2019) and an off-peak month (May 16, 2019). The figures were
derived from programming data provided to Ricondo in 2019 by the rental car companies operating at PSP. The
ratio of passengers per rental vehicle was assumed to be 2.5 during peak months (January through April, November,
and December) and 2.0 during off-peak months (May through October), and this ratio was used to calculate peak
hour ridership on the shuttle buses. Ridership was assumed to grow at the same rate as the baseline passenger
forecast scenario for the Airport. This analysis also assumed that transit-size buses (approximately 40 feet long)
would be used and that each bus will accommodate 35 passengers, which includes both sitting and standing
passengers and their luggage.
Table 4-1 depicts the peak period bus fleet requirements for 2026 (first day of CONRAC operation), 2030, 2035, and
2040 for both fixed headway and passenger driven headways. Bus fleet needs are based on the peak period
requirements and assume the required peak period fleet could accommodate the off-peak periods as well. The total
fleet requirement also includes a 25 percent contingency to account for buses out of service for maintenance,
breakdowns, or to serve unexpected peaks in demand, rounded up.
Item 2C - 28
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 4-4 |
TABLE 4-1 FORECAST OF PEAK PERIOD BUS FLEET REQUIREMENTS
OFF-PEAK MONTHS1 PEAK MONTHS2
2026 2030 2035 2040 2026 2030 2035 2040
Fixed Headway
Buses Required 2 2 2 2 3 3 3 3
Spare Fleet 1 1 1 1 1 1 1 1
Total Bus Fleet Requirement 3 3 3 3 4 4 4 4
Peak Period Headway(min.) 10.0 10.0 10.0 10.0 7.0 7.0 7.0 7.0
Passenger Demand Driven Headway
Buses Required 2 3 3 3 5 6 6 7
Spare Fleet 1 1 1 1 2 2 2 2
Total Bus Fleet Requirement 3 4 4 4 7 8 8 9
Required Peak PeriodHeadway (min.) 8.6 7.5 7.5 6.7 3.5 3.3 3.0 2.7
NOTES:
1 Off-Peak Months = May through October.
2 Peak Months = January through April, November, and December.
SOURCE: Ricondo & Associates, Inc., December 2020.
4.4 ANNUAL BUSING COST FORECAST
Annual busing costs were calculated using the total annual hours of operation multiplied by an assumed hourly cost
of operation. The annual hours of operation for peak months and off-peak were calculated by totaling the number
of buses required for each hour of the day and multiplying by 365 days. The hourly cost was based on a benchmark
of available cost information for airport CUT systems at other airports in the US, as shown in Table 4-2. Specifically,
the benchmark airports include two economy parking shuttle bus operations (O’Hare and Pittsburgh International
Airports) and one rental car facility shuttle (Oakland International). The benchmark costs are “all-in” and include bus
fleet lease or amortization, operations and maintenance, labor, and operator profit.
TABLE 4-2 ANNUAL BUSING COST BENCHMARK
AIRPORT BASE YEAR HOURLY COST (YEAR) 2020 HOURLY COST1
O’Hare International Airport (ORD)
Economy Parking Shuttle Bus
Source: O’Hare International Airport, 2015
$82.70 (2015) $90.85
Pittsburgh International Airport (PIT)
Economy Parking Shuttle Bus
Source: Grant Oliver Corporation (Busing Operator), 2013
$74.63 (2013) $83.42
Oakland International Airport (OAK)
Rental Car Facility Shuttle Bus
Source: AvAirPros (Tenant Representative), 2008
$122.57 (2008) $148.24
AVERAGE $93.30 $107.50
NOTE:
1 2020 costs reflect the base year cost grown by the annual inflation rate (per U.S. Bureau of Labor data). Cost include bus fleet lease or amortization, operation,
and maintenance, labor, and operator profit.
SOURCES: Ricondo & Associates, Inc., December 2020., U.S. Bureau of Labor, December 2020.
Item 2C - 29
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 4-5 |
Using an average cost of $107.50 per hour, the total annual costs were weighted based on operating six peak
months and six off-peak months. The forecast annual cost for the CUT system at the Airport was calculated for fixed
and passenger demand driven headway operations for 2026, 2030, 2035, and 2040, as shown in Table 4-3.
TABLE 4-3 FORECAST ANNUAL BUSING COST
2026 2030 2035 2040
Fixed Headway $1,883,000 $2,049,000 $2,276,000 $2,529,000
Passenger Demand Driven Headway $2,590,000 $3,159,000 $3,889,000 $4,531,000
Difference $707,000 $1,110,000 $1,613,000 $2,002,000
NOTE:
1 Costs are rounded to the nearest 1,000.
SOURCE: Ricondo & Associates, Inc., December 2020.
4.5 RECOMMENDATION
Ricondo recommends a CUT bus operation based on passenger demand driven headways to transport passengers
between the passenger terminal and South Site. Operations based on passenger demand driven headways provides
a higher level of customer service than a fixed headway operation. Furthermore, unlike a remote public parking
operation, a CONRAC shuttle operation would generally provide a higher level of service because customers would
not generally encounter long wait times and would be able to board the first bus that arrives at the curbside.
Table 4-4 summarizes the fleet requirements and cost for a passenger demand driven headway busing operation.
TABLE 4-4 FLEET REQUIREMENT AND ANNUAL COST FOR PASSENGER DEMAND DRIVEN HE ADWAY
BU SING OPERATION
2026 2030 2035 2040
Fleet Requirement (Off-Peak Month/Peak Month) 3/7 4/8 4/8 4/9
Annual Cost $2,590,000 $3,159,000 $3,889,000 $4,531,000
NOTE: Costs are rounded to the nearest 1,000.
SOURCE: Ricondo & Associates, Inc., December 2020.
Item 2C - 30
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-1 |
5.C FC F UNDING C APACITY A NALYSIS
5.1 M ETHODOLOGY
For the CFC Capacity Analysis, Ricondo performed the following tasks:
Collected the Airport’s historic monthly passenger statistics, rental car transactions, rental car transaction days,
CFC collection amounts, current CFC and Indenture account balances, and other related financial information
for the period October 1, 2019 – June 30, 2020 from the City.
Developed three passenger forecasts for FY 2020 through FY 2050 (as described in Section 2).
Selected a passenger forecast scenario for use in projecting CFC revenue for the Projection Period (as described
in Section 3).
Developed a forecast of rental car activity and CFC collections for the Projection Period based on actual FY 2020
rental car transactions and transaction days obtained from the Airport’s historical average ratio of rental car
transactions to enplaned passengers.
Prepared projections of annual CFC revenues, Surplus Fund Ending Balances, Annual Debt Service Coverage
Ratios, Annual Debt Service Payments, Estimated CFC Pay-As-You-Go (PAYGO) Capacity, and total bond
capacity available for project funding over the projection period, based upon the following CFC rates: $10.00
per transaction; $6.00 per transaction day; $7.00 per transaction day; $8.00 per transaction day; and $9.00 per
transaction day.
5.2 ASSUMPTIONS
Table 5-1 outlines Ricondo’s key assumptions for the CFC Capacity Analysis.
TABLE 5-1 C FC CAPACITY A NALYSIS – KEY ASSUMPTIONS
Project Implementation Schedule
CFC Revenues:
CFC Increase Start Date 7/1/2021
Facility Construction Start (Beginning Third Quarter FY 2023) 1/1/2023
Facility Construction Complete 1/1/2026
Financing Assumptions
Bond Issue Timed Near Beginning of Construction
Starting Balance CFC Account as of June 30, 2020 $24,151,639
Minimum Required Balance CFC Account $3,000,000
Bond Assumptions - Series 2023 Special Facilities:1
Interest Rate - Taxable 5.50 percent
Capitalized Interest (in months) 0
Cost of Issuance 1.00 percent
Debt Service Coverage Requirement (times debt service) 1.50
SOURCE: Ricondo & Associates, Inc., December 2020.
Item 2C - 31
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-2 |
5.3 CFC FUNDING CAPACITY PROJECTIONS
Table 5-2 and Exhibit 5-1 summarize estimated CFC funding capacity and total estimated CFC funding capacity in
each assumed CFC rate scenario. All per transaction day rates are capped at the five-day maximum collection period
as stipulated in the CFC Statute.
Appendix B through Appendix D provide the detailed forecast back-up data developed by Ricondo to perform
the analysis of these rates of the estimated CFC funding capacity, based on alternative scenarios for which is the
cost of bussing is excluded for 20-, 25-, and 30-year bond amortization periods. It should be noted that the funding
capacity ranges from $49,039,298 (based on a $10.00 per transaction CFC with a 20-year bond term amortization)
to $121,826,693 (assuming a $9.00 per transaction day (5-day maximum) with a 30-year bond amortization period).
The $9.00 per transaction day (5 day maximum) rate generates the greatest CFC funding capacity to construct the
CONRAC.
TABLE 5-2 SUMMARY OF ESTIMATED CFC FUNDING CAPACITY FOR PROJECT COSTS
ESTIMATED CFC
PAYGO C APACITY1
NET BOND
CAPACITY2
TOTAL ESTIMATED
FUNDING CAPACITY3
20-Year Bond Term Amortization
CFC Rate
$10.00 Per Transaction $30,658,092 $18,381,206 $49,039,298
$6.00 Per Transaction Day $38,184,725 $41,450,202 $79,634,927
$7.00 Per Transaction Day $40,438,691 $48,358,569 $88,797,261
$8.00 Per Transaction Day $42,692,658 $55,266,936 $97,959,594
$9.00 Per Transaction Day $44,946,624 $62,175,303 $107,121,927
25-Year Bond Term Amortization
CFC Rate
$10.00 Per Transaction $30,658,092 $20,837,907 $51,495,999
$6.00 Per Transaction Day $38,184,725 $46,990,141 $85,174,866
$7.00 Per Transaction Day $40,438,691 $54,821,831 $95,260,523
$8.00 Per Transaction Day $42,692,658 $62,653,522 $105,346,179
$9.00 Per Transaction Day $44,946,624 $70,485,212 $115,431,836
30-Year Bond Term Amortization
CFC Rate
$10.00 Per Transaction $30,658,092 $22,717,613 $53,375,705
$6.00 Per Transaction Day $38,221,386 $51,228,939 $89,450,324
$7.00 Per Transaction Day $40,475,352 $59,767,095 $100,242,447
$8.00 Per Transaction Day $42,729,318 $68,305,252 $111,034,570
$9.00 Per Transaction Day $44,983,285 $76,843,408 $121,826,693
NOTES:
1 Estimated CFC Pay-as-You-Go (PAYGO) Capacity reflects CFCs available to fund project costs on a pay-as-you go basis through July 1, 2025.
2 Net Bond Capacity reflects the net CFC bond proceeds available for project cost after cost of issuance and debt service reserve.
3 CFC funding capacity for projected costs does not include common busing costs; common busing costs would only impact the CFC cash flow after bond issuance
and would be a function of the facilities Date of Beneficial Occupancy.
SOURCE: Ricondo & Associates, Inc., December 2020.
Item 2C - 32
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-3 |
EXHIBIT 5-1 CFC CAPACITY ANALYSIS FORECAST – TOTAL ESTIMATED CFC FUNDING CAPACITY
SOURCE: Ricondo & Associates, Inc., December 2020.
This CFC Capacity Analysis is not and shall not be considered to be a recommendation or advice to the City with
respect to the issuance of municipal securities. Ricondo is not registered as a municipal advisor under Section 15B
of the Securities Exchange Act of 1934. The assumptions included in this Analysis have been derived from general,
publicly available data approved by the City. Ricondo owes no fiduciary duty to the City. The City should discuss the
information and analysis contained herein with internal and external advisors and experts that the City deems
appropriate before taking any action. Any opinions, assumptions, views, or information contained herein are not
intended to be, and do not constitute, “advice” within the meaning of Section 15B of the Securities and Exchange
Act of 1934.
5.4 PROJECT C OST ESTIMATES
Gensler provided the City and Ricondo with ROM project cost estimates for the CONRAC North Site, South Site, and
Split Site. Aerial imagery showing the approximate location of each alternative is shown in Appendix A.
As part of the Basis of Design process, Gensler developed a ROM cost estimate for each alternative, as shown in
Table 5-3. These cost estimates are for the CONRAC facility only, and do not include any enabling project work that
may be necessary. For example, construction on the North Site would require relocation of the Customs and Border
Patrol and United Service Organizations (USO) facilities. Additionally, as described in Section 4, the South Site would
require shuttling rental car customers between the CONRAC and passenger terminal. The cost estimate for the initial
year of busing for the South Site is shown in Table 5-4.
TABLE 5-3 ROUGH ORDER OF MAGNITUDE P ROJECT OPTION COSTS
SOUTH SITE SPLIT SITE NORTH SITE
CONRAC Estimates1Rough Order of Magnitude Estimate (millions)1 $187.2 $191.0 $178.4
NOTE:
1 ROM estimate does not include cost for construction of new US Customs and Border Protection facility and United Service Organization (USO) facility.
SOURCE: Gensler/Connico Rough Order of Magnitude Cost Estimates, April 2020.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
20-Year25-Year30-Year20-Year25-Year30-Year20-Year 25-Year 30-Year 20-Year 25-Year 30-Year 20-Year 25-Year30-Year
$10.00/Trans $6.00/Day $7.00/Day $8.00/Day $9.00/Day
Total Estimated Funding Capacity Estimated CFC PAYGO Capacity
$49M $52M $53M
$80M $85M $90M $89M $95M $100M $98M $105M$111M $107M$115M $122M
Item 2C - 33
• •
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-4 |
TABLE 5-4 SUMMARY OF YEAR ONE B USING C OSTS (SOUTH SITE ONLY)
SOUTH SITE SPLIT SITE NORTH SITE
Annual Busing Costs (millions)1 $2.6 $0 $0
NOTE:
1 Annual busing costs shown for South Site is for year one from Date of Beneficial Occupancy. Annual busing costs increase as described in Section 4.
SOURCE: Ricondo & Associates, Inc., December 2020.
5.5 CFC FUNDING CAPACITY GAP
Assuming a $9.00 per transaction day CFC over a 30-year amortization period, the total estimated CFC funding
capacity is approximately $122.0 million. The project cost estimates for each alternative CONRAC site would
therefore exceed available funding by the following amounts (approximately):
South Site: difference of $65 million
Split Site: difference of $69 million
North Site: difference of $56 million
These funding gaps are shown in Exhibit 5-2. As Exhibit 5-2 notes, constructing the CONRAC at the South Site
would require an additional estimated $53.2 million in busing costs through 2040, or an average of $3.3 million per
year. Because these operating costs are not part of the planning, design, and construction of the South Site, they
are not included in the CFC funding capacity analysis, however, busing represent a significant additional annual
expense to be considered for the South Site.
5.6 CONRAC AFFORDABILITY O PTIONS
To close the projected funding gap, the City should consider several potential options. Each option offers specific
benefits and challenges, and at this time Ricondo is not making a recommendation among them. Four potential
strategies are as follows:
defer CONRAC construction to increase CFC Fund cash balance
scale back CONRAC facility program requirements to lower project cost
phase CONRAC facility construction
exclude common busing operating costs for CFC eligibility (i.e.: rental car companies responsible for this cost)
It should be noted that that regardless of which option is considered, it is recommended that the City initiate the
process required by the CFC Statute to transition to the $9.00 per day CFC effective July 1, 2021.
Ricondo developed an analysis based on the first of the four strategies outlined above, “defer CONRAC construction
to build the CFC Fund cash balance” to gain an understanding of the timeframe needed to defer construction to
accumulate enough cash balance to finance the CONRAC at each alternative site. Table 5-5 shows the amount by
which the CFC cash balance would be increased if construction were delayed until 2031, 2032, and 2033, under each
of the three Site options.
Item 2C - 34
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-5 |
EXHIBIT 5-2 CFC REVENUE GAP ANALYSIS1
NOTE:
1 CFC funding capacity shown at $9.00 per day per transaction assumes a 30-year bond amortization. All CFC funding scenarios assume a CFC change to $9.00/day
in July 2021.
SOURCES: Ricondo & Associates, Inc., December 2020; Gensler/Connico Rough Order of Magnitude Cost Estimates, April 2020.
TABLE 5-5 8-YEAR, 9-YEAR, AND 10-YEAR CONRAC C ONSTRUCTION D EFERRAL O PTIONS
NORTH SITE1 SPLIT SITE1 SOUTH SITE1 ,2
Project Start 2031
Funding at $9.00/Day3 $212.7 $212.7 $212.7
Project Cost 4 ($209.7) ($225.0) ($220.3)
Difference $3.0 ($12.3) ($7)
Project Start 2032
Funding at $9.00/Day3 $225.0 $225.0 $225.0
Project Cost 4 ($212.8) ($228.4) ($223.6)
Difference $12.2 ($3.4) $1.4
Project Start 2033
Funding at $9.00/Day3 $237.6 $237.6 $237.6
Project Cost 4 ($216.0) ($231.8) ($226.9)
Difference $21.6 $5.8 $10.7
NOTES:
1 All figures in millions of dollars unless otherwise stated.
2 Once construction is complete the South Site would also include annual busing costs not reflected here.
3 CFC funding capacity shown at $9.00 per day assumes a 30-year amortization. All CFC funding scenarios assume a CFC change to $9.00/day in July 2021.
4 Project costs beyond 2023 start date increased by an inflation rate of 1.5 percent annually.
SOURCE: Ricondo & Associates, Inc., December 2020.
$122 $122 $122
$56 $69 $65
$-
$50
$100
$150
$200
$250
North Site Split Site South Site(USD, in millions)Funding at $9/Day Gap
$178M $191M $187M
Total
Project
Cost
Total
Project
Cost
Total
Project
Cost
South Site also includes an estimated $53.2 million in busing costs through 2040 not reflected here.
Item 2C - 35
• •
r
I
I
I
I
I
I
I
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 5-6 |
Regardless of the current estimated funding gap for the CONRAC, this CFC Analysis demonstrates that
continuation of the Airport’s current $10.00 per transaction CFC methodology yields the lowest funding
capacity of all the per-day rates evaluated. Therefore, the current $10.00 per transaction fee will not generate
sufficient revenue to finance the reasonable costs of the CONRAC. This CFC Analysis further concludes that
transitioning to a $9.00 per transaction day CFC methodology (capped at five days) would generate the
highest level of CFC funding capacity for the CONRAC and that to maximize CFC funding capacity the City
should consider transitioning to this rate methodology as soon as practical.
Item 2C - 36
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis | 6-1 |
6.I MPLEMENTATION OF P ER T RANSACTION D AY
CFC
To proceed with the conversion of the Airport’s existing per transaction CFC rate to a per transaction day CFC, the
CFC Statute requires the City to hold a Brown Act public hearing to review the reasonable costs of financing,
designing, and constructing the CONRAC facility (California Government Code 54950 et seq). If applicable (i.e., if the
South Site were selected), this hearing must also address the costs of financing, designing, and operating a CUT
system to move passengers between the passenger terminal and the CONRAC, including the acquisition of vehicles
for use in the system (collectively, the Project). At the Brown Act public hearing, the City is required to provide the
following:
a detailed description of the established reasonable Project costs;
a determination that the current CFC ($10.00 per transaction) will not generate sufficient revenue to finance the
reasonable Project costs;
an indication that the cost of the Project requires the additional revenue that would be generated by the new
(per transaction day) CFC;
a description of the steps the City would take to limit Project costs;
a description of any funding alternatives the City has explored for covering Project costs (here, other than the
collection of the new (per transaction day) CFC;
a calculation of the annual costs for operating a CUT system that moves passengers between the passenger
terminal and the CONRAC, including the acquisition cost for system vehicles; and
a description of whether, and the extent to which, the City will require rental car companies and other businesses
using the facility and CUT system to pay for its use, other than through the CFC.
Prior to scheduling and conducting the Brown Act public hearing, the CFC Statute requires that the airport sponsor
engage the services of an independent auditor to verify the matters listed in Section 50474.21 (subsection(b)(4)(B)(i)).
In the case of a CFC for a CUT system, the audit shall also consider the reasonable costs of providing the CUT system.
Upon completion of the independent audit, the City is required to file a report with the State of California and post
the report on the City’s website. Additionally, at the conclusion of the Brown Act public hearing, the City must
complete a “compliance report” to support implementation of the alternate CFC. This report will include the Brown
Act public hearing “findings,” as required under the CFC Statute, as well as and the independent auditor’s report
described above.
The City should also hold an informational meeting with the rental car companies serving the Airport to discuss the
findings of the compliance report, the independent audit, and outline the schedule for consideration of the
proposed CFC Ordinance by City Council.
Following adoption of the CFC Ordinance by City Council, letters should be sent to the rental car companies notifying
them of the new CFC and stating that the alternative per-transaction day CFC will be effective within 60 days of the
notification.
Item 2C - 37
APPENDIX A
Palm Springs International Airport –
Approximate Location of Alternative
Rental Car Facility Sites
Item 2C - 38
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
Customer Facility Charge and Common Transportation Analysis Appendix A
EXHIBIT A-1 PALM SPRINGS INTERNATIONAL AIRPORT - APPROXIMATE LOCATION OF ALTERNATIVE RENTAL CAR FACILITY SITES
SOURCE: Gensler CONRAC Facility Concepts, Palm Springs International Airport, Project Update: CONRAC/CBP/USA presentation, August 2020.
Item 2C - 39
EALEJORD
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,.......
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APPENDIX B
Projected CFC Revenue and Funding
Capacity – 20 Year Debt
(Busing Included)
Item 2C - 40
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-1 | Item 2C - 41
DRAFT
Projected CFC Revenue and Funding
Capacity -20 Vear Debt
Busing Included
ru!!m I RICONDOQI
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-2 | Item 2C - 42
DRA FT
P1rojected CFC Revenue and Fund ing Capacity -2,0 Vear
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111 11111 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity P.na~sis I December 2020 8
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-3 | Item 2C - 43
DRA FT
P1rojected CFC Revenue and Fund i ng Capac i ty -2 ,0 Year
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111111111 RICO ND 10 Palm Springs International A.irport Customer Facility Charge Capacity A.nalysis I December 2020 9
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-4 | Item 2C - 44
DRA FT
Projected CFC Revenue and Fund·1ng Capacity -2,0 Year
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111111111 RICO ND 0 Palm Springs International Airport Customer Facility Charge Capacity Ana~sis I December 2020
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10
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-5 | Item 2C - 45
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -2,0 Year
Debt -$8.,00 CFC Per Day - 5 Day Limit (Bus ing l1nc l uded)
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111 111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020
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11
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-6 | Item 2C - 46
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -2,0 Year
Debt -$9.,00 CFC Per Day - 5 Day Limit (Bus ing l1nc l uded)
-1-1<;1 gs,
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12
APPENDIX C
Projected CFC Revenue and Funding
Capacity – 25 Year Debt
(Busing Included)
Item 2C - 47
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 48
DRAFT
Projected CFC Revenue and Funding Capacity -
25 Year Debt
Busing Included
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 49
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -25 Year
Debt -$1 ,0.,0 ,0 CFC Per Transacti on (Bus i ng Included)
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111 111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020 14
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 50
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -25 Year
Debt -$6.,00 CFC Per Day -5 Day Limit (Bus i ng l 1nc l uded)
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PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 51
DRA FT
Projected CFC Revenue ,and Fund i 1ng Capac ity -25 Year
Debt -$7.,00 CFC Per Day - 5 Day Limit (Bus i ng l 1nc l uded)
-
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15
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 52
DRA FT
Projected CFC Revenue ,and Fundi1ng Capacity -25 Year
Debt -$8.,00 CFC Per Day -5 Day Limit (Busing l 1ncluded)
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17
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis Item 2C - 53
DRA FT
Projected CFC Revenue ,and Fund i 1ng Capac ity -25 Year
Debt -$9.,00 CFC Per Day - 5 Day Limit (Bus i ng l 1nc l uded)
-1-1<;1 gs,
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18
APPENDIX D
Projected CFC Revenue and Funding
Capacity – 30 Year Debt
(Busing Included)
Item 2C - 54
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-1 | Item 2C - 55
DRAFT
Projected CFC Revenue and Funding Capacity -
30 Year Debt
Busing Included
11111111 I RICO N D 0~
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-2 | Item 2C - 56
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -30 Year
Debt -$1 ,0.,0 ,0 CFC Per Transacti on (Bus i ng Included)
-m WMWRWW -MAW.WW& -4¥
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20
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-3 | Item 2C - 57
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -30 Year
Debt -$6.,00 CFC Per Day -5 Day Limit (Bus i ng l 1nc l uded)
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111 111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020
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2 1
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-4 | Item 2C - 58
DRA FT
Projected CFC Revenue ,and Fund i1ng Capac ity -30 Year
Debt -$7.,00 CFC Per Day -5 Day Limit (Bus i ng l 1nc l uded)
-
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111 111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020
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22
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-5 | Item 2C - 59
DRA FT
Projected CFC Revenue ,and Fundi 1ng Capacity -30 Year
Debt -$8.,00 CFC Per Day -5 Day Limit (Busing l 1ncluded)
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111111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020 2 3
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-6 | Item 2C - 60
DRA FT
Projected CFC Revenue ,and Fund i 1ng Capac ity -30 Year
Debt -$9.,00 CFC Per Day -5 Day Limit (Bus i ng l 1nc l uded)
-1 JC,; lC•l 1414 21l
Z.26Ji, Z.16Ji, Z.C!BJi, ZOO'//, Z.00~ zoo,
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111 111 11 RICO ND 0 Palm Springs International Airport I Customer Facility Charge Capacity A.nalysis I December 2020
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24
APPENDIX E
Projected CFC Revenue and Funding
Capacity – 20 Year Debt
(Busing Not Included)
Item 2C - 61
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-1 | Item 2C - 62
DRAFT
Projected CFC Revenue and Funding Capacity -
20 Year Debt
Busing Not Included
ID!!ill I RICONDO.
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-2 | Item 2C - 63
DRAFT
Projected CFC Revenue and Funding Capacity
Debt $10.00 CFC Per Transaction (No Busing)
20 Vear
Projected CFC Revenues
Tota! Ennlaned Passenners 11 928,730 830,460 1,215,631
Eno[aned Passenaer Annual Growth Rate-; -27,19% -10.58% 46.38%
Rental Car Transactions oer Enolaned Passenaer 21 0,20 0,20 0,20
Rental Car Transactions 185,266 165,663 242,498
Rental Car Transactions Annual Growth Rates -27,95% -10.58% 46.38%
Averaqe Lenqth of Rental Car Transaction 31 3,50 350 350
CFC Rate Iner transaction\ $ 10,00 ' 10,00 $ 10,00
Annual CFC Revenues Sl,852,660 Sl,656,628 $2,424,980
CFC Acoount :
Bea inn ina Balance 41 S24, 151,639 $26,004,299 S27,660,927
De oosi t Annual CFC Revenues $1,852,660 $1,656,628 $2,424,980
Less: PAYGO Used for ProiectFundina $0 $0 $0
less: O&M Costs SI $0 $0 $0
less: DebtSer.1ce $0 $0 $0
Endina Balance S26 004 299 $27 660 927 $30 085 907
Estimated Debt Service Coveraae Ratio N/A NIA NIA
ars) 20
5,50%
Debt Service Covera e Re uirement (bmes debt service) 15
Net Revenues Available for Debt Service $1,695,376
Amortization Factor 0,08
Estimated Fundin Ca adt
Total Estimated Bond Par Amount $20,260,394
Re uired Bond De os1ts:
Cost of Issuance 1.00% $181812
Debt Service Reserve $1,695,376
Ca italized Interest $0
Bond Capadty (Proceeds Availablefor Project Funding) $18,381,206
Estimated CFC PAYGO Ca aci $30,65a092
Total Fun din Ca adt $49,039,298
NOTE :
1/ Prqjected Total Enpjaned Pamngers provided byRicondo.
2/ Projected Tota! Rertal CarTransacbons perEnplanement based on Actual FY2017-FY2020 rertal car transactions dWided DJ! total enplaned passengers .
3/ Projected Averag e length of Rtntal Car Transaction provided try Palm Sptings lnttrnat:ioml Airport:.
4/ Beginning Balance for FY 2021 reflect current CFC AccOIXlt balance as of June 30, 20:D.
5/ The state ofCaHfomia do es not permit Operating and Maintenance Costs as eligible expense to be funded \Ml:hCFC s.
SOURCE S: Palm Sptingi lntem&ional Airport: (histotical in formation]; Ricondo &Associatei, !nc. (forecasts)
1,274,827 1,305,103 1,335,502 1,365,625 1395,182
4.87% 2.37% 2.33% 2,26% 2.16%
0,20 0,20 0,20 0,20 0,20
254,306 260,346 266,410 272.419 27a315
4.87% 2.37% 2.33% 2.26% 2.16%
350 350 350 350 350
s 10,00 $ 10,00 $ 10,00 I 10,00 $ 1000
$2,543,064 $2,603,460 $2,664,102 $2,724,193 $2,783,153
$30,085,907 $6,781,283 S3,000,000 $3,000,000 $4,028,816
$2.541064 $2,603,460 $2,664,102 $2,724,193 $2.783,153
$25,000,000 $4,689,367 $968,726 $0 $0
$0 $0 $0 $0 $0
$847,688 $1,695,376 $1,695,376 $1,695,376 $1,695,376
$6 781283 $3 000 000 $3 000 000 S4 028 816 $5 116 593
1.50 1.54 1.57 1.61 1.64
Pa l m Springs Internat iona l Airport I Customer Fac il ity Charge Capacity Ana lysis I December 2020
2030 2035 2040
1,424,213 1.452.765 1,481,889 1,636.50f 1,807,259
2.08% 2 .00% 2 .00% 2.00~ 2.00%
0,20 0,20 0,20 0,2( 0,20
284,106 289,802 295,612 326.45< 360,518
2.08% 2.00% 2.00% 2.00~ 2.00%
350 350 350 35C 350
I 10,00 $ 10,00 $ 10,00 $ 10,00 I 10,00
S2,841,065 $2,898,021 S2,956, 120 $3,264,557 $3,605,177
S5, 116,593 $6,262,282 S7,464,927 S14,373,277 $22,886,901
$2,841,065 12.89ao21 $2,956,120 $1264,55 $3,605,177
$0 $0 $0 $( $0
$0 $0 $0 $( $0
$1,695,376 $1,695,376 $1,695,376 $1,695,37( $1,695,376
$6 262 282 $7 464 927 $8 725 670 $15 942458 $24 796 702
1.68 1.71 1.74 )_g-2.13
26
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-3 | Item 2C - 64
DRAFT
Projected CFC Revenue and Funding Capacity 20 Vear
Debt -$6.00 CFC Per Day - 5 Day Limit (No Busing)
--Pro·ected CFC Revenues:
Total Enplaned Passenqers 11 928,730
Enplaned Passenqer Annual Growth Rates -27,/9%
Rental Car Transactions 185,266
Total Rental C¥ Transaction Davs - 5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27,95%
CFC Rate (per transaction) $ 10.00 $
CFC Rate (per transaction day) $ I
Annual CFC Revenues $1,852,660
CFC Account:
Beainnina Salanc.e 21 $24,151,639
Deposit Annual CFC Revenues $1,852,660
Less: PAYGOUsed for Project Fundinq $0
Less: O&M Costs~, $0
Less: Debt Service 10
Endina Balance $26,004,299
Estimated Debt Service Coverane Ratio NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 20
Cou onRate 5.50%
Debt Service Cevera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Set"l,lice $3823127
Amortization Factor 0,08
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $4~687,831
Re uired Bond De osits:
Cost of Issuance 1.00% $414,502
Debt Service Reserve $3823127
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Projed Funding) $41 ,450,202
Estimated CFC PAYGO Ca aci 13a 184,725
Total Fun din Ca adt $79 634 927
NOTES:
1/ Prc;ected Total Enplaned Passengers pro,'ided by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 203.J.
3/ The state of California does not ~rmit Oper~ing and Maintenance Costs as eligible expense to be funded 'Mth CFCs.
SOURCES: Pa m Springs International Airport {historical infofmatio~; Ricondo &Associates, Inc. (furecasts)
.QWAI
830,460 1,215,631
-1058% 4638%
165,663 242,498
622 625 911 401
-10,58% 46,38%
10.00 $
$ 6,00
$1 ,656,628 $5,468,407
$26,004,299 $27,660,927
$1,656628 $5,468,407
$0 $0
$0 $0
$0 $0
$27,660,927 $33,129,334
NIA NIA
PROJECTED
.QC ·=•· A
1.274,827 1,305,103 1.335.502 1,365,625 1,395,182
4,87% 237% 233% 2.26% 2,/6%
254,306 260,346 266,410 272,419 27[315
955 782 978481 1 001 272 1,023 857 1 046016
4 ,87% 237% 233% 2.26% 2,16%
$ $ $ $ $
I 6.00 $ 6 ,00 $ 6,00 $ 6.00 $ 6,00
$5,734,691 $5,870,885 $6,007,634 $6,143,141 $6,276,099
$33, 129,334 S11,952,461 $3,000,000 $3,000,000 $5,320,014
$5,734,691 $5,870,885 $6,007,634 $6,143,141 $6,276099
$25,000,000 $11,000,218 $2,184,507 $0 $0
$0 $0 $0 $0 10
$1,911,564 $l823127 13,823,127 $3,823,127 $3823127
$11,952,461 $3,000,000 $3,000,000 S5,320 014 S7,772,9 85
/,50 1,54 1.57 1.61 1,64
Pa lm Spri ngs International Airport I Customer Faci lity Charge Capacity Analysis I December 2020
i4U .QA
1.424,213 1,452765 1.481,889 1,636.508 1,807,259
2,08% 2,00% 2,00% 2.00% 2,00%
284,106 289,802 295,61, 326,456 360,51E
1,067782 1089188 11 11 024 1 226 947 135496~
2 ,08% 2.00% 2,00% 2,00% 2,00~
$ $ $ I $
$ 6.00 $ 6.00 $ 6,00 $ 6.00 $ 6,00
$6,406,691 $6,535,130 $6,666,144 $7,361,680 SB, 129,788
$7,77 2,985 $10,356,549 $13,068,552 S28,647, 101 $47,845,594
$6,406,691 $6535, 130 $6,666,144 $7,361,680 $[ 129,788
10 10 10 $0 $(
$0 $0 $( $0 $(
$3,823,127 $3823127 $3,823,127 $3,823,127 $3823127
$10,356,549 S 13,068,552 $15,911,569 $32, 185,65• $52,152,255
1,68 1,71 1.74 1,93 2 ,13
27
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-4 | Item 2C - 65
DRAFT
Projected CFC Revenue and Funding Capacity -20 Year
Debt $7.00 CFC Per Day 5 Day Limit (No Busing)
"* Proiected CFC Revenues
Total Enolaned Passenaers 11 928,730 830,460
Envlaned Passenaer Annual Growth Rates -27.19% -10.58%
Rental Car Transactions 185,266 165,663
Total Rental Car Transaction Da\l<: • 5 Da\1s or Less 696 301 622 625
Rental Car Transactions Annual Growth Rates -27.95% -10.58%
CFC Rate (oer transaction) $ 10.00 $ 10.00
CFC Rate (oer transaction dav) $
Annual CFC Revenues $1 852,660 $1 656.628
CFC Acoount:
Beainnina Balance 21 $24,151 ,639 $26,004.299
Deoosit Annual CFC Revenues $1.852,660 11,65~628
Less: PAYGOUsed for Pro·ect Fundina $0 $0
Less: O&M Costs 31 $0 $0
Less: Debt Service $0 $0
Endina Balance $26,004,2 99 $27.660.927
Estimated Debt Service-Cove-raae-Ratio NIA NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Penod ars 20
Cou onRate 5.50%
Debt Service Cevera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Service $4.460,315
Amortization Factor 0.08
Estimated Fundin Ca adt
Total Estimated Bond Par Amount $53,302,470
Re uired Bond De osits :
Cost of Issuance 1.00% $483,586
Debt Service Reserve $4,460,315
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Project Fu nding) $48,358.569
Estimated CFC PAYGO Ca aci $40.438,691
Total Fun din Ca adt $8 8 797 261
NOTES:
1/ Projected Total Enplaned Passengers pro.'ided by Ricondo.
2/ Beginning Balance fur FY 2021 reflect current CFC Account balance as of June 30, 20~.
3/ The state of C~lifumia does not permit Operating and Maintenance Corts as eligib~ expense to be funded 'with CFCs.
SOURCES: Parn Springs International Airport {historical informatiori; Ricondo &Associates, Inc. (furecasts)
$
$
PRO JECTED
E-4 "* 11-¥-14-
1,215,631 1,274,827 1.305103 1,335,502 1,365,625 1,395,182
46.38% 4.87% 2.37% 2.33% 226% 2.16%
242,498 254,306 260,34 6 266.410 272,419 278,315
911401 955 782 97R481 1 001 272 1 023 857 1 046 016
46.38% 4.87% 2.37% 2.33% 2.26% 2.16%
$ $ $ $ $
7.00 $ 7.00 $ 7.00 $ 7.00 I 7.00 $ 7.00
$6.379,808 $6690 472 $6.849,365 $7.008 906 $7. 166.998 $7,322,115
$2 7.660,927 $34,040.735 $13,501 ,050 $3,000.000 $3,000 000 $5,706.683
$6,379,808 $6,690,472 $~849,365 $7,008,906 $7,166,998 $7,322,115
so $25,000,000 $12890, 100 $2,548,591 $0 $0
$0 $0 $0 $0 $0 10
so $2,230,157 $4,460,315 $4,460,315 $4,460,315 $4,460,315
$34,040,735 $13,501,050 $3,000,000 $3,000.000 $5.706.683 $8,568.483
NIA 1.50 1.54 1.57 1.61 1.64
Palm Springs International Airport I Customer Facility Charge Capacity Analysis I December 2020
14-.;w 2030 2035 2040
1,424,213 1,452,765 1,481,889 1,636,508 1,807,259
2.08% 2.00% 2.00% 2.00% 2.00%
284106 289,802 295612 32~456 360,518
1 067782 1 089 188 1111 024 1 226 947 1 354,965
2.08% 2.00% 2.00% 2.00% 2.00%
$ $ $ $ $
$ 7.00 $ 7.00 $ 7.00 $ 7.00 I 7.00
$7 474.473 $7 624.318 $7.777.168 $8 588,627 $9.484.752
$8 568,483 $11 ,582,641 $14,746.644 $32,921,618 $55,319.860
$7,474,473 $7,624,318 $7.777,168 la588,627 $9,484,752
$0 $0 $0 10 $(
$0 $0 $0 $0 $0
$4,460,315 $4,460,315 $4,460,315 14,460,315 $4,460,315
$11,582.641 $14.746,644 $18,063,497 $3 7.049,930 $60.344.297
1,68 1,71 1.74 1,93 2.13
28
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-5 | Item 2C - 66
DRAFT
Projected CFC Revenue and Funding Capacity 20 Vear
Debt -$8.00 CFC Per Day - 5 Day Limit (No Busing)
--Pro·ected CFC Revenues:
Total Enplaned Passenqers 11 928,730
Enplaned Passenqer Annual Growth Rates -27,/9%
Rental Car Transactions 185,266
Total Rental C¥ Transaction Davs - 5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27,95%
CFC Rate (per transaction) $ 10.00 $
CFC Rate (per transaction day) $ I
Annual CFC Revenues $1,852,660
CFC Account:
Beainnina Salanc.e 21 $24,151,639
Deposit Annual CFC Revenues $1,852,660
Less: PAYGOUsed for Project Fundinq $0
Less: O&M Costs~, $0
Less: Debt Service 10
Endina Balance $26,004,299
Estimated Debt Service Coverane Ratio NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 20
Cou onRate 5.50%
Debt Service Cevera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Set"l,lice $5,097,503
Amortization Factor 0,08
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $60,917,108
Re uired Bond De osits:
Cost of Issuance 1.00% $552669
Debt Service Reserve $5,097,503
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Projed Funding) $55,266,936
Estimated CFC PAYGO Ca aci $42692658
Total Fun din Ca adt $97 959 594
NOTES:
1/ Prc;ected Total Enplaned Passengers pro,'ided by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 203.J.
3/ The state of California does not ~rmit Oper~ing and Maintenance Costs as eligible expense to be funded 'Mth CFCs.
SOURCES: Pa m Springs International Airport {historical infofmatio~; Ricondo &Associates, Inc. (furecasts)
.QWAI
830,460 1,215,631
-1058% 4638%
165,663 242,498
622 625 911 401
-10,58% 46,38%
10.00 $
$ 8.00
$1 ,656,628 S7.291,209
$26.004.299 $27.660,927
$1,656628 $7,291.209
$0 $0
$0 $0
$0 $0
$27,660,927 $34,952.136
NIA NIA
PROJECTED
.QC ·=•· A
1.274,827 1,305,103 1.335.502 1,365,625 1,395,182
4,87% 237% 233% 2.26% 2,/6%
254,306 260,346 266,410 272,419 27[315
955 782 978481 1 001 272 1,023 857 1 046016
4 ,87% 237% 233% 2.26% 2,16%
$ $ $ $ $
I 8.00 $ 8.00 $ 8.00 $ 8.00 $ 8,00
$7,646,254 S7.827,846 ss.010. 119 SB. 190,854 SB.368. 131
$34.952. 136 $15.049.639 $3,000.000 $3,000.000 $6,093,352
$7,646,254 $7,827,846 $8,010,179 $8,190,854 $8368131
$25,000,000 $14,779,982 $2,912,676 $0 $0
$0 $0 $0 $0 10
$2,548,751 $5,097,503 $5,097.503 $5,097.503 $5,097.503
$15,049,639 S3.000.000 n .000.000 $6,093,352 $9,363,980
/,50 1,54 1.57 1.61 1,64
Pa lm Spri ngs International Airport I Customer Faci lity Charge Capacity Analysis I December 2020
i4U .QA
1.424,213 1,452765 1.481,889 1,636.508 1,807,259
2,08% 2,00% 2,00% 2.00% 2,00%
284,106 289,802 295,61, 326,456 360,51E
1,067782 1089188 11 11 024 1 226 947 135496~
2 ,08% 2.00% 2,00% 2,00% 2,00~
$ $ $ I $
$ 8.00 $ 8.00 $ 8.00 $ 8.00 $ 8,00
SB.542,255 SB.713,507 SB.BBB. 192 S9,815,57< S10,839,717
$9,363.980 $12.808,732 $16.424.736 $37,196.135 $62.794.125
$8,542,255 $87B507 $8,888,192 $9,815,574 $10,839.717
10 10 10 $0 $(
$0 $0 $( $0 $(
$5,097,503 $5,097.503 $5,097.50 $5,097.503 $5,097.50
$12,808,732 S 16,424.736 $20,215,425 $41,914.206 $68,536,339
1,68 1,71 1.74 1,93 2 ,13
29
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-6 | Item 2C - 67
DRAFT
Projected CFC Revenue and Funding Capacity 20 Vear
Debt -$9.00 CFC Per Day - 5 Day Limit (No Busing)
Pro·ected CFC Revenues:
Total Enplaned Passenqers 11 928,730
Enplaned Passenqer Annual Growth Rates -27,19%
Rental Car Transactions 185,266
Total Rental C¥ Transaction Davs - 5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27,95%
CFC Rate (per transaction) I 10,00 I
CFC Rate (per transaction day) I $
Annual CFC Revenues $1,852,660
CFC Account:
Beainnina Salanc.e 21 $24. 151,639
Deposit Annual CFC Revenues $1,852,660
Less: PAYGOUsed for Project Fundinq $0
Less: O&M Costs~, $0
Less: Debt Service $0
Endina Balance $26,004 299
Estimated Debt Service Coverane Ratio NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 20
Cou onRate 5.50%
Debt Service Cevera e Re uirement(times debt service) 15
Net Revenues Available for Debt Set"l,lice $5,734,691
Amortization Factor 0,08
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $68,531,747
Re uired Bond De osits:
Cost of Issuance 1.00% $621,753
Debt Service Reserve $5,734,691
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Projed Funding) $62, 175,303
Estimated CFC PAYGO Ca aci $44,946,624
Total Fun din Ca adt S107 121 927
NOTES:
1/ Prc;ected Total Enplaned Passengers pro,'ided by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 203.J.
3/ The state of California does not ~rmit Oper~ing and Maintenance Costs as eligible expense to be funded 'Mth CFCs.
SOURCES: Pa m Springs International Airport {historical infofmatio~; Ricondo &Associates, Inc. (furecasts)
-¥A
830,460 1,215,631
-10,58% 4fi38%
165,663 2424 98
622 625 911401
-10,58% 4fi38%
10.00 $
$ 9.00
S1,656,628 $8,202,610
$26,004,299 $27,660,927
$1 ,656,628 1a202G10
$0 $0
$0 $0
$0 $0
S27,660,927 $35,863,537
NIA N~
PROJECTED
I PA IAAMU
1,274,827 1.305,103 1.335.502 1.365,625 1,395,182
4,87% 237% 233% 2.26% 2,16%
254,306 260,346 266,410 272,419 278,315
955 782 978481 1 001 272 1 023857 1046016
4.87% 237% 233% 226% 2 ,16%
I $ $ $ $
$ 9,00 $ 9,00 $ 9.00 $ 9,00 $ 9,00
$8,602,036 $8,806,327 $9,011,451 $9,214,711 $9,414,148
$35,863,537 $16,598,228 $3,000,000 $3,000,000 $6,480,021
$8,602,036 $8,806,327 $9,011,451 $9,214,71 1 $9.414,148
$25,000,000 $16,669,864 B276,760 $0 $0
$0 10 $0 $0 $0
$2,867,345 $5,734,691 $5,734,691 $5,734,691 $5,734,691
$16,598,228 $3,000,000 $3,000,000 $6,480,021 $10,159,478
1,50 1,54 1,57 1,61 1,64
Pa lm Spri ngs International Airport I C u stomer Faci lity C ha rge Capacity Ana lys is I December 2020
; •=·=
1.424,213 1,452765 1,481,88~ 1,636,50( 1,807,259
2,08% 2,00% 2,00~ 2,00~ 2,00%
284,106 289,802 295,61, 326,45( 360,51E
1 067 782 1 089188 1111 02, 1 22694 135496~
2 ,08% 2,00% 2,00~ 2,00~ 2,00~
$ $ $ I $
$ 9,00 $ 9,00 $ 9.00 $ 9.00 $ 9.00
$9,610,037 $9,802,695 $9,999,216 $11,042,520 $12, 194,682
$10. 159,478 $14,034,824 $18. 102,828 $41,470,652 S70.268,391
$9,610.037 $9,802695 $9,999,2\E $11,04252( $12194,682
$0 $0 $( $( $(
$0 $0 $( $( $(
$5,734,691 $5,734,691 $5,734,691 $5,734,691 $5,734,691
$14,034,824 $18, 102,B2B $22,367,353 $46,778,481 $76,728,382
1,68 1,71 1,7 1,9 2 ,13
30
APPENDIX F
Projected CFC Revenue and Funding
Capacity – 25 Year Debt
(Busing Not Included)
Item 2C - 68
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-1 | Item 2C - 69
DRAFT
Projected CFC Revenue and Funding Capacity -
25 Year Debt
Busing Not Included
ID!!ill I RICONDO.
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-2 | Item 2C - 70
DRAFT
Projected CFC Revenue and Funding Capacity
Debt -$10.00 CFC Per Transaction (No Busing)
25 Vear
--.JS
Pro·ected CFC Revenues:
Total Enolaned Passenaers 1/ 928,730 830,460 1,215,631
Eno{aned Passenaer Annua{Growth Rates -27,19% -10,58% 46.38%
Rental Car Transactions per Enplaned Passenqer 2/ 0,20 0,20 0,20
Rental Car Transactions 185,266 165,663 242,498
Renta{Car Transactions Annual Growth Rates -27.95% -10,58% 46.38%
Averaae Lenath of Rental Car Transaction '31 3.50 3.50 3.50
CFC Rate (oer transaction) $ 10.00 $ 10.00 $ 10.00
Annual CFC Revenues $1,852.660 S1.656,628 S2.424,980
CFC Aca,unt:
Beginning Salance41 $24. 151,639 $26 004.299 $27 660 927
Deaosit Annual CFC Revenues $1,852,660 $1,656,628 $2,424,980
Less: PAYGO Used for Pro ·ect Fundina $0 $0 $0
Less: O&M Costs s, $0 $0 $0
Less: DebtSerY1ce $0 $0 $0
Endina Balance $26 004 299 S27 660 927 S30 085 907
Estimated Debt Service Coveraqe Ratio N/A N/A N/A
Bond Financin Assum ions
Ca ita)ized Interest months
Bond Term Amortization Period ( ars) 25
Cou onRate 5.50%
Debt Service Cevera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Service $1,6%376
Amortization Factor 0.07
Estimated Fun din Ca ac:it
Total Estimated Bond Par Amount $22741,662
Re uired Bond De osits:
Costoflssuance 1.00% 12oa319
Debt Service Reserve $1,6%376
Ca ita!ized Interest $0
Bond Capacity (Proceeds Availablefor Projed: Funding) S20.837,907
Estimated CFC PAYGO Ca aci !30,65ao92
Total Fun din Ca acit $51,495,999
NOTES:
1/ PrQiected Total Enplaned P:rnengcrs pro,,ided by Ricoodo.
2/ PrQiected Total Rental CarT,ans~cbons per Enplanement b•md on Actual FY2017-FY2020 rental cartransacbons d i.'ided by total enplaned passengers.
3/ Projected Average Length of Rental CarTramacbon pro.ided by Palm Springs International Airport.
4/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 20D.
5/ The state of Ca~fomia does not permit Operating and Maintenance Costs as eligible expense to be funded v.l:h CFCs.
SOURCES: Palm Springs International Airport {historica l informatiorij; Ricondo & Associates, Inc. (forecasts)
PROJECTED
A.QW ·• ; •-· 1,274,827 1,305,103 1,335,502 1,36~625 1,395,182
4.87% 2.37% 2.33% 2.26% 2,16%
0,20 0,20 0.20 0.20 0,20
254,306 260,346 266,410 27Z419 21a31s
4.87% 2.37% 2.33% 2.26% 2.16%
3.50 3.50 3.50 3.50 3.50
$ 10.00 $ 10.00 $ 10,00 $ 10.00 $ 10.00
S2.543.064 S2.603.460 $2,664.102 S2.724. 193 $2,783.153
$30 085.907 $6 781,283 $3.000.000 $3,000 000 $4 028 816
$2543.064 $2,603,460 $2,664,102 $2,724,193 $2783,153
$2~000,000 $4 689,367 $968,726 $0 $0
$0 $0 $0 $0 $0
$847,688 $1.695,376 $1,695,376 $1,6%376 $1,695,376
$6 781 283 $3 000 000 $3000 000 $4 028 816 $5 116 593
1.50 1.54 1.57 1.61 1.64
Pa lm Spri ngs Internat ional Airport I C u stomer Faci lity C ha rge Capacity Ana lys is I December 2020
"* .QA
1,424,213 1,452765 1,481,88' 1,63~501 1,807,25'
2,08% 2,00% 2,00% 2,00~ 2,00%
0,20 0,20 0,20 0,2( 0.2(
284,106 289,802 295,612 32~45! 360,518
2.08% 2-00% 2,00% 2.00~ 2.00%
3.50 3.50 3.50 3.5( 3.5(
$ 10.00 $ 10.00 I 10.00 $ 10.00 $ 10.00
$2,841.065 $2,898,021 S2,956. 120 $3,264,557 $3,605.177
S5.116 593 $6,262 282 $7.464.927 $14 373 277 $22.886 901
$2,841,065 12,09ao21 $2,956,120 $3.264,55 $3,605,177
$0 $0 $0 $( $(
$0 $0 $( $( $(
$1,695,376 $1,6%376 $1,695,376 $1,6%37E $1,695,376
$6 262 282 S7 464927 SB 725 670 $15942458 S24 796 702
1.68 1,71 1.7, 1.9, 2.13
32
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-3 | Item 2C - 71
DRAFT
Projected CFC Revenue and Funding Capacity 25 Vear
Debt $6.00 CFC Per Day 5 Day Limit (No Busing)
"* Projected CFC Revenues:
Total Enolaned Passenaers 1/ 928,730 830,460
EnDlane-d Passrnaer Annual Growth Rates -27.19% -10.58%
Rental Car Transacti ons 185,266 165,663
Total Rent.al Car Transaction Dav<: -5 Davs or Less 696 301 622 625
Rental Car TransactionsAnnual Growth Rates -27,19% -10,58%
CFC Rate (p e r transactio n) $ 10.00 $ 10.00
CFC Ra te (oer transaction dav) $
Annual CFC Revenues $1,852,660 $1,656,628
CFC Account:
Beginning Salance u $24,151,639 $26,004,299
Deoosit Annual CFC Revenues $1,852,660 11,65~628
Less: PAYGOUsed for Proi ect Fundina $0 $0
Less: O&M Costs u $0 $0
Less: Debt Service $0 $0
Endinq Balance $26,004,299 $27 GG0,927
Estimated Debt Service Coveraae Ratio NIA NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Pe riod ars 25
Cou onRate 5.50%
De bt Service Ce vera e Re ui reme nt(bme s debt serV1ce) 1.5
$3,823,127
0.07
$51,283,170
$4 69 901
$3,823,127
Ca ita1ized Interest $0
Bond Capacity (Proceeds: Availablefor Project Funding) $46,990,141
Estimated CFC PAYGO Ca aci $38,184 ,725
Total Fun din Ca adt $85 174 BGG
NOTES:
1/ Pr~ected Total Enplaned Passengers pro.i ided byRicondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as or June 30, 203:1.
3/ The state of C~lifomia does not pennit: Operating and Maintenance Costs as eligible expense to be funded with CFCs,
SOURCES: Pam Springs International Airport {histoncat informatio~; Ricondo &Associates, Inc. (forecasts)
1,2 15,631
46.38%
24 2,498
911401
46.38%
$
$ 6 .00
$5,468,407
$27,660,927
$5,468,407
$0
$0
$0
$33,129,334
NIA
PROJECTED
E-4 "* ·= ; a
1,274,827 1,30~ 103 1,335,502 1,365,625 1,395,182
4 .87% 2.37% 2.33% 2 .26% 2 .16%
2 54,306 260,34 6 266,410 272,419 278,315
955 782 9784 81 1 001 272 1 023 857 1 04 6 016
4 .87% 2.37% 2.33% 226% 2,16%
$ $ $ $ $
$ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00
$5,734,691 $5,870,885 $6,007,634 $6,143,141 $6,276,099
$33,129,334 S 11 ,952,461 $3,000,000 $3,000,000 $5,320,014
$5,734,691 $~870,885 $6,007,634 $6,143,141 $6,276,099
$25,000,000 $11,000,218 $2,184,507 $0 $0
$0 $0 $0 $0 $0
$1 911 ,564 BBn127 $3,823,127 $3,823,127 $3,823 127
$11,952,461 $3,000,000 $3,000,000 $5,320,014 $7,772,985
J,50 J,54 /,57 /,61 1.64
Pa lm Spr ings Internationa l Airport I Customer Faci lity Charge Capacity Ana lysis I December 2020
;g_ .;a
1,424,213 1,452,765 1,4 81,889 1,636,508 1,807,259
2.08% 2 .00% 2.00% 2.00% 2.00%
284,106 289,802 2%612 32~456 360,518
1 067782 1 089 188 1111 024 1 226 94 7 1 354 965
2.08% 2,00% 2-00% 2.00% 2,00%
$ $ $ $ $
$ 6.00 $ 6 .00 $ 6.00 $ 6.00 I 6.00
$6,406,691 $6,535,130 $6,666,144 $7,361,680 $8,129,788
$7,772,985 S 10,356,549 $13,068,552 $28,647,101 $47,845,594
$~40~691 $6,535,130 $~666, 144 $7,361,680 la 129,788
$0 $0 $0 $0 $(
$0 $0 $0 $0 $(
IJBn 127 $3,823,127 B823,127 B823,127 BB23,127
$10,356,549 $13,068,552 $15,911,569 $32 185,654 $52, 152,255
1.68 1.71 J.74 1.93 2 .13
33
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-4 | Item 2C - 72
DRAFT
Projected CFC Revenue and Funding Capacity 25 Vear
Debt $7.00 CFC Per Day 5 Day Limit (No Busing) --Proiected CFC Revenues:
Total Enolaned Passenaers 11 928,730
Envlaned Passenaer Annual Growth Rates -27.19%
Rental Car Transactions 1 B5,266
Total Rent.al Car Transactmn Da"" - S Davs or Less 696,,;:)1
Rental Car Transactions Annual Growth Rates -27,19%
CFC Rate (oer transaction) s 10.00 $
CFC Rate (oer transaction dav) I
Annual CFC Revenues $1852 660
CFC Ac00unt:
Beqinnina Balanoe 21 $24,151,639
Deoosit Annual CFC Revenues $1,852,660
Less: PAYGO Used for Proiect Fundina $0
Less: O&M Costs~, $0
Less: Debt Service $0
Endina Balance $26.004,299
Estimated Debt Service Coveraae Ratio NIA
Bond Finandn Assum ions
Ca italized Interest months
Bond Term Amortization Period ( ars) 25
Cou onRate 5.50%
Debt Service Cevera e Re uirement times debt service 1.5
Net Revenues Available for Debt Service $4,460,315
Amortization Factor 0.07
Estimated Fu nding Ca adt
Total Estimated Bond Par Amount $59,830,365
Re uired Bond De osits:
Cost of Issuance (1.00%) $54a210
Debt Service Reserve $4,460,315
Ca italized Interest so
$54,821,831
!4DA3a691
$95,260,523
NOTES:
1/ Pr~ected Total Enplaned Passengers prClw'ided by Ricondo.
2/ Beginning Balance fur FY 2021 reflect current CFC Account balance as of June 30, 20.0.
3/ The state of Califumia does not permit Operating and Maintenance Co;ts as eligible expense to be funded 'with CFCs.
SOURCES: Pam Springs International Airport {historical informatiort Ricondo &Associates, Inc. (furecasts]
.QWAI
830,460 1,215,631
-1asa% 46.38%
165,663 242 498
622,625 911,401
-1058% 46.38%
10.00 $
$ 7.00
$1656628 $6 379 808
$26,004,299 $27,660,927
$1,656628 $6,379,808
ID $0
$0 $0
$0 $0
$27.660,927 $34,040.735
NIA NIA
PROJECTED
A.QA i&AilU
1 274,827 1,305,103 1,335 502 1,365,625 1,395,182
4.87% 2.37% 2.33% 2.26% 2.16%
254,306 260,346 266,410 272,419 27a315
955,782 97a481 1,001,272 1,023,857 1,046016
4.87% 2.37% 233% 2,26% 2,16%
I $ $ $ $
I 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00
$6 690 472 $6 849 365 $7008 906 $7 166 998 $7 322115
$34,040,735 $13,501,050 $3,000 000 $3,000,000 $5 706,683
$6,690,472 $6849365 $7,008,906 $7,166,998 $7322115
125,000,000 $12890,100 $2,548,591 $0 $0
$0 $0 $0 $0 $0
$2,230,157 $4,460,315 $4.460,315 $4,460,315 $4.46U315
$13,501,050 $3,000,000 $3000,000 $5,706 683 $8,568.483
/,50 1.54 1.57 1.61 1.64
Palm Springs International Airport I Customer Facility Charge Capacity Analysis I December 2020
"* 14-c03C
1,424,213 1,45Z765 1,481,889
2.08% 2.00% 2.00%
284,106 289,802 295,612
1,067,782 1,089,188 1,111,024
2,08% 2.00% 2,00%
$ $ $ $
$ 7.00 $ 7.00 I 7.00 I
$7 474 473 17 624318 17 777 168
$8 568,483 $11,582,641 $14,746,644
$7,474,473 $7,624,318 $7,777,168
!O so IC
$0 rn IC
$4,460,315 $4,460,315 $4,460.31
$11,582.641 $14,746.644 $18,063.497
1,68 1.71 1.74
2035 204U
1,636,508 1,807,25'
2.00% 2.00%
326,456 360,518
1,226,947 1,354,965
2,00% 2.00~
$
7.00 I 7.00
$8 588 627 $9 484 752
$32 921,618 $55,319,860
$8,588,627 $9,484,752
$0 $(
$0 $0
$4,460,315 $4.460,31
$37.049,930 $60,344,297
1,93 2,13
34
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-5 | Item 2C - 73
DRAFT
Projected CFC Revenue and Funding Capacity 25 Vear
Debt $8.00 CFC Per Day 5 Day Limit (No Busing)
--Projected CFC Revenues:
Total Enolaned Passenaers 1/ 928,730
EnDlane-d Passrnaer Annual Gro w th Rates -27.19%
Rental Car Transacti o ns 185,266
Total Rent.al Car Transaction Dav<: -5 Davs or Less 696 3J1
Rental Car TransactionsAnnual Growth Rates -27.19%
CFC Rate (p e r transactio n) $ 10.00 I
CFC Ra te (oer transaction dav) $
Annual CFC Revenues $1 ,852,660
CFC Account:
Beginn ing Salance u $24,151,639
Deoosit Annual CFC Revenues $1,852,660
Less: PAYGOUsed for Proiect Fundina $0
Less: O&M Costs u $0
Less: Debt Service $0
Endinq Balance $26,004.299
Estimated Debt Service Coveraae Ratio NIA
Bond Financ::in Assum ions
Ca italized Interest (months)
Bond Term Amortization Pe riod ars 25
Cou onRate 5.50%
De bt Service Ce vera e Re ui reme nt(bme s debt serV1ce) 1.5
$5.097,503
0.07
!6a3ns6o
$62~535
$5.097,503
Ca ita1ized Interest $0
Bond Capacity (Proceeds: Available for Project Funding) $62,653,522
Estimated CFC PAYGO Ca aci $42692658
Total Fun din Ca ac::it $105 346 179
NOTES:
1/ Pr~ected Total Enplaned Passengers pro.iided byRicondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as err June 30, 203:1.
3/ The state of C~lifomia does not pennit: Operating and Maintenance Costs as eligible expense to be funded with CFCs,
SOURCES: Pam Springs International Airport {histoncat informatio~; Ricondo &Associates, Inc. (forecasts)
i4¥Ui
830,460 1,215,631
-10.58% 46.38%
165.663 242,498
622 625 911 4 01
-10.58% 46.38%
10.00 $
$ 8.00
$1,656,628 $7,291,209
$26,004,299 $27,660,927
$1,65~628 $7,291,209
$0 $0
$0 $0
$0 $0
$27.660.927 $34.952. 136
NIA NIA
PROJECTED
144 .aeu;;u
1,274 ,827 1,305.103 1,335,502 1,365,625 1,395.182
4.87% 2.37% 2.33% 2 .26% 2.16%
254,306 26D,346 266,4 10 272,419 27a315
955 782 978 4 81 1 001 272 1 023 857 1 04"-016
4 .87% 2.37% 2.33% 226% 2.16%
I $ I $ $
$ 8.00 $ 8.00 $ 8.00 $ 8.00 $ 8.00
$7,646,254 $7,827,846 $8,010,179 $8,190,854 $8,368.131
$34,952, 136 $15,049,639 $3,000,000 $3,000,000 $6,093,3 52
$7,646,254 $7,827,846 $8,010,179 $8,190,854 sa36a131
$25,000,000 $14,779,982 $2,912,676 $0 $0
$0 $0 $0 $0 $0
$2,548,751 $S 097,503 15,097,503 <5,097,503 $5.097 503
$15,049.639 $3,000.000 $3000.000 $6,093 352 $9,363.980
1.50 1.54 1.57 1.61 1,64
Palm Springs International Airport I Customer Facility Charge Capacity Analysis I December 2020
14& "* 1,424,213 1,452765 1,481,88S 1,636,508 1,807,25'
2 .08% 2.00% 2.00% 2.00% 2.00%
284,106 289,802 295,612 326,456 360,51'
1 067 782 1089188 11 11 024 1 226 94 7 1354 96'
2 .08% 2.00% 2.00% 2.00% 2.00%
$ $ $ I $
$ 8.00 $ 8.00 $ 8.00 I 8.00 I 8.00
$8,542,255 $8,713,507 $8,888.192 $9,815.57• $10,839,717
$9,363,980 $12,808,732 $16,424.736 $37,196,135 $62,794,125
$8,542,255 la71~507 $8,888,192 $9,815,574 $10,839,717
$0 $0 IC $0 $(
$0 $0 $( $0 $(
$5,097,503 $S097,503 $5,097,50' $5,097,503 $5.097,503
$12.808.732 $16 424,736 $20 215.425 $41.914.206 $68,536.339
1.68 1.71 1.74 1,93 2 .13
3 S
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-6 | Item 2C - 74
DRAFT
Projected CFC Revenue and Funding Capacity 25 Vear
Debt -$9.00 CFC Per Day - 5 Day Limit (No Busing)
--Pro·ected CFC Revenues:
Total Enplaned Passenqers 11 928,730
Enplaned Passenqer Annual Growth Rates -27,/9%
Rental Car Transactions 185,266
Total Rental C¥ Transaction Davs - 5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27,19%
CFC Rate (per transaction) $ 10.00 $
CFC Rate (per transaction day) $
Annual CFC Revenues $1,852,660
CFC Account:
Beainnina Salanc.e 21 $24,151,639
Deposit Annual CFC Revenues $1,852,660
Less: PAYGOUsed for Project Fundinq $0
Less: O&M Costs~, $0
Less: Debt Service 10
Endina Balance $26,004,299
Estimated Debt Service Coverane Ratio NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 25
Cou onRate 5.50%
Debt Service Covera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Set"l,lice $5,734,691
Amortization Factor 0,07
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $7~924754
Re uired Bond De osits:
Cost of Issuance 1.00% $704,852
Debt Service Reserve $5,734,691
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Projed Funding) $70,485,212
Estimated CFC PAYGO Ca aci $44,946,624
Total Fun din Ca ac:it $115 431 836
NOTES:
1/ Prc;ected Total Enplaned Passengers pro,'ided by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 203.J.
3/ The state of California does not ~rmit Oper~ing and Maintenance Costs as eligible expense to be funded 'Mth CFCs.
SOURCES: Pa m Springs International Airport {historical infofmatio~; Ricondo &Associates, Inc. (forecasts)
.QWAI
830,460 1,215,631
-1058% 4638%
165,663 242,498
622 625 911 401
-10,58% 46,38%
10.00 $
$ 9,00
$1 ,656,628 $8,202,610
$26.004.299 $27.660,927
$1,656,628 $8,202,610
$0 $0
$0 $0
$0 $0
$27,660,927 $35,863,537
NIA NIA
PROJECTED
.QC ·=•· A
1.274,827 1,305,103 1.335.502 1,365,625 1,395,182
4,87% 237% 233% 2.26% 2,/6%
254,306 260,346 266,410 272,419 27[315
955 782 978481 1 001 272 1,023 857 1 046016
4 ,87% 237% 233% 2.26% 2,16%
$ $ $ $ $
I 9,00 $ 9.00 $ 9,00 $ 9.00 $ 9,00
$8,602,036 $8,806,327 $9,011.451 $9,214.711 $9,414.148
$35.863.537 S16.598.228 $3,000.000 $3,000.000 $6,480.021
$8,602,036 $[806,327 $9,011,451 $9,214.711 $9,414,148
$25,000,000 $16,669,864 $3,276,760 $0 $0
$0 $0 $0 $0 10
$2,867,345 $5,734691 $5,734,691 $5,734,691 $5,734,691
$16,598,228 $3,000,000 $3,000,000 $6,480,021 $10. 159,478
/,50 1,54 1.57 1.61 1,64
Pa lm Sp ri ngs Internationa l Airport I Customer Faci lity Charge Capacity Analysis I December 2020
i4U .QA
1.424,213 1,452765 1.481,889 1,636.508 1,807,259
2,08% 2,00% 2,00% 2.00% 2,00%
284,106 289,802 295,61, 326,456 360,51E
1,067782 1089188 11 11 024 1 226 947 135496~
2 ,08% 2.00% 2,00% 2,00% 2,00~
$ $ $ I $
$ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9,00
$9,610,037 $9,802,695 $9,999,216 S 11,042,520 S 12. 194,682
$10,159,478 $14.034,824 $18.102.828 $41,470.652 $70.268.391
$9,610,037 $9,802695 $9,999,216 $11,042,520 $12194,682
10 10 10 $0 $(
$0 $0 $( $0 $(
$5,734,691 $5,734,691 $5,734,691 $5,734,691 $5,734,691
$14,034,824 $18. 102 828 $22,367,353 $46,778,481 $76,728,382
1,68 1,71 1.74 1,93 2 ,13
36
APPENDIX G
Projected CFC Revenue and Funding
Capacity – 30 Year Debt
(Busing Not Included)
Item 2C - 75
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-1 | Item 2C - 76
DRAFT
Projected CFC Revenue and Funding Capacity -
30 Year Debt
Busing Not Included
ID!!ill I RICONDO.
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-2 | Item 2C - 77
DRAFT
Projected CFC Revenue and Funding Capacity
Debt -$10.00 CFC Per Transaction (No Busing)
30 Vear
--.QM
Pro ·ect:ed CFC Revenues:
Total Enolaned Passenoers 11 928,730 830.460 1.215,631
Enolaned Passenaer Annual Growth Rates -27.19% -10.58% 46.38%
Rental Car Transactions cer Enolaned Passenaer 2/ 0.20 0.20 0.20
Rental Car Transactions 185,266 165,663 242.498
Renta{Car Transactions Annual Growth Rates -27.19% -10.58% 46.38%
Averaqe Length of Rental Car Transaction "31 3.50 3.50 3.50
CFC Rate (ner transaction) $ 10.00 $ 10.00 $ 10.00
Annual CFC Revenues $1,852,660 S1.656,628 $2,424.980
CFC Account:
Beqinninq Balance 41 $24.151.639 S26.004.299 $27.660.927
Deposit Annual CFC Revenues $1,852,660 $1,656,628 $2,424,980
Less: PAYGO Used for Pro·ect Fundinn $0 $0 $0
Less: O&M Costs SI $0 $0 $0
Less: DebtSer.1ce $0 $0 $0
Endina Balance $26 004 299 S27 660 927 $30 085 907
Estimated Debt Servir:f:" Coveraae Ratio N/A N/A N/A
30
5.50%
Debt Service Covera e Re uirement(times debt service) 1.5
Net Revenues Availab!e for Debt Service $1.6%376
Amortization Factor 0.07
Estimated Fun din Ca adt
Total Estimated Bond Par Amount $24.640.165
Re uired Bond De os1ts:
Costoflssuance 1.00% $227,176
Debt Service Reserve $1,6%376
$0
S22.717,613
$30,65a092
S53,375.705
NOTES:
1/ Prqjected Total Enplaned P:rnengers pro,,ided byRicondo.
2/ Prqjected Total Rertal CarTramacbons pe,r Enplanement based on Actual FY2017-FY2019 rental cartramacbons di.'ided by total enplaned passengers.
3/ Projected Average Length of Rent'!II CarTramaction pri:,,ided by Palm Springs lnl::tmational Airport.
4/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 20::(),
5/ The state of CaHfomia does not permit Operating and Maintenance Costs as ehgible expense to be funded \/Jth CFCs.
SOURCES: Palm Springs International Airport {historical informatiorij; Ricondo & Associates, Inc. (forecasts]
PROJECTED
MOW IA AMI
1.274,827 1,305,103 1,335,502 1,36~625 1395,182
4.87% 2.37% 2.33% 2.26% 2.16%
0.20 0.20 0.20 0.20 0.20
254,306 260,346 266.410 272419 27a315
4.87% 2.37% 2.33% 2.26% 2.16%
3.50 3.50 3.50 3.50 3.50
$ 10.00 $ 10.00 $ 10.00 $ 10.00 s 10.00
S2.543,064 $2,603,460 $2,664.102 $2,724.193 $2,783.153
S30.085.907 $6.781.283 $3.000.000 $3.000.000 $4,028.816
!i543.064 $2,603.460 $2,664,102 $2,724.193 IV83,153
$2~000,000 $4,689,367 $968,726 $0 $0
$0 so $0 so $0
$847,688 $1,695,376 $1.695,376 $1,6%376 $1.695,376
$6 781 283 S3 ooo ooo $3000 000 $4 028 816 S5 116 593
1.50 1.54 1.57 1.61 1.64
Palm Springs International Airport I Customer Facility Charge Capacity Analysis I December 2020
"* "* 2030 203S 2040
1.424.213 1.45V65 1.481,88' 1.63~501 1,807,25'
2.08% 2.00% 2.00'M 2.00~ 2.00%
0.20 0.20 0.20 0.2( 0.2(
284,106 289,802 295,612 32~45E 360,518
2.08% 2.00% 2.00% 2.00~ 2.00%
3.50 3.50 3.50 3.5( 3.50
$ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
$2,841.065 s2.ses.021 S2.956. 120 $3,264,557 $3,605.177
$5.116.593 $6.262.282 S7.464.927 $14.373.277 $22.886.901
$2,841,065 s2,89ao21 $2,956,120 13.264,55 $3,605,177
$0 $0 $0 $( $(
$0 $0 $( $( $(
$1,695,376 $1,6%376 $1,695,376 l1.6%37E $1,695.37'
$6 262 282 S7 464927 SB 725 670 $15942458 $24 796 702
1.68 1.71 u, 1.9, 2.13
38
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-3 | Item 2C - 78
DRAFT
Projected CFC Revenue and Funding Capacity 30 Vear
Debt $6.00 CFC Per Day 5 Day Limit (No Busing)
"* Projected CFC Revenues:
Total Enolaned Passenaers 1/ 928,730 830,460
EnDlane-d Passrnaer Annual Growth Rates -27.19% -10.58%
Rental Car Transacti ons 187,201 167,393
Total Rent.al Car Transaction Dav<: -5 Davs or Less 696 301 622 625
Rental Car TransactionsAnnual Growth Rates -27,19% -10,58%
CFC Rate (p e r transactio n) $ 10.00 $ 10.00
CFC Ra te (oer transaction dav) $
Annual CFC Revenues $1,872,014 $1,673,934
CFC Account:
Beginning Salance u $24,151,639 $26,023,653
Deoosit Annual CFC Revenues $1,872,01 4 11,671934
Less: PAYGOUsed for Proi ect Fundina $0 $0
Less: O&M Costs u $0 $0
Less: Debt Service $0 $0
Endinq Balance $26,023,653 $27 697,587
Estimated Debt Service Coveraae Ratio NIA NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Pe riod ars 30
Cou onRate 5.50%
De bt Service Ce vera e Re ui reme nt(bme s debt serV1ce) 1.5
$3,823,127
0.07
$55,564,355
$512,289
$3,823,127
Ca ita1ized Interest $0
Bond Capacity (Proceeds: Availablefor Project Funding) $51,228,939
Estimated CFC PAYGO Ca aci $38,221,386
Total Fun din Ca adt $89 450 324
NOTES:
1/ Pr~ected Total Enplaned Passengers pro.i ided byRicondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as or June 30, 203:1.
3/ The state of C~lifomia does not pennit: Operating and Maintenance Costs as eligible expense to be funded with CFCs,
SOURCES: Pam Springs International Airport {histoncat informatio~; Ricondo &Ass ociates, Inc. (forecasts)
1,2 15,631
46.38%
245,031
911401
46.38%
$
$ 6.00
$5,468,407
$27,697,587
$5,468,407
$0
$0
$0
$33, 165,994
NIA
PROJECTED
E-4 "* ·= ; a
1,274,827 1,30~ 103 1,335,502 1,365,625 1,395,182
4 .87% 2.37% 2.33% 2 .26% 2 .16%
256,963 261066 269,193 275,265 281,223
955 782 9784 81 1 001 272 1 023 857 1 046 016
4 .87% 2.37% 2.33% 226% 2 ,16%
$ $ $ $ $
$ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00
$5,734,691 $5,870,885 $6,007,634 $6,143,141 $6,276,099
$33,165,994 $11,989,121 $3,000,000 $3,000,000 $5,320,014
$5,734,691 $~870,885 $6,007,634 $6,143,141 $6,276,099
$25,000,000 $11 ,03~879 $2,184,507 $0 $0
$0 $0 $0 $0 $0
$1 911 ,564 B82l127 $3,823,127 $3,823,127 $3,823 127
$11,989,121 $3,000,000 $3,000,000 $5,320,014 $7,772,985
J,50 J,54 /,57 /,61 1.64
Pa lm Spr ings International Airport I Customer Faci lity Charge Capacity Ana lysis I December 2020
;g_ .;a
1,424,213 1,452,765 1,4 81,889 1,636,508 1,807,259
2.08% 2 .00% 2.00% 2.00% 2.00%
287,074 292,830 29a700 329,866 364,2 84
1 067782 1 089 188 1111 024 1 226 947 1 354 965
2.08% 2 ,00% 2-00% 2.00% 2,00%
$ $ $ $ $
$ 6.00 $ 6.00 $ 6.00 $ 6.00 I 6.00
$6,406,691 $6,535,130 $6,666,144 $7,361,680 SB, 129,788
$7,772,985 S 10,356,549 $13,068,552 $28,647,101 $47,845,594
$~40~691 $6,535,130 $~666, 144 $7,361,680 la 129,788
$0 $0 $0 $0 $(
$0 $0 $0 $0 $(
$J82l 127 $3,823,127 $1823, 127 B823,127 $1823, 127
$10,356,549 $13,068,552 $15,911,569 $32 185,654 $52, 152,255
1.68 1.71 J.74 1.93 2 .13
39
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-4 | Item 2C - 79
DRAFT
Projected CFC Revenue and Funding Capacity -30 Year
Debt -$7.00 CFC Per Day - 5 Day Limit (No Busing)
--Pro 'ected CFC Revenues
Total Enplaned Passenqers 11 928,730
Enplaned Pas.s.enqer Annual Growth Rates. -27.19%
Rental Car Transactions 187,201
Total Rental Car Transaction Davs -5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27.19%
CFC Rate (per transaction) $ 10.00 !
CFC Rate (per transaction day) $ $
Annual CFC Revenues S1 .872.014
CFC Account:
Beainnina Salanc.e 21 $24,151.639
Deposit Annual CFC Revenues $1,872.014
Less: PAYGOUsed tor Project Fundinq $0
Less: O&M Costs ~1 $0
Less: Debt Service $0
Endina Balance $26.023.653
Estimated Debt Servir:f:" Coverane Ratio NIA
30
5.50%
Debt Service Covera e Re uirement(times debt service) 1.5
Ne t Revenues Available for Debt Service $4,460,315
Amortization Factor 0.07
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $64,825.081
Re uired Bond De osits:
Cost of Issuance 1.00% $597 671
Debt Service Reserve $4,460,315
$0
$59 767,095
$40.47~352
$100 242 447
NOTES:
1/ PrQi ected Total Enplaned Pass engers pr!Nid ed by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 20.0.
3/ The state of Califomia does not permit Operating and Maintenance Costs as eligible expense to be funded 'with CFCs.
SOURCES: Pam Springs International Airport (historical infofmatior(I; Ricondo & As sociates, Inc. (forecasts)
;;uw:
830.460 1,215,631
-10.58% 46.38%
167,393 245,031
622 625 911 401
-10.58% 46.38%
10.00 $
$ 7.00
S1.673,934 $6,379,808
$26.023 653 $27 697,587
$1,67l934 $6,379,808
$0 $0
$0 $0
$0 $0
$27,697,587 $34,077.395
NIA NIA
PRO JECTED
I ww;;u i4WEI A I
1,274,827 1.305.103 1.335,502 1,365,625 1.395.182
4.87% 2.37% 2.33% 2.26% 2.16%
256,963 263.066 269,193 275,265 281,223
955 782 97a4s1 1 001 272 1,023 857 1 046016
4.87% 2.37% 2.33% 2.26% 2.16%
I $ $ $ I
I 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00
$6,690,472 $6,849,365 $7,008,906 S7. 166,998 $7.322, 115
$34.077 395 $13,537 710 $3000 000 $3 000 000 $5 706 683
$6,690.472 $6849.365 $7,008,906 $7.166,998 $7,322115
$25,000,000 $12926.761 $2,548,591 $0 $0
$0 $0 $0 $0 10
$2,230 157 $4.460,315 14,460 315 $4.460,315 $4.460,315
$13.537,710 $3,000,000 $3000,000 $5 ,706 683 $8,568.483
1.50 1.54 1.57 1.61 1.64
Palm Sp ri ngs Internationa l A ir port I Customer Faci l ity Cha rge Capacity Ana lysis I December 2020
14-14-
1.424.213 1.452765 1.481,889 1,636,508 1.807,259
2.08% 2.00% 2.00% 2.00% 2.00%
287,074 29Z830 298,?0C 329,866 364,284
1,067782 1089188 1111,024 1 226,947 135496'
2.08% 2.00% 2.00% 2.00% 2.00~
$ $ $ $ $
$ 7.00 $ 7.00 $ 7.00 I 7.00 $ 7.00
S7.474.473 $7,624,318 $7.777.168 $8,588.627 $9.484,752
$8 568.483 $11 .582.641 $14,746,644 $32 921.618 $55.319 860
$7.474.473 $7,624,318 $7,777.168 $8,588,627 $9.484,752
$0 $0 $0 $0 $(
$0 $0 IC $0 $(
$4.460,315 $4.460,315 $4.460,31 $4.460,315 $4.460,31
S 11 .582,641 $14,746.644 $18,063.497 $3 7.049.930 $60.344,297
1.68 1.71 1.74 1.93 2.13
40
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-5 | Item 2C - 80
DRAFT
Projected CFC Revenue and Funding Capacity 30 Vear
Debt $8.00 CFC Per Day 5 Day Limit (No Busing)
--Projected CFC Revenues:
Total Enolaned Passenaers 1/ 928,730
EnDlane-d Passrnaer Annual Growth Rates -27.19%
Rental Car Transactions 187,201
Total Rent.al Car Transaction Dav<: -5 Davs or Less 6%301
Rental Car TransactionsAnnual Growth Rates -27.19%
CFC Rate (per transaction) $ 10.00 $
CFC Rate (oer transaction dav) $
Annual CFC Revenues $1,872,014
CFC Account:
Beginning Salance u $24,151,639
Deoosit Annual CFC Revenues S1 ,872,014
Less: PAYGOUsed for Proiect Fundina $0
Less: O&M Costs u $0
Less: Debt Service $0
Endinq Balance $26023.653
Estimated Debt Service Coveraae Ratio NIA
Bond Financ::in Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 30
Cou onRate 5.50%
Debt Service Cevera e Re uirement(bmes debt serV1ce) 1.5
$5,097,503
0.07
$74,085.807
$683,053
$5,097,503
Ca ita1ized Interest $0
Bond Capacity (Proceeds: Availablefor Project Funding) $68,305,252
Estimated CFC PAYGO Ca aci $42729,318
Total Fun din Ca ac::it $111034570
NOTES:
1/ Pr~ected Total Enplaned Passengers pro.i ided byRicondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as err June 30, 203:1.
3/ The state of C~lifomia does not pennit: Operating and Maintenance Costs as eligible expense to be funded with CFCs,
SOURCES: Pam Springs International Airport {histoncat informatio~; Ricondo &Associates, Inc. (forecasts)
.;u
830,460 1,2 15,631
-Ja58% 46.38%
167,393 245,031
627625 911 401
-IQ58% 46.38%
10.00 $
$ 8.00
$1,673,934 $7,291,209
$26,023,653 $27,697,587
$1 ,67~934 $7,291,209
so $0
so $0
$0 $0
$27.697.587 $34.988.796
NIA NIA
PROJECIED
•
A.PW 14-;;u
1,274,827 1,305,103 1,335,502 1,36~625 1,3%182
4.87% 2.37% 2.33% 2.26% 2.16%
256,963 263,066 269,193 27~265 281.223
955 782 978481 1 001 272 1 02U57 1046.016
4 .87% 2.37% 2.33% 2.26% 2.16%
$ $ $ $ $
! 8.00 $ 8.00 $ 8.00 $ 8.00 $ 8.00
$7,646,254 $7,827,846 $8,010.179 $8,190,854 $8,368,131
$34,988.796 $15,086,299 $3,000,000 $3,000,000 $6,093,352
$7,646 ,254 $7,827,846 $8,010,179 $8,190,854 1a3Ga131
$25,000,000 $14,816,643 12,912,676 so $0
$0 $0 $0 $0 $0
$2,548,751 $5,097 ,503 $5,097,503 $5,097 503 $S 097,503
$15,086.299 $3,000.000 $3 000.000 $6,093.352 $9.363 980
1.50 1,54 1.57 1.61 1.64
Pa lm Spr ings Internationa l Airport I Customer Faci lity Charge Capacity Ana lysis I December 2020
;;cw;;u
1,424213 1,452765 1,481,889 1,636,508 1,807,25'
2.08% 2.00% 2 .00% 2.00% 2.00%
287,074 292830 298,700 329,866 364,284
1 067782 1 089188 1111 024 1 226 947 135496'
2.08% 2.00% 2 .00% 2.00% 2.00W
$ $ $ $ $
I 8.00 $ 8.00 $ 8.00 $ 8.00 I 8.00
$8,542,255 $8,713,507 $8,888,192 $9,815.57• $10,839,717
$9,363,980 $12,808,732 $16,424,736 $37. 196. 135 $62,794,125
!a54Z255 1a1u507 $8,888,192 S9,815,574 $10,839,717
$0 $0 so $0 $(
$0 $0 so $0 $(
$~097,503 $~097,503 $5,097 ,503 $5,097,503 $~097,503
$12.808.732 $16,424.736 $20.215.425 $41 914.206 $68,536.339
/.68 1.71 1.74 1.93 2 .13
41
PALM SPRINGS INTERNATIONAL AIRPORT JANUARY 2021
DRAFT
Customer Facility Charge and Common Transportation Analysis | 6-6 | Item 2C - 81
DRAFT
Projected CFC Revenue and Funding Capacity 30 Vear
Debt -$9.00 CFC Per Day - 5 Day Limit (No Busing)
--Pro·ected CFC Revenues:
Total Enplaned Passenqers 11 928,730
Enplaned Passenqer Annual Growth Rates -27,/9%
Rental Car Transactions 187,201
Total Rental C¥ Transaction Davs - 5 Davs or Less 696 301
Rental Car Transactions Annual Growth Rates -27,19%
CFC Rate (per transaction) $ 10.00 $
CFC Rate (per transaction day) $
Annual CFC Revenues $1,872,014
CFC Account:
Beainnina Salanc.e 21 $24,151,639
Deposit Annual CFC Revenues $1,872,014
Less: PAYGOUsed for Project Fundinq $0
Less: O&M Costs~, $0
Less: Debt Service 10
Endina Balance $26,023,653
Estimated Debt Service Coverane Ratio NIA
Bond Finandn Assum ions
Ca italized Interest (months)
Bond Term Amortization Period ars 30
Cou onRate 5.50%
Debt Service Covera e Re uirement(times debt service) 1.5
Net Revenues Available for Debt Set"l,lice $5,734,691
Amortization Factor 0,07
Estimated Fundin Ca ac:it
Total Estimated Bond Par Amount $8l346533
Re uired Bond De osits:
Cost of Issuance 1.00% $768434
Debt Service Reserve $5,734,691
Ca ita1ized Interest $0
Bond Capacity (Proceeds Availablefor Projed Funding) $76,843,408
Estimated CFC PAYGO Ca aci $44,981285
Total Fun din Ca ac:it $121 826693
NOTES:
1/ Prc;ected Total Enplaned Passengers pro,'ided by Ricondo.
2/ Beginning Balance for FY 2021 reflect current CFC Account balance as of June 30, 203.J.
3/ The state of California does not ~rmit Oper~ing and Maintenance Costs as eligible expens e to be funded 'Mth CFCs.
SOURCES: Pa m Springs International Airport {historical infofmatio~; Ricondo &Associates, Inc. (furecasts)
.QWAI
830,460 1,215,631
-1058% 4638%
167,393 245,031
622 625 911 401
-10,58% 46,38%
10.00 $
$ 9,00
$1 ,673,934 $8,202,610
$26.023.653 $27.697,587
$1,673,934 $8,202,610
$0 $0
$0 $0
$0 $0
$27,697,587 $35,900.197
NIA NIA
PROJECTED
.QC ·=•· A
1.274,827 1,305,103 1.335.502 1,365,625 1,395,182
4,87% 237% 233% 2.26% 2,/6%
256,963 263,066 269,193 275,265 281,223
955 782 978481 1 001 272 1,023 857 1 046016
4,87% 237% 233% 2.26% 2,16%
$ $ $ $ $
I 9,00 $ 9.00 $ 9,00 $ 9.00 $ 9,00
$8,602,036 $8,806,327 $9,011.451 $9,214.711 $9,414.148
$35.900. 197 S16.634.888 $3.000.000 $3.000.000 $6,480.021
$8,602,036 $8806,327 $9,011,451 $9,214,711 $9,414,148
$25,000,000 $16,706,524 $3,276,760 $0 $0
$0 $0 $0 $0 10
$2,867,345 $5,734691 $5,734,691 $5,734,691 $5,734,691
$16,634,888 S3.000,000 $3,000,000 $6,480,021 $10. 159,478
/,50 1,54 1.57 1.61 1,64
Pa lm Spri ngs International Airport I Customer Faci lity Charge Capacity Analysis I December 2020
i4U .QA
1.424,213 1,452765 1.481,889 1,636.508 1,807,259
2,08% 2,00% 2,00% 2.00% 2,00%
287,074 292830 298,?0C 329,866 364,284
1,067782 1089188 1111 024 1 226 947 135496~
2 ,08% 2.00% 2,00% 2,00% 2,00~
$ $ $ I $
$ 9.00 $ 9.00 $ 9.00 I 9.00 $ 9,00
$9,610,037 $9,802,695 $9,999,216 S 11,042,520 S 12. 194,682
$10,159,478 $14.034,824 $18.102.828 $41,470.652 $70.268.391
$9,610,037 $9,802695 $9,999,216 $11,042,520 $12194,682
10 10 10 $0 $(
$0 $0 $( $0 $(
$5,734,691 $5,734,691 $5,734,691 $5,734,691 $5,734,691
$14,034,824 $18. 102 828 $22,367,353 $46,778,481 $76,728,382
1,68 1,71 1.74 1,93 2 ,13
42
AVIATION DEPARTMENT:
City Council Meeting of 01-27-22
CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
ATTACHMENT C
PUN GROUP - EXAMINATION OF CUSTOMER
FACILITY CHARGE RATE ANALYSIS
Item 2C - 82
City of Palm Springs
Palm Springs, California
Palm Springs Airport
Examination of Customer Facility Charge
Rate Analysis
Item 2C - 83
THE II
PUN GROUP
ACCOUNTANTS & ADVISORS
City of Palm Springs
Palm Springs Airport
Examination of Customer Facility Charge Rate Analysis
Table of Contents
Page
............................................................................................................................. 1
Item 2C - 84
Independent Accountants' Report
INDEP
To the Honorable Mayor and Members of the City Council
of the City of Palm Springs
Palm Springs, California
We have examined management of the City of Palm Spri
that the Customer Facility Charge and Common Transportation Analysis for a potential transition from the existing
per transaction Customer Facility Charge (CFC) to a per day basis (CFC), in accordance with California
Government Code Article 6 Section 50474 (CFC Statue) substantiates the necessity for, and the amount of, the
customer facility charge, including whet costs are supported and justified, any
steps the airport may take to limit costs, potential alterna
collection of the fee, and whether and to what extent rental companies or other businesses or individuals using the
facility or common-use transportation system may pay for the costs associated with these facilities and systems
apart from the fee from rental customers, or whether the airport did not comply with any provision of the CFC
s assertion. Our responsibility is to express an opinion on
Our examination was conducted in accordance with attestation standards established by the American Institute of
Certified Public Accountants. Those standards require that we plan and perform the examination to obtain
reasonable assurance about whether manageme all material respects. An examination
involves performing procedures to obtain evidence about ture, timing, and extent
of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement
We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
Customer Facility Charge and Common
Transportation Analysis for a potential transition from the existing per transaction Customer Facility Charge (CFC)
to a per day basis (CFC), in accordance with California Government Code Article 6 Section 50474 (CFC Statue)
substantiates the necessity for, and the amount of, the
actual or projected costs are supported and justified, any steps the airport may take to limit costs, potential
extent rental companies or other businesses or individuals using the facility or common-use transportation system
may pay for the costs associated with these facilities and systems apart from the fee from rental customers, and the
airport did comply with any provision of the CFC Statue is fairly stated, in all material respects.
Santa Ana, California
November 09, 2021
Item 2C - 85
THE II
PUNGROUP
ACCOUNTANTS &.ADVJSORS
ENDENT ACCOUNTANT'S REPORT
ngs', California (City) assertion as ofNovember 09, 2021,
her the airport's actual or projected
tives for meeting the airport's revenue needs other than the
Statue. The City's management is responsible for it
management's assertion based on our examination .
nt's assertion is fairly stated, in
management's assertion. The na
of management's assertion, whether due to fraud or error.
In our opinion, management's assertion as of November 09, 2021 that the
customer facility charge, including whether the airport's
alternatives for meeting the airport's revenue needs other than the collection of the fee, and whether and to what
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850
www .pungroup.cpa
AVIATION DEPARTMENT:
City Council Meeting of 01-27-22
CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
ATTACHMENT D
PALM SPRINGS INTERNATIONAL AIRPORT
CFC ANALYSIS
Item 2C - 86
PRESENTED TO:PRESENTED BY:PRESENTED ON:
Palm Springs International Airport
CFC Analysis
Rental Car Companies Serving
Palm Springs International Airport
Ricondo & Associates December 6, 2021
Informational Briefing to the Rental Car Companies -Transitioning to a per day CFC
Item 2C - 87
mum I R1c0Noo®
Agenda
Palm Springs International AirportCFC AnalysisDecember 6, 2021
Palm Springs International Airport | CFC Analysis | December 6, 2021 1
Welcome and Introductions
Meeting Purpose
Review of Brown Act Public Hearing
Requirements & City Actions to date
Brown Act Public Hearing Schedule
and Next Steps
Item 2C - 88g I RICONDO ®
Purpose
Brief rental car companies on the
City’s proposed change to a per
transaction day CFC:
▪California Government Code,
Article 6, Section 50474.
▪Section 5.15.A. –PSP Non-
Exclusive Operating and Lease
Agreement for Rental Car
Concessions, as amended.
Palm Springs International Airport | CFC Analysis | December 6, 2021 2Item 2C - 89g I RICONDO ®
Review of Brown Act Public Hearing
Requirements
Palm Springs International Airport | CFC Analysis | December 6, 2021 3Item 2C - 90
Brown Act Public Hearing Requirements –
Rental Car Coordination
▪Reasonableness of PSP CONRAC Estimated cost of
construction
▪Independent Auditor’s Report
▪Determination that per transaction CFC will not generate
sufficient revenue for PSP CONRAC
▪Steps to limit PSP CONRAC costs (ongoing)
▪Evaluation of other funding alternatives
▪Schedule for City Council Coordination
Palm Springs International Airport | CFC Analysis | December 6, 2021 4Item 2C - 91g I RICONDO ®
PSP CONRAC Facility Concepts & Cost
Estimates -2020
Palm Springs International Airport | CFC Analysis | December 6, 2021 5Item 2C - 92
PSP CONRAC Facility Concepts
Palm Springs International Airport | CFC Analysis | December 6, 2021 6Item 2C - 93
CONRAC NORTH SITE
Existing CBP / USO
A_ City Hall
CON RAC SOUTH SITE A. PSP Main Terminal
g I RICONDO ®
PSP CONRAC Facility Preliminary Opinion of
Probable Cost Estimates and Busing Costs
7Palm Springs International Airport | CFC Analysis | December 6, 2021
North Site Split Site South Site
ConRAC ROM Estimates 1/$178.4M $191.0M $187.2M
NOTES;
1/ ROM Estimate does not include cost for construction of new U.S. Customs and Border Protection facility or USO facility.
SOURCE: Gensler / Connico Rough Order of Magnitude Cost Estimates, April 2020.
North Site Split Site South Site
Annual Busing Costs 1/$0 $0 $2.4M
NOTES;
1/ Annual busing costs shown for South Site is for year one of DBO. Annual busing costs increase as noted in previous slides.
SOURCE: Ricondo & Associates, Inc., Busing Analysis, December 2020.
Item 2C - 94g I RICONDO ®
PSP CFC Independent Auditor’s Report
Palm Springs International Airport | CFC Analysis | December 6, 2021 8Item 2C - 95
Independent Auditor’s Report
Palm Springs International Airport | CFC Analysis | December 6, 2021 9
PUN Group, LLP retained to perform independent audit of
PSP CFC Capacity Analysis presented to City on December 15,
2020
PUN Group, LLP independent audit dated November 9, 2021
confirms:
•The Gensler April 2020 preliminary estimate of probable cost is reasonable
•The current $10 per transaction CFC will not generate sufficient revenue
•The cost of the PSP CFC CONRAC requires the additional revenue from a per-
day CFC
•The City has, and will continue to take steps to limit Project costs
•Other funding alternatives have, and will continue to be explored
•The City will require the rental car companies to fund shortfalls in CFC
collections
Item 2C - 96g I RICONDO ®
PSP CFC Capacity Analysis
FY 2021 -2050
Palm Springs International Airport | CFC Analysis | December 6, 2021 10Item 2C - 97
PSP Passenger Forecast Assumptions
Palm Springs International Airport | CFC Analysis | December 6, 2021
Enplaned Passenger CAGRs
FY 2020-
FY 2023
FY 2023-
FY 2029
FY 2029-
FY 2050
FY 2020-
FY 2050
Baseline Scenario 11.1%2.2%2.0%2.9%
Low Scenario 4.6%4.0%2.0%2.7%
High Scenario 16.0%2.2%2.0%3.4%
11Item 2C - 98g I RICONDO ®
1.3 M
1.5 M
1.6 M
1.8 M
2.0 M
2.2 M
0.7 M
1.2 M
1.4 M
1.5 M
1.7 M
1.8 M
2.0 M
0.9 M
1.5 M
1.7 M
1.9 M
2.1 M
2.3 M 2.5 M
1.3 M
0.0
0.3
0.5
0.8
1.0
1.3
1.5
1.8
2.0
2.3
2.5
2.8
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050Annual Enplaned Passengers (Millions)Fiscal Year
Baseline Scenario Low Scenario High Scenario Actual
Forecast FY 2021: 734,897
Actual FY 2021 670,497
PSP Passenger Forecasts –FY 2021 –FY 2050
Baseline, Low, and High Scenarios
12
Forecast FY 2021: 734,897
Actual FY 2021 670,497
SOURCE: Ricondo & Associates, Inc., December 2020
Recovery to FY 2019 Enplaned Passengers
Baseline in FY 2023
High in FY 2022
Low in FY 2027
Palm Springs International Airport | CFC Analysis | December 6, 2021 Item 2C - 99
--+---+---+-••••
g I RICONDO ®
CFC Revenue Projections –Key Assumptions
(Fiscal Year Ending June 30)
Project Implementation Schedule
CFC Revenues:
CFC Increase Start Date 7/1/2021
CFC Forecast End Date 6/30/2040
Rental Car Activity Forecast
PSP Passenger Forecast Scenario Used Baseline
Forecast Rental Car Transaction Compound Annual Growth Rate (2021-2029)7.24%
Forecast Rental Car Transaction Compound Annual Growth Rate (2030-2040)2.00%
Forecast Rental Car Transaction Compound Annual Growth Rate (2021-2040)4.18%
Rental Car Transactions per Enplaned Passenger 2/0.20
Average Length of Rental Car Transaction (days) 3/3.50
CFC Scenarios
CFC Scenarios Modeled $10/Transaction | $6/Day | $7/Day | $8/Day | $9/Day
Palm Springs International Airport | CFC Analysis | December 6, 2021
NOTES:
1/This draft report is not and shall not be considered to be a recommendation or advice to the Palm Springs International Airport ("Client")with respect to the issuance of municipal securities.Ricondo &Associates,
Inc.(“R&A”)is not registered as a municipal advisor under Section 15B of the Securities Exchange Act of 1934.The assumptions included in this report have been provided by Client or Client’s Municipal Advisor or
underwriter,or,with Client’s approval,have been derived from general,publicly available data approved by Client.R&A owes no fiduciary duty to Client.Client should discuss the information and analysis contained
in this report with internal and external advisors and experts that Client deems appropriate before taking any action.Any opinions,assumptions,views or information contained herein are not intended to be,and do
not constitute,“advice”within the meaning of Section 15B of the Securities and Exchange Act of 1934.
2/Projected Total Rental Car Transactions per Enplanement based on Actual FY2017-FY2020 rental car transactions divided by total enplaned passengers.
3/Projected Average Length of Rental Car Transaction provided by Palm Springs International Airport.
SOURCES: Palm Springs International Airport (historical information); Ricondo & Associates, Inc. (forecasts)
13Item 2C - 100g I RICONDO ®
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
$10.00/Trans Scenario $6.00/Day Scenario $7.00/Day Scenario $8.00/Day Scenario $9.00/Day Scenario
Annual CFC Revenue Projections
14
$12.2M
$10.8M
$9.5M
$8.1M
$3.6M
$9.0M
$10.0M
$11.0M
$9.8M
$8.9M
$8.0M
$8.6M
$7.8M
$7.0M
$7.4M
$6.7M
$6.0M
$3.3M$3.0M$2.7M
Palm Springs International Airport | CFC Analysis | December 6, 2021 Item 2C - 101
....... ....... .......
g I RICONDO ®
Preliminary Debt Service Schedules –Key
Assumptions
15
(Fiscal Year Ending June 30)
Project Implementation Schedule
CFC Revenues:
CFC Increase Start Date 7/1/2021
Facility Construction Start (Beginning 3rd Quarter FY 2023)1/1/2023
Facility Construction Complete 1/1/2026
Financing Assumptions
Bond Issue Timed Near Beginning of Construction
Starting Balance CFC Account as of June 30, 2020 $24,151,639
Minimum Required Balance CFC Account $3,000,000
Bond Assumptions -Series 2023 Special Facilities: 1/
Interest Rate -Taxable 5.50%
Capitalized Interest (in months)0
Cost of Issuance 1.00%
Debt Service Coverage Requirement (times debt service)1.50
Palm Springs International Airport | CFC Analysis | December 6, 2021
NOTES:
1/This draft report is not and shall not be considered to be a recommendation or advice to the Palm Springs International Airport ("Client")with respect to the issuance of municipal securities.Ricondo &Associates,
Inc.(“R&A”)is not registered as a municipal advisor under Section 15B of the Securities Exchange Act of 1934.The assumptions included in this report have been provided by Client or Client’s Municipal Advisor or
underwriter,or,with Client’s approval,have been derived from general,publicly available data approved by Client.R&A owes no fiduciary duty to Client.Client should discuss the information and analysis contained
in this report with internal and external advisors and experts that Client deems appropriate before taking any action.Any opinions,assumptions,views or information contained herein are not intended to be,and do
not constitute,“advice”within the meaning of Section 15B of the Securities and Exchange Act of 1934.
SOURCES: Palm Springs International Airport (historical information); Ricondo & Associates, Inc. (forecasts)Item 2C - 102rnllill I RICONDO ®
CFC Capacity Analysis –Total Estimated CFC
Funding Capacity
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
20-Year 25-Year 30-Year 20-Year 25-Year 30-Year 20-Year 25-Year 30-Year 20-Year 25-Year 30-Year 20-Year 25-Year 30-Year
$10.00/Trans $6.00/Day $7.00/Day $8.00/Day $9.00/Day
Total Estimated Funding Capacity Estimated CFC PAYGO Capacity
$49M $52M $53M
$80M $85M $90M $89M
$95M $100M $98M $105M
$111M $107M
$115M $122M
Palm Springs International Airport | CFC Analysis | December 6, 2021 16Item 2C - 103
• •
g I RICONDO ®
Disclaimer
17
Founded in 1989,Ricondo is a full-service aviation consulting firm providing airport physical and financial
planning services to airport owners and operators,airlines,and federal and state agencies.Ricondo has
prepared Reports of the Airport Consultant in support of over $32 billion of airport related revenue bonds
since 1996.Ricondo is not registered as a municipal advisor under Section 15B of the Securities Exchange Act
of 1934.Ricondo is not acting as a municipal advisor and has not been engaged by the City to provide advice
with respect to the structure,timing,terms,or other similar matters concerning the issuance of municipal
securities.The assumptions regarding such matters included in this Report were provided by the City or the
City’s Municipal Advisor or underwriter,or,with the City’s approval,were derived from general,publicly
available data approved by the City.Ricondo owes no fiduciary duty to the City.The City should discuss the
information and analysis contained in this CFC Revenue Forecast and CFC Capacity Analysis with internal and
external advisors and experts that the City deems appropriate before taking any action.Any opinions,
assumptions,views,or information contained herein are not intended to be,and do not constitute,“advice”
within the meaning of Section 15B of the Securities Exchange Act of 1934.
The techniques and methodologies used by Ricondo in preparing this CFC Revenue Forecast and CFC Capacity
Analysis are consistent with industry practices for similar studies.While Ricondo believes that the approach
and assumptions used in this CFC Revenue Forecast and CFC Capacity Analysis are reasonable,some
assumptions regarding future trends and events detailed in this CFC Revenue Forecast and CFC Capacity
Analysis,including,but not limited to,the projections of passenger activity and financial performance,may
not materialize.Therefore,actual performance will likely differ from the projections set forth in this CFC
Revenue Forecast and CFC Capacity Analysis and the variations may be material.
Palm Springs International Airport | CFC Analysis | December 6, 2021 Item 2C - 104g I RICONDO ®
CFC Revenue “Gap” Analysis
NOTES:
1/All figures in millions of dollars unless otherwise stated.
2/CFC funding capacity shown at $9.00 per day assumes a 30-year amortization.All CFC funding scenarios assume a CFC change to $9.00/day in July of 2021.
SOURCES: Palm Springs International Airport (historical information); Ricondo & Associates, Inc. (forecasts); Gensler / Connico Rough Order of Magnitude Cost Estimates, April 2020.
$122 $122 $122
$56 $69 $65
$-
$50
$100
$150
$200
$250
North Site Split Site South Site(Dollars in millions)Funding at $9/Day Gap
$178M
$191M $187M
Total
Project
Cost
Total
Project
Cost
Total
Project
Cost
South Site ConRAC
option also includes an
estimated $49.9 million
in busing costs through
2040 not reflected here.
Palm Springs International Airport | CFC Analysis | December 6, 2021 18Item 2C - 105g I RICONDO ®
r-
1
I
I
I
I
I
I
I
I
I
• •
r--
1
I
I
I
I
I
I
I
I
I
Steps to Limit PSP CONRAC Costs
-Evaluate phasing methods for project delivery
-Defer / delay construction to build additional CFC Pay-Go capacity
-Evaluation of multiple facility concepts
Palm Springs International Airport | CFC Analysis | December 6, 2021 19Item 2C - 106
Evaluation of Alternative Sources of
Funding
Palm Springs International Airport | CFC Analysis | December 6, 2021 20
-FAA Airport Improvement Grants
-Passenger Facility Charges (PFC)
-Airport General Revenues
Item 2C - 107
Brown Act Public Hearing Schedule and
Next Steps
Palm Springs International Airport | CFC Analysis | December 6, 2021 21Item 2C - 108
Brown Act Public Hearing Schedule and Next Steps
▪Brown Act Public Hearing –Palm Springs City Council –January 13, 2022
–Present required information pursuant to Section 50474
–Recommendation -Transition to $9.00 per day CFC / 5-day cap
▪$9.00 per-day CFC implementation date –March 1, 2022
▪Reengage planning and design for CONRAC
–Continue to evaluate project alternatives
–Refine (design and cost estimate) final CONRAC alternative
–Develop schedule for rental car meetings
Palm Springs International Airport | CFC Analysis | December 6, 2021 22Item 2C - 109g I RICONDO ®
www.ricondo.com Item 2C - 110
AVIATION DEPARTMENT:
City Council Meeting of 01-27-22
CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER
AUTHORIZATION TO TRANSITION TO A PER-TRANSACTION DAY
CUSTOMER FACILITY CHARGE
ATTACHMENT E
ENTERPRISE RENT A CAR POSITION ON CFC AT
PALM SPRINGS AIRPORT
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From:Hunsinger, Robert L
To:Ulises Aguirre; Victoria Carpenter
Cc:Weiss, Aaron C; Hunsinger, Robert L; Anne Morrison; cgurich@hertz.com; Goldstein, Scott D; Bettison, William L;
Nussbaum, Elizabeth A
Subject:Enterprise Rent A Car position on CFC at Palm Springs Airport
Date:Thursday, December 16, 2021 2:57:43 PM
Attachments:image002.png
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Dear Mr. Aguirre,
Thank you for calling the meeting with the RACs last week to discuss the planning of a future ConRAC
at PSP. I am sorry to hear that you will be leaving the Airport and wanted to take a moment to
Thank You for all your leadership throughout the Pandemic! We greatly appreciate your partnership
and Enterprise’s relationship with PSP staff.
Following up on the meeting you organized, we want to provide you with Enterprise’s perspective on
the future ConRAC and its funding. Specifically, we wish to share with you Enterprise’s concern with
any Airport plan or policy that would require PSP RACs to charge the maximum CFC allowed by
California law, and Enterprise’s belief that the CFC should not be increased to more than $5/day until
the ConRAC project that will be built is better defined, and everything within all our power has been
done to reduce the cost to a reasonable and affordable level for consumers.
Typically, Enterprise prefers to have a specific and agreed upon ConRAC design and cost estimate
before the Airport sets its policy on the structure and level of the CFC that Enterprise and the other
RACS are required to collect. Having said that, Enterprise recognizes that in certain situations it
makes sense to begin increasing the CFC in advance of reaching an agreed upon ConRAC project plan
in order to facilitate and expedite development of the ConRAC for the benefit of rental-car
customers, and given the potential cost of this ConRAC project, Enterprise can agree that this may
be one of those times. However, Enterprise believes the Airport should do this carefully and
conservatively.
As you look around the country, at the airports whose policy it is to impose a CFC, you will find that
$9.00/day is at the very top of what any airport charges. There are very few airports that charge
more than $7.50/day and nearly all of those airports are in the Top 25 for passenger traffic in the
U.S. Most airports, and most of similar size to PSP, charge somewhere in the range of $2.25-
$4.00/day. As a matter of fact, only 3 airports in the entire Western territory for which I have
responsibility charge more than $7.00/day (LAX, SAN, SJC – and SJC only increased their CFC to
address CFC shortfalls during the pandemic and may likely reduce again to $7.50 in the coming
years).
Enterprise recognizes that PSP has information that may indicate that a $9.00/day CFC is required to
build the scope proposed in 2018/2019; however, if that proves to be the case, Enterprise likely
would not support the development of the ConRAC as previously envisioned. Instead, Enterprise
would strongly recommend that the Airport reduce the proposed scope of the ConRAC to reach a
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point where the project could be affordable.
In addition to Enterprise’s position that the Airport should not establish a $9.00/day CFC, Enterprise
is extremely concerned about how this cost would drive customers to alternative forms of
transportation. Fees paid by other forms of transportation are significantly lower than even the
current rental car fees. Off-site rental car operators would likely not be required to collect/remit
these fees, and we can assume that many customers may begin to seek those options. We know
from experience that off-site rental car operators utilize this disparity to actively market against
those on-airport RACs whom airports require to impose these fees. This excessive cost increase on
customers of on-airport RACs like Enterprise will not only hurt the on-site providers, it will reduce
the Airport’s revenue and reduce the net CFC collections which Enterprise believes should be
calibrated to fund the ConRAC without pushing away customers. The damage an unreasonable fee
can have on Enterprise and our industry cannot be overemphasized.
In conclusion, Enterprise does not believe a $9.00/day CFC is or will be in the future a reasonable or
affordable fee for PSP rental car customers, and Enterprise recommends that the Airport consider
another approach to the CFC policy. Ultimately, we collectively can and should only build what we
collectively can afford to support. The cart should not come before the horse, so to speak, in this
process, and the Airport should allow the affordability of the project to drive the design and scope.
Enterprise sees the necessity of the Airport requiring that additional fees be collected for this future
project, and therefore can support the Airport changing the CFC to a daily rate and increasing it to
$4.00-$5.00 per day, but Enterprise strongly recommends against the Airport adopting a CFC any
greater than that at this time. Enterprise hopes that the Airport recognizes the importance of these
points/arguments to Enterprise and airport customers.
Enterprise remains your committed partner, and we are available to discuss further if needed and at
your convenience.
Thank you,
Robert
Robert L Hunsinger
Director Airport Properties and RelationsEAN Services LLC
925-382-4259 cell
866-346-0147 fax
Robert.L.Hunsinger@ehi.com
600 Corporate Park Dr
St Louis, MO 63105USA
enterpriseholdings.com
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ENTERPRISE HOLDINGS®
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