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HomeMy WebLinkAbout24996I I I RESOLUTION NO. 24996 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA. APPROVING THE 2022 AIR SERVICE INCENTIVE PROGRAM FOR THE PALM SPRINGS INTERNATIONAL AIRPORT THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY FIND AS FOLLOWS: WHEREAS, the City of Palm Springs, ("City"), relies on its tourism economy which is dependent on airline service to the Palm Springs International Airport; and WHEREAS, the City has recognized the need to incentivize airlines in different ways to market their service to promote airline travel to the City, and to improve airline service through expansion of service from the City to other additional cities throughout the country: and WHEREAS, on January 20, 1993, the City Council adopted Resolution No. 18019 establishing an Air Service Incentive Program for the summer of 1993, as a means of expanding air service in the summer months when passenger activity is at its lowest; and" WHEREAS, on March 20, 2002, the City Council adopted Resolution No. 20295 establishing an Air Service Development Summer 2002 Incentive Program, to allow for the rebate of certain airline landing fees as a means of incentivizing additional airline service in the summer months of 2002; and WHEREAS, on January 2, 2003, the City Council adopted Resolution No. 20525 establishing an Air Service Incentive Program, to allow for up to $25,000 to airlines initiating qualifying new service from the City; and WHEREAS, on June 4, 2003, the City Council approved the Air Service Development 2004 Incentive Program to further enhance air service development activities with air carriers to increase routes served by the City; and WHEREAS, in 2010, the City established an Airline Marketing Incentive Program allocating $1,000,000 in promotional funding to qualifying new air service at the City; and WHEREAS, the 2010 Airline Marketing Incentive Program was successfully utilized by the City from 2010 through 2016 with seven different airline carriers providing incentives valued at over $750,000 to reimburse the airlines for marketing programs related to their new air service to the City; and Resolution No 24996 Page 2 WHEREAS, on November 14, 2018, the City's Airport Commission reviewed and recommended approval of a modified Air Service Incentive Program that eliminates incentives to airlines for reimbursement of marketing expenditures in exchange for waiver of certain Airport fees for qualifying new airline service to the City; and WHEREAS, on December 9. 2021, the City Council voted to increase the cap of the 2019 Air Service Incentive Program by $353,000 to approve all existing air service applications, suspended the program and asked staff to research and develop a new program to promote and incentivize expanded and new airline service to the City. WHEREAS, the City Council has reviewed and considered the benefits of its prior Air Service Incentive Programs and recognizes the need continue to promote and incentivize expanded and new airline service to the City with an updated program, and on March 24, 2022, considered and approved the 2022 Air Service Incentive Program. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: I Section 1. The recitals above are found to be true and correct and constitute the findings of the City Council made in support of this resolution. Section 2. The 2022 Air Service Incentive Program for the Palm Springs International Airport, attached hereto as Attachment "A", and incorporated herein by reference, is hereby approved. Section 3. The City Manager is hereby authorized to execute and approve a Memorandum of Agreement with airlines providing waiver of certain Airport fees for qualifying new airline service in accordance with the 2022 Air Service Incentive Program, in an amount equivalent to the total amount of. fee waivers and marketing funds granted through the term of the Memorandum of Agreement. To the extent the total amount of any such fee waiver for an Individual airline exceeds $25,000, the City Manager is hereby authorized to approve the Memorandum of Agreement. Section 4. The total cumulative amount of any fee waivers granted and/or marketing funds provided pursuant to the 2022 Air Service Incentive Program shall be reviewed and determined on an annual basis during the City's budget process. The Executive Director of Aviation shall maintain a record of all fee waivers and marketing funds granted pursuant to any Memorandum of Agreement approved by the City Manager and shall suspend the 2022 Air Service incentive Program at such time as the annual budgeted amount has been exceeded, unless subsequently extended by action of the City Council. I I I Resolution No 24996 Page 3 PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 24*^ DAY OF MARCH 2022. in blifton UJustin City Manager ATTEST: MoniqueTomeil, Interim City Clerk CERTIFICATION I STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF PALM SPRINGS ) 88. I, MONIQUE LOMELl, Interim City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24996 is a fuii, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on March 24, 2022, by the following vote: AYES: Counciimembers Holstege, Kors, Woods, Mayor Pro Tern Garner, and Mayor Middleton NOES: None ABSENT: None ABSTAIN: None I IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this day of n Monique Ltfmeli, Interim City Clerk City of Palm Springs, California Resolution No 24996 Page 4 I ATTACHMENT"A" FOLLOWS THIS PAGE I I I I I Resolution No 24996 Page 5 PSP AIRPORT AIR SERVICE INCENTIVE AGREEMENT THIS MEMORANDUM OF AGREEMENT (A ), ("Agreement") is made and entered into, to be effective this day of , 20 , by and between the CITY, OF PALM SPRINGS, a California charter city and municipal corporation, (hereinafter referred to as "City") and , (Airline) organized and existing under the laws of the (state/province/country) of (hereinafter referred to as "Airline"). City and Airline are sometimes hereinafter individually referred to as "Party" and are hereinafter collectively referred to as the "Parties," RECITALS A. On the City Council of the City has adopted the 2022 Air Service incentive Program for the Paim Springs International Airport, (hereinafter the "Program"). B. Pursuant to the Program, Airline has requested fee waivers and marketing funds for new qualifying service. C. The Airline hereby agrees pursuant to this Agreement to participate in the Program. D. The City hereby agrees pursuant to this Agreement to waive certain Airport fees for new qualifying service. NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT SECTION 1. Recitals. The foregoing Recitals are true, correct, and incorporated by this reference herein as material terms relied upon by the Parlies in agreeing to and executing this Agreement. . ; SECTION 2. Understanding of the Parties. The City and the Airline, by their signatures to this Agreement, acknowledge that their agreement related to fee waivers in accordance with the Program is only applicable to new qualifyitig service as outlined in the Program. It is understood that the Airline's use of any fee waivers and/or marketing funds pursuant to the Program are solely at the discretion of the Airline with approval from the City. The Airline, at its sole discretion, will consider using the resulting fee waivers and marketing funds for the Airline's promotional purposes associated with the Airline's PSP specific air service to support the long-term success of the route(s). The Airline shall seek approval from the City before expending any Marketing Funds from this Program as outlined in the Resolution No 24996 Page 6 Program. For the purposes of this Agreement, the amount of estimated fee waivers pursuant to the term of this Agreement for the applied route(s) Is $ , and the approved amount of marketing funds for the route(s) applied for are $ . The final amount of fee waivers shall vary and depend upon the fiscal year period formulation of each respective fee. Each period, as defined in the incentive Options of the Program, of service will be evaluated for compliance under the terms of the Program. It is understood that the Airline will comply with all stipulations set forth in the Program, listed in this agreement as Attachment 1. The air carrier must submit Attachment 2, the Monthly Airline Activity Report to PSPMonthlyReportlng@PalmSpringsCA.gov no later than the 10th of each month for the prior months service for the routes that qualify for the abatement Incentive. Any failure by the Airline to submit the Monthly Airline Activity Report may result In a forfeiture of incentives for the month the report was not submitted. I SECTION 3. Term. The term of this Agreement shall commence on and end on , whereupon this Agreement shall automatically terminate and is not subject to extension. Route(s) and Incentive Optlon(s) Airline Is/are applying for is/are to be listed in the below table. Please reference the 2022 Air Service incentive Program in order to make appropriate selections. Airline Incentive Request(s)Route 1 Route 2 Route 3 Route: Incentive Option(s): Date of First Flight: End Date (if seasonal): Aircraft Tvpe(s): Frequency: Seasonality (Year-round, etc) I SECTION 4. Conflict of Interest. Airline acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Airline enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one year thereafter. Airline warrants that Airline had not paid or given, and wili not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement. SECTiON 5. Covenant Against Discrimination. In connection with its performance under this Agreement, Airline shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender Identity, gender expression.I I I I Resolution No 24996 Page 7 physical or mental disability, or medlcai condition (each a "prohibited basis"). Airline shaii ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City's lawful capacity to enter this Agreement, and in executing this Agreement, Airline certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Airline activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Airline is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting. SECTION 6. Corporate Authoritv. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such party is duly organized and existing (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by^so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party is bound. Resolution No 24996 Page 8 IN WITNESS WHEREOF, the City and Airline have caused this Agreement to be executed the day and year first above written.I ATTEST: CITY OF PALM SPRINGS, OA CONTENTS APPROVED: By Monique Lome)] Interim City Clerk By Justin Clifton City Manager Date:Date: APPROVED AS TO FORM: By Jeff Ballinger City Attorney Date: I AIRLINE: Name: By: Title: Address: I