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HomeMy WebLinkAbout2023-04-19 AIRPORT COMMISSION AGENDA11. AIRPORT COMMISSION MEETING AGENDA Airport Conference Room, Palm Springs International Airport 3400 E. Tahquitz Canyon Way, Palm Springs, CA 92262 Wednesday, April 19, 2023 - 5:30 P.M. Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference. There will be in-person public access to the meeting location. To submit your public comment to the Airport Commission electronically. Material may be emailed to: Christina.brown@palmspringsca.gov - Transmittal prior to the start of the meeting is required. Any correspondence received during or after the meeting will be distributed to the Airport Commission and retained for the official record. This is a hybrid in-person and virtual meeting. To virtually observe the meeting or to virtually provide public comments, please use the following Zoom link https://us02web.zoom.us/j/86019815290?pwd=ZitOZDIyeGZhNUNEQTVkU29nTUdPdz09 or call (669) 900-6833 and enter Meeting ID: 860 1981 5290 - Passcode: 583916 City of Palm Springs: Riverside County: Paul Slama City of Cathedral City: Tony Michaelis City of Palm Desert: Kevin Wiseman Aftab Dada - Chair David Feltman Kevin J. Corcoran Vice Chair Ken Hedrick City of Indian Wells: Paul Budilo City of Coachella: Denise Delgado City of Rancho Mirage: Keith Young Gerald Adams Scott G. Miller Patricia Breslin John Payne City of La Quinta: Kathleen Hughes City of Desert Hot Springs: Jan Pye City of Indio: Rick Wise Todd Burke M. Guillermo Suero Palm Springs City Staff Scott C. Stiles Harry Barrett Jr., A.A.E. Jeremy Keating City Manager Airport Executive Director Assistant Airport Director 1.CALL TO ORDER – PLEDGE OF ALLEGIANCE 2.POSTING OF AGENDA 3.ROLL CALL 4.ACCEPTANCE OF AGENDA 5.PUBLIC COMMENTS: Limited to three minutes on any subject within the purview of the Commission 6.APPROVAL OF MINUTES: Minutes of the Airport Commission Regular Meeting of January 18, 2023 Airport Commission Meeting Agenda April 19, 2023 – Page 2 _______________________________________________________________________________________ 7.INTRODUCTIONS AND PRESENTATIONS: 7.A City Manager Scott Stiles 7.B City Clerk Brenda Pree 7.C Airport Commissioner Rick Wise (Indio) 8.DISCUSSION AND ACTION ITEMS: 8.A Commissioner Terms 8.B Brown Act Rules on Discussing Agenda Items 8.C Airport Commission Meeting Time 8.D Agreement with Fuse Connect, LLC 8.E Marketing Update 8.F Budget and Finance Committee Update 8.G Financial Summary Update 8.H Airport FY23-24 and FY24-25 Budget Review 8.I Operations, Properties and Facilities Committee Update 8.J Concessions Update 8.K Ad Hoc Master Plan Review Committee / Working Group 8.L AULA Update 8.M Projects and Airport Capital Improvement Program Update 8.N Wi-Fi 8.O Airport Technology 9.EXECUTIVE DIRECTOR REPORT 10.COMMISSIONERS REQUESTS AND REPORTS 11.REPORT OF COUNCIL ACTIONS: 11.A Past City Council Actions 11.B Future City Council Actions 12.RECEIVE AND FILE: 12.A Airline Activity Report March 2023 12.B Airline Activity Report Fiscal Year Comparison 13.COMMITTEES: 13.A Updated Committee Roster 13.B Future Committee Meetings ADJOURNMENT: The Airport Commission will adjourn to a Regular Meeting on May 17, 2023, at 5:30 P.M. Airport Commission Meeting Agenda April 19, 2023 – Page 3 _______________________________________________________________________________________ AFFIDAVIT OF POSTING I, Harry Barrett, Jr., Airport Executive Director, City of Palm Springs, California, hereby certify this agenda was posted on April 13, 2023, in accordance with established policies and procedures. PUBLIC NOTICES Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Way. Complete Agenda Packets are available for public inspection at: City Hall Office of the City Clerk. Agenda and staff reports are available on the City’s website www.palmspringsca.gov. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at (760) 323-8204. It is the intention of the City of Palm Springs to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Department of Aviation, (760) 318-3800, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. Page 1 of 13 AIRPORT COMMISSION ACTION SUMMARY MINUTES OF REGULAR ADJOURNED MEETING January, 18, 2023 – 5:30 P.M. 1.CALL TO ORDER: Vice Chairman Corcoran called the Airport Commission Meeting to order at 5:30 P.M., and he invited Commissioner Adams to lead the Pledge of Allegiance. The meeting was held in-person and via videoconference. 2.POSTING OF THE AGENDA: Posted on January 12, 2023. 3.ROLL CALL: Commissioners Present: Gerald Adams (Palm Springs) Scott G. Miller (Palm Springs) Patricia Breslin (Palm Springs) John Payne (Palm Springs) Paul Budilo (Indian Wells) Jan Pye (Desert Hot Springs) Todd Burke (Palm Springs) Jhan Schmitz (Indio) Kevin Corcoran (Palm Springs) – Vice Chair Paul Slama (Riverside County) David Feltman (Palm Springs) M. Guillermo Suero (Palm Springs) Ken Hedrick (Palm Springs) Kevin Wiseman (Palm Desert) Commissioners Absent: Aftab Dada (Palm Springs) – Chair, Kathleen Hughes (La Quinta) and Gabriel Martin (Coachella) Staff Present: Harry Barrett, Jr., Airport Executive Director Jeremy Keating, Assistant Airport Director Daniel Meier, Deputy Director of Aviation, Marketing and Air Service Victoria Carpenter, Airport Administration Manager Kristopher Mooney, Assistant Director of Finance Christina Brown, Executive Administrative Assistant Others Present: Gary Wexler, Gary Wexler Design Ryan Hayes, Mead & Hunt – Project Manager, Aviation Services Chuck McCormick, Mead & Hunt – Southwest Market Lead ITEM 6 DRAFT Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 2 of 13 4. ACCEPTANCE OF THE AGENDA: ACTION: Accept the Agenda as presented. Moved by Commissioner Hedrick, seconded by Commissioner Breslin and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. 5. PUBLIC COMMENTS: Dorian Whitney, Cathedral City resident, said that he felt that the legitimate business ordinance was a bad idea because he believed that the Airport passengers would end up being bothered by the enforcement of the ordinance, and he said that he felt that it was cruel and heartless to make it more difficult for the unhoused people. 6. APPROVAL OF THE MINUTES: ACTION: Approve the minutes of the Airport Commission meeting of October 19, 2022. Moved by Commissioner Hedrick, seconded by Commissioner Breslin and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. 7. INTRODUCTIONS AND PRESENTATIONS: 7.A Design History and Review of the Airport Terminal Gary Wexler provided a presentation to the Commission on Donald Wexler, FAIA: Design history and review of the Palm Springs Airport Terminal 1963 – 1966. Vice Chairman Corcoran said that the presentation was impressive and that it was an important reminder of the Airport’s mission to embrace the history and values of the Airport moving forward. 8. DISCUSSION AND ACTION ITEMS: 8.A 2023 Airport Commission Meetings Vice Chairman Corcoran said that he had spoken with several Commissioner’s about Chairman Dada’s proposal to reduce the number of Commission meetings, he said that Chairman Dada was rescinding his proposal, and he said that the consensus of most of the Commissioners was that with the amount of work that the Commission needs to do and the important issues that the Airport has, this was not the time to reduce the number of meetings. Vice Chairman Corcoran explained that Chairman Dada’s intent was to recognize the number of subcommittee meetings that the Commissioners have been committed to and that he was concerned that the commitment was becoming much bigger than the Commission had intended it to be. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 3 of 13 Airport Executive Administrative Assistant Brown presented the 2023 Airport Commission meeting schedule, and Vice Chairman Corcoran noted that the Commission would be dark in August. Vice Chairman Corcoran asked Ms. Brown to present the current list of subcommittees, and he suggested that the Landscape Committee could be combined with the Operations, Properties and Facilities Committee and that the Operations, Properties and Facilities Committee could also oversee the Public Arts Commission’s proposals for different art installations at the Airport. Vice Chairman Corcoran noted that the agendas for most of the committee meetings and the Commission meetings have grown substantially which has had a significant impact not only in terms of time and people’s bandwidth, it also has a significant impact on the Airport staff. Ms. Brown reported that from 2019 to 2021 there were 19 Commission and Committee meetings held in each year, and in 2022, the number of meetings held went up to 28. She said that in regard to Commissioner Wiseman’s question that was in regard to the amount of time that it takes to prepare the agenda, she wanted to clarify that it wasn’t the preparation of the agenda that was taking up the majority of her time, it was the additional requests and correspondence, and the additional sets of minutes that she has to prepare that was adding the most time to her workload. Ms. Brown explained that it takes her approximately two hours to prepare the Commission agenda and that it takes much longer to prepare for a Committee meeting because the following steps need to be completed to organize a Committee meeting: 1) The Airport staff’s availability needs to be confirmed; 2) The meeting date is proposed to the Committee Chair; 3) When the date is approved by the Committee Chair, the proposed date is provided to the committee members to confirm their availability; 4) Once the committee member’s availability is confirmed, an email is sent to the Committee to confirm the meeting date; 5) The agenda topics are discussed and confirmed with the Committee Chair; 6) The agenda packet is created; 7) The agenda packed is emailed to the Committee; and 8) The agenda cover sheet is emailed to the Commission. Ms. Brown provided a graph to demonstrate the total hours it takes to transcribe the meeting minutes per year which showed that the hours went from 270 hours in 2021 to 419 hours in 2022. She explained that in her experience, it takes two hours per page to transcribe the minutes and that the two hours is factoring in the time that it takes to formulate the discussion and that the most important aspect of transcribing the minutes was to make sure that the discussion is clear and concise for the public and that the Commissioner’s views have been accurately expressed. Ms. Brown said that the hours have increased significantly because of the increase in the number of meetings and the length of the meetings. Ms. Brown provided a graph to demonstrate the number of emails that she had received and sent from December 2021 to December 2022, and she reported that from December 2021 to August 2022, she had been receiving and sending Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 4 of 13 approximately four emails per day and that from September 2022 to December 2022, the number increased to approximately nine emails per day. Ms. Brown noted that while some of the emails she could quickly respond to, many of the emails required her to research past Commission minutes and Airport documents, to work with additional staff to get the needed information, to have discussions with Chairman Dada and Vice Chairman Corcoran, and she said that there were also situations where staff has to meet with the Interim City Manager and the City Attorney. Ms. Brown respectfully reminded the Commission that the Airport staff also has full workloads that are separate from working with the Commission, and she said that keeping up with the demand of the Commission and Committees on top of staff’s full workloads can be a struggle. Ms. Brown assured the Commission that there was one thing that the Airport staff was not struggling with and that was the passion that each of the Airport staff have for making the Airport the best it can be and that is why the Airport staff work late nights and weekends. Vice Chairman Corcoran said that the Commission would have an opportunity to think about what has been presented to them, and he said that there would be a separate agenda item to discuss the Commissioner’s swim lanes and responsibilities, and how the Commission could be more efficient in the meetings. He said that he believed that there was a sensitivity around the number of hours that the Commissioners are committing, especially to the subcommittees which has increased across the board. Vice Chairman Corcoran also referred to the Executive Director’s Report, and the reference in the report to some of the important projects that are not moving forward because the Airport doesn’t have the staff that is needed, and he said that he believes that adequate staffing was a part of the issue. Vice Chairman Corcoran encouraged the Committee Chairs to work on having efficient agendas and to have the information put in writing ahead of time. ACTION: Approve the 2023 Airport Commission meeting schedule. Moved by Commissioner Miller, seconded by Commissioner Hedrick and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. Commissioner Feltman noted that the Airport is a growth enterprise and that with growth enterprises, you add staff in concert with the growing aspirations of the enterprise, he said that the Airport should not be fearful or apologetic about staffing up in the way that the Airport needs to conduct Airport business, and he suggested that the Airport should be big and bold when assessing what the Airport needs to move forward and to accomplish the Airport’s collective goals. Commissioner Wiseman suggested folding the Noise Committee into the Operations, Properties and Facilities Committee. Vice Chairman Corcoran said that he believed that there was an ordinance that required there to be a separate Noise Committee. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 5 of 13 Ms. Brown said that she had confirmed with the City Attorney that per the City ordinance, the Noise Committee is required to be a separate Committee, and she said that the City Attorney also noted that it could be difficult to fold the Noise Committee into another Committee because the ordinance has a specific formatting of who can be on the Committee and the number of members. Commissioner Wiseman suggested that the ordinance should be changed. Vice Chairman Corcoran said he was in support of pursuing the changing of the ordinance. Commissioner Payne suggested that the Commission should replace the subcommittees and ad hoc committees with working groups that would not require public meetings. Vice Chairman Corcoran said that he supported Commissioner Payne’s idea, and he said that he would like to run the idea by City staff to see if there are any objections to the idea. ACTION: Combine the Ad Hoc Landscape Committee into the Operations, Properties and Facilities Committee, and the Operations, Properties and Facilities Committee will oversee the Airport artwork proposals. Moved by Commissioner Miller, seconded by Commissioner Payne and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. Vice Chairman Corcoran said that in regard to the election of Airport Commission Chair and Vice Chair, there hadn’t been any discussions about when the City Council would be ready to begin interviewing Commission candidates, he said that he believed that the process was pending the hiring of the new City Manager, and he also said that he didn’t believe that there would be anything to prevent the Commission from having the election in June. Commissioner Hedrick noted that his term would be ending on June 30, 2023, and he asked if he would be able to stay on the Commission if the City hadn’t moved forward with the appointments and reappointments. Airport Executive Director Barrett said that the extension of Commissioner terms could be reviewed on a case-by-case basis. Commissioner Miller suggested that the Commission recommend that the City Council change the Municipal Code to allow Airport Commissioners to serve four-year appointments because of the long-term projects at the Airport. Airport Executive Administrative Assistant Brown explained that the recommendation would need to go through Mr. Barrett to the City Manager, and the City Manager would present the recommendation to the City Council. Commissioner Miller said that he believed that the Commission could go directly to the City Council. Ms. Brown explained that Mr. Barrett was the current Airport Commission liaison. Commissioner Payne inquired about the possibility of a City Council liaison coming back to participate in the Commission meetings. Ms. Brown said that the matter was discussed at the previous City Council meeting, she said that Councilmember deHarte had offered to be the Airport liaison, several of the councilmembers explained that Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 6 of 13 being a liaison could be burdensome because the councilmembers basically become staff for the commission, and the City Council decided to table the discussion until the new City Manager was onboarded. 8.B Ad Hoc Design Review Committee Update Committee Chairman Corcoran said that the Committee had a productive meeting with Paradies Lagardère (Paradies), and he said that there were several key items that had come out of the meeting. One item was that El Mirasol and Coachella Valley Coffee Co. would be located at the former Celebrity Bistro location, and the Committee wanted know what could be done to make people aware of those two locations to help facilitate traffic in that direction. He said that staff was looking into if the reflection pool was under the protection of historic preservation or if the space could be redeployed to make it more user friendly. Another item was that the menus needed to include more healthy food items, and he said that Paradies would be coming back with revised menus that would have healthier items. Committee Chairman Corcoran referred to the top of the Bono Concourse, and he said that the Chihuly sculptures would be removed and that Paradies would be adding a bar in that location. He said that there had been a discussion about utilizing the bar as a branding space to promote major local events. Committee Chairman Corcoran noted that both Paradies and The Marshall Retail Group (MRG) would be using a significant amount of technology which raised several questions about IT specifications and there being enough coverage and bandwidth. Committee Chairman Corcoran said that there had been discussions with both Paradies and MRG about allowing vendors that had been included in a competing proposal to partner up with Paradies and MRG, and he said that Paradies and MRG were open to the idea. Airport Administration Manager Carpenter said that Paradies and MRG would be surveying the community for new products and services on a regular basis, she said that there was a point of contact for Paradies and MRG that were listed on the Airport’s website for vendors that are interested in partnering up with them and she said that the Airport staff would be holding weekly working group meetings with Paradies and MRG. Committee Chairman Corcoran said that the meeting with MRG went very well, he said that he felt that several of the stores could be branded more specifically for Palm Springs, and he said that MRG was open to the Committee’s ideas. He noted that Commissioner Wiseman had voiced his support for having stores that are branded to represent the whole valley. Committee Chairman Corcoran said that MRG had presented an idea for a mobile coffee cart. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 7 of 13 8.C Noise Committee Update Airport Executive Director Barrett reported that the Airport had received the following noise complaints: a) One general aviation and one military aircraft noise complaint for the month of July; b) One general aviation noise complaint for the month of August; c) One commercial aircraft noise complaint for the month of September; d) One commercial aircraft noise complaint for the month of October; e) One commercial aircraft and one military noise complaint for the month of November; and f) Two commercial aircraft noise complaints for the month of December. Mr. Barrett also reported that the Airport was entering into the final stages of the Master Plan study which would have an impact on noise. Committee Chairman Wiseman noted that Mr. Barrett had encouraged the committee members to provide feedback and input from the community, and he said that he had requested that the Airport review the past noise complaints to assess if there was a particular directionality where complaints were heaviest which could help determine where a potential noise barrier could be most effective. 8.D Banned Booty Runway Artwork Display Airport Executive Administrative Assistant Brown said that the Banned Booty Runway artwork display had been presented at the October Commission meeting and that the Commission had requested that the Airport staff bring the item back to the Commission so that Publics Arts Commissioner Armstrong could work with staff to determine the best location for the artwork. Ms. Brown presented Option A which was located to the right of the main terminal entrance and in the center of the walkway, and Option B which was located to the right of the main terminal entrance and the artwork would be placed along the wall. Ms. Brown said that staff believed that Option A would provide the best customer experience. Commissioner Wiseman asked if staff had any concerns in regard to Option A creating a passenger traffic jam. Airport Executive Director Barrett said that staff believed that Option A would create a natural delineator which would be helpful for TSA. Commissioner Burke asked if staff had reviewed the location of Option A with Public Arts Commissioner Armstrong because he believed that Public Arts Commissioner Armstrong had said that he wanted to place a plaque on the wall that would provide information on the artwork. Mr. Barrett said that staff could reach out to Public Arts Commissioner Armstrong to coordinate where the plaque could be placed for the artwork. ACTION: Approve Option A. Moved by Commissioner Hedrick, seconded by Commissioner Miller and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 8 of 13 8.E Airline Schedule Airport Executive Administrative Assistant Brown presented an example of the airline schedules that have been provided in the Commission agenda packets, and she explained that the schedules had been prepared by the former Executive Program Administrator and that it takes six hours to prepare the schedules. Ms. Brown said that before staff continues to provide the schedules, she wanted to confirm that the Commission still needs to receive the schedules. Commissioner Payne noted that the airline schedules only provide airside information, he said that he believed that a metrics could be created that would include information for the terminal, airside, and landside and that it could be presented in a more consumable way for staff and the Commission, and he said that he would like to see the year-over-year trends and how it affects operations. Commissioner Miller noted that it was also important to consider what information could be useful for the public. 8.F Marketing Update Deputy Director of Aviation, Marketing and Air Service Meier provided the January 2023 marketing and air service update. Commissioner Adams asked if the Airport was experiencing any constraints on the early morning flights. Airport Executive Director Barrett said that although there were more constraints being added, the constraints weren’t currently affecting the early morning flights. Commissioner Breslin inquired about the Airport logo. Mr. Meier said that he was hoping that the logo and the website would be completed by May. Commissioner Payne requested that Mr. Meier report his program spending in the marketing update. 8.G Measure J Airport Administration Manager Carpenter provided background information on Measure J for the Commission, and she said that to date, the Airport has approximately $1.3 million in Measure J funds to use on capital expenditures or operating costs. She said that Airport staff would be budgeting the projects for FY24 that the Measure J funds would be used for, and staff would be presenting the proposed projects to the Budget and Finance Committee. Assistant Director of Finance Mooney said that the Measure J Committee had been budgeting $200,000 per year since the FAA rule went into effect in 2017, and the funds were coming from the sales tax that is collected on aviation jet fuel. Mr. Moody Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 9 of 13 explained that it was difficult to pinpoint the exact amount, and he said that the first step for the Finance Department staff would be to make sure that the process could be re-implemented to confirm that the amount of $200,000 a year was the correct amount. Once the amount is confirmed, the next step would be for the Airport staff to present a list of the recommended projects to the Airport Commission and Measure J Commission for their approval. Mr. Moody said that staff would need to determine if the Airport Commission and the Measure J Commission would be meeting jointly or separately. Mr. Moody noted that the FAA rule was designed for all local taxes, and in addition to the 1% Measure J sales tax, the Finance Department believes that the Measure D .5% sales tax also qualifies, and if it does qualify, the Finance Department will recover those funds retroactively to 2018. Commissioner Miller inquired about the use of the funds. Mr. Moody said that he would need to get clarification from the City Attorney on how the funds can be used, and the approval process for the Airport Commission and Measure J Commission. 8.H Financial Summary Update Airport Administration Manager Carpenter noted that the financial summary for the period ending December 31, 2022, had been provided in the agenda packet. 8.I Master Plan Agreement Airport Executive Director Barrett presented the history of the previous Airport Master Plans, the issues that the Airport was facing that the new Master Plan would address, and the scope of work for the Master Plan. He reviewed the RFP process for selecting the consultant Mead & Hunt, he said that the agreement would be presented to the City Council for approval on January 26th, and he also reviewed the Airport staff, Commissioners, and City staff that would be participating in the Master Plan working group. Ryan Hayes, Project Manager with Mead & Hunt, provided a preview of the Master Plan process. Commissioner Payne referred to the Phase 1 and 2 project schedules, and he asked if the payment schedule was deliverable based. Airport Administration Manager Carpenter explained that the Airport staff would be reviewing the submitted invoices, and the paid invoices would be sent to the FAA for reimbursement along with the progress reports. Mr. Hayes also explained that working papers would be submitted to the working group, the working papers would become chapters in the Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 10 of 13 Master Plan report, and the invoices would be sent on a percent complete basis. He said that once a working paper was delivered to the working group, the working group would submit their comments, Mead & Hunt would address the comments, and then Mead & Hunt would submit an invoice for that percentage of the Master Plan. Commissioner Payne asked if Mead & Hunt would be providing a financial plan. Mr. Hayes said that a financial analysis in terms of how to pay for the Master Plan’s recommended capital improvements was included in the scope of work, and he said that some of the projects could be funded by multiple sources. ACTION: Recommend that the Palm Springs City Council approve a Master Plan agreement with Mead & Hunt. Moved by Commissioner Miller, seconded by Commissioner Hedrick and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. 8.J Projects and Airport Capital Improvement Program Update Airport Executive Director Barrett noted that the update had been provided in the agenda, and Assistant Airport Director Keating provided an update on the Common Use project. Commissioner Payne inquired about the Baggage Handling System (BHS) litigation. Mr. Barrett said that he did not have an update on the BHS litigation. Commissioner Payne asked what the issue was and why there was a delay. Mr. Barrett said that it was up to the City Council to decide how to proceed with the litigation, and to what degree they want the Commission to be involved in the litigation process. 9. EXECUTIVE DIRECTOR REPORT 9.A Legitimate Business Ordinance Update Airport Executive Director Barrett said that the ordinance would be presented to the City Council on January 26th, and he said that the ordinance would help the Police Department enforce the removal of anyone that wasn’t conducting legitimate business at the Airport, and he said that the ordinance was being coordinated by the Police Department with the Airport staff’s input. Commissioner Miller said that according to the City’s Municipal Code, Mr. Barrett already had the authority to establish and enforce these rules, and he suggested that Mr. Barrett discuss the matter with the City Attorney. Mr. Barrett said that he was aware of the Municipal Code, he explained that the issue comes down to how the Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting January 18, 2023 Page 11 of 13 Police Department can enforce the law without any legal ramifications, and he said that the ordinance would take care of that issue. 10. COMMISSIONERS REQUESTS AND REPORTS Commissioner Payne requested that an agenda item be added to the February agenda to discuss the USO. Commissioner Miller asked if the Commissioners that were assigned to the Master Plan working group would be receiving a meeting schedule for the year. Mr. Barrett explained that some of the scheduling would be dependent on FAA approval and aeronautical approval, and he said that it would be difficult to provide a meeting schedule for the year. 11. REPORT OF CITY COUNCIL ACTIONS: 11.A Past City Council Actions 11.B Future City Council Actions 12. RECEIVE AND FILE: 12.A Airline Activity Report December 2022 12.B Airline Activity Report Fiscal Year Comparison 13. COMMITTEES: 13.A Future Committee Meetings 14. ADJOURNMENT: ACTION: Adjourn the meeting. Moved by Commissioner Hedrick, seconded by Commissioner Adams and unanimously approved noting the absence of Chairman Dada and Commissioners Hughes and Martin. The Airport Commission adjourned at 7:55 P.M. to a Regular Meeting on February 15, 2023, at 5:30 P.M. Christina Brown Executive Administrative Assistant Post Off ice Box 2743 • Palm Springs, California 92263-2743 City o f Palm Springs Office of the City Attorney 3200 E. Tahquitz Canyon Way • Palm Springs, California 92262 Tel: 760.323.8205 • Fax: 760.322.8332 • TDD 760.864.9527 • www.palmspringsca.gov M E M O R A N D U M To: Palm Springs Airport Commission Members Cc: Scott C. Stiles, City Manager From: Jeff Ballinger, City Attorney Date: April 19, 2023 Re: Brown Act Rules Pertaining to Discussion of Items not on the Agenda INTRODUCTION: Pursuant to the rules set forth by the Brown Act, every regular meeting of a local legislative body (i.e. the Airport Commission) must be preceded by a posted agenda that advises the public of the meeting and the matters to be discussed therein. The purpose of this memorandum is to briefly discuss the general rule pertaining to the discussion of items not on a Commission meeting agenda, as well as exceptions to the general rule. DISCUSSION: While members of the public may generally discuss anything within the jurisdiction of the Commission during a regular meeting, Commission Members cannot. The Brown Act expressly prohibits Commission Members from the discussing, deliberating, or taking any action on an item that is not listed in a meeting agenda.1 Notwithstanding this general rule however, there exist certain exceptions under which Commission Members may discuss items outside of the meeting agenda. These exceptions2 are: •Asking a question with the purpose of seeking clarification on an issue; •Responding to a question posed by a member of the public on an issue; •Making a brief announcement; •Making a brief statement reporting on a Commission member’s own activities; •Providing a reference to Commission staff or other resources for additional factual information; 1 See Cal. Gov’t Code § 54954.2(a)(3) 2 Id. ITEM 8.B 2 | Page ___________________ Post Of f ice Box 2743 • Palm Springs, California 92263-2743 • Requesting that Commission staff report back at a subsequent meeting concerning any matter; • Requesting Commission staff to place a matter of business on a future agenda; or • A brief response to statements exercising their public testimony rights during public comment3 The purpose of these exceptions is to provide Commission Members with the ability to address members of the public, ask questions, or otherwise make certain statements under limited circumstances without being in violation of the Brown Act. The primary challenge here however, is determining how to properly utilize these exceptions without them subsequently turning into Brown Act violations. The following are examples of how using the exceptions above improperly can subsequently turn into a violation of the Brown Act, as well as guidance on how to avoid these common mistakes.  Going on too long in response to a public comment. Although the topics of what will be discussed during the public comment section of a Commission meeting do not have to be listed on the agenda, the items for Commission comment do. Commission Members may briefly respond to the public, but only on issues raised by the public. If a Commission member’s response goes on longer than necessary to respond to the public on an issue, it may unintentionally turn into a separate off-agenda item, in violation of the Brown Act. This is especially true if more than one Commission member responds to the public on the same issue. A good rule of thumb is to spend no more than the same amount of time given to the public for comment to respond.  Straying too far off agenda topics. Sometimes members of a legislative body will necessarily raise collateral points to illustrate background, context, or justification for their votes. In instances where a meeting agenda contains broad policy topics for discussion and not specific action (e.g., the Commission’s annual retreat), more flexibility for discussion or comment may be appropriate. However, Commission Members should make sure that their discussion or comments do not stray so far off from the agenda topic that the off-topic discussion or comment could not have been reasonably anticipated by the public.  “Commission Member Requests and/or Reports.” This agenda item is usually intended to provide Commission Members the opportunity to report on “Commission member activities,” especially those involving travel or meals that must be reported publicly (i.e. “AB 1234 Reports”). A good rule of thumb is to avoid saying anything that expresses an opinion on something that could come before the Commission in the future.  “Executive Director Report.” This agenda item is usually intended to allow the Executive Director to provide a brief update on ongoing Airport matters or highlight 3 See Cal. Gov’t Code § 54954.3 3 | Page ___________________ Post Of f ice Box 2743 • Palm Springs, California 92263-2743 issues that may be placed on a future agenda. Commission Members may ask brief follow-up questions or provide a brief response for this item. Commission Members should avoid responding or otherwise initiating a debate by offering a counter-point to another Commission member comment or question. Additionally, there is a risk of a Brown Act violation if a significant amount of Commission Members wish to ask questions or comment on something within the Executive Director Report. If the Commission wishes to have an in-depth discussion on a topic within the Executive Director Report, the proper course of action would be to request that the topic be placed on a future agenda for discussion.  Pre-debating future agenda items. Traditionally, this has been the most difficult issue for legislative bodies to navigate, because it is very difficult to request that an item be placed on a future agenda for discussion without providing some explanation and context. To remain within the bounds of the Brown Act, Commission Members must avoid providing any sort of opinion or commentary along with the request to place an item on a future agenda. Again, other Commission Members should avoid responding or otherwise initiating a debate by offering a counter-point. This is not the time to argue a position on the item; this should occur only after an item has been placed on an agenda for discussion. CONCLUSION: The Brown Act prohibits Commission Members from the discussing, deliberating, or taking any action on an item that is not listed in a meeting agenda. Notwithstanding this prohibition however, there exist certain exceptions under which Commission Members may discuss items outside of the meeting agenda to provide Commission Members the ability to address members of the public, ask questions, or otherwise make certain statements under limited circumstances without being in violation of the Brown Act. Determining how to properly utilize the exceptions however, can be difficult. By reading and understanding both the common mistakes and guidance provided above, Commission Members can avoid committing Brown Act violations. Preventing Brown Act violations is important because by doing so, the Commission can avoid incurring the legal expenses associated with having to “cure” or “correct” Brown Act violations. Most importantly however, preventing Brown Act violations avoids the negative publicity or perception that the Commission and its members are not acting openly and transparently with the public. As always, please feel free to contact this office with any questions. AIRPORT COMMISSION STAFF REPORT DATE: APRIL 19, 2023 SUBJECT: APPROVE CONCESSION AGREEMENT WITH FUSE CONNECT, LLC FOR AIRPORT ADVERTISING CONCESSIONS AT PALM SPRINGS INTERNATIONAL AIRPORT FROM: Harry Barrett, Jr., Airport Executive Director SUMMARY Palm Springs International Airport (Airport) proposes to recommend to City Council the approval of a three-year concession agreement with two one-year options for advertising concessions with Fuse Connect, LLC (Fuse). RECOMMENDATION: This action will recommend to City Council the approval of a Concession Agreement with Fuse Connect, LLC for an initial three-year term beginning July 1, 2023, through June 30, 2026, with two one-year extension options at the City’s sole discretion. BACKGROUND: In 2009, Corey Airport Services was selected as the Airport advertising concessionaire with a five-year agreement after a national solicitation was conducted. In 2014, another national solicitation was conducted, and Corey Airport Services was awarded another five-year contract. In 2017, Lamar Alliance Airport Advertising Company (Lamar) purchased Corey Airport Services assuming the contract, and Lamar is currently providing these services at the Airport. It has been six years since the Airport has undertaken a competitive national solicitation process for Airport Advertising Concessions, but the incumbent concessionaire has been in place for fourteen years. Given the length of the incumbent agreement and record volume of traffic at the Airport in 2022, the Airport proceeded to develop a solicitation for new Airport Advertising Concessions to update advertising fixtures and locations, reduce visual clutter in the baggage claim, and find new, creative and innovate ways to increase advertising revenues. ITEM 8.D Airport Commission Staff Report April 19, 2023 -- Page 2 Award Airport Advertising Concession Agreement STAFF ANALYSIS: An RFP (RFP 27-23) was initiated by the City’s Procurement & Contracting Department on February 20, 2023, based on the Airport’s specifications and goals. Proposals were solicited directly via the City’s procurement vendor portal, PlanetBids and advertised in The Desert Sun for a total of 30 days. A pre-proposal meeting was held on February 28, 2023 to review the RFP and Procurement requirements to submit a proposal. A site tour of all existing advertising concession locations was provided. Two companies attended. Lamar Airport Advertising, Qfactor Airport Advertising, and Fuse Connect, LLC each submitted a proposal. The evaluation committee, consisting of Senior Airport Staff and an aviation consultant, evaluated the proposals against the evaluation criteria outlined in the RFP which consisted of firm's qualifications and experience, staff qualifications and experience, understanding of the project and goals of the airport, and financials. The panel reviewed all proposals, evaluated the financial components and qualifications, and produced its final score and ranking where Fuse was ranked the highest of the three proposers. Key terms of the contract with Fuse includes the following: • A three-year term with two one-year options to renew • A $400,000 program investment for fixtures and displays • Additional $50,000 investment in years four and five each if options are exercised • Fuse will pay the Airport 57% of gross revenues o Prior vendor paid the airport 50% up to $800,000 and 55% over that amount • Advertising fixtures must be in-line with the terminal’s mid-century modern design • 10% of advertising space will be retained for the Airport’s marketing purposes • All fixtures and displays will become the sole property of the Airport at the end of the term One of the key changes in this new program will be a reduction of advertising locations in the baggage claim to reduce visual clutter. Many locations will be converted to digital to maintain and grow revenue. Additional locations will be added in key areas of the terminal, such as the RJ Concourse, to increase revenues, and areas outside of the terminal will be offered for potential advertising as well. Potential out-of-terminal areas include parking lot gate arms, future parking lot shuttle busses, etc. Billboards will not be allowed due to city ordinance, and no advertising will be allowed on the front of the terminal or in an area that may obstruct the view of the historic terminal. The Airport, at its sole discretion, retains final approval of all advertising fixture and display designs and locations, as well as advertisements for display on Airport property. This is a major capital investment which will be the responsibility of the concessionaire and become the property of the Airport at the end of the agreement, as will all the other Airport Commission Staff Report April 19, 2023 -- Page 3 Award Airport Advertising Concession Agreement program modifications. Because of the enhancement of the Airport advertising program, it is anticipated that revenues will grow due to the improved caliber of advertising, new locations, and passenger growth. Airport staff requests that the Airport Commission recommends to City Council the approval of this agreement. FISCAL IMPACT: In order to depict the increase revenue potential to the Airport under this new arrangement, the following is a comparison of the last four years of revenue to the Airport under the existing contract, and a line displaying what the Airport’s share would have been with the new agreement. Current Program Revenues from last four years: Period Gross Revenue Year Ending March 2020 $974,766.18 Year Ending March 2021 $486,175.18 Year Ending March 2022 $810,728.50 Year Ending March 2023 $957,540.50 Total Gross Revenue $3,229,210.36 PSP Share with current agreement $1,631,220.40 PSP Share with new agreement $1,840,649.91 Harry Barrett, Jr., A.A.E Airport Executive Director Airport Commission Meeting PSP Marketing & Air Service Report April 2023 ITEM 8.E Air Service Update March Total Passenger Count: 9.3% increase over 2022 441,290 total passengers New March record Seasonal routes ending in April: Air Canada:Toronto and Vancouver Alaska:Boise, Everett, and San Jose Avelo:Bend/Redmond and Eugene WestJet:Edmonton and Winnipeg Seasonal routes ending in May: Alaska: Portland Allegiant: Bellingham and Des Moines American: Austin and Chicago Delta: Atlanta and Minneapolis JetBlue: New York Sun Country: Minneapolis United: Chicago and Houston Route list on flyPSP.com is updated with season end and return dates. Return dates have not been published for all seasonal routes as of 4/17/23. 2023 vs. 2022 % Change May 10.3% June -12.4% July -14.4% August -16.2% 2023 -Scheduled Departing Seats *Based on 04/17/23 Schedules -Subject to change 163,193 85,126 81,645 80458 147,901 97,154 95,402 95976 117,588 82,060 87,929 85750 117156 64267 58319 58300 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 May June July August2023202220212019 2023 vs. 2019 % Change May 39.3% June 32.5% July 40% August 38% DATE: April 19, 2023 TO: Chairman Dada and Airport Commissioners FROM: Victoria A. Carpenter, Airport Administration Manager SUBJECT: Palm Springs International Airport - Financial Summary Report Ending March 31, 2023 __________________________________________________________________________ The Palm Springs International Airport (Airport) is pleased to provide the unaudited financial recap for the year-to-date revenues and expenditures ending March 31, 2023. Fund 405 Fund 405 is the airports fund for customer facility charges (CFC). CFC revenue is collected by the car rental concessionaires and remitted to the Airport according to state law to support the future consolidated rental car facility project and potential busing operations. In March 2022, City Council approved a change in the collection methodology rate from $10 per transaction to $9 per day up to five days maximum. The year-to-date revenues are about 71% of the budget amount of $7.4 million dollars, which is an increase of approximately 250% when compared to prior year. When compared to prior month, the CFC revenues increased by approximately $1.2 million dollars. The airport does not have any expenditures for the CFC fund because the airport is not actively planning the consolidated rental car facility as of fiscal year 2022-23. Fund 410 Passenger Facility Charges (PFC) revenue is comprised of a $4.50 charge (net $4.39 to the Airport after deduction of $0.11 for the airline‐ processing fee) paid by each ticketed passenger that boards an airplane at the Airport. Fund 410 is the airports passenger facility charge. The year-to-date revenue is roughly 62% of the budget of $6.8 million dollars, which is an increase of approximately 17% when compared to prior year. When compared to prior month, the PFC revenues increased by approximately $854 thousand dollars. Page 1 of 10 ITEM 8.G There is an expenditure of approximately $446 thousand dollars for the first payment of the debt service principal and interest. The next expenditure for debt service will be made in the month of June 2023. Fund 415 Fund 415 tracks all the revenues and expenditures for operating and maintaining the Airport. The year-to-date revenue is around 99% of the budgeted $41 million dollars. The airport collected approximately $5.9 million dollars of the CARES Act funds and approximately $9.3 million dollars of the ARPA – Airport funds. The federal relief grants account for 37% of the revenues for fiscal year 2022-23. Three key revenue generating sources are the on airport rental car, leased parking, and terminal non-airline rentals. On-airport rental car generated about $8.0 million in revenue, which is about $1.6 million more than February 2023 revenue. Leased parking includes the airport’s public parking which generated about $4.7 million dollars, an increase of about $600 thousand dollars when compared to prior month. Terminal non-airline rentals includes revenues received from the concessionaires occupying the terminal. The terminal non-airline rentals is approximately 91% of the $1.7 million dollar budget. Fund 416 Fund 416 has a net spending of approximately $1.3 million dollars. There is an increase of approximately $823 thousand dollars of expenditures when compared to prior month because the expenditures for the FAA funded projects: Airfield Hot Spot Study, Taxiway Rehabilitation Design, Wildlife Hazard Assessment and Runway Sweeper, along with Airport projects like Common Use, Gate Striping and Network Switches. The airport intends to submit for discretionary reimbursement to the FAA in the amount of $716,732 for quarter 3. Page 2 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 405 - Customer Facility Charges FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 20-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Revenue 7,465,000 5,295,333 71%1,512,905 250%765,347 592% Operating Expenditures 2,000,000 - 0%11,978 0%68,472 0% Net Balance 5,465,000 5,295,333 97%1,500,928 253%696,875 660% - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 1 5,465,000 5,295,333 1,500,928 696,875 Fund 405 -Customer Facility Charges -Net Balance FY 22-23 Budget FY 22-23 Actual FY 21-22 Actual FY 20-21 Actual 4/13/2023Page 3 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 410 - Passenger Facility Charges FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 20-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Revenue 6,867,000 4,259,506 62%3,648,074 17%1,051,848 305% Operating Expenditures 2,521,000 446,445 18%484,420 -8%2,507,500 -81% Net Balance 4,346,000 3,813,061 88%3,163,654 21%(1,455,652) -362% (2,000,000) (1,000,000) - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 Fiscal Year 4,346,000 3,813,061 3,163,654 (1,455,652) Fund 410 -Passenger Facility Charges -Net Balance FY 22-23 Budget FY 22-23 Actual FY 21-22 Actual FY 20-21 Actual 4/13/2023Page 4 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 415 - Airport Operations & Maintenance FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 20-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Revenue 41,069,398 40,805,618 99%21,791,748 87%15,663,135 161% Operating Expenditures 33,880,956 17,764,760 52%16,555,803 7%14,692,066 21% Net Balance 7,188,442 23,040,858 321%5,235,944 340%971,069 2273% 40,805,618 21,791,748 15,663,135 87% 39% 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 FY 22-23 FY 21-22 FY 20-21 YTD Actual Revenue 17,764,760 16,555,803 14,692,066 7% 13% - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 FY 22-23 FY 21-22 FY 20-21 YTD Actual Expenditures 4/13/2023Page 5 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 415 - Airport Operations & Maintenance FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 20-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Revenue Airline Revenue Scheduled Landing Fees 3,340,000 2,382,609 71%2,263,245 5%1,312,397 82% Landing Fee Surcharge 1,783,000 1,408,495 79%1,332,878 6%409,529 244% Terminal Airline Space 2,094,000 1,609,343 77%1,612,436 0% Terminal Usage Hold Room 1,034,000 948,970 92%925,612 3% Total Airline Revenues 8,251,000 6,349,417 77%6,134,171 4%1,721,926 269% Non-Airline Revenue CARES Act 5,989,698 5,989,698 100%- 3,451,322 74% CRRSAA-Airport 1,100,000 - 0%- - CRRSAA-Concessions 4,800,000 280,390 6%- - ARPA-Airport - 9,310,342 - - Airfield Concessions 310,000 260,364 84%291,778 -11%186,254 40% Property Rental - Non Aviation 450,000 317,424 71%351,845 -10%316,830 0% Land Rental 1,223,000 1,092,250 89%1,053,290 4%1,035,248 6% Leased Parking 4,704,000 4,695,941 100%3,910,561 20%1,652,522 184% Ariport Use Permits 75,000 60,855 81%65,791 -8%37,297 63% Terminal Non-Airline Rental 1,741,300 1,587,381 91%1,099,331 44%1,481,458 7% Advertising 400,000 327,782 82%347,065 -6%164,895 99% On Airport Rental Car 8,899,000 8,029,941 90%6,842,126 17%2,842,894 182% Commerical Airport Fee 853,000 766,591 90%660,936 16%471,271 63% Taxi Access Fees 667,000 765,457 115%691,459 11%15,585 4811% Customs 349,000 279,591 80%299,661 -7%144,436 94% All Other Revenue 1,257,400 692,194 55%43,734 1483%2,141,197 -68% Total Non-Airline Revenue 32,818,398 34,456,201 105%15,657,577 120%13,941,209 12% Total Operating Revenues 41,069,398 40,805,618 21,791,748 15,663,135 CARES Act 17% CRRSAA-Airport 0% CRRSAA-Concessions 1% ARPA-Airport 27% Airfield Concessions 1% Property Rental -Non Aviation 1%Land Rental 3% Leased Parking 14% Ariport Use Permits 0% Terminal Non-Airline Rental 5% Advertising 1%On Airport Rental Car 23% Commerical Airport Fee 2% Taxi Access Fees 2% Customs 1% All Other Revenue 2% AIRPORT OPERATIONS & MAINTENANCE REVENUE 4/13/2023Page 6 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 415 - Airport Operations & Maintenance FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 20-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Expenditures Airport Administration 6,296,049 3,417,730 54%3,112,217 91%2,624,460$ 30% Airport Information Technology 27,054 - 0%- Airport Law Enforcement 3,138,357 2,214,025 71%1,980,044 89%2,013,355 10% Aviation Security - - - Airside Operations 1,054,902 266,535 25%498,796 187%369,933 -28% Airport Rescue - Fire 4,237,176 2,555,846 60%2,475,232 97%2,765,681 -8% Landside Operations 1,516,675 1,146,842 76%961,946 84%677,348 69% Grounds Maintenance 662,081 384,242 58%364,285 95%218,247 76% Terminal Building Operations 7,032,956 4,759,500 68%4,211,073 88%3,422,550 39% Passenger Boarding Bridges - 8,688 - 0%- Bagagge Handling System - 256,502 - 0%- Control Center Operations 4,285,199 2,520,279 59%2,642,323 105%2,420,880 4% U.S. Customs 276,484 207,518 75%308,447 149%179,613 16% Planning & Projects - - - - PERS Cost Recovery - - - - Budget Transfer Out 5,381,078 - 0%- - Total Operating Expenditures 33,880,957 17,764,760 52%16,554,363 61%14,692,067 13% Operating Revenues in Excess of Operating Expenditures 7,188,441 23,040,858 5,237,385 971,068 Airport Administration 19% Airport Information Technology 0% Airport Law Enforcement 13% Airside Operations 2% Airport Rescue -Fire 14% Landside Operations 7% Grounds Maintenance 2% Terminal Building Operations 27% Passenger Boarding Bridges 0% Bagagge Handling System 1% Control Center Operations 14% U.S. Customs 1% Planning & Projects 0% PERS Cost Recovery 0% AIRPORT OPERATIONS & MAINTENANCE EXPENDITURE 4/13/2023Page 7 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Fund 416 - Airport Capital Projects FY 22-23 Budget FY 22-23 Actual FY 22-23 % Of Budget FY 21-22 Actual FY 21-22 vs FY 21-23 % Change FY 20-21 Actual FY 20-21 vs FY 21-23 % Change Operating Revenue 12,038,000 2,538,899 21%13,136,664 517%13,354,627 -2% Operating Expenditures 12,038,000 3,917,926 33%11,141,879 284%12,204,057 -9% Net Balance - (1,379,027) 1,994,785 1,150,570 73% (1,500,000) (1,000,000) (500,000) - 500,000 1,000,000 1,500,000 2,000,000 1,994,785 1,150,570 Fund 416 -Airport Capital Projects -Net Balance FY 22-23 Actual FY 21-22 Actual FY 20-21 Actual 4/13/2023Page 8 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 CASH SUMMARY FY 22-23 Acutal FY 21-22 Actual FY 20-21 Actual Fund 405 34,728,820 29,400,069 24,715,577$ Fund 410 2,781,915 2,141,138 1,842,752 Fund 415 Unrestricted Sub-Total 29,371,372 8,137,160 6,568,903 Fund 416 5,863,070 7,364,842 7,806,235 34,728,820 2,781,915 29,371,372 5,863,070 29,400,069 2,141,138 8,137,160 7,364,842 $24,715,577 1,842,752 6,568,903 7,806,235 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 Fund 405 Fund 410 Fund 415 Unrestricted Sub- Total Fund 416 Cash by Fund FY 22-23 Acutal FY 21-22 Actual FY 20-21 Actual 4/13/2023Page 9 of 10 CITY OF PALM SPRINGS Financial Summary Ending March 31, 2023 Coronavirus Aid, Relief, and Economic Security Act (CARES) - Expires - May 10, 2024 Coronavirus Response and Relief Supplemental Appropriations (CRRSA)- Airport Operations Expires - April 14, 2025 Coronavirus Response and Relief Supplemental Appropriations (CRRSA)- Concessions Expires - May 31, 2025 American Rescue Plan Act of 2021 (ARPA) - Concession Expires - May 31, 2025 American Rescue Plan Act of 2021 (ARPA) - Airport Operations Expires - August 10, 2025 Bipartisan Infrastructure Law (BIL)* Expires - 2027 Beginning Balance 11,067,877 4,785,805 280,390 1,121,560 10,791,632 10,366,004 Use as of 3/31/23 11,067,877 ---9,310,342 - Remaining Balance -4,785,805 280,390 1,121,560 1,481,290 10,366,004 $11,067,877.0 $4,785,805.0 $280,390.0 $1,121,560.0 $10,791,632.0 $10,366,004.0 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Grants -Remaining Balance 4/13/2023Page 10 of 10 PRELIMINARY BUDGET FISCAL YEARS 2023-2024 & 2024-2025 April 17, 2023 ITEM 8.H City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget Fund 405 - Customer Facility Charge Beginning Fund Balance 25,476,706$ 26,768,209$ 30,426,667$ 30,426,667$ 38,326,667$ 36,532,994$ Revenues 1,391,343 3,759,413 7,465,000 7,920,000 8,806,327 9,011,451 Expenditures (99,841) (100,956) (3,123,265) (20,000) (10,600,000) (3,000,000) Ending Fund Balance 26,768,208$ 30,426,667$ 34,768,402$ 38,326,667$ 36,532,994$ 42,544,445$ Fund 410 - Passenger Facility Charge Beginning Fund Balance 67,929$ (7,483,354)$ (7,483,354)$ (7,483,354)$ (4,319,712)$ (13,335,913)$ Revenues 5,368,652 5,451,866 5,451,866 5,684,642 6,425,776 6,575,496 Expenditures (12,919,936) (8,926,176) (2,818,155) (2,521,000) (9,001,977) (2,507,761) Other - Tranfer to 416 - - - - (6,440,000) (25,000,000) Ending Fund Balance (7,483,354)$ (10,957,662)$ (4,849,643)$ (4,319,712)$ (13,335,913)$ (34,268,178)$ Fund 415 - Airport Fund Beginning Fund Balance 4,803,152$ 3,567,861$ 16,103,859$ 22,714,811$ 29,325,762$ 47,551,405$ Operating Revenues Revenues 19,390,945 33,050,802 29,179,700 29,179,700 61,441,375 73,886,116 Non-Operating Revenues CARES Act Grant 3,451,322 - 5,989,698 5,989,698 - - CRRSA - Airport Grant - - 1,100,000 848,630 4,783,916 - CRRSA - Concessions Grant - - 4,800,000 280,390 272,930 - American Rescue Plan Act - Airport Grant - - 6,020,652 10,791,632 - - American Rescue Plan Act - Concessions - - - - - - Operating Expenses Expenditures (24,077,558) (20,514,803) (35,093,271) (35,093,271) (37,038,945) (39,958,550) Additional & Proposed Staffing - - - - (3,500,000) (4,700,000) CalPERS Reserve Set-Aside - - - - (750,000) (750,000) Other - Transfer to 416 - - (5,385,828) (5,385,828) (6,983,634) (16,988,000) Ending Fund Balance 3,567,861$ 16,103,859$ 22,714,811$ 29,325,762$ 47,551,405$ 59,040,971$ Fund 416 - Capital Projects Beginning Fund Balance 53,044,451$ 63,683,406$ 63,683,406$ 58,600,088$ 53,516,769$ 53,516,769$ Federal Grants 5,376,115 6,983,095 7,406,922 7,406,922 29,322,366 56,662,000 Other - Transfer from 410 12,147,780 8,229,415 - - 6,440,000 25,000,000 Other - Transfer from 415 - - 4,631,078 4,631,078 6,983,634 16,988,000 Expenditures (6,884,940) (2,890,634) (17,121,319) (17,121,319) (42,746,000) (96,150,000) Ending Fund Balance 63,683,406$ 16,103,859$ 58,600,088$ 53,516,769$ 53,516,769$ 56,016,769$ FY 2024-25 Proposed Budget FY 2022-23 Revised Budget FY 2022-23 Estimated Actual FY 2023-24 Proposed Budget FY 2020-21 Actual FY 2021-22 Actual City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 Estimated Actual FY 2023-24 Proposed Budget FY 2024-25 Proposed Budget Est 2022-23 vs Budget 2023-24 % Change Budget 2023-24 vs 2024-25 % Change Aeronatical Revenues Scheduled Landing Fees 2,107,977 3,388,547 3,340,000 3,340,000 6,533,749 6,660,726 0.0%1.9% Landing Fee Surcharge 844,474 2,082,190 1,783,000 1,783,000 - - 0.0% Terminal Usage Hold Room Fee 921,012 1,374,922 1,034,000 1,034,000 4,255,690 4,512,015 0.0%6.0% Terminal Air Comm Rentals 1,971,523 2,180,132 2,094,000 2,094,000 14,173,178 15,032,402 0.0%6.1% Non-Aeronatical Revenues On-Airport Rental Car 5,263,544 11,330,331 8,899,000 11,605,521 11,944,780 12,303,124 30.4%3.0% Land Rental 1,317,324 1,358,823 1,223,000 1,223,000 1,247,329 1,409,974 0.0%13.0% Leased Parking 2,680,743 5,349,941 4,704,000 5,713,529 6,697,064 6,797,520 21.5%1.5% Term Non-Air Comm Rental 1,971,523 1,694,156 1,844,948 1,741,300 9,998,816 15,437,857 -5.6%54.4% All Other General Revenue 5,764,147 4,291,759 22,168,102 18,555,700 12,855,975 11,732,498 -16.3%-8.7% TOTAL 22,842,267 33,050,802 47,090,050 47,090,050 67,706,581 73,886,116 42.5%9.1% Scheduled Landing Fees 10%Landing Fee Surcharge 0% Terminal Usage Hold Room Fee 6% Terminal Air Comm Rentals 21% On-Airport Rental Car 17% Land Rental 2% Leased Parking 10% Term Non-Air Comm Rental 15% All Other General Revenue 19% Fiscal Year 2023-24 Airport Revenue Fund 415 Scheduled Landing Fees 9%Landing Fee Surcharge 0% Terminal Usage Hold Room Fee 6% Terminal Air Comm Rentals 20% On-Airport Rental Car 17% Land Rental 2% Leased Parking 9% Term Non-Air Comm Rental 21% All Other General Revenue 16% Fiscal Year 2024-25 Airport Revenue Fund 415 City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget Category FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Revised Budget FY 2022-23 Estimated Actual FY 2023-24 Proposed Budget FY 2024-25 Proposed Budget Est 2022-23 vs 2023-24 % Change 2023-24 vs 2024-25 Budget % Change Administration 3,986,813 (29,497) 6,573,372 6,573,372 8,954,507 9,942,145 36.2%11.0% Information Technology - - 210,000 210,000 417,442 595,320 98.8%42.6% Law Enforcement 2,825,144 2,704,992 3,138,357 3,138,357 3,125,755 3,257,741 -0.4%4.2% Aviation Security - - - - - - Airside Operations 1,660,134 1,469,874 1,068,180 1,068,180 2,239,034 2,293,184 109.6%2.4% Rescue-Fire 3,815,758 3,443,024 4,227,107 4,227,107 4,817,532 5,089,217 14.0%5.6% Landside Operations 1,131,673 1,489,331 1,538,049 1,538,049 3,053,947 3,600,536 98.6%17.9% Ground Maintenance 405,867 598,965 662,081 662,081 640,987 636,833 -3.2%-0.6% Terminal Building Operations 6,579,342 7,069,586 7,060,112 7,060,112 10,633,582 12,932,121 50.6%21.6% Passenger Boarding Bridges - - 999 13,759 120,000 120,000 772.1%0.0% Baggage Handling System - - 722,979 722,979 897,000 900,000 24.1%0.3% Control Center Operations 3,422,265 3,448,554 4,229,679 4,229,679 5,303,459 4,987,457 25.4%-6.0% Customs 250,562 333,013 276,528 276,528 335,700 303,996 21.4%-9.4% Planning and Projects - - - - - - Capital Projects - (13,039) - - - - TOTAL 24,077,558 20,514,803 29,707,443 29,720,203 40,538,945 44,658,550 36%-6% Law Enforcement 10% Aviation Security 0% Airside Operations 7% Rescue-Fire 16% Landside Operations 10% Ground Maintenance 2% Terminal Building Operations 34% Passenger Boarding Bridges 0% Baggage Handling System 3% Control Center Operations 17% Customs 1%Capital Projects 0% Fiscal Year 2023-24 Airport Expenditures Fund 415 Law Enforcement 9% Aviation Security 0%Airside Operations 7% Rescue-Fire 15% Landside Operations 10% Ground Maintenance 2% Terminal Building Operations 38% Passenger Boarding Bridges 0% Baggage Handling System 3% Control Center Operations 15% Customs 1%Capital Projects 0% Fiscal Year 2024-25 Airport Expenditures Fund 415 City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget Grant Type | Expiration Date Beginning Balance Estimated Use as of 6/30/23 FY 2023-24 Projected FY 2024-25 Projected Estimated Balance as of 6/30/23 Coronavirus Aid, Relief, and Economic Security Act (CARES) - Expires - May 10, 2024 11,067,877 11,067,877 - - - Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) - Airport Operations Expires - April 14, 2025 4,783,916 - 4,783,916 - - Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) - Concessions Expires - May 31, 2025 280,390 280,390 - - - American Rescue Plan Act (ARPA) - Airport Operations Expires - August 10, 2025 10,791,632 10,791,632 - - - American Rescue Plan Act (ARPA) - Concession Expires - May 31, 2025 1,121,560 848,630 272,930 - - Baggage Claim Expansion* Expires 2027 5,700,000 Bipartisan Infrastructure Law (BIL) * Expires - 2027 10,366,004 - - - 10,366,004 Total Grants 44,111,379 22,988,529 5,056,846 - 10,366,004 * Estimated amount Airport Grant Summary FAA GRANTS City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget No. of Projects Project Description Location Budget Funding Source Grant Share Airport Share PFC CFC 1 Telehandler/Forklift Project will improve safety by allowing workers to easily reach and maneuver heavy objects. Landside 150,000 Airport - 150,000 2 Parking Revene System Project will procure equipment, software and wayfinding to improve the public parking system. The existing system has reached its useful life. Landside 500,000 Airport - 500,000 3 Verbiage Message Signage - Digital Project will procure equipment, installation and programming of landside digital signage to convey information to travelers. Landside 800,000 Airport - 800,000 4 Property Acquisition Project will procure 8.06 acres of property south of Kirk Douglas Way for future use. Landside 8,800,000 CFC - - 8,800,000 5 Lot A, Economy Lot Parking, Employee Lot (W of El Cielo) - (Design) Project will rehabilitate 82,720 square feet of raw land into an employee parking lot, west of El Cielo. Landside 2,400,000 Airport - 2,400,000 6 Electric Charging Station Infrastructure - Chargers acquisition Project will procure 80 electric chargers to be installed in public parking lot "D". Landside 300,000 Airport ACIP 271,980 28,020 7 Solid Separator Project will procure a solid separate for the maintenance shop to separate water and hazardous waste. Airside 100,000 Airport - 100,000 8 Procure Landside Vehicles Project will procure three vehicles to replace the useful life of two Operations vehicles and procure one new vehicle for Airport Administration. Airside 210,000 Airport VALE/ZEV Grant 190,386 19,614 9 Paint Striping Truck Project will procure a paint striping truck to paint all the pavement markings, such as runway centerlines, hold lines, and taxiway markings and to be within FAA regulations. Airside 1,000,000 Airport - 1,000,000 10 Wi-Fi Consultant (Design) Project will work with a Wi-Fi consultant to design and implement wireless networks, to ensure there is enough coverage to all areas of the airport, including terminal buildings, parking lots and aprons. Terminal 150,000 Airport - 150,000 11 Wi-Fi Installation (Construct) Project will construct and install based on design.Terminal 500,000 Airport - 500,000 FISCAL YEAR 2023-24 City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget No. of Projects Project Description Location Budget Funding Source Grant Share Airport Share PFC CFC FISCAL YEAR 2023-24 12 Restroom Capacity & ADA Renovations (Construct) Project will rehabilitate ten restrooms and convert them into gender neutral bathrooms. Terminal 10,000,000 Airport BIL-ATP Grant 9,500,000 500,000 13 South Checked Baggage Inspection System (CBIS) Building Facility Expansion - (Design) Project will expand existing terminal to incorporate the newly designed baggage handling system. Terminal 20,000,000 Airport ACIP 13,560,000 - 6,440,000 14 Baggage Claim (Design) Project will procure a consultant to design the baggage claim to add additional capacity to the terminal. Terminal 6,000,000 Airport BIL-ATP Grant 5,700,000 300,000 15 Shade Area - Phase 1 Project will install shade structures in the sterile area outside of TSA checkpoint and at Nine Cities Craft by the Regional Jet Concourse. Terminal 236,000 Airport VGPS Grant 100,000 136,000 16 Carpet Replacement - Main terminal lobby and security check point Project will remove and replace 15,110 square feet of carpet in the main center terminal and security checkpoint. Terminal 400,000 Airport - 400,000 Subtotal Fiscal Year 2023-24 Projects 51,546,000 29,322,366 6,983,634 6,440,000 8,800,000 City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget No. of Projects Projects Description Location Budget Funding Source Grant Share Airport Share CFC PFC 1 Consolidated Rental Car Facility (Design)Project will improve safety by allowing workers to easily reach and maneuver heavy objects. Landside 2,500,000 CFC - - 2,500,000 - 2 Procure two Zero Emissions Buses Project will procure Zero Emissions Vehicles (ZEV) to provide transportation between the terminals and the public parking. Landside 2,000,000 Airport VALE/ZEV Grant 1,813,200 186,800 - 3 Economy Lot (Construct) - Phase 1 Project will rehabilitate 434,786 square feet of pavement for an year round economy parking lot.Landside 3,000,000 Airport - 3,000,000 - 4 Lot A (Construct) Project will convert 46,782 square feet of public parking, into a commercial parking lot adjacent to the terminal. Landside 700,000 Airport - 700,000 - 5 Airfield W & A1 - (Construct - Phase 1)Project will construct based on the design that was completed in FY23 Airfield 6,500,000 Airport ACIP BIL-AIG Grant 5,892,900 607,100 - 6 Federal Inspection Station - (Design) & New Terminal Expansion Project will include the design and new terminal expansion, based on the study which was conducted in FY23/FY24 Airfield 19,000,000 Airport BIL - Entitlement Grant 17,225,400 1,774,600 - 7 Remain Over Night (RON) Parking Spaces Project will expand the existing remain over night parking spaces to help account for increased capacity. Airfield 4,000,000 Airport ACIP Grant 3,626,400 373,600 - 8 Procure ARFF Truck - Fire Dept Project will replace one PSP Aircraft Rescue & Fire Fighting Vehicle with a vehicle equipped with 3,000 gallons water, 420 gallon of AFFF and 500 lbs. of dry chemical. Airfield 1,500,000 Airport - 1,500,000 - 9 Airfield 31L/13R Rehabilitation & Airfield Connector - (Design) Project will complete the design of the airfield 31L/13R rehabiliatation and airfield connector pavements. Airfield 1,500,000 Airport ACIP Grant 1,359,900 140,100 - 10 Arrivals Bag Claim Renovation/Expansion - (Construct) Project will comlete the construction of the baggage claim renovation and or expansion based on the design completed in FY24. Terminal 12,000,000 Airport ACIP BIL-ATP Grant 10,879,200 1,120,800 - 11 Outbound BHS Inline System Replacement - (Construct) Project will procure additional equipment needed to expand the baggage handling system into a 100% automated inline system. Terminal 10,000,000 Airport OTA Grant 9,500,000 500,000 - FISCAL YEAR 2024-25 City of Palm Springs - Palm Springs International Airport FY 2023-24 & FY 2024-25 Budget No. of Projects Projects Description Location Budget Funding Source Grant Share Airport Share CFC PFC FISCAL YEAR 2024-25 12 BHS - Terminal Building Expansion (Construct) Project will expand existing terminal building to include the newly designed baggage handling system. Terminal 25,000,000 PFC - - 25,000,000 13 Economy Lot (Construct) - Phase 2 Project will rehabilitate 434,786 square feet of pavement for a year round economy parking lot.Terminal 3,000,000 Airport 3,000,000 - 14 HVAC Infrastructure Replacement Project will replace existing HVAC system to include two boilers and three chillers with pumps. The current system is beyond its useful life. The new system will improve efficiency, reduce costs and provide a better environment for the passengers. Terminal 2,000,000 Airport BIL-ATP Grant 1,900,000 100,000 - 15 Conveyance Replacement Project will replace the existing three elevators, one in the main terminal, one passenger elevator and one cargo elevator in the Bono and two escalators which have reached their useful life. Terminal 4,700,000 Airport BIL-ATP Grant 4,465,000 235,000 - 16 Main Terminal Façade Restoration (Design)Project will restore the historic terminal façade. Terminal 500,000 Airport - 500,000 - 17 Automated Exit Lanes Project will remove the existing turnstile doors and replace with a more effient passenger exit.Terminal 750,000 Airport - 750,000 - Subtotal Fiscal Year 2024-25 Projects 98,650,000 56,662,000 14,488,000 2,500,000 25,000,000 DATE: April 19, 2023 TO: Chairman Dada and Airport Commissioners FROM: Jeremy Keating, Assistant Airport Director SUBJECT: New Airport Concessions Program Update __________________________________________________________________________ Background: Palm Springs City Council approved ten-year contracts with two concessionaire companies. The airport is in the process of converting and refreshing the existing five Food & Beverage concession spaces to seven new Food & Beverage concession spaces and converting the existing seven Retail locations into newly renovated locations As a part of the Food & Beverage Concessions program, Paradies-Largardere (PL) is expanding the food & beverage offerings byre-opening the existing Celebrity Bistro, which closed in March 2020 and converting the existing Bono Concourse fountain into Cactus to Clouds food and bar. Status: Airport staff are currently coordinating the new food & beverage concession space with (PL) and the retail spaces with Marshall Retail Group (MRG). Airport staff are meeting with both concessionaires on a weekly basis discussing a full and comprehensive range of agenda topics which include schedule coordination; requests for information; submittal review; coordination between city departments; sustainability initiatives, coordination with other agencies; such as riverside county health department and the department alcoholic beverage control; project management of store location transitions schedule; coordination with both PL and MRG information technology staff and city staff; and coordination with other airport departments. Airport staff received the first 30% design submittal for Nine Cities Craft, the food and beverage location in the Regional Jet Concourse, and there are more submittals anticipated in the month of April. All submittals are reviewed by airport staff first and approved by the Airport Director before the concessionaire submits to City Planning and Engineering. All permits are then generated by the City Building department. Airport staff are also coordinating the fine tuning of the menu offerings as well as collecting and ensuring a full offering of local vendors and brands. After the last Ad Hoc Meeting in March 2023, MRG added five new vendors to include; Shag, Brandini Toffee & Ice Cream, Coachella’s Best Dates, Modernism Week, and Destination PSP. The enclosed MRG vendor concentration by city, indicates 56% of MRG vendors are from Palm Springs, 16% from Joshua Tree and the remaining 28% are from other desert cities across the Coachella Valley. ITEM 8.J PALM SPRINGS INTERNATIONAL AIRPORT LOCAL BRANDS & PARTNERS Company Name City 1 Brandini Toffee & Ice Cream* Rancho Mirage 2 Club Time Wrap Palm Springs 3 Coachella’s Best Dates* Coachella 4 Craig Mann, Ar�st Palm Springs 5 Crush Crush Cookies Palm Desert 6 Desert Supreme Palm Springs 7 Des�na�on PSP* Palm Springs 8 John Cuevas, Ar�st Palm Springs 9 Joshua Tree Candle Co. Joshua Tree 10 Joshua Tree Coffee Company Joshua Tree 11 Joshua Tree Desert Rose Joshua Tree 12 LIKADA Palm Springs 13 Minty’s Breeze Blocks Palm Springs 14 Mojave Moon Apothecary Joshua Tree 15 Molly Moon Cra�s Palm Desert 16 Modernism Week* Palm Springs 17 Opal Atlas Joshua Tree 18 Palm Springs Art Museum Palm Springs 19 Palm Springs Farmer’s Market Palm Springs 20 Palm Springs Life Magazine Palm Springs 21 Rancho Relaxo Rancho Mirage 22 Rappi Palm Springs Palm Springs 23 Raven’s Hearth Palm Springs 24 Shag* Palm Springs 25 The Body Deli Palm Desert 26 The Ice Cream Shoppe Palm Springs 27 The Kids Bakery and Deli (TKB) Indio 28 The Living Desert Palm Desert 29 Thick as Thieves Palm Springs 30 Trina Turk Palm Springs 31 Tutu’s Tor�lla Chips La Quinta 32 Walker Noble Studios Palm Springs * New Vendor 56% 6% 13% 3% 3%3% 16% VENDOR CONCENTRATION BY CITY Palm Springs Rancho Mirage Palm Desert La Quinta Indio Coachella Joshua Tree AIRPORT COMMISSION STAFF REPORT DATE: APRIL 19, 2023 SUBJECT: APPROVE A NEW AIRPORT USE AND LEASE AGREEMENT AND NON- SIGNATORY AIRLINE OPERATING PERMIT FOR THE PALM SPRINGS INTERNATIONAL AIRPORT FROM: Harry Barrett, Jr., Airport Executive Director SUMMARY Palm Springs International Airport (Airport) proposes to recommend to City Council the approval of a new Airport Use and Lease Agreement (AULA) and a new Non-Signatory Airline Operating Permit (Permit) for the Palm Springs International Airport (Airport). RECOMMENDATION: This action will recommend to City Council the approval of a new AULA for seven Signatory Airlines; Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines, United Airlines and WestJet along with other future eligible airlines desiring to enter into an AULA for an initial five-year term beginning July 1, 2023 through June 30, 2028, with two, two-year extension option periods, and a new Permit for five Non-Signatory Airlines; Allegiant, JetBlue, Avelo, Flair and Sun Country along with other future airlines desiring to obtain a Permit to operate at the Airport on a month-to-month basis beginning July 1, 2023. BACKGROUND: An AULA establishes the contractual business relationship between an airline and an airport operator, such as the City, typically over a multi-year period (3-5 years). An AULA further specifies the terms and conditions of an airline’s use of and payment for airfield and terminal facilities, including the financial obligations, terms of use, and other responsibilities of each party pertaining to the use of the airport’s facilities as well as the occupancy of land and buildings by the airline. The ratemaking methodology used by an airport operator is a key consideration of an AULA because it provides the basis for how an airline will pay an airport operator for the use and occupancy of airport facilities. The determination of a ratemaking methodology is guided by the goals and objectives of an airport operator, the operating environment of ITEM 8.L Airport Commission Staff Report April 19, 2023 -- Page 2 Adoption of New AULA and Permit the airport, and federal regulations. It is common for an airport operator to use cost- accounting principles to establish direct and indirect cost centers for the allocation of both revenues and expenses for purposes of determining airline rates and fees. Residual, Compensatory, and Hybrid are the rate setting methodologies typically used at U.S. airports for establishing airline rates and charges and are described in further detail below: Residual • An airport operator recovers the net costs of operating airfield and terminal facilities after crediting all, or a portion of nonairline revenues, to the airline rates and fee requirement. • Because the airlines receive credit for non-airline revenues, the airlines assume the financial risk should non-airline revenues decrease or fall short of expectations. • Given the assumption of financial risk by the airlines, an airport operator usually grants airlines the right to approve airport capital investment decisions. • Since airlines are credited all or the majority of non-airline revenues for purposes of calculating their rates, the airport operator is typically limited in its ability to build airport equity for future capital investments or other airport funding needs. Compensatory • An airport operator calculates the direct and indirect cost of operating the airfield and terminal facilities and recovers only those costs allocated and attributable to those facilities occupied and used by the airlines – i.e. the airfield and terminal. • The airport operator assumes financial risk for operation of the cost centers but retains all non-airline revenue generated on the airport. • Airlines have limited or no input on airport capital investment decisions. Hybrid • An airport operator uses both the residual and compensatory methodologies – i.e. airfield is residual while terminal is compensatory – depending upon the ability of one or more airport cost centers to be self-sustaining. • Because both methodologies are used, there is a balance of risk and facility control by and between the airlines and the airport operator. • To maintain reasonable cost structures, airport operators agree to share with the airlines some portion of year-end actual annual net revenues generated through airport operations. • Decisions on airport capital investments are typically more balanced between the two parties since the airlines are not being required to serve as the financial back- stop for the full operation of the airport. Airport Commission Staff Report April 19, 2023 -- Page 3 Adoption of New AULA and Permit STAFF ANALYSIS: The existing AULA is based on an airport-wide full residual ratemaking methodology which means the airlines receive 100 percent credit of all non-airline revenues generated at the Airport for purposes of calculating rates and fees. The current AULA has been in effect since July 1, 2014; however, it has been in holdover since June 30, 2022 as the Department of Aviation has continued negotiations with the Signatory Airlines for a new AULA. The City’s airport-wide residual ratemaking methodology has been in effect for approximately 20 years and has served both the City and airlines well during this period. However, Airport has, and continues to evolve which has warranted the examination and use of an alternative ratemaking approach which would allow the City to retain a portion of non-airline revenues for purposes of meeting future capital needs and attain greater flexibility for capital investment decisions. Based upon negotiations with the current AULA Signatory Airlines, the new AULA will use a hybrid approach for setting airline rates and charges whereby the airline landing fee will be based on a residual ratemaking approach while the terminal rental rate will be calculated using a compensatory approach. In addition, the City will share 50 percent of year-end net remaining revenues with the airlines based on annual audited financial and operational data. Use of this hybrid ratemaking methodology would provide the following benefits to the City: • Balance financial risk and facility control between the City and airlines. • Establish defined and transparent direct and indirect cost centers for purposes of allocating airport revenues and expenses and setting airline rates and charges. • Provides the City with the ability to retain a portion of year end net remaining revenues to build available funds to undertake future capital projects. The City’s current Permit is also updated to reflect applicable terms and conditions included in the new AULA. The Permit will retain the existing 25 percent premium for those airlines not party to the new AULA and operating through the Permit. Airport staff requests that the Airport Commission recommends to City Council the approval of this agreement and permit. FISCAL IMPACT: The following table presents projections of key financial data for the Airport Fund for the period FY 2024 – 2027 with the use of the hybrid ratemaking approach with year-end revenue sharing: Airport Commission Staff Report April 19, 2023 -- Page 4 Adoption of New AULA and Permit These projections, based on assumptions and data from the fall of 2022, indicate that the City’s Airport Fund Balance is expected to increase by approximately $10.8 million over this four (4) year period and an equal amount will be shared with the airlines. In addition, the average airline cost per enplaned passenger (CPE) is expected to increase less than $1.00 during this period from $8.13 in FY 2024 to $9.05 in FY 2027.While a new AULA will change the business terms and conditions between the airlines and the City, it will be based on the requirement to continue to adequately provide revenues necessary to fund operating expenditures, local capital improvements, and the required local matching share requirement for all federal and state grant-in-aid. Harry Barrett, Jr., A.A.E Airport Executive Director DATE: April 19, 2023 TO: Chairman Dada and Airport Commissioners FROM: Harry Barrett, Jr., Airport Executive Director SUBJECT: Projects and Airport Capital Improvement Program Update __________________________________________________________________________ Capital Projects Airport Master Plan (Updated April 14, 2023) Background: This project is a 30-month comprehensive study to plan and develop capital program requirements thru the year 2045. The study is scoped to be sustainable, and incorporates future goals related to terminal complex, landside access and parking, and airside improvements for future generating aircraft. Status: Airport staff and Mead & Hunt (M&H) kicked off the master planning process on February 13th. A full Commission strategy session was conducted on February 28th resulting in additional inputs for M&H to consider as the planning process prog. Currently, the consultant is completing an inventory of airport conditions including geographical, facilities, lease agreements, land uses, etc. M&H has canvassed and surveyed airport tenants and conducted field studies to understand facility constraints. On February 8th, the consultant had an aerial survey of the airfield completed which will result in updated GIS data and new aerial maps. M&H’s subconsultant, Aviatrix, has developed a Master Plan website which is being linked to the airport’s current website and will provide near real-time updates of the airport’s master planning process. M&H has scheduled the first meeting with the Master Plan Working Group on Wednesday May 3rd and is expecting to provide the first draft working paper for discussion during that meeting. Mead and Hunt has also initiated conversations with the city’s Office of Sustainability to develop focus areas for incorporation into the Master Plan. Outbound Baggage Handling System Replacement: (Updated April 14, 2023) Background: This project is intended to modify or replace the current outbound baggage handling system with a new inline baggage handling system to improve capacity and process ITEM 8.M Airport Commission Memorandum April 19, 2023 – Page 2 Projects and Airport Capital Improvement Program Update __________________________________________________________________________ efficiency, implement additional technology for bag tracking, reduce or eliminate single points of failure, and improve ergonomics. Status: Procurement Phase: TSA HQ contacted the airport to provide the OTA agreement and advised the airport that time is of the essence for selection of a design consultant to access TSA reimbursement funds. The 30-day open solicitation for Request for Qualifications (RFQ’s) is now closed. The evaluation team has reviewed proposals and has interviewed four firms which resulted in the selection of a design consultant. Notification of Intent to award was made to the design consultant on March 23rd. The City’s Procurement Office has secured a cost proposal from the selected firm and an Independent Fee Estimate is underway. Airport staff intends to advance the recommended firm to the City Council for contract award and recommend approval of an Other Transaction Authority (OTA) agreement with the Transportation Security Administration (TSA) to reimburse for the design of the system. Airport staff continues to work with the FAA to identify funding for what is likely to be a building expansion to accommodate the system. Terminal Common Use (Updated April 14, 2023) Background: This project is to install Common Use Passenger Processing Systems (CUPPS) at each of the 18 boarding gates and at the non-signatory airline ticket counters. This includes renovations to the Bono Concourse which involve replacement of customer service podiums, lighting and signage upgrades and carpet replacement for both concourses. Status: The Regional Jet (RJ) concourse gates have been partially converted onto the Common Use platform and some airlines are live in the system. The airport will complete the remaining RJ gates when there is sufficient IT staffing to ensure full shift coverage between the hours of 4a – midnight daily. Converting some gates has allowed the airport to ease the pressure of gating constraints as the season continues to ramp up. Invitation For Bid #21-28 was issued on February 15th for construction of Bono concourse podiums and the renovation of the concourse. A construction firm has been selected and the Airport anticipates advancing a recommend for contract award to the City Council in early May. Employee and Economy Parking Lots & Commercial Transit reconfiguration (Updated April 14, 2023) Background: This project aims to complete three objectives; 1) design and build a new employee parking lot west of the airport at El Cielo and Baristo; 2) convert the current overflow and employee lots to economy lots; and 3) make changes to commercial ground transportation staging areas. PSP’s focus is on incorporating and improving technology thru these designs by introducing a new Parking and Revenue Control System, adding EV charging and upgrading fiber capability to accommodate security improvements. Staff has been working thru state and federal programs to procure EV charging capability. Status: Procurement Phase. The RFQ for design services is with the City Procurement Office awaiting an Independent Fee Estimate to confirm and negotiate pricing. At the completion of Airport Commission Memorandum April 19, 2023 – Page 3 Projects and Airport Capital Improvement Program Update __________________________________________________________________________ review and negotiation, the airport will advance a recommendation for contract approval by City Council. The airport has entered into an agreement with the Southern California Edison to supply no costs installation of infrastructure to support increased electrical loads for Electric Vehicle Charging in public parking lot D. The airport has budgeted secure 40 level 2 chargers for FY 2024 and has been notified by SCE that the timing of our application allows us to secure a rebate for the initial investment of procuring those chargers. Airport staff anticipate this project to commence over the summer. Taxiway W and A1 Rehabilitation Background: This is an Airport Improvement Program (AIP) funded project to design and rehabilitate the airport’s primary commercial taxiway under the Pavement Management Program. Status: In Design. The airport’s on-call engineering firm overseeing airfield projects recently completed surveying and destructive testing of the pavement to determine the project approach for rehabilitation. Project is proceeding as planned with construction scheduled for CY 2024. Restroom Renovations Background: City Council approved airport staff to design and renovate all public restrooms airport wide in the FY 2023 budget. This would include demolition and replacement of all flooring and fixtures, upgrades to ventilation and lighting systems, and conversion of some restrooms to gender neutral facilities. Status: Delayed until March 2023. The airport currently lacks staff to oversee the procurement and management of this project. Airport staff have had to reprioritize projects over the last six months as a result of unscheduled pavement repairs becoming more urgent. The new Assistant Airport Director is scheduled to begin the procurement process in the coming weeks and staff is hoping to secure the competitive BIL Airport Terminal Program grant for this project. Sterile Area Shade Structures Background: This project aims to add shade structures post security to encourage broader use of the airport during summer months. This project is partially funded through a grant facilitated by Visit Greater Palm Springs. Status: In Design. City engineers assisted airport staff in identifying space and are currently procuring structures for installation in three areas of the sterile area. Baggage Claim Expansion and Renovation: Background: This project was previously identified on the airport’s Capital Improvement Program (CIP) list for start in FY 2025. Airport Commission Memorandum April 19, 2023 – Page 4 Projects and Airport Capital Improvement Program Update __________________________________________________________________________ Status: In the Fall of 2022, airport staff applied for a nation-wide competitive grant under the Airports Terminal Program (ATP) under the 2021 Bipartisan Infrastructure Law. Airport staff was notified on February 27th that PSP had been awarded a $5.7M grant to partially fund expansion of baggage claim. Airport staff is assigning the initial design work to an airport on-call consultant. The baggage claim project was included in the RFQ scope and proposals for all three of the current on-call consultants. The airport anticipates having 20% design drawings completed by July 31st. Airport staff will be working with consultant to ensure that planning and design is in collaboration with master plan processes, and consistent with the existing Class I historic designation of the main terminal building. Program Updates Feasibility Study for Federal Inspection Station (International Air Service) (Updated Mar 13, 2023) Background: This two-phased study (partially funded by Visit Greater Palm Springs) seeks to analyze how small and medium hub airports have successfully constructed an FIS and expanded international routes to their facilities, and subsequently develop a business plan for expansion of Customs and Boarder Protection Services for commercial flights at PSP. Status: Procurement Phase – Notification of Intent to Award sent. A Request for Qualifications (RFQ) was closed in February and the airport received two proposals, the consulting firms that proposed were Intervistas and Pangiam. The proposals were evaluated by a three-member panel comprised of airport staff and Visit Greater Palm Springs personnel. On March 1st, Intervistas was notified that their firm was the highest ranked in the evaluation process. The study is expected to cost $385,000, of which Visit Greater Palm Springs will be responsible for $70,000. Airport staff is continuing discussions with Customs and Boarder Protection regional leadership about PSP plans to expand international air service. DATE: April 19, 2023 TO: Chairman Dada and Airport Commissioners FROM: Harry Barrett, Jr., Airport Executive Director SUBJECT: Executive Director Report __________________________________________________________________________ Emerging Developments Commissioner Request for agenda item to vote on Airport HR Specialist (New) Background: Airport staff received a Commissioner Request to add to the Commission Agenda a full Commission vote to staff the airport with a Human Resources Specialist. Staff forwarded that request to the Commission Chair and advised the chair of our intent to address this item as there were already ongoing discussions between the airport and the City Manager on this topic. Report: In preparation for the FY 2024 – 2025 budget, the Executive Director provided staffing requests and plans to the City Manager and the Human Resources Department for vetting . The airport requested a total of 18.5 positions for FY 2024 and the full complement of those positions are being added to the budget for City Council adoption. Within that request was an ask for 0.5 FTE for Human Resources Specialist. The City Manager and Executive Director have discussed and determined that the City will explore all options for ensuring that PSP is staffed accordingly. The City Manager, the Human Resources Director, and the Executive Director will work together to understand the true needs and incorporate into the overall staffing strategy. It is highly probable that additional Human Resource support will be recommended to the City Council. Commissioner Request for agenda item for presentation on Airport Wifi from City IT Director (New) Background: Airport staff received a Commissioner request to add to the Commission Agenda a presentation from and discussion with the City IT Director concerning airport Wifi. Report: The City Information Technology Director has advised the airport that the current status of the airport wifi is a result of inadequate infrastructure for the size of the facility. Prior to 2021, there were no known plans for further development of the airport infrastructure to meet current ITEM 9 Airport Commission Memorandum April 19, 2023 – Page 2 Executive Director Report __________________________________________________________________________ needs. The IT Director has advised that he is currently engaging with potential consultants to assess airport campus-wide needs and develop a master plan to upgrade the network infrastructure. Airport staff have budgeted $200K to support that costs and advised the IT Director that staff would supply additional resources as needed to ensure successful buildout. As progress is made, the IT Director will provide updates. At this time there is no additional information to share and specific request for info rmation should be referred to the Executive Director who will work with the IT Director as appropriate for status updates. Commissioner Request for agenda item for presentation on Airport Sustainability Plan from Office of Sustainability (New) Background: Airport staff received a commissioner request to add to the Commission Agenda a presentation from and discussion with the City Sustainability Director concerning airport strategies. Report: In 2022, the airport included a task within the master plan RFQ scope of work the development of an airport sustainability plan. The airport’s consultant M&H has incorporated that task into their work and has been coordinating with the City Sustainability Director to identify focus areas and goals. The airport master plan working group will be evaluating those goals within the draft working papers to ensure incorporation into the final airport master plan. Meanwhile, the airport has been adopting the guidance of the Sustainability offic e with regard to laws and ordinances regarding solid waste and compositing, water conservation (specifically surrounding landscape conversion) and language within new agreements requiring tenants to agree to conform to City and State guidelines wherever possible. Additionally the airport is in the process of a number of imminent program improvements including the installation of EV charging stations in public parking, the conversion of airport vehicles to electric powered starting in FY 2024, and in conformance with the City’s most recent adoption of the Sustainable Procurement Policy. If there are additional questions regarding sustainability they should be directed to the Executive Director who will work with the Sustainability Director as appropriate for status updates. Commissioner request for agenda item to updated Persons without Legitimate Business & Unhoused Population (Updated April 14, 2023) Background: Airport staff received a Commissioner request for ongoing updates surrounding The airport has experienced an increased in persons without legitimate business within the terminal area, including unhoused persons living on the airport campus and populating the terminal. Report: Airport staff and the Police Department began enforcement of the Legitimate Business ordinance at midnight on March 12th. There was an immediate and noticeable decline in persons without legitimate business and unhoused individuals occupying the airport property upon enforcement. Airport staff and the Police Bureau continue to monitor activity and provide Airport Commission Memorandum April 19, 2023 – Page 3 Executive Director Report __________________________________________________________________________ available alternate resources to individuals needing assistance. Airport staff have not experienced any noticeable post-implementation issues involving persons without legitimate business using the facility. Commissioner request for agenda item to present and discuss new Airport Use and Lease Agreement (Updated April 14, 2023) Background: Since 2019, Airport staff has been negotiating with the Signatory Airlines on a new Airport Use and Lease Agreement due to the expiration of the current agreement. Report: Executable documents were distributed to the airlines in January to route through their organizations for final signatures. The airline review process is expected to take between 60 – 75 days. Airport staff intends to provide a recommendation for City Council adoption in May 2023. United, Delta, and Southwest Airlines have all signed onto the new agreement. American Airlines and Air Canada have both indicated their intent to sign and are in the final stages of review within their organizations. The airport is still awaiting notification from other carriers including Alaska, WestJet and Avelo. There has been no interest from PSP’s current Non-Signatory airlines (Allegiant, Flair, JetBlue, Sun Country) to sign a Signatory agreement to date. At this time there is not additional status update. Exploration and Data Collection for Public Private Partnership (P3) - FIS / Conrac Background: The airport is beginning to explore alternative P3 solutions and models for funding both the FIS and ConRac projects with the aim of accelerating capital development at PSP. Report: Airport staff is in the very early exploratory phase of modeling how P-3 development could be incorporated at Palm Springs. Airport staff is gathering information from successfully projects at Austin Bergstrom International Airport, JFK International Airport, Seattle Tacoma International Airport and Kansas City International Airport. In addition, Airport staff is reviewing with the FAA the regulations and considerations around P3 dev elopment. Staff has also had a number of informal discussions with private investors to ascertain any potential interest and gain feedback on how a partnership would be successful. Airport staff will be attending the Airport P3 Conference held in May to engage with other airports and investors who have experience in this area of financing projects. As more information is collected and learned, the airport will be working with City leadership and with the Commission to make recommendations on options and alternatives to capital development. ITEM 11 .A / AC 0 4 -1 9 -2 3 Page 1 | 5 ITEM 11.A - PAST CITY COUNCIL ACTIONS Airport Commission Meeting of April 19, 2023 City Council Meeting of March 9, 2023: 1. CONSENT CALENDAR: MOTION BY COUNCILMEMEBER HOLSTEGE, SECOND BY COUNCILMEMBER DEHARTE, CARRIED 5-0. SUBJECT FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361 RECOMMENDATION: Find that the City Council has considered the circumstances of the state of emergency during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing, and as a result, the Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. Attachments Item 1A The Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. SUBJECT RATIFY THE NOMINATION OF THE CITY OF COACHELLA AND THE CITY OF INDIO TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION RECOMMENDATION: 1. Appoint Denise Delgado, representing the City of Coachella, to the Palm Springs International Airport Commission effective immediately for a term ending January 25, 2027. 2. Appoint Rick Wise, representing the City of Indio, to the Palm Springs International Airport Commission effective April 1, 2023, for a term ending April 1, 2026. Attachments Item 1E SUBJECT APPROVAL OF A COOPERATIVE CONTRACT FOR ELEVATOR AND ESCALATOR MAINTENANCE FOR THE PALM SPRINGS INTERNATIONAL AIRPORT ITEM 11 .A / AC 0 4 -1 9 -2 3 Page 2 | 5 RECOMMENDATION: 1. Approve Cooperative Contract Agreement 23C004 with TK Elevator Corporation to provide elevator and escalator maintenance services in accordance with Section 7.09.010 “Cooperative Purchasing Programs,” of the Palm Springs Municipal Code, in an amount not to exceed $84,600 for the initial three-year term beginning on the date provided in the Notice to Proceed, with two one-year extension options at the City’s sole discretion. 2. Approve the appropriation of $28,200 for Fiscal Years 2022-2023, 2023-2024, and 2024-2025 from the Department of Aviation’s Fund 415 fund balance. 3. Authorize the City Manager or designee to execute all necessary documents. Attachments Item 1F City Council Meeting of March 23, 2023: 1. CONSENT CALENDAR: MOTION BY COUNCILMEMEBER HOLSTEGE, SECOND BY MAYOR PRO TEM BERNSTEIN, CARRIED 5-0. SUBJECT FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361 RECOMMENDATION: Find that the City Council has considered the circumstances of the state of emergency during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing, and as a result, the Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. Attachments Item 1A The Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. SUBJECT APPROVE SERVICE AGREEMENT NO. 23B043 WITH WGJ ENTERPRISES, INC., DBA PCI FOR AIRFIELD RUBBER AND PAINT REMOVAL AND PAINT APPLICATION SERVICES ITEM 11 .A / AC 0 4 -1 9 -2 3 Page 3 | 5 RECOMMENDATION: 1. Approve Contract Services Agreement 23B043 (Attachment A) with WGJ Enterprises, Inc. dba PCI to provide airfield rubber and paint removal and paint application services in an amount not to exceed $660,000, for the initial three-year term beginning April 1, 2023, through March 31, 2026, with two one-year extension options at the City’s sole discretion; and 2. Appropriate $660,000 from Airport Fund 415 to the account 4157030.40105 budget; and 3. Authorize the City Manager or designee to execute all necessary documents. Attachments Item 1G SUBJECT AWARD A SERVICE AGREEMENT WITH INTERVISTAS CONSULTING USA, LLC FOR FEDERAL INSPECTION SERVICES (FIS) FACILITY STUDY RECOMMENDATION: 1. Award a one-year service agreement with InterVISTAS Consulting USA LLC for a two-phased study for a Federal Inspection Services (FIS) Facility Study for an estimated amount not to exceed $385,000 (Attachment A); 2. Appropriate $315,000 from Airport Fund 416 to the account 4167065-80000 budget; and 3. Authorize the City Manager or designee to execute the agreement. Attachments Item 1J SUBJECT RATIFY THE NOMINATION OF THE CITY OF RANCHO MIRAGE TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION RECOMMENDATION: Appoint Keith Young, representing the City of Rancho Mirage, to the Palm Springs International Airport Commission effective immediately, for the remainder of the term, expiring July 1, 2024. Thomas Weil resigned from this term on December 23, 2022. Kevin Young is finishing out the remainder of the term. Attachments Item 1V ITEM 11 .A / AC 0 4 -1 9 -2 3 Page 4 | 5 City Council Meeting of April 10, 2023: 1. CONSENT CALENDAR: MOTION BY COUNCILMEMEBER DEHARTE, SECOND BY MAYOR PRO TEM BERNSTEIN, CARRIED 5-0. SUBJECT FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361 RECOMMENDATION: Find that the City Council has considered the circumstances of the state of emergency during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing, and as a result, the Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. Attachments Item 1A The Palm Springs City Council and all of Palm Springs Board, Commission, and Committee meetings will be held by videoconference, in accordance with AB 361. SUBJECT APPROVE CONTRACT SERVICES AGREEMENT NO. 23I051 WITH TELOS IDENTITY MANAGEMENT SOLUTIONS, LLC TO PROVIDE FEDERALLY MANDATED SECURITY BACKGROUND CLEARANCES RECOMMENDATION: 1. Approve Contract Services Agreement No. 23I051 (Attachment A) with Telos Identity Management Solutions, LLC to provide federally mandated security background clearances such as Criminal Records History Checks (CRHC), federal Record of Arrest and Prosecution (RAP) Back Subscription and Investigation Records Maintenance Fee not to exceed $9,610 beginning January 1, 2023 through June 30, 2023; and, 2. Appropriate $9,610 from Airport Fund 415 to Airport Account 4157055.40105 budget; and, 3. Authorize the City Manager or designee to execute all necessary documents. Attachments Item 1E ITEM 11 .A / AC 0 4 -1 9 -2 3 Page 5 | 5 SUBJECT RATIFY THE NOMINATION OF THE CITY OF DESERT HOT SPRINGS TO THE PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION RECOMMENDATION: 1. Re-Appoint Jan Pye, representing the City of Desert Hot Springs, to the Palm Springs International Airport Commission effective immediately to a term expiring January 17, 2025. 2. Accept the resignation of Matthew Lesniak from the Public Arts Commission effective immediately. Attachments Item 1H 3. BUSINESS & LEGISLATURE: SUBJECT APPROVE RECOMMENDED LOGO FOR PALM SPRINGS INTERNATIONAL AIRPORT RECOMMENDATION: Review and approve the proposed logo for the Palm Springs International Airport. Attachments Item 3B MOTION BY COUNCILMEMBER DEHARTE, SECOND BY MAYOR PRO TEM BERNSTEIN, PASSED 5-0, to approve review and approve the proposed logo for the Palm Springs International Airport. ITEM 11 .B / AC 0 4 -1 9 -2 3 Page 1 | 1 ITEM 11.B - FUTURE CITY COUNCIL ACTIONS Airport Commission Meeting of April 19, 2023 THERE ARE NO FUTURE CITY COUNCIL ACTION ITEMS TO REPORT Palm Springs International Airport MONTHLY PASSENGER ACTIVITY REPORT - 2023 2023 2022 % Change 2023 2022 % Change 2023 2022 % Change January 169,746 118,204 43.6%171,910 119,184 44.2%341,656 237,388 43.9% February 184,973 142,206 30.1%188,877 150,130 25.8%373,850 292,336 27.9% March 219,130 202,993 7.9%222,160 200,890 10.6%441,290 403,883 9.3% April 185,946 -100.0%172,169 -100.0%- 358,115 -100.0% May 123,736 -100.0%109,503 -100.0%- 233,239 -100.0% June 73,861 -100.0%68,663 -100.0%- 142,524 -100.0% July 68,071 -100.0%65,593 -100.0%- 133,664 -100.0% August 65,368 -100.0%64,584 -100.0%- 129,952 -100.0% September 79,599 -100.0%83,235 -100.0%- 162,834 -100.0% October 120,659 -100.0%126,798 -100.0%- 247,457 -100.0% November 160,129 -100.0%159,108 -100.0%- 319,237 -100.0% December 159,846 -100.0%161,369 -100.0%- 321,215 -100.0% Year to Date 573,849 1,500,618 23.8%582,947 1,481,226 24.0%1,156,796 2,981,844 23.9% Enplaned Deplaned Total Passengers Page 1 of 4 ITEM 12.A Palm Springs International Airport Best Month Comparison ENPLANEMENTS 2019 2020 2021 2022 2023 Vs Best Mo Jan 140,896 136,157 39,614 118,204 169,746 20.5% Feb 156,486 156,909 57,530 142,206 184,973 17.9% Mar 201,350 113,166 107,577 202,993 219,130 7.9% Apr 160,452 5,811 111,376 185,946 -100.0% May 99,027 10,751 92,820 123,736 -100.0% Jun 55,385 14,827 66,885 73,861 -100.0% Jul 49,864 17,231 65,869 68,071 -100.0% Aug 48,112 18,389 58,793 65,368 -100.0% Sep 52,283 23,087 65,682 79,599 -100.0% Oct 84,627 41,597 108,923 120,659 -100.0% Nov 117,794 52,874 135,677 160,129 -100.0% Dec 121,198 41,517 136,897 159,846 -100.0% TOTAL 1,287,474 632,316 1,047,643 1,500,618 573,849 % Chg.10.58%-50.89%65.68%43.24% TOTAL PASSENGERS 2019 2020 2021 2022 2023 Vs Best Mo Jan 280,738 276,099 79,082 237,388 341,656 21.7% Feb 317,535 320,906 120,657 292,336 373,850 16.5% Mar 401,972 198,850 214,477 403,883 441,290 9.3% Apr 304,855 10,082 215,777 358,115 -100.0% May 190,756 19,154 174,535 233,239 -100.0% Jun 105,350 28,748 129,872 142,524 -100.0% Jul 97,834 33,776 129,463 133,664 -100.0% Aug 97,941 36,482 117,952 129,952 -100.0% Sep 106,211 47,915 136,666 162,834 -100.0% Oct 177,363 88,777 225,991 247,457 -100.0% Nov 235,656 108,043 271,944 319,237 -100.0% Dec 247,744 83,262 276,527 321,215 -100.0% TOTAL 2,563,955 1,252,094 2,092,943 2,981,844 1,156,796 % Chg.10.18%-51.17%67.16%42.47% Page 2 of 4 Palm Springs International Airport ACTIVITY BY AIRLINE MARCH 2023 (E & D) AIRLINES 2023 2022 % Change 2023 2022 % Change 2023 2022 % Change Market Share Air Canada 6,041 6,596 -8.4%6,073 6,624 -8.3%12,114 13,220 -8.4%2.7% Alaska 40,781 45,595 -10.6%42,652 45,872 -7.0%83,433 91,467 -8.8%18.9% American 30,378 29,155 4.2%29,579 27,211 8.7%59,957 56,366 6.4%13.6% Avelo 3,111 - 0.0%3,401 - 0.0%6,512 - 0.0%1.5% Delta Air 13,744 13,438 2.3%13,480 13,316 1.2%27,224 26,754 1.8%6.2% Mesa (AA)2,185 1,806 21.0%1,889 1,735 8.9%4,074 3,541 15.1%0.9% SkyWest (Delta Connection)6,052 6,090 -0.6%6,117 6,203 -1.4%12,169 12,293 -1.0%2.8% SkyWest (United Express)12,385 12,209 1.4%11,894 10,642 11.8%24,279 22,851 6.2%5.5% SkyWest (AA)1,796 3,596 -50.1%1,662 3,633 -54.3%3,458 7,229 -52.2%0.8% Southwest Air 36,754 27,578 33.3%38,854 28,175 37.9%75,608 55,753 35.6%17.1% United 26,630 24,281 9.7%27,183 24,436 11.2%53,813 48,717 10.5%12.2% WestJet 24,545 15,091 62.6%24,559 15,228 61.3%49,104 30,319 62.0%11.1% Allegiant Air 4,125 6,999 -41.1%4,217 7,225 -41.6%8,342 14,224 -41.4%1.9% ExpressJet - 478 -100.0%- 490 -100.0%- 968 -100.0%0.0% Flair 2,288 1,385 65.2%2,047 1,556 31.6%4,335 2,941 47.4%1.0% JetBlue 3,804 3,811 -0.2%3,909 3,664 6.7%7,713 7,475 3.2%1.7% MN Airlines (Sun Country)4,511 4,340 3.9%4,644 4,327 7.3%9,155 8,667 5.6%2.1% Swoop Air - 545 100.0%- 553 100.0%- 1,098 100.0%0.0% Charters - - 0.0%- - 0.0%- - 0.0%0.0% TOTAL 219,130 202,993 7.9%222,160 200,890 10.6%441,290 403,883 9.3%100.0% Enplaned Deplaned Total Page 3 of 4 Palm Springs International Airport AIRCRAFT OPERATIONS 2023 2023 2022 vs. Prior 2023 ITINERANT AC AT GA MI AC & AT TOTAL TOTAL CHANGE GA/CIVIL % Jan 3,547 1,119 1,433 145 4,666 6,244 6,152 1.5%23.0% Feb 3,468 1,204 1,638 72 4,672 6,382 6,019 6.0%25.7% Mar 3,913 1,466 2,076 141 5,379 7,596 7,192 5.6%27.3% Apr - - 6,804 #DIV/0! May - - 4,692 #DIV/0! Jun - - 3,005 #DIV/0! Jul - - 2,806 #DIV/0! Aug - - 2,853 #DIV/0! Sep - - 3,246 #DIV/0! Oct - - 4,134 #DIV/0! Nov - - 5,984 #DIV/0! Dec - - 5,869 #DIV/0! TOTAL 10,928 3,789 5,147 358 14,717 20,222 58,756 4.4%25.5% 2023 2022 vs. Prior Yr.2023 LOCAL CIVIL MI TOTAL TOTAL TOTAL CHANGE GA/CIVIL % Jan 233 10 243 6,487 6,594 -1.6%25.7% Feb 232 5 237 6,619 6,263 5.7%28.3% Mar 603 6 609 8,205 7,431 10.4%32.7% Apr - - 7,023 #DIV/0! May - - 5,114 #DIV/0! Jun - - 3,097 #DIV/0! Jul - - 2,906 #DIV/0! Aug - - 3,133 #DIV/0! Sep - - 3,434 #DIV/0! Oct - - 4,259 #DIV/0! Nov - - 6,174 #DIV/0! Dec - - 6,215 #DIV/0! TOTAL 1,068 21 1,089 21,311 61,643 5.0%29.2% https://aspm.faa.gov/aspmhelp/index/OPSNET_Reports__Definitions_of_Variables.html 2023 2023 Page 4 of 4 Palm Springs International Airport PASSENGER ACTIVITY REPORT - FISCAL YEAR COMPARISON FY '22-'23 % CHANGE FY '21-'22 % CHANGE FY '20-'21 % CHANGE FY '19-'20 FY '22-'23 % CHANGE FY '21-'22 % CHANGE FY '20-'21 % CHANGE FY '19-'20 FY '22-'23 % CHANGE FY '21-'22 % CHANGE FY '20-'21 % CHANGE FY '19-'20 July 68,071 3%65,869 282%17,231 -65%49,864 65,593 3%63,594 284%16,545 -66%47,970 133,664 3%129,463 283%33,776 -65%97,834 August 65,368 11%58,793 220%18,389 -62%48,112 64,584 9%59,159 227%18,093 -64%49,829 129,952 10%117,952 223%36,482 -63%97,941 September 79,599 21%65,682 184%23,087 -56%52,283 83,235 17%70,984 186%24,828 -54%53,928 162,834 19%136,666 185%47,915 -55%106,211 October 120,659 11%108,923 162%41,597 -51%84,627 126,798 8%117,068 148%47,180 -49%92,736 247,457 9%225,991 155%88,777 -50%177,363 November 160,129 18%135,677 157%52,874 -55%117,794 159,108 17%136,267 147%55,169 -53%117,862 319,237 17%271,944 152%108,043 -54%235,656 December 159,846 17%136,897 230%41,517 -66%121,198 161,369 16%139,630 234%41,745 -67%126,546 321,215 16%276,527 232%83,262 -66%247,744 January 169,746 44%118,204 198%39,614 -71%136,157 171,910 44%119,184 202%39,468 -72%139,942 341,656 44%237,388 200%79,082 -71%276,099 February 184,973 30%142,206 147%57,530 -63%156,909 188,877 26%150,130 138%63,127 -62%163,997 373,850 28%292,336 142%120,657 -62%320,906 March 219,130 8%202,993 89%107,577 -5%113,166 222,160 11%200,890 88%106,900 25%85,684 441,290 9%403,883 88%214,477 8%198,850 April -100%185,946 67%111,376 #####5,811 -100%172,169 65%104,401 2344%4,271 - -100%358,115 66%215,777 #####10,082 May -100%123,736 33%92,820 763%10,751 -100%109,503 34%81,715 872%8,403 - -100%233,239 34%174,535 811%19,154 June -100%73,861 10%66,885 351%14,827 -100%68,663 9%62,987 352%13,921 - -100%142,524 10%129,872 352%28,748 YTD 1,227,521 -13%1,418,787 112%670,497 -26%911,499 1,243,634 -12%1,407,241 113%662,158 -27%905,089 2,471,155 -13%2,826,028 112%1,332,655 -27%1,816,588 ENPLANED PASSENGERS DEPLANED PASSENGERS TOTAL PASSENGERS ITEM 12.B REPRESENTING COMMISSIONERS Marketing (7 Members) Budget (7 Members) Operations (7 Members)* Noise (5 Members) Ad Hoc Design Review (5 Members) Palm Springs ADAMS, Gerald Member Member Palm Springs BRESLIN, Patricia Member Member Indian Wells BUDILO, Paul Member Palm Springs BURKE, Todd Chair Member Member Palm Springs CORCORAN, Kevin Member Member Chair Palm Springs DADA, Aftab Palm Springs FELTMAN, David Chair Member Palm Springs HEDRICK, Ken Chair La Quinta HUGHES, Kathleen Member Cathedral City MICHAELIS, Tony Member Member Palm Springs MILLER, Scott Member Member Palm Springs PAYNE, John Member Member Member Desert Hot Springs PYE, Jan Member Riverside County SLAMA, Paul Member Palm Springs SUERO, Guillermo Member Palm Desert WISEMAN, Kevin Member Chair Member Indio WISE, Rick Member Rancho Mirage YOUNG, Keith Member *Committee with a vacancy AIRPORT COMMITTEES FY2022-23 REVISED 04-13-23 ITEM 13 .B / AC 0 4 -1 9 -2 3 Page 1 | 1 ITEM 13.B - FUTURE COMMITTEE MEETINGS Airport Commission Meeting of April 19, 2023 Date Time Committee July 19, 2023 4:00 P.M. Noise Committee October 18, 2023 4:00 P.M. Noise Committee TBD TBD Budget and Finance Committee TBD TBD Operations, Properties and Facilities TBD TBD Ad Hoc Design Review Committee TBD TBD Marketing and Business Development Committee