HomeMy WebLinkAbout2024-05-15 AIRPORT COMMISSION AGENDA
AIRPORT COMMISSION MEETING AGENDA
Airport Conference Room, Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Palm Springs, CA 92262
Wednesday, May15, 2024 - 5:30 P.M.
To view/listen/participate virtually in the meeting live, please contact Tanya Perez at
Tanya.Perez@palmspringsca.gov or the following telephone number (760) 318-3805 to register for
the Zoom meeting. There will be an email with Zoom credentials sent after registration is complete, in
order to access the meeting and offer public comment. Registration is not required to attend the
meeting in person.
In addition, the meeting will also be teleconferenced pursuant to Government Code Section 54953
from the following location(s):
TELECONFERENCE LOCATION(S):
Commissioner Tracy Martin– City of Palm Springs
2777 Ori Avenue
San Jose, CA 95128
Each location is accessible to the public, and members of the public may address the Airport
Commission from any of the locations listed above. Any person who wishes to provide public testimony
in public comments is requested to file a speaker card before the Public Comments portion of the
meeting. You may submit your public comment to the Airport Commission electronically. Material may
be emailed to: Tanya.Perez@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.
To view Airport Commission meeting videos click on YouTube.
City of Palm Springs: Riverside County:
Margaret Park
City of Cathedral City:
Tony Michaelis
City of Palm Desert:
Kevin Wiseman Aftab Dada -
Chair
David Feltman
Kevin J. Corcoran
Vice Chair
J Craig Fong City of Indian Wells:
Robert Berriman
City of Coachella:
Denise Delgado
City of Rancho Mirage:
Keith Young Vacant Tracy Martin
Todd Burke M. Guillermo Suero City of La Quinta:
Kathleen Hughes
City of Desert Hot Springs:
Jan Pye
City of Indio:
Rick Wise Daniel Caldwell Dave Banks
Palm Springs City Staff
Scott C. Stiles Harry Barrett Jr., A.A.E. Jeremy Keating
City Manager Airport Executive Director Assistant Airport Director
Airport Commission Meeting Agenda
May 15, 2024 – Page 2
_______________________________________________________________________________________
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
December 20, 2023
7. DISCUSSION AND ACTION ITEMS:
7.A Baggage Claim Expansion
7.B Landside Relocation Phasing
7.C Marketing and Air Service Update
7.D 2024 Airline Incentive Program
7.E Operations, Properties, Facilities Committee Update
7.F Concessions Projected Opening Dates Update
7.G Measure J Update
7.H Financial Summary Update
7.I Airport Mural Update
7.J AirportNEXT Survey
7.K Projects and Airport Capital Improvement Program Update
8. EXECUTIVE DIRECTOR REPORT
9. COMMISSIONERS REQUESTS AND REPORTS
10. REPORT OF COUNCIL ACTIONS:
10.A Past City Council Actions
10.B Future City Council Actions
11. RECEIVE AND FILE:
11.A Airline Activity Report April 2024
11.B Airline Activity Report Fiscal Year Comparison
12. COMMITTEES:
12.A Future Committee Meetings
Airport Commission Meeting Agenda
May 15, 2024 – Page 3
_______________________________________________________________________________________
ADJOURNMENT:
The Airport Commission will adjourn to a Regular Meeting on June 18, 2024, at 5:30 P.M.
AFFIDAVIT OF POSTING
I, Harry Barrett, Jr., Airport Executive Director, City of Palm Springs, California, hereby certify this
agenda was posted on May 9, 2024, 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.
AIRPORT COMMISSION STAFF REPORT
DATE: May 15, 2024
SUBJECT: Approval of the 2024 Palm Springs International Airport Air Service Incentive
Program.
FROM: Harry Barrett, Jr., Airport Executive Director
SUMMARY:
This action would recommend to City Council the approval of a new Air Service Incentive
Program for the Palm Springs International Airport (Airport).
RECOMMENDATION:
Approve the new 2024 Air Service Incentive Program.
BACKGROUND:
In 2010, the City established an Airline Marketing Program allocating $1,000,000 in
promotional funding to qualifying new air service at the Airport. As a result, from 2010 through
2017, the City had approved agreements with various airlines providing incentives valued at
over $750,000 to reimburse those airlines for marketing programs related to their new air
service to the City.
On November 14, 2018, the Airport Commission voted unanimously in favor to recommend
to the City Council the approval of replacing the cash reimbursement marketing-based
incentive program with a fee-waiver incentive program targeted to specific fees such as
landing fees and hold room fees, in an amount not to exceed $500,000 tied to new air service
between the Airport and specific destination cities. On February 6, 2019, the City Council
approved the 2019 Air Service Incentive Program (“Program”).
On November 17, 2021, the Airport Commission voted unanimously in favor to recommend
to the City Council the approval of increasing the fee waiver cap from $500,000 to $853,000
to accommodate the influx of applications for new air service and the suspension of the
program to allow Airport staff to revise and propose a new Air Service Incentive Program in
early 2022. On December 9, 2021, the City Council approved the increase of the fee waiver
cap and the suspension of the Program.
ITEM 7.D
Airport Commission Staff Report
May 15, 2024 -- Page 2
Approval of 2024 Air Service Incentive Program
On February 16, 2022, the Airport Commission voted unanimously in favor to recommend to
the City Council the approval of the 2022 Air Service Incentive Program. On March 24, 2022,
the City Council approved the 2022 Air Service Incentive Program.
On April 2, 2024, the Marketing and Business Development Committee voted unanimously in
favor to recommend to the Airport Commission the approval of the 2024 Palm Springs
International Airport Air Service Incentive Program.
STAFF ANALYSIS:
In December 2023, the Federal Aviation Administration (FAA) published revised Air Carrier
Incentive Program guidelines which allowed the Airport to offer additional types of incentives
and for longer periods of time. The current 2022 Program offers fee waivers and seven levels
of incentives based on frequency of service, type of service, and seasonality of the service
and is based on old FAA guidelines. Airport staff has determined that it would be beneficial
for the Airport to replace the 2022 Program to ensure that the Airport has the necessary
incentives to attract new air service which is crucial for the Airport to remain competitive with
the other local airports. Additionally, the planned construction of a Federal Inspection Station
(FIS) will give the Airport the ability to attract air service from international airports without
U.S. pre-clearance, and this replacement program incorporates new, enhanced incentives for
international service.
The 2024 Program offers six levels of incentives based on the same criteria as the 2022
Program, it increases the incentives for marketing funds for target cities and the conversion
of seasonal routes to year-round service, it adds a new option to attract more summer service,
and it adds a new option for service to international airports outside of North America. The
2024 Program also includes marketing funds that are earmarked specifically to advertise new
air service that meets the incentive criteria, and it offers fee waivers for landing fees, terminal
fees, and terminal space rent dependent on the incentive criteria that is met.
The 2024 Program has a tiered and progressive methodology, reserving the best incentives
for daily, year-round service to a select list of target cities, it enhances the incentives for
airlines that convert seasonal routes to year-round, and it offers new incentives for
international service to airports without U.S. pre-clearance, once the FIS is constructed, and
it offers incentives to increase summer air service. The 2024 program provides less robust
incentives for seasonal service and as existing routes become saturated.
The incentives for this new program are described as follows:
Airport Commission Staff Report
May 15, 2024 -- Page 3
Approval of 2024 Air Service Incentive Program
Airport Commission Staff Report
May 15, 2024 -- Page 4
Approval of 2024 Air Service Incentive Program
Airport Commission Staff Report
May 15, 2024 -- Page 5
Approval of 2024 Air Service Incentive Program
Airport Commission Staff Report
May 15, 2024 -- Page 6
Approval of 2024 Air Service Incentive Program
This program also comes with stipulations that include a pro-rated repayment of marketing
funds and fee waivers should an airline not complete the terms of the agreement.
Stipulations for the Marketing Funds are as follows:
1. Advertising incentive funds will be available to FAA Part 121 & 380 Signatory and Non-
Signatory Airlines with a signed Airport-Airline Use and Lease Agreement.
2. All marketing funds and activities must exclusively promote the routes eligible under the
program to/from PSP.
3. All marketing incentives are available from the date of service announcement until six months
after service inception. 50% of available funds must be spent by launch date.
4. Incentives may be paid directly to the media outlet or reimbursed to the air carrier, should the
carrier want to utilize their existing agency relationships. The Airport will reimburse the Airline
for these services, up to the allowable program funds, only if the Airline received prior written
approval of the media buy from the Airport and only if the Airline produces a detailed invoice
outlining the media purchase, their air dates, and a copy of the ads that ran. All qualified
reimbursements must be submitted to the Airport for processing no later than 45 days after the
expense is incurred. Any delayed reimbursement request in excess of 45 days is subject to a
10% reduction in reimbursable expenses. The Airport may also place ads on the airline’s behalf
if desired.
5. The Airport name or logo must be incorporated into all Airport funded media purchases.
6. Marketing activities that may be supported under this agreement include, but are not limited
to: print advertising, collateral materials, direct mail and other forms of print marketing; multi-
media advertising such as TV, radio, SEM, and interactive (web); and social media/digital
advertising such as Facebook, Instagram, X, etc.
7. All eligible funds must be spent in the PSP catchment area as defined by the Airport unless
otherwise approved by the Airport.
8. The Airport must approve in advance all advertising and promotional activities associated with
the new service for which the air carrier desires to receive the marketing incentive.
9. All advertising and marketing must comply with FAA regulations and guidelines for use of
Airport revenue for such purpose.
10. The air carrier and Airport must agree in writing to a marketing strategy for the new service,
that includes: the timeline of promotional activities; the medium that will be used, and the
budget of the promotion.
11. Should the incentivized service be suspended prior to the expiration of the incentive period,
the air carrier shall be responsible for pro-rated reimbursement of all marketing funds spent.
The Airport and/or City of Palm Springs, at its sole discretion, may consider waiving repayment
of marketing funds if, after operating the incentivized route(s) for a minimum of 4 months, the
air carrier can provide documented proof that the incentivized route(s) is/are not viable. The
Executive Director of Aviation, their designee, or the City of Palm Springs has the right to
amend, temporarily suspend, modify, alter, or cancel this Air Service Incentive Program at any
time without notice. Funds budgeted for this program shall be determined annually during the
City of Palm Springs annual budget process. Funding levels may vary year to year.
Stipulations for Incentive Fee Waivers are as follows:
Airport Commission Staff Report
May 15, 2024 -- Page 7
Approval of 2024 Air Service Incentive Program
1. Incentive Fee Waivers will be available to FAA Part 121 & 380 Signatory and Non-Signatory
airlines with a signed Airport Use and Lease Agreement, a written confirmation of the new
service, and an executed Memorandum of Agreement for any incentives provided in this
program.
2. The airline will be eligible for incentives from the first day of service for up to 24 months or 3
seasons depending on level of service as outlined in applicable incentive options. At the
conclusion of the incentive period, the air carrier will be invoiced, and must pay, the landing
fees and terminal rentals according to the Airport’s published Schedule of Rates, Fees, and
Charges as required by its Airport Use and Lease Agreement for the remainder of the contract
term for each route.
3. Terminal Waivers in Options 1-6 include Hold room/Parking and Ticket Counter/Queue per
turn fees. Airlines with a Signatory agreement will receive credits based on the signatory per-
turn hold room/parking per turn fee for the type of gate used (jet bridge vs. ground board) for
the incentivized flights and ticket counter per turn fee.
4. New Entrant Airlines may receive up to 24 months of full Terminal Space Rent waivers of
leased space which includes Ticket Counter & Queue, Airline Ticket Office, and Baggage
Service Office depending on level of service as outlined in Incentive Option 6. Waivers may be
prorated depending routes offered, existing vs. new, and will be based on existing per turn
rates in PSP’s Airline Use and Lease Agreement.
5. Incentives apply only to new scheduled service that results in an increase in the number of
total flights offered at PSP by the air carrier at the time the new service is announced. If an air
carrier launches new service, it qualifies for incentives only on the new route, not on the
existing service. An airline may not reduce frequency to, or cancel, a market it currently serves
from PSP in order to launch service to a new airport.
6. If the air carrier reduces frequency of service below the required number of flight operations
outlined in this Program, or ceases service on the incentivized route, prior to providing PSP
service for the time period outlined in this program, the air carrier shall forfeit its right to claim
any additional incentives for that route offered through this Program starting on the date service
is reduced. Reducing frequencies on the route during the incentive period to less than an
agreed upon level will reduce the amount of the financial incentive and/or result in a
proportionate reimbursement to the Airport for dollars already spent. The airline will also forfeit
any future incentives on their route(s) for a period of 24 months if it chooses to fully cease
service on the route(s). If the airline exits the PSP market entirely it will forfeit any future
incentives for 24 months starting on the first day after the airline ceased operations at PSP.
7. At no time shall the Airport or City of Palm Springs provide a rebate to an airline for participating
in this Program.
8. For the purpose of determining eligibility, affiliated airlines, joint venture partners and
predecessor and successor airlines in an airline merger or acquisition shall be treated as a
single carrier and will not be considered a new entrant to PSP. A regional carrier is eligible for
the Program if it markets and sells its service independent of a branded carrier which currently
offers service at PSP.
9. If an air carrier receives benefits under the Program and exits a route, or the PSP market,
during the incentive period, the air carrier shall repay the Airport/City of Palm Springs the total
amount of all incentives previously taken for the qualified route(s). Such repayment shall be
the Airport’s sole compensation and remedy for the air carrier’s reduction, termination, or
discontinuance of flights/routes prior to the expiration of the incentive period. The Airport/City
of Palm Springs, at its sole discretion, may consider waiving repayment of incentive benefits
if, after operating the route(s) for a minimum of 4 months, the air carrier can provide
documented proof that the incentivized route(s) is/are not viable.
10. All conditions for receiving incentives will be documented in the Memorandum of Agreement
Airport Commission Staff Report
May 15, 2024 -- Page 8
Approval of 2024 Air Service Incentive Program
between the airline and the Airport/City of Palm Springs and are subject to approval by the
appropriate City of Palm Springs officials. The Memorandum of Agreement must be signed
within 60 days of announcement. Any carrier that fails to comply shall forego all incentives in
this program.
11.Once budgeted funds for this Air Service Incentive Program, marketing and waivers, have
been expended for the fiscal year the program shall be suspended until additional funds are
approved. The Executive Director of Aviation, their designee, or the City of Palm Springs has
the right to amend, temporarily suspend, modify, alter, or cancel this Air Service Incentive
Program at any time without notice. Funds budgeted for this program shall be determined
annually during the City of Palm Springs annual budget process. Funding levels may vary year
to year.
12.Daily service must operate at least five days per week, and less-than-daily service must
operate at least two days per week. Once an airline announces service on an unserved route
it will be considered served and any subsequent announcements by other airlines will fall under
other applicable incentive options if any are applicable.
Additional Marketing Support is as follows:
1.The Airport will host a press conference, if requested, issue press releases, and use social
channels to announce new route(s).
2.The Airport will work with the airline to select media options for advertising new service if
requested.
3.The Airport will work with local organizations, such as chambers of commerce, to publicize
new service.
4.The Airport will host an inaugural event for all new routes if requested.
5.The Airport will feature the new route(s) on its website for a period of up to 60 days following
the announcement if requested.
6.The Airport will provide free advertising on its in-terminal digital advertising networks for a
period of up to 60 days beginning within the first 60 days following the announcement if
requested.
Pending approval, the 2024 Program will replace the 2022 Program on July 1, 2024, and the
term of the 2024 Program will be July 1, 2024 to June 30, 2027, unless it is extended,
suspended, or canceled by the City Council.
FISCAL IMPACT:
Airport Fund 415 will forego the collection of revenue through the incentive fee waivers, and
marketing fund will be allocated through this account on an annual basis.
Harry Barrett, Jr. A.A.E
Executive Director
ID Task Name
1
2 Hey Joshua- complete
3 Las Palmas Oasis- complete
4 Cactus to Clouds
5 Las Casuelas & Coachella Valley Coffee
6 InMotion
7 Uptown Essentials
8 The Pink Door
9 Vino Volo
10 Trio
11 Coachella Duty Free Cart
12 Half Moon Empanadas
5/3
5/3
6/20
6/21
8/2
8/30
8/30
11/15
11/25
12/20
1/31
4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
PSP Concession Projected Opening Dates
Palm Springs International Airport Tue 5/7/24
ITEM 1 0 .A Page 1 | 1
ITEM 10.A - PAST CITY COUNCIL ACTIONS
Airport Commission Meeting of May 15, 2024
City Council Meeting of April 11, 2024:
1. CONSENT CALENDAR
SUBJECT
INTRODUCE AN ORDINANCE AMENDING SECTION 16.37.005 OF THE PALM SPRINGS
MUNICIPAL CODE RELATING TO THE SIGNAGE REGARDING REGULATORY
MEASURES APPLICABLE TO TRANSPORTATION NETWORK COMPANIES
RECOMMENDATION:
Waive the reading of the ordinance text in its entirety, read by title only, and introduce an
Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING SECTION 16.37.005 OF THE PALM SPRINGS MUNICIPAL CODE RELATING
TO SIGNAGE REGARDING REGULATORY MEASURES APPLICABLE TO
TRANSPORTATION NETWORK COMPANIES.”
Attachments
Item 1H
City Council Meeting of April 25, 2024:
1. CONSENT CALENDAR
SUBJECT
SECOND READING AND ADOPTION OF ORDINANCE NO. 2096 AMENDING SECTION
16.37.005 OF THE PALM SPRINGS MUNICIPAL CODE RELATING TO THE SIGNAGE
REGARDING REGULATORY MEASURES APPLICABLE TO TRANSPORTATION
NETWORK COMPANIES.
RECOMMENDATION:
Waive the second reading of the ordinance text in its entirety, read by title only, and adopt
Ordinance No. 2096 entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTION 16.37.005 OF THE PALM SPRINGS MUNICIPAL CODE
RELATING TO SIGNAGE REGARDING REGULATORY MEASURES APPLICABLE TO
TRANSPORTATION NETWORK COMPANIES.”
Attachments
Item 1I
ITEM 1 1 .B Page 1 | 1
ITEM 10.B - FUTURE CITY COUNCIL ACTIONS
Airport Commission Meeting of May 15, 2024
City Council Meeting of May 9, 2024
SUBJECT:
FISCAL YEAR 2022-23 MEASURE J AND SINGLE AUDIT REPORTS OF THE
CITY OF PALM SPRINGS
RECOMMENDATION:
Receive and file the following Financial Audit Reports for fiscal year June 30, 2023:
• Measure J Fund Report Annual Financial Report
• Single Audit
Attachments
Item 3A
City Council Meeting of May 9, 2024
SUBJECT:
APPROVAL OF THE AIRPORT MASTER PLAN AIRSIDE AND LANDSIDE
CONCEPTUAL DEVELOPMENT PLAN FOR THE PALM SPRINGS
INTERNATIONAL AIRPORT
RECOMMENDATION:
Approve the Airport Master Plan airside and landside conceptual development plan
for the Palm Springs International Airport including the associated terminal plan and
onsite Consolidated Rental Car Facility (CONRAC).
Attachments
Item 3B