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HomeMy WebLinkAbout07-19-23 - Airport Commission Minutes Page 1 of 8 AIRPORT COMMISSION ACTION SUMMARY MINUTES OF REGULAR ADJOURNED MEETING Wednesday, July 19, 2023 – 5:30 P.M. _____________________________________________________________________ 1. CALL TO ORDER: Chairman Dada called the Airport Commission Meeting to order at 5:30 P.M., and he invited Vice Chairman Corcoran to lead the Pledge of Allegiance. The meeting was held in-person and via videoconference. 2. POSTING OF THE AGENDA: Posted on July 13, 2023. 3. ROLL CALL: Commissioners Present: Gerald Adams (Palm Springs) Kathleen Hughes (La Quinta) Robert Berriman (Indian Wells) Scott G. Miller (Palm Springs) Todd Burke (Palm Springs) Tony Michaelis (Cathedral City) Daniel Caldwell (Palm Springs) Margaret Park (Riverside County) Kevin Corcoran (Palm Springs) - Vice Chair Jan Pye (Desert Hot Springs) Aftab Dada (Palm Springs) - Chair Rick Wise (City of Indio) Denise Delgado (Coachella) Kevin Wiseman (Palm Desert) David Feltman (Palm Springs) Keith Young (Rancho Mirage) J Craig Fong (Palm Springs) Commissioners Absent: M Guillermo Suero (Palm Springs) 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 Brenda Pree, City Clerk Geremy Holm, City Attorney Christina Brown, Executive Program Administrator 4. NOMINATION AND ELECTION OF OFFICERS: City Clerk Pree explained the nomination and election process. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 2 of 8 Commissioner Adams nominated Chairman Dada to be re-elected as Chairman. There were no other nominees submitted by the Commission, and Ms. Pree announced the re-election of Chairman Dada. Commissioner Wiseman nominated Vice Chairman Corcoran to be re-elected as Vice Chairman. There were no other nominees submitted by the Commission, and Ms. Pree announced the re-election of Vice Chairman Corcoran. 5. ACCEPTANCE OF THE AGENDA: ACTION: Accept the Agenda as presented. Moved by Commissioner Young, seconded by Commissioner Wise, and unanimously approved noting the absence of Commissioner Suero. 6. PUBLIC COMMENTS: None 7. APPROVAL OF THE MINUTES: ACTION: Approve the minutes of the Airport Commission Meeting of March 15, 2023. Moved by Commissioner Burke, seconded by Vice Chairman Corcoran and approved by the following roll call vote 12 Yes; 4 Abstain; and noting that Commissioner Delgado was inadvertently not included in the roll call vote and with the absence of Commissioner Suero. 8. INTRODUCTIONS AND PRESENTATIONS: 8.A Airport Commissioner Daniel Caldwell (Palm Springs) Chairman Dada introduced newly appointed Airport Commissioner Daniel Caldwell (Palm Springs). Commissioner Caldwell said that he and his wife have been residents of Palm Springs for approximately 11 years, and he is a structured settlement specialist. Commissioner Caldwell said that he believed that the Airport was on to something big, and he was excited to be serving on the Commission. 8.B Airport Commissioner J Craig Fong (Palm Springs) Chairman Dada introduced newly appointed Airport Commissioner J Craig Fong (Palm Springs). Commissioner Fong said that he was a semi-retired immigration lawyer and that he had been in his profession for approximately 40 years. Commissioner Fong said that he was looking forward to expanding the Airport’s international reach and improving the Airport’s baggage handling system. He said that it was important to him to make sure that the Airport is being responsive to the needs of the passengers and the airlines, and Commissioner Fong said that he would like to see if there could be a way to even out the number of flights during the off-season. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 3 of 8 8.C Airport Commissioner Denise Delgado (Coachella) Chairman Dada introduced newly appointed Airport Commissioner Denise Delgado (Coachella). Commissioner Delgado noted that she is a City of Coachella Councilwoman that was elected in 2020, and she is a teacher. Commissioner Delgado said that she was proud to be serving on the Commission. 8.D Airport Commissioner Robert Berriman (Indian Wells) Chairman Dada introduced newly appointed Airport Commissioner Robert Berriman (Indian Wells). Commissioner Berriman noted that he had previously served two terms on the Airport Commission and that he had served on the Business Development and Operations, Properties and Facilities Committees. He said that he was fully retired, a volunteer with the Friends of the Desert Mountains, his background was primarily law enforcement with the California Highway Patrol Air Operations Unit, and he is a pilot. Commissioner Berriman said that he truly loves the Airport. 8.E Airport Commissioner Margaret Park (Riverside County) Chairman Dada introduced newly appointed Airport Commissioner Margaret Park (Riverside County). Commissioner Park said that she is the chief planning officer for the Agua Caliente Band of Cahuilla Indians in Palm Springs, she has had the privilege of working for the tribal government for 21 years, and she said that she is serving on the Commission because the Airport is located within the Agua Caliente reservation. 9. DISCUSSION AND ACTION ITEMS: 9.A Operations, Properties and Facilities Committee Update Committee Chairman Feltman said that an update had been provided at the previous Airport Commission meeting and that he had no further updates to provide to the Commission. 9.B Ad Hoc Design Review Committee Update Committee Chairman Corcoran outlined the responsibilities of the Ad Hoc Design Review Committee for the new Commissioners, and he reported that Paradies had notified the Committee that the original vision for the projection system that would project local events on to the ceiling of the Cactus to Clouds Bar that was be developed in the Bono Concourse was not going to be possible because Paradies had determined that the projections would not be visible during the daylight hours. He said that the designers presented an alternative design that added television monitors to the posts of the bar to promote local events. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 4 of 8 Committee Chairman Corcoran asked Airport Administration Manager Carpenter if the concession projects were on schedule. Ms. Carpenter reported that there had been some slight delays that were due to building permit delays, and she said that the Airport Planner was aggressively working with City staff to get the building permits processed as quickly as possible. 9.C Marketing and Business Development Committee Update Committee Chairman Burke reported that the Committee had met on July 12th, and he said that Deputy Director of Aviation, Marketing and Air Service Meier had provide updates on the Airport’s new branding, customer experience, and advertising. He said that Mr. Meier had reported to the Committee that Phase 1 of the Airport’s new branding rollout had stated on July 10th which focused on the new look and feel of the Airport’s website, social media, advertising, Navigator uniforms, in terminal signage, media backdrop, and podium sign. Committee Chairman Burke said that Mr. Meier had reviewed several exciting customer experience projects that staff was exploring which included a Dementia Friendly certification, an online Lost and Found Program, and a Ship to Home Program to help passengers ship home prohibited TSA items. He also said that there were several projects that were being rolled out such as Good Maps which is designed to assist visually impaired customers, and a therapy dog program to help reduce customer anxiety. Committee Chairman Burke said that Mr. Meier had reported that the Airport’s advertising contractor Fuse had presented some significant revenue opportunities, and he said that the Committee was pleased with Fuse’s performance. Vice Chairman Corcoran referred to the Fuse contract, and he asked if there had been any changes made to the technology or equipment being used for advertising. Committee Chairman Burke said that he would defer the question to Mr. Meier. Commissioner Fong asked for information on the different phases of the Airport’s branding roll out. Committee Chairman Burke said that he believed that Mr. Meier would be providing information on the phases in the Marketing Update. 9.D Marketing and Air Service Update Deputy Director of Aviation, Marketing and Air Service Meier presented the July 2023 Marketing and Air Service update. Commissioner Fong inquired about the branding phases. Mr. Meier explained that there was a significant number of steps in the branding phases and that most importantly anything that has the old logo would need to be updated with the new logo. Vice Chairman Corcoran referred to the Fuse contract, and he asked if Fuse would be doing anything new with the advertising technology or equipment. Mr. Meier said that Lamar had removed the digital static screens in the baggage claim area and that Fuse Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 5 of 8 would be placing new digital screens in the baggage claim area, and he said that the majority of the static screens throughout the Airport would be replaced with the digital screens which would allow for the advertising to be changed more quickly. Mr. Meier noted that the static screens that were in the courtyard had been damaged by the heat and that Fuse was looking into retrofitting those screens. 9.E Financial Summary Update Airport Administration Manager Carpenter provided an overview of the financial summary ending on June 30, 2023. Commissioner Caldwell inquired about the fiscal year period. Ms. Carpenter explained that the fiscal year was from July 1, 2022 to June 30, 2023. Commissioner Wise suggested that Ms. Carpenter explain to the new Commissioners how some of the funds can only be used for certain projects. Ms. Carpenter explained that Fund 405 could be used for the consolidated rental car facility, and the PFC funds could be used for FAA approved projects. Chairman Dada thanked Ms. Carpenter for sharing the investment policy with the Commission, and he asked about the allowable length of time for an investment. Ms. Carpenter said that she would need to provide that information at a future Commission meeting. Chairman Dada asked if the City would retain the interest income or if the Airport would receive the interest income. Ms. Carpenter said that the Airport would receive the interest income. Chairman Dada inquired about what the interest income could be used for. Ms. Carpenter said that the interest income would go into the Operations and Maintenance revenue account. 9.F Concessions Update Airport Assistant Director Keating reported that both Paradies and The Marshall Retail Group (MRG) continue to be responsive to staff’s requests and that the Airport staff holds weekly meetings with Paradies and MRG. He said that staff had received 20 separate design packages which were being reviewed by staff. Mr. Keating reviewed the schedule for the concession projected opening dates. Commissioner Wiseman requested that the original project completion dates be provided in the schedule so that the Commission can see the schedule changes. 9.G Projects and Airport Capital Improvement Program Update Airport Executive Director Barrett noted that the update had been provided in the agenda packet, and he reported that staff would be submitting a staff report to the City Council for the approval of a construction manager at risk agreement with Skansa USA Building Inc. for the expansion of the baggage claim. Mr. Barrett explained that in February 2023, the Airport had been awarded a $5.7 million competitive FAA grant for the renovation of the baggage claim, and staff learned in May that the Airport had a July 31st deadline to have the construction management agreement in place. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 6 of 8 10. EXECUTIVE DIRECTOR REPORT: Airport Executive Director Barrett reported that in the adopted budget for fiscal years 2023-24 and 2024-25, the Airport was authorized 49 additional full time employee positions, and approximately half of the employees would be hired in fiscal year 2023- 24 and the other half in 2024-25. Mr. Barrett recognized that there had been concerns about the space planning and onboarding challenges, and he said that staff had been able to solve the space planning by identifying additional office space and by using creative thinking to better utilize the space that is currently being used. Mr. Barrett said that a Human Resources Specialist was hired to report to the Airport exclusively to facilitate the Airport’s recruitments, and the Human Resources Department would be contracting with a consulting firm that would be working on recruitments with an emphasis on Airport recruitments. He said that the Airport was focused on hiring staff for capital development positions, Operations, three new Fire Captains, and an Accountant. Mr. Barrett reported that the Airport has an opportunity to potentially have a closer partnership with a community stakeholder through a naming sponsorship of the Reginal Jet (RJ) Concourse which would be a revenue generating agreement that would involve some minor signage as well as some advertising on the boarding bridges. Deputy Director of Aviation, Marketing and Air Service Meier provided an example of the placement of the advertising on a jet bridge, and the naming sponsorship placement on the outside wall of the RJ entrance, and on the inside wall of the RJ. Mr. Meier noted that advertising wasn’t typically approved by the Commission and that due to the size of the projects, staff felt it would be important to get the Commission’s feedback. Vice Chairman Corcoran asked how much the Airport would be getting for the sponsorship. Mr. Meier said that the details were still being worked out, and he said that it would be over a million dollars. Commissioner Wise inquired about the contract term. Mr. Meier said that the contract term was also being worked out and that it would be a multi-year contract. Commissioner Young asked if the staff had any concerns about the partnership or reputational risk. Mr. Barrett said that staff did not have any concerns about reputational risk, and he said that staff’s main concern was that the partnership would highlight the benefits of the community while ensuring it was also respectful to the community, Airport Commission, and the City Council. Vice Chairman Corcoran asked how the staff would be sharing the sponsorship updates with the Commission, and when would the information be shared with the community. Mr. Barrett said that there needed to be further discussions with the community partner and that staff could provide an update to the full Commission or the Marketing Committee, and once approved, a public announcement could be made. Vice Chairman Corcoran asked if the revenue would be added to the advertising budget. Airport Administration Manager Carpenter said that the revenue would go into the Operations and Maintenance revenue account. Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 7 of 8 Commissioner Miller inquired about other Airports that offer this type of sponsorship opportunity. Mr. Meier said that to his knowledge, PSP would be the first to offer naming rights. Commissioner Miller voiced his concern about the Airport tying itself to the organization that has the naming rights, and the Airport running the risk of that organization, outside of the scope of any control the Airport has of that organization, doing something that could make the Airport look bad. Commissioner Miller suggested that the Airport proceed with caution, and he said that the Airport’s reputation is invaluable, and money may not be the best reason to proceed with the sponsorship. Mr. Meier said that there would be a clause in the agreement that would allow the Airport to cancel the contract. Executive Program Administrator Brown said that Commissioner Feltman could ask his question and then the Commission would need to move forward with the agenda and that the item could be brought back as a Discussion and Action Item for a future Commission meeting. Commissioner Feltman said that he felt that there should be a vetting process that would include members of the Commission who have deep ties to the community in addition to the Airport staff, and it would concern him if it were to come to the Commission as an announcement. He also questioned why the sponsorship would be put out for bid, he voiced his concern about it appearing to be an inside deal, and he noted that the Airport is a public entity. Mr. Barrett clarified that staff would be bringing this item back to the Commission to get the Commission’s feedback. Vice Chairman Corcoran asked staff to also provide an analysis of the rationale behind the amount of the sponsorship. Commissioner Miller asked if staff had informally spoken to any of the City Councilmembers about the sponsorship. Mr. Barrett said that he had spoken to the City Manager about the sponsorship opportunity, and the City Manager had notified the City Council about the sponsorship opportunity. Commissioner Fong asked if the Commission could review the sponsorship agreement. Mr. Barrett said that he would need to run the request by the City Attorney. City Attorney Holm said that the agreement would be vetted by a City Attorney before it would be presented to the Commission or the City Council. 11. COMMISSIONERS REQUESTS AND REPORTS: Commissioner Adams shared information with the Commission about other Airport’s choosing to have silent operations which involves the airport eliminating all overheard speaker announcements to reduce ambient noise, and technology is used to send announcements out electronically. 12. REPORT OF CITY COUNCIL ACTIONS: 12.A. Past City Council Actions 12.B. Future City Council Actions Palm Springs Airport Commission Action Summary Minutes of Regular Adjourned Meeting July 19, 2023 ______________________________________________________________________ Page 8 of 8 13. RECEIVE AND FILE: 13.A Airlines Activity Report May 2023 13.B Airline Activity Report Fiscal Year Comparison 14. COMMITTEES: 14.A Future Committee Meetings Executive Program Administrator Brown announced that an Ad Hoc Design Review Committee meeting had been scheduled for Wednesday, July 26th at 4:30 p.m. ADJOURNMENT: The Airport Commission adjourned at 6:40 P.M. to a Regular Meeting on September 20, 2023, at 5:30 P.M. ____________________________ Christina Brown Executive Program Administrator