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HomeMy WebLinkAbout10-16-24 - Airport Commission Minutes Page 1 of 8 Item 6 - October 16, 2024, Minutes AIRPORT COMMISSION MINUTES OF THE REGULAR MEETING OF THE AIRPORT COMMISSION OF THE PALM SPRINGS INTERNATIONAL AIRPORT Wednesday, October 16, 2024 – 5:30 P.M. _____________________________________________________________________ 1. CALL TO ORDER: Chairman Corcoran called the Airport Commission meeting to order at 5:30 P.M. The meeting was held in-person and via videoconference. 2. POSTING OF AGENDA: Posted on October 10, 2024. 3. ROLL CALL: Commissioner’s Present: Dave Banks (Palm Springs) Geoffrey Kiehl (La Quinta) Robert Berriman (Indian Wells) Tracy Martin (Palm Springs) Todd Burke (Palm Springs) – Vice Chair Samantha McDermott (Palm Springs) Daniel Caldwell (Palm Springs) Margaret Park (Riverside County Kevin Corcoran (Palm Springs) - Chairman Jan Pye (Desert Hot Springs) Bryan Ebensteiner (Palm Springs) Christian Samlaska (Palm Springs) J Craig Fong (Palm Springs) Kevin Wiseman (Palm Desert) Ken Hedrick (Palm Springs) Keith Young (Rancho Mirage) Commissioners Absent: Denise Delagado (Coachella), David Feltman (Palm Springs) and Rick Wise (Indio) Staff Present: Jeremy Keating, Assistant Airport Director Daniel Meier, Deputy Director of Aviation, Marketing and Air Service Victoria Carpenter, Airport Administration Manager Christina Brown, Executive Program Administrator Geremy Holm, City Attorney Tanya Perez, Administrative Specialist Andrew LeCompte, Executive Administrative Assistant Others Present: Ryan Hayes, Mead & Hunt, Inc. Stephanie Nikho, Mead & Hunt, Inc. Brian Carranza, Mead & Hunt, Inc Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 2 of 8 Josh Cohn, InterVistas Mark Waier, Daley Strategies Rich Morgan, Fuse Connect 4. ACCEPTANCE OF AGENDA: ACTION: Accept the Agenda as presented. Moved by Commissioner Martin, seconded by Commissioner Kiehl, and unanimously approved noting the absence of Commissioners Delgado, Feltman and Wise. 5. PUBLIC COMMENTS: None. 6. APPROVAL OF MINUTES: ACTION: Approve the minutes of the Airport Commission Meeting of May 15, 2024, Moved by Commissioner Park, seconded by Commissioner Fong, and approved 10 Yes; 6 Abstained noting the absence of Commissioners Delgado, Feltman and Wise. ACTION: Approve the minutes of the Airport Commission Meeting of June 18, 2024, Moved by Commissioner Young, seconded by Commissioner Berriman, and approved 11 Yes; 5 Abstained noting the absence of Commissioners Delgado, Feltman and Wise. 7. DISCUSSION AND ACTION ITEMS: 7.A Master Plan Traffic Analysis and CONRAC Cost Estimations Chairman Corcoran provided a brief overview of the history of the Rental Car Center (RCC) locations and emphasized that the design phase and related discussions will come later. Ryan Hayes and Brian Carranza, representatives of Mead & Hunt, Inc., presented an overview of the Traffic Analysis and Cost Comparison Estimates for the RCC locations, Rental Car Center North Alternative and Rental Car Center South Alternative. Commissioner Young asked if there was any expectation of additional peak traffic periods with the expected growth at the Airport in the next fifteen to twenty years. Mr. Hayes stated that they expect peak traffic periods to remain the same and there could be some flattening with more flights spread out throughout the day. Commissioner Banks asked if the traffic analysis included expected residency growth as well. Mr. Carranza confirmed that they considered residency growth and other expected impacts. Commissioner Samlaska asked if an expansion in employee parking and transportation for employees was included with the Rental Car Center South Alternative. Mr. Hayes stated that Lot D was expected to be used for employee Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 3 of 8 parking and confirmed that the Rental Car Center South Alternative would meet the twenty-year demand for employee parking. Mr. Carranza stated that there was flexibility with the Rental Car Center South Alternative to provide additional employee parking and that there were discussions related to employees potentially using public shuttles to be transported to the terminal from the employee parking lots. Commissioner Caldwell asked if there were any concerns related to the Rental Car Center North Alternative having below ground levels and earthquake safety. Mr. Hayes stated that earthquake safety would be addressed at the design and engineering phase. Commissioner Wiseman asked Mr. Carranza to provide some more information related to the exact meaning of the letter grades in the traffic analysis. Mr. Carranza provided a brief explanation that each grade relates to the expected time of delay at a stop light. Commissioner Samlaska asked why the rental car shuttles could not be used for employee transportation and if this could be investigated as a possibility. Mr. Hayes stated that it was standard practice across most airports that rental car operations and employee operations are separated and that it could be investigated. Commissioner Wiseman asked where the Ground Transportation Center (GTC) would be located with each rental car center alternative. Mr. Hayes stated that with the Rental Car Center North Alternative the GTC would be located inside of the RCC. For the Rental Car Center South Alternative, Mr. Hayes stated that the GTC would be located on the north side of the property. Commissioner Wiseman asked if there was a size difference between the Rental Car Center North Alternative and the Rental Car Center South Alternative. Mr. Hayes stated that the Rental Car Center North Alternative would be larger in scale to accommodate the GTC. Commissioner McDermott asked if the cost estimates included the day-to-day operations for each of the RCC alternatives. Mr. Hayes stated that the only operation costs included in the estimates were the shuttle operations for the Rental Car Center South Alternative. Chairman Corcoran asked how the shuttle operations impacted the Airport’s sustainability commitment. Mr. Hayes stated that it would have a positive impact. Chairman Corcoran asked if there would be a difference in the sustainability impact between the Rental Car Center North Alternative and Rental Car Center South Alternative. Mr. Hayes stated that there wouldn’t be a difference between the two alternatives. Commissioner Wiseman asked if the cost estimates included the cost of shuttling passengers to and from the Rental Car Center South Alternative and the Airport terminal. Mr. Hayes confirmed this was included in the estimate for the shuttle operations. Commissioner Ebensteiner asked if non-airport traffic on Kirk Douglas Way was included in the traffic analysis. Mr. Hayes stated that it was not included in the traffic analysis. Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 4 of 8 Commissioner Keihl asked if there was any information related to the funding for each of the RCC alternatives. Mr. Hayes stated that the funding analysis does not support the Airports ability to fund either of the RCC alternatives. Assistant Airport Director Keating mentioned that currently the goal was to choose a location for the RCC, and that the means of funding the RCC would be explored later. Airport Administration Manager Carpenter explained where the Airport was currently at with debt service and that the Airport was not able to fund the cost of the RCC and that decisions would be made later related to the funding of the RCC. Commissioner Martin asked if consideration should be given to the location of the RCC and the ability to fund it based on the location. Commissioner Hedrick stated that the Commission should keep in mind that there could be alterations made to the design of the RCC based on future rental car market behavior and alternative options in the market. Commissioner Wiseman stated that he supports Commissioner Hedricks statement related to future rental car market behavior and that alternative options in the market, especially when it comes to the potential of autonomous cars being used in the future should be considered. Commissioner Wiseman asked what the estimated project years between Project Activity Level Two (PAL) and PAL Three. Mr. Hayes stated that PAL Two is five to seven years and PAL Three is ten to twelve years. Commissioner Wiseman asked how many levels the Rental Car Center North Alternative would need to be to meet the demands of PAL Three. Mr. Hayes stated it would be less than five levels. Commissioner Park asked which alternative the Airport staff would recommend. Mr. Keating stated that Airport staff would recommend the Rental Car Center North Alternative. Chairman Corcoran briefly reviewed the pros and cons of the Rental Car Center North Alternative and Rental Car Center South Alternative. Vice Chairman Burke stated that ease of use for passengers should be the priority. Commissioner Wiseman reiterated that future rental car behaviors and changes in the market need to be considered. Chairman Corcoran asked if the Rental Car Center North Alternative could be initially built at a smaller size and be expanded on if there is a need to do so in the future. Mr. Hayes stated it could be possible. Commissioner Berriman asked if the additional property that needs to be acquired on the south side of the property would be easy to purchase. Chairman Corcoran said that the owner of the land is known and that the ease to acquire the land was unknown at this time. Commissioner McDermott asked if the Rental Car Center North Alternative could be built as a two level below ground structure and if future needs require it, an additional structure on the south side of the property could be built. Chairman Corcoran stated that he belived that it was a possible option. Commissioner Caldwell stated he supported the Rental Car Center North Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 5 of 8 Alternative due to the customer service benefits and lack of a need for the shuttle buses. Chairman Corcoran said he agreed with Commissioner Caldwell. Commissioner Hedrick stated that he also agreed with Commissioner Caldwell, with his only caveat being that it was cheaper and less of a disruption to the Airport to expand upon the Rental Car Center South Alternative, if needed in the future. Commissioner Berriman asked if the plan was still to expand and move the baggage claim away from the rental car area. Mr. Keating confirmed that this was still the plan. Commissioner Fong stated that he believed that the better use of valuable Airport property needed to be considered when making these decisions. Commissioner Wiseman stated that he believed that the Rental Car Center North Alternative was the better option because it presented more future use options if the rental car market changed. ACTION: Motion to Recommend to the City Council the Approval of the Rental Car Center North Alternative. Moved by Commissioner Hedrick, seconded by Commissioner Burke, and unanimously approved noting the absence of Commissioners Delgado, Feltman and Wise. 7.B Master Plan Tenant Relocation Ryan Hayes, representative of Mead & Hunt, Inc., presented an overview of the Tenant Relocation Plan which included moving tenants to the Gene Autry Trail side of the property and making changes to the existing curbside. Commissioner Fong asked if the additional time to receive approval to make the required changes to the Gene Autry Trail curbside was factored into the timeline. Mr. Hayes stated this additional time was allocated in the Master Plan timeline. 7.C Public Parking Capacity Update Josh Cohn, representative of InterVistas, presented a brief update on the Public Parking Capacity Plan during the construction of the Rental Car Center for both the north and south alternatives. 7.D Noise Committee Update Commissioner Fong presented a brief overview of the November 16, 2024 Noise Committee meeting. 7.E Marketing and Air Service Update Deputy Director of Aviation, Marketing and Air Service Meier presented the Marketing and Air Service update. Mr. Meier mentioned that air service was Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 6 of 8 down seven percent. Commissioner Martin asked if the seven percent decrease was for the fiscal year. Mr. Meier confirmed that the seven percent decrease was for the calendar year of 2024. Mr. Meier explained that the seven percent decrease was expected and was due in part to the Boeing 737 Max issues and a reduction of flights to San Francisco International Airport on account of their runway construction project. Commissioner Martin mentioned that there seems to be an error in the Airline Activity Report showing a five percent increase. Airport Administration Manager Carpenter stated that there was an error in the calculation in the report and it had since been rectified. Commissioner Martin asked about when the Airport had no growth in a calendar year and what that means for the Airport. Ms. Carpenter stated that when there is a decrease in air service, adjustments are made to the budget to ensure there is always a surplus in funds. Commissioner Hedrick asked if the previously approved parking rate increase was still moving forward. Ms. Carpenter stated that City Manager Stiles requested that the parking increase be postponed and not presented to the City Council until a future date. Chairman Corcoran asked about the implementation of tap to pay for parking. Mr. Meier confirmed that it had been implemented. Commissioner Samlaska asked if the Boeing 737 Max issues were persisting, specifically with Southwest Airlines. Mr. Meier stated the airlines have adjusted their schedules and have fully accommodated for the Boeing 737 Max issues, including Southwest Airlines. 7.F Financial Summary Update Airport Administration Manager Carpenter presented the Financial Summary Update. Ms. Carpenter mentioned that the financial summary was incomplete and missing a few items due to the fiscal year audit. Ms. Carpenter stated that Airport finances are doing well and there was a surplus of funds. Commissioner Kiehl complimented Ms. Carpenter and stated she was doing a great job. 7.G Concessions Update Assistant Airport Director Keating presented the Concessions Update. Mr. Keating provided an update on the projected opening dates for concession projects currently under construction. Chairman Corcoran mentioned there had been a request made for more televisions in the concourse areas and that discussions with Paradies had occurred, and they were looking to add more televisions to the various restaurants and bars throughout the concourse areas. Commissioner Wiseman asked if the level for concessions needs were being met. Mr. Keating confirmed that the concessions needs were being met and when the busy season begins, more concession locations would be opened, Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 7 of 8 and other adjustments would be made to meet the higher demand. Commissioner McDermott asked if the new concession staff would have enough time to be fully trained prior to the start of the busy season. Mr. Keating confirmed that the training time would be incorporated into the opening schedules. Chairman Corcoran opened public comments. David Silverman asked if additional seating and eating areas would be installed. Mr. Keating confirmed additional seating was planned and would be installed as concession projects conclude. 7.H Art Mural Update Executive Program Administrator Brown provided a brief update on the Art Mural Project. Ms. Brown stated that there had been some delays related to the weather and that the Art Mural was expected to be completed by the end of October. 8. COMMISSIONERS REQUESTS AND REPORTS: Chairman Corcoran mentioned that the official unveiling of the new Agua Caliente Concourse sign would occur on October 31, 2024. Chairman Corcoran shared updates related to the art statues in the concourse area and confirmed they would no longer be moved. Chairman Corcoran said that there had been discussion related to forming a working group to discuss art installations for the Airport instead of this being a function of the Operations, Properties, and Facilities Committee. Chairman Corcoran mentioned that Operations, Properties, and Facilities Committee Chairman Wiseman agreed with removing Art from the Operations, Properties, and Facilities Committee scope and that a final decision related to this would be made later. Chairman Corcoran stated that he had requested a monthly report be presented to the Commission related to Airport staffing and that the report would be included at the November 20, 2024 Airport Commission agenda. Chairman Corcoran introduced Rich Morgan; representative of Fuse Connect who helped the Airport with the Agua Caliente Concourse contract. Mr. Morgan provided a brief overview of his background and what his role was with Fuse Connect. Mr. Morgan shared that he had secured an event with KGAY Radio that took place during Pride Week at the Airport as well as advertising for the event on their radio station. Vice Chairman Burke mentioned that on a past episode of the Mark and Kelly Live television show there was a brief mention of the Airport, and it was all positive. Airport Commission Minutes October 16, 2024 ______________________________________________________________________ Page 8 of 8 Commissioner Keihl asked for information regarding Fire Station Two and why it’s located where it is located and if there had been any thought given to decommissioning the station and/ or moving the station to a new location. 9.REPORT OF COUNCIL ACTIONS: 9.A. Past City Council Actions 9.B. Future City Council Actions 10. RECEIVE AND FILE: 10.A Airline Activity Report August 2024 10.B Airline Activity Report Fiscal Year Comparison 11. COMMITTEES: 11.A Future Committee Meetings 11.B Committee’s Roster ADJOURNMENT: The Airport Commission adjourned at 7:31 P.M. to a Regular Meeting on November 20, 2024, at 5:30 P.M. Approved by Airport Commission 12/18/2024