The URL can be used to link to this page

Home My WebLink About11/1/2006 - STAFF REPORTS - 2.S.RECEIVE® NOV 027'K Jan Truscott From: Sent: To: Subject: Richard Walsh Thursday, November 02, 2005 9:02 AM Jan Truscott FW. PSP Air Museum and Da Vinci Event: Temporary Fee Waivers Jan, per your request I am resending the FAA's concurrence (originally sent to David on 10/27)- The last sentence of Tony's email says it all. Richard S. Walsh, A.A.E. Director of Aviation Palm Springs International Airport 3400 E. Tahquitz Canyon Way, Suite OFC Palm Springs, CA 92262-6966 C: 760.835.1084 T: 760.318-3901 F: 760-318.3815 Richard.walshGpal,msprings-ca.gov www.palmspringsairport.com -----Original Message --- Prom: Richard Walsh Sent: Friday, October 27, 2006 7:36 AM To: David Ready Subject: FW: PSP Air Museum and Da Vinci. Event David, We have received approval for, the waiver of, the CiLy will not have to reimburse the Airport and appropriate. I l C}o0 141 14 Temporary Fee Waivers Y ✓" %/� L p � I PSAM Da Vinci exhibit fees therefore te/Jh/ can waive the fees if it so deems Y I'll have the revised staff report to you this a.m. RSW Richard Walsh , We are responding to your request for a determination regarding the waiver of fees payable to PSP for the percentage of revenue that would he earned from public admission to the L iv Palm Springs Air Museum to view the Da Vinci display. You inquired if foregoing the revenue would represent improper revenue diversion and a violation of the self-sustaining principle. We have evaluated the proposed waiver and offer the following determination. In accordance with Assurance 24, the City of Palm Springs is supposed to make the airport as self. -sustaining as possible while Assurance 2S requires that the City use airport revenue solely for airport purposes. The proposal to temporarily waive and not collect a percentage of museum revenue does not - clearly represent an example of revenue diversion. However, foregoing revenue that the airport would otherwise earn will surely make tha airport less self. -sustaining. The City proffers that the Da Vinci event will have an aviation related theme, generate interest in aviation, create some good will for the airport, and is sufficiently associated with the air museum. On the other hand, the waiver will have a negative impact on airport revenue. If the Da Vinci event is a success, the airport will forego its extra share of the revenue produced by the event. During the event, revenue from the air museum will tall to zero. Within the context of the airport's capital and operating needs, can the airport afford to be less self-sustaining? If the airport must rely on airport revenue alone to finance its capital and operating budget, is it wise to abate rents? Why must- the airport subsidize the air museum for, a special event with rent concessions? Assurance 24 requires the airport to be self-sustaining. The waiver will detract from the airport's self- sufficiency. Therefore, it is our opinion that the waiver deviates from the spirit of Assurance 24 although it may not violate the Assurance directly. QerefoTe, in conclusion, we are not objecting to the fee waiver during the 4a Vinci event n the condition that waiver represents a one-time occurencs, following which applicable fees will be reinstated. Tony Garcia FAA Airports Hawthorne CA xxxxxxxxxmxxxxxxxxxxxXXXXXXXXXXXXX.xxxxxxx XXXXXXXXXXXXXX 2 DAVID H. READYy CITY MANAGER MEMORANDUM DATE: NMVE.MSER 01, 2OD6 To: CITY COUNCILMEMWERS SuE3jr:C7n AGENDA ITEM Z.S FYI: Please note that the Airport Commission unanimously voted against waiving fee. (1� The discussion centered on the loss of Airport rep enue. i �✓ 1 1 PAIM s 1/ pP Cq<IFORN`P. CITY COUNCIL STAFF REPORT DATE: NOVEMBER 1. 2006 CONSENT CALENDAR SUBJECT: WAIVER OF THE PALM SPRINGS AIR MUSEUM S0.25 PER TICKET ADMISSION FEE THROUGHOUT THE TERM OF AND SPECIFIC TO THE DA VINCI PROGRAM (NOVEMBER 3, 2006 — FE4;-RY c 2007) MarwiN FROM: David H. Ready, City Manager BY: Department of Aviation urkrj i'1 At the request of the PSAM, Staff recommends the City Council waive the $0.25 ticket admission fee that the Da Vinci Exhibit would generate to the benefit of the Palm Springs International Airport. The waiver of ticket admission applies only to admissions associated with the Da Vinci Exhibit and not PSAM Admissions. The exhibit will be held at the Palm Springs Air Museum on November 3, 2006 through February 25, 2007 and is expected to generate upwards of 200,000 guests. RECOMMENDATION; 1. Adopt Minute Order No. , Approving the waiver of the Palm Springs Air Museum $0.25 Per Ticket Admission Fee specific to the Da Vinci Program effective November 3, 2006 through 1=abru25, 2007. ��lCJ1'1 �Lf1 2. Authorize the City Manager to execute all necessary documents -- STAFF ANALYSIS: The Palm Springs Air Museum (PSAM) entered into a lease with the City of Palm Springs, Palm Springs International Airport on November 29th, 1995 (Minute Order No. 5514). The Palm Springs International Airport receives no land rent from the PSAM as the lease is primarily predicated upon revenue sharing. Per the lease arrangement between the City of Palm Springs, Palm Springs International Airport and the PSAM, the PSAM is to pay to the City $0.25 per admission; 3% of gross Gift Shop Sales; $0.25 per (guest) facility rental; and 10% of gross Vending Sales. The Airport receives, on ITEM NO. Z .S: City Council Staff Report November 1, 2006 -- Page 2 PSAM Fee Waiver average, approximately $30,000 annually from the PSAM. However and based upon the overall positive impact to our tourism economy, staff agrees with PSAM's request for this waiver. The FAA does not oppose this proposal. The Airport Commission at its November 1, 2006 Meeting recommended that the City Council approve this waiver of fees. FISCAL IMPACT: (Finance Director Review: The loss of Airport revenue during the Da Vinci exhibit term of November 3, 2006 through February 25, 2007 is estimated at no less than $12,500 (50,000 visitors x $0.25) and not greater than $50,000 (200,000 visitors x $0.25). l Richard S. Walsh, Director of Avlatiot� David H. Ready, � nager Attachments: Minute Order MINUTE ORDER NO. APPROVE MINUTE ORDER NO, APPROVING THE WAIVER OF THE PALM SPRINGS AIR MUSEUM $0.25 PER TICKET ADMISSION FEE SPECIFIC TO THE DA VINCI PROGRAM EFFECTIVE NOVEMBER 3, 2006 THROUGH F-�€ PWA��S, 2007. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order Approving the waiver of the Palm Springs Air Museum $0.25 per ticket admission specific to the Da Vinci Program effective November 3, 2006 through Febrtierr-z 2007, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 1st day of November, 2006 James Thompson, City Clerk