Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
9/5/2001 - STAFF REPORTS (10)
DATE: September 5, 2001 TO: City Council FROM: Assistant City Manager-Special Projects PASSENGER FACILITY CHARGE - $4.50 AMENDMENT RECOMMENDATION: It is recommended that City Council authorize the Submittal of Amendment#2 to the Airport's Passenger Facility Charge Federal Approval to raise the rate from $3 per enplaned passenger to $4.50 per enplaned passenger.- SUMMARY: This proposed action would authorize the Submittal of the Second Amendment to the Airport's PFC Federal Approval so as to raise the collection amount from the current $3.00 to $4.50 per enplaned passenger with the additional funds being allocated to cover existing debt on the terminal building expansion program. BACKGROUND: In 1992, Palm Springs was one of the first municipalities to have a PFC approved by the federal government. The rate was set at the maximum level of $3.00 per enplaned passenger and a single terminal expansion program was approved. About the time the terminal expansion was to begin, the economy went into a slump and in 1993, the Airport processed its first Amendment to the PFC which split the terminal project into two phases with a ten-year implementation schedule. The final phase of work was completed with the opening of the new concourse in November 1999. This year is the first year that the full debt service on the three bond issues related to the terminal expansion is reflected in the budget. Average annual debt is now: 1992 General Airport Revenue Bond $1,203,284 1998 General Airport Revenue Bond 531,221 1998 PFC Bond 800,51 Total Average Annual Debt $2,535,018 The most current projections for PFC collections based on the $3.00 rate are as follows: Fiscal Year PFC Projection 2000/01 $1,625,472 2001/02 $1,631,745 2002/03 $1,639,904 2003/04 $1,656,303 Comparing the average annual debt with the projected PFC collections reveals an annual shortfall of approximately $900,000. 9h September 5, 2001 Page Two In 1992, when the original terminal expansion project was proposed, the airlines agreed to the project with the knowledge that debt service would eventually require that the annual airlines rates and charges be raised over$1.5million. The Airport's non-airlines revenues have grown faster than projected and, therefore, the negative impact to rates and charges is only $900,000. The airline industry is currently going through a slowing economic period and a rate increase to the airlines at this time would be a major setback to our air service development efforts. At budget time, the airlines reviewed the Airport's proposed budget, saw the impending rate increase, and quickly supported the concept of raising the PFC to cover the debt shortfall. They also agreed to short-term gap financing to meet the Airport's grant match requirements if necessary and to a refinancing of the 1992 bond issue to remove debt coverage requirements that adversely effect charges to the airlines. The gap financing was not needed and the 1992 refinancing will be brought forward later this year. The official FAA approval process calls for a notification to all air carriers serving the Airport (sent on June 29, 2001); an air carrier consultation meeting no less than 30 days later(held on July 30,2001, see attached Consultation Packet); a 30-day period for airlines to register support or non-support (completed on August 30, 2001), and then a 90 to 120-day period for FAA review from submittal. The PFC increase was taken to the Airport Commission at budget time and again at the July 11, 2001, meeting. The Commission reviewed the Airline Consultation Package and voted to support the increase by a vote of 10-1-4 absent. The dissenting vote felt it was inappropriate to pass the $1.50 onto the passenger. Staff and the other commissioners explained the $1.50 impact to the passenger is much smaller than the potential impact of having airlines rates and charges that are not competitive with other airports. The proposed PFC increase from $3.00 to $4.50 per enplaned passenger will generate approximately$850,000 per year to cover the debt service shortfall. At the consultation meeting, the airlines attending were unanimously in support of the increase. The consultation meeting Minutes have been circulated to all airlines serving the Airport and the thirty (30) day comment period has passed with either letters of support or no official comment(Note: no comment by FAA regulation is an affirmative vote.) September 5, 2001 Page Three With the consultation process complete,the Amendment is now ready for FAA review. Attached is a Resolution for City Council consideration which would authorize the submittal of the Amendment. r, ALLEN F. SMOOT, AAE Assistant City Manager- Special Projects APPROVE^ —� City Manager Attachments: 1. Resolution 2. Airline Consultation Packet REVIEWED BY DEFT.OF FINANCE AIR CARRIER CONSULTATION PACKET Second Amendment to the APPROVED PASSENGER FACILITY CHARGE Palm Springs International Airport PFC# 91-01-C-00-PSP As Amended Dated: June 29, 2001 PUBLIC AGENCY INFORMATION Agency: City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Airport to Use: Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, CA 92262 Responsible Official: Allen F. Smoot, AAE (760) 318-3900 AIR CARRIER CONSULTATION Date Written Notice Sent to Carriers: June 29, 2001 Date of Consultation Meeting With Carriers: July 30, 2001 NOTICE AIR CARRIER CONSULTATION PASSENGER FACILITY CHARGE -AMENDMENT#2 PALM SPRINGS INTERNATIONAL AIRPORT PALM SPRINGS, CALIFORNIA NOTICE IS HEREBY PROVIDED, as of this 29th day of June 2001,per Part 158 Federal Aviation Regulations, of the intent of the Palm Springs International Airport, which is owned and operated by the City of Palm Springs,California,to hold consultation with all air carriers and foreign air carriers serving Palm Springs International Airport concerning the increase of the Airport's Passenger Facility Charge from $3.00 to $4.50, Amendment No. 2. The use for the Airport's Passenger Facility Charge is not being changed; however, the amount is being increased to cover the full debt on all three (3) existing bond issues that fund the original Passenger Facility Charge approved projects. The level of the charge is proposed to increase from$3.00 to$4.50,with a proposed effective date of January 1, 2002, and an estimated expiration date of June 30, 2024. It is estimated that the total Passenger Facility Charge (PFC) revenues collected will equal $76,883,179. The Airport shall continue its approved practice that all Part 135 air taxi operators be exempt from the collection of the increased charge. The Part 135 air taxis known to operate at the Airport and their 1999 reported enplanements are, as follows: Aircharter Express, Inc. 1 American Jet Charter, Inc. 5 American Jet International Corporation 2 Executive Flight, Inc. (Washington) 9 Glynn Air, Inc. 4 Midamerica Jet, Inc. 2 Midwest Corporate Aviation, Inc. 4 Modesto Executive Air Charter, Inc. 7 Pacific States Aviation, Inc. 2 Witte, Albert A. 2 Total Calendar 1999 Air Taxi Enplanements: 38 Compared to the total enplanements of 634,660 for the same period, this proposed continued exempted class represents approximately.00006%of annual enplanements. The Airport's continued request for this exemption is based on the fact that administrative costs for the Airport would far exceed the annual revenue of$168 from this class. The Palm Springs International Airport will present the proposed Amendment to the domestic and foreign air carriers serving it on July 30, 2001, at 11:00 a.m. (Local) at the Palm Springs International Airport Conference Room, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262. For the consultation meeting,a conference call opportunity will also be provided. To receive specifics on the conference call number and participant codes,please contact the Airport offices at 760/318-3800 no earlier than 48 hours prior to the meeting. Attached,please find the Air Carrier Consultation Packet concerning this proposed Amendment. Questions may be directed to Allen Smoot, (760) 318-3901. Signed: _4# ALLEN F. SMOOT, AAE Interim Director of Aviation Dated: --TIA— 9 5) ---o ?)V(p SUMMARY OF PACKET AIR CARRIER CONSULTATION PASSENGER FACILITY CHARGE - AMENDMENT 92 The attached packet of information is provided to the air carriers serving Palm Springs International Airport per Part 158 Federal Aviation Regulations for consultation purposes related to an increase in Passenger Facility Charge from $3.00 to $4.50. This packet includes: 1. Cover Page 2. Notice 3. Summary 4. FAA Form 5500 - 1 5. Attachment "A" 5-Year Capital Improvement Plan 6. Attachment"B" Project Information 7. Airport Cash Flow Projection This Amendment would raise the PFC to $4.50 to allow for the Airport to cover the full cost of debt on all three outstanding bond issues. The total collected would be reduced from $82,888,914 to $76,883,179. Due to early redemption provisions of the bond issues,the PFC term will be reduced from 10/30/32 to 6/30/24. Finally, the Airport Cash Flow Projection shows no rates and charges increase this coming year; without the Amendment, there would be an approximate $900,000 increase. 0 ;0 OMB Approved 2120-0557 PASSENGER FACILITY CHARGE (PFC)APPLICATION U.s Department or Transportation Federal Aviation Administration - 1. Application Type(Check all that apply) -, ,( � FAA USE ONLY ❑ a. Impose PFC Charges f' Date Received PFC Number ❑ b. Use PFC Revenue C g] c. Amend PFC No 91-01-C-00-PSP i PART 2. Public Agency Name,Address,and Contact Person 3. Airport(s)to Use 4. Consultation Dates Agency Name: City of Palm Springs a. Date of Written Notice to Air Carriers: Address. 3200 E.Tahquitz Canyon Way June 29,2001 Palm Springs International City,State,ZIP: Palm Springs, CA 92262 Airport(PSP) b. Date of Consultation Meeting with Air Carriers: Contact Person: Allen F.Smoot (760)318-3900) July 30, 2001 PART II S. Charges a. Airport to Impose b. Level c. Total Estimated PFC d. Proposed Effective e. Estimated Expiration Revenue by Level Date Date: Palm Springs International Impose Airport(PSP) ❑$1.00❑$2.00 n $3.00 (see 4a Attachment B) Existing Use 82,888,919. January 1,2002 June 30, 2024 Impose ❑$4.00 J]$4.50 (see 4a Attachment B) Proposed Use 76,883,179. PART III 6. Attachments(Check all that Apply) Attached Submitted with Application Number Document a. ] ❑ Airport Capital Improvement Plan b. ❑ Project Information (Attachment B) C. ❑ ❑ Air Carrier Consultation Information d. ❑ �] 91-Ot-C-00-PSP Request to Exclude C[ass(es)of Carriers e. ❑ ❑ Alternative Uses/Projects f. ❑ ❑ Competition Plan/Update g. ❑ jK] 91-01-C-00-PSP ALP/Airspace/Environmental h. ❑ ❑ PART IV 7. With respect to this PFC application I hereby certify as follows: To the best of my knowledge and belief,all data in this application are true and correct, This application has been duly authorized by the governing body of the public agency; The public agency will comply with the attached assurances if the application is approved; For those projects for which approval to use PFC revenue is requested, all applicable ALP approvals, airspace determinations, and environmental reviews required by the National Environmental Policy Act have been completed. If required,the public agency has submitted a competition plan in accordance with 49 U.S C 47106h), and If required by 49 U.S C.40117(d)(4), adequate provision for financing the airside needs, including runways,taxiways, aprons, and gates, has been made by the public agency. a Typed Name of Authorized Representative b. Title c. Telephone Number (760)318-3900 Allen F.Smoot Interim Director of Aviation d. Fax Number (760)318-3815 e. Signature of Authorized Representative f. Date Signed FAA Form 5500-1 (8-00)Supersedes Previous Edition �� ATTACHMENT"A" Document: Five Year Capital Improvement Program Sponsor: City of Palm Springs Airport: Palm Springs International Airport Item: Project Estimated Funding . Funding. Funding Cost Source(s) - FAA PSP Year: 2002 02-1 Terminal Expansion-Holdrooms Gates 1,2&3-Phase II$ 1,855,280 FAA 75%-PSP 25% $ 1,391,460 $ 463,820 02-2 Rehab-Reconstruct Commuter Ramp $ 1,200,000 FAA 90%-PSP 10% $ 1,080,000 $ 120,000 02-3 Security System Upgrades& Rehab $ 200.000 FAA 90%-PSP 10% $ 180,000 $ 20,000 02-4 East SIDA Access Relocation I Fence& Road Work $ 600,000 FAA 90%-PSP 10% $ 540,000 $ 60,000 02-5 Part 139 OPS Data Base& Records Management System$ 250,000 FAA 90%-PSP 10% $ 225,000 $ 25,000 02-6 Terminal Wall Covering Replacement $ 60,000 PSP 100% $ 60,000 Subtotal':$ 4,16'5,28-0 33,416;460' $. 748,820 Year: 2003 03-1 Expand Loop Road(Terminal Access) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-2 Volturno Access Road (Industrial Park) $ 1,980,000 FAA 90%-PSP 10% $ 1,782,000 $ 198,000 03-3 Relocate Segmented Circle&ASOS $ 297,000 FAA 90%-PSP 10% $ 267,300 $ 29,700 03-4 Taxiway"G"Rehab $ 594,000 FAA 90%-PSP 10% $ 534,600 $ 59,400 03-5 Replace Runway Sweeper $ 200,000 FAA 90%-PSP 10% $ 180,000 $ 20,000 03-6 Phase VI Noise Mitigation (Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-7 Terminal Painting $ 100,000 PSP 100% $ 100,000 Subtotal!$ 7,171,000 $ 6,363,900 $ 807,100 Year: 2004 04-1 Seal Coat 131J31R&Taxiways $ 100.000 FAA 90%-PSP 10% $ 90,000 $ 10,000 04-2 Reconstruct Air Carrier Aircraft Aprom $ 1,584,000 FAA 90%-PSP 10% $ 1,425,600 $ 158,400 04-3 T-Hangar Taxiways $ 700,000 FAA 90%-PSP 10% $ 630,000 $ 70,000 04-4 Construct High Speed Taxiway(North) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 04-5 Pahase VII Noise Mitigation(Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 04-6 Carpet Replacement $ 200,000 PSP 100% $ 200,000 Subtofa/+$ - - . .... _ ; 5`384;000- ;$: 4---- ;fi65,600„ $ ;718;4(lo , Year: 2005 05-1 Noise Monitoring System $ 1,000,000 FAA 90%-PSP 10% $ 900,000 $ 100,000 05-2 Construct Air Carrier Ramp $ 3,000,000 FAA 90%-PSP 10% $ 2,700,000 $ 300,000 05-3 Rehab Commuter Ramp Phase II $ 500,000 FAA 90%-PSP 10% $ 450,000 $ 50,000 05-4 Carpet Replacement $ 200,000 PSP 100% $ 200,000 05-5 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal,$ 4,850,o00 '$.'4;650,000 $ 800,660 Year: 2006 06-1 Construct High Speed Taxiway (South) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 06-2 Loading Bridges at Gates 1,2&3 $ 2,000,000 FAA 75%-PSP 25% $ 1,500,000 $ 500,000 06-3 Air Carrier Ramp $ 1,300,000 FAA 90%-PSP 10% $ 1,170,000 $ 130,000 06-4 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal-$ 4,250,000 $ 3,390,000 $ 860,000 Total,Expenditure •+* %�*�•«� i",; � - $ 2'i;86'5,960 $3r834,320;; ATTACHMENT B: PROJECT INFORMATION *****FOR FAA PFC Application number: 1. AIRPORT WHERE PROJECT IS LOCATED: Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, California 92262 Contact: Allen F. Smoot, AAE, Assistant City Manager- Special Projects 2. CHECK ONE: IMPOSE[ ] IMPOSE AND USE [X] USE[ ] 3. PROJECT TITLE (And Public Agency Project Number, If Appropriate): Terminal Expansion Debt Service- Full Coverage 4.a. PROJECT DESCRIPTION: Increase PFC from $3 to $4.50 to cover full debt service on previously approved and constructed terminal expansion projects. No new work, only additional PFC's to cover existing debt on the three PFC approved projects or as they maybe refinanced. Total PFC's to be collected will drop from the current approval level of$82,888,919 to $76,883,179 and termination date will change from 10130132 to 6130124. b. If applicable for terminal projects, 1. Prior to this project, number of ticket counters , gates _, and baggage facilities 2. Number of ticket counters gates_, and baggage facilities to be constructed or rehabilitated. 3. Net change in ticket counters_, gates _, and baggage facilities **""'FOR FAA USE a. Description adequate [ ] not adequate [ ] (indicate deficiencies below) b. If the project involves the construction of a new runway or modification of an existing runway, the requirements of Order 5200.8, with regard to runway safety areas have been met. YES[ I NO [ ]. c. For terminal projects, information regarding ticket counters, gates, and baggage facilities for construction and/or rehabilitation indicated. YES [ ] NO [ ] N/A [ ] d. Comments: 5. LEVEL OF COLLECTION: $1.00[ ] $2.00[ ] $3.00[ ] (go to 6) $4.00[ ] $4.50[x] (public agencies of medium and large hub airports go to 7, all others go to 6) 9A10 6. PROJECT JUSTIFICATION: The previously approved/as amended PFC application was for renovations and expansion of the Terminal Building. To accomplish that, three sets of bonds, 1992 GARB, 1998 GARB and the 1998 PFC, were issued. The combined annual debt service for the three issues is $2,535,018 (varies slightly each year). PFC's are currently allowed to pay debt on all three issues; however collections of approximately$1.6 million (current) leave the airport some $900,000 short. Skyrocketing utility costs at the Airport are outstripping the Airport's ability to pay current debt and utilities without causing large rates and charges increases. Such increases would reduce the Airport's competitiveness in the Southern California market and any loss of service due to increased cost would be devastating to the local economy. *****FOR FAA USE ************W*******************************WW*******W******WW****** a. Is justification adequate? YES [ ] NO [ ]. b. Comments: ********************W***************WW************************WWWW**************W*W******WW 7. SIGNIFICANT CONTRIBUTION: N/A *****FOR FAA USE WWWW***************************WWWW*WWWW*W*******W********WWW******W a. _ Air safety. Part 139 [ ] Other (explain) Certification Inspector concur. Yes [ ] No [ ] Date _ Air security. Part 107 [ ] Part 108 [ ] Other (explain) CASFO concur. Yes [ ] No [ ] Date _ Competition. Competition Plan [ ] Other (explain) Congestion. Current [ ] or Anticipated [ ] LOI [ ] FAA BCA [ ] FAA Airport Capacity Enhancement Plan [ ] Other (explain) _ Noise. 65 LDN [ ] Other (explain) Project does not qualify under "significant contribution " rules. (explain and go to 6. Project Justification - FOR FAA USE —for analysis). b. Comments: **W**************WWW*****W**********W***WW**W*W********WWWWW*WWWW********WWW******W*WW*WW** 8. PROJECT OBJECTIVE: The previously approved project was approved as a capacity enhancement project for the Airport. This amendment is requested to allow the Airport to pay all debt related to the approved project from PFC revenues. 0;// """""FOR FAA USE . .... . . .« ... . .... ..... .. . a. _ Safety, Preserve [ ] Enhance [ ] Security, Preserve [ ] Enhance [ ] _ Capacity, Preserve [ ] Enhance [ ] Furnish opportunity for enhanced competition between or among air carriers at the airport _ Mitigate noise impacts resulting from aircraft operations at the airport _ Project does not meet any PFC objectives (explain) b. Comments: 9. FOR FAA USE (Public agencies go to a. Project Eligibility: 1) Indicate project eligibility by checking the appropriate category below. [ PG Development eligible under AIP criteria (paragraph _ of Order 5100.38_ or [ ] Planning eligible under AIP criteria (paragraph — of Order 5100.38_ or PGL [ ] Terminal development as described in 49 U.S.C. 47110(d); [ ] Noise compatibility planning as described in 49 U.S.C. 47505; [ ] Noise compatibility measures eligible under 49 U.S.C. 47504. Check one of the following -project approved in an approved Part 150 noise compatibility plan [ ]; or, project included in a local study[ ]. Include Title and Date of local study: ( ] Terminal development as described in 49 U.S.C. 40117(a)(3)(C); [ ] Shell of a gate as described in 49 U.S.0 40117(a)(3)(F) (air carrier percentage of annual boardings ); or [ ] Project does not meet PFC eligibility (explain). b. Comments: 10. ESTIMATED PROJECT IMPLEMENTATION DATE (Month and Year): 5192 ESTIMATED PROJECT COMPLETION DATE (Month and Year): 11199 All phases of the project were previously completed. This amendment deals only with a PFC increase to cover the total debt on the previously completed project. *"***FOR FAA USE a. For IMPOSE AND USE or USE-ONLY project, project will begin within 2 years of 120-day approval date? YES [ ] NO [ ] b. For IMPOSE ONLY project, project will begin within 5 years of the charge effective date or approval date, whichever is sooner? YES[ ] NO [ ] c. Comments: 11. For an IMPOSE ONLY project, estimated date USE application will be submitted to the FAA (Month and Year): ..***FOR FAA a. Is the date within 3 years of the estimated charge effective date or approval date, whichever is sooner? YES [ ] NO [ ]. 94AL b. Comments: 12. LIST CARRIERS CERTIFYING AGREEMENT: 13. LIST CARRIERS CERTIFYING DISAGREEMENT: Recap of Disagreements: Public Agency Reasons for Proceeding: *****FOR FAA a. Comments: ******************************************************************************************** 14. FINANCING PLAN: PFC FUNDS: Pay-as-you-go $ N/A Bond Capital $ N/A Bond Financing & Interest $ 76,883,179. (Note: Three separate bond issues.) *** SUBTOTAL PFC FUNDS: $ 76,883,179. EXISTING AIP FUNDS: Grant# Grant Funds in Project $ Alp 3-06-0181-24 $1,722,584 — Creative Financing Grant AIP 3-06-0181-26 $3,165,730 — Terminal Ramp/Utilities/Generator *** SUBTOTAL EXISTING AIP FUNDS: $4,888,314 ANTICIPATED AIP FUNDS (List Each Year Separately): N/A Fiscal Year: Entitlement $ Discretionary $ Total $ N/A *** SUBTOTAL ANTICIPATED AIP FUNDS: $ -0- OTHER FUNDS: State Grants $ N/A Local Funds $ 543,146 Other (please specify) $ N/A *** SUBTOTAL OTHER FUNDS: $ 543,146. *** TOTAL PROJECT COST: $ 82,314,639 The following two spreadsheets demonstrate projected PFC collections, beginning in January 2002, and the pay down of the three separate bond issues. Please note that the bonds have early redemption allowances, which provides that as fast as PFC's are collected, bonds can be called out. Note that projections show actual debt retirement in 2023, the remaining PFC collection is to reimburse the Airport for debt that will be paid in years 2001 through 2008 payable from rates and charges and for administrative costs. 01i3 CITY OF PALM SPRINGS CALCULATION OF PASSENGER FACILITY CHARGES BASED ON$4.50 Enplaned Adjusted Total Cumulative Passenger % PFC Enplaned PFC PFC PFC Forecast Growth Eligible Passengers Rate Revenues Revenues 1993 427,170 870,509 870,509 1994 474,859 1,287,524 2,158,033 1995 469,662 1,149,224 3,307,257 1996 543,951 1,448,382 4,755,639 1997 560,747 1,527,494 6,283,133 1998 602,803 1,554,740 7,837,873 1999 663,083 1,600,033 9,437,906 2000 622.038 80.0% 497,630 2.92 1,453,081 10,890,987 2001 620,000 0.0% 80.0% 496,000 3.86 1,916,320 12,807,307 2002 628,258 1.3% 80.0% 502,600 4.42 2,221,492 15,028,799 2003 637.682 1.5% 80.0% 510,100 4.42 2,254,642 17,283,441 2004 653,624 2.5% 80.0% 522,900 4.42 2,311,218 19,594,659 2005 673,233 3.0% 80.0% 538,600 4.42 2,380,612 21,975,271 2006 693,430 3.0% 80.0% 554,700 4.42 2,451,774 24,427,045 2007 714,233 3.0% 80.0% 571,400 4.42 2,525,588 26,952,633 2008 735,660 3.0% 80.0% 588,500 4.42 2,601,170 29,553,803 2009 757,730 3.0% 80.0% 606,200 4.42 2,679,404 32,233,207 2010 780,462 3.0% 80.0% 624,400 4.42 2,759,848 34,993,055 2011 803,875 3.0% 80.0% 643,100 4.42 2,842,502 37,835,557 2012 819,953 2.0% 80.0% 656,000 4.42 2,899,520 40,735.077 2013 836,352 2.0% 80.0% 669,100 4.42 2,957,422 43,692,499 2014 853,079 2.0% 80.0% 682,500 4.42 3,016,650 46,709,149 2015 870,141 2.0% 80.0% 696,100 4.42 3,076,762 49,785,911 2016 878,842 1.0% 80.0% 703,100 4.42 3,107,702 52,893,613 2017 887,631 1.0% 80.0% 710,100 4.42 3,138,642 56,032,255 2018 896,507 1.0% 80.0% 717,200 4.42 3,170,024 59,202,279 2019 905,472 1.0% 80.0% 724,400 4.42 3,201,848 62,404,127 2020 914,527 1.0% 80.0% 731,600 4.42 3,233,672 65,637,799 2021 923,672 1.0% 80.0% 738,900 4.42 3,265,938 68,903,737 2022 932,909 1.0% 80.0% 746,300 4.42 3,298,646 72,202,383 2023 942,238 1.0% 80.0% 753,800 4.42 3,331,796 75,534,179 2024 951,660 1.0% 80.0% 761.300 4.42 1,349,000 76,883,179 9hly CITY OF PALM SPRINGS PASSENGER FACILITY CHARGE REVENUES APPLIED TO DEBT SERVICE (INCREASED PFC TO $4.50) 1998 PFC Bonds Apply to GARBS GARBS DS Debt Service on Special Available Debt Service on Early Remaining Payable from PFC Revenue 1998 PFC Ronde* Redemption for GARBS ** a_wue+++k+usui r_rcT Rates aflfl C'}1 pS 2001 1,916,320 (846,250) - 1,070,070 (1,070,070) - - 693,954 2002 2,221,492 (847,113) - 1,374,380 (1,374,380) - 390,542 2003 2,254,642 (847,378) - 1,407,265 (1,407,265) - - 356,979 2004 2,311,218 (846,918) - 1,464,301 (1,464,301) - - 297,413 2005 2,380,612 (845,768) - 1,534,845 (1,534,845) - - 227,359 2006 2,451,774 (848,790) - 1,602,984 (1,602,984) - - 155,997 2007 2,525,588 (845,963) - 1,679,626 (1,679,626) - - 84,103 2008 2,601,170 (847,403) - 1,753,768 (1,753,768) - - 12,341 2009 2,679,404 (847,818) - 1,831,587 (1,761,004) (70,583) - - 2010 2,759,848 (847,193) - 1,912,656 (1,763,704) (148,952) - - 2011 2,842,502 (845,818) - 1,996,685 (1,763,804) (232,881) - - 2012 2,899,520 (848,390) - 2,051,130 (1,761,186) (289,944) - - 2013 2,957,422 (849,728) - 2,107,694 (1,760,688) (347,006) - - 2014 3,016,650 (845,125) - 2,171,525 (1,767,291) (404,234) - - 2015 3,076,762 (849,497) - 2,227,265 (1,760,553) (466,712) - - 2016 3,107,702 (847,716) - 2,259,986 (1,760,775) (499,211) - - 2017 3,138,642 (844,909) (393,613) 1,900,120 (1,762,528) (137,592) - - 2018 3,170,024 (845,950) (488,642) 1,835,432 (1,760,513) (74,920) - - 2019 3,201,848 (845,394) (520,024) 1,836,430 (1,759,388) (77,043) - - 2020 3,233,672 (848,094) (551,848) 1,833,730 (1,764,013) (69,718) - - 2021 3,265,938 (849,219) (583,672) 1,833,047 (1,764,119) (68,929) - - 2022 3,298,646 (848,769) (615,938) 1,833,939 (1,759,406) (74,533) - - 2023 3.331,796 (845,963) (648,646) 1,837,188 (300,000) 1,537,188 - 2024 1,349,000 1,349,000 1,349,000 - Admin Costs @ 30,000/yr 660,000 PFC Amend#2 Cost to Prepare 7,500 Totals 2,886,188 2,886,188 * PFC Debt Service Adjusted for any Special Redemptions ** GARB Debt Service Adjusted for any Early Redemptions 9A44r `PROJECT REQUESTING PFC FUNDING LEVELS OF$4.00 AND $4.50: a. Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [X ] NO [ ] b. If the FAA determines that the project may qualify for AIP funding, the public agency would prefer that the FAA approve the amount of the local match to be collected at a $4.50 PFC level [ X] OR the entire requested amount at a $3.00 PFC level [ ]. c. Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [X ] NO [ ] N/A [ ] d. Comments. N/A *****FOR FAA a. Does the project include a proposed LOI? YES [ ] NO [ ] If YES, does the Region support? YES [ ] NO [ ]. If YES, list the schedule for implementation: [ ]. For a[ ]any proposed AIP discretionary funds, does the Region intend to support? YES NO c. For any proposed AIP funds, is the request within the planning levels for the Region's five year CIP? YES [ ] NO [ ] d. For project requesting PFC funding levels of$4.00 and $4.50: Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [ I NO [ j Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [ j NO [ I N/A [ I e. Comments. 15. BACK-UP FINANCING PLAN: Continue to operate under existing $3.00 PFC approval, raise airline rates and charges, and hope for increased non-airline revenues. *****FOR FAA a. Is the back-up financing/phasing plan viable? Yes ( ] No [ ]. b. Comments: AI(a9 ,****FOR FAA USE. . ,«. ... «« ... . « ...» .... . ... . . . . ADO/RO RECOMMENDATION: Approve [ ] Partially Approve [ ] Disapprove [ ] ADDITIONAL INFORMATION (If appropriate, include explanation of recommendation, congressional interest, pertinent background, etc.): Application Reviewed by: Name Routing Symbol Date 94/7 Palm Springs International Airport 6/28/01 Projected Cash Flow and Airline Payment Requirements 2001 2002 2003 2004 Airport Operations 8.602,099 9,250,158 9,740,975 10,263,313 Airport Debt Service 1,812,846 1,782,109 1,782,109 1,782,109 Airport Ca ital 1,262,583 1,038,500 738,O00 700,000 Total Department Expense 11,677,527 12,070,767 12,261,084 12,745,422 Special Capital Improvement 0 10,000 100,000 100,000 Maintenance&Operations 188,000 166,000 120,000 100,000 Landside Development 0 10,000 50,000 50,000 Total Other Required Reserves 188,000 186,000 270,000 250,000 TOTAL EXPENDITURES 11,865,527 12,256,767 12,531,084 12,995,422 TOTAL NON AIRLINE REVENUE 7,257,203 8,032,754 8,159,029 8,290,600 SURPLUS/DEFICIT (4,608,324) (4,224,013) (4,372,055) (4,704,822) PFC REVENUEIINTEREST 1,549,826 1,557,575 1,606,037 1,654,217 (2.92 @ 84% enplaned) PFC REVENUEIINTEREST 0 1,920,297 2,431,056 2,503,987 4.42 84%enplaned) PFC DEBT 868,214 868,214 894,037 894,037 NET PFC @ 2.92 681,612 889,361 712,000 760,180 NET PFC 4.42 1,052,083 1,537,019 1,609,950 AIRPORT RESERVES 308,266 PFC TRANSFER IN 1,222,266 250.000 92 BOND REFINANCE 500,000 AIRLINE REVENUE REQUIRED 2,396,180 2,784,652 3,660,055 3,944,642 (2.92 PFC) AIRLINE REVENUE REQUIRED NIA 2,421,930 2,835,036 3,094,872 4,42 PFC ENPLANEMENTS 631,860 635,019 654,777 674,420 COST/ENPLANEMENT 2.92PFC $3.79 $4.39 $5.59 $5.85 COST/ENPLANEMENT 4.42PFC 0 $3.81 $4.33 $4.59 Fiscal Year 2002 PFC of$3.60 represents a mid year implementation. Note: The airline revenue required in 2001 was$2.4 million,with the$4.50 PFC as demonstrated above the 2002 airline revenue required will remain at $2.4 million. 944100 /7- MEMORANDUM From the desk of. Allen F. Smoot, A.A.E., Assistant City Manager-Special Projects DATE: September 6, 2001 TO: Trisha Sanders, City Clerk SUBJECT: PFC AMENDMENT #2 TRANSMITTAL Attached, please find an original copy of Amendment #2 to the Airport's Passenger Facility Charge Program. This has now been transmitted to the FAA for their review and we anticipate a January 1, 2002 implementation date. We will forward copies of FAA approval once we receive it. Thanks. ALLEN F. SMOOT, AAE Assistant City Manager-Special Projects AFS:ps PALM SPRINGS INTERNATIONAL AIRPORT A Z-- - AMERICA'S RESORTPORT M SECOND AMENDMENT TO THE APPROVED PASSENGER FACILITY CHARGE (Amended PFC No. 91-01-C-01 PSP) O�PAIM Sp U O `C'4UF OANP SUBMITTED SEPTEMBER 7, 2001 BY AIRPORT SPONSOR COVER LETTER AMENDMENT APPLICATION AIRLINE CONSULTATION ` CERTIFICATION OF AGREEMENT/DISAGREEMENT SPONSOR APPROVAL OF PALM Sp 110 U City of Palm Springs h Office of the Assistant City Manager- Special Projects 3400 Tahquaz Canyon Way• Palm Springs,California 92262 C'q<)FO RN\P TEL:(760)318-3900 • FAX (760)318-3815 •TDD:(760)864-9527 September 6, 2001 Jaime Duran AWP-612 Supervisor, Programming Section Western Pacific Region Airports Division 15000 Aviation Blvd. Lawndale, CA 90261 RE: Palm Sprinqs International Airport Passenqer Facility Charqe Amendment#2 Dear Mr. Duran: Palm Springs International Airport herewith transmits two (2) copies of an Amendment to PFC No. 91-01-C-01-PSP. The purpose of this Amendment is to raise the collection level from $3.00 to $4.50 for the sole purpose of raising enough revenue to pay the full debt service on the three existing bond issues which were utilized to fund the Airport's previously approved PFC projects. Since the 1998 bond issues have early redemption provisions, as fast as PFC's are collected bonds can be paid down. As a result of the early redemption provisions, we are projecting that our termination date will change from the current October 30, 2032 to June 30, 2024, and that overall collection will be reduced from $82,888,919 to $76,883,179. Through the consultation process, the Airport has achieved a 100% support level from the air carriers serving the Airport and therefore requests that this Amendment be processed under 158.37(b)(1). To meet the Airport's financial needs, this Amendment was offered to the air carriers with an expected first collection date of January 1, 2002. The Airport respectfully requests whatever assistance in expediting approvals can be provided by the Federal Aviation Administration. • Post Office Box 2743 0 Palm Springs, California 92263-2743 Letter to Jaime Duran • September 6, 2001-Page Two Should you have any questions, please do not hesitate to contact me at (760) 318-3900. Si cerely, ALLEN F. SMOOT, AAE Interim Director of Aviation AFS:ps ATTACHMENT - PFC Amendment (2 copies) cc: (With two copies each of PFC Amendment) John Milligan, AWP 621 Supervisor, Standards Section FAA Western Pacific Region Airports Division 15000 Aviation Blvd. Lawndale CA 90261 Sheryl A. Scarborough, Management and Program Analyst PFC Branch, APP 530 FAA- Office of Airport Planning & Programming Airports Financial Assistance Division 800 Independence Ave., S.W. RM #613 Washington, D.C. 20591 OMB Approved 2120-0557 If PASSENGER FACILITY CHARGE (PFC) APPLICATION U.S Department of Transportation Federal Aviation Administration 1. Application Type(Check all that apply) I ' FAA U`sE ONLY I' ❑ a Impose PFC Charges l i-, Date Received PFC Number ❑ b. Use PFC Revenue ® c. Amend PFC No. 91-01-C-00-PSP �{ li PART 2. Public Agency Name,Address,and Contact Person 3. Airport(s)to Use 4. Consultation Dates Agency Name: City of Palm Springs a. Date of Written Notice to Air Carriers: Address: 3200 E.Tahquitz Canyon Way June 29,2001 Palm Springs International City,State,ZIP: Palm Springs, CA 92262 Airport(PSP) b. Date of Consultation Meeting with Air Carriers: Contact Person: Allen F.Smoot (760)318-3900) July 30, 2001 PART II S. Charges a. Airport to Impose b. Level c. Total Estimated PFC d. Proposed Effective e. Estimated Expiration Revenue by Level Date: Date: Palm Springs International Impose Airport(PSP) ❑$1.00❑ $2.00© $3.00 Existing Use$11,615,147. January 1,2002 June 30, 2024 Impose ❑$4.00 g]$4.50 Proposed Use $65,268,032. PART III 6. Attachments(Check all that Apply) Attached Submitted with Application Number Document a. ❑ Airport Capital Improvement Plan b. ❑ Project Information (Attachment B) C. ® ❑ Air Carrier Consultation Information d. ❑ ® 91-01-C-00-PSP 2/26/92 Request to Exclude Class(es)of Carriers e. ❑ ® 91-01-C-00-PSP 2/26/92 Alternative Uses/Projects f. ❑ ❑ N/A Competition Plan/Update Small Hub Exempt g. ❑ ® 91-01-C-00-PSP 2126192 ALP/Airspace/Environmental h. ❑ ❑ PART IV 7. With respect to this PFC application I hereby certify as follows: To the best of my knowledge and belief,all data in this application are true and correct; This application has been duly authorized by the governing body of the public agency; The public agency will comply with the attached assurances if the application is approved; For those projects for which approval to use PFC revenue is requested,all applicable ALP approvals,airspace determinations, and environmental reviews required by the National Environmental Policy Act have been completed. If required,the public agency has submitted a competition plan in accordance with 49 U.S.C.47106(f);and If required by 49 U.S.C.40117(d)(4),adequate provision for financing the airside needs, including runways,taxiways,aprons, and gates, has been made by the public agency. a. Typed Name of Authorized Representative b. Title c. Telephone Number (760)318-3900 Allen F.Smoot Interim Director of Aviation d. Fax Number (760)318-3815 e. Sig Atu riz epresentative f. Date ignJ -3 TF' FAA Form 6600-1 (6-00)Supersedes Previous Edition ATTACHMENT"A" Document: Five Year Capital Improvement Program Sponsor: City of Palm Springs Airport: Palm Springs International Airport Item Project Estimated Funding Funding Funding Cost Source(s) FAA PSP Year: 2002 02-1 Terminal Expansion-Holdrooms Gates 1, 2&3-Phase II$ 1,855,28o FAA 75%-PSP 25% $ 1.391,460 $ 463,820 02-2 Rehab-Reconstruct Commuter Ramp $ 1,200,000 FAA 90%-PSP 10% $ 1,080,000 $ 120,000 02-3 Security System Upgrades& Rehab $ 200,000 FAA 90%-PSP 10% $ 180,000 $ 20,000 02-4 East SIDA Access Relocation/Fence&Road Work $ 600,000 FAA 90%-PSP 10% $ 540,000 $ 60,000 02-5 Part 139 OPS Data Base& Records Management System$ 250,000 FAA 90%-PSP 10% $ 225,000 $ 25,000 02-6 Terminal Wall Covering Replacement $ 60,000 PSP 100% $ 60,000 Subtotal $ 4,165,280 $ 3,416,460 $ 748,820 Year: 2003 03-1 Expand Loop Road (Terminal Access) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-2 Volturno Access Road(Industrial Park) $ 1,980,000 FAA 90%-PSP 10% $ 1,782,000 $ 198,000 03-3 Relocate Segmented Circle&ASOS $ 297,000 FAA 90%-PSP 10% $ 267,300 $ 29,700 03A Taxiway"G Rehab $ 594,000 FAA 90%-PSP 10% $ 534,600 $ 59,400 03-5 Replace Runway Sweeper $ 200,000 FAA 90%-PSP 10% $ 180,000 $ 20,000 03-6 Phase VI Noise Mitigation (Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-7 Terminal Painting $ 100,000 PSP 100% $ 100,000 • Subtotal $ 7,171,600 $ 6,363,900,$ : 807,100 Year: 2004 04-1 Seal Coat 13L/31 R&Taxiways $ 100.000 FAA 90%-PSP 10% $ 90,000 $ 10,000 04-2 Reconstruct Air Carrier Aircraft Aprom $ 1,584,000 FAA 90%-PSP 10% $ 1,425,600 $ 158,400 04-3 T-Hangar Taxiways $ 700,000 FAA 90%-PSP 10% $ 630,000 $ 70,000 04-4 Construct High Speed Taxiway(North) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 04-5 Pahase VII Noise Mitigation(Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 04-6 Carpet Replacement $ 200,000 PSP 100% $ 200,000 Subtota/i$;__5,384,O00, $ '4,665,600 ,$ 718,400. Year: 2005 05-1 Noise Monitoring System $ 1,000,000 FAA 90%-PSP 10% $ 900,000 $ 100,000 05-2 Construct Air Carrier Ramp $ 3,000,000 FAA 90%-PSP 10% $ 2,700,000 $ 300,000 05-3 Rehab Commuter Ramp Phase II $ 500,000 FAA 90%-PSP 10% $ 450,000 $ 50,000 05-4 Carpet Replacement $ 200,000 PSP 100% $ 200,000 05-5 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal $ 4,850,000 $ 4,050,000 $ 800,000 Year: 2006 06-1 Construct High Speed Taxiway(South) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 06-2 Loading Bridges at Gates 1, 2&3 $ 2,000,000 FAA 75%-PSP 25% $ 1,500,000 $ 500,000 06-3 Air Carrier Ramp $ 1,300,000 FAA 90%-PSP 10% $ 1,170,000 $ 130,000 06-4 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal $ 4,250,000 $ 3,390,000 $ 860,000 RihM4iYfifhf�RhR ' - Total Expenditure�.� � , ,. $ 21,885,960 $3,934,320 ATTACHMENT B: PROJECT INFORMATION *****FOR FAA PFC Application number: 1. AIRPORT WHERE PROJECT IS LOCATED: Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, California 92262 Contact.Allen F. Smoot, AAE, Interim Director of Aviation 2. CHECK ONE: IMPOSE[ ] IMPOSE AND USE[X ] USE[ ] 3. PROJECT TITLE (And Public Agency Project Number, If Appropriate): Terminal Expansion Debt Service - Full Coverage 4.a. PROJECT DESCRIPTION: Increase PFC from $3 to $4.50 to cover full debt service on previously approved and constructed terminal expansion projects. No new work, only additional PFC's to cover existing debt on the • three PFC approved projects or as they maybe refinanced. Total PFC's to be collected will drop from the current approval level of $82,888,919 to $76,883,179 and termination date will change from 10130132 to 6130124, b. If applicable for terminal projects, N/A (This Amendment is only to raise the collection level on a completed project) 1. Prior to this project, number of ticket counters _, gates _, and baggage facilities 2. Number of ticket counters , gates , and baggage facilities _to be constructed or rehabilitated. 3. Net change in ticket counters _, gates _, and baggage facilities *****FOR FAA USEw « . a. Description adequate [ ] not adequate [ ] (indicate deficiencies below) b. If the project involves the construction of a new runway or modification of an existing runway, the requirements of Order 5200.8, with regard to runway safety areas have been met. YES[ ] NO [ ]. c. For terminal projects, information regarding ticket counters, gates, and baggage facilities for construction and/or rehabilitation indicated. YES [ ] NO [ ] N/A [ ] • d. Comments: Revised 10/2/00 ******************************************************************************************* • 5. LEVEL OF COLLECTION: $1.00[ ] $2.00[ ] $3.00[ ] (go to 6) $4.00[ ] $4.50[X] (public agencies of medium and large hub airports go to 7, all others go to 6) ******************************************************************************************* 6. PROJECT JUSTIFICATION: The previously approved/as amended PFC application was for renovations and expansion of the Terminal Building. To accomplish that, three sets of bonds, 1992 GARB, 1998 GARB and the 1998 PFC, were issued. The combined annual debt service for the three issues is $2,535,018 (varies slightly each year). PFC's are currently allowed to pay debt on all three issues; however, collections of approximately$1.6 million (current) leave the airport some $900,000 short. Skyrocketing utility costs at the Airport are outstripping the Airports ability to pay current debt and utilities without causing large rates and charges increases. Such increases would reduce the Airport's competitiveness in the Southern California market and any loss of service due to increased cost would be devastating to the local economy. *****FOR FAA USE ******************************************************************** a. Is justification adequate? YES [ ] NO [ ]. b. Comments: ******************************************************************************************* 7. SIGNIFICANT CONTRIBUTION: N/A (Small Hub) *****FOR FAA USE ******************************************************************** a. _ Air safety. Part 139 [ ] Other(explain) Certification Inspector concur. Yes [ ] No [ ] Date _ Air security. Part 107 [ ] Part 108 [ ] Other(explain) CASFO concur. Yes [ ] No [ ] Date _ Competition. Competition Plan [ ] Other(explain) _ Congestion. Current[ ] or Anticipated [ ] LOI [ ] FAA BCA[ ] FAA Airport Capacity Enhancement Plan [ ] Other(explain) Noise. 65 LDN [ ] Other(explain) Project does not qualify under"significant contribution " rules. (explain and go to 6. Project Justification - FOR FAA USE—for analysis). b. Comments: ******************************************************************************************* 8. PROJECT OBJECTIVE: The previously approved project was approved as a capacity • enhancement for the Airport. Many carriers chose to schedule noon hour turns to the point that adequate gates were not available. The Revised 10/2/00 • project added gates to the Airport Terminal. The Airport's gates are non-exclusive and are controlled by the Airport. This amendment is only a request to raise the collection amount from $3.00 to $4.50 to allow the Airport to pay all debt related to the approved project from PFC revenues. "****FOR FAA USE , . w . .. .... ..... a. _ Safety, Preserve [ ] Enhance [ ] _ Security, Preserve [ ] Enhance [ ] _ Capacity, Preserve [ ] Enhance [ ] _ Furnish opportunity for enhanced competition between or among air carriers at the airport _ Mitigate noise impacts resulting from aircraft operations at the airport _ Project does not meet any PFC objectives (explain) b. Comments: 9. FOR FAA USE (Public agencies go to 10) " a. Project Eligibility: 1) Indicate project eligibility by checking the appropriate category below. [ ] Development eligible under AIP criteria (paragraph_of Order 5100.38_or PGL_); [ ] Planning eligible under AIP criteria (paragraph_of Order 5100.38_or PGL [ ] Terminal development as described in 49 U.S.C. 47110(d); [ ] Noise compatibility planning as described in 49 U.S.C. 47505; • [ ] Noise compatibility measures eligible under 49 U.S.C. 47504. Check one of the following -project approved in an approved Part 150 noise compatibility plan [ ]; or, project included in a local study[ ]. Include Title and Date of local study: [ ] Terminal development as described in 49 U.S.C. 40117(a)(3)(C); [ ] Shell of a gate as described in 49 U.S.0 40117(a)(3)(F) (air carrier percentage of annual boardings ); or [ ] Project does not meet PFC eligibility (explain). b. Comments: 10. ESTIMATED PROJECT IMPLEMENTATION DATE (Month and Year): 5192 ESTIMATED PROJECT COMPLETION DATE (Month and Year): 11199 All phases of the project were previously completed. This amendment deals only with a PFC increase to cover the total debt on the previously completed project. The Airport hopes to implement the increase to $4.50 by January 1, 2002. • Revised 10/2/00 *****FOR FAA USE*******«************************************************************* • a. For IMPOSE AND USE or USE-ONLY project, project will begin within 2 years of 120-day approval date? YES [ ] NO [ ] b. For IMPOSE ONLY project, project will begin within 5 years of the charge effective date or approval date, whichever is sooner?YES[ ] NO [ ] c. Comments: ******************************************************************************************** 11. For an IMPOSE ONLY project, estimated date USE application will be submitted to the FAA (Month and Year): N/A. Project already completed. *****FOR FAA USE********************************************************************** a. Is the date within 3 years of the estimated charge effective date or approval date, whichever is sooner? YES [ ] NO [ ]. b. Comments: ******************************************************************************************** 12. LIST CARRIERS CERTIFYING AGREEMENT: SkyWest Airlines (Note: No other airline filed a certification of agreement or disagreement.) 100% approval. 13. LIST CARRIERS CERTIFYING DISAGREEMENT: None. Recap of Disagreements: Public Agency Reasons for Proceeding: *****FOR FAA USE********************************************************************** a. Comments: ******************************************************************************************** 14. FINANCING PLAN: PFC FUNDS: Pay-as-you-go $ 667,500 (Administration cost &Amendment#2 preparation cost) Bond Capital $33,915,518 Bond Financing &Interest $ 42,300,161. (Note: Three separate bond issues.) *** SUBTOTAL PFC FUNDS: $ 76,883,179. EXISTING AIP FUNDS: Grant # Grant Funds in Project $ AIP 3-06-0181-24 $1,722,584 - Creative Financing Grant • AIP 3-06-0181-26 $3,165,730- Terminal Ramp/Utilities/Generator Revised 10/2/00 • """ SUBTOTAL EXISTING AIP FUNDS: $4,888,314 ANTICIPATED AIP FUNDS (List Each Year Separately): N/A Fiscal Year: Entitlement $ Discretionary $ Total $ N/A * SUBTOTAL ANTICIPATED AIP FUNDS: $ OTHER FUNDS: State Grants $N/A Local Funds $543,146 Other (please specify) $N/A * SUBTOTAL OTHER FUNDS: $ 543,146. *** TOTAL PROJECT COST: $ 82,314,639. The following two spreadsheets demonstrate projected PFC collections (Attachment 1), beginning in January 2002, and the pay down of the three separate bond issues (Attachment 2). Please note that the 1998 bonds have early redemption allowances, which provide that as fast as PFC's are collected, bonds can be called out. Note that projections show actual debt retirement in 2023, the remaining PFC collection is to reimburse the Airport for debt that will be paid in years 2001 through 2008 from Airline rates and charges and for administrative costs. • Revised 10/2/00 ATTACHMENT 41 TO ITEM 14 CITY OF PALM SPRINGS CALCULATION OF PASSENGER FACILITY CI3ARGES • BASED ON $4.50 Enplaned Adjusted Total Cumulative Passenger % PFC Enplaned PFC PFC PFC Forecast Growth Eligible Passengers Rate Revenues Revenues 1993 427,170 870,509 870,509 1994 474,859 1,287,524 2,158,033 1995 469,662 1,149.224 3,307,257 1996 543,951 1,448,382 4,755,639 1997 560,747 1,527,494 6,283,133 1998 602,803 1,554,740 7,837,873 1999 663,083 1,600,033 9,437,906 2000 622,038 80.0% 497,630 2.92 1,453,081 10,890,987 2001 620,000 0.0% 80.0% 496,000 3 86 1,916,320 12,807,307 2002 628,258 1.3% 80.0% 502,600 4 42 2,221,492 15,028,799 2003 637,682 1,5% 80.0% 510,100 4.42 2,254,642 17,283,441 2004 653,624 2.5% 80.0% 522,900 4.42 2,311,218 19,594,659 2005 673,233 3.0% 80.0% 538,600 4.42 2,380,612 21,975,271 2006 693,430 3.0% 80.0% 554,700 4.42 2,451,774 24,427,045 2007 714,233 3.0% 80.0% 571,400 4.42 2,525,588 26,952,633 2008 735,660 3 0% 80.0% 588,500 4.42 2,601,170 29,553,803 2009 757,730 3.0% 80.0% 606,200 4.42 2,679,404 32,233,207 2010 780,462 3.0% 80.0% 624,400 4.42 2,759,848 34,993,055 2011 803,875 3.0% 80.0% 643,100 4.42 2,842,502 37,835,557 2012 819,953 2.0% 80.0% 656,000 4.42 2,899,520 40,735,077 2013 836,352 2.0% 80.0% 669,100 4.42 2,957.422 43,692,499 2014 853,079 2.0% 80.0% 682,500 4.42 3,016,650 46,709,149 2015 870,141 2.0% 80.0% 696,100 4.42 3,076,762 49,785,911 2016 878,842 1.0% 80.0% 703,100 4.42 3,107,702 52,893,613 2017 887,631 1.0% 80.0% 710,100 4.42 3,138,642 56,032,255 2018 896,507 1.0% 80.0% 717,200 4.42 3,170,024 59,202,279 2019 905,472 1.0% 80.0% 724,400 4.42 3,201,848 62,404,127 2020 914,527 1.0% 80.0% 731,600 4.42 3,233,672 65,637,799 2021 923,672 1.0% 80.0% 738,900 4A2 3,265,938 68,903,737 2022 932,909 1.0% 80.0% 746,300 4.42 3,298,646 72,202,383 2023 942,238 1.0% 80.0% 753,800 4.42 3,331,796 75,534,179 2024 951,660 1.0% 80.0% 761,300 4.42 1,349,000 76,883,179 PFC's collected @ $3. 00 $11, 615, 147 PFC's collected @ $4. 50 65,268, 032 $76,883, 179 Note: Assumes $4. 50 collection begins January 2002. • ATTACHMENT 2 TO ITEM 14 CITY OF PALM SPRINGS PASSENGER FACILITY CHARGE REVENUES APPLIED TO DEBT SERVICE (INCREASED PFC TO $4.50) • 1998 PFC Bonds Apply to GARBS GARBS DS Debt Service on Special Available Debt Service on Early Remaining Payable from PFC Revenue. 1998 PFC Bonds* Redd lion for GARBS CARBS** Redemption PECs Rates and Chas 2001 1,916,320 (846,250) - 1,070,070 (1,070,070) 693,954 2002 2,221,492 (847,113) - 1,374,380 (1,374,380) - - 390,542 2003 2,254,642 (847,378) - 1,407,265 (1,407,265) - - 356,979 2004 2,311,218 (846,918) - 1,464,301 (1,464,301) - - 297,413 2005 2,380,612 (845,768) - 1,534,845 (1,534,845) - - 227,359 2006 2,451,774 (848,790) - 1,602,984 (1,602,984) - - 155,997 2007 2,525,588 (845,963) - 1,679,626 (1,679,626) - - 84,103 2008 2,601,170 (847,403) - 1,753,768 (1,753,768) - - 12,341 2009 2,679,404 (847,818) - 1,831,587 (1,761,004) (70,583) - - 2010 2,759,848 (847,193) - 1,912,656 (1,763,704) (148,952) - - 2011 2,842,502 (845,818) - 1,996,685 (1,763,804) (232,881) - - 2012 2,899,520 (848,390) - 2,051,130 (1,761,186) (289,944) - - 2013 2,957,422 (849,728) - 2,107,694 (1,760,688) (347,006) - - 2014 3,016,650 (845,125) - 2,171,525 (1,767,291) (404,234) - - 2015 3,076,762 (849,497) - 2,227,265 (1,760,553) (466,712) - - 2016 3,107,702 (847,716) - 2,259,986 (1,760,775) (499,211) - - 2017 3,138,642 (844,909) (393,613) 1,900,120 (1,762,528) (137,592) - - 2018 3,170,024 (845,950) (488,642) 1,835,432 (1,760,513) (74,020) - - 2019 3,201,848 (845,394) (520,024) 1,836,430 (1,759,388) (77,043) - - 2020 3,233,672 (848,094) (551,848) 1,833,730 (1,764,013) (69,718) - - 2021 3,265,938 (849,219) (583,672) 1,833,047 (1,764,119) (68,929) - - 22 3,298,646 (848,769) (615,938) 1,833,939 (1,759,406) (74,533) 23 3,331,796 (845,963) (648,646) 1,837,188 (300,000) 1,537,188 - 2024 1,349,000 1,349,000 1,349,000 - Admin Costs @ 30,000/yr 660,000 PFC Amend#2 Cost to Prepare 7,500 Totals 2,886,188 2,886,188 * PFC Debt Service Adjusted for any Special Redemptions ** GARB Debt Service Adjusted for any Early Redemptions, includes debt from 1992 issue and the 1998 issue. • • ***PROJECT REQUESTING PFC FUNDING LEVELS OF $4.00 AND $4.50: a. Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [X ] NO [ ] The only costs remaining, as the project is completed and financed, is annual administration costs and debt service; neither of which is eligible for an AIP grant. b. If the FAA determines that the project may qualify for AIP funding, the public agency would prefer that the FAA approve the amount of the local match to be collected at a $4.50 PFC level [XI OR the entire requested amount at a $3.00 PFC level [ ]. c. Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [X ] NO [ ] N/A [ ] d. Comments. *****FOR FAA USE ..... , a. Does the project include a proposed LOI? YES [ ] NO [ ] If YES, does the Region support? YES [ ] NO [ ]. If YES, list the schedule for implementation: b. For any proposed AIP discretionary funds, does the Region intend to support? YES [ ] NO [ • c. For any proposed AIP funds, is the request within the planning levels for the Region's five year CIP? YES [ ] NO [ ] d. For project requesting PFC funding levels of$4.00 and $4.50: Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [ ] NO [ ] Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [ ] NO [ ] N/A [ ] e. Comments. 15. BACK-UP FINANCING PLAN: Continue to operate under existing $3.00 PFC approval, raise airline raes and charges, and hope for increased non-airline revenues. *"*`*FOR FAA USEw w« a. Is the back-up financing/phasing plan viable? Yes [ ] No [ ]. b. Comments: *`***FOR FAA • ADO/RO RECOMMENDATION: Approve [ ] Partially Approve [ ] Disapprove [ ] Revised 10/2100 • ADDITIONAL INFORMATION (If appropriate, include explanation of recommendation, congressional interest, pertinent background, etc.): Application Reviewed by: Name Routing Symbol Date • • Revised 10/2/00 AIR CARRIER CONSULTATION SECOND AMENDMENT TO THE APPROVED PASSENGER FACILITY CHARGE Palm Springs International Airport July 30, 2001 An intense effort has been undertaken to involve the air carriers serving Palm Springs International Airport in the consultation process leading to the submittal of the Second Amendment. On June 29,2001, Notices of a Consultation Meeting,to be held on July 30,2001,along with an Air Carrier Consultation Packet, (copy attached)were sent to all air carriers serving the Airport. Shown below is a listing of those air carriers notified along with a column designating whether or not registered receipts were received and a column designating whether or not written acknowledgment was received. (Copies of registered receipts and written acknowledgments attached.) Air Carrier Returned Reqistered Receipt Written Acknowledqment Mesa Airlines Yes No Alaska Airlines Yes Yes American Airlines Yes No America West Airlines Yes No United Airlines Yes No SkyWest Airlines Yes Yes • Northwest Airlines No Yes Canada 3000 Airlines Yes No Wings West Airlines Yes No Continental Airlines Yes No On July 30, 2001, at 11:00 a.m. (Local),the required air carrier consultation was held with the following airlines present (via conference call): Alaska Airlines SkyWest Airlines (A copy of the roster of attendees is attached.) During the session, a complete review of the consultation package was undertaken. An in- depth discussion of the financial implication of the proposed amendment was provided and questions were answered. At the conclusion, the airlines represented stated their unanimous support and promised written confirmation immediately. Following the meeting,summary minutes were prepared and mailed to all air carriers serving Palm Springs International Airport,whether or not they had provided the required acknowledgments. (Copy of cover letter, mailing list and minutes attached.) • AIR CARRIER CONSULTATION PACKET Second Amendment to the APPROVED PASSENGER FACILITY CHARGE Palm Springs International Airport PFC # 91-01-C-00-PSP As Amended Dated: June 29, 2001 PUBLIC AGENCY INFORMATION Agency: City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 • Airport to Use: Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, CA 92262 Responsible Official: Allen F. Smoot, AAE (760) 318-3900 AIR CARRIER CONSULTATION Date Written Notice Sent to Carriers: June 29, 2001 Date of Consultation Meeting With Carriers: July 30, 2001 NOTICE AIR CARRIER CONSULTATION PASSENGER FACILITY CHARGE -AMENDMENT#2 PALM SPRINGS INTERNATIONAL AIRPORT PALM SPRINGS, CALIFORNIA NOTICE IS HEREBY PROVIDED, as of this 29th day of June 2001,per Part 158 Federal Aviation Regulations, of the intent of the Palm Springs International Airport,which is owned and operated by the City of Palm Springs,California,to hold consultation with all air carriers and foreign air carriers serving Palm Springs International Airport concerning the increase of the Airport's Passenger Facility Charge from $3.00 to $4.50, Amendment No. 2. The use for the Airport's Passenger Facility Charge is not being changed; however, the amount is being increased to cover the full debt on all three (3) existing bond issues that fund the original Passenger Facility Charge approved projects. The level of the charge is proposed to increase from$3.00 to$4.50,with aproposed effective date of January 1,2002, and an estimated expiration date of June 30, 2024. It is estimated that the • total Passenger Facility Charge (PFC) revenues collected will equal $76,883,179. The Airport shall continue its approved practice that all Part 135 air taxi operators be exempt from the collection of the increased charge. The Part 135 air taxis known to operate at the Airport and their 1999 reported enplanements are, as follows: Aircharter Express, Inc. 1 American Jet Charter, Inc. 5 American Jet International Corporation 2 Executive Flight, Inc. (Washington) 9 Glynn Air, Inc. 4 Midamerica Jet, Inc. 2 Midwest Corporate Aviation, Inc. 4 Modesto Executive Air Charter, Inc. 7 Pacific States Aviation, Inc. 2 Witte, Albert A. 2 Total Calendar 1999 Air Taxi Enplanements: 38 Compared to the total enplanements of 634,660 for the same period, this proposed continued exempted class represents approximately.00006%of amoral enplanements. The Airport's continued request for this exemption is based on the fact that administrative costs for the Airport would far exceed the annual revenue of$168 from this class. The Palm Springs International Airport will present the proposed Amendment to the domestic and foreign air carriers serving it on July 30, 2001, at 11:00 a.m. (Local) at the Palm Springs International Airport Conference Room, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262. For the consultation meeting,a conference call opportunity will also be provided. To receive specifics on the conference call number and participant codes,please contact the Airport offices at 760/318-3800 no earlier than 48 hours prior to the meeting. Attached,please find the Air Carrier Consultation Packet concerning this proposed Amendment. Questions may be directed to Allen Smoot, (760) 318-3901. Signed: ALLEN F. SMOOT, AAE Interim Director of Aviation Dated: -TLI- Q9 Zc� • • SUMMARY OF PACKET AIR CARRIER CONSULTATION PASSENGER FACILITY CHARGE - AMENDMENT 92 The attached packet of information is provided to the air carriers serving Palm Springs hrternational Airport per Part 158 Federal Aviation Regulations for consultation purposes related to an increase in Passenger Facility Charge from $3.00 to $4.50. This packet includes: 1. Cover Page 2. Notice 3. Summary 4. FAA Form 5500 - 1 5. Attachment"A" 5-Year Capital Improvement Plan 6. Attachment"B" Project Information 7. Airport Cash Flow Projection This Amendment would raise the PFC to $4.50 to allow for the Airport to cover the full cost of debt on all three outstanding bond issues. The total collected would be reduced from $82,888,914 to $76,883,179. Due to early redemption provisions of the bond issues,the PFC term will be reduced from 10/30/32 to 6/30/24. Finally, the Airport Cash Flow Projection shows no rates and charges increase this coming year; without the Amendment, there would be an approximate $900,000 increase. OMB Approved 2120-0557 I� PASSENGER FACILITY CHARGE (PFC)APPLICATION U.S.Department of Transponation • Federal Aviation Administration 1. Application Type(Check all that apply) FAA USE ONLY ❑ a. Impose PFC Charges Date Received PFC Number ❑ bb. Use PFC Revenue Q c. Amend PFC No. 91-01-C-01-PSP C I I PART 2. Public Agency Name,Address,and Contact Person 3. Airport(s)to Use 4. Consultation Dates Agency Name: City of Palm Springs a. Date of Written Notice to Air Carriers: Address: 3200 E.Tahquitz Canyon Way June 29,2001 Palm Springs International City,State,ZIP: Palm Springs, CA 92262 Airport(PSP) b. Date of Consultation Meeting with Air Carriers: Contact Person: Allen F.Smoot (760)318-3900) July 30, 2001 PART II 5. Charges a. Airport to Impose b. Level c Total Estimated PFC d. Proposed Effective e. Estimated Expiration Revenue by Level Date: Date: Palm Springs International � Impose Airport(PSP) El$1.00❑ $2.00 D-$3.00 (see 4a Attachment B) Existing Use 82,888,919. January 1,2002 June 30,2024 ,_.,.! Impose ElL$4.00 yy4.50 (see 4a Attachment B) Proposed Use 76,883,179. • PART III 6. Attachments(Check all that Apply) Attached Submitted with Application Number Document a. ❑ Airport Capital Improvement Plan b. ❑ Project Information (Attachment B) C. ❑ ❑ Air Carrier Consultation Information d. ❑ 2-61-01-C-01-PSP Request to Exclude Class(es)of Carriers e. ❑ ❑ Alternative Uses/Projects f. ❑ ❑ Competition Plan/Update g. ❑ EK91-01-C-01-PSP ALP/Airspace/Environmental h. ❑ ❑ PART IV 7. With respect to this PFC application I hereby certify as follows: To the best of my knowledge and belief,all data in this application are true and correct; This application has been duly authorized by the governing body of the public agency; The public agency will comply with the attached assurances if the application is approved; For those projects for which approval to use PFC revenue is requested,all applicable ALP approvals,airspace determinations, and environmental reviews required by the National Environmental Policy Act have been completed. If required,the public agency has submitted a competition plan in accordance with 49 U.S.C.47106(f);and If required by 49 U.S.C.40117(d)(4), adequate provision for financing the airside needs, including runways,taxiways,aprons, and gates, has been made by the public agency. a. Typed Name of Authorized Representative b. Title c. Telephone Number (760)318-3900 Allen F. Smoot Interim Director of Aviation d. Fax Number (760)318-3815 e. Signature of Authorized Representative f. Date Signed FAA Form 5500-1 (8-00)Supersedes Previous Edition ATTACHMENT"A" Document: Five Year Capital Improvement Program • Sponsor: City of Palm Springs Airport: Palm Springs International Airport Item Project Estimated Funding Funding Funding Cost Source(s) FAA PSP Year: 2002 02-1 Terminal Expansion-Holdrooms Gates 1, 2&3-Phase II$ 1,855,280 FAA 75%-PSP 25% $ 1,391,460 $ 463,820 02-2 Rehab-Reconstruct Commuter Ramp $ 1,200,000 FAA 90%-PSP 10% $ 1,080,000 $ 120,000 02-3 Security System Upgrades& Rehab $ 200,000 FAA 90%-PSP 10% $ 180,000 $ 20,000 02-4 East SIDA Access Relocation/Fence&Road Work $ 600,000 FAA 90%-PSP 10% $ 540,000 $ 60,000 02-5 Part 139 OPS Data Base&Records Management System$ 250,000 FAA 90%-PSP 10% $ 225,000 $ 25,000 02-6 Terminal Wall Covering Replacement $ 60,000 PSP 100% $ 60,000 Subtota/,$ 4,165,280 $ 3,416,460 $ 748,820 Year: 2003 03-1 Expand Loop Road(Terminal Access) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-2 Volturno Access Road(Industrial Park) $ 1,980,000 FAA 90%-PSP 10% $ 1,782,000 $ 198,000 03-3 Relocate Segmented Circle&ASOS $ 297,000 FAA 90%-PSP 10% $ 267,300 $ 29,700 03-4 Taxiway"G" Rehab $ 594,000 FAA 90%-PSP 10% $ 534,600 $ 59,400 03-5 Replace Runway Sweeper $ 200,000 FAA 90%-PSP 10% $ 180,000 $ 20,000 03-6 Phase VI Noise Mitigation (Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 03-7 Terminal Painting $ 100,000 PSP 100% $ 100,000 • Subtotal $ 7,171,000 '$ 61363,906 $ 807,106 Year: 2004 04-1 Seal Coat 13L/31 R&Taxiways $ 100,000 FAA 90%-PSP 10% $ 90,000 $ 10,000 04-2 Reconstruct Air Carrier Aircraft Aprom $ 1,584,000 FAA 90%-PSP 10% $ 1,425,600 $ 158,400 04-3 T-Hangar Taxiways $ 700,000 FAA 90%-PSP 10% $ 630,000 $ 70,000 04-4 Construct High Speed Taxiway (North) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 04-5 Pahase VII Noise Mitigation(Insulation) $ 2,000,000 FAA 90%-PSP 10% $ 1,800,000 $ 200,000 04-6 Carpet Replacement $ 200,000 PSP 100% $ 200,000 Subtotal $ :5,384,000 $ 4,665,600 $ 718,400 Year: 2005 05-1 Noise Monitoring System $ 1,000,000 FAA 90%-PSP 10% $ 900,000 $ 100,000 05-2 Construct Air Carrier Ramp $ 3,000,000 FAA 90%-PSP 10% $ 2,700,000 $ 300,000 05-3 Rehab Commuter Ramp Phase II $ 500.000 FAA 90%-PSP 10% $ 450,000 $ 50,000 05-4 Carpet Replacement $ 200,000 PSP 100% $ 200,000 05-5 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal $ 4,850,000 $ 4,o50,o0U $. 806,060 Year: 2006 06-1 Construct High Speed Taxiway (South) $ 800,000 FAA 90%-PSP 10% $ 720,000 $ 80,000 06-2 Loading Bridges at Gates 1, 2&3 $ 2,000,000 FAA 75%-PSP 25% $ 1,500,000 $ 500,000 06-3 Air Carrier Ramp $ 1,300,000 FAA 90%-PSP 10% $ 1,170,000 $ 130,000 06-4 Terminal Furniture Replacement $ 150,000 PSP 100% $ 150,000 Subtotal $ 4,250,000 .$ 3,390,000 $ 860,000 Total Expenditure $ 21',885,960 $1,934,320 . ATTACHMENT B: PROJECT INFORMATION *****FOR FAA PFC Application number: 1. AIRPORT WHERE PROJECT IS LOCATED: Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, California 92262 Contact: Allen F. Smoot, AAE, Assistant City Manager— Special Projects 2. CHECK ONE: IMPOSE[ ] IMPOSE AND USE [X] USE[ ] 3. PROJECT TITLE (And Public Agency Project Number, If Appropriate): Terminal Expansion Debt Service— Full Coverage 4.a. PROJECT DESCRIPTION: Increase PFC from $3 to $4.50 to cover full debt service on previously approved and constructed terminal expansion projects. No new work, only additional PFC's to cover existing debt on the three PFC approved projects or as they may be refinanced. Total PFC's to be collected will drop from the current approval level of$82,888,919 to $76,883,179 and termination . date will change from 10130132 to 6130124. b. If applicable for terminal projects, 1. Prior to this project, number of ticket counters , gates _, and baggage facilities 2. Number of ticket counters _, gates _, and baggage facilities to be constructed or rehabilitated. 3. Net change in ticket counters _, gates , and baggage facilities **"**FOR FAA USE . ..... . a. Description adequate [ ] not adequate [ ] (indicate deficiencies below) b. If the project involves the construction of a new runway or modification of an existing runway, the requirements of Order 5200.8, with regard to runway safety areas have been met. YES[ ] NO [ ]. c. For terminal projects, information regarding ticket counters, gates, and baggage facilities for construction and/or rehabilitation indicated. YES [ ] NO [ ] N/A [ ] d. Comments: 5. LEVEL OF COLLECTION: $1.00[ ] $2.00[ ] $3.00[ ] (go to 6) $4.00[ ] $4.50[x] (public agencies of medium and large hub airports go to 7, all others go to 6) • *******WWWW************W*W**********WWWWW*********************W**WW**********W*********WWWW . 6. PROJECT JUSTIFICATION: The previously approved/as amended PFC application was for renovations and expansion of the Terminal Building. To accomplish that, three sets of bonds, 1992 GARB, 1998 GARB and the 1998 PFC, were issued. The combined annual debt service for the three issues is $2,535,018 (varies slightly each year). PFC's are currently allowed to pay debt on all three issues; however collections of approximately$1.6 million (current) leave the airport some $900,000 short. Skyrocketing utility costs at the Airport are outstripping the Airport's ability to pay current debt and utilities without causing large rates and charges increases. Such increases would reduce the Airport's competitiveness in the Southern California market and any loss of service due to increased cost would be devastating to the local economy. *****FOR FAA USE ****WWWW*WWWWW**********WWWWWWWWW***W***********WW*********WW******* a. Is justification adequate? YES [ ] NO [ ]. b. Comments: *******WWW***************WWWWWWWW**W*W*****WW***W**WWWWWW***************W**********W******* 7. SIGNIFICANT CONTRIBUTION: N/A *****FOR FAA USE *******************WWWW********W*******W*WWW WWWW********WWWWW******* • a. _ Air safety. Part 139 [ ] Other (explain) Certification Inspector concur. Yes [ ] No [ ] Date _ Air security. Part 107 [ ] Part 108 [ ] Other (explain) CASFO concur. Yes [ ] No [ ] Date Competition. Competition Plan [ ] Other (explain) Congestion. Current [ ] or Anticipated [ ] LOI [ ] FAA BCA [ ] FAA Airport Capacity Enhancement Plan [ ] Other (explain) _ Noise. 65 LDN [ ] Other (explain) Project does not qualify under "significant contribution " rules. (explain and go to 6. Project Justification - FOR FAA USE —for analysis). b. Comments: ******W*WW**************************W*W***W********************WWW**W**************WWW***** 8. PROJECT OBJECTIVE: The previously approved project was approved as a capacity enhancement project for the Airport. This amendment is requested to allow the Airport to pay all debt related to the approved project from PFC revenues. • *****FOR FAA USE . . .. .... ..... • a. _ Safety, Preserve [ ] Enhance [ ] Security, Preserve [ ] Enhance [ ] _ Capacity, Preserve [ ] Enhance [ ] Furnish opportunity for enhanced competition between or among air carriers at the airport Mitigate noise impacts resulting from aircraft operations at the airport _ Project does not meet any PFC objectives (explain) b. Comments: 9. FOR FAA USE (Public agencies go to a. Project Eligibility: 1) Indicate project eligibility by checking the appropriate category below. [ ] Development eligible under AIP criteria (paragraph _of Order 5100.38_ or PGL ); [ ] Planning eligible under AIP criteria (paragraph of Order 5100.38_ or PGL [ ] Terminal development as described in 49 U.S.C. 47110(d); [ ] Noise compatibility planning as described in 49 U.S.C. 47505; [ ] Noise compatibility measures eligible under 49 U.S.C. 47504. Check one of the following - project approved in an approved Part 150 noise compatibility plan [ ]; or, project included in a local study[ ]. Include Title and Date of local study: [ ] Terminal development as described in 49 U.S.C. 40117(a)(3)(C); • ( ] Shell of a gate as described in 49 U.S.0 40117(a)(3)(F) (air carrier percentage of annual boardings ); or [ ] Project does not meet PFC eligibility (explain). b. Comments: 10. ESTIMATED PROJECT IMPLEMENTATION DATE (Month and Year): 5192 ESTIMATED PROJECT COMPLETION DATE (Month and Year): 11/99 All phases of the project were previously completed. This amendment deals only with a PFC increase to cover the total debt on the previously completed project. *****FOR FAA a. For IMPOSE AND USE or USE-ONLY project, project will begin within 2 years of 120-day approval date? YES [ ] NO [ ] b. For IMPOSE ONLY project, project will begin within 5 years of the charge effective date or approval date, whichever is sooner? YES[ ] NO [ ] c. Comments: 11. For an IMPOSE ONLY project, estimated date USE application will be submitted to the FAA (Month and Year): `***`FOR FAA USE" " ... .. ... .. ... a. Is the date within 3 years of the estimated charge effective date or approval date, whichever is sooner? YES [ ] NO [ ]. • b. Comments: 12. LIST CARRIERS CERTIFYING AGREEMENT: 13. LIST CARRIERS CERTIFYING DISAGREEMENT: Recap of Disagreements: Public Agency Reasons for Proceeding: *****FOR FAA a. Comments: 14. FINANCING PLAN: PFC FUNDS: Pay-as-you-go $ N/A Bond Capital $ N/A Bond Financing & Interest $ 76,883,179. (Note: Three separate bond issues.) *** SUBTOTAL PFC FUNDS: $ 76,883,179. EXISTING AIP FUNDS: Grant# Grant Funds in Project $ AIP 3-06-0181-24 $1,722,584 — Creative Financing Grant AIP 3-06-0181-26 $3,165,730 — Terminal Ramp/Utilities/Generator *** SUBTOTAL EXISTING AIP FUNDS: $4,888,314 • ANTICIPATED AIP FUNDS (List Each Year Separately): N/A Fiscal Year: Entitlement $ Discretionary $ Total $ N/A *** SUBTOTAL ANTICIPATED AIP FUNDS: $ -0- OTHER FUNDS: State Grants $ N/A Local Funds $ 543,146 Other (please specify) $ N/A *** SUBTOTAL OTHER FUNDS: $ 543,146. *** TOTAL PROJECT COST: $ 82,314,639 The following two spreadsheets demonstrate projected PFC collections, beginning in January 2002, and the pay down of the three separate bond issues. Please note that the bonds have early redemption allowances, which provides that as fast as PFC's are collected, bonds can be called out. Note that projections show actual debt retirement in 2023, the remaining PFC collection is to reimburse the Airport for debt that will be paid in years 2001 through 2008 payable from rates and charges and for administrative costs. CITY OF PALM SPRINGS CALCULATION OF PASSENGER FACILITY CHARGES BASED ON $4.50 • Enplaned Adjusted Total Cumulative Passenger % PFC Enplaned PFC PFC PFC Forecast Growth Eligible Passengers Rate Revenues Revenues 1993 427,170 870,509 870,509 1994 474,859 1,287,524 2,158,033 1995 469,662 1,149,224 3,307,257 1996 543,951 1,448,382 4,755,639 1997 560,747 1,527,494 6,283,133 1998 602,803 1,554,740 7,837,873 1999 663,083 1,600,033 9,437,906 2000 622,038 80.0% 497,630 2.92 1,453,081 10,890,987 2001 620,000 0.0% 80.0% 496,000 3.86 1,916,320 12,807,307 2002 628,258 1.3% 80.0% 502,600 4.42 2,221,492 15,028,799 2003 637,682 1.5% 80.0% 510,100 4.42 2,254,642 17,283,441 2004 653,624 2.5% 80.0% 522,900 4.42 2,311,218 19,594,659 2005 673,233 3.0% 80.0% 538,600 4.42 2,380,612 21,975,271 2006 693,430 3.0% 80.0% 554,700 4.42 2,451,774 24,427,045 2007 714,233 3.0% 80.0% 571,400 4.42 2,525,588 26,952,633 2008 735,660 3.0% 80.0% 588,500 4.42 2,601,170 29,553,803 2009 757,730 3.0% 80.0% 606,200 4.42 2,679,404 32,233,207 2010 780,462 3.0% 80.0% 624,400 4.42 2,759,848 34,993,055 2011 803,875 3.0% 80.0% 643,100 4.42 2,842,502 37,835,557 2012 819,953 2.0% 80.0% 656,000 4.42 2,899,520 40,735,077 2013 836,352 2.0% 80.0% 669,100 4.42 2,957,422 43,692,499 2014 853,079 2.0% 80.0% 682,500 4.42 3,016,650 46,709,149 2015 870,141 2.0% 80.0% 696,100 4.42 3,076,762 49,785,911 2016 878,842 1.0% 80.0% 703,100 4.42 3,107,702 52,893,613 2017 887,631 1.0% 80.0% 710,100 4.42 3,138,642 56,032,255 2018 896,507 1.0% 80.0% 717,200 4.42 3,170,024 59,202,279 2019 905,472 1.0% 80.0% 724,400 4.42 3,201,848 62,404,127 2020 914,527 1.0% 80.0% 731,600 4.42 3,233,672 65,637,799 2021 923,672 1.0% 80.0% 738,900 4.42 3,265,938 68,903,737 2022 932,909 1.0% 80.0% 746,300 4.42 3,298,646 72,202,383 2023 942,238 1.0% 80.0% 753,800 4.42 3,331,796 75,534,179 2024 951,660 1.0% 80.0% 761,300 4.42 1,349,000 76,883,179 • CITY OF PALM SPRINGS PASSENGER FACILITY CHARGE REVENUES APPLIED TO DEBT SERVICE (INCREASED PFC TO $4.50) • 1998 PFC Bonds Apply to GARBS GARBS DS Debt Service on Special Available Debt Service on Early Remaining Payable from PFC Revenue 1998 PFC Bonds* Redemption for GARBS GARBS** Redemption FECa Rates and Chgs 2001 1,916,320 (846,250) - 1,070,070 (1,070,070) - - 693,954 2002 2,221,492 (847,113) - 1,374,380 (1,374,380) - - 390,542 2003 2,254,642 (847,378) - 1,407,265 (1,407,265) - - 356,979 2004 2,311,218 (846,918) - 1,464,301 (1,464,301) - - 297,413 2005 2,380,612 (845,768) - 1,534,845 (1,534,845) - - 227,359 2006 2,451,774 (848,790) - 1,602,984 (1,602,984) - - 155,997 2007 2,525,588 (845,963) - 1,679,626 (1,679,626) - - 84,103 2008 2,601,170 (847,403) - 1,753,768 (1,753,768) - - 12.341 2009 2,679,404 (847,818) - 1,831,587 (1,761,004) (70,583) - - 2010 2,759,848 (847,193) - 1,912,656 (1,763,704) (148,952) - - 2011 2,842,502 (845,818) - 1,996,685 (1,763,804) (232,881) - - 2012 2,899,520 (848,390) - 2,051,130 (1,761,186) (289,944) - - 2013 2,957,422 (849,728) - 2,107,694 (1,760,688) (347,006) - - 2014 3,016,650 (845,125) - 2,171,525 (1,767,291) (404,234) - - 2015 3,076,762 (849,497) - 2,227,265 (1,760,553) (466,712) - - 2016 3,107,702 (847,716) - 2,259,986 (1,760,775) (499,211) - - 2017 3,138,642 (844,909) (393,613) 1,900,120 (1,762,528) (137,592) - - 2018 3,170,024 (845,950) (488,642) 1,835,432 (1,760,513) (74,920) - - 2019 3,201,848 (845,394) (520,024) 1,836,430 (1,759,388) (77,043) - - 2020 3,233,672 (848,094) (551,848) 1,833,730 (1,764,013) (69,718) - - 2021 3,265,938 (849,219) (583,672) 1,833,047 (1,764,119) (68,929) - - 2 3,298,646 (848,769) (615,938) 1,833,939 (1,759,406) (74,533) 23 3,331,796 (845,963) (648,646) 1,837,188 (300,000) 1,537,188 - 2024 1,349,000 1,349,000 1,349,000 - Admin Costs @ 30,000/yr 660,000 PFC Amend#2 Cost to Prepare 7,500 Totals 2,886,188 2,886,188 * PFC Debt Service Adjusted for any Special Redemptions ** GARB Debt Service Adjusted for any Early Redemptions ***PROJECT REQUESTING PFC FUNDING LEVELS OF $4.00 AND $4.50: • a. Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [X ] NO [ ] b. If the FAA determines that the project may qualify for AIP funding, the public agency would prefer that the FAA approve the amount of the local match to be collected at a $4.50 PFC level [ X] OR the entire requested amount at a $3.00 PFC level [ ]. c. Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [X ] NO [ ] N/A [ ] d. Comments. N/A *****FOR FAA USE*WWWWWWWWWWWWWW***WWWWWWW**WWWWW*****WW*WW*************************WW* a. Does the project include a proposed LOI? YES [ ] NO [ ] If YES, does the Region support? YES [ ] NO [ ]. If YES, list the schedule for implementation: b. For any proposed AIP discretionary funds, does the Region intend to support? YES [ ] NO [ ] c. For any proposed AIP funds, is the request within the planning levels for the Region's five year CIP? YES [ ] NO [ ] d. For project requesting PFC funding levels of$4.00 and $4.50: Project costs cannot be paid for from funds reasonably expected to be available through AIP funding. YES [ I NO [ ] Terminal and surface transportation projects. The public agency has made adequate provision for financing the airside needs of the airport, including runways, taxiways, aprons, and aircraft gates. YES [ ] NO [ I N/A [ ] e. Comments. 15. BACK-UP FINANCING PLAN: Continue to operate under existing$3.00 PFC approval, raise airline rates and charges, and hope for increased non-airline revenues. *****FOR FAA USE*******************************************WWW************************ a. Is the back-up financing/phasing plan viable? Yes [ ] No [ ]. b. Comments: *************************W******WWW********WWW*****WW******WWWW******WWWW***W*****WWWWWWWW** *"***FOR FAA USE**** .... « . . . .... . ADO/RO RECOMMENDATION: Approve [ ] Partially Approve [ ] Disapprove [ ] ADDITIONAL INFORMATION (If appropriate, include explanation of recommendation, congressional interest, pertinent background, etc.): Application Reviewed by: Name Routing Symbol Date • AGENDA AIR CARRIER CONSULTATION MEETING Palm Springs International Airport July 30,2001 I. INTRODUCTIONS IL AMENDMENT#2 to PPC ($3.00 to $4.50) *See Air Carrier Consultation Packet previously sent to all carriers. III. OTHER • • Palm Springs International Airport 6/28/01 • Projected Cash Flow and Airline Payment Requirements 2001 2002 2003 2004 Airport Operations 8,602,099 9,250,158 9,740,975 10,263,313 Airport Debt Service 1,812,846 1,782,109 1,782,109 1,782,109 Airport Capital 1,262,583 1,033,500 738,000 700,000 Total Department Expense 11,677,527 12,070,767 12,261,084 12,745,422 Special Capital Improvement 0 10,000 100,000 100,000 Maintenance&Operations 188,000 166,000 120,000 100,000 Landside Development 0 10,000 50,000 50,000 Total Other Required Reserves 183,000 186,000 270,000 250,000 TOTAL EXPENDITURES 11,865,527 12,256,767 12,531,084 12,995,422 TOTAL NON AIRLINE REVENUE 7,257,203 8,032,754 8,159,029 8,290,600 SURPLUS/DEFICIT (4,608,324) (4,224,013) (4,372,055) (4,704,822) PFC REVENUE/INTEREST 1,549,826 1,557,575 1,606,037 1,654,217 (2.92 @ 84%enplaned) PFC REVENUE/INTEREST 0 1,920,297 2,431,056 2,503,987 • (4.42 @84% enplaned) PFC DEBT 868,214 868,214 894,037 894,037 NET PFC @ 2.92 681,612 689,361 712,000 760,180 NET PFC @4.42 - 1,052,083 1,537,019 1,609,950 AIRPORT RESERVES 308,266 PFC TRANSFER IN 1,222,266 250,000 92 BOND REFINANCE 500,000 AIRLINE REVENUE REQUIRED 2,396,180 2,784,652 3,660,055 3,944,642 (2.92 PFC) AIRLINE REVENUE REQUIRED NIA 2,421,930 2,835,036 3,094,872 (4.42 PFC) ENPLANEMENTS 631,860 635,019 654,777 674,420 COST/ENPLANEMENT 2.92PFC $3.79 $4.39 $5.59 $5.85 COST/ENPLANEMENT 4.42PFC 0 $3.81 $4.33 $4.59 Fiscal Year 2002 PFC of$3 60 represents a mid year implementation. Note: The airline revenue required in 2001 was$2,4 million,with the$4.50 PFC as demonstrated above the 2002 airline revenue required will remain at $2.4 million. i SECTIONZENDER:COMPLETE THIS SEC77ON COMPLETE THIS . . ■ Complete items 1,2, and 3 Also complete A. Received y( ease Print ClearlvJ.. d of DIIty itenMPLETE THIS SECTION ON DELIVERY rrCfil Restricted Delivery is desired. 1 hh�''( -I I T C¢molera'terns 1,2, and 3.Also complete A.A" ENDER:COMPLETE THIS SECTION •Recerved}y( lease Print C7�at Py�gate 4tehf ■ Print your name and address on the reverse v v v v /.L item 4 if Restricted Delivery is desired. C. Signature �% �� r q ■ Print your name and address on the reverse �d/I� I '�J so that we can return the card to you. r)\ �-bn{ C. Signat e w ■ Attach this card to the back of the mailpiece, X `- �`F 9 _ so that we can return the card to you. /T ^'1� Q Addressee ■ Attach this card to the back of the mail iece, �f C' •�' 11�� or on the front rf space permits. //!,/f - P )(//fir/ D. Is delivery address different from m-1?--Cl Xes or on the front if space permits. �/�n� ,�}! ``_�TAddrd's_ 1. Article Addressed to. If YES,enter delivery address low ❑ No D. I delivery address di e nt fromi m.1'�;�O,Yes / 1. Article Addressed to- - _ �l/� If YES,enter delivery address blow - Cl No y. / �,P. /114/149Q.2 - C've d � )—K-- J/s% /"n"�""'� " 3. Service Type Certified Mail ❑ Express Mail ����Y2 �J a�� 3. Service Type ILJ UY Z z ❑ Registered El Return Receipt for Merchandise (/ 0 Cetifed Mail ❑ Express Mail ❑ Insured Mail ❑ C.O.D. ❑ Registered ❑ Return Receipt for Merchant 4. Restricted Delivery?(Extra Fee) El yes ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery?(Extra Fee) ❑ Yes 2. Article Number(Copy Iro service label) �U;)/ 03(0 000� i�36 363 2. Article Number(Copy from service label)_ PS Form 3811,July 1999 Domestic Return Receipt 102595-00-M-0952 D..36� /�Dr� 1�9 36 36? S PS Form 3811,July 1999 Domestic Return Receipt 102595-00-14-0E 'ENDER:COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY SENDER:COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY Compic===:2ms 1,2, and 3.Also complete A. Received by(Please Print C y) B. t of Delivery ■ Complete items 1,2,and S.Also complete AUW Cc8 'nt Clearly) B. Date of Deliv item 4 if Restricted Delivery is desired. Item 4 if Restricted Delivery is desired. r Print your name and address on the reverse 0. ■ Print your name and address on the reverse so that we can return the card to you. X Si n so that we can return the card to you. C Si 6e;�.i=s✓�=Q- ❑Agent ■ Attach this card to the back of the mail ❑Agent 9 I Attach this card to the back of the mailpiece, piece, � X g ❑Addressee ❑Adores or on the front rf space permits. G2�,� or on the front if space permits. D. Is delivery address different from item 1? ❑ Yes - D. Is delivery address different from item 1? El yes Article.Addressed to: cK�L ��/Q/!,{� 1. Article Addressed to: /qddress� If YES,enter delivery address below. ❑ No � � � ///J If YES,enter delivery address below: ❑ No L CJQ 27 L!J! /.LLS �CJC/.r rT ,�1 3 Service Type J .J�JSlm�yc.� , � lU� 3. Service Type of (� Certified Mail ❑ Express Mail m D 5 `� XCertfied Mail ❑ Express Mail ❑ Registered ❑ Return Receipt for Merchandise �D ii !/9D / / ,/ ^/ C� ❑ Registered ❑ Return Receipt for Merchand ❑ Insured Mail ❑ C.O D. C T a r� /� *1:5 ❑ Insured Mail ❑ C O D 4. Restricted Delivery?(Extra Fee) ❑Yes 4 Restricted Delivery?(Extra Fee) ❑Yes ? Article Number(Copy from service label) 2. Art'b le Number(Copy from service label) 700 / o36a Door /-136 3oW oo/ p3b0 Dao,� 1c;?36 3DWo DS Form 3811,July 1999 Domestic Return Receipt 102595-00-M-0952 PS Form 3811,July 1999 Domestic Return Receipt 102595-00-M-09 SENDER' sER:COMPLETE THIS.SECTIONCOMPLETE ON DELIVERY •Complet tams 1 and/or 2 for additional servicas. I also wish to receive the M e a Items 3,4a,and 4b. - following Services(for an Complete itegms 1, 2, and 3.Also complete A Received by(Please Print Clearly) B. Date of Delivery I 4 aPrint your name and address on the reverse of this form so that we can return this antra f9a): [efn estncted Delivery is desired. E card to you. a crint your name and address on the reverse ` Altramch this forth to the front of the mailpiece,or on the back If space does not 1, ❑ Addressea's Address 5o that we can return the card to you. C ignature ❑Agent Y awdte-Return Receipt Requestad'on the mallpiece belowthe article number. 2, ❑ Restricted Delivery Attach this card to the back of the mailpiece, . .� aThe Return Recalpt will showto whom the article was delivered and the date or on the front if space permits. ❑Addressee ii a delivered. Consult postmaster for fee. D. IS�.rr{a cry d r sodifferent from item 1? ❑Yes G Article Addressed to, II YEtire=EUrzLss below: ❑ No 3.Article Addressed to:l 4a.Article Number �/ t eU / /hL E Ike 1�d f r� pPopQe�/Q S 4b.Service Type 3UE3 f u ❑ Registered 19 Certified ,4/ss�� die ir�Es U) ❑ Express Mall ❑ Insured LU 71 4 S�� I Qc 19304 1 .v e/1,A�io�1 ❑ Return Receipt for Merchandise El COD Service Type �Q �E� /) Q'8/6 g ZCertified Mail ElExpress Mail Q 7r ./j. 7.Dais Of DBIIv�ry�UU� ❑ Registered ❑ Return Receipt for Merchandise Z `\��� il J /7 ❑ Insured Mail ❑C.O.D. 1 5.Received Sy, (Print Name 'AI ! 8.Addresse'Address(Only if requested 4. Restricted Delivery.'(Extra Fee) ❑Yes SNIAVRt/6 y y Iy and is aid (I g 6.Signature:(Addressee or Agent) Article Number(Copy from service label) p v -, )oo/ 03�� 000a /�3h 3a 6� a A 1 Form 3811,July 1999 Domestic Return Receipt 102595-00-M-0052 PS Form 3811, December 1994 1025ese7-8-0179 bomestie Return Receipt DER:COMPLETE THIS COMPLETE THIS SEC77ON ON DELIVERY SENDER:COMPLETE THIS sEcTioN COMPLETE THIS SEC77ON ON DELIVERYSECTION I Complete items 1,2,and 3.Also complete A. Rec rve b (Please n t CI rl B. D tg of rve • CoTInrifewf ems 1,2,and 3.Also complete A. Received by(Please Pont Cie B. Date of Delrvei �T', /� item 4 if Restricted Delivery is desired. ,i Restncted Delivery is desired. S y C � y) Ki `J� ry LAi RESE HALE-, Print your name and address on the reverse Print your name and address on the reverse C. Signature so that we can return the card to you. C. Signatu� so that we can return the card to you. `0. ❑Agent Attach this card to the back of the mall piece, X�-o ant ■ Attach this card to the back of the mailpiece, X , � '&, ----- 9 P X ❑Address or on the front if space permits. dresses or on the front if space permits. D. Is delivery address di o 1? s 1. Article Addressed to: D Is delivery address different from item 17 El Yes Article Addressed to: If YES,enter deli If YES,enter delivery address below ❑ No ,� �iti�s GUo �/I7% Fi95 e. 3 4,M2/0 ��� 112-01 9p(�G �� ��� � 3. Service Type 3. Service Type 9 I}p Certified Mad ❑ Express Mail (%I Certified Mail ✓7 jn'4��01 ❑ Registered ❑ Return Receipt for Merchandise ❑ Registered ❑ Return Receipt for Merchandis / ❑ Insured Mail ❑ C.O.D ❑ Insured Mail ❑ COD. 4 Restricted Delivery?(Extra Fee) ❑ Yes 4. Restricted Delivery?(Extra Fee) ❑Yes 2.'gArticI ;Number(Copy from service label q)12 Number(Copy from service label) � rf/ v 36 0 0©� �17�3 b 0 2 boo/ m36a Ooma /a3� 3006 �Farm 3811,July 1999 Domestic Return Receipt 102595-00-M-0952 PS Form 3811,July 1999 Domestic Return Receipt 102595-0o-M 095{ SENDER: I also wish to receive the . me Csdd n^^+e 1 and/or 2 for additional services. e Complete items 3,4a,and 41b. following services(for an •Print your name and address on the reverse of this torn so that we can return this extra fee): i card to you. •Attach this form to the front of the mailpiece,or on the back if space does not 1. ❑ Addressee's Address ? permit. y •Wdte'Refum Receipt Requested'on the madpisce below the article number. Q, ❑ Restricted Delivery N •The Return Receipt will show to whom the article was delivered and the data c delivered. Consult postmaster for fee. i 3.A/rtcle Addressed to w Article Number eo—L /a 363ogy 4b.Service Type � i f�.P /O//,g/ ❑ Registered Certified rn ❑ Express Mail ❑ Insured 5 ❑ Return Receipt for Merchandise ❑ COD w DD 7. Date of Delivery �� o � �i)y� s ( 9 Jl1L 0 3 0 i 5.Received By:(Print Name) 8.Addressee's Address(Only If requested and fee is paid) t c r g 6.Sign e: (Address a or a t) s X PS Form 3811, December 1 a 1025e5-97-B-017e Domestic Return Receipt NORTHWEST AIRLINES. DeparmientNumber A1135 Northwest Airlines, Inc. 5101 Northwest Drive St. Paul MN 55111-3034 www.nwa.com July 26, 2001 Mr. Allen F. Smoot, A.A.E. Interim Director of Aviation City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Dear Allen: Pursuant to 14 CFR §158.23 (c) (1), Northwest Airlines, Inc. acknowledges receipt of the notice to amend a Passenger Facility Charge (PFC) provided by the Palm Springs International Airport in a letter dated July 29, 2001 pursuant to 14 CFR §158.23 (a). This acknowledgement is provided • pursuant to the PFC regulation and shall not constitute agreement with any proposed project. This acknowledgment is also provided without prejudice to any position that Northwest Airlines, Inc. may take in the future relative to the appropriateness of the proposed projects. I will not be able to attend the meeting scheduled July 30, 2001 due to another commitment. Please forward the project and meeting handouts to my attention at your earliest convenience. Sincerely, Dawn M. Hughes Regional Director/Airport Affairs 612-726-3751 FAX: 612-727-6041 dawn.hughes@nwa.com cc: DonMinnis/ATA RECEIVED DMH/Ikd JUL 9 0 2001 BY--.DEPT. OF AVIATION 3°¢LD�f� rvonuiwcs� July 11, 2001 Certified Mail P 112 169 270 Mr. Allen F. Smoot, AAE Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mr. Smoot: This is formal acknowledgment that Alaska Airlines has received your notice dated June 29, 2001 as required by 14 CFR.158.23 stating your intent to increase Passenger Facility Charges at Palm Springs International Airport. Alaska will plan to attend the meeting scheduled for July 30, 2001 to discuss the use of Passenger Facility Charges at Palm Springs International Airport. • Thank you. Sincerely, ALASKA AIRLINES, INC. Clifford T. Argue Staff Vice President Properties and Facilities cc Dennis Olson, Director Properties JUL, 1 9,20�1 B O X 6 8 9 0 0 S E A T T L E, W A 9 8 1 6 8 - 0 9 0 0 ,' 2 0 6 . 4 3 3 - 3 2 0 0 SkAvest i\ 1 11 L 1 N F 5 • July 9, 2001 y ey. JUL 1 �2oor Nh-. Allen F. Smoot AAE r Interim Director of Aviation vip tC�! Patin Springs International Airport 3400 E. Tahgrutz Canyon Way Patin Springs, CA. 92262 RE: PFC Consultation Meeting Dear Mr. Smoot: • Pursuant to 14 CFR Part 158 SkyWest Airlines hereby acknowledges receipt of the notice of intent, dated June 29, 2001, to amend PFC# 91-01-C-00-PSP as previously amended. The meeting is scheduled for July 30, 2001 at 11:00 a.m. A representative from SkyWest Airlines will be in attendance. inter , r. Steven F. Dwiggins Manager Airport Affairs 444 Soitlh R?vc? Rond SI Gcoige, Mali 84790 435.634.3000 Fax. 435 634.3505 www sl ywesl coil? ATTENDEES AIR CARRIER CONSULTATION MEETING PALM SPRINGS INTERNATIONAL AIRPORT 11:00 A.M. - JULY 30, 2001 NAME COMPANY PHONE FAX "5 5 5k�w�3� \j c.0 ws k-a '\j �- (j `�J.TV1 (.��Y✓_I'r ['( f lt��' J! .7 JC.(.r Note to file: Same letter with separ addresses mailed to each person on attached list. OF W�S'O,P i city of Palm Springs Office of the Assistant City Manager - Special Projects °..,,,, �� � iAOU Tahgwv Canynn Way, Pulm Spnnhti,flJdurni.i 01_'G2 (/PORN Tm n601 3i s-v900 - rnx (760)118-ixis •Tnn n6m ft61 9527 July 30, 2001 Mr. Mike Copelon Sr. Manager Corporate Real Estate AMERICA WEST 4000 E Sky Harbor Blvd. Phoenix, AZ 85034 RE: Minutes of PFC Consultation Meeting Dear Mr. Copelon: The Palm Springs International Airport held its duly noticed Air Carrier Consultation meeting at 11:00 a.m. local on July 30, 2001. Attached, please find the Minutes of that meeting and a second copy of the Consultation Packet. The result of the proposed Amendment will be the avoidance of a rates and charges increase this year of an estimated $900,000. We seek to have the Amendment and increased collection effective January 1, 2002, and, therefor, seek your assistance in processing your formal response to the Amendment as quickly as possible as well as agreement with any expedited processing that the FAA will allow. Sincerely, ALLE F.4SMOOT, AAE Interim Director of Aviation AFS:ps ATTACHMENTS: 1. Minutes 2. Consultation Package Post Office Box 2743 • Palm Springs, California 92263-2743 • PFC MAILING LIST Consultation Meeting for July 30, 2001 Amendment 02 MR HERB FAHRENBRUCH MESA AIRLINES/AMERICA WEST EXPRESS 4000 E SKY HARBOR BLVD PHOENIX AZ 85034 MR DEWS OLSON DIRECTOR OF PROPERTIES ALASKA AIRLINES 19300 INTERNATIONAL BLVD SEATTLE WA 98168 MS JACKIE AGAN PROPERTIES MANAGER AMERICAN AIRLINES 4333 AMON CARTER BLVD MD 5317 FORT WORTH TX 76155 • MR MIKE COPELON SR MANAGER CORPORATE REAL ESTATE AMERICA WEST 4000 E SKY HARBOR BLVD PHOENIX AZ 85034 MR SAN CHANG MANAGER CORPORATE REAL ESTATE UNITED AIRLINES/UNITED EXPRESS 1200 E ALGONQUIN ROAD TRABUCO CANYON CA 92679 STEVE DWIGGINS SKYWEST AIRLINES 444 S RIVER ROAD ST GEORGE UT 84770 RM-TREANOR I-,-' l i NORTHWEST AIRLINES 5101NORTHWESTDR DEPTA1135 ST PAUL MN 55111 • • NIGEL SPACHMAN REGIONAL MANAGER SOUTHWEST USA CANADA 3000 AIRPORT CENTER III 9841 AIRPORT BLVD STE 103 LOS ANGELES CA 90045 JESS E HALL WINGS WEST/AMERICAN EAGLE 4333 AMON CARTER BLVD MD FORT WORTH TX 76155 JENNIFER KOVAS MANAGER AIRPORT AFFAIRS CONTINENTAL AIRLINES 1600 SMITH STREET DEPT HQSPF HOUSTON TX 77002 • • • SUMMARY MINUTES Air Carrier Consultation Meeting July 30, 2001 - 11:00 a.m. Local Palm Springs International Airport The Airport held its duly noticed Air Carrier Consultation meeting concerning the raising of the Airport's Passenger Facility Charge (PFC) from $3.00 to $4.50 to allow for full coverage of debt service on previously approved PFC projects. Attendees were as follows: Dennis Olson, Alaska Airlines via conference call Steve Dwiggins, SkyWest Airlines via conference call Ralph Jackson, SkyWest Airlines via conference call The Airport reviewed the Air Carrier Consultation packet which was sent on June 29,2001 to all air carriers serving the Airport. Attached to these Minutes,please find a second copy of the Air Carrier Consultation packet. • The carriers were advised that the sole purpose of the Amendment is to raise enough PFC dollars to cover the existing debt on the previously approved PFC projects. The projections attached to the consultation packet show that with the Amendment,the total PFC dollars collected will be reduced as well as the total term of the PFC. These reductions are accomplished via early redemption provisions in the bonds which will allow for any PFC collected in excess of a year's required debt to go to retire additional debt early. SkyWest Airlines inquired about the 80% collection ratio and the Airport reported that the percentage reflects the current collection rate. Alaska Airlines inquired as to the $30,000 annual administrative costs. The Airport reported that these costs were reflective of the Airport's staff time and Finance Department staff time to administer the collection and reporting of the PFC. There being no further questions,the carriers attending expressed support,including a quick written letter of support to hopefully expedite the approval process. • AIR CARRIER CERTIFICATION OF AGREEMENT/DISAGREEMENT SECOND AMENDMENT TO THE APPROVED PASSENGER FACILITY CHARGE Palm Springs International Airport August 30, 2001 Federal Regulation Part 158 outlines the thirty(30)day procedure whereby the airlines must register their Certification of Agreement or Disagreement with the Airport's proposed amendment. Airlines not submitting the certification shall be reported as being in agreement. All airlines serving the airportwere sent notices of the consultation meeting on July 29,2001. Even though all did not acknowledge receipt in writing or attend the consultation meeting, all were sent two copies of the consultation package and a copy of the consultation meeting minutes. They were given opportunities to comment. One of the two airlines in attendance at the consultation meeting (via conference call) sent in their Certification of Agreement without comment. The second airline did not send in a Certification. Based on the Certification of Agreement received and the non-receipt of any Certification from the other air carriers serving the Airport, we hereby report 100% approval of the proposed amendment. � II/es� A I R L I N E S REGEAVED July 30, 2001 BY: DEP I. UI- AVIATION Mr. Allen F. Smoot, AAE P .ar F, Interim Director of Aviation / Palm Springs International Airport 3400 E. Tahquitz Canyon Way Palm Springs, CA 92262 Subject: Certification of Agreement/Disagreement pursuant to Title 14, C.F.R. Section 158.23 (c) of SkyWest Airlines, Inc. with projects presented in Air Carrier Consultation pursuant to Title 14, C.F.R. Section 158.25 (b) Palm Springs hnternational Airport Amendment 92 of PFC# 91-01-C-00-PSP to increase PFC from $3.00 to $4.50. Dear Mr. Smoot: SkyWest Airlines, Inc. has previously acknowledged the receipt of your notice to impose and use Passenger Facility Charge # 91-01-C-00-PSP (PFC) Amendment #2 at Palm Springs International Airport (PSP) and we have had the opportunity to attend the air carrier consultation meeting required • under Section 158.23 of the PFC regulation. We hereby submit our written Certification of Agreement or Disagreement(as set forth in Attaclunent "A")with respect to each of the projects presented in your notice dated Julie 29, 2001. SkyWest will collect and pay a PFC for revenue enplaned passengers observing the first two -last two qualifying enplanement cities. We will not collect or pay a PFC for non-revenue, frequent flyer award, or industry free tickets. We trust you will find our response is consistent with the intent of the PFC legislation. Sincerely, Q � Ralph G. Jacksorl II Properties Specialist Attachment cc: James K. Boyd, VP Customer Service Lowell Johnson, Mgr., - Grants in Aid Division - FAA FAA Western-Pacific Region Thomas J. Browne -ATA • 444 South River Road St.Gealge, Utah 84790 435.634,3000 Fax:435 634.3505 INININ Sttylvest.com Y • ATTACHMENT "A" SKYWEST AIRLINES, INC. Certification of Agreement or Disagreement July 30, 2001 This Certification of Agreement or Disagreement is provided to the Palm Springs International Airport as required under the provisions of 14 CFR, Part 158, Section 158.23. SkyWest's agreement, if any, is contingent upon the estimates, scope and description of the project as presented. Should any of these estimates materially change (with the exception of the fifteen percent (15%) contingency allowed under 14 CFR 158), SkyWest automatically certifies disagreement with the project pending review and reevaluation on the basis of the revised information. In addition, any agreement under this PFC consultation process is not to be construed as approval or disapproval of these or related projects or financing plans under any present or future agreement with the Palm Springs International Airport. Any agreement under this PFC consultation process shall not be construed as an invalidation of any present or future rights under any existing or future use or lease agreements to review and/or approve or disapprove these projects and the financing plan relating to these projects. SkyWest reserves the right, and hereby exercises such right, to certify its agreement or disagreement with each discrete project comprising the Application as follows: • AMENDMENT #2 PFC # 91-01-C-00-PSP SkyWest Airlines certifies agreement with Amendment#2 as presented. The total project costs are $82,314,639. AIP Funds $4,888,314. Local Funds $543,146. PFC Revenue $76,883,179. Position: Agree Comment: None This concludes SkyWest Airlines Certification of Agreement/Disagreement with the projects presented for an Impose and Use PFC at the Palm Springs International Airport, Palm Springs, California. • MEMORANDUM From the desk of. Allen F. Smoot, A.A.E., Assistant City Manager-Special Projects DATE: October 16, 2001 TO: Trisha Sanders, City Clerk SUBJECT: PASSENGER FACILITY CHARGE (PFC) APPROVAL ($4.50) Trisha, attached please find the original letter approval from the FAA which officially raises our PFC to $4.50 as of January 1, 2002. All necessary notices have been sent to the air carriers. Thanks. ALLEN F. SMOOT, AAE Assistant City Manager-Special Projects AFS:ps ATTACHMENT - PFC Approval Letter/FAA �1 U.S Department Western-Pacific Region P.O. Box 92007 of Transportation Airports Division Los Angeles, CA 90009-2007 Federal Aviation Administration OCT - 2001 VOL) wJ Allen F. Smoot, AAE J Interim Director of Aviation f3Y• D E�OF AVIATION City of Palm Springs ' 0 SON P.O. Box 2743 "' a7� Palm Springs, CA 92263-2743 Dear Mr. Smoot: In accordance with section 158.37 (b) (1) (i) of the Federal Aviation Regulations (14 CFR Part 158) , the Federal Aviation Administration (FAA) has reviewed and approved your request for amendment to the approved application to impose and use passenger facility charge (PFC) revenue at Palm Springs International Airport (PSP) . For future reference, this amendment will be identified as number 92-01-C-02-PSP. Procedural History: Date of written notice to air carriers : June 29, 2001 Date of consultation meeting with air carriers: July 30, 2001 Date of amendment application received by FAA: September 7, 2001 There were no certifications of disagreement as a result of the air carrier coordination process for this amendment action. This amendment action approves an increase in the collection level for one project in this application from $3 .00 to $4.50 per passenger enplaned at PEP, with the earliest charge effective date for collections at the $4.50 level being January 1, 2002 . In addition, this amendment represents a decrease to the total amount of PFC to be collected for this project at the said $4.50 PFC level, as listed below: Project Previously Revised Description Approved Approved Airport Terminal $81, 888, 919 $76, 883, 179 Expansion Based on the information provided by the City and our review of the collection records, the new estimated charge expiration date will be July 1, 2024. In approving the increased PFC level, the FAA has determined that there is no reasonable expectation of additional Airport Improvement Program funding in the amount of PFC collection previously approved for this project. Furthermore, the FAA has determined that the city of Palm Springs has made adequate provisions for financing the airside needs at PEP including runways, taxiways, aprons, and aircraft gates. 7 The FAA reminds the City that it must comply with §158 .43 (b) (3) which states, in part, that the charge effective date (January 1, 2002) will be at least 60 days from the date the public agency notifies the carriers of approval to impose the PFC. Please notify, in writing, each of the air carriers collecting PFC's at PSP of the approval of this amendment noting the revisions to the PFC Level, amount of PFC collection, charge effective date, and charge expiration date resulting from this action. If you have any questions regarding this amendment, please contact Eric Vermeeren at (310) 725-3631. Sincerely, Herman C. Bliss Manager, Airports Division RESOLUTION NO. 20160 • OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS , CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AMENDMENT#2 TO PASSENGER FACILITY CHARGE (PFC)APPROVAL PFC 92-01-C-01 PSP, INCREASING THE CHARGE FROM $3.00 TO$4.50,TO THE FEDERAL AVIATION ADMINISTRATION FOR REVIEW AND PROCESSING. WHEREAS in June of 1992, the Federal Aviation Administration completed its review and approved the PFC charge of$3.00 per enplaned passenger to pay for the Airport terminal building expansion; and WHEREAS in June of 1993, the Palm Springs Airport askedfor an Amendment to the PFC to splitthe terminal project into two phases and allowfora ten-year implementation schedule, which was approved; and WHEREAS in November of 1999, the terminal expansion project, both phases, was completed; and • WHEREAS Fiscal Year 2001/02 is the first year of full debt service for the three bond issues utilized to finance the terminal expansion project and that debt exceeds PFC collections by some $900,000 annually; and WHEREAS on June 29, 2001, the Airport notified all air carriers serving the Palm Springs International Airport of a consultation meeting to be held on July 30, 2001, to discuss raising the PFC from $3.00 to $4.50; and WHEREAS on July 30, 2001, said consultation meeting was held with full concurrence from those in attendance; and WHEREAS the thirty-day comment period for airline certification of agreement or disagreement with the PFC Amendment has passed with all carriers either certifying approval or not commenting; and WHEREAS based upon the Palm Springs International Airport Commission action to recommend this Amendment, and the airlines' concurrence, the City Council is desirous of submitting a Second Amendment to the PFC as follows: Section 1. That Amendment #2 to PFC 92-01-C-01 PSP, increasing the amount from $3.00 to$4.50 perenplaned passenger is hereby approved for submittal to the Federal Aviation Administration. • 4? 05 September 5, 2001 Page Two Section 2. That the Assistant City Manager - Special Projects is hereby authorized to execute all necessary application materials and submit the Amendment on behalf of the City of Palm Springs and Palm Springs International Airport. ADOPTED this day of , 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED AS TO FORM: Q152M