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Home My WebLink About4/4/2007 - STAFF REPORTS - 5.B. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS WAIVING CERTAIN PARKING FEES AT THE PALM SPRINGS INTERNATIONAL AIRPORT FOR THE MONTHS OF MAY AND JUNE, 2007 AS A CUSTOMER PARKING PROMOTION. WHEREAS, the City Council recently approved two air service initiatives to increase interest in airlines to begin or increase service at the Palm Springs International Airport; and WHEREAS, the temporarily waving certain parking fees will increase local customer demand by giving local travelers an incentive to choose PSP rather than other area airports; and WHEREAS, the Customer Parking Promotion is limited in nature and scope to measure the success of such programs to Airport Administration, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Palm Springs International Airport, Public Parking Fees, For the Long Term Lot as adopted in the City's Comprehensive Fee Schedule, are hereby waived for a maximum of seven (7) days to outbound Airport passengers with either Hawaiian and/or International destinations. SECTION 2. The waiver of Public Parking Fees in Section 1, is for the period of May 1, 2007 to June 30, 2007, then such fees shall be in full force and effect. SECTION 3. The City Manager, or his designee, shall be permitted to waive fees in Section 1 , pursuant to the outbound traveler presenting their boarding pass to determine proper eligibility and for the subsequent reporting of the waiver of such fees. ADOPTED THIS 4th day of April, 2007. David H. Ready, City Manager ATTEST: 04/041 zoo James Thompson, City Clerk �� Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adapted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California O�pALM sA4 c U U A S cQ`'F0101% CITY COUNCIL STAFF REPORT DATE: APRIL 4, 2007 NEW BUSINESS SUBJECT: PALM SPRINGS INTERNATIONAL AIRPORT CUSTOMER PARKING PROMOTION FROM: David H. Ready, City Manager BY: Aviation Department SUMMARY Airport staff is requesting approval for the discounting of parking fees for customers meeting the criteria for this marketing promotion, which is designed to increase usage of the Airport, generate incremental revenue and ultimately to increase air service. RECOMMENDATION: 1. Approve the discounted parking fees included in the promotion. 2. Authorize the City Manager to execute all necessary documentation. STAFF ANALYSIS The promotion will provide up to seven days of free parking in the Airport Long-Term Lot to those customers returning from any international or Hawaiian destination during the months of May and June. The Council recently approved two air service initiatives, the Air Service Incentive Program and the airport participation in the CVA spot marketing campaign. Both programs were created to increase interest in airlines to begin or increase service at Palm Springs International Airport (PSP). This current program is aimed at increasing ' local customer demand by giving them an incentive to choose PSP rather than other i area airports for their travels. i Hawaiian and International destinations were chosen to emphasize that it is possible to ' travel to practically any destination in the world from Palm Springs, almost always with a single connection. It also reminds local travelers of the cost both in time, money and inconvenience of using other airports. And, the more frequently our local residents use our existing air service, the more likely the community is to earn increased service. ITEM NO. =� City Council Staff Report April 4, 2007 -- Page 2 Air Service Incentive Program During the April-September 2006 period, an average of 55 customers a day traveled to an international or Hawaiian destination from PSP. Based on past customer research, this translates to only ten vehicles a day currently parking in the airport lots. The majority of Coachella Valley passengers to these destinations travel from other airports, according to ticket data. In order to award the discount, parking staff will either collect an actual boarding pass or simply record the destination and number of travelers from the boarding pass. We expect any parking revenue foregone in this promotion from existing customers to be more than offset by new customers using PSP and generating new PFC, concessions, and potentially parking revenue, if they stay for more than seven days. The Airport Commission recommended City Council approval of this promotion at their March 14 meeting. Though several Commissioners spoke strongly in favor of this promotion, the following constructive suggestions were also made: Increase the duration of the promotion from two months to four. Increase the maximum discount from seven to 14 days. Response: We would like to evaluate the promotion's effects during the initial period. This is a test program. If successful, the promotion can be extended in duration and can be offered to other destinations where we lose the majority of our local passengers to other airports. Question: Why do we need to promote Canada in the summer? Response: Most of our summer air travel is outbound, not inbound. This promotion targets local travelers, not tourists. Promoting Canada to our local market is important for Canadian service becoming year-round. Question: How much staff time and money will it take to gather the information and train the cashiers? Response: We have kept the program simple enough that one initial meeting and a set of instructions is all that is required. The parking operator will not charge us any additional fees, and the Deputy Director/Marketing & Development will compile the data and report on the effects of the program as part of his normal responsibilities. Question: How will we measure the effects of the program? Response: We are looking for an increase from the normal small number of about ten vehicles per day with travelers to these destinations that would have normally parked at PSP without the promotion. Since the customer must present the boarding pass to receive the discount, we will know who took advantage of the promotion. The effects will also be measured in passenger databases used by airlines for route planning decisions. City Council Staff Report April 4, 2007 -- Page 3 Air Service Incentive Program FISCAL IMPACT: Funds for marketing this program are available in the existing airport advertising budget, Account #415-6002-45520. Expenditures will be less than $5,000. Richard S. Walsh, A.A. -, Director of Aviation _ � r David'H. Ready, City er MINUTE ORDER NO. APPROVING THE DISCOUNTED AIRPORT PARKING FEES OUTLINED IN THE 2007 PALM SPRINGS INTERNATIONAL AIRPORT CUSTOMER PARKING PROMOTION FOR THE MONTHS OF MAY AND JUNE 2007. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order approving the discounted parking fees included in the 2007 Palm Springs International Airport parking promotion for the months of May and June 2007 was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 4th day of April 2007. �I James Thompson, City Clerk