HomeMy WebLinkAbout10/7/2015 - STAFF REPORTS - 2.U.PALM SA
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CITY COUNCIL STAFF REPORT
DATE: October 7, 2015
CONSENT AGENDA
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE GREATER PALM
SPRINGS CONVENTION & VISITORS BUREAU FOR PROFESSIONAL
AIR SERVICE DEVELOPMENT COST SHARING
FROM: David H. Ready, City Manager
BY: Department of Aviation
SUMMARY
This action considers a Memorandum of Understanding with the Greater Palm Springs
Convention & Visitors Bureau for the cost sharing of professional air service
development services.
RECOMMENDATION:
1. Approve Air Service Memorandum of Understanding with Greater Palm Springs
Convention & Visitors Bureau in an amount not to exceed $50,000.
2. Authorize City Manager to execute all necessary documents.
STAFF ANALYSIS:
The Greater Palm Springs Convention & Visitors Bureau has taken a more active role in
recent years with the support of new airline service through airline marketing funding
and underwriting airline operating costs. This funding by the CVB is in addition to the
successful existing multiyear financial commitment of Marketing Incentive Funds
committed by the City which have been used over the last several years to support
nineteen airline route service enhancements at the airport. This newer collaborative
approach between the two entities will create a more synergistic effort in the
development of air service strategies, and fortify the Palm Springs International Airports
position as it competes with cities around the country to attract more air service.
The Memorandum of Understanding arrangement provides for the engagement of a
professional consulting firm specializing in air service analysis and strategic planning
tailored for this market and its unique seasonality challenges.
iTEM NO. D
City Council Staff Report
October 7, 2015 — Page 2
Air Service Consulting Cost Sharing
Under a process led by the Greater Palm Springs Convention & Visitors Bureau, with
participation by city staff, a solicitation and selection for air service development
consulting services had been conducted. The firm of InterVISTAS Consulting Group
was selected and has been since engaged by the CVB under contract for a period of
one year with a number of specific services including air service route analysis, data
generation, market analysis, and recommendations for added service opportunities.
The cost for this one-year arrangement is not to exceed $100,000, shared equally by
the City and the CVB.
InterVISTAS Consulting Group brings a broad range of skills and services specific to
airline data analysis and forecasting, and it provides an acute understanding of
domestic aviation trends and airline network analysis. The firm has extensive
experience working with communities to develop strategies that match tourism and
conventions based industries with new airline routes. The staff of this firm is comprised
with former airline network planning personnel from major carriers. They have offices
throughout North America with a west coast office serving as the primary point of
contact for this agreement.
FISCAL IMPACT:
The total cost for the one year of service is $100,000 and will be split equally by the
Greater Palm Springs Convention & Visitors Bureau and the City. The $50,000 share of
the City was anticipated and programmed in the approved budget under Fund 415-6002-
45580.
Thom a i,W.A.E. David H. Ready, Es f. .
Executive Director, Airport City Manager
Attachments: Memorandum of Understanding Convention and Visitors Authority
MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE
PALM SPRINGS DESERT RESORT COMMUNITIES CONVENTION
AND VISITORS AUTHORITY AND THE CITY OF PALM SPRINGS
This Memorandum of Understanding (hereinafter, the "MOU") is entered into as of this 7th day
of October, 2015, by and between the Palm Springs Desert Resort Communities Convention and
Visitors Authority, commonly known as the "Greater Palm Springs Convention & Visitors Bureau," a
California Joint Powers Authority operating under the Joint Exercise of Powers Act (California
Government Code §§6500 et seq.), located in the County of Riverside, State of California ("CVB"),
and the City of Palm Springs, a municipal corporation located in the County of Riverside, State of
California ("City"), with the CVB and the City sometimes together hereinafter referred to as the
"Parties," and singularly referred to as "Party."
RECITALS:
WHEREAS, the CVB and InterVISTAS Consulting, Inc. ("Consultant") entered into that certain
Service Provider Agreement By and Between the Palm Springs Desert Resort Communities
Convention and Visitors Authority and InterVISTAS Consulting, Inc., dated July 1, 2015
("Agreement"), an executed copy of which is attached hereto and incorporated herein by this
reference as Exhibit 'A," for Consultant to provide certain consulting services related to air support
enhancement from Palm Springs International Airport, including development of market research and
studies of economic impacts, air service data analysis and route forecasts, and utilization of domestic
and international aviation trends; and
WHEREAS, the Agreement calls for the CVB to pay Consultant an amount not to exceed One
Hundred Thousand Dollars and No Cents ($100,000.00) for provision of such services; and
WHEREAS, because the Palm Springs International Airport is located within the jurisdictional
boundaries of the City, the services provided by Consultant to the CVB will result in direct benefits to
the City, in the form of increased tourism and corresponding increased taxes to be gained by the City;
and
WHEREAS, as a result, the City will reimburse the CVB for up to fifty percent (50%) of all
compensation paid the Consultant under the Agreement.
NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS AND
PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES
HERETO AGREE AS FOLLOWS:
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TERMS
1. Recitals. The Recitals set forth above are true and correct and are hereby incorporated into this
MOU by this reference, as though set forth at length herein.
2. Bindina Effect. The Parties acknowledge and hereby agree that this MOU, standing alone, is a
binding and enforceable contract which is intended to govern and define their respective rights
and responsibilities regarding the agreement between the Parties as memorialized herein.
3. Term. The term of the agreement shall be for a period of one year from October 7, 2015, through
September 30, 2016.
4. Work Product. The City will have the right to copies of all work products provided, as described in
the complete scope of services with InterVISTAS. This shall include, but not limited to the data,
air service studies, and recommendations. The City will also assist with developing strategies for
marketing air service routes from Palm Springs International Airport.
5. Reimbursement to CVB. The City shall reimburse the CVB fifty percent (50%) of all compensation
paid by the CVB to Consultant under the Agreement, up to a total amount not to exceed Fifty
Thousand Dollars ($50,000.00). To that end, for each instance where the CVB is invoiced by
Consultant, the CVB shall forward such invoice to the City, and the City shall pay the CVB half of
that invoice amount by no later than thirty (30) days following receipt of the invoice.
6. Additional Provisions.
(a) Effective Date. This MOU shall take effect on the date first written above.
(b) Modifications and Amendments. Any provision of this MOU may be modified or amended only by
written agreement executed by the Parties.
(c) Attornev's Fees. In the event any action, suit or proceeding is brought for the enforcement of, or
the declaration of any right or obligation pursuant to this MOU, or as a result of any alleged breach of
any provision of this MOU, the prevailing party in such suit or proceeding shall be entitled to recover
its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment
or decree rendered in such a proceeding shall include an award thereof.
(d) Severability. Every provision of this MOU is intended to be severable. If any provision of this MOU
or the application of any provision hereof to any party or circumstance is declared to be illegal, invalid
or unenforceable for any reason whatsoever by a court of competent jurisdiction, such invalidity shall
not affect the other terms and provisions hereof or the application of the provision in question to any
other party or circumstance, all of which shall continue in full force and effect.
(e) Counterparts. This MOU may be signed in two or more counterparts each of which, when
executed and delivered, shall be an original and all of which together shall constitute one instrument,
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with the same force and effect as though all signatures appeared on a single document.
(f) Authority, Each signatory to this MOU certifies that he or she is authorized to execute this MOU and
to legally bind the Party he or she represents, and that such Party shall be fully bound by the terms
hereof upon such signature without further act, approval, or authorization of such Party.
(g) Notice. Any notice to be provided pursuant to this MOU shall be in writing, and all such notices
shall be delivered by personal service or by deposit in the United States mail, certified or registered,
return receipt requested, with postage prepaid, and addressed to the parties as follows:
To the City: City of Palm Springs
Attn: David Ready, City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Telephone: 760-323-8299
Email: david.ready@palmsprings-ca.gov
To the CVB: Scott White, President & CEO
Greater Palm Springs CVB
70-100 Highway 111
Rancho Mirage, CA 92270
Telephone: 760.770.9000
Email: swhite@palmspringsoasis.com
Notices and other documents shall be deemed delivered upon receipt by personal service or as of the
second (2nd) day after deposit in the United States mail.
(h) Non-Liabilitv of Officers and Emolovees. No officer or employee of the City or CVB shall be
personally liable to either Party, or any successor in interest, in the event of any default or breach by
either party of any obligation of the terms of this MOU.
(i) Interpretation. Any rule of construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in interpreting this MOU.
0) Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this MOU shall be effective unless executed in writing and signed by the
party making the waiver. No waiver of any provision of this MOU shall be deemed, or shall constitute,
a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a
continuing or subsequent waiver of the same provision. Failure of either party to enforce any provision
of this MOU shall not constitute a waiver of the right to compel enforcement of the remaining
provisions of this MOU.
(k) Venue. All proceedings involving disputes over the terms, provisions, covenants or conditions
contained in this MOU and all proceedings involving any enforcement action related to this MOU shall
be initiated and conducted in the applicable court or forum in Riverside County, California.
Captions and Headinas. The captions and headings contained in this MOU are provided for
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identification purposes only and shall not be interpreted to limit or define the content of the provisions
described under the respective caption or heading.
(m) Governina Law. The validity of this MOU and any of its terms or provisions, as well as the rights
and duties of the parties under this MOU, shall be construed pursuant to and in accordance with
California law.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready, Esq. Ph.D.
City Manager
APPROVED AS TO FORM:
Ln
Douglas C. Holland
City Attorney
APPROVED BY CITY COUNCIL:
Date: Agreement No.
ATTEST
Ii
James Thompson
City Clerk
Corporations require two notarized signatures. One signature must be from Chairman of Board,
President, or any Vice President.
The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,
or Chief Financial Officer.
COMPANY NAME:
Check one _ Individual _ Partnership _ Corporation
Address
By By
Signature (Notarized) Signature (Notarized)
Scott White, President and CEO Judy Vossler, Senior Vice President
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
CIVIL CODE § 1189
"'(-(`-{{,y{.-(-f`MtY`.YMM.MMMMMM�iSySiY•MMMMMMMM yiva-nrv\v A
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. JI
State of California
County of
On before me,
Date
personally appeared
Here Insert Name and Title of the Officer
Names) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WffNESS my hand and official seal.
Signature
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
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Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
Number of Pages:
Signer's Nama-
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
@2015 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907
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SERVICE PROVIDER AGREEMENT
BY AND BETWEEN
PALM SPRINGS DESERT RESORT COMMUNITIES CONVENTION
AND VISITORS AUTHORITY
AND
InterVISTAS Consulting Inc.
THIS SERVICE PROVIDER AGREEMENT (hereinafter, the "Agreement") is
made and entered into this 1st day of July 2015, by and between the Palm
Springs Desert Resort Communities Convention and Visitors Authority, a joint
powers authority operating under the Joint Exercise of Powers Act (California
Government Code §§6500 et seq.), located in the County of Riverside, State of
California, commonly known as the Greater Palm Springs Convention & Visitors
Bureau, hereinafter referred to as the "CVB,' and InterVISTAS Consulting Inc.,
hereinafter referred to as "Service Provider."
RECITALS
WHEREAS, the CVB desires to enter into an agreement for services related
to
Air Services Development Program Support (hereinafter, the "Services");
and
WHEREAS, the CVB desires to retain the services of a qualified service
provider to provide the Services on an independent contractor's basis.
NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS
AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES
HERETO AGREE AS FOLLOWS:
Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby
incorporated into this Agreement by this reference, as though set forth in full
herein.
Section 2. SCOPE OF SERVICES, EXTRA WORK
a. Service Provider shall perform the Services specifically described in
the Scope of Services, attached hereto and incorporated herein by this
reference as Exhibit "A." In the event any conflict exists between this
Agreement minus the Scope of Services, on the one hand, and the Scope of
Services, on the other hand, the former shall supersede.
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b. At any time during the term of this Agreement, the CVB may request
that Service Provider perform Extra Work. As used herein, "Extra Work" means any
work which is determined by the CVB to be necessary for the proper completion
of the Services, but which the parties did not reasonably anticipate would be
necessary at the execution of this Agreement. Service Provider shall not perform,
nor be compensated for, Extra Work without written authorization from the CVB.
Section 3. TERM
The Service Provider shall perform the services described in the Scope of
Services during the term of this Agreement, which shall commence upon
execution of this Agreement, and terminate upon completion of the services to
the reasonable satisfaction of the CVB, and in any event, no later than June 30,
2016.
Section 4. COMPENSATION
Service Provider shall be paid compensation for the services rendered by
Service Provider pursuant to this Agreement in accordance with Exhibit "A"
Scope of Services, but in any event, not to exceed One Hundred Thousand
Dollars and No Cents ($100,000.00) Service Provider's bills shall include a brief
description of the services performed and the date(s) of the services performed.
Reimbursable expenses, including travel and lodging, as approved by the CVB,
shall be invoiced with details,
Section 5. METHOD OF PAYMENT
Service Provider shall submit invoices to the CVB, on a monthly basis,
describing the work performed. The Service Provider's bills shall include a brief
description of the services performed and the date the services were
performed. The CVB shall pay the Service Provider no later than thirty (30) days
after approval of the invoice by CVB staff provided that the services reflected in
the invoice were performed to the reasonable satisfaction of the CVB in
accordance with the terms of this Agreement.
Section 6. INDEPENDENT CONTRACTOR'S STATUS
Service Provider shall at all times during the term of this Agreement
perform the services described in this Agreement as an independent contractor,
and hereby waives any claims for any compensation or benefits afforded to
CVB employees and not to independent contractors.
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Section 7, CIVIL CODE SECTION 1542 WAIVER
Service Provider expressly waives any and all rights and benefits conferred
upon it
by the provisions of section 1542 of the California Civil Code which reads as
follows:
"A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor."
This waiver shall be effective as a bar to any and all actions, fees,
damages, losses, claims, liabilities and demands of whatsoever character,
nature and kind that are known or unknown, or suspected or unsuspected,
including, without limitation, claims of entitlements, benefits, overtime, or
workers' compensation that are only afforded to employees and not
independent contractors. Service Provider further represents and warrants that It
understands this waiver and that if it does not understand this waiver, it shall seek
the advice of a qualified attorney before executing this Agreement.
CW initials
Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR'S STATUS Of
SERVICE PROVIDER
a. Service Provider represents and acknowledges the following:
(1 ) The CVB is not required to provide any training or legal
counsel to Service Provider or its employees in order for Service Provider to
perform the services described in this Agreement.
(2) Performance of the services described in this Agreement
does not have to be Integrated into the daily business operations of the CVB.
(3) The services described in this Agreement can be performed
without the use of CVB equipment, materials, tools or facilities, including
garbage bins, unless otherwise provided under a separate agreement.
(4) Nothing in this Agreement shall be interpreted to imply that
the CVB must maintain any contractual relationship with Service Provider on a
continuing basis after termination of this Agreement.
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(5) The CVB will not be requested or demanded to assume any
liability for the direct payment of any salary, wage or other such compensation
to any person employed by Service Provider to perform the services described in
this Agreement.
(6) Service Provider shall not at any time or in any manner
represent that it or any of its officers, employees, or agents are "employees" of
the CVB.
b. The CVB represents and acknowledges the following:
(1) Service Provider is not required to comply with daily
instructions from CVB staff with respect to when, where or how Service Provider
must perform the services set forth in this Agreement.
(2) Service Provider is solely responsible for determining who,
under the supervision or direction of Service Provider, will perform the services set
forth in this Agreement.
(3) The CVB will not hire, supervise or pay any assistants working
for Service Provider pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that
Service Provider must maintain any contractual relationship with the CVB on a
continuing basis after termination of this Agreement.
(5) Service Provider is not required to devote full time to the
business operations of the CVB in order to perform the services set forth in this
Agreement.
(6) Nothing in this Agreement shall be interpreted to preclude
Service Provider from working for other persons or firms, provided that such work
does not create a conflict of interest.
(7) Service Provider is not required to perform the services set
forth in this Agreement in any particular order or sequence.
(8) It is the sole responsibility of Service Provider to set the hours in
which Service Provider performs or plans to perform the services set forth in this
Agreement.
(9) Service Provider is not required to perform the services set
forth in the Agreement in any particular order or sequence.
El
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Section 9. NOT AGENT OF THE CVB
Nothing contained in this Agreement shall be deemed, construed or
represented by the CVB or Service Provider or by any third person to create the
relationship of principal and agent. Service Provider shall have no authority,
express or implied, to act on behalf of the CVB in any capacity whatsoever as
an agent, nor shall Service Provider have any authority, express or implied, to
bind the CVB to any obligation whatsoever.
Section 10. WARRANTY
Service Provider warrants that all services will be performed in a
competent, professional and satisfactory manner in accordance with the
standards prevalent in the industry for such services.
Section 11. FAMILIARITY WITH WORK
a. By executing this Agreement, Service Provider warrants that (1) it
has thoroughly investigated and considered the work to be performed, (2) it has
investigated the issues, regarding the scope of services to be provided, (3) it has
carefully considered how the work should be performed, and (4) it fully
understands the facilities, difficulties and restrictions attending performance of
the work under this Agreement.
b. Should Service Provider discover any latent or unknown conditions
materially differing from those inherent in the work or as represented by the CVB,
it shall immediately inform the CVB of such fact and shall not proceed except at
Service Provider's risk until written instructions are received from the an
authorized agent of the CVB.
Section 12. EQUAL OPPORTUNITY EMPLOYMENT
Service Provider represents that it is on equal opportunity employer and
shall not discriminate against any subcontractor, employee, or applicant
("person") for employment because of race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical condition, marital
status, sex, age or sexual orientation. Unless otherwise permitted under the law,
Service Provider shall not refuse to hire or employ any such person or refuse to
select any such person for a training program leading to employment, or bar or
discharge any such person from employment or from a training program
leading to employment, or otherwise discriminate against any such person in
compensation or in terms, conditions, or privileges of employment.
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Section 13. CONFLICTS OF INTEREST
Service Provider covenants that it does not have any interest, nor shall it
acquire an interest, directly or indirectly, which would conflict in any manner
with the performance of Service Provider's services under this Agreement. In the
event the CVB officially determines that Service Provider must disclose its
financial interests by completing and filing a Fair Political Practices Commission
Form 700, Statement of Economic Interests, Service Provider shall file the subject
Form 700 with the CVB pursuant to the written instructions provided by the CVB.
Section 14. COMPLIANCE WITH LAWS; LICENSING AND PERMIT
REQUIREMENTS
a. Service Provider shall comply with all local, state and federal laws
and regulations applicable to the services required hereunder, including any
rule, regulation or bylaw governing the conduct or performance of Service
Provider and/or its employees, officers, or board members.
b. Service Provider represents that it has obtained and will maintain at
all times during the term of this Agreement all professional and/or business
licenses, certifications and/or permits necessary for performing the services
described in this Agreement.
Section 15. INSURANCE REQUIREMENTS
a. Service Provider shall procure and maintain at its own expense,
during the term of this Agreement, commercial general liability insurance of not
less than One Million Dollars ($1,000,000) combined single limit per occurrence,
and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal
injury, advertising injury, death, loss or damage resulting from the wrongful or
negligent acts by the Service Provider or its officers, employees, servants,
volunteers and agents and independent contractors. Service Provider shall
provide insurance on an occurrence, not claims -made basis. Service Provider
acknowledges and agrees that, for purposes of clarification with the intention of
avoiding gaps in coverage with any umbrella or excess insurance, personal and
advertising injury coverage shall be triggered by an "offense" while bodily injury
and property damage coverage shall be triggered by an "occurrence" during
the policy period.
b. Service Provider shall further procure and maintain at its own
expense, until completion of performance and acceptance by the CVB,
commercial vehicle liability insurance covering personal injury and property
damage, of not less than One Million Dollars ($1,000,000) combined single limit
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per occurrence and Two Million Dollars ($2,000,000) in the aggregate, covering
any vehicle utilized by Service Provider or its officers, employees, servants,
volunteers and agents and independent contractors in performing the services
required by this Agreement.
C. Service Provider agrees to require that all parties, including but not
limited to subcontractors, architects, engineers or others with whom Service
Provider enters into contracts or whom Service Provider hires or retains pursuant
to or in any way related to the performance of this Agreement, provide the
insurance coverage required herein, at minimum, and name as additional
insureds the parties to this Agreement. Service Provider agrees to monitor and
review all such coverage and assumes all responsibility for ensuring that such
coverage is provided in conformity with the requirements of this Section.
d. In the event this Agreement is terminated for any reason prior to the
completion of all obligations and requirements of this Agreement, Service
Provider agrees to maintain all coverages required herein until the CVB provides
written authorization to terminate the coverages following the CVB's review and
determination that all liability posed under this Agreement as to the party
providing insurance has been eliminated.
e. Service Provider agrees and acknowledges that if it fails to obtain
all of the insurance required in this Agreement in accordance with the
requirements herein, or to obtain and ensure that the coverage required herein
is maintained by any subcontractors or others involved in any way with the
Services, Service Provider shall be responsible for any losses, claims, suits,
damages, defense obligations, or liability of any kind or nature attributable to
the CVB or its officers, employees, servants, volunteers, agents and independent
contractors.
Section 16. WORKERS' COMPENSATION INSURANCE
a. Service Provider shall procure and maintain at its own expense,
during the term of this Agreement, workers' compensation insurance, providing
coverage as required by the California State Workers' Compensation Law.
b. If any class of employees employed by the Service Provider
pursuant to this Agreement is not protected by the California State Workers'
Compensation Law, Service Provider shall provide adequate insurance for the
protection of such employees to the satisfaction of the CVB. This provision shall
not apply if Service Provider has no employees performing work under this
Agreement. If Service Provider has no employees for the purposes of this
Agreement, Service Provider shall sign and attach the Certificate of Exemption
from Worker's Compensation Insurance, attached hereto and incorporated
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herein by this reference as Exhibit "B." Service Provider agrees to waive its
statutory immunity under any worker's compensation or similar statute, as
respecting the CVB, and to require any and all subcontractors and any other
person or entity involved with the Services to do the same.
Section 17. ADDITIONAL NAMED INSURED
Notwithstanding any inconsistent statement in any required insurance
policies or any subsequent endorsements attached thereto, the protection
offered by all policies, except for Workers' Compensation, shall bear an
endorsement whereby it is provided that the CVB and its officers, employees,
servants, volunteers and agents and independent contractors, including without
limitation, fhe CVB's General Counsel, are named as additional insureds.
Additional insureds shall be entitled to the full benefit of all insurance policies in
the same manner and to the some extent as any other insureds and there shall
be no limitation to the benefits conferred upon them other than policy limits to
coverages.
Section 18. WAIVER OF SUBROGATION RIGHTS
Service Provider shall require the carriers of all required insurance policies
to waive all rights of subrogation against the CVB and its officers, volunteers,
employees, contractors and subcontractors.
Section 19. INSURANCE DOCUMENTATION
a. Service Provider shall secure from a good and responsible
company or companies authorized to do insurance business in the State of
California, and possessing a Best's rating of no less than A:VII, the policies of
insurance required by this Agreement and furnish to the CVB certificates of said
insurance with original endorsements on or before the commencement of the
term of this Agreement. Service Provider agrees to ensure that the most current
certification of insurance is on file with the City at all times during the term of this
Agreement.
b. Each policy required herein must be endorsed to provide that the
policy shall not be cancelled or reduced in coverage by either party (except by
paid claims) unless the insurer has provided the CVB with thirty (30) days prior
written notice of cancellation or reduction in coverage.
C. All insurance policies required to be provided by Service Provider or
any other party must be endorsed to provide that the policies shall apply on a
primary and noncontributing basis in relation to any insurance or self-insurance,
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primary or excess, maintained or available to the CVB, and its officers,
employees, servants, volunteers, agents and independent contractors.
Section 20. TERMINATION OR SUSPENSION
This Agreement may be terminated by either party immediately for cause.
The CVB may terminate this Agreement with or without cause upon ten (10)
days' written notice of termination. Service Provider may terminate this
Agreement without cause upon thirty (30) days' written notice of termination.
Upon termination, Service Provider shall be entitled to compensation for services
performed up to the effective date of termination.
In the event of a termination of this Agreement under this section, Service
Provider shall provide all documents, reports, data or other work product
developed in performance of the Scope of Services of this Agreement to the
CVB, within ten (10) calendar days of such termination and without additional
charge to the CVB.
Section 21. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.
Section 22. INDEMNIFICATION
a. Service Provider shall defend, indemnify and hold harmless the CVB,
its officers, officials, agents, employees and volunteers from and against any
and all claims, demands, actions, losses, damage, injuries, and liability, direct or
indirect, (including any and all costs and expenses in connection therewith),
arising out of the performance of this Agreement, except for any such claim
arising out of the sole negligence or willful misconduct of the CVB, its officers,
agents, employees or volunteers.
b. The CVB does not, and shall not; waive any rights that it may have
against Service Provider under this section because of the acceptance by the
CVB, or the deposit with the CVB, of any insurance policy or certificate required
pursuant to this Agreement. The hold harmless, indemnification and duty to
defend provisions of this section shall apply regardless of whether or not said
insurance policies are determined to be applicable to the claim, demand,
action, damage, liability, lass, cost or expense described herein.
C. Notwithstanding the provisions of subsections a. and b. of this
section, Service Provider shall not be responsible for damages or be in default or
deemed to be in default by reason of delay caused by strikes, lockouts,
accidents, or acts of God, or the failure of the CVB to furnish timely information
9
17
or to approve or disapprove Service Provider's work promptly, or by reason of
delay or faulty performance by the CVB, construction contractors, or
governmental agencies, or by reason of any other delays beyond Service
Provider's control, or for which Service Provider is without fault.
Section 23. BOOKS AND RECORDS
a. Service Provider shall maintain any and all ledgers, books of
account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services, or expenditures and
disbursements charged to the CVB for a minimum period of three years, or for
any longer period required by law, from the date of final payment to Service
Provider pursuant to this Agreement.
b. Service Provider shall maintain all documents and records which
demonstrate performance under this Agreement for a minimum of three years,
or for any longer period required by law, from the date of termination or
completion of this Agreement.
C. Any records or documents required to be maintained pursuant to
this Agreement shall be made available for inspection or audit, at any time
during regular business hours, upon written request by the CVB's President and
CEO, its General Counsel, its auditor or a designated representative of these
officers. Copies of such documents shall be provided to the CVB for inspection
at the CVB's main office, when it is practical to do so. Otherwise, unless an
alternative is mutually agreed upon, the records shall be available at Service
Provider's address indicated for receipt of notices in this Agreement.
d. Where the CVB has reason to believe that such records or
documents may be lost or discarded due to dissolution, disbandment or
termination of Service Provider's business, the CVB may, by written request of
any of the above -named officers, require that custody of the records be given
to the CVB and that the records and documents be maintained at the CVB's
main office. Access to such records and documents shall be granted to any
party authorized by Service Provider, Service Provider's representatives, or
Service Provider's successor -in -interest.
Section 24. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings prepared by and for
Service Provider, its officers, employees and agents and subcontractors in the
course of implementing this Agreement, except working notes and internal
documents, shall become the property of the CVB upon payment to Service
Provider for such work, and the CVB shall have the sole right to use such
10
In
materials in its discretion without further compensation to Service Provider or to
any other party. Service Provider shall, at their expense, provide such reports,
plans, studies, documents and other writings to the CVB upon written request.
Section 25. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings,
photographs, descriptions, computer program data, input record data, written
information, and other documents and data either created by or provided to
Service Provider in connection with the performance of this Agreement shall be
held confidential by Service Provider. Such materials shall not, without prior
written consent of the CVB, be used by Service Provider for any purposes other
than the performance of the services under this Agreement, nor shall such
materials be disclosed to any person or entity not connected with the
performance of the services under this Agreement. Nothing furnished to Service
Provider which is otherwise known to Service Provider or is generally known, or
has become known, to the related industry shall be deemed confidential.
b. Service Provider shall not use the CVB's insignia or photographs
relating to the project for which Service Provider's services are rendered, or any
publicity pertaining to the Service Provider's services under this Agreement in
any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of the CVB.
Section 6. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written
instrument signed by both parties.
i•��— cwJforwc..'t• Cup%
At any time during the term of this Agreement, the CVB reserves the right
to ale an i dependen investigano info the ba kground o Service rovider's
p sonnet wh perform w rk required i the Scope f Services, includin but not
lima ed to their ferences, horacter, a ress history, ast amp yment,
ed atlon, soci I security mbar volida 'on, and cri final or ice rec ds, for
the urpose of c nfirming t at such perso net are law Ily empl yed, qu lifted
to pr vide the sub ct servic or pose a ris to the safe of persoN
pro arty in
and a and the Vic tty of wh re the Servic s will be ren ered ore C . Ifthe CV makes a re sonabte termination hat any of rvice Per'sprospect a or then c rrent per nnel is dee ed objectio able, tthe Cmay nolif ervice Pro der of th ame. Servic Provider s II notthat
personnel f perform w rk require in the Sco of Services, and if necessary,
shall replace im or her 'th anothe suitable wo er.
11
19
Section 28. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either
oral or written, between the CVB and Service Provider with respect to the
subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements
between the parties with respect to the subject matter of this Agreement, and
each party to this Agreement acknowledges that no representations,
inducements, promises, or agreements have been made by or on behalf of any
party except those covenants and agreements embodied in this Agreement.
C. No agreement, statement, or promise not contained in this
Agreement shall be valid or binding.
Section 29. AMBIGUITIES
This Agreement is in all respects intended by each party hereto to be
deemed and construed to have been jointly prepared by the parties and the
parties hereby expressly agree that any uncertainty or ambiguity existing herein
shall not be interpreted against either of them. Except as expressly limited by this
paragraph, all of the applicable rules of interpretation of contract shall govern
the interpretation of any uncertainty or ambiguity of this Agreement.
Section 30. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in
writing, and all such notices shall be delivered by personal service or by deposit
in the United States mail, certified or registered, return receipt requested, with
postage prepaid, and addressed to the parties as follows:
To the CVB: Greater Palm Springs CVB
Attention: Scott White
70-100 Highway 111
Rancho Mirage, CA 92270
Telephone: (760) 770-9000
Email: swhite@polmspringsoasis.com
To Service Provider: InterVISTAS Consulting Inc.
Attention: Chris Warren
1150 Connecticut Avenue NW Suite 601
Washington DC 20036
Telephone: (949) 558-1098
Email: Chris.Warren@lnterVISTAS.com
12
b. Notices, payments and other documents shall be deemed
delivered upon receipt by personal service or as of the second (2nd) day after
deposit in the United States mail.
Section 31. NON -LIABILITY OF CVB OFFICERS AND EMPLOYEES
No officer or employee of the CVB shall be personally liable to Service
Provider, or any successor In interest, in the event of any default or breach by
the CVB or for any amount which may become due to Service Provider or to its
successor, or for any breach of any obligation of the terms of this Agreement.
$e4tte4r3z. ncvieill! of A1IVRNEYS -Ve"'Q t��t ✓lov t`g�A
Loch rty h reto as had'is ati�rne rev' w t 's Agr eme t anal all
relate docuents. ac arty h reto as onsuedth its ttor eys d has
negotia d the Terms f this Agreement boson sbch c2msuttailoo�
Section 33. WAIVER
a. No waiver shall be binding, unless executed in writing by the party
making the waiver.
b. No waiver of any provision of this Agreement shall be deemed, or
shall constitute, a waiver of any other provision, whether or not similar, nor shall
any such waiver constitute a continuing or subsequent waiver of the some
provision.
C. Failure of either party to enforce any provision of this Agreement
shall not constitute a waiver of the right to compel enforcement of the
remaining provisions of this Agreement.
Section 34. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Service
Provider, its principals and employees were a substantial inducement for the
CVB to enter into this Agreement. Assignments of any or all rights, duties or
obligations of the Service Provider under this Agreement will be permitted only
with the written consent of the CVB.
b. Service Provider shall not subcontract any portion of the work to be
performed under this Agreement without the written consent of the CV8. It the
CVB consents to such subcontract, Service Provider shall be fully responsible to
the CVB for all acts or omissions of the subcontractor. Nothing in this Agreement
shall create any contractual relationship between the CVB and subcontractor
13
21
nor shall it create any obligation on the part of the CVB to pay or to see to the
payment of any monies due to any such subcontractor other than as required
by law.
Section 35. CARE OF WORK
The performance of services by Service Provider shall not relieve Service
Provider from any obligation to correct any incomplete, inaccurate or defective
work at no further cost to the CVB, when such inaccuracies are due to the
negligence of Service Provider.
Section 36. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for
identification purposes only and shall not be interpreted to limit or define the
content of the provisions described under the respective caption or heading.
Section 37. SUCCESSORS, HEIRS AND ASSIGNS
Except as otherwise expressly provided herein, this Agreement shall be
binding upon the successors, endorsees, assigns, heirs, and personal
representatives of each of the parties to this Agreement and, likewise, shall inure
to the benefit of the successors, endorsees, assigns, heirs, and personal
representatives of each of the parties.
Section 38. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections
contained herein is declared invalid, void or unenforceable by a court of
competent jurisdiction, the same shall be deemed severable from the
remainder of this Agreement and shall not affect, impair or invalidate any of the
remaining sentences, clauses, paragraphs or sections contained herein.
Section 39. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as
the rights and duties of the parties under this Agreement, shall be construed
pursuant to and in accordance with California low.
Section 40. DEFAULT
a. Failure or delay by any party to this Agreement to perform any
material term or provision of this Agreement shall constitute a default under this
Agreement; provided however, that if the party who is otherwise claimed to be
14
22
in default by the other party commences to cure, correct or remedy the alleged
default within fifteen (15) calendar days after receipt of written notice specifying
such default and shall diligently complete such cure, correction or remedy, such
party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give
written notice of default to the party in default, specifying the alleged default,
Delay in giving such notice shall not constitute a waiver of any default nor shall it
change the time of default; provided, however, the injured party shall have no
right to exercise any remedy for a default hereunder without delivering the
written default notice, as specified herein.
C. Any failure or delay by a party in asserting any of its rights or
remedies as to any default shall not operate as a waiver of any default or of any
rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may
remain uncured for more than fifteen (15) calendar days following written
notice, as provided above, a "breach" shall be deemed to have occurred. In
the event of a breach, the injured party shall be entitled to seek any
appropriate remedy or damages by initiating legal proceedings.
Section 41. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be
exclusive in this Agreement, the rights and remedies of the parties are
cumulative and the exercise by either party of one or more of such rights or
remedies shall not preclude the exercise by it, at the some or different times, of
any other rights or remedies for the same default of any other default by the
other party.
Section 42. VENUE
All proceedings involving disputes over the terms, provisions, covenants or
conditions contained in this Agreement and all proceedings involving any
enforcement action related to this Agreement shall be initiated and conducted
in the applicable court or forum in Riverside County, California.
Section 43. LITIGATION EXPENSES AND ATTORNEY'S FEES
In the event any action, suite or proceeding is brought for the
enforcement of, or the declaration of any right or obligation pursuant to this
Agreement or as a result of any alleged breach of any provision of this
Agreement, the prevailing party in such suit or proceeding shall be entitled to
15
23
recover its costs and expenses, including reasonable attorney's fees, from the
losing party, and any judgment or decree rendered in such a proceeding shall
include an award thereof.
Section 44. EFFECTIVENESS OF AGREEMENT
This Agreement shall not be binding upon the CVB, until signed by the
authorized representative(s) of Service Provider, and approved as to form by the
CVB's General Counsel, and executed by the CVB's President and CEO or his or
her designee.
Section 45. NO THIRD PARTY BENEFICIARIES
The parties do not intend the benefits of this Agreement to inure to any
third party, nor shall any provision of this Agreement be so construed.
Section 46. LABOR LAWS
a. All work or services performed within the State of California pursuant
to this Agreement by Service Provider, Service Provider's employees and
independent contractors, or contractor's subcontractors and its subcontractors'
employees and independent contractors shall be performed by individuals
lawfully permitted to perform such work or services in the State of California
and/or the United States of America pursuant to all applicable State and/or
Federal labor laws, rules and regulations including, but not limited to, any State
or Federal law, rule or regulation prohibiting the employment of undocumented
workers or any other person not lawfully permitted to perform said work or
services in the State of California or the United States of America.
b. Documentation must be promptly submitted to the CVB at any
time, at the request of the CVB, for the purpose of determining whether or not
the work or services provided pursuant to this contract are being provided in
compliance with this section.
Section 47. REPRESENTATIONS OF PARTIES AND PERSONS
EXECUTING AGREEMENT
a. Each of the parties to this Agreement hereby represents that all
necessary and appropriate actions of their governing bodies have been taken
to make this Agreement a binding obligation of each of the parties hereto.
b. The persons executing this Agreement warrant that they are duly
authorized to execute this Agreement on behalf of and bind the parties each
purports to represent.
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24
Section 48. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be
deemed to be an original.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first written above.
PALM SPRINGS DESERT RESORT
COMMUNITIES CONVENTION AND
VISITORS AUTHORITY aka Greater Palm
Springs Convention & Visitors Bureau
Scot ite
President and CEO
JOINT POWERS AUTHORITY
EXECUTIVE COMMITTEE
9n 14,% D {- e✓ow5 Print
CVB BOARD OF DIRECTORS
Sign Print
ATTEST: p
Ju ossler�
Se for Vice President Administration
APP&QVED
ASAS TO FORM:
Ste en B. Quintanilla, General Counsel
InterVISTAS Consulting, Inc.
' en
G�tct�toPN�r &/- "j
Cal'.., LGtrla past «lC t De�.;t-� CJA+-)0 me y
18
26
EXHIBIT "A"
SCOPE OF SERVICES
SEE ATTACHED 25 PAGES
19
27
�8
I nterViSTAS
..•ry-+v.w u.we.vew
June 23, 2015
Mr. Scott White
President and CEO
Greater Palm Springs Convention and Visitors Bureau
Dear Scott:
On behalf of Paul, Sabine, and the rest of the InterVfSTAS team, I am pleased to
present you with this updated proposal to support air service development efforts from
the Palm Springs International Airport ("PSP"). Per our discussion from June 11, this
proposal includes an updated pricing and budget structure.
We believe the team we have constructed for this engagement to be particularly well
suited to address the needs of PSP. As discussed on our recent call, our proposed
Project Manager Chris Warren is based in Southern California and brings extensive
regional experience from both a consulting and airline perspective. Other key team
members also bring critical experience across a range of subject matter disciplines
ranging from airline network development to tourism support.
Please feel free to call me with questions at any time. We look forward to the
opportunity to work with you in the weeks and months ahead.
Sincerely,
Chris Warren
Vice President, InterV►STAS Consulting Group
G9
InterVISTAS
Contents
1 The InterVISTAS Consulting Group...................................................................... 1
1.1 Overview of IVC..........................................................................................................1
1.2 Why InlerVISTAS7...........................................................................................................2
1.3 The InterVISTAS business case model...........................................................................5
1.4 Market research and data sources...................................................................... ....
A
1.5 Catchment area analysisAeakage studies........................................................ .............7
1.6 Economic impact studies..................................................................................................8
1.7 Tourism support ................................................................................................................8
1.8 Review of key route wins..................................................................................................9
2 Overview of air service at PSP............................................................................
12
3 The InterVISTAS air service development program ..........................................
14
4 Proposed project team........................................................................................
16
5 Proposed pricing and budget.............................................................................19
6 Next steps.............................................................................................................
21
a
30
InterVISTAS
.m.hw,a wniwnrMo-x
1 The InterVISTAS Consulting Group
1.1 Overview of IVC
InterVISTAS Consulting Group ("InterVISTAS") is comprised of several
InterVISTAS integrated companies that provide a range of services to the worldwide
hwm •�xoy.rx•Wminooxv travel and tourism industry. InterVISTAS has its primary offices in the
United States (Washington and Boston), Canada (Vancouver and
Ottawa), the Netherlands (The Hague), the United Kingdom (London and Bath) and Brazil (Sao
Paulo). In addition, InterVISTAS has smaller project offices elsewhere around the world.
In 2012, InterVISTAS became a subsidiary of Royal HaskoningDHV, an
Royal independent, international project management, engineering, and
HaskoningDHV consultancy service provider with headquarters in the Netherlands. The
EO,e ,i,SoWyh,rhn company carries out more than 30,000 projects each year in the aviation,
energy, maritime, mining, surface transport, and water resources sectors, often complementing
InterVISTAS' capabilities.
Within the United States, InterVISTAS operates through InterVISTAS Consulting LLC, providing
services to clients in the areas of international and domestic air service development, economic
analysis, airport/airline relations, business planning, financing support, travel and tourism
marketing, security and border facilitation, international transportation policy and a wide range
of related services. These services are provided by a professional staff of over 90 people, most
of whom are highly experienced aviation and airline industry professionals with decades of
active involvement in the development of commercial aviation. InterVISTAS Consulting LLC was
formed in the State of Delaware on November 12, 2004.
InterVISTAS takes an integrated, collaborative approach when working with clients. This
approach maximizes the value of the experience and expertise of both the consultant and the
client in the conduct of projects and evaluations. InterVISTAS offers three principal
complementary strengths to its collaboration with clients:
• InterVISTAS has extensive institutional knowledge of the global aviation industry;
• InterVISTAS has the ability to draw upon a vast network of industry resources and
contacts worldwide; and
InterVISTAS understands how to combine its knowledge and contacts to deliver successful
results for its clients.
InterVISTAS' air service development work is anchored in quantitative analysis, strategic
evaluation, and business case development. This approach takes advantage of InterVISTAS'
industry contacts, leading -edge air service data analysis and forecasting capabilities, as well as a
31
InterVISTAS
keen understanding of domestic and international aviation trends, airline developments,
successful community strategies and other sector -specific knowledge.
InterVISTAS' Washington and Boston offices are staffed with aviation and airline industry
professionals who have been continually engaged in the analysis of airline networks, route
strategies, and market development. The Washington office is also the focal point for the firm's
active involvement in air service development. Augmenting our air service development
capabilities, InterVISTAS is fully staffed and equipped to perform related economic, regulatory
and policy -development activities, as well as financial forecasting and market analyses,
In addition, InterVISTAS has developed regional offices in both Northern and Southern
California to better meet the needs of our West Coast clients. Our proposed project manager,
Chris Warren, works from an office in South Orange County and brings unique expertise and
experience in regional industry and economic matters. Furthermore, his location provides a key
tactical element for the team at PSP— allowing for better time zone coverage, reduced travel
costs, the ability to provide onsite support on relatively short notice, and other benefits which
drive more efficient use of your air service development budget.
1.2 Why InterVISTAS?
The InterVISTAS team brings a wide range of skills and product offerings to this proposal for
PSP. This includes not only traditional air service data analysis and route forecasts, but also a
keen understanding of domestic and international aviation trends, bilateral and passenger
facilitation knowledge, and community strategies for successful partnerships and realistic
incentive programs (as needed). Only InterVISTAS can provide Palm Springs with this range and
quality of support — all in an affordable, collaborative atmosphere.
More detailed examples of the strengths InterVISTAS offers include:
Our team includes staff that has experience in finance and network Manning roles with
several different commercial airlines. Senior InterVISTAS staff includes team members with
previous experience across several carriers including Air Canada, American, Continental/United,
and British Airways among others. This has contributed to our ability to consult with a wide
range of domestic and international carriers and allows us to better view air service
development projects from an airline perspective. Put simply, our team understands what
airlines want to see when engaging in air service development discussions.
We offer a number of offices across North America and the world. Including on the West
Coast. In addition to our primary North American offices in Washington, Boston, and
Vancouver, our proposed Project Manager Chris Warren works from an office in Orange
County. Our regional western offices provide us with the ability to better coordinate with the
32
InterVISTAS
. � .�mry JlbAl WJe�npOW
West Coast work day and will result in reasonable travel expense for onsite and community
support efforts.
our team can develop and manage a personalized overall air service develooment oroaram.
We can tailor our air service development support across a range of models, ranging from full
program development, planning, and management to a more ad hoc, periodic support
approach. We are comfortable and bring experience across a broad spectrum of engagement
models, allowing you tailor a program which best fits your local needs and requirements.
Our team uses state-of-the-art data systems and forecasting models. InterVISTAS
incorporates the same tools, systems, and data sources that are standards within the airline
industry, and utilizes both commercial quality and internal proprietary route forecasting and
profitability forecasting models. InterVISTAS undertakes route viability forecasts using
LiftPlan/NetLine, a high-speed traffic and revenue allocation model, to forecast the market
share, traffic composition, connectivity and load factor of a potential new air service.
LiftPlan/NetLine is a sophisticated Quality Service Index (QSI) route planning application used
by major international carriers such as Lufthansa German Airlines and Qatar Airways, Even
among airlines that do not use LiftPlan/NetLine, the model is well respected in the industry.
The model provides thorough analysis of complex air travel options, including hypothetical new
routes, schedule changes, interlining and code -share partnerships, fleet changes, and other
scenarios. LiftPlan/NetLine allows effective analysis of multiple what -if scenarios, quickly
responding to changes in flight times, frequency, aircraft type, and even hypothetical
competitor reactions. In addition, the firm utilizes multiple independent sources of domestic
and international origin -destination data, including the widely used NO online portal.
Our team has extensive air service develooment and strateev exoerience across airports of all
sizes. InterVISTAS has completed air service development work for airports across the full
spectrum of domestic (and international) clients. We routinely support U.S. clients across a
range of airport sizes ranging from smaller airports such as Fayetteville, NC and Charlottesville,
VA —to mid -sized airports such as Oklahoma City and Columbus, OH —to large airports such as
Minneapolis -St. Paul and Houston. We also support a number of international clients spanning
several continents. This wide range of market coverage keeps us at the cutting edge of industry
events and trends across the spectrum of domestic and international markets.
Our team brings unrivalled caoabllities in oassenger and careo facilitation. The InterVISTAS
team brings a detailed understanding of the government and regulatory issues that impact air
service development. Of particular note, we have been a primary industry driver in working
with U.S. Customs and Border Patrol to seek creative solutions for customs and facilitation
issues for smaller U.S. airports.
Our team has a thorough understandine of the benefits (and risksl of air service incentive
programs. Airlines are increasingly open to financial incentives to initiate and/or promote new
services. An airport should remain competitive but must also avoid alienating its incumbents or
33
InterVISTAS
�tlnb4/, �IYy��b.LLm'.gbW
investing in flights that may never be economically viable. InterVISTAS has helped multiple
airports develop incentive programs that fulfill this delicate balance and has assisted in
incentive negotiations with several airlines. In many instances, InterVISTAS has suggested
alternatives or supplements to incentive programs that strategically advance air service
development goals without antagonizing incumbent air carriers. We view this process as one of
increasing importance in today's competitive air service environment.
Our team can su000rt Palm Springs communitv outreach efforts. Our InterVISTAS team brings
significant experience and expertise in working with local community stakeholders to facilitate
a more collaborative team approach to an overall air service development program. We also
understand the sensitivity sometimes involved in the local management of such programs, and
are flexible and experienced in allowing your local airport team to direct and lead efforts as
desired.
Our team brines additional and unlaue advantages and svnergies through a robust tourism
ro actice. InterVISTAS brings a wealth of air service strategies that can also specifically target
increased tourist air traffic to destinations. Through our successful engagements and client
partnerships in tourism dependent markets such as Florida, Costa Rica, Puerto Rico and British
Columbia (among others), our company has developed an excellent reputation among travel
and tourism professionals. Our tourism team works closely with key groups such as destination
marketing organizations, regional and national tourism organizations, tour operators and
leisure charter airlines to add strategic value and support to our air service development
assignments in tourism dependent communities. Synergies between air service development
and tourism development are paramount in realizing the full potential of Palm Springs and the
broader regional community.
Our team members are constantly monitoring industry trends for all of our airoort clients.
Whether it's a new airplane order, a merger, or a shift in a carrier's business model, InterVISTAS
constantly monitors major domestic and international aviation trends. InterVISTAS has
prepared merger studies and bankruptcy analyses, as well as various evaluations of changing
alliances, airline reorganizations, and liberalization. We can also prepare detailed industry
reviews at any time for presentation to your local team or broader stakeholder community.
In addition to the benefits above, our team can also provide Palm Springs with:
• Financial and economic analysis (evaluations and cost/benefit analysis of new air
service)
• Security/facilitation support (air service development may involve concerns over
security and international passenger facilitation)
• Air cargo expertise and experience
• Unmatched international experience
34
InterVISTAS
....e�,a e.px.00n.yvw
Excellent contacts within Washington's transportation -related government structure —
including the U.S. Department of Transportation, Federal Aviation Administration, State
Department, Department of Commerce, as well as relevant congressional committees
• Strategically placed office locations spanning nine time zones
1.3 The InterVISTAS business case model
InterVISTAS' employees include numerous former senior network planners from U.S, and
international airlines, including Air Canada, American Airlines, British Airways, and
Conti nental/ExpressJet. InterVISTAS incorporates the same tools, systems, and data sources
that are standard within the airline industry and uses both commercial quality and internal
proprietary route forecasting and profitability forecasting models.
Developing a credible business case for new flights is critical in generating additional air service.
InterVISTAS' presentation packages include not only background community information and a
full quantitative review of the aggregate local air service market and competitive environment,
but also (when appropriate) detailed strategic route analyses which are designed to appeal to
the decision logic of airline network planning management. We produce a level of detail and
type of analysis that exceeds requirements of airline route planners to make decisions
regarding new air service.
Network efficiency is critical to airline success and competitive advantage. InterVISTAS' clients
around the world have relied on the systems, resources, and knowledge base that InterVISTAS
brings to industry -leading network planning solutions.
• We are experts in origin -destination market size estimation and forecasting based upon
the diverse and often incomplete air travel information available to the industry;
• We have proven expertise in the use of the LiftPlan network planning tool, facilitating
long-term network design, hub optimization, or immediate schedule efficiency as per the
needs of our clients;
• We have a database of aircraft costs and have established relationships with aircraft
manufacturers, ensuring access to the most accurate and relevant performance and
operational information; and
• We understand the regulatory, strategic, and political issues around alliance, codeshare,
and interline partnerships that define airline opportunities and revenue potential.
In developing detailed route forecasts, InterVISTAS can:
35
InterVISTAS
• Develop realistic flight schedules for proposed new PSP flights -- designed to maximize
connectivity, appropriately serve various segments of the PSP market, and fit the target
airlines' network strategies;
• Provide analytically sound projections of seasonality for new flights, including the
potential for traffic and revenue stimulation for new non -peak season service;
• Determine the most appropriate and viable flight frequency and aircraft type for each
route;
• Provide realistic assessments of traffic stimulation potential for each new air service; and
• Provide detailed forecast results, including:
• Forecast load factor for each new flight;
• Online single and double connecting markets for each new flight;
• Expected market share that each new flight will capture in non-stop and connecting
city pairs;
• Proportion of local vs. connecting passengers on each flight;
• Projected flight fares and revenue (including segment -prorated and network
contribution); and
An assessment of the traffic and revenue impact of proposed new services on existing
PSP airlines and their routes.
InterVISTAS takes a measured and realistic approach to route analysis to ensure that results are
viewed as credible by the airlines. We bring the Industry knowledge and experience required to
properly interpret and, if necessary, adjust forecast results to ensure maximum accuracy in
today's dynamic planning environment.
1.4 Market research and data sources
The InterVISTAS air service development team researches a broad array of industry data, which
enables us to provide extensive analysis of existing and potential markets at both O&D and
segment levels as well as higher levels of market and airline aggregation.
In addition to Lufthansa's LiftPlan, which was mentioned previously, Qoio Ml.
InterVISTAS has multiple independent sources of domestic and international
origin -destination data, Including the widely used Dlio online portal.
InterVISTAS has a complete subscription to the Diio product, which includes
access to the full suite of U.S. DOT data products including T100 (traffic), D81B (O&D revenue
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lnterVISTAS
and market size), and Form 41(cost and financial information). Diio also provides detailed
scheduling data and querying ability (from Innovata's airline schedules database) as well as a
full range of other analytical tools —including demographic data, mapping utilities, fleet and
alliance information, and others. Additionally, the Diio platform provides direct access to the
IATA/FMg product —which uses Airlines Reporting Corporation (ARC) and IATA Billing and
Settlement Plan (BSP) data to identify international market sizes and fares.
With our vast array of data resources, we are well-equipped to efficiently assemble and
interpret reports on supply and demand for existing and potential PSP markets — including
potential seasonal expansion of existing markets. We consult Flightglobal's Ascend database to
characterize airline existing and future airline fleets, providing valuable insight into their
strategies.
lnterVISTAS will have access to this full range of data and can provide it to PSP through a formal
reporting product (if desired) or any range of ad hoc requests.
1.5 Catchment area analysis/leakage studies
An important strength of the lnterVISTAS analytical process is the ability to quantify (and
highlight) the true market size for each relevant catchment area and incorporate this into our
forecast process and results.
lnterVISTAS is a market leader in conducting accurate and detailed market assessment/leakage
studies. We have extensive experience in using airline ticketing and booking data, including
MIDT (Marketing Information Data Tapes), IATA/BSP, ARC, and other primary and secondary
Information sources to evaluate air travel markets, quantify traffic leakage, and identify air
service deficiencies.
We continue to enhance our leakage study methodology in order to provide you with sound,
C&D level, true catchment area demand information at a reasonable price point. Ticket and/or
reservation data serves as the primary source of information regarding passengers' true point
of origin (zip code information for credit card purchases is typically purchased from ARC). This
data includes all sales made through the travel agency global distribution systems (GDS). Not
all carriers and all origin -destination city pairs are well represented in the GDS ticket data.
Consequently, it is necessary to apply other methodologies to estimate each catchment area's
share of total passenger volumes. In the course of over twenty studies lnterVISTAS has
conducted over the last four years, we have had considerable success applying regression
analysis tools to compare airport market share by catchment area to an airport's relative
quality of service and average fare. The results of the model can then be applied to augment
results derived from the GDS point -of -sale analysis and to extend the analysis to those origin —
destination city pairs that are not well represented in the GDS data.
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InterVISTAS
We will be more than happy to discuss this process and deliverable profile in more detail at
your request.
InterVISTAS also has access to a range of other sources of demographic and economic data,
including Woods and Poole Economics, Inc.
1.6 Economic impact studies
InterVISTAS undertakes all econometric studies by applying its internal methodology - which
relates historical traffic to key economic and social variables such as gross metropolitan product
and/or personal income, changes in total population, and reactions to historical and
geopolitical events (such as terrorism/war, pandemics, etc.). The appropriateness of these
various models will be assessed based on the availability of data, level of sophistication
required, and forecast results produced. While there is often a trade-off between accuracy and
practicality, our approach aims at balancing the two based on the amount and quality of the
data available.
Forecasts of future traffic are then based on analysis of the identified key drivers of traffic in
the PSP region, which employ forecasts from well -accepted sources. In some cases, InterVISTAS
will modify these values before finalizing its forecasts if there are strong and well -documented
reasons for doing so.
Our approach recognizes that there are a number of different paths along which airport
development might proceed for developing new markets, including the use of incentives. Our
approach complements traditional statistical/econometric forecasting by developing bottom -up
scenarios relating to the market development and the general business environment that PSP
will face in the future - and incorporating these scenarios into our forecasts.
1.7 Tourism support
InterVISTAS' Tourism Development Group is a highly specialized team driven to maximize the
tourism economy and opportunity for destinations worldwide, while allowing local culture and
the environment to thrive and be sustained. The Tourism Development Group works closely
with its Airline and Air Service Development colleagues at InterVISTAS to build and sustain air
carriers and routes that drive leisure and business tourism traffic vital to the economic health,
vitality, and future of tourism dependent destinations.
For the past 18 years, this team has worked extensively on growing destination visitor traffic
and transit visitor traffic for tourism destinations worldwide and has produced strategic plans,
marketing and business development plans, and travel market and travel policy research for
key tourism destinations such as San Antonio, Fort Myers, Puerto Rico, The Bahamas,
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InterVISTAS
Dominican Republic, Saint Martin, Aruba and Bermuda. The tourism team has also conducted
strategic plans, business development plans, and other tourism assignments throughout
Canada as well as Panama, Chile, Australia, New Zealand, China, and India.
InterVISTAS'Tourism team has assisted destination marketing organizations, convention and
visitors bureaus, national and regional tourism organizations, outbound and receptive tour
operators and other travel organizations, the accommodations sector, attractions, government
agencies, economic development authorities, airports and ports, airlines, rail carriers, transit
operators, and numerous other clients.
Currently, InterVISTAS' Tourism Development Group is leading Destination NEXT, a new future
visioning and strategic planning initiative for destination marketing organizations around the
world. Destination NEXT has been launched in partnership with Destination Marketing
Association International (DMAI). DMAI is the world's largest association for official destination
marketing organizations, convention and visitors bureaus (CVBs) and tourism boards,
representing nearly 600 tourism destinations in 15 countries.
The Tourism Development Group is also working with GainingEdge and simpleview to deliver
ARENA, a new world-wide performance benchmarking program for destination marketing
organizations. This initiative is also being developed in partnership with DMAL
1.8 Review of key route wins
The sampling below of InterVISTAS route wins reflects a wide range of carriers across our
portfolio of domestic and international air service development clients. Note that more recent
wins are highlighted in red:
Aer Lingus: Dublin (DUB) to Washington (IAD)
Aero Mexico: Boston (DOS) to Mexico City (MEX)
Air China: Houston (IAH) to Beijing (PEK)
Air France: Minneapolis/St. Paul (MSP) to Paris (CDG)
Alaska: Fairbanks (FAI) to Portland (PDX), Santa Barbara (5BA) to Portland (PDX);
Minneapolis/St. Paul (MSP), Philadelphia (PHL) and San Antonio (SAT) to Seattle (SEA);
Oklahoma City (OKC) to Seattle (SEA)
Allegiant: Niagara Falls (AG) to St. Petersburg (PIE), Punta Gorda (PGD), and Orlando (SFB);
Elmira Corning (ELM) to Orlando Sanford (SFB) and Fort Lauderdale (FLL)
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InterV(STAS
American: Cleveland (CLE) to Miami (MIA); Charlottesville (CHO) and Kitchener/Waterloo (YKF)
to Chicago -O'Hare (ORD); New York (JFK) to Budapest (BUD); Columbus (CSG) to Dallas Ft.
Worth (DFW); Miami (MIA) to Frankfurt (FRA)
Cape Air: SCASDP Grant for Providence (PVD) and Puerto Rico Tourism Company
Cathay Pacific: Boston (BOS) to Hong Kong (HKG)
Condor Minneapolis -St. Paul (MSP) to Frankfurt (FRA); Providence/Rhode Island (PVD) to
Frankfurt (FRA)
Delta: Charlottesville (CHO) and Roanoke (ROA) to New York (LGA); Elmira/Corning (ELM) to
New York (JFK); Providence (PVD) to Washington National (DCA) and Raleigh/Durham (RDU);
Syracuse (SYR) to Minneapolis -St. Paul (MSP)
El Al: Boston (805) to Tel Aviv (TLV)
Etihad: Abu Dhabi (AUH) to Dar es Salaam (DAR)
EVA Air: Houston (IAH) to Taipei (TPE)
flydubai: Dubai (DXB) to Dar es Salaam (DAR), Dubai (DXB) to Kilimanjaro ()RO)
Hainan: Shanghai (PVG) to Boston (BOS)
Icelandair: Anchorage (ANC) to Reykjavik (KEF)
Intedet: Orange County (SNA) to Guadalajara (GDL) and Mexico City (MEX); San Antonio (SAT)
to Mexico City (MEX) and Toluca (TLC)
JetBlue: Seattle (SEA) to Anchorage (ANC), Philadelphia (PHL) to Boston (BOS); Providence
(PVD) to Fort Lauderdale (FLL) and Orlando (MCO); Anchorage (ANC) to Long Beach (LGB)
Korean Air: Seoul (ICN) to Houston (IAH)
Porter: Sault Ste. Marie (YAM) to Toronto -Billy Bishop (YTZ)
Qatar Airways: Philadelphia (PHL) to Doha (DOH); Dar es Salaam (DAR) to Doha (DOH);
Kilimanjaro (JRO) to Doha (DOH)
Southwest/AlrTran: Oklahoma City (OKC) to Chicago (MDW), Atlanta (ATL), and Orlando
(MCO); Orange County (SNA) to Mexico City (MEX) and Los Cabos (SJD); Providence (PVD) to
Denver (DEN); San Antonio (SAT) to Cancun (CUN) and Mexico City (MEX); Orange County (SNA)
to Houston Hobby (HOU); Houston Hobby (HOU) to Charlotte (CLT), Washington Reagan (DCA),
and Pittsburgh (PIT); Memphis (MEM) to Baltimore/Washington (BWI), Chicago (MDW),
Orlando (MCO), Houston Hobby (HOU), and Tampa (TPA); Pensacola (PNS) to Houston (HOU)
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Inter VISTAS
and Nashville (BNA); Columbus (CMH) to Oakland (OAK) and Boston (BOS); San Jose, Costa Rica
(SJO)to Baltimore/Washington (BWI)
Spirit: Philadelphia (PHL) to Dallas/Fort Worth (DFW), Myrtle Beach (MYR), and Las Vegas (LAS);
Niagara Falls (IAG) to Ft. Lauderdale (FLL) and Myrtle Beach (MYR); Minneapolis/St. Paul (MSP)
to Dallas/Fort Worth (DFW), Ft. Lauderdale (FLL), Las Vegas (LAS), Chicago O'Hare (ORD), and
Fort Myers (RSW)
Sun Country: Minneapolis-5t. Paul (MSP) to Savannah (SAV) and Gulfport -Biloxi (GPT)
Turkish Airlines: Houston (IAH) to Istanbul (IST); Dar es Salaam (DAR) to Istanbul (IST);
Kilimanjaro (JRO) to Istanbul (IST)
United: San Jose, Costa Rica (SJO) to Chicago (ORD) and Washington (IAD); Kelowna (YKF) to Los
Angeles (LAX); Fayetteville (FAY) to Washington (IAD); Cleveland (CLE) to Green Bay (GRB) and
Norfolk (ORF); Oklahoma City (OKC) to San Francisco (SFO); Houston (IAH) to Lagos (LOS);
Washington (IAD) to Dublin (DUB), Fairbanks (FAI) to Denver (DEN); Newark (EWR) to
Newcastle (NCL); Houston (IAH) to Tokyo (NRT); Denver (DEN) to Tokyo (NRT)
US Airways: Philadelphia (PHL) to San Antonio (SAT); Baton Rouge (BTR) to Charlotte (CLT);
Fayetteville, NC (FAY) and Pensacola (PNS) to Washington (DCA); Memphis (MEM) to
Washington (DCA); Oklahoma City (OKC) to Charlotte (CLT)
Virgin America: Philadelphia (PHL) to Los Angeles (LAX) and San Francisco (SFO); Anchorage
(ANC) to San Francisco (SFO)
VivaAerobus: San Antonio (SAT) to Monterrey (MTY)
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2 Overview of air service at PSP
The current service pattern from PSP largely reflects two key attributes of the greater Palm
Springs region — its geographic profile as a population center on the outskirts of the Los
Angeles Basin as well as its status as a leading U.S. resort destination. For the year -ending
September 2015, PSP will offer on average 35 daily departures to 21 U.S. and Canadian
destinations. Domestic airlines serving PSP cover the range of airline business models, from
network carriers (American, Delta, United) to low cost/hybrid carriers (Alaska, Sun Country,
Virgin America) to ultra low cost carriers (Allegiant). In addition, the two primary Canadian
carriers —Air Canada and West)et —also serve the market with WestJet now operating non-
stop to five major Canadian markets. This range of service options results in a relatively
diverse competitive situation with three carriers (American, United, and Alaska) generating
more than 20% of overall PSP traffic share.
P5P's service pattern offers a moderately strong portfolio of major hub access, given the
overall size and scope of the local traffic base and state of the post -consolidation U.S. airline
industry. American (with US Airways) offers service to Phoenix as well as to its major mid-
continent hubs at Dallas -Fort Worth and Chicago. Delta offers access through its western
operations at Salt Lake City and Seattle as well as mid-continent hub access through
Minneapolis. United offers the most network breadth with service to five hubs, while
Alaska provides service into its hubs at both Portland and Seattle. Various low-cost and
ultra -low cost carriers also offer service into smaller hub/focus city operations.
One of the unique aspects of the PSP service profile is, of course, the very distinct seasonal
aspect of the schedule. The March 2015 daily departure count of 53 drops to a low of 17 by
July. While much of this is obviously driven by the regional climate and seasonal aspect of
the region's inbound traffic pattern, the seasonal loss of service to mid-continent hubs at
Chicago, Atlanta, Minneapolis -St. Paul, and Houston limits outbound options for the
region's residents and business community during the summer off-peak period.
With that being said, recent PSP service trends stand out as a positive outlier against
broader regional and national trends. Overall U.S. domestic departures are down 20+%
over a roughly ten year period (although seat trends are slightly less drastic), with an
accompanying trend towards service consolidation into larger metropolitan airports. In
Southern California, recent departure trends continue to show departure declines in
regional airports such SBA, BUR, LGB, and ONT—with moderating trends at SNA — and gains
at LAX and SAN. PSP stands alone across the region as generating recent departure gains
among the area's smaller regional facilities.
While much of PSP's recent service enhancement can be attributed to leisure and niche
carriers — including Westiet —the growth is also supported by a relatively strong fare profile.
Despite its strong leisure profile and location in Southern California —a region known for
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InterVISTAS_
relatively low domestic fares — PSP's domestic fare is nearly equal to that of the U.S.
domestic market as a whole (when adjusted for trip length) and is higher than most other
Southern California airports. This relative fare premium —while not always viewed as a
positive by the local traveling public — is helpful when presenting airline business cases for
potential new or seasonally enhanced service.
The list of top unserved domestic markets from PSP is heavy with longer -haul network
carrier hubs. Based solely on annual traffic (and excluding routes with regulatory issues),
the list includes Sacramento/SMF, Boston/BOS, Philadelphia/PHL, Detroit/DTW,
Newark/EWR, and Atlanta/ATL. While simply listing a market's top unserved airports based
on traffic is not always a proxy for top opportunities, a broader network carrier hub profile
from PSP does seem like a potential near -term ASD opportunity.
International commercial airline service from PSP currently consists solely of Air Canada and
WesUet service from Canada, all of which departs from pre -clearance Canadian cities. In
addition, we would propose to explore longer -term opportunities related to charter and
other types of non-scheduled service.
In summary, there appear to be clear air service development opportunities at PSP through
the coming years. First, developing a more robust off-peak seasonal service profile can
provide significant benefits to the local resident and business communities and is often
easier for an incumbent airline to initiate versus launching an entirely new market. In
addition, expanding the overall breadth of PSP's hub coverage would allow not only for
enhanced non-stop service options from PSP but also a broader range of one -stop
connecting options across the eastern and midwestern U.S. And finally, longer -term
Initiatives to attract major new carriers to the market — including Southwest and JetBlue —
will obviously remain a significant goal.
is
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3 The InterV/STAS air service development program
At InterVISTAS, we think of air service development as a joint program between consulting and
airport teams. While we are certainly flexible with this arrangement based on client
preference, we have found that a long-term program driven by a cohesive and adaptable
strategy is typically the best way to optimize air service development success.
While this is again flexible based on your team preference, a potential air service development
program often includes the following:
Initial market evaluation and onsite meeting. We often start new client relationships with an
initial onsite working session at the client airport. This allows for broad team discussions to
assist in developing an initial business plan as well as establish working relationships.
Annual business plan. Throughout the course of our engagements, we often develop annual
airport -specific business plans to best keep team ASD strategies in sync with current industry
conditions and opportunities. While flexible based on client preference, these business plans
typically consist of a detailed industry overview along with proposed goals and tactics for the
comingyear, If preferred, these business plans can also include an annual program budget to
facilitate more efficient spending throughout the year.
Business case presentations. At the heart of the InterVISTAS air service development program
is the airline business case presentation, which can range in size and scope depending on the
circumstance. As discussed previously, InterVISTAS presentation packages include not only
background community information and a full quantitative review of the aggregate local air
service market and competitive environment, but also (when appropriate) detailed strategic
route analyses which are designed to appeal to the decision logic of airline network planning
management.
Industry conferences. Industry conferences remain a primary tool to efficiently meet with a
broad range of incumbent and potential airlines in a centralized location. While the conference
landscape has changed in recent years, there are typically opportunities to attend up to two
primary airline/airport conferences within North America each year.
Headquarters meetings. While industry conferences remain important for high level
discussions, meetings at airline headquarters often provide a key opportunity to present the full
airport business case. Our extensive contacts throughout the industry facilitate access to
schedule such meetings across the range of domestic and international carriers.
Ad hoc analyses and industry briefings. Understanding ongoing and developing industry
trends is crucial to identifying and capitalizing on new air service opportunities. Such an
understanding requires more than just following the industry press— it also requires the ability
to identify and perform detailed analysis to best diagnose optimal courses of action. Our
proposed PSP team has combined decades of experience in developing such ad hoc analysis in a
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InterVfSTAS
way to not only transfer knowledge to the airport team - but also incorporate results into an
ongoing ASD program.
Performance data. As detailed above, we subscribe to a wide range of industry data sources
including the Diio online portal. We can work with you to develop a formal reporting program
to keep you informed of developing performance trends and schedule updates, and we will
always utilize the latest data throughout all of business case presentations.
Catchment area analyses/leakage studies. As discussed in Section 1.5, the ability to identify a
region's "true" market size for its relevant catchment area — and effectively incorporate this
information into forecasts and business case presentations for airlines — plays a critical role in
an effective air service development program. We have developed a methodology which
strikes an appropriate balance between data and analytical integrity and efficiency/pricing in
order to facilitate working within an overall ASD budget.
Other. As detailed previously, the InterV/STAS team also offers the capability to generate a
wide range of other deliverables, including economic impact analyses, tourism market
development and support services, and other value-added products. In addition, we provide
continuous ad hoc support as industry conditions warrant and as threats and opportunities
arise.
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InterVISTAS
. rn..n � a PeMYe.bwn�Yv
4 Proposed project team
While a broad range of InterVISTAS team members will be at your disposal throughout the term
of the engagement, we propose the following primary PSP team:
Chris Warren, Vice President — Project Manager (Orange County, California)
We propose Chris Warren, an InterVISTAS Vice President who works from an office in Orange
County, as our Project Manager for this engagement.
Chris brings approximately 17 years of commercial aviation industry experience split between
various airline and consulting roles. He began his airline career in the post -MBA management
program at American Airlines (1994-98), where he served in a variety of planning and finance
related positions. Following a brief stint at TWA, Chris spent several years as the Senior
Director of Strategic Planning at ExpressJet Airlines (the $2 billion+ regional carrier spinoff from
Continental), where he had responsibility for a range of commercial functions. As part of this
role, Chris developed the majority of the business plan for the ExpressJet Airlines line of
business startup which served several markets throughout California In 2007-08 (he also had
responsibility for the planning, scheduling, pricing, and revenue management functions). This
experience provided Chris with a deep understanding of the Southern California airline
marketplace.
Chris has worked over the past several years as an industry consultant, including with
InterVISTAS since 2011. In his current role as a Vice President in our Airline Strategies at
Airports group, he has primary responsibility for developing and executing air service
development strategies for a number of airports of various sizes— including Minneapolis/St.
Paul, Columbus (OH), Anchorage, Oklahoma City, and others. Throughout these engagements,
Chris has utilized his deep analytical and strategic background to drive new and innovative
presentations for proposed new routes, with several recent successes despite the ongoing
airline "capacity constraint" environment.
In addition, Chris brings significant experience across other consulting engagements — including
domestic and international network strategy assignments, market/catchment area analyses,
long-term traffic and strategic forecasting projects, and others. He is also an accomplished
public speaker, particularly to business community and civic related audiences.
Chris earned an MBA in finance and marketing from Rice University in Houston. We feel that
his combination of consulting, network planning, and market analysis based experience — as
well as his unique expertise in West Coast and regional aviation -related Issues —will make him
an ideal project manager for this engagement.
tG
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InterVlSTAS
.r ngnr.Y Mq'tluaJa+up4Yv
Sabine Reim, Vice President — International Strategic Advisor (London and Washington DC)
Dr. Reim's 17-year career with British Airways included positions in Strategy, Customer Services,
Revenue Management, and Network Development. Dr. Reim led route development for British
Airways' transatlantic network and is a founding member of the joint Network Development
Team for American Airlines, British Airways and Iberia. As part of her transatlantic Network
Development assignment, Dr. Reim initiated start-up of new British Airways services between
London -Heathrow and San Diego, California (June 2011) as well as London -Heathrow and
Austin, Texas (March 2014). In her most recent British Airways posting, Dr. Reim was in charge
of Network Development for British Airways' African, Middle Eastern and Central Asian routes.
As part of that assignment, she led the post -acquisition integration of BMI's long -haul routes
into British Airways' network. She also devised a five-year growth plan as well as a regional
realignment strategy.
Dr. Reim leads InterVlSTAS' Air Service Development practice and specializes in advising on
long -haul route/strategy development and emerging market network opportunities. Dr. Reim
currently provides air service development work for airports in Africa, the Americas, and
Europe. She is Project Managerfor Southwest Florida International Airport (USA), the Tanzania
Airports Authority and Kilimanjaro Airport (Tanzania), Groningen (The Netherlands), and
Shannon (Ireland). In the Americas, Dr. Reim's extensive, first-hand long -haul network
development experience is used in advisory functions on key projects, leading overall network
advisory for Washington —Dulles and long -haul market development for Denver, Miami, and San
Josh (Costa Rica). Since joining InterV/STAS, Dr. Reim has also worked on air service
development projects for Boston, Budapest (Hungary), Buffalo -Niagara Falls, Columbus, Dallas —
Fort Worth, Frankfurt (Germany), and Lisbon (Portugal).
Dr. Reim has first-hand experience setting up new air service from visualization through to
Implementation, and has a proven track record of realizing the value of airlines and airports
forging strong partnerships with a view to ensuring long-term success of new and existing
routes.
Dr. Reim splits her time between London, U.K., and Washington, D.C.
Maria Fabrikarakis, Director —Strategic and Analytical Lead (Boston)
Maria Fabrikarakis is an aviation enthusiast who helps airport and airline clients worldwide by
identifying and analyzing new air service opportunities. She specializes in air traffic demand
and revenue forecasting, air service development, and airline route planning. Her expertise is
in the quantification of passengers and revenue projections and the development of operating
airline cost expectations for proposed route opportunities. Maria's detailed analysis and
compelling business cases have been instrumental in creating numerous successful air service
plans resulting in new airline service for many clients including the first transpacific and Middle
Eastern route for two major U.S. hubs. Maria also conducts analyses that support other
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InterVISTAS
strategic planning efforts for airports including gate utilization studies, economic impact
analyses, leakage studies, cargo feasibility studies, and fleet forecasts.
Paul Clark, Vice President —Tourism Market Development and Related Activity (Vancouver)
Mr. Clark works closely with the Air Service Development team for assignments in destinations
that have a significant tourism economy. Among other activities, he supports the Air Service
Development team by advising on tourism market opportunities associated with specific
scheduled air services to a destination, and assisting charter air service pursuits via initiatives
such as senior management interviews/market opportunity assessments with key tour
operators and leisure charter airlines.
Mr. Clark has more than 25 years management experience in the tourism and travel sector,
with expertise in market development plans and strategic plans for tourism destinations and
other industry organizations, travel consumer market research, strategy session facilitation, and
industry/stakeholder consultations. He has developed business solutions for city and resort
destination marketing organizations, regional and national tourism organizations, tourism
sector associations and tour operators, as well as cruise port and airport management groups.
He has designed, managed and supported tourism/travel projects in the U.S. (Florida, Texas,
Indiana), Canada, Dominican Republic, The Bahamas, Saint Martin, Panama, Chile, China, India,
Australia, New Zealand, and the Canary Islands. Paul also developed international tourism
strategies for the host destinations of the 2010 Vancouver Olympics while on executive
secondment with Tourism British Columbia.
Paul has extensive multi -year experience in consumer research programs on travel, with more
than 100,000 travel surveys and 50 focus groups conducted with travellers from North America,
the Caribbean, South America, Asia, Europe, and Australia/New Zealand.
In addition to his tourism and travel consulting career, Paul has held senior travel industry roles
In consumer research and marketing/business development with destination marketing
organizations (Tourism Whistler and Tourism British Columbia), with a boutique tour operator
and travel agency selling sunspots, golf, adventure travel and cruises (Forbes Travel
International), and with an international airport management group (Vancouver Airport
Authority).
We also propose to utilize junior level staff as appropriate to complete air service
development initiatives in the most efficient manner possible (with your approval).
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5 Proposed pricing and budget
[June 23 update] Per recent discussions, we have adjusted our pricing proposal below to
reflect a more traditional variable -based structure. Proposed hourly rates are presented below:
Team member/title
Chris Warren/Project Manager
Sabine Reim/Vice President
Paul Clark/Vice President
Maria fabrikarakis/Director
Staff Consultant or Senior Analyst
Other analyst/graphics support
Proposed hourly rate
$235
$225
$225
$205
$175
$160
In addition, we present the following estimates for primary deliverables as described in this
proposal. We will always present you with a task -specific pricing proposal before commencing
any formal engagement.
Type of assignment
Initial/kick-off market analysis and onsite meeting
Annual air service development business plan (post -Year 1)
Preparation/representation at majorASD conference"
Preparation/representation at airline HQ meeting (or at airline request) •"
Additional formal route forecast within standard business case
Catchment area analysis/leakage study
Quarterly data reporting program
Specialized/ad hoc study (including MRG support)
Proposed unit price*
$8,000
$7,000
$8,000
$10,000
$7,000
$17,000-$20,000
$2,000/quarter
Variable
Does not include travel and related expenses (including travel time).
" Includes standard business case analysis (formal route forecast not included in estimate)
***Assumes one formal route forecast
Also per our recent discussions, here is a representative example of how the initial two years of
a program can be constructed. We fully understand that there will be significant variability
dependent on market conditions and potential threats/opportunities.
to
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Inter VISTAS
. Y.. m w ape�a.�wnaaeim
Year 1 (sample)
Initial working session and planning
$6,000
Catchment area analysis/leakage study
$16,000
Representation at major ASD conference
$8,000
Two airline headquarters visits*
$20,000
Ad hoc market analysis/MRG support
$10,000
Onaoina airline outreach and air service development*
$20,000
Total
$80,000
' see below for description
Price estimates do not include expenses
Year 2 (sample)
Annual business/strotegic plan
$7,000
Representation at two majorASD conferences**
$16,000
Two airline headquarters visits*
$20,000
Ad hoc market analysis/MRG support
$10,000
Onaoino airline outreach and air service develoament*
520.000
Total
$73,000
' see below for description
" assumes biennial attendance at second industry conference In addition to lump5tart
Price estimates do not include expenses
* Note on airline outreach and headquarters meetings
Our headquarters visits and airline outreach will focus on a series of key PSP air service
priorities such as non-stop service to the East Coast, enhanced non -peak season service
patterns, upgraded aircraft equipment, improved market coverage, and other key initiatives.
While the tables above are presented for example purposes, they illustrate how a $70,000-
$80,000 annual budget can be utilized to develop a robust and ongoing air service development
program.
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InterVISTA5
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6 Next steps
Thank you for the opportunity to present you with this proposal.
As mentioned previously, we would appreciate the opportunity to present to you in person a
summary of this proposal as well as answer any questions that you might have. Please feel free
to contact me at any time with any questions and/or to discuss next steps.
Chris Warren
Vice President, Air Service Development
Phone: 949-204-0912
E-mail: Chris.Warren@intervistas.com
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InterVISTAS
a company of Royal HaskoningDHV
Prepared by
InterVISTAS Consulting Inc
1150 Connecticut Ave, NW
Suite 601
Washington, DC 20036
USA
Telephone: +1-202-688-2220
Facsimile: +1-202.688-2225
www.intervistas.com
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