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C'q</FORN�P CITY COUNCIL STAFF REPORT
DATE: February 20, 2013 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 2 TO AGREEMENT NO. 6256 WITH
PARSONS BRINCKERHOFF, INC. FOR AIRPORT PROFESSIONAL
SERVICES.
FROM: David H. Ready, City Manager
BY: AIRPORT
SUMMARY
The City Council will consider an amendment to the professional services agreement
with Parsons Brinckerhoff Aviation Inc., for consulting services related to the
development of a new Palm Springs International Use and Lease Agreements and
conceptual design development for future rental car facility improvements.
RECOMMENDATION:
1. Approve Contract Amendment No. 2 to Parsons Brinkerhoff Inc. Agreement No.
6256 Airport Professional Consulting for additional services in the development
of a new Airline Use and Lease Agreement, and engineering services for
conceptual design development related to future improvements of the rental car
facilities, in an amount not to exceed $110,550.00.
2. Authorize the City Manager to execute the amendment to the agreement.
3. Authorize the City Manager to approve and execute change orders in an amount
not to exceed ten percent (10%) of the total contract amount, as required, to
address changes in the project scope.
STAFF ANALYSIS
In July, 2004 an Airport Use and Lease Agreement was developed and recommended
by the Airport Commission and ratified by the City Council. This term of the Standard
Airport Use and Lease Agreement was for 10-years and is set to expire in June of 2014.
Since the promulgation of this agreement, both the industry and the Palm Springs
ITEM NO.
City Council Staff Report
February 20, 2013 -- Page 2
Contract Amendment No. 2—Parsons Brinckerhoff, Inc.
Airport Professional Services
International Airport have undergone considerable changes. The cumulative effect of
these changes warrant a thorough evaluation during the development and negotiation of
a new airline use agreement, to ensure it accurately reflects the current working
environment of today and more adequately supports the needs of both the airlines and
the airport.
The Airport Commission at its January meeting voted in full support of utilizing the
airport's aviation consultants to assist in this process by providing: cost center analysis,
benchmarking analysis of airports similar in size and regional comparisons,
incentivization and term recommendations, and other services pertinent to formulating
the most optimum agreement. Parsons Brinkerhoff has a team of professionals that
specialize in consulting airports on financial matters including new airline agreements.
This amendment also includes professional services to aid in developing concept
alternatives for future rental car facility improvements. Parsons Brinkerhoff has an
extensive resume working at airports on car rental facility programs, including a current
project at San Diego International.
A new Airport Master Plan, anticipated to be submitted to the City Council for approval
in fall of 2013, includes the planning for a landside car rental facility improvement
program that will enable the Palm Springs International Airport to sufficiently address
longer and short term growing demands. The plan identifies several improvements to
car rental facilities and infrastructure that need to be addressed in the short term. One
of the key improvements of this program includes some form of building addition on the
South terminal end in order to relieve baggage claim constraints and provide for a new
car rental customer service area with new counters and offices. In addition to a building
expansion, the car rental ready lot would undergo expansion to create additional vehicle
pickup and drop-off spaces. If there is sufficient room to accommodate it, the project
may include facilities for vehicle washing and cleaning, fueling, and minor maintenance.
The Palm Springs International Airport has been experiencing historic passenger growth
and 2012 was a record year. Due to the baggage claim area identified as the most
constrained area in the terminal building, this unanticipated spike in record passenger
activity is ample justification to begin the programmatic concept development. The
timing of addressing these growth issues has now become more critical. In order to
position this capital improvement project for immediate commencement of full design
following the City Council approval of the master plan, staff is recommending that a
contract amendment with Parsons Brinkerhoff be ratified in order to produce the
following scope of work:
✓ Create a functional program report summarizing the operational requirements of
the area.
✓ Analyze pedestrian, passenger and vehicle flow to determine optimum flow.
✓ Develop functional concept alternatives.
✓ Develop an Order-of Magnitude cost estimate of each alternative.
02
City Council Staff Report
February 20, 2013 — Page 3
Contract Amendment No. 2— Parsons Brinckerhoff, Inc.
Airport Professional Services
✓ Create a schematic (concept) of the preferred alternatives.
This information generated by the third parry consultant professional will then allow the
selection of the most optimum and cost effective alternatives that will meet the forecast
growth increases.
Parsons Brinkerhoff is the airport's aviation consulting firm under an agreement for five
years and it includes the hourly base line rate for an array of different disciplines. A
contract amendment is necessary to specifically add this airline use and lease
agreement project and the rental car facility study to current professional services
agreement. The detailed scope has been developed by staff and the fee sums
calculated according to the level of effort.
FISCAL IMPACT:
The Fiscal Year 2012/2013 budget has funding for consultant research and program
development services in account 416 6501 56144 and account 416 6501 50000.
In March, 2007, in anticipation of the eventual need to expand car rental facilities, the
City Council authorized the collection of a $10 per transaction Customer Facility Charge
(CFC) collected on each car rental transaction. Today that fund has a balance of
$9 million to fund these upcoming improvements. No further work or expenditure, other
than this conceptual development, will occur until the City Council approves the Master
Plan and the full design agreements for specific project elements.
V� ohm
Thomas Ian,
Executive Director, Airport
David H. Ready, C ager
Attachment: Amendment No. 2
03
AMENDMENT NO. 2
TO AGREEMENT NO. 6256 —AVIATION CONSULTING SERVICES
PALM SPRINGS INTERNATIONAL AIRPORT
THIS SECOND AMENDMENT is made and entered into as of the 20th day of
February, 2013 (the "effective date") by and between the CITY OF PALM SPRINGS, a
California charter city and municipal corporation ("City"), and Parsons Brinckerhoff, Inc.,
(herein "Consultant') as follows:
RECITALS
WHEREAS, the City owns and operates Palm Springs International Airport ("Air-
port") located in Palm Springs, California for the convenience of the general public.
WHEREAS, City and Consultant entered into that certain Consulting Services
Agreement No. 6256 for Aviation Consulting Services ("Agreement'), as duly amended
from time to time; and
WHEREAS, the parties wish to amend the Agreement to increase work assign-
ments.
NOW, THEREFORE, for good and sufficient consideration, the parties agree as
follows:
1. Exhibit "A", Scope of Services, is hereby amended to add the following on-call
Consulting Services for additional resident professional services for the Airline
Use and Lease Agreement, and provide engineering services for a concept study
for facility improvements of the rental car service areas at the airport in an
amount not to exceed $110,550.00, as described in the proposals from the Con-
sultant, dated January 17, 2013 and February 7, 2013 respectively.
Task 4 —Airline Use and Lease Agreement Consulting $62,550.00
Task 5 — Rental Car Facility Conceptual Study $48,000.00
2. The agreement shall allow a total project sum not to exceed $110,550.00 for pro-
fessional services relating to the planning and engineering services of Tasks 4
and 5.
Except as previously modified herein, all other provisions of the Agreement shall remain
unmodified in full force and effect.
[SIGNATURE PAGE FOLLOWS] 04
Parsons Brinckerhoff Inc.
February 20, 2013— Page 2
Palm Springs International Airport
IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first
written above.
ATTEST: CITY OF PALM SPRINGS
a municipal corporation
By: By:
City Clerk City Manager
APPROVED TO FORM:
By:
City Attorney
CONTRACTOR: Check one: Individual_Partnership_Corporation
Corporations require two notarized_signatures: One from each of the following: A. Chairman of Board,
President, or any Vice President: AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,
or Chief Financial Officer.
By: By:
Signature (notarized) Signature (notarized)
Title: Title:
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personally appeared personally appeared who
proved to me on the basis of satisfactory who proved to me on basis of satisfactory evi-
dence to be the person(s)whose name(s) evidence to be the person(s)whose names (s)
name(s)is/are subscribed to the within instrument is/are subscribed to the within instrument and
acknowledged to me that he/she/they and acknowledged to me that he/she/they exe-
cuted the same in he/her/their authorized executed the same in his/her/their authorized
capacity(is), and that by his/her/their sigma- capacity(is), and that by his/her/their signa-
ture(s) on the instrument the person(s), or the tares(s)on the instrument the person(s) or the
entity upon behalf of which the person(s) the entity upon behalf of which the person(s)
acted, executed the instrument. acted, executed the instrument.
I certify under PENALTY OF PERJURY I certify under PENALTY OF PERJURY under
the laws of the State of California that the under the laws of the State of California that the
foregoing paragraph is true and correct. foregoing paragraph is true and correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal: 05
pPA�R/ S/�OyN�S / 451 E.Vand Suit Way
BRINVIWR/" OF Suite106
San Bernardino,CA 92408
Main:909-B88-1?O6
Fax: 213-362-9480
wwwpbworld corn
January 17,2013
Mr.Thomas Nolan
Executive Director
Palm Springs International Airport
3400 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Re: Scope and Budget for Airline Use and Lease Agreement Consulting-Task 4
Dear Mr. Nolan,
Parsons Brinkerhoff, Inc. (Engineer)is pleased to present this request for notice to proceed on the
following scope of services for airline use and lease agreement(Airline Agreement)negotiations
assistance for the Palm Springs International Airport(PSP).This project is Task Order 4 on our on-call
contract with PSP(PS Contract No. 12470, City Contract No.6262). A description of the project,scrape
of work and compensation for services are provided in the remainder of this letter.
Project Description
PSP will be negotiating a new Airline Agreement with the air carvers providing service to the airport. This
agreement will contain provisions regarding rates and charges, regulations regarding the use of property,
and the operational and maintenance responsibility between the airport and the air carriers. In order to
assist PSP in the development of a new agreement that meets its operational performance and financial
objectives, Parsons Brinckerhoff will evaluate those objectives within the context of industry practices and
standards to develop a recommended structure, key elements, and draft outline document of the new
agreement.
Scope of Work
To provide Airline Agreement negotiations assistance, the Parsons Brinkerhoff will provide the following
services.
1. Prepare for Airline Agreement Negotiations—This task will focus on identifying goals and
evaluating alternative approaches that airport management should consider changing in the new
Airline Agreement.
a. Review Existing Materials—Parsons Brinckerhoff will review the existing Airline Agreement,
budget, financial performance, capital requirements and flight and passenger trends with
projections of future years with the objective to recommend a customized agreement type(i.e.
compensatory or hybrid model to accommodate future technologies and industry standards). We
will also conduct research and evaluate information regarding approaches used at other airports
(i.e. common use terminal equipment(CUTE)),within the context of the available terminal
facilities.
b. Benchmark of peer airports—Parsons Brinkerhoff will prepare a benchmarking analysis of the
airline costs at several(at least 10) airports similar to PSP in size, airport-type or proximity. This
analysis will evaluate necessary cost responsibilities for the airport or airlines in the cost sharing
model. Recommendations are to be incorporated in a new agreement to best determine how
capital improvements can result in enhanced capacity of the airport facilities. The comparable
airports will be selected together with PSP and will include resort location airports, as well as
those in the Southern California region. The benchmarking analysis will include the airline cost
per enplanement, landing fee, terminal rental rates,and the rate-making methodology employed
06
Over a Century or
Enginewing Excellence
Mr.Thomas Nolan
January 17, 2013
Page 2
by the airports. The airline costs per enplanement resulting from the various methodologies will
be compared with other airports in the region and with industry averages.
c. Conduct Workshop with Airport Management—Parsons Brinckerhoff will conduct a one-day
workshop with airport management to set the stage for the upcoming airline negotiations. The
workshop will concentrate on presenting the findings related to modifications to the Airline
Agreement, as well as assisting with the development of negotiations goals. These goals will be
prioritized and grouped into categories.
d. Make Recommendations for Modifications—Based on the review of the existing materials,
benchmarking analysis and input from the PSP team,Parsons Brinkerhoff will prepare a white
paper that identifies the specific areas necessary in a new airline agreement The paper will
provide justification for recommended changes. Information on various types of rates and charges
methodologies along with the treatment of revenues and expenses will be evaluated. The
risk/reward characteristics, including probable impact on airport net cash flow and the treatment
of debt service coverage, as well as a reasonable term for the agreement will be evaluated.
Deliverables: This task will deliver a complete comparison containing the detalls of the
benchmarking data,a white paper that provides a list of the recommendations for changes to
the Airline Agreement,as wait as workshop materials and resulting recommendations.
2. Incorporate Evaluation Results into Draft Airline Agreement—Parsons Brinkerhoff recognizes
the importance of the City's control and oversight of the required language in the new Airline
Agreement In accordance,we will develop draft language pertaining to key elements of the
agreement for use by the City's attorney reflecting the findings of the evaluation phase of this project
to successfully meet the airport's operational and financial requirements.
a. Outline New Airline Agreement's Overall Structure—The combination of the airport's operational
and financial requirements,benchmarking results of other airports' rates and charges
methodologies, and potential opportunities to define new approaches will be used to formulate an
overall agreement structure that defines the contractual relationship between PSP and its
commercial airlines. This step will be used by Parsons Brinkerhoff to address core approaches
(such as compensatory, residual, hybrid, or newly developed agreement structures)under which
key elements will be addressed.
b. Summarize Key Elements For New Agreement—In addition to key components of the previous
(existing) agreement, the evaluation phase will likely identify additional topics(e.g. affiliate
language, common use technology impact,alternate approaches to airline space assignment)
that are necessary to meet PSP operational and financial needs in future years.
c. Provide Draft Airline Agreement Language—Parsons Brinkerhoff will research sample language
used in airline use and lease documents completed at other airports that reflect the modifications
identified during the evaluation phase and in preparation for negotiation. The draft will include
recent language regarding the use of premises through accommodation, preferentiallcommon
use and reassignment of space, bankruptcy provisions, and methods to secure payments by the
airlines. The language will be provided in a way that can be used to outline the business terms of
the airline agreement, leaving the final provisions to PSP's legal representation.
d. Develop New Airline Agreement Draft Outline—Based on the above structure, key elements,
sample language, as well as decisions made regarding the goals and objectives identified during
the preparation for airline negotiations, we will develop an outline of the major provisions to be
included in the Airline Agreement. This agreement draft will focus solely on the contractual
issues between PSP and its tenant airlines and will defer to the City's legal document
requirements for such issues as indemnity,default provisions, and other topics. After the outline
is developed, Parsons Brinkerhoff will discuss the points with airport management and PSP's
legal representation and make revisions, if necessary, based on direction and feedback. 7
Over a Century of 0
Engineering Excellence
Mr.Thomas Nolan
January 17, 2013
Page 3
Deliverables: Parsons Srinckerhoff will deliver recommendations for overall structure,key
elements for incorporation,and a draft outline of the airline agreement including the changes
that are agreed to from PSP and C&y legal input and the management workshop,suitable for
use by the PSP's legal representation to finalise prior to negotiation with the airlines.
Compensation for Services
Parsons Brinckerhoff shall be for time and materials under"Scope of Work"in an amount not to exceed
sixty-two thousand five hundred and fifty dollars($62,550),which includes all labor, materials,
equipment, printing,outside services,travel costs, and incidentals as necessary to complete the work.
The following labor rates will be used for assigned staff.
Hourly
Staff Member Role Rate
Chuck McCormick Project Manager $251
Tracy Beach Task Manager $150
Tara Hrbacek Advisor 161
TBD Analvst $98
Schedule of Completion
The Engineer estimates that it will take approximately 350 to 400 hours over a calendar period of three
months to complete the"Scope of Work°following notice to proceed as long as meetings with PSP
management are scheduled In a timely manner. We will develop a more detailed project schedule along
with PSP management during the initial kickoff meeting/conference call.
Thank you for this opportunity to be of service to you. If you have any questions, please do not hesitate
to contact me at 909-808-1106.
Best Regards,
PARSONS BRINCKFRHOFF,Inc.
b::v.........
Douglas B. Sawyer
Senior Vice President
Cc: C. McCormick
T. Beach
Over a Century of 08
Engineedag Excellence
PARSONS Parsons Brinkerhoff 451 E. Vanderbift Way
Suits00
BRINCKFA OF San Bernardino,CA 92408
Main:9W-888-1106
Fax: 213-362-9480
February 7, 2013
Mr.Thomas Nolan
Executive Director
Palm Springs International Airport
3400 E.Tahquitz Canyon Way
Palm Springs, CA 92262
RE: Scope and Budget for Rental Car Facility Conceptual Study-Task 5
Dear Mr. Nolan:
Parsons Brinckerholf, Inc. (Engineer) is pleased to present this request for notice to proceed on the
following scope of services for a Conceptual Study of the Rental Car Facility at PSP. As requested in
our 1117/13 telephone conference call, we have developed the following scope and budget based
upon our current understanding of the project and as described herein.
PROJECT DESCRIPTION
Brief summary of the 1117/13 conference call:
1. 7 Rent-A-Car(RAC)companies(Hertz, National/Alamo,Avis, Budget, Enterprise, Dollar, Thrifty)
currently operate a ready/return car rental operation on airport at the northern end of the terminal
bag claim and adjacent to the taxi pool.
2. Consensus reached by the RACs to provide improvements to their existing Ready/Retum lot
3. This improvement is part of the current draft Master Plan.
4. The airport wishes to explore some options to develop 2 to 4 concepts at a 10%to 15% pre-
concept level along with an order-of-magnitude estimate to address issues and improvements to
the ready&return lot shown on the attached drawing.
5. The draft master plan calls for the bag claim to be expanded further north(length to be
determined).
6. The airport wants to increase the capacity of the site by evaluating:
1) A more efficient layout based on existing operations.
2) Potentially expand the Ready lot by occupying the site where the Customs&Borders(TSA)
building is located,with provisions for its relocation.
3) At-grade parking is preferable; however, consider a supported deck if there is not adequate
space, taking into account that the master plan to expand the bag room will compress the
Ready Lot as well as extend the airside limit into the existing lot. Important to maintain
pedestrian access
7. PSP is among the top 3 to 4 airports with rental car transactions of 180,000/yr, very busy at
peaks.
8. A site visit to the airport is recommended to visualize the operation of the rental car,taxi pool
and other transportation modes as well as obtain a better understanding of the issues and
airport concerns and expectations.
SCOPE OF SERVICES
The scope of this study consists of the following professional engineering services:
• Review available background information, including draft master plan, traffic study reports,and
available drawings.
Over a Century of Q Engineering Excellence
PARSONS
BR/NCKERNOFF
Mr. Thomas Nolan
January 24,2013
Page 2 of 3
• Consult with the Owner and rental car agencies(if needed)to verify the RAC operation and
concerns.
• Visit the site and participate in coordination meetings/conference calls with the Owner to confirm
study requirements.
* Develop two(2)to three(3)functional layout alternatives to show proposed traffic circulation
patterns, R/R parking space layout,taxi pool options, including provisions for extending the
terminal building and expanding the parking lot into the TSA building and employee lot.
• Develop atematives for garage floor deck to show size and height, number of cars, levels,
parking stalls and locations and dimensions of such features as stairways/elevator(s),exits and
entrances, and access to the terminal.
• Analyze pedestrian movements for each option from the modified lot to the terminal.
• Develop a conceptual level order-of-magnitude estimate(OME).
• Develop a functional program report/memo summarizing the program requirements and
alternatives available to the Owner including recommendations for further action.
SCHEDULE
It is anticipated that this study will be completed in approximately 4 to 6 weeks from notice-to-proceed
(NTP). This schedule is tentative and can be adjusted based on the Owner's schedule.
Week 1 to 3: Perform one site visit with the Owner, attend meetings, discuss requirements,confirm
understanding and expectations, review available information, start development of
Option 1.
Week 4&5: Study and develop Option 1.
Weeks 6 to 9: Study and develop additional options and submit draft layouts; present and discuss
with airport.
Weeks 10 to 20: Develop OME,finalize options, prepare and submit draft report; finalize report
incorporating review comments.
COMPENSATION
Based on our current understanding of this task and the defined Scope of Services contained herein,
our proposed not-to-exceed budget based on time and materials for these services is estimated at—
fortyeight thousand dollars ($48,000), which includes all labor, materials, equipment, printing, outside
services,travel (two trips for two people), and incidentals as necessary to complete the work. The
following labor rates will be used for assigned staff.
Staff Member Role Hourly Rate
Chuck McCormick Project Manager $251
Camille Bechara Task manager $292
John Carter Sr. Supervising Eng. $217
Brian DiStasio CADD Designer $132
Over Century of
Engineering Excellence 1 (�
PARSONS
BRINICKERHOFF
Mr.Thomas Nolan
January 24,2013
Page 3 of 3
Thank you for this opportunity to be of service to you If you have any questions, please do not
hesitate to call me at(909)8W1106.
Sincerely,
PARSONS BRINCKERHOFF,INC.
Douglas B. Sawyer
Area Manager, Senior Vice President
cc: C. Bachars.C. McCormick, File
Over Centurryy of
Engbeeft Excsfterrce 1