HomeMy WebLinkAbout2006-05-10 STAFF REPORTS SS1A City Of Palm Springs ROBERT H. ELSNER, CHAIRMAN
Comicil/Cabinet Meeting �t,f;r p a Palm Springs International Airport Commission
May 10, 2006 if , C:; P;1LP'd SPfi1 1f,'.
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I. Staff Reorganization—Realign d„staIT with operational requirements and future growth. This action
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was the 6th Amendment to t to 4 1pcaf`on Positions and Compensation Plan for 2005 —2006, resulting
in the elimination of one (1) Assistant Director of Aviation position, reclassifying the one (1)remaining
Assistant Director of Aviation position, reclassifying the Manager, Contracts & Leases position to Asset
Manager and lastly creating one (1) additional Airport Operations Specialist position. This action did
not result in an increase to the current authorized staffing level and further, the Airport realized a budget
savings this year of approximately$47,000. APPROVED BY THE PALM SPRINGS CITY COUNCIL
ON MARCH 22, 2006.
II. Commence "Hold Room" Project—Contract with the lowest responsive/responsible bidder was
executed May 1, 2006. Demolition of the existing"gate 19"was accomplished/completed in January,
2006 and the new apron (5-acres)was completed April 28, 2006 with final close-out expected by end of
May 2006. A notice to proceed (NTP) for the new regional terminal construction is expected to be
issued by June 1, 2006 and with an anticipated completion date of May 2007. All construction has
been/will be accomplished with Federal Grants.
III. Complete"Security/Screening Lane" Expansion Project—This project was completed in January
2006 and commenced operations in February 2006 with a certificate of occupancy issued April 4, 2006.
IV. Bond Re-Financing—Over the course of the past two years, staff has worked diligently to re-finance
approximately$12.1 in in PFC backed bonds driven by a need to release the City from a restrictive
covenant and to cure the city from technical default of the bonds (an outgrowth of expending reserves as
a result of the events of September 11). The sale was scheduled for and successfully sold on or about
April 18, 2006, subsequently the bonds were signed on April 27, 2006.
V. Continued Progress Toward"ATCT" Funding—A funding request/award to build/relocate the FAA
Air Traffic Control Tower(ATCT-TRACON) at PSP was initiated in 2005. Through the efforts of
Coingresswoman Bono, PSP received an"ear-mark" of$2.3 in. in 2006 via HR 3058. Working
cooperatively with the Congresswoman's staff, PSP continues to pursue the remainder of the anticipated
requirement (approximately$17 in.). Toward that end and regarding the expenditure of the $2.3 in.
award, The Office of Management &Budget(OMB) is in the process of developing a priority list for
national expenditures. PSP is awaiting the publication of the list.
VI. Airport 5-Year Capital Improvement Plan—As required by the Federal Aviation Administration
Airport Capital Improvement Plan (ACID)program for federally assisted airports. The total 5-year
request, plus the previously authorized$3.6 in in entitlement funds equal $44,450,000. The plan
incorporates necessary airfield maintenance projects but primarily focuses on a 5-year(multi-year) grant
encumbering the airports entitlement funds (approximately$3.6 m/year=$18 m) toward the build-out
of the airports domestic ticketing wing and construction of a fully automated remote explosive detection
system (EDS) building.
VII. 2006 Airport Improvement Grant(Discretionary) -Airport Improvement Program (All?) Grant 40,
Staff has requested from the FAA a$7.4 million dollar grant for the FFY06-07 budgetary cycle. At
95% fimding, the Airport's cost sharing will be $370,000. This grant will be primarily used for greatly
needed airfield improvements. ��At
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City Of Palm Springs ROBERT H. ELSNER, CHAIRMAN
Council/Cabinet Meeting Palm Springs International Airport Commission
May 10, 2006
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! VIII. Develop/Implement Minimum Standards—Over the course of 2005, staff has developed a set of
minimum standards for the Palm Springs International Airport. The Minimum Standards, a set of
standard operating procedures and minimum requirements primarily established to control general
aviation operations at an airport, were completed in December 2005 and submitted for internal/attorney
review. Review was completed in February 2006 and ordinance preparation commenced. The new City
ordinance (Section 16) will be presented to the Airport Commission and City Council in June, 2006
toward implementation by not-later-than July, 2006.
IX. Develop/Implement New Lease for Rental Car Agents—Anticipate new leases to go to City Council
by not-later-than June in anticipation of a July 1, 2006 start date. The Airport originally anticipated a
5% to 10% (increase in rent and how we define gross revenue) increase over 2006 budgeted for an
increase of approx. $185,405 to $370,811. However and upon bid opening, the Airport can now expect
an increase of approximately$1 m over the previous fiscal year!
X. Develop/Implement"Customer Facility Charge"—A provision contained within the new Lease for
the Rental Car Concession at the Airport is the implementation of a Customer Facility Charge (CFC).
This "charge"is a transaction fee of$10 for the express purpose of construction of a consolidated rental
car facility. Toward that end, the Airport is required to provide the rental car companies with a 60-day
notice prior to implementation. Prior to this, the Airport must first secure Airport Comrnission/City
Council approval of CFC implementation. The Airport, working with the City Attorney, is constructing
the necessary framework for this charge to be levied. The Airport anticipates implementation by not-
later-than 4`h quarter 2006.
XI. Develop/Implement"Comprehensive Airport Concession Program"—The plan will be completed
by May 31, 2006. Anticipate Airport Commission/City Council review/adoption by June/July 2006. If
the Rental Car Concession bid is an indicator of the increase the Airport may realize...it will be a very
good year for the Airport and the City of Palm Springs.
XII. Secure Federal Funding for Master Plan/Part 150/Environmental Assessment(2007)—As part of
the Airport's 5-year ACIP, submitted request to the Federal Aviation Administration, for FFY 2007, for
$2 in to provide for a new Master Plan/Part 150/Enviromnental Assessment commencing in 2007. The
FAA will advise as to the availability of funds by not-later-than first quarter of 2007.
XIII. Parking Structure Feasibility Study—Preliminary study to be completed by June 1, 2006.
XIV. Taxi "Starter" Pilot Program—Memorandum illustrating"3'a party" implementation provided to City
Manager 05-04-2006. Year one costs estimated to be $77,000, costs would be covered by raising the
"per-trip" fee from $1.00 to $2,50.
XV. Air Service Development- In 2004, the Airport surpassed 1,300,000 total passengers served for the
first time ever. In 2005, the Airport beat that record having served in excess of 1,400,000 passengers.
As of the first Is`quarter of calendar year 2006, the Airport again bested all previous years I't quarters
by an average of 3.8%.
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2005-2006
Mnna,�enuent overview: Viilagcfest is a profitable business That is a major weekly
attraction for both a local and tourist audience. It is caurently managed as an
administrative task within the harks and Recreation Department_Ali event is produced
each,week from an operational perspective with little tirnt or expertise available for
managing it as the market drives opporn:7,nity it can be. It is cmTently run by a part time
cutsourced acting administrator under the direction of the Director of L aii s and
Recreation.
appelC anN, o
, Villagefest needs sustained efforts towards revitalization of the events to
keep it fresh,new and exciting for both tourists and locals,which vvill drive trafnfnc,
increase revcnnre via fees and sales tax.io the city and create an opportunity for attracting
high qualit`j vendors.
®armi cD�ipetive�:
Run Villagg est as a➢rusimess,plan, create, execute a professionally well thought
out revenue and expense budget, and monitor both on a monthly basis.. Short-
term objective is a twenty percent grolem(one to two years) with a seven-figure
opportunity long terari(three to five years.)
Resolve and execute €i-Of re or?-aakntion. Filling the vacant position of
Coordinator to administrate and run the event weekly, foster vendor relations,
administrate billing,payment receipts,visual merchandising execution and to
execute tasks assigned . Find a sours° for marketing, sales deveto- ent, financial
planning and execution, short and Hong tcrrn planning. Advertising and sales
promotion planning and execution. This project may be outsornrced-to one or
more individuals as independent contractors...
Increase attendance. Draw and entertain Palm Springs, Coachella(Valley
residents and attract large numbers of tourists as amajor entertainment attraction
in Palm Sprhigs by increasing the breath of merchandise, food and entertainment.
Create a nrograw to excLte,iutcerest z hgviAve enistin verndorsa Identify those
vendors vve want to keep through, recognition,training, vendor meetings,
communication, sub committees and incentives._
Revelon n mreaefive new vendor reera3itment prow air to increase the quantiL�r
and quality of vendors.Especially-in-the fine arts crafts, ciahy fwA rerrif1_ d
far aers rnarket and_estertainment categories. Focus on better, wider product mix.
Use on site recruitment, direct trail, special event publications and association,
and current vendors. Make an all out effort to create a viable Certified Farmers
Market to add cachet, interest and traffic.
]aenease a vamntem, attendnnec with enryent and n2vv aapsea9e visitors trhrar
tlwertisin and sales promotion. Television, PTSBT co- op print advertising
programs, small space ads featuring leading and new vendors in local publications
and an on going PR campaign. Promote and foster co-op advertising and sales
promotion programs vvith co-op ads, special events, direct mail, and tourist events
with merchants, °SBT, convention center, art museum etc.
Hotel concierge program
Sales promotion materials at airports, hotels,restaurants
Special events calendar
apsitgn and execute a standardized v snit tneY claim lac nfatii®
Enerease variety and anpeal oft entertainment for jQs,hens and adults vvitl!F,ti
monthly calendar, staged setting and local talent.
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According to the United States Department of Agriculture Economic Research
Service,Farmers markets can be a boon for communities. Revitalizing downtown
areas, supporting local economy and creating a sense of Community. At a time
when local downtowns give way to shopping malls, big box chains, and
pedestrian filled streets and gated communities , markets are becoming local
gathering places and bring customers to downtown areas, generating revenue
for market vendors and nearby businesses.
For consumers, farmers markets provide a richer and more meaningful shopping
experience that a standard supermarket:. As a shopper walks down the farmers
market aisles she may chat with friends, have opportunity to get to know who
grew her food, learn where it was grown. The number one reason for her to shop
at a CFM is Quality.
She may meet people from diverse backgrounds. A farmers market also
provides a satisfying feast for the senses, with bright colors of produce and
flowers and the tantalizing tastes of just picked produce. Farmers markets give
customers a sense of connection with farmers, neighbors and the community.
California leads the nation in selling it's agricultural bounty through farmers
markets. CA farmers particapate in more than 350 year round markets.
California has over 400 CFM plus many non-certified markets. There are over
400 communities whith certified farmers markets and the numbers are growing
each year.
There is a boom in farmers markets nationwide, since 1994 their numbers have
grown almost 80% with more than 4,000 in operation in 2002. 19,000 farmers
sell their produce exclusively at Farmers Markets. This growth is in response to
increased consumer demand, not increased supply, for both fresh and
processed products, grains, fruits, vegetables, dairy products and meats. Sales
in natural foods stores approached 3.3 Billion in 1998, double what it was in
1995. Sales of organic and certified produce have also grown in convertional
supermarkets, to the tune of 576% in Houston, 300% in Baltimore, 210 in
Boston.
It is expected that growth rate will be 20 to 24% annually well into the next
decade.
Farmers Markets not only benefit communities, competition from large
corporations put small family farms at a disadvantage because the large
convertional corporations enter and dominate the distribution channels. Small
family farms and community markets like Palm Springs, are a natural
partnership. A certified farmers market concept is an effort to re-establish the
traditional line between farmers and consumers and CA CFM are the "real thing"
where genuine farmers sell their crops directly to the consumer.
Small community Farmers Markets achieve success in large part through
emphasizing customer service and developing strong personal relationships with
buyers. A distinct advantage to a small city downtown.
In San Diego County more than 6,000 farmers work to make agriculture a billion
dollar industry in that county. Many operate small family farms with 65%
harvesting new acres or less.
Today there are 125 CFM in the South Coast region, 80 in Los Angeles, 33 in
San Diego and 50 in the south eastern region including Desert Hot Springs. A
total of almost three hundred in surrounding southern California. Only one in the
Coachella Valley.
What makes CFM/Organic markets unique is that the cusumers it serves judge
food not only by the taste, price and appearance, but also by the social and
environmental benefits it represnets.
To Quote the local newspaper, How lucky will all of us be when there are two
official farmers markets in the valley, VERYI