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Home My WebLink About10/26/2005 - STAFF REPORTS (3) City Of Palm Springs ROBERT H. ELSNER, CHAIRMAN Council/Cabinet Meeting Palm Springs International Airport Commission October 26, 2005 I. SECURITY Due in large part to the most recent security breach via truck and in addition to the existing high level of security provided by our police forces and Airport staff, staff is undertaking the following actions: • Consideration of new policy on vehicle interdiction on Airport. • Review of our current security communications. • Distribution of security access maps to concerned personnel. • Replacement via federal grant of Police Vehicles. • Enhancing control of access points to the airfield. II. FINANCIAL/BUDGETARY A. Department Reorganization—Predicated on a continual review of PSPs budget, specifically personnel costs vs. operational need, staff continues to seek ways to streamline the organization toward realizing greater operational efficiency at a reduced cost. To date, approximately 10% force reduction has been realized. B. Bond refinancing—In an on-going effort to remove a burdensome rate covenant, staff continues to work with bond council toward refinancing$13.5 in of$30 in debt(bonds). Staff anticipates refinancing as early as December and not later than January. C. Budgetary Alignment—PSPs expenses have continually risen multiple percentage points above its revenue stream due in large to rising personnel and energy costs. A comprehensive and on-going effort to align PSPs revenue and expense streams has brought PSP to breakeven. Toward that end, PSP is now forecasting these streams out, on a continual bases, over a 5 year planning horizon. With minor incremental adjustments and barring a catastrophic event, staff anticipates achieving breakeven over the forecast period. D. Revenue Enhancement Program—This on-going effort is best illustrated via the adjustments staff has recommended to the Airports Comprehensive Rates and Charges schedule. This initial effort brings current, charges that have not been raised in years, i.e., vehicle parking. Further, with the recently approved Concession Development Program, staff anticipates enhancement of current revenue and additional streams as capital improvements come on line. 111. AIR SERVICE DEVELOPMENT A. In 2004, the Airport surpassed 1,300,000 total passengers served for the first time ever. In 2005, the Airport is set to beat that record anticipating in excess of 1,400,000 passengers served. • September 2005 Passenger Traffic - 77,905 vs. 69,404 in'04, up 12.25% and a new record for the month. • 2005 YTD - 1,041,868 vs. 997,323 last year, up 4.5% (first time to surpass one million passengers this early in the year). • September seat capacity- 108,000 vs. 96,000 in '04 (up 12.5%) Page I of 3 City Of Palm Springs ROBERT H. ELSNER, CHAIRMAN Council/Cabinet Meeting Palm Springs International Airport Commission October 26, 2005 • Load factor for the month was 72.5%, unchanged from last year. • Record passenger traffic set in March,April, May, June, and September. B. Air Service Additions: • Northwest- resumed Ix daily MSP service on 10.1 • American - resumed 1 x daily ORD service on 8.23 • American- resumed 2nd daily DFW flight on 9.7 • Continental - resumed 2nd daily IAH flight on 9.7 (3wks earlier than last year) • Horizon - operated year-round through summer for first time ever, and was a strong performer month after month. • America West Express -NEW daily nonstop LAS service began on 10.1 • WestJet- early return of 3x weekly YYC on 10.13 and NEW 4x weekly YVR service began on 10.14 • Alaska - annual seasonal increase of service on 10.30, adding 3rd daily SFO flight, Ix daily PDX, 2nd daily SEA, and 5x weekly YVR service. • Delta Connection - 12/04 4x daily year-round SLC service. • Harmony Airways - 1/05 2x weekly Vancouver service. • NEW AIRLINE - to announce in November. C. INTERNATIONAL ROUTE DEVELOPMENT—Over the course of the past two years the Airport has pursued European charter service direct to Palm Springs during the summer months. Staff has attended the annual "Routes" conference held in 2004 and 2005 in Madrid Spain and Copenhagen Denmark respectively. Interest continues to be strong and the Airport anticipates direct service with 3-5 years. Toward that end, the Airport is assessing capital improvement need relative to this type service. IV. AIRPORT DEVELOPMENT OPPORTUNITIES PSP continues to seek development opportunities toward enhancing its revenue stream in keeping with FAA mandated self-sufficiency rule. V. .AIRPORT IMPROVEMENT GRANTS A. Airport Improvement Program(AIP) Grants 38 and 39—FAA authorized a multi-year (3 year) grant commencing in FFY 2005-06 of$3.5 m per year totaling$10.5 to be applied toward the Passenger Screening Checkpoint and Passenger Hold Rooms. FAA additionally awarded (AIP 39) $2.5 m to be applied toward the Apron Rehabilitation. B. FUTURE Airport Improvement Program(AIP) Grant 40—Staff will request from the FAA a$20 million dollar grant for the FFY06-07 budgetary cycle. At 95% funding, the Airport's cost sharing will be $1 million which the airport has in reserves. This grant will be primarily used for greatly needed airfield improvements. C. Airport Capital Improvement Program (ACIP)—As required by the FAA, staff has submitted its 5 year capital improvement program (updated annually). The program as envisioned totals approximately$83 million. Page 2 of 3 City Of Palm Springs ROBERT H. ELSNER, CI3AIRMAN Council/Cabinet Meeting Palm Springs International Airport Commission October 26, 2005 VI. AIRPORT DEVELOPMENT (CAPITAL IMPROVEMENTS) A. Passenger Screening-Lanes—Project has encountered minor delays (unknown conditions) however staff anticipates end-of November beginning December opening as previously identified. B. Regional Terminal—Project has been funded and staff anticipates commencement on January 1, 2006. C. Security Access Control—The replacement system is operational and has the capability to utilize the latest advancements in technology including biometrics (facial recognition, retina scan, fingerprints, etc.), wireless data transfer, intelligent field panels and fiber optic cabling. D. Public Information Display System—The replacement system is operational and has the latest technological advances and is linked to PSPs security access and control system. In so doing, PSP will provide the most current flight information and public announcements to the traveling public. E. General Aviation Processing—The new facility has been accepted by the US Customs Service and meets the new requirements by the Department of Homeland Security. The new facility allows the Airport to maintain its User-Fee status in regards to Port-of-Entry rights for aircraft entering the United States. F. Employee Parking Lot—Driven by the revenue enhancement opportunity of recalibrating the existing vehicle parking facility to long and short tern lots, the current employee parking lot will be relocated to the South side of the Mid-Valley Parkway utilizing, in part, the area adjacent to the Compressed Natural Gas (CNG) facility. This new lot will be complete by November 15, 2005 and will acconnnodate 176 vehicle parking spaces. G. FAA ATC Tower—Staff continues to aggressively pursue funding for the new ATC Tower with Congresswoman Bono's office and has met with great success. The recent catastrophic natural disasters that have hit our Nation has prompted a funding delay however, the Congresswoman has committed to work with staff toward funding resolution. VII. OTHER Primary Guidance Documents—Currently undergoing review, this set of documents provides a comprehensive guide for a current and/or future tenant to "operate" at PSP. Once review is completed, the document will be submitted to the City Council as an ordinance revision. Page 3 of 3