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Home My WebLink About7/13/2005 - STAFF REPORTS (8) V N ♦ f e c4`'F°RN�P City Council Staff Report DATE: July 13, 2005 CONSENT AGENDA SUBJECT: AMENDMENT NO. 2 TO AGREEMENT NO. A4922 WITH SIMAT, HELLIESEN & EICHNER, INC. TO PROVIDE EXPANDED AIR SERVICE DEVELOPMENT AND MARKETING FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY Amendment No. 2 Agreement No. A4922 with Simat, Helliesen & Eichner to provide expanded air service development and marketing. RECOMMENDATION: 1. Approve Minute Order No. authorizing Amendment No. 2 to Contract Services Agreement No. 4922 with Simat, Helliesen & Eichner, Inc. to provide expanded services in the Area of Air Service Development Marketing and Business Development at a not to exceed cost of$125,000. 2. Authorize The City Manager to execute all necessary documents. STAFF ANALYSIS: This will be the fifth consecutive year of working with Simat, Helliesen & Eichner (SH&E). The attached spreadsheet provides an overview of the history of progress that SH&E has made on PSP's behalf. Following this contract period, typically contracts are renewed every five years to ensure that the Airport makes the most efficient use of funds available for contract professional services, a Request for Qualifications (RFQ) process will be undertaken to determine what interest exists amongst other reputable companies in the field of aviation consulting to provide these types of services. A committee will be formed to review qualifications and entertain the presentations of finalists. This is the same process followed in winter 2001 when SH&E was unanimously selected and awarded its initial contract. The decision to return to the RFQ process is in no way a reflection upon the quality of work or responsiveness of Item No. 2 . 01 . City Council Staff Report July 13,2005 -- Page 2 Amendment No.2 process is in no way a reflection upon the quality of work or responsiveness of SH&E to the needs of the Airport. SH&E will have an equal opportunity to submit a proposal should it be interested in continuing to do business here at Palm Springs. For this fifth year, the total amount for Amendment No. 2 shall not exceed One Hundred and Twenty Five Thousand Dollars ($125,000) during the period covered through June 30, 2006. This amount is earmarked for the continued supply of key air service data, industry expertise, and presentation/forecast preparation related to advancing the Airport's Air Service Development and Marketing Program. This amount is deemed adequate to maintain the current momentum in the program. A total of $12,000 is included for reimbursables/travel, unchanged from the original contract. It is therefore recommended that these services be continued under Amendment No. 2. The Airport Commission recommended the City Council approve amendment No. 2 at its regularly scheduled meeting held on July 6, 2005. FISCAL IMPACT: Amendment No. 2 to Contract Services Agreement No. 4922 with Simat, Helliesen & Eichner, Inc. will be funded by airport general revenues at a not to exceed cost of $125,000. Richard S. Walsh, A.A.E., Director of Aviation David H. Ready, Cityi'ager Attachments: Minute Order Amendment No. 2 to Contract Services Agreement No. 4922 with Simat, Helliesen & Eicher, Inc. Historical Spreadsheets showing SH&E Services to Palm Springs International Airport MINUTE ORDER NO. APPROVE MINUTE ORDER NO. AUTHORIZING AMENDMENT NO. 2 TO AGREEMENT NO. 4922 WITH SIMAT, HELLIESEN & EICHNER, INC., TO PROVIDE EXPANDED SERVICES IN THE AREA OF AIR SERVICE DEVELOPMENT AND MARKETING AT A NOT-TO-EXCEED COST OF $125,000. I HEREBY CERTIFY that this Minute Order, authorizing Amendment No. 2 To Agreement No. 4922 with Simat, Helliesen & Eichner, Inc. to provide for expanded services in the area of air service development and marketing at a not-to-exceed cost of $125,000, was approved by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 13th day of July, 2005. JAMES THOMPSON City Clerk AMENDMENT NO. 2 TO AGREEMENT NO. 4922, AIRPORT MARKETING CONSULTING SERVICES This Second Amendment to Agreement No. 4922 for contract services ("Amendment') is made and entered into this day of July, 2005, by and between the CITY OF PALM SPRINGS, ("City") and SIMAT, HELLIESEN & EICHNER, INC. (SH&E) ("Contractor"). RECITALS A. On July 21, 2004, City and Contractor entered into that certain Agreement No. 4922 ("Agreement'), pursuant to which Contractor agreed to provide certain marketing consulting services to the City in accordance with the terms of the Agreement. B. On January 19, 2005, City and Contractor entered into Amendment No. 1 to Agreement No. 4922 ("Agreement'), whereby Contractor provided additional business development marketing services for the City. C. The parties wish to have Contractor continue to provide air service development marketing services for the City as described in this Amendment. D. The parties wish to amend the Agreement in accordance with the terms herein. NOW, THEREFORE, the parties agree that the Agreement shall be revised pursuant to the following terms of this Amendment: 1. Section 2.1, entitled "Contract Sum", is hereby amended at the first sentence therein, to read as follows, with the other sentences of Section 2.1 remaining unmodified and in full force and effect: "2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of One Hundred Twenty-Five Thousand Dollars ($125,000) (herein "Contract Sum"), except as provided in Section 1.8. . 2. Exhibit "D", entitled "Schedule of Performance", is hereby read as follows: "This is a year-long project. Contractor shall support the Airport in its ongoing efforts to develop an Air Service Development program as necessary, including the completion of data analysis and route forecasts for air carrier presentations and meetings as requested." 5. Due Execution. The person(s) executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound. 6. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect. SIGNATURES ON FOLLOWING PAGE IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date first written above. CITY OF PALM SPRINGS, a municipal corporation ATTEST: By: City Manager City Clerk APPROVED AS 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) Name: Name: Title: Title: State of } State of } }ss }ss County of } County of } On 2005 before me, On 2005 before me, personally personally appeared appeared personally known to me (or proved to me on the personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) basis of satisfactory evidence) to be the person(s) whose nanre(s) is/are subscribed to the within whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they instrument and acknowledged to me that executed the same in his/her/their authorized he/she/they executed the same in his/her/their capacity(ies),and that by his/her/their signature(s)on authorized capacity(ies), and that by his/her/their the instrument the person(s), or the entity upon signature(s) on the instrument the person(s), or the behalf of which the person(s) acted, executed the entity upon behalf of which the person(s) acted, instrument executed the instrument. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Signatrre: _ Notary Signature: Notary Seal: Notary Seal: SH&E Services to PSP 2001 Market Analysis provided City with comprehensive marketing strategy for: Air Service Development Local Passengers Local Advertising and Marketing Vacant Land Foreign Trade Zone Customs Facility Profitability Analysis and Recommendation for American Airlines Summer Subsidy Staff training for Bryant Francis (in Boston) Created Marketing and Advertising Program Developed communications plan in response to 9111 Created community-wide outreach program to boost profile of PSP in nine cities Presented PSP and SH&E progress to Hospitality Industry, Airport Commission and City Began Air Service Marketing Program Conducted Inbound and Outbound Leakage study to assess true market size Recommended carriers and markets to pursue for seasonal and year-round service Prepared forecasts for Alaska/Horizon including SEA, PDX, YVR, SJC, OAK, SAC Horizon started SAC service Provided ongoing data and analysis as well as industry contacts to PSP staff 2002 Assisted with Small Community Air Service Devleopment Grant proposal Air Service Marketing Began update of leakage study Prepared forecasts and presentation for Continental service to Houston and EW R Prepared forecasts and presentation for UA service to Denver Prepared forecast for year-round service to DFW on American Eagle Prepared forecasts and presentation for DL year-round SLC service and seasonal ATL service Prepared forecast for NW seasonal service to DTW Prepared forecast and presentation for Frontier, set up and attended meeting (with reps from DEN) Implemented Marketing and Advertisting Program Revised website design and content Developed Speakers Bureau Conducted Media Training Managed Advertising Campaign Presented PSP and SH&E progress to Hospitality Industry, Airport Commission and City 2003 Air Service Marketing Completed update of leakage study Prepared forecasts and presentation for UA service to Denver i UA reinstated year-round service to Denver Prepared forecast and presentation for Continental service to IAH and EW R CO started year-round Houston service PSP discontinued subsidy to AA for summer DFW service Prepared forecasts and presentation for DL year-round SLC service and seasonal ATL service DL started SLC year-round and added ATL on a seasonal basis Prepared forecast and presentation for US Airways seasonal service to PHL Prepared analysis for AA service to Chicago Marketing and Advertising Created PSP powerpoint template for presentations 2004 Air Service Development Recommended PSP attendance at Routes' Prepared analysis of and for carriers and meetings at Routes including Hapag Iloy Flug, Thomas Cook, Apple Vacations, Condor, Canada 3000 and Air Transat Prepared forecast for AA to JFK Prepared forecast for CO to EW R and defending IAH service and frequency Prepared forecast for NW DTW service Prepared forecast for WestJet West Jet started seasonal service Prepared forecast and presenation for Frontier, set up and attended meeting Prepared and produced maps for PSP Europe trip Marketing and Advertisting Completed Communications Plan for PSP Defined program and responsibilities Media Relations Crisis Communications Community Relations Public Relations Business Development Defined objectives, conducted market study Prepared presentation for Business Interests Accounting Review Study Started 2005 Air Service Development Prepared presentation and forecasts for Aloha, attended meeting for PSP Prepared forecasts for America West RJ service to PHX and service to LAS Prepared forecasts for Alaska/Horizon including SFO, SJC, OAK and SEA Prepared and produced maps for PSP Europe trip Prepared and produced maps for Networks, Jumpstart conferences Accounting Review Completed Business Development Prepared presentations for Business Interests Presentations to Airport Commission and Hospitality Industry