HomeMy WebLinkAbout1/19/2005 - STAFF REPORTS (5) PSI
DATE: January 19, 2005
TO: City Council
FROM: Director of Aviation
SIMAT, HELLIESEN & EICHNER (SH&E)
RECOMMENDATION:
That the City Council approve Amendment#1 to Agreement 4922 with Simat, Heilliesen &
Eichner, Inc. (S.H.&E.) for an additional $75,000 to expanded services in the area of
Business Development Marketing covering the remainder of FY 2005.
BACKGROUND:
Palm Springs International Airport and SH&E are now in the midst of the fourth consecutive
year of what has been a very positive and productive professional relationship. Under the
current contract, in addition to an ongoing Air Service Marketing program, SH&E has been
tasked with an expanded list of services for the Airport. The newly expanded scope of
services now includes a Business Practices Accounting Review at the request of our
signatory airlines, as well as efforts related to the creation of a plan and strategy in pursuit
of new Business Development Marketing.
Thus far, marked progress has been made in the Air Service Marketing efforts, and work
continues to assist Staff in securing new and expanded flight options. The Business
Practices Accounting Review is nearly complete and will soon be formally presented to staff.
Finally, a plan for Business Development Marketing has been prepared and put into use.
Discussions have taken place with several companies showing genuine interest in Palm
Springs International Airport in their future expansion and/or relocation plans.
The original contract was approved at an amount not to exceed $200,000. A total of
$35,000 was designated for the initial phase of exploring new Business Development
Marketing opportunities,of which$12,000 was derived from funds remaining in the previous
contract. The balance of$23,000 was included in the current contract. These funds have
now been depleted.
The Airport is now in a great position to further Business Development Marketing
discussions. With the continued assistance of SH&E,there is a tremendous opportunity to
continue working with these targeted companies to advance negotiations. These aviation
related companies have an interest in learning more about the facilities and property
available for development, in consideration of expansion and/or relocation opportunities.
In support of furthering these endeavors, SH&E has provided a scope of work which
supports and requires ongoing assistance from its staff, and the scope is provided in the
Contract Amendment.
An additional $75,000 is necessary to conduct the work outlined in Task B of Exhibit "A"
entitled "Scope of Services"of the Contract Amendment#1. This amount will be sufficient
to cover fees and expenses for the remainder of the current contract period. The option of
using funds from the Air Service Marketing Program was not desired as there are several
air service development efforts currently underway and the full amount allocated is
expected to be utilized. Staff believes that this Contract Amendment #1 will allow for
expanded and improved relationships with potential newtenants,and if successful,will lead
to significant investment on Airport along with increasing non-airline revenue.
The Airport Commission, by a unanimous vote, recommended City Council approval at its
January 5 meeting. Suffici t funds are available in Account#415-6002-45520.
Richard S. Walsh, A.A.E.
Director of Aviation
APPROVED:" ,.
City Manager
Attachments:
Minute Order
Amendment No. 1
REVIEWED BY DEPI OF FINANCE
1i)
AMENDMENT NO. 1
TO AGREEMENT NO. 4922, AIRPORT MARKETING CONSULTING SERVICES
This First Amendment to Agreement No. 4922 for contract services ("Amendment') is
made and entered into this 19`h day of January, 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. The parties wish to have Contractor provide additional business development
marketing services for the City in exchange for the additional compensation described in this
Amendment.
C. 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" attached hereto
as Exhibit "C" and incorporated herein by this reference, but not
exceeding the maximum contract amount of Two Hundred
Seventy-Five Thousand Dollars ($275,000) (herein "Contract
Sum"), except as provided in Section 1.8. . . ."
2. Exhibit "A", entitled "Scope of Services", is hereby amended to replace all items
under Task B to read as follows, with the other portions of Exhibit "A" (Tasks A
and C) remaining unmodified and in full force and effect:
Number Task
B-1 Contractor has initiated a comprehensive research effort identifying
potential opportunities for business development with a short list of aviation
related companies; Contractor shall conduct additional research on behalf of the
Airport as required based on the information gathered in its comprehensive
research
B-2 Contractor has developed a business case presentation and shall make
ongoing changes and updates along with the inclusion of information specific to
each prospective business development opportunity
4x p
B-3 Contractor shall facilitate site visits with companies
showing specific interest in potential development
opportunities available at the Airport
B-4 Contractor shall facilitate negotiations as discussions
advance with these interested companies and provide
the Airport with the required expertise
B-5 Contractor shall work with Airport to develop a location
incentive program to be used in advanced discussions
with interested companies
B-6 Contractor shall constantly monitor and investigate
other business development opportunities and activity
within the industry and make the Airport aware of any
potential positive or negative impacts based upon
industry happenings"
3. Exhibit "C, entitled "Schedule of Compensation", is hereby amended to replace the
description of the cost for items B1-B6 in the second line describing the breakdown of the
Contract sum and the first sentence of the last paragraph of Exhibit "C" to read as follows with
the other portions of Exhibit "C" remaining unmodified and in full force and effect:
Number Task Cost
"B1-B6 Business Development Marketing $98,000"
"Tasks B-1 to B-6, in the area of Business Development Marketing, have been
negotiated at $75,000 for the work remaining. . . ."
4. Exhibit "D", entitled "Schedule of Performance", is hereby amended to add the following
sentence immediately following the language existing therein, with all other language of Exhibit
"Y remaining unmodified and in full force and effect:
"All remaining tasks described in Exhibit "A" shall be completed no
later than the end of the Term of this Agreement."
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.
r.
01/013/2005 14:55 FAX 949 22S 1190 ALESHIRE & WVNRER, LLP U 005/005
1N W11'NESS WIII I2.1:O1', the parties have executed zmd entered info this Amcndnicrll as of the
dtltc first NvIlUen above,
CITY OF PALM SPRINGS,
a tiallilicipal corpol'ai,iop
ATTEST: BY:
City Matrlaget,
City Clerk
APPROVED
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V/; dal
MINUTE ORDER NO. 7617
APPROVING AMENDMENT 1 TO AGREEMENT
4922 WITH SIMAT, HELLIESEN AND EICHNER,
INC., TO PROVIDE EXPANDED SERVICES IN
THE AREA OF BUSINESS DEVELOPMENT
MARKETING SERVICES THROUGH JUNE 30,
2005, IN THE AMOUNT OF $75,000, TOTAL
CONTRACT AMOUNT NOT-TO-EXCEED
$275,000. A4922
I HEREBY CERTIFY that this Minute Order, approving Amendment 1 to
Agreement 4922 with Simat, Helliesen and Eichner, Inc., to provide expanded
services in the area of Business Development Marketing services through
June 30, 2005, in the amount of $75,000, total contract amount not-to-exceed
$275,000, was adopted by the City Council of the City of Palm Springs,
California, in a meeting thereof held on the 191h day of January, 2005.
JAMES THOMPSON
City Clerk