Loading...
HomeMy WebLinkAbout5/5/2004 - STAFF REPORTS (23) DATE: May 5, 2004 TO: City Council FROM: Assistant City Manager via Director of Aviation SALE OF PROPERTY BETWEEN THEAIRPORTAND THE WASTE WATERTREATMENT PLANT THAT WILL BE USED TO SUPPORT THE PALM SPRINGS INTERNATIONAL AIRPORT'S (PSP) 5-YEAR CAPITAL IMPROVEMENT PROGRAM RECOMMENDATIONS: That the City Council approve sale of property between the Airport and the Waste Water Treatment Plant (WWTP) for $5,636,000 which is based on a revised appraisal completed on April 16, 2004 by Dozier Appraisal Company showing this amount as fair market value for 24.96 acres of Airport property located in Section 19, Lots 19 and 20 at the Waste Water Treatment Plant (WWTP) as allowed under a Federal Aviation Administration Instrument of Release dated October 28, 1994 including all required conveyances and pertinent documentation in a final form approved by the City Attorney. SUMMARY: Airport's reserves have been drastically reduced as a result of"9-11"terrorist attacks because the money was used to complete security projects for the Transportation Security Administration (TSA). These projects included Explosive Detection System (EDS) build out behind the Airline Ticket Counters and construction of the TSA administrative offices. Both of these projects were critical in nature for the viability of the Airport post "9-11". An additional security project in regards to passenger screening has become the central focus of the Airport. This situation has caused complaints to flood in from across the nation from visitors, convention groups, airlines and other passengers. The existing 3-lane configuration for passenger screening is constrained and is very costly to expand in its current location. Passenger growth patterns indicate that a 5- lane configuration is needed in order to process passengers efficiently thereby preventing delays. There are long lines of people in the lobby waiting to go through the screening process which causes serious safety and security concerns. The Airport is slated to receive FAA Airport Improvement Program (AIP) grant funds to help correct this situation, however, $4,000,000 (est.) is required in to pay for design and construction costs over the next 24-months. This money will also be used to fund the City's matching portions of a multi-year FAA grant appropriation, offset FY2004/05 budget deficit, and ensure appropriate reserve levels are met as per the recently adopted Airport Use and Lease Agreement (AULA). The Airport owns 24.96 acres of property located at the WWTP. The appraised value of the land is $5,636,000. Through a FAA approved Instrument of Release dated October 28, 1994, the 24.96 acres can be sold to the WWTP. While the reserves at the Airport have been depleted,the WWTP has over$10,000,000 in reserves that can be used to purchase the airport property at the WWTP. The sale of this property is crucial to that the Airport can continue to advance with the implementation of these critical security and safety enhancements. _ I �7A WWTP Property Sale City Council - May 5, 2004 Page 2 BACKGROUND: The Airport has an outstanding relationship with the Federal Aviation Administration. More than$60 million dollars in Airport Improvement Program (AIP)grant funds have been appropriated to PSP over the last 20 years for safety, security, capacity and environmental projects. The FAA will no longer fund projects based on estimates. Due to the security impacts felt by"9-11", the Airport spent down its reserves which alternately would have been used for design cost needed to get hard construction bids. Previously, the bomb blast assessment which was conducted after"9-11" identified the following security projects which are approved and funded by the FAA. They include: 1) North Terminal Roadway Reconfiguration (completed 2003) 2) Remote Vehicle Inspection Facility (completed 2004) 3) Terminal Building Hardening and Blast Protection Project No. 3 includes a new security checkpoint(5-lanes), hardened terminal facility and a revised loop road configuration with a central plaza area. The project is shown on our FAA approved Airport Layout Plan and is included as a Airport Capital Improvement Program (ACIP). The FAA has indicated that a portion of Project No. 3 will be considered as a terminal project because we are expanding the checkpoint into a new building. By doing so, a 5-lane configuration, consistent with TSA standards, will be used for passenger processing which will help alleviate the safety and security concerns created by the long lines. The existing security checkpoint configuration has 3-lanes, one of which is an integrated lane for selectee passengers. It was reported that over 80 flights were delayed in January 2004, which was directly attributed to the passenger screening processing time at the security checkpoint. The Convention and Visitors Authority (CVA)reported that several hospitality complaints have been generated from tourists departing the Palm Springs area. Some hotels have reported loss of convention business, effecting large blocks of room nights due to the delays at the checkpoint. The Mayor and the City Manager's office have received complaints regarding the passenger flow problems at the security checkpoint. Per the City Manager's direction the Airport is advancing a proposed interim solution of 4-lanes within the existing terminal footprint. This proposal is estimated to add approximately $1,000,000+ to overall project costs and may only provide temporary relief to the traveling public. The TSA is uncertain if they can staff and equip this proposal. Airport staff working with TSA officials and FAA personnel have realized the dire situation that the Airport security checkpoint is in due to the federally mandated changes in passenger screening. At times,there are over 1,300 passengers backed up between the hours of 6:00 a.m. and 8:30 a.m. waiting to process through the security checkpoint. Passenger aircraft scheduled to push off gates at 7:00 a.m. are departing later which causes several commercial service aircraft to line up on,the taxiway for departure. These delays have a ripple effect across the industry, in that PSP connecting flights are causing other delays and additional expenses throughout the system. This is extremely costly to the airlines and cannot continue. 1 7AImm WWTP Property Sale City Council - May 5, 2004 Page 3 Palm Springs International Airport does not want to fall behind the passenger of this region (estimated at 10% per year)and cannot afford any additional leakage to other airports due to the current delays at the security checkpoint. Current leakage to other airports from PSP is estimated at 33%or approximately 429,000 passengers. Based on a$19.00 per passenger average, this equates to approximately$8,151,000 direct and indirect revenue loss annually. The City Council has been very proactive in its efforts to promote and develop the Airport. This has allowed the Airport to accept FAA funding totaling over $60 million dollars over the last 20 years without every missing or not being able to accept appropriations. Per the City Manager's direction, staff directed the design team to conduct an extensive analysis of the current security checkpoint configuration to accommodate a "short-term" (i.e. next season) solution for passenger processing. Design schematics and project cost estimates associated with this interim proposal are attached as part of Exhibit 1-A. The TSA has shown strong support of the Airport's proactive measures to correct passenger flow problems, and has verbally promised to increase staffing levels if a new security checkpoint is constructed. However, TSA is uncertain it could equip a 4`h lane given the TSA's national priorities. A formal review and approval process must be done with the TSA for the final configuration. Local TSA representatives agree with the Airport in that while a 4-lane configuration would meet existing needs for passenger processing it will not address future concerns as passengers growth continues to increase. Design schematics and project cost estimates for the expanded security checkpoint and passenger holdrooms are attached as a part of Exhibit 1-B. As previously stated, the Airport's Division of the FAA recently adopted new procedures for the processing AIP projects. One of these new requirements is that AIP funding be based on an actual bid, not an estimate. In a meeting at FAA Western-Pacific headquarters,the FAA's Airports Division Manager indicated strong support for PSP's proposed ACIP, and stated that, along with entitlement funds, additional discretionary funds may be directed to PSP provided that hard bids are available for the proposed projects. This is a unique opportunity which could result in millions of additional dollars that can be used for other needed projects (i.e. Runway & Taxiway Rehabilitation). The October 28,1994 Instrument of Release (IR) for the 24.96 acres of airport property at the WWTP,and associated FAA correspondence along with the pertinent sections of t he A pril 16, 2 004 r evised D ozier a ppraisal s howing t he $5,636,000 appraised land value are attached as a part of Exhibit 2-A. This release contains language that must be included in any conveyance deed if the release land is sold. Additionally, the FAA has standard avigation easement language that must be included in the conveyance deeds if the airport land is released for sale. As part of Exhibit 2-13 see attached memo's to the City Manager's office. As previously noted, there is approximately $10,000,000 in WWTP reserve accounts which may be used to purchase 24.96 acres of airport property. Exhibit 2-C is an aerial depiction and overlay of the proposed parcels comprising the 24.96 acres. 1743 WWTP Property Sale City Council - May 5, 2004 Page 4 The Airport currently receives a $401,000 annual lease payment as part of a rental agreement for the WWTP property. There are a number of measures being evaluated as to how this payment will be offset with the sale of the property. As part of that initiative, the Airport will immediately set aside $2,000,000 from the proceeds into a reserve account to offset a portion of the annual lease payment which the Airport will no longer receive. Additionally, a complete assessment of our current rates and charges is underway including a potential increase in public parking fees. Standard Parking, our public parking lot contractor, has shown a potential increase of approximately $225,000 with a proposed reconfiguration utilizing long-term and short-term parking areas. This amount will also go to offset the annual lease payment. T he Airport is actively working with various tenants who have shown interest in further development of their leaseholds. It is anticipated that some of these potential developments will occur in the next 24-months. The increased lease payments from these developments will also be used to offset the annual lease payment. The FAA has indicated there preliminary approval of a Passenger Facility Charge modification which will allow the airport to extend the collection term which will help reduce current debt service payments. With Council concurrence, all of these measures combined, along with savings from the 1992 GARB refinance, the Airport will make up the $401,000 loss in annual lease payments from the WWTP. The City of Palm Springs has an immediate need to correct terminal deficiencies in the Palm Springs International Airport's passenger processing facilities. With constrictive FAA guidelines in place for AIP funding, and due to a severe lack of funds in Airport reserve accounts previously expended on airport security projects, assistance is needed in order to get the funding necessary to construct projects that will enhance passenger safety and security. The Airport Commission reviewed the proposed funding initiatives at its February 4, 2004 meeting and at its April 7, 2004 meeting and recommends that the City Council approve this funding initiative in order for the Airport to continue to receive federal grants for crucial airport security and safety projects as listed in the ACIP. A summary sheet of the proposed initiative detailed in this report is attached for your review. RICHARP�WAL'SH, A.A.E. " Director/,of Aviation APPROVED! City Manager� `"`� Attachments: (1) Resolution 17A (1) Summary Sheet Exhibits: 1A, 1B, 2A, 2B, 2C PALM SPRINGS INTERNATIONAL AIRPORT WWTP SALE OF PROPERTY SUMMARY SHEET Current Airport Safety & Security Issues: 1) Constrained Security Checkpoint - long lines/wait times 2) 200-300 Passengers in line at/near the center lobby or the airport 3) Airlines reporting delayed flights and passengers missing flights 4) Complaints from hospitality industry, passengers and airlines 4) Inadequate staffing levels and equipment for passenger screening Airport Capital Improvement Plan (ACIP) for FY04/05 & 05/06: 1) Passenger Screen ing/Holdroom Phase 1 2) Passenger Screen ing/Holdroom Phase II 3) Expand/Upgrade Security Access Control Phase 11 Anticipated FAA funds for ACIP for FY04/05 & 05/06: 1) $3,500,000 - Entitlements 2) $3,500,000 - Entitlements 3) $3,000,000 - Discretionary 4) Additional TSA funded possible Waste Water Treatment Plant (WWTP) & Airport Property Sale: 1) Dozier Appraisal Company 4-23-04 appraisal 2) 24.96 acres of Airport Property at the WWTP 3) Current appraisal amount of$5,636,000 as fair market value 4) WWTP has $10,000,000 (est.) in reserves for transfer FAA Approval for Fair Market Value for Sale of Property: 1) Instrument of Release (IR), October 28, 1994 2) Quitclaim Deed, September 15, 1948 - Surplus Property Act 3) Follow up correspondence from FAA regarding IR and Deed Airport Proiects Identified by the Bomb Blast Assessment: 1) North Terminal Roadway Reconfiguration (completed 2003) 2) Remote Vehicle Inspection Facility (completed 2004) 3) Terminal Building Hardening and Blast Protection (proposed) Airport Enhancements to Security & Safety: 1) 5-lane configuration for passenger screening 2) 2 new passenger holdrooms with concessions 3) Increased revenue, no delays, return customers ' 4) PSP remains close, comfortable and convenient EXHIBIT 1-A includes: INTERIM SCHEME A A02.01.A INTERIM SCHEME B A02.01.13 INTERIM SCHEME C A02.01.0 INTERIM SCHEME B A02.01.D GENSLER COST ESTIMATE - SCHEME A GENSLER COST ESTIMATE - SCHEME B GENSLER COST ESTIMATE - SCHEME C GENSLER COST ESTIMATE - SCHEME D EXHIBIT I-A Architecture, Design ca Planning Worldwide Gensler March 30,2004 Mr.Mike Williams,AAE City of Palm Springs Deputy Director of Aviation—Operations 3400 Tahquitz Canyon Way Palm Springs,CA 92262 Subject: Palm Spring International Airport 05.0201.020 lcl Dear Mike: Thanks for asking us to assist Palm Springs International Airport in the upgrades to the security check points. We have developed 4 schemes which illustrate the options for installing 4 temporary security checkpoints within the existing terminal facility. The exception being scheme D which installs trailers within the existing courtyard. The attached drawings show each scheme as well as the required demolition work to implement each scheme. Below we have also provided a brief summary of the four options. Scheme A—Staggered Checkpoints • Relocate existing retail/concession space. • Remove existing restaurant seating area located in the lobby. • Install new low wall surrounding new security checkpoint area. • Install new lighting for checkpoints located in main lobby. • Install power and data to new checkpoints located in main lobby. • Create separate entrance to Airport Operations and Law Enforcement offices. • Potential for congestion at entrance into queue line with cross traffic in lobby. • No flexibility to adjust to daily conditions. • No room for expansion. • Limited space for re-vesting after screening. Scheme B-In Line Checkpoints • Relocate Homeland Security Office. • Revise entrance to restaurant. • hnstall new low wall surrounding new security checkpoint area. zgoo Broadway Suite 300 Santa Monica California 9 0 4 0 4 Gensler Page 2 • Relocate restaurant kitchen, counter and bar. • Expand restaurant eating area due to loss of seating area in lobby. • Install new full height wall to create new passenger arrival, • Potential for congestion at entrance into queue line with cross traffic in lobby. • No room for expansion. • Restaurant would be required to be closed during construction. • Loss of arriving passenger meeting/greeting area. Scheme C—Modified Existing Checkpoints • Relocate existing retail/concession space. • Relocate existing TSA office space. • Install new low wall between checkpoint and arriving passengers. • Create separate entrance to Airport Operations and Law Enforcement offices. • Potential for congestion at entry into queue line with cross traffic in lobby. • Proposed layout of-checkpoint does not meet TSA standards. • Requires approval from TSA headquarters. • No room for expansion. • No flexibility to adjust to daily conditions. • Limited space for re-vesting after screening. Scheme D—Temporary Trailers • histall temporary trailers in courtyard adjacent to existing restaurant. • Install power and data from existing terminal to trailers. • Install new exterior walls between existing terminal and trailers. • Revise arriving passenger and security queuing. • Trailers will require ramping for access from existing grade. • Temporary trailers will impede construction of final plan. • Elimination of view from restaurant. • No room for expansion. • Conflict with passengers after screening and arriving passengers. z5oo Broadway Suite 300 Santa Monica C- " q 0 0 i a Gensler Page 3 Mike,in conclusion any of the schemes outlined above will not solve the long term security and congestion issues within the lobby. The`highest and best use"for ultimate security future growth and flexibility would be to expand the lobby area with new checkpoints and holdrooms as we had presented in the terminal master plan. This would allow for ample passenger queuing and intuitive wayfinding. If you have any questions please do not hesitate to call me at 310-449-5801. Sincerely, Scot R.Taylor Senior Associate cc: Andy Cohen John Gentile asoo Broadway Suite 300 Santa Monica California 9 0 4 0 4 a ).. PALM SPRINGS INTERNATIONAL AIRPORT CONCEPTUAL BUDGET ESTIMATES MARCH 30.2004 PALM SPRINGS,CA. PROPOSED SECURITY REVISIONS DESCRIPTION TOTAL IEXfIIBIT I-A continue SCHEME (SHEET A02.01,A,3112/04) $379,360.77 SCHEME A W/OVERHEAD POWER $356,995.77 SCHEME B (SHEET A02.013,3112104) $1,150,905.98 SCHEME C (SHEET A02.01.A,3/12/O4) $292,629.57 SCHEME D (SHEET A02.01.A,3/12104) $1,242,654.62 SCHEME D PERMANENT CONSTRUCTION $1,757,202.47 SCHEME D.1 PERMANENT CONSTRUCTION+WALK REALIGNMENT $2,672,971.19 PALM SPRINGS INTERNATIONAL AIRPORT CONCEPTUAL BUDGET ESTIMATES MARCH 30,2004 PALM SPRINGS,CA. PROPOSED SECURITY REVISIONS ' DESCRIPTION QUANTITY UNIT UNIT PRICE SUBTOTAL TOTAL , SCHEMEA WITH ON POWER DEMOLITION GENERAL REQUIREMENTS: 1 LS $38,600.00 $38,500.00 $38,500.00 WALL DEMO @ CONCESSION 13 LF $40.00 $520.00 $520.00 REMOVE RESTAURANT LOW WALL 50 LF $40.00 $2,000.00 $2,000.00 REMOVE TILE FINISH AT RESTAURANT 448 SF $6,00 $2,680.00 $2,688.00 CONCESSION AREA DEMOLITION 580 SF $2.00 $1,160.00 $11160.00 REMOVE SECURITY AREA MILLWORK/LOW WALL 36 LF $50.00 $1,800.00 $1,600.00 ELECTRICALDEMO 1 LS $5,000.00 $5,000.00 $1,000,00 CONCESSION RELOCATION CONCESSION RELOCATION-NEW SPACE 580 SF $85.00 $49,300.00 $49,300.00 NEW CONSTRUCTION $0.00 NEW LOW PARTITION INCE.FINISH 150 LF $175.00 $26.260.00 $26,250.00 NEW FULL HT PARTITION'INCL.FINISH @ 10'CEILING 60 LF $130,00 $7,800.00 $7,800.00 WALL TREATMENT @ MAIN ENTRANCE 200 SF $20.00 $4,000.00 $4,000.00 REVISE FINISHES AT CONCESSION TO MATCH ADJACEN" 580 SF $9.00 $6,220.00 $5,220.00 CONCRETE PATCH AT ELECTRICAL UG 200 SF $15.00 $3,000.00 $500.00 CEILING REPAIR 1 LS $3,00000 $3,000.00 - $4,600.00 TERP,AZO PATCH 120 HR $110.00 $13,200,00 $500.00 CARPET NEW SECURITYAISLES 1,100 SF $8.00 $8,800.00 $6,600.00 SIGNAGE 1 LS $4.500.00 $4,500,00 $4,500.00 TELEPHONE 1 LS $3,500.00 $3,500.00 $3,500.00 WAG REVISIONS/AIR BALANCE 1 LS $4,500.00 $4,500.00 $000.00 FIRE/LIFE/SAFETY REVISIONS 5)EVICES $1,200.00 $6,000,00 $6,000.00 MISC.ELECTRICAL 1 LS $9,000.00 $9,000.00 $9,000.00 ELECTRICAL SERVICE-X RAY MACHINE 1 LS $55,000.00 $55,000.00 $55,000.00 RELOCATE/INSTALL SECURITY EQUIPMENT 1 LS $0.00 BY OTHERS SUBTOTAL $254,738.00 $234,738.00 SCHEDULE GENERAL CONTRACTOR STAFF, FEE,OVERHEAD 2.0 MOS $106,557.97 $105,257.97 CONSTRUCTION CONTINGENCY 5% $18,064.80 $16,999.80 TOTAL $379,360.77 $356,995.77 DESIGN/PERMITS/AIRPORT OPERATIONS SOFT COSTS NOT INCLUDED NOT INCLUDED Y PALM SPRINGS INTERNATIONAL AIRPORT CONCEPTUAL BUDGET ESTIMATES MARCH 30,2004 PALM SPRINGS,CA. PROPOSED SECURITY REVISIONS DESCRIPTION QUANTITY UNIT UNIT PRICE SUBTOTAL TOTAL SCHEME C DEMOLITION GENERAL REQUIREMENTS: 1 LS $27,000.00 $27,000.00 WALL/DOOR DEMO @ SECURITY OFFICE 10 LF $70.00 $700.00 CONCESSION AREA DEMOLITION 580 SF $200 �1,160.00 REMOVE SECURITY AREA MILLWORWLOW WALL 16 LF $50.00 $800.00 ELECTRICAL UG DEMO 1 LS $4,000.00 $4,000 00 RELOCATIONS CONCESSION RELOCATION-NEW SPACE 580 SF $85.00 $49,300.00 SECURITY RELOCATION-NEW SPACE 340 SF $65.00 $22,100.00 NEW CONSTRUCTION TEMPORARY PARTITIONS/SECURED ENTRANCE 60 LF $125.00 $7,500.00 NEW LOW PARTITION INCL.FINISH 65 LF $175.00 $11,375.00 REVISE FINISHES AT CONCESSION TO MATCH ADJACEN- 580 SF $9.00 $5,220.00 REVISE FINISHES AT SECURITY TO MATCH ADJACENT 150 SF $9.00 $1,350.00 CONCRETE PATCH AT ELECTRICAL UG 200 SF $15.00 $3,000.00 CEILING REPAIR 1 LS $1,500.00 $1,600.00 CARPET NEW SECURITY AISLES 800 SF $8.00 $6,400.00 SIGNAGE 1 LS $3,000.00 $3,000.00 TELEPHONE 1 LS $2,50D.00 $2,500.00 HVAC REVISIONS/AIR BALANCE 1 LS $1,000.00 $1,000,00 FIRE/LIFE/SAFETY REVISIONS 2)EVICES $1,200A0 $2,400,00 MISC.ELECTRICAL 1 LS $3,000.00 $3,000,00 ELECTRICALSERVICE-X RAYMACHINE 1 LS $45,000.00 $45,000.00 RELOCATE/INSTALL SECURITY EQUIPMENT 1 LS $0.00 BY OTHERS SUBTOTAL $198,305.00 SCHEDULE GENERAL CONTRACTOR STAFF, FEE,OVERHEAD 1.5 MOS $80,389.33 CONSTRUCTION CONTINGENCY 5% $13,934,74 TOTAL $292,629.57 DESIGN/PERMITS/AIRPORT OPERATIONS SOFT COSTS NOT INCLUDED v - PALM SPRINGS INTERNATIONAL AIRPORT CONCEPTUAL BUDGET ESTIMATES MARCH 30,2004 PALM SPRINGS,CA. 'PROPOSED SECURITY REVISIONS DESCRIPTION OUANTITY UNIT UNIT PRICE SUBTOTAL TOTAL PERMANENT SCHEMED CONSTRUCTION DEMOLITION GENERAL REQUIREMENTS: 1 LS $97,000.00 $97,000.00 $97,000.00 PASSENGER SECURED REROUTING 1 LS $175,000.00 $175,000.00 $176,000.00 REMOVE SECURITYAREA MILLWORK/LOW WALL 36 LF $50.00 $1,800.00 $1,800.00 ELECTRICAL UG DEMO 1 LS $4,000.00 $4,000.00 $4,000,00 SECURITY TRAILER SLAB DEMO/PREP 3,100 SF $2.00 $6,200.00 $6,200.00 SECURITY TRAILER SECURITY TRAILER -FNDN(MUD SLAB) 3,000 SF $7.00 $21,000.00 $16.00 $54,000 00 SECURITY TRAILER-CMU STEM WALLS/CONC RAMPS/RAI 1,296 SF $29.00 $37,584.00 $45.00 $58,320.00 SECURITY TRAILER -PURCHASE/SET SHELL 3,000 SF $38.00 $114,000.00 $70.00 $210,000.00 SECURITY TRAILER -ENCLSURE FINISH 2,100 SF $7.00 $14,700.00 $60.00 $126,000.00 SECURITY TRAILER -AUTO DOORS 2 PR $6,500.00 $13,000.00 $6,500.00 $13,000.00 SECURITY TRAILER-FINISHES 3,000 SF $10.00 $30,000.00 $35.00 $105,000 00 SECURITY TRAILER-MECH - 3,000 SF $17.00 $51,000.00 $38.00 $114,000.00 SECURITY TRAILER-PLUMBING 1 LS $18,000.00 $18,000m $26,000.00 $25,000.00 SECURITY TRAILER-ELECT 800A SERVICE 1 LS $175,000.00 $175,000.00 $1,76,000,00 $175,000.00 TELEPHONE 1 LS $7,600.00 $7,500.00 $7,500.00 $7.500.00 SECURITY TRAILER-ELECT UGHTS/MISC ELECT 3,000 SF $7.50 $22,500.00 $20,00 $60,000.00 SECURITY TRAILER-SITEWORK 1,000 $F $12.00 $12,000.00 $20,00 $20,000.00 FIRE/LIFE/SAFETY 3,000 SF $3.25 $9,760.00 $3,25 $9,750.00 SIGNAGE 1 LS $4,500.00 $4,500.00 $4,500.00 $4,500,00 RELOCATE SECURITY EQUIPMENT i LS $0.00 BY OTHERS BY OTHERS SECURITY AREA WORK-EXTERIOR SECURITY WALL-PERMANENT CONSTRUCTION 110 LF $195.00 $21,450.00 $21,450.00 SITEWORK @ EGRESS/ACCESS 450 SF $8.00 $3,600.00 $3,600.00 SECURITY AREA WORK-INTERIOR FINISH REPAIR @ RELOCATED EQUIPMENT 1 LS $7,500 00 $7,500.00 $7,500.00 SIGNAGE 1 LS $2,000.00 $2,000.00 $2,000.00 REMOVE/CAP ELECTRICAUTEL 1 LS $9,000 00 $9,000.00 $9,000.00 SUBTOTAL $858,084.00 $1,309,620.00 SCHEDULE GENERAL CONTRACTOR STAFF, FEE,OVERHEAD 4.5 MOS $303,275.46 $332,625.30 CONSTRUCTION CONTINGENCY 7: $81,295.16 $114,957.17 TOTAL $1,242,654.62 $1,757,202.47 TRAILER ONLY PRICE/SF $176.84 $327.36 DESIGN/PERMITS/AIRPORT OPERATIONS SOFT COSTS NOT INCLUDED NOT INCLUDED PALM SPRINGS INTERNATIONAL AIRPORT CONCEPTUAL BUDGET ESTIMATES MARCH 30,2004 i PALM SPRINGS,CA. PROPOSED SECURITY.REVISIONS DESCRIPTION QUANTITY UNIT UNIT PRICE SUBTOTAL TOTAL SCHEME D.1 REALIGN COVERED WALK GENERAL REQUIREMENTS: 1 LS $137,000.00 $137,000.00 PASSENGER SECURED REROUTING 1 LS $176,000.00 $175,000.00 ELECTRICAL RELOCATIONS 1 LS $60,000.00 $60,000.00 COVERED WALK DEMO 36 LF $50.00 $1,800,00 UG DEMO/PATCH 1 LS $20,000.00 $20,900.00 SECURITY BLDG SLAB DEMO/PREP 3,100 SF $200 $6r200.00 ELECTRICAL UG DEMO 1 LS $4,000.00 $4,000.00 COVERED WALK/FNDNS/PAVING DEMO 960 SF $40.00 $38,400.00 'COVERED WALK/FNDNS WALL DEMO 120 LF $150.00 $18,000.00 PLANTER DEMO 140 LF $150.00 $21,000.00 EARTHWORK 1 LS $35,000.00 $35,000.00 CONCRETE FNDNS INCL WALLS 300 LF $275.00 $82,500,00 CONCRETE FLATWORK 2,000 SF $9.00 $18,000.00 HARDSCAPE/LANDSCAPE 1 LS $45,000.00 $45,000.00 COVERED WALK TO MATCH EXISITING 1,200 SF $70.00 $84,000.00 SECURITY BLDG •FNON GENERAL REQUIREMENTS: 1 LS $97,000.00 $97,000.00 SECURITY BLDG -FNDN 3,000 SF $18.00 $64,000.00 SECURITY TRAILER-CMU STEM WALLS/CONC RAMPS/RAI 1,296 SF $45.00 $58,320.00 SECURITY TRAILER -STRUCTURE 3,000 SF $70.00 $210,000.00 SECURITY TRAILER -ENCLSURE 2,100 SF $60.00 $126,000.00 SECURITY TRAILER -AUTO DOORS 2 PR $6,500.00 $13,000.00 SECURITY TRAILER -FINISHES 3,000 SF $35.00 $105,000.00 SECURITY TRAILER -MECH 3,000 SF $38.00 $114,000.00 SECURITY TRAILER -PLUMBING _ 1 LS $25,006.00 $25,000.00 SECURITY TRAILER-ELECT 800A SERVICE 1 LS $175,000.00 $175,000.00 TELEPHONE 1 LS $7,500,00 $7,500.00 SECURITY TRAILER-ELECT LIGHTS/MISC ELECT 3,000 SF $20.00 $60,000.00 SECURITY TRAILER-SITEWORK 1,000 SF $20.00 $20,000.00 FIRE/LIFE/SAFETY 3,000 SF $3.25 $9,750.00 SIGNAGE 1 LS $4,500.00 $4,500.00 RELOCATE SECURITY EQUIPMENT 1 LS $0.00 BY OTHERS SECURITY AREA WORK-EXTERIOR SECURITY WALL-PERMANENT CONSTRUCTION - 110 LF $195.00 $21,460.00 , SITEWORK@EGRESS/ACCESS 450 SF $8,00 $3,600.00 SECURITY AREA WORK-INTERIOR FINISH REPAIR @ RELOCATED EQUIPMENT 1 LS $7,600.00 $7,500.00 SIGNAGE 1 LS $2,000.00 $2,000.00 REMOVE/CAP ELECTRICAL/TEL 1 LS $9,000.00 $9,000.00 SUBTOTAL $1,868,520.00 SCHEDULE GENERAL CONTRACTOR STAFF, FEE,OVERHEAD 6 MOS $561,453,80 CONSTRUCTION CONTINGENCY 10% $242,997.36 TOTAL $2,672,971,18 DESIGN/PERMITS/AIRPORT OPERATIONS SOFT COSTS NOT INCLUDED ;E—TMTT 1-A coat+ ued SECURED EGRESS POINT f w , e NEW 8'-0" HIGH SECURITY BARRIER V 1-1 c NEW EQUIPMENT AND RAILINGS BY TSA Rl" NEW 8'-0" HIGH SECURITY BARRIER � m i/iyF OF♦♦ G PALM SPRINGS INTERNATIONAL AIRPORT - SECURITY CHECKPOINT ANALYSIS na7xsx. 05 D201 020 a®AS'gr a.eNxm PLAN ® SECURITY NODE - SCHEME A M:\AOZ-Oi-A.DWG 11001 Wx 1" = 20`-0" Yo�rtn a Nql q S. TAYLOR nn. 3 30 04 Sexm �EIMTT 1-A cow Ul REVISE EXISTING DOOR SWING AREA OF RESTAURANT NEW FULL HEIGHT SECURED EGRESS EXPANSION WALL POINT i i A l 1 C II a NEW EQUIPMENT AND - o w F1 17 w o RAILINGS BY TSA e a / NEW S'-O" HIGH �..�ca SECURITY BARRIER RESTAURANT ENTRANCE TO I / A DF e mq.a PALM SPRINGS INTERNATIONAL AIRPORT- SECUR tt CHECK POINT ANALYSIS rnFww.08.0201.020 a�nS1e' ern PLAN ®SECURITY NODE SCHEME B M•\A02-01 B DWG 3W 1" = 20,-0" YMn qW 3pw p S.TA`fLOR yr 30.3 .04 1 1 . ,Exe1BTT 1-A mS9 f Ow NEW 8'-U" HIGH SECURITY BARRIER i NEW SCREENING ROOM 0 0 � 2 r " EQUIPMENT AND RAILING BY TSA SECURED EGRESS POINT c - QUFryF PALM SPRINGS 9ATER14ATMAL AIRPORT - SECURITY CHECKPOINT ANALYSIS ri.).nx..05.0207.020 �9 Y . Qensler PLAN O'SECURITY NODE - SCHEME C rxr M\AO2_Ot C.DWG 1" = 20'-0" ibiras tazwl w S. TAYLOR 3 3n nc � l 1 �E7t®TT1-A cones A` NEW RAMP UP NEW RAMP DOWN (L� p p LINE OF TEMPORARY ENCLOSURE i NEW EQUIPMENT BY TSA O i CANOPIES BETWEEN EXISNEW TING ROOF i p \ i NEW FULL HEIGHT WALL - 3. E \ � 5 NEW W-V HIGH SECURITY BARRIER QUEUING LINE BY TEA i SECURED EGRESS POINT \ QV�IJ i m � Mw TRANSPORTATION SECURITY CHECK POINT r..xxw 05 G201 020 Geode f PLAN 0 SECURITY NODE - SCHEME D M,\AD2 01 D DWG 3Sm Mdp re.. w,1• � pD_D• swwo S. TAYLOR 32904 1 EXHIBIT 1-13 includes: RECOMMENDED TERMINAL MASTER PLAN - SCHEME A FEBRUARY 23, 2004 RECOMMENDED TERMINAL MASTER PLAN - SCHEME 1A FEBRUARY 13, 2004 RECOMMENDED TERMINAL MASTER PLAN - SCHEME 1A FEBRUARY 13, 2004 o � � i i •p N II i i o h a i AE •�C; •• wu�n6aS.f9u3 i1 I' N ••WaN -u-bGS 7P3 lk red ` s : 1 e i w • e S \ N 1 � E7®iT l-B coWloord 1 Palm iprin<a IntornatloMl Airport 050201.017 TrrmimlMukr Pkn-Srhemr is F ,..yl3,20M7 OOMIM "lame 300Z`fF�"a937 rl aurayag-arja�aurjyl^�!"'aaS LTO'lOZOYO - ljodjlV Inongwo;nl 62UPdt ailed SOMMOMEN EXHIBIT 2-A includes: DOT-FAA-AWP620.1 FAX 03/09/2004 FAA SAFETY STDS BR (May 6, 2002 inquiry letter from Executive Director to FAA) (May 16, 2002 response letter from FAA to Executive Director) DOT-FAA-AWP620.1 LETTER 10/28/94 AIRPORT'S DIVISION (October 28, 1994 response letter from FAA to City Manager) (October 28, 1994 Instrument of Release for 39.07 acres) DOZIER APPRAISAL COMPANY 4/16/04 WWTP APPRAISAL (Appraisal for 24.96 acres at the WWTP for $5,636,000) } 08f;9/2004 15.46 310-*-6849 FAA SAFETY STDS BR PAGE . 04 EXHIBIT U.S. Department of Transportation. FEDERAL AVIATION ADMINISTRATION Western-PaGIfIc Region Airports Division P.O. Box 02007 Los Angeles, Callfomia 90009 FAX: (3101 726-6849 PHONE: (310) 726-3634 Myer frone Tony DATE MESSAGE SENT; 03109104. DESTINATION FAX NO.: 760. 318-3815 DELIVER THE FOLLOWING PAGES TO: NAME: BURRY GRiFFITH NO. OF PAGES INCLUDING THIS ONE: 3 I Raw Tony Garcia ROUTING NUMBER: AWP-620.1 Message: REGARDING.YOUR TELEPHONE INQUIRY ABOUT DISPOSING OF PREVIOUSLY RELEASED AIRPORT LAND,THE FOLLOWING 2 DOCUMENTS MAY HELP TO ANSWER YOUR QUESTIONS. IF YOU HAVE ANY MORE QUESTIONS AFTER YOU REVIEW THE ATTACHED INFORMATION,PLEASE GIVE ME A CALL. 03/09/2004 15:46 310-725-6849 FAA SAFETY STDS BR PAGE 02 EXHIBIT 2-A eatinue'd I City of PaIM 'Springs- DaNnni'mr of Arkdoa Palm Springs International Airport f 'T�R1pRA7Rp 1•i� � C9! FO RN�l 340o E.Tahquitz Canyon Way,Suite 4PC • I sLtt7 Spcinss.C�lifnrnia 92Z62-69fiG TEL:(760)318-3800 ' VAR(760)318-3815 ' TDD(760)864,9527 Mny 6,2002. Mr.John lvill igan AWP 621 FA.A.WESTERN PACNIC REGION 15000.A.viation Blvd. Lawadalc, CA, 90261 I2F1 P.4P_Y_mnil Release Dear John: As followup to the Inspector(ieneral.Audit ofPSP,which began in 1992,the Airport received the attached Inskrutncnt of Release(IR),dated October 20, 1994_ This letter deals with the"39-07 acres of lots 19 Sa 20 of Section 19." The a releases the subject parcels"from all of its conditions,reservations and restrictions ofthe QuXtclairn deed" 'Me Airport reads the release to mean that we may sell the subject parcel,which currently holds the City Wastewater"IMMent Plant, It is our intent to dQ $o fallawiDf,a fair market valuc approval of the property. The dollars raised from the salt will be credited to the Airport aad will be utilized only for Airport purposes. The property sale would be'subject to grant of easement to cover conditions one through fine of the'M We seek your concurrence with our understanding of the UL In the aftermath of-9111," the Airport continues to struggle to make ends meet and the We of this parcel(which is not eoutigudus to the Airport) . will go a long way wward assisting us. Sincerely, a iF. Yon AA.E Eftoutive Director.Airports Y AFS:ps ATTAC)IIVI Wr O3/09I2004 15:46 310-725-6849 FAA SAFETY STDS BR PAGE 03 ' `::;. :• ! it XIIII3IT 2-A continued U.S Department wastcmRedficRepton F�earaiAviaOonAdminficlraggn of Transportation Ahpotb oW ilon P.O.Box 02007 FoBoral Aviation lob Angeles,CA 60009�2W7 Administration May 16, 2002 Allen F. Smoot Exerautive Director-.Airports Palm Springs International Airport 3400 E. Tahquitz Canyon Way, Suite oFC 'palm Sprixogs, CA 92262-9966 Dear Mr. Smoot: Paaaa Springs International. Airport (FOP) ' Disposition of Released Land We are replying to your letter dated May 6, 2002, regarding the sale of a 'Parcel of land that is subject to certain conditions stipulated in the instrument of Release dated October 2A, U94. Your assessment, as stated in your letter, is correct. To reiterate, the land must be sold at ,fair market value and the net proceeds used exclusively for airport purposes. Most important, an avigation easement must bo incorporated 7.ato the conveysnre deed for the sale of the land. The wording for avigation easement is contained in paragraphs one through three of the Instrument of Release following the statement. "The release. . .is granted subjcCL to the Eollcwing conditions." if you have any questa,ons or wish to discuss this matter, please call me at (310) 725-3634. Sincerely, -Olriginal Signed by Tony Garcia Tony Garcia Airports compliance Specialist Ellsworth L. Chan, Manager safety and Standards nranch 'Y 9)3 BIT 2-A COAMMUed us Department WesternaPaelfio Region P.O.Box 9M7 of fronsporlation Airports DMslon WorWM Postal Center Federal Aviation Los Angeles,CA 9M Adtnlnistrahon October 28, 1994 CERTIFIED-RETURN RECEIPT Mr. Robert Parkins City Manager City of Palm Springs P. C. Box 2743 Palm Springs, CA 92263-2743 Dear Mr. Parkins: Palm Springs Regional Airport - Federal Aviation Administration Authorization Act of 1994, Section 514. In response to your request received September 20, 1994, same subject, an Instrument of Release is enclosed. This document covers the provisions of Section 514 of the 1994 Act by waiving all previous restrictions on the two parcels of land cited leaving only the standard conditions and the two conditions which were part of Section 514. The "Corporate Yard" property will be the subject of a separate action to be taken in the near future. If you have any questions, please feel free to give me a call. Please provide a copy of the recorded instrument for our files. Mr. Herman C. Bliss Manager, Airports Division Enclosure Instrument of Release Section 514 of 1994 FAAA Act EXhIIZBIT 2-A c0nt�ed' INSTRUMENT OF RELEASE WHEREAS,the UNITED STATES OF AMERICA,acting by and through the General Services Administrator,under and pursuant to the powers and authority contained in the Federal Property and, Administrative Service Act of 1949(63 Stat.377),and ilia Surplus Property Act of 1944(58 Stat.765)as amended,by instrument entitled"Quitclaim Deed"and dated September 15, 1949 did remise,release and forever quitclaim to the city of Palm Springs,California,its successors and assigns,all right,title and interest of the United States of America in and to certain property known as Palm Springs Regional Airport,subject to certain conditions,reservations,exceptions and restrictions;and, WHEREAS,the city of Palm Springs bas requested the United States of America to grant waivers from all of the terms contained in the deed of conveyance dated September 15, 1949,for two parcels of land. The waivers for these two parcels shall apply only to approximately 11 acres of lot 16 of Section 13 and approximately 39.07 acres of lots 19 and 20 of Section 19,used by the city of Palm Springs, California for general governmental purposes;and, WHEREAS,the Secretary of Transportation has been given specific authority pursuant to Section 514 of the Federal Aviation Administration Authorization Act of 1994,notwithstanding Section 47153 of title 49,United States code,to grant waivers on the two parcels of land. NOW,THEREFORE,in consideration of the benefits to accrue to the United States of America and to civil aviation,the]United States,acting by and through the Administrator of the Federal Aviation Administration tinder and pursuant to the powers and authority contained in Public Law 311 (63 Stat. 700), as amended,and applicable public laws,regulations and orders,hereby releases the following described land,including the buildings,structures and improvements thereon,if any,from all of the conditions, reservations and restrictions of the"Quitclaim deed"dated September 15, 1949,herein above referred to: A tract of land approximately 39.07 acres in size in Section 19,township 4 South,Range 5 East, San Bernardino Base and Meridian(SBB&M),being lots 19 and 20 and one-half of the adjacent r unnumbered strips on the North and South,all of the"Palm Valley Colony Lands"as shown on a map recorded in Book 14,Pago 652 of Maps,Records of San Diego County,California;and, A tract of land approximately 11 acres in size in Section 13,Township 4 South,Range 4 East, SBB&.K being a portion of Lot 16 as shown on the"Palm Valley Colony Lands"map recorded in Book 14,page 652 of Maps,Records of San Diego County,California,described as follows: Beginning at the East 114 corner of said Section 13,being the Southeast Comer of said Lot 16;thence North 0°IV 10"East,along the Easterly line of said Section 13 and Lot 16,a distance of 758.99 feet to a point of intersection with the Easterly extension of the Southerly line of Tract No.14,573,according to map thereof recorded in Book 104,'Pages 97 and 98 of Maps,Records of Riverside County, Catifornia;thence North 89"48'0 V W(Record per Tract No. 14,573 North 89'47' 48"W),a distance of 668.41 feet to the West line of said Lot 16;thence South 00 08'30" West,along said Westerly line,a distance of 761.16 feet to a point on the East-west centerline of said Section 13, said point being the Southwest corner of said Lot 16;thence South 89°59'29"East,along said East-West center line,a distance of 668.09 feet to the point of beginning. The release of the above two tracts from all the conditions,reservations and restrictions of said "Quitclaims Deed"is granted subject to the following conditions: (1) That the city of Palm Springs,California(Grantee), reserves unto itself,its successors and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described,together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used,for navigation of or flight in the said airspace, and for use of said airspace for landing on,taking off from or operating on Palm Springs Regional Airport. (2) That the Grantee expressly agrees for itself,its successors and assigns to restrict the height of structures, objects of natural growth and other obstructions of the hereinafter described real property to a height of not more than 530 feet above sea level, /NOEX OF .MA tOR F /L'/. / S i O kx/Sr/N c s . coN E."..� vrvl N E/DEfv m m m v, m /N TH! CONTRACT O FLOW ME EOR,/NG STROC RE W W W W ©'HEADWOR CS N < PR/MAR O SECONOAR DRAME w 38T B /aK yA I I Ii U1N OO l4Ml/NG TATIONS, TY NICKENER / ef1]sv.m \� Fsii m I9 r foss IV - QTNIGKENE 0 SLUDGE PU P/NG'TAT/ EpUTp,/e •EY \yM1o\ I] /P� I_ w/aacc. ae. I ; ®TRICKf✓N 'FILTERS ®y.�/DGE R .P L' 'SEA Y/NG BED'' sEc. D efyjpji J L — JiL .Ao _ I SO AOM/NLST TION B4/LOIN NCJ•{i'P6'W /i:Ey' Ne'fE'¢G'N E.eEj O` •dT - } .. .. __ ]dPE EIXE/O.CO G CMLOR/NC DU/LD/NB MroAS' fAM/OA0.� •:- q "OG Tq{ t p�•67 ��SI I O MdINJENA ICE BUILDING , P-•F'M e`z H' -_ '.?Ak' ,•.._ �l P,, 1iMµ y_ `L I i ©ANAEROD/ O/GEETER SLUDGE O ZYING DE09 =` -``c® }•�3`- R:!': "r 6%�nT�[ MA I Q Y I u I 10 SSCONOAR CL4R/£/C'RJ = ER/AN FIL74RS C /2 cHLOR/NE ONTACT UNIT N.5 o0.0 c «e l+ a �4 I I — �. Nm P—'" /WLeo / I l3 PARK/RR/ AT/ON PUMP/N STATION - u I ��'1Jn I✓�I I 1� S j Flo B R ' I ®sEtONDA Y EFFLUENTN (O/NG POND PERCOLAT/IN PONDS r N SE.6Q p o IS NEI J� II /J i` is y iF ml O AEROBIC DIGESTER I Y ,� J 6p •b `— TII `'I���y,F�?I vf•Ia. sA 2 eIE�ic 4 IL_ J I f/9earr _ a MdJ'SO'6 N � '1 ] ETE.a¢ Beat• (-- c5S.I0' Sun, ' JI R $W e -a t31 .o� :�. p ' L rRl NJj i \\;\ & •'\ i�a b 0 sn.v' L wasvea'x 3 �__ 12� IW. D _ N.695 LCL ANION A, WAS Sx 6Tc.xe_ _c]cRs• _ '— PALM Y1YY fAV.K .XQf dS'EE`N ¢]O!/% i A5'Y%P. CANYO NEI.43/^N EC+fT.S!' �i iW.CWYC.N .ON. .!o• N NSA OJ/Jc E.1P5%TP ^>S�- —3^fSLT =3`L'l= 9T! _ ClLf= 3'lSP1 -J3' Lr __ •S=�_� N E/fP N ff GIX BENCH ARK "NC A SET oRBAS L C N /TAMPED AG.E.E.M.CANOE RESET THE RASE LME FOR THIS PRO✓Ecr is T E /9TE'SIFT I N.E.CORNER F WACKWdY PLANT E STERLY PROP RTY L/NE W/r - am AT THE ADM N[sTRAT/ON D /LD/NG OF MONuME TS AS sNDW ALED /'x 2•I rA&ZS 0 THE WASTE ATER TREATM NT 'WERE SE FOR AER/AL RVEY NORl20 74.4ND PLANT. E EV.EGE.TOO. - VER7/Cq CONTROL AN SHOWN WOR WINGS THuE THESE M Y BE SEO lF ERIF/ED BY CO FRACTOR m W w THAJ TH y HAVE NOT D EN DIETORDE t n +cM1Lc SAME9 M. MO NTGOMERY CITY OF WASTEWATER TREATMENT PLANT -UPGRANE SN E Errz m'mNur IN •pr'y Q_`�.p oPrA/ CONSULTING ENGINEERS, INC. L'I= PALM SPRINGS ownv,n=I - Ixsm nrz rur wlDlxuwli FXH[BIT 2-A oo,ritinued DOZIER APPRAISAL COMPANY Resort and Urban Property Appraisers Valuation and Financial Consultants 73-255 EL PASEO,SUITE 17 PALM DESERT,CALIFORNIA 92260 RAYMOND L.DOZIER MAI TEL.(760(760)776-4200 CERTIFIED GENERAL APPRAISER FAX(760)776-4977 LICENSE#AGO04590 E-MAIL Dozierap2misal@dc.m.com April 9,2004 City of Palm Springs Mr.Troy Butzlaff,Assistant City Manager 3200 E.Tahquitz Canyon Way Palm Springs, CA 92262 RE: `As-If Vacant"Market Value Appraisal of 24.96 Acres located on south side of Demuth Park and west of Gene Autry Trail, Palm Springs, CA Mr.Butzlaff. Enclosed is an appraisal I have made of the "AS IF VACANT" Market Value of 24.96 acres located on the south side of Demuth Park west of Gene Autry Trail, Palm Springs, California. This appraisal was made at the request and agreement between The City of Palm Springs and Dozier Appraisal Company. The purpose of the appraisal is to estimate the "AS IF VACANT"MARKET VALUE of the property's REAL PROPERTY INTEREST if sold to a single purchaser as of the date of appraiser's inspection. The hypothetical condition of the "AS IF VACANT" is defined as if the existing water treatment plant improvements as well as any on-site landscaping improvements do not exist. However, the appraisal will take into consideration existing off-site improvements. The function or use of this appraisal is for possible sale. The property rights being appraised establish the "FEE SIMPLE INTEREST" of all future benefits that maybe derived from the property's present or possible use, except for existing easements, and rights-of- way of record. To make this appraisal, Raymond L. Dozier, MAI, and Charles 1. Hansen, independent contractor, have made personal inspections of the subject property. The effective date of this valuation is April 9, 2004. This report is subject to the enclosed Assumptions and Limiting Conditions and the Certification of Value and The Scope and Extent of the Data Collection Process,pages 13 & 14 of this report. The appraisal will make a hypothetical assumption that the existing water treatment plant improvements do not exist. In addition, an extraordinary assumption will be made in that a proposed avigation easement over the property does not exist. Lastly, our conversations with the city indicated that if the property was owned privately, and vacant, the most probably present or future development would be for low to medium density residential. Consequently, although actual and General Plan Zoning do not indicate residential, the appraisal is making another hypothetical condition, that it is reasonably probable to change the zoning, if vacant, to low and medium residential density of 6 to 10 units per acre. DOZIER APPRAISAL COMPANY PIP , r,.. _ . Paget Dozier Appraisal Company The intention of this appraisal report is to comply fully with FIRREA appraisal guidelines, as well as the current Uniform Standards of Professional Appraisal practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation; and the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. The departure provision in USPAP shall not apply to this appraisal. The undersigned does not have any personal interest, either present or contemplated, in the subject property and certifies that fees, received or to be received, for the employment of my services are not contingent on the opinions reported herein. In addition, the undersigned meets the Competency Provision Standard (1.1a,b,c) as required by USPAP and has the knowledge and experience to complete the assignment competently. Based upon my investigation and analysis of the data gathered with respect to this assignment,I have formed the opinion that the"AS IF VACANT"Market Value of the subject property, as of the effective date April 9, 2004, is measured in the amount of. $5,636,000 (225,801/Acre) (FIVE MILLION SIX HUNDRED THIRTY SIX THOUSAND DOLLARS) Reasonable exposure time necessary to sell this property to a single purchaser prior to the date of this appraisal is estimated 4 to 6 months. Respectfully submitted, DOZIER APPRAISAL COMP Raymond L. Dozier,MAI f State Certified General Real Estate Appraiser CA.Cert.No.AGO04590 RLD GCJH-04.043_WastewaterPlant_Palm Springs.doe. DOZIER APPRAISAL COMPANY P ,..,r, .t r ,,,.. - ASSESSOR'S MAP T N I � NH QW 4rW • AWV 7 W 575.7.T h°� AWrt5O7' .3f2 60' �i �� 66 LOT 20 Its `NQ3.. V5 1R)'F h P; . PARCEL 'A" A0.4; a I ,A. 24.96 ACRES.GROSS L�T 1 N8V49'WrW Wd96 674446' .' 67 V,4 P . DOZIER APPRAISAL COMPANY Palm Desert, California SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Property Type: "As-If Vacanf' Desert Land Location: Page 787 A/4 Thomas Guide,Riverside County, CA Street Address: 4325 Mesquite Avenue, Palm Springs, CA 92264 Identification: South of Demuth Park, west of Gene Autry Trail Pahn Springs, CA, Riverside County, California 92264. (See site map) Census Tract Number: 334.00 Purpose of the Appraisal: The purpose of the appraisal is to estimate the"AS IF VACANT" MARKET VALUE of the property's REAL PROPERTY INTEREST if sold to a single purchaser as of the date of appraiser's inspection. The hypothetical condition of the "AS IF VACANT" is defined as if the existing water treatment plant improvements as well as any on-site landscaping improvements do not exist. However, the appraisal will take into consideration existing off-site improvements. Function of the Appraisal: The function or use of the appraisal is to assist the City of Palm Springs in evaluating the property for possible sale. Scope of the Appraisal: Complete narrative format adhering to all FIRREA and USPAP Standards; Departure provisions shall not apply. Property Rights Appraised: The property rights being appraised establish the "FEE SIMPLE INTEREST" of all future benefits that may be derived from the property's present or possible use, except for existing easements, and rights-of-way of record. Street Frontage: There is street access to the property but no street frontage at the present time. Access: Property has direct access from a southern extension of Vella Road, via Mesquite Avenue I Site Size: 24.96 Acres Gross f DOZIER APPRAISAL COMPANY Palm Desert, California '' R SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Site Shape: The subject is an irregular shaped parcel. Please Site Map. Zoning: • General Plan: Open Space "C"; Special Use "S"; Parks &Rec. "PR" • Zoning Map: Open Space "0" Unavailability of Information vital to the appraiser in connection with Information: this property was made available from various sources. The appraiser has been provided a survey, showing exact boundary lines or acreage, but has not been provided with a standard current title report, environment report, soil tests or other relevant data on the subject property. Topography: Subject site is approximately level at street grade. Drainage: Appears adequate. Containment in Floodplain: The subject is located in area shown as Flood Zone C defined as follows: (Areas outside the limits of 100 year flood to 500 year floodplains) Designated by F.E.M.A. Flood Insurance Rate Map, revised June 18, 1996, in Community Panel Number 060257 0006C. Flood hazard area and flood insurance is available but not typically required in this zone. Alex P. Meyerhoff, Principal Planner for the City of Palm Springs told the appraiser that there may be some flooding issues with the southwest corner of the property. Flood insurance is may be Improvements: None considered (except offsite improvements to site—i.e. streets and utilities, etc.) Utilities: Public utilities including water, sewer, electricity, telephone, and appear to be installed to the to the subject properly. Easements: Periphery utility easements encumbering subject property are assumed for this appraisal. DOZIER APPRAISAL COMPANY ' Pndn Deserl,California 9 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS T Environmental Issues: his report assumes this site is not nor has ever been contaminated with any form of toxic waste or hazardous substance. This site has been used for sewage treatment and wastewater recycling. Such a condition may or may not be present. The appraiser is not qualified to detect such substances. Therefore, if desired, the client should retain an expert in the field. Deductions and Discounts: No deductions or discounts were made in the valuation of the property. Indicated Market Value has not been reduced by the cost of holding or selling the property. Highest and Best Use • "As If' Vacant(No The appraisal will make a hypothetical assumption Improvements): that the existing water treatment plant improvements do not exist. In addition, an extraordinary assumption will be made in that a proposed avigation easement over the property does not exist. Lastly, our conversations with the city indicated that if the property was owned privately, and vacant, the most probably present or future development would be for low to medium density residential. Consequently, although actual and General Plan Zoning do not indicate residential, the appraisal is making another hypothetical condition, that it is reasonably probable to change the zoning, if vacant, to low and medium residential density of 6 to 10 units per acre. The subject site would be iready for immediate development to a residential use. Reasonable Exposure: (Prior) 4 to 6 months, Marketing Time (After): 4 to 6 months Most Probable Purchaser: An investor or developer of residential projects DOZIER APPRAISAL COMPANY Palm Desert.California in SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS n Trend Analysis: The Coachella Valley continues to attract increasing • Regional/City: numbers to live permanently and to vacation at its world-class resorts. Its agricultural industry, combined with increasing numbers of retired permanent residents, makes the area somewhat less vulnerable to economic cycles and provides a stable expanding base for real estate investment and commerce. The City of Palm Springs has traditionally experienced a slight upward trend in terms of population growth and increasing property values vary depending on area. It enjoys the advantage of a reputation of being a international resort destination. The legalization of gambling on Indian land brings new job creation in terms of new or expanded casino's, new hotels, and other gambling related activities. These new residents contribute to the need for increasing housing in the Palm Springs market area. The market if forecasting that demand and market values of properties similar to the subject vacant and currently zoned for residential use will increase moderately for the foreseeable future District: The City of Palm Springs and the Coachella Valley are well known as international resort destinations and as retirement communities. Per capita sales tax revenues are in line with other cities in the Coachella Valley, reflecting Palm Springs' location in the regional market. Demand for facilities, including new residential projects and neighborhoods, in the market area is expected to grow along with population so long as both the national and local economies continue to grow at a robust rate. DOZIER APPRAISAL COMPANY Palm Desert, California 11 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS I • District: Directly to the north of the subject is Demuth Park and to the north of that is primarily single-family residential housing. To the south is a golf course and to the west is more parkland. To the east is vacant I land extending to Gene Autry Drive. The subject property is the only large piece of land "As-Though Vacant' in this area that would be available for I housing development. Demand for vacant land to be developed for housing in Palm Springs has been increasing for the past several years. Current plans I being processed by the City Planning Department indicate significantly more residential units than has ` been true in the past. Considering increased residential demand and positive change to current market values, the market I is forecasting values to increase moderately over the foreseeable future so long as the national and state economies remain relatively strong. Market Value Estimate: t (April 9,2004) Cost Approach (Sales Comparison Technique): $5,636,000 ($225,801/Acre) ISales Comparison Approach: Not Applicable Income Capitalization Approach: Not Applicable FINAL INDICATION OF "AS IF VACANT"MARKET VALUE— FEE SIMPLE INTEREST $5,636,000 ($225,801/ACRE) Date of Last Inspection: April 9, 2004 IEffective Date of Value Estimate: April 9, 2004 I Date of Report: April 16, 2004 I DOZIER APPRAISAL COMPANY Palm Desert,California EXHIBIT 2-13 includes: PROPOSED FUNDING INITIATIVES MARCH 10, 2004 (March 10, 2004 Memo from Director of Aviation to Assistant City Manager) AIRPORT SECURITY AND SAFETY PROJECTS MARCH 25, 2004 (March 25, 2004 Memo from Director of Aviation to City Manager, Assistant City Manager and Director of Finance and Treasury) ` EXHIBIT 2--B y. CITY OF PALM SPRINGS Department of Aviation Palm Springs International Airport Palm Springs InhBatlonlAman AAR111Gtl/ESOIpPJ1iI MEMORANDUM DATE: March 10, 2004 TO: Troy Butzlaff,.Assistant City Manager PROM: Richard & Walsh, A.A.E.,.Director of Aviation SUBJECT: PROPOSED FUNDING INITIATIVES Thank you for providing me the opportunity to review with you the Airport's most recent proposal relative to some of its land-holdings. I am encouraged by your grasp of the challenges,the Airport is faced with and appreciate our open discussion. Toward that end, and to insure my understanding of our discussion, your office will: L Instruct Dozier to update the YR2000 appraisal for the 39.07 acres of lots 19 and 20 of Section 19 where the Wastewater Treatment Plant (WWTP) is located. 2. Within the 39.07 acres, there exists approximately 14.27.acres located adjacent to the WWTP property on which a portion of Demuth Park is located. If not already included within the afore-referenced appraisal, Dozier will perform a separate appraisal for this acreage. If an appraisal exists, Dozier'will update. 3. An appraisal will be conducted for Airport property, Parcel 1 of Lot 17, commonly referred to as the Boxing Club. This parcel, per the Airport's Land Inventory Map, also includes the County Building and the Police Department. This appraisal will take into account that the structure built on this property was built with County not Airport funds. The Airport will: 1. Provide your office with the Federal Aviation Administration (FAA) Land Release documentation for all referenced parcels. 2. Once all appraisals have been received, the Airport will proceed in moving forward with its proposal to sell the property(s) to the City and submit to the City'Council accordingly. The Airport proposes to update the City Council in closed session as soon as possible and plans to have a full,report ready for the Council's action at the next regularly scheduled City Council meeting. -.'a. i. V As you are aware, the Airport seeks to utilize funds received to underwrite its security initiative program of enhancing the Airport's passenger screening area from two-plus (2+) screening lanes to five (5) screening lanes. As proposed; this project will require the Airport to use its entitlement money received from the FAA over a two year period ($3.5 million/year). To receive this multi- year grant from the FAA, it is necessary for the Airport to provide a match of$1 million. Prior to the award, however, the Airport must first design/engineer the project and receive a bid from a qualified vendor. The Airport anticipates this cost to not exceed $500,000. Our time line is critical in that our bid must be in place to receive the grant by not later than June 1, 2004. Tangential to this proposal and not previously discussed, the Airport is in breach of one of the 92 GARB covenants relative to the requirement to have in reserve approximately 15% of the bond amount (approximately $2 million). Given the Airport's requirement, and in light of the proposed sell of the W WTP property and the two additional properties, it is my intent to insure the covenant through the sell of the additional properties prior to the proposed bond refinance of the 92 GARB series (under review). Please advise as to the accuracy of my understanding of our discussion and/or if you need further information. Thank you for your assistance in these matters; it is greatly appreciated. RSW/llp cc: David H. Ready, City Manager JEXHIBIT 2-B continued N. City of Palm Springs r Department of Aviation f Palm Springs.International Airport 760-318.3800 / 760-318-3815 Fax BarryGOci.palm-springs.ca.us 11 ii1m1pongs MEMORANDUM Date: March 25, 2004 To: David H. Ready;City Manager Troy Butzlaff, Assistant City Manager Thomas M..Kanarr; Director of Finance and Treasury From: Richard Walsh A.A.E., Director of Aviation Subject Airport Security & Safety Projects The Palm Springs International Airport intends to fund several Airport Security and Safety Projects to meet increasing passenger volumes year after year and to maintain regulatory compliance with Federal Aviation Regulation Part 139 and the Code of.Federal Regulations under the 1500 series: 1. 2004 PROJECTED BUDGET GAP Due to the Airport's current budgetary constraints, it is incumbent upon the Director of Aviation,with the support of the City Manager,to advance a recommended approach to meet the anticipated financial shortfall stemming from the proposed capital improvements mandated under the aforementioned regulations. The following information is presented for your review: t+ Estimated Budget Gap Calculation* $<115,999> 'a Landside Reserve Contribution** $<250,000>. t' Spec. CapitalProj. Contribution*** $<300,000> b Total Budget Gap Projection $<665,999> * (See 2004 Expense Summary Spreadsheet) * (AULA call for a $250,000 annual contribution with a cap at$750,000) ** (AULA calls for a$300,000 annual contribution with a cap at$850,000) 2 PROPOSED MULTI-YEAR SECURITY AND SAFETY GRANTS FOR FEDERAL FY04105 &FY05/06 Numerous complaints have been filed with the Mayor and the City Manager relative to passenger screening processing times at the current security checkpoint. The Airport has pro-actively sought federal aid with the Federal Aviation Administration and the Transportation Security Administration to address this issue. It is anticipated that we will receive FAA entitlement funds to solve this problem. In summary; b Anticipated FY04/05 FAA Entitlement Funds $3,500,000 4 Anticipated FY05/06 Entitlement Funds $3,500,000 t' Airport share needed for Federal Grants * $1,500,000 " (Does not include $5,000,000+ in other related safety and security improvements in the out years for FY06/07 and beyond) Y . � f r Airport Security&Safety Projects Page 2 of 2 3. PROPOSED FUNDING INITIATIVE ALTERNATIVES Several proposed funding initiative alternatives that will help the Airport recover from the estimated budget gap shown above and provide a funding source to receive federal grants have been reviewed by the Director of Aviation. They include: .b WWTP Transfer of Assets FMV Estimate* $4,044,300 =`a Defer Admin Sery Charge/PD&FD Overhead** $1,029,282 b City.sponsored loan to Airport*** $1,865,999 b ' Do Nothing Approach**** $ 0 * (Based on 4-year old appraisal est. $3.9 million plus 3.7% CPI adjustment; updated appraisal required) ** (March 6, 2002 Council approval of$318,485 waiver PD&FD Overhead due to 911; proposed annual deferred payment until of$1,029,282 until WWTP is sold) *** (Short term solution causing additional deficit due to interest payment) **** (Risk loss of all Federal Grants; passenger traffic decrease; loss of revenue to the Desert Resort Communities) 4. RECOMMENDATION .That the City Council approve an enterprise fund transfer between the Airport and the WWTP at an estimated amount of$4,044,300 as fair market value for the appraised value of the airport property located at the W WTP. The FAA has authorized the City of Palm Springs through an Instrument of Release dated October 28, 1994 to sell the land and for all proceeds to be exclusively used for airport.purposes. . da WWTP Transfer of Assets FMV Transaction* $4;044,300 b Estimated 2004 Budget Gap Calculation** $ 665,999 b WWTP lease payment reserve offset *** $ 800,000 b Airport share needed for Federal Grants**** $1,500,000 * (Based on 4-year old appraisal est. $3.9 million plus 3.7% CPI adjustment; updated appraisal required) ** (See 2004 Expense Summary Spreadsheet) *** ($401,000 WWTP lease payment offset by$800,000 setback from transfer in reserve account for 2 years) **** (Funding needed for FY04/05&05/06 Federal Grants) Airport staff has reviewed these potential alternatives and respectfully request your review and acceptance of the proposed recommendation.'I look forward to discussing this issue in full at our 3:00 p.m. meeting on Friday, March 26, 2004. Your support toward a resolution in correcting these operational deficiencies is imperative and must be in place no later than June 1,2004 in order for the Airport to receive federal grant allocations. Your immediate attention to this matter Is greatly appreciated. Thank you for your assistance. r EXHIBIT 2-C includes: AERIAL DEPICTION AND OVERLAY OF PROPOSED PARCELS (APN 680020051 Lot 20 &APN 680020052 Lot 19 39.07 acres; WWTP sale of 24.96 acres) kj A y c a, APN , APN 680020051 680020052 ra Lot'2Q Lod_ 19 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING SALE OF PROPERTY BETWEEN THE AIRPORT AND THE WASTE WATER TREATMENT (WWTP) FOR $5,636,000 WHICH IS BASED ON A REVISED APPRAISAL COMPLETED BY DOZIER APPRAISAL COMPANYON APRIL 16,2004 SHOWING THIS AMOUNT AS FAIR MARKET VALUE FOR 24.96 ACRES OF AIRPORT PROPERTY LOCATED IN SECTION 19, LOTS 19 AND 20 AT THE WASTE WATER TREATMENT PLANT AS ALLOWED UNDER A FEDERAL AVIATION ADMINISTRATION INSTRUMENT OF RELEASE DATED OCTOBER 28, 1994 INCLUDING ALL REQUIRED CONVEYANCES AND PERTINENT DOCUMENTATION IN A FINAL FORM APPROVED BY THE CITY ATTORNEY. WHEREAS the City of Palm Springs, Department of Aviation("AIRPORT')was economically affected by the terrorist events of September 11, 2001 and is still recovering from these impacts; and WHEREAS the"AIRPORT' has spent down all available reserves to fund critical safety and security projects for the Transportation Security Administration (TSA); and WHEREAS the "AIRPORT' has identified additional federal projects in its Airport Capital Improvement Program (ACIP) that are necessary for safety and security enhancements primarily related to passenger screening; and WHEREAS the"AIRPORT'anticipates receiving a multi-yeargrant from the Federal Aviation Administration for projects listed in the ACIP including passenger screening and holdroom expansion; and WHEREAS the"AIRPORT' owns 24.96 acres of property located in Section 19, Lots 19 and 20 at the Waste Water Treatment Plant ("WWTP"); and WHEREAS the "AIRPORT' has the ability through a Federal Aviation Administration Instrument of Release dated October 28, 1994 to sell this property and use the net proceeds for funding project design and for matching grant amounts for ACIP development; and WHEREAS the "WWTP" has reserves in excess of $10,000,000 which can be used to purchase the"AIRPORT'property based on a recently revised appraisal dated April 16,2004 of the 24.96 acres of "AIRPORT' property at the "WWTP" for a fair market value of $5,636,000; and WHEREAS the net proceeds from the sale of the "AIRPORT' property to the "WWTP" will be used solely for"AIRPORT' purposes and shall not be diverted for any other use other than the continued development of the "AIRPORT'. WHEREAS the City of Palm Springs, upon sale of the property shall be the sole owner of the 24.96 acres at the "WWTP" as shown. 1075 NOW THEREFORE BE IT RESOLVED that the City Council authorizes the City ME. proceed with the sale of property and execute the transaction between the "AIRPOR the "WWTP" as of May 5, 2004, ADOPTED this day of 2004. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED AS TO FORM