The URL can be used to link to this page

Home My WebLink About7/17/2002 - STAFF REPORTS (27) DATE: July 17, 2002 TO: City Council FROM: Executive Director- Airports AIRPORT LANDSIDE COMMERCIAL ACCESS FEES RECOMMENDATION: That the City Council approve an update to the Comprehensive Fee Schedule related to landside commercial access fees at the Airport. SUMMARY: This would update the access fees for landside operators (hotels, large buses, etc.) who access the Airport. These fees have not been updated in quite some time and in addition to additional security costs, an update to the fees is necessary. BACKGROUND: The majority of commercial access fees paid by landside operators have not been adjusted in some time. In addition, the current fee structure does not address the implementation of the Ground Transportation Center and the Automated Vehicle Identification (AVI) system. The proposed changes are intended to minimize the financial impact to the industry, streamline the fee structure for the AIRPORT, and recover expenses resulting from the implementation of security requirements mandated by the Transportation Security Administration (TSA). In order to communicate this proposal to the industry, a "Notice of Proposed Commercial Access Fee Changes" was distributed to the industry and posted on the Airport's Internet site (see Attachment 1). This notice identified the proposed changes, the timeline for implementation and was very specific in soliciting written comments from the industry. In addition to utilizing the Internet site, the notice was mailed and/or faxed to approximately 128 permitted commercial operators who use the Airport. The timeline as stated in the Notice is as follows: May 1. 2002 - Notice of Proposed Changes June 3, 2002 - End of comment period June 15, 2002 (on or about) - review by Airport Commission, Landside Sub- Committee. This meeting is open to the public and includes time for public comment. NOTE: If required, publication of the proposed fees and any changes due to user comments and/or the Airport Commission Landside Sub-Committee will be published. Publication will be via the Airport's Internet site, h_ttp://www.palmspringsairport.com July 3 2002 - review by Airport Commission. This meeting is open to the public and includes time for open comment. July 17 2002 - review and possible action by Palm Springs City Council. This meeting is open to the public and includes time for public comment. January 1, 2003-if approved by the Palm Springs City Council, implementation of the proposed fees. 4;OX 14' Commercial Access Fees July 17, 2002 Page 2 By the closing date of the Notice, no comments had been received from the industry. In addition, no firms were present at the Landside Sub-Committee meeting, which was held on June 19, 2002. PROPOSAL Category D (31 & over passenger vehicles) • Currently,the AIRPORT collects 10%of gross revenue from known or permitted operators; non permitted companies already pay a per trip fee $25.00. • The proposed change would establish a $20.00 per trip fee for all vehicles in this category and eliminate the 10% gross revenue collection. Monthly and One Time Permits • Currently, the AIRPORT provides monthly, weekly and one time access permits, all of which have an associated fee. • The proposed change would eliminate both the monthly and one time permits. This would streamline the permit process and address security concerns relative to tracking and controlling commercial vehicles. Weekly Permits • Currently, the AIRPORT collects a $15.00 Company fee and a $5.00 per vehicle fee. • The proposed change would reduce the Company fee to $10.00 per company, while the per vehicle fee would increase to $10.00 per vehicle. Annual Permits for Large and Small Hotels (less than 40 rooms) • The proposal would increase the annual permit to$200 for large hotels to match the annual permit fee paid by all operators engaged in landside activity- no change to the per vehicle fee. • The proposal would increase the fee to Small Hotel Operators by the same percentage (as large hotels), resulting in a company access fee of$80.00. • The per vehicle fees for all operators in this category are proposed to increase to $100.00 per vehicle for the first five (5) vehicles and $50.00 for each additional vehicle. Ground Transportation Center Property Damage Fund • The AIRPORT spent approximately 1.2 million dollars in constructing the Ground Transportation Center, which was completed in the year 2000. Approximately$30,000 per year is expended on routine custodial, landscaping,electricity,and parking lot maintenance. This cost was anticipated and is budgeted as part of the AIRPORT's annual operating budget. What is not budgeted for are the non-routine maintenance cost. Since the facility was opened,there have been several instances where other than normal maintenance was required. Things such as sinks being pulled off the wall, door locks altered resulting in inoperable locks, air conditioner controls being altered to the point that the controls had to Commercial Access Fees July 17, 2002 Page 3 be placed in a secure location and graffiti removal on the restroom stalls. • The proposed changes would establish a Ground Transportation Center (GTC) Property Damage Fund to recover costs of non-routine maintenance (damage/abuse) as well as improvements(flight information,vending machines, etc.)to the facility. All companies that utilize the Ground Transportation Center would be required to pay into the fund annually at the time of permitting. The proposed fee for the property damage fund is $25.00 per company. The proposed fees are shown in Attachment 2. The Landside Sub-Committee and the Airport Commission recommend City Council approval of this item. In addition, the Landside Sub-Committee recommended that these fees be reviewed every 2 years to ensure they are adequate to cover operating costs. This item was reviewed by the Airport Commission at it's regularly scheduled meeting of July 3, 2002. The proposed fee increases would take effect January 1, 2003. A Resolution is attached for City Council consideration. IU �.. .:a✓i>;`;zi� {mow MIKE N WILLIAMS, A.A.E. ACCEfy✓FiS OOI , A .E Deputy Director- Operations r Executl/ Director-Airports APP EDF c � City Manager Attachments: Attachment 1 - Notice of Proposed Commercial Access Changes Attachment 2 - Proposed New Fees Resolution REVIEWED BY DEPI OF FINANCE N:\WordPerfect\City council\Landside_Fee Proposal 07-17-2002.wpd Landside Fee Landside Fee Dposal05-02-2002.d oposalBreakdown.d 11 el PALM A.ox City of Palm Springs V uSA'Pi Department of Aviation Palm Springs International Airport c1 R>ORPtEO P 3400 Tahquitz Canyon Way,Suite OFC • Palm Springs,California 92262 q<I FO R\� TEL: (760) 318-3800 • FAX: (760) 318-3815 • TDD: (760) 864-9527 May 1, 2002 Proposed Commercial Access Fee Changes NOTICE IS HEREBY GIVEN that the City of Palm Springs, Department of Aviation (AIRPORT), is soliciting written comments from surface transportation operators that utilize the Palm Springs International Airport, for revisions to the City of Palm Springs, Comprehensive Fee Schedule. These proposed changes will adjust the commercial access fees for the Palm Springs International Airport. The majority of commercial access fees paid by landside operators have not been adjusted in some time. In addition, the current fee structure does not address the implementation of the Ground Transportation Center and the Automated Vehicle Identification (AVI) system. The proposed changes, which are contained in this announcement are intended to minimize the financial impact to the industry, streamline the fee structure for the AIRPORT, and recover expenses resulting from the implementation of security requirements mandated by the Transportation Security Administration (TSA). As an essential element of the overall transportation service provided by the Airport, written comments from surface transportation operators that utilize the Airport are encouraged. Written comments can be submitted as follows: City of Palm Springs Department of Aviation ATTN: Mr. Bill Weaver Landside & Contracts Administrator 3400 E Tahquitz Canyon Way, Suite OFC Palm Springs, CA 92262 FAX 760/318-3815 BiIIW(5ci.palm-springs ca us All comments must be received no later than 2:00 p.m. PST on June 3, 2002. ATTACHMENT A is a listing of the current fees and the proposed changes. Pmposox' Cor7xm.rcoi Access Free Chanyccs Mon", ? 2009 Pailu.`pt'inp Ir��`m�rtf7(ia�Esl irpn SUMMARY OF PROPOSED CHANGES Category D (31 & over passenger vehicles) Currently, the AIRPORT collects 10% of gross revenue from known or permitted operators; non permitted companies already pay a per trip fee $25.00. The proposed change would establish a $20.00 per trip fee for all vehicles in this category and eliminate the 10% gross revenue collection. Monthly and One Time Permits Currently, the AIRPORT provides monthly, weekly and one time access permits, all of which have an associated fee. The proposed change would eliminate both the monthly and one time permits. This would streamline the permit process and address security concerns relative to tracking and controlling commercial vehicles. Weekly Permits Currently, the AIRPORT collects a $15.00 Company fee and a $5.00 per vehicle fee. The proposed change would reduce the Company fee to $10.00 per company, while the per vehicle fee would increase to $10.00 per vehicle. Annual Permits for Large and Small Hotels (less than 40 rooms) The proposal would increase the annual permit to $200 for large hotels to match the annual permit fee paid by all operators engaged in landside activity - no change to the per vehicle fee. The proposal would increase the fee to Small Hotel Operators by the same percentage (as large hotels), resulting in a company access fee of $80.00. The per vehicle fees for all operators in this category are proposed to increase to $100.00 per vehicle for the first five (5) vehicles and $50.00 for each additional vehicle. Ground Transportation Center Property Damage Fund The AIRPORT spent approximately 1.2 million dollars in constructing the Ground Transportation Center, which was completed in the year 2000. Approximately $30,000 per year is expended on routine custodial, landscaping, electricity, and parking lot maintenance. This cost was anticipated and is budgeted as part of the AIRPORT's annual 2 Prcooszed Acc&, 67eG Ch<xngf,s May 1, 2002 F�r7��i;` s;.9+`HIidS IhP4?7/lLiii(H7{di PJY(?J71 operating budget. What is not budgeted for are the non-routine maintenance cost. Since the facility was opened, there have been several instances where other than normal maintenance was required. Things such as sinks being pulled off the wall, door locks altered resulting in inoperable locks, air conditioner controls being altered to the point that the controls had to be placed in a secure location and graffiti removal on the restroom stalls. The proposed changes would establish a Ground Transportation Center (GTC) Property Damage Fund to recover costs of non-routine maintenance (darnage/abuse) as well as improvements (flight information, vending machines, etc.) to the facility. All companies that utilize the Ground Transportation Center would be required to pay into the fund annually at the time of permitting. The proposed fee for the property damage fund is $25.00 per company. IMPLEMENTATION TIMELINE May 1, 2002 - Notice of Proposed Changes June 3, 2002 - End of comment period June 15, 2002 (on or about) - review by Airport Commission, Landside Sub- Committee. This meeting is open to the public and includes time for public comment. NOTE: If required, publication of the proposed fees and any changes due to user comments and/or the Airport Commission Landside Sub-Committee will be published. Publication will be via the Airport's Internet site, http://www.palmspringsairport.com July 3, 2002 - review by Airport Commission. This meeting is open to the public and includes time for open comment. July 17, 2002 - review and possible action by Palm Springs City Council. This meeting is open to the public and includes time for public comment. January 1, 2003 - if approved by the Palm Springs City Council, implementation of the proposed fees. As mentioned, all communication relative to these proposed changes shall be directed, in writing as outlined in this notification. We look forward to your participation in this process. Sincerely, Mike N Williams, A.A.E. Deputy Director - Operations N:\Rules_Regulations\Taxi Rules and Regulations\05-01-02.doc RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING RESOLUTION 20362, TO AMEND PALM SPRINGS INTERNATIONAL AIRPORT LANDSIDE ACTIVITIES AND GREETING SERVICES FEES. WHEREAS on June 5, 2002, the City Council adopted Resolution 20362; and 'WHEREAS Resolution 20362 is the City's Comprehensive Fee Schedule; and WHEREAS the City Council desires to amend the Comprehensive Fee Schedule in order to, amend Palm Springs International Airport Landside Activities and Greeting Services fees. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, that Resolution 20362, establishing the Comprehensive Fee Schedule, is hereby amended, by the following: EXISTING PROPOSED ACCESS FEES (Vehicle Classification) Category D: 31 & over Passengers 10% of Gross $20.00 per trip (Local known transportation companies) COMMERCIAL OPERATORS Weekly Permit Company Fee $15.00 per week $10.00 per week Vehicle Fee $5.00 per vehicle $10.00 per vehicle plus access fee plus access fee Hotel/Motel Courtesy (Annual Permits) Large Hotel/Motel Permit (over 40 rooms) Company Fee $100.00 per year $200 per yr Small Hotel (Less than 40 rooms) Company Fee $40.00 per year $80.00 per yr Vehicle Fees Vehicles 1 thru 5 $50.00 $100.00, plus All vehicles after first 5 $50.00, plus GROUND TRANSPORTATION CENTER PROPERTY DAMAGE FUND $25.00 per company ADOPTED this day of , 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager