CITY COUNCIL STAFF REPORT
DATE: NOVEMBER 12, 2025 CONSENT CALENDAR SUBJECT: APPROVE AN INCREASE IN GROUND TRANSPORTATION FEE FOR
STANDARD PICK-UP AND PRE-ARRANGED APPOINTMENTS BY
TAXICABS AT THE PALM SPRINGS INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve the rate increase in the ground transportation fee from $3.25 to $4.00 for standard pick-up and pre-arranged appointments by taxicabs at the Palm Springs International Airport (Airport) effective December 1, 2025.
RECOMMENDATION:
1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN INCREASE IN THE
TAXICAB GROUND TRANSPORTATION FEE AT THE PALM SPRINGS
INTERNATIONAL AIRPORT”
2.Authorize the City Manager or designee to execute all necessary documents.
BACKGROUND:
All taxicab companies are permitted through the SunLine Transit Agency. Taxicabs originally operated under the Airport Ground Access fee structure. Prior to October 6, 2006, the fee for a taxicab to access the Airport was $1.00. After October 6, 2006, this access fee was raised to $2.50 for a standard airport pick-up and $3.00 for a pre-arranged appointment. The Airport Ground Access fee remained at these rates through June 30, 2023.
On July 1, 2023, the Airport Ground Access fee was transitioned into a Taxicab Ground Transportation Fee and the amount was increased to $3.25 for each standard pick-up or pre-arranged appointment. In addition to each taxicab company paying a $300 annual company fee, taxicab companies are required to pay a $120 annual vehicle fee and a $35 transponder fee for each vehicle.
City Council Staff Report
November 12, 2025 -- Page 2
Increase in Taxicab Ground Transportation Fee
On April 9, 2025, the City Council approved an increase in the Transportation Network Company (TNC) Fees from $3.00 to $4.00 for each pick-up and drop-off by any TNC operating at the Airport. The TNC Ground Transportation Fee increase went into effect on May 1, 2025 with the adoption of a new TNC Operating Permit Agreement.
The total fees collected for Fiscal Years (FY) 2022, 2023, 2024 and 2025 are reflected in Table 1.
Table 1
NOTE: Annual Transponder Fees are not included in Table 1.
On October 15, 2025, the Airport Commission voted (17-Yes and 0-No) in favor to recommend to City Council the approval of an increase in ground transportation fee from $3.25 to $4.00 for standard pick-up and pre-arranged appointments by taxicabs at the Palm Springs International Airport effective December 1, 2025.
STAFF ANALYSIS:
To better understand the changing dynamics of ground transportation to and from the Airport, passenger activity and modes of transportation data in Table 2 for Calendar Years (CY) 2021, 2022, 2023, and 2024 were analyzed.
Table 2
TAXICAB FEES FY2022 FY2023 FY2024 FY2025
CITY CAB $54,625 $37,173 $81,904 $62,605
COACHELLA VALLEY TAXI LLC $66,045 $44,773 $98,226 $86,951 PALM SPRINGS TAXI $30,131
YELLOW CAB OF THE DESERT $66,853 $44,605 $68,834 $54,025 SUB-TOTAL$187,523 $126,550 $248,963 $233,711
TNC FEES FY2022 FY2023 FY2024 FY2025
LYFT $274,530 $428,562 $367,149 $354,661
UBER $611,271 $714,009 $861,741 $1,020,246
SUB-TOTAL$885,801 $1,142,571 $1,228,890 $1,374,907
TOTAL FEES $1,073,324 $1,269,121 $1,477,853 $1,608,618
(Started July 2024)
MODE OF TRANSPORTATION CY2021 % CY2022 % CY2023 % CY2024 % TNC (PICK-UP / DROP-OFF) 185,014 44% 340,353 53% 394,626 55% 419,310 55% CAR RENTALS 174,960 41% 227,405 35% 258,670 36% 262,484 34% TAXI (RIDES) 57,715 14% 67,483 11% 58,474 8% 72,916 10% COMMERICAL CHARTER 4,792 1% 5,921 1% 6,397 1% 7,241 1%
BUS 39 0% 111 0% 233 0% 208 0%
PEER-TO-PEER (TURO) 134 0% 1,781 0%
TOTAL ACTIVITY 422,520 641,273 718,534 763,940
ENPLANED PASSENGERS 1,047,643 1,500,618 1,624,012 1,614,684 DEPLANED PASSENGER 1,045,300 1,481,226 1,613,313 1,616,230 TOTAL PASSENGERS 2,092,943 2,981,844 3,237,325 3,230,914 Started December 2023
City Council Staff Report
November 12, 2025 -- Page 3
Increase in Taxicab Ground Transportation Fee
In reviewing the data collected, one trend has emerged. As passenger activity increases, the number of passengers using a mode of transportation increases. The mode that has the majority of activity is TNC, which is correlated by the increase in collected fees.
Taxicab activity has also grown with the start-up of Palm Springs Taxi in July 2024.
Unfortunately, Yellow Cab of the Desert ceased operations in September 2025.
TNCs are assessed a ground transportation fee for each drop-off and pick-up at the Airport based upon Geo-Fencing data. Taxicabs are only assessed a fee for a standard airport pick-up and for a pre-arranged appointment based upon their transponder.
The Airport is proposing an increase in the Taxicab Ground Transportation Fee for each standard pick-up and pre-arranged appointment from the current $3.25 to $4.00 effective December 1, 2025. This increase is based upon analysis of airports of similar sizes and within the same geographic region of the country as depicted in Table 3.
Table 3
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
The Approval of this action supports City Council’s Strategic Plan Broad Goal of Economic Development, as well as the Airport’s Strategic Plan Priority 4 – Goal 2, Maximize non-aeronautical revenue opportunities for the City.
FISCAL IMPACT:
All commercial ground transportation providers at the Airport, including Taxicabs, Commercial Transportation, Car Rentals, and TNCs are required to pay fees to operate.
The Airport Fee Schedule as of March 1, 2025, as published on the Airport website, accurately reflects the fees being collected.
AIRPORT STANDARD
PICK-UP
PRE-ARRANGED
PICK-UP DROP-OFF ADDITIONAL CONSIDERATIONS
Fresno Annual Fee Annual Fee Annual Fee Annual Permit Fee - Unlimited Access to Airport Long Beach $3.00 $3.00 $3.00 TNCs and Taxicabs are charged the same amount Ontario $4.00 $4.00 No Charge Board Approved
Palm Springs (current) $3.25 $3.25 No Charge Last increased July 1, 2023 Palm Springs (proposed) $4.00 $4.00 No Charge TNC $4 eff 5/1/2025 / Proposed eff 12/1/2025 City Council Staff Report
November 12, 2025 -- Page 4
Increase in Taxicab Ground Transportation Fee
With the proposed increase in the Taxicab Ground Transportation Fee for each standard and pre-arranged pick-up at the Airport, the estimated revenue from Taxicab operations will be approximately $240,000 for FY26 (a decrease of $6,289 or -3% over FY25).
Without the proposed increase, the approximate revenue for FY26 would be $186,000 or -23%, due to the loss of Yellow Cab of the Desert. The Taxicab Ground Transportation Fee will be reported in Airport Fund 415.38145 and will enable the Airport to invest in airport operations, customer experience, and capital improvements.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett
City Attorney: Jeff Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution