CITY COUNCIL STAFF REPORT
DATE: March 11, 2026 CONSENT CALENDAR
SUBJECT: RATIFICATION OF CONSTRUCTION AGREEMENT 25B480 OF AN
EMERGENCY CONSTRUCTION CONTRACT IN THE AMOUNT OF
$1,103,944 TO SCHINDLER ELEVATOR CORPORATION FOR AIRPORT PROJECT PSP 26-10, REMOVAL AND REPLACEMENT OF
ESCALATORS
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
In accordance with Section 7.03.09 of the Procurement and Contract Code, the City Council shall ratify the construction agreement and adopt the specifications and work details of the project. Approval of this item will allow staff to proceed with the construction of this capital project, with a bid price of $1,103,944.
RECOMMENDATION:
1. Ratify Construction Agreement 25B480 for Airport Project PSP 26-10, for the Removal and Replacement of Escalators, (“the Project”).
2. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $110,394 with all change orders reported to the City Council.
3. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Disclosure forms (Attachment B) submitted on February 10, 2026, Schindler Elevator Corporation is registered in the states of New Jersey and California.
City Council Staff Report
March 11, 2026 -- Page 2
Ratification of Construction Agreement 25B480
BACKGROUND:
The Bono Concourse, constructed in 1999, was originally equipped with base-grade commercial escalators. These escalators connect the ground level Courtyard to the second-level Bono Concourse, where ten passenger gates are located for large aircraft.
The escalators are depicted in Figure 1 – Existing Bono Concourse Escalators.
Figure 1 – Existing Bono Concourse Escalators
The escalators are experiencing accelerated wear and operational issues due to prolonged exposure to extreme outdoor conditions, particularly high heat, direct sunlight and debris from winds. These environmental stressors have contributed to frequent malfunctions, increased maintenance demands, and reduced reliability of the units. The escalators are also generating excessive noise, which is impacting the passenger experience.
In 2025, the Airport incurred $204,795 in additional expenses for escalator repairs that were outside of the scope of work of Cooperative Purchase Agreement No. 23C004 with TK Elevator Corporation for the maintenance and repair of the City’s escalators. As passenger volumes continue to grow, reliable vertical transportation is essential to maintain efficient passenger flow and assist in ADA compliance, especially during peak travel periods.
City Council Staff Report
March 11, 2026 -- Page 3
Ratification of Construction Agreement 25B480
On August 8, 2025, the Airport’s on-call engineering consultant, RS&H, performed a detailed site investigation of the escalators in collaboration with Airport staff and TK Elevator Corporation. RS&H provided an assessment report (Attachment C) of the escalator’s current condition, and options for repairing or replacing the escalators. The options provided for the repair or replacement of the escalators included the following: In- Truss Modification ($1,400,000), New Construction (Complete Replacement) ($7,700,000), and Kone Repair-in-Place ($435,000). The assessment concluded that the best solution was an in-truss modification with a scope of work that included performance- based specifications for the replacement units. Staff discussed the possibility of incentivizing the installation of the escalators to accelerate the completion of the project with the bidding contractors, and staff was advised by the contractors that it would not be feasible to incentivize production. Staff determined that installing both escalators at the same time was the only viable option to reduce construction time.
Airport staff and RS&H presented the findings of the assessment to the Airport Commission on June 18, 2025. The Airport Commission voted unanimously (19-0) to recommend moving forward with the in-truss modification project.
The Project will allow for updated technology, improved energy efficiency, and modernized components, all of which support the Airport’s goals of enhancing the passenger experience and reducing operational downtime. The work for the Project will include removal of the escalators with the exception of the structural truss, and the escalators will be replaced with all new equipment that will be custom fit to the existing space constraints at the Bono Concourse. The plans and specifications will enable the Airport to install new escalators that will meet passenger demand and can withstand the outdoor operating environment. Furthermore, the Airport has already implemented additional recommendations for reducing the daily run time of the escalators based on passenger traffic.
On September 18, 2025, Airport staff notified the City Manager that both Bono Concourse escalators were inoperable due to mechanical issues, the passenger elevator was out of service due to ongoing refurbishment, and the backup cargo elevator was also inoperable due to mechanical issues. This situation created a significant accessibility concern and directly impacted ADA access for passengers. In response, staff requested an emergency authorization to proceed with direct negotiations to select a qualified contractor for the In- Truss Modification of the two escalators located at the Bono Concourse. On September 18, 2025, the City Manager authorized the Emergency Procurement to contract for the requested services.
On September 18, 2025, the City Manager notified the City Council of the emergency authorization to remove and replace the Airport’s escalators and staff took the following actions:
City Council Staff Report
March 11, 2026 -- Page 4
Ratification of Construction Agreement 25B480
Airport staff collaborated with RS&H to prepare the bid package that included the project scope and specifications, as-builts, and bid schedule. The bid package was completed on September 29, 2025.
On September 30, 2025, Airport staff emailed the bid package to Kone Corporation, Schindler Elevator Corporation, Otis, and TK Elevator Corporation. A mandatory job-walk was held on October 8, 2025, and Kone Corporation, Schindler Elevator Corporation, and TK Elevator were in attendance.
The emergency procurement for the removal and replacement of the escalators does not include ongoing service and maintenance. Staff will coordinate with the Procurement Department to solicit competitive bids for a separate service and maintenance contract for the new escalators and the Airport’s existing three elevators. The scope of work for the service and maintenance contract will include routine inspections, system adjustments, cleaning, lubrication, preventative maintenance services, and the coordination and coverage of the annual inspections.
STAFF ANALYSIS:
On October 29, 2025, two (2) bids were received from the following contractors:
Company Location Bid Amount
Schindler Elevator Corporation Costa Mesa, CA $1,103,944 Kone Corporation Costa Mesa, CA $1,323,420
Local Business Preference Compliance
Section 7.09.030 of the Palm Springs Municipal Code (“PSMC”), “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose workforce resides within the Coachella Valley. Although Schindler Elevator Corporation is not considered a local business, they have demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials from local businesses.
Project Labor Agreement (PLA)
This Project is subject to the City’s Project Labor Agreement dated August 31, 2021, which is on file with the City. The Contractor and all Subcontractors of any tier are to include contractual provisions in all contracts they enter for the performance of the work requiring the Contractor and all Subcontractors to comply with the provisions of the PLA prior to the commencement of work and at no additional cost.
Bid Analysis
City Council Staff Report
March 11, 2026 -- Page 5
Ratification of Construction Agreement 25B480
The bid documents submitted were reviewed and it was determined that Schindler Elevator Corporation (“the Contractor”) complied with the instructions to bidders and has submitted the lowest responsive and responsible bid. Staff recommends that the City Council ratify Construction Agreement 25B480 with Schindler Elevator Corporation. The executed agreement is included as Attachment A and is subject to changes/revisions agreeable to the City Manager and City Attorney.
Project Timeline
Installation of the escalators is scheduled to begin in the second quarter of 2026 and the Project will be completed in the fourth quarter of 2026. Completing the work during the summer is important, as there is a decrease in passenger traffic, allowing operational impacts to be minimized. The Bono Concourse passenger elevator will be in service to provide accessibility, and the cargo elevator will be available as a backup. The Airport also has a contract with Sierra Aviation Group to assist passengers with portering their baggage up the stairs to the Bono Concourse.
ENVIRONMENTAL ASSESSMENTS:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff has determined that Airport Project PSP 26-10 for the removal and replacement of escalators, is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports the City of Palm Springs’ Strategic Plan Broad Goals of Infrastructure and Facilities, and it also supports the Airport’s 2025-2029 Strategic Plan’s Strategic Priorities for Infrastructure.
FISCAL IMPACT:
The Project is anticipated to be funded through Passenger Facility Charge (PFC) revenues. The City will submit a PFC application to the Federal Aviation Administration (FAA) in March 2026, requesting authority to use PFC funds for the Project. The application process includes public notice, airline consultation, and FAA review, culminating in a Final Agency Decision (FAD). Once the FAD is issued by the FAA, PFC revenues may be applied toward eligible project costs.
Although no General Fund dollars will be used, expenditures for the Project are currently programmed in Fiscal Year 2025-2026 in the Department of Aviation, Capital Improvement Project Account 4167065-80000. Upon FAA approval, eligible project costs City Council Staff Report
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Ratification of Construction Agreement 25B480
will be reimbursed with PFC revenues, and adjustments to the funding source will be reflected in future budget amendments as needed.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett, Jr.
City Attorney: Oscar Verdugo
City Manager: Scott Stiles
ATTACHMENTS:
A. Construction Agreement 25B480
B. Public Integrity Disclosure Form
C. RS&H Assessment