CITY COUNCIL STAFF REPORT
DATE: MAY 12, 2026 CONSENT CALENDAR
SUBJECT: APPROVE CONSTRUCTION CONTRACT NO. 26P038 FOR PARKING
ACCESS AND REVENUE CONTROL SYSTEMS EQUIPMENT,
MAINTENANCE, AND SUPPORT AND CONTRACT SERVICES
AGREEMENT NO. 26P039 FOR A PREBOOKING AND RESERVATION
SYSTEM WITH SKIDATA, INC., FOR PALM SPRINGS INTERNATIONAL
AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will modernize and significantly enhance the parking experience at Palm Springs International Airport by approving Construction Contract No. 26P038 for Parking Access and Revenue Control Systems (PARCS) equipment, maintenance, and support in an amount not to exceed $794,118, and Contract Services Agreement No. 26P039 for a digital prebooking and reservation platform in an amount not to exceed $43,780 with Skidata, Inc.
The proposed upgrades will replace aging and unreliable parking infrastructure with a fully integrated, user-friendly system that allows travelers to reserve parking in advance, access real-time availability, and utilize seamless, contactless payment options. These improvements are designed to reduce congestion, improve traffic flow, and create a more efficient and stress-free arrival and departure experience for passengers.
In addition to improving the guest experience, the new system will strengthen operational reliability, enhance data and reporting capabilities, and support more strategic, data- driven management of one of the Airport’s most important revenue sources. Public parking currently generates over $7 million annually and serves as a critical component of the Airport’s overall financial sustainability.
This investment positions the Airport to meet modern traveler expectations, improve service levels, and support continued growth, while advancing the Airport’s mission of delivering “Unforgettable Hospitality.”
City Council Staff Report
May 12, 2026 -- Page 2
Award PARCS Construction Contract and Prebooking and Reservation System Agreement RECOMMENDATION:
1. Approve Construction Agreement No. 26P038 for Parking Access and Revenue Control Systems (PARCS) equipment, maintenance, and support for an amount not to exceed $794,118 for an initial five-year term commencing on May 12, 2026, and continuing through May 11, 2031, with a five-year optional renewal term at the City’s sole discretion.
2. Approve Contract Services Agreement No. 26P039 for a Prebooking and Reservation System in an amount not to exceed $43,780 for an initial five-year term commencing on May 12, 2026, and continuing through May 11, 2031, with a five-year optional renewal term at the City’s sole discretion.
3. Authorize the City Manager or designee to execute all necessary documents subject to such changes/revisions agreeable to the City Manager and City Attorney.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment C) submitted on March 4, 2026, Skidata, Inc., is registered in the states of Delaware and California.
BACKGROUND:
Palm Springs International Airport is undertaking a critical modernization of its parking system to improve the overall guest experience, increase operational efficiency, and protect a key source of airport revenue.
The Airport’s current parking system manages entry, payment, and revenue collection for all public parking facilities. While it has served the Airport for many years, the system is now outdated and lacks the digital functionality that travelers expect today including the ability to reserve parking in advance, view real-time availability, and complete seamless, contactless transactions. As a result, the Airport is seeking to implement a modern, fully integrated parking and reservation platform that enhances convenience for passengers while improving system reliability and performance.
This need is driven in part by the Airport’s continued growth. Palm Springs International Airport is one of the fastest-growing airports in the United States, serving approximately
3.31 million passengers in calendar year 2025. Parking plays a central role in supporting this growth and is the Airport’s second-largest source of non-airline revenue, generating more than $7 million annually across approximately 200,000 transactions. During peak season (October through May), parking facilities operate at an average of 72% occupancy, placing increased demand on the system.
City Council Staff Report
May 12, 2026 -- Page 3
Award PARCS Construction Contract and Prebooking and Reservation System Agreement The Airport operates two primary public parking areas. The main lot, located adjacent to the terminal, includes Lots A, B, C, and D, providing 880 spaces with multiple entry and exit lanes. An additional overflow lot on Kirk Douglas Way provides 837 spaces and is activated during periods of high demand. Together, these facilities are essential to maintaining efficient passenger flow and a positive first and last impression of the Airport.
For the past 26 years, the Airport has relied on a contracted parking system that is now at the end of its useful life. The existing equipment is aging, increasingly unreliable, and creating operational challenges for both staff and passengers. These limitations impact efficiency, customer service, and the Airport’s ability to meet modern expectations for convenience and technology.
Modernizing this system is a necessary step to improve reliability, enhance the guest experience, and ensure the Airport can continue to operate efficiently as passenger volumes grow.
STAFF ANALYSIS:
The Airport is proactively advancing a comprehensive modernization of its parking system to significantly improve the guest experience, increase operational efficiency, and support continued growth. While the existing system remains operational, it has reached the end of its useful life and is increasingly unreliable, with aging equipment resulting in maintenance issues, degraded performance, and visibly inconsistent customer experience. Below are pictures of the aging equipment. This upgrade represents a transition from a legacy, ticket-based system to a modern, fully integrated platform designed to deliver seamless, efficient, and user-friendly parking for today’s travelers.
Unreadable & Damaged Damaged Gate Arm
Ticket Dispenser
City Council Staff Report
May 12, 2026 -- Page 4
Award PARCS Construction Contract and Prebooking and Reservation System Agreement
Inoperable Gate – Parking Lot C
The current system relies on legacy, ticket-based technology and does not offer modern conveniences such as digital reservations, real-time parking availability, or contactless payment options. These limitations impact efficiency, increase operational strain on staff, and create friction for passengers during arrival and departure — one of the most critical touchpoints in the overall airport experience.
To address these challenges, Airport staff identified the need for a comprehensive modernization of the parking system to improve reliability, enhance customer experience, and align with the Airport’s mission of delivering “Unforgettable Hospitality.” The Department of Aviation worked with the Procurement and Contracting Department to issue a formal Request for Proposals (RFP) process to identify a qualified contractor for the needed services. The RFP was advertised in the local newspaper and published on the PlanetBids solicitation platform. By the submission deadline of December 15, 2025, the City received six (6) proposals. Following a preliminary administrative review, three (3) proposals were deemed non-responsive for failing to meet the mandatory submittal requirements. The remaining three (3) responsive firms were:
Skidata, Inc. – Phoenix, AZ
IP Parking NA, Inc. – Sterling, VA
TIBA Parking Systems LLC – Anaheim, CA
An evaluation team made up of City staff from the Aviation and Information Technology Departments and a representative from the McGhee Tyson Airport - Knoxville, evaluated the proposals based on the published criteria that included the firm’s experience, the team’s experience, the understanding of the scope of work, price, and interviews.
City Council Staff Report
May 12, 2026 -- Page 5
Award PARCS Construction Contract and Prebooking and Reservation System Agreement Following the conclusion of the interview process of the three highest ranked firms, the evaluation committee determined that the cost submitted by the highest ranked firm, SKIDATA, exceeded the department’s budget and requested each firm submit their best and final offer for the requested services. On February 10, 2026, firms submitted their best and final offers, resulting in SKIDATA remaining the highest ranked firm, dropping their initial cost proposal from $1,287,539 to $794,118 for PARCS and $43,780 for the Prebooking and Reservation System, for a combined cost of $837,898, and a total cost savings of $449,641. Both proposals include maintenance and support for five years, with an option to extend for an additional five years.
SKIDATA, Inc., (SKIDATA) based in Phoenix, Arizona with a regional office in Los Angeles, received the highest overall ranking by the evaluation team and is recommended for award of the Contract and Agreement. SKIDATA’s technical proposal (Attachment D) demonstrates that they are a well-established provider with a strong track record at comparable airports, including John Wayne International Airport, Hollywood Burbank Airport, Long Beach Airport, and San Diego International Airport.
A key strength of SKIDATA’s approach is its cost-efficient modernization strategy, which leverages existing infrastructure where feasible. This includes reusing structurally sound gate mechanisms while upgrading critical components such as gate arms, lighting, and system controls. This approach reduces capital costs while delivering the performance, reliability, and appearance of a newly deployed system.
A site walk was conducted for proposers to assess existing infrastructure, and SKIDATA’s approach reflects a balanced strategy of preservation and modernization, including installation of new gate arms, upgraded LED lighting for improved customer guidance, and a one-year warranty on upgraded components.
The upgraded system will introduce significant enhancements, including:
Fully integrated entry and exit terminals with contactless and mobile payment options
License plate recognition technology to improve speed, security, and accuracy A digital prebooking and reservation platform with real-time availability and pricing Improved customer service capabilities, including live video support at entry/exit points
Advanced reporting, analytics, and business intelligence tools To support these improvements, SKIDATA will install directional boring and a fully integrated communications network. This high-bandwidth, cloud-based system will improve reliability, enhance cybersecurity, reduce long-term operational complexity, and support future expansion. Airport staff and SKIDATA will coordinate closely with the IT Department for system integration with Airport servers and network infrastructure.
City Council Staff Report
May 12, 2026 -- Page 6
Award PARCS Construction Contract and Prebooking and Reservation System Agreement PARCS will include all-in-one entry and exit terminals with integrated ticketing, payment, and credentialing, supporting insert, tap, and mobile wallet transactions. Cash will continue to be accepted at cashiered exit lanes, which will be upgraded with new workstations, barcode readers, and receipt printers. In addition, upgraded lanes will include pinhole cameras that provide live video feeds when customers request assistance, allowing staff to respond more quickly and effectively.
Upgrading Gate Infrastructure with Efficient, High-Performance Enhancements Additional system integrations include:
A License Plate Reader system with 4K resolution and encrypted data transmission for secure, high-accuracy recognition
A pay-per-use loyalty program to enhance customer convenience and engagement
A fully PCI-compliant, cloud-hosted prebooking and reservation system with real- time inventory, pricing synchronization, and advanced reporting tools The system includes a 12-month warranty covering parts, materials, workmanship, and both on-site and remote software support following project completion.
Airport staff and SKIDATA are committed to minimizing disruption during implementation.
Installation will be phased to maintain continuous parking operations, with work performed within scheduled daily timeframes, including overnight hours as needed. SKIDATA’s familiarity with the Airport’s existing system and its role as the long-term system provider to the Airport’s parking operator, ABM, positions the team to execute a seamless transition. The project schedule (Attachment E) anticipates completion in the third quarter of 2026.
SKIDATA will also provide comprehensive training for Airport, IT, and ABM staff to ensure successful system adoption. At this time, no reduction in ABM staffing is proposed, as the Airport’s priority is to enhance service levels, protect revenue, and ensure a smooth operational transition.
City Council Staff Report
May 12, 2026 -- Page 7
Award PARCS Construction Contract and Prebooking and Reservation System Agreement On March 18, 2026, Airport staff presented Construction Agreement No. 26P038 and Contract Services Agreement No. 26P039 to the Airport Commission. The Commission voted (15 – Yes, 2 – No) to recommend approval of both agreements to the City Council.
The proposed PARCS and Prebooking and Reservation Systems will significantly improve operational efficiency, reduce long-term maintenance needs, and enhance one of the Airport’s most visible and frequently used services. This investment will strengthen the Airport’s ability to manage parking as a key revenue source while delivering a more seamless, modern, and user-friendly experience for passengers.
Attachment F provides an overview of the Airport’s Prebooking and Reservation System, which will continue to be refined as operational data is evaluated during the first year of implementation.
ENVIRONMENTAL ASSESSMENT:
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. SKIDATA proposes to improve system performance and reliability by reusing existing gate mechanisms and refurbishing equipment, including installing new LED lighting. The project involves repair and refurbishment of existing infrastructure with no expansion of capacity, footprint, or operational use. Therefore, Staff has determined that the project, 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 Operational Excellence and Infrastructure.
FISCAL IMPACT:
Sufficient funding is budgeted in Fiscal Year 2025-26 in the Department of Aviation, Airport Capital Projects, Improv Other Than Buildings Account 4167065-60000.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett Jr.
Procurement and Contracting Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
City Council Staff Report
May 12, 2026 -- Page 8
Award PARCS Construction Contract and Prebooking and Reservation System Agreement ATTACHMENTS:
A. Construction Agreement 26P038
B. Contract Services Agreement 26P039
C. Public Integrity Disclosure
D. Technical Proposal
E. Estimated Project Schedule
F. Prebooking and Reservation System Overview