0.09 0.17
0.17 0.18
0.20 0.21
0.22 0.22
0.23 0.25
0.28 0.36
0.38 Tucson, AZ
Palm Springs, CA
Long Beach, CA
Virginia Beach, VA
West Palm Beach, FL
Savannah, GA
Irving, TX
Raleigh, NC
Spokane, WA
Tacoma, WA
Albuquerque, NM
San Jose, CA
Ontario, CA
Meeting Space Comparisons
Sufficient modern meeting space is very important in attracting and accommodating events in the convention, conference and meetings industry. Event organizers see it as an important factor in their selection of host cities. Offering an adequate level of meeting space is necessary to attract and win potential events for a convention facility. Further breakdown on the importance of meeting space is detailed in the upcoming Industry Trends chapter of this report. The exhibits below display the level of meeting space offered at comparable facilities and the ratio of meeting space inventories relative to the exhibit space offering at each of the reviewed facilities.
The PSCC offers a total of 15,800 square feet of meeting space, which ranks tenth among the 13 comparable facilities.
Additionally, the PSCC ranks 11th in terms of meeting space relative to total exhibit space offered. By increasing the quantity and proportion of meeting space at the PSCC, the facility could better compete with comparable and competitive facilities nationwide.
Source: CSL research, interviews with facility management, facility websites, 2022. 3 COMPARABLE FACILITIES
Comparison of Key Convention Space Offerings at Selected Comparable Facilities Average
26,900
Median
26,600
Average
0.23 Median
0.22 Meeting Space (SF) Meeting to Exhibit Space Ratio
B – Page 1005 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 42
1.9 3.3
4.4 5.6
6.5 8.6
8.6 9.7
10.3 11.6
11.8 17.0
18.1 Virginia Beach, VA
Albuquerque, NM
Raleigh, NC
Tucson, AZ
Long Beach, CA
Tacoma, WA
West Palm Beach, FL
Palm Springs, CA
San Jose, CA
Irving, TX
Spokane, WA
Savannah, GA
Ontario, CA
389
645
787
793
937
991
1,220
1,243
2,077
2,250
2,342
2,441
2,575
Virginia Beach, VA
Tacoma, WA
Tucson, AZ
Albuquerque, NM
Raleigh, NC
Irving, TX
West Palm Beach, FL
Palm Springs, CA
Ontario, CA
Long Beach, CA
Spokane, WA
Savannah, GA
San Jose, CA
162
170
295
359
375
389
400
401
403
410
528
531
859
Tacoma, WA
Tucson, AZ
Albuquerque, NM
Irving, TX
Spokane, WA
Virginia Beach, VA
West Palm Beach, FL
Raleigh, NC
Savannah, GA
Palm Springs, CA
Long Beach, CA
Ontario, CA
San Jose, CA
3 COMPARABLE FACILITIES
Hotel Inventory Comparison
The supporting hotel inventory of a convention facility is instrumental in competing for state, regional and national conventions and tradeshows with significant non-local attendee bases. Headquarter and other supporting hotel inventory are often among the first data points sought by event planners when considering a future host site. To evaluate the PSCC’s supporting hotel inventory for both its existing and potentially expanded event space offerings, the charts below provide comparisons with hotel inventory of comparable convention products nationally.
As shown, the 410 rooms offered at the Renaissance Hotel of Palm Springs closely approximates the headquarter hotel room average of 406. The 1,243 rooms within ½-mile of the PSCC rank sixth, approximating the average/median range. The ratio of hotel room inventory to Center space at the PSCC also tracks with the reviewed venue ranges.
The particular challenge for the PSCC lies in the previously referenced committability factor, especially during peak season. Few of the reviewed markets experience the peak and valley room demand cycles common in Palm Springs.
Note: (1) Number is multiplied by 1,000 for readability Source: CSL research, interviews with facility management, facility and CVB websites, Google Maps, 2022.
Comparison of Key Hotel Metrics Related to Selected Comparable Facilities Average
406
Median
395
Average
1,454
Median
1,106
Average
9.0 Median
8.6 Headquarter Hotel Rooms ½ Mile Hotel Rooms ½ Mile Hotel Rooms to Sellable Space Ratio (1)
B – Page 1006 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 43 $0
$1,278
$3,108
$5,270
$20,835
$21,152
$24,370
$26,763
$36,542
$67,745
$70,362
$89,178
$134,347
Savannah, GA
Virginia Beach, VA
Irving, TX
Ontario, CA
Palm Springs, CA
Tacoma, WA
West Palm Beach, FL
Tucson, AZ
Albuquerque, NM
Raleigh, NC
Spokane, WA
San Jose, CA
Long Beach, CA
$0
$4,314
$29,722
$32,557
$50,990
$56,370
$69,657
$71,363
$83,236
$86,285
$98,906
$187,050
$244,568
Savannah, GA
Virginia Beach, VA
Tucson, AZ
Palm Springs, CA
Albuquerque, NM
Tacoma, WA
Raleigh, NC
West Palm Beach, FL
Irving, TX
Ontario, CA
San Jose, CA
Long Beach, CA
Spokane, WA
Dining & Retail Environment Comparison
As previously noted, event planners increasingly consider the commercial vibrancy within walking distance of a host convention facility when selecting future host sites. The exhibits below summarize the retail and dining sales generated on an annual basis within a 10- and 20-minute walk of each of the comparable convention facilities reviewed. For context, the 10-minute walk time typically approximates a ½-mile radius while the 20-minute walk time captures a 1-mile radius. The latter encompasses much of downtown Palm Springs and the concentration of amenities along Palm Canyon Drive.
Using GIS software, we can analyze the level of hospitality spending (food, beverage and retail) on a geographically targeted basis.
As shown below, the environment within a 10-minute walk surrounding the PSCC site generates retail sales far below the median of the comparison set (just over $32.5 million on an annual basis) while its 20-minute walk time capture approximates the median level of sales. Similarly, dining sales within 10 minutes of the facility fall short of the comparison set's median, while the 20-minute area capture significantly outperforms both the median and average.
These data reflect disparity of commercial activity between the PSCC's immediate area and the downtown core. In response, recommendations discussed later herein address both 1) the lack of amenities within the 10-minute walk time, and 2) creating better pedestrian connections between the PSCC and the concentration of amenities located within a 20-minute walk time.
Source: Esri, 2022.
3 COMPARABLE FACILITIES
Comparison of Retail & Dining Spending Nearby Selected Comparable Facilities Average
$78,100
Median
$69,700
Average
$38,500
Median
$24,400
10-Minute Walk-Time Retail Sales (in 000’s) 10-Minute Walk-Time Dining Sales (in 000’s) $10,759
$79,837
$119,653
$134,507
$147,303
$147,362
$150,303
$153,999
$216,306
$311,584
$340,998
$373,726
$741,573
Savannah, GA
Virginia Beach, VA
Tucson, AZ
Ontario, CA
Raleigh, NC
Tacoma, WA
Palm Springs, CA
Albuquerque, NM
Irving, TX
Long Beach, CA
West Palm Beach, FL
San Jose, CA
Spokane, WA
$293
$12,543
$28,425
$28,991
$57,936
$64,552
$69,343
$87,066
$102,511
$115,016
$131,199
$194,569
$253,063
Savannah, GA
Ontario, CA
Virginia Beach, VA
Irving, TX
Tucson, AZ
Albuquerque, NM
Tacoma, WA
West Palm Beach, FL
Palm Springs, CA
Raleigh, NC
Spokane, WA
San Jose, CA
Long Beach, CA
Average
$225,200
Median
$150,300
Average
$88,100
Median
$69,300
20-Minute Walk-Time Retail Sales (in 000’s) 20-Minute Walk-Time Dining Sales (in 000’s)
B – Page 1007 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 44 Comparable Facility Case Studies
The subsequent pages detail convention industry, trend-focused investments and improvements made by various comparable convention center facilities throughout the country.
3 COMPARABLE FACILITIES
Long Beach Convention & Entertainment Center and Surrounding District • 13 hotels within ½ mile
• Renovations in 2013 and 2017
• Turnkey event spaces
• Focus on hybrid events
• Artistic design and outdoor spaces
• Highly walkable and connected area
• Green space, art and comfortable space surrounding facility 2,250
½-Mile Hotel
Rooms
30+
Pike Outlet
Tenants
$35m+
District
Investment
2020
Sources: LBCED, Pike Outlets, Visit Long Beach, Company Sites, 2022.
San Jose McEnery Convention Center and Surrounding District • 10 hotels within ½ mile
• Two HQ Hotels
• Large number of nearby attractions
• Nearby food hall (San Pedro Market Square)
• Located in entertainment district (SoFa District)
• Two approved mixed-use districts within ½ mile
2,575
½-Mile Hotel
Rooms
17+
SPS Market
Tenants
$17m
District
Hotel Tax
Generated
2019
Sources: SJMCC, The Registry, Visit San Jose, Company Sites, San Jose Government, 2022.
B – Page 1008 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 45 Comparable Facility Case Studies
3 COMPARABLE FACILITIES
Palm Beach County Convention Center and Surrounding District • Approximately $18 million on annual building improvements • Added hotels being planned to meet event demand
• Public/private in walkability around center
• Invested in high quality WIFI and cell service
• Announced expansion without details in 2019
• $550 million, 5-year plan for “The Square”, a multi-use entertainment district • Walkable Retail, dining and entertainment district
1,220
½-Mile Hotel
Rooms
60+
The Square
Tenants
$550m
District
Investment
2019
Sources: PBCCC, Related Companies, Company Sites, 2022.
Raleigh Convention Center and Surrounding District
• Located in Raleigh Convention & Performing Arts District • $2.3 billion in downtown development pipeline
• 5 planned hotels within ½ mile with 1 more in hopes of planning • 96 walkability score of downtown
• Within ½ mile of mixed-use public transit station
• Over 110 retailers and 150 restaurants downtown, many within walking distance 937
½-Mile Hotel
Rooms
5 Hotels
Planned
Within ½
Mile
2 Food Halls
Within 1
Mile
Sources: RCC, Visit Raleigh, Raleigh Government, Company Sites, 2022.
B – Page 1009 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 46 Comparable Facility Case Studies
3 COMPARABLE FACILITIES
Spokane Convention Center Facility
• 15 hotels within ½ mile
• Expanded and renovated in 2016 ($50 million)
• Technological investments to meet industry demand
• Pre-function space enhanced for informal events
• Additional sub-divisible ballrooms for flexible space capabilities • Incorporation of nature and natural light in new design 2,342
½-Mile Hotel
Rooms
45,500
SF Added
Space
$50m
2016
Expansion
Cost
Sources: SCC, Visit Spokane, Spokane City News, 2022.
Irving Convention Center Facility
• Located within 40-acre entertainment district
• Highly aesthetic-focused facility design
• Several outdoor terrace event spaces
• LEED Silver Certification; alignment with sustainable practices • No columns/pillars in exhibit hall
• Floor-to-ceiling windows for natural light and connection to nature • Invested in technology for seamless and turnkey events 991
½-Mile Hotel
Rooms
40 Acre
Entertainment
District
$133m
Construction
Cost
2011
Sources: ICC, Related Companies, Company Sites, 2022.
B – Page 1010 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 47 3 COMPARABLE FACILITIES
Flexible
Event
Space
Integrating
with Growing
Districts
Outdoor
Event
Space
Hotel
Development
Technology
and Trend
Forward
Design
Summary of Comparable Expansions
As presented, Palm Spring’s peer convention destinations throughout the country have been continually improved in recent years, both in terms of facility investments and surrounding district growth. Each of the case studies feature some mix of the following themes, described further below.
Creating versatile events space throughout an entire convention facility represents a goal for many recent convention center renovations. The Long Beach Convention Center’s conversion of the adjacent arena into a hightech and unique multipurpose space has enabled the facility to draw a greater number of corporate events, while the addition of two new sub-divisible ballroom spaces within the Spokane Convention Center has helped the market compete for a greater number of regional and national association events. At the same time, the expansion and improvement of Spokane Convention Center’s concourses now allows for event activity in the prefunction area, greatly increasing its sellable event space.
The convention centers in Long Beach, Irving, Spokane, and West Palm Beach have each enhanced facility revenues and marketability by adding outdoor event space venues. The Cove at Long Beach Convention Center, for example, provides lounge furniture, lounge games, and food trucks to create a vibrant and unique event atmosphere, while Spokane Convention Center offers its adjacent plaza and rooftop pavilion for both major conventions and high-paying local users, (i.e., weddings and cultural celebrations).
Convention planners nationally have higher technology demands and expectations than five years ago, with amenities such as digital signage, ample access to fiber internet, free WIFI, interactive kiosks, and onsite virtual meeting technologies now more frequently included at their selected host facilities. In response, the convention facilities in Long Beach, Spokane, West Palm Beach, and Irving are investing in modernizing their buildings for these more sophisticated needs.
Many of the facilities analyzed are situated in or near quickly developing mixed-use districts. Convention centers in San Jose, Raleigh, and Palm Beach each have growing urban populations, which supports their emerging restaurant scenes. The shopping district across from the West Palm Beach Convention Center has added residential, outdoor areas, and unique shopping options, which has greatly enhanced spending among visiting attendees. Leadership is currently discussing a pedestrian bridge that would connect the Center to shopping areas. Similarly, the Long Beach Convention Center added the LED-activated Rainbow Bridge to link pedestrians from the Convention Center to the outlet shopping options nearby.
The ½-mile districts surrounding the convention centers in Raleigh, San Jose, and West Palm Beach each feature quickly growing hotel room inventories. In Raleigh, for instance, five new hotels totaling over 1,300 rooms are being constructed. Advanced discussions are also being held by public leadership in both San Jose and West Palm Beach regarding near-term developments of sizable headquarter hotels (600 or more rooms in San Jose, 350 or more rooms in West Palm Beach).
B – Page 1011 of 1107
4 INDUSTRY
TRENDS
B – Page 1012 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 49 Introduction
The economy of any destination can be influenced by many factors outside the control of community leaders. Economic conditions, corporate relocations, changes in governmental or institutional presence and other factors will influence employment, income, tax revenues and other critical aspects of an economy.
In most communities, the visitor industry also plays an important role in local and regional economic health. Visitors to a market offer an opportunity to inject new dollars into the economy, with relatively limited use of public infrastructure. Visitor spending then generates net new tax revenue, reducing the tax burden on residents.
At the same time, the competition for visitor industry market share is fierce. Communities throughout the country continue to invest in assets and amenities that are designed in part to attract visitors.
Much of this investment involves convention, sports and entertainment facilities.
The market success of convention facility products can be partially attributed to broader industry characteristics and trends. In order to assess the current and future strength of any market with regard to a potential expanded convention product, it is important to evaluate prominent and emerging trends from a national perspective.
Additionally, the “state-of-the-industry” in terms of the physical product aesthetics and functionality of convention facilities has continued to advance year-over-year in cities throughout the country. Event planners and users increasingly prefer, and oftentimes demand, the modern, spacious aesthetics and
optimized, advanced functionality and efficiency of newer facility designs and programs. Beyond attracting higher numbers of groups, visitors and economic impact, modern exhibition facilities often offer significant advancements in operating efficiencies and enhanced revenue generation opportunities, as compared to previous generations of facilities.
Broad industry changes, characterized by—sometimes significant— retraction and expansion in event demand and attendance and participation characteristics have taken place within the industry over the past few decades. Most recently, the COVID-19 pandemic has caused dramatic disruption in all sectors of the global economy, including severe impacts in the convention and tourism industries.
4 INDUSTRY TRENDS
B – Page 1013 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 50 CONVENTION CENTER (stand-alone facility):
Typical Facility Model Characteristics
Convention centers typically incorporate exhibit, meeting and ballroom space. Usually located in medium- to largesized cities, convention centers tend to focus on attracting non-local economic impact-generating events
such as conventions, tradeshows and conferences. It is
imperative that convention-quality hotel inventory is
located close to the center. Convention centers also tend to host a large number of secondary events, such as
corporate meetings, public shows and banquets.
The exhibit to the right presents a visual representation of how traditional convention center products align with
typical facility requirements and preferences of variety event types.
While convention center products throughout the country vary widely in terms of physical and operational
characteristics, convention center products typically
posses the following attributes:
• Typical Mission/Orientation:
o Tourism & economic impact generation
o Driving new hotel room nights
o Large flat floor events (non-local & local)
• Typical Event Focus:
o Conventions
o Tradeshows
o Conferences
o Public/consumer shows
• Typical Owner/Operator Model:
o Publicly-owned
o Privately-managed via third party
• Typical Space Components:
o Exhibit Space (concrete floor)
o Ballroom Space (carpeted)
o Meeting Space (carpeted)
• Typical Site Factors:
o Attached or adjacent full-service hotel(s)
o Downtown, urban environment
o Walkable visitor amenities, including
ancillary hotels
• Typical Funding Structure:
o Public: 100%
o Private: 0%
4 INDUSTRY TRENDS
B – Page 1014 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 51 Many indicators, including employment, consumer purchases and wages, suggest that the national economy rebounded sharply from the downturn caused by the Pandemic. Current conditions suggest a plateau in the economy, while hiring remains strong.
A large collection of data suggests that the health of the convention industry, like nearly all industries, has historically been linked to the strength and fluctuations of the overall U.S. economy. This “linkage” is a fundamental premise of any analysis of future convention industry performance. To address the question of future industry trends, it is important to consider how the future performance of the economy and the convention industry will respond in the post COVID period.
The Center for Exhibition Industry Research (CEIR) is a nonprofit organization whose mission is to advance the growth, awareness and value of exhibitions in the United States. The annual CEIR Index Report is developed to provide an objective measure of the annual performance of the exhibition industry.
The CEIR Index Report measures year-over-year changes in three key metrics of industry performance:
• Square Feet of Exhibit Space Sold
• Number of Exhibiting Companies
• Professional Attendance
The industry’s performance within these three metrics was calculated from data provided by more than 13,000 industry conferences, conventions, and tradeshows that utilize more than 3,000 net square feet of exhibit space in off-site public and private event facilities. The CEIR Index Report displays and analyzes actual and projected event-specific data through 2022, though the COVID-19 pandemic has significantly impacted these projections. As such, the analysis on the next page analyzes actual exhibition industry performance through 2019, with a focus on historical exhibition industry rebounds following substantial downturns in the U.S. economy.
4 INDUSTRY TRENDS
B – Page 1015 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 52 The U.S. economy appeared to be on solid footing prior to the COVID-19 outbreak. An historical perspective focusing on changes to GDP growth relative to the national convention industry may be useful in assessing the longer-term impact of the COVID-19 pandemic. As outlined in the chart below, broad industry changes, characterized by retraction and expansion in exhibition, convention, conference, tradeshow and meeting demand have taken place during the past 37 years, with projections for 2022 to 2024.
Given the parallels between GDP changes and changes in various measures of the convention industry, we would expect future industry growth to continue to mirror the overall health of the economy. In recent pre-Covid years (2010 to 2019), a modest and steady growth pattern was seen with both real GDP and various convention industry metrics. With uncertainty as to the state of the economy over the next 24 months, trends in convention industry demand are also uncertain. However, over the longer term, and as economic growth is established, the magnitude of the convention industry is likely to match pace with overall economic growth.
The pandemic took a significant toll on the U.S. exhibition industry. As U.S. GDP decreased by over three percent in 2020, the exhibition industry’s total attendance, square footage, and revenues decreased by nearly 80 percent due to the COVID-19 pandemic. Beginning in 2021, measures of industry performance increased by 50 to 60 percent from the 2020 lows. Projections for 2022 show an approximate 128 percent in overall convention industry measures, followed by percentage growth in the mid 30’s in 2023, and a return to steady modes growth of two to three percent beginning in 2024.
These growth projections would see overall convention industry measures at approximately four to five percentage points above the pre-Covid levels recorded in 2019.
Source: U.S. Bureau of Economic Analysis, Conference Board, St. Louis Fed, Center for Exhibition Industry Research, CSL research, 2022. 2020:
-79%
2021: +54%
2022: +128%
4 INDUSTRY TRENDS
B – Page 1016 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 53 Recent survey research conducted by CSL of national convention planners focused on identifying the year in which planners expect the convention industry to largely return to pre-pandemic conditions. Seventy-six percent expect a return to pre-pandemic conditions by 2024, while 92 percent expect a return by 2025 or later.
Beyond external economic trends, the convention and tradeshow industry landscape continues to evolve and expand, with the potential for longer term Pandemic related impacts. The increasing importance placed on the adoption and use of technology, the physical design and flexibility of facility space, and the emphasis on authentic and unique destination experiences, among other elements, are indicative of the future trends within the industry as a whole.
As with any product in any industry, continual investment is required to respond to these trends and to evolving customer and industry demands. Planning a convention center expansion requires a future-focused approach to market-supported design and technology investments in an evolving and highly competitive environment. The remainder of this section summarizes our assessment of future initiatives that should be considered for any future convention development in order to address the constantly evolving convention industry.
Even prior to the COVID-19 pandemic, CSL’s research had shown that the increasing Millennial and Gen-Z convention and tradeshow attendee base was creating new demands and expectations of event facility design and programming. The next generation of event attendees will require greater flexibility in how meetings are conducted, how information is delivered, and how technology is used. Greater emphasis is being placed on the ability of a destination to offer a unique, authentic and productive experience.
At the same time, the COVID-19 pandemic has accelerated the demand for specific convention facility elements, including hybrid event capabilities, space for outdoor functions, and safe and walkable environments in desirable (but not overcrowded) urban locations. It is critical to consider how planner preferences and attendee behavior may be impacted in the short- and long-term as the event industry “returns to normal”.
The image on the following page as well as the discussion presented throughout the remainder of this section detail industry trends that should be addressed as part of PSCC planning, including several initiatives that management has already initiated to respond to these trends.
Source: CSL survey of national convention planners, 2021. 4 INDUSTRY TRENDS
B – Page 1017 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 54 At the same time, the COVID-19 pandemic has greatly accelerated the demand for specific convention facility elements, including broadcast and hybrid event capabilities, space for outdoor functions, and safe and walkable environments in desirable (but not overcrowded) urban locations. It is critical to consider how planner preferences and attendee behavior may be impacted in the shortand long-term as the event industry “returns to normal”.
Pre- and Post-COVID Convention/Conference Center Trends Event planners and attendees are increasingly emphasizing the following facility/destination attributes. The following pages summarize the emerging and future trends of various event industries (as outlined below), as well as examples of how facilities around the country have adapted to changing needs of event attendees:
• Virtual/hybrid events – turnkey broadcast and production studios will help in-person events stream to broader virtual audiences. • Outdoor event space – planners increasingly use terraces, rooftops, patios, and pavilions for off-site events and general sessions. • Walkable districts – vibrant, safe and navigable districts around a facility are nearly as important as event space square footage. • Dynamic meeting spaces – larger meeting spaces with modular furniture help support creative and interactive breakout sessions. • Unique and authentic F&B – static food courts are being replaced by locally owned pop-ups and stylish food halls. • Flexible pre-function space – events increasingly utilize lobbies and concourses for presentations and networking events. • Augmented/virtual reality – virtual, shared experiences are increasingly important to science, medical and tech organizations. • On demand meeting space – app-activated breakout spaces support frictionless scheduling for tomorrow’s event attendees. • Other trends – public art, digital signage, natural lighting, and casual furniture each enhance the appeal of any convention product.
As with any product in any industry, continual investment is required to respond to evolving customer and industry demands.
Planning a convention center expansion requires a future-focused approach to market-supported design and technology investments in an evolving and highly competitive environment.
Even prior to the COVID-19 pandemic, CSL’s research had shown that the increasing Millennial and Gen-Z convention attendee base was creating new demands and expectations of event facility design and programming. The next generation of event attendees will require greater flexibility in how meetings are conducted, how information is delivered, and how technology is used. Greater emphasis is being placed on the ability of a destination to offer a unique, authentic and productive experience. 4 INDUSTRY TRENDS
B – Page 1018 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 55 Sans Expo & Convention Centre
(Singapore)
Virtual/Hybrid Events
Event planners interviewed by CSL in recent months suggest a significant interest in permanent turnkey production and broadcast facilities on-site at event venues to stream and produce content for events in real-time.
Some facilities have already invested in technologies to accommodate virtual attendees. The tcf Center in Detroit includes a 5,000-square foot broadcast studio that offers the technologies and services needed to create programming, live event webcasting, and large-scale program distribution, among other offerings. Centers in Baltimore and Houston are also being outfitted with enhanced broadcast/ production capabilities.
Outdoor Event Space
Even prior to the pandemic, event planners indicated an increasing demand for unique outdoor event space at their host sites. Popular conference/convention facilities throughout the country offer terraces, patios, lawns, and pavilions to events for networking events or general sessions.
Outdoor event space provides attendees with the opportunity to connect with the culture and feeling of a destination in a unique event setting while creating an additional selling point and source of revenue for centers. Further detail regarding best practices in outdoor event space design and programming is presented on the following page. The use of the Jackie Lee Houston Plaza at the PSCC represents a response to the outdoor function space trend.
Continued outreach to customers as to future refinements to the configuration, connectivity, technology and other aspects of the space should be undertaken.
Walkable Destinations
As the competition to attract nationally rotating conferences has become increasingly intense, many facilities have begun to position themselves as “convention districts”. In this way, the value proposition for an event planner broadens beyond traditional event space and hotel criteria to include restaurant, retail, entertainment and transportation within walking distance of a convention facility.
Convention and conference facilities located within vibrant mixed-use districts cater to this emerging event planner demand, and those that integrate with their surrounding dining, retail and entertainment environments are positioned to succeed in the post-COVID convention industry.
Riverside Convention Center
(Riverside, CA)
Planned Mixed-Use District
(New Haven, CT)
Tier 1 Facility Trends – The Most Important Trends Accelerated by COVID-19 Pandemic 4 INDUSTRY TRENDS
B – Page 1019 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 56 Outdoor Event Space – Additional Concepts Applicable to an Improved PSCC Growing event planner demand for usable outdoor event space at convention facilities highlights the importance of include these types of spaces at an improved PSCC. To better understand specific best practices regarding outdoor event space development, we identified a short list of convention facilities nationally with signature outdoor spaces that are frequently programmed and lauded by interviewed event planners. Details and key takeaways with transferability to an improved PSCC are provided for each of these facilities below.
Other unique and valuable design and/or marketing of outdoor event spaces at convention centers in larger destinations are briefly summarized below.
• Long Beach Convention Center: The Cove, a streetside plaza space covered by a second-story walkway, is a frequently programmed outdoor event space featuring lounge furniture, outdoor games, and an area for food trucks. • Anaheim Convention Center: The Center’s plaza frequently hosts up to 27 food trucks that cater to some of the facility’s larger national conventions throughout the year. To support the “convention environment” the plaza is blocked off with temporary barriers, and seating/resting areas and shading are provided for dining event attendees. • Phoenix Convention Center: 3rd Street, which separates the two halves of Phoenix Convention Center, is occasionally blocked off with bollards for large citywide conventions. In this way, the street can be activated as a “block party” space for special programming.
• Colorado Convention Center: The upcoming expansion of the Colorado Convention Center will feature a rooftop terrace that directly connects to an 80,000-square foot multipurpose hall via operable roll-up doors.
Facets of each of the outdoor spaces above could be considered for potential patio, rooftop, plaza or other such spaces at an improved PSCC.
4 INDUSTRY TRENDS
Boise Center (Boise ID) Pasadena Convention Center (Pasadena, CA) Spokane Convention Center (Spokane, WA DLL Convention Center (Pittsburgh, PA) Boise Centre’s outdoor event plaza is centrally located and is an extension of the urban grid, so the pedestrian flow is natural. It is also easily controlled for non-public events, and the plaza is central to the layout of the convention center.
The Pasadena Convention Center’s front plaza area, which is also a public plaza across the street from a popular commercial district, is periodically closed for events at the Center and other community events or festivals. The Center has purchased tent equipment and portable seating to furnish the outdoor space, and is planning to add additional electrical outlets and tent putins in the area to make it more “turnkey” for increased use.
The SPCC’s plaza is adjacent to Centennial Trail, so public use is encouraged when not being utilized by the center. Space is also easily controlled by the center for non-public events. The Center also features a 7,200 square foot rooftop patio and 9,200 riverside lawn space for weddings, food functions and other events.
The DLLCC is known for its South Terrace Green Roof, a 20,000- square foot outdoor space located just off of the building’s third floor. The space is used as an urban event patio, and features put-ins for tents and kiosks, electrical access, gardens and a walking path. This unique outdoor space has been increasingly used, and has helped the DLLCC compete for regional and national events with facilities in much larger markets.
B – Page 1020 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 57 Tier 2 Facility Trends – Amenities Increasingly Preferred by Event Planners Cantilever Room at HGBCC
(San Antonio, TX)
Dynamic/Interactive Meeting Spaces
Planners are increasingly using larger, more versatile spaces for breakout sessions. These rooms range anywhere between 3,000 and 10,000 square feet and feature portable and modular furniture to accommodate a variety of programs. The Cantilever Room at the Henry B. Gonzalez Convention Center in San Antonio (TX) is often cited by event planners as an exemplary multipurpose space, and the Room’s built-in A/V, movable furniture, and dual-purpose window/whiteboard help create a flexible and open environment for workshops, brainstorm sessions, and strategy meetings.
Unique and Authentic Food & Beverage
Recent trends in the food and beverage sector are more reflective of changing demographics and how conventions and meetings are being produced. The balance between standard sit-down banquets and more formal food options may be shifting towards the informal, and the ability of a center to offer more convenient “grab & go” or “pop-up” dining opportunities could become much more important in the future. Planners and attendees today are also preferring more trend forward amenities such as food trucks, and locally sourced offerings at pop-ups within the center.
Engaging Pre-Function Areas
The Open Space Learning (OSL) concept challenges the
traditional lecture or seminar-based formats that tend to draw attendees off the main show floor during events and instead provides unique and creative learning environments that can be constructed in lobbies, pre-function areas, atriums, etc. Facilities such as the Renasant Convention Center in Memphis, the
Vancouver Convention Centre, and the Grand Wayne Convention Center in Fort Wayne (IN) have invested in portable and versatile furniture to create environments for small meetings and lectures, podcasts, and informal networking events.
tcf Center
(Detroit, MI)
Waukee Innovation Center
(Waukee, IA)
4 INDUSTRY TRENDS
B – Page 1021 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 58 Conceptual A/R Meeting Augmented and Virtual Reality
Augmented reality technologies allow for “shared experiences” among attendees. By using headsets or mobile technologies, attendees can be alerted by the same statistics or
goals/waypoints in the real world while they attempt to complete a shared task.
Beyond A/R, virtual reality enables medical professionals to share experiences in completely simulated environments by wearing headsets or other currently available technologies.
These technologies and their applications are still evolving, but many conference and convention industry leaders envision multipurpose “black box” rooms that will host completely immersive environments rendered as lifelike to its observers.
On Demand Micro Meetings
As Millennials and Gen-Z make up an increasing share of convention and conference attendee bases, event booking technologies have emerged that allow for app-based scheduling of breakout meeting spaces in venues.
ZenSpace has developed private, tech-enabled Smart Pods that can be rented on demand using an integrated mobile app. These spaces are outfitted with comfortable booth seating, tabletops, whiteboards, monitors, HDMI cables and phone charging
stations. This allows planners to schedule their own impromptu, private meeting sessions.
Other Trends
Other conference facility building program and technology trends increasingly noted by event planners during interviews include:
• Public art
• Internet
• Cyber cafes
• Digital signage and monitors throughout venue
• Charging stations
• Natural lighting
• Casual furniture
Zen Space
(San Jose, CA)
Colorado Convention Center
(Denver, CO)
Tier 3 Facility Trends – Other Trends to Monitor
Conceptual
V/R Meeting
4 INDUSTRY TRENDS
B – Page 1022 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 59 To test the demand for each of the facility feature concepts presented on previous pages, CSL collected survey input from nearly 90 planners of major national and regional conventions and conferences. Participating planners were asked to rate the importance and appeal of several different event facility trends on a scale of “1” to “5”, with “5” being the highest score. Their feedback is summarized in the chart below.
Trends that should be considered a high priority by the convention industry garnered scores of 3.25 or higher. As shown, outdoor event space received the highest rating from planners (score of 3.62 out of 5), followed by using pre-function areas for informal meetings (3.56), streaming and broadcast technologies (3.52), local and authentic food stations (3.45), and pop-up/temporary food stations (3.29). It will be important to consider each of these trends as part of any convention center development.
Trends that scored lower are less of a near-term priority but should still be considered important as part of any convention center development or expansion project. These include unique or local public art installation, augmented and virtual reality capabilities, ‘micro pods’, and podcast recording rooms.
4 INDUSTRY TRENDS
Convention Center Facility Feature Trends by Importance and Appeal (according to surveyed event planners)
Priority
Trends
potentially
requiring
facility
investment
Secondary
Trends
that
should be
monitored
Facility
Factors
B – Page 1023 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 60 CSL also asked national and regional convention planners to rate the importance and appeal of various surrounding convention district amenities for their events. This questions was similarly scaled from “1” to “5”, with “5” as the highest score. Notably, many amenities received significantly higher levels of importance relative to previously presented convention center facility features.
Convention district trends that should be considered a high priority garnered scores of 4.00 or higher. Access to full-service hotel rooms (score of 4.59) represents the most important convention district amenity among surveyed event planners. This is followed by pedestrian lighting for nighttime activities (4.48), a variety of hotel offerings (4.42), full-service restaurant options (4.30), easily understandable wayfinding for pedestrians (4.23), some form of shuttle/trolley vehicle service (4.20), and access to fast-casual dining options (4.06). Each of these factors will be considered later in this report when defining needed hotel and hospitality connectivity in support of the PSCC.
Trends that scored lower are less important to planners but should still be considered as part of a convention district development.
These amenities include nearby bars, convenience stores and services within walking distance, food halls, access to live entertainment, breweries and/or distilleries, and public art and landscaping design. 4 INDUSTRY TRENDS
Convention District Amenity Trends by Importance and Appeal (according to surveyed event planners)
Priority
Trends
potentially
requiring
district
investment
Secondary
Trends
that
should be
monitored
Destination
Factors
B – Page 1024 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 61 Has the Pandemic Increased Interest in Small/Mid-Size Markets? Do You Anticipate a Larger Online Presence in the Future? How Influential Are Political Policies in Your Site Selection? Due to significant Pandemic impacts and growing political turbulence since 2020, CSL recently distributed a questionnaire to event planners that inquired them regarding their thoughts of how the industry has changed in recent years and will continue to change moving forward. Several analyses with notable takeaways are presented below.
As shown in the top-left exhibit, CSL asked national meeting and event planners if their interest in small/mid-sized markets has increased due to the pandemic. Of these respondents, 56 percent indicated that they are more interested in smaller and midsized destination markets than they were prior to the Pandemic. This aligns with a gradually growing notion within the convention industry that planners are looking for smaller, safer destinations with closer access to outdoor experiences to host their events. Palm Springs offers these and other advantages, and the destination’s convention industry has an opportunity to benefit as a result.
Source: CSL Survey, 2022.
4 INDUSTRY TRENDS
44%
56%
No
Yes
12%
44%
26%
7%
11%
Definitely not
Not likely
Possibly
Likely
Definitely
28%
7%
19%
12%
33%
0-20
21-40
41-60
61-80
81-100
53 Average
Score
Planners were also asked to indicate the level of influence that political policies of a state or region have on their site selection process. The average of the aggregate, a score of 53, suggests only moderate concern with a destination’s political policies.
However, it is important to note the polarization of the data. Scores ranging from 81 to 100 (very important) were given by 33 percent of event planners (the highest percentage among the five intervals), while scores ranging from 0 to 20 (not influential at all) were given by 28 percent of planners (the second highest).
Considering that a third of the PSCC’s event marketplace places significant emphasis on an area’s political climate, PSCC and GPSCVB sales should consider strategies to target those groups that may not be open to locating in other regions/states within the country due policy issues.
Planners were also asked whether they anticipate an
increased online attendee base for their events. Fifty-six (56) percent expressed little expectation of increasing online audiences, with 44 percent indicating that it is “not likely” and 12 percent reporting that their online base will “definitely not” grow. Eighteen percent of planners felt that their online event attendee base was at least “likely“ to increase; 11 percent felt it would “definitely” increase.
The combined 44 percent of planners that at least possibly see a future increase in on-line event attendance may suggest modest convention center equipment and operational
changes to facility more convenient capture of event content for on-line use.
B – Page 1025 of 1107
5 MARKET
DEMAND
B – Page 1026 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 63 5 MARKET DEMAND
Interviews & Primary Market Research
The purpose of this chapter is to provide an analysis of market demand for an improved Palm Springs Convention Center and surrounding district. The data generated as part of this market analysis have been derived from the following:
• CSL experience gained from over 1,000 convention, conference, exhibition, hospitality and event facility projects throughout North America. • Research and analysis of local market conditions including hotel inventory, walkability, commercial development, hospitality assets, attractions and other components of a successful convention and visitor destination. • Review of the existing Palm Springs Convention Center operations and event space offering.
• Analysis of competitive and comparable facilities and host destinations. • In-depth telephone surveys with current, past users of the Palm Springs Convention Center.
• Email survey of 84 state, regional, and national event planners, representing over 100 annually recurring convention, tradeshow, and other events.
The focus of the remainder of this chapter is on quantified survey data associated with two primary groupings of research completed for this study: 1) rotating conventions and tradeshows at the state, regional, and national level, and 2) current, past and “lost” users of the Palm Springs Convention Center. Quantitative and qualitative data provided by both groups is summarized below and on the following pages.
1 Rotating Convention Planners
Likelihood of Using an Improved
Palm Springs Convention Center
2022 Positive = 82%, 2022 Negative = 18%
Top Reasons for Disinterest
As detailed previously, CSL conducted an electronic survey of 84 rotating convention, conference and tradeshow planners. The data presented herein reflect the results from this outreach, with a focus on event planner feedback regarding interest in Palm Springs and an improved PSCC and surrounding district, as well as their event space and hotel needs.
We begin with an overview of event planner interest in a redeveloped Palm Springs Convention Center and the Palm Springs destination. When asked to indicate the likelihood that they would rotate one or more events to an improved PSCC and surrounding district in the future, 82 percent of respondents reported that they would at least “possibly” use the facility. This group includes the 17 percent that noted that they would “likely” use it, and the 14 percent that would “definitely” use it. This positive interest rate is the highest score among ten comparable convention center studies CSL has conducted over the last two years. For example, Palm Springs’s positive interest rate (82 percent) outranked closely comparable markets such as West Palm Beach, FL (69 percent positive score) and Greeneville, SC (66 percent positive score).
The 18 percent of surveyed planners who would “not likely” or “definitely not” use an improved PSCC were asked to describe their reasons for disinterest. These include preferences for smaller conference/meeting facilities, distance from
concentrations of their attendee bases, transportation and travel accessibility, challenges with the PSCC’s headquarter hotel inventory, weather/climate concerns and long-term
commitments with other event facilities.
• Convention Center Too Big for Events (53%)
• Location of Attendee Base (20%)
• Transportation/Travel Accessibility (20%)
• HQ Hotel Quality (7%)
• Weather/Climate Concerns (7%)
• Don’t Rotate Events (7%)
6%
12%
51%
17%
14%
Definitely Not
Not Likely
Possibly
Likely
Definitely
Source: CSL Survey, 2022.
B – Page 1027 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 64 5 MARKET DEMAND
Surveyed planners rated Palm Springs as “above average” relative to peer destinations, and awareness of the market as a convention destination rates near the top of the
comparison set. Results are shown in the exhibit to the right, with ”1” representing the weakest rating and “5” representing the strongest rating.
When asked to rate interest in comparable destinations, Palm Springs received a score that is among the highest of any prior CSL destination survey. Additionally, Palm Springs received a significantly low unfamiliarity rate for event planners.
These results suggest a very positive impression of Palm Springs among convention/event planners who are familiar with Palm Springs.
Destination Ratings Destination Unfamiliarity Rate
Interviewees that responded positively to using an improved PSCC and surrounding district were also asked to explain their scoring of Palm Springs as an event destination. These responses were consolidated to develop the word cloud below that highlights the recurring themes and references made by event planners.
2.62 2.78
2.89 2.91
3.17 3.24
3.53 3.53
3.54 3.80
3.90 4.14
4.29 Ontario, CA
Reno, NV
Pasadena, CA
Los Angeles, CA
Sacramento, CA
Las Vegas, NV
Long Beach, CA
Monterey, CA
Anaheim, CA
Denver, CO
Phoenix, AZ
Palm Springs, CA
San Diego, CA
22%
16%
16%
13%
12%
12%
11%
9%
7%
7%
7%
7%
6%
Ontario, CA
Monterey, CA
Pasadena, CA
Sacramento, CA
Phoenix, AZ
Reno, NV
Denver, CO
Las Vegas, NV
Palm Springs, CA
San Diego, CA
Los Angeles, CA
Anaheim, CA
Long Beach, CA
Source: CSL Survey, 2022.
We note that our survey process relies on planner interest in responding, and planners with an interest and/or familiarity with the destination are more likely to participate. At the same time, we use a similar process for other projects, allowing for a useful comparison among studies.
Descriptors such as weather, beautiful, destination
are reflected prominently. Others that are not
unexpected including resorts, hotel,
accommodations, golf, meetings, excellent, service
and desert.
Several descriptors that more reflect the essence of
the destination could include always, nice, perfect,
people and love.
B – Page 1028 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 65 3%
5%
12% 11% 10% 11%
9% 4%
7%
18%
8% 3%
51%
83%
71%
47%
46%
22% 27%
24%
53%
64%
48%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Event Seasonality
Occupancy Level
Demand by Month 2017-2019 Avg. Oasis Occupancy
5 MARKET DEMAND
Respondents were asked to outline the month(s) that their represented events take place throughout the year. These figures provide a reference to peak event seasonality for interviewed event planners. The most common month of events for respondents was October with 18 percent of events taking place in that month. From March to July, event activity was notably higher than other months, with August, December, January and February representing low demand periods. September through November (with the peak in October) reflect modest event demand.
The chart below also presents average occupancy data for the Oasis Hall on a monthly basis for years 2017 to 2019. This comparison suggests potential for increasing PSCC event activity in the April to June period, and during several fall months.
Exhibit Space – Positive Respondents
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
SF of Exhibit Space
83% market capacity PSCC(1)
Note:
(1) – Only Oasis Hall
Source: CSL Survey, 2022.
Seasonality of Events Held
Interviewees indicating positive interest in using an improved PSCC and surrounding district were also asked about their event space requirements and preferences. We begin with a summary of positive respondent exhibit space needs as summarized in the chart below. Data show the share of the interested convention and tradeshow market that can be accommodated at particular exhibit space levels. For example, 83 percent of the market interested in the PSCC can be accommodated in the existing 92,500- square foot Oasis Hall.
A slight increase in exhibit space to slightly over 100,000 square feet would increase the capture percentage to approximately 90 percent. This type of analysis is used later in this report to define near and long-term market-supportable building program targets for the PSCC.
B – Page 1029 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 66 Similar market capture analyses of attendance, ballroom, meeting and outdoor event space needs are summarized below. Starting with the chart in the top-left, median total attendance of events with positive interest in the PSCC approximates 1,100, which closely approximates the average attendance of PSCC’s convention events in past years. At a market capture of 83 percent (commensurate with current exhibit space capture levels), attendance levels approximate 3,250. The ballroom space area chart (top right) shows that the 20,000 square foot Primrose Ballroom can accommodate the space needs of approximately 55 percent of the target event market. A 30,000-square foot ballroom space could accommodate 75 percent of the target national/regional market for the PSCC.
The PSCC’s breakout meeting space offering of 15,800 square feet better meets identified demand, accommodating approximately 73 percent of event planner needs. An additional, 4,200 square feet of meeting space would enable the facility to accommodate 75 percent of demand and 14,200 square feet of added meeting space would meet 90 percent of demand. In terms of total sellable space, the existing PSCC offering meets the demand of 78 percent of the surveyed market.
Considering these data, continuing to work with the Renaissance to leverage their meeting space to meet larger convention needs will be important going forward. Further, considering trending preferences for non-traditional meeting setups in outdoor and/or prefunction areas, it will be beneficial to identify re areas throughout the PSCC that could offer 4,000 to 6,000 square feet of additional gathering space for larger conventions to somewhat supplement the facility’s existing meeting space inventory. 5 MARKET DEMAND
Total Attendance Ballroom Space
0 25,000
50,000
75,000
100,000
125,000
150,000
5% 20% 35% 50% 65% 80% 95%
SF of Exhibit Space
Meeting Space Total Sellable Space
0 14,000
28,000
42,000
56,000
70,000
84,000
5% 20% 35% 50% 65% 80% 95%
SF of Meeting Space
55% market capacity PSCC
73% market capacity PSCC
0 5,000
10,000
15,000
20,000
25,000
30,000
5% 20% 35% 50% 65% 80% 95%
Attendees
0 100,000
200,000
300,000
400,000
500,000
600,000
5% 20% 35% 50% 65% 80% 95%
SF of Sellable Space
78% market capacity PSCC
Source: CSL Survey, 2022.
B – Page 1030 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 67 Positive respondents were also asked to indicate the peak hotel inventory required to accommodate their events, as well as the maximum number of hotel properties they are willing to use, and the number of rooms they prefer to have housed within a headquarter hotel package. Their feedback is summarized in the charts below.
Planner demand suggests a median requirement of approximately 450 hotel rooms on peak to accommodate non-local convention and tradeshow activity. According to PSCC sales personnel, the maximum and minimum Palm Springs committable room inventory (depending on season and day of week) can accommodate 90 percent and 64 percent of market demand, respectively.
However, it is important to consider typical event planner preference for condensed room blocks within close proximity of their host facilities. When excluding those properties that fall outside of 1-mile of the PSCC, the hotel package only accommodates up to 80 percent and as low as 60 percent of demand.
If given the choice, virtually all planners would prefer using only one hotel property to house their attendees, and only 28 percent are willing to use four or more properties. Given this preference for condensed room block packages, it is important to consider the ability for the Renaissance to serve as the primary headquarter hotel property in support of the PSCC Considering these data, it will be important to prioritize the development of additional supporting hotel inventory within close proximity of the PSCC.
5 MARKET DEMAND
Maximum Number of Hotel Properties
Total Peak Night Hotel Rooms
0 870
1,740
2,610
3,480
4,350
5,220
6,090
6,960
7,830
8,700
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
Hotel Rooms
80% market capacity
.
Source: CSL Survey, 2022.
8.1%
18.2%
28.3%
39.4%
72.7%
100.0%
6+
5 4
3 2
1 1-mile Maximum
Committable Rooms*
60% market capacity 1-mile Minimum
Committable Rooms*
B – Page 1031 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 68 The market capture assessments presented on the previous pages consider exhibit (and other space needs) independently from hotel room needs. For example, the Oasis Hall can accommodate 83 percent of the exhibit space needs of the potential convention and tradeshow market for the PSCC. And 1,200 committable hotel rooms near the PSCC can accommodate 80 percent of the hotel space needs for the target market.
However, it is also important to simultaneously consider exhibit and hotel requirements of surveyed events, and the resulting market capture levels. This assessment is presented in the following chart.
The graphic shows event by event exhibit space needs, with an overlay of the actual room nights by event. There are several events that can be accommodated by the existing PSCC exhibit space but cannot be accommodated with the available hotel inventory.
For example, though the exhibit hall of the PSCC can accommodate 83 percent of the identified market, only 80 percent of these planners’ needs are met by the current maximum committable hotel package within 1-mile of the PSCC.
When adjusting for this limitation, only 66 percent of the target market for the PSCC can be accommodated in both the existing PSCC exhibit and committable hotel room inventory.
These data are used later in this report to help define market-supportable building program and hotel investment scenarios. 0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
1%5%9%
14%18%22%26%30%34%39%43%47%51%55%59%64%68%72%76%80%84%89%93%97% Hotel Rooms
Exhibit Space (SF)
SF - All Events Hotel Rooms - All Events
Exhibit Space + Hotel Needs
80%
Accommodated by
maximum 1-mile
committable
rooms* PSCC Exhibit Space
53%
Accommodated by
minimum 1-mile
committable
rooms*
5 MARKET DEMAND
Note: *70 and 53 percent was attained by cross comparing max and min committable room needs and exhibit space needs.
Source: CSL Survey, 2022.
B – Page 1032 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 69 Palm Springs Location
Many surveyed event planners referenced the Palm Springs location and its identity as a world-class leisure destination to be a leading driver of their interest in the market as a host destination for their events. -”The Palm Springs location is very hard to beat in terms of weather, beauty and things to do.” -”Our attendees greatly enjoy going to a pristine location such as Palm Springs; it is a beautiful place.” 63% of respondents shared the location to be a major benefit to the Center as an event destination.
To guide market-supported PSCC and surrounding area improvements, it is critical to consider feedback from past and recurring customers. As such, telephone interviews were conducted with eight planners of current and past PSCC conventions. Given their unique familiarity with the existing PSCC, the remainder of this section presents suggestive feedback given by each of these groups regarding improvements that could be included as part of a PSCC redevelopment. We begin with a listing of those events that were represented as part of this outreach effort, followed by summaries of the strengths and challenges of the PSCC. 5 MARKET DEMAND
Cu2 Lost and Current/Past PSCC Events
PSCC Staff and Services
Each interviewed planner stated that PSCC staff were professional, accommodating, responsive and skilled.
Seven of the eight respondents stated that the staff was the greatest strength of the PSCC by a significant margin.
• “The staff at the Center goes above and beyond in every instance. They seem to greatly overcompensate in order to make every flaw of the destination seem irrelevant.” • “The staff is flexible, friendly and accommodating. They address our problems quickly and carefully.” 100% of respondents listed the PSCC staff as a leading strength of the PSCC.
Downtown Amenities
Respondents commonly highlighted the various amenities downtown as a strength of Palm Springs as an event destination. They often lauded the dining, retail and entertainment offerings of Palm Springs. • “Our attendees love the different restaurants downtown. The retail shops are unique and intriguing to visitors.”
• “The entertainment and attraction offerings are very nice and nearby. The dining and retail options are top notch compared to other markets.”
38% of respondents noted the amenities of downtown to be top-of-the-line.
Strengths of the Palm Springs Convention Center
Interviewed Groups Include:
• Battelle
• Varsity Spirit
• American Indian Science and Engineering Society
• IEEE
• Veritas Association Management
• SciX Conference
• Palm Springs Modernism Show
• Desert Aids Project
B – Page 1033 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 70 Facility Appearance and Features
Several planners felt that the PSCC facility could benefit from improvements to the look, layout and feel of the Center. Most planners were satisfied with the overall appearance of the Center but felt that it could use improvements in specific areas. Planners referenced a desire for adding a modern feel and aesthetic to the facility, improving the appearance of the outside of the building and/or adding new or increasing the size of meeting rooms at the PSCC.
• “Our event would really benefit from some larger meeting spaces apart from the exhibit hall and ballroom.” • “Improving the look of the backside of the building would really improve the space between the CC and downtown.”
• “The Center is amazing in terms of the building’s design; it just feels outdated and could use a refresh in several areas. ”
50% of respondents commented on the look and layout of the PSCC as a challenge point. 5 MARKET DEMAND
Hotel Inventory and Quality
The most frequently listed challenges among respondents were related to the quality and quantity of hotels surrounding the PSCC and in Palm Springs. Staffing issues stemming from the fallout of the Pandemic likely drive many of these issues, but it will still be important to consider pro-active initiatives to maximize the level of hotel customer service at going forward. Similarly, several respondents indicated that the aesthetic of the Renaissance hotel and some surrounding hotels has become somewhat outdated. • “Addressing hotel quality and staff will be necessary for us to considering Palm Springs and the PSCC in the future.”
• “The hotels in Palm Springs feel as if they are cutting services and staff, while concurrently increasing the price of accommodations.”
50% of respondents indicated a need for improved hotel offerings, services and inventory.
Challenges Of and Opportunities For the Palm Springs Convention Center Technology
Some respondents cited PSCC’s dated technology to be a moderate challenge. Most noted items include digital signage and audio-visual capabilities. Multiple planners listed problems with cellular and WIFI connectivity during events with high attendance. Planners also recommended implementing digital signage and more digital displays outside of the building.
• “WIFI during our event tends to become unusable with the number of attendees we have. It’s very important to our attendees that they can access the internet during the event.” • “More digital signage on the outside of the building would look and function great; digital signage on the inside would help us guide our attendees and improve the look and feel of our event.” 63% of respondents referenced technology as a room for improvement at the PSCC.
Other Palm Springs Convention Center and Area Strengths Other commonly referenced strengths of the PSCC and surrounding area include the quality of the catering options, outdoor event space and the walkability of downtown. • “The AV team is perfectly professional, responsive and accommodating.” • “Savoury seemed overpriced at first, but after working with their team and trying their food it is completely worth the price.”
• “The outdoor event spaces is both comfortable and beautiful; I only wish there was more.” • “Once you make it downtown it is very entertaining and easy to get around.”
B – Page 1034 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 71 Airlift and Location Accessibility
Some respondents noted that increased routes and flight capacity at the Palm Springs International Airport would be greatly beneficial for attracting events to Palm Springs. Planners indicated a desire for more routes from the eastern portion of the country and/or increased numbers of flights and seats coming into Palm Springs.
• “We would be able to grow our event and attract more participants from the eastern half of the country if there were more planes coming into Palm Springs from more routes across the country. ” • “We would love if the airport could get more direct flights to Palm Springs from across the country.” 38% of respondents cited a desire for more planes and/or routes to the Palm Springs International Airport.
Additional Opportunities and Suggestions for the PSCC and Palm Springs In their responses, several planners provided additional comments and suggestions that they felt would improve the quality of events and the experience at the Palm Springs Convention Center. These suggestions relate to a variety of categories including technology, appearance, the surrounding district, among others. • “Sound travels through the airwalls far too much and has a negative impact on our event when loud events are going on next to us.”
• “Continuing to develop the Renaissance event staff or having the convention center team work more closely with the Renaissance during events would help us utilize the hotel’s outdoor spaces more; we love those spaces.”
• “Exterior lighting would help walkability. Outdoor events that run into the night can make the venue feel safer for our attendees when they walk at night.”
• “More water bottle filling stations would be really convenient; our guests use these a ton.” • “Nighttime ambiance outside would help us to host some really cool events in the evenings at the PSCC.” • “Make sure that the convention center and hotels are continually invested in to keep the look fresh and upto-date. The look of both are good now, but they are beginning to fall behind in this regard.” Downtown Accessibility and Transportation
While most respondents see downtown Palm Springs and its amenities as a strength of the destination, many of these respondents felt that getting to downtown Palm Springs from the PSCC is an inconvenience and a challenge point for attendees. Attendees are interested in seeing a more dedicated walk route to downtown and/or a trolley/shuttle to help attendees travel while in-market. We note that the surrounding lots that are under construction will help to begin a process of connectivity between the PSCC and downtown. - “The downtown is great, and our attendees love it, but it is a challenge to get to and the lack of development in the spaces between the PSCC and downtown makes it feel unsafe and unattractive.” - “Our attendees love Palm Springs and would greatly benefit from a shuttle or trolley to help them get around town and to the downtown.”
38% of respondents saw the accessibility of and transportation to downtown as a challenge of the PSCC. 5 MARKET DEMAND
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6 BUILDING AND
DISTRICT
RECOMMENDATIONS
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Strategic Plan for the Palm Springs Convention Centers ● Page 73 6 RECOMMENDATIONS
Overall, market analysis findings suggest that investment in improving the Palm Springs Convention Center and the surrounding district would materially benefit the ability to attract high impact events to the market. Based on the in-depth research and insights presented, we have developed a list of initiatives that should be considered by PSCC management and other stakeholders to enhance Palm Springs as a convention destination. The recommendations presented herein are segmented into the following four areas of focus.
1. Convention Product Improvements
2. District Connectivity
3. Near- and Mid-Term Real Estate Planning
4. Long-Term Planning
Recommendations concerning each of these topics are presented below and on the following pages. These recommendations are designed to distinguish and elevate Palm Springs within the convention industry, as well as improve the experience for its visitor base and the quality of life for its resident base.
Many of the recommendations presented herein cannot be implemented by a single entity or agency. In fact, participation from a variety of public and private sector entities may be necessary to realize the potential of Palm Springs within the convention industry economy. To best inform Palm Springs Convention Center management and the other important stakeholders who will be critical in carrying out many of the initiatives herein, an implementation timeline is included at the conclusion of this Chapter that defines key initiatives, necessary stakeholder participation, and project milestones.
Convention Product Improvements
Analysis findings suggest an opportunity for the PSCC’s market capture to increase by enhancing the in-facility experience for both the event planner and attendee. Key aspects of a recommended facility program for an improved Palm Springs Convention Center are highlighted below within the floor plan illustration, followed by descriptions of each concept.
Recommended PSCC Improvements
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Strategic Plan for the Palm Springs Convention Centers ● Page 74 6 RECOMMENDATIONS
Re-Invention of The West
The PSCC’s western entrance represents a key opportunity to create a convention visitor “launch point” to the downtown Palm Springs destination and could help better link the facility with downtown and other nearby existing and future attractions. At the same time, the area could be further leveraged as unique meeting/gathering space, offering both spacious pre-function and outdoor areas. Today, the area seems “under-activated” to many planners and local stakeholders, with some noting that it feels more like the facility back door. Opportunities to re-invent the area for the modern convention industry are detailed below. • Outdoor Event Space: Working with the City, Jackie Lee Houston Plaza should be reconfigured to be optimized for outdoor event use. Natural elements should be transplanted to the periphery of the park area to maximize contiguous space for event activity. Tent footings, in-ground electrical and water could be added to support outdoor vendors. Dynamic lighting, including public art installations, should be added to the space to support evening activity. Shaded areas should also be provided on the periphery of the Plaza.
• Indoor/Outdoor Social Area: The entrance area into the western side of the facility should be re-imagined as an indoor/outdoor event patio for major conventions. Long Beach Convention Center’s “The Cove” (pictured on previous page) is a covered outdoor area featuring lounge seating, lounge games and bar stations. These types of amenities could be added to the covered entrance areas at PSCC, and shading, lighting and public art stations could help add vibrancy to the outdoor side walk area. Further, PSCC leadership should increasingly work with the City to close N Calle Alvarado on a periodic basis for major conventions, and work with convention planners to combine Jackie Lee Houston Plaza and the western entrance as networking into cocktail hour and social gathering space. The western façade could also be further enhanced with LED lighting to support the added activity at night, and, working with the Public Art Commission, murals could be added to the facade of the PSCC or the adjacent Renaissance.
• Local Food & Beverage: A small space (approximately 500 to 1,000 square feet) could be allotted within the western prefunction area to accommodate a kiosk structure for permanent or rotating food & beverage vendors from the local area. For example, La Quinta brewing could serve from the space during major conventions, providing attendees with unique and authentic Palm Springs beer. Revenues could be shared with the vendor, who would benefit from marketing to a highly diverse and nationwide attendee base.
• Open Space Learning: As previously noted within the Industry Trends chapter, event planners are increasingly using prefunction areas such as lobbies and atriums to host their programming. Today’s attendees increasingly enjoy non-traditional meeting formats that encourage freedom of thought and creativity. Working with Steelcase or other furniture suppliers, efforts should be made to add furniture to the pre-function areas that can host small and mid-sized gatherings. Portable desk chairs, portable whiteboards, lounge seating, charging stations, webcams, and Bluetooth-enabled and wall-mounted monitors could help support a dynamic and programmable pre-function environment. • Digital Public Art Station: Palm Springs features a nationally acclaimed inventory of public art installations, and opportunity exist to further embed this trait within the PSCC while also modernizing the building for today’s and tomorrow’s convention attendee. LED and digital-based installations could be added throughout the western pre-function and other areas of the building. Installations tied to a theme of sustainability could align well with Coachella Valley community and economic development goals. These could be potentially developed in partnership with the Public Art Commission and various local technology and sustainability businesses.
Other Building Improvement Opportunities
Opportunities exist beyond the western entrance to enhance the PSCC product. These are summarized by topic below. • Update Primrose and Meeting Space: Many planners and stakeholders commented on the dated nature of Primrose and the PSCC’s breakout meeting rooms. Investment should be made to updated these rooms with modern aesthetics and technology.
• Digital Signage: Large, highly visible LED screens should be added to highly trafficked pre-function areas. Digital signage provides two important benefits: 1) it provides information and wayfinding to attendees and 2) it provides sponsorship opportunities that increase building revenue.
• Improvement of The Renaissance: Many current/past event planners wish to see improvements to the service and space quality at the Renaissance. Over the long-term, continued deficiencies at the property may make it difficult to retain some major conventions at the PSCC. Efforts should be made to encourage investment in the property’s guest rooms and continued improvement in the quality of its service.
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Strategic Plan for the Palm Springs Convention Centers ● Page 75 • Hotel Incentive Program: The City of Palm Springs offers a hotel incentive program that re-imburses hotel owners for improvements to their properties, but this policy expires at the end of 2023. The program should be renewed, and properties that engage in PSCC room blocks should be encouraged to participate in the near-future. • Improved Eastern Entrance: Interviewed stakeholders noted that PSCC event attendees who drive in will now primarily park in the Caballeros Lot to the east of the facility due to the planned development of the southwest lot, and that the facility lacks a clear sense of entry on its east side. The addition of public art, landscaping, plaza space and visible digital signage would enhance the visitor experience as they approach and enter the facility from Caballeros Lot. • Increase Storage: Opportunities to increase storage space at the PSCC should continue to be evaluated by leadership, particularly if additional furniture is purchased to address previous recommendations. Given its limited use, the existing green room just east of Primrose Ballroom could offer additional storage. • Diversify Wi-Fi Options: In reviewing event planner and stakeholder comments, the PSCC Wi-Fi offering needs to be more flexible. Working with Encore, a three-tier paid system should be evaluated that offers highly affordable internet access to attendees (preferably free), a mid-tier option for streaming, and a top-tier option for transactions, 4k streaming, gaming, and other data-intensive uses.
• Conversion of Oasis 4: Historical operations analysis indicates that Oasis 4 is utilized approximately 40 percent of days throughout the year, lower than each of the other sub-halls. At the same time, the PSCC is deficient in ballroom space.
Potential may exist to enhance Oasis 4 with higher quality carpet, acoustic paneling, ceiling treatment, dynamic lighting and technology to create opportunities to accommodate traditional ballroom/general session functions.
District Connectivity
The Downtown Palm Springs destination is a unique and appealing visitor industry asset that could be further leveraged as a competitive advantage over peer convention facilities. As previously presented, Palm Springs’s strongest visitor assets (attractions, hotels, restaurants, etc.) are largely concentrated in downtown, but are somewhat lacking within PSCC’s ½-mile radius. Guiding convention attendees to/from the PSCC to the downtown should be a critical goal of the City and PSCC management going forward. Opportunity exists strengthen the pedestrian experience between the PSCC and downtown assets through wayfinding, public art, lighting, technology, landscaping and other elements. Potential corridors for enhancement include E Amado, E Andreas, and E Tahquitz Canyon Way. Specific recommendations are highlighted within the graphic below and further described on the following pages.
PSCC District Connectivity Planning
6 RECOMMENDATIONS
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Strategic Plan for the Palm Springs Convention Centers ● Page 76 6 RECOMMENDATIONS
• Monumental Public Art: One or more large-scale installations could be a defining component of the PSCC’s western entrance.
An installation could be located across the street from Jackie Lee Houston Plaza or at the beginning of E Andreas Rd at the PSCC entrance. One or more installations could also be located along one of the three westward corridors pictured above, serving as directional landmarks to downtown. As illustrated above, monumental installations could be large, moving sculptures; multi-story murals with historical or cultural significance; or tech-forward projection lighting onto building surfaces. • Themed Wayfinding: Pedestrian navigability would be enhanced with the development of Convention District-based wayfinding signs. Hotel concierge staff could, for example, direct the visitor to a landmark piece art, at which point the more specific directional signage would be located. The example pictured within the graphic on the previous page reflects elements of simple directional cues that reference the direction of key points of interest. In addition, one ore more strategically placed digital, interactive kiosks could be added at highly visible points along one of the westward corridors. These could be located near new public art elements and placed in settings that make the kiosks easily visible to the pedestrian. These new wayfinding structures should feature Convention District branding, décor or other elements unique to the destination, as well as information regarding the PSCC and attractions in the immediate area. • Street Performances: VillageFest already organizes a myriad of street performances on Thursday nights throughout the year.
For some of the PSCC’s largest citywide events, potential may exist for VillageFest leaders, Downtown Palm Springs decisionmakers and the PSCC to organize a “trail” of performers to lead visitors to key areas of downtown from the Convention Center. A modest budget could be prepared to support these types of periodic performances, particularly during major PSCC evets.
• Convention Center Marquee: Many stakeholders suggested that the PSCC’s activity should be better advertised to the local community. A large digital LED board that is potentially based on the façade of the facility and maintains the City’s aesthetic/character standards could serve as both an informational resource that showcases the major events that are indestination, as well as a placemaking enhancement at night. However, opportunity may also exist to display information regarding events at the PSCC within LED-activated nighttime installations (described further herein). • Nighttime Installations: A trail of interactive and eye-catching installations could be developed to guide convention visitors from the PSCC to Downtown along one or more of the westward corridors. These could be permanent or temporary public art pieces. Light-up installations could also partially address the lighting and safety issues raised by stakeholders. Minneapolis’s Nicollet Mall, for example, features the adjacent “nighttime beacons” along the avenue to both provide lighting for pedestrians and a unique ambiance. Further, LED signage within/on the installations may also provide an opportunity to display information regarding events at the PSCC for passersby. • Pedestrian Lighting: Stakeholders commented on the lack of lighting along East Andreas Road and other areas surrounding the PSCC. Additional pedestrian-focused lighting along the western façade of PSCC, at Jackie Lee Houston Plaza, along North Calle Alvarado, and along one or more of the westward corridors would address this issue. New lighting could also provide a unique opportunity to serve as a public art and placemaking asset. LED technology could include a vast array of color options, fluctuating lighting patterns and other attraction elements along the connections between Downtown and the PSCC. • Electric Microtransit: App-activated, electronic vehicle fleets have quickly emerged in markets throughout the country. These services specialize in providing one-mile trips in congested urban areas. Finding a private partner to provide this service in Downtown Palm Springs could be particularly beneficial to the convention industry in the long-term as the market matures.
For example, El Paseo in nearby Palm Desert now provides a “Ride Circuit” app to accompany their Courtesy Carts along the roadway, enabling travelers to quickly hail a shuttle vehicle for short one-mile-or-less rides. More recently, autonomous versions of these vehicles have been trialed in markets such as Columbus, Ohio and Grand Rapids, Michigan with successful results. Further, See Plymouth in Massachusetts recently purchased a large fleet of these vehicles (approximately $15,000 per vehicle) to serve as shuttles throughout their popular historic downtown. • Other Pedestrian Experience Improvements: Other placemaking improvements such as landscaping, planters, shading, and misters could be added along the westward corridors to enhance the walking experience to/from the PSCC and Downtown Palm Springs.
For many of the initiatives described above, the City engineering and planning departments will be critical partners, along with the Public Art Commission, Main Street Palm Springs, VillageFest, and others.
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Strategic Plan for the Palm Springs Convention Centers ● Page 77 6 RECOMMENDATIONS
Near- and Mid-Term Real Estate Planning
The PSCC is adjacent to several key parcels that are planned for hospitality-related development,. These projects represent key opportunities to improve the Palm Springs convention product and could have transformational impacts on the destination’s trajectory in the convention industry. At the same time, the future development and growth of downtown will be paramount to maintaining and improving the convention attendee experience. To provide useful principles for guiding these developments in the best interest of the convention and visitor industries, we have prepared the following recommendations for hotel, downtown and other hospitality projects going forward. The illustration below highlights key areas of interest.
PSCC District Real Estate Planning
• Hotel Development Principles: There are currently two privately owned parcels above that are being planned for future hotel developments. The Dream Hotel site, located just north of the PSCC, includes plans for between 150 and 200 hotel rooms, in addition to an inventory of condos and vacation rentals. The project has been stalled for several years and plans and/or ownership could very well change in upcoming years. To the PSCC’s southwest, a private developer is planning a similar hotel develop atop the existing surface parking lot. Finally, a third privately held site to the southeast of the PSCC, formerly a restaurant, could also become a hotel property. For each project, room count and scale/style should be prioritized as part of their development. These are summarized below.
• Room Count: As shown previously, the PSCC is deficient in ½-mile hotel room inventory. The two proposed projects above could add approximately 350 rooms to the area, though only 40 percent of these are likely to be committable for conventions (based on typical industry standards). Preferably, the combined room inventory between the two properties should total between 500 and 600 rooms, thereby providing 200 to 240 additional rooms for hotel room blocks for events at the PSCC. As planning progresses on the project sites, the public sector should be pro-active in encouraging the maximization of the room counts. Consideration could be given to offering modest public subsidies to support larger hotel properties.
• Scale and Style: With added options such as AirBnb’s and vacation rentals in the market, and the ability to quickly review prospective properties, today’s convention visitor is increasingly selective on where they stay and elements such as service and aesthetic are materially impactful on their decision. To best support the convention industry, these future hotels should be full-service or select service “plus” properties that offer trend forward dining, modern and spacious pre-function areas, and unique and tasteful interior décor. 3 B – Page 1041 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 78 6 RECOMMENDATIONS
• Downtown Development: Many interviewed stakeholders commented on Downtown’s significant progress over the past 20 years. However, some feel that the area has “plateaued” and that strategic investment is needed to continue its evolution.
Initiatives to maintain and enhance the visitor experience in downtown are presented below. • Business Improvement District: Many stakeholders commented on moderate issues with safety, cleanliness and storefront aesthetics along Palm Canyon Drive. These types of issues are normally addressed in similar urban areas by a business improvement district (BID). Main Street Palm Springs serves as a limited version of this for the Downtown area, and spearheads promotions, marketing and the providing of business resources for business and property owners in the area. However, the organization operates with a limited budget, and does not have the resources typically available to BID’s nationally.
BID’s are typically funded by an assessment of property owners in targeted urban areas, and typically are governed by an executive director and board of directors consisting of residents, business owners, and other stakeholders.
Providing ambassadors who clean and ensure safety is typically the most basic and primary services provided by these entities, as well as promoting downtown areas through events, marketing and banner programs. Higher level functions include placemaking and beautification services (providing of planters, landscaping or public art), business recruitment services (façade improvement programs, build out grants, and offering of other incentives), and broader downtown strategic planning (paying for/leading downtown master plans, having a significant voice as part of downtown development, using a revolving loan fund to pay for property acquisition and/or development, etc.) City leaders should evaluate the feasibility of developing such an organization for Downtown Palm Springs and educate property owners in the area regarding the important benefits that it could provide to the visitor experience.
With sufficient funding, this organization could lead important, Downtown-focused programs such as storefront improvement grants, beautification efforts, street/sidewalk cleaning, and downtown ambassadors. • Hospitality Businesses to Target: Downtown currently offers a robust inventory of restaurants and retail, as well as several options for entertainment and recreation. As with any product, it will be important to evolve the Downtown assets and, as appropriate, diversify its offerings to appeal to the visitors of today and tomorrow. In considering feedback provided by event planners for this study effort and past projects, and findings from CSL’s site tours, the area could benefit from additional non-chain restaurants and retail, as well as one or more unique club-like performance venues. Unique breweries or distilleries, wine tasting rooms, bars featuring a variety of live music, location-based entertainment, bookstores, combo coffee shops and bars, more unique art shops or galleries, and other concepts were suggested by many stakeholders. Several also discussed opportunities to add an improv comedy club.
City decisionmakers should prioritize these types of businesses as part of economic development and Downtonfocused plans Identifying these businesses and initiating conversations regarding locating downtown will be important first steps. In some cases, modest incentives may be needed to attract and retain them in the downtown area. The waiving of permit fees, build out cost assistance, storefront improvement grants, and other services could be offered. The BID entity discussed above could also potentially offer incentives such as storefront improvement or build-out grants to secure such businesses.
Long-Term Planning
Several City-owned parcels adjacent to the PSCC offer important opportunities to develop convention and/or hotel product in the future. It will be important to retain this real estate and begin planning for how they could be best positioned to enhance Palm Springs as a convention destination. The illustration on the following page highlights these key parcels and is followed by discussions regarding how each could be best developed in the long-term. 4 B – Page 1042 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 79 6 RECOMMENDATIONS
PSCC District Long-Term Planning
1. Land Bank Opportunity at East Lawn: The City-owned East Lawn should be designated as a future expansion site for PSCC’s Oasis Hall. The parcel is approximately 50,000 square feet, and assuming the inclusion of industry standard support space for added exhibit space, could accommodate an approximate 30,000-square foot contiguous expansion of Oasis Hall. This would increase Oasis Hall’s contiguous exhibit space to approximately 122,000 square feet, which would greatly elevate PSCC’s potential market capture. Though East Lawn is occasionally used by PSCC events as outdoor event space, many stakeholders feel that the space is fairly under-activated. A repurposing of the exiting Jackie Lee Houston Plaza as discussed previously in this section could better accommodate outdoor function needs.
2. Private-Held Parcels: As noted previously, the adjacent, privately owned parcels surrounding the PSCC are opportune sites for new hotel development. Ideally, one of these sites would become a full-service headquarter hotel property that could commit an additional 300 rooms to PSCC events. The approximate 4.5-acre site to the west of the PSCC towards downtown Palm Springs is an ideal location for a large convention hotel and other hospitality/landscaping elements that help connect the PSCC to downtown. It is important to note that any significant PSCC expansion would significantly increase the need for committable hotel room inventory at one of these sites.
3. Land Bank Opportunity at Caballeros Lot: Located just east of the PSCC, the City-owned Caballeros Lot could be a future expansion site for the PSCC in the long-term. Totaling approximately 7.8 acres, the Lot could likely accommodate an extension of the PSCC and a parking structure that would replace existing surface parking at the site. To avoid closing N.
Avenida Caballeros, any new PSCC space on the site could be added and connected via skywalk. The specific programming for the added space could include a variety of multi-use spaces designed to house individual events, and to serve large campus-oriented events that use both the new space and the existing PSCC. 1 2 2
2 3
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Strategic Plan for the Palm Springs Convention Centers ● Page 80 6 RECOMMENDATIONS
Implementation Timeline
We have considered the timing of each of the primary recommendations presented previously and have identified the stakeholders that should be involved in their planning and implementation going forward. The images below provides a high-level summary of these elements as they relate to each recommended initiative.
Key Stakeholders Involved in Implementation
Recommendation Project Timing
1 PSCC Building-Wide Improvements (aesthetics, internet, digital signage, storage, hotel experience) 1-2 years 2 Re-Invention of PSCC's Western Outdoor Space/Entry/Lobby 1-2 years 3 Hotel Development Adjacent to PSCC 1-3 years
4 Convention District Connectivity Initiatives 1-5 years 5 Enhancement of Oasis 4 into Higher Scale Multipurpose Space 3-5 years 6 PSCC HQ Hotel Development 3-5 years
7 Downtown BID 3-5 years
8 Expansion to Caballeros Lot (Multipurpose Facility and Possible Hotel) 5-10 years 9 Oasis Hall Expansion 10+ years
10 Downtown Targeted Business Recruitment Ongoing
Palm Springs Convention Destination Plan
Schedule of Recommended Initiatives
1 PSCC, Encore, Renaissance
2 PSCC, City, Steelcase, Local Brewery or Restaurant, Local or International Artists 3 City, Developers
4 PSCC, City, Agua Caliente, Local and International Artists, Developers, GPSCVB 5 PSCC
6 PSCC, City, Developers
7 City, Main Street Palm Springs, Local Property Owners, Local Business Owners 8 PSCC, City, Developer
9 PSCC, City
10 City Economic Development, Main Street Palm Springs, Local or Regional Business Owners Key Local Stakeholders
Palm Springs Convention Destination Plan
Key Local Stakeholders
Recommendation
#
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7 ECONOMIC AND
FINANCIAL IMPACTS
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Strategic Plan for the Palm Springs Convention Centers ● Page 82 7 ECONOMIC AND FINANCIAL IMPACTS
Overview & Key Assumptions
This chapter presents an analysis of estimated utilization and costs/benefits associated with an improved PSCC and surrounding convention district, focusing on “incremental” costs/benefits relative to the existing convention product. Working with PSCC sales staff, key assumptions were developed to generate estimates related to an improved PSCC. A stabilized year of operation is assumed to occur by the fifth full year of improved facility operations. All dollar figures are represented in terms of constant 2023 dollars. Key assumptions used in the analysis and projection of operating performance associated with an improved PSCC include, but are not limited to the following conditions:
1. This analysis is designed to assist project representatives in assessing the potential utilization, financial and economic impacts associated with an improved PSCC and cannot be considered a presentation of expected future results. The assumptions disclosed herein are not all-inclusive, but are those deemed to be significant. Because events and circumstances frequently do not occur as expected, there usually will be differences between estimated and actual results and these differences may be material.
2. It is assumed that an improved PSCC will be aggressively marketed consistent with the current management structure, providing competitive rental rates and focusing on attracting hotel room night-generating business such as conventions, conferences and tradeshows. It is assumed that there are no significant or material changes in the supply or quality of existing competitive venues in the local and regional marketplace, nor are there any significant or material changes to local and national event industry trends.
3. The projections developed herein relate to opening and annual operations in a post-COVID-19 environment (first full year of operations is currently undetermined). Should the recovery from the pandemic be slower than broadly expected, disruption by new virus variants, or economic conditions and commerce have not substantially recovered in the near-term, the performance projections outlined herein will need to be revised.
4. Stabilization of operations is assumed to occur by the fifth full year of operations. At which time, annual event levels, attendance and operating performance are projected at consistent year-over-year levels. All figures are presented in terms of constant 2023 dollars.
5. For exhibits herein, comparisons to existing PSCC operations are displayed. The “existing PSCC” represents the average of the three most recent calendar years not impacted by the COVID-19 pandemic (2017-2019).
6. The analysis herein presents PSCC usage and attendance levels, associated economic and fiscal/tax impacts, and high-level financial operations analyses for three potential future scenarios. These are described below:
1. Do Nothing: The PSCC product continues to operate as is over the next five years; lack of investment leads to deterioration of market share, as planners of rotating conventions select convention facilities and destinations with more updated amenities, walkable districts, and greater hotel room support.
2. Mid-Term Investments: Previously discussed improvements and advancements are made to the PSCC convention product, including the West Hall transformation, updates to Primrose Ballroom and meeting rooms, the development of a new hotel to the southwest, and the creation of a pedestrian trail to downtown Palm Springs.
3. Long-Term Investments: Transformational projects previously discussed are completed that greatly enhance the desirability of the PSCC convention product and enable the facility to host larger, more economically impactful conventions. These projects include the development of a new 350- to 400-room headquarter hotel at one of the previously identified sites near the PSCC, the expansion of Oasis Hall (adding approximately 25,000 square feet of contiguous exhibit space), the addition of a new 30,000- to 35,000-square foot ballroom.
The remainder of this section presents analysis and takeaways regarding the various economic, fiscal and financial operating impacts associated with each of these three scenarios.
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Strategic Plan for the Palm Springs Convention Centers ● Page 83 Events and Attendance
As noted in the following table, PSCC event data are presented for banquet, civic, consumer show, conventions (small, mid-sized, and large), entertainment, meeting, sports, and other events. A comparative analysis has been prepared that summarizes the incremental gains and losses in event activity associated with each of the three previously identified scenarios relative to “baseline” PSCC event levels. Average event levels during the pre-Pandemic period of 2017 through 2019 have been used as a baseline for PSCC event activity.
Under a Do Nothing scenario, the PSCC is estimated to host four less mid conventions and two less large conventions annually relative to the 2017-19 period. Mid-Term Improvements are estimated to result in a total of seven (7) more conventions per year and an eight (8) percent increase in overall event count. Headquarter hotel development, expansion of Oasis Hall, and the added ballroom associated with Long-Term Improvements are estimated to attract 15 new rotating conventions per year relative to 2017-19, and a 28 percent increase in overall event activity.
To further illustrate the difference in event levels and event mix between the three scenarios, the following bar chart presents the event day and attendance levels of their estimated convention calendars. As shown, during the three years prior to the Pandemic year of 2020, the PSCC averaged 123 convention event days and nearly 37,300 convention attendees. The attraction of more “Mid” and “Large” conventions under the Mid- and Long-Term scenarios would lead to increases of 33 and 58 event days from this baseline, respectively. Likewise, annual convention attendance is estimated to increase by approximately 6,300 with MidTerm investment, and by 17,500 with Long-Term investment. Under a Do Nothing scenario, annual event days and attendance are estimated to drop by 29 days and 9,700 attendees, respectively.
PSCC
2017-2019 Stabilized % Stabilized % Stabilized %
EVENT LEVEL ESTIMATES Avg. Year Incremental Growth Year Incremental Growth Year Incremental Growth
NUMBER OF EVENTS
Banquet 19 16 (3) -16% 23 4 21% 27 8 42%
Civic 1 1 0 0% 1 0 0% 1 0 0%
Consumer Show 10 10 0 0% 10 0 0% 10 0 0%
Small Conventions 7 8 1 14% 10 3 43% 12 5 71%
Mid Conventions 14 10 (4) -29% 18 4 29% 22 8 57%
Large Conventions 6 4 (2) -33% 6 0 0% 8 2 33%
Entertainment 6 6 0 0% 6 0 0% 6 0 0%
Meeting 78 70 (8) -10% 78 0 0% 93 15 19%
Other 23 23 0 1% 28 5 22% 32 9 39%
Sports 3 4 1 22% 4 1 22% 5 2 67%
Total 167 152 (15) -9% 180 17 8% 211 47 28%
Do Nothing Mid-Term Improvements Long-Term Improvements 29 22 18 23 28 35 41
60 38
68 55 39
70 85
51 30
52 44
28 42
140 56
90 139
123
94 146
183
39,600
31,600
40,600
37,300
27,600
43,600
54,800
0 10,000
20,000
30,000
40,000
50,000
60,000
0 50
100
150
200
250
300
201720182019
2017-
2019 Avg.
Do
Nothing
Mid-Term
LongTerm
Attendance
Convention Event Days
Large Conventions
Mid Conventions
Small Conventions
Attendance
7 Event Days and Attendance Analysis - Conventions
(Historical vs. Future Scenarios)
ECONOMIC AND FINANCIAL IMPACTS
Small Conventions: Convention/conference events with less than 1,000 total room nights.
Mid Conventions: Convention/conference events with between 1,000 and 2,500 total room nights.
Large Conventions: Convention/conference events with more than 2,500 total room nights.
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Strategic Plan for the Palm Springs Convention Centers ● Page 84 Utilization and Room Night Generation
Using event and utilization day estimates, we have prepared a comparison of exhibit space occupancy among the three Scenarios and historical PSCC operations. The PSCC’s Oasis Hall operated at an average of 50 percent square footage occupancy during the three full years prior to the Pandemic. Due to the erosion in convention market capture shown on the previous page, occupancy is estimated to drop significantly to 40 percent under a Do Nothing scenario. Conversely, with the MidTerm improvements, the PSCC’s “typical” annual occupancy could consistently match the peak in 2019, highlighting the need to prioritize these investments in the near-term. With Long-Term investments, an Oasis Hall with approximately 25,000 square feet of added exhibit space is estimated to run at 52 percent square footage occupancy during a stabilized year of operations. The 52 percent occupancy allows for continued demand growth driven by a new headquarter hotel, better connectivity to downtown, improvements to existing PSCC space, and added event space.
The bar chart below presents estimated hotel room night generation associated with historical PSCC event activity and the three investment scenarios. Mid-Term improvements, such as an added ~150-room hotel and a re-invention of PSCC’s western prefunction and outdoor event space, are estimated to lead to a material increase in room nights relative to the pre-Pandemic baseline, with a delta of 10,000 hotel room nights per year. The Long-Term initiatives are estimated to lead to a more considerable jump of 31,600 room nights per year relative to 2017-19. We note that the room night totals under this scenario reflect a long-term horizon and will have to be further analyzed when such an expansion scenario becomes a realistic prospect.
Long-Term initiatives lead to an increase of 49,000 room nights per year relative to a Do Nothing scenario, highlighting the need to continually invest in the Palm Springs convention product. 90,700 81,200
98,500 90,100
72,600
100,100
121,600
-
30,000
60,000
90,000
120,000
150,000
2017 2018 2019 2017-2019
Avg.
Do Nothing Mid-Term Long-Term
51%
43%
56%
50%
40%
56% 52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2017-2019
Avg.
Do Nothing Mid-Term Long-Term
7 Exhibit Space Square Footage Occupancy
(Historical vs. Future Scenarios)
Practical Maximum Capacity
Hotel Room Nights
(Historical vs. Future Scenarios)
ECONOMIC AND FINANCIAL IMPACTS
* - assuming higher space demand and higher available square footage.
Note:: Room count calculations above include hotel room nights tracked by PSCC as well as an estimated ~17 percent of attendees who book :outside the room block.
Therefore, though 82,000 room nights were tracked in 2019, it is assumed that a total of 98,500 room nights were :generated. *
B – Page 1048 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 85 Direct Spending and Total Economic Output
CSL has developed models that incorporate PSCC event, attendance, attendee origin and other data in order to measure the amount of direct delegate spending that has been created on a net new basis. As noted in the exhibit below, events at the PSCC generated approximately $46.3 million per year on average prior to the Pandemic. Should no improvements of the convention product take place, this spending is estimated to lower to $39.1 million (16 percent drop). Improvement of the product under in the Mid-Term would lead to a sustained level of the peak spending generated in 2019 (just over $51.3 million), while an expansion and new headquarter hotel in the Long-Term would increase the baseline average by 34 percent to approximately $62.0 million annually.
The net new direct spending generated by events held at the PSCC will circulate throughout the local economy, creating indirect and induced spending. Combined, the direct, indirect and induced spending is termed total output. The total output generated by PSCC events averaged $78.6 million during the 2017-19 period. Modeling suggests that this impact could increase by 11 percent with a new neighboring hotel, PSCC improvements, and various district enhancements that could be implemented in the MidTerm. Without these investments, output is estimated to drop by 16 percent to $66.3 million annually. Upon development of a headquarter hotel and expansion of PSCC, an increase to $105.2 million in total economic output is estimated. $30.0M $27.0M $31.3M $29.4M $24.5M $32.5M $39.1M
$20.1M $17.0M $22.5M $19.9M $17.0M
$22.2M $26.8M
$79.9M
$69.6M
$86.4M $78.6M
$66.3M
$87.2M
$105.2M
$.0M
$15.0M
$30.0M
$45.0M
$60.0M
$75.0M
$90.0M
$105.0M
$120.0M
$135.0M
$150.0M
201720182019
2017-2019 Avg.
Do Nothing
Mid-Term
Long-Term
Other
Local transportation
Entertainment
Retail
Restaurant
Hotel
$17.8M $16.0M $18.6M $17.5M $14.6M $19.3M $23.2M
$12.0M $10.1M $13.4M $11.8M $10.1M
$13.2M
$15.9M
$47.0M
$41.0M
$50.9M $46.3M
$39.1M
$51.3M
$62.0M
$.0M
$10.0M
$20.0M
$30.0M
$40.0M
$50.0M
$60.0M
$70.0M
$80.0M
$90.0M
$100.0M
2017 2018 2019 2017-2019
Avg.
Do Nothing Mid-Term Long-Term
Other
Local transportation
Entertainment
Retail
Restaurant
Hotel
7 Annual Direct Attendee Spending by Industry
(Historical vs. Future Scenarios)
Annual Economic Output by Industry
(Historical vs. Future Scenarios)
ECONOMIC AND FINANCIAL IMPACTS
B – Page 1049 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 86 Wages and Job Creation
The total output generated by PSCC events includes a component of employee earnings. These earning impacts take place throughout the economy, certainly in the hospitality sector, but also within other sectors. PSCC-generated earnings averaged $32.3 million during the 2017-19 period. With a new headquarter hotel, PSCC expansion, and various PSCC and convention district enhancements, earnings could increase by 11 percent to $35.9 million. A loss of approximately $5.0 million in annual earning is estimated under a Do Nothing scenario.
The economic impact generated by PSCC events also includes a very important employment effect. Jobs are generated within the hospitality sector, creating important opportunities for entry level staff, invaluable training opportunities, and high-wage jobs in various management positions. Employment impacts also flow through the economy in many other sectors, as earnings are spent locally. PSCC event activity supported an average of over 930 jobs per year during the 2017-19 period. With Mid-Term improvements, this is estimated to jump to just over 1,030 annually. With a new headquarter hotel and expansion of exhibit space, an increase to nearly 1,250 is estimated, representing a delta of 316 new jobs supported per year relative to 2017-19.
Under a Do Nothing scenario, PSCC events would support an estimated 461 less jobs relative to the Long-Term scenario and 246 less jobs relative to the Mid-Term scenario, again highlighting the importance to the Palm Springs economy of prioritizing convention-quality hotel development, implementing convention district improvements, and enhancing the PSCC product. 285 257 297 280 233 309 371
305 258
341 302 257
336
407
945
819
1,028
931
786
1,033
1,247
-
300
600
900
1,200
1,500
201720182019
2017-2019 Avg.
Do Nothing
Mid-Term
Long-Term
Other
Local transportation
Entertainment
Retail
Restaurant
Hotel
$12.1M $10.9M $12.6M $11.9M $9.9M $13.1M $15.7M
$8.8M $7.4M $9.8M $8.7M $7.4M
$9.7M
$11.7M
$32.8M
$28.6M
$35.5M $32.3M
$27.3M
$35.9M
$43.3M
$.0M
$12.0M
$24.0M
$36.0M
$48.0M
$60.0M
201720182019
2017-2019 Avg.
Do Nothing
Mid-Term
Long-Term
Other
Local transportation
Entertainment
Retail
Restaurant
Hotel
7 Annual Wages/Earnings Impacts
(Historical vs. Future Scenarios)
Annual Full-Time Equivalent Jobs Supported by Industry
(Historical vs. Future Scenarios)
ECONOMIC AND FINANCIAL IMPACTS
B – Page 1050 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 87 Fiscal Impacts and Hospitality Industry Profit
Direct spending, total output and earnings will all help to support the generation of new tax revenues to various public sector entities. The exhibit below presents estimates of sales and hotel tax revenues associated with historical PSCC event activity and the three investment scenarios. The PSCC event activity generated an estimated $5.8 million in total tax revenues in 2019. With moderate Mid-Term improvements, this would be sustained on an annual basis. Lack of investment will lead to $900,000 less in estimated tax revenue per year relative to the pre-Pandemic average. Significant Long-Term initiatives are estimated to lead to an increase of $1.8 million per year in annual tax revenue, including $800,000 in incremental hotel revenue for the City.
The spending generated by PSCC event attendees, exhibitors and planners that is new to the Palm Springs community also generates profit within various hospitality industry sectors. As these sectors often contribute significantly to the funding, operation and marketing of convention centers, we have generated estimates of the current and potential future hotel and restaurant industry profit garneted by the PSCC. Profit estimates for the hotel sector focus only on the rooms department, assuming a 65 percent margin on room sales. A ten (10) percent margin is assumed on restaurant sales.
As noted in the exhibit below, the combined hotel and restaurant sector profit approximated an average of $12.6 million in estimated profit due to PSCC event activity during the 2017-19 period. This consists of $11.4 million in hotel profit and $1.2 million in restaurant profit. Combined profit is estimated to fall by a substantial $2.1 million per year under a Do Nothing scenario.
Moderate improvements, including a nearby hotel, would enhance this figure by $1.2 million per year, while transformative investments would elevate estimated profits to $16.7 million annually, representing a $4.1 million annual increase relative to the pre-Pandemic average.
$11.6M $10.4M
$12.1M $11.4M
$9.5M
$12.5M
$15.1M
$1.2M $1.0M $1.3M $1.2M $1.0M $1.3M $1.6M
$.0M
$2.0M
$4.0M
$6.0M
$8.0M
$10.0M
$12.0M
$14.0M
$16.0M
201720182019
2017-2019
Avg.
Do Nothing
Mid-Term
Long-Term
Profits
Hotel Industry Profit Restaurant Industry Profit
$.5M $.4M $.6M $.5M $.4M $.5M $.7M $.6M $.5M $.6M $.6M $.5M $.6M $.8M $2.0M $1.7M
$2.2M $2.0M $1.7M
$2.2M $2.6M
$2.3M
$2.1M
$2.4M $2.2M
$1.9M
$2.5M
$3.0M $5.4M
$4.7M
$5.8M $5.3M
$4.4M
$5.8M
$7.1M
$.0M
$1.0M
$2.0M
$3.0M
$4.0M
$5.0M
$6.0M
$7.0M
$8.0M
$9.0M
$10.0M
201720182019
2017-2019 Avg.
Do Nothing
Mid-Term
Long-Term
City Hotel Tax Collections
State Sales Tax
Collections
County Sales Tax
Collections
City Sales Tax Collections
7 Fiscal/Tax Generation Impacts
(Historical vs. Future Scenarios)
Hospitality Industry Profits
(Historical vs. Future Scenarios)
ECONOMIC AND FINANCIAL IMPACTS
Tax Rates:
City Hotel Tax: 13.5%
State Sales Tax: 6%
County Sales Tax: 1.75%
City Sales Tax: 1.5%
B – Page 1051 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 88 Financial Operations Analysis
We have prepared a review of PSCC financial operations, focusing on net operating revenue and loss. These data are then compared to similar venues on a square footage of sellable space basis. The results of this comparison are used to identify areas where PSCC financial operations may align with or outperform the benchmark of comparable projects. Recommendations are then made with respect to adjusting targets for future PSCC financial operating performance, with consideration given to the three investment scenarios.
We begin with a summary of PSCC financial operations. It is important to note these data are presented for the PSCC’s fiscal years, which end in June.
As shown, the facility’s net operating deficit improved significantly from its FY 2017-19 average, increasing from a near-$1.3 million loss to a $500,000 annual deficit. According to management, this improvement is primarily due to lowered staffing levels as salaries and benefits decreased by over $600,000 in FY 2022 relative to the FY 2017-19 average. As the industry continues to fully rebound from the Pandemic, it is expected that this figure may increase as PSCC leadership hires additional staff to manage higher event levels.
Management highlighted annual utilities costs as the other key factor in FY 2022’s lower expense figure. Due to the installation of solar panels by the City, the PSCC now saves greatly on electricity and shares these costs with the City. This should be a sustainable cost saving for the PSCC going forward.
Meanwhile, FY 2022 revenue remained relatively proximate to the FY 2017-19 average, decreasing by less than five percent (approximately $132,300).
Considering typical convention facility standards, operating at an annual deficit of less than $1.0 million typically indicates a welloperated venue. It is not uncommon for similarly sized convention facilities to operate at a significant loss of more than $1.0 million, thus requiring substantial tax-backed subsidies to operate.
PSCC’s financial operating performance is presented within a comparative context as part of the exhibit on the following page.
Operating Revenues
FY 2017 - FY
2019 Avg. FY 2022
Facility rent $994,763 $879,421
Food service (net) 1,056,082 1,081,590
Contract service/other 872,080 829,579
Total Operating Revenues $2,922,925 $2,790,590
Operating Expenses
Salaries and benefits $2,316,716 $1,701,908
Contract labor 447,185 407,105
Utilities 419,411 153,860
Repair & maintenance 156,400 274,876
General & administrative 489,479 424,555
Supplies 65,497 56,513
Insurance 43,123 37,774
Other 245,462 234,063
Total Operating Expenses $4,183,272 $3,290,654
Net Operating Deficit ($1,260,347) ($500,064)
7 PSCC Financial Operations Summary
(FY 2017-FY 2019 vs. FY 2022)
ECONOMIC AND FINANCIAL IMPACTS
B – Page 1052 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 89 Financial Operations Analysis
We have collected financial operating data from 15 convention centers that are comparable in size to the existing and potentially expanded PSCC. In terms of financial performance, convention facilities operate with an average loss of approximately $686,600, with average revenues at $7.3 million and expenses at $8.0 million. The PSCC’s FY 2022 performance ranks favorably relative to comparable and competitive venues in terms of net operating loss, while its FY 17-19 average falls well below the set’s average and median. As the convention and meeting industry continue to fully rebound from Pandemic conditions, efforts should be made by PSCC management to mitigate a gradual return to FY 2017-19 expense levels. Tactics such as controlled staffing growth and capital improvements that can save costs (such as the recently added solar panels) should be prioritized for near-term implementation.
As shown by comparative financial performances above, an eventual surplus is highly unlikely. The four facilities below with net positive performance rely on unusually frequent corporate business with high spend on food & beverage, and/or substantial revenue from paid parking.
Previously discussed improvements and expansions recommended to take place will require significant capital expenditures, and they will likely increase the building’s overhead expenses for staffing, utilities, supplies, etc. However, previously discussed trend forward upgrades, expanded event space, and added hotel room inventory will enable the PSCC to attract a greater number of events and attendees on an annual basis, and many previously recommended investments will provide a more diverse revenue portfolio that will result in greater net operating performance. For example, inclusion of a local/authentic food & beverage provider within the PSCC’s west lobby will spur greater spending by attendees and/or generate tenant revenue, while an improved Jackie Lee Houston Plaza and additional outdoor space at the western entrance will generate net new facility rental revenue.
We estimate that the PSCC will be able to maintain and potentially improve upon its FY 2022 performance with implementation of these improvements. Under a Do Nothing Scenario, it is likely that event levels will deteriorate, which will likely drop the facility’s bottom-line performance back to or below 2017-19 levels.
Sellable Net Net Operating Rev. per Exp. per
Event Space Operating Operating Operating Inc./(Loss) per SF Coverage SF of Tot. SF of Tot.
Facility (Square ft.) Revenue Expense Income/(Loss) Tot. Sel. Space Ratio Sel. Space Sel. Space Facility A 536,800 $18,979,706 $20,239,360 ($1,259,654) (2.35) 93.8% $35.36 $37.70 Facility B 423,500 $7,854,293 $9,952,168 ($2,097,875) (4.95) 78.9% $18.55 $23.50 Facility C 278,000 $11,249,745 $10,713,062 $536,682 1.93 105.0% $40.47 $38.54 Facility D 297,000 $5,856,553 $6,581,671 ($725,118) (2.44) 89.0% $19.72 $22.16 Facility E 366,600 $15,230,241 $16,738,797 ($1,508,556) (4.11) 91.0% $41.54 $45.66 Facility F 318,000 $9,700,022 $9,582,581 $117,441 0.37 101.2% $30.50 $30.13 Facility G 231,300 $7,357,133 $7,546,911 ($189,778) (0.82) 97.5% $35.48 $32.63 Facility H 141,600 $5,317,557 $5,050,498 $267,059 1.89 105.3% $37.55 $35.67 Facility I 143,300 $5,263,435 $6,041,343 ($777,908) (5.43) 87.1% $36.73 $42.16 Facility J 169,200 $4,426,206 $5,215,646 ($789,440) (4.67) 84.9% $26.16 $30.83 Facility K 132,200 $1,940,934 $3,814,200 ($1,873,266) (14.17) 50.9% $14.68 $28.85 Facility L 115,000 $4,440,396 $6,232,657 ($1,792,261) (15.58) 71.2% $38.61 $54.20 Facility M 105,700 $2,756,581 $3,751,441 ($994,860) (9.41) 73.5% $26.08 $35.49 Facility N 97,600 $6,778,369 $5,988,330 $790,039 8.09 113.2% $69.45 $61.36 Facility O 82,300 $2,259,727 $2,261,735 ($2,008) (0.02) 99.9% $27.46 $27.48 Average 229,200 $7,294,100 $7,980,700 ($686,600) (3.45) 89.5% $33.22 $36.42 Median 169,200 $5,856,600 $6,232,700 ($777,900) (2.44) 91.0% $35.36 $35.49 PSCC FY17-FY19 Avg. 128,300 $2,922,925 $4,183,272 ($1,260,347) (9.82) 69.9% $35.48 $32.61 PSCC FY 2022 128,300 $2,790,590 $3,290,654 ($500,064) (3.90) 84.8% $21.75 $25.65 7 Financial Operations Comparative Analysis
ECONOMIC AND FINANCIAL IMPACTS
B – Page 1053 of 1107
8 SALES AND
MARKETING
ANALYSIS
B – Page 1054 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 91 In this section, we review the organizational structures, staffing, and roles and responsibilities associated with generating event activity at the PSCC.
Industry Overview
Communities throughout the country are investing heavily in their convention and destination product in an effort to lure large economic impact-generating events. In order to fully leverage the existing PSCC, and to maximize the benefit of future PSCC and hospitality district investment, it is critical to have the tools needed to generate destination exposure to event planners through aggressive sales and marketing efforts managed by a lead agency with support from other stakeholder groups.
Our assessment presented in this chapter addresses current conditions relative to PSCC sales and marketing initiatives, and presents various recommendations for improving the focus and productivity of these efforts.
Throughout North America, there are standard organizational models used to deliver the sales and marketing function for convention centers. Most often, a destination will contract with a Destination Marketing Organization (DMO) to lead the convention center sales and marketing function, with staff at the convention center providing support.
The DMO will prepare and implement a sales and marketing plan, working towards a set of annual event sales goals. The DMO group sales efforts will include assembling information related not just to the center, but to hotels, attractions, transportation, and other important event production requirements.
A common model might entail a DMO sales staff of 5 to 8 dedicated largely to securing non-local convention, tradeshow and conference business for the convention center, with 1 to 3 staff at the center focusing on events that typically book within 12 to 18 months. This model is summarized in the following graphic.
A Case Study - Palm Beach County, Florida
The staffing and organizational approach used for the Palm Beach Convention Center in West Palm Beach, Florida is reflective of a common model. The destination marketing organization for Palm Beach County (Visit the Palm Beaches), maintains the following group sales positions:
• Chief Sales Officer
• AVP Group Sales - Affinity Market and Legacy Corporate Accounts • Director of Sales - West Coast & Incentive
• Senior Director of Sales - Mid Atlantic
• Director of Sales – Midwest
• Director of Sales – Florida Market
• Director of Sales – Southeast
• Manager – Multicultural Sales
• Director of Sales – Northeast
• Group Sales Manager – North Carolina, South Carolina, Michigan, New Mexico, Iowa, Nebraska, Oregon & Canada Convention Center DMO
Staffing 1 to 3 sales staff dedicated to
group sales. 5 to 8 staff dedicated to group sales
Responsibility
Support DMO during sales
efforts (tradeshows, FAM trips,
bid preparation, etc.)
The lead agency responsible for client
relationships, assembling bids
Event Focus
Focus on events booking dates
that are 12 to 18 months out
and beyond.
Focus on events booking dates that are 12
to 18 months out and beyond
8 SALES AND MARKETING REVIEW
B – Page 1055 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 92 In addition, the organization includes a Director of Tradeshow, Events & Strategic Sales Partnerships, and three Group/Industry Relations positions. This staffing approach, with 13 total staff, is very similar to the current structure at VGPS, which operates with 10 sales managers/directors and three sales coordinators.
The Palm County Beach Convention Center is staffed with three sales positions, focusing largely on near term bookings, recurring clients, and supporting Visit the Palm Beaches sales efforts. • The focus for the Palm Beach County team is on booking group events throughout the county, including the Convention Center. According to sales leadership, approximately 35 percent of their team effort is dedicated to the Center. For example, 80 percent of the corporate and incentive sales efforts will target hotels, while convention sales managers focusing on the Chicago and Washington D.C. areas will book 40 percent of their room nights into the Center. Key elements of their sales approach include the following.
• Each sales team member will pursue opportunities for both the Center and area hotels/resorts. It is often the case that a particular event lead would be considering a large hotel property, but is looking for lower room rates. A potential booking at the Center might be possible in this case. Dedicating a sales position solely to the Center or to hotel properties would limit flexibility in terms of placing events in locations best suited to their needs. • As an example, the corporate sales manager may focus largely on self-contained hotel events, however a technology users conference may be more price sensitive and is a better fit for the room rates at properties around the Center. Conversely, an event looking at the Center may have a very high-end production or food/beverage expectation that is better suited to one of the area resorts.
• Management notes that their effort to book events at the Center can benefit hotel/resort properties in the County. In some cases, a share of attendees at a Center event will book high end resort properties outside the block. Filling hotels around the Center can also create county-wide compression.
• The sales staff at Visit the Palm Beaches and at the Center share a single room night goal. This helps align the focus of the combined teams on room nights, regardless of where the leads originate. • The Visit the Palm Beaches staff are incentivized by actual room night generation rather than lead generation. This can help focus lead distribution efforts on realistic event candidates.
As noted previously, the typical convention center sales model is largely based on the premise that a convention customer will select a “destination” inclusive of venue, hotels, attractions, transportation and other assets, and a DMO is best suited to represent these assets to the planner. Center staff then play an important support role by serving as the venue expert.
In some cases (including markets as diverse as Pasadena, Las Vegas and Reno) a single organizing entity will oversee both a DMO and convention facility. Even in these cases, there is an internal segmentation of responsibilities that is similar to the model summarized above. In some cases, (Boston, Monterey and Boise, for example) convention center staff, separate from the local DMO, will maintain responsibility for nearly all convention sales and marketing.
A variation of these models is generally in place for the PSCC. ASM Global has a contract with the city to manage the PSCC and oversee Visit Palm Springs (VPS). PCCC staff provide group sales efforts, while VPS is charged with marketing efforts for the PSCC and the Palm Springs destination. (VGPS) provides group sales assistance to venues in the entire Coachella Valley, including hotels, resorts and the PSCC. This assistance, particularly as delivered for the PSCC, primarily consists of lead generation efforts, participation in industry tradeshows, assembling hotel room maintaining industry contacts and relationships.
There are no specific sales goals or sales initiatives that VGPS is contracted or required to provide. 8 SALES AND MARKETING REVIEW
B – Page 1056 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 93 Current Condition Observations
PSCC & Visit Palm Springs
The PSCC sales staff currently consists of four positions, deployed by generally by region. The department previously operated with seven sales staff, and there is a possibility that post-COVID, additional hires could be made. As a comparison, the Pasadena Convention Center Corporation (which operates the Center), maintains a sales team of 5 staff, 3 focusing on business booking outside 14 months, and two focusing on short term business. Compensation for sales staff at the PSCC does include a minor performance incentive component, however current management initiatives to revise and enhance this program should continue to be pursued.
The current four PSCC sales staff are organized on a geographic market segment basis as described below. • National associations, corporations and SMERF organizations headquartered on the east coast. • National associations, corporations and SMERF organizations in the midwest, including Chicago. • National associations, corporations and SMERF organizations headquartered on the west coast, plus state and regional events.
• Key accounts and locally generated business.
The geographical staff segmentation is common in the industry. We note that a majority of national associations are headquartered in Chicago and Washington D.C., and the current staff allocation reflects this.
Visit Palm Springs contracts with Digital Edge to provide group marketing, particularly for the PSCC. Marketing efforts include social media, web site development and accessing potential client sales lists. Total spend on group PSCC marketing efforts approximates $200,000 annually.
VGPS
The VGPS operates with approximately 10 group sales executives and staff focusing on Coachella Valley properties, generally organized around specific geographical responsibilities for particular staff. Recently, a sales professional was hired to fill the east coast sales position, continuing a focus on associations and corporations based in Washington D.C. and other east coast markets.
VGPS staff provide leads to hotels, resorts and other event venues including the PSCC. Given their valley-wide focus, they do not aggressive sell one property versus another. They do maintain contacts with Palm Springs and other area hotels to assist in their efforts of assembling room blocks for large events considering the PSCC.
Other Observations
From a process perspective, PSCC and VGPS sales staff have both distinct and overlapping responsibilities. PSCC will typically receive leads/RFP’s directly from event planners and from the VGPS. PSCC staff confirm date availability at the PSCC, and work with the VGPS to assemble room blocks for viable leads The VGPS typically maintains strong relationships with event clients, and PSCC staff attend tradeshows such as Destination Showcase and IMEX with VGPSVGPS staff. PSCC staff will typically prepare and submit event bids, oftentimes through the bid portal maintained by CVENT.
Given the significant sizing and amenity differences between a large convention center such as the PSCC and Coachella Valley hotels and resorts, the competition between these venues is limited. VGPS The quality of hotel product, complexity of booking both the convention center and hotel(s) separately, and the additional pricing structures at the PSCC compared to the resort properties is an objection often raised by group clients. This impacts the PSCC’s ability to book self-contained group type business.
There is no dedicated fund to help provide incentives for high-impact events to book the PSCC. Three percent of expected food and beverage spending by an event at the Center can be credited towards a rent reduction. In addition, PSCC sales staff will offer rental discounts on a case-by-case basis, however there is no formal rule or process for this. Through these formal and informal rental discounts in a recent 12-month period was approximately 37 percent off published rental rates. This level of discounting is very common in the industry.
8 SALES AND MARKETING REVIEW
B – Page 1057 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 94 Regardless of rental rates, the inability of PSCC and GPSCVB sales staff to access sufficient hotel rooms for event room blocks has been a major impediment to booking large city-wide events. In some cases, hotel management will not commit to specific room rates for future years. In other cases, a property will not respond to a request to participate in a room block.
This condition is not totally unexpected. The recent hotel market has supported very high room rates, creating a disincentive to contract group rooms for future years at a rate that may be lower than their current leisure rates. However, this approach does not fully consider the inevitable cyclical downturns in the economy, and hotels that forego participating in a room block today may very well suffer from lack of city-wide group demand in future years.
General Options for Future PSCC Sales Efforts
As a significant convention center in a major international hospitality market, the sales and marketing process/coordination for attracting non-local events must be well resourced, with clear roles, responsibilities, and coordinated among key stakeholders.
Today, there are typically three primary entities that engage in various ways in the PSCC group sales effort: the PSCC sales staff, VGPS, and primary hotels used to assemble room blocks.
With two organizations involved in PSCC sales efforts in terms of generating leads, assembling room blocks, maintaining national client relationships, and taking ultimate responsibility for bookings, the sales funneling and booking processes can sometimes be more complex given the unique role(s) each organization plays in the process.
There are two broad approaches that should be considered, particularly as improvements to the PSCC, hotel and surrounding district are made.
PSCC & Visit Palm Springs as Primary Sales & Marketing Agency (current model) A PSCC sales team would retain primary responsibility for maintaining PSCC client relationships and assembling room blocks.
The sales team would reflect the experience of a destination marketing organization found in similar markets including San Diego, Los Angeles, Phoenix, Denver, Palm Beach County and other significant convention destinations. We recommend a competitive review of sales, marketing and incentive funding to ensure the PSCC team as the appropriate resources to compete for business and retain key staff.
The VGPS would still play a support role, providing qualified PSCC leads, contributing to bid submittals, and leveraging their own client relationships to benefit the PSCC. This type of Center-based group sales and marketing focus would be similar to the approaches that have been taken in markets as diverse as Boston, San Diego, Boise, and to varying degrees in Las Vegas and Reno. Visit Palm Springs would retain group marketing responsibilities, including the initiatives contracted through Digital Edge.
VGPS as Primary Sales & Marketing Agency
Another option could also be given to adopting a model that resources the VGPS to be the primary sales and marketing entity for the PSCC. This model would be consistent with approaches taken in most markets whereby a CVB or destination marketing organization is responsible for booking high-impact Center events, and Center management provides highly valued event services, venue maintenance, short-term booking and support sales services. The scope of VGPS services in terms of marketing attractions and other hospitality assets throughout the Valley would be beneficial in framing the full benefits of selecting the PSCC for an event.
Under either of these two models, a single entity would be assigned the resources, staffing and responsibilities for all aspects of PSCC sales and marketing. As investment takes place in the PSCC and surrounding hospitality district, and in order to maximize high impact non-local event activity, the importance of pursuing options consistent with the concepts described above will increase.
We understand that making this change would require review and approval from the VGPS JPA Executive Committee and Board of Directors. At a minimum, a clear understanding of the roles, responsibilities and financial impact of each entity should be clearly outlined.
Moving forward, extensive conversation as to next steps will be required. We suggest that leadership at the PCSS, city of Palm Springs and VGPS JPA Board of Directors be engaged to see if all parties are interested in a new structure and sales approach. At minimum, a clear understanding of the roles and responsibilities of each entity should be clearly outlined. 8 SALES AND MARKETING REVIEW
B – Page 1058 of 1107
Strategic Plan for the Palm Springs Convention Centers ● Page 95 Other Considerations
Regardless of the particular model used, several tactics should be pursued:
• Provide a fund for incentivizing desired groups to book the PSCC. This could be sourced out of an enhanced PSCC sales and marketing budget, or a sperate source of funding, such as dedicated funding allocations from PS Resorts. • Consistent with most convention center sales organization, PSCC sales staff could be incentivized based largely on room night generation, with some incentives also based on PSCC revenue generation. • Efforts to leverage professional relationships with Palm Springs hotel ownership and management in order to secure more significant room blocks should be discussed. VGPS, PSCC, City of Palm Springs, PS Resorts and other entities should be engaged to elevate this issue in order to increase room block participation. In addition, this report recommends development of a new headquarter hotel adjacent to the PSCC in order to increase the desirability of the PSCC and Palm Springs market as a high-impact group destination.
8 SALES AND MARKETING REVIEW
B – Page 1059 of 1107
CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 BUSINESS & LEGISLATIVE
SUBJECT: GENERAL FUND, AIRPORT, AND CAPITAL 3rd QUARTER OF FISCAL YEAR 2025-26 BUDGET UPDATE AND FORECAST
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
Department of Engineering
Department of Aviation
SUMMARY:
This item will provide City Council with an update on General Fund revenues and expenses, Airport Fund revenue and expenses, and Capital for the first three quarters (July–March) of Fiscal Year 2025-26.
RECOMMENDATION:
Receive and File.
STAFF ANALYSIS:
GENERAL FUND:
General Fund Revenue Highlights
The General Fund ended the first three quarters of FY26 with total operating revenues (excluding transfers from other funds) of $106.4 million. This is up by $4.4 million or 4.3% from the three quarters of FY25. The top three tax revenues Transient Occupancy Tax (TOT), Property Tax, and Sales & Use Tax are up by 5% combined. Permits, Fines & Fees, Utility User Tax, Motor Vehicle Tax, Other Taxes, Misc. Income, Franchise Tax, Cannabis Tax and Interest Income are up as well by 3% combined.
Compared to the adopted budget for FY2025-26, the General Fund achieved in the first three quarters 61% of the annual total operating revenue budget. This achievement is one percent better than the first three quarters of FY25 (58%). The top three tax revenues achieved 59% of their total budget amounts in the three quarters of FY26, compared to 56% in the three quarters of FY25.
A – Page 1060 of 1107
City Council Staff Report
May 27, 2026 -- Page 2
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast TABLE 1
Three quarters revenue highlights are presented below:
• Transient Occupancy Tax (TOT) on cash basis is up $1.1 million or 4% from FY25 YTD. The reconciliation from cash basis to modified accrual for the first three quarters indicates TOT is up by 2.8% from FY25 YTD.
• Property Tax is up $1.4 million or 6%, largely due to higher assessment values of homes and properties. The City receives another large distribution of property tax in the 4th quarter of the fiscal year.
• Sales tax revenue is up $0.7 million or 4% from FY25 YTD. This represents the months July through January (sales tax collection is two months behind). • Permits Fines and Fees are up by $0.8 million or 7%, largely due to the increase in the fee schedule and higher Building Permits (+$676k).
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Adopt.Budget %
Transient Occupancy Tax 3,582 10,845 14,592 29,019 27,913 1,106 4% 49,106 59% Property Taxes 68 13,355 9,639 23,062 21,677 1,385 6% 38,261 60% Sales and Use Taxes 2,201 6,825 8,443 17,469 16,791 678 4% 29,839 59% Permits, Fines, and Fees 3,157 4,193 4,750 12,100 11,266 834 7% 16,178 75% Utility Users Tax 1,888 3,006 2,619 7,514 7,776 (262) -3% 10,905 69% Motor Vehicle In-Lieu Tax 0 68 4,128 4,195 3,987 209 100% 8,061 52% Other Taxes 110 214 2,949 3,273 3,325 (52) -2% 6,998 47% Miscellaneous Income 889 2,681 1,210 4,780 4,209 571 14% 4,521 106% Franchise Tax 395 607 594 1,597 1,270 327 26% 4,363 37% Interest Income 964 813 807 2,584 2,891 (307) -11% 3,833 67% Cannabis Tax 141 260 377 778 909 (130) -14% 1,038 75%
Transfers from Other Funds 0 0 0 0 3,750 (3,750) -100% 0 0% Total Revenue 13,396 42,866 50,108 106,370 105,762 607 1% 173,103 61% Amounts in Thousand USD
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Adopt.Budget %
Admin & Econ. Develop. 1,727 2,898 1,900 6,525 5,887 638 11% 8,653 75% Development Services 3,435 3,681 3,746 10,862 10,755 107 1% 18,620 58% Fire Department 6,709 8,144 6,736 21,588 21,321 267 1% 29,362 74% General Government 4,495 5,971 4,457 14,923 14,507 415 3% 21,237 70% Library 712 922 748 2,382 2,404 (22) -1% 3,291 72%
Miscellaneous Expense 0 1,755 0 1,755 1,976 (221) -11% 2,031 86% Parks and Recreation 2,128 3,891 3,003 9,022 5,954 3,068 52% 11,666 77% Police Department 9,970 11,788 10,525 32,284 33,017 (733) -2% 43,843 74% Public Works 1,686 3,005 2,936 7,627 9,856 (2,229) -23% 10,743 71% Tourism & Comm. Support 1,838 2,325 2,004 6,167 6,644 (477) -7% 8,148 76% Transfers to Other Funds 2,177 2,177 2,177 6,531 13,720 (7,188) -52% 8,709 75% Total Operating Expenses 34,877 46,557 38,232 119,667 126,041 (6,374) -5% 166,302 72% Operating Surplus/(Deficit) (21,482) (3,691) 11,876 (13,297) (20,279) 6,982 -34% 6,801 103% Amounts in Thousand USD
Revenues
Operating Expenses FY26 over
FY25
FY26 over
FY25 in %
FY26 over
FY25
FY26 over
FY25 in %
A – Page 1061 of 1107
City Council Staff Report
May 27, 2026 -- Page 3
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast • Other Taxes are down by $52k or 2%, largely due to lower tax allocation from the County of Riverside for the Redevelopment Property Tax Trust Fund (RPTTF) that manages the property tax revenue dedicated to redevelopment agencies, which are dissolved in February 2012.
• Misc. Income consists mostly of Administrative Service Charge and the Master Lease Rent (combined over 70% of misc. income) and is up $0.5 million or 14%, largely due to an increase in reimbursements (+$150k) for State mandated cost claims for Police Department from the State of California and from Tesla Energy for a performance guarantee on energy efficiency of solar panels for the General Fund (Convention Center: $66k & Animal Shelter: $28k) and Wastewater Fund ($470k).
General Fund Operating Expense Highlights
The General Fund ended the first three quarters of FY26 with total operating expenses of $119.7 million. This is down by $6.4 million or 5% from FY25 YTD. Main reasons are less transfers from the General Fund to other funds (-$7.2 million) and lower charges for facility service and fleet maintenance (-$3.5 million). These cost reductions are partially offset by higher expenses for salaries & benefits (+$1.9 million) and contractual services, insurance, utilities, and computer software (combined +$2.5 million).
Compared to the adopted budget for FY2025-26, the General Fund achieved in the first three quarters 72% of the annual total operating expense budget. This achievement is two percent points better than the first three quarters of FY25 (74%).
TABLE 2
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Adopt.Budget %
Expenses By Type
Salaries & Benefits 22,031 27,935 23,189 73,155 71,223 1,932 3% 98,340 74% Contractual Services 3,938 6,311 4,914 15,164 14,883 281 2% 23,254 65% Transfers to Other Funds 2,177 2,177 2,177 6,531 13,720 (7,188) -52% 8,709 75% Insurance Expense 1,443 1,439 1,440 4,323 3,560 763 21% 5,752 75% Maintenance Expense 1,330 1,239 1,248 3,817 6,749 (2,933) -43% 5,467 70% Fleet Maintenance 1,119 1,110 1,110 3,340 3,880 (540) -14% 4,442 75% Utilities Expense 558 1,437 1,171 3,166 2,406 761 32% 3,430 92% Special Programs 310 484 529 1,323 1,011 312 31% 2,846 46% Loan Principal & Interest 162 0 0 162 0 162 100% 2,216 7% Computer Software 798 922 336 2,055 1,362 693 51% 2,125 97% Materials and Supplies 345 492 341 1,179 1,166 13 1% 1,762 67% Improv., Furniture and Equip. 9 79 439 527 447 79 18% 1,599 33% Employee Develop. & Travel 170 265 297 732 668 65 10% 1,283 57% Other 486 2,666 1,041 4,192 4,967 (775) -16% 5,078 83%
Total Operating Expenses 34,877 46,557 38,232 119,667 126,041 (6,374) -5% 166,302 72% Amounts in Thousand USD
FY26 over
FY25
FY26 over
FY25 in %
A – Page 1062 of 1107
City Council Staff Report
May 27, 2026 -- Page 4
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast 3 rd Quarter expenses by category highlights are presented below:
• Salaries and Benefits are up by $1.9 million or 2.7% from FY25 YTD, due to scheduled salary increases with staff labor unions and higher premiums for workers’ compensation (+15%). Hiring of staff is limited to backfilling only key, business-critical positions.
• Contractual Services are up $0.3 million or 1.9% from FY25 YTD, largely due to price adjustment clauses for multiple-year contracts.
• Transfers to Other Funds are down by $7.2 million or 52% due to reduced transfers from General Fund to other funds per adopted budget (in FY26 only to Debt Service Fund; FY25 included Debt Service Fund, Fleet Services, and Facility Maintenance Fund).
• Insurance Expense is up $0.8 million or 21% from FY25 YTD, largely due to higher premiums for general and excess liability (+15%) and Property (+10%). • Utilities Expenses are up $0.7 million or 32% from FY25 YTD, largely due to higher expense allocation from the CoGen Facility (kw/h rate increase) to Public Works and Parks & Recreation.
3 rd Quarter expenses by department are presented below:
• Admin & Economic Development is up $0.6 million or 11% from FY25 YTD, largely due to increased program activity (e.g. Love Local Program, Palm Springs International Film Society, College of the Desert Foundation) in Economic Development per FY26 budget and higher legal cost.
• Parks & Recreation is up by $3.1 million or 52%, largely due to the addition of Park Maintenance in May 2025 and higher expenses in Recreation from increased cost for the CoGen electricity.
• Public Works is down $2.2 million or 23%, largely due to transfer of Park Maintenance to Park & Recs.
• Transfer to Other Funds is down $7.2 million or 52%, due to the discontinued transfers from General Fund to Fleet Maintenance Fund and Facility Maintenance Fund in the adopted budget for FY26. Only the Debt Service Fund continues to receive transfers from the General Fund.
All departments close the first half of the fiscal year around 75% and therefore reasonably within budget. Notable deviations from this trend are:
Development Services shows year over year in the first half of the fiscal year lower activity (FY26 YTD 58%, FY25 YTD 65%), largely due to contractual services. The second half of the year carries higher activity in contractual services mainly in Building & Safety, Planning, Homeless Programs, and Rent Control.
A – Page 1063 of 1107
City Council Staff Report
May 27, 2026 -- Page 5
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Misc. Expense closes mid-year at 86% of budget and is caused by the annual payment to the Bureau of Indian Affair due in December each year for the ground lease.
General Fund Non-Operating Income and Expenses
The General Fund Non-Operating are income or expenses from sources not related to the typical activities of the City, are generally not recurring, and are therefore considered separately. The activity for non-operating income and expenses is shown below in Table
3. TABLE 3
3 rd Quarter Non-Operating highlights are presented below:
• Grant Revenue is up $2.2 milllion from FY25 YTD, largely due to a payment for the construction of the Navigation Center HUD Grant ($2 million), the BSCC Organized Retail Theft Prevention Grant ($0.3 million), and the Cannabis Equity Grant ($0.3 million).
• Grant Expense is up $0.3 million from FY25 YTD, largely due to expenses for the Encampment Resolution Funding ($1.2 million), and Cannabis Equity Grant ($0.3 million), offset by lower grant expenses for Navigation Center (-$0.6 million) and BSCC Organized Retail Theft Prevention (-$0.3 million)
• Council Set Aside is down $2.3 million, largely due to upcoming end of the program. The expenses accounted for in FY26 YTD are for the Rental Assistance Program ($504k), Utility Assistance Program ($27k), Neighborhood Partnership ($32k), and Housing Consulting Service ($58k).
As a reminder, the City Council approved approx. $24 million in set asides in the FY23 budget and unused set asides have been re-budgeted. The amount of set asides has been spent down to the remaining $2.9 million in the FY26 budget.
General Fund Full-Year FY26 Forecast
The General Fund is forecasted to close Fiscal Year 2025-26 with total operating revenues of $176.4 million. This is up by $3.3 million or 2% compared to the revised budget FY26. Compared to FY25 this is down by $7.9 million or 4%, largerly due to discontinued transfers from other funds in FY26.
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Adopt.Budget %
Grant Revenue 2,274 556 115 2,945 750 2,195 293% 11,819 25% Grant Expense (1,000) (2,550) (1,493) (5,044) (4,729) (314) 7% (11,819) 43% Council Set Aside Expense (503) (80) (38) (621) (2,903) 2,282 -79% (2,900) 21% Total Non-Operating 770 (2,074) (1,417) (2,721) (6,883) 4,162 -60% (2,900) 94% Total Surplus/(Deficit) (20,712) (5,765) 10,459 (16,018) (30,912) 14,894 -48% 3,901 382% Amounts in Thousand USD
Non-Operating
Revenue / Expenses
FY26 over
FY25
FY26 over
FY25 in %
A – Page 1064 of 1107
City Council Staff Report
May 27, 2026 -- Page 6
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Total operating expenses of the General Fund are forecasted to close FY26 with $165.5 million. This is down by $0.8 million or 0.5% compared to revised budget FY26. Compared to FY25 this is down by $15.9 milllion or 8.8%, largerly due to lower transfers to other funds (-$12.7 million).
Accordingly, the forecasted operating surplus is projected to be up by $4.1 million or 61% of the revised budget, for a total of $10.9 million. The incease is largely due to better than expected revenues.
Total surplus, after non-operating expenses, is projected to be up by $6.3 million, for a total of $10.2 million.
While the City is expecting a significant surplus in FY26, staff is aware of several upcoming expenses that will need to be added to future budgets:
1. Martha’s Village and Kitchen contract to operate the Navigation Center has largely been funded through state grants. The grant funds run out at the end of FY26 and in FY27, the City has added $4 million to the budget already to continue to fund the operations of the Center.
2. Salary and Benefits will increase $5 to $6 million each year through negotiated MOU’s and normal step increases.
3. The Risk Management fund currently has a negative fund balance and needs to be replenished. Typically, the City would like to have the fund balance near $4 - $5 million to fund any legal settlements.
4. The City discontinued funding deferred maintenance of facilities and departmental vehicle purchases due to large fund balances in those respective internal service funds. In the next two year budget, the City anticipates funding to resume by as much as $3 million per year in each fund.
A – Page 1065 of 1107
City Council Staff Report
May 27, 2026 -- Page 7
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Table 4 below provides a summary of forecasted revenues and expenses of the General Fund:
TABLE 4
General Fund Forecast Highlights
Revenue
• Transient Occupancy Tax is forecasted to be at $50.6 milion. This is up $1.5 million or 3% from the revised budget. Compared to FY25 this is down $0.5 million or 1%. • Property Tax is forecasted to end FY26 to be at $38.8 million. This is up $0.5 million FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Transient Occupancy Tax 3,582 10,845 14,592 21,564 50,583 49,106 103% 51,062 99% Property Taxes 68 13,355 9,639 15,698 38,760 38,261 101% 37,558 103% Sales and Use Taxes 2,201 6,825 8,443 13,444 30,913 29,839 104% 30,578 101% Permits, Fines, and Fees 3,157 4,193 4,750 4,298 16,398 16,178 101% 16,021 102% Utility Users Tax 1,888 3,006 2,619 3,320 10,834 10,905 99% 11,234 96% Motor Vehicle In-Lieu Tax 0 68 4,128 3,937 8,132 8,061 101% 7,904 103% Other Taxes 110 214 2,949 3,959 7,231 6,998 103% 7,346 98% Miscellaneous Income (803) 2,681 1,210 1,409 4,497 4,521 99% 7,211 62% Franchise Tax 395 607 594 2,865 4,462 4,363 102% 4,318 103% Interest Income 964 813 807 1,028 3,611 3,833 94% 4,688 77% Cannabis Tax 141 260 377 205 983 1,038 95% 1,363 72%
Transfers From Other Funds 0 0 0 0 0 0 - 5,000 -100%
Total Revenue 11,704 42,866 50,108 71,726 176,404 173,103 102% 184,284 96% FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Admin & Economic Development 1,727 2,898 1,900 2,632 9,157 8,653 106% 9,629 95% Development Services 3,435 3,681 3,746 6,985 17,847 18,620 96% 15,443 116% Fire Department 6,709 8,144 6,736 8,474 30,062 29,362 102% 29,491 102% General Government 4,495 5,971 4,457 6,325 21,248 21,237 100% 21,924 97% Library 712 922 748 908 3,290 3,291 100% 3,337 99%
Miscellaneous Expense 0 1,755 0 276 2,031 2,031 100% 1,976 103% Parks and Recreation 2,128 3,891 3,003 2,749 11,772 11,666 101% 8,577 137% Police Department 9,970 11,788 10,525 11,550 43,834 43,843 100% 47,806 92% Public Works 1,686 3,005 2,936 3,111 10,738 10,743 100% 13,773 78% Tourism and Community Support 1,838 2,325 2,004 1,978 8,145 8,148 100% 9,364 87% Transfers to Other Funds 2,177 2,177 2,177 829 7,361 8,709 85% 20,060 37% Total Operating Expenses 34,877 46,557 38,232 45,817 165,484 166,302 100% 181,381 91% Operating Surplus/(Deficit) (23,173) (3,691) 11,876 25,908 10,920 6,801 161% 2,904 376% 2026 2026 FY26 2026 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Grant Revenue 2,274 556 115 8,875 11,819 11,819 100% 3,381 350% Grant Expense (1,000) (2,550) (1,493) (6,775) (11,819) (11,819) 100% (7,349) 161% Other (Debt Service) 0 0 0 0 0 0 3,615 0%
Council Set Aside Expense (503) (80) (38) (67) (688) (2,900) 24% (1,312) 52% CalPERS Payment Safety Plan 0 0 0 0 0 0 (27,979) 0%
Total Non-Operating 770 (2,074) (1,417) 2,032 (688) (2,900) 24% (29,644) 2% Total Surplus/(Deficit) (22,403) (5,765) 10,459 27,940 10,231 3,901 262% (26,740) -38% Amounts in Thousand USD
FY26 over
FY25 in %
FY26 over
FY25 in %
Revenues
Operating Expenses FY26 over
FY25 in %
Non-Operating Revenue /
Expenses
A – Page 1066 of 1107
City Council Staff Report
May 27, 2026 -- Page 8
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast or 1% from the revised budget. Compared to FY25 this is up $1.2 million or 3%. FY26 is expected to continue to show increased tax revenue from growing assessment values of properties.
• Sales Tax is forecasted to end at $30.9 million at the end of the fiscal year. This is up $1 million or 4% from the revised budget. Compared to FY25 this is up by $0.3 million or 1%.
• Utility User Tax is projected to end at just over $10.8 million. This is $0.1 million or 1% below revised budget. Compared to FY25 this is down by $0.4 million or 4%.
Operating Expenses
• All departments are expected to stay reasonably within the budget for FY26. • Salaries and Benefits are forecasted at $99.6 million. This is over by $1.3 million or 1% of budget and compared to FY25 this is up $1.6 million or 1.5% from FY25. • The CalPERS expense for Police and Fire is forecasted to be over budget. The Police Department can offset this overspend with savings in overtime. • The City is on track to meet or exceed the vacancy savings of $4.2 million in FY26. • Tourism & Community Support is projected to close at budget with $8.1 million.
Compared to FY25 this is down $1.2 million or 13%, largely due to reduced operating budget FY26 for Convention Center and Bureau of Tourism (combined $0.5 million) and convention center utility expense increase of $0.5 million from SoCal Edison in FY25 for prior years missed charges.
• Contractual Services is projected at $23.8 million. This is over budget for FY26 by $0.5 million or 2% and is up $2.4 million or 11% compared to FY25. Increased legal expenses are causing the overspend.
TABLE 5
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Salaries & Benefits 22,031 27,935 23,189 26,485 99,640 98,340 101% 98,083 102% Contractual Services 3,938 6,311 4,914 8,617 23,781 23,254 102% 21,367 111% Transfers to Other Funds 2,177 2,177 2,177 829 7,361 8,709 85% 20,060 37% Insurance Expense 1,443 1,439 1,440 1,441 5,764 5,752 100% 4,746 121% Maintenance Expense 1,330 1,239 1,248 1,509 5,326 5,467 97% 8,998 59% Fleet Maintenance 1,119 1,110 1,110 1,113 4,453 4,442 100% 5,174 86% Utilities Expense 558 1,437 1,171 319 3,486 3,430 102% 4,050 86% Special Programs 310 484 529 1,566 2,889 2,846 102% 1,943 149% Loan Principal & Interest 162 0 0 2,054 2,216 2,216 100% 4,324 51% Computer Software 798 922 336 70 2,125 2,125 100% 1,039 205% Materials and Supplies 345 492 341 570 1,749 1,762 99% 1,957 89% Improv., Furniture and Equip. 9 79 439 1,069 1,596 1,599 100% 502 318% Employee Develop. & Travel 170 265 297 251 983 1,283 77% 908 108% Other 486 2,666 1,041 (76) 4,116 5,078 81% 8,231 50%
Total Operating Expenses 34,877 46,557 38,232 45,817 165,484 166,302 100% 181,381 91% Amounts in Thousand USD
Operating Expenses FY26 over
FY25 in %
A – Page 1067 of 1107
City Council Staff Report
May 27, 2026 -- Page 9
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast General Fund Non-Operating Revenue and Expenses Highlights Total Non-Operating is forecasted to close with expenses of $0.7 million from the council set aside program for Rental Assistance Program, Utility Assistance Program, Neighborhood Partnership, and Housing Consulting Service. It includes also one payment for Desert Highland. The anticipated four reimbursement payments to the developer are 2 months behind schedule and are therefore not included in the FY26 forecast. Grant Revenue and Grant Expenses are expected to offset each other, if no timing differences occur.
Fund Balance Development and Reconciliation for the General Fund The total fund balance of the General Fund is projected at $129.4 million at the end of FY26. This is up by $10.2 million compared to the beginning balance, as a result of the expected total surplus.
The upper part of Table 6 below depicts the development of the fund balance and the lower part of the the table reconciles the assigned and unassigned fund balances for FY25 and FY26.
TABLE 6
FY25 FY26
Actuals FCST
Fund Balance - General Fund
Beginning Fund Balance 145,927 119,187
Total Revenues 184,284 176,404
Total Expenses 181,381 165,484
Total Non-Operating (29,644) (688)
Total Surplus/(Deficit) (26,740) 10,231
Ending Fund Balance 119,187 129,418
Amounts in Thousand USD
Fund Balance Reconciliation
Assigned Fund Balances
Affordable Housing 9,007 12,007
CalPERS 18,271 19,271
Aviation Fuel Tax 1,339 1,587
Cannabis Program 66 86
Total Assigned Fund Balance 28,682 32,950
Unassigned Fund Balance
Minimum Fund Balance 32,934 31,519
Unreserved - Remaining 57,571 64,949
Total Unassigned Fund Balance 90,505 96,468
Total End of Year Fund Balance 119,187 129,418
Amounts in Thousand USD
A – Page 1068 of 1107
City Council Staff Report
May 27, 2026 -- Page 10
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast The unreserved portion of the fund balance is projected at the end of FY26 with $64.9 million. This is up $7.4 million or 13% and Table 7 depicts the details of this development.
TABLE 7
PALM SPRINGS INTERNATIONAL AIRPORT
The City of Palm Springs operates Palm Springs International Airport (PSP) as a vital transportation hub and economic driver for the region. Managed as an enterprise fund, the Airport functions as a self-sustaining business entity, ensuring that its financial activities remain independent from the City’s general fund. PSP's financial structure is organized into four key categories: Customer Facility Charge, Passenger Facility Charge, Airport Fund – Operations & Maintenance, and Airport Capital Projects, each supporting various aspects of the Airport’s infrastructure, operations, and long-term development initiatives.
Customer Facility Charge Fund
The Customer Facility Charge (CFC) revenue is collected by the car rental concessionaires and remitted to the Airport according to state law to support the future consolidated rental car facility project. Effective March 1, 2022, in accordance with the State of California as required in Section 50474, the collection methodology changed from $10.00 per rental car transaction to $9.00 per rental day (up to a maximum of five days).
The CFC funds are restricted and cannot be used for other purposes than improvement of rental car facilities.
FY26 FCST
Beginning Fund Balance Unreserved - Remaining 57,571
CalPERS Accrual FY26 (1,000)
Affordable Housing Accrual FY26 (3,000)
Change in Aviation Fuel Tax (248)
Net Change Cannabis Program (20)
Change in Min. Fund Balance 1,415
Total Surplus/(Deficit) 10,231
Ending Fund Balance Unreserved - Remaining 64,949
Amounts in Thousand USD
A – Page 1069 of 1107
City Council Staff Report
May 27, 2026 -- Page 11
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Customer Facility Charge Fund revenues and expenses are shown below in Table 8.
TABLE 8
Passenger Facility Charges Fund
The Passenger Facility Charge (PFC) revenue is comprised of a $4.50 charge (net $4.39 to the Airport after deduction of $0.11 for the airline-processing fee) paid by each ticketed passenger that boards an airplane at the Airport. Certain types of passengers, including military, are excluded from paying the Passenger Facility Charge.
The PFC funds are restricted and can only be used to fund FAA-approved projects that enhance safety, security, or capacity, reduce noise, or increase air carrier competition.
Passenger Facility Charge Fund revenues and expenses are shown below in Table 9.
TABLE 9
Airport Fund - Operations and Maintenance
Airport Revenue Highlights
The Palm Springs International Airport (PSP) ended the first three quarters of FY26 with a total revenue of $41.9 million. This is up by $5.2 million or 14% from FY25 YTD, largely due to higher airline revenue.
Total Airline Revenues are up 26% from FY25 YTD, due to higher Terminal Airline Space Revenues, largely due to increases in the per-use, terminal rental, and higher Gate Per Use Fees charged to the airline as of August 1, 2025.
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Rev. Budget %
Customer Facility Charge (CFC) Fund
CFC Revenue 467 1,778 2,790 5,035 4,557 478 10% 8,267 61% Other Revenue 568 529 649 1,746 1,233 513 42% 1,498 117% Total Revenue 1,035 2,307 3,439 6,780 5,790 990 17% 9,765 69% Operating Expenses 268 284 (457) 95 0 95 100% 2,101 5%
Total Expenses 268 284 (457) 95 0 95 100% 2,101 5%
Operating Surplus/(Deficit) 767 2,023 3,895 6,686 5,790 895 15% 7,664 87% Amounts in Thousand USD
FY26 over
FY25
FY26 over FY25
in %
2026 2026 FY26 2026 2025 2026 Achieved
Q1 Q2 Q3 Total YTD Total YTD Rev. Budget %
Passenger Facility Charge (CFC) Fund
PFC Revenue 795 1,192 2,630 4,617 4,074 543 13% 6,129 75% Other Revenue 204 205 204 612 554 59 11% 695 88%
Total Revenue 999 1,397 2,834 5,230 4,627 602 13% 6,824 77% Operating Expenses 3 264 0 267 306 (39) 100% 2,618 10%
Total Expenses 3 264 0 267 306 (39) 100% 2,618 10%
Operating Surplus/(Deficit) 996 1,133 2,834 4,963 4,321 642 15% 4,206 118% Amounts in Thousand USD
2026 vs
2025
FY26 over FY25
in %
A – Page 1070 of 1107
City Council Staff Report
May 27, 2026 -- Page 12
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Total Non-Airline Revenues are up 8% from FY25 YTD, largely due to higher Aeronautical Ground Rental and On Airport Rental Car Revenues.
Airport Expense Highlights
The Airport Fund ended the first three quarters of FY26 with total operating expenses of $34.9 million. This is up by $4.3 million or 14% from FY25 YTD, largely due to increased salaries & benefits and charges for the CoGen expenses for electricity and cooled water.
Airport salaries and benefits increased due to the addition of 16 positions; specifically including personnel in aviation security and landside operations departments, which were necessary to support operational growth, enhance regulatory compliance, and improve customer service.
Electricity and water cogeneration utilities (COGEN) expenses increased significantly in FY26 and are expected to remain elevated going forward.
Accordingly, the higher revenues compensate for the increased expenses and the total operating surplus for the first three quarters of FY26 ended at $7.0 million. This is up by $0.9 million or 14%.
A – Page 1071 of 1107
City Council Staff Report
May 27, 2026 -- Page 13
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Table 10 depicts the airport’s revenues and expenses for the first three quarters of FY26.
TABLE 10
Passenger activity during Q2 of FY26 was affected by multiple factors occurring at the same time. The federal government shutdown from October 1 through November 12, 2025 created operational disruptions across the national aviation system, leading to schedule adjustments, short-notice cancellations, and lower passenger loads.
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Rev. Budget %
Landing Fees 954 1,251 2,699 4,904 4,812 93 2% 6,995 70% Terminal Airline Space /Joint Use 2,817 1,549 2,516 6,882 5,056 1,825 36% 6,851 100% Gate Per Use Fees 434 508 1,097 2,040 1,615 425 26% 2,266 90% Passenger Loading Bridge Fees 124 167 387 679 340 339 100% 580 117% Baggage Handling System Fees 265 161 285 711 283 428 151% 574 124% Total Airline Revenues 4,594 3,636 6,984 15,215 12,105 3,110 26% 17,266 88% Amounts in Thousand USD
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Rev. Budget %
General Aviation 38 89 217 344 267 78 29% 527 65%
Non-Aeronautical Ground Rental 200 106 110 416 536 (120) -22% 671 62% Aeronautical Ground Rental 550 223 334 1,107 987 120 12% 1,372 81% Parking 1,777 1,288 2,129 5,195 4,682 513 11% 6,333 82% Airport Use Permits 12 50 66 129 100 29 29% 120 107%
Non-Airline Terminal Rent Fee 464 236 355 1,055 856 199 23% 1,045 101% Non-Airline Terminal Rent F&B 165 303 662 1,130 948 182 19% 1,769 64% Non-Airline Terminal Rent Retail 254 345 716 1,316 1,112 204 18% 2,395 55% Non-Airline Terminal Concessions 4 2 9 14 18 (3) -19% 22 65% Rental Car - Overflow Parking 8 22 114 143 218 (75) -34% 368 39% Advertising 154 148 224 526 591 (65) -11% 904 58%
On Airport Rental Car 3,921 2,358 4,011 10,290 9,481 809 9% 14,666 70% Commercial Services Fees 173 252 511 936 884 52 6% 1,386 68% Ground Transportation Fees 229 461 439 1,129 984 145 15% 2,148 53% Customs 14 111 213 337 278 59 21% 448 75%
All Other Revenues 778 800 1,027 2,606 2,661 (55) -2% 3,099 84% Total Non-Airline Revenues 8,740 6,795 11,138 26,673 24,602 2,071 8% 37,273 72% Total Revenue 13,334 10,431 18,123 41,888 36,707 5,181 14% 54,539 77% Amounts in Thousand USD
FY26 FY26 FY26 FY26 FY25 FY26 Achieved
Q1 Q2 Q3 Total YTD Total YTD Rev. Budget %
Emergency Disaster 0 0 0 0 22 (22) -100% 0 0%
Airport Administration 1,964 1,828 1,973 5,765 5,405 360 7% 12,355 47% Airport Information Technology 426 162 226 813 735 78 11% 1,837 44% Airport Law Enforcement 1,099 723 788 2,611 2,659 (48) -2% 3,939 66% Aviation Security 292 417 494 1,202 498 704 141% 2,558 47% Airside Operations 1,458 1,856 1,181 4,495 4,793 (298) -6% 6,679 67% Airport Rescue - Fire 1,703 1,287 1,153 4,144 3,706 438 12% 6,003 69% Landside Operations 692 801 867 2,359 2,038 321 16% 2,701 87% Grounds Maintenance 145 164 150 459 354 106 30% 1,009 46% Terminal Building Operations 1,531 4,103 2,669 8,303 5,861 2,442 42% 10,114 82% Passenger Boarding Bridges 17 23 6 47 16 30 187% 100 47% Baggage Handling System 80 346 281 707 451 257 57% 1,110 64% Control Center Operations 1,284 821 922 3,027 3,652 (624) -17% 4,674 65% U.S. Customs 68 77 102 248 230 18 8% 516 48%
Planning & Projects 203 309 221 733 163 570 350% 2,002 37% Total Operating Expenses 10,962 12,918 11,034 34,914 30,583 4,331 14% 55,597 63% Operating Surplus/(Deficit) 2,372 (2,487) 7,088 6,974 6,124 850 14% (1,058) -659% Budget Transfer Out 1,975 1,975 1,975 5,924 10,866 (4,942) -45% 7,898 75% Total Surplus/(Deficit) 398 (4,461) 5,114 1,050 (4,742) 5,792 -122% (8,956) -12% Amounts in Thousand USD
Airline Revenues
Non-Airline Revenues FY26 over
FY25
FY26 over FY25
in %
Operating Expenses FY26 over
FY25
FY26 over FY25
in %
FY26 over
FY25
FY26 over FY25
in %
A – Page 1072 of 1107
City Council Staff Report
May 27, 2026 -- Page 14
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast In addition to the shutdown, three airlines did not return for the seasonal service period, further reducing available seats in the market. Flair concluded service on April 6, 2025 and Avelo on June 7, 2025, and Frontier discontinued service on November 29, 2025.
The combined effect of reduced airline service and temporary nationwide operational constraints resulted in fewer available flights and lower passenger totals during the fall months, particularly in October, November and December compared to the prior year.
Table 11 below depicts the total passenger traffic for the first three quarters of FY26 compared to FY25.
TABLE 11
Airport Full-Year FY26 Forecast
Customer Facility Charge Fund
TABLE 12
Forecast Highlights
• The Customer Facility Charges are forecasted to be at $8.7 million. This is up $0.5 million or 6% from the revised budget. Compared to FY25, this is down $0.4 million or 4%.
• Other Revenue is largely interest income and is forecasted to be $2.2 million, an increase of 35% from FY25 based on the trend of the first three quarters of FY26.
FY26 FY25 % Change
July 125,080 112,705 11.0%
August 122,167 118,083 3.5%
September 152,773 142,688 7.1%
October 257,985 258,652 -0.3%
November 305,185 307,519 -0.8%
December 313,483 338,505 -7.4%
January 330,661 354,786 -6.8%
February 391,601 386,997 1.2%
March 485,098 493,450 -1.7%
Total 2,484,033 2,513,385 -1.2%
TOTAL PASSENGERS
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
CFC Revenue 467 1,778 2,790 3,702 8,736 8,267 106% 9,109 96% Other Revenue 568 529 649 505 2,251 1,498 150% 1,664 135% Total Revenue 1,035 2,307 3,439 4,207 10,987 9,765 113% 10,773 102% Operating Expenses 268 284 (457) 327 422 2,101 20% 761 55% Total Expenses 268 284 (457) 327 422 2,101 20% 761 55%
Operating Surplus/(Deficit) 767 2,023 3,895 3,880 10,565 7,664 138% 10,012 95% Amounts in Thousand USD
FY26 over FY25 in
%
Customer Facility Charge (CFC) Fund
A – Page 1073 of 1107
City Council Staff Report
May 27, 2026 -- Page 15
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast • Operating expenses are forecasted to be $0.4 million to be used for consultants’ expense for the planning of the location of the future rental car facility.
Passenger Facility Charges Fund
TABLE 13
Highlights
• Passenger Facility Charges are forecasted to be at $6.0 million. This is down $0.1 million or 1% from the revised budget. Compared to FY25, this is down 0.3 million or 4%.
• Other Revenue is largely interest income and is forecasted to be $0.8 million, an increase of 8% from FY25 based on the trend of the first three quarters of FY26. • Operating Expenses are largely principal and interest expense for the 2019 Airport Passenger Facility Bonds (Budget includes principal of $1.9 million).
Airport Fund – Operations and Maintenance
Table 14 on the next page depicts the airport revenues and expenses forecast for FY26.
This forecast table shows the airline revenue settlement now as a contra revenue account as part of the airline revenue section. The budget FY26 and actuals FY25 are updated accordingly.
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
PFC Revenue 795 1,192 2,630 1,424 6,042 6,129 99% 6,299 96% Other Revenue 204 205 204 203 815 695 117% 758 108%
Total Revenue 999 1,397 2,834 1,627 6,857 6,824 100% 7,058 97% Operating Expenses 3 264 0 320 587 2,618 22% 460 128%
Total Expenses 3 264 0 320 587 2,618 22% 460 128%
Operating Surplus/(Deficit) 996 1,133 2,834 1,307 6,269 4,206 149% 6,597 95% Amounts in Thousand USD
FY26 over FY25 in
%
Passenger Facility Charge (PFC) Fund
A – Page 1074 of 1107
City Council Staff Report
May 27, 2026 -- Page 16
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast TABLE 14
Airport Budgetary Highlights
The Airport expects the projected revenues to end FY26 at $58 million, which is an increase of 14% compared to FY25. Compared to budget, total revenue is up $6 million or 12%.
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Landing Fees 954 1,251 2,699 2,988 7,892 6,995 113% 7,937 99% Terminal Airline Space /Joint Use 2,817 1,549 2,516 2,830 9,712 6,851 142% 6,975 139% Gate Per Use Fees 434 508 1,097 1,254 3,293 2,266 145% 2,654 124% Passenger Loading Bridge Fees 124 167 387 423 1,102 580 190% 560 197% Baggage Handling System Fees 265 161 285 358 1,069 574 186% 421 254% Airline Settlement - Revenue Sharing 0 0 0 (2,159) (2,159) (2,572) 84% (4,559) 47% Total Airline Revenues 4,594 3,636 6,984 5,694 20,909 14,693 142% 13,987 149% Amounts in Thousand USD
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
General Aviation 38 89 217 230 575 527 109% 445 129%
Non-Aeronautical Ground Rental 200 106 110 201 617 671 92% 795 78% Aeronautical Ground Rental 550 223 334 246 1,353 1,372 99% 1,206 112% Parking 1,777 1,288 2,129 1,957 7,152 6,333 113% 6,238 115% Airport Use Permits 12 50 66 26 155 120 129% 120 129%
Non-Airline Terminal Rent Fee 464 236 355 741 1,796 1,045 172% 1,808 99% Non-Airline Terminal Rent F&B 165 303 662 396 1,526 1,769 86% 1,282 119% Non-Airline Terminal Rent Retail 254 345 716 905 2,221 2,395 93% 1,561 142% Non-Airline Terminal Concessions 4 2 9 4 18 22 84% 23 81% Rental Car - Overflow Parking 8 22 114 43 186 368 51% 284 66% Advertising 154 148 224 310 836 904 92% 899 93%
On Airport Rental Car 3,921 2,358 4,011 2,780 13,070 14,666 89% 11,763 111% Commercial Services Fees 173 252 511 542 1,478 1,386 107% 1,396 106% Ground Transportation Fees 229 461 439 870 1,998 2,148 93% 1,706 117% Customs 14 111 213 197 534 448 119% 440 121%
All Other Revenues 778 800 1,027 1,015 3,621 3,099 117% 5,062 72% Total Non-Airline Revenues 8,740 6,795 11,138 10,463 37,135 37,273 100% 35,028 106% Total Revenue 13,334 10,431 18,123 16,157 58,044 51,967 112% 49,015 118% Amounts in Thousand USD
FY26 FY26 FY26 FY26 FY26 FY26 Achieved FY25
Q1 Q2 Q3 Q4F FCST Rev. Budget % Actuals
Emergency Disaster 0 0 0 0 0 0 0% 26 0%
Airport Administration 1,964 1,828 1,973 3,171 8,936 9,783 91% 8,921 100% Airport Information Technology 426 162 226 659 1,472 1,837 80% 846 174% Airport Law Enforcement 1,099 723 788 1,073 3,683 3,939 94% 2,856 129% Aviation Security 292 417 494 1,118 2,321 2,558 91% 848 274% Airside Operations 1,458 1,856 1,181 2,633 7,128 6,679 107% 5,476 130% Airport Rescue - Fire 1,703 1,287 1,153 2,112 6,256 6,003 104% 4,650 135% Landside Operations 692 801 867 1,154 3,514 2,701 130% 2,977 118% Grounds Maintenance 145 164 150 533 992 1,009 98% 552 180% Terminal Building Operations 1,531 4,103 2,669 2,118 10,421 10,114 103% 8,932 117% Passenger Boarding Bridges 17 23 6 39 86 100 86% 36 240% Baggage Handling System 80 346 281 374 1,081 1,110 97% 914 118% Control Center Operations 1,284 821 922 1,093 4,121 4,674 88% 4,175 99% U.S. Customs 68 77 102 73 321 516 62% 289 111%
Planning & Projects 203 309 221 184 917 2,002 46% 227 403% Total Operating Expenses 10,962 12,918 11,034 16,335 51,249 53,025 97% 41,726 123% Operating Surplus/(Deficit) 2,372 (2,487) 7,088 (178) 6,796 (1,058) -642% 7,289 93% Budget Transfer Out 1,975 1,975 1,975 1,975 7,898 7,898 100% 10,866 73% Total Surplus/(Deficit) 398 (4,461) 5,114 (2,153) (1,103) (8,956) 12% (3,577) 31% Amounts in Thousand USD
FY26 over FY25 in Airline Revenues %
Non-Airline Revenues FY26 over FY25 in
%
Operating Expenses FY26 over FY25 in
%
A – Page 1075 of 1107
City Council Staff Report
May 27, 2026 -- Page 17
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Revenue Highlights
Airline Revenue Forecast is up 49% from FY25, due to higher Terminal Airline Space Revenues, largely due to increases in the per-use, terminal rental, and higher Gate per Use Fees to the airline as of August 1, 2025.
Non-Airline Revenue Forecast is up 6% from FY25 YTD, largely due to higher Parking Revenue (max daily rate from $20 to $26) and On Airport Rental Car Revenues.
The Airport operates under a new Airport Use and Lease Agreement with the airlines, which stipulates that 50% of the net profits from the General Airport Operations Fund are shared between the Airport and the Signatory Airlines. Based on current projections, the airport anticipates a settlement of approximately $2.2 million with the Signatory Airlines at the end of FY26.
Expense Highlights
• Airport Administration is projected to close at $8.9 million. This is down $0.8 million or 9% from budget.
• Airside Operations is projected to close at $7.1 million. This is up $0.5 million or 7% from revised budget largely due to higher expenses for rubber removal and crack sealing on parking aprons and main runway.
• Landside Operations is projected to close at $3.5 million. This is up $0.8 million or 30% from revised budget, largely due to higher expenses for parking management from ABM Aviation Inc. and higher credit card fees from airport parking.
• Terminal Building Operations is projected to close at $10.4 million. This is up $0.3 million or 3% from revised budget, largely due to COGEN expenses for electricity and cooled water. These higher charges cannot be offset entirely by contractual services underspend due to lower-than-expected escalator and elevator repair & general building maintenance, as well as the underspend of materials and supplies.
CAPITAL UPDATE
The City’s Capital funds facilitate the funding of critical projects that both increase the quality of life for the residents and ensure for the critical safety of City infrastructure as well as ensuring the public can carry out their day-to-day functions throughout.
The City is fortunate to have several special revenue funds which raise funds to be used on capital projects for a variety of purposes. The deployment of these resources has assisted City Staff in making great strides in improving the parks as well as the roadways throughout the City and will continue to do so for the foreseeable future.
There are seven (7) funds that make up the main funding sources for the 5-year capital improvement project plan managed by the City Engineering Department. A description of
A – Page 1076 of 1107
City Council Staff Report
May 27, 2026 -- Page 18
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast each fund is below, as well as for the Airport Capital Projects Fund.
Capital Fund – This fund is used for many different capital projects with a focus on streets and bridges. The revenue received is largely from Caltrans as it funds almost 90% of all major road and bridge projects. Additional revenue is federal revenue that supports the Highway Safety Improvement Program (HSIP) and the various cycles. HSIP funds are used for prevention of traffic fatalities and serious injuries focusing on safety improvements, such as improved intersections, pedestrian crossings, and traffic signal upgrades.
Measure J – Measure J is a 1% local sales tax that generates approximately $22 million annually. The tax is a general tax and can be used for anything, however, the focus of the Measure J Commissions has been to use these funds largely for infrastructure capital projects within the City. The Commission for Measure J is made up of 9 voting members and 2 alternates. The Commission will recommend projects for the dollars to be used in the bi-annual budget that is ultimately approved by the City Council.
Road Maintenance and Rehabilitation Fund (RMRA) – This special revenue fund accounts for revenue received through the SB1 RMRA known as the new Gas Tax. It is apportioned to eligible cities and counties by formula to be used for road maintenance, rehabilitation, and critical safety projects.
Gas Tax – The funds received are also restricted to street construction and improvements. The revenue comes from the annually escalating tax on every gallon of gas, is deposited in the state’s Highway Users Tax, and distributed monthly to cities and counties.
Measure A – The local measure was initiated by Riverside County in 1988 and renewed in 2009. The renewal in 2009 extended the measure to sunset in 2039. This measure is a 0.5% sales tax restricted for transportation projects. Revenue received from this tax is approximately $5.5 million annually. Measure A is also the recipient of funds received by the Coachella Valley Association of Governments (CVAG). CVAG will contribute 7.5% of the project cost for approved road and bridge projects.
Drainage Fund – The revenue from this fund is used to support improvements to the underground storm drain lines such as levees, surface retention basins and open channels. This will provide flood control for the City. The City adopted a schedule of drainage fees that are collected as an impact fee on new development whenever vacant land will be improved, and thus generating increased stormwater run-off. Annual revenue varies depending on new development.
Quimby Fund – This special revenue fund is a result of the City adopting the Quimby Fee in accordance with the Quimby Act approved by the State of California. The fee is collected on all residential development in-lieu of dedicated parks and recreation land within the development. Revenue is collected as building permits are issued and will vary
A – Page 1077 of 1107
City Council Staff Report
May 27, 2026 -- Page 19
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast based on development.
Airport Capital Projects Fund – This fund is for the Airport’s various capital projects. for critical improvements that address federal security requirements, airfield safety, environmental remediation, terminal upgrades, and development.
Several notable projects funded by these resources are shown on the following four pages. These listed projects show the total budget allocated and the actual amount spent as of December 2026 for each project (Project To Date Spend).
Project Description
Measure J
21-16 Demuth Dog Park
Upgrades: Construction of a new, permanent large & small dog park (including ADA parking and shade structures, paved parking lot, new restroom building, new lighting, concession buildings, drinking fountains, outdoor bleachers, playground, railings, tables and benches)
18-06 Victoria Restrooms
Construction of a new restroom that includes mechanical, electrical, plumbing, and general trades, as well as utility connections, landscaping, hardscaping, demolition of the old restroom, commissioning, and maintenance period.
22-26 San Rafael Drive Turf Conversion
Community Initiated Project applications: remove turf and convert to desert landscape to encourage the conservation of water resources.
15-07 Downtown Park Project - Splash Pad
Splash pad renovation, including mechanical work.
Palm Springs Convention Center Design
Remodeling: Expansion & Urban Connectors.
New Fire Station #1 Design
Construct Fire Station including Administrative Offices, Emergency Operations Center and Training Tower - Fire Station # 1, located on Indian Canyon Drive, was built in 1957.
The fire station does not meet safety standards implemented in construction of new fire stations. The station cannot accommodate gender separation for sleeping and restroom accommodations. The station infrastructure is failing and will be very expensive to repair.
Mizell Center Solar Canopies
Solar solutions project to reduce the carbon footprint of its swim center, which might be the city’s largest consumer of fossil fuels for heating.
A – Page 1078 of 1107
City Council Staff Report
May 27, 2026 -- Page 20
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast New Palm Springs Stadium Deferred Maintenance
Critical upgrades to the historic venue, including in-field resurfacing, updated sprinkler installation, new outfield wall installation, sound system replacement, and batting cage enclosure.
Palm Canyon Theatre Maintenance Repairs
Engineering
01-11 Indian Union Pacific RR Bridge
Aims to solve the frequent road closures that have plagued the City for decades, widening of the bridge over the Union Pacific Railroad tracks will correspond with the 6-lane roadway constructed from Garnet Avenue to Interstate-10 with a railed pedestrian sidewalk to improve safety and accessibility.
08-25 Ramon Road Bridge
Widen 4-lane bridge to 6-lane bridge, necessary seismic retrofit (secure foundation) and scour countermeasures (armoring).
12-02 S Palm Canyon Tahquitz Creek Bridge
Replace four-lane bridge with a new, wider four-lane bridge and sidewalks for pedestrians and bicyclists.
12-04 EPC Palm Canyon Wash Bridge
Bridge rehabilitation project, to widen four-lane bridge to add shoulders and sidewalks. 16-08 Main Library Renovations
The Palm Springs Public Library, at 300 S. Sunrise Way, opened in 1975. In need of upgrades, the City applied for and was awarded $6.5 million in matching grant funds by the California State Library Grant Program for the Palm Springs Public Library Renovation Project. The grant funds and matching Measure J funding will provide maintenance and infrastructure updates to the aging building.
25-06 New Swim Center
Aims to solve major accessibility issues by improving ADA-access throughout the facility while adding desperately needed shade structures over locker rooms and bathroom facilities and creation of two new all-gender restrooms/changing rooms. 18-14 Gene Autry Wind Wall
Designed to curb blowing sand, improve visibility and minimize road closures on North Gene Autry Trail.
22-24 Pickleball Courts
12 new Pickleball Courts requested through Measure J community initiated projects outreach.
A – Page 1079 of 1107
City Council Staff Report
May 27, 2026 -- Page 21
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast 25-09 New WWTP Scada Improvements
The present Supervisory Control & Data Acquisition (SCADA) system programming needs to be updated, an evaluation of the current SCADA system at the Wastewater Treatment Plant (WWTP) is set to be prepared to provide the City the next steps to improve the existing system.
25-10 New WWTP Upgrade Lift Stations
As part of the City’s Sewer Master Plan Update the electrical, structural, SCADA, meter and flow upgrades are needed at various (4) existing lift stations. 25-11 New WWTP Digester No. 1 Replacement
Demolish existing Digester No. 1 and replace it with a new covered concrete structure that is compliant with current seismic and building codes (ex. electrical and piping upgrades). It will connect to the new membrane gas holder located at WWTP 4375 E.
Mesquite Ave, Palm Springs, CA 92264.
Deferred Maintenance
PW26-03 City Hall Large Conference Room Upgrade
Renovation of the Conference Room.
PW26-06 Muni Plant - Upgrade Switch Gear
Upgrading of Switchgear to increase efficiency, safety, and allow for automatic transferring.
PW26-13 Police Department Lobby Ballistic Doors
Replacement of failing ballistic doors in the PD lobby.
PW26-23 City Hall Lobby Renovation
Renovation and reconfiguring of the City Hall lobby, to include the Finance and Clerk's areas to improve safety, flow, and aesthetics.
PW26-08 Pavilion Restrooms & Ceiling Remediation Repair Renovation of the Pavilion to include new ceiling, walls, lighting, HVAC, I.T. upgrades, all new windows & doors, restroom updates, and refinishing of wood floor. Exterior walkway repairs, updated signage, and tree plantings in the area.
PW26-05 Playground Equipment Replacement (Desert Highland Park) Themed playground replacement - the playground will include slides, swings, musical equipment, interactive panels and features for children with special needs, including transfer stations for wheelchair users and communication panels for nonverbal children.
The structure will also feature custom palm tree toppers created specifically for Palm Springs.
A – Page 1080 of 1107
City Council Staff Report
May 27, 2026 -- Page 22
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast PW26-09 CVEP Roof Replacement
Replaced old failing roof.
PW26-44 Firearms Training Facility
Full Renovation of old Firing Range and installation of new equipment.
PW26-57 Belardo/Baristo Parking Structure Safety Study
Safety and aesthetic improvements of Baristo & Belardo parking structures.
PW26-10 Realtime Crime Center Buildout Prep
Construction and Installation of 3 old Police Department office areas, converting to a fully functional Real Time Crime Center.
PWF26-1 Fire Pumper Apparatus – Pierce
Ordered two new Fire Pumper Apparatus.
Airport
Baggage Handling In-Line System
Project is intended to replace the existing outbound baggage handling system with a new system to improve capacity, enhance baggage tracking through additional technology, reduce or eliminate single points of failure.
Runway 31L Repair Alternatives Analysis
This project will identify potential solutions to the airport's main runway 13R-31L against operational, financial, safety, constructability, and engineering criteria. The final project outcome will be a consensus-driven recommendation for addressing overloading of the runway.
Escalator In-Truss Modification
Project will replace escalators leading to the Sonny Bono concourse to reduce noise and improve operational uptime.
Renovate Terminal Restrooms – Design
Project is to design Bono Concourse and the courtyard restrooms to meet the growing passenger capacity and utilizing sustainable, latest technology design elements.
Construct Taxi & TNC Shade Structures - Preliminary Design Studies Project is to install new shade structure at the TNC waiting area and staging areas.
Funded by Measure J funds.
A – Page 1081 of 1107
City Council Staff Report
May 27, 2026 -- Page 23
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Parking Access & Revenue Control System
Project to implement an integrated prebooking/reservation platform, scope includes installation of a new PARCS utilizing a license plate recognition system at the entrances and exits of the airport parking.
Integrated Design Standards & Guidelines
Design standards and guidelines aim to establish a cohesive framework and provide strategic principles and practical standards to all design interventions at the airport.
Procure (8) Eight Battery Electric Pick-up Trucks
Purchase of 8 EV trucks to replace existing gas operated airport vehicles. This project is funded by FAA ZEV grant.
Lot-B (80) Electric Chargers Installation
Project to install 80 Level I-II EV charging stations at the airport. This project is in partnership with SCE's Charge Ready program.
Hangar 18 Outfall Repair
Project to repair damaged stormwater outfalls and damaged pavement due to Hurricane Hillary.
A – Page 1082 of 1107
City Council Staff Report
May 27, 2026 -- Page 24
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Project Description
Budget
Through
FY2025
FY2026
Budget
Total
Budget
Project to
Date Spend
%
Complete Fund Sources
21-16 Demuth Dog Park 3,213,131 5,045,828 8,258,959 78,838 1% Measure J, Quimby & Capital
18-06 Victoria Rthhrdy Restrooms 1,562,345 - 1,562,345 - 0% Measure J 22-26 San Rafael Drive Turf Conversion 137,820 242,600 380,420 44,036 12% Measure J 15-07 Downtown Park Project - Splash Pad 714,925 - 714,925 521,913 73% Measure J New Convention Center Design - 4,455,000 4,455,000 42,888 1% Measure J New Fire Station #1 Design - 3,000,000 3,000,000 - 0% Measure J Mizell Center Solar Canopies 500,000 - 500,000 125,000 25% Measure J Palm Springs Stadium Deferred
Maintenance
841,000 - 841,000 - 0% Measure J
Palm Canyon Theatre Maintenance
Repairs
270,365 80,316 350,681 - 0% Measure J
Total 7,239,586 12,823,744 20,063,330 812,675 4%
EXECUTIVE SUMMARY
Measure J
Capital Projects - FY 25-26 YTD March
(Unaudited numbers and subject to change)
Status
Under Construction - Award $8.2M
RFP Issued
100% design to be complete by Jan 1st
Completed
Architect Contract Awarded - Kick off
meeting in January
Looking for the best Site Location
Agreement signed - 1st check issued
Scope review and preliminary discussion in
January
Door, window replacement and repair,
pending order
10,536
4,455
1,692
3,000
380 601
43 125 - 44
-
2,000
4,000
6,000
8,000
10,000
12,000
Parks & Recreation Citywide & Cogen Community Initiated Projects Fire Station Roads, Maintenance & Traffic Measure J Project by Category
(in $ thousands)
Budget to Date Project to Date Spend
A – Page 1083 of 1107
City Council Staff Report
May 27, 2026 -- Page 25
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Project Description
Budget
Through
FY2025
FY2026
Budget
Total
Budget
Project to
Date Spend
%
Complete Fund Sources
01-11 Indian Union Pacific RR Bridge 59,784,356 500,000 60,284,356 27,074,836 45% Capital/Measure A/WWTP
08-25 Ramon Road Bridge 33,348,036 10,500,000 43,848,036 1,786,337 4% Capital/Measure A 12-02 S Palm Canyon Tahquitz Creek Bridge 14,888,386 200,000 15,088,386 6,323,060 42% Capital/Measure A 12-04 EPC Palm Canyon Wash Bridge 9,813,936 2,150,000 11,963,936 532,868 4% Capital/Measure A 16-08 Main Library Renovations 15,120,100 27,479,685 42,599,785 9,316,226 22% Capital/Measure J/Bond
25-06 New Swim Center - 7,000,000 7,000,000 206,361 3% Measure J/Bond 18-14 Gene Autry Wind Wall 2,680,694 600,000 3,280,694 1,955,952 60% Capital/Measure A 22-24 Pickleball Courts 6,050,000 - 6,050,000 2,498,602 41% Quimby, Measure J 25-09 New WWTP Scada Improvements - 4,350,000 4,350,000 - 0% Wastewater Treatment Plant
25-10 New WWTP Upgrade Lift Stations - 5,800,000 5,800,000 - 0% Wastewater Treatment Plant
25-11 New WWTP Digester No. 1 Replacement - 7,250,000 7,250,000 - 0% Wastewater Treatment Plant
Total 141,685,509 65,829,685 207,515,194 49,694,241 24% Completed - below estimated cost
Contract awarded, under construction, exp.
completion 2027
Under design 2026, expected construction
to begin 2027
Completing Right of Way Phase, expect bid
mid 2026
Under Construction, expected completion
early 2027
Right of way Design 2026, construction in
early 2027
Under design 2026, expected construction
to begin 2027
Under design 2026, expected construction
to begin 2027
EXECUTIVE SUMMARY
Engineering Projects
Capital Projects - FY 25-26 YTD March
(Unaudited numbers and subject to change)
Contract awarded, under construction,
completion late 2027
In Design until early 2027, construction to
begin 2027 for 18 months.
Status
Under Construction, expected completion
late 2027
131,185
49,600
3,281 6,050
17,400
35,717
9,523
1,956 2,499
-
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Roads & Bridges Library & Swim Center Flood, Wind & Storm Control Parks & Recreation Wastewater Engineering Project by Category
(in $ thousands)
Budget to Date Project to Date Spend
A – Page 1084 of 1107
City Council Staff Report
May 27, 2026 -- Page 26
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Project Description
Budget
Through
FY2025
FY2026
Budget
Total
Budget
Project to
Date Spend
%
Complete Fund Sources
PW26-03
City Hall Large Conference Room
Upgrade 210,613 9,000 219,613 7,743 4% Measure J / Def.Maint.
PW26-06 Muni Plant - Upgrade Switch Gear - 1,000,000 1,000,000 285,986 29% Measure J / Def.Maint.
PW26-13 Police Department Lobby Ballistic Doors - 140,000 140,000 65,055 46% Measure J / Def.Maint.
PW26-23 City Hall Lobby Renovation - 80,000 80,000 - 0% Not started Measure J / Def.Maint.
PW26-08
Pavilion Restrooms & Ceiling
Remediation Repair - 150,000 150,000 - 0% Measure J / Def.Maint.
PW26-05
Playground Equipment Replacement
(Desert Highland Park) - 800,000 800,000 - 0% Measure J / Def.Maint.
PW26-09 CVEP Roof Replacement - 230,000 230,000 230,000 100% Measure J / Def.Maint.
PW26-44 Firearms Training Facility - 3,000,000 3,000,000 - 0% Measure J / Def.Maint.
PW26-57
Belardo/Baristo Parking Structure
Safety Study - 1,218,000 1,218,000 13,883 1% Deferred Maintenance PW26-10 Realtime Crime Center Buildout Prep - 230,000 230,000 234,015 102% Deferred Maintenance PWF26-1 Fire Pumper Apparatus - Pierce - 2,134,054 2,134,054 2,134,054 100% Measure J / CFD Total 210,613 8,991,054 9,201,668 2,970,736 32%
Status
Contract awarded
Purchase Order Issued, lead time TBD
Phase 1 complete; additional work
scheduled for spring
Completed
Scheduled to begin in January
EXECUTIVE SUMMARY
Deferred Maintenance
Completed
(Unaudited numbers and subject to change)
Repair recommendation in process
w/Structural Engineer
Completed
Completed
Capital Projects - FY 25-26 YTD March
Agreement in process, design phase
2,748
950
3,370
2,134
538
-
299
2,134
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Citywide & Cogen Parks & Recreation Police Vehicle
Deferred Maintenance Project by Category
(in $ thousands)
Budget to Date Actual Spend to Date
A – Page 1085 of 1107
City Council Staff Report
May 27, 2026 -- Page 27
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast Budget
Through
FY2025
FY2026
Budget
Total
Budget
Project to
Date Spend
%
Complete Status Fund Sources
93,569,359 - 93,569,359 3,148,936 3%
Construction/Mobilization has
started, General Contractor is
performing site/utilities
investigations
Grants: BHS $12m,
AIG $21m, AIP $8m,
TSA $25m
476,000 - 476,000 247,222 52%
On-Call Engineering firm is in
process of submitting a draft
analysis report to the airport
staff
CIP
4,918,000 - 4,918,000 - 0%
Project on-going, the escalators
are in production phase. CIP
2,020,000 - 2,020,000 1,167,591 58%
Project in progress, the 90%
design is complete and project
documents are in permit phase.
CIP
755,000 - 755,000 21,745 3%
Project on going, HSPB approved
concept design with
recommendations and the
project is in final design review
process.
Measure J
700,000 500,000 1,200,000 - 0%
Procurement for contractor is
complete, contract approval and
execution in process.
Improvement other
than Buildings
659,650 - 659,650 643,857 98%
Final draft of the Design
Standards is complete Contractual Services
559,125 500,000 1,059,125 474,776 45%
Trucks are delivered and
outfitted with radios and other
make-ready equipment
ZEV Grant $559,125
300,000 - 300,000 - 0%
Project in progress, The General
Contracor has been selected and
charger installation is expected
to begin mid-May 2026.
SCE will provide an
estimated rebate
$232,000 +
$199,102.92 Capital
Fund Balance
500,000 - 500,000 - 0%
Contract has been awarded for
outfall repair; currently in
process of relocating utlities at
the project site.
CIP
Total 104,457,134 1,000,000 105,457,134 5,704,127 5%
EXECUTIVE SUMMARY
Lot-B (80) Electric Chargers Installation
Hangar 18 Outfall Repair
Airport Projects
Capital Projects - FY 25-26 YTD March
(Unaudited numbers and subject to change)
Escalator In-Truss Modification
Renovate Terminal Restrooms - Design
Construct Taxi & TNC Shade Structures - Preliminary Design Studies
Parking Access & Revenue Control System
Integrated Design Standards & Guidelines
Description
Runway 31L Repair Alternatives Analysis
Procure (8) Eight Battery Electric Pick-up Trucks
Baggage Handling In-Line System
93,569
476
4,918
2,020 1,059 3,149 3,415
247 -
1,168 475 666
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
BHS Runway Escalator Restroom Electric Vehicles Other Projects Airport Project by Category
(in $ thousands)
Total Budget Project to Date Spend
A – Page 1086 of 1107
City Council Staff Report
May 27, 2026 -- Page 28
3 rd Quarter of Fiscal Year 2025-26 Budget Update and Forecast ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with City Council Strategic Plan Foundation of Financial and Organizational Well-Being.
FISCAL IMPACT:
This is an update item only.
REVIEWED BY:
Director of Finance: Kristopher J. Mooney
City Engineer: Joel Montalvo
Interim Executive Director of Aviation: Victoria Carpenter City Manager: Scott Stiles
ATTACHMENTS:
None.
A – Page 1087 of 1107
CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 BUSINESS & LEGISLATIVE
SUBJECT: INTRODUCTION OF AN ORDINANCE ENTITLED, “AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 2.45 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING THE HUMAN RIGHTS COMMISSION”
FROM: Scott C. Stiles, City Manager
BY: Jeremy Hammond, Deputy City Manager
SUMMARY:
The City of Palm Springs has adopted Chapter 2.45 of the Palm Springs Municipal Code to establish and define the actions of a Human Rights Commission. This report provides the City Council with the opportunity to review and consider adopting updates to this Chapter of the Municipal Code.
RECOMMENDATION:
Waive the reading of the ordinance text in its entirety and read by title only, and introduce on first reading Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 2.45 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING THE HUMAN RIGHTS COMMISSION”.
BACKGROUND:
This item was brought before the City Council on February 22, 2025, where the City Council provided additional feedback on the proposed ordinance and asked the Human Rights Commission to perform additional work on the revisions. The Commission spent substantial time working on the revisions including a presentation and working session with the City Attorney’s Office to better understand the interplay between domestic partnerships and marriage.
STAFF ANALYSIS:
These updated revisions presented to the City Council make reference to the landmark Supreme Court decision Obergefell v. Hodges that recognized that the fundamental right to marriage is guaranteed to same-sex couples. Noting the changing political landscape
B – Page 1088 of 1107
City Council Staff Report
May 27, 2026 -- Page 2
Human Rights Commission - Ordinance
that is hostile to that decision, the proposed revisions ensure that the domestic partnership benefits within the Code that were available through the City before the Obergefell decision will become operative should the right to same-sex marriage be overruled.
During Council’s prior review, an interest was expressed in language confirming the Commission’s work directly supporting the established priorities and goals of the City Council. Staff is currently working on a revision to Chapter 2.06 of the Municipal Code, Boards and Commissions – General Provisions, to include this language and its applicability to all Boards and Commissions, not just the Human Rights Commission.
Staff have worked with the City Attorney to prepare Attachment A, an ordinance to amend Section 2.45 of the City of Palm Springs Municipal Code.
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. According to Section 15378(b), a Project does not include: (5) Organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This action meets the City Council’s Strategic Plan Overarching Principle of Social Equity.
FISCAL IMPACT:
This action is not anticipated to have any significant fiscal impact.
REVIEWED BY:
Deputy City Manager: Jeremy Hammond
City Manager: Scott Stiles
ATTACHMENTS:
A. Proposed Ordinance to Revise Municipal Code Section 2.45 Human Rights Commission
B – Page 1089 of 1107
Attachment A
ORDINANCE
B – Page 1090 of 1107
Ordinance No. _____
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, TO ADOPT CHAPTER 2.45 “HUMAN RIGHTS
COMMISSION” TO TITLE 2 SUPERSEDING THE EXISTING
CHAPTER 2.45 “HUMAN RIGHTS COMMISSION” OF THE
PALM SPRINGS MUNICIPAL CODE
City Attorney’s Summary
This Ordinance will provide clarity and consistency to Chapter
2.45 of the City’s municipal code, repealing and replacing the current language with updated language to clarify the role of the City’s Human Rights Commission.
WHEREAS, the City of Palm Springs (“City”) adopted an ordinance to establish the Human Rights Commission in 1992; and
WHEREAS, since the establishment of the Human Rights Commission the City has been a national leader in protecting human rights; and WHEREAS, the City of Palm Springs recognizes that there are certain rights and privileges afforded to married couples that have historically been denied to same sex couples; and
WHEREAS, the City of Palm Springs desires to protect certain rights and benefits afforded to married couples should the right to same sex marriage be overturned; and WHEREAS, the City has adopted various ordinances updating Chapter 2.45 of the City’s municipal code to safeguard the right and opportunity of all persons to be free from all forms of discrimination as defined; and
WHEREAS, the City Council of the City of Palm Springs wishes to repeal and replace Chapter 2.45 of the City’s municipal code as attached for consistency and clarity purposes;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.45 of Title 2 entitled “Human Rights Commission” is hereby deleted in its entirety and replaced with Chapter 2.45 “Human Rights Commission” as evidenced in the attached Exhibit A.
SECTION 2. If any section, subsection, sentence, clause, or phrase of this
B – Page 1091 of 1107
Ordinance No. _____
ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 3. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, _________.
NAOMI SOTO
MAYOR
ATTEST:
BRENDA PREE, MMC
CITY CLERK
B – Page 1092 of 1107
Ordinance No. _____
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council held on __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
BRENDA PREE, MMC
CITY CLERK
B – Page 1093 of 1107
Exhibit A
B – Page 1094 of 1107
City of Palm Springs, CA
§ 2.45.010 § 2.45.020
55575.18110\44707972.1
CHAPTER 2.45
HUMAN RIGHTS COMMISSION
§ 2.45.005. Public Policy.
It is declared as the public policy of the City that it is necessary and appropriate to protect and safeguard the right and opportunity of all persons to be free from all forms of discrimination as that term is defined in this Chapter.
(Ord. 1578 § 1, 2000; Ord. 1920 § 2, 2017)
§ 2.45.010. Definitions.
For the purpose of this chapter:
"Commission" means the Palm Springs human rights commission. "Conciliation" means a voluntary process in which a neutral third party serves as an intermediary between the conflicting parties. The parties may or may not meet directly. "Discrimination" means the treatment of or distinction against a person based on the group, class or category to which that person belongs rather than on individual merit and contrary to federal, state or local law. Discrimination can include discrimination because of race, religion, color, ancestry, national origin, age, gender, sexual orientation, disability, medical condition, marital status, parental status, source of income, HIV status, or any other arbitrary factor. "Domestic partnership" means two adults who have chosen to share one another's lives in an intimate and committed relationship of mutual caring and refers to those persons who have registered as domestic partners pursuant to a valid and current statement of domestic partnership on file with the city under this Chapter 2.45 and where all of the following requirements are met:
(a) The partnership is between no more than two persons, each of whom is eighteen years old or older;
(b) The persons are not related by blood in a way which would prevent them from being married to each other in the state of California;
(c) The persons are not married or a member of another domestic partnership; (d) The persons have agreed to be jointly responsible for their common care, welfare and basic living expenses, in that each partner has agreed to provide for the other partner's basic living expenses if the partner is unable to provide for herself or himself; (e) Each of the persons is competent to enter into a contract or consent to the domestic partnership;
(f) Both persons' domiciles are in the city and they share a common residence, but this does not require that the legal right to possess the residence be in both names; (g) Neither person has officially declared to the city that he or she has a different domestic partner nor has previously made and concurrently maintained such declaration to any other jurisdiction; provided, that any such prior declaration has been terminated; and further provided, that this shall not bar any such concurrent declaration filed with the Secretary of State of California if such declaration is for the same partner at the Palm Springs domicile;
B – Page 1095 of 1107
City of Palm Springs, CA
§ 2.45.010 § 2.45.020
55575.18110\44707972.1
(h) The persons have been cohabitating for a period of at least six months; and (i) The persons will complete, sign under penalty of perjury and personally submit to the city clerk a statement of domestic partnership in the form prescribed under this Chapter
2.45. "Domicile" shall mean the one location the respective person considers to be his or her most settled and permanent location, the place where he or she intends to remain and to which, whenever he or she is absent, to which he or she has he intention of returning. "Mediation" means a voluntary dispute resolution process in which the parties in conflict meet with a neutral third party in an attempt to resolve the conflict or dispute in a manner that is satisfactory to the parties in conflict.
"National origin" shall mean place of origin, immigration status, cultural or linguistic characteristics, or ethnicity.
"Reasonable cause" means a threshold standard for the commission to initiate a conciliation or mediation process. The standard is met when the investigation of the alleged unfair or unlawful practice produces sufficient credible evidence that would cause a reasonable person of ordinary care and prudence to conclude that the unfair or unlawful practice occurred. "Source of income" means any source of funds obtained through lawful means, including, but not limited to, any form of government financial aid, alimony payments, or child support payments.
The same financial requirements must be applied to everyone regardless of the legal source of income. If a person's income and credit history would be considered sufficient if it were received as a salary, it must be considered sufficient from other sources as well. Nothing in this chapter or the provisions thereof shall be construed as prohibiting the conduct of a credit history review and the denial of a benefit or a privilege based thereon, so long as the credit review is conducted in a fair and nondiscriminatory manner.
"Unfair" means not fair or conforming to fundamental notions of justice, honesty, ethics or the like.
"Unlawful" means any policy or practice which constitutes illegal discrimination as defined in federal, state or local laws.
(Ord. 1426 § 2, 1992; Ord. 1578 §§ 2, 3, 2000; Ord. 1920 § 3, 2017) § 2.45.020. Scope.
This chapter applies to all discriminatory practices and resulting intergroup tensions specifically covered by the provisions of this chapter occurring within the territorial limits of the city or within any governmental agency or any other agency under the jurisdiction of the city. Nothing in this chapter, however, shall be interpreted or applied so as to create any power or duty in conflict with the preemptive effect of any federal or state law. Nor shall anything in this chapter be implemented in a way that overlaps already existing federal or state programs; rather, federal or state programs shall be utilized, or supplemented when necessary, appropriate, and feasible, to give effect to this chapter.
B – Page 1096 of 1107
City of Palm Springs, CA
§ 2.45.020 § 2.45.030
55575.18110\44707972.1
(Ord. 1426 § 2, 1992)
§ 2.45.030. Human rights commission created—Membership—Powers and duties. (a) Creation.
There is created within the city a human rights commission, consisting of nine members, appointed by the mayor with the approval of the city council, to serve at the pleasure of the city council. Subject to its unfettered legislative discretion, the council will attempt to ensure that sufficient funding and staff are provided to assist the commission in carrying out its duties and responsibilities, and to ensure that the commission reflects the social, ethnic and cultural diversity of the community.
(b) Term—Vacancies.
(1) Members of the commission shall be appointed or removed in accordance with and shall be subject to all of the provisions of Chapter 2.06 of the Palm Springs Municipal Code, as the chapter now reads, or as it may thereafter be amended from time to time.; provided, however, that of the nine members first appointed, two shall serve a term ending June 30, 1994; two shall serve a term ending June 30, 1995; three shall serve a term ending June 30, 1996; and two shall serve a term ending June 30, 1997. Such terms shall be drawn by lot at the first meeting of the commission following the appointment of the nine members.
(2) Notwithstanding the provisions of Chapter 2.06, members whose terms expire sooner then July 1, 1994, shall be eligible for reappointment to a succeeding full term. A vacancy in the commission shall not impair the right of the remaining members to exercise the powers of the commission pursuant to this chapter. (c) Powers and Duties of the Commission. Within the limitations provided by law, the human rights commission shall:
(1) Conduct programs designed to bring groups together to close gaps resulting from past discriminatory practices and to address proactively current or ongoing intergroup tensions;
(2) Mediate disagreements among individuals, groups and organizations which result from discriminatory practices within the scope of this chapter; (3) Process complaints which cannot be resolved through mediation as provided in the procedures which follow;
(4) Render a semiannual written report of its activities to the mayor and council. Such report shall include:
(A) Case histories of conciliation or mediation settlements made under this chapter, the disclosure of which, in the judgment of the commission, will further its objectives, (B) Recommendations to the mayor and council of additional actions, policies, procedures or legislation deemed by the commission to be necessary to carry out the purposes of this chapter;
B – Page 1097 of 1107
City of Palm Springs, CA
§ 2.45.130 § 2.45.160
55575.18110\44707972.1
(5) Maintain data on practices, activities, hate crimes, and other problems which are the subject of this chapter;
(6)(2) In addition to the other powers and duties set forth in this chapter, the commission shall have the power and duty to:
(A) Prepare and disseminate educational and informational material relating to prejudice and discrimination and recommended ways and means of eliminating such prejudice and discrimination,
(B) Furnish cooperation, information, guidance and technical assistance to other public agencies and private persons, organizations and institutions engaged in activities and programs intended to eliminate prejudice and discrimination, (C) Consult and maintain contact with human relations agencies, other public agencies, and local non-profit organizations representatives of employers, labor unions, property owners' associations, professional associations, national origin groups, community organizations concerned with interracial, interreligious and intercultural understanding, social welfare organizations, and such other private organizations and institutions as the commission shall deem advisable, to further the objectives of this chapter,
(D) Advise and make written recommendations to the mayor, city council and city manager concerning the development and implementation of programs and practices for the purpose of furthering the objectives of this chapter. Make recommendations to the City Council on priorities for development in the city’s efforts in human rights including social programs and issues facing older adults and other at-risk populations. If necessary, the commission and an agency, board or officer which the commission is assisting shall submit timely reports of progress in establishing and implementing such programs and practices as are from time to time requested by the mayor or council. The commission shall not have jurisdiction over matters within the authority of other city boards and commissions, except under specific direction from the city council,
(E) Investigate, and with the assent of the concerned parties, conciliate or mediate all incidents of discrimination within the scope of this chapter to the extent such functions are not within the responsibilities of the California Fair Employment Practices Commission or any federal, county, state, city or other established agency, and make specific and detailed recommendations to the interested parties as to the method of eliminating such discrimination,
(F)(E) Prepare, encourage and coordinate programs based on established laws, regulations, policies or goals to eliminate or reduce existing inequalities and disadvantages in the community resulting from past discriminatory practices, (G) Refer for appropriate action any matters not resolved through conciliation or mediation to the appropriate prosecutorial or regulatory entity pursuant to Section
2.45.040,
(H)(F) Request through the city manager information, services, facilities or any other assistance for the purpose of furthering the objectives of this chapter, (I)(G) Appoint subad-hoc and standing committees of members of the commission
B – Page 1098 of 1107
City of Palm Springs, CA
§ 2.45.130 § 2.45.160
55575.18110\44707972.1
as may be required to address specific human relations problems, and/or advisory committees of members drawn from various segments of the Palm Springs population, (H) Support and participate in activities which bring together various factions and viewpoints on emerging issues in a way that will help the community to resolve the issues which arise with change.
(I) Support at-risk and vulnerable community members, as identified by the California Department of Fair Employment and Housing, through recommended programs, policies and coordinated strategies.
(J) Promote citizen participation through an atmosphere that promotes amicable relations among all members of the community.
(Ord. 1426 § 2, 1992; Ord. 1428 § 1, 1992; Res. 20441 § 1, 2002) § 2.45.040. Referral and mediation of complaints.
(a) The commission shall prescribe a form on which a complaint may be lodged by any individual or entity that an unfair or unlawful practice of discrimination, as defined in Section
2.45.010 of this chapter, has occurred. Such complaint shall be filed with the commission under the penalty of perjury, and shall initiate the referral and/or mediation and conciliation powers of the commission.
(b) Upon receipt of a verified complaint, the commission shall conduct such preliminary investigation as is necessary to determine if the allegations thereof fall within the jurisdiction of any federal or state agency, commission or authority. Upon a determination that such federal or state jurisdiction exists, the commission shall refer the complaint to the appropriate state and/or federal agency, commission or authority, and provide notice of the receipt and referral of the complaint to the complainant and the individual or entity charged in the complaint.
(c) Upon receipt of a verified complaint, the commission shall notify both the complainant and the individual or entity charged in the complaint of the availability of the mediation or conciliation services of the commission. If all parties to the complaint agree to participate in voluntary mediation or conciliation, the commission shall then conduct such further investigation necessary to determine if reasonable cause exists to mediate or conciliate the complaint.
(d) If the commission determines that reasonable cause exists to mediate or conciliate the complaint, the commission shall notify the parties thereto, and the chair of the commission shall designate one or more commissioners to assist the parties in their efforts to mediate or conciliate the complaint.
(e) In undertaking to mediate or conciliate the complaint, the commissions(s) may convene meetings, conferences or such other discussions with the parties (collectively or separately) as is mutually agreed upon. The commissioner(s) shall not undertake a formal or evidentiary hearing or maintain a written record of the conciliation or mediation proceedings. It is the purpose of this chapter to provide an informal and nonconfrontational forum for the parties to mutually resolve the complaint. Such meetings, conferences or discussions as may be held or convened may, upon request of any party, be conducted privately with the public excluded therefrom except to the extent otherwise provided by law.
B – Page 1099 of 1107
City of Palm Springs, CA
§ 2.45.130 § 2.45.160
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(f) The commissioner(s) may assist the parties in discussing the facts in support of or in response to the complaint, may assist the parties in negotiating a mutual resolution to the complaint, may offer specific recommendations to the parties as to the disposition of the complaint, and may otherwise assist in the conciliation or mediation of the complaint as the parties shall mutually agree upon.
(g) If the commissioner(s) cannot assist the parties in resolving the complaint through conciliation or mediation, the commissioner(s) shall declare an impasse between the parties, which declaration shall terminate the services of the commission and its jurisdiction over the complaint. Thereafter, the commission may advise the complainant of such appropriate or available remedies as may exist to further pursue the allegations of the complaint. (h) All parties participating in the conciliation or mediation process retain such legal or constitutional rights, privileges and defense as otherwise exist in law. The participation of the commission in the conciliation or mediation of any complaint shall not be deemed to constitute a decision, finding of fact, judgment or order of the commission, nor shall any statement, recommendation or suggestion of the assigned commissioner(s) be binding upon or admissible in any court in any subsequent proceeding. (Ord. 1426 § 2, 1992)
§ 2.45.050. Individual remedies.
Nothing in this chapter or the provisions thereof shall be construed as granting or denying to an aggrieved individual or entity any additional right to pursue a civil action against any person, firm, partnership, association or corporation, or any agency, board or officer of the city, or any action allowed under state or federal law.
(Ord. 1426 § 2, 1992)
§ 2.45.060. Meetings.
(a) The commission shall be deemed an advisory body to the legislative body and thus be governed by all procedures of the Ralph M. Brown Act.
(b) The commission shall adopt appropriate meeting procedures so that meetings will be conducted in accordance with the Brown Act as frequently as necessary to carry out the purposes of this chapter, but no less than once a month. (c) If a member absents himself or herself without advance permission of the commission or the city council from three consecutive meetings or twenty-five percent of the duly scheduled meetings within any fiscal year, the chair shall file a certification with the city clerk that such absences have occurred, and his or her office shall thereupon automatically become vacant and shall be filled as any other vacancy.
(d) Five members shall constitute a quorum of the commission, and any ruling, decision or other action of the commission may taken by a majority of those members present and voting, provided a quorum is present.
(Ord. 1426 § 2, 1992)
§ 2.45.070. Statement of domestic partnership.
(a) Domestic partners, who meet the qualifications of a domestic partnership under this chapter may make an official record of their domestic partnership by completing, signing and
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submitting in person to the city clerk, on the form prescribed by the city clerk, a "statement of domestic partnership" stating that they meet the requirements of this chapter. (b) The statement shall establish the location of domicile and be signed by both partners under penalty of perjury, with both signatures being notarized. (c) Each domestic partner who submits a statement of domestic partnership with the city clerk agrees to notify the city of any change in the status of their domestic partnership. (d) A statement of domestic partnership may be amended to reflect changes, such as a change in address of the partners, by filing in person a new statement of domestic partnership. (e) No person who has a statement of domestic partnership on file with the city clerk may file another statement of domestic partnership until a statement of termination of domestic partnership is filed with the city clerk in accordance with this chapter. (f) No statement of domestic partnership shall be deemed effective unless submitted to the city clerk in accordance with the provisions of this chapter. (f)(g) The rights afforded by Chapter 2.45 of this Code shall not infringe on any rights afforded those registered as domestic partners by the Secretary of State of California or conferred upon individuals pursuant to the legalization of same sex marriage in Obergefell v. Hodges and its progeny.
(Ord. 1578 § 4, 2000)
§ 2.45.080. Termination of domestic partnership.
(a) A domestic partnership is terminated when one of the following occurs: (1) one partner dies or is married, (2) the partners no longer have a common residence, or (3) one partner gives the other written notice by certified mail of termination. Upon the occurrence of such event, at least one former partner shall file with the city a statement of termination of domestic partnership.
(b) Any member of a domestic partnership may terminate the domestic partnership by jointly or unilaterally completing, signing under penalty of perjury and submitting in person to the city clerk a statement of termination of domestic partnership in the form prescribed by the city clerk.
(c) A domestic partnership shall be deemed terminated thirty days after the filing of the statement of termination of domestic partnership and, if applicable, proof that the statement of termination was either mailed to, served on or personally delivered to the former partner, when such former partner did not appear personally in the city to file the statement of termination of domestic partnership.
(d) No termination of domestic partnership shall be deemed effective unless submitted to the city clerk in accordance with the provisions of this chapter. (Ord. 1578 § 4, 2000)
§ 2.45.090. Fees.
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(a) No statement of domestic partnership or statement of termination of domestic partnership shall be accepted by the city clerk unless accompanied by payment of the filing fee in an amount which may be established from time to time by resolution of the city council. (b) Payment of filing fees shall entitle the person filing the subject statement to have two copies of said statement certified by the city clerk.
(c) The cost of certification of additional copies of a statement shall be an amount per copy as established by resolution of the city council.
(Ord. 1578 § 4, 2000)
§ 2.45.100. Maintenance of records—Notary.
The city clerk shall maintain adequate records of all statements of domestic partnership and all statements of termination of domestic partnership along with a register of domestic partnerships.
No statement of domestic partnership or termination shall be valid and binding without the signature and seal of acknowledgement by a notary public. (Ord. 1578 § 4, 2000)
§ 2.45.110. Legal effect.
(a) Registration as a domestic partner under this chapter shall not be evidence of, or establish, any rights existing under law other than those expressly provided hereunder. (b) The filing of a statement of domestic partnership hereunder shall not change the character of property, real or personal, or interest in real or personal property owned by either domestic partner or both of them, and the formation of a domestic partnership shall not, in and of itself, create any interest in or rights to, any property, real or personal, owned by the partner in the other partner, including but not limited to, any rights similar to community property rights or "palimony" rights under common law.
(c) The formation of a domestic partnership hereunder shall not change the individual income or estate tax liability of each partner prior to and during the partnership, unless otherwise provided under another state or federal law or regulation. (d) This chapter is not intended to make the California Uniform Partnership Act (California Corporations Code Section 15001, et seq.) applicable to domestic partnerships. (e) At the election of the partners, they may enter into a durable power of attorney for any authorized purposes, including but not limited to, health care or the disposition of personal effects at the time of death; provided, that the statement complies with the requirements of the Uniform Durable Power of Attorney Act (Article 3, commencing with Section 2475, of Division 3, Part 4, Title 9 of the California Civil Code). (Ord. 1578 § 4, 2000)
§ 2.45.120. Health care facility visitations.
All health care and psychiatric care facilities located in the city, including but not limited to hospitals, convalescent facilities or other long-term care facilities, shall allow a domestic partner of a patient to visit the patient unless the applicable rules of the facility prohibit all visitors. (Ord. 1578 § 4, 2000)
§ 2.45.130. Jail visitation rights.
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A domestic partner of an inmate in the city jail shall be allowed to visit the inmate unless: (1) the applicable rules prohibit all visitors, or (2) the police department decides that a particular visitor is a threat to the security of the jail.
(Ord. 1578 § 4, 2000)
§ 2.45.1340. City applications, licenses and permits.
Persons registered with the city as domestic partners are entitled to file, on behalf of their domestic partner, any applications, approvals, licenses or permits that the city allows to be filed for any person by that person's spouse. This includes, but is not limited to, all business applications, licenses and permits; all planning, building and land use applications, licenses and permits; all health, safety and regulatory applications, licenses and permits; and all other municipal applications, licenses, and permits, whatsoever.
(Ord. 1578 § 4, 2000)
§ 2.45.1450. Civil actions.
Any person or entity defrauded by a false representation in a statement of domestic partnership, an amendment to such statement or a statement of termination of domestic partnership may bring a civil action against either or both partners pursuant to the laws of the state of California to recover his, her or its actual losses, damages or injuries.
(Ord. 1578 § 4, 2000)
§ 2.45.1560. Reciprocity.
The provisions of and the rights and benefits accorded by this Chapter 2.45 shall be applicable to persons registered as domestic partners in any other jurisdiction with a comparable domestic partnership enactment.
(Ord. 1578 § 4, 2000)
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CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 BUSINESS & LEGISLATIVE
SUBJECT: DISCUSSION OF CITY MAYORAL POSITION AND REPORT FROM AD
HOC SUBCOMMITTEE
FROM: Scott C. Stiles, City Manager
BY: Brenda Pree, City Clerk
SUMMARY:
This report provides an opportunity for the City Council Mayoral Position Ad Hoc Subcommittee (Garner/deHarte) to provide an update on ongoing discussions regarding the City’s mayoral position.
RECOMMENDATION:
Receive and file this report and provide direction to Staff as appropriate.
BACKGROUND:
At the City Council meeting of April 8, 2026, the City Council created an ad hoc subcommittee to further discussions regarding the City’s mayoral position, and appointed Councilmember Garner and Councilmember deHarte as subcommittee members.
STAFF ANALYSIS:
Staff has consolidated California Voting Rights Act (CVRA) records within the City’s document repository (Laserfiche) and established a dedicated webpage to enhance public access to historical materials related to the subject matter. This aims to facilitate efficient searches and promote transparency.
ALIGNMENT WITH STRATEGIC PLANNING
This item aligns with the City Council’s Strategic Plan Foundation to advance fiscal sustainability and organizational resilience.
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City Council Staff Report
May 27, 2026 -- Page 2
Discussion of City Mayoral Position and Report from Ad Hoc Subcommittee FISCAL IMPACT:
None at this time.
REVIEWED BY:
Department Director: Brenda Pree
City Manager: Scott Stiles
ATTACHMENTS:
A. California Voting Rights Act (CVRA) Document Central Link: California Voting Rights Act (CVRA) and City Webpage
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ATTACHMENT A
California Voting Rights Act (CVRA)
Document Central Link: California Voting Rights
Act (CVRA) & City Webpage
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*These time frames are for internal agenda management purposes only. It should not be relied on by any third party for purposes of establishing when an agenda item may actually be heard.
TENTATIVE UPCOMING MEETING SCHEDULE
Updated Wednesday, May 20, 2026
June 10 – Regular Meeting
• Pierce’s Pledge Program – Presentation (10 minutes)
• Tourism Improvement District Bonding Authority – Business & Legislative (30 minutes) • SB 707 Teleconferencing Policy – Business & Legislative (30 minutes) • Convention Center Food/Beverage Contract – Business & Legislative (30 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes) Total time: 2.0 hours
June 24 – Regular Meeting
• Emergency Operations Update – Presentation (10 minutes) • FY 2026-27 Continuation Budget Adoption – Public Hearing (60 minutes) • Annual Street Lighting/Parkway Maintenance Districts – Public Hearing (15 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes) July 8 – Regular Meeting
• Traffic Signal Synchronization Update from CVAG – Presentation (15 minutes) • Report on Mayoral Position – Business & Legislative (10 minutes)
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