CITY COUNCIL STAFF REPORT
DATE: JULY 8, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 4 TO CONTRACT SERVICES
AGREEMENT NO. A8535 WITH ABM AVIATION, INC. FOR PARKING
MANAGEMENT SERVICES AT THE PALM SPRINGS INTERNATIONAL
AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Airport
SUMMARY:
This action will retroactively approve Amendment No. 4 (Amendment) to Contract Services Agreement No. A8535 (Agreement) with ABM Aviation, Inc. (ABM), to extend the Agreement term for an additional nine (9) months, June 1, 2026 through February 28, 2027 and to remove Taxi Starters and Traffic Enforcement Officers (TEO) for a revised not to exceed maximum contract amount of $6,419,842 at the Palm Springs International Airport (Airport).
RECOMMENDATION:
1. Approve, retroactively, Amendment No. 4 to Contract Services Agreement A8535 (Attachment A) with ABM Aviation, Inc., to extend the Agreement term for an additional nine (9) months, June 1, 2026 through February 28, 2027, in the amount of $874,282, and to remove Taxi Starters and Traffic Enforcement Officers (TEO) for a revised not to exceed maximum contract amount of $6,419,842 at the Palm Springs International Airport (Airport).
2. Authorize the City Manager or designee to execute all necessary documents subject to such changes / revisions agreeable to the City Manager and City Attorney.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure Form (Attachment B), ABM Aviation, Inc., is a publicly traded company registered in the state of California and licensed to do business in Palm Springs.
City Council Staff Report
July 8, 2026 -- Page 2
Approval of Amendment No. 4 to Contract Services Agreement No. A8535 with ABM Aviation, Inc.
BACKGROUND:
Palm Springs International Airport has four paid public parking lots: Parking Lots A, B, C, and D that are open daily and provide a total of 886 parking spaces. Of the 886 spaces, 80 have been identified for Electric Vehicle (EV) charging. Additionally, the Airport has an overflow parking lot that is open for paid public parking when Parking Lots A through D have a remaining vacancy of 25 parking spaces. The overflow parking lot provides an additional 800 parking spaces, and a shuttle service is provided to shuttle Airport customers to and from the Airport main terminal and the overflow parking lot during peak season and as needed during off-peak season.
For the last 25 years, the Airport has utilized contracted services to manage the Airport’s parking operations, and for the last 20 years, the contracted services have also included a taxi starter booth attendant and terminal curbside traffic enforcement to meet the demands of the Airport’s public transportation needs and traffic demands.
On April 2, 2020, the City Council approved Contract Services Agreement No. A8535 (Attachment C) with ABM Aviation, Inc. (ABM) to provide parking management services at the Airport, for a five-year term from June 1, 2020, through May 31, 2025 for an amount of $4,270,796.
Between May 28, 2020, and September 26, 2024, the City and ABM executed Amendments No. 1 through 3 (Attachment D) to adjust staffing levels in response to the COVID-19 pandemic and the increase in shuttle services needed to meet the unexpected increased demand. In 2024, a review was conducted with ABM to analyze the actual expenses incurred during Years 3 and 4 as compared to the original contract amounts.
Amendment No. 3 (Attachment D) extended the Agreement for one year, June 1, 2025 to May 31, 2026 for an additional amount of $2,674,475 and a total revised contract amount not to exceed $6,945,271.
The Airport issued a Request For Proposal (RFP) in 2025 to replace the current aging parking access and revenue control systems (PARCS) equipment. City Council approved the PARCS contract with SkiData Inc. (Item 1F) on May 12, 2026. The new PARCS hardware and a Prebooking and Reservations System will be installed and operational by the end of CY 2026.
The proposed extension will ensure uninterrupted parking operations while the Airport completes procurement, installation, testing, and transition activities associated with the new PARCS system and forthcoming parking management services contract.
STAFF ANALYSIS:
In response to guest feedback and in alignment with creating unforgettable hospitality at the Airport, the Airport’s Landside Operations Division decided to bring in-house traffic enforcement and taxi starting duties as a function of the Airport.
City Council Staff Report
July 8, 2026 -- Page 3
Approval of Amendment No. 4 to Contract Services Agreement No. A8535 with ABM Aviation, Inc.
In December 2024, the Airport began to hire Airport Operations Aides to help manage the landside traffic lanes and commercial traffic at the Airport. The positive feedback received from travelers regarding these new employees reinforces management’s decision to bring these services in-house under Airport Landside Operations. ABM will continue to provide parking management services and operate the Overflow Lot shuttle service. To assist with the demand for employee parking during peak season, the Airport opened the Overflow Lot to employee daily parking. The Overflow Lot shuttle service will be used to shuttle employees, passengers, guests, and visitors from and to the Overflow Lot.
Change of Scope
On March 12, 2025, a 30-day notice letter was sent to ABM confirming the transition of responsibilities for traffic enforcement and taxi starting from ABM to Airport employees effective May 1, 2025. Since the transition in May 2025, the Airport has been engaging with parking industry experts, other airports and municipalities, as well as ABM on the new parking access and revenue control (PARCS) equipment. These discussions helped define the support needed in the Amendment. The Amendment removes the traffic enforcement and taxi starting services from the ABM scope of work while adding in the support needed for the installation of the new PARCS equipment. The change in scope will reduce the contract in an estimated amount of $525,429.
The Airport is currently drafting an RFP for Parking Management Services, with the new agreement to take effect on March 1, 2027. Due to ongoing evaluation of staffing changes and the transition of traffic enforcement and taxi starter services to Airport personnel, the amendment was not finalized prior to expiration of the previous term. Services have continued without interruption while the amendment was processed.
Upon review of the 6-year Contract versus Actuals as depicted in Table 2 below, staff identified a contract overage of $74,763.81, or a percentage of 1.4%. Staff determined that the overage was due to increased shuttle operations over the previous estimate. Staff have determined that through proactive monitoring via Airport Landside Operations, the Airport will be able to actively manage shuttle operations in an effort to reduce expenses.
The Amendment No. 3 not to exceed amount of $6,945,271 will be reduced to a new not to exceed amount of $6,419,842.
Table 2
To Be Amortized Over Seven (7) Years: Contract Actual
Year 1 (June 1, 2020 – May 31, 2021) $780,888 $581,607.58 Year 2 (June 1, 2021 – May 31, 2022) $808,838 $755,596.71 Year 3 (June 1, 2022 – May 31, 2023) $856,779 $930,847.77 Year 4 (June 1, 2023 – May 31, 2024) $891,047 $1,007,509.34 Year 5 (June 1, 2024 – May 31, 2025) $933,244 $1,191,853.17 Year 6 (June 1, 2025 – May 31, 2026) $1,200,000 $1,078,145.24 Six (6) Years TOTAL $5,470,796 $5,545,559.81
Contract Overage $74,764 Included in above
Year 7 (June 1, 2026 – February 28, 2027) $874,282 $874,282 Seven (7) Years TOTAL $6,419,842 $6,419,841.81
New Amendment No. 4 Total Management Fees $6,419,842 $6,419,842 City Council Staff Report
July 8, 2026 -- Page 4
Approval of Amendment No. 4 to Contract Services Agreement No. A8535 with ABM Aviation, Inc.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT:
Sufficient funds are budgeted and available in Fiscal Years (FY) 2026 and 2027 in the Department of Aviation, Landside Operations Account 4157040-40105 for the extension of Parking Management Services under this agreement through February 28, 2027.
Funds will also be budgeted for the remainder of FY 2027 for the new Parking Management Services company that will take effect on March 1, 2027.
REVIEWED BY:
Interim Executive Director of Aviation: Victoria Carpenter City Attorney: Geremy Holm
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Amendment No. 4 to Contract Services Agreement No. A8535 B. Public Integrity Disclosure
C. Contract Services Agreement No. A8535
D. Contract Services Agreement No. A8535 Amendments No. 1 through 3