CITY COUNCIL STAFF REPORT
DATE: April 8, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO CONSULTING SERVICES AGREEMENT NO. 25P065 WITH KAPLAN KIRSCH, LLP FOR LEGAL
COUNSEL SERVICES FOR THE PALM SPRINGS INTERNATIONAL
AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Airport
SUMMARY:
This action will approve Amendment No. 1 (Amendment) to Consulting Services Agreement No. 25P065 (Agreement) with Kaplan Kirsch LLP for legal counsel services, to exercise the first of four one-year extension options, and include an annual Consumer Price Index (CPI) increase for the Palm Springs International Airport (Airport). The total Agreement amount remains at an amount not to exceed $900,000, as no additional compensation is required.
RECOMMENDATION:
1. Approve Amendment No. 1 to Consulting Services Agreement No. 25P065 with Kaplan Kirsch LLP for legal counsel services, to exercise the first of four one-year extension options, April 10, 2025, through April 9, 2027, and include an annual Consumer Price Index (CPI) increase. The total Agreement amount will remain at an amount not to exceed $900,000, as no additional compensation is required.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B) submitted on January 16, 2025, Kaplan Kirsch LLP is a Limited Liability Partnership registered in the state of Colorado.
City Council Staff Report
April 8, 2026 -- Page 2
Amendment No. 1 to Agreement No. 25P065 with Kaplan Kirsch BACKGROUND:
On April 9, 2025, City Council approved Consulting Services Agreement No. 25P065 (Attachment C) with Kaplan Kirsch to provide legal counsel services for the Airport for a one-year term, with four one-year extension options, commencing April 10, 2025 through April 9, 2026, for a total Agreement amount not to exceed $900,000. The approval was contingent upon the total Agreement amount being reduced from $2.7 million to $900,000, and the requirement that the City Attorney must confirm that the legal services being requested are for specialized aviation legal services prior to the services being rendered and review and approve the monthly invoices. Airport staff were also directed to return to the City Council to provide an accounting of the specialized aviation legal services performed in the first year of the Agreement and request approval of this Amendment to exercise this term extension, the first of four one-year term extension options.
Kaplan Kirsch provides specialized aviation legal services that support the Airport in navigating complex federal and state regulatory requirements, including Federal Aviation Administration (FAA) grant assurances, airline use and lease matters, environmental compliance, and other aviation-related legal issues. These services supplement the City’s existing legal resources by providing expertise specific to airport operations and aviation requirements and regulations.
From April 2025 through February 2026, the Airport has paid Kaplan Kirsch a total of $62,964.79 for specialized aviation legal counsel services. Approximately 7% of the not to exceed contract amount of $900,000 has been expended, and the remaining contract balance is $837,035.21. These amounts exclude the March 2026 invoice which will be received in mid-April 2026. No additional compensation is required for the Agreement.
A summary of the specialized aviation legal services performed for the Airport and the corresponding invoice amounts submitted by Kaplan Kirsch are provided below in Table
1. Summary of Specialty Aviation Legal Services & Invoices April 2025 – February 2026
No Services Rendered in July 2025
Billing Month
and Year Service Description
Invoice
Amount
April 2025 Rental Car Project $1,020.00
May 2025 Consolidated Rental Car Facility (CONRAC)
Due Diligence Work $3,180.00
City Council Staff Report
April 8, 2026 -- Page 3
Amendment No. 1 to Agreement No. 25P065 with Kaplan Kirsch June 2025
CONRAC Planning Workshop, Conferences, and Draft
Request for Federal Aviation Administration (FAA)
Approval Determination for North Parcels
$3,780.00
August
2025
CONRAC Agreement Draft for Sixt Rent a Car, LLC/
Capital Program Strategy with Frasca & Associates, LLC $3,150.00 September
2025
Review and Revise Draft for Sixt Rent a Car, LLC
Agreement $1,950.00
October
2025
Sixt Rent a Car, LLC Agreement Revision, Property
Appraisal, Review Enterprise Rent-A-Car Company
Agreement, FAA Audit Conference, Review Letter from
The Hertz Corporation, Rental Car Letters
$3,630.00
November
2025
Rental Car Letters, FAA Audit Preparation, Review Equity Infrastructure Project Website $5,330.00
December
2025
Preparation for FAA Audit, Guidance for Response to
Enterprise Rent-A-Car Company, Review Leases and
Memorandum of Understanding’s (MOUs), Review
Additional Documents from the Airport Financial Audit
$4,760.00
January
2026
FAA Audit Review Document, Preparation, Site Visit, and Final Response, Client Based Documents Review, Lease
Questions, On-Site Meetings for FAA Audit,
Transportation Security Administration (TSA) MOUs,
$33,404.79
February
2026
Additional Preparation for FAA Audit and Review of
Parking Contract and FAA Provisions. $2,760.00
Total Expenditures $62,964.79
Table 1
City Council Staff Report
April 8, 2026 -- Page 4
Amendment No. 1 to Agreement No. 25P065 with Kaplan Kirsch To further explain the January 2026 invoice regarding the FAA Audit Review; on October 21, 2025, the FAA notified the City that they would be conducting an onsite financial compliance review to assess the City’s compliance with the FAA’s Policy and Procedures Concerning the Use of Airport Revenues and other applicable federal revenue regulations governing airport sponsors. Given the significance of these reviews and the potential consequences of any findings, Airport staff sought guidance from both the City’s general aviation legal counsel, Best Best & Krieger (BBK), and Kaplan Kirsch, a legal firm nationally recognized for its specialized expertise in FAA compliance and airport revenue- use matters.
Kaplan Kirsch provided a proposal that estimated legal fees to review documents and prepare staff for the FAA financial compliance review of approximately $45,000 which included travel expenses. After consultation, BBK concluded that Kaplan Kirsch’s specific experience with FAA financial compliance reviews made them uniquely qualified to assist the City in preparing for the review and that the proposed scope of work and estimated legal fees were acceptable. With that understanding, staff proceeded with Kaplan Kirsch to conduct pre-interview preparation sessions with key personnel to review existing operational practices, identify potential areas of concern, and ensure the City was adequately prepared for the FAA’s onsite review.
Kaplan Kirsh billed $33,404.79 in January 2026 and $960 in February 2026 for a total billing amount of $34,364.79 for document review and staff preparation for the FAA financial compliance review. As a result of this preparation, staff approached the FAA review with a clear understanding of the applicable federal requirements and were able to respond to questions in a thorough and organized manner. While the review did identify a few areas where additional clarification or follow-up may be required, the preparation process helped ensure the City was well positioned to demonstrate its commitment to compliance and sound financial stewardship of airport revenues.
STAFF ANALYSIS:
Kaplan Kirsch LLP provides specialized aviation legal services that supplement the City’s existing legal resources and support the Airport in addressing complex FAA regulations, airline lease matters, environmental compliance, and other aviation-specific matters efficiently. Their familiarity with the Airport’s projects and ongoing initiatives ensures continuity, efficiency, and informed decision-making, and their services help the Airport mitigate regulatory, contractual, and operational risk.
As the airport advances major capital and development initiatives, such as the north concourse modernization, development of the Federal Inspection Station (FIS), and the relocation of the auxiliary rental car as well as associated land use lease negotiations, Kaplan Kirsch’s expertise will be needed more. These projects involve significant federal coordination, funding compliance, and complex stakeholder agreements, where specialized aviation legal guidance is essential to maintain project timelines, ensure regulatory compliance, and protect the Airport’s financial and operational interests.
City Council Staff Report
April 8, 2026 -- Page 5
Amendment No. 1 to Agreement No. 25P065 with Kaplan Kirsch To ensure the appropriate use of outside counsel, the City Attorney will continue to confirm in advance that all requested services are limited to specialized aviation legal matters and do not duplicate general legal services provided by Best Best & Krieger LLP.
The City Attorney will also review and approve all monthly invoices to verify compliance.
Following this approval, Airport staff will review the invoices to ensure billing hours are reasonable and rates are accurate.
Staff recommend approval of Amendment No. 1 to Consulting Services Agreement No. 25P065 with Kaplan Kirsch LLP to extend the Agreement term for an additional one year, through April 9, 2027, and to include the addition of an annual Consumer Price Index (CPI) increase, as requested by Kaplan Kirsch to address ongoing cost escalation over the term of the Agreement. If an annual CPI is approved, the hourly rates will be increased by the current CPI of 3.2% as depicted in Attachment D, rounding down to the nearest whole dollar. No additional compensation is required for the Agreement.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports the City of Palm Springs’ Strategic Plan Broad Goals of Infrastructure and Facilities, and it also supports the Airport’s 2025-2029 Strategic Plan’s Strategic Priorities for Infrastructure.
FISCAL IMPACT:
Sufficient funds are available in Fiscal Years 2025-26 and 2026-27 in the Department of Aviation, Administration, Contractual Legal Services Account 4157020.40106.
REVIEWED BY:
Executive Director of Aviation: Harry Barrett
Procurement and Contracting Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
City Council Staff Report
April 8, 2026 -- Page 6
Amendment No. 1 to Agreement No. 25P065 with Kaplan Kirsch ATTACHMENTS:
A. Consulting Services Amendment No. 1 to Agreement No. 25P065 B. Public Integrity Disclosure
C. Consulting Services Agreement No. 25P065
D. Proposed Hourly Rate Increases