CITY COUNCIL STAFF REPORT
DATE: MAY 12, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 2 TO CONTRACT SERVICES
AGREEMENT NO. 23B079 WITH WEST AVIATION SERVICES – SAN
DIEGO DBA SIERRA AVIATION GROUP FOR BAGGAGE RELOCATION
AND WAYFINDING ASSISTANCE SERVICES FOR THE PALM SPRINGS
INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve Amendment No. 2 to Contract Services Agreement No. 23B079 (Agreement) with West Aviation Services – San Diego dba Sierra Aviation Group (Sierra).
This amendment adds a supervisor position, establishes overtime and holiday rates, defines regular working hours and a holiday schedule, extends the term, and accounts for the annual Consumer Price Index (CPI) adjustment. The amendment increases compensation in the amount of $1,498,422.50, for a revised not to exceed amount of $3,608,422.50, for baggage relocation and wayfinding services at the Palm Springs International Airport (Airport).
RECOMMENDATION:
1. Approve Amendment No. 2 to Contract Services Agreement No. 23B079 with West Aviation Services - San Diego dba Sierra Aviation Group to add a supervisor position, establish overtime and holiday rates, define regular working hours and a holiday schedule, extend the term, and account for the annual Consumer Price Index (CPI) adjustment to increase compensation in the amount of $1,498,422.50, for a revised not to exceed amount of $3,608,422.50, for baggage relocation and wayfinding services at the Palm Springs International 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:
City Council Staff Report
May 12, 2026 -- Page 2
Baggage Relocation and Wayfinding Assistance Services for Palm Springs International Airport According to the Public Integrity Disclosure form (Attachment B) submitted on March 12, 2026, West Aviation Services - San Diego dba Sierra Aviation Group is registered in California.
BACKGROUND:
On May 11, 2023, City Council approved Contract Services Agreement No. 23B079 with West Aviation Services - San Diego dba Sierra Aviation Group (Attachment C) to provide baggage relocation and wayfinding services for a three-year term, with two one-year extension options, commencing on June 1, 2023, and ending on May 31, 2026, for a total contract amount not to exceed $2,000,000.
On March 30, 2026, the City Manager approved Amendment No. 1 to Contract Services Agreement No. 23B079 (Attachment D) to increase compensation by $110,000, for a revised not to exceed amount of $2,110,000 for continued baggage relocation and wayfinding services.
Sierra provides baggage relocation and wayfinding services to support Airport and airline operations within the terminal and baggage handling areas. These services help maintain efficient passenger flow and baggage movement during periods of high passenger activity, operational constraints, and facility limitations.
The Airport’s baggage handling system experiences capacity limitations during peak and in-season travel periods, which can impact the timely delivery of checked baggage to aircraft. The system is an aging, high-demand system that was originally designed for lower passenger volumes and now operates near or at capacity during peak travel periods. As a result, it relies more heavily on manual coordination and staff intervention to keep baggage moving efficiently through screening, sorting, and delivery processes.
When passenger activity increases or operational disruptions occur, the system can experience congestion and slower processing times, which may affect the timely delivery of checked baggage to aircraft and overall operational efficiency.
Passenger movement between the Sonny Bono Concourse and the terminal claim level is periodically affected by escalator outages and routine maintenance. These impacts are anticipated to increase during the upcoming escalator removal and replacement project, which will affect a significant portion of passenger circulation within the terminal.
STAFF ANALYSIS:
Sierra has been instrumental in supporting Airport operations by providing baggage relocation and wayfinding services, which align with the Airport’s mission of “Moving You with Unforgettable Hospitality.” These services support safe and efficient passenger movement throughout the terminal while ensuring compliance with ADA requirements.
City Council Staff Report
May 12, 2026 -- Page 3
Baggage Relocation and Wayfinding Assistance Services for Palm Springs International Airport The continued use of contracted services through Sierra ensures these functions are consistently performed without reducing the Airport’s internal operational capacity.
The current Agreement does not include a supervisory position. The addition of a dedicated Sierra supervisor will improve on-site oversight, coordination, and accountability of contractor personnel Increased wayfinding support will be required in advance of the escalator replacement project scheduled to begin in mid-2026 to assist passengers in navigating alternative routes, aiding with the transportation of luggage up the stairs, and maintaining effective customer experience.
The Agreement currently provides services at an hourly rate of $28.00 with no overtime or holiday rates. The proposed amendment increases the regular rate to $28.90 which reflects a 3.2% CPI adjustment and adds a supervisory rate of $33.00, with established overtime rates of $43.35 for non-supervisory staff and $49.50 for supervisors. Holiday rates will match overtime rates and will apply in accordance with the federal holiday schedule from 12:00 a.m. to 11:59 p.m. These adjustments are necessary to ensure adequate staffing coverage during irregular operations, including call-offs, staffing shortages, flight delays, and fluctuations in passenger demand.
The amendment also clarifies that regular rates apply for up to eight hours per day, with hours beyond that threshold billed at the applicable overtime rate for Sierra personnel.
Additionally, the scope of services is updated from “wayfinding/baggage claim assistance” to “wayfinding services,” allowing Airport staff to expand coverage across all terminal areas rather than limiting Sierra personnel to a single centralized location.
While exact service hours vary due to airline schedule, operational conditions, staffing levels and costs that were developed based on historical data to ensure appropriate coverage. The proposed compensation increase of $1,498,422.50 reflects the CPI adjustment and the inclusion of supervisory, overtime, and holiday cost components not included in the original Agreement.
This increase also includes approximately $300,000 for unanticipated escalator-related disruptions. Since 2023, escalator repair events have increased from 17 to 24 in 2024 and 33 in 2025, resulting in increased demand for passenger assistance and wayfinding services beyond original contract assumptions. Additional costs are also anticipated in preparation for the escalator replacement project, which will further require expanded passenger support throughout the terminal.
Continued use of a contracted service model is recommended as the most operationally effective and cost-efficient approach. This model ensures consistent coverage of critical passenger support functions without diverting Airport staff from core safety, security, and operational responsibilities. Sierra personnel assigned to passenger flow management support safe circulation, reduce congestion during peak periods, and assist in maintaining controlled terminal operations in accordance with Airport security protocols.
City Council Staff Report
May 12, 2026 -- Page 4
Baggage Relocation and Wayfinding Assistance Services for Palm Springs International Airport While the proposed amendments increase contract costs, they provide improved oversight, greater staffing reliability, and enhanced coordination during irregular operations. Reducing or eliminating these services would negatively impact operational flexibility, passenger experience, and the Airport’s ability to maintain service levels during peak demand and equipment outages. The recommended approach balances operational necessity, passenger service standards, and safety requirements while ensuring continuity of essential Airport functions.
Staff recommend approval of Amendment No. 2 to Agreement No. 23B079 with West Aviation Services - San Diego dba Sierra Aviation Group to add a supervisor position, incorporate overtime and holiday rates, define regular working hours and include a holiday schedule, extend the term, and account for the annual CPI adjustment to increase compensation in the amount of $1,498,422.50, for a revised not to exceed amount of $3,608,422.50, for baggage relocation and wayfinding services at the Airport through May 31, 2027.
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 Operational Excellence and Infrastructure.
FISCAL IMPACT:
Sufficient funds are budgeted in Fiscal Years 2025–26 and 2026–27 Airport Account 4157050-40105, Terminal Building Operations Contractual Services and Account 4157052-40105 Baggage Handling System Contractual Services for Operations and Maintenance (O&M) costs incurred prior to the service costs being transferred to the Escalator Removal and Replacement Project and the Baggage Handling System Construction Project.
Once services transition into the Escalator Removal and Replacement Project and the Baggage Handling System Construction Project services, expenditures will be funded by Airport Account 4167065-8000 Capital Improvement Projects which also has sufficient City Council Staff Report
May 12, 2026 -- Page 5
Baggage Relocation and Wayfinding Assistance Services for Palm Springs International Airport funds budgeted in Fiscal Years 2025–26 and 2026–27.
The total estimated fiscal impact across all phases and funding sources is $1,498,422.50.
The table below reflects the phased funding approach required to support both pre- construction O&M activities and capital project implementation.
Service
Provided
Estimated
Timelines Account Estimated
Amount
Baggage
Relocation April – December 2026
4157052-40105
Baggage Handling System
Contractual Services
$615,076
Baggage
Relocation for
Baggage
Handling
System
Project
January 2027 – May
2027
4167065-80000
Capital Improvement
Projects
$475,466.50
Wayfinding April – July 2026 4157050-40105
Terminal Building Ops $335,960
Wayfinding
for Escalator
Removal and
Replacement
Project
August – September
2026
4167065-80000
Capital Improvement
Projects
$71,920
Total $1,498,422.50
REVIEWED BY:
Executive Director of Aviation: Harry Barrett Jr.
Procurement and Contracting Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. Contract Services Amendment No. 2 to Agreement No. 23B079 B. Public Integrity Disclosure
C. Contract Services Agreement No. 23B079
D. Contract Services Amendment No. 1 to Agreement No. 23B079