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Staff Report

Palm Springs City Council
May 27, 2026

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Staff Report
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May 27, 2026
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Palm Springs City Council
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CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE MANAGEMENT

ASSOCIATION OF PALM SPRINGS AND PALM SPRINGS

FIREFIGHTERS ASSOCIATION
FROM: Scott C. Stiles, City Manager
BY: Human Resources
SUMMARY:

The City has reached a tentative Memorandum of Understanding (MOU) agreement with the Management Association of Palm Springs (“MAPS”) and the Palm Springs Firefighters Association (“PSFA”). The City Council will consider adopting Resolutions approving the Memoranda of Understanding between the City and the associations as well as granting similar salary and benefits to unrepresented staff.

RECOMMENDATION:
1) Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A MEMORANDUM OF

UNDERSTANDING RELATIVE TO WAGES, HOURS, AND OTHER TERMS AND

CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE PALM SPRINGS

FIREFIGHTERS ASSOCIATION AND THE MANAGEMENT ASSOCIATION OF PALM SPRINGS FOR THE PERIOD OF JULY 1, 2026 THROUGH JUNE 30, 2029, SUBJECT TO THE ASSOCIATION EXECUTING THE MEMORANDUM OF

UNDERSTANDING, AND ADOPTING SALARY AND BENEFIT CONDITIONS OF

EMPLOYMENT FOR UNREPRESENTED EMPLOYEES SIMILAR AS THOSE OF THE MANAGEMENT EMPLOYEE ASSOCIATION.”.
2) Authorize the City Manager to execute the Memorandum of Understanding (”MOU”) and all documents necessary to effectuate the above action, including the allocation and compensation plans, salary schedules, agreements and contracts, and any non-substantial MOU language or reorganization.

City Council Staff Report
May 27, 2026 -- Page 2
Memorandum of Understanding with MAPS and PSFA
BACKGROUND:

The City of Palm Springs negotiates labor agreements with recognized employee organizations in accordance with the Meyers-Milias-Brown Act (MMBA), which requires public agencies to meet and confer in good faith with employee representatives regarding wages, hours, and other terms and conditions of employment.

Following the meet-and-confer process, tentative agreements are reached between the City’s negotiation team and the bargaining unit representatives. These agreements are subject to ratification by the membership of the bargaining unit. Once ratified, the agreement is presented to the City Council for consideration and formal approval.

An MOU does not become effective until it has been ratified by the bargaining unit, approved by the City Council, and executed by both parties. Upon approval, the terms of the MOU are implemented through updates to salary schedules, compensation plans, and related administrative documents.

STAFF ANALYSIS:

Palm Springs Firefighters Association (“PSFA”)
The City negotiation team and representatives of PSFA have met and conferred in good faith and have reached an agreement on the terms and conditions of the MOU governing employees of the City represented by PSFA for the period July 1, 2026, through June 30, 2029.

The three-year agreement includes the following key provisions:
Base salary increases of:
o5% effective the pay period that includes July 1, 2026; o4% effective the pay period that includes July 1, 2027; and o3% effective the pay period that includes July 1, 2028. A 5% premium for those assigned to Aircraft Rescue and Fire Fighting (ARFF) A 2.5% Hazard Premium for those assigned as a Swiftwater Technician Increase the Retiree Health Saving contribution from $150 to $300 per month Increase minimum staffing to 23 to 26
Additional language revisions were also negotiated to better align with CalPERS special compensation requirements.

This agreement was reached through negotiations between PSFA and the City’s negotiation team, both of which jointly recommend City Council approval of the MOU.

City Council Staff Report
May 27, 2026 -- Page 3
Memorandum of Understanding with MAPS and PSFA
Management Association of Palm Springs (“MAPS”)
The City negotiation team and representatives of MAPS have met and conferred in good faith and have reached an agreement on the terms and conditions of the MOU governing employees of the City represented by MAPS for the period July 1, 2026, through June 30, 2029.

The three-year agreement includes the following key provisions:
Base salary increases of:
o3.5% effective the pay period that includes July 1, 2026; o3.5% effective the pay period that includes July 1, 2027; and o3% effective the pay period that includes July 1, 2028. Addition of a deferred compensation match of up to $100 per month. Increase to the safety boot allowance from $175 to $225 annually. Increase to the medical benefit opt-out incentive from $300 to $400 per month.

The agreement also establishes a Paid Family Leave program, providing up to four (4) weeks (160 hours) of leave per year at 70% of base salary for qualifying events, including bonding following the birth, adoption, or foster placement of a child, or to care for a family member with a serious health condition.

In conjunction with the negotiated agreement, a limited number of classifications currently represented by MAPS will be transitioned to unrepresented status and placed within the Executive (“EX”) Group. These positions have been identified as confidential in nature, and their reassignment is intended to align with operational needs and avoid potential conflicts associated with representation status. The classifications are:
Accounting Manager
Budget Analyst
Budget Manager
Deputy Director of Aviation - Marketing
Human Resources Specialist
Human Resources Specialist, Senior
Payroll Coordinator
These transfers were reviewed with and agreed to by MAPS as part of the overall negotiation process.

Employees in these classifications were previously eligible for overtime under the MAPS MOU. Upon transition to the Executive Group, these positions will become exempt from overtime eligibility. To ensure equity and continuity of compensation, affected positions have been placed within salary ranges designed to maintain overall annual earnings as close as practicable to their current compensation levels. While this may result in minor adjustments to base salary, the intent is to avoid any material increase or decrease in City Council Staff Report
May 27, 2026 -- Page 4
Memorandum of Understanding with MAPS and PSFA
total compensation or benefits. The transfer of these positions will be reflected in, and brought back to Council for formal approval, with the mid-year budget.

This agreement was reached through negotiations between MAPS and the City’s negotiation team, both of which jointly recommend City Council approval of the MOU.

Unrepresented Executive Unit (“EX”)
A recent classification and compensation survey showed that many Executive Unit positions were below the average market comparison. To maintain appropriate internal alignment with management classifications and support the City’s ability to recruit and retain qualified executive staff, it is recommended that Executive Unit employees receive salary adjustments consistent with those provided to the MAPS bargaining unit. The recommended salary increases are as follows:
3.5% effective the pay period that includes July 1, 2026; 3.5% effective the pay period that includes July 1, 2027; and 3% effective the pay period that includes July 1, 2028.

Consistent with past practice, unrepresented employees generally receive salary and benefit provisions similar to those provided to the Management Unit, except where otherwise specified for the Executive Unit. The recommended action continues that structure and includes a deferred compensation match of up to $200 per month, and an increase to the Retiree Health Savings contribution from $100 to $200 per month.

Unrepresented employees would also be eligible for the same Paid Family Leave Program provided to MAPS employees. Initially, the program is anticipated to be self- funded. Moving to a carrier-funded model requires a minimum participant threshold of 200 employees. Together, the unrepresented employees and MAPS employees meet that threshold. Both models are being reviewed for potential cost savings opportunities.

The Executive Unit Salary and Benefits Summary, included as Attachment F, memorializes the salary and benefit provisions applicable to the Executive Unit, including those provisions that have historically applied differently to unrepresented employees due to the nature of executive-level classifications. This includes items such as the automobile allowance for Assistant City Managers, disability benefit classifications, and other Executive Unit benefit provisions.

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 agreements for the above-mentioned bargaining units, and is exempt from CEQA pursuant to Section 15378(b), in that a City Council Staff Report
May 27, 2026 -- Page 5
Memorandum of Understanding with MAPS and PSFA
“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:

During the term of the agreement with the Palm Springs Firefighters Association, the anticipated additional annual cost is as follows:

Year 1: $1,247,700
Year 2: $2,066,500
Year 3: $2,739,000
During the term of the agreement with the Management Association of Palm Springs, the anticipated additional annual cost is as follows:

Year 1: $783,100
Year 2: $1,453,200
Year 3: $2,069,000
During the next 3 years, the anticipated additional annual cost for Executive Unit staff is as follows:

Year 1: $586,600
Year 2: $1,000,900
Year 3: $1,374,900
These costs reflect negotiated salary and benefit increases.

The fiscal impact of the Paid Family Leave program is not fully quantifiable at this time due to unknown utilization rates. As a pilot program, actual usage and associated impacts will be evaluated over time.

Due to the nature of positions within the MAPS bargaining unit and Executive Unit, most absences are expected to be managed without backfilling. In limited cases where backfilling is necessary, departments may incur additional costs associated with temporary staffing or acting assignment pay to maintain operations.

The City may have the opportunity to transition to a carrier-funded model rather than a self-funded approach, which could help mitigate long-term financial exposure. This option is currently under evaluation.

City Council Staff Report
May 27, 2026 -- Page 6
Memorandum of Understanding with MAPS and PSFA
REVIEWED BY:

Department Director: Stephanie George
City Manager: Scott Stiles

ATTACHMENTS:

A. Resolution
B. Fire Safety MOU
C. Fire Safety Unit Salary Schedule
D. Management Unit MOU
E. Management Unit Salary Schedule
F. Executive Unit Salary & Benefit Summary
G. Executive Unit Salary Schedule
H. Allocated Positions and Compensation Plan

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