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PALM DESERT CITY COUNCIL
STUDY SESSION MEETING
AGENDA
Thursday, June 26, 2025
3:00 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
NOTICE IS HEREBY GIVEN that the purpose of the Study Session is to review the items listed on the
agenda. No action will be taken.
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert
Redevelopment Agency, Palm Desert Housing Authority, and Palm Desert Board of Library Trustees.
Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public
access via teleconference or in person, and up to two Councilmembers may attend remotely.
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Pages
1.CALL TO ORDER - STUDY SESSION
2.STUDY SESSION TOPICS
2.a RECEIVE DIRECTION ON FURTHER STUDY OF THE PORTOLA
AVENUE INTERCHANGE PROJECT
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RECOMMENDATION:
Provide direction on including Portola Avenue/Interstate-10 Interchange
Study to the General Plan Circulation Element Update for long range
mobility planning
3.ADJOURNMENT
4.PUBLIC NOTICES
NOTE: Pursuant to Assembly Bill 2449, this meeting may be conducted by
teleconference. Study Session is accessible in person or on the City’s website:
www.palmdesert.gov under the Council Agenda link at the top of the page.
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov
by clicking “Meeting Agendas” at the top of the page.
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comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
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AFFIDAVIT OF POSTING
I, Michelle Nance, Acting Assistant City Clerk of the City of Palm Desert, do
hereby certify, under penalty of perjury under the laws of the State of California,
that the foregoing agenda for the Palm Desert City Council, Successor Agency
for the Palm Desert Redevelopment Agency, and Housing Authority, was posted
on the City Hall bulletin board and City website www.palmdesert.gov no less
than 72 hours prior to the meeting.
/S/ Michelle Nance
Acting Assistant City Clerk
City Council Study Session
June 26, 2025
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Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 26, 2025
PREPARED BY: Carlos Flores, AICP, Interim Deputy Director of Development Services
SUBJECT: RECEIVE DIRECTION ON FURTHER STUDY OF THE PORTOLA
AVENUE INTERCHANGE PROJECT
RECOMMENDATION:
Provide direction on including Portola Avenue/Interstate-10 Interchange Study to the General
Plan Circulation Element Update for long range mobility planning
BACKGROUND:
City staff is requesting City Council (Council) direction on whether to add a study of the Portola
Avenue/Interstate-10 Interchange (Interchange) to the ongoing Circulation Element Update
(Circulation Update) of the General Plan.
Since 2008, Council has periodically discussed construction of the Interchange project (Project),
originally estimated at $72 million. The City entered into a reimbursement agreement (C27330B)
with the Coachella Valley Association of Governments (CVAG), where CVAG committed to fund
75% of the project.
On April 21, 2021, CVAG withdrew its funding commitment.
On January 27, 2022, Council directed City staff to:
o Collaborate with CVAG to return the remaining bond proceeds escrowed for the
Project;
o Repurpose money set aside for the Project to other initiatives until construction
funding is secured for the Project;
o Continue pursuing external funding sources for the Project.
On May 26, 2022, Council approved a Memorandum of Understanding (MOU) authorizing
a new reimbursement agreement between the City, the County of Riverside, and CVAG
(Attachment 1).
Current Update
On July 11, 2024, Council approved a contract (C48060) with “Fehr & Peers” (Consultant) to
complete an amendment of the Palm Desert Mobility (Circulation) Element of the General Plan.
As part of the planning process, City staff recognized that the future of the Portola/I -10
Interchange remains a significant unresolved issue with long-term transportation and
development implications. The current Circulation Element does not identify the Interchange on
its Circulation network. However, it was included on the Circulation Element’s Truck Route Map
and traffic modeling.
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City of Palm Desert
Portola Avenue Interchange Discussion
Page 2 of 2
Given the need for a current, data-informed analysis to support future funding applications and
policy decisions, staff asked the Consultant to propose a scope of work to study the Interchange
(Attachment 2). The proposed scope of work would include:
Coordination with key stakeholders (City staff, CVAG, Riverside County Transportation
Committee);
Review and update of previous project documents, cost estimates, and funding
opportunities; and
Analysis of a “No Build” scenario to evaluate the transportation and land use impacts of
not constructing the Interchange.
City staff is seeking Council guidance on whether to include Interchange in the Circulation
Update. Incorporating the study at this stage would enable the City to:
Reassess the viability and importance of the project within the context of current
transportation priorities;
Identify updated cost projections and potential new funding sources; and
Better inform future Council decisions regarding the Interchange and long-range mobility
planning.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
No additional appropriation is required at this time. The future impact potential for adding the
Interchange into the existing contract (C48060) would be amended to include an additional
$20,000 for the proposed scope of work.
ATTACHMENTS:
1. City/CVAG Reimbursement Agreement
2. Fehr and Peers Additional Services Proposal
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Contract No. C27330131
MEMORANDUM OF UNDERSTANDING REGARDING REIMBURSEMENT AGREEMENT
BETWEEN CVAG AND THE CITY OF PALM DESERT
FOR THE
PORTOLA AVENUE INTERCHANGE AT 1-10 PROJECT
The Coachella Valley Association of Governments ("CVAG") and the City of Palm Desert
Palm Desert") are entering into this Memorandum of Understanding (this "MOU") dated as of
May 26, 2022 with reference to the following facts:
RECITALS:
A. In furtherance of that certain CVAG-City of Palm Desert, Future (Fiscal Year
2012/2013) Reimbursement Agreement, Portola Avenue/Interstate 10 Interchange
Design, Right -of -Way & Construction (the 'Reimbursement Agreement'), dated
February 28, 2008, as amended, and supplemented by that certain Bond Proceeds
Funding Agreement Regarding Portola Avenue/1-10 Interchange Project, dated April
24, 2015, Palm Desert paid to CVAG the amount of $15,000,000 and CVAG
deposited such amount into an interest bearing trust account, to be drawn upon by
CVAG for purposes of paying costs of the Interchange Project.
B. As of the date of this MOU, the amount remaining in such trust account is
14,856,463.49. Work on the Interchange Project has been suspended and CVAG
desires to return such amount remaining to Palm Desert.
NOW, THEREFORE, CVAG and Palm Desert agree as follows:
Within 30 days of the date of this MOU, CVAG shall pay to Palm Desert the
amount remaining in such trust account ($14,856,463.49), plus any accrued
interest through the date of transfer. Thereafter, upon receipt of an invoice from
CVAG for final design costs of the Interchange Project, Palm Desert shall pay
such costs in accordance with the Reimbursement Agreement, as amended.
2. CVAG and Palm Desert shall continue their efforts to complete the Interchange
Project pursuant to and in accordance with the Reimbursement Agreement, as
amended.
SIGNATURES ON NEXT PAGE]
Page 1 of 2
5
Contract No. C27330B1
IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of
Understanding to be executed by their duly authorized representatives on this date:
ATTEST CITY OF PALM DESERT
B f
L. To I-lileman gayoryornC. Harnik
City Manager
ATTEST CVAG
By: By:
Tom Kirk Christy t5ilberVolstege, EsIvExecutiveDirectorCVAGChair
Page 2 of 2
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CITY Of PRIM DESERT
73-5 I o FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2978
TEL: 760 346—o 611
info@cityofpalmdesert.org
June 23, 2022
Mr. Tom Kirk
Executive Director
Coachella Valley Association of Governments
73710 Fred Waring Drive, Suite 200
Palm Desert, California 92260
Subject: Amendment Number Three to the Reimbursement Agreement (Contract No.
C2733013) With the Coachella Vallev Association of Governments (CVAG)
and the Countv of Riverside and Memorandum of Understandina (C273301311
With Coachella Vallev Association of Government for the Desian.
Right-of-Way. and Construction Phases of the Portola Avenue/interstate 10
1-10) Interchange Proiect No. 637-02
Dear Mr. Kirk:
At its regular meeting of May 26, 2022, the Palm Desert City Council, by Minute Motion,
authorized: 1) Amendment No. 3 (C27330B) to the Reimbursement Agreement with CVAG and
the County of Riverside for the design, right-of-way, and construction phases of the Portola
Avenue/1-10 Interchange project; 2) Memorandum of Understanding (C27330B1) between CVAG
and the City regarding Reimbursement Agreement for the Portola Avenue/1-10 Interchange
project; and 3) the Mayor to execute the Agreements.
Enclosed are three original MOUs as executed by the City of Palm Desert. Once the MOU is fully
executed by your agency, please forward one original for our file. However, once the
Amendments are executed by your agency, please forward all three originals to our office and we
will ensure the County receives them for the final signatures.
If you have any question or require additional information, please do not hesitate to contact my
office.
Sincerely,
AJM/mgs
Enclosures (as noted)
cc/enc: Andy Firestine, Director of Public Works
LO.va o 0o rzo u onr e
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3750 University Avenue | Suite 225 | Riverside, CA 92501 | (951) 274-4800 | Fax (951) 684-4324
www.fehrandpeers.com
March 13, 2025
Nick Melloni and Richard Cannone
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA
92260
Subject: Additional Services Proposal for Portola Interchange Study
Dear Nick and Richard,
Fehr & Peers is pleased to submit this proposal for additional services to support the City’s
Circulation Element Update and further study of the Portola Avenue Interchange Project. Our
understanding is that the proposed interchange at Portola Avenue has completed the Caltrans
PA&ED and PS&E stages yet is on hold due to a lack of available funding. The City may be
interested in continuing the project and would like to understand the next steps required for
implementation. Additionally, the proposed development project at the northwest corner of
Portola Avenue and Dinah Shore Drive is prompting the City to ensure the necessary right-of-way
is preserved for future construction.
Scope of Work
Fehr & Peers proposes working with Mark Thomas & Company, a civil engineering firm who has
an extensive track record of working on Caltrans interchange projects in District 8 and assisting
with infrastructure funding and cost estimating.
Task 1: Meetings and Coordination
Fehr & Peers and Mark Thomas will meet virtually with City staff and any other relevant parties
(e.g. CVAG, RCTC) up to three times to discuss project status, findings, revised cost estimates, and
next steps for implementation. This scope also includes time for coordinating with relevant
agencies. We anticipate this including a kick-off meeting to discuss our approach and verify all
stakeholder’s questions are addressed, one meeting to review the results, and one additional
meeting that could include discussions with other stakeholders or presentations to Council.
Task 2: Project Document and Cost Estimates Review
Mark Thomas will review the current project documents, including the PA&ED package and the
PS&E package and identify any updates that are required. It is anticipated that, at a minimum, an
environmental revalidation process would be required since the opening year and design year
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Nick Melloni and Richard Cannone, City of Palm Desert
March 12, 2025
Page 2 of 3
horizons identified in the environmental document have changed. Additionally, the proposed
design will be reviewed and compared to the California Highway Design Manual and other
Caltrans design standards to determine any changes that need to be made.
Mark Thomas will also review the cost estimates prepared as part of the PS&E package and
update the cost estimates to 2025 dollars. This will include an assessment of the current design
and consideration of any value engineering that can be incorporated that may reduce
construction costs.
Task 3: Funding Opportunities Review
Mark Thomas will review relevant local, state, and federal infrastructure grant and funding
opportunities to identify potential funding sources for construction. This will be delivered in the
form of a funding opportunities matrix, summarizing each funding opportunity, relevant
deadlines/application cycles, and the relative competitiveness of the project for grant funding.
Task 4: “No-Build” Review and Planning Level Cost Estimates
Fehr & Peers and Mark Thomas will review the transportation impact study report for Classic Club
Specific Plan (submitted January 2025) and/or any other recent transportation impact study
provided by the City that does not assume the construction of the Portola Avenue interchange in
the future year analysis. We will provide brief comments on the level of effort required to
implement these improvements, including planning level cost estimates of these improvements.
Please note that improvements at the Cook Street and/or Monterey Avenue interchanges would
need to be fully analyzed through the Caltrans Project Development process.
Task 5: Documentation
The findings, project implementation timeline, updated cost estimates, and a funding
opportunities matrix will be summarized in a PowerPoint presentation that will be shared with the
City and presented at one virtual meeting.
Fee and Schedule
The current authorized amount for the Circulation Element Update is $139,076. Fehr & Peers
proposes an additional fee of $20,000, which is broken down by task below. The total revised
budget would be $159,076.
Task Fee
Task 1: Meetings and Coordination $3,000
Task 2: Project Document and Cost Estimate Review $5,000
Task 3: Funding Opportunities Review $5,000
Task 4: No Build Review and Planning Level Cost Estimates $5,000
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Nick Melloni and Richard Cannone, City of Palm Desert
March 12, 2025
Page 3 of 3
Task 5: Documentation $2,000
Fehr & Peers can begin work on Task 1 upon receipt of written notice to proceed. Tasks 2 through
5 can be completed within six weeks following a kick-off call.
Sincerely,
FEHR & PEERS
Jason Pack, P.E.
Principal
Brian Wolfe
Project Manager
OC24-1083
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