HomeMy WebLinkAboutRes 2026-005 RESOLUTION NO. 2026-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ESTABLISHING A CAPITAL PLANNING AND
PRIORITIZATION POLICY
WHEREAS, the Charter of the City of Palm Desert provides that the City
Administrator shall propose budget recommendations for the next fiscal year under the
direction of the Mayor and the City Council in the form, in the manner , and at a time as
the Council shall prescribe by resolution; and
WHEREAS, the City desires to formalize its current capital project planning and
funding procedures and policies; and
WHEREAS, the City's Adopted Budget and Capital Improvement Program plan
designates how all revenues shall be allocated among long-term projects, replacement
costs, and facilities; and
WHEREAS, the City desires to establish a formal capital planning and prioritization
policy to meet best practices, support fiscal transparency, and maintain fiscal
responsibility; and
WHEREAS, the City Council has been presented with a Capital Planning and
Prioritization Policy in the form attached to this Resolution as Exhibit A and by this
reference incorporated herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated
herein by this reference.
SECTION 2. The City Council hereby adopts the Capital Planning and
Prioritization Policy, attached hereto as Exhibit A.
SECTION 3. The City Manager is authorized to implement, administer, and
periodically review and update the Capital Planning and Prioritization Policy, consistent
with applicable law and City policy.
SECTION 4. The Capital Planning and Prioritization Policy shall be incorporated
into the City’s Administrative Procedures as Policy No. FIN-015.
SECTION 5. This Resolution shall take effect immediately upon adoption.
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ADOPTED ON JANUARY 22, 2026.
EVAN TRUBEE
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2026-004 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on January 22, 2026, by
the following vote:
AYES: HARNIK, NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ________________.
ANTHONY J. MEJIA
CITY CLERK
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1/23/2026
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EXHIBIT A
ADMINISTRATIVE POLICY NO. FIN-015
“CAPITAL PLANNING AND PRIORITIZATION POLICY”
CITY OF PALM DESERT
ADMINISTRATIVE PROCEDURES
Subject Capital Planning and Prioritization Policy
Policy No. FIN – 015
Date Issued: January 22, 2026
Approved by Resolution No. 2026-005 Authorizing a Capital
Planning and Prioritization Policy
Authored by Finance Department
I.PURPOSE
A Capital Plan (Capital Improvement Program) is a multi-year financial plan that lists and
describes capital projects a local government plans to undertake, indicates how projects
will be funded and projects the effect of the plan on key financial variables. The CIP
reflects the City’s financial plan for repair, replacement, rehabilitation, and construction of
municipal infrastructure and major assets that enhance value, prolong useful life, or adapt
assets to new uses.
A Capital Project results in the acquisition or increased value of a capital asset (e.g. land,
land improvements, infrastructure and equipment, etc.).
The Government Finance Officers Association (GFOA) recommends that state and local
governments prepare and adopt comprehensive, fiscally sustainable, multi -year capital
plans. A multi-year capital plan is intended to identify and prioritize expected capita l needs
based on strategic priorities and operational needs, establish project scope and cost,
detail estimated amounts of funding from various sources, and project future operating
and maintenance costs.
The Government Finance Officers Association (GFOA) also recommends that state and
local governments establish an objective process for prioritizing capital improvement
projects, to give decision-makers a basis for choosing the most compelling projects for
funding and implementation.
II. POLICY STATEMENT
The City shall adopt a multi-year Capital Plan spanning at least five years in conjunction with
the annual budget and five -year financial planning processes. The Capital Plan should include
all of the City’s planned capital projects. To qualify as a capital project, the asset must comply
with Administrative Policy No. FIN-008 Capital Asset Management, Section V.
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The Capital Plan should incorporate the following elements as relevant and appropriate:
a. Assessment of the physical condition of existing capital assets;
b. Economic development projections, strategic plans, comprehensive plans, facility
master plans and regional plans, including changes in federal, state, and county policy
and regulations;
c. Prioritization of capital needs; and
d. Financial strategies and sources of funding: 1) for the acquisition or improvements
associated with the project, and 2) for the subsequent annual operation and
maintenance costs of the capital asset throughout its life.
III. PRIORITIZATION OF CAPITAL NEEDS
The City shall adopt an objective process of prioritizing capital improvement projects to
ensure consistency with the General Plan, and in conjunction with the annual budget
process or otherwise as capital funding becomes available, using the following fac tors:
1. Risk to Health, Safety and Environment:
a. Avoids or minimizes the risk to health, safety and environment associated with
the infrastructure based on condition assessment of the asset, or the lack of
an asset, that may include the age, size, material, capacity, and history of
failure of the infrastructure; and
b. Urgency of the project to reduce the potential hazards to the public, property
and environment.
2. Regulatory or Mandated Requirements:
a. Projects required to meet federal, state, or local laws; regulatory agency requirements;
permit conditions; settlement agreements; grant conditions; or adopted codes and
standards.
b. These projects are prioritized ahead of discretionary projects due to legal, operational,
and liability impacts.
c. Departments must provide supporting documentation identifying the requirement,
compliance deadline (if applicable), and consequences of noncompliance.
3. By legal mandate or consent decree;
a. By other regulatory requirements (project specific or programmatic), and
b. Must comply with court orders and settlements or avoids plausible legal claims.
4. Asset Condition, Annual Recurring Costs and Asset Longevity:
a. Existing conditions and capacity to meet the basic level of service is deficient;
b. Avoids potential failure due to substandard conditions;
c. Improves the overall reliability of the capital asset and infrastructure system;
d. Major implications of delaying the project such as significant future costs, or
negative community impacts;
e. Extent to which reduces City operations and maintenance expenditures; and
f. Increases the longevity of the capital asset or extends the useful life of the
asset in the long term.
5. Community Investment and Economic Prosperity:
a. Contributes toward economic development and revitalization efforts;
b. Reduces or avoids impacts to the community when infrastructure fails;
c. Benefits under-served communities including those with low income
households, low community engagement and low mobility or access to
transportation systems; and
d. Located in a census tract that is deemed eligible for Community
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Development Block Grant (CDBG) funds.
6. Level and Quality of Service:
a. Improves existing conditions and capacity to meet the minimum level and
quality of services that is deficient;
b. Addresses an infrastructure or facility deficit identified in a community plan; and
c. Addresses the need to install new facilities or improve existing facilities to
provide access to City services
7. Sustainability and Conservation:
Improves the health of the community and natural environment through
sustainable designs with improved regional air quality and reduced
greenhouse gas emission that contributes to climate change.
8. Funding Availability:
Rank is increased based on assessment of the amount of funding needed to
complete the current project phase and the entire project.
9. Project Readiness:
a. Ready to enter the phase corresponding to the funding proposed;
b. Delivered most expeditiously shall be preferred; and
c. Complex environmental issues or known significant legal challenges shall be
scored lower than projects without said complications.
10. Multiple Category Benefit and Bundling Opportunities:
a. Fulfills the prioritization factors described above across multiple scoring categories;
b. Reduces construction costs by potentially bundling with adjacent projects; and
c. Provides for partnering or bundling opportunities with other local, state, or federal
agencies (e.g. leverages shared resources).
Implementation of this Policy is not intended to release or alter the City’s current or
future obligations to complete specific capital improvement projects by specified
deadlines, as may be imposed by court order, or order of any federal, state or local
regulatory agency.
IV. REQUIRED INFORMATION FOR PROJECT SUBMITTAL
Departments will submit new projects with at least:
• Problem statement and scope
• Location and affected assets
• Condition/service data or best proxy
• Risk/safety impacts and ADA implications
• Climate resilience and sustainability impacts
• Cost estimate including all of the following:
1) Planning and Pre Development
2) Design and Engineering
3) Land, ROW & Site Acquisition
4) Permits, Regulatory and Compliance
5) Construction
6) Construction and/or Project Management
7) Testing, Inspecting & Quality Assurance
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8) Furnishing, Fixtures, Equipment
9) Utitilies, Connections & Service Upgrades
10) Contingency and allowances
11) Financing and Debt Issuance Costs (if any)
12) Operations, Start Up & Closeout
13) Maintenance, Lifecycle and Replacement Reserves
• Funding sources identified + leverage potential (revenue generation)
• Bundling/Multi-Asset Benefit
• Phase readiness and delivery constraints
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V. DEFINITIONS
Capital Asset: Non-financial assets that are used in operations and have an initial useful
life in excess of one year.
Capitalization Threshold: The minimum cost which an asset must exceed in order to be
capitalized.
CIP (Capital Improvement Project): Any expenditure for the purchase, construction,
replacement, addition or major repair of public facilities and major equipment.
City: The City of Palm Desert, the City of Palm Desert Housing Authority, the Palm Desert
Public Library, the Successor Agency to the Palm Desert Redevelopment Agency, any
community facilities district, any community services district or any other agency affiliated
with the City of Palm Desert.
City Council: Shall mean the City Council, Housing Authority Board, Library Board, or
Successor Agency to the Palm Desert Redevelopment Agency Board, or board of any
community services district or community facilities district, as appropriate.
City Manager: Shall mean the City Manager, Housing Authority Executive Director,
Library Executive Director, or Successor Agency to the Palm Desert Redevelopment
Agency Executive Director, or head of any community services district or community
facilities district, as appropriate, or his or her designee.
Real Property: Land and land improvements, buildings and building improvements,
infrastructure, improvements other than buildings, intangible assets - permanent and
temporary easements, works of art / historical treasures, and construction in progress.
Useful Life: The amount of time that an asset is expected to provide benefit.
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