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HomeMy WebLinkAboutPost-Meeting Agenda Package - StudySession_Aug20_2026 PALM DESERT CITY COUNCIL, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, HOUSING AUTHORITY, AND BOARD OF LIBRARY TRUSTEES STUDY SESSION MEETING STUDY SESSION POST-MEETING AGENDA Thursday, August 20, 2026 2:00 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 Senate Bill 707, 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. WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website: https://palmdesert.zoom.us/ or on the City's YouTube Channel. OPTIONS FOR PARTICIPATING IN THIS MEETING: OPTION 1: IN PERSON Attend in person in the Council Chamber, located at 73510 Fred Waring Drive, Palm Desert, California 92260. OPTION 2: VIA EMAIL Send your comments by email to: CityClerk@palmdesert.gov. Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the record and distributed to the City Council. Emails will not be read aloud at the meeting. OPTION 3: LIVE VIA ZOOM Access via https://palmdesert.zoom.us/j/83367449572 or zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572. OPTION 4: LIVE VIA TELEPHONE Call (213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #. Pages City Council Study Session March 26, 2026 2 1.CALL TO ORDER - STUDY SESSION 2.STUDY SESSION TOPICS 2.a Introduction of the Commercial Compliance Program and Request for City Council Feedback 5 2.b Progressive Design-Build Procurement Update and Project Delivery Approach for the New Palm Desert Library Facility 23 3.ADJOURNMENT 4.PUBLIC NOTICES Pursuant to Senate Bill 707, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person. Members of the public may record open session meetings. Recording may be limited only if the manner of recording causes a persistent disruption due to noise, illumination, or obstruction of view. 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 City Hall, 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 “Meetings & Agendas” at the top of the page. Americans with Disabilities Act: It is the intention of the City of Palm Desert to 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 will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Quiet Space Accommodation: Individuals with disabilities who require access to a quiet space in order to participate in the meeting are encouraged to notify the City Clerk. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I, Michelle Nance, 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, CMC Assistant City Clerk City Council Study Session March 26, 2026 3 4 Page 1 City of Palm Desert Staff Report Meeting Date: August 20, 2026 Prepared By: Paul Villanueva, Senior Code Compliance Officer Jesus Centeno, Senior Code Compliance Officer Department: Development Services Subject: Introduction of the Commercial Compliance Program and Request for City Council Feedback Recommendation Receive a presentation regarding the Commercial Compliance Program for discussion of the program’s objectives, priorities, and administrative framework; and provide feedback to staff regarding implementation. Executive Summary With the addition of a dedicated Commercial Code Compliance Officer this fiscal year, commercial code compliance has become a more focused component of the City’s overall code compliance efforts. Historically, commercia l compliance activities were addressed as part of broader code compliance operations. The current Commercial Compliance Program provides an opportunity to establish a more intentional, proactive, and consistent approach to commercial properties while supporting the City Council’s goal of maintaining a clean, safe, and attractive community. The program emphasizes education, outreach, and voluntary compliance while maintaining fair and consistent enforcement when necessary. Through proactive inspections and d irect engagement with business and property owners, staff will work collaboratively to identify and address concerns related to public health and safety, property maintenance, and the overall appearance of commercial properties. This Study Session provides an opportunity for the City Council to review the program, provide feedback on its approach and priorities, and ask questions as staff prepares for implementation. Background Without a dedicated routine inspection program, commercial enforcement was generally incorporated into officers’ broader daily workloads and prioritized based on observed conditions, service requests, and the severity of potential violations. This approach addressed immediate compliance concerns but limited opportunities to ident ify issues early, establish consistent inspection cycles, and build ongoing partnerships with businesses and commercial property owners. Recognizing the importance of maintaining safe, attractive, and code-compliant commercial corridors, the City authorized additional staffing through the creation of a dedicated Code Compliance Officer position assigned to the commercial areas. This additional capacity allows the Division to conduct regular inspections of commercial properties, engage directly with 5 Page 2 businesses and property representatives, provide education regarding municipal requirements, and address potential violations before they become more significant concerns. Discussion The Commercial Compliance Program and administrative framework includes:  Promoting voluntary compliance through education, outreach, and reasonable opportunities to correct violations.  Building partnerships with businesses, property owners, and community stakeholders.  Protecting public health, safety, accessibility, and community standards.  Ensuring fair, consistent, and transparent enforcement of municipal regulations.  Supporting safe, attractive, and economically vibrant commercial areas. The program will begin with education and communication to encourage compliance. When voluntary efforts are unsuccessful or immediate health and safety concerns exist, staff will utilize appropriate enforcement measures. The Commercial Compliance Program includes the following focus areas:  Business License Compliance – Verify licensing requirements and promote lawful business operations.  Zoning Compliance – Address land use, operational, and property-related zoning concerns.  Zero Blight Program – Respond to property maintenance issues and quality-of-life concerns, including: o Property and building maintenance o Trash, debris, and nuisance conditions o Unlawful outdoor storage, sales, or displays o Abandoned or inoperable vehicles o Shopping cart management o Signage and temporary banner compliance o Landscaping and exterior lighting o Vacant or abandoned commercial properties  Homelessness Response in Commercial Areas – Coordinate with outreach teams and service providers to address impacts in commercial corridors.  Entertainment Site Plan Compliance – Ensure compliance with approved entertainment uses and operating requirements.  Commercial Fire Inspection Coordination – Support inspections addressing occupancy, emergency access, and life-safety concerns. The Commercial Compliance Program will focus initial implementation efforts on key commercial corridors throughout the City. The program will prioritize areas with significant 6 Page 3 commercial activity, a mix of land uses, and opportunities to enhance property maintenance, compliance, and overall corridor appearance. The focus areas will include:  North Palm Desert – Washington Corridor: Primarily commercial areas requiring proactive compliance efforts related to property maintenance, business operations, and corridor appearance.  North Palm Desert – Monterey Corridor and I-10 Area: Commercial areas where proactive outreach and inspection efforts can support economic activity and property maintenances.  North Palm Desert – Cook Street Corridor and I-10 Area: Key commercial and industrial areas where coordinated compliance efforts can support consistent compliance and property maintenance.  Central Palm Desert – Cook Street Corridor: A mixed commercial and industrial area requiring coordinated attention to business compliance, site conditions, and regulatory requirements.  El Paseo and Highway 111 Commercial Corridors: High-visibility commercial districts where maintaining attractive, safe, and well-managed properties is essential to supporting the City’s economic vitality and destination reputation. Staff will use these focus areas to establish program procedures, bui ld relationships with businesses and property owners, identify common compliance challenges, and evaluate program effectiveness. Staff requests feedback from the City Council on any additional goals or measures the City Council would like staff to consider. Legal Review This report has been reviewed by the City Attorney’s Office. Financial Impact There is no fiscal impact associated with this item. Attachments 1. Study Session PowerPoint Presentation 7 Page 4 Conflict of Interest Awareness Checklist Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulation s. 1. Site-Specific Property Interest Does this item involve a project site or other identifiable real property? ☐ Yes ☒ No If yes, identify the project site: Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2). 2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract? ☐ Yes ☒ No If yes, identify the applicant(s), appellant(s), party, or participant(s): Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 8 Commercial Compliance Program •Education •Partnership •Compliance 9 Commercial Compliance Program Objectives 2 •Encourage voluntary compliance with municipal codes through education, outreach, and proactive engagement •Foster collaborative partnerships with businesses and property owners for long-term compliance. •Ensure fair, consistent, and transparent compliance practices. 10 Why now? 3 Implementation of the proactive Commercial Compliance Program. •Dedicated Code Compliance Officer provides focused oversight. •Proactive outreach and education with businesses and property owners. •Early identification and resolution of compliance issues. •Resolve issues proactively before they escalate. 11 Program Vision 4 Education • Partnership • Compliance •Promote voluntary compliance through education and proactive outreach. •Build strong relationships with businesses and property owners. •Preserve safe, attractive, and vibrant commercial areas. 12 Core Program Components 5 Commercial Compliance Program Areas –Business License Compliance –Zoning Compliance –Zero Blight Program –Outreach Response in Commercial Areas –Entertainment Site Plan Compliance –Commercial Fire Inspection Coordination 13 Business License & Zoning Compliance 6 Supporting business operations through education, monitoring, and consistent compliance. Business License Compliance •Verify active business licenses for commercial operations. •Business License Inspections •Identify and address unlicensed business activity. •Assist businesses with licensing requirements and renewals. Zoning Compliance •Verify compliance with approved land uses and zoning regulations. •Investigate unauthorized uses and occupancy issues. •Address outdoor storage, site maintenance, and operational violations. •Coordinate with Planning on land use and entitlement 14 Zero Blight & Outreach Services 7 Maintaining clean, safe, and accessible commercial corridors through coordinated response. •Property and building maintenance •Trash, debris, and nuisance conditions •Unlawful outdoor storage, sales, or displays •Abandoned or inoperable vehicles •Shopping cart management •Signage and temporary banner compliance •Landscaping and exterior lighting •Vacant or abandoned commercial properties •Collaborative response to quality-of-life concerns in commercial areas 15 Entertainment, Fire & Regulatory Compliance 8 Coordinated inspections to promote public safety and regulatory compliance. •Conduct coordinated Commercial Business Inspections •Monitor Entertainment Site Plans and Temporary Use Permits (TUPs). •Coordinate Commercial fire inspections (Occupancy and emergency access requirements). •Conduct regulatory massage establishment inspections. •Monitor regulatory cannabis compliance inspections. •Verify tobacco retailer compliance inspections. 16 Branding & Outreach Strategy 9 Building Awareness & Partnerships with Business Districts –Develop a dedicated Commercial Compliance webpage and educational materials –Provide information in the Weekly Administrative Report (WAR) for tracking and reporting –Collaborate with El Paseo Business Improvement District and local business partners. –Build strong communication channels with businesses and property owners. 17 Phase 1 Commercial Compliance Corridor (El Paseo, Hwy 111) 10 18 Phase 2 Commercial/Industrial Zones North Palm Desert Monterey North Palm Desert Cook Corridor Corridor 11 19 Phase 3 Commercial/Industrial Zone Continued North Palm Desert, Washington Central Palm Desert Cook Corridor Corridor 12 20 City Council Feedback 13 Staff requests feedback from the City Council: 1.Are there additional goals or measures the City Council would like staff to consider? 21 Questions? Paul Villanueva Senior Code Compliance Officer Jesus Centeno Senior Code Compliance Officer August 20, 2026 22 Page 1 City of Palm Desert Staff Report Meeting Date: August 20, 2026 Prepared By: Ryan Lamb, Senior Project Manager Department: Capital Projects Subject: Progressive Design-Build Procurement Update and Project Delivery Approach for the New Palm Desert Library Facility Recommendation Receive an update regarding the Progressive Design-Build procurement process for the New Palm Desert Library Facility and provide feedback regarding the preferred design approach prior to formal City Council consideration. Executive Summary This Study Session provides City Council with an update on the Progressive Design -Build procurement process for the New Palm Desert Library Facility and an opportunity to provide feedback on the design approaches developed through the Design Validation phase. No contract award, budget amendment, or financial action is requested at this time. Following issuance of the Request for Proposals, the City received six proposals from Progressive Design-Build teams. The procurement process has included review and evaluation of the proposals, preparation of Design Validation Reports by the three highest - ranked teams, and multiple rounds of interviews with the Selection Committee. The process i s intended to evaluate each team's qualifications, project approach, technical capabilities, design concepts, and demonstrated ability to successfully deliver the project in accordance with the City's established evaluation criteria. Council’s feedback regarding the design approach and project priorities will help inform the next phase of the project as staff advances the procurement process. Staff anticipate returning to City Council at its September meeting with a formal recommendation for award of the Progressive Design-Build contract. Any contract award associated budget action, or other financial authorization will be presented to City Council for consideration at that time. Specifically, staff requests Council feedback regarding the preferred design direction for the project, including whether the Progressive Design-Build team ultimately selected by the City should:  Continue development of the existing Richärd Kennedy schematic design, maintaining the established architectural vision and project layout; or  Utilize the Progressive Design-Build process to refine and modify the schematic design, where appropriate, to improve constructability, cost efficiency, long-term operations, and overall project value while maintaining the approved program objectives. 23 Page 2 Background The New Palm Desert Library Facility has progressed through several major milestones since conceptual planning began. Date Project Milestone March 28, 2024 City awarded conceptual design services to Richärd Kennedy Architects. February 27, 2025 Schematic Design was completed, and cost estimates were used to establish the City’s approved total project budget of approximately $30 million. November 13, 2025 City Council awarded a progressive design-build contract to Tilden-Coil Constructors, Inc. March 26, 2026 City Council approved Amendment No. 1 to Tilden-Coil’s contract to compensate for completed preconstruction/design services, add demolition of the Parkview Office Building, and conclude Tilden-Coil’s remaining design-build scope. April 20, 2026 City released a new Request for Proposals for progressive design-build services. May 21, 2026 Six proposal submissions were received. June 15, 2026 First round of interviews with three shortlisted proposers were conducted. Selection Committee selected two firms to return for second interviews. July 7, 2026 Second interviews with two shortlisted proposers were conducted. Analysis The Progressive Design-Build procurement process was structured to identify the best team to partner with the City in delivering a library facility that satisfies the City's program requirements while effectively managing cost, schedule, constructability, and long-term operational considerations. This approach emphasizes qualifications and collaboration rather than price alone, recognizing that the selected team will participate in design refinement prior to development of a Guaranteed Maximum Price. Consistent with the Request for Proposals, the Selection Committee evaluated firms based upon their qualifications, relevant experience, project team, technical approach, understanding of the project, interview performance, and overall ability to successfully deliver a project of this size and complexity. The committee included representatives from Capital Projects, Finance, Library Services, and the City's Construction Manager, consistent with the multidisciplinary evaluation process previously used to select Richärd Kennedy Architects for Conceptual Design Services. Following the first round of interviews, the Selectio n Committee determined that the two highest-ranked firms were closely matched and that additional interviews would provide greater confidence before selecting the City's long-term Progressive Design-Build partner. The second interviews focused on each team 's design philosophy, collaborative approach, cost management, value engineering methodology, constructability, risk management, and overall strategy for delivering the project through the Progressive Design-Build process. 24 Page 3 Because Progressive Design-Build relies upon collaboration during Phase 1, staff believe it is appropriate to obtain City Council feedback regarding the desired level of design refinement before bringing forward a contract award recommendation. Next Steps Following this Study Session, staff will incorporate City Council feedback regarding the overall project direction, desired level of design refinement, and budget expectations. Staff anticipate returning to City Council in September 2026 with a recommendation for award of the progressive design-build contract, an updated project budget and any necessary financing actions for Council consideration. Legal Review This report has been reviewed by the City Attorney’s Office. Financial Impact There is no financial impact associated with receiving this Study Session update. No contract award, budget amendment, or additional appropriation is requested at this time. Attachments 1. Presentation to be provided prior to the meeting. 25 Page 4 Conflict of Interest Awareness Checklist Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations. 1. Site-Specific Property Interest Does this item involve a project site or other identifiable real property? ☒ Yes ☐ No If yes, identify the project site: 73-710 Fred Waring Drive Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2). 2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franch ise agreement that is not competitively bid, a labor agreement, or a personal employment contract? ☐ Yes ☒ No If yes, identify the applicant(s), appellant(s), party, or participant(s): Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 26 From:Nancy Rubin To:CityClerk Subject:8/20/26 City Council Meeting Date:Wednesday, August 19, 2026 4:09:50 PM Dear Council Members, As a full-time resident of Palm Desert, I am pleased the city is moving forward with plans for the new library. We have donated a Celestron telescope, checked out ebooks, taken arts classes and one of our greatest local pleasures is playing Chinese Mah Jongg on Tuesday afternoons. Please ensure the new library has community rooms to accommodate the current and growing number of Mah Jongg players now and during snow bird season. Your serious consideration is appreciated. Nancy & Marshall Rubin nancyqoe 27 28 29 30 New Library Facility Update City Council Study Session August 20, 2026 1 31 Agenda •How We Got Here •Procurement Update •Strategic Options •Project Funding •Next Steps 2 Richärd Kennedy Architects 32 How We Got Here 3 Richärd Kennedy Architects (RKA) was awarded contract for Conceptual Design Mar. 2024 Conceptual design was completed & total project budget of $30 million was approved​ June 2025 Council awarded a progressive design-build contract to Tilden- Coil Constructors, Inc.​ Nov. 2025 Council approved Amendment No. 1 to Tilden-Coil’s contract for completed preconstruction services & demo of the Parkview Office Building​ Mar. 2026 City released a new Request for Proposals for progressive design-build services​ Apr. 2026 City received 6 proposals with 3 proposers selected for interviews Parkview Office Building demolished & site secured May 2026 Three design validation reports were submitted & 1st round of interviews were conducted with the 3 shortlisted firms​ June 2026 2nd round of interviews were conducted with the 2 shortlisted firms​ July 2026 33 How We Got Here 4 Richärd Kennedy Architects (RKA) was awarded contract for Conceptual Design Mar. 2024 Conceptual design was completed & total project budget of $30 million was approved​ June 2025 Council awarded a progressive design-build contract to Tilden-Coil Constructors, Inc.​ Nov. 2025 Council approved Amendment No. 1 to Tilden-Coil’s contract for completed preconstruction services & demo of the Parkview Office Building​ Mar. 2026 City released a new Request for Proposals for progressive design-build services​ Apr. 2026 City received 6 proposals with 3 proposers selected for interviews Parkview Office Building demolished & site secured May 2026 Three design validation reports were submitted & 1st round of interviews were conducted with the 3 shortlisted firms​ June 2026 2nd round of interviews were conducted with the 2 shortlisted firms​ July 2026 34 How We Got Here 5 Richärd Kennedy Architects (RKA) was awarded contract for Conceptual Design Mar. 2024 Conceptual design was completed & total project budget of $30 million was approved​ June 2025 Council awarded a progressive design-build contract to Tilden-Coil Constructors, Inc.​ Nov. 2025 Council approved Amendment No. 1 to Tilden-Coil’s contract for completed preconstruction services & demo of the Parkview Office Building​ Mar. 2026 City released a new Request for Proposals for progressive design-build services​ Apr. 2026 City received 6 proposals with 3 proposers selected for interviews Parkview Office Building demolished & site secured May 2026 Three design validation reports were submitted & 1st round of interviews were conducted with the 3 shortlisted firms​ June 2026 2nd round of interviews were conducted with the 2 shortlisted firms​ July 2026 35 How We Got Here 6 Richärd Kennedy Architects (RKA) was awarded contract for Conceptual Design Mar. 2024 Conceptual design was completed & total project budget of $30 million was approved​ June 2025 Council awarded a progressive design-build contract to Tilden-Coil Constructors, Inc.​ Nov. 2025 Council approved Amendment No. 1 to Tilden-Coil’s contract for completed preconstruction services & demo of the Parkview Office Building​ Mar. 2026 City released a new Request for Proposals for progressive design-build services​ Apr. 2026 City received 6 proposals with 3 proposers selected for interviews Parkview Office Building demolished & site secured May 2026 Three design validation reports were submitted & 1st round of interviews were conducted with the 3 shortlisted firms​ June 2026 2nd round of interviews were conducted with the 2 shortlisted firms​ July 2026 36 How We Got Here 7 Richärd Kennedy Architects (RKA) was awarded contract for Conceptual Design Mar. 2024 Conceptual design was completed & total project budget of $30 million was approved​ June 2025 Council awarded a progressive design-build contract to Tilden-Coil Constructors, Inc.​ Nov. 2025 Council approved Amendment No. 1 to Tilden-Coil’s contract for completed preconstruction services & demo of the Parkview Office Building​ Mar. 2026 City released a new Request for Proposals for progressive design-build services​ Apr. 2026 City received 6 proposals with 3 proposers selected for interviews Parkview Office Building demolished & site secured May 2026 Three design validation reports were submitted & 1st round of interviews were conducted with the 3 shortlisted firms​ June 2026 2nd round of interviews were conducted with the 2 shortlisted firms​ July 2026 37 Design-Builder Procurement Update 38 9 Design-Builder Procurement Update 6 Proposals Received ↓ 3 Firms Shortlisted ↓ First-Round Interviews Completed ↓ 2 Highest-Ranked Firms Advanced ↓ Second-Round Interviews Completed •Evaluation Criteria •Qualifications •Relevant Experience •Project Team •Technical Approach •Understanding of the Project and the City’s needs •Interview Performance •Design Philosophy •Collaborative approach •Cost Management •Value Engineering Methodology •Overall project delivery strategy 39 10 Value Engineering –Design & Construction 40 11 Value Engineering –Design & Construction •Single Building •Steel Reduction o Exterior shade structure o Tilt-up concrete and/or wood framing o Acoustic baffle ceiling •Reduce Building height •Simplified site work •Eliminate raised floors •More cost-effective finishes •Store front windows 41 12 Value Engineering –Programming & Operations •Revisions: o Re-allocate building square footage Remove Café & Demonstration Kitchen Increase Multi-purpose Conf. Room More general storage and add Archive Storage Bring the Visitor Center into the Lobby Back-of-house working area modifications o Re-assess Furniture, Fixtures & Equipment o Taller fixed book stacks •Value: o Reduced cost per square foot o Reduced operating costs o More efficient staffing model 42 13 Building Architecture Concepts Progressive Design-Builder RFP Presentations 43 14 Building Architecture Richärd Kennedy Architects’ Design Progressive Design-Builder RFP Presentation44 Strategic Options 45 16 Cost Escalation •2023–2024 Coming out of pandemic shortages, prices didn't drop; they stabilized at a permanent, much higher baseline. Baseline escalation averaged 4% to 6% annually. •2025 Massive federal funding from infrastructure acts and a boom in private tech infrastructure and manufacturing tightly squeezed regional labor markets and mechanical equipment procurement. •2026 Material inflation hit 9% year-over-year, driven by renewed geopolitical conflicts that spiked energy/freight costs and new tariff uncertainties. ENR's material cost index alone sits at +8.5% annually, while construction wages climbed +4.9%. •Timely Decision-Making:In a rapidly escalating construction market, timely decisions are essential to controlling costs. Maintaining momentum allows the City to secure current pricing, preserve purchasing power, and maximize value. o https://enrcostdata.com/cost-indexes o https://edzarenski.com/category/forecast/ o https://news.constructconnect.com/construction-material-inflation-outpaces-bid-prices Strategic Options 46 Strategic Options 17 Estimated Costs Previous PD-B Contract Tilden-Coil Constructors RKA’s Design Option 1 New PD-B Firm RKA’s Design Option 2 New PD-B Firm Revise Design Design-Builder Cost $50 million $45 million $37 million Soft Cost*$10 million $10 million $8 million Total Project Cost $60 million $55 million $45 million Cost Savings -$5 million $15 million *Design, Engineering, Project & Construction Management, FF&E, Utility and Agency Fees, Contingencies, Etc. 47 Project Funding 48 Project Budget & Funding 19 Project Budget: $ 20M Capital Bond Funds $ 4M County of Riverside $ 6M Measure G Funds $ 30M Currently approved Other Funding Opportunities: •Undesignated General Fund Balance •CIP Reserves •Financing •Grants Potential Additional Funding Available: $ 4M Planned Future Measure G (5-yr. plan) $ 8.5M FYE 25/26 Fund Balance $ 7.5M Capital Bond Funds from re-prioritized projects $20M Total Available 49 Study Session Present project delivery options to City Council (Today) 1 Design -Builder Evaluations Final evaluations & negotiations 2 Design and Construction Selected firm will complete final design with construction complete Fiscal Year 2028/29 Contract Award Recommendation for award to City Council in September 2026 43 20 Next Steps 50 21 Recap •Design-Builder Procurement o Staff to recommend award of contract for new design-builder in September Scope of work to be evaluated based on feedback from this Study Session •Project Delivery Options o Council’s feedback requested for project delivery options Advance the RKA design Revised project design •Budget o $30M approved funding o $20M potential additional funding available Estimated Costs Option 1 New PD-B Firm RKA’s Design Option 2 New PD-B Firm Revise Design Design-Builder Cost $45 million $37 million Soft Cost $10 million $8 million Total Project Cost $55 million $45 million 51 Questions & Comments 52 Thank You Ryan Lamb Senior Project Manager rlamb@palmdesert.gov 53