1 00:00:11,759 --> 00:00:18,160 Good afternoon. This is a call and notice of a special meeting of the Ranch 2 00:00:15,679 --> 00:00:23,039 Mirage City Council and Community Services District, Energy Authority, 3 00:00:20,080 --> 00:00:29,359 Housing Authority, Joint Powers, Finance Authority, Library and Observatory, and 4 00:00:25,119 --> 00:00:35,440 Redevelopment Successor Agency boards. May I please have a flag salute? Council 5 00:00:32,399 --> 00:00:41,920 member While, >> please head over your heart and repeat 6 00:00:39,040 --> 00:00:47,680 after me. I pledge allegiance to the flag of the United States of America and 7 00:00:45,040 --> 00:00:55,079 to the republic for which it stands, one nation under God, indivisible, with 8 00:00:50,800 --> 00:00:55,079 liberty and justice for all. 9 00:00:57,920 --> 00:01:03,120 Madame clerk, will you uh conduct roll call, please? 10 00:01:01,440 --> 00:01:05,360 » Certainly. Council member DS, >> I'm here. 11 00:01:03,680 --> 00:01:07,119 » Council member Framberg Edelstein, >> here. 12 00:01:05,840 --> 00:01:08,880 » Council member While >> here. 13 00:01:07,600 --> 00:01:10,400 » Mayor Prom O'Keefe >> here. 14 00:01:09,280 --> 00:01:14,640 » And Mayor Molatto >> here. 15 00:01:12,799 --> 00:01:21,360 We're going to jump right to the action items. We'll take public comments after 16 00:01:18,640 --> 00:01:24,960 uh the presentation of the item now. So, I'll defer to the city manager at this 17 00:01:23,200 --> 00:01:29,600 time. Thank you, Madame Mayor, members of the council. I appreciate your 18 00:01:26,720 --> 00:01:34,640 flexibility in this special meeting. Uh this uh item had some urgency to it. Uh 19 00:01:32,880 --> 00:01:41,360 as we all know, this has been a long road. Uh taken several years to get here 20 00:01:37,759 --> 00:01:46,320 and we know the vital importance of uh the needed capacity in this area of our 21 00:01:43,520 --> 00:01:50,399 city or else development will cease. And so, as we've discussed before, uh we've 22 00:01:48,799 --> 00:01:56,720 partnered with other governmental entities and other uh development 23 00:01:52,399 --> 00:02:01,520 partners to co-und a uh substation to service the IID service uh territory 24 00:01:59,200 --> 00:02:05,680 within the city of Rancho Mirage. Uh that substation will be located on 25 00:02:03,280 --> 00:02:11,920 Burger Foundation land uh north of the freeway off of Cook. And uh the initial 26 00:02:08,959 --> 00:02:17,280 substation is 78 megawatts of power. There it includes a 50 megawatt trans 27 00:02:15,440 --> 00:02:24,160 transformer and a 28 megawatt transformer. Uh within that IID reserves 28 00:02:20,879 --> 00:02:32,000 20% of the total capacity uh for its needs uh send uh system redundancy and 29 00:02:27,599 --> 00:02:39,440 reliability and so we can only use 80% uh of that capacity for projects. uh iid 30 00:02:36,080 --> 00:02:45,120 is helping to fund the project at 18% with the participants remaining the uh 31 00:02:42,319 --> 00:02:50,560 funding the remaining amount and based on our relevant share of the available 32 00:02:48,000 --> 00:02:56,000 capacity. Uh the purpose of today's meeting was in previous approvals the 33 00:02:53,040 --> 00:03:01,200 council authorized up to 15 megawatts of participation for the city of Rancho 34 00:02:57,760 --> 00:03:04,800 Mirage. uh one of the uh partners within the agreement, the development partners 35 00:03:03,200 --> 00:03:12,480 was not ready to move forward with their project and so they backed out of uh the 36 00:03:08,319 --> 00:03:17,599 agreement and so that uh left 8.55 megawws available for the remaining 37 00:03:15,120 --> 00:03:22,640 participants and how the agreement works is the current participants have first 38 00:03:19,599 --> 00:03:27,599 bite at that capacity. So the county of Riverside decided to 39 00:03:24,640 --> 00:03:32,239 take two additional megawws. Uh the city of Ranch Mirage went from 10 back up to 40 00:03:29,920 --> 00:03:39,440 its 15 megawatts as approved by the council. Uh that left a remaining 1.55 41 00:03:36,799 --> 00:03:43,280 megawws that was unaccounted for. And so the purpose of today's action is to 42 00:03:41,040 --> 00:03:48,879 request the city council to consider taking that additional 1.55 megawws uh 43 00:03:46,720 --> 00:03:54,080 which would bring our total from the 15 uh megawws to 16.55. 44 00:03:52,239 --> 00:03:59,360 uh at the end of the day after we reviewed a project list with IID um we 45 00:03:57,840 --> 00:04:04,400 are probably the best participant to take this capacity due to the amount of 46 00:04:01,200 --> 00:04:10,959 projects that we have and uh I was able to speak with the uh developers of uh 47 00:04:08,560 --> 00:04:16,000 the medical facility that was entitled by the council uh on the corner of 48 00:04:13,200 --> 00:04:20,079 Gerald Ford and Bob Hope and this additional capacity would allow the city 49 00:04:18,239 --> 00:04:23,919 to work with that developer to allow that project to move forward. 50 00:04:21,919 --> 00:04:27,120 uh without this additional capacity that project would not be allowed to move 51 00:04:25,440 --> 00:04:31,919 forward because they could not obtain a will service letter from IID. When we 52 00:04:30,560 --> 00:04:36,240 think of our city and economic development, a medical use is critically 53 00:04:34,000 --> 00:04:40,960 important in our community uh not only from a youth standpoint for our 54 00:04:37,759 --> 00:04:44,320 residents but also good high-paying jobs uh and it fits well with the other 55 00:04:42,400 --> 00:04:49,199 medical uses along the Bob Hope corridor. And so by taking this 56 00:04:46,400 --> 00:04:53,680 additional 1.55, we can now work with that developer. the developer is fully 57 00:04:51,759 --> 00:04:58,160 on board with reimbursing the city for these capacity costs for their project 58 00:04:56,160 --> 00:05:02,880 because as I stated before without capacity these projects would not be 59 00:05:00,080 --> 00:05:07,520 allowed to move forward. And so the way that this agreement would work is we 60 00:05:04,880 --> 00:05:13,039 would have a total share of 16.55 megawws. Um a little over half of that 61 00:05:11,039 --> 00:05:18,160 is going to be reserved for our affordable housing efforts up by our dog 62 00:05:15,120 --> 00:05:21,840 park. So approximately 700 units of affordable housing is planned up there 63 00:05:20,080 --> 00:05:26,240 and they do not have the capacity either. So that was the origination of 64 00:05:23,520 --> 00:05:29,680 this agreement. Uh and as we look at other development partners, the 65 00:05:27,680 --> 00:05:32,880 additional capacity uh just like the project I referenced on the corner of 66 00:05:31,120 --> 00:05:37,199 Gerald Ford and Bob Hope would be required to reimburse the city for their 67 00:05:34,960 --> 00:05:41,759 proportionate share of the capacity that they uh need for their projects and this 68 00:05:39,680 --> 00:05:45,759 would enable development to continue in this section of our city. Uh staff 69 00:05:44,160 --> 00:05:52,880 report notes that the total agreement cost is estimated at $9.3 million. Uh 70 00:05:50,160 --> 00:05:56,880 after uh reimbursements and other funds and sources, staff is anticipating that 71 00:05:55,039 --> 00:06:01,680 the net impact on the general fund will be between $2 and $3 million. With that, 72 00:05:59,440 --> 00:06:05,759 I'd be happy to uh answer any questions or comments, and I'll ask the city clerk 73 00:06:03,280 --> 00:06:09,560 at this time to take any public comment. >> Thank you, Brad Anderson. 74 00:06:13,680 --> 00:06:20,240 Thank you. Uh my name is Brad Anderson. I currently live in the city of Vance 75 00:06:18,080 --> 00:06:25,280 Mirage and I wanted to speak on item 3A today which is the only item on the 76 00:06:21,840 --> 00:06:30,479 agenda. Um I'm I'm opposed. I did write some comments and I see somebody else 77 00:06:27,360 --> 00:06:37,280 did too and I share the views of the other person that took the time to 78 00:06:33,680 --> 00:06:43,039 write. Uh this is a burden for the city. It has been from the beginning. uh being 79 00:06:40,160 --> 00:06:48,560 one of two people that sat on the energy commission or Coachella Valley Energy 80 00:06:45,280 --> 00:06:56,560 Commission which was a joke for two two to three years now. I know that this 81 00:06:52,400 --> 00:07:03,440 this is just an avenue uh for developers not to upfront cost and have taxpayers 82 00:06:59,759 --> 00:07:09,599 do it instead. and and I understand that uh the city manager had time to speak 83 00:07:05,440 --> 00:07:14,720 with u one developer uh which I'm aware of um 84 00:07:12,400 --> 00:07:19,680 but didn't have time to uh really agendaize this uh for the next regular 85 00:07:17,360 --> 00:07:24,639 meeting which is I understand you have a 30-day window 86 00:07:22,000 --> 00:07:29,360 which is amper time for a regular city council meeting to be held a special 87 00:07:26,960 --> 00:07:37,560 meeting as I stated in my written comments is unnecessary 88 00:07:31,520 --> 00:07:37,560 and and and really I guess uh 89 00:07:38,000 --> 00:07:47,840 abuse of your authority to call special meetings. So, u I I I I've have issues 90 00:07:45,280 --> 00:07:53,520 with the city now and this is one more uh that you need to correct, but I don't 91 00:07:51,039 --> 00:08:01,039 think you will because this is power power corrupts and the city wants more 92 00:07:56,560 --> 00:08:06,800 power. So, I'm opposed to this. Um, and for I understand the city manager 93 00:08:03,919 --> 00:08:12,160 made comments concerning uh highpaying jobs and so forth, but then we have 94 00:08:09,599 --> 00:08:18,160 apartment buildings going in too. So, and for the working force apparently. 95 00:08:13,919 --> 00:08:23,759 So, it's all colluded. Um, so I I I guess I really can't emphasize 96 00:08:21,120 --> 00:08:30,080 how bad this is for the city and as being stewards of the city resources. 97 00:08:26,319 --> 00:08:33,039 This is bad stewardship. Thank you. >> Thank you for your comments. 98 00:08:31,599 --> 00:08:36,000 » And seeing no other members of the public in the audience, that was the 99 00:08:34,320 --> 00:08:43,519 only speaker. >> Thank you. Council comments, we'll start 100 00:08:38,479 --> 00:08:48,959 with uh Council Member Steve DS. >> I think that it's critical that we take 101 00:08:45,279 --> 00:08:54,240 this additional 1.55 megawws. uh we don't have enough power to service the 102 00:08:51,519 --> 00:08:59,680 projects that are are uh predicted to come on stream over the next few years 103 00:08:56,720 --> 00:09:02,800 as it is. So if we don't do this uh not only do we have a problem with 104 00:09:01,040 --> 00:09:05,920 affordable housing in that part of the city but we have a problem with other 105 00:09:04,320 --> 00:09:09,200 development that's to come along. So I don't think we have a choice. This is an 106 00:09:07,040 --> 00:09:12,399 important thing for us to do and um it's also the case that most of the 107 00:09:10,640 --> 00:09:17,680 developers who come on board in the future will help to offset the cost uh 108 00:09:14,880 --> 00:09:21,680 to the city of uh adding this additional uh power source. So uh this is something 109 00:09:20,240 --> 00:09:25,839 that we have to do. >> Are there any other comments? Council 110 00:09:24,240 --> 00:09:33,040 member while >> yes I think it's a just a great 111 00:09:28,959 --> 00:09:40,800 opportunity uh for us. Uh it allows us to fulfill our responsibility 112 00:09:37,200 --> 00:09:46,720 uh in delivering the required number of affordable housing units 113 00:09:43,519 --> 00:09:52,080 uh that was in the plan uh that has been approved by the state. 114 00:09:49,360 --> 00:09:58,640 And so this allows us to move forward on that plan. And in addition to that, as 115 00:09:54,880 --> 00:10:03,920 the city manager just mentioned, uh the additional 116 00:10:01,279 --> 00:10:15,040 um medical facility uh at uh Frank Sinatra and Bob Hope 117 00:10:09,120 --> 00:10:24,000 Bob Hope and Gerald Ford um will uh be imperative for uh not only the use uh of 118 00:10:20,160 --> 00:10:33,279 uh the medical facility but also uh the employment of staff. So it uh it 119 00:10:30,160 --> 00:10:38,399 provides the need for both of those critical areas and I'm just uh delighted 120 00:10:36,640 --> 00:10:42,959 we have the opportunity. Thank you, Mayor. 121 00:10:39,920 --> 00:10:48,640 » Thank you, Council Member Framberstein. I think well I concur with both of my 122 00:10:46,000 --> 00:10:54,079 fellow council members and I think it can't be stressed enough how important 123 00:10:51,440 --> 00:10:59,360 it is for job creation here. We don't have a readily available amount of of 124 00:10:57,360 --> 00:11:04,800 job opportunities. We don't have large corporations and just from the 125 00:11:01,920 --> 00:11:08,959 standpoint of the future of the city for creating job opportunities so people 126 00:11:06,800 --> 00:11:14,160 can live and work in this city. That's the critical reason to do it. And I 127 00:11:11,600 --> 00:11:18,480 think that we are going to look back in 10 to 15 years and be thankful that we 128 00:11:16,880 --> 00:11:23,120 jumped on these opportunities when we did for what it will bring for the 129 00:11:20,000 --> 00:11:26,640 future residents of Rancho Mirage even more than what it's doing for the 130 00:11:24,399 --> 00:11:31,360 present- day residents of Rancho Mirage. And um I think that this is the kind of 131 00:11:29,200 --> 00:11:35,519 future planning that we're lucky enough we have the ability to engage in and we 132 00:11:33,839 --> 00:11:38,320 have the resources available. This is why we have these funds. This is why 133 00:11:36,880 --> 00:11:43,040 we've worked so hard to become the city. We've become financially solvent and 134 00:11:41,360 --> 00:11:46,640 with these funds for these opportunities. Exactly. That may pass 135 00:11:44,959 --> 00:11:53,079 other cities by. We're blessed that we can do it. So, I fully believe in this. 136 00:11:49,279 --> 00:11:53,079 Mayor Prommo O'Keefe. 137 00:11:53,279 --> 00:12:01,120 » Um I agree with all my colleagues. Um I believe this is a phenomenal 138 00:11:59,279 --> 00:12:05,920 opportunity, but not only an opportunity, but investment in our 139 00:12:04,320 --> 00:12:11,760 community. um not only now but in the future 140 00:12:08,720 --> 00:12:18,480 whether it has to do with uh uh affordable housing, economic 141 00:12:14,160 --> 00:12:22,160 development, and it sets the city puts the city in an excellent position to 142 00:12:20,560 --> 00:12:27,839 move forward with the projects that we've committed to that our public has 143 00:12:24,560 --> 00:12:34,800 asked us to do, our business community has asked to move forward. And it is um 144 00:12:32,720 --> 00:12:39,760 it's a win-win all the way around. And I'm so grateful that the city of Ranch 145 00:12:36,399 --> 00:12:42,639 Mirage has the financial ability uh to make this happen. So with that, I ask a 146 00:12:42,160 --> 00:12:46,959 motion. >> Madame Mayor, if I may add on to council 147 00:12:44,959 --> 00:12:50,320 member Eve Framberg, Edstein's comment about in 10 to 15 years, we'll be 148 00:12:48,560 --> 00:12:53,279 delighted that we've done this. In 10 to 15 years, we're going to find that we're 149 00:12:51,519 --> 00:12:56,079 going to need to scale up this project. Not only will we be happy we did it 150 00:12:54,800 --> 00:12:59,200 today, we're going to have to add more to it, and it's going to be well within 151 00:12:57,680 --> 00:13:03,440 that 10 to 15 year period that we'll have to do that. 152 00:13:00,880 --> 00:13:06,800 » Agreed. May I have a motion, please? I'll be happy to make a motion that the 153 00:13:05,120 --> 00:13:11,360 uh council approve the funding and reservation of capacity agreement for 154 00:13:08,320 --> 00:13:15,680 Cook Street Substation, the 16.55 megawatt allocation and authorize the 155 00:13:13,680 --> 00:13:19,519 city manager or designate to execute the agreement subject to revisions approved 156 00:13:17,600 --> 00:13:22,639 by all other parties and approved by the city manager in consultation with the 157 00:13:21,680 --> 00:13:27,399 city attorney. >> I'll second. Please vote. 158 00:13:28,320 --> 00:13:34,160 » Motion carries 5-0. >> Wonderful. 159 00:13:32,160 --> 00:13:37,160 With that, we'll adjourn today's meeting.