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2022 05 09 CC Minutes Special Meeting - Joint 3 Cities re IID CITY COUNCIL MINUTES Page 1 of 3 MAY 9, 2022 SPECIAL MEETING – JOINT WITH CITIES OF INDIO AND COACHELLA SPECIAL JOINT MEETING CITY COUNCILS OF LA QUINTA, INDIO and COACHELLA MINUTES MONDAY, MAY 9, 2022 CALL TO ORDER A special meeting of the La Quinta City Council was called to order at 3:08 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: La Quinta Councilmembers John Peña, Robert Radi, Steve Sanchez, Mayor Pro Tem Kathleen Fitzpatrick, and Mayor Linda Evans ABSENT: None STAFF PRESENT: La Quinta City Manager Jon McMillen, City Attorney William H. Ihrke, City Clerk Monika Radeva, Acting Deputy City Clerk Laurie McGinley CITY OF INDIO: Councilmembers Elaine Holmes, Glenn Miller, Lupe Ramos-Amith, Mayor Pro Tem Oscar Ortiz, Mayor Waymond Fermon, City Manager Bryan Montgomery, City Attorney Roxanne Diaz, and City Clerk Sabdi Sanchez CITY OF COACHELLA: Councilmembers Megan Beaman Jacinto, Denise Delgado, Neftali Galarza, Mayor Pro Tem Josephine Gonzalez, Mayor Steve Hernandez, City Manager Gabriel Martin, City Attorney Carlos Campos, and City Clerk Andrea Carranza IMPERIAL IRRIGATION DISTRICT (IID): IID Director JB Hamby, General Manager Henry Martinez, and Associate General Counsel Jamie Asbury CITY COUNCIL MINUTES Page 2 of 3 MAY 9, 2022 SPECIAL MEETING – JOINT WITH CITIES OF INDIO AND COACHELLA RIVERSIDE COUNTY BOARD OF SUPERVISORS: Supervisor V. Manuel Perez and Chief Operating Officer Juan Perez PLEDGE OF ALLEGIANCE Mayor Evans led the audience in the Pledge of Allegiance. CONFIRMATION OF AGENDA – Confirmed STUDY SESSION 1. DISCUSS ELECTRICAL INFRASTRUCTURE NEEDS AND FINANCING MECHANISMS FOR THE COACHELLA VALLEY CITIES WITHIN THE IMPERIAL IRRIGATION DISTRICT SERVICE TERRITORY La Quinta City Manager McMillen and Indio City Manager Montgomery presented the staff report, which is on file in the Clerk’s Office. Officials discussed the degree to which Riverside County staff is engaged in discussions; mapping of existing and potential substations on County land; understanding the totality of the upgrades needed to produce the projected 540 megawatt capacity output in 10 years including substations, transmission lines and generation plants; identifying funding from each city, rate-payers and IID, and funding mechanisms such as bonds and developer impact fees; short-term means to add some capacity to existing substations; the role of a financing authority; resolving ownership of system upgrades; possibility of cities pre-ordering equipment due to supply chain delays of two to three years; expectation that cities and the unincorporated county area would address the need and cost of substations within their jurisdictions, and IID would thereafter maintain the entire Coachella Valley-wide system; the pros and cons of utilizing mini/micro grids that are installed, owned and maintained by either a city or a developer; viability of a public/private funding solution; excess capacity needed in place in order for cities to attract developers; conveying to existing residents/rate-payers the current critical situation, and the benefits of upgrades to them in the future; importance of taking immediate steps to address short-term needs, and begin taking concrete steps to reach long-term goals; estimated percentage of a city’s investment that would be paid by developers, and percentage that would be paid by rate increases; the mutual benefits in jobs and quality of life to neighboring cities when each city grows, improves and develops – acknowledgement that cities are codependent with connected destinies; the type and duration of bond issues for the upgrades; how historic low IID energy rates have lead to this CITY COUNCIL MINUTES Page 3 of 3 MAY 9, 2022 SPECIAL MEETING – JOINT WITH CITIES OF INDIO AND COACHELLA crucial moment when action is essential; timing and details of how a Joint Powers Agreement (JPA) would work among the cities; the current IID process for reviewing requests for new service; La Quinta’s specific equipment need for future growth, and currently overloaded transformers; Mayors and City Managers from each city on the IID Energy Consumers’ Advisory Committee (ECAC) will continue to work on this, and welcome all interested Councilmembers and residents to attend; use of IID’s Rate Stabilization Fund; the cost, impacts, and value of undergrounding utilities; caution to insure a city does not overbuild capacity resulting in unused/unreimbursed capacity/cost paid by residents; pressures for growth in the Coachella Valley are not expected to cease; the need for Riverside County staff to engage in discussions; foresight needed now by residents and leaders for future growth and quality of life; next steps for cities to examine their needs, resources and desire to participate in this regional project, and to hold meetings to obtain feedback from their residents; setting the next joint meeting for June 2022 once collective staff has gathered additional information; suggestion to include in the discussion, the areas of Salton City, Desert Shores and Bombay Beach, which are outside the Coachella Valley/ Imperial County; and gratitude by Councilmembers to the City Managers, ECAC Committee Members and IID, and statements of support for the plan they developed and for continued swift progress. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None ADJOURNMENT There being no further business, a motion was made by La Quinta Councilmember Radi and seconded by a show of hands of all attending Mayors and Councilmembers to adjourn at 4:40 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California