z 2024-12-03 CC Staff Report - CVPA JPA Discussion re Electric PowerPUBLIC SPEAKER: Brandon Marley, President and CEO with the Greater Coachella
Valley Chamber of Commerce, and La Quinta resident — provided an update on upcoming
events and ribbon cuttings, including the La Quinta Board Mixer on December 11, 2024,
at Los Arcos restaurant, the PGA Superstore opening and ribbon cutting on December
14, 2024, and the La Quinta Car Show.
CONSENT CALENDAR
1. APPROVE COUNCIL MEETING MINUTES OF NOVEMBER 19, 2024
2. AUTHORIZE OVERNIGHT TRAVEL FOR MANAGEMENT SPECIALIST TO
ATTEND THE ANNUAL LASERFICHE EMPOWER 2025 CONFERENCE IN LAS
VEGAS, NEVADA, APRIL 14-17, 2025
3. ADOPT ORDINANCE NO. 618 ON SECOND READING APPROVING ZONING
ORDINANCE AMENDMENT 2024-0001 FOR ZONING AND SUBDIVISION
CODE LANGUAGE CLEAN UP AND CHANGES REGARDING: RESIDENTIAL
SPECIAL EVENTS, TENTATIVE MAP PUBLIC HEARING NOTICES, VILLAGE
PARKING ALLOWANCES, VINYL FENCING, BED AND BREAKFAST INNS,
RESIDENTIAL GARAGE SETBACKS, TEMPORARY USE PERMIT TIMING
AND EXPIRATIONS, AND ACCESSORY DWELLING UNIT REGULATIONS;
CEQA: THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW
PURSUANT TO SECTION 15061 (b)(3) COMMON SENSE EXEMPTION;
LOCATIONS: CITYWIDE
MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Pena to
approve the Consent Calendar as presented, with Item No. 3 adopting Ordinance No.
618. Motion passed unanimously.
STUDY SESSION
1. DISCUSS DRAFT COACHELLA VALLEY POWER AGENCY (CVPA) JOINT
POWERS AGREEMENT (JPA) REGARDING GROWTH AND DEVELOPMENT
OF ELECTRIC POWER IN THE EASTERN COACHELLA VALLEY
MAYOR PRO TEM PENA RECUSED HIMSELF FROM PARTICIPATING IN THE
DISCUSSION ON STUDY SESSION ITEM NO. 1 DUE TO A CONFLICT OF
INTEREST STEMMING FROM A REASONABLE PROBABILITY OF FUTURE
INCOME AND/OR INVESTMENT INCOME FROM AN ELECTRIC POWER
COMPANY (SECURE ENERGY SOURCE), AS NOTED DURING
CONFIRMATION OF AGENDA ABOVE, AND LEFT THE DAIS AT 4:14 P.M.
Marketing and Communications Specialist Barkas presented the staff report, which is on
file in the Clerk's Office.
WRITTEN PUBLIC COMMENTS were received from La Quinta resident Philip
Bettencourt, also serving as the appointed Coachella Valley at -large commissioner on the
CITY COUNCIL MINUTES
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Imperial Irrigation District (IID) Coachella Valley Energy Commission (CVEC) in support
of the proposed CVPA JPA, which were distributed to Council, made public, published on
the City's website, and included in the public record of this meeting.
PUBLIC SPEAKER: Philip Bettencourt, La Quinta — said he has spoken to many
community organizations; this is a positive step, but the proposed CVPA JPA is not ready
for approval, it is being presented to multiple agencies for comments and feedback,
including the Coachella Valley Association of Governments (CVAG); and consensus is
very important with all stakeholders.
Council discussed the lack of capacity of the electrical grid for any new development; cost
of substations is now up to about $40 million with years lead time; City Manager working
with developers to do a group buy with City willing to front any gap in cost; the City of
Indio established the Indio Electric Financing Authority pursuant to a Joint Exercise of
Powers Agreement in 2023 and imposed a surcharge for electric services; IID will not
raise rates in La Quinta unless it also does so for Imperial County, which is unlikely;
explained solutions discussed with various entities; explained the role of a JPA;
investments in infrastructure has been lacking by IID; La Quinta, other cities, tribes
currently have no say, which is a major part of the problem that could have been avoided;
pros and cons of a JPA versus a Special District; need clear purpose and details of JPA
or Special District such as ownership of the electrical infrastructure, and maintenance;
important for the cities and tribes to solve together — strength in numbers; bonding and
taxing authority of JPAs; board and independent staff for a JPA; issues that have yet to
be worked out; concern about JPA partners leaving the Agreement causing instability;
multiple laws and regulations on utilities; an entity's input to any JPA in ratio to customers
served; system maintenance is built into rates charged, which IID has done poorly; not in
favor of community choice aggregate; head of any JPA must be highly experienced in the
energy field; energy issues throughout the world; easements for power lines periodically
renegotiated; penalties for exiting and reentering the JPA; necessity of moving forward;
Coachella Valley Water District (CVWD) is the largest user of power in the Coachella
Valley so they must be at the table; CVAG's proven ability to gather cities, coordinate joint
action, and administer JPAs; the State's focus on electric power holds back innovation
regarding other sources of power; and it is difficult for La Quinta to expand beyond tourism
industry without power.
City Manager McMillen said power grids don't have boundaries, a cohesive system is
imperative; existing substations were designed some time ago to handle expected future
needs, however the immense growth in how power is used today was not envisioned;
even small new developments or additions now exceed the grids capacity, and due to
costs in the millions, no one developer can afford the needed upgrades; entities in the
region realized their future could not be tied to IID decision makers; explained the City of
Indio's recent solution and added user fees; and noted that power shortages are not
unique to IID, but is happening across the county and the world due to the move to clean
electric power, and increased usage.
City Attorney Ihrke said he reviewed the draft JPA; much of the language is standard; the
weighted voting is not unusual for JPAs, and may be appropriate for this agreement; State
CITY COUNCIL MINUTES
Page 5 of 13 DECEMBER 3, 2024
law provides discretion as to how such agencies operate; and regarding fees and
surcharges, the California Constitution and energy laws may apply, but beyond that, the
State allows discretion to agencies providing power regarding fees.
PUBLIC SPEAKER: Emmanuel Martinez, Program Manager, External Affairs with CVAG,
formerly employed with IID — said the JPA is an interim step, a long time coming; the
purpose is for cities to jointly exercise their power; provided potential solutions being
discussed; explained one reason a JPA is being proposed is because elected officials
who are knowledgeable and have been dealing with the issue for years can sit on the
JPA board as opposed to a Special District with elected members of the public;
representation is the core of the issue; a joint Local Agency Formation Commission
(LAFCO) study was conducted, the result of which was the recommendation to form a
JPA, same for CVAG workshops; the JPA would not include IID as a member; at a critical
juncture to plan, own, and operate future solutions; explained why CVEC chose JPA over
a Special District; CVAG will likely not staff and administer the JPA long-term; explained
the draft JPA was developed by a technical committee comprised of the City Managers
who were to ensure it met the diverse needs of participating entities; explained the
weighted versus one -agency -one -vote mechanism; and noted comments received from
the Leadership Council and Riverside County.
Council discussed the importance of City Managers, and City/CVAG staff over the past
years in obtaining expertise and exploring solution, as elected City Councilmembers can
change, but staff provides consistency that is critical.
MAYOR PRO TEM PENA RETURNED TO THE DAIS AT 5:26 P.M. FOR THE
REMAINDER OF THE CITY COUNCIL MEETING
MAYOR EVANS RECESSED THE MEETING TO CITY HALL'S ANNUAL OPEN
HOUSE MEET AND GREET AT 5:26 P.M.
MAYOR EVANS RECONVENED THE CITY COUNCIL MEETING AT 6:51 P.M.
WITH ALL MEMBERS PRESENT
BUSINESS SESSION
1. APPROVE HOST VENUE AGREEMENT WITH WORLD TRIATHLON
CORPORATION TO HOST THE IRONMAN 70.3 LA QUINTA TRIATHLON
Management Analyst Calderon presented the staff report, which is on file in the Clerk's
Office.
PRESENTER: Judy Stowers, Regional Director, Southwest, for World Triathlon
Corporation — provided an overview of the IRONMAN 70.3 event, including participation,
triathlon locations, economic impacts to the communities that host these events and La
Quinta in particular, athletes general characteristics, media reach, proposed course, new
finish line at SilverRock, and effect on golf operation including setup time; the event is
open to the public, no gated entrance or charge; location options for concessions, stage
CITY COUNCIL MINUTES
Page 6 of 13 DECEMBER 3, 2024
STUDY SESSION ITEM NO. 1
City of La Quinta
CITY COUNCIL MEETINC December 3, 2024
STAFF REPORT
AGENDA TITLE: DISCUSS DRAFT COACHELLA VALLEY POWER AGENCY JOINT
POWERS AGREEMENT REGARDING GROWTH AND DEVELOPMENT OF ELECTRIC
POWER IN THE EASTERN COACHELLA VALLEY
RECOMMENDATION
Discuss the draft Coachella Valley Power Agency Joint Powers Agreement regarding
growth and development of electric power in the eastern Coachella Valley, and provide
direction.
EXECUTIVE SUMMARY
• The 99-year Agreement of Compromise (Agreement) between the Coachella
Valley Water District (CVWD) and Imperial Irrigation District (IID), making IID the
electrical service provider for the greater Coachella Valley (CV) is set to expire on
December 31, 2032.
• The IID Board is elected by registered voters within IID's jurisdictional boundary,
which is limited to Imperial County, without any representation from Riverside
County, or the Coachella Valley (CV) which accounts for approximately 65% of
IID's energy revenues.
• The proposed draft Coachella Valley Power Agency (CVPA) Joint Powers
Agreement (JPA) is a starting point in establishing an independent public agency
for Riverside County and the CV in order to give stakeholders the authority they
have long sought with regard to electrical service.
FISCAL IMPACT — None.
BACKGROUND/ANALYSIS
The 99-year Agreement between CVWD and IID, making IID the electrical service
provider for the greater CV is set to expire on December 31, 2032.
IID's Board is comprised of five officials elected by registered voters within IID's
jurisdictional boundary, which is limited to Imperial County.
Riverside County's voters are ineligible to serve on IID's Board or vote in IID's elections
even though approximately 65% of IID's energy revenues are generated by ratepayers in
the CV. This would change with the proposed formation of the CVPA via the draft JPA,
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which would have a board made up of representatives from each of the stakeholder
entities with voting power.
In July 2021, IID formed the Coachella Valley Energy Commission (CVEC), comprised of
stakeholder entities including the Cities of La Quinta, Indio and Coachella, portions of the
Cities of Palm Desert, Rancho Mirage and Indian Wells, tribes and areas of
unincorporated Riverside County, to determine the energy needs of the greater CV
beyond 2032.
After three years of meetings and study sessions that included lengthy discussions and
input from a consultant, CVEC members feel that forming the CVPA under a JPA may be
the best way forward, with administrative assistance provided by the Coachella Valley
Association of Governments (CVAG) during the startup process.
This JPA is a starting point in establishing the CVPA, an independent public agency, in
order to give stakeholders the authority they have long sought with regard to electrical
service. Each member party would have the ability to exercise powers to promote,
develop, conduct, operate, and manage energy generation and distribution in the eastern
CV toward achieving reliable, cost-effective public power.
A resolution endorsing the draft CVPA JPA was presented to CVEC on November 15,
2024, but not voted on to give Commissioners and CVAG time to get input from the
respective city councils/boards/entities involved. CVEC may vote on the resolution during
its December 12, 2024, meeting.
Increasing population, system reliability, aging infrastructure, capacity limitations, new
development, frequent service outages, and questions regarding timely implementation
of capital improvements are among concerns that have driven the need for CV
stakeholders to provide oversight on electrical service matters.
Overall system capacity is also impacting new development that can't be served by the
current substations and grid provided by IID.
IID has identified that $1.5 billion is currently needed to maintain and improve generation
and transmission capability in IID's service territory. The City has been working with
developers and IID in determining how to add substations needed for growth through a
possible cost -sharing agreement.
ALTERNATIVES
Staff proposes no alternatives as this item is for discussion.
Prepared by:
Approved by:
Sherry Barkas, Marketing and Communications Specialist
Jon McMillen, City Manager
Attachment: 1. Draft CVPA JPA
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