Rancho Mirage City Council Special Meeting, February 20, 2026

Transcript text

AI transcript text.

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