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[00:00:01]

>> GOOD AFTERNOON, EVERYBODY.

LINDA EVANS MAYOR OF THE CITY OF LIQUID TO. I LIKE TO WELCOME YOU TO THE SPECIAL

[1. CALL TO ORDER AND ROLL CALL]

MEETING OF THE CITY COUNCILS BETWEEN THE QUINTO, COACHELLA AND INDIA.

THIS IS A VIRTUAL MEETING UNDER STATE ORDER DUE TO THE GOVERNOR'S ORDINANCE AS WELL AS 80 361.

WE DO HAVE ACCESSIBILITY TO THE PUBLIC VIA WRITTEN COMMENTS, ZOOM, AND RAISING. (INDISCERNIBLE) ARE CITY CLERK CAN EXPLAIN MORE. MONICA, IF YOU LIKE TO DO THAT? HOW TO RAISE HANDS FOR COMMENTS? WOULD YOU LIKE TO DO THAT NOW, MONICA?

>> WE'RE GOING TO DO THAT IN JUST A SECOND. I APOLOGIZE.

>> OKAY.

WITHOUT FURTHER DELAY, WE WILL GO AHEAD AND CALL THE MEETING TO ORDER.

WE WILL GO WITH ROLL CALL, PLEASE.

ROLL]

>> WELCOME TO THE STUDY SESSION (INDISCERNIBLE). WE WILL NOT BE TAKING FORMAL ACTION. WE WILL JUST BE HEARING INFORMATION REGARDING (INDISCERNIBLE), AS WELL AS

(INDISCERNIBLE). >> (INDISCERNIBLE).

>> THANK YOU VERY MUCH. I APPRECIATE (INDISCERNIBLE).

OUR PARTNERS WITH IID, AND THANK YOU, TODAY, TO THE INTERPRETERS TO MAKE SURE WE HAVE COMMUNICATION WITH ALL OF OUR CONSTITUENTS THROUGHOUT OUR EASTERN COACHELLA VALLEY. WITH THAT, IF YOU WOULD PLEASE RISE.

I BELIEVE WE HAVE A FLAG THERE SO WE CAN DO THE PLEDGE OF ALLEGIANCE.

READY TO BEGIN? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.

I MOVED TO CONFIRMATION (INDISCERNIBLE) AGENDA, ANY CHANGES BY CITY STAFF?

>> NO CHANGES, THE QUINTO.

>> OKAY. THIS IS A STUDY SESSION.

[3. DISCUSSION ITEMS]

SO AS MAYOR NOTED, (INDISCERNIBLE) (INDISCERNIBLE). I NEED TO SAY THAT ONE MORE TIME.

TO DISCUSS ELECTRICAL INFRASTRUCTURE NEEDS (INDISCERNIBLE) FOR THE COACHELLA VALLEY CITIES, DISTRICT SERVICE TERRITORY. WHAT WE WOULD LIKE TO DO THIS AFTERNOON IS (INDISCERNIBLE) FOR THE PURPOSE OF THIS MEETING. I'LL HAVE OUR CITY MANAGER TALK ABOUT SOME OF THE CURRENT STATES OF ELECTRICITY AND SUPPLY (INDISCERNIBLE) SOME FINANCING MECHANISMS THAT HAVE BEEN DISCUSSED AMONGST THE (INDISCERNIBLE) CITY MANAGERS IN THE PAST AND RECENTLY PRESENTED TO THE COACHELLA CITY VALLEY (INDISCERNIBLE).

>> YES, WE CAN (INDISCERNIBLE) WHENEVER

YOU ARE READY. >> GO AHEAD AND DO THAT NOW, PLEASE.

>> I APOLOGIZE (INDISCERNIBLE).

OKAY. (INDISCERNIBLE)

[00:05:08]

YOU CAN JOIN US EITHER THE COMPUTER, IPAD, (INDISCERNIBLE) PUBLIC COMMENTS BY THE PRESIDING OFFICER. (INDISCERNIBLE) THE BEFORE NUMBER BEFORE YOU, 253-21-5782 AND ENTERED THE MEETING ID NUMBER. PLEASE USE THE*NINE FEATURE TO RAISE YOUR HAND. (INDISCERNIBLE) (INDISCERNIBLE) AND THE RAISE YOUR HAND FEATURE WILL BE AT THE CENTER, LOWER PORTION OF YOUR COMPUTER.

IF YOU ARE USING AN IPHONE, THE RAISE YOUR HAND FEATURE IS GOING TO BE THE THREE LITTLE DOTS, OR…, (INDISCERNIBLE).

>> I REALLY APPRECIATE THE FACT THAT WE'VE GOTTEN ALL THREE CITIES TOGETHER.

WE'VE GOT THE ENTIRE COUNSEL TOGETHER TO GATHER TO DISCUSS SOME IMPORTANT ISSUES, AND THAT'S OUR ENERGY SUPPLY, RELIABILITY, CAPACITY AND GROWTH.

NOT ONLY NOW BUT IN THE FUTURE.

THERE IS (INDISCERNIBLE).

WE HAVE MET SINCE AUGUST OR SEPTEMBER OF LAST YEAR, AND HAVE DEVELOPED THREE DIFFERENT SUBCOMMITTEES -- ECONOMIC GROWTH COMMITTEE AS WELL AS GOVERNANCE.

AS WE ADDRESS THE CONCERNS WE HAVE ALL EXPRESSED IN THE C ENVIRONMENTAL MEETING, WHEN THE LEGISLATION WAS FIRST INTRODUCED BY (INDISCERNIBLE) FOR GOVERNANCE AND REGIMENTATION, WE QUICKLY LEARNED THROUGH OUR EDUCATION SESSIONS AND INTERACTIONS WITH IID THAT WHILE WE HAVE ENJOYED LOW RATES FOR SOME TIME, WE LOOK AT WHAT THE LONG-TERM PLAN IS. NOT ONLY GOING FORWARD NOW, BUT EVEN BEYOND THE COMPROMISED AGREEMENT.

WE ARE LEARNING A LOT MORE ABOUT HOW WE ARE PROBABLY GOING TO NEED TO PULL TOGETHER AND FIND SOME COLLECTIVE SOLUTIONS. I KNOW EACH OF US PROBABLY HAVE SOME OF OUR OWN DIRECTION IN CERTAIN AREAS.

THIS IS AN OPPORTUNITY FOR US TO SHARE SOME INFORMATION EXPLORED THUS FAR.

AGAIN, NO DECISION-MAKING OR ACTION ITEMS. I ALSO WANT TO SHARE BEFORE I TURN IT OVER TO JOHN THAT LAB COAT DID HAVE A SPECIAL MEETING TODAY AT 1:00.

THE SOLE PURPOSE WAS TO HOPEFULLY TRY TO FINALIZE THE INFAMOUS AGREEMENT WITH THE STATE WATER RESOURCES BOARD, TO BEGIN THE STUDY THAT WAS PART OF THE BILL THAT WHILE THE BILL FOR GOVERNANCE WAS VETOED, (INDISCERNIBLE) TO CONDUCT A STUDY TO HELP FIND SOLUTIONS FOR ENERGY SOURCES GOING FORWARD.

THERE'S BEEN A LOT OF BACK-AND-FORTH ON THE NEGOTIATIONS OF THAT AGREEMENT.

BUT A MOTION WAS MADE AND UNANIMOUSLY PASSED TO HAVE THE EXECUTIVE DIRECTOR EXECUTE THAT AGREEMENT ON BEHALF OF RIVERSIDE LEFT OUT.

THE GOAL IS THAT AGREEMENT GETS SIGNED BY THE END OF TODAY OR TOMORROW BY RIVERSIDE. IT WILL GET SENT THEN TO IMPERIAL BOARD OF SUPERVISORS. (INDISCERNIBLE).

HOPEFULLY, THAT STUDY WILL COMMENCE WITHIN THE NEXT FEW MONTHS.

AND WE'LL LEARN MORE AND THERE WILL BE SEVERAL STAKEHOLDER MEETINGS, WHICH WILL INCLUDE ALL OF US TO MANY OTHERS AS PART OF THAT PROCESS.

WITH THAT, JOHN, I'LL TURN IT OVER TO YOU. START WITH A LITTLE BIT OF THE BACKGROUND AND HISTORY.

>> EXCELLENT. THANK YOU, MADAM MAYOR.

HONORABLE MAYORS AND COUNCIL MEMBERS OF THE THREE CITY, MEMBERS OF THE PUBLIC.

I'M HERE WITH BRIAN MONTGOMERY, CITY OF INDIO. DOCTOR GABRIEL MARTIN, CITY OF COACHELLA. I NOTICE WE HAVE JB HANBY, VICE PRESIDENT OF THE BOARD. HENRY MARTINEZ, THE GENERAL MANAGER.

WE ARE IN THE NEED OF POWER INFRASTRUCTURE UPGRADES FOR RELIABILITY, REDUNDANCY AND ECONOMIC VIABILITY. ABOUT THE SAME TIMES THE CBC WAS FORMED, WE STARTED HAVING MEETINGS BETWEEN THE THREE CITY MANAGERS AND IID, BEING HENRY MARTINEZ AND HIS STAFF, TO DISCUSS VARIOUS PROJECTS THAT OUR DEVELOPERS WERE COMING TO OUR VARIOUS CITIES AND ASKING FOR.

GOT A LOT OF PROJECTS ON THE BOARD.

LA QUINTA RIGHT NOW HAS 46 PROJECTS ON THE BOARD, LOOKING AT A 5 TO 10 WINDOW.

MINA, IF YOU COULD START THE SLIDE PRESENTATION? PROVIDE A LITTLE BIT OF THE AREA WE ARE TALKING ABOUT.

>> REAL QUICK, I JUST WANT TO SAY WE ALSO HAVE COUNCILMEMBER PEREZ WHO HAS JOINED OUR CALL AS WELL. SO THANK YOU VERY MUCH (INDISCERNIBLE).

[00:10:02]

>> THANK YOU, EVERYBODY.

>> HERE IS THE SERVICE AREA THAT WE ARE TALKING ABOUT WITH REGARDS TO IID'S ENERGY POWER DISTRIBUTION IN THE COACHELLA VALLEY. THAT'S THE AREA OUTLINED IN RED.

THE CITY OF INDIA OH, COACHELLA AND LA QUINTA ARE PRIMARILY IMPACTED BY IID.

OBVIOUSLY, IID IS PROVIDING BOTH POWER AND WATER TO IMPERIAL.

AND THEY ALSO PROVIDE SOME POWER TO RIVERSIDE COUNTY.

THIS MAP, YOU KNOW, SHOWS IT IS CERTAINLY A LARGE AREA.

WE HAVE INDIAN WELLS AND A LOT OF THE OTHER CITIES. AND THEY ARE ON POWER BEING PROVIDED FROM SOCAL (INDISCERNIBLE).

NEXT SLIDE, PLEASE. >> IT'S NOT CHANGING FOR ME.

I APOLOGIZE. THERE WE GO.

>> ALL RIGHT.

THIS IS REALLY WHAT WE WERE TALKING ABOUT WITH RESPECT TO THE VARIOUS CITIES MEETING WITH HENRY MARTINEZ AND HIS STAFF ON A MONTHLY BASIS.

TO DISCUSS THE POWER NEEDS FOR OUR INDIVIDUAL CITIES.

YOU CAN SEE HERE, THE CITY OF INDIO.

THE RED DOTS THAT YOU SEE ARE THE EXISTING SUBSTATIONS.

THE LARGE GREEN DOTS ARE NEEDED NEW SUBSTATIONS. IN THE SMALL GREEN DOTS ARE UPGRADES TO SUBSTATIONS THAT ARE NEEDED.

THAT IS WHAT'S REALLY REQUIRED TO GET EITHER NEW DEVELOPMENT, SYSTEM RELIABILITY, OR REDUNDANCY INTO THE POWER GRID HERE IN THE CITY OF INDIO.

I'VE LEARNED HERE RECENTLY, IN RECENT DISCUSSIONS AS EARLY AS LAST WEEK, WHAT IT MEANS WITH EACH ONE OF THESE VARIOUS SUBSTATIONS. EITHER FROM SCRATCH OR AN UPGRADE.

AN UPGRADE IS $11-$12 MILLION PRICE TAG. THAT GETS YOU 20 MEGAWATTS OF POWER.

AND A NEW SUBSTATION CAN BE IN THE $23-$28 MILLION RANGE.

THE TRANSFORMERS REQUIRED FOR THESE SUBSTATIONS, CURRENTLY, BECAUSE OF SUPPLY CHAIN ISSUES, ARE COSTING BETWEEN $2 MILLION-$3 MILLION, 18 MONTH LEAD TIME. END OF LAST WEEK, IID STARTED RECEIVING SOME QUOTES FROM VARIOUS PROVIDERS THAT THE LEADTIME COULD BE AS MUCH AS 142 WEEKS. THAT'S NEARLY 3 YEARS TO GET THE TRANSFORMER REQUIRED FOR AN UPGRADE, OR FOR A NEW SUBSTATION BUILD.

AND WHEN YOU HAVE A SMALL PROJECT COMING INTO YOUR COMMUNITY, AND THEY HAVE TO DO AN UPGRADE, IF THEY ARE FACED WITH A THREE YEAR LEADTIME JUST TO GET POWER, THAT PROJECT MAY GO SOMEWHERE ELSE. AT ANY RATE, NEXT SLIDE, PLEASE.

THIS IS THE CITY OF LA QUINTA.

THE CITY OF LA QUINTA HAS ONE NEW SUBSTATION REQUIRED AND FOR UPGRADES.

IF WE DO THE MATH, THAT'S $25 MILLION FOR A NEW ONE, ON AVERAGE.

AND THAT'S FOR UPGRADES AT 12 MILLION APIECE. ROUGHLY $70 MILLION OF SUBSTATIONS THAT ARE REQUIRED HERE IN THE CITY OF LA QUINTA. THE CITY OF COACHELLA IS FACED WITH A SIMILAR SITUATION.

NEEDING FIVE NEW SUBSTATIONS AND TO UPGRADES. THAT'S A TOTAL OF $149 MILLION, ROUGHLY. AND THE TIMEFRAME TO BUILD AND GET THIS UNDERWAY, YOU KNOW, THESE ARE THREE YEARS OUT IN ORDER TO GET THE REQUIRED PARTS. SO AT ANY RATE, THESE ARE SOME OF THE THINGS WE ARE FACING.

THE INFRASTRUCTURE AND WHAT I NOW KNOW ABOUT POWER, IT'S VERY AMAZING.

FIRST OFF, THE IID STAFF HAS BEEN EXTREMELY HELPFUL IN EXPLAINING THIS PROCESS. THE REQUIREMENTS OF BALANCING AN ELECTRICAL SYSTEM, BUT IT TAKES TO BUILD THIS KIND OF INFRASTRUCTURE.

SHARING WITH US HOW THEY'VE LOOKED AT THIS, WHAT SOLUTIONS THERE MIGHT BE OUT THERE. IT'S CERTAINLY A VERY COMPLICATED SYSTEM. WE ARE LEARNING THINGS ABOUT ENERGY CREEP, WHICH IS BASICALLY THEY MAY LOOK AT THE SYSTEM A YEAR AGO AND THINK THAT THERE IS ENOUGH POWER IN THIS ONE

[00:15:01]

TRANSFORMER FOR FIVE MEGAWATTS IN ADDITION. SO YOU COULD GET A SMALL DEVELOPMENT -- YOU COULD PUT 60 OR 80 HOMES.

ALL OF A SUDDEN, WITH COVID, EVERYBODY STAYED HOME. POWER DEMANDS WENT UP.

PEOPLE WERE USING MORE ENERGY.

THEY WERE RUNNING THEIR COMPUTERS.

THEY HAD THEIR AIR CONDITIONER ON ALL DAY LONG. PEOPLE WERE BUYING ELECTRIC CARS.

ALL OF THIS IS ADDING TO ENERGY CREEP.

SO WHERE THEY MAY HAVE HAD FIVE MEGAWATTS OF EXCESS POWER A YEAR, TWO OR THREE AGO? NOW, TODAY, THEY DON'T HAVE THAT EXTRA POWER. SO IT'S EVER-CHANGING.

IN THESE AREAS THAT THESE SUBSTATIONS PROVIDE POWER TO, PLUS ACROSS CITY BOUNDARIES. SO THERE IS A NEED FOR ALL OF US TO WORK TOGETHER ON THESE ITEMS, BECAUSE THEY AFFECT ALL OF US.

THAT GIVES YOU A LITTLE PICTURE OF WHAT'S OUT THERE. NOW, WE'VE BEEN CONCENTRATING ON THE SUBSTATIONS.

BUT AT THE END OF THE DAY, AND LEARNING THAT THERE IS ROUGHLY 540 MEGAWATTS OF POWER DEMAND ON THE BOOKS, FOR THE NEXT TENURE BUILD OUT IN THE COACHELLA VALLEY, THAT WOULD REQUIRE NOT ONLY THE SUBSTATIONS, BUT THAT WOULD REQUIRE TRANSMISSION LINE UPGRADES -- AND ACTUALLY, ADDITIONAL GENERATION.

SO THERE IS A BIG NEED HERE FOR INFRASTRUCTURE. IT SEEMS LIKE WE ARE AT THAT POINT IN TIME WHERE THE LOW COST OF POWER HAS CAUGHT UP WITH US. WE DON'T HAVE THE INFRASTRUCTURE WE NEED. AND WE ARE REALLY AT A CRITICAL POINT WHERE WE REALLY NEED TO MAKE IT HAPPEN.

WITH THAT, I LIKE TO TURN IT OVER TO BRIAN MONTGOMERY, FROM THE CITY OF INDIO, TO PROVIDE SOME IDEAS ON WHAT

THE SOLUTIONS MIGHT BE. >> SORRY ABOUT THAT! OUR TIME ON MUTING! THANK YOU, JOHN. YOU'VE SET THAT UP VERY WELL.

I THINK DR.

MARTIN, AS WELL, MY OTHER CITY MANAGER COLLEAGUE FOR THE COLLECTIVE EFFORT THAT WE'VE ALL BEEN A PART OF. AND WORKING WITH THE EXCELLENT STAFF OF IID. I WANT TO COMMEND IID AND THE STRONG PERSONNEL THAT THEY HAD TO GUIDE US THROUGH THIS PROCESS.

IID'S EFFORT TO CREATE THE COACHELLA VALLEY ENERGY COMMISSION HAS REALLY SET THE STAGE FOR THIS TYPE OF CONVERSATION. IT'S BEEN INSTRUMENTAL IN SETTING FORTH A DIALOGUE. DIRECTORS HANKS AND (NAME), AS WELL AS MAYOR EVANS ARE SERVING TO TRY TO GET US PAST WHERE WE ARE PRESENTLY, IN ADDRESSING THIS VERY CRITICAL ISSUE.

AND AGAIN, AS JOHN HAS INDICATED, THIS IS A MATTER OF RELIABILITY, REDUNDANCY, SAFETY. AS WELL AS ECONOMIC VITALITY.

I THINK IT'S IMPORTANT FOR ALL OF US POLICYMAKERS TO UNDERSTAND THAT THIS IS NOT JUST FOR NEW GROWTH.

IN FACT, THAT MIGHT JUST BE A SIDE BENEFIT OF WHAT'S TRYING TO BE ACHIEVED IN THE EFFORT TO DEVELOP THESE SUBSTATIONS THAT JOHN WENT THROUGH.

SO I JUST WANTED TO TALK ABOUT THIS FINANCING MECHANISM THAT HAS BEEN PRESENTED TO THE (INDISCERNIBLE) SUBCOMMITTEE, TO THE COMMISSION ITSELF, AS WELL AS THE IID BOARD, WHO RECEIVED IT WELL. IN ESSENCE, IT'S A CREATION OF A COACHELLA VALLEY FINANCE AUTHORITY.

MOST OF US HAVE SEPARATE FINANCING AUTHORITIES FOR DIFFERENT FINANCING MECHANISMS. THIS WOULD BE ONE THAT WOULD INCLUDE ANYONE IN THE COACHELLA VALLEY, WITHIN THE IID SERVICE TERRITORY THAT WOULD LIKE TO JOIN. ONCE THAT AUTHORITY IS CREATED, IT WOULD HAVE SOME ABILITY TO ISSUE DEBT.

OF COURSE, IT NEEDS REVENUE TO DO SO.

SO AS JOHN INDICATED, WE HAVE BEEN BENEFICIARIES OF VERY, VERY LOW RATES.

DEPENDING ON WHAT YOUR USE IS, SOMEWHERE ALONG 60 PERCENT LESS RATES THAN SCE. SO WE KNOW THAT IF WE BRING IN A LITTLE MORE REVENUE, AND WE ENTER INTO A JOINT POWERS AGREEMENT -- SO, AS YOU SEE ON THIS FLOWCHART, IF YOU WILL, THAT THE COMMUNITY WOULD PROVIDE, IN OUR PROPOSAL, A SMALL LOCAL INVESTMENT SURCHARGE.

THAT PAYMENT WOULD BE ON TOP OF THE CURRENT IID RATES.

IT COULD ALSO BE DEVELOPER FEES AS THEY BUY INTO THESE SUBSTATIONS OR THESE INFRASTRUCTURE IMPROVEMENTS.

BUT THAT RESOURCE, THEN, WOULD BE ABLE TO BE LEVERAGED TO ISSUE BONDS TO STOP THOSE BONDS, MUCH LIKE WE DO WITH OTHER INVESTMENTS AS A CITY, OR AS IID DOES THROUGH ITS REVERENT STOMACH BOND ISSUANCE, WE WOULD THEN ISSUE BONDS TO INSTALL THESE VERY NEEDED IMPROVEMENTS.

THESE BONDS PROCEEDS WOULD GO TO THE

[00:20:02]

AUTHORITY. THE AUTHORITY WOULD PASS THOSE PROCEEDS BACK TO IID, WHO ON ITS OWN AND/OR WITH CONTRACTORS WOULD BUILD THE INFRASTRUCTURE. WHO COULD JOIN THE FINANCE AUTHORITY? AS I STATED, IT COULD BE ANY ENTITY.

THE WAY IT'S BEEN CONTEMPLATED NOW IS THE THREE CITIES, BUT WE HAVE BEEN IN COMMUNICATIONS WITH THE TRIBES.

AND THERE MAY BE OTHER AREAS IN THE UNINCORPORATED COUNTY THAT MAY WANT TO JOIN THIS AUTHORITY.

BUT THE IDEA WOULD BE THIS LOCAL SURCHARGE MAY BE DIFFERENT FOR EACH CITY. AS JOHN SHOWED THOSE AREAS OF THE SUBSTATIONS, WHERE THEY ARE NEEDED, WHERE THERE CURRENTLY ARE SERVING AND WHERE THEY NEED TO SERVE, IT'S DIFFERENT FOR EACH CITY.

AND WHAT SURCHARGE -- MAY BE DIFFERENT.

BUT THOSE IMPORTANT REVENUES WOULD THEN LEVERAGE THE BONDS THAT WOULD THEN TURN INTO THE INFRASTRUCTURE IMPROVEMENTS THAT WE NEED. JUST THROWING OUT SOME ROUGH NUMBERS.

THE CITY OF INDIO, A ONE PERCENT INCREASE IN THE CURRENT RATE STRUCTURE WOULD GENERATE SOMEWHERE BETWEEN 15 AND $17 MILLION.

INFRASTRUCTURE NEEDS ARE SIGNIFICANT, AND WE WOULD NOT BE ABLE TO ADDRESS ALL OF THE SUBSTATION NEEDS THAT ARE NEEDED. BUT FOR EXAMPLE, IF THE CITY OF INDIO AND ITS ROLE IN THE FINANCE AUTHORITY RAISE RATES THROUGH THE SURCHARGE FOUR OR FIVE PERCENT, IT COULD BE 80 OR $90 MILLION AVAILABLE FOR THESE IMPORTANT PROJECTS. IT'S IMPORTANT TO NOTE, TOO, THAT IID HAS AN EXISTING PROGRAM CALLED THE CUSTOMER SERVICE PROGRAM.

MOST BY DEVELOPERS TO PROPOSE PROJECTS AND PRESENT FUNDING MECHANISMS. BECAUSE DEVELOPERS ARE CURRENTLY REQUIRED TO PAY THE WHOLE FREIGHT OF THIS INFRASTRUCTURE.

IN ESSENCE, THIS FINANCE AUTHORITY WOULD BE A DEVELOPER PARTICIPATING IN IID'S CUSTOMER SERVICE PROGRAM AND WOULD FOLLOW A VERY SIMILAR PROCESS.

SO WITH THAT, I WOULD BE AVAILABLE, MAYOR EVANS, IF THERE IS TIME FOR QUESTIONS NOW, OR HOWEVER YOU WANT TO PROCEED. THAT IS ESSENTIALLY THE FUNDING MECHANISM THAT HAS BEEN DISCUSSED AND THAT WE FEEL CONFIDENT WILL WORK.

>> THANK YOU, BRIAN AND JOHN.

I WILL DEFINITELY OPEN IT UP FOR QUESTIONS OR COMMENTS. LET'S START WITH THE SUPERVISOR.

>> THANK YOU, MADAM MAYOR.

AND THANK YOU, BRIAN AND JOHN.

GREAT PRESENTATION.

VERY THOROUGH. I WAS JUST WONDERING, TO WHAT DEGREE HAS ANY COUNTY STAFF ENGAGE IN THESE DISCUSSIONS? I WAS JUST WONDERING IF YOU ACTUALLY HAVE A MAP OF THE SUBSTATIONS THAT ACTUALLY EXIST ON COUNTY LAND? OR WHERE WE WOULD POSSIBLY NEED THEM? IF THERE'S ANY INFORMATION THAT YOU WOULD BE ABLE TO PROVIDE?

>> (INDISCERNIBLE) STOP I KNOW HE HAS BEEN REACHING OUT TO JUAN PEREZ.

BUT I DON'T BELIEVE I'VE SEEN ANY MAPS OF THE UNINCORPORATED AREA WHAT'S NEEDED. BUT HENRY, YOU MIGHT BE THE BEST ANSWER TO THE SUPERVISORS QUESTION.

>> ABSOLUTELY.

THANK YOU, SUPERVISOR PEREZ AND MAYORS.

(INDISCERNIBLE) I CONTACTED JUAN LAST WEEK. WE KNOW FOR A FACT THAT THE AREA OF 1000 POUNDS, THERE IS A NEED FOR A LARGE SUBSTATION OUT THERE (INDISCERNIBLE) THAT'S BEEN PROPOSED.

AND WE BEEN WORKING WITH THEM TO (INDISCERNIBLE) THE PROJECTS UP AND RUNNING, ALONG WITH THE CONSTRUCTION OF THE NEW ARENA. BUT WE KNOW FOR A FACT THAT THAT AREA NEEDS A NEW SUBSTATION OUT THERE.

WE NEED TO LOOK A LITTLE DEEPER INTO THE GROWTH ON THE COUNTY SIDE.

BUT WE CAN PROVIDES MORE DETAILS ON THAT, SUPERVISOR, AND WORKING WITH YOUR STAFF (INDISCERNIBLE) MORE INFORMATION

OF THAT AREA. >> I APPRECIATE THAT, HENRY.

THANK YOU SO MUCH. I JUST GOT A TEXT RIGHT NOW FROM JUAN PEREZ. THAT HE IS LISTENING IN.

I'M NOT SURE IF HE IS ON ZOOM OR LISTENING. HE'S JUST LISTENING IN.

BUT HE WILL BE FOLLOWING UP WITH YOU,

HENRY. >> OKAY. VERY GOOD.

>> THANK YOU, MADAM MAYOR.

>> MAYOR HERNANDEZ?

>> THANK YOU, MADAM MAYOR, AND FOR ALL OF MY COLLEAGUES LISTENING IN, IN COACHELLA VALLEY. I THINK (INDISCERNIBLE) PARTICIPATING IN THE CONVERSATION, IT'S IMPORTANT TO UNDERSTAND THE TOTALITY OF WHAT'S BEING ASKED, AND WHAT IS THE PROPOSAL.

IF I AM HEARING BOTH BRIAN, AS WELL AS

[00:25:06]

OUR LA QUINTA CITY MANAGER, JOHN, THERE IS AN EXPECTATION -- OR THERE IS A NEED FOR SOMEWHERE IN THE AREA OF ALMOST $400 MILLION OF FINANCING IN ORDER TO FUND SUBSTATIONS.

THAT ASSUMING EVERY CITY SUBSTATION NEEDS ARE MET. 150 MILLION FROM COACHELLA, (INDISCERNIBLE) INDIO, AND (INDISCERNIBLE) FROM LA QUINTA -- IF WE WERE TO BUILD THEM ALL.

AND JOHN, YOU KIND OF ALLUDED TO THIS, TOO. I'M NOT SURE, YOU KNOW, IF YOU CAN GO FURTHER INTO DETAIL? MAYBE HENRY CAN HELP YOU? BUT IN THE EVENT THAT WE OBTAIN 540 MEGAWATTS OF SUBSTATION CAPACITY, THERE WOULD ALSO BE A NEED FOR TRANSMISSION UPGRADES, AS WELL AS GENERATION UPGRADES. AND SO, WHAT IS THE TOTALITY -- WHAT IS BEING ASKED, AND IS THE FINANCING AUTHORITY, IS IT GOING TO BE ASKED TO ACTUALLY FUND THAT? I'VE ALWAYS BEEN BIG ABOUT WHO'S GOING TO OWN IT? IT REALLY DOES SOUND LIKE THE COACHELLA VALLEY IS GOING TO PAY FOR IT, AND IT SHOULD BE OUR CITIES (INDISCERNIBLE).

I REALLY WANT TO UNDERSTAND THE MAGNITUDE OF WHAT'S BEING PROPOSED.

PARTICULARLY, BECAUSE OF TRANSPARENCY SAKE STOP IN GOVERNMENT, SOMETIMES (INDISCERNIBLE) AVOID (INDISCERNIBLE).

SO WHAT IS BEING ASKED?

>> THERE ARE A COUPLE OF THINGS I CAN ADD TO RIGHT AWAY.

I'LL ADDRESS THE 540 MEGAWATT COMMENT SECOND. BUT I SHOULD ADDRESS ROUGHLY THE $400 MILLION OF SUBSTATION UPGRADES THAT YOU MENTIONED. THE IDEA THAT WE HAVE ALL DISCUSSED IS WITH EVERY ONE OF THESE SUBSTATIONS THAT GETS BUILT, AND FOR INSTANCE, WE HAVE A DEVELOPER THAT'S COMING IN TO BUILD 60 HOUSES.

THERE IS A REQUIREMENT TO BUILD A SUBSTATION ALONG WITH THOSE 60 HOUSES.

THE IDEA IS THAT DEVELOPER IS HARD TO PUT THE STRAIN OF A $15 MILLION SUBSTATION UPGRADE COMPLETELY ON HIM, WHEN ALL HE NEEDS IS FIVE MEGAWATTS OF POWER. THIS IS AN AFFORDABLE HOUSING PROJECT THAT IS ACTUALLY WITHIN OUR CITY, WHERE THIS EXACT SITUATION IS OCCURRING.

WE HAVE AN AFFORDABLE HOUSING DEVELOPER WHO WOULD LIKE TO BUILD AFFORDABLE HOUSES. IN ORDER TO DO THAT, THEY WOULD HAVE TO DO A SUBSTATION UPGRADE.

-- --.

THAT MONEY IS THEN COLLECTED AND CAN BE USED TO EITHER ACCELERATE THE DEBT PAYMENT ON THOSE BONDS, OR CAN BE UTILIZED FOR A FUND THAT WOULD POTENTIALLY LOOK AT FUTURE INFRASTRUCTURE IMPROVEMENTS.

THAT COULD BE TRANSMISSION LINE UPGRADES. THAT'S GETTING INTO THE REALM OF WHAT IS AT 540 MEGAWATT NEED THAT IS PROJECTED 10 YEARS FROM NOW.

LIKELY, WE WON'T GET TO THAT NEED.

BUT WHEN IID IS DOING THEIR ANALYSIS, THEY ARE TAKING A LOOK AT WHAT THE FUTURE MIGHT BE.

WHEN YOU HAVE TESLA POWER STATIONS, AND YOU HAVE THE ARENA, AND YOU HAVE EVERYBODY SAYING HEY, I HAVE A VIABLE PROJECT THAT'S GOING TO HAPPEN? IF THEY START STACKING UP ALL THOSE VIABLE PROJECTS AND WHAT THE WISHES AND DESIRES OF EVERYBODY IS COMING ONLINE, AND COMBINING THAT WITH THE POWER CREEP THAT WE TALKED ABOUT.

THESE NEW ENERGY-EFFICIENT HOMES, ALL OF A SUDDEN, THEY ARE NOT QUITE AS ENERGY-EFFICIENT ANYMORE.

THEY'RE JUST NOT USING GAS, THEY'RE REPLACING IT WITH ELECTRICITY.

SO YOU HAVE ALL OF THAT HAPPENING -- COMPUTING POWER, AIR CONDITIONING -- ALL OF THIS UTILIZING THE POWER.

SO THERE IS POWER CREEP.

THERE ARE GOING TO BE NEEDS. WE PROBABLY WON'T NEED 540 MEGAWATTS, BUT I KNOW IID IS THINKING ABOUT THAT.

ALONG WITH THAT GOES ADDITIONAL GENERATION AND LARGER TRANSMISSION CAPACITY. THAT'S WHAT I CAN PROVIDE.

>> JUST TO BE CLEAR, THE DEVELOPMENT COMMUNITY WILL BE ASSESSED A DEVELOPMENT IMPACT FEE FOR SUBSTATION UPGRADES. BUT I ALSO HEARD BRIAN SAID ONE PERCENT. SO WHO WAS PAYING THAT -- IS THAT THE DEVELOPMENT COMMUNITY ONLY?

[00:30:02]

OR DOES THAT GO BACK TO THE RATEPAYER THAT CURRENTLY EXISTS? I'M JUST TRYING TO UNDERSTAND THAT.

AND IF YOU COULD HELP ME ANSWER -- AND MAYBE, GOING BACK TO HENRY, THE TRANSMISSION LINE UPGRADES, AS WELL AS GENERATION? I REALLY WANT TO UNDERSTAND.

>> I'LL GO WITH THE DEVELOPER IMPACT FEE FOR A MINUTE.

EVERY CITY COULD LOOK AT HOW THEY WANT TO CHARGE THAT TO THAT DEVELOPERS INDEPENDENTLY. AT THE IDEA, I THINK, WHEN IDEA THAT WE TALKED ABOUT IS EVERY DEVELOPER SHOULD PAY THEIR FAIR SHARE.

SO IF A DEVELOPER COMES IN AND THEY NEED FIVE MEGAWATTS, WE WOULD EXPECT THEM TO PAY FOR THE COST ASSOCIATED WITH THAT FIVE MEGAWATTS TO PRODUCE IT.

BUT WITH THE IDEA THAT IT MAY TAKE THREE YEARS FOR THAT INVESTMENT TO BE A REALITY. WE WANT TO GET OUT IN FRONT OF SOME OF THAT. WE HAVE A PARTICULAR SITUATION, THE ONE I WAS MENTIONING ABOUT THE AFFORDABLE HOUSING DEVELOPER COMING IN AND WANTING TO BUILD. THE PARTICULAR SUBSTATION THAT WOULD NEED TO BE UPDATED FOR THAT FIVE MEGAWATTS IS CURRENTLY ALREADY IMPACTED BY POWER CREEP.

BY THE EXISTING CUSTOMER BASE WITHIN THAT AREA. AND ALSO, WHEN THE ONE HOUSE GETS ADDED HERE OR THERE, TO THE POINT WHERE THAT EXISTING SUBSTATION IS RUNNING IN EXCESS OF ITS DESIGN CAPACITY.

SO THEY ARE DESIGNED TO OPERATE TO ABOUT 80 PERCENT OF THEIR FULL CAPACITY, AND THEIR RUNNING CLOSER TO 100 PERCENT. SO THE IDEA IS IF THAT DEVELOPER COMES IN AND PAYS HIS FAIR SHARE TO GET THE FIVE MEGAWATTS, THAT ADDITIONAL THAT'S GOING TO BE USED IS ALL GOING TO BENEFIT THE EXISTING CUSTOMER BASE AROUND THAT AREA THAT WOULD BENEFIT FROM THAT SUBSTATION UPGRADE.

AND THEN, I'LL TURN IT OVER TO HENRY IF THERE IS ANYTHING YOU COULD ADD TO THAT WITH RESPECT TO TRANSMISSION?

>> CERTAINLY. THANK YOU, JOHN.

SO WE HAVE A PLAN THAT WE HAVE BEEN KICKING AROUND AND DISCUSSING WITH THE CITY MANAGERS. ONE, TAKE A LOOK AT THE LOW HANGING FRUIT THAT WE HAVE NOW, TO BE ABLE TO GET SOME CAPACITY (INDISCERNIBLE).

AND BASICALLY, IT GOES BACK TO LOOKING AT OUR EXISTING SUBSTATIONS AND IDENTIFYING THOSE THAT REQUIRE, MAY BE, A NEW BANK. THAT HAS MINIMAL IMPACT IN REGARDS TO THE ACTUAL RECONFIGURATION (INDISCERNIBLE). THAT GIVES US A SHORTER TIMEFRAME TO GET IDD REVIEW CAPACITY LATER ON.

AND IT WILL START THE BALL ROLLING.

THE SECOND WOULD BE THE TRANSMISSION ISSUE. THAT WOULD REQUIRE (INDISCERNIBLE) MORE COMPLEX PLANNING PROCESS.

ALSO, IT INVOLVES MORE INVESTMENT FROM THE DISTRICT (INDISCERNIBLE) REQUIRED FOR TRANSMISSION. AND 1/3 LAYER IS A GENERATION.

WHERE WE BASICALLY WOULD HAVE TO ALSO ACCOMMODATE BRINGING NEW GENERATION INTO COACHELLA VALLEY.

(INDISCERNIBLE).

ONE IS THROUGH UPGRADING THE EXISTING TRANSMISSION AND COACHELLA VALLEY, AND TAPPING INTO POTENTIALLY NEW GEOTHERMAL (INDISCERNIBLE). THE SECOND OPTION IS TO BASICALLY TAP INTO THE (INDISCERNIBLE) SYSTEM, AND BRING THAT POWER INTO (INDISCERNIBLE) NORTH END OF THE VALLEY.

SO THERE ARE METHODOLOGIES THAT BASICALLY AUGMENT THE PLANS (INDISCERNIBLE).

BUT FROM MY PERSPECTIVE, WE HAVE TO REALLY DO IT IN STAGES AND PHASES.

(INDISCERNIBLE) FIRST, PLAN FOR NEXT YEAR, (INDISCERNIBLE) CURRENT CAPACITY.

AND IN PARALLEL, START PLANNING TO BUILD THE TRANSMISSION LINES (INDISCERNIBLE) UP THERE.

>> HENRY, JUST TO BE CLEAR, YOU WOULD EXPECT THIS FINANCING AUTHORITY TO FUND THAT? BOTH THE GENERATION AS WELL AS THE TRANSMISSION UPGRADES?

>> THE GENERATION BASICALLY BE A SERVICE -- THIS IS NOT A FULLY DEDICATED (INDISCERNIBLE).

NOT AS GREAT FOR THE COACHELLA VALLEY, BUT THERE IS (INDISCERNIBLE).

SO THE PLAN FOR GENERATION TRANSMISSION WOULD BE PART OF THE FUNDING THAT OUR BOARD WILL CONSIDER IN MEETING OUR (INDISCERNIBLE) REQUIREMENTS.

AS A BALANCING AUTHORITY, WE HAVE TO PROVIDE ALL THE ASPECTS OF (INDISCERNIBLE) AVAILABILITY, FREQUENCY CONTROL, (INDISCERNIBLE) ETC.

[00:35:02]

AND THAT BASICALLY GOES BACK TO (INDISCERNIBLE).

SO IT'S NOT JUST COACHELLA VALLEY, IT'S REALLY INCORPORATING THE NEEDS OF THE COUNTY AS WELL. WHEN I SPEAK OF THE TRANSMISSION GENERATION ASPECT, CORRELATED BUT NOT NECESSARILY FUNDED (INDISCERNIBLE) COACHELLA VALLEY. BECAUSE THAT'S PART OF THE GREATER -- IF YOU THINK ABOUT IT, IT'S MORE OF LIKE A FREEWAY INVESTMENT.

(INDISCERNIBLE) ENERGY INTO COACHELLA VALLEY. THE DISTRIBUTION SYSTEM ITSELF IS MORE OF A LOCAL STREET SYSTEM, TO BE ABLE TO GET THAT POWER DISTRIBUTED TO THE CITIES IN THE COUNTY.

SO THAT'S WHERE WE SEE THE DIFFERENCES BETWEEN THE TWO. THE RECENT IMPACTS OF (INDISCERNIBLE), OR INCREASES IN TRANSMISSION, BUT IS NOT (INDISCERNIBLE) BORN OF COACHELLA VALLEY ENTIRELY.

>> (INDISCERNIBLE). I THINK THIS IS SOMETHING THAT HAS BEEN DISCUSSED. (INDISCERNIBLE) I THINK IT'S SOMETHING WE HAVE TO KEEP IN MIND. AND ULTIMATELY, THE ISSUE HAS TO BE RESOLVED AT SOME POINT IN TIME SHORTLY.

BECAUSE WE DON'T HAVE THE AGREEMENT WITH THE COACHELLA VALLEY WATER DISTRICT. SO THAT'S IN PLAY.

BUT I THINK AT THIS POINT, LOOKING AT THE SHORT-TERM REQUIREMENTS (INDISCERNIBLE) COACHELLA VALLEY, WE HAVE TO REALLY THINK ABOUT IT FROM AN INVESTMENT PERSPECTIVE.

(INDISCERNIBLE) TO MEET THEIR NEEDS.

OTHERWISE, THE ECONOMY IS GOING TO SUFFER AND THE OPPORTUNITIES FOR COACHELLA VALLEY WILL BE NONEXISTENT UP THERE.

>> I ALSO WANT TO JUST REITERATE, AND JOHN MADE THE POINT, THE SUPPLY CHAIN ISSUE IS REALLY PUTTING, TO SOME EXTENT, SOME PRESSURE ON (INDISCERNIBLE) LABOR.

WE'VE HAD DISCUSSIONS WITH THE CITY MANAGERS ABOUT REFUNDING OR ORDERING EQUIPMENT. BUT IN THE MEANTIME, IT'S ONE OR THREE YEARS, AS JOHN INDICATED.

THERE HAS TO BE A SYSTEM, ALMOST LIKE A NO-FAULT DECISION ABOUT PRE-ORDERING SOME OF THE LARGER EQUIPMENT STOP (INDISCERNIBLE) AND AT LEAST GET THAT GOING (INDISCERNIBLE). LET ME STOP THERE AND SEE IF THERE'S ANY QUESTIONS. I SEE BRIAN HAS HIS HAND RAISED.

>> THANK YOU.

HENRY ANSWERED MOST OF WHAT I WAS GOING TO SAY. BUT ONE UNIQUE ASPECT AND A BENEFIT OF THIS PROPOSAL IS THAT IT IS AREA SPECIFIC. SO EACH CITY COULD DETERMINE, OR UNINCORPORATED AREA, HOW MUCH INFRASTRUCTURE THEY WANTED TO INSTALL.

AND THE SUBSTATIONS ARE LOCALIZED, WHEREAS TRANSMISSIONS, TO ANSWER YOUR QUESTION, MAYOR HERNANDEZ, IS MUCH MORE GLOBAL. AND HENRY EXPLAINED THAT.

WE WOULD EXPECT ALL OF THE RATEPAYERS TO ADDRESS TRANSMISSION AND GENERATION.

WHEREAS THE SUBSTATIONS ARE MORE LOCALIZED. SO THAT MIGHT EXPLAIN SOME OF THE DIFFERENCE.

WITH REGARD TO OWNERSHIP, THE INFRASTRUCTURE. ALL THE INFRASTRUCTURE IID OWNS HAS BEEN PAID FOR ALL OF US -- BY ALL OF THE RATEPAYERS. THAT WOULD CONTINUE TO BE THE CASE.

IT WOULD BE MAINTAINED BY IID, AND THAT'S THE COST AND EFFORT THAT THE CITIES, I DON'T BELIEVE, WANT TO BE A PART OF MOVING FORWARD.

SO AGAIN, TRYING TO CLARIFY EACH CITY CAN DETERMINE HOW MUCH OF THAT 400 MILLION IT NEEDED TO ADDRESS.

AND IT WOULD BE SPECIFIC AND LOCALIZED TO THE SUBSTATIONS, NOT BEYOND THAT

EFFORT. >> COUNCILMEMBER PEÑA.

>> THANK YOU, MADAM MAYOR.

A COUPLE QUESTIONS: ONE, HAS THERE BEEN ANY DISCUSSION ABOUT MANY GRIDS? PROVIDING THEIR OWN MANY GRIDS? IF YOU ARE MAKING AN INVESTMENT OF $25 MILLION IN A SUBSTATION, YOU ARE TURNING THAT OVER TO IID.

WHEREAS A DEVELOPER OF THE CITY MAKE THAT SAME INVESTMENT IN A MINI GRID, THEY WOULD OWN THE ASSET?

>> YES, THE ANSWER TO YOUR QUESTION IS YES. AS A MATTER OF FACT, LET ME ASK JAMIE TO CHIME IN A LITTLE BIT.

BECAUSE WE HAVE BEEN EXPLORING THIS AREA, AND WE HAVE MANDATES TO CONSIDER RATES OR MICROGRIDS.

SO JAMIE, COULD YOU MAYBE ELABORATE ON

THAT, PLEASE? >> SURE.

SO AS (INDISCERNIBLE) WHICH WAS (INDISCERNIBLE) IN 2019, REQUIRE PUBLICLY OWNED UTILITIES WITHIN 180

[00:40:03]

DAYS OF RECEIVING ITS FIRST APPLICATION FOR A MICROGRID TO DEVELOP A (INDISCERNIBLE) PROCESS.

AND THE (INDISCERNIBLE) SCHEDULES THAT WOULD DRIVE HOW WE HANDLED THAT, IN TERMS OF WHAT IT CONSUMED FROM THE SYSTEM AND WHAT IT (INDISCERNIBLE).

SO THAT'S IN THE PROCESS.

BUT THOSE MICROGRIDS THAT WE HAVE RECEIVED TODAY HAVE BEEN SMALLER IN SALE. WHEN YOU START GETTING LARGER MICROGRIDS, THOSE ARE NETWORK LOADS, AND THEY PRESENT A BALANCING AUTHORITY AREA CHARGE. AND THEY GET COVERED UNDER THE TARIFF, WHICH MAKES IT THAT MUCH MORE COMPLICATED. I THINK WE THINK THAT MICROGRIDS HAVE A PLACE. THEY CAN TAKE (INDISCERNIBLE) UP THE SYSTEM, AND THERE ARE A LOT OF INTERESTING DYNAMICS CURRENTLY AND HOW THEY ARE BEING DEVELOPED.

SOME OF THEM CAN BE DAISYCHAINED TOGETHER, PROVIDING THE DEVELOPERS THE SAME IN ALL OF THEM. BUT THOSE THINGS PROVIDE A LEVEL OF COMPLEXITY THAT HAVE TO BE WORKED THROUGH. ONE OF THE THINGS HENRY TOUCHED ON IS ENERGY SUPPLY.

SO WHAT MAKES THIS EVEN MORE COMPLICATED IS THAT THE RENEWABLE FOR (INDISCERNIBLE) STANDARD REQUIREMENTS IID (INDISCERNIBLE) 65 PERCENT OF 100 PERCENT HAS TO BE FROM A CONTRACT OF A DURATION OF 10 YEARS OR MORE.

SO THAT STARTS GETTING US INTO THAT BALANCING ACT THAT'S A LITTLE DIFFICULT. SO WE ARE LOOKING AT MICROGRIDS.

WE ARE IN THE PROCESS OF A (INDISCERNIBLE). AND THE TARIFF (INDISCERNIBLE).

VERY SIMILAR TO HOW SOLAR IS INTERCONNECTED, BUT IT'S A LOAD AND RESOURCE, AT THE SAME TIME, ON A LARGER SCALE. SO WE ARE WORKING ON THAT.

WE ARE ALSO TRYING TO MINIMIZE LONG-TERM IMPACTS BY LOOKING AT RESOURCES THAT WE CAN GET INTO THE SYSTEM AS QUICKLY AS POSSIBLE (INDISCERNIBLE) AND STILL MANAGING THAT 10 YEAR HORIZON GIVEN ALL THE THINGS THAT ARE UPCOMING. I'D BE HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS, AND I HOPE THAT WAS

RESPONSIVE. >> THANK YOU, JAMIE.

OTHER QUESTIONS? COMMENTS? DO WE HAVE ANY REQUESTS TO SPEAK FROM OUR ATTENDEES?

>> NO REQUEST TO SPEAK AT THIS POINT.

>> I HAVE ANOTHER QUESTION.

I HAVE A LOT OF QUESTIONS (LAUGHING)! OBVIOUSLY, RIGHT NOW, WE'RE LOOKING AT A PUBLICLY FINANCED SOLUTION TO MEETING OUR NEEDS, HERE, IN THE COACHELLA VALLEY. THIS IS REALLY A PUBLIC SOLUTION.

BUT HAS THIS COMMITTEE, THREE CITY MANAGERS WITH HENRY, LOOKED AT A PRIVATE-PUBLIC SOLUTION? IN OTHER WORDS, GAUGING THE INTEREST OF THE PRIVATE SECTOR, THAT PERHAPS THEY MAY WANT TO FINANCE AND TAKE THE RISK? AS OPPOSED TO BURYING OR PUTTING OUR CONSTITUENTS ON THE HOOK FOR WHAT WOULD BE A ONE PERCENT SURCHARGE UNDER THE

ENERGY BILL? >> JUST BACK TO THE ONE PERCENT.

WHEN I INDICATED ONE PERCENT WOULD GENERATE SO MUCH REVENUE, IT WOULD NEED TO BE LARGER THAN ONE PERCENT TO ACHIEVE ANYTHING SIGNIFICANT.

SO THAT SOMETHING FOR EACH CITY TO EVALUATE. BUT NO, ALL -- NOTHING IS FREE (LAUGHING). SO WHETHER THE EXISTING PROGRAM THAT IID HAS WHERE THE DEVELOPER PAYS THE FULL FREIGHT, PUTS THE DEVELOPER IN THE POSITION JOHN DESCRIBED.

WHERE DEVELOPER NEEDS APPROXIMATELY FIVE MEGAWATTS, BUT THAT IS NOT AVAILABLE. SO THEY'RE BEING ASKED TO BUILD 20, 25 MEGAWATTS. AND PROBABLY, THERE IS NO REIMBURSEMENT TO THE DEVELOPER. THERE IS NO INCENTIVE FOR THE DEVELOPER TO UPFRONT THAT KIND OF MONEY.

EVEN IF THERE WAS REIMBURSEMENT, I DOUBT MOST DEVELOPERS WOULD STEP FORWARD. IF WE ARE IN A COMPETITIVE ENVIRONMENT FOR JOBS AND THE TYPE OF ECONOMIC GROWTH THAT WE ALL SEEK, WE WILL JUST NOT BE COMPETITIVE. THEY WILL GO ELSEWHERE.

SO WE NEED TO BE AHEAD.

WOULDN'T IT BE WONDERFUL IF WE WERE IN A POSITION RIGHT NOW WHERE THERE WAS A CAPACITY IN THE SUBSTATIONS? AND SOMEONE KNOCKS ON THE DOOR -- OF LA QUINTA, COACHELLA OR INDIO AND SAYS I'M LOOKING TO BUILD THIS DEVELOPMENT.

THAT'S GOING TO BE 500 JOBS FOR THE VALLEY. AND WE COULD TELL THEM, WOULDN'T IT BE WONDERFUL TO SAY WE HAVE POWER CAPACITY FOR YOU? RIGHT NOW, WE HAVE TO SAY WE DO NOT.

SO WE MUST LEVERAGE A BROADER INCOME BASE, ALL OF OUR RATEPAYERS, TO BE ABLE TO LEVERAGE THESE BONDS AND SECURE THAT DEBT TO BUILD AND INSTALL THAT INFRASTRUCTURE AHEAD OF THE DEVELOPMENT

[00:45:02]

DEVELOPMENT. PLEASE RECOGNIZE THAT REDUNDANCY IS CRITICAL FOR ALL OF US.

NOT JUST FOR THAT NEW DEVELOPMENT.

SO AS WE DISCUSSED THIS WITH OUR RESIDENTS, THEY NEED TO UNDERSTAND THAT THIS IS FOR THEM, AS WELL AS WHAT MIGHT

COME IN THE FUTURE. >> I THINK WE CAN ALL AGREE THAT IF WE WERE IN A BETTER POSITION, WHERE WE HAD CAPACITY ON OUR SUBSTATIONS TO HANDLE THE FLOW OR THE NEW ECONOMIC (INDISCERNIBLE) THAT'S HAPPENING, WE WOULD ALL BE BETTER OFF. I THINK THAT'S THE ONE THING WE ALL AGREE WITH. I'M JUST SIMPLY ASKING HAVE WE EXPLORED ALL MODELS? RIGHT NOW WHAT'S BEING PRESENTED IS A PUBLIC MODEL. THE (INDISCERNIBLE) INFORMED A MODEL IN WHICH WE ASSESS OURSELVES ONE PERCENT, OR WHATEVER THAT NUMBER IS.

AND THEN, WE PREBUILT.

AND ULTIMATELY, I WOULD IMAGINE THE (INDISCERNIBLE) WOULD HAVE THE FIDUCIARY RESPONSIBILITY TO PAY THAT NOTE? AND SO, WE WOULD BE ON THE HOOK AS A PUBLIC ENTITY. I'M JUST ASKING, HAVE WE EXPLORED A MODEL WHERE WE GO OUT TO THE PUBLIC SECTOR, THAT'S NOT A DEVELOPER -- A PRIVATE ENTITY, I SHOULD SAY, THAT WOULD BE WILLING TO EXPLORE THIS TYPE OF INVESTMENT?

>> YEAH, I SHOULD'VE ANSWER THAT MORE SPECIFICALLY.

(INDISCERNIBLE) EXISTING PROGRAM FOR THE DEVELOPMENT, NO, WE HAVE NOT.

BUT WE DON'T BELIEVE THE PRIVATE SECTOR WOULD FIND (INDISCERNIBLE).

SO WHILE WE COULD EXPLORE THAT, I'M NOT CONFIDENT THAT THE VIABILITY WOULD BE THERE. BUT JUST BACK TO THIS NEED TO ORDER THIS EQUIPMENT IMMEDIATELY, WE ENCOURAGED IID TO START PLACING ORDERS NOW. EVEN IF WE NEED TO HELP WITH SOME OF THE DEPOSITS. I'M NOT SURE HOW MUCH MORE ANALYSIS WE WANT TO MAKE BEFORE WE START TAKING ACTION TO ADDRESS THE PROBLEM.

THAT ONCE WE START, COULD STILL BE TWO OR THREE YEARS AWAY FROM RESOLUTION.

SO THE SOONER THE BETTER.

WE MAY BE ABLE TO MODIFY THINGS OVER TIME AND LOOK AT ALTERNATIVES.

BUT WE NEED TO GET SOMETHING DONE SOON.

>> MAYOR PRO TEM FIX PATRICK.

>> YEAH.

I'M LISTENING WITH INTEREST, AND I WATCHED YOUR LAST EXECUTIVE MEETING OVER THE WEEKEND. I'M JUST SO HAPPY THAT WE ARE FINALLY AT A POINT WHERE WE ARE DOING SOMETHING.

I KNOW WE IN LA QUINTA HAVE BEEN TALKING ABOUT OUR POWER NEEDS FOR THE LAST FIVE YEARS HAVE BEEN ON COUNSEL.

SOME GLAD WE ARE FINALLY DEVELOPING A GOOD RELATIONSHIP WITH IID AND TRYING TO MOVE FORWARD. I THINK WE HAVE TWO SEPARATE ISSUES.

THE NEAR TERM AND THE LONG TERM.

AND I THINK WE NEED TO VERY CAREFULLY SEPARATE THOSE, AND WORK ON THE NEAR TERM VERY QUICKLY.

PART OF THAT IS GETTING THE WORD OUT TO OUR CONSTITUENTS.

AND IID'S RATEPAYERS THAT WE'VE ENJOYED A LONG PERIOD OF TIME WHERE WE'VE PAID VERY LITTLE FOR POWER, RELATIVE TO ANYBODY ELSE. AND BECAUSE OF THAT, WE HAVE VARIOUS SERIOUS INFRASTRUCTURE NEEDS NOW.

AND IN ORDER FOR US TO BE ABLE TO GO FORWARD RESPONSIBLY AS REPRESENTATIVES OF OUR RESIDENTS, WE NEED TO BE TALKING ABOUT HOW WE RAISE THE FUNDS TO HELP SECURE A POSITION WITH IID THAT I THINK IS BUILDING SOME TRUST, AND BUILDING A REAL WORKING RELATIONSHIP, SO WE CAN MOVE FORWARD. I WHOLEHEARTEDLY SUPPORT THIS EFFORT.

I THINK THAT WE SHOULD BE NEXT STEPS SPENDING MORE TIMES IN FRONT OF OUR OWN RESIDENTS WITH ANOTHER STUDY SESSION.

SO PEOPLE REALLY BEGIN TO UNDERSTAND JUST HOW CRITICAL THIS PROBLEM IS.

AND THEN, MOVE FORWARD ON A SEPARATE PATH. LOOKING AT SOME OF THE OTHER ISSUES THAT MAYOR HERNANDES BRINGS UP, WHICH ARE THE LONG-TERM ISSUES -- HOW DO WE SOLVE FOR 2033? BUT AT THIS POINT IN TIME, WE HAVE TO SOLVE FOR 2025.

AND THE ONLY WAY TO DO THAT IS TO GET STARTED RIGHT NOW. SO, THANK YOU, IID FOR COMING TO THE TABLE. SITTING DOWN AND TALKING TO US.

THANK YOU TO OUR HARD-WORKING CITY MANAGERS, WHO ARE HELPING DIRECT THIS PROCESS. I'M HERE TO SUPPORT YOU!

>> THANK YOU.

COUNCILMEMBER HOMES. >> THANK YOU, COUNCILMEMBER FITZPATRICK, FOR YOUR WORDS.

I ECHO THEM. THIS IS SOMETHING THAT WE HAVE BEEN CONSIDERING ADDING, LOOKING AT AND EVALUATING FOR QUITE A WHILE.

[00:50:02]

IN THE RELATIONSHIP WE HAVE WITH IID IS NOW A SOLID ONE.

TIME IS OF THE ESSENCE.

THIS VALLEY, IT'S NOT JUST INDIO OR COACHELLA OR LA QUINTA.

THIS VALLEY SUFFERS IF WE DON'T WRAP OUR ARMS AROUND THIS, TAKE A FIRST STEP, AND MAYBE EVEN A SECOND STEP TO MOVE FORWARD.

THERE IS NOT ALWAYS ECONOMIC (INDISCERNIBLE). I THINK WE HAVE DONE A LOT OF RESEARCH.

IT'S SOMETHING I SUPPORT.

WE HAVE DONE A LOT OF RESEARCH, AND I THINK WE HAVE THE TOOLS AND THE KNOWLEDGE. WE'VE DONE A SIGNIFICANT AMOUNT OF EVALUATION TO TAKE THAT NEXT STEP, TO MOVE THIS FORWARD, SO THAT WE CAN ALWAYS -- OR ALL OF US CAN REALLY REAP THE BENEFITS OF BEING ABLE TO BRING IN, WHETHER IT'S INDUSTRY OR HOUSING OR LARGER RETAIL CENTERS.

SO THIS IS ALSO THAT I SUPPORT VERY

STRONGLY. >> THANK YOU.

COUNCILMEMBER SANCHEZ.

>> THANK YOU, MADAM MAYOR.

I HAVE A QUICK QUESTION FOR OUR CITY MANAGER, JOHN.

YOU SAY IT WAS ABOUT $75 MILLION? IS THAT WHAT WE WOULD NEED FOR OUR

CITY? >> IT WAS ROUGHLY 75 MILLION.

I'VE GOT 73 MILLION TO BE EXACT.

EITHER PAY DOWN TO DEBT, OR (INDISCERNIBLE) WE COULD USE IT FOR OTHER GROWTH, CORRECTLY IS THAT WHAT WE

SAID? >> THE IDEA WOULD BE TO ACCELERATE THE PAYOFF OF THE DEBT ON THOSE BONDS, OR TO BE UTILIZED FOR OTHER INFRASTRUCTURE UPGRADES IN THE FUTURE.

>> OKAY. AND GIVEN THE SIZE OF OUR CITY AND LAND AVAILABLE AND DEVELOPMENTS THAT ARE IN THE PIPELINE OR CAN BE IN THE PIPELINE, (INDISCERNIBLE) LET'S DO THIS, HOW MUCH OF THAT 73 MILLION WOULD BE POTENTIALLY PAID OFF FROM FUTURE DEVELOPMENT IN OUR CITY? DO WE HAVE (INDISCERNIBLE) CALCULATED?

>> WE DON'T HAVE AN EXACT NUMBER ON THAT. BUT IF I WERE TO TAKE A GUESS AT IT, IT WOULD BE -- SOMEWHERE BETWEEN 65 PERCENT AND 80 PERCENT WOULD GET PAID

BACK. >> OH, OKAY.

AND THEN, THE REST WOULD BE -- THE ELECTRIC RATE SURCHARGE?

>> AND LIKE YOU WERE INDICATING, THAT WOULD BE LIKE AT BUILDOUT.

AND THE IDEA IS THAT CURRENT RATEPAYERS ARE BENEFITING FROM THIS.

>> SHIRT. >> WHEN THE SUBSTATION IS RUNNING AT 100 PERCENT CAPACITY WHEN IT'S DESIGNED TO RUN AT 80 PERCENT CAPACITY, IF EVERY ONE OF THESE SUBSTATION IMPROVEMENTS GETS MADE AND NEW SUBSTATIONS GET BUILT, THEY WILL BE RUNNING AT THEIR DESIGN CAPACITY.

>> RIGHT. AND I KNOW THAT WOULD EASE UP ON -- THE GREATER LA QUINTA, LET'S SAY, WITH THE HOPES THAT IT PREVENTS BLACKOUTS OR ANYTHING LIKE THAT.

THANK YOU, CITY MANAGER.

I AGREE WITH MY FELLOW COLLEAGUES THAT HAVE SPOKEN ALREADY. I'M GRATEFUL THAT ALL THE CITIES HAVE GOTTEN TOGETHER, ALONG WITH THE SUPERVISOR'S OFFICE, AND THE TRIBES INPUT ALSO. YOU KNOW, THE GROWTH IN COACHELLA AND INDIO AND THE UNINCORPORATED COUNTY IS NOT JUST VITAL FOR THE RESPECTIVE CITIES, IT'S IMPORTANT FOR MY CITY ALSO. WHEN INDIO GROWS AND EXPANDS AND DOES WELL, LA QUINTA DOES WELL, RIGHT? BECAUSE ALL OF THAT LEADS INTO MY CITY.

THE SAME THING WITH THE UNINCORPORATED COUNTY. THE COUNTY CAN GROW AND EXPAND (INDISCERNIBLE). JOBS, QUALITY OF LIFE, THAT BLEEDS OVER INTO OUR CITY AS WELL WITH QUALITY OF LIFE. BECAUSE THAT'S TOURISM.

THAT'S COMMERCE THAT COMES INTO OUR CITY. SO SELFISHLY, I WANT OUR CITY TO GROW PROPERLY, BUT I ALSO WANT THE OTHER CITIES IN THE AREA OF THE EAST VALLEY TO BE SUCCESSFUL AND GROW AS WELL.

BECAUSE WE ARE IN THIS AS A TEAM.

WE ARE INDIVIDUAL CITIES, BUT REGIONALLY, WE ARE JUST ONE BIG CITY IF YOU LOOK AT IT FROM A MAP.

THANK YOU, MADAM MAYOR. >> THANK YOU.

COUNCILMEMBER (NAME). >> ONE ASPECT I WOULD LIKE TO POINT OUT -- FIRST, I'D LIKE TO ECHO THANKS TO THE CITY MANAGERS AS WELL AS IID FOR COMING TOGETHER AND GETTING THESE MOVING. WE HAVE MOMENTUM RIGHT NOW.

AN ANALYSIS PARALYSIS IS NOT THE OPTION. ONE ASPECT TO POINT OUT IS THE ONLY

[00:55:02]

FREE CHEESE IS IN THE MOUSETRAP.

BY WAITING, WE ARE JUST BUILDING A BIGGER MOUSETRAP THAT WILL GET US ALL! NONE OF US IS AN ISLAND UNTO ITSELF.

NO CITY IN THE VALLEY IS AN ISLAND UNTO ITSELF. WHERE CODEPENDENT AND OUR DESTINIES ARE CONNECTED. I ECHO THE SENTIMENTS OF COUNCIL MEMBER SANCHEZ, THAT THE RISING TIDES RISES ALL THE BOLTS. THAT'S THE PERSPECTIVE WE HAVE TO TAKE.

THIS IS ALREADY A PRIVATE -PUBLIC PARTNERSHIP. WE ARE ASKING DEVELOPERS TO PARTICIPATE IN THIS. AND WE ARE ASKING THE RATEPAYERS TO PARTICIPATE IN THIS.

AND THAT'S IMPORTANT.

THAT WE UNDERSTAND THAT ELECTRICITY AND POWER IS A PUBLIC UTILITY.

IT'S NOT SOMETHING WE SHOULD PUT ON THE SHOULDER OF THE PRIVATE SECTOR AND EXPECT THEY'RE GOING TO TAKE CARE OF IT SOMEHOW, SOMEWHERE.

IT'S REALLY UP TO US TO TAKE WHAT WE HAVE RIGHT NOW, WHICH IS MOMENTUM FORWARD, AND RUN WITH IT.

TO LOOK AND EXECUTE SOMETHING THAT MAKES SENSE FOR ALL STAKEHOLDERS.

AND THE ONLY WAY FORWARD IS WHAT IS BEING PRESENTED HERE, SO ELOQUENTLY, BY MR. MONTGOMERY AND MR. MCMILLAN AND OTHERS WHO HAVE SPOKE HERE TODAY, FROM A COMPETENCY POINT OF VIEW.

I HAVE NO COMPETENCY TO GENERATE POWER, TRANSMIT POWER, OR ANYTHING LIKE THAT.

THAT'S NOT WHAT I DO ON A DAILY BASIS.

BUT I DO UNDERSTAND THAT WHEN I'M OFFERED TO SOLUTION THAT HAS LEGS -- IT MAKES SENSE FINANCIALLY, ECONOMICALLY, AND IT WILL SUSTAIN US FOR THE FORESEEABLE FUTURE. SO, MADAM MAYOR, I'M IN FULL SUPPORT OF WHAT HAS BEEN PRESENTED TODAY.

I'VE A QUESTION: THESE BONES, ARE WE TALKING ABOUT 30 YEARS? WHAT ARE WE TALKING ABOUT AND LENGTH OF DEBT? SERVICING THE DEBT FOR HOW LONG? IS IT GOING TO BE REVOLVING? ARE WE GOING TO KEEP ISSUING BONDS? HOW IS IT REALLY WORKING? OR IS THAT SOMETHING WE WILL HAVE TO FIND OUT AT A LATER TIME? THE TAXES AND BONDS AS WELL?

>> THE TERM THAT WE HAVE USED SIMILAR TO OTHER MUNICIPAL BONDS IS 30 YEARS.

BUT THERE WOULD BE THE OPTION THAT AS REVENUES COME IN, WE WOULD MAKE SURE THERE IS NO PREMIUM PAID FOR EARLY PAYOFF OF THOSE BONDS.

BECAUSE DEVELOPER REVENUES WOULD COME IN IN A WAY THAT MIGHT EVENTUALLY PAY FOR, SAY, 70 PERCENT OF THE OVERALL COST. SHOULD THE FINANCE AUTHORITY BELIEVE THAT SOME OTHER IMPROVEMENTS ARE THEN NEEDED, SAY 12, 13, 15 YEARS FROM NOW? THEN, THEY COULD ISSUE (INDISCERNIBLE) AGAIN OR REFINANCE MUCH LIKE WE ALL DO.

WHILE RATES ARE CREEPING UP, HISTORICALLY, THESE BORROWING RATES ARE VERY, VERY LOW.

AND MUCH LOWER THAN THE COST OF INFLATION. SO WE ARE ALSO BEATING INFLATION BY TRYING TO MOVE FORWARD AS FAST AS POSSIBLE, SO THE COST OF IMPROVEMENTS DON'T CONTINUE TO EAT US ALIVE AS WE

MOVE FORWARD. >> THANK YOU, MR. MONTGOMERY. THAT'S WHY I ASKED THE QUESTIONS.

BECAUSE TAXES AND BONDS BRING THEIR OWN REALITY TO THE TABLE.

AND PAYING THEM UP EARLY IS OFTEN NOT AN OPTION. AND THAT REALLY PROVIDES RESTRICTIONS.

SO THANK YOU FOR THE ANSWER.

THANK YOU FOR ALL THE GOOD WORK THAT IS GOING INTO THIS.

MUCH APPRECIATED! >> THANK YOU!

MAYOR FURMAN. >> THANK YOU, MADAM MAYOR.

FIRST OFF, I WANT TO THANK THE CITY MANAGERS FOR ALL THE HARD WORK THAT WENT ON BEHIND THIS AND THINK ALL THE COMMITTEES. AND THANK IID FOR WORKING WITH US IN COLLABORATING WITH US ON THESE ENDEAVORS. I JUST WANT TO ADD THAT THERE WAS DISCUSSION IN THE (INDISCERNIBLE) STUDY IS ALSO LOOKING INTO MEANS OF WORKING THIS OUT. HOWEVER, WE FELT THAT THIS WAS PROBABLY THE MOST REALISTIC AND VIABLE.

FOR OUR COMMUNITY IN THE COACHELLA VALLEY. SO WE WANTED TO BRING THIS TO OUR OTHER COUNCILS FOR DISCUSSION.

AND THINK THE OTHER CITIES FOR WORKING WITH US IN COLLABORATING ON THIS.

IT WAS TOUCHED ON EARLIER AND I THINK IT'S IMPORTANT THAT WE STRESS THE FACT THAT DUE TO LACK OF -- DUE TO THE VERY EXTREME LOW RATES OF OUR RATEPAYERS IN OUR VALLEY, THERE WAS NO INVESTMENT IN INFRASTRUCTURE. WE ARE PLAYING CATCH-UP, BUT AT A CRUCIAL TIME WHEN RATES AND INFLATION FEES ARE GOING UP.

SO I THINK IT'S IMPORTANT THAT WE START TO TAKE NEXT STEPS AND START TO WORK

[01:00:02]

THE NUTS AND BOLTS OF THIS.

YOU KNOW, ANYTIME YOU TALK ABOUT A SURCHARGE OR A RATE INCREASE, YOU KNOW, THAT'S A DOLLAR AMOUNT OUT OF OUR CONSTITUENTS POCKETS.

WE ARE VERY COGNIZANT OF THAT.

AND IT WAS THOUGHT OF VERY THOROUGHLY, ESPECIALLY IN SOME OF OUR COMMUNITIES THAT ARE BURDENED BY UTILITIES AND ON FIXED INCOMES.

THE CITY OF INDIO HAS A VERY LARGE SENIOR POPULATION AS WELL.

SO THOSE THINGS ARE TAKEN INTO CONSIDERATION. HOWEVER, I THINK WE ARE IN A VERY CRUCIAL MOMENT TO WHERE WE HAVE TO START TAKING THE NEXT STEPS AND FIGURING OUT SOLUTIONS.

INVESTING IN OUR INFRASTRUCTURE.

I ALSO WANT TO BRING UP THE FACT THAT -- SOMEONE FROM IID CAN CORRECT ME -- IID IS A WATER COMPANY THAT HAPPENS TO HAVE POWER. AND THEY SUPPLY IT.

SO I DON'T THINK IID ALSO LOOKED AT THIS DOWN THE ROAD. SO NOW, IID IS MAKING PRUDENT STEPS TO PLAN FOR THE FUTURE AS WELL AS IT PERTAINS TO POWER FOR (INDISCERNIBLE) AND COACHELLA VALLEY.

MY ONLY QUESTION WOULD BE NOW, WHAT WOULD BE THE NEXT STEPS AS FAR AS HOW CAN WE TAKE THE NEXT STEP TO START ORDERING OR INVESTING IN THOSE TRANSMISSION -- INFRASTRUCTURE NOW? BECAUSE OF THE INCREASE IN RATES? I THINK THAT'S THE DIRECTION WE NEED TO START MOVING IN AND TALKING ABOUT.

AND ALSO, AS FAR AS TRANSMISSION LINES -- HOW WOULD THAT WORK, AS FAR AS (INDISCERNIBLE) TRANSMISSION LINES? THANK YOU, MADAM CHAIR.

>> BEFORE WE ANSWER SOME OF THOSE, AND VERY GOOD POINTS, I SEE A RAISED HAND FROM COUNCILMEMBER MILLER.

>> JUST QUICKLY -- I CONCUR WITH EVERYONE THAT WE NEED TO DO SOMETHING.

WE'VE WAITED WAY TOO LONG.

BUT MY CONCERNS ARE ON THE BONDS -- IS THIS GOING TO BE ONE TIME DEAL TO STARKLY IS EACH CITY RESPONSIBLE FOR THEIR AMOUNT FOR EACH OF THEIR TRANSFORMERS? BECAUSE EACH HAVE DIFFERENT NEEDS.

HOW DO WE DIVIDE THAT UP INTO THE JPA AND PAY THINGS OFF AS -- DOES EACH INDIVIDUAL DECIDE THEY'RE GONNA PAY HOURS OFF. AND ALL OF A SUDDEN WE HAVE OTHER ISSUES THAT MIGHT COME AND THAT COULD AFFECT COACHELLA, INDIO, LA QUINTA OR EVEN THE COUNTY? (INDISCERNIBLE) OR ARE THEY SEPARATE FROM THE JPA AND START TO BUY THEIR OWN INFRASTRUCTURE OR DOES IID DO IT? AND THE LAST THING IS, HOW DO WE GO FORWARD WITH THIS WHEN WE HAVE THE COUNTY, WHICH IS A MAJOR COMPONENT OF THESE AREAS, IF THEY ARE NOT ON BOARD? BECAUSE WHAT'S A REALISTIC TIMEFRAME OF GETTING THIS JPA UP AN ORDER? OR IS IID GOING TO DO US A SOLID, AND ALLOW US TO HAVE THEM ORDER THE EQUIPMENT WELL IN ADVANCE HOPING WE WILL WORK OUT A DEAL LATER? BECAUSE STARTING A JPA, PUTTING MONEY ASIDE AND GETTING BONDS -- WE ARE NOT TALKING DAYS, WE ARE TALKING A YEAR IF NOT MORE. AND TWO YEARS ADDING NEW EQUIPMENT.

SO JUST A COUPLE QUESTIONS THAT COULD BE ANSWERED NOW OR LATER.

BUT YOU KNOW, THE FINANCIAL PART OF IT IS GREAT. TO BE ABLE TO LOOK AT IT, BUT WHAT'S REALISTIC. THANK YOU.

AND THANKS FOR ALL THE HARD WORK, EVERYONE.

>> I WOULD LIKE TO HAVE HENRY ADDRESSES. I WOULD LIKE TO ADD WHEN YOU LOOK AT THE RATES WE'VE ENJOYED, AND INEVITABLY THAT POTENTIALLY CHANGING, I WOULD MUCH RATHER HAVE THOSE SITUATIONS IN A STRUCTURE WHEREBY THE RESIDENCE OF EACH CITY THAT ARE CONTRIBUTING, THAT MONEY IS BEING SPENT WITHIN THAT CITY FOR THE NEEDS THAT THEY HAVE, VERSUS HOW 60 PERCENT OF THE REVENUE THAT'S BEING PROVIDED TO IID IS COMING FROM THE COACHELLA VALLEY, BUT WE ARE STILL FACED WITH UPGRADE, TRANSMISSION AND GROWTH CHALLENGES OR LIABILITY CHALLENGES. SO AT LEAST IT'S MANAGING OUR OWN BUDGET, SO TO SPEAK. BUT HENRY, IF YOU COULD ELABORATE ORDERING AND TIMING AND PRIORITIZATION AND SUCH?

>> CERTAINLY. LIKE I MENTIONED BEFORE, SPEAKING WITH THE CITY MANAGERS, THEY GAVE US A LIST OF PRIORITIES. IT'S QUITE LARGE.

IF YOU CAN HANDLE IT! AS I MENTIONED BEFORE, THE STRATEGY THAT WE ARE THINKING ABOUT FOLLOWING IS TO BASICALLY LOOK AT THOSE SUBSTATIONS.

WHERE WE NEED MINIMAL INVESTMENT.

AND GET THOSE TRANSFORMERS EARLY.

(INDISCERNIBLE) POINTED OUT BEFORE THE FUNDING BEGINS.

AS MR. MILLER INDICATED, THIS FINANCIAL (INDISCERNIBLE) STRUCTURE, IT WILL TAKE TIME. NOT ONLY FORMULATED, BUT ALSO GETTING

[01:05:02]

IT THROUGH THE COUNCILS AS WELL.

(INDISCERNIBLE) IF THE COUNTY PARTICIPATES IN THE PROCESS.

SO AGAIN, THE IDEA WOULD BE FOR IID TO BASICALLY USE (INDISCERNIBLE), WHICH IS PRE-ORDERING TRANSFORMERS.

SUFFICIENTLY ENOUGH FOR IF ANY REASON THE FINANCING MODEL TO NOT GO THROUGH, WE ARE NOT GOING TO BE SAYING (INDISCERNIBLE) WE ARE NOT GOING TO USE. BECAUSE WE WILL BE NEEDING THOSE TRANSFORMERS (INDISCERNIBLE).

THAT'S THE RISK THAT WE WILL BE DISCUSSING WITH THE BOARD (INDISCERNIBLE).

AND A LOT OF THIS (INDISCERNIBLE) THE FINANCING AUTHORITY ITSELF.

(INDISCERNIBLE). IN REGARDS TO THE TRANSMISSION.

WE ALREADY KNOW TO SOME EXTENT WHERE THE IMPACTS WILL BE ON THE TRANSMISSION. BUT ALSO, WE HAVE BEEN LOOKING, INDEPENDENT OF THE DISCUSSION WITH (INDISCERNIBLE) FINANCING AUTHORITY, TO DETERMINE HOW DO WE GET MORE SOURCES (INDISCERNIBLE) IN THE VALLEY UP THERE? AND IN A TIMELY BASIS, (INDISCERNIBLE) SUBSTATIONS, BUT ALSO TRANSMISSION (INDISCERNIBLE).

SO (INDISCERNIBLE) IS ALREADY UNDERWAY.

THOSE WILL BE DISCUSSED WITH THE BOARD AND (INDISCERNIBLE) AND CONTRACTS THAT WOULD BE REQUIRED TO AUTHORIZE TO BE ADDED ONTO THE EXPENDITURES.

THOSE, BY THE WAY, WOULD BE BASED ON (INDISCERNIBLE) (INDISCERNIBLE) COST OF TRANSMISSION (INDISCERNIBLE) BASE RATES (INDISCERNIBLE). BUT I THINK BACK TO MR. MILLER'S POINT, WE ARE (INDISCERNIBLE).

I THINK THE ISSUE WOULD BE TO START ORDERING TRANSFORMERS.

(INDISCERNIBLE). WERE STARTING TO GET THE ROLLOUT (INDISCERNIBLE). AND FRANKLY, WORKING WITH (INDISCERNIBLE) AUTHORITY TO DETERMINE WHERE WE PUT THE MONEY. KEEP IN MIND, HE SUBSTATIONS MAY BE LOCATED IN ONE CITY, BUT IT WILL ALSO HAVE IMPLICATIONS OF DISTRIBUTION TO OTHER CITIES ADJACENT TO THE AREA.

SO THAT'S WHERE THE ISSUE OF PRIORITIZATION, (INDISCERNIBLE) RESPONSIBILITY, (INDISCERNIBLE) WILL BE DISCUSSED AND REVIEWED BY THE FINANCIAL AUTHORITY (INDISCERNIBLE).

IN (INDISCERNIBLE) DIRECTIONS OF THE SUBSTATION (INDISCERNIBLE) WHATEVER THOSE (INDISCERNIBLE) HAVE TO BE ADDRESSED.

>> THANK YOU, HENRY.

IF WE CAN TALK THROUGH THE CURRENT PROGRAM THAT IID HAS NOW.

IN THAT PROCESS, HENRY, IF AN ENTITY APPROACHES IID AND SAYS THEY WANT TO DO THIS CONCEPT, SIMILAR TO WHAT WE ARE DISCUSSING TODAY?

>> CERTAINLY. LET ME HAVE JAMIE CONNECT YOU TO THE DETAILS BECAUSE SHE'S A LITTLE MORE VERSED IN THIS PROCESS.

>> YOU ARE TALKING ABOUT THE CUSTOMER PROPOSAL PROCESS? YOU WOULD COME IN (INDISCERNIBLE) AN APPLICATION.

THAT WOULD REQUIRE SIGNIFICANT TECHNICAL INFORMATION ABOUT WHAT (INDISCERNIBLE) YOU REQUIRE.

THEY WILL DO AN ASSESSMENT OF YOUR PROJECT LAYERED ON THE PROJECTS THAT ARE IN LINE BEFORE IT TO THE EXTENT POSSIBLE. A COST ESTIMATE WILL BE PREPARED.

(INDISCERNIBLE) DIALOGUE WITH THE DEVELOPERS. AND A PLAN OF SERVICES DEVELOPED, AND (INDISCERNIBLE) PREDICATED BASED ON CONDITIONS THAT ARE IDENTIFIED IN YOUR (INDISCERNIBLE) PROCESS.

IT CONTAINS A GOOD-FAITH HIGH-LEVEL COST ESTIMATE, BECAUSE WE HAVE NO ABILITY -- AS WE HAVE SEEN IN LAST COUPLE OF YEARS, WE HAVE NO ABILITY TO INFLUENCE THE SUPPLY CHAIN TIMING.

WE ALSO HAVE NO ABILITY TO ADDRESS THE COST OF RAW MATERIALS THAT WE ARE ALSO SEEING A SHORTAGE OF. (INDISCERNIBLE).

[01:10:01]

I'M HAPPY TO DISCUSS ANY PART OF THAT.

YOU CAN SEE IT TAKES A LITTLE BIT LONGER AS YOU GO THROUGH (LAUGHING).

>> AND ULTIMATELY, IT REQUIRES IID BOARD APPROVAL, CORRECTLY.

>> WHEN YOU GET TO THE POINT, MAYOR EVANS, WHEN WE HAVE A PROJECT AND IT'S READY TO GO FORWARD? THE DISTRICT HAS POLICIES AND STAFF HAS TO (INDISCERNIBLE).

EVEN THOUGH IT'S CUSTOMER FUNDED AND BECAUSE THE BOARD HAS THAT FUTURE RESPONSIBILITY. AND BEING A GOOD STEWARD OF THOSE DOLLARS, WE TAKE FORWARD WHAT'S CALLED A MAJOR WORK AUTHORIZATION.

I SEE SOME OF THE PEOPLE ON THIS CALL TODAY ARE MEMBERS OF THE ENERGY CONSUMER ADVISORY COMMITTEE.

SO WE TAKE IT AS A (INDISCERNIBLE) ITEM TO THE ACA C. WE WANT TO MAKE SURE THAT AS COMMUNITY REPRESENTATIVES, WE UNDERSTAND WHAT IS GOING ON.

THAT MEANS (INDISCERNIBLE) SHOWS THE ENVIRONMENTAL COMPONENT.

WE LOOKED AT ALTERNATIVES.

THIS IS (INDISCERNIBLE).

IF THESE ARE OTHER ALTERNATIVES, (INDISCERNIBLE). WHERE THE FUNDING IS COMING FROM, WHERE IN THE CAPITAL BUDGET IT'S COMING FROM.

SO THERE IS COMPLETE TRANSPARENCY IN THESE PROJECTS. AND ONCE THE BOARD APPROVES THAT MWA, THEN WE ARE AUTHORIZED -- STAFF IS AUTHORIZED TO COMMENCE ENGINEERING PROCUREMENT (INDISCERNIBLE) TO MOVE THE

PROJECT FORWARD. >> OKAY.

SO QUESTION FOR MY CITY MANAGER -- WHEN WE LOOKED AT LA QUINTA'S IMMEDIATE NEED, I KNOW WE ALWAYS TALK ABOUT SUBSTATIONS, BUT THEN WE LEARN IT'S ACTUALLY ABOUT TRANSFORMERS.

WHAT IS OUR IMMEDIATE NEED? OR IS IT A COMBINATION OF IMMEDIATE NEED OF GROWTH, AS WELL AS STRESS CAPACITY? BECAUSE THERE ARE AREAS WHERE WE HAVE ZERO CAPACITY AND THE COSTS ASSOCIATED

WITH THAT. >> IT'S AN IMMEDIATE NEED FOR BOTH.

THROUGH THAT PROCESS, REVIEWED OUR 46 PROJECTS THAT ARE LISTED, THAT WE ARE SHARING RIGHT NOW WITH IID.

THEY CAME IN WITH THEIR FIVE YEAR LIST OF PROJECTED PROJECTS.

WE TOLD THEM WHICH PROJECTS THEY COULD SCRATCH AND WHICH PROJECTS THEY HADN'T IDENTIFIED YET. AFTER REVIEWING THAT LIST, YOU KNOW, IN TALKING TO THEIR ENGINEERS, WE IDENTIFIED THREE KEY SUBSTATION UPGRADES. AND SOME OF THEM WERE DESIGNED TO SUPPORT WHAT MOSTLY WOULD BE A NEW PROJECT. WHEREAS, OTHER ONES, WHICH WAS THE MARSHALL ONE, THE MARSHALL SUBSTATION, WHICH I WAS TALKING ABOUT A LOT.

BECAUSE THAT'S THE ONE WHERE THERE'S A PROJECT PROPOSAL FOR 64 AFFORDABLE UNITS. AND OF THAT -- THAT TRANSFORMER OR THAT SUBSTATION IS PRODUCING WAY MORE THAN IT CAN HANDLE AT THIS POINT.

SO YEAH, THE BENEFITS ARE BOTH -- BOTH FOR NEW, AND FOR FUTURE.

BUT THOSE TRANSFORMERS, REALLY, THE DOLLAR AMOUNT OF THAT INVESTMENT AT THIS POINT IS ONLY 2 MILLION, $2.3 MILLION PER TRANSFORMER.

THAT LONG LEAD ITEM.

SO WAS IN ANY CONSTRUCTION PROJECT, GET OUT AHEAD ON YOUR LONG LEAD ITEMS. SO YOU'RE LOOKING AT MAYBE A $7 MILLION INVESTMENT TODAY.

BUT 18 MONTHS FROM NOW, WE MAY BE ORDERING SWITCHGEAR OR OTHER ITEMS THAT MIGHT GO INTO THAT PROJECT AS WELL.

>> THANK YOU.

>> MAYOR, I MIGHT JUST ADD THAT WE'VE LEARNED THERE IS A SIGNIFICANT RATE STABILIZATION FUND THAT IID HAS.

IT MAY BE AVAILABLE AS WE KINDLY AND RESPECTFULLY URGE THE BOARD TO CONSIDER WHATEVER SHARE OF THAT IS FROM THE COACHELLA VALLEY? PERHAPS THAT COULD ASSIST WITH THE EARLY ORDERING OF THESE TRANSFORMERS? AND THAT'S SOMETHING WE WILL CONTINUE TO DISCUSS WITH THE IID TEAM.

>> ALL RIGHT. LET'S SEE, THE HAND IS UP FROM COUNCILMEMBER OPINION.

>> IT MIGHT NOT BE A BAD IDEA TO ESTABLISH AN AD HOC COMMITTEE FOR ALL THREE CITIES. SO WE DON'T LOSE MOMENTUM.

THIS A GREAT BEGINNING, BUT I THINK THIS HAS TO INCREASE.

AND MAYBE THAT'S SOMETHING WE HAVE TO LOOK FORWARD TO IN THE FUTURE, AND KEEP THIS DIALOGUE MOVING QUICKLY?

>> I GUESS, FOR THE EASE OF MULTIPLE MEETINGS, I DON'T KNOW IF PERHAPS WE UTILIZE THE ASSIGNED INDIVIDUALS THAT ARE ON THE CBAC NOW? WHICH IS REPRESENTATION OF EACH OF THE MAYORS. AND CITY MANAGERS HAVE BEEN ENGAGED AS WELL AS IID AND STAFF.

AND WELCOME ANY OTHER INDIVIDUAL WHO HAS A BURNING DESIRE TO BE SO ENLIGHTENED (LAUGHING) BY THE

[01:15:03]

OPPORTUNITIES AND CHALLENGES OF OUR ELECTRICAL PROGRAM THAT WE HAVE IN OUR AREA. IT HAS BEEN QUITE THE LEARNING EXPERIENCE THE LAST SEVERAL MONTHS, FOR SURE! BUT WHEN WE DO LOOK ABOUT NEXT STEPS AND HOW WE CONTINUE TO TALK AMONGST OURSELVES AND WITH IID, AS MAYOR PRO TEM FITZPATRICK INDICATED, IT'S A MATTER OF NEEDING TO SHARE THIS WITH OUR CONSTITUENTS AS WELL.

AND STARTING THOSE DISCUSSIONS.

AND KNOWING THOSE AREN'T EASY DISCUSSIONS TO HAVE AND RECOGNIZING TO TRY TO GET THEM, PERHAPS, RAMPED UP TO WHAT WE'VE GATHERED OVER THE MONTHS WHAT THE FUTURE MIGHT LOOK LIKE -- JUST IN THE LAST WEEK, WE WENT ON A ENERGY TOUR A WEEK AGO THURSDAY.

LOOKED AT ALL THE SYSTEMS. BY SUNDAY, WE HAD TWO POWER OUTAGES IN LA QUINTA. ONE WAS MYLAR BALLOONS AND OTHER ABUSE.

FORTUNATELY, IT WASN'T WINDSTORMS OR DOWNED POWER POLES. BUT YOU THEN CONSIDER HOW FREQUENT DOES THIS HAPPEN, WHAT CAN WE HAVE AS A BACKUP? HOW DO WE ENSURE THAT WE HAVE OTHER THINGS IN PLACE TO MINIMIZE THOSE ON A GO FORWARD BASIS? NOT EVEN CONSIDERING THE GROWTH PIECE.

IT'S MORE ABOUT MAINTENANCE. WE PASSED SOMETHING IN LA QUINTA THAT NEW BUILDS REQUIRE UNDERGROUND UTILITIES. WE QUICKLY LEARNED THAT'S NOT NECESSARILY AFFORDABLE FOR MANY DEVELOPERS. AND WHEN YOU LOOK AT TAKING A SECTION AND DOING AN UNDERGROUND PIECE, THERE ARE SOME NUANCES THAT AFFECT THAT ENTIRE AREA. SO WHEN WE SEE HOW ONE SMALL FRACTION OF POTENTIAL CONTRIBUTION BY ALL OF THE RESIDENCE ACTUALLY BENEFITS THE CITY IN ITS ENTIRETY, BECAUSE WE ARE SEEING THAT DEVELOPMENT THAT COMES IN.

AND UNDERGROUND ACTUALLY DOES PROVIDE VALUE TO THE SURROUNDING AREAS IF THEY CAN GET EXECUTED. SO AS BRIAN SAID, IT'S HOW DO WE TAKE THE SHORT TERM APPROACH NOW, AND START WORKING TOWARDS THAT? AND AS OTHER SOLUTIONS MIGHT COME FORWARD TO THE LEFT COAST STUDY, OR THROUGH OTHER MEANS, AND CONTINUE TO HAVE THIS DISCUSSION.

PERHAPS, LOOK AT A TIMING PIECE -- WHAT DOES THAT TIMING LOOK LIKE TO DEVELOP A JPA FINANCING AUTHORITY? WHAT DOES THE TIMING LOOK AT OUR IMMEDIATE NEEDS FROM ORDERING EQUIPMENT? AND THOSE COSTS ON THOSE POTENTIAL PROJECTS, AND WE LOOK AT TACKLING THEM ON A SMALL SCALE FIRST? DO WE BEGIN DRAFTING DOCUMENTATION AS WE ARE INFORMING RESIDENTS OF A POTENTIAL CONCEPT WITH THIS SURCHARGE? AND WHAT KIND OF TIMEFRAME DO WE COLLECTIVELY THINK WE WOULD WANT TO COME BACK AND CONTINUE THIS DISCUSSION AND CONVERSATION AS WE LEARN MORE?

>> MET AMIR, IF I COULD JUST MENTION THAT YOU DON'T NEED ALL THE CITIES TO COME FORWARD AND TOGETHER.

WHAT I UNDERSTAND IS THE JPA WILL BE AVAILABLE FOR THE CITIES THAT WANT TO PARTICIPATE. SO TRYING TO GET THE CITIES WANT TO PARTICIPATE AND KNOW WHAT THEY WANT TO DO? THEY CAN COME FORWARD.

AT LEAST, FOR ME, I RECOMMEND (INDISCERNIBLE). I THINK THIS IS SUCH A HUGE ISSUE.

ONE WITH A LOT OF SUBSTANCE THAT WE CONTINUE TO HAVE STUDY SESSIONS, DR.

MARTIN, AS A COMMUNITY AND A CITY.

TO FULLY VET THIS OUT AS WELL AS INFORM OUR CONSTITUENTS. THERE IS A LOT OF MONEY ON THE LINE.

IN 2004, THE CITY OF COACHELLA, WE HAVE OUR OWN WATER AND SEWER ISSUE.

$35 MILLION IN BONDS BECAUSE THE ASSUMPTION WAS THAT DEVELOPMENT WAS GOING TO COME. AND THAT WE WERE GOING TO SEE IT.

NEVER CAME AND OUR TAXPAYERS ULTIMATELY GOT HIT WITH A SIGNIFICANT AMOUNT OF WATER AND SEWER RATE INCREASES.

AND LEFT HOLDING THE BILL.

SO WE ARE NOT ONLY TALKING ABOUT THE PUBLIC (INDISCERNIBLE) THE PUBLIC BEING RESPONSIBLE WITH THE RATEPAYERS MONEY.

SOME TO RECOMMEND TO OUR COUNSEL THAT

WE CONTINUE THIS STUDY. >> IS THAT LIKE A ONCE BITTEN, TWICE SHY APPROACH? I MEAN, THAT'S REAL. OTHER COMMENTS?

>> I JUST WANT TO ADD, MADAME MAYOR, ONCE AGAIN I APPRECIATE THE CONVERSATION THAT I'VE HEARD FROM DIFFERENT FOLKS.

(INDISCERNIBLE) IT INCLUDES THE UNINCORPORATED AREAS.

(NAME). YOU'VE HEARD ABOUT WHAT'S HAPPENING IN NORTH SHORE AREA AND THE CONCERNS WE

[01:20:03]

HAVE THERE. DEVELOPERS ARE COMING MY WAY ON A DAILY BASIS. YOU KNOW, WHETHER THEY WANT TO DEVELOP IN THOUSAND POUNDS OR AROUND THE AIRPORT, FOR EXAMPLE.

THERE'S A LOT OF STUFF HAPPENING.

AND GROWTH IS NOT GOING TO STOP.

PEOPLE ARE NOT GOING TO STOP COMING THIS WAY. YOU KNOW? NOT JUST FOR THE FESTIVALS, PEOPLE ARE MOVING IN UNKNOWINGLY.

AND SO, I JUST WANT TO ASK THAT COUNTY STAFF ENGAGE AND BE PART OF WHATEVER THE GROUP DECIDES THAT BECAUSE I ALSO HAVE TO CONSIDER, I'D LIKE FOR ALL OF US TO CONSIDER THE FOLKS LIVING IN UNINCORPORATED AREAS AS WELL.

I APPRECIATE THE CONVERSATION.

THANK YOU. >> THANK YOU. COUNCILMEMBER I MEET, I SAW YOUR HAND

UP. >> THANK YOU.

I JUST WANTED TO INTERJECT A LITTLE BIT. BECAUSE I'VE BEEN HERE A LITTLE BIT LONGER THAN MOST.

I MENTIONED TO SUPERVISOR PEREZ A COUPLE NIGHTS AGO, HE'S 20 YEARS IN THE PAST. I THINK, TONIGHT, WE ARE THINKING ONLY IN THE PRESENT IN THE PAST.

AND WE NEED TO THINK INTO THE FUTURE.

WE ARE NOT TALKING ABOUT THE IMPACTS THAT ARE GOING TO HAVE ON OUR COMMUNITIES TODAY. WE ARE TALKING ABOUT THE LONG-TERM, LONG-RANGE PLANNING.

I SAY THAT, AND THIS IS A STORY THAT MAY BE SOME OF YOU ARE SICK OF WHEN I WAS A LITTLE GIRL GROWING UP IN INDIO, THERE WAS ONLY INDIO AND PALM SPRINGS.

AND I WOULD WALK TO SCHOOL, DOWNTOWN INDIO. AND I WOULD SEE THE POPULATION SIGN.

IT WOULD SAY 6742.

AND I WOULD ASK MY MOTHER EVERY DAY, WHEN IS THAT POPULATION SIGN GOING TO CHANGE? NOW REMEMBER, THE ONLY CITIES WERE INDIO AND PALM SPRINGS.

EVERYTHING IN BETWEEN WAS DUNE PALMS AND UNINCORPORATED AREAS.

BUT HAD NOT OUR FOREFATHERS MADE THE DECISIONS THEY MADE 60 YEARS AGO, TO INVEST IN OUR FUTURE, GROWTH WOULD NOT HAVE HAPPENED. SO I'M ASKING EVERYONE TONIGHT AT THIS MEETING, DON'T BE SHORTSIGHTED.

THINK ABOUT THE FUTURE OF THE COACHELLA VALLEY. IF WE ARE TO GROW BEYOND THE 350,000 THAT WE ARE TODAY, WHICH OUR RESIDENTS DEMAND, BECAUSE THEY DEMAND THE SERVICES AND THE PRODUCTS THAT THEY CURRENTLY HAVE TO DRIVE OUTSIDE OF OUR COACHELLA VALLEY TO RECEIVE OR TO ORDER ONLINE. WE, AS POLICYMAKERS, NEED TO MAKE THOSE DECISIONS TODAY TO MAKE INVESTMENTS IN THE INFRASTRUCTURE THAT WILL SUPPORT THE NEEDS OF OUR RESIDENTS.

AND IF THE RESIDENTS OF TODAY HAVE TO PAY FOR THAT? THEN, I THINK THEY'RE WILLING TO DO THAT, BECAUSE THE RESIDENTS OF TOMORROW WILL CONTINUE TO PAY FOR IT.

SO I WANTED TO GIVE YOU A LITTLE PERSPECTIVE OVER MY 60 YEAR LIFETIME WHAT HAS HAPPENED IN THE COACHELLA, AND WHAT CAN HAPPEN OVER YOUR LIFETIME AND 60 YEARS. BECAUSE I'M NOT GOING TO BE HERE IN 60 YEARS, BUT YOU WILL BE.

IN THE FUTURE WILL BE IN THE DECISIONS

THAT YOU MAKE. >> THANK YOU, LUPE.

MAYOR FURMAN -- IT'S KIND OF LIKE THE 100 YEAR WATER COMPROMISE AGREEMENT!

BUILD IT, AND THEY WILL COME! >> THANK YOU, COUNCILMEMBER.

HE TOOK THE WIND OUT OF MY SALE ON THAT ONE (LAUGHING)! BUT I WANTED TO EXPOUND ON THAT.

I THINK THIS IS A TIME WHERE WE HAVE TO MAKE SIMPLE DECISIONS AND LEAVE THIS IN BETTER SHAPE THAN WHEN WE PICKED IT UP.

SO I'M HOPING MY CITY CAN CONTINUE DISCUSSIONS WITH OUR COMMUNITY AND EDUCATE THE COMMUNITY ON WHAT WE ARE TALKING ABOUT. THIS IS A QUICK LEAD-IN.

HOWEVER, THIS IS A VERY CRUCIAL TIME IN OUR WORLD.

SO I HOPE THAT THE CITY OF INDIO CAN CONTINUE TO HAVE THESE CONVERSATIONS WITH OUR COMMUNITY. I KNOW WE ARE WAITING FOR THE LIFE GO STUDY. BUT I THINK THIS IS PROBABLY THE MOST REALISTIC DIRECTION THAT WE COULD GO.

AND I THINK THIS IS GOING TO BENEFIT US FOR THE FUTURE. SO I'M IN SUPPORT OF GOING IN THIS DIRECTION, IF WE COULD MAKE THAT

HAPPEN. >> THANK YOU.

I APPRECIATE ALL THE INPUT AND FEEDBACK. AND AGAIN, AS OTHERS HAVE ECHOED, THE AMOUNT OF WORK FROM OUR CITY MANAGERS AND IID, AND THE STAFF, TO GET US TO THIS POINT. WHILE THERE HAS BEEN SOME OF THE COUNCILMEMBERS OR MAYORS THAT HAVE BEEN INFORMED ABOUT THIS AS IT GETS DELIVERED, AND/OR THROUGH THE ENERGY COMMISSION, I THINK IT'S IMPORTANT FOR ALL THE COUNCILMEMBERS TO COME TOGETHER TO HEAR THIS COLLECTIVELY AND SHARE QUESTIONS AND THOUGHTS.

BECAUSE THAT'S HOW WE ANSWER MORE QUESTIONS IS BY THE INFORMATION THAT IS SHARED. SO IT SOUNDS LIKE THE GO FORWARD PLAN

[01:25:03]

IS MORE DISCUSSION.

TAKING THIS BACK TO OUR RESPECTIVE CITIES. LOOKING AT, PERHAPS, OUTLINING THOSE IMMEDIATE DEMANDS, PROJECT NEEDS, COST WITH THE IID STAFF? DO WE HAVE THAT SOLID BASIS TO SHARE AND SHOW EXAMPLES OF 1/10 OF ONE PERCENT OF A BILL AND WHAT THAT MIGHT YIELD COLLECTIVELY AS A CITY.

AND IT'S TRUE, IT'S BASED ON WHO OR WHAT ENTITY WANTS TO PARTICIPATE AND ONE. I THINK THERE IS JUST -- COLLECTIVELY, IF YOU HAVE A GOOD IDEA OR IF YOU HAVE POTENTIAL SOLUTIONS, TO BE ABLE TO SHARE THOSE WITH ALL OF OUR REGION.

WE HAVE BEEN SUCCESSFUL WITH REGIONAL PROJECTS IN THE PAST, AND THAT'S WHY IT'S IMPORTANT TO MAKE SURE THERE IS INCLUSION FOR ALL THOSE PARTIES AS WELL. AND I APPRECIATE THE DISCUSSION.

I SEE A HAND BY MAYOR PRO TEM

FITZPATRICK. >> I WOULD LIKE TO SUGGEST THAT SINCE WE ALL TALKED ABOUT GOING BACK AND HAVING STUDY SESSIONS WITH OUR COUNSEL AND TO ALLOW OUR RESIDENTS TO COME IN, THAT PERHAPS WE HAVE A REPORT BACK DATE? 60 DAYS OR SOMETHING SO WE ALL GET TOGETHER AGAIN AND BRING SOME OF THE FEELINGS AND QUESTIONS THAT WE'VE HEARD FROM OUR RESIDENTS BACK? SO THAT WE CAN CONTINUE TO WORK ON THIS FROM A GROUND LEVEL UP.

BECAUSE THIS IS GOING TO BE A GROUND LEVEL UP KIND OF SITUATION, WHERE WE END UP WITH SOLUTIONS.

>> I'M COMFORTABLE WITH THAT.

I'LL DEFER TO CITY MANAGERS ON TIMING.

AND HENRY, IF WE COULD GET SOME DELIVERABLES ON MORE INFORMATION -- CONCRETE PRIORITIZATION'S AND COSTS AND NEEDS BY JURISDICTION?

>> (INDISCERNIBLE) COUPLE OF COMMENTS.

MEETING ON A MONTHLY BASIS, THE CITY MANAGERS, (INDISCERNIBLE) NOT ONLY THE INFRASTRUCTURE NEEDS, BUT (INDISCERNIBLE) THE SUBSTATIONS.

AND TO SOME EXTENT (INDISCERNIBLE).

I THINK WE CAN GET TO A MORE DELIVERABLE SHORT-TERM PLAN HERE IN THE NEXT -- WHEN IS THE NEXT MEETING, BRIAN? THREE WEEKS?

>> IN A FEW WEEKS. >> YEAH.

(INDISCERNIBLE) MEMORIAL DAY WEEKEND.

COME BACK AND AT LEAST PROPOSE A SHORT-TERM PLAN GOING FORWARD.

AND BRIAN, I THINK YOU HAVE SOME OF YOUR CONSULTANTS WORKING ON (INDISCERNIBLE). (INDISCERNIBLE) WHAT IS THE TIMETABLE TO DEVELOP THIS MODEL (INDISCERNIBLE) SO I THINK WE CAN PROVIDE IN A MONTH'S TIME, THE FIRST TWO OR THREE STEPS THAT WE CAN TAKE. AND I (INDISCERNIBLE) DISCUSS THIS WITH THE BOARD.

(INDISCERNIBLE)

>> (INDISCERNIBLE). >> I THINK THAT'S A GOOD GOING FORWARD PLAN. I'M VERY APPRECIATIVE TO ALL THE CITIES AND COUNCILS FOR PUTTING TOGETHER THIS EXCELLENT JOINT MEETING.

I'VE NEVER SEEN ANYTHING QUITE LIKE THIS. I THINK IT'S REALLY HEARTENING TO SEE WHAT'S BEEN ACCOMPLISHED IN A VERY SHORT SPAN OF TIME, AND I THINK THE CITY MANAGERS DID AN OUTSTANDING JOB.

IN TAKING A CRACK AT A PROBLEM THAT WE'VE ALL BEEN ENCOUNTERING'S FOR SEVERAL DECADES. THEY MANAGED TO COME UP WITH A VERY (INDISCERNIBLE) SOLUTION IN A SHORT PERIOD OF TIME.

I THINK THAT'S A REAL TESTAMENT TO WHERE WE ARE GOING AND LOOKING FORWARD TO CONTINUED WORK WITH EVERYBODY.

>> (INDISCERNIBLE) SO THEY CAN PARTICIPATE AND BE ABLE TO

SPEAK. >> I APPRECIATE THAT, AND THANK YOU FOR

(INDISCERNIBLE). >> AND PERHAPS, WE CAN GET THE MAP SET SUPERVISOR PEREZ HAD INQUIRED ABOUT FOR THOSE UNINCORPORATED AREAS? GIVEN THE EXTENSIVE AMOUNT OF PROJECTS IN THOSE UNINCORPORATED AREAS AND THE NEED FOR POWER AS WELL?

>> THANK YOU FOR THAT, MADAM MAYOR.

>> MM-HMM. OKAY.

WELL, I KNOW MANY OF US WILL BE HEADING OVER TO INDIAN WELLS FOR THE CITIES (INDISCERNIBLE) MEETING FOR THE WEEK.

I APPRECIATE THE INVESTMENT OF TIME, AS WELL AS THE INFORMATION PRESENTED.

AND FOR THOSE APPROXIMATELY 27 ATTENDEES BEYOND THIS GROUP OF 34 PANELISTS THAT ARE ENGAGED IN LEARNING MORE AND OBVIOUSLY HAVE A VESTED INTEREST, NOT ONLY FOR NOW BUT FOR THE

[01:30:02]

FUTURE STOP THERE HAVE BEEN LOTS OF DECISIONS THAT MANY PEOPLE IN THE SQUARES IN THEIR TERM AS ELECTED OFFICIALS THAT HAVE BENEFITED WHAT WE ARE ENJOYING IN OUR LITTLE PARADISE IN COACHELLA VALLEY. SO I LIKE TO KEEP THAT THOUGHT IN MIND AND CONTINUE THAT MOMENTUM.

>> JUST REAL QUICK BEFORE WE END.

YOU KNOW, (INDISCERNIBLE) I WAS ON THE SCHOOL BOARD. PART OF THE WEST SHORES AREA AND (INDISCERNIBLE) COUNTY.

I KNOW WE ARE IN COACHELLA VALLEY, BUT THE WEST SHORES COMMUNITY (INDISCERNIBLE) THERE ALSO NOT PART OF THE IID VOTING TERRITORY AND PART OF THE COACHELLA VALLEY. SO I WANTED TO POINTED OUT TO DIRECTOR (NAME) TO REACH OUT TO THE SUPERVISOR FOR THAT REGION. AS WELL AS FOLKS WHO REPRESENT THOSE COMMUNITIES. BECAUSE THEY'RE NOT PART OF THE COACHELLA VALLEY, BUT THEY'RE NOT PART OF IID. SO I WANTED TO HIGHLIGHT THAT.

THEY AREN'T MY CONSTITUENTS ANYMORE, BUT I KNOW THESE FAMILIES PRETTY WELL.

SO I JUST WANTED TO MENTION THAT BEFORE

WE END. >> AND THAT'S A VERY GOOD POINT.

WE DO HAVE ONE WOMAN ON OUR COACHELLA VALLEY ENERGY COMMISSION. SHE REPRESENTS THAT AREA.

IT'S A UNIQUE AREA.

IT'S NEITHER REALLY COACHELLA OR IMPERIAL. BUT AS YOU MENTIONED, THE DESERT SHORES COMMUNITY -- EVEN IN BOMBAY BEACH.

IT'S A UNIQUE SITUATION WHERE WE WANT TO MAKE SURE THOSE VOICES ARE LIFTED UP AND ARE TAKEN CARE OF BY EVERYONE HERE.

>> THANK YOU. OKAY.

WITH THAT, I WILL ENTERTAIN A MOTION TO

ADJOURN. >> ADJOURNMENT!

>> SECOND, INDIO!

>> ALL RIGHT, EVERYBODY CAN WAIVE COLLECTIVELY! I JUST WANT TO SAY THANK YOU AGAIN, AND APPRECIATE YOUR TIME. I LOOK FORWARD TO US RECONVENING FOR ADDITIONAL DISCUSSION AND INFORMATION.

HAVE A WONDERFUL EVENING, EVERYBODY.

THANK YOU!

* This transcript was compiled from uncorrected Closed Captioning.