From:Michael Harrington
To:Kristie Ramos, CMC
Subject:Agenda Item 3A Special Council Mtg
Date:Friday, February 20, 2026 9:48:45 AM
Attachments:Rancho_Mirage_Special_Meeting_Public_Comment_Item_3A_Michael_Harrington.pdf CAUTION: This email originated from outside The City of Rancho Mirage. DO NOT CLICK links or open attachments unless you recognize the sender and know the content is safe.
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Make sure you trust this sender before taking any actions. I attached a pdf to print as my written comment ; also may I ask what time on 2/19/2026 the agenda was posted ? Respectfully, Michael Harrington
Mike Harrington
Rancho Mirage Special Meeting – February 20,
2026 – 3:00 PM
Item 3A – Written Public Comment
OPPOSED as Written – Request for Continuation
and Further Review
Submitted by: Michael Harrington This written public comment respectfully requests that the City of Rancho Mirage continue Item 3A for further review. The proposed Funding and Reservation of Capacity Agreement with Imperial Irrigation District (IID) contains significant structural, financial, and legal risks that warrant additional analysis prior to approval.
1. Non-Refundable Payments and Broad Cost Exposure
Payments are unconditional and nonrefundable, even if the project is delayed, CEQA fails, or another participant defaults. Rancho Mirage may face increased financial obligations if other participants default, while IID’s contribution remains fixed at 18%.
2. IID’s Broad Discretionary Authority
IID retains sole and absolute discretion over capacity allocation, substitute participants, assignments, and regulatory determinations, with limited objective standards or reasonableness constraints.
3. CEQA Risk Allocation
Although IID serves as CEQA lead agency, environmental compliance costs, mitigation measures, and potential litigation exposure are effectively borne by participants and developers.
4. Capacity Reservation and Maintenance Fee Risk
If less than 50% of reserved capacity is used within 10 years, a Capacity Maintenance Fee of $100 per unused kVA applies. Failure to pay may result in termination of reserved capacity.
5. Reallocation Risk Upon Default
If a participant defaults, IID may reallocate costs among remaining participants without adjusting its own 18% contribution.
6. Alternate Site Liability
If the originally identified site is not dedicated, participants may be jointly and severally responsible for identifying and acquiring an alternate site.
7. Venue Outside Riverside County
All litigation must be filed in San Diego County, increasing cost and limiting local jurisdictional convenience.
8. IID Regulations Supersede Agreement
IID’s Regulations, Developer Energy Planning Guide, and Substation Guidelines govern over the Agreement and may be amended over time.
9. No Completion Guarantee
IID is not liable for delays and is only required to use commercially reasonable efforts, while participants must fund costs in advance.
10. Limited Reimbursement from Third Parties
Although reimbursement mechanisms are referenced, the Agreement anticipates full subscription, making reimbursement unlikely.
Given the magnitude of potential financial exposure, discretionary authority imbalance, and long-term infrastructure implications, approval as written would not be prudent without additional review, clarification, and potential renegotiation of key provisions. Accordingly, I respectfully request that Item 3A be continued to a future meeting to allow for detailed legal, financial, and policy analysis. Respectfully submitted, Michael Harrington