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Stronghold Details Two Years of Competitive Procurement, $8 Million Invested, and Substantive Work Delivered as Part of Its Contractual Obligations
Stronghold says it invested $8 million and kept performing after Coachella moved to end the agreement, which it says would forgo $54.2 million yearly.
- On September 3, 2026, Stronghold Power Systems released an analysis claiming the City of Coachella's breach of their Municipal Utility Development Agreement could cost the public approximately $54.2 million annually in lost recurring revenue.
- Following a two-year competitive procurement process, the City Council approved the agreement on February 11, 2026, before voting to terminate the contract on June 4, 2026, with notice sent June 11.
- Stronghold expended approximately $8 million of its own capital on the project, while projected annual losses include approximately $3 million for the City, $22 million for utilities, and $29.2 million for local agencies including Riverside County and Coachella Valley Water District.
- Scott Bailey, Chairman and Chief Executive Officer of Stronghold Power Systems, stated the company would rather resolve the issue than litigate, noting they continued delivering design documentation through August 2026 despite termination.
- The City Council never held a public hearing or voted on the project itself, according to the company, which continues seeking negotiated resolution over litigation regarding the terminated contract.
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Stronghold Details Two Years of Competitive Procurement, $8 Million Invested, and Substantive Work Delivered as Part of Its Contractual Obligations
Company publishes analysis projecting $54.2 million a year in recurring public revenue forgone, and repeats its offer to work with the City of Coachella
Coverage Details
Total News Sources16
Leaning Left0Leaning Right1Center13Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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