The Rancho Cordova City Council voted to authorize the city manager to enter a sole‑source professional services agreement with the Human Machine Collaboration Institute and to appropriate $5,000,000 from the Community Enhancement and Investment Fund to help create a Rancho Cordova AI and robotics ecosystem. The council also authorized the city manager to sign a joint memorandum of understanding with NVIDIA; the motion passed 4‑1.

The initiative, presented by City Manager Michael Runner and Economic Development Manager Laura Fickle, is designed as a two‑year, public‑private effort to attract AI firms, develop workforce pathways and reinvest revenue into local infrastructure. Runner described the proposal as “an innovative new way to approach how we do business in Rancho Cordova,” focusing on power, real estate, connectivity and workforce training.

Why it matters: Council members and local partners said the program aims to position Rancho Cordova as a regional hub for AI and robotics while creating local career pathways. The plan ties together the Human Machine Collaboration Institute (HMCI), NVIDIA, the Sacramento Municipal Utility District (SMUD), Folsom Cordova Unified School District, Folsom Lake College and UC Davis for research, training and infrastructure.

HMCI founder and CEO Sadie St. Lawrence said the institute will act as “the facilitators and partners with the city,” explaining HMCI’s role in research, education and matching curriculum to local opportunities. JP, HMCI’s chief innovation officer, outlined three pillars for the project—sustainability, workforce and innovation—and described an “IR2 reinvestment model” intended to convert power usage into a funding stream to support workforce programs.

Staff recommended the agreement be structured as milestone‑based payments tied to deliverables, including a proprietary orchestration management platform, a digital twin pilot, and reporting on key performance indicators. HMCI’s presentation set specific two‑year targets: 400 program completions through apprenticeships and skills training, more than 1,000 individuals engaged through outreach and events, and two to three research projects or pilots.

Public commenters included Eric Swanson, superintendent of Folsom Cordova Unified School District, who said the district’s 22,500 students could benefit and noted the school board had approved a purchase agreement for a 100,000‑square‑foot site intended for an innovative choice high school. Diane Rogers, president and CEO of the Rancho Cordova Area Chamber of Commerce, and representatives from NVIDIA and local businesses also voiced support, stressing workforce readiness and small‑business interest in AI tools.

Council discussion emphasized fiscal and governance safeguards. Vice Mayor Gatewood, who moved the motion, said staff would be held accountable for implementation. The council directed that the professional services agreement include final scope, governance, timelines and milestone‑based payments and that the agreement comply with applicable state and local law.

The council’s action authorizes the city manager to execute the agreement subject to city attorney approval as to form and to appropriate up to $5,000,000 from the Community Enhancement and Investment Fund legacy balance to fund eligible activities under the plan.

The city and HMCI will return with governance details and milestone reports as the project proceeds.