ADMINISTRATIVE REPORT
MEETING DATE: June 25, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: April 15, 2025
SUBJECT: Agreements with Willdan (ESCO) for Investment Grade Audit and Development and Implementation of Energy Efficiency Projects:
1. Agreement with Willdan Energy Solutions (no compensation at this time) to perform a preliminary Investment Grade Audit of City-wide facilities to develop energy savings projects.
2. Agreement with Willdan Energy Solutions (not to exceed $52,500) to perform an Investment Grade Audit to find energy savings related to Zero Emissions Infrastructure for the City’s Fleet Services Division.
RECOMMENDATION:
Staff recommends approval of the agreements.
BACKGROUND:
Staff is recommending the approval of two agreements pertaining to complementary scopes of work. The first agreement is for a Multi-Phase Investment Grade Audit and Energy Savings Performance Contracts, while the second pertains to a Zero Emissions Infrastructure for the Fleet Services Division. The approval of these agreements will establish a crucial foundation for the development of Investment Grade Audits (IGAs), focused on identifying and advancing potential energy efficiency and energy savings projects, thereby enabling the City to realize cost savings.
Multi-Phase Investment Grade Audit and Energy Savings Performance Contracts On July 31, 2024, the Public Works Department issued a Request for Qualifications (RFQ) for qualified Energy Services Companies (ESCO s) to execute an Investment Grade Audit (IGA) and identify, develop, and potentially implement Energy Efficiency Capital Improvement Projects using the Design -Build method. This multi-phase, turnkey energy efficiency program includes:
Energy auditing and benchmarking
Design, engineering, and permitting
Construction and implementation
Performance monitoring and ongoing services
Eight proposals were received. A selection committee, using RFQ -defined criteria—including approach, experience, references, qualifications, and overall proposal quality —shortlisted three firms: ENGIE Services U.S. Inc., Noresco LLC, and Willdan. These fir ms participated in Oral Appraisal Interviews on October 24, 2024.
Willdan received the highest score (91.25) and was selected to proceed. The engagement includes three phases:
Phase 1: Preliminary Investment Grade Audit Analysis
Willdan will conduct a city-wide preliminary analysis of buildings, facilities, and infrastructure to evaluate potential energy and cost-saving measures. The City incurs no cost for this phase.
Phase 2: Detailed Investment Grade Audit
If the City elects to continue, Willdan will develop detailed scopes of work, guaranteed maximum pricing, projected savings, funding options, and schedules. A not-to-exceed fee of $289,761 applies only if the City does not proceed with any project. If the City moves forward with one or more project s, there is no fee for the IGA.
Phase 3: Project Selection and Potential Contracting
If implementation costs are offset by avoided expenses, the City may enter into an Energy Savings Performance Contract (ESPC) with Willdan. The City is only responsible for the IGA fee if no project moves forward.
Upon Council approval for this agreement, staff will issue a notice-to-proceed for only Phase 1 at this time.
Staff will bring this item back to City Council after Phase 1 is completed and appropriate funds in the Public Work’s Capital Improvement Program prior to moving forward into Phase 2.
Zero Emissions Infrastructure for the City’s Fleet Services Division The scope of the RFQ also includes developing an IGA for converting the City Fleet to Zero -Emission alternatives and deploying Electric Vehicle (EV) charging infrastructure. This effort supports compliance with California Air Resources Board (CARB) regulations such as:
Advanced Clean Fleets Rule
Zero-Emission Forklift Regulations
Advanced Clean Cars II
Small Off-Road Engine (SORE) Regulations
Services include:
Fleet decarbonization planning
Conceptual infrastructure design
Final design of selected upgrades
Energy and maintenance savings estimates
Construction cost projections
Upon completion of the IGA, If the City proceeds with at least one developed project, there is no cost. If not, a not-to-exceed fee of $52,500 applies.
FISCAL IMPACT:
There is no fiscal impact for Phase 1 of the preliminary investment grade audit for City-wide facilities.
Phase 1 of the project includes the Zero Emissions Infrastructure and Fleet Investment Grade Audit, t he City has secured a $379,310 grant from the U.S. Department of Energy through the Energy Efficiency and Conservation Block Grant Program. This funding supports the Zero Emissions IGA and serves as a financial safeguard in the event the City does not proceed with implementation.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. COB-Willdan Multi-Phase IGA Agreement with Exhibits_Willdan signed
2. COB-Willdan Zero Emissions IGA_Willdan signed