ADMINISTRATIVE REPORT
MEETING DATE: August 27, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: August 15, 2025
SUBJECT: Agreement with Willdan (ESCO) (no compensation at this time) to perform a preliminary Investment Grade Audit of Water Department facilities to develop energy savings projects.
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
Staff is recommending approval of this agreement for the Multi-Phase Investment Grade Audit and Energy Savings Performance Contract. The approval of this agreement will establish a crucial foundation for the development of Investment Grade Audit s (IGAs), focused on identify and advancing potential energy efficiency and energy savings projects thereby enabling the City and Water Department to realize cost savings.
Multi-Phase Investment Grade Audit and Energy Savings Performance Contract On July 31, 2024, the Public Works Department issued a Request for Qualifications (RFQ) for qualified Energy Services Companies (ESCOs) 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 firms 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 preliminary analysis of Water Department buildings, facilities, and infrastructure to evaluate potential energy and cost -saving measures. The City incurs no cost for this phase.
Phase 2: Detailed In vestment Grade Audit - If the Water Department 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 $31,428 applies only if the Water Depa rtment does not proceed with any project. If the City moves forward with one or more projects, 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 w ill bring this item back to City Council after Phase 1 is completed and appropriate funds in the Water Department’s Capital Improvement Program prior to moving forward into Phase 2.
FISCAL IMPACT:
There is no fiscal impact for Phase 1 of the IGA. Funds are budgeted within the Water Department’s Capital Improvement Project for FY 2025-26.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
COB-Willdan Multi-Phase IGA Agreements with Exhibits_Willdan Signed