ADMINISTRATIVE REPORT
MEETING DATE: November 19, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: November 13, 2025
SUBJECT: Amendment No. 1 to Agreement 2025-164 with Willdan Energy Solutions
(not to exceed $344,240) to allow for the procurement of a battery for our solar project.
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
On August 27, 2025, City and Wil ldan entered into Agreement 2025-164 whereby Willdan agreed to, among other things, conduct an investment grade energy audit to identify energy savings, as well as provide support for the installation of solar panels and a battery system at the Water Resources Building.
Certain changes to Federal law, recently included the expiration of the Solar Investment Tax Credit (“ITC”), which necessitated the purchase of certain battery materials in order to fully realize all anticipated savings.
The Amendment enables Willdan to procure certain materials and equipment such that City will be able to capture savings under the ITC, which is scheduled to expire on December 31, 2025. Based on a Rough Order of Magnitude cost estimate of $3.44 million for the Battery Energy Storage System Project, City will need to safe harbor the battery prior to the expiration of the ITC to be eligible for the 30% ITC savings.
FISCAL IMPACT:
There is no impact to general fund. Funds are budgeted within the Domestic Capital Improvement Fund for this Project.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. Amendment No. 1 to Agreement No. 2025-164
2. Exhibit E