ADMINISTRATIVE REPORT
MEETING DATE: April 8, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: March 24, 2026
SUBJECT: City-Wide Investment Grade Audit Phase 2 Backout Provision
1. Create Project Number for City-Wide Multi Phase Investment Grade Audit
2. Appropriate $289,761 from the Capital Outlay Fund balance to the Public Works Capital Improvement Program (CIP) within the Capital Outlay Fund to provide compensation to Willdan Energy Solutions, contingent upon the Backout Provision established in Agreement No. 2025-105 for Phase 2.
RECOMMENDATION:
Staff recommends approval for creation of project number and appropriation of funds.
BACKGROUND:
On June 25, 2025, the City of Bakersfield entered into Agreement No. 2025 -105 with Willdan Energy Solutions for a multi-phase Investment Grade Audit (IGA) project. The agreement provides that, following completion and review of the Preliminary Investment Grade Audit (Phase 1), the City may elect to proceed to Phase 2.
Phase 2 consi sts of a comprehensive Investment Grade Audit that will identify and evaluate turnkey energy conservation measures across City facilities. The audit will include detailed recommendations, funding analyses, implementation strategies, and Guaranteed Maximum Prices for each proposed project.
Phase 1 was completed at no cost to the City. Compensation for Phase 2 is contingent upon the City’s decision to proceed with one or more of the projects identified in the audit, in accordance with the procedures outlined in Agreement No. 2025 -105. If the City elects not to proceed with any of the recommended projects, the agreement requires payment to Willdan Energy Solutions in the amount of $289,761, pursuant to the backout provision.
Conversely, if the City elects to proceed with at least one project under an Energy Savings Performance Contract (ESPC), the backout provision will not be triggered, and only payment for the respective project(s) will be required (no extra compensation to Willdan for performing the Phase 2 work). Work for Phase 2 will commence upon a written Notice -to-Proceed issued by Public Works Staff. The previous approved agreement, outlining the scope of work of Phase 1 and Phase 2, is attached for reference,
FISCAL IMPACT:
Funds in the amount of $289,761 will be appropriated from the available Capital Outlay Fund balance to cover the potential backout provision. Actual expenditure of these funds is contingent upon the City’s decision not to proceed with any projects identifi ed through the Investment Grade Audit. While the provisional funds are General Fund, Willdan Energy will provide the City a cost breakdown based on the areas investigated during Phase 2. These will include operations and infrastructure within the General, Refuse, Water, Sewer, and Equipment funds. If the City pays the backout provision, the money will be paid proportionally from each different fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Agreement No. 2025-105