CC_Agenda_01-21-2026_Item_19 — Calexico City Council, January 21, 2026 (part 1 of 2)

INFRASTRUCTURE MODERNIZATION &

UTILITY SAVINGS PROGRAM
REQUEST FOR PROPOSAL (RFP) NO. 2025-700
City of Calexico | Attn: Jesus Villegas-Peimbert
Due & Submitted: November 12, 2025 | 3:00 pm
November 12, 2025
Jesus Villegas Peimbert
Public Works Director/City Engineer
City of Calexico
608 Heber Avenue
Calexico, CA 92231
Dear Mr. Villegas Peimbert,
Thank you for the opportunity to partner with the City of Calexico in addressing infrastructure needs while navigating today’s financial pressures. We understand the importance of protecting your general fund through thoughtful funding solutions, performance-based outcomes, and a delivery approach that is as fiscally responsible as it is impactful. Our team recognizes the weight of this solicitation and the deliberate process the City will follow in selecting a qualified partner.

With the right energy services partner, the project ahead will provide measurable relief by helping the City overcome the effects of deferred maintenance and take full advantage of today’s funding and rebate opportunities. To ensure Calexico meets its objectives, we encourage the selection committee to consider key distinctions that define top-tier performers in the municipal energy and infrastructure space:

1. LOCAL REFERENCES
Above all, check references! True performers should have a proven track record demonstrating their expertise in developing comprehensive modernization and utility savings programs.

2. AGREEMENTS & PRICING
Assess if the pricing and agreement terms are straightforward and free of exit fees/penalties, proprietary software, and obligatory maintenance/monitoring agreements.

3. BUDGET & TIMELINE CERTAINTY
Qualified firms should have a demonstrated track record of on-time, on-budget performance, without litigation history.

4. FUNDING EXPERTISE
Verify if the firm has in-house capabilities to provide turn-key application assistance for the influx of grant funding opportunities from federal, state, and local programs.

5. CORPORATE STABILITY & FINANCIAL STRENGTH
Look for signs of corporate strength such as stability of parent company, ownership structure (privately held vs. publicly traded vs. private equity), frequency of name changes, debt structure, local decision making, and local resource capacity.

We are ready to deliver a customized infrastructure modernization program that supports Calexico’s fiscal and strategic objectives. We look forward to the opportunity to serve you! Sincerely,
Ashley Lough
Ashley Lough
Director of Energy Services | Direct: (602) 400-2859 | [email protected] For correspondence related to this RFP, please contact Ryan Crowell at (949) 473-1724 | [email protected] 13715 Stowe Drive
Poway, CA 92064
Phone: (888) 827-7153
Fax: (602) 674-1279
TAB 1: EXECUTIVE SUMMARY ..........................................................................................1 TAB 2: APPROACH & SCOPE OF WORK............................................................................7 TAB 3: WORK SCHEDULE.................................................................................................17 TAB 4: QUALIFICATIONS & EXPERIENCE..........................................................................18 TAB 5: REFERENCES........................................................................................................26 TAB 6: LITIGATION DISCLOSURE.....................................................................................34 TAB 7: MEDIA ATTACHMENTS..........................................................................................35 TAB 8: FUNDING SOURCES..............................................................................................36 TAB 9: SAVINGS ...............................................................................................................38 TAB 10: CONTRACTS, FORMS & PRICING........................................................................42 TAB 11: ADDITIONAL INFORMATION................................................................................43

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CONTRACTOR QUALIFICATIONS
TAB 1: EXECUTIVE SUMMARY

A CURATED APPROACH FOR CALEXICO
Calexico’s thoughtful design, funding, and implementation of an Infrastructure Modernization and Utility Savings Program (Program) marks a cornerstone effort in fulfilling its mission of improving the quality of life for its residents, developing a strong and sustainable economy, enhancing public services, and strengthening its identity as a border city. By taking a proactive step towards energy efficiency and sustainability, the City will provide effective municipal services while preserving and enhancing its natural resources, distinctive character, and unique heritage.

City leaders and Council recognize the importance of streamlining the delivery methods by which it pursues energy infrastructure and clean energy initiatives. The current budget, staffing constraints and the construction climate have made it increasingly difficult to allocate adequate resources to maintain energy, gas, and water infrastructure efficiency. As Imperial Irrigation District (IID) continues to impose double digit rate increases year after year, the cost of doing nothing has compounding effects on the City’s efforts to balance its budget.

Climatec’s business philosophies are centered on helping municipalities achieve fiscal and environmental stewardship. As the recognized market leader in public sector infrastructure modernization and utility savings, we understand the pivotal roles energy efficiency and sustainability play in achieving Calexico’s program goals. We tailor each step to meet the City’s unique needs, various stakeholder expectations, and adjust our approach as needed.

Climatec has an innate understanding of the complexities that current administrators face in pursuing a City-wide program that encompasses:
◼ Achieving long-term cost savings from energy efficiency & sustainability measures ◼ Modernize antiquated & inefficient equipment
◼ Create a comfortable & safe working environment
◼ Maintain building functionality & compatibility with existing equipment ◼ Improve utilization of technology to achieve optimum performance & savings ◼ Minimize financial & technical risk to the City
◼ Provide training to employees on maintenance & repair of equipment/controls ◼ Identify comprehensive funding solutions

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KEY DIFFERENTIATING FACTORS & AREAS OF EXPERTISE

LOCAL REFERENCES
Positive References
We often hear during competitive RFP selection processes that reference checks are one of the main contributing factors for selecting Climatec. We strongly encourage the evaluation committee to reach out to our references provided in Tab 5:

References to hear what our customers have to say about their Climatec experience.

As our project histories and customer testimonials
demonstrate, Climatec has provided comprehensive
infrastructure modernization and utility savings programs for hundreds of public entities across California, particularly in and around Imperial County. Our reference base not only demonstrates our ability to deliver successful projects, but also reflects our unwavering commitment to delivering on our promises, even in the face of design or implementation challenges.

When modernizing public infrastructure, nearly 100% of projects have encountered challenges at one point or another. Climatec believes it is how we respond to these challenges that defines our brand and customer’s experience. It is crucial to partner with a company that has a genuine desire to serve its customers' long term best interests. ✓ LOCAL REFERENCES
✓ STRAIGHTFORWARD AGREEMENTS & PRICING
✓ BUDGET & TIMELINE CERTAINTY
✓ FUNDING EXPERTISE
✓ CORPORATE STABILITY & FINANCIAL STRENGTH

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Imperial Valley & IID Expertise Track Record
Climatec has provided comprehensive infrastructure modernization and utility savings programs to hundreds of public entities across the State of California, specifically in Imperial County and other local desert communities. Some of these customers include:

City of Blythe
City of Escondido
City of Fountain Valley
City of Indio
City of Jurupa Valley
City of Laguna Beach
City of Seal Beach
City of Twentynine Palms
Alvord USD
Apple Valley USD
Brawley Union HSD
Calexico USD
Calipatria USD
Centralia ESD
Coachella Valley USD
Corona-Norco USD
Eastside Union SD
Escondido Union HSD
Heber ESD
Hesperia USD
Holtville USD
Keppel USD
Lakeside Union SD
McCabe Union ESD
Meadows Union SD
Needles USD
Palm Springs USD
Ramona USD
Saddleback Valley USD
Seeley Union SD
Val Verde USD
Victor Valley UHSD
Having local Imperial Valley experience and a strong reference base is incredibly important for the evaluation team to consider when selecting an energy services partner. For instance, Imperial Irrigation District (IID) is unlike any other utility provider in the State, and the rates structures are unique to all California utilities. Climatec has a tremendous amount of experience in working with IID and its representatives to obtain rebates/incentives and follow local protocols when upgrading electrical and water infrastructure. Our relationship with IID can serve as an asset and value-added service as the City looks for solutions to increase local electrical capacity and attract development.

Another key advantage of our local experience is our firm’s proven ability to deliver comprehensive project development, engineering, funding, and construction services , ensuring programs are completed on time and within budget. Our strong network of local references can attest to Climatec’s unmatched track record of providing exceptional customer service and robust resources to public agencies throughout the Imperial Valley.

Our references illustrate that 70% of our business comes from repeat, satisfied customers – particularly in Southern California.

STRAIGHTFORWARD AGREEMENTS & PRICING
A common theme you hear when contacting
customer references is that Climatec is easy to do
business with. This starts with having
straightforward agreements and transparency
during assessments, design, funding discussions,
implementation, and monitoring. You will find that
we are amenable to modifying our agreement terms
to ensure fair, win-win outcomes. Legal review and
accepting redlines is something we do within a
couple of hours, instead of the industry norm,
which usually takes weeks or months.

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When it comes to pricing, we provide investment-grade assessments at our risk with no cost obligation for the city. If Climatec develops a program that meets the needs of Calexico, our profit fee for program implementation is 5% of the turn-key project amount.

Costs for design, engineering, project management, and general conditions are included in a not-to-exceed price and consistent with industry standards.

During construction, we bill progress payments for percentage complete according to AIA standards. Our agreements are written as such to eliminate change order risks unless the city requests a scope modification.

In summary, there’s no fine print with Climatec.

BUDGET & TIMELINE CERTAINTY
In today’s construction environment,
partnering with a single design-build
provider is the most effective way to ensure
budget and timeline certainty, particularly
within fixed-price energy programs that
protect agencies from rising equipment and
labor costs. A turn-key approach also
simplifies funding applications, ensures
compliance with reporting requirements,
and provides clear accountability for savings
projections and performance.

Climatec has more experience delivering large-scale energy service programs under current market conditions than any other provider in California. Our customers typically achieve a 15–20% reduction in construction costs and an average 2:1 savings-to-investment ratio. ◼ Reduced architectural and engineering (A/E) fees
◼ Expedited project delivery timelines
◼ Elimination of change orders and inflation-related price increases ◼ Access to economies of scale, buying power, and preferred pricing ◼ Increased staff efficiency & reduced utility/maintenance costs With a proven track record of delivering complex infrastructure modernization and utility savings programs, Climatec is uniquely positioned to bring high-impact, reliable results to Calexico’s Citywide efficiency and resiliency initiatives.

FUNDING EXPERTISE
Today, more funding is available from grants, incentives, and rebates than ever before.

Federal, state, local, and private sector programs offer public agencies opportunities to relieve capital funds and leverage significant general fund savings. Partnering with an expert in securing these funds is crucial.

Climatec excels in identifying funding options for energy efficiency, sustainability and resiliency, providing white-glove support for the city and your finance team.

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Our team has successfully guided public agencies through the process of accessing over $1.5 billion in funding from a wide array of budget-neutral funding sources, including:
◼ Federal Stimulus Programs
◼ Inflation Reduction Act (IRA)
◼ California Energy Commission (CEC)
◼ Utility Incentives/Rebates
◼ Department of Water Resources (DWR)
◼ California Air Resources Board (CARB)
◼ Department of Energy Funding
◼ 0% Interest Financing Programs
◼ Private Sector Funding
◼ Self-Generation Incentive Program
(SGIP)
◼ State of California Programs
◼ Imperial County Air Pollution &
Control District (ICAPCD)
◼ Federal Renewable Fuel Standard
Program
◼ Low Carbon Fuel Standard Credits
(LCFS)
◼ California Dept. of Resources
Recycling & Recovery (CalRecycle)
◼ Drinking Water & Wastewater Program
◼ Strategic Growth Council’s (SGC)
◼ Community Resilience Centers (CRC)
◼ Public Private Partnerships
Additional details regarding potential funding source options, as well as Climatec’s expertise in this area, are included in Tab 8: Funding Sources.

We recognize the City of Calexico’s current commitment to balancing essential services while addressing long-standing infrastructure needs. Our approach is designed to maximize available grants, rebates, and operational savings opportunities, delivering essential improvements without further burdening the general fund.

CORPORATE STABILITY & FINANCIAL STRENGTH
As a wholly owned subsidiary of Bosch, Climatec
is backed by an ‘A’ credit-rated, $104 billion
global engineering and technology company that
is privately held and 94% owned by a non-profit
charitable trust. Our private ownership structure
enables us to make business decisions that prioritize the best interests of our customers, rather than shareholders and corporate executives.

Many emerging or outdated energy and solar companies are often bought, sold, and restructured, resulting in unfavorable outcomes for their customers and unfulfilled promises. It is possible some firms responding to this RFP have changed their names and restructured several times. In contrast, Climatec has maintained the same name and never transferred our energy service agreements to a third party. As a debt-free company, we offer stability and reliability to assure long-term performance for your infrastructure’s lifecycle. We pride ourselves on transparency, local decision making and a customer-centric approach that allows us to be flexible when it comes to tailoring a program to meet our customer’s needs.

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OUR PROMISE TO CALEXICO
If selected, Climatec will devote itself to shaping our approach around Calexico’s specific objectives, challenges and priorities. As our references, project team and approach will validate in the following sections, Climatec is regarded as an industry leader and we set the benchmarks for the highest standards in project design, implementation, and savings performance. We promise to deliver the City’s comprehensive program within budget while adhering to an unwavering code of safety, ethics, and professional conduct.

To reduce strain on City staff, we will dedicate a single point of contact across all stages, offering maximum accountability and continuity throughout the program. Our streamlined approach will ensure successful delivery to the City of Calexico.

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TAB 2: APPROACH & SCOPE OF WORK

PROJECT APPROACH
Climatec looks forward to the opportunity to partner with the City of Calexico, refine our understanding of your technical, financial and political goals, and collaborate to fund and deliver a comprehensive infrastructure modernization and utility savings program. This program will provide tremendous financial benefits for the City by leveraging utility and operational savings to fund infrastructure improvements and to relieve the City’s general and enterprise funds.

Climatec’s project approach is tailored to meet the
unique needs, beginning with a clear understanding of
priorities and close collaboration with staff to develop a strategy for achieving the desired improvements and
funding goals. Rather than rushing to deliver the largest construction project possible, a successful partnership depends on the City achieving the best results and
returns on its investments. This is why we recommend a
phased approach as a regular business practice.

Our phased project approach begins with collaborative
discussions with City administration and department
leaders to support long-term planning. With close
collaboration, we will be able to identify the City's goals and provide insight on the latest on upcoming technology solutions and funding solutions that could bring greater benefit(s) to the City.

As our references and other industry professionals will validate, Climatec is regarded as the industry benchmark for setting the highest possible standards in the energy services industry for both program design, implementation, and performance monitoring. We guarantee program performance from start to finish while adhering to an unwavering code of safety, ethics, and professional conduct.

Climatec has experience in delivering programs to meet a variety of public sector needs ranging from complex, multi-million-dollar infrastructure renewals across dozens of facilities to small-scale, single-measure programs. To reduce additional strain on City staff resources, we dedicate a single point of contact for the full duration of the turn-key project. This approach offers maximum accountability to the City and avoids unnecessary handoffs or additional City staff workload associated with typical construction projects.

CITY COUNCIL ENGAGEMENT
Climatec understands the importance of supporting City staff throughout program development and implementation. Our team will assist with staff reports, Council presentations, public information materials, and communication planning to ensure all stakeholders are consistently informed. By serving as an extension of City staff, Climatec helps streamline internal coordination while maintaining transparency and alignment with Council priorities and community expectations.

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Climatec’s streamlined project approach aligns with the City’s goals and the scope of services outlined in the RFP. In this section, we outline a step-by-step process addressing all required tasks, deliverables and expectations from the energy audit through measurement and verification.

SCOPE OF WORK

PRELIMINARY ASSESSMENT (PA)
Climatec will complete a comprehensive preliminary assessment (PA) for no cost obligation to the City. As part of the PA process, Climatec will conduct a City-wide facility assessment identifying potential infrastructure improvements. Our team prioritizes cost-saving solutions that protect Calexico’s infrastructure investments without burdening operational budgets. By leveraging external funding and delivering long-term utility savings, we help the city preserve essential services while avoiding the costly consequences of deferred maintenance, ensuring CIP dollars work as intended.

In close collaboration with staff, Climatec will develop a preliminary scope of work and engage stakeholders to assess which projects are feasible and desirable. The PA deliverables will include a scope of work matrix, sample solar layouts, a preliminary turnkey price, estimated lifecycle savings, eligible funding source options, and example cash flow scenarios. After refining the PA deliverables with the City, a study session will be scheduled to share information with the City Council.

Site Assessments

1. Convene a kickoff meeting with key City stakeholders to validate Program understanding, expectations, requirements and timelines

2. Establish weekly or bi-weekly meeting cadence between Parties for duration of Program

3. Gather and review relevant background material including utility usage and rate data, standards of operations, facility operation schedules, existing infrastructure, GIS maps, existing surveys, assessor maps, utility maps, historic plans and documents, municipal vehicle lists, as-built drawings, and other data as may be required

4. Complete a baseline analysis of City’s utility, maintenance, repair and other operating expenditures using data from utility releases, online portals and Staff

5. Evaluate Electric Vehicle (EV) charging infrastructure needs for municipal fleet and public use

6. Conduct engineering site assessments at City locations listed in Section XII to evaluate infrastructure needs in the following areas, where applicable:

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a. Water & wastewater treatment facility solutions
b. Solar, battery storage, and other renewable technologies c. Smart irrigation control systems
d. Water conservation measures
e. Heating, Ventilation & Air Conditioning (HVAC) systems f. Interior & exterior lighting and controls, street lighting g. Electronic Vehicle (EV) charging
h. Sports field lighting and other park improvements
i. Building Automation System (BAS) installation, upgrade, or expansion j. Building envelope upgrades, including roofing and windows k. Microgrid technologies
l. Other related infrastructure improvements
m. Other training, remote monitoring services, and ongoing support services that will ensure the objectives of the program are met over the term of the agreement

6. Hold post-site walk meeting(s) with Staff to summarize site assessment findings and clarify priorities

7. Create inventory spreadsheets, field notes, a picture database cataloging relevant infrastructure data such as age, size, manufacturer, model/serial numbers, condition, efficiency ratings, operating procedures and maintenance needs

8. Create a needs matrix showing City-wide infrastructure needs for efficiency, renewables, and other improvements, gain input from key Stakeholders to validate priorities and establish hierarchy of needs

9. Prepare a set of unmarked aerial maps or pictures for sites eligible to receive renewable energy measures and obtain mock-ups of desired locations from key Stakeholders

10. Obtain funding plan parameters from Finance and City leaders including desired funding options to be explored from state, federal, local, and private sector programs as well as budgeting solutions for City capital or operating funds

11. Prepare an outreach and participation plan to incorporate community feedback into the PA development and conduct outreach to the Imperial community

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IDENTIFYING INFRASTRUCTURE IMPROVEMENTS
Climatec’s comprehensive scope of services encompasses a wide range of efficiency improvements, sustainability measures, and smart building technologies including :

HVAC + BAS
+ LIGHTING

WATER SYSTEMS
& MANAGEMENT
RENEWABLES +

POWER RESILIENCY
◼ Central Plants
◼ HVAC Equipment
◼ Variable Frequency
Drives
◼ Demand Control
Ventilation
◼ Piping System Retrofits
◼ Air Handling Retrofits
◼ Variable Refrigerant Flow
HVAC Systems
◼ New BAS Installations
◼ Integrate Existing BAS
◼ Optimize/Expand BAS
◼ BAS Occupancy Control
◼ BAS Energy Dashboard
◼ Interior & Exterior LED
Lighting
◼ Smart Park & Security
LED Lighting
◼ Sports Field Lighting
◼ Day Light Harvesting
◼ Occupancy Sensors
◼ Lighting Control
◼ Street Light LED
Conversion/Controls
◼ Pumping Optimization
◼ Water Meters
◼ AMI - Advanced Metering
Infrastructure
◼ AMR – Advanced Meter
Reading
◼ SCADA Optimization
◼ Desalinization
◼ Groundwater Injection
◼ Manhole Covers
◼ Utility Billing Software
(UBS)
◼ Revenue Recovery
Analysis
◼ Smart Irrigation System &
Controls
◼ Rainwater/Stormwater
Storage & Reuse
◼ Building Water
Conservation
◼ Solar PV Structures
‒ Outdoor Learning
‒ Lunch/Dining
‒ Parking
‒ Rooftop
‒ Ground
◼ Solar Thermal
◼ Battery Storage
◼ Energy Generation
◼ Electric Vehicle (EV)
Charging Infrastructure
◼ Microgrid
◼ Backup Power
Generators
◼ Biogas Cogeneration

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Preliminary Development

1. Propose infrastructure modernizations and efficiency improvements including optimization, adjustment, retro-commissioning, retrofit, upgrade, redesign, installation, replacement and/or further evaluation for energy, gas and water infrastructure needs

2. Evaluate the City’s Capital Improvement Plan (CIP) and recommend strategies to accomplish its objectives

3. Propose solutions City-wide for EV charging infrastructure needs

4. Propose projects that minimize financial and technical risks to City

5. Develop a preliminary scope of work matrix showing proposed measures at applicable City locations, phased implementation options, and proposed layouts for renewables

6. Provide a not-to-exceed turn-key price, lifecycle savings, and funding source options based on preliminary engineering estimates; prepare sample funding scenarios as examples for use by City leadership, Finance Department and/or Municipal Advisor to select a recommended funding plan for Staff and Council consideration

7. Based upon PA findings and Staff input, prepare PA report for the Program draft concept, including: utility baseline summary, general overview of existing conditions by scope category, scope of work matrix, bulleted scope summary, aerial layouts, financial highlights, sample funding plan options, PowerPoint presentation, timeline estimates, memos and staff reports

8. Attend and present the Program PA report to applicable Stakeholder groups, Public Boards, Planning Commission, and/or City Council to gain input on preliminary Program

9. Confirm desired Program to be implemented by Climatec and set target action date for Council approval based on validated input from Staff and Council

BUILDING

ENVELOPE
OTHER

INNOVATIVE SOLUTIONS

COMMUNITY

OUTREACH
◼ Dual Pane Windows
◼ Door Systems
◼ Roofing Systems
◼ Wall Installation
◼ Weatherstripping
◼ Window Security Film
◼ Solar Control Film
◼ Smart City Technology
◼ Street Light Controls
◼ CCTV Security Systems
◼ Intrusion Security System
◼ Wildfire Detection
Technology
◼ GHG Reduction
Dashboards
◼ Public Wi-Fi
◼ Parking Systems
◼ Fire Alarm System
◼ Oil Recycling Programs
◼ Ice Production &
Management
◼ Climatec Community
Connect (C3)
◼ Community Awareness
◼ Press Releases
◼ Sustainability Websites
◼ Groundbreaking Events
◼ Construction Signage
◼ Flip-the-Switch
Ceremonies
◼ Economic Development
◼ Energy Kiosks
◼ STEM Learning
◼ Assemblies & Field Trips
◼ CTE Curriculum

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DETAILED ASSESSMENT (DA)
After review of the PA, Staff and
Council shall provide direction on
the scope of work and funding
options it desires to pursue for
implementation and set a target date
for Council action. In good faith,
Climatec will complete the DA at its
own risk, without financial obligation
of City, to finalize the Program for
anticipated implementation.

During the DA, Climatec will conduct
in-depth engineering site
assessments to finalize the desired
Program including detailed scope of
work, not-to-exceed price, and savings estimates. Climatec will prepare backup analysis, breakouts, and other data as needed for Staff to analyze the final Program details, as well as detailed financial proforma for Finance and City leadership to solidify the funding plan.

To support Staff’s final due diligence process, Climatec will provide extensive resources to ensure scope details, financial analysis, Agreement terms and timelines serve City’s best interest. DA services and deliverables shall include but may not be limited to:

1. Conduct in-depth engineering site assessments to finalize Program scope, including review of existing conditions including electrical and structural requirements, validating inventories, specifying equipment, and detailing the scope of work to be performed

2. Communicate and coordinate with various local, state, and federal permitting authorities necessary to evaluate regulatory issues and Program constraints

3. Finalize strategies and system sizing for renewable energy technologies including electric vehicle charging infrastructure, solar PV, energy storage and backup power solutions

4. Update the scope of work matrix with proposed final scope and prepare summary of modifications that occurred between PA and DA for Staff review

5. Perform detailed financial engineering to finalize Program scope and funding plan including final not to exceed turn-key price, detailed savings and other analysis as needed

6. Work with City’s Finance team to finalize and secure desired funding options

7. Prepare Program implementation plan, including specific tasks, who performs those tasks, and an estimated timeline for Program completion

8. Subject to Staff approval of the final Program, prepare Agreement amendment to include the detailed scope of work for Program implementation and work with City Attorney for final review

9. Provide final Program details by revising previously provided PA report to reflect the final DA scope of work and funding plan

10. Present DA report to appropriate stakeholder groups and Council

11. Assist Staff with preparation of agenda items and Government Code Section 4217 requirements to seek Council approval for Program implementation

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In lieu of “Scope Of Work Design and Drawings” described in section IV Scope of Services from the RFP #2025-700, Climatec provides the deliverables described in the DA section above as part of the IGA and does not provide plans, specifications and/or other design documents inherent to traditional bid-spec or design-bid-build delivery methods. As described in the next section, final design and submittal packages are provided for Staff review after Council has formally approved the Program for implementation and prior to construction mobilization.

PROGRAM IMPLEMENTATION
Climatec’s implementation scope includes all
aspects of final design, engineering, permitting,
procurement, installation, training, warranty, and
insurance related to the agreed-upon program.

Subject to Council approving program
implementation, we will coordinate a kick-off meeting
with City staff to establish a construction
management framework and mobilization plan.

We will complete all final design elements, such as
land surveys, geotechnical studies, and construction
drawings, required for submittals and permit
approvals. All engineered documents will be submitted for the City’s technical review and approval prior to construction.

A detailed implementation plan and construction schedule will be finalized in collaboration with various City departments, outlining key milestones such as design completion, subcontract issuance, site prep, and post-construction activities. To ensure transparency and accountability, Climatec will host regular progress meetings with City staff throughout the process.

Our project manager and on-site implementation team will work closely with City personnel to ensure quality execution, minimal disruption, and seamless integration with ongoing City operations. Our priority is to deliver a program that is on time, within budget, and minimally disruptive to City operations.

PERFORMANCE PHASE
When construction is complete, the scope measures will enter the performance phase.

Climatec will then work toward our next set of milestones:
◼ Final sign off & approval by commissioning agent
◼ Walk-through & punch list report with the commission agent & the city ◼ Sign off by City of the final acceptance of improvements ◼ Agreement on the frequency of measurement & verification to be performed ◼ Agreement on the savings guarantee
◼ City staff training

INITIAL & ONGOING COMMISSIONING
With technology that continuously logs and monitors system activity, Climatec can stay tapped into performance during periods of normal use, and unforeseen conditions or use

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patterns. If Climatec identifies an opportunity to further optimize performance, Climatec will consult the commissioning team and make agreed-upon modifications.

Climatec provides extensive professional training on all new systems and procedures for City staff. Then, we turn over all relevant documents, including industry standard As-Builts, revised AutoCAD site drawings, other specific drawings, materials-used inventories, manufacturer data sheets, and maintenance guidelines.

With these assets in hand, our customers are equipped to not only understand their modernizations but also maintain and expand upon them in future pursuits to further optimize operations and drive additional operating savings.

MEASUREMENT AND VERIFICATION (M&V)
After implementation, Climatec’s M&V department proactively verifies the performance of newly installed systems by monitoring real-time utility data. Climatec’s M&V department provides 24/7 monitoring for HVAC, BAS, solar operation, and utility consumption.

If savings or equipment is not performing as intended, our team will notify the city and take corrective steps proactively. By providing continuous monitoring of mechanical equipment schedules and building operation, our team of energy engineers collaborate with customers to ensure the attainment of energy savings goals. Our energy engineering team collaborates with City staff to provide regular operational updates.

TRAINING PROGRAMS AVAILABLE FOR CITY STAFF
To ensure the long-term success of infrastructure
modernizations, post-project training is essential.

Climatec provides comprehensive training for City staff, equipping them to maintain new systems and maximize
energy savings. Training is delivered through a variety of methods, including on-site sessions, webinars, and classes at Climatec University, led by factory-authorized instructors with expertise in advanced systems.

Our curriculum covers everything from basic system operations to preventive maintenance, empowering staff to manage and sustain upgraded systems with confidence and independence. In addition to hands-on training, we provide a comprehensive documentation package tailored to the City’s needs. This empowers City staff with the tools and knowledge needed to manage, maintain, and optimize their systems, laying the groundwork for continued operational improvements and future cost savings for the City of Calexico.

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MARKETING PLAN
In alignment with the City of Calexico’s Scope of
Services, Climatec recognizes that a successful
infrastructure modernization and utility savings
program extends beyond technical improvements, it
is also about engaging the community it serves. The
City’s RFP emphasizes the importance of outreach
and communication in promoting transparency,
awareness, and civic pride throughout program
development and implementation. Climatec’s
Community Outreach & Engagement Services are designed to directly support these objectives by partnering with City staff to develop and deliver meaningful public engagement strategies. Our goal is to ensure residents, businesses, and stakeholders are informed, involved, and inspired by Calexico’s leadership in sustainability and infrastructure investment.

COMMUNITY OUTREACH & ENGAGEMENT SERVICES
Climatec offers a suite of engagement initiatives to help the city tell its story and iNFORM, iNVOLVE, iNSPIRE the community. Our communication services will help you tell your story and keep your stakeholders informed about the exciting changes coming to Calexico.

Sharing these stories is the cornerstone for attracting economic development to local neighborhoods. The Climatec Community Connect (C3) team will work closely with City staff to design a customized community outreach and engagement program that aligns with the City’s strategic objectives and Council priorities. The C3 program is conceptualized during the initial assessment stage and implemented during and after construction.

Some of these offerings include, but are not limited to:
◼ Dedication & ribbon cutting events
◼ Construction signage
◼ Ground breakings
◼ Public relations efforts at each
program milestone
◼ Staff memos, reports & Council
engagement
◼ Social media engagement
◼ Quarterly newsletter updates
◼ Community workshops
◼ Bond oversight meetings
◼ Q&A forums
◼ Walking tours with local leaders & interested community members ◼ Case studies, brochures, posters & various presentation formats ◼ Applications for grants & awards from local/state/federal programs ◼ Dedicated web pages & custom content for Calexico
‘Ontario Goes Green’ Ribbon Cutting Event

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CLIMATEC COMMUNITY CONNECT (C3) IN ACTION

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TAB 3: WORK SCHEDULE
Climatec has developed a preliminary project schedule illustrating key milestones contingent upon expedient engagement and alignment among all City Stakeholders. Our team’s flexibility ensures that we can work hand in hand with the City to align with and support the preferred project schedule.

Key Program Milestones By When Responsible
Party
Collect facility square footage information Nov Climatec Provide accounts payable & general expenditure
information for utility providers Nov City Staff
Populate utility release forms & submit to utility
providers Nov Climatec
Discuss facility & parks needs on a per site basis Nov Climatec & City Staff
Develop utility baseline analysis Nov-Dec Climatec
Conduct City-wide site assessments Dec-Jan Climatec
Review site assessment findings & develop options for
a preliminary scope of work Jan Climatec
Conduct scope verification meeting & gain input from
Staff regarding scope priorization Feb Climatec & City Staff Develop preliminary scope & funding plan options Feb Climatec Council study session March Climatec
& City Staff
Finalize scope & funding plan based on Staff input Apr-May Climatec & City Staff
Due diligence & legal review May Climatec
& City Staff
Council action item to consider program
implementation May Climatec & City Staff
Meet Inflation Reduction Act requirements July Climatec Construction duration 18-24
months Climatec

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TAB 4: QUALIFICATIONS & EXPERIENCE

BACKGROUND & QUALIFICATIONS
Since our founding in 1975, Climatec has grown into one of the nation’s largest providers of energy infrastructure and building technology solutions. Our success is
reflected in a strong portfolio of repeat public-sector customers, proving that our approach goes beyond the
traditional "get in, get out" mentality. We are committed to long-term partnerships and multi-phase program
support.

Climatec’s philosophy is simple: stand behind every
promise and stay engaged to ensure lasting success.

Our reputation is built on results and supported by a
robust network of California municipal references.

With over $1.5 billion in turn-key infrastructure
modernization and utility savings programs implemented, Climatec is the market leader for public agencies seeking to revitalize infrastructure, drive climate action, and achieve sustainability goals.

The following attributes reflect Climatec’s proven ability to deliver innovative, high-impact efficiency solutions as a leading energy partner:
◼ Delivering turn-key energy management and efficiency projects for over 50 years ◼ Completing thousands of energy efficiency and sustainability for the public sector ◼ Operating 7 offices across California, including a local office in Poway ◼ Serving as the largest master systems integrator for building automation in the U.S. ◼ Employing hundreds of licensed professionals and engineers across California ◼ Navigating California’s evolving political landscape, state mandates, funding opportunities, and regulatory frameworks with deep expertise ◼ Leveraging established relationships with agencies such as IID, CEC, CPUC, CARB, DGS, DIR, ICAPCD and others to maximize the success of customer programs We continue to help our customers meet and exceed their climate goals, demonstrating that our commitment is not just performative, but proven through consistent, resultsdriven delivery.

CAPACITY OF SERVICES WITH IN-HOUSE AND/OR SUBCONTRACTORS Climatec provides turn-key design and implementation services for all core competencies required to deliver the City’s infrastructure modernization and utility savings program with the exception of installation labor for mechanical and electrical trades. Our robust inhouse engineering team allows us to handle all aspects of scope development, financial engineering, funding application support, and post-implementation reporting. When required, we supplement in-house engineering resources with specialty engineering firms for complex mechanical retrofits and for certain aspects of full DSA submissions and stamped drawings.

PROVEN TRACK
RECORD
50 Years
Energy & Industry Experience
Over $1.5B
Infrastructure Modernization
Programs Implemented
ZERO
Savings Shortfalls or Litigation
Stable Ownership
Backed by Bosch,
Privately Held

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The inclusion of any sub-contractors or sub-consultants is subject to the approval of the City – we will only work with partners you are comfortable with or have worked successfully with in the past. If the City does not have a preferred provider in any pa rticular area where a sub-contractor may be required, then Climatec will then obtain competitive proposals from a select list of trusted sub-contractors with which we have longstanding, successful partnerships. Climatec conducts a stringent vetting process to ensure subcontractors adhere to our standards for business conduct, price competitiveness, workforce training, and other requirements for the funding involved.

We believe in the power of partnerships and prefer, whenever possible, to work with local contractors with whom the customer has had a favorable experience. We work closely with our contractors to ensure that the quality standards established jointly by Climatec, and the customer are met or exceeded.

As the General Contractor, and guarantor of the long-term performance of the program, we are responsible for all work. As such, it is critical that sub-contractors and members of our team deliver all portions of the program to the City meeting the same strict standards and requirements of Climatec; these include but are not limited to: OSHA certification, proof of licenses, proof of liability insurance, proof of bonding capability and capacity, references, and any other requirements including DIR. Our ultimate list of subcontractors starts with preferred providers to the City of Calexico.

IN-HOUSE SERVICES HVAC/Control
Companies
Solar
Companies
Typical
ESCOs
Comprehensive Site
Assessments
Efficiency Design Engineering
Solar Design & Engineering
Equipment / Technology
Procurement
General Contracting Services
Savings Performance
Assurance
Program Funding
Community Engagement
In-house (Local) Subcontract Limited Resources

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PROJECT PERSONNEL
With over 400 years of combined experience, Climatec’s multidisciplinary team brings a depth of talent and technical knowledge essential for delivering successful, cost-effective infrastructure modernization and utility savings programs. Our personnel possess deep expertise in master systems integration, design-build project delivery, energy engineering, sustainable and renewable energy solutions, grant acquisition and funding strategy, and ongoing measurement and verification (M&V).

Each team member has been selected for their specific qualifications, role alignment, and ability to meet the City’s performance and accountability expectations. Our staff includes in-house professionals credentialed in the following areas:
◼ Professional Engineers (PE)
◼ LEED-Accredited Professionals (LEED AP)
◼ Certified Energy Managers (CEM)
◼ Mechanical Engineers & Engineers in Training (EITs)
◼ Certified Measurement & Verification Professionals (CMVP) ◼ Certified Project Managers
Robert Bosch founded the “Workshop for Precision Mechanics and Electrical Engineering” in 1886.

I HAVE ALWAYS ACTED ACCORDING TO THE PRINCIPLE THAT ‘I WOULD RATHER LOSE MONEY THEN TRUST.’ THE INTEGRITY OF MY PROMISES, THE BELIEF IN THE VALUE OF MY PRODUCTS AND IN MY WORD OF HONOR HAVE ALWAYS HAD A HIGHER PRIORITY TO ME THAN A TRANSITORY PROFIT.” ROBERT BOSCH | INDUSTRIALIST, ENGINEER & INVENTOR. FOUNDER OF ROBERT BOSCH GMBH

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RESUMES
TOM JACKSON | VICE PRESIDENT OF BUSINESS DEVELOPMENT
As Climatec’s Vice President of Business Development, Mr. Jackson oversees sales and operations for California's energy services business, providing strategic direction and managing key partnerships. He will serve as the executive contact for the project, ensuring best value pricing and fair agreements.

With extensive experience in domestic and international sales, marketing, and finance, Mr.

Jackson has held leadership roles at Honeywell International and Motorola Broadband. He also serves on the Industry Advisory Council for UC Davis's California Lighting Technology Center and Energy Efficiency Center.

ASHLEY LOUGH | DIRECTOR OF ENERGY SERVICES
Mrs. Lough oversees California public sector market offerings for education, local government and special districts. With 16 years of experience, Mrs. Lough offers expertise in program management, stakeholder engagement, and brand building, securing over $490 million in funding for California infrastructure revitalization.

Mrs. Lough serves as a Board of Trustees member for the California Municipal Management Foundation (CCMF) and is a recognized energy services industry expert for California public sector, K-12 advocacy, energy policy and facility funding.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Fountain Valley, Imperial, Escondido and Imperial County school districts such as Brawley Union HSD, Calexico USD, Calipatria USD, Heber ESD, and Holtville USD.

AMBER FRITSCH | REGIONAL MANAGER
Mrs. Fritsch leads the California account management team for local government, K-12, higher education, and special districts. With over 13 years of experience, Mrs. Fritsch helps public agencies engage stakeholders to define the program’s scope of work priorities, funding options, site plans, coordination with other projects, site operation requirements, master scheduling and implementation planning.

She is the chief interface for organizations that support the California public sector profession including: CalCities, CCMF, Contract Cities, CASH , CASBO, CSBA, ACSA, and other County Offices of Education.

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RYAN CROWELL | ACCOUNT EXECUTIVE (PRIMARY CONTACT)
Mr. Crowell has over 3 years of experience, Mr. Crowell facilitates grant applications and liaises between our in-house grant team and public agencies to maximize grants and ensure compliance. He also supports Mrs. Fritsch and the operations team during project development and implementation.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, and Imperial County school district such as Brawley Union HSD, and Calexico USD, to name a few.

DAWN ELISE | ACCOUNT EXECUTIVE
Ms. Elise brings over 3 years of experience with public agencies and construction, bolstering the team's efforts towards achieving complete customer satisfaction and program success. She will provide comprehensive support to the entire team during program development and implementation.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, and Imperial County school district such as Brawley Union HSD, and Calexico USD, to name a few.

SANDEEP NAYAK, PHD | DIRECTOR OF ENGINEERING
Dr. Nayak has 18 years of experience in energy engineering including comprehensive site assessments, energy engineering, and energy savings calculations for utility rebates. Along with a PhD in Mechanical Engineering, Dr. Nayak’s other accreditations include LEED AP and EIT.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Fountain Valley, and Imperial County school districts such as Brawley Union HSD, Calexico USD, Calipatria USD, Heber ESD, and Holtville USD.

MAX PARRON, PE | SENIOR PROJECT DEVELOPMENT MANAGER
Mr. Parron has over 16 years of experience in the energy auditing, commissioning, mechanical design, and construction of commercial and industrial buildings. Energy auditing experience includes on site investigations of more than two hundred buildings totaling over 10 million square feet.

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ERIK GUITERREZ | SENIOR PROJECT DEVELOPMENT ENGINEER
Mr. Gutierrez brings over 10 years of mechanical engineering and energy efficiency expertise to public sector customers.

As a Senior Project Development Engineer at Climatec, he specializes in facility auditing, energy benchmarking, and managing infrastructure modernization projects across California and developing comprehensive solutions that optimize building performance while maximizing utility incentives. Working with the project development team, he leads facility assessments, data analysis, and budget management to ensure successful implementation of energy efficiency and sustainability initiatives.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Brawley Union HSD and Calexico USD to name a few.

RICH WILLIAMS | SENIOR PROJECT DEVELOPMENT ENGINEER
With over 8 years of experience, Mr. Williams excels in developing photovoltaics (PV), battery energy storage system designs, and electrical vehicle infrastructure with a focus on electrical engineering. His attention to detail ensures successful completion of various solar projects, including shade structures, carports, rooftops, and groundmounted systems, all meeting regulatory standards. He is a leading advocate for sustainability, particularly in California's public agencies.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Jurupa Valley, Duarte, Brawley Union HSD and Calexico USD to name a few.

JIM MULLANEY | DIRECTOR OF OPERATIONS
With over 40 years of leadership experience in construction, finance and project management, Mr. Mullaney provides tremendous expertise in delivering customer tailored solutions for effective project implementation. Previous leadership roles have included Project Management Director, COO, CFO and General Manager for several major corporations, serving performance contracting, HVAC products and services, construction, and building services industries.

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LEO SALAS | OPERATIONS MANAGER
Mr. Salas brings over 24 years of experience in construction and project management, specializing in comprehensive energy efficiency projects across California. His background in HVAC, building automation, lighting, and xeriscaping providing unique insights into saving energy, conserving water, and reducing carbon footprints. His hands-on coordination and customer liaison skills, and ability to recommend specifications ensure successful outcomes and high satisfaction.

ROBERT FREIDIN | SENIOR PROJECT MANAGER
Mr. Freidin brings over 12 years of experience implementing infrastructure modernization and utility savings programs across the State of California as a Senior Project Manager. He oversees all aspects of project delivery from initial planning through final implementation. His comprehensive management approach includes coordinating with subcontractors, managing budgets, ensuring safety compliance, and maintaining rigorous quality control standards.

Mr. Freidin has established himself as a trusted leader in implementing diverse energy savings solutions, including high efficiency HVAC systems, building automation, LED lighting modernization, and renewable energy projects.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Brawley Union HSD, Calexico USD, and Lakeside Union SD to name a few.

JENNIFER MOSQUERA | ENGINEERING MANAGER
As Engineering Manager, Ms. Mosquera leads engineering efforts for Climatec’s infrastructure modernization and sustainability programs across California. She works closely with operations teams and City staff to ensure compliant, on-time, and cos -effective project delivery.

With over 11 years of experience and $600 million in energy project oversight, while bringing technical and regulatory expertise. Ms. Mosquera holds a master’s in mechanical engineering with a focus on energy and is fluent in Spanish.

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JOELLEN STINGLEY | CLIMATEC COMMUNITY CONNECT ADVOCATE
With over 19 years of experience, Mrs. Stingley brings exceptional expertise in the energy, climate, and environmental sectors. She coordinates events, manages press communications, and develops sustainability content, while also supporting website development and presentation design. Her work not only highlights organizational achievements but also fosters meaningful community engagement, effectively, connecting innovative solutions with a shared commitment to sustainability.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, and Imperial County school districts such as Calexico USD and Lakeside Union SD.

LAURA CONRAD | BUSINESS MANAGER
As Climatec’s Business Manager, Laura Conrad brings extensive legal expertise in managing complex agreements and regulatory oversight for energy efficiency and sustainability programs. She leads all aspects of contract development, negotiation, and risk management, while ensuring strict adherence to quality control and compliance standards.

Mrs. Conrad’s background includes leadership roles in private practice and corporate law, with a particular focus on business law and regulatory compliance. As an experienced corporate attorney, she offers a comprehensive understanding of contract law, bus iness regulations, and environmental legislation, contributing to successful outcomes in public sector energy modernmization programs.

Local program experience: Cities of Santa Clarita, Ontario, San Leandro, Brawley Union HSD, Calexico USD and dozens of other public agencies across California.

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TAB 5: REFERENCES
Climatec has delivered over $1.5 billion in infrastructure modernization programs for public sector agencies in education and local government. Regularly, Climatec is invited back for multiple phases with the same customer. Following a successful initial phase, many of our customers pursue a long-range, multi-phase master plan to address ongoing infrastructure needs. This approach provides continuity and ensures alignment with each City’s priorities, operations, and culture.

Climatec has successfully partnered with numerous public agencies across California to deliver similar outcomes, including:

RECENT PUBLIC AGENCY PARTNERS
City of Bellflower
City of Beverly Hills
City of Blythe
City of Clayton
City of Duarte
City of Escondido
City of Fountain Valley
City of Indio
City of Imperial
City of Jurupa Valley
City of La Mirada
City of Laguna Beach
City of Ontario
City of San Leandro
City of Santa Clarita
City of Seal Beach
City of 29 Palms
City of Weed
County of Nevada
Acalanes UHSD
Alvord USD
Anaheim City SD
Apple Valley USD
Arvin Union SD
Bellevue Union SD
Brawley Union SD
Burlingame SD
Cabrillo USD
Calexico USD
Calipatria USD
Castro Valley USD
Centralia ESD
Cloverdale USD
Coachella Valley USD
Corona-Norco USD
Covina-Valley USD
Culver City USD
Denair USD
Earlimart SD
Eastside Union SD
El Segundo USD
Enterprise ESD
Escondido UHSD
Fairfax SD
Hamilton USD
Hayward USD
Heber SD
Hesperia USD
Holtville SD
Jefferson Union HSD
Keppel Union SD
Konocti USD
Lake Tahoe USD
Lakeside Union SD
Lennox SD
Lindsay USD
Live Oak SD
Lodi USD
Lucerne Valley USD
Maple SD
McFarland USD
Meadows Union SD
Middletown USD
Mountain View SD
Needles USD
Newhall SD
Ojai USD
Orcutt SD
Orland USD
Oxnard SD
Pajaro Valley USD
Palm Springs USD
Palmdale SD
Pierce Joint USD
Pollock Pines ESD
Poway USD
Reef-Sunset USD
Richland SD
Rio Bravo-Greeley SD
Robla SD
Ramona USD
Rowland USD
Saddleback Valley USD
San Benito HSD
San Lorenzo USD
San Lorenzo Valley USD
Santa Cruz City Schools
Saugus Union SD
Scotts Valey USD
Seeley Union SD
Semitropic SD
Sonoma Valley USD
Sulphur Springs SD
Travis USD
Twin Rivers USD
Valley Center-Pauma USD
Victor Valley UHSD
Vineland SD
Yreka Union SD
Climatec is pleased to share seven project histories that showcase our design-build approach to modernizing energy and water infrastructure for California public agencies .

These examples reflect our full-scope capabilities, from energy audits to implementation and on-going measurement and verification.

CITY OF CALEXICO
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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ Solar rooftop & parking structures
▪ Smart irrigation control system
▪ High efficiency HVAC modernizations
▪ Ventilation & filtration improvements
▪ Interior & exterior LED lighting
▪ Occupancy sensors/dimming control.
▪ Sports field lighting & controls
▪ Building automation systems (BAS)
▪ Building envelope modernizations
▪ Solar thermal water heating
▪ Roof replacement & new insulation
▪ Battery energy storage system (BESS)
▪ High efficiency transformers
▪ Solar control & security window film
▪ High efficiency pool water heaters
▪ Ice rink refrigeration modernization
▪ Community outreach & engagement
program
Climatec Community Connect (C3)
Outreach
‒ Press Release: Energy Program Approval
‒ Public Outreach: Santa Clarita’s Green
Revolution
Primary Contact
Ken Striplin | (661) 255-4905
Program Value
$35.1 Million
Total Program Savings
$46.5 Million
Funding Sources
Inflation Reduction Act (IRA), Green
Energy Bonds, CIP Capital Funds, CEC
Loan Funding, EECBG Federal Grant &
SCE Utility Incentives

CITY OF SANTA CLARITA

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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ New 1.1MW solar array
▪ Battery energy storage system (BESS)
▪ High efficiency HVAC modernizations
▪ Interior & exterior LED lighting
▪ LED dimming control /occupancy sensors
▪ Citywide LED Streetlight conversion
▪ Streetlight monitoring & dimming controls
▪ Electric vehicle (EV) charging stations
▪ New building automation system (BAS)
▪ Smart City technology
▪ City employee system training
▪ Measurement & verification services
▪ Community outreach & engagement
program
Climatec Community Connect (C3)
Outreach
‒ Sustainability Website: Smart Ontario CA
‒ Press Releases: Smart Ontario News
Primary Contact
Tito Haes | (909) 395-2800
Program Value
$34 Million
Total Program Savings
$75 Million
Funding Sources
Inflation Reduction Act (IRA), Utility
Incentives, Self Generation Incentive
Program (SGIP), CEC ECAA 1% Funding
& Private Sector Funding

CITY OF ONTARIO

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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ High efficiency HVAC modernizations
▪ Additional HVAC units
▪ Redesign of HVAC & BAS
▪ Enhanced ventilation & filtration
▪ Building automation systems (BAS)
▪ Occupancy sensor integration
▪ Interior LED lighting
▪ Exterior LED lighting
▪ Sports field LED lighting
▪ LED dimming control /occupancy
sensors
▪ Building envelope modernizations
▪ Roof replacement
▪ Solar parking structures
▪ Electric vehicle (EV) charging stations
▪ Solar thermal water heating
▪ New pool pumps
Primary Contact
Mark Rounds | (562) 902-2960
Program Value
$15.8 Million
Total Program Savings
$21.2 Million
Funding Sources
Federal Stimulus (ARPA) & City Capital

CITY OF LA MIRADA

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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ Biogas to renewable natural gas (RNG)
system
▪ High strength waste (HSW) receiving
facility
▪ Digester mixing system enhancement
▪ High efficiency heat loop pump
enhancement
▪ High efficiency turbo blower system
improvements
▪ 1 MW solar array at WPCP
▪ Battery energy storage system (BESS)
▪ Smart irrigation control system
▪ High efficiency HVAC modernizations
▪ Interior/exterior LED lighting
▪ LED dimming control/occupancy sensors
▪ Citywide LED Streetlight conversion
▪ Streetlight monitoring & dimming controls.
▪ Building automation system (BAS)
▪ Microgrid system & controls
▪ Smart City technology – wireless mesh
network system
▪ Community outreach & engagement
program
Climatec Community Connect (C3)
Outreach
‒ Case Study: City Council Testimonial
Primary Contact
Janelle Cameron | (510) 577-3390
Program Value
$23.1 Million (3 phases)
Total Program Savings
$37.3 Million (3 phases)
Funding Sources
CEC Grant , Utility Incentives, City
Capital, Federal Renewable Fuel
Standard Program, Self-Generation
Incentive Program (SGIP), Low Carbon
Fuel Standard (LCFS), Private sector
funding & sale of Renewable Natural Gas
(RNG)
CITY OF SAN LEANDRO (3 PHASES)

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Program Summary
▪ HVAC system retro-commissioning
▪ High efficiency HVAC modernizations
▪ Central plant & electrical modernizations
▪ New BAS
▪ Interior & exterior LED lighting
▪ Occupancy sensors/ dimming control
▪ New sports field LED lighting
▪ Solar parking & shade structures
▪ Electric vehicle (EV) chargers
▪ Microgrid system (backup power)
▪ New high efficiency transformers
▪ Modernize roof (recoat)
▪ New high efficiency wash water recovery
pump modernizations & VFDs
▪ New high efficiency wash water pump
modernizations & VFDs
▪ Hydraulic model development & system
recommissioning
▪ New high efficiency blowers & control
▪ Aeration basin enhancement w/ electric
mixers & baffle system
▪ New RAS & WAS high efficiency pump
modernization
▪ Dissolved oxygen (DO) control study &
optimization
▪ High strength waste (HSW) receiving station
& system
▪ Bioenergy facility assessment & study
Primary Contact
Christopher McKinney | (760)839-4671
Program Value
$56 Million (2 phases)
Total Program Savings
$93 Million (2 phases)
Funding Sources
Measure I, City Contributions,
Guaranteed Savings, Private sector
funding & Inflation Reduction Act (IRA)
CITY OF ESCONDIDO (2 PHASES)
THIS IS A PRETTY SIGNIFICANT OVERHAUL OF OUR INFRASTRUCTURE.

THIS TACKLES THE STRUCTURAL DEFICIT THE CITY HAS BEEN FACING FOR SO LONG.

WE BORE A TREMENDOUS COST BY NOT DOING THIS SOONER.”
DANE WHITE, MAYOR | CITY OF ESCONDIDO

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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ Solar parking & shade or dual-purpose
structures
▪ Smart irrigation control system
▪ High efficiency HVAC modernizations
▪ Enhance ventilation & filtration
▪ Interior & exterior LED lighting
▪ Occupancy sensors & LED dimming
control
▪ Electric vehicle (EV) charging stations
▪ Electrical upgrades
▪ New building automation systems (BAS)
▪ Retro-commission existing BAS
▪ CO2 Monitoring
▪ Roof replacements
▪ High efficiency dual pane windows
▪ Plug load power management
▪ Measurement & verification services
▪ Community outreach & engagement
services
Primary Contact
Arturo Jimenez| (760) 768-3888
Program Value
$40 Million (2 phases)
Total Program Savings
$68.7 Million (2 phases)
Funding Sources
ICAPCD AB 617 EV / Solar Grant,
CalSHAPE Grant, ICAPCD AB 617
Paving Grant, State Grant Funds (Prop
39), Private Sector Funding, Utility
Incentives, IRA Solar Investment Tax
Credit (ITC), IRA Low-Income Bonus
Solar Entitlement, ZESBi & Other EV
Grants
CALEXICO UNIFIED SCHOOL DISTRICT (2 PHASES)

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NEW & RENEWED INFRASTRUCTURE
Program Summary
▪ High efficiency HVAC modernizations
▪ Complete HVAC redesign
▪ Electrical upgrades
▪ Interior & exterior LED lighting
▪ Customized LED stage lighting, sound
system & control system at auditorium
▪ New building automation systems (BAS)
Primary Contact
Simon Canalez | (760) 554-1121
Program Value
$5.5 Million
Total Program Savings
$6 Million
Funding Sources
Arts & Music Block Grant, Federal
Stimulus, & General Fund Reserves

BRAWLEY UNION HIGH SCHOOL DISTRICT

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TAB 6: LITIGATION DISCLOSURE
Climatec has never had any involvement as a party in any formal litigation, arbitration or mediation associated with savings performance on an energy savings contract or specifically related to an Investment Grade Audit (IGA) agreement. Furthermore, Climatec has maintained its original name to uphold the brand’s long-standing reputation.

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TAB 7: MEDIA ATTACHMENTS
Per the City’s requirements, we’ve included an electronic copy of this response in Adobe PDF format on a USB flash drive, within a storage pocket attached to the interior of the back cover.

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TAB 8: FUNDING SOURCES

EXPERIENCE WITH OBTAINING FUNDING
Climatec brings proven expertise in securing grants,
incentives, and other funding that enhance the financial viability of energy and infrastructure programs. As part of our turn-key approach, we collaborate closely with City staff to identify and pursue applicable State, Federal, utility, and private-sector opportunities, assisting with application preparation, compliance tracking, and
reporting.

By integrating funding strategy early in project
development, we reduce upfront costs and provide longterm relief to both the general fund and CIP allocations.

With funding deadlines on the horizon, Calexico has a unique opportunity to stretch capital dollars further, without incurring additional debt.

Climatec’s dedicated in-house funding specialists are focused exclusively on helping California public agencies secure financial resources. Our approach enables City leaders to deliver a proactive win/win for the citizens of Calexico and the environment.

As part of our process, we will present customized funding scenarios based on successful strategies used by other California cities for similar energy and infrastructure initiative s.

POTENTIAL FUNDING SOURCES
Federal Grants & Incentives Imperial County Air Pollution and Control District (ICAPCD)
Utility Incentives/Rebates Clean Water State Revolving Fund California Energy Commission (CEC) California State Treasurer’s Office Private Sector Funding Drinking Water & Wastewater Program Power Purchase Agreements (PPA) Self-Generation Incentive Program (SGIP) Inflation Reduction Act (IRA) Renewable Fuel Standard (RIN Credits) State Water Control Board Grants Low Carbon Fuel Standard Credits (LCFS) Department of Water Resources (DWR) CA Recycling & Recovery (CalRecycle) Calexico USD Clean Air Rebate

CLIMATEC HAS BEEN INSTRUMENTAL IN DEVELOPING AND FUNDING COMPREHENSIVE PROGRAMS THAT MEET OUR CITY'S NEEDS.

DEBBIE POLLART, FORMER PUBLIC WORKS DIRECTOR | CITY OF SAN LEANDRO

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FEDERAL FUNDING

INFLATION REDUCTION ACT (IRA)
The Inflation Reduction Act (IRA) offers the city a chance to pay for clean energy initiatives with 30-40% in
incentives. Passed in 2022, this legislation allocates
substantial funding to support GHG reductions and carbon neutrality, primarily through increased incentives for
renewable energy adoption. Historically, these incentives were exclusively available to private entities, however, public agencies can now access Investment Tax Credit
(ITC) through the “Direct Pay” program despite being exempt from federal tax.

Given the uncertainty of federally funded programs under the new administration, like the IRA incentives, programs need to be closely monitored by the City’s selected partner who stays informed of federal funding developments and understands the nuances of these funding sources. While key Investment Tax Credit (ITC) deadlines are approaching, the City still has an opportunity to secure available incentives before they expire. Climatec is actively monitoring these developments to ensure the city maximizes every available opportunity while mitigating potential risks.

CALIFORNIA ENERGY COMMISSION (CEC)
Climatec actively tracks and facilitates access to low-interest (1%) California Energy Commission (CEC) loans for
infrastructure modernization and utility savings programs. These funds become available on a revolving basis as previous loans are repaid, creating continuous opportunities for public agencies.

Through our direct partnership with the CEC, Climatec supports Southern California cities in securing funding for impactful infrastructure modernizations ranging from HVAC and lighting improvements to EV charging stations and battery storage. We also collaborate with the CEC on piloting new funding mechanisms and maintain strong relationships with programs such as CALeVIP, which advances EV infrastructure across the state.

As a partner to Southern California municipalities, Climatec can help your city access early, priority, and often underutilized funding opportunities, maximizing value while accelerating the City’s sustainability and resiliency goals.

I AM SO EXCITED TO ANNOUNCE THIS GRANT AWARD BECAUSE IT WILL ENABLE OUR

CITY TO MAKE SIGNIFICANT PROGRESS ON OUR CLIMATE ACTION PLAN GOALS,

IMPROVE OUR LOCAL ENVIRONMENT, AND DO SO IN A FISCALLY RESPONSIBLE WAY, MAYOR PAULINE RUSSO CUTTER | CITY OF SAN LEANDRO

CITY OF CALEXICO
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PRIVATE SECTOR FUNDING
Climatec will support the city in its effort to seek municipal lease purchase financing, if desired, by providing cash flow scenarios and other desired proformas. There is an abundance of low interest, private sector funding solutions available for Calexico’s program that can be repaid through guaranteed savings. National and community banks alike, have strong appetites to provide tax exempt municipal financing solutions for public sector energy infrastructure and clean energy programs.

Climatec is not a financial advisor and thus will support the City in providing any projectrelated information necessary to pursue its desired funding options. We do not partner with any bank or other financing provider so the City can freely explore all options or work with a preferred financial advisor, knowing Climatec is by your side.

UTILITY PROGRAMS
Utility companies offer significant incentives to support utility savings programs for public agencies. Research from the Department of Energy shows that investing in efficiency is more cost-effective for utilities than procuring additional electricity. Climatec collaborates with utilities to identify available incentives, maximizing benefits for water/wastewater, lighting, building automation, HVAC, solar, and battery storage. Our dedicated specialists handle the entire application process, from submission, inspection to final approval, ensuring a smooth process from start to finish.

DISCLAIMER: In accordance with SEC regulations, Climatec does not provide financial advice or serve as a municipal advisor. The City’s finance team and/or municipal advisor is responsible for reviewing funding options and cash flow scenarios. The City acknowledges that Climatec is not an SEC-registered municipal advisor and has no fiduciary duty to the City.

CITY OF CALEXICO
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TAB 9: SAVINGS

APPROACH TO PROJECTING & PROVING UTILITY SAVINGS
When projecting and proving energy and operational savings, Climatec follows industry standard protocols for M&V. Our standards come from the U.S. Department of Energy’s Efficiency Valuation Organization IPMVP Core Concepts, EVO 10000-1:2022, as well as California statute requirements and guidelines for Government Code 4217, and applicable utility programs.

To calculate, model and quantify savings associated with each proposed infrastructure improvement, we leverage state-of-the-art modeling tools, including eQuest Energy Simulation Models and short-term data logging, then calibrate against actual utility data.

METHODOLOGY & FORMULAS UTILIZED FOR REPORTING
As mentioned in the previous section, the IPMVP includes four Options (A, B, C & D) that are divided into two general approaches: retrofit-isolation approach and whole-building approach. Options A and B are retrofit-isolation methods, Option C is a whole-building method, and Option D can be used as either, but is typically used as a whole -building method.

It is important for the city to understand and compare each firm’s approach. Each strategy becomes the basis for the guarantee on any utility savings program’s return on investment.

Climatec believes the most accurate way of determining and presenting achieved savings is Option C, which measures utility savings by comparing actual utility bills before and after program implementation. As such, Option C is the standard IPMVP savings methodology used by Climatec. Option C is the most direct of the four methods, helping customers clearly understand how savings positively impact the general fund.

A
Retrofit Isolation with Key Parameter Approach
For projects in which the potential to perform needs to be verified, but actual performance can be stipulated based on the project’s potential to perform and engineering calculations.

B
Retrofit Isolation with All Parameter Measurement Approach For projects in which both actual performance and the potential to perform and generate savings need to be measured and verified.

C
Whole Building Approach (Climatec’s standard approach)
For projects in which both the potential to perform and the actual performance during the contract term need to be verified. Option C involves verifying the same items as Option A plus verifying actual achieved energy savings during the term of the contract. Performance verification techniques involve utility whole building meter analysis. Option C calls for a complete comparison of utility bills before and after, with procedures for verifying that:
baseline conditions have been properly defined, equipment and/or systems that were contracted have been installed, installed equipment and/or systems meet the specifications of the contract, installed equipment meets all functional tests and is operating and performing in accordance with the specifications in the contract, and actual energy savings are being achieved during the term of the contract.

D
Calibrated Simulation Approach
Uses calibrated simulations of the baseline energy use and/or calibrated simulations of the post-installation energy consumption to measure savings.

CITY OF CALEXICO
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HVAC & BUILDING AUTOMATION SYSTEMS (BAS)
Energy savings associated with HVAC and BAS are
calculated either using an eQuest energy simulation
model or a detailed, Excel-based weather bin data
analysis model. Both draw on site survey feedback.

Neither model is proprietary - all calculations can be
easily and readily repeated.

The heating/cooling load profile is determined by utility bills, building type and outdoor air temperature.

Whereas the current HVAC system’s efficiency is based
on age, condition, and the new equipment’s efficiency per manufacturer specification.

The HVAC system's current operating schedule and heating and cooling temperature setpoints are considered to determine the baseline model. Savings calculations are based on improved equipment efficiency, optimized operating schedules and tighter heating and cooling temperature setpoints. To determine how much less electrical energy is used by HVAC upgrades, the post-retrofit energy is subtracted from the pre-retrofit energy usage. ((Size of Existing HVAC Unit) x (Unit Efficiency) x (Stipulated Load Factor) - (Size of New Cooling Unit) x (Unit Efficiency) x (Stipulated Load Factor)) x (Annual Operating Hours) = kWh Savings

ENERGY COST SAVINGS
After calculating the kWh saved, the specific facility’s average cost per kilowatt hour is used to determine the energy cost savings.
(kWh saved) x (average $/kWh rate) = Total $ saved

LIGHTING
For lighting, energy savings are determined based on lighting fixture counts, the type(s) of lighting fixture(s), the kW used per fixture and the operating hours as obtained during onsite audits or provided by the city. The electrical energy reduction for lighting upgrades is determined by subtracting the post-retrofit energy from the pre-retrofit energy usage. {[(Existing watts/fixture) x (existing quantity) x (existing hours of operation)] – [(proposed watts/fixture) x (proposed quantity) x (proposed hours of operation)}] / 1000 = kWh savings

REPORTING OF SAVINGS
Frequency and method for reporting project savings is based on both funding source requirements and the City’s specifications. Climatec will help develop and send all required annual reports to prove energy savings performance on behalf of the City as well as meet any funding source reporting requirements (i.e., state grants).

CITY OF CALEXICO
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MONITORING SERVICES AFTER IMPLEMENTATION
To ensure ongoing performance and maximize utility savings, Climatec offers in-house remote monitoring for HVAC
systems, building automation systems (BAS), and utility consumption. Our team of energy engineers provides 24/7 equipment monitoring, ensuring systems operate according to design and performance specifications. We also
collaborate closely with City staff to keep them informed, engaged, and aligned with savings goals.

Unlike contractors who outsource monitoring, often adding cost and reducing efficiency, Climatec handles this function internally. This allows us to provide real-time support, assist with scheduling, troubleshoot issues, and adapt to special events without added expense.

Our proven ability to consistently meet and exceed projected savings is directly tied to this integrated approach. Climatec becomes the City’s long-term partner in delivering a
infrastructure modernization and utility savings program that continues to improve over time.

PROGRAMS IN WHICH GUARANTEED SAVINGS WERE NOT MET
In our 50-year history of delivering turn-key comprehensive infrastructure modernization and utility savings programs, Climatec’s customers have never experienced a shortfall in a savings guarantee. That said, should a savings guarantee not be met in the City’s program, Climatec would work directly with the City staff to find potential performance issues and take necessary steps for increasing utility savings and complying with the guarantee. This may include re-engineering portions of installed improvements or installing additional equipment at Climatec’s expense. In the event we are still unable to achieve the guaranteed savings, Climatec will reimburse the City of Calexico the value of savings not achieved.

CLIMATEC CAME UP WITH A CREATIVE FINANCING PLAN FOR US THAT USES FUNDS FROM THE CALIFORNIA ENERGY COMMISSION, REBATES FROM LOCAL UTILITIES, AND BELOW-MARKET PRIVATE-SECTOR FINANCING. THE WHOLE

PROJECT IS FUNDED FROM SAVINGS OUT OF CURRENT OPERATING COSTS MICHAEL JOHNSON, FORMER MUNICIPAL SERVICES DIRECTOR | CITY OF ONTARIO

CITY OF CALEXICO
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TAB 10: CONTRACTS, FORMS &

PRICING

SAMPLE CONTRACTS
A sample Energy Services Agreement (ESA) for program for development and implementation is included along with a sample M&V agreement for measuring savings and providing a performance guarantee after implementation.

Climatec does not require an Investment Grade Audit (IGA)agreement; hence a sample is not included.

PRICING & FORMS
The required Pricing Proposal is included on the following page.

The Acknowledgement Form was not included within the solicitation documents provided by the City of Calexico and does not appear available for download on the City’s website at the time of submittal. Climatec also confirms that no addenda related to this solicitation were identified or received. Should any addenda be issued following submission, Climatec will promptly review, acknowledge, and comply with all requirements.

HOURLY RATES
With Climatec’s ability to self-perform much of the work, costs associated with performance contracts are not billed separately but rather included in a total “not-toexceed” project price. As such, there will be no change orders for these efforts unless the City wishes to change the scope of the project. On our energy projects, the rates for all categories and types of services are all inclusive. While we typically do not anticipate any additional fees or hours, the rates found in the table below would be used for professional service personnel and categories of employees and are provided for informational purposes.

JOB CLASSIFICATION HOURLY RATE
Energy Engineer $129.00
Senior Project Manager $129.00
Assistant Project Manager $95.00
Controls Technician $91.00
Senior Project Developer $85.00
Project Developer $72.00
Project Administrator $63.00
Administrative Support $45.50
CAD Drafting $72 and/or subcontracted
Mechanical & Electrical Trades subcontracted at prevailing wage Other Trades subcontracted at prevailing wage

Energy Services Agreement 1 8/27/2025

CITY OF CALEXICO

INFRASTRUCTURE

MODERNIZATION & UTILITY

SAVINGS PROGRAM

AGREEMENT
This Energy Infrastructure Modernization Program Agreement (“Agreement”) is made and entered into as of the last signature date set forth below (“Effective Date”), Between: CITY OF CALEXICO
608 Heber Avenue
Calexico, CA 92231
Attn: Jesus Villegas Peimbert
(760) 768-2160
(“CITY”)
And: CLIMATEC, LLC
13715 Stowe Drive
Poway, CA 92064
Attn: Ashley Lough
(602) 400-2859
(“CLIMATEC” or "ESCO")
CITY and ESCO each may be referred to herein as a “Party” and collectively as the “Parties.” WHEREAS, CITY Council and Staff agree it is in the City’s best interest to engage an experienced and qualified energy services company for the development and implementation plan of a Citywide Infrastructure Modernization & Utility Savings Program (“Program”) consistent with the provisions of California Government Code sections 4217.10 – 4217.18 that will provide sustained cost savings and operational efficiency at project site locations.

WHEREAS, CITY advertised a formal competitive selection process through Request for Proposals (RFP) No. 2025-10 and selected CLIMATEC to conduct all phases of the Program including citywide site assessments, program development and implementation; WHEREAS, ESCO will complete a comprehensive preliminary assessment (“PA”) for energy, gas, and water infrastructure at CITY facilities identified in Attachment “A,” which is attached to this Agreement and incorporated herein by this reference, at no cost obligation to CITY in order to develop preliminary scope of work and funding plan options that meet CITY’s Program objectives; and WHEREAS, ESCO will complete a detailed assessment (“DA”) at no cost obligation to CITY in order to finalize the desired scope of work and funding plan, provided Staff and Council confirm the Energy Services Agreement 2 8/27/2025
Program to be implemented by ESCO and set a target action date for Council approval; and WHEREAS, subject to separate Council approval, Agreement will be amended for ESCO to implement the agreed upon scope of work as the design/build general contractor, and implementation may be phased according to funding availability and CITY priorities; and WHEREAS, funding plan options will be based on funding plans used by other California cities for similar projects, ESCO neither provides financial advice nor functions as a Municipal Financial Advisor, and CITY’s Finance Department, Municipal Financial Advisor and/or City leadership shall be responsible for reviewing the options to provide recommendations to Staff and Council; and WHEREAS, Parties intend to meet procurement requirements for eligible local, state and federal funding sources under the formal procurement process conducted for RFP No. 2025-10 or California Government Code sections 4217.10 – 4217.18;
WHEREAS, ESCO does not engage in or advise on public contracting on CITY’s behalf, and both RFP No. 2025-10 and this Agreement affirm CITY's intent to work with ESCO for all Program phases; ESCO will be disqualified from future bids or RFPs for projects developed under this Agreement if CITY elects not to award ESCO as the design/build general contractor for Program implementation; and
WHEREAS, ESCO is considered competent to perform the Program services for CITY; and WHEREAS, CITY and ESCO desire to enter into this Agreement for the performance of the Services described herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, and the mutual benefits derived therefrom, the Parties hereby agree as follows:

1. DESCRIPTION OF SERVICES. ESCO shall furnish all the Services described in Attachment “A” and “B” (“Services”) within the Program term.

2. TERM. The term of this Agreement shall be from the Effective Date of the Agreement through December 31, 2029. The term may be modified by mutual agreement of the Parties.

3. COMPENSATION. CITY shall pay, and ESCO shall accept in full, an amount not to exceed the sum of $0 for the scope of services outlined in Attachment A – Section C for Program development. Subject to separate Council approval, compensation will be amended to include a not-to-exceed turnkey price for ESCO to implement the agreed upon scope as design/build general contractor as outlined in Attachment B. The turnkey implementation price will include ESCO’s 5% profit fee and recouped program development costs. ESCO shall be compensated only for performance of the Services described in the Agreement. No compensation shall be provided for any other work or services without CITY’s prior written consent.

4. PERFORMANCE. ESCO shall faithfully perform the Services in a proficient manner and in accord with the terms of this Agreement. ESCO shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other information furnished by ESCO pursuant to this Agreement, except that ESCO shall not be responsible for the accuracy of information supplied by CITY.

Energy Services Agreement 3 8/27/2025

5. TERMINATION. The Parties may mutually terminate this Agreement through a writing signed by both Parties. CITY may terminate this Agreement for any reason upon providing ESCO with 10 days advance written notice. ESCO agrees to cease all work under this Agreement on or before the effective date of any notice of termination. If CITY terminates this Agreement due to no fault or failure of performance by ESCO, then ESCO shall be compensated based on the work satisfactorily performed at the time of such termination. In no event shall ESCO be entitled to receive more than the amount that would be paid to ESCO for the full performance of the Services.

6. CITY PROPERTY. All original documents, drawings, electronic media, and other materials prepared by ESCO pursuant to this Agreement immediately become the exclusive property of CITY and shall not be used by ESCO for any other purpose without CITY’s prior written consent.

7. IMPLMENTATION SCOPE OF WORK. The Scope of Work to be implemented shall be populated in Attachment B after the completion of the Detailed Assessment. Contractor shall keep the Site(s) in a reasonably clean condition. The City shall always have access to the Work. Contractor will maintain safety in the performance of the Work and shall erect and maintain, as required by conditions and progress of Work, all necessary safeguards including necessary permits, signs, barriers, lights, and security persons for protection of workers and the public and shall post danger signs warning against hazards created by the Work.

This Agreement is based upon the use of straight time labor only unless stated otherwise in this Agreement. Contractor agrees to keep the job site clean of debris arising out of its own operations.

Except as provided herein, City shall not back charge Contractor for any cost or expenses without Contractors written consent. Unless specifically noted in the scope of work or services undertaken by Contractor under this Agreement, Contractor’s obligations under this Agreement expressly exclude any work or service of any nature associated or connected with the identification, abatement, clean up, control, removal or disposal of environment hazards or dangerous substances, to include but not to be limited to asbestos, PCBs, or mold discovered in or on the premises.

However, if any hazardous materials are found, the City has the option to have a 3rd party remediate the hazardous materials or under a separate agreement the Contractor provide remediation at the job site(s). Any language or provision of the Agreement elsewhere contained which may authorize or empower the City to change, modify or alter the scope of work or services to be performed by Contractor shall not operate to compel Contractor to perform any work relating to hazards without Contractor’s express written consent

8. SOLAR INSTALLATION. The Work excludes correction of any existing or previous violations of laws, codes or utility requirements and errors and omissions of the City or other contractors not communicated to Contractor. City will provide all discretionary permits (permits requiring the discretion of the issuer) required in time to execute the Work within the agreed upon schedule.

Contractor will provide all non-discretionary, ministerial (permits not requiring thought and discretion of the issuer) permits required for the provision of the solar installation. City agrees to promptly execute and return provided Preliminary Interconnection Documentation (initial or preliminary paperwork or documentation required by the Utility for interconnection of the system to be executed by the system owner), Preliminary Rebate Documentation (documentation comprising the initial or preliminary paperwork required by the administrator of the Rebate or the Rebate to be reserved) (if applicable), and Site Owner Consent Documentation (agreement from the site owner to install system on the real property identified in the proposal) (if applicable). Attachment “B” will include commercially reasonable efforts to promptly obtain the PTO (Permission to Operate) from City’s utility. The monitoring equipment provider will provide monitoring hosting services for the first five years of operation. City warrants that they hold title to the installation site and agree to the solar installation on that site.

Terms applicable to the solar scope are as follows:

Energy Services Agreement 4 8/27/2025
a. Interconnection Agreement – means an agreement between the City and a particular utility involved for interconnection of the solar output to the electrical grid. b. Interconnection Equipment – all equipment (including wiring and conduit and metering for net metering) on the City side of the main service meter to enable proper interconnection of the solar system to the grid.

Design – Subject to Council approving Program Implementation, Contractor will complete final elements of design and engineering such as land surveys, geotechnical studies and preparation of design documents and drawings required to prepare submittal packages, obtain permits and procure equipment. Contractor shall prepare the design submittals (prepared by qualified individuals). The submittal shall be submitted to City for approval. City shall provide approvals within fifteen business days from receipt. The Contractor shall not proceed with work until approval is granted by the City.

Unforeseen Site Conditions – Within 10 business days of discovery, Contractor will notify City in writing of (a) subsurface or latent physical conditions at the site differing materially from those described in any contract or City documentation that will affect the price of delivery of the Work.

Should such conditions arise, the City will have several options to consider, including identifying an alternative location for the affected scope (e.g. moving Solar PV array) or removing the scope.

9. INVOICING & PAYMENTS. Contractor may invoice the City for any equipment and/or materials installed at a job site. City shall have no obligation to pay for equipment or supplies unless and until unconditional releases from all suppliers of the same have been provided to the City. Except for amounts in dispute, the City agrees to pay Contractor amounts invoiced upon receipt of invoice for completion of Work. Except for amounts in dispute, City shall retain 5% from all payments as retention in accordance with Public Contract Code Section 7107. Final Payment, including retention withheld, will be due in accordance with Public Contract Code 7107, or as otherwise provided by law. If Contractor’s undisputed invoice is not paid within 30 days of its receipt, it is delinquent and Contractor may add one percent (1%) per month interest onto delinquent amounts.

10. SUBCONTRACTORS. Contractor shall submit to the City in writing a list of any subcontractors engaged by the Contractor for any Work for the City’s prior written approval, not to be unreasonably withheld. Contractor agrees to bind every subcontractor by the terms of this Contract, including, without limitation, indemnification, insurance, business license and warranty requirements.

Contractor shall be fully responsible to City for the Work of its subcontractors and persons directly or indirectly employed by them. The Contract shall not create any contractual relationship between any subcontractor and City.

Contractor and all subcontractors performing the work shall not employ any person who is unfit or unskilled in assigned Work. Contractor and/or subcontractor shall dismiss any person whom City deems incompetent or unfit

11. MATERIALS. All materials shall be new, in compliance with all applicable laws and codes, and shall be covered by a manufacturer’s warranty, if appropriate. If the materials or equipment included in this Agreement become temporarily unavailable, the Contractor shall immediately notify the City in writing of the unavailability and the time for performance of the Work shall be extended to the extent thereof with the City’s written consent. In the case of permanent unavailability, Contractor shall immediately notify the City in writing of the unavailability and shall only be excused from furnishing said materials with the City’s written consent.

Energy Services Agreement 5 8/27/2025

12. COMPLETION. The Work shall be considered completed upon written approval by the City, provided that the City’s approval shall not be unreasonably withheld. The nature of the Work consists of multiple projects and/or sites, as eventually to be populated as Attachment B. Once work on a project or a site is deemed by the Contractor to be substantially complete (that is available for beneficial use by the City with the scope of work for that site or project functioning as required) and concurrence is provided by the City, except for minor items (a punch list), Contractor will provide a written Notice of Substantial Completion for that site or project to the City. Final Completion, as previously noted, will occur once the entire scope of work is complete for all sites and projects.

13. CORRECTION OF ERRORS. Contractor shall perform, at its own cost, without reimbursement from the City, any work necessary to correct errors or omissions caused by Contractor’s failure to comply with the standard of care required herein.

14. WARRANTY. Contractor warrants that the equipment and systems provided under this Agreement shall be free from defects in material and workmanship arising from normal usage for a period of one year from the date of beneficial uses. Within the warranty period, if City provides written notice to Contractor of any such defects within 30 days after the appearance or discovery of such defect, Contractor shall, at its option, repair or replace the defective equipment and return said equipment to City. These warranties do not extend to any equipment which has been repaired by others, abused, altered, or misused, or which has not been properly and reasonably maintained. All transferable manufacturer warranties associated with the equipment will be transferred to the City.

These warranties are in lieu of all other warranties, expressed or implied, including but not limited to those of merchantability and fitness for a specific purpose

15. LIABILITY. Neither party shall be liable to the other for any special, indirect, or consequential damages arising in any manner from the equipment, material, or systems furnished or the work performed pursuant to this Agreement.

16. REBATES, UTILITY INCENTIVES. Unless otherwise stated in the Agreement, or cash flow analysis, any and all rebates, incentives that are earned through the course of this project from public or private utilities, municipalities, development City’s or state funding, with the exception of lighting rebates, are 100% the property of the City or their designee. Lighting rebates are 100% the property of Contractor and are used to reduce the project cost to the City. The paperwork, inspections and verification required to collect these monies (except for lighting rebates) are the sole responsibility of the City.

17. DELAYS. Contractor shall not be liable for any delay in the performance of the Work resulting from or attributed to acts of circumstance beyond Contractor’s control, including acts of God, riots, labor disputes, conditions of the premises, or acts or omissions of the City. If City delays project for greater than 60 calendar days, Contractor can recover any cost inflation on un-billed materials that were either stored or yet to be purchased.

18. DISPUTES. The Dispute Resolution Provisions require that each Claim be in writing, served on the other party, describing specific details of the dispute relating to changes in Work or claim for additional compensation, within seven calendar days of the occurrence of the condition. This notice must be provided via certified mail. For a reasonable period commencing on the day written notice of dispute was provided, but not to exceed 30 calendar days, the parties shall in good faith attempt to resolve the dispute. If the parties are unable to resolve the Dispute during this period, the parties shall proceed as required by Public Contract Code Sections 9204 and 20104, et seq. Effective January 1, 1991, Section 20104 et seq., of the Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to require that the parties hereto shall proceed to resolve any disputes in accordance with the procedures set forth in Sections 9204 and 20104.

Energy Services Agreement 6 8/27/2025

19. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code section 900, et seq., prior to filing any lawsuit against the Purchaser

20. CHANGE ORDER (Mid-Performance Amendments). Contractor and the City recognize that:

21. City may desire a mid-job change in the specifications or scope that would add time and cost to the specified work or inconvenience Contractor.

22. Other provisions of the Agreement may be difficult to carry out because of unforeseen events, such as material shortage or labor strikes.

23. If these or other events beyond the control of the parties reasonably require adjustments to this Agreement, the parties shall make a good faith attempt to agree on all necessary particulars. Such agreements shall be put in writing, signed by the parties, and added to this Agreement. Failure to reach agreement shall be deemed a dispute to be resolved as agreed in section 20 of this Agreement.

24. PAYMENT & PERFORMANCE BONDS: Contractor shall not commence Work until it has provided to City, in the form provided by the City, a Payment (Labor and Material) Bond and a Performance Bond, each in an amount equivalent to 100% of the Contract Price issued by an admitted surety as defined in Code of Civil Procedure § 995.120.

25. OCCUPANCY: City may occupy buildings before Contract completion and occupancy shall not constitute acceptance of any Work, nor shall occupancy extend the Contract completion date.

26. INSURANCE REQUIREMENTS.
a. ESCO shall procure and maintain, at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by ESCO, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if ESCO has no owned autos, hired (Code 8) and non-owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by CITY and approved in writing by CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker’s Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
(4) Professional Liability (Errors and Omissions). Professional Liability (Errors and Omissions) appropriate to ESCO’s profession, with limits no less than $2,000,000 per occurrence or claim and $2,000,000 aggregate.

Energy Services Agreement 7 8/27/2025
b. Each insurance policy required by this Agreement must be acceptable to CITY Attorney and shall meet the following requirements:
(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII, or as approved by CITY.
(2) Additional Insured Status. Both the Commercial General Liability and the Automobile Liability policies must name CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) Primary Coverage. ESCO’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self-insurance maintained by CITY, its officials, officers, agents, employees, or volunteers shall be in excess of ESCO’s insurance and shall not contribute with it.
(4) Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to CITY.
(5) Subcontractors. If applicable, ESCO shall require and verify that all subcontractors maintain insurance meeting all the requirements stated within this Agreement, and ESCO shall ensure that CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor. (6) Waiver of Subrogation. ESCO hereby grants to CITY a waiver of any right to subrogation that any insurer of ESCO may acquire against CITY by virtue of the payment of any loss under such insurance. ESCO agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of CITY for all work performed by the ESCO, its agents, representatives, employees, and subcontractors.
(7) Self-Insurance. ESCO may, with CITY’s prior written consent, fulfill some or all of the insurance requirements contained in this Agreement under a plan of self- insurance.

ESCO shall only be permitted to utilize such self-insurance if, in the opinion of CITY, ESCO’s (i) net worth and (ii) reserves for payment of claims of liability against ESCO are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. ESCO’s utilization of self- insurance shall not in any way limit the liabilities assumed by ESCO pursuant to this Agreement.
(8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by CITY.
c. Verification of Coverage. At the time ESCO executes this Agreement, ESCO shall provide CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement.

Energy Services Agreement 8 8/27/2025
d. No Limitation of Obligations. The insurance requirements in this Agreement, including the types and limits of insurance coverage ESCO must maintain, and any approval of such insurance by CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by ESCO pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification. e. Failure to comply with any of the insurance requirements in this Agreement, including, but not limited to, a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. In the event that ESCO fails to comply with any such insurance requirements in this Agreement, in addition to any other remedies CITY may have, CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order ESCO to stop work under this Agreement and/or withhold any payment that becomes due to ESCO until ESCO demonstrates compliance with the insurance requirements in this Agreement.

27. INDEMNIFICATION, DUTY TO DEFEND, AND HOLD HARMLESS. a. Except for consequential, special, or indirect damages or claims, ESCO (including ESCO’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including reasonable attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with ESCO’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except where caused by the active negligence, sole negligence, or willful misconduct of CITY, and only to the extent such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of ESCO. Further, in no event shall the cost to defend charged to the ESCO exceed the ESCO’s proportionate percentage of fault.
b. ESCO (including ESCO’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims (except for consequential, special, or indirect damages or claims) caused by, arising under, or resulting from any violation, or claim of violation, that CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any work performed pursuant to this Agreement.
c. All terms and provisions within this Section 8 shall survive the termination of this Agreement.

28. ANTI-ASSIGNMENT CLAUSE. Because the CITY has relied on the particular skills of ESCO in entering into this Agreement, ESCO shall not assign, delegate, or otherwise transfer any duty or right under this Agreement, including as to any portion of the Services, without the CITY’s prior written consent. Any purported assignment, delegation, subcontract, or other transfer made without the CITY ’s consent shall be void and ineffective. Unless ESCO assigns this entire Agreement, including all rights and duties herein, to a third party with the CITY’s prior written consent, ESCO shall be the sole payee under this Agreement. Any and all payments made pursuant to the terms of this Agreement are otherwise not assignable.

29. ATTORNEY'S FEES AND COSTS. In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

30. INDEPENDENT CONTRACTOR. ESCO is an independent contractor, and no agency or employment relationship is created by the execution of this Agreement.

Energy Services Agreement 9 8/27/2025

31. AMENDMENT. This Agreement shall not be amended except in a writing signed by the CITY and ESCO.

32. MERGER CLAUSE. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and ESCO concerning the subject of this Agreement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

33. ANTI-WAIVER CLAUSE. None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

34. SEVERABILITY. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

35. GOVERNING LAW. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of theState of California. Venue for any action arising from thisAgreement shall be conducted only in the state or federal courts of Imperial County, California.

36. COUNTERPARTS. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

37. PROVISIONS CUMULATIVE. The foregoing provisions are cumulative to, in addition to, and not in limitation of any other rights or remedies available to the CITY.

38. NOTICE. Any statements, communications, or notices to be provided pursuant to this Agreement shall be sent to the attention of the persons indicated herein, and the CITY and ESCO shall promptly provide the other Party with notice of any changes to such contact information.

39. BUSINESS LICENSE. ESCO shall obtain a City of Calexico Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

40. COMPLIANCE WITH LAWS, PERMITS, AND LICENSES. ESCO shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements in effect during the term of this Agreement. ESCO shall obtain any and all permits, licenses, and other authorizations necessary to perform the Services. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of ESCO to comply with this section.

41. PREVAILING WAGES. If applicable, pursuant to California Labor Code section 1770 et seq., ESCO agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement. ESCO shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages. The prevailing rate and scale to be paid shall be the same as the applicable “General Prevailing Wage Determination” approved by the Department of Industrial Relations as of the Effective Date of this Agreement, which are available Energy Services Agreement 10 8/27/2025
online at http://www.dir.ca.gov/oprl/dprewagedetermination.htm and incorporated into this Agreement by this reference. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of ESCO to comply with this section.

42. DEPARTMENT OF INDUSTRIAL RELATIONS COMPLIANCE. This public project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. ESCO shall post all job site notices required by regulation. ESCO, as well as any subcontractors, shall be registered pursuant to California Labor Code section 1725.5 to be qualified to bid on, be listed in a bid proposal (subject to the requirements of Public Contract Code section 4104), or engage in the performance of any public works contract subject to the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of ESCO to comply with this section.

43. IMMIGRATION REFORM AND CONTROL ACT OF 1986. ESCO shall keep itself informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). ESCO represents and warrants that all of its employees and the employees of any subcontractor retained by ESCO who perform any of the Services under this Agreement, are and will be authorized to perform the Services in full compliance with the IRCA. ESCO affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Services. ESCO agrees to comply with the IRCA before commencing any Services, and continuously throughout the performance of the Services and the term of this Agreement.

40. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below.

IN WITNESS WHEREOF, this Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF CALEXICO
Date:

NAME, TITLE

CLIMATEC, LLC
Date:

Signature
Name & Title (please print)
APPROVED AS TO FORM:

BY:

THE CITY OF CALEXICO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

Energy Services Agreement 11
ATTACHMENT “A”

PROGRAM OVERVIEW &

SCOPE OF WORK FOR PROGRAM DEVELOPMENT
A. General Program Overview & Approach
CITY of Calexico (“CITY”) conducted a formal competitive selection process through RFP No. 2025-10 and selected CLIMATEC to perform all phases of a Citywide Infrastructure Modernization & Utility Savings Program (“Program”) including site assessment, program development, and implementation.

ESCO will provide preliminary assessment (PA) services listed in Section C to conduct engineering site assessments, develop preliminary scope of work and funding plan options, and engage CITY stakeholders to assess which projects are feasible and desirable. The CITY’s Finance Department or Municipal Financial Advisor will review the potential funding sources and financial analysis to make recommendations to Staff and Council.

After Staff and Council confirm the desired Program to be implemented by ESCO, and set a target action date for Council approval, ESCO will complete detailed assessment (DA) listed in Section C. The purpose of the DA is to finalize Program pricing, savings, detailed scope of work, all in close collaboration with Staff. At this stage, ESCO will provide backup analysis, breakouts, and other data required for Staff’s due diligence.

Detailed financial analysis will also be provided for CITY’s Finance and leadership team to solidify the funding plan.

Provided the final DA deliverables meet CITY needs and expectations, Council shall consider approval of an Agreement amendment for ESCO to implement the agreed upon scope as the design/build general contractor. Detailed scope of work descriptions, inventories, specifications, cut sheets, and technical data will be included in Agreement attachments.

Upon approval of Program implementation, Parties will hold a kick-off meeting with applicable departments to coordinate mobilization efforts and establish an effective construction management framework. ESCO will complete final elements of design and engineering such as land surveys, geotechnical studies, and preparation of design documents and drawings required to prepare submittal packages, obtain permits and procure equipment.

Following Program implementation, ESCO will provide a comprehensive set of system data sheets, as-built plans, and closeout manuals, in addition to staff training.

Measurement & Verification (M&V) services to monitor utility savings and performance of installed renewable energy systems may be pursued under a separate service agreement, if desired by CITY.

Energy Services Agreement 12
B. Locations
ESCO will provide services at the following CITY locations:

City to provide list of facilities to be included in the assessments C. Services
This section outlines ESCO’s sequential scope of services and deliverables for the Program development, including Preliminary Assessment (PA) and Detailed Assessment (DA)
Upon successful completion of the PA and DA, and subject to separate approval by Council, a detailed scope of work will be added to the Attachment “B”: Implementation section for ESCO to implement the Program as the design/build general contractor Preliminary Assessment (PA)
ESCO will complete the PA in two stages: 1) Site Assessment includes Citywide engineering site assessments to evaluate energy, gas, and water infrastructure needs, identifying potential efficiency and renewable measures, and establishing CITY priorities; and 2) Preliminary Development includes development of preliminary scope of work and funding plan options in accordance with the CITY’s infrastructure and budgetary needs. ESCO will engage CITY stakeholders to prioritize which projects are most feasible and desirable. PA services and deliverables shall include (in sequence) but may not be limited to:

Site Assessments

1. Convene a kickoff meeting with key CITY stakeholders to validate Program understanding, expectations, requirements and timelines

2. Establish weekly or bi-weekly meeting cadence between Parties for duration of Program

4. Complete a baseline analysis of CITY’s utility, maintenance, repair and other operating expenditures using data from utility releases, online portals and Staff

5. Evaluate electric vehicle (EV) charging infrastructure needs for municipal fleet and public use

6. Conduct engineering site assessments at CITY locations listed in Section B to evaluate infrastructure needs in the following areas, where applicable:
a. Water & wastewater treatment facility solutions
b. Solar, battery storage, and other renewable technologies c. Smart irrigation control systems
d. Water conservation measures
e. Heating, Ventilation & Air Conditioning (HVAC) systems f. Interior & exterior lighting and controls, street lighting g. Electronic Vehicle (EV) charging
h. Sports field lighting and other park improvements
i. Building Automation System (BAS) installation, upgrade, or expansion
Energy Services Agreement 13
j. Building envelope upgrades, including roofing and windows k. Microgrid technologies
l. Other related infrastructure improvements
m. Other training, remote monitoring services, and ongoing support services that will ensure the objectives of the program are met over the term of the agreement

7. Hold post-site walk meeting(s) with Staff to summarize site assessment findings and clarify priorities

8. Create inventory spreadsheets, field notes, a picture database cataloging relevant infrastructure data such as age, size, manufacturer, model/serial numbers, condition, efficiency ratings, operating procedures and maintenance needs

9. Create a needs matrix showing Citywide infrastructure needs for efficiency, renewables, and other improvements, gain input from key stakeholders to validate priorities and establish hierarchy of needs

10. Prepare a set of unmarked aerial maps or pictures for sites eligible to receive renewable energy measures and obtain mock-ups of desired locations from key stakeholders

11. Obtain funding plan parameters from Finance and CITY leaders including desired funding options to be explored from state, federal, local, and private sector programs as well as budgeting solutions for City capital or operating funds

12. Prepare an outreach and participation plan to incorporate community feedback into the PA development and conduct outreach to the Calexico community
Preliminary Development

2. Evaluate the City’s Climate Action Plan (CAP) and recommend strategies to accomplish its objectives

3. Propose solutions citywide for EV charging infrastructure needs

4. Propose projects that minimize financial and technical risks to CITY

5. Develop a preliminary scope of work matrix showing proposed measures at applicable CITY locations, phased implementation options, and proposed layouts for renewables

6. Provide a not-to-exceed turnkey price, lifecycle savings, and funding source options based on preliminary engineering estimates; prepare sample funding scenarios as examples for use by CITY leadership, Finance Department and/or Municipal Advisor to select a recommended funding plan for Staff and Council consideration

8. Attend and present the Program PA report to applicable stakeholder groups, Public Boards, Planning Commission, and/or CITY Council to gain input on preliminary Program

9. Confirm desired Program to be implemented by ESCO and set target action date for Council approval based on validated input from Staff and Council Detailed Assessment (DA)
After review of the PA, Staff and Council shall provide direction on the scope of work and funding options it desires to pursue for implementation and set a target date for Council action. In good faith, ESCO will complete the DA at its own risk, without financial obligation of CITY, to finalize the Program for anticipated implementation.

During the DA, ESCO will conduct in-depth engineering site assessments to finalize the desired Program including detailed scope of work, not-to-exceed price, and savings estimates. ESCO will prepare backup analysis, breakouts, and other data as needed for Staff to analyze the final Program details, as well as detailed financial proforma for Finance and City leadership to solidify the funding plan. To support Staff’s final due diligence process, ESCO will provide extensive resources to ensure scope details, financial analysis, Agreement terms and timelines serve CITY’s best interest. DA services and deliverables shall include (in sequence) but may not be limited to:

2. Communicate and coordinate with various local, state, and federal permitting authorities necessary to evaluate regulatory issues and Program constraints

3. Finalize strategies and system sizing for renewable energy technologies including electric vehicle charging infrastructure, solar PV, energy storage and backup power solutions

4. Update the scope of work matrix with proposed final scope and prepare summary of modifications that occurred between PA and DA for Staff review

5. Perform detailed financial engineering to finalize Program scope and funding plan including final not to exceed turnkey price, detailed savings and other analysis as needed

6. Work with CITY’s Finance team to finalize and secure desired funding options

7. Prepare Program implementation plan, including specific tasks, who performs those tasks, and an estimated timeline for Program completion

8. Subject to Staff approval of the final Program, prepare Agreement amendment to include the detailed scope of work for Program implementation and work with City Attorney for final review

9. Provide final Program by revising previously provided PA report to reflect the final DA scope of work and funding plan

10. Present DA report to appropriate stakeholder groups and Council

11. Assist Staff with preparation of agenda items and Government Code Section 4217 requirements to seek Council approval for Program implementation Energy Services Agreement 15
ATTACHMENT “B”

SCOPE OF WORK FOR IMPLEMENTATION
Implementation
Implementation as the design/build general contractor.

After CITY approves the DA deliverables, it is the intent of the CITY to work with CLIMATEC as the design/build general contractor for Program implementation. Subject to Council’s separate approval, this section shall be amended to include the detailed scope of work including a description of measures to be installed at each location and technical appendices.

ESCO’s implementation scope will include final design, engineering, permits, fees, approvals, project management, installation, startup, training, checkout, warranty, and insurance for the agreed upon scope of work. Upon authorization for Program implementation, Parties will hold a kick-off meeting with applicable departments to coordinate mobilization efforts and establish an effective construction management framework.

Assuming the Agreement amendment is executed, and funding is secured, ESCO will complete final elements of design and engineering such as land surveys, geotechnical studies, and preparation of design documents and drawings required to prepare submittal packages, obtain permits and procure equipment. Prior to initiating construction, ESCO will provide submittals and engineered drawings (where required) for CITY’s technical review and written approval. All construction and associated cleanup will be performed and scheduled to minimize disruptions for CITY operations.

A detailed project implementation plan and comprehensive construction schedule will be provided after completing submittal review and equipment procurement.

PHONE (512) 358-0703
___________________
M&V Agreement

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CLIMATEC MEASUREMENT AND

VERIFICATION AGREEMENT
FOR
_______________________

SCOPE OF SERVICES

TERMS AND CONDITIONS

ATTACHMENTS
Attachment “A” – Guaranteed Savings Measurement & Verification I. Savings Guarantee
II. Measurement & Verification Methods
III. Selected Measurement & Verification Options
IV. Specific Measurement & Verification Plan for Each ECM:

1. Lighting System Upgrades

2. HVAC System Installation

3. HVAC Controls Upgrades

4. Solar PV Installation
Attachment “B” – Utility Baseline Summary
Attachment “C” – Standards of Operation (HVAC & Lighting) I. Standards of Operation for HVAC
II. Standards of Operation for Lighting
___________________
M&V Agreement

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CLIMATEC M&V AGREEMENT
This Measurement and Verification (“M&V”) Agreement (“Agreement”) entered into as of ______________ is made by and between:
_________________ (“Purchaser”)
with its principal place of business at
___________________________
_______________________
and
Climatec LLC
with its principal place of business at
2150 Towne Centre Place, Suite 200
Anaheim, CA 92805
This Agreement shall include the Attachment(s) listed below:

Attachment “A” – Guaranteed Savings Measurement & Verification Attachment “B” – Utility Baseline Summary
Attachment “C” – Standards of Operation (HVAC & Lighting)

SCOPE OF SERVICES
Energy Savings Measurement & Verification Service:

Climatec LLC will provide M&V services of the energy savings associated with Purchaser’s energy retrofit installation, as described in Attachment A – Scope of Work, located in the associated Installation Agreement. Energy savings M&V reports (“M&V Reports”) will be provided to the Purchaser on an annual basis.

Term:

This Agreement shall commence upon the completion and acceptance of the Purchaser’s energy retrofit installation project and receipt of final payment for the associated Installation Agreement (“Effective Date”) and shall continue for a term of _____ years. The Purchaser may terminate this Agreement at any time with a sixty (60) day written notice. However, termination of this Agreement will void any savings guarantee under this Agreement and the Installation Agreement on or after the termination date.

Charges:

This Agreement shall be billed once per year due and payable within forty-five (45) days of the Purchaser’s receipt of invoice, which shall be sent thirty (30) days following the Effective Date, and the anniversary of the Effective Date in the following years. The annual Agreement charge is $_______ for the first ___ years and escalated at ____% annually for every subsequent year thereafter. This rate does not include taxes.

TERMS AND CONDITIONS

1. General Provisions:

1.1 Unless stated otherwise, the services provided under this Agreement shall be provided during Climatec LLC’s normal business hours. Normal business hours are Monday through Friday, 8:00 A.M. to 5:00 P.M. inclusive, excluding holidays.

1.2 The Purchaser shall provide reasonable means of access to the equipment being measured or verified. Climatec LLC shall not be responsible for any removal, replacement, or refinishing of the building structure, if required to gain access to the equipment. Climatec LLC shall be permitted to start and stop all equipment necessary to perform the services herein described as arranged with the Purchaser’s representative. ___________________
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2. Charges:

2.1 For services not covered by this Agreement, but performed by Climatec LLC upon the Purchaser’s authorization, the Purchaser agrees to pay Climatec LLC within forty-five (45) days of presentation of properly itemized invoice(s) at Climatec LLC’s current rates.

2.2 If emergency service is requested by the Purchaser and inspection does not reveal any defect for which Climatec LLC is liable under this Agreement, the Purchaser will be charged at Climatec LLC’s current emergency charge rates.

3. Limitations of Liability:

3.1 Climatec LLC shall not be liable for any loss, delay, injury, or damage that may be caused by circumstances beyond its control including, but not restricted to; acts of God, war, civil commotion, acts of government, fire, theft, corrosion, floods, lightning strikes, freezes, strikes, lockouts, differences with workmen, riots, explosions, quarantine restrictions, delays in transportation, shortage of vehicles, fuel, labor or materials, or malicious mischief. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR BUSINESS INTERRUPTION,

LOSSES, OR CONSEQUENTIAL, INDIRECT, SPECIAL OR SPECULATIVE DAMAGES

3.2 Climatec LLC shall not be required to make safety tests, install new devices, or make modifications to any equipment to comply with recommendations or directives of insurance companies, governmental bodies, or for other reasons.

3.3 Climatec LLC shall not be required to make replacements or repairs necessitated by reason of negligence, abuse, misuse, or by reason of any other cause, unless such repairs are necessitated due to the actions or inaction of Climatec LLC, or its employees, representatives, agents, consultants, or subcontractors.

3.4 This Agreement pre-supposes that all equipment is in satisfactory working order. Climatec LLC will inspect the equipment within sixty (60) days after the Effective Date and will advise the Purchaser of any equipment found to be in need of repair. If the Purchaser does not authorize Climatec LLC to make the repairs or if the Purchaser does not have the work performed, the equipment will be eliminated from coverage and the Agreement savings will be adjusted. Maintenance of existing equipment and systems is the responsibility of the Purchaser. Failure to properly maintain equipment and systems can result in reduced energy efficiency and may necessitate a baseline energy adjustment and annual Agreement charge will be proportionately reduced. There may be some equipment which, for reasons beyond Climatec LLC’s control, cannot be inspected before this Agreement takes effect.

Climatec LLC will inspect such equipment on the first visit where the equipment is available.

3.5 The amount of any present or future sales, use, occupancy excise, or other tax (federal, state, or local) which Climatec LLC hereafter shall be obligated to pay, either on its own behalf or on the behalf of the Purchaser or otherwise, with respect to the services covered by this Agreement, shall be paid by the Purchaser.

3.6 If the equipment or software included under this Agreement is altered, modified, or changed by a party other than Climatec LLC, this Agreement shall be modified to incorporate such changes and the Agreement annual charge and/or savings shall be adjusted accordingly.

3.7 Following twelve (12) months of service or any time thereafter, if individual item(s) cannot, in Climatec LLC’s opinion, be properly repaired on-site because of excessive wear or deterioration, Climatec LLC may withdraw the item(s) from coverage upon ninety (90) days prior written notice. Energy savings may be adjusted accordingly.

3.8 This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California.

4. Miscellaneous Provisions:

4.1 Safety and Security:

The services provided hereunder may occur on active Purchaser sites. As such, Climatec LLC shall ensure that its services on and around the Purchaser site comply with all applicable laws, regulations and standards including but not limited to, the fingerprinting requirements of the Education Code and any other legal requirements which may be applicable to Climatec LLC’s activities on or about the Purchaser sites. While the Purchaser shall reasonably assist Climatec LLC in determining the applicable requirements, it shall be Climatec LLC’s sole responsibility for determining and complying with all applicable laws, regulations, and standards. ___________________
M&V Agreement

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4.2 Dispute Resolution:
a. In the event of any dispute whatsoever between the parties, parties shall exhaust every reasonable effort to settle or dispose of the same, including a discussion of the matter between senior executives of each party.
b. Claims between Purchaser and Climatec LLC shall first be resolved using the procedures set forth at California Public Contract Code section 9204. “Claims” are defined, pursuant to California Public Contract Code section 9204, as a separate demand by Climatec LLC for one of the following: a time extension for relief from penalties for delay; payment of money or damages arising from work done; or payment of an amount disputed by Purchaser.
c. Upon receiving a Claim sent by registered or certified mail, Purchaser must review and provide a written response within forty-five (45) days that identifies the disputed and undisputed portions of the claim. The fortyfive (45) day period to respond may be extended by mutual agreement between the parties. The Claim is deemed rejected in its entirety if Purchaser does not issue a response. Any payment due on an undisputed portion of the Claim must be processed within sixty (60) days after Purchaser’s response. If a claimant disputes Purchaser’s response or lack thereof, the claimant may demand to meet and confer for settlement of the issues in dispute.

Any portion of a Claim that remains in dispute after a meet and confer conference will be subject to nonbinding mediation process, as described in California Public Contract Code section 9204. Undisputed and unpaid Claims accrue interest at seven percent (7%) per annum. A subcontractor or lower tier subcontractor may make a Claim to the Purchaser through Climatec LLC, as specified in California Public Contract Code section 9204. However, the procedures in this section shall not supersede the requirements of the Agreement with respect to Climatec LLC’s notification to Purchaser of such Claim or extend the time for the giving of such notice as provided in the Agreement.
d. Any controversy or Claim arising out of or relative to the Agreement, or the breach thereof, not adjusted or disposed of by mutual agreement between the parties as described above, shall be first settled by mediation and then (in the absence of settlement after mediation), by arbitration under the American Arbitration Association Construction Arbitration Rules then in effect, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof, and arbitration decision shall be final and binding on the parties and on all parties subject to the following. Said arbitration proceedings shall be filed in the regional office of the American Arbitration Association nearest to Purchaser. All arbitrators shall be bound by the terms of the Agreement. The expenses of any arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the cost of its own experts, evidence, and counsel. e. Pending a final resolution of a dispute, the parties shall each proceed diligently and faithfully with performance of their respective obligations under this Agreement.

4.3 Indemnification:

To the extent it may lawfully do so, the parties hereby indemnify, defend (with counsel of its choosing), and holds harmless the other party and its affiliates, directors, representatives, agents, officers, employees and volunteers from and against any and all liability or claim of liability, loss or expense, including defense costs and legal fees and claims for damages of whatsoever character, nature and kind, whether directly or indirectly arising from any third party actions from injury to or death of persons, and damage to or loss of property to the extent caused by or arising out of or connected with an act or omission of the indemnifying party, or an agent, invitee, guest, employee, or anyone in, on or about the Purchaser sites, including, but not limited to, liability, expense, and claims for: bodily injury, death, personal injury, or property damage caused by negligence, creation or maintenance of a dangerous condition of property, breach of express or implied warranty of product, defectiveness of product, or intentional infliction of harm, including any workers' compensation suits, liability, or expense, arising from or connected with services performed by, or on behalf of the, indemnifying party, by any person pursuant to this Agreement; nonpayment for labor, materials, appliances, teams, or power, performed on, or furnished or contributed to the Purchaser sites. Notwithstanding the above, neither party shall be required to defend, indemnify and hold harmless the other for its own negligent acts and omissions or willful misconduct.

It is the intent of the parties that where negligence is determined to have been joint or contributory, principles of comparative negligence will be followed, and each party shall bear the proportionate cost of any loss damage, expense or liability attributable to that party’s negligence. ___________________
M&V Agreement

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5. Occupational Safety and Health: The parties hereto agree to notify each other immediately upon becoming aware of any alleged violation of, the Occupational Safety and Health Act (OSHA) relating in any way to the project or project site.

6. Entire Agreement: This Agreement, upon acceptance, shall constitute the entire agreement between the parties and supersedes any prior representations or understandings.

7. Changes: No change or modification of any of the terms and conditions stated herein shall be binding upon either party unless accepted by both parties in writing.

8. Severability: If one or more of the provisions of this Agreement are held to be unenforceable under laws, such provision(s) shall be excluded from these terms and conditions and the remaining terms and conditions shall be interpreted as if such provision were so excluded and shall be enforced in accordance to their terms and conditions.

9. Counterparts: This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A signature on a copy of this Agreement received by either party by facsimile or portable document format (PDF) is binding upon the other party as an original.

The parties shall treat a photocopy of such facsimile as a duplicate original.

10. Assignment: Climatec LLC retains the right to assign its rights and obligations of this Agreement only with advance written consent of Purchaser.

11. Acknowledgment: Both Climatec LLC and the Purchaser acknowledge having read this Agreement, and all Attachments hereto, and have executed this Agreement on the date written above.

12. Approval: Each party represents that the person that has executed this Agreement on its’ behalf is authorized to do so.
_______________________________ Climatec LLC
Signature Signature
Print Name Print Name
Title Title
Date Date
______________________
M&V Agreement – Att A

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Attachment “A”
Guaranteed Savings Measurement & Verification
______________________
M&V Agreement – Att A

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Guaranteed Savings Measurement & Verification
This document contains the energy savings measurement and verification plan (“M&V Plan”) for the energy conservation measures (“ECMs”) contained in the Installation Agreement. The following table summarizes the ECMs proposed.

TABLE 1.0

INSERT TABLE HERE
A specific M&V Plan is submitted for each energy conservation measure (“ECM”) to provide a comprehensive overall plan for Purchaser. Each measure’s M&V Plan provides:
➢ A description of how the savings shall be verified for each ECM. ➢ Selection of specific protocol for verification of savings of each ECM. ➢ Requirements for measurement or other means to establish the ECM savings.

Climatec LLC is responsible for the pre-retrofit measurement, energy savings calculations, equipment installation, and required post-retrofit verification as outlined herein. Purchaser agrees to operate and maintain all equipment installed.

Proper operation and maintenance of equipment and systems is critical to long-term achievement of energy savings.

SAVINGS GUARANTEE
Climatec LLC warrants that Purchaser shall realize total energy savings, total operational savings and utility rebates ("Guaranteed Project Savings") in excess of the total project cost, during the course of the useful life of the equipment (estimated to be ______ years). The “Guarantee Period” begins on the Effective Date and continues for a term not to exceed ___ years. Climatec LLC agrees to complete the M&V Report on an annual basis and deliver to the Purchaser within sixty (60) days of the anniversary date of the Effective Date and annually thereafter. Project savings that are verified during the course of construction will be applied to the first year guaranteed project savings.

Savings Summary Table

INSERT SAVINGS SUMMARY TABLE
If the annual M&V Report demonstrates that the project will achieve one hundred percent (100%) or more of the project savings needed for the year, then Climatec LLC shall have satisfied its energy performance guarantee obligation and the Purchaser shall accept the annual M&V Report.

In the event that an annual M&V Report savings value (including any excess, unapplied savings from previous years) does not meet the Guaranteed Project Savings required to date in accordance with the M&V Plan, then Climatec LLC shall repair, replace, or substitute the ECM that is not performing at the required level, as identified in the M&V Report, and at Climatec LLC’s expense. Following corrective action, Climatec LLC shall re-perform the relevant M&V work for the affected ECM(s) and amend or supplement the M&V Report. If the sum of the ECMs indicates that the Guaranteed Project Savings are met or exceeded, then no further remedy shall be required.

If, after the opportunity to make corrections, the M&V Report, as amended, indicates that verified savings are less than the Guaranteed Project Savings required at that point of the guarantee, then Climatec LLC shall pay the Purchaser the shortfall amount. However, under no circumstances will the amount(s) paid for the total of the energy savings shortfalls exceed the Installation Agreement’s contract amount.

The Purchaser agrees that project savings, which exceed the guaranteed amount required in any one (1) year, may be applied to future year’s savings to offset an energy savings shortfall. The savings guarantee will remain in effect for the term of this Agreement.

The Utility Baseline Summary, as shown in Attachment B, may be modified over the course of the Guarantee Period to adjust for changes in utility rates, number of days in utility billing cycle, square footage, energy using equipment, building occupancy and weather. This Guaranteed Project Savings is subject to the Purchaser’s adherence to the Standards of Operation for Lighting and HVAC systems, as documented in Attachment C of this Agreement. ______________________
M&V Agreement – Att A

Page 3 of 12 ends

MEASUREMENT AND VERIFICATION METHODS
M&V of energy savings is a methodology based on standard industry protocol intended to provide reasonable assurance that energy savings calculated are realized over the term of the Agreement.

The development of the M&V Plan is based on the IPMVP-2022 (International Performance Measurement and Verification Protocol) and the application of sound engineering and business guidelines to the overall need for verification of energy savings for each ECM. This plan contains methodology that shall cost effectively provide assurance of equipment savings through short term or spot measurements, engineering calculations and/or direct utility billing comparisons. The necessary components to a well-established M&V Plan are:
➢ Specific identification of each ECM and proposed M & V reporting requirements for overall savings. ➢ Participation of all parties and any necessary coordination with independent review.

Methods of M&V vary in accordance with the type of project, level of assurance of savings, cost, and availability of data, financing constraints, and energy costs. The methods selected must be cost effective given the financial savings to the Purchaser. The methods used for the ECMs detailed herein were selected to minimize M&V cost while still providing a reasonable assurance of the savings calculations.

The IPMVP-2022 guideline provides the following options related to methodology for M&V:

Option A – Partially Measured Retrofit Isolation. Option A uses a combination of stipulated and/or measured factors to calculate baseline usage and savings associated with the ECM. Spot or short-term measurement would be used for the measured values. Stipulated values are supported by Purchaser input, historical data, or manufacturer data. ➢ Baseline and savings calculations are provided through engineering calculations, component or system models.
➢ Depending on number of points measured, Option A provides the least cost alternative to M&V.

Option B – Retrofit Isolation. Option B provides for measurement to provide data for assessing values or variables. Spot or short-term measurement, taken at the component and/or system level are taken when variations in factors can be accounted for or eliminated. Continuous measurement at the component and/or system level can also be used to account for the variations in factors over time.
➢ Baseline and savings calculations are provided through engineering calculations, component or system models. Cost is variable depending on the points measured, and the term of the measurement process used. Option B provides a better scenario for ECMs where a small number of factors can be accurately measured with a measurement plan.

Option C – Whole Building. Option C involves the use of utility meters or whole building sub-metering to assess the energy performance of the entire building. After an ECM is implemented the billing data is assessed in accordance with an approved plan to determine actual ECM savings.
➢ Baseline is established through utility data and engineering/regression analysis. ➢ Engineering calculations or modeling initially provides estimated ECM savings. ➢ Actual ECM savings are based on the utility or metered data. Savings must be adjusted for changes in building operation and variables assumed in the engineering calculations or modeling (such as weather, occupancy, etc.).
➢ Cost of this approach is variable based on the availability of utility data, sub-metered data, and overall savings guarantee. If the metered data is used for a savings guarantee, all variables related to building performance must be measured and adjusted, usually on an annual basis. Option C usually requires a substantial amount of time and effort to establish the baseline, provide adjustments and track the savings.

Option D – Calibrated computer simulation. Option D uses computer-modeling techniques to provide an engineering model of component and/or system performance. The inputs to the computer simulation may be made by engineering estimates, short or long term measurements, and utility or other metered data. Once the model is properly calibrated it is used for the establishment of the baseline and savings by changing appropriate inputs. ______________________
M&V Agreement – Att A

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➢ Baseline is established through a calibration process for the computer modeling. Appropriate measurements and inputs are reflected against regression analysis for the metered data. ➢ Once the model is calibrated and the baseline established inputs are varied for the proposed ECM to establish savings.
➢ Actual ECM savings are stipulated based on the computer model. There may be follow up calibration of the model with the ECM in place to affirm the overall building simulation model. ➢ Cost of this method varies based on the complexity and accuracy of model desired, availability of data and overall measurement required.
______________________
M&V Agreement – Att A

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SELECTED MEASUREMENT AND VERIFICATION OPTIONS
For the ECM’s covered under this M&V Plan, the Table of Selected M&V Options (Table 1.1) summarizes the proposed IPMVP Options selected:

TABLE 1.1

INSERT TABLE HERE
S* - Stipulated
The particular option selected for each ECM was based on a number of related issues including: ECM cost, ECM savings, cost of M&V and the ability to accurately determine whole building operations. _______ savings values are stipulated and agreed to by the Purchaser and are met upon the completed installation of these retrofit projects.

The baseline and the post-installation energy use depend on various system and external factors, such as energy demand, operating hours, weather conditions, motor loading, energy rates, and occupancy. Development of the baseline, post ECM consumption, cost avoidances and simple payback for each ECM covered by this M&V Plan includes:
➢ Stipulated Values – These values are important in the overall calculations for energy consumption, financial calculations, and operating conditions. Climatec LLC and Purchaser have agreed to these values for purposes of establishing savings.
➢ Developed/Measured Values – These are the values determined by spot or short-term measurement. Values are determined based on a sound engineering approach to variable determination. Both values used for baseline consumption and values to be measured/determined as parts of the post ECM implementation are detailed. ➢ Assumptions – Some values that are assumed in order to calculate energy use are necessary in certain circumstances.
➢ Calculations – The necessary calculations for baseline energy and demand usage, the calculation of the energy and demand components with implementation of the ECM, the calculation of costs, and annual savings are the primary tool for assessing the estimated and actual savings of any ECM. ➢ Instrumentation – The type and specifications, if applicable, for any instrumentation used for developed/measured values is provided to ensure appropriate meters and measurement equipment is used for specified applications.
➢ Pre-Retrofit Measurements – Each ECM may have a section detailing the measurements required prior to the retrofit. These measurements are used to establish the baseline or adjustments required to establish an accurate baseline.
➢ Post-Retrofit Measurements – Each ECM may have a section that details the measurements required if any after the retrofit is completed. This section is utilized to detail the type of measurements required for verification of the energy savings calculations.
➢ Adjustments – Each ECM may have a section for adjustments. This section includes possible adjustments to the actual Energy Audit Report and energy information, appropriate adjustments to the M&V Plan, and adjustments to any savings guarantee. This section is utilized to anticipate changes necessary due to field conditions and provide an appropriate response in the verification of actual energy and cost avoidances. ➢ Commissioning – Each ECM may have a section regarding the commissioning process. This provides the detail for how the savings will be verified upon project completion, and the type of inspection that will be completed, and the billing method for verified savings. This section is utilized to provide a standard approach for each ECM upon project completion.

Climatec LLC will follow the agreed-upon M&V protocols for the measurement period and will prepare post-installation reports with supporting documentation for the Purchaser. The cost of M&V is included in the project cash flow requirements.
______________________
M&V Agreement – Att A

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SPECIFIC MEASUREMENT AND VERIFICATION PLAN
“OPTION A”

FOR LIGHTING SYSTEM UPGRADES
Introduction
This M&V Plan is specific to all lighting retrofits and occupancy sensor installations. The sites receiving these upgrades are listed in the Table of Recommended Measures located at the beginning of this Attachment.

M&V Protocol
For this ECM, IPMVP Protocol – Option A shall be utilized. This option provides for the measurement of at least one variable pre- and post-retrofit with other variables allowed for stipulation. For this retrofit, a representative sample of each of the fixture types will be measured. The same sample will be used for both pre- and post-retrofit calculations.

Wattage shall be measured with an appropriate instrument that is properly calibrated.

Light Levels
A representative sample of the light levels shall be measured. Where rooms have similar or identical lighting design, it is not required that each room be measured. Light levels shall be measured by an appropriate instrument that is properly calibrated. Light level measurements apply to both pre- and post-retrofit areas and shall be recorded at the work surface.

Where rooms do not have a specific work surface (such as gymnasiums) light levels shall be measured at the floor.

Documentation
All areas measured shall be documented. The data shall indicate areas that do not meet IESNA standard light level requirements. All instrumentation used shall be clearly documented.

Stipulated Values
Operating hours are stipulated for purposes of M&V. Please see Attachment C, Lighting Standards of Operation for a complete list of lighting hours of operation. Stipulated values are agreed to by the Purchaser.

Savings Calculations
The calculations for the baseline energy consumption and post-retrofit savings provide the basis for the overall financial viability of this ECM.
kWh and/or kW Savings
The electrical consumption reduction of a particular lighting ECM is determined by comparing the pre- and postconditions applied to the hours agreed upon in the Standards of Operation. {[(Existing watts/fixture) x (existing quantity) x (existing hours of operation)] – [(proposed watts/fixture) x (proposed quantity) x (proposed hours of operation)} / 1000 = kWh savings Dollar Savings
After calculating the kWh saved, the specific facility’s average cost per kilowatt-hour shall be used to determine dollar savings.
(kWh saved) x (average kWh rate) = $ kWh saved
($ kWh saved) = the total dollars saved
Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new lighting system installations, extended warranties, and/or service agreements provided by Climatec LLC. The operational savings are stipulated and met upon the completed installation of the Installation Agreement.

Adjustments
For this ECM the following adjustments are allowed for purposes of M&V:
➢ Light level requirements may be modified as detailed in this plan. ______________________
M&V Agreement – Att A

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➢ Changes in actual construction including number and/or type of fixtures. All changes shall be clearly documented and provided to the Purchaser’s representative. ➢ Utility rates, billing days or degree-days.

Commissioning
Commissioning shall consist of inspections and a final savings verification report. Inspections shall consist of:
➢ During the construction phase of the project, Climatec LLC shall keep a detailed record of the quantity and types of fixtures retrofitted and fixtures installed in each building. A post construction inspection is required by the responsible M&V party.
➢ After lighting modifications have been made, the installations shall be inspected to verify the retrofit counts by fixture code.
➢ Post-retrofit lighting levels shall be measured to verify compliance with the contract standards. ______________________
M&V Agreement – Att A

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SPECIFIC MEASUREMENT AND VERIFICATION PLAN
“OPTION A”

FOR HVAC SYSTEMS INSTALLATION
Introduction
This M&V Plan is specific to the installation of new high efficiency HVAC units at the sites listed in the Table of Recommended Measures located at the beginning of this Attachment.

M&V Protocol
For this ECM, IPMVP Protocol – Option A shall be utilized. This option shall provide for the measurement of at least one variable pre- and post-retrofit with other variables allowed for stipulation. For this retrofit, field data shall be collected which includes, unit counts, unit tonnage, nameplate horsepower and efficiency rating for each existing HVAC system.

Stipulated Values
Hours of operation, heating/cooling loads and runtime hours of the existing HVAC systems are stipulated for purposes of M & V. Please refer to Attachment C, HVAC Standards of Operation in this Agreement for specific operating hours and runtime hours for each HVAC unit or area. Stipulated values are agreed to by Purchaser.

Calculations
The calculations for the baseline energy consumption and post-retrofit savings provide the basis for the overall financial viability of these ECM’s. The following equations summarize the calculation of savings:

Electric (kWh) Savings
The electrical usage reduction of this ECM is determined by the following equation:
((Size of Existing HVAC Unit) x (Unit Efficiency) x (Stipulated Load Factor) - (Size of New Cooling Unit) x (Unit Efficiency) x (Stipulated Load Factor)) x (Annual Operating Hours) = kWh Savings Dollar Savings
After calculating the kWh saved, the specific facility’s average cost per kilowatt-hour shall be used to determine dollar savings.
(kWh saved) x (average kWh rate) = $ kWh saved
($ kWh saved) = Total dollars saved
Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by Climatec LLC. The operational savings are stipulated and met upon the completed installation of the Installation Agreement.

Pre-Retrofit Measurements
None required for this ECM.

Post-Retrofit Measurements
None required for this ECM.

Adjustments
None required for this ECM.

Commissioning
Commissioning shall consist of inspections, and a final commissioning report. The inspections and report shall consist of:
➢ Commissioning of the newly installed HVAC equipment shall include verification that each new unit is operating, as specified, in all modes (heat/cool).
______________________
M&V Agreement – Att A

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SPECIFIC MEASUREMENT AND VERIFICATION PLAN
“OPTION A”

FOR HVAC CONTROLS UPGRADE
Introduction
This M&V Plan is specific to the Energy Management System (“EMS”) upgrades at the sites listed in the Table of Recommended Measures located at the beginning of this Attachment.

M&V Protocol
For this ECM, IPMVP Protocol – Option A shall be utilized. This option shall provide for the measurement of at least one variable pre- and post-retrofit with other variables allowed for stipulation. The cooling and heating setpoints during occupied and unoccupied modes of the HVAC equipment will be verified and documented. For this retrofit, field data shall be collected which includes, unit counts, unit tonnage, nameplate horsepower, efficiency rating, operating schedules, cooling and heating temperature setpoints for each HVAC system.

Stipulated Values
Hours of operation and heating/cooling load factors are stipulated for purposes of M&V. Please refer to the Attachment C, HVAC Standards of Operations for specific existing and proposed operating hours for each HVAC unit or area.

Stipulated values are agreed to by Purchaser.

Calculations
The calculations for the baseline energy consumption and post-retrofit savings provide the basis for the overall financial viability of these ECM’s. Post-retrofit operating schedules and trend reports will be used to verify the inputs such as operating hours, cooling/heating temperature setpoints that are used in the calculations to validate the savings. The following equations summarize the calculation of savings:

Electric (kWh) Savings
The electrical usage reduction of this ECM is determined by applying the stipulated runtime reduction to the calculated energy usage of the HVAC unit.
(Size of HVAC unit) x (Unit efficiency) x (Stipulated load factor) x (Existing annual operating hours – Proposed annual operating hours) = kWh savings
Natural Gas (Therms) Savings
The natural gas usage reduction of this ECM is determined by applying the stipulated runtime reduction to the calculated energy usage of the HVAC unit.
(Size of Heating unit) x (Unit efficiency) x (Stipulated load factor) x (Existing annual operating hours – Proposed annual operating hours) = Therm savings
Dollar Savings
After calculating the kWh saved and the Therms saved, the specific facility’s average cost per kilowatt-hour and the average cost per Therm of natural gas shall be used to determine dollar savings. (kWh saved) x (average kWh rate) = $ kWh saved
(Therms saved) x (average Therm rate) = $ Therms saved
($ kWh saved) + ($ Therms saved) = Total dollars saved
Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by Climatec LLC. The operational savings are stipulated and met upon the completed installation of the Installation Agreement.

Pre-Retrofit Measurements
Existing operating hours and cooling/heating temperature setpoints for each HVAC unit or area will be obtained from current thermostats/EMS.
______________________
M&V Agreement – Att A

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Post-Retrofit Measurements
Post-retrofit operating schedules, cooling and heating temperature setpoints in both occupied and unoccupied modes for the HVAC equipment will be obtained using the new controls system.

Adjustments
For this ECM the following adjustments are allowed for purposes of M&V:
➢ Addition or subtraction to the conditioned square footage of facilities. ➢ Utility rates, billing days or degree-days.
➢ Equipment changes.
➢ Increase or decrease in facility usage as associated with daily occupancy times and special events.

Commissioning
Commissioning shall consist of inspections, and a final commissioning report. The inspections and report shall consist of:
➢ Commissioning of the newly installed EMS shall include verification that the operating schedules, cooling and heating temperature set points and the control sequences for the HVAC equipment have been programmed as specified.
______________________
M&V Agreement – Att A

Page 11 of 12 ends

SPECIFIC MEASUREMENT AND VERIFICATION PLAN
“OPTION A”

FOR SOLAR PHOTOVOLTAIC INSTALLATION
Introduction
This M&V Plan is specific to the solar photovoltaic (“PV”) installations at the sites listed in the Table of Recommended Measures located at the beginning of this Attachment.

M&V Protocol
For this ECM, IPMVP Protocol – Option A shall be utilized. This option shall provide for the measurement of at least one variable pre- and post-retrofit with other variables allowed for stipulation. For this installation, the kilowatt-hour (kWh) production from the solar PV systems shall be measured and recorded.

Stipulated Values
The solar panel degradation factor (0.25%), and utility escalation rate (5%/year) are stipulated for the purposes of M&V.

Stipulated values are agreed to by Purchaser.

Calculations
The calculations for the baseline energy consumption and post installation savings provide the basis for the overall financial viability of these ECM’s. The following equations summarize the calculation of savings:

Electricity Production
Electricity production of the PV system is determined by recording the kilowatt-hours (kWh) off the net electric meter/Data Acquisition System (DAS) and recording the results.

Dollar Savings
After recording the kWh generated from the PV system, the specific facility’s average cost per kWh shall be used to determine dollar savings.
(Annual kWh production) x (Average $/kWh) = Annual $ kWh Saved (Annual $ kWh Saved) = Total Dollars Saved
Maintenance of System
Calculation of energy cost savings from the solar PV systems are contingent upon the Purchaser maintaining an active operations and maintenance (O&M) contract for the term of the solar lease agreement.

Pre-Retrofit Measurements
Existing utility electrical energy (kWh) consumption as shown in Attachment B – Baseline Summary.

Post-Retrofit Measurements
Electrical energy (kWh) produced from the solar PV systems recorded from the net electrical meter/DAS.

Adjustments
For this ECM the following adjustments are allowed for purposes of M&V:
➢ Addition or subtraction to the square footage of facilities. ➢ Utility rates, billing days or degree-days.
➢ Addition or subtraction of electrical load at the facilities. ➢ Any structural failure in a building supporting the PV system. ➢ Unexpected weather conditions falling outside of the normal weather for the location. ➢ Legislative, administrative or executive action, regulation, order or requisition of any federal, state or local government, local utility or public utilities commission. ______________________
M&V Agreement – Att A

Page 12 of 12 ends

➢ There is an event of Force Majeure or changes in the conditions at or near any of the sites, which causes additional shading, soiling, or otherwise reduced performance of the solar PV systems.

Commissioning
Commissioning shall consist of inspections, and a final commissioning report. The inspections and report shall consist of:
➢ Commissioning of the new solar PV system shall include securing the Utility Interconnect Agreement with ______, proper alignment of the solar panels and functional testing. ______________________
M&V Agreement – Att B

Page 1 of 2 ends

Attachment “B”
Utility Baseline Summary
______________________
M&V Agreement – Att B

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Energy Baseline
______________________
M&V Agreement – Att C

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Attachment “C”
Standards of Operation for HVAC & Lighting
______________________
M&V Agreement – Att C

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STANDARDS OF OPERATION
The hours of operation for the Purchaser’s HVAC and lighting systems, located on the following pages, were used to calculate the energy savings for this Agreement and will be used in all M&V calculations. ______________________
M&V Agreement – Att C

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_______________________________
HVAC Standards of Operation

INSERT TABLE HERE
______________________
M&V Agreement – Att C

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Lighting Standards of Operation
Insert Table Here
Page | 12
Request for Proposals No. 2025-700 – City of Calexico Infrastructure Modernization and Utility Savings Program Proposal Due Date: November 12, 2025

PRICING PROPOSAL
Infrastructure Modernization & Utility Savings Program
Pursuant to and in compliance with your Notice Requesting Proposals and all other documents relating thereto, the undersigned respondent, having familiarized himself with the terms and conditions of the proposal documents, hereby proposes and agrees to perform the work to be done and to provide all labor and materials necessary to perform the work.

Name of Respondent: _____________________________________________________ INVESTMENT GRADE AUDIT (IGA):

Does the respondent require an IGA agreement be entered into before a scope of work, turnkey price and guaranteed savings can be finalized?
YES NO
If an IGA agreement is required, does it include exit fees and/or penalties in the event the City chooses not to implement the IGA findings?

YES NO N/A
What is the respondent’s price to complete an IGA?
$___________________per square foot
IMPLEMENTATION:

What is the respondent’s profit fee for program implementation? Overhead % ____________________
Profit % _______________________
Climatec, LLC.

0.00 5
9 CITY OF CALEXICO
RFP 2025-700 | Infrastructure Modernization & Utility Savings Program 43 | P a g e
TAB 11: ADDITIONAL INFORMATION
In this section, Climatec has elected to illustrate the additional benefits that the City would recognize as a result of the implementation of an infrastructure modernization and utility savings program, as well as several elements unique to Climatec.

ADDITIONAL BENEFITS
◼ Reduce rising cost pressures on the general fund & capital budgets ◼ Revitalize infrastructure without using general fund or capital ◼ Hedge against significant rate increases from utility providers ◼ Implement CIP priorities at today’s construction prices ◼ Eliminate change orders, scope gaps & timeline uncertainty ◼ Reduce deferred maintenance liabilities
◼ Facility occupant comfort & safety
◼ Staff & operational efficiency
◼ Environmental stewardship
◼ Community outreach & engagement

SMART CITY EXPERTISE & EXPERIENCE
As cities face rising infrastructure demands, tightening budgets, and increasing sustainability initiatives, Smart City technologies offer a transformative path forward.

Climatec brings proven expertise in integrating advanced digital infrastructure with e nergy, water, and facility modernization to help cities like Calexico reduce emissions, optimize performance, and enhance public services.

Through our parent company, Bosch, a global leader in IoT innovation, we deliver intelligent, cross-domain solutions that integrate building automation, renewable energy,

CITY OF CALEXICO
RFP 2025-700 | Infrastructure Modernization & Utility Savings Program 44 | P a g e
EV charging, battery storage, and sensor networks into a unified smart ecosystem. Our programs are transforming cities like San Leandro, Ontario, and Santa Clarita, equipping municipal staff with powerful tools for efficiency, while improving livability and safety for residents.

Leveraging technologies such as intelligent lighting, real-time dashboards, GHG monitoring, and predictive analytics, we help municipalities align with Capital Improvment Plan goals and build a digital foundation for asset management plans. With Bosch’s 86,000+ R&D professionals and deep expertise in IoT, Climatec ensures that we have access to the most innovative, effective, and sustainable solutions available.

POWER RESILIENCY
California municipalities are increasingly
challenged by Public Safety Power Shutoffs (PSPS),
planned outages used to prevent wildfires during
high wind and dry conditions. While effective for
fire prevention, PSPS events disrupt essential
operations across many public agencies. As a
result, cities are actively exploring power resiliency
solutions, including microgrids, to ensure critical
facilities remain operational during outages.

Recent state legislation has made additional
funding available to support the planning and
implementation of these technologies. As part of
our comprehensive City-wide assessment, Climatec
will work with City staff to identify priority
infrastructure such as the water and wastewater
treatment plant, well pumps, communications
systems, and emergency response facilities, that would benefit from enhanced resiliency.

Air Quality Monitoring
Virtual Power Plants
Safety & Security E-Mobility
City Data Platform &
Community App
Wild re Detection
Smart Energy Connected Buildings
Smart Parking
Energy Storage Solutions Public Wi-Fi

CITY OF CALEXICO
RFP 2025-700 | Infrastructure Modernization & Utility Savings Program 45 | P a g e
We will evaluate the feasibility of microgrid solutions tailored to Calexico’s needs and integrate viable funding options into the overall program. Climatec’s goal is to help the city maintain uninterrupted service and uphold the high standards its community expects and deserves.

GREENHOUSE GAS EMISSIONS REDUCTIONS
Through an energy efficiency and sustainability program, customers are achieving drastic reductions in CO2 emissions, demonstrating a commitment to environmental stewardship. These efforts not only provide relief to the general fund and spur job creation in the private sector but also yield various environmental benefits.

By reducing the City’s energy consumption, there is a correlating decrease in the energy demand on utilities, resulting in significant reductions in GHG emissions and pollution throughout Imperial County.

These impacts can be communicated effectively through real-time dashboards in public buildings throughout the City, providing stakeholders with easy access to track sustainability efforts. Leveraging our extensive experience in energy and infrastructure modernization, we provide Calexico with a comprehensive strategy to achieve its environmental goals while improving city services and infrastructure resilience. Our partnership promises to create a more sustainable, efficient, and environmentally responsible Calexico for all residents.

Sample Energy Dashboard: Energy Use Monitoring

CITY OF CALEXICO
RFP 2025-700 | Infrastructure Modernization & Utility Savings Program 46 | P a g e

LOCAL JOB CREATION
Climatec supports community job creation and local partnerships to fulfill components of the program we do not self-perform. This spans from specialty engineering for larger or complicated systems to installation labor, if necessary. Climatec has experience working with local labor unions and public works apprenticeship programs. We have been successful in keeping most of the labor local, further supporting local economic development.

We are committed to employing members of the community and keeping project funding within local neighborhoods.

AS PART OF THE SANTA CLARITA 2025 STRATEGIC PLAN, THE CITY HAS MANY

EVALUATING OPPORTUNITIES TO COMPLETE ENERGY EFFICIENCY PROJECT UPGRADES TO ALL CITY FACILITIES.

DARIN SEEGMILLER, ENVIRONMENTAL SERVICES MANAGER | CITY OF SANTA CLARITA ®

ANAHEIM
2150 S. TOWNE CENTRE PL. #200
ANAHEIM, CA 92806
PHONE (949) 474-0955

SAN DIEGO
13715 STOWE DRIVE
POWAY, CA 92064
PHONE (858) 391-7000

LOS ANGELES
16735 SATICOY ST. #111
VAN NUYS, CA 91406
PHONE (818) 855-8528

BAY AREA
4695 CHABOT DR. #258
PLEASANTON, CA 94588
PHONE (925) 558-2729

LAS VEGAS
770 PILOT ROAD, SUITE I
LAS VEGAS, NV 89119
PHONE (702) 988-8826

PHOENIX
2851 W. KATHLEEN RD.

PHOENIX, AZ 85053
PHONE (602) 944-3330
DALLAS
1632 W. WALNUT HILL LANE
IRVING, TX 75038
PHONE (972) 659-0401
AUSTIN
1340 AIRPORT COMMERCE DR. #480
AUSTIN, TX 78741
PHONE (512) 358-0703

City of Calexico
Public Works Department
Request for Proposals - No. 2025-700
Infrastructure Modernization and Utility Savings
Program
November 12, 2025
Bound Copy
CityMAINTENANCE AND REPAIR SERVICE City of Calexico Public Works Department – Infrastructure Modernization and Utility Savings Program
No. 2025 - 700
November 12, 2025
Prepared for:

Jesus Villegas Peimbert
Public Works Director/City Engineer
549 Pierce Avenue
Calexico, CA 92231
Phone: 760-768-2160
Email: [email protected]
Submitted by:

Will Minerich
Account Executive – Energy and Electrification
3568 Ruffin Road
San Diego, CA 92123
Phone: 206-245-0778
Email: [email protected]
Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

Page 1 ends

A. Cover Letter
November 12, 2025
City of Calexico
Office of the City Clerk
608 Heber Avenue
Calexico, CA 92231
Re: Proposal Submission – RFP No. 2025-700 (Infrastructure Modernization and Utility Savings Program)
Dear Evaluation Committee Members:

On behalf of Johnson Controls, Inc., we are pleased to submit our proposal in response to the City of Calexico’s RFP No. 2025-700. As a global leader in smart, sustainable infrastructure solutions, Johnson Controls is uniquely positioned to deliver a comprehensive, turnkey modernization program that will reduce utility costs, enhance operational resilience, and support the City’s long-term sustainability goals.

With 140 years of experience and a deep portfolio of successful energy performance contracts across California, we understand the complexities of municipal infrastructure and the importance of delivering measurable results. Our team brings proven expertise in conducting Investment Grade Audits, implementing high-efficiency HVAC, lighting, and water systems, and integrating renewable energy and battery storage technologies. We are proud to be a NAESCO-accredited ESCO and are listed on the U.S. Department of Energy’s Qualified List of Energy Service Companies.

We fully understand and embrace the scope and intent of this RFP, and we are confident in our ability to meet and exceed the City’s expectations. We also understand the time sensitive nature of this response. We have the best team to engineer and begin construction on any solar projects that can qualify for the Investment Tax Credit. We also have the ability to source equipment as we are a manufacturer of York HVAC products, this along with the Omnia Cooperative purchasing agreement that includes all manufacturers will ensure that the city receives the best possible value for the project.

Johnson Controls is eager to support Calexico’s goals by delivering a program that achieves long-term utility savings, modernizes infrastructure, and improves operational performance across City facilities. Our team is committed to working collaboratively with City staff and stakeholders to ensure the success of this initiative.

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Our approach is grounded in transparency, collaboration, and accountability. We will work closely with City staff to develop a tailored scope of work that aligns with your priorities, ensures operational continuity, and maximizes available incentives and grant funding. Our performance-based model ensures that the City pays only from realized savings, no upfront capital is required.

We are excited about the opportunity to partner with the City of Calexico and contribute to a more efficient, resilient, and sustainable future. Please feel free to contact me directly with any questions or to schedule a follow-up discussion.

Sincerely,
Will Minerich
Account Executive
206-245-0778 | [email protected]
Authorization to Represent the Organization
Organization Johnson Controls, Inc.

Name Will Minerich
Address 3568 Ruffin Road, San Diego, CA 92123
Telephone 206-245-0778
Fax Number N/A
Email [email protected]
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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B. Table of Contents
A. Cover Letter ..........................................................................................................................1 B. Table of Contents .................................................................................................................3 Minimum Requirements ...............................................................................................................4 D. Contractor Qualifications....................................................................................................6

1. Executive Summary .....................................................................................................7

2. Approach and Scope of Work.....................................................................................9

3. Work Schedule ...........................................................................................................21

4. Qualifications and Experience..................................................................................22

5. References ..................................................................................................................28

6. Litigation Disclosure..................................................................................................34

7. Media Attachments ...................................................................................................35

8. Funding Sources ........................................................................................................36

9. Savings ........................................................................................................................43

10. Contracts, Forms and Pricing...................................................................................46

11. Additional Information..............................................................................................47 E. Appendix................................................................................................................................49 RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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Minimum Requirements
Successfully implemented at
least five (5) energy
performance contracts for the
public sector clients in the last
(3) years.

Johnson Controls has successfully implemented
well over five energy performance contracts for
public sector clients within the past three years,
demonstrating consistent delivery of guaranteed
savings and operational improvements across
municipalities, school districts, and government
facilities.

Have five (5) California public
agency references for which
the respondent has provided
turn-key responsibility
including guaranteed energy
savings in the past three (3)
years.

Johnson Controls has successfully delivered turnkey energy performance contracts with guaranteed savings to more than five California public agencies
within the past three years. Each engagement
involved full-service responsibility—from audit and
design through installation, commissioning, and
ongoing measurement and verification—ensuring
compliance with IPMVP protocols and delivering
documented utility savings. Johnson Controls’
performance assurance engineers worked closely
with agency staff to monitor outcomes, reconcile
savings annually, and ensure all guaranteed
targets were met or exceeded.

Current accreditation by the
National Association of Energy
Services Companies (NAESCO),
and be included on the U.S.

Department of Energy’s (DOE)
Qualified List of Energy Service
Companies.

Johnson Controls holds current accreditation from
the National Association of Energy Service
Companies (NAESCO) and is proudly listed on the
U.S. Department of Energy’s (DOE) Qualified List of
Energy Service Companies. These designations
reflect Johnson Controls’ proven track record of
delivering guaranteed energy savings through
comprehensive, turn-key solutions for public sector
clients. The company’s inclusion on these
nationally recognized lists affirms its technical
competence,
financial stability,
and commitment to
performance
assurance.

Combined with its
updated branding
and longstanding
reputation, Johnson
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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Controls offers the City of Calexico a trusted
partner for energy efficiency, compliance, and longterm value.

Active General Contractor
License in California
Johnson Controls holds an active General
Contractor License in the State of California,
demonstrating our compliance with all regulatory
requirements for construction and energy-related
services. This licensure enables us to provide full
turn-key project delivery, including design,
installation, commissioning, and performance
verification, in accordance with California state laws
and public agency standards.

Minimum of $5 million in
bonding capacity
Johnson Controls meets and exceeds the minimum
bonding capacity requirement, maintaining a
bonding capacity well above $500 million. As a
financially stable and nationally recognized energy
services provider, Johnson Controls partners with
top-rated surety companies to provide
performance and payment bonds in accordance
with public sector contracting requirements.

No pending or recent litigation
associated with the savings
performance and/or
measurement and verification
(M&V) of a guaranteed energy
savings project.

Johnson Controls confirms that there is no pending
or recent litigation associated with the savings
performance or measurement and verification
(M&V) of any guaranteed energy savings project.

RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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D.Contractor Qualifications
Describe the contractor’s resources, experience, and capabilities as it relates to the Scope of Services. Submit in the order identified below.

1. Executive Summary

2. Approach and Scope of Work

3. Work Schedule

4. Qualifications and Experience

5. References

6. Litigation Disclosure

7. Media Attachment

8. Funding Sources

9. Savings

10. Contracts, Forms, and Pricing

11. Additional Information
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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1. Executive Summary
An executive summary should briefly describe the contractor’s qualifications, including experience in the development, implementation, and monitoring of a comprehensive infrastructure modernization and utility savings program. The summary should include a description of similar projects completed for other cities or counties.

Johnson Controls, Inc. is a global leader in infrastructure modernization and energy performance contracting, with over 140 years of experience delivering innovative, sustainable solutions to public sector clients. As a NAESCO-accredited Energy Services Company (ESCO) and a member of the U.S. Department of Energy’s Qualified List of ESCOs, Johnson Controls has successfully developed, implemented, and monitored hundreds of comprehensive utility savings programs across California and the nation.

We are committed to increasing the energy efficiency of public sector facilities, and we bring to the City of Calexico industry-leading expertise in implementing major energy efficiency upgrades. Our local government experience includes installing improvements in all types of municipal facilities, including city halls and office buildings, police and fire stations, correctional facilities, water and wastewater treatment plants, park and recreational facilities, arenas, convention centers, and more. Nationwide, Johnson Controls currently manages 67 performance contracts for local governments that are guaranteed to save them nearly $760 million.

Within California, 26 public sector clients are currently relying on us to deliver $436.8 million in guaranteed savings. Our projects in the state have created more than 2,711 jobs, according to the U.S. Department of Commerce, and have generated over $474 million in additional economic activity. We will manage this project with our local team based out of Los Angeles, supported by 353 employees within a 30-mile radius who are proficient in all aspects of the project. In total, we have more than 2,067 professionals across California dedicated to building technologies and energy services.

Our integrated approach combines investment-grade audits, turnkey design-build delivery, and long-term measurement and verification (M&V) to ensure guaranteed energy savings and operational improvements. We specialize in optimizing HVAC systems, upgrading lighting and controls, deploying building automation systems, and integrating renewable energy and battery storage—all tailored to meet the unique needs of municipal facilities.

Local Presence: Johnson Controls has unmatched experience in California. We were selected by the California Department of General Services (DGS) to implement both the State of California’s Small and Large Building Energy Efficiency Programs. Our customers in the State of California include state, local and federal government, higher education, K-12 schools, healthcare, public housing and commercial facilities. Our employees live and work in Northern California, which means we have a vested interest in the success of your City. We have provided services to over fifty regional customers, including Alameda County, the City of Redding, Shasta County, the City of Mt Shasta, Humboldt County, Cal-Tans, Shasta College, Humboldt State University, Redding Mercy Medical Center and the Tri Counties Bank in Redding.

Uniquely qualified to serve the City of Calexico. Johnson Controls is a financially solid Fortune Global 500 company with annual revenue exceeding $25 billion and more than 120,000 employees RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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worldwide. We have been in the energy efficiency business for 140 years, and we will be here to support the City of Calexico long after individual projects have been implemented. Our size and capacity allow you to assign multiple projects to Johnson Controls to perform in parallel (as opposed to serially), thus saving much needed energy, water and utility costs sooner.

Innovative services custom-fit to the City of Caleximo’s needs. Johnson Controls’ continually exceeds customer expectations in terms of execution, speed, energy reduction and overall costs by leveraging our buying power and wide array of subject matter experts. Johnson Controls was born from innovation when Warren Johnson invented the first electric room thermostat in 1885. We continue to develop innovative technological solutions, construction techniques, project delivery methods and project financing strategies with project partners like the City.

Services to Offset Project Costs: By leveraging our National Purchasing agreements and our strength as a manufacturer we can achieve the City of Calexico cost savings of 15-20% compared to other ESCO’s. Through our competitive pricing and grant and rebate services, we stretch project dollars to address as many needs as possible. We will work with the City to identify, write, and submit grant applications to help offset the project cost. Since 2009, we have worked with clients to obtain $433 million in grants, representing an 88%-win rate.

Innovative Financing Solutions: We work with over thirty lenders and finance experts to negotiate on behalf of our customers. Our Structured Finance Team has the experience and expertise to respond to special characteristics of each project and identify customized financing options. We also offer a unique contingent payment program that no other energy company offers. Johnson Controls will absorb the cost if the savings is not delivered as expected.

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2. Approach and Scope of Work
Describe the contractor’s approach to completing the development, implementation, and monitoring of a comprehensive infrastructure modernization and utility savings program, a summary of major tasks and key sub-tasks, and identify proposed meetings including any public outreach meetings, public hearings, and deliverables.

Johnson Controls applies a proven, performance-based methodology to deliver comprehensive infrastructure modernization and utility savings programs for public sector clients. Our approach is designed to maximize energy and operational savings, minimize risks, and ensure long-term sustainability through collaboration, transparency, and accountability. Johnson Controls’ performance contracting approach is categorized into four phases, from preliminary audit and analysis through implementation and ongoing performance management. Our procedures are outlined below followed by more detailed descriptions of each step.

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With our established presence in the city, Johnson Controls has the personnel and resources in Calexico, and across California, to audit your facilities and develop an innovative suite of solutions that results in positive cash flow. Our focus is establishing relationships with your leadership and personnel at each location so we can coordinate the schedule and minimize disruptions.

We interview operators, directors and other stakeholders to determine specific needs and how we can impact their goals and key performance indicators. We focus on life-cycle cost analyses so the City’s team can evaluate upgrades over each system’s period of use. The results of our study identify efficiency, infrastructure, and operational improvements with their potential cost savings, as well as capital planning, safety and regulatory issues that can be addressed in a proactive manner.

We also intend to integrate the technical expertise of local and diverse engineering partners to provide the most thorough and effective technical engineering study possible, including your preferred contractors wherever possible. Bringing firms who have previous experience in your facilities will result in the most effective study and implementation plan.

An overview of our auditing process is shown on the next page, followed by a sample energy audit checklist we use to chronologically detail our audit process and manage the vast amount of information collected.

RFP – NO. 2025-700 CITY OF

CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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Sample Energy Audit Checklist
Utility Bill Analysis
 Identify all meters and locations—match each meter to the utility bill account.  Identify the areas and buildings served by each meter.  Analyze the demand profiles and consumption for each meter.  Analyze rate structures and billing methods.

Mechanical System Survey
 Review existing mechanical drawings and specifications.  Sketch HVAC zoning by building and by HVAC unit.
 Conduct a walk-through of all equipment rooms.
 Document existing mechanical systems for operating schedules, age, condition, consumption, operations and limitations.
 Measure operating conditions in accordance with survey forms.  Define required or future mechanical systems, conditioning requirements, operating schedules, and maintenance requirements.
 Review historical operations of the systems, comfort level, problems, failures, etc. with the City.  Verify approach to PM, predictive diagnostics, repair and material procurement.  Verify outside service contracts and level of customer satisfaction.  Analyze system(s) maintenance requirements versus existing manpower loading.  Verify staff skill and knowledge level, and assess training plans.  Review capability of equipment to serve present needs and the feasibility of performing improvements.  Document existing code violations or operational deficiencies.  Establish proposed improvements for each system.
 Gain customer perspective or experience on new technologies.  Document via photographs.

Electrical System Survey
 Review existing electrical drawings.
 Perform/coordinate an electrical retrofit survey.
 Conduct a walk-through of all equipment rooms.
 Document existing electrical systems for operating schedules, age, performance and maintenance.  Measure operating conditions in accordance with survey forms.

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 Review historical operations of the systems, problems, failures, etc. with the City.  Document existing code violations or operational deficiencies.  Establish proposed improvements for each system.
 Gain customer perspective or experience with new technologies.  Document via photographs.

Lighting Systems
 Review lighting schematics and circuitry lay out.
 Measure current light levels at desktop and general illumination areas.  Survey fixtures to assess lamp and ballast type and condition.  Review lighting control approach.
 Review operations and maintenance approach for lighting.  Gain City perspective/experience with new technologies and lighting approach.

Automation Control Survey
 Review existing control drawings and systems.
 Document the condition of the current system.
 Analyze systems to be automated.
 Document existence and condition of time clocks.
 If automation exists, document the following:
 Current points list
 List of enabled energy conservation features
 List of schedule start/stop times for various equipment  Establish a recommended points list by system and by building  List of implemented features, such as runtime tantalizations per load, optimal start/stop, etc.  Documented maintenance approach and training plan
 Identify unique installation requirements affecting cost to implement.  Discuss current operations and issues with staff.
 Gain City’s perspective or experience with new technologies (DDC).  Document via photographs.

How is the City involved?
We rely on your insight. This project has to meet your expectations so we hold workshops to discuss all aspects of the project, the impact on your visitors, staff and activities and your overall goals. At critical points throughout the process (finalizing scope, baseline, M&V, construction, finance), we will hold workshops with key stakeholders and share our knowledge and experience.

We have the flexibility to adjust as needed, so there are no surprises, minimal disruption, and the project and meets your key objectives.

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 Information and Resources Needed from the City
 The following list shows the documents and information typically requested prior to the project kickoff meeting and site visits:
 Contact information for key personnel.
 Name of buildings, address, purpose, type, use, age, square footage for each.  Site map where applicable.
 8-1/2 x 11 floor plans (i.e., fire escape plans) of floors for each building.  List of fuel types and water procured for use at each facility.  Utility rate schedules and contracts.
 Copies of at least 14 months’ worth of utility bills.  Provide at least two years of the most recent annual budgets for facilities.  Provide recent list of approved budget for capital appropriations.  Provide list of expenditures for out sourced services and annual cost.  Provide list of major equipment in facility including age and condition.  Review special needs or problems.
 Provide copy of major systems equipment schedule with legends (design performance).
 Provide list of controls vendors and all points logs where applicable.  Provide copy of recent studies that could or may influence energy use.  Provide list of recent changes, modifications or projects which could influence energy use.
 Provide list of perceived problems and issues.
 List preferred contractors and vendors (manufacturer of equipment, HVAC, lighting etc.).
 List preferred engineering consultants, mention any studies and master plans.  Where available, provide copy of air balance report if no older than five years.  In addition to the aforementioned information, Johnson Controls would ask the following participation by the City during the remainder of the project:
 Oversight of project performance from contractual standpoint.  Review/approval of submittals.
 Review project study.
 Approve M&V plan.

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 Assist in development of construction schedule.
 Approve recommended subconsultants and subcontractors.  Assist with facility access.
 Provide feedback to Johnson Controls regularly regarding project performance and issues.
 Attend monthly project review meetings.
 Appraise Johnson Controls project and sales management of trends and changes.  Provide insight into long- and short-term facility plans.

RFP – NO. 2025-700 CITY OF

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3. Work Schedule
Include a proposed project timeline with specific tasks envisioned for this project, including staff.

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4. Qualifications and Experience
Provide the contractor’s background and qualifications to perform the requested services. Identify any subcontractors. Identify all project personnel and their role in the development, implementation, and monitoring of a comprehensive infrastructure modernization and utility savings program. Summarize relevant qualifications and experience of each of the identified personnel.

Contractor Background and Qualifications
Johnson Controls, Inc. is a global leader in smart building technologies and energy performance contracting, with over 140 years of experience helping public sector clients modernize infrastructure, reduce utility costs, and improve operational resilience. As a NAESCO-accredited Energy Services Company (ESCO) and a member of the U.S.

Department of Energy’s Qualified List of ESCOs, Johnson Controls brings unmatched technical depth, financial stability, and a proven track record of delivering guaranteed energy savings.

We specialize in the development, implementation, and monitoring of comprehensive infrastructure modernization programs that include:
• Investment Grade Audits (IGA)
• Turnkey design-build delivery
• HVAC optimization and replacement
• Lighting and controls upgrades
• Building automation systems (BAS)
• Water and wastewater efficiency improvements
• Solar PV and battery energy storage systems
• Measurement and Verification (M&V) per IPMVP standards • Grant and incentive acquisition
• Long-term performance monitoring and staff training
Our team has successfully completed hundreds of projects for cities and counties across California and the U.S., including work in city halls, police and fire stations, libraries, community centers, water and wastewater treatment plants, and public works yards.

Nationwide, Johnson Controls currently manages 67 performance contracts for local governments, guaranteeing nearly $760 million in savings.

California Presence
Our team based in San Diego will lead this project, supported by regional experts in engineering, construction, project management, and M&V. We are fully licensed as a California General Contractor, maintain bonding capacity well above the $5 million minimum, and have no pending or recent litigation related to savings performance or M&V.

Johnson Controls is uniquely qualified to deliver the City of Calexico’s Infrastructure Modernization and Utility Savings Program with precision, transparency, and long-term value.

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Key Personnel
Johnson Controls assigns a dedicated team of experienced professionals to lead the development, implementation, and monitoring of each infrastructure, modernization and utility savings program. The team typically includes a Project Executive who oversees strategic alignment and client coordination; a Lead Engineer responsible for technical design and energy modeling; a Construction Manager who supervises field execution and safety compliance; and a Performance Assurance Engineer who manages ongoing measurement and verification (M&V) and ensures guaranteed savings are met. Each team member brings deep expertise in public sector energy projects, with certifications in engineering, construction management, and IPMVP protocols, ensuring the City of Calexico receives a fully integrated and accountable delivery team.

Will Minerich, Account Executive
Seasoned and accomplished Business/Project Development manager. Will has developed projects for K-12, Colleges, and Municipalities. AAPA Facilities Certification. BS Chemistry/Materials Science with a focus on Renewables.

Mike Kozlowski, Senior Development Manager
Mr. Kozlowski provides preconstruction services, project management, client advocacy, development and evaluation of funding models and subsidy programs and processing of projects through California state agencies. Significant experience with LEED for Schools and Collaborative for High-Performance Schools (CHPS) programs. He has managed complex school funding and approval processes through DSA, CDE, and OPSC. He is knowledgeable regarding utility programs for high efficiency and renewable energy measures for major investor-owned utilities, and municipal utility districts throughout California.

Renee Goodwin, Operations Manager
Renee is a highly motivated and dedicated operations manager offering 30+ years of construction management and business development experience. She is a versatile professional recognized for having exceptional organizational, planning, leadership and communication skills. Renee is adept at maintaining program budgets while enforcing construction guidelines and complying with regulations.

Mark McWhirter, Senior Energy Engineer
Mark McWhirter is a seasoned Sr. Staff Energy Engineer with extensive expertise in energy auditing, modeling, and project development across public, private, and military sectors. Holding a specialized Energy Systems Engineering degree and a PE license in Oregon, he has led multimillion-dollar energy efficiency initiatives for institutions such as Johnson Controls, Oklahoma Gas & Electric, the U.S. Air Force at Tinker AFB, and the University of Oklahoma. His work spans mechanical design, onsite supervision, and strategic energy management, including federal compliance, renewable integration, and performance contracting. Notably, he achieved $2.6 million in energy savings at Tinker RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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AFB and spearheaded Arizona’s first web-based energy tracking systems. His portfolio includes HVAC upgrades, lighting retrofits, water conservation, and infrastructure modernization, demonstrating a career defined by technical excellence, leadership, and impactful sustainability outcomes.

Ricky Nelson, Senior Project Manager
Ricky serves as a subject matter expert and senior project manager, responsible for handling all aspects of turnkey construction from estimating, development, and project management to customer satisfaction and billing. Ricky is well-known and respected in the industry, with more than 38 years of experience at a senior project manager level or higher. He routinely works with state and local jurisdictions, DSA, DGS, FMD, PG&E, SCE, DWP, SMUD, AT&T, Sprint, T-Mobile, Public Works Departments, U.S. Army Corps of Engineers, Port of Los Angeles, Port of Oakland, and State of California EPA.

Marcus Lee, Performance Specialist
During project design, Marcus offers guidance in developing the measurement and verification plan for the customer’s project. As construction ends, he participates in transition meetings to properly document the start of the performance period. For the reminder of the contract term, he provides performance monitoring and optimization (continuous commissioning). Using our standard tools, Marcus identifies and calculates baseline adjustments, such as building use changes or equipment additions or subtractions. Marcus also consults with customers, preparing them for potential budget impacts. He researches problems that might cause additional usage by monitoring data, inspects facility systems and equipment, and gathers information from on-site service providers and maintenance staff. Marcus initiates immediate corrective action, when necessary, which includes notifying our customers as to what is needed to ensure efficient building performance. He also conducts ongoing staff training on newly installed equipment. Marcus drafts annual performance reports with field collected measurement and analysis to communicate the amount of energy saved for the customer. He analyzes current systems and operating procedures and makes recommendations for improvements to optimize energy and operational usage with the goal of minimizing customer costs.

SOLAR TEAM
Walt Novash, Solar Program Manager
Walt has over 15 years of industry experience and is responsible for the design of conceptual solutions for our advanced solutions and solar projects. He leads and manages the development of projects requiring additional engineering resources to efficiently and cost-effectively deliver projects from inception to close. Walt’s areas of RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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expertise include photovoltaic system electrical design, array layout, output modeling, cost estimation, data monitoring, and commissioning. He has successfully delivered solar projects for a variety of customers, including many Federal projects.

Mykel LaVarnway, Solar Development Engineer and Senior Project Engineer Mykel LaVarnway is a seasoned Solar Development Engineer and Senior Project Engineer with 17 years of industry experience, including 12 years at Johnson Controls. He specializes in the full lifecycle design of photovoltaic solar systems, from residential installations to utility-scale deployments, with a primary focus on institutional clients across the North and Northeast United States. Mykel’s expertise spans electrical engineering, project management, procurement, and operations for solar PV systems serving commercial, municipal, educational, and government sectors. He holds a Bachelor of Science in Electrical Engineering from Clarkson University and maintains OSHA 30 certification. His career includes roles at Entech Solar, AES Northeast, and TRC Solutions prior to joining Johnson Controls in 2011. Mykel has led or contributed to numerous high-impact solar projects, including the 11.5 MW PA Solar Project in Nesquehoning, the 2.3 MW Chelmsford Schools project in Massachusetts, and installations at Ft. Bliss, Ft. Buchanan, and multiple school districts across California, New Jersey, and Maryland. His technical leadership ensures reliable, code-compliant solar solutions tailored to each client’s energy goals.

Amma Butt, Electrical Engineer, Microgrid Specialist
Amna Butt is a seasoned Electrical and Energy Engineer with over a decade of experience in renewable energy solutions, generator technology, and zero-net-energy building design. Her expertise spans utility interconnection, protection and control systems, and electrical system design across high, medium, and low voltage applications. Amna plays a key role in the development of EPC, PPA, and P3 projects, with a focus on utility-scale solar, battery energy storage systems (BESS), and the electrification of Central Utility Plants. She brings deep technical insight to project teams, supporting the design of advanced energy solutions.

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WATER TEAM
Christopher Downs, Account Executive
Chris brings more than 25 years of experience partnering with municipalities to identify and execute utility savings opportunities. He has successfully implemented more than $200 million in performance contracting projects from concept to completion with cities that include Indianapolis, Louisville, Anderson, South Bend, and Evansville. Chris has also secured additional grant funds ($6.5 million for Harrodsburg, KY), utility rebates ($128,000 for Louisville, KY) and ARRA Division B energy conservation bonds ($7.3 million for Louisville, KY). His responsibilities have evolved to fulfilling the role of lead developer for smart, sustainable and connected communities.

Mandy Sheposh, PE, BCEE, Business Development Leader – Wastewater and Renewable Energy
Mandy Sheposh is a Business Development Leader at Johnson Controls specializing in wastewater and renewable energy projects, with a focus on biogas, biosolids, and energy efficiency. With a strong background in wastewater facility master planning, detailed design, and post-construction optimization, Mandy brings deep technical and strategic expertise to municipal infrastructure modernization. She currently serves as a Delegate at Large for the Water Environment Federation (2021–2024), representing utilities and communities advancing climate and decarbonization goals. Recognized as the Outstanding Young Professional of the Year in 2012 by both the Water Environment Federation and the Central States Water Environment Association, Mandy continues to lead impactful projects. Her portfolio includes the award-winning $6M Phase 2 Combined Heat and Power Improvements at Downers Grove Sanitary District, where she designed digester gas-to-energy infrastructure to make the facility net energy producing. She also led the development of a $14.8M performance contract for the City of Rock Island’s wastewater treatment upgrades and served as project engineer for the Village of Mundelein’s energy efficiency improvements across water and wastewater facilities.

Mandy holds an MS in Environmental Engineering and a BS in Civil Engineering from the University of Illinois at Urbana-Champaign and is both a licensed Professional Engineer and a Board-Certified Environmental Engineer.

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Subcontractors
The table below shows the services we typically perform and those performed by subcontractors. While we have the necessary expertise to manage almost all aspects of a project, we often choose to hire subcontractors for specific tasks to tap into their specialized knowledge and experience, particularly when it comes to facilities with which they have long-standing familiarity. As the general contractor, Johnson Controls assumes complete responsibility for the work performed by our subcontractors.

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5. References
The contractor shall provide a minimum of 4 client references, preferable city or county governments for whom the contractor has previously had contracts with for provision of services of equal type and scope within the last 5 years.

Client Contact:

Craig Beck, Director of Public Works
(562) 570-6383
[email protected]
Long Beach Courthouse
For this $300 million project with the Long Beach
Courthouse, through the Administrative Office of
the Courts of the State of California, Johnson
Controls was part of a consortium to design-buildfinance and maintain this 531,000 sq. ft. facility. The facility includes 31 courtrooms with holding cells
and interview rooms as well as court and county
offices, commercial and retail space. The building
has been operational since 2013 and we have a 35-
year concession agreement with the customer.

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Client Contact:

Daniel Feitelberg, Principal,
Infrastructure Advisory KPMG LLC
(Former Senior Advisor of the
Chancellor)
(415) 963-8650
[email protected]
University of California – Merced
Campus Expansion and
Redevelopment (P3)
Johnson Controls is a key partner in the University
of California – Merced 2020 Project, a
transformative $1.3 billion campus expansion
spanning 1.2 million gross square feet across 219
acres. As the first multi-building development in
UC history to be executed by a single private
team, the project includes new academic facilities,
research labs, faculty offices, 1,700 student
housing beds, and a wide range of student life
amenities such as a wellness center, NCAA-II-level
pool, and athletic courts. Designed for long-term
adaptability and sustainability, the campus aims
to achieve triple net zero goals. Johnson Controls
is responsible for delivering all operations and
maintenance (O&M), lifecycle, and energy
management services under a 30-year contract,
guaranteeing both initial and ongoing
operational and financial performance. Services
include general management, utility and plant
operations, environmental oversight, tenant
support, housekeeping, grounds maintenance,
lifecycle refurbishment, and security system
management.

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Client Contact:

Craig Beck, Director of Public Works
(562) 570-6383
[email protected]
City of Long Beach, CA
The City of Long Beach evaluated various options
and decided to build a new consolidated civic
facility through a Private-Partner Partnership (P3)
under a Design, Build, Finance, Operate and
Maintain (DBFOM) model. The Long Beach Civic
Center (LBCC) project includes the creation of a
New City Hall, Main Library and Port of Long Beach
Headquarters, as well as a revitalized Lincoln Park
and parking facilities. The project also includes
complementary private development in downtown
Long Beach. The project is the first hybrid DBFOM
deal in North America combining both public
infrastructure and private development
components within a single project. This hybrid
approach enabled the City to achieve its
affordability targets and also allowed the Plenaryled consortium to deliver a vibrant masterplan combining civil, commercial and residential
elements in a cohesive manner which will revitalize
the entire downtown area.

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Client Contact:

Tim Flood
(760) 757-2121
[email protected]
MiraCosta Community College
Johnson Controls provided a turnkey 3 MW solar
energy solution across three campuses for
MiraCosta Community College, including
preventative maintenance and panel cleaning
services. The project was strategically structured
to qualify under NEM 2.0, ensuring the college
received the maximum available Investment Tax
Credit (ITC).

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Client Contact:

Guadalupe Nodal
(510) 208-9871
guadalupe@[email protected]
Alameda County
Johnson Controls is currently delivering a $115
million electrification and infrastructure
modernization initiative for Alameda County,
spanning a wide range of county properties. The
scope includes HVAC upgrades, solar installations,
battery storage, microgrid development,
advanced lighting systems, and integrated
controls. This comprehensive effort also involves
detailed cash flow modeling and carbon offset
strategies, tailored to multiple improvement
measures across sites. The contract began in 2024
and remains ongoing, reflecting a long-term
partnership focused on sustainability, operational
efficiency, and financial performance.

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Client Contact: Not available
Atascadero State Hospital
Johnson Controls partnered with Atascadero State
Hospital under a $26 million Energy Savings
Performance Contract to deliver critical
infrastructure upgrades aimed at improving
energy efficiency, indoor air quality, and longterm operational reliability. The scope of work includes replacement of aging HVAC systems,
mechanical equipment, and a comprehensive
reroofing effort covering approximately 11 acres.

Construction is planned for completion in 2024.

This initiative reflects Johnson Controls’ deep
experience in healthcare environments and our
ability to deliver turnkey solutions that meet
stringent regulatory standards while generating
measurable financial and environmental benefits.

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6. Litigation Disclosure
Describe any involvement as a party in any formal litigation, arbitration or mediation associated with savings performance on an energy savings contract or specifically related to an Investment Grade Audit (IGA) agreement in the last five years under any previous or current firm names, along with a description of the nature and outcome of such litigation.

Johnson Controls, Inc., confirms that it has not been involved in any formal litigation, arbitration, or mediation associated with savings performance on an energy savings contract or specifically related to an Investment Grade Audit (IGA) agreement within the past five years under its current or any previous firm names.

As a global leader in energy performance contracting, Johnson Controls maintains rigorous internal standards for project delivery, savings verification, and client satisfaction. Our performance guarantees are backed by transparent methodologies and industry-standard protocols such as the International Performance Measurement and Verification Protocol (IPMVP). In the rare event of a dispute, our approach emphasizes early resolution through collaboration and accountability, which has helped us avoid formal proceedings related to savings performance.

This record reflects our commitment to delivering reliable, measurable results and maintaining long-term partnerships with public sector clients.

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7. Media Attachments
CDs or DVDs shall be provided within a storage page at the end of the document or within a storage pockets attached to the interior of the last page of the document with the contents of the CD or DVD clearly labeled.

Documents within the CD or DVD shall be in .docx or .pdf format.

Johnson Controls, Inc. confirms that all supplemental materials referenced in this proposal, including project case studies, technical documentation, and company qualifications—are available both on our website and within the enclosed proposal. We have included a sample contract, investment grade audit, project installation, measurement & verification (M&V) including terms and conditions and acknowledge form is located in the Appendix section.

Additional information about Johnson Controls’ capabilities, certifications, and public sector experience can also be found at: www.johnsoncontrols.com.

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8. Funding Sources
Describe the respondent’s experience with obtaining funding for California public agency infrastructure needs and sustainability programs. Please describe specific funding sources that the respondent has facilitated and successfully obtained including any funding solutions or approaches which may be unique or exclusive to the respondent.

Johnson Controls has a robust history of facilitating and securing funding for infrastructure modernization and sustainability initiatives across California’s public sector. With deep expertise in energy performance contracting, grant navigation, and strategic financing, Johnson Controls has helped agencies unlock millions in funding to advance climate goals, improve operational efficiency, and enhance community resilience.

Financing
Our Structured Finance department, through our captive finance company Johnson Controls Capital LLC (JC Capital), is dedicated to identifying customized financing options for clients. We can provide general information relating to all available financing options to assist with your analysis of each
financing option. Johnson
Controls can also provide detailed
and project- specific factual
information on contingent
payment, leases, and grants and
incentives.

In providing you such
information, you should
understand that we are not
recommending a course of action
on any of the financing options,
nor are we acting as an advisor to
you. Johnson Controls is not
registered as a municipal advisor
with the Securities and Exchange
Commission pursuant to Section
15B of the Securities Exchange
Act of 1934.

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Procurement Methods
Our outcome-based solutions help our clients achieve their facility and infrastructure goals and objectives, so they can focus on their core mission. The graphic on the right shows a number of procurement models Johnson Controls offers and has executed within the building market.

Contracting Vehicles
 ESC | Energy Services Contracts
 Provincial Legislation-Driven PC | Energy
 Savings Performance Contract
 UESC Federal | Utility Energy Savings Contract
 PPAs | Power Purchase Agreements
 Concession Models
 Contingent Payment Program/IaaS |
 Infrastructure as a Service
 Net Zero as a Service | Decarbonization goals with risk transfer  BaaS/DBFOM | Building as a Service, Public-Private Partnership (Design Build Finance Operate Maintain) with risk transfer
Client Problems Solved
 Net Zero, decarbonization, sustainability
 Infrastructure modernization/replacement
 Risk transfer
 Energy resiliency, disaster preparedness
 Reduce operational costs, carbon footprint
 Address deferred maintenance
 Privilege of focus on their core mission
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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Financing Options
Johnson Controls has provided structured financing for thousands of clients. We recently financed more than $200 million in energy projects in one year alone. We work with more than 20 lenders, grant and rebate administrators, and finance experts every day, negotiating on behalf of our clients and helping to structure funding in the best way possible.

Our Structured Finance Team responds to the special characteristics of each project to identify customized financing options. It is important to note that Johnson Controls does not make any money on financing. We arrange financing purely to assist our clients. The following information summarizes finance options.

Johnson Controls’ Exclusive Contingent Payment Program
Johnson Controls understands
that the City may prefer not to
borrow money from a bank or
issue bonds to purchase
infrastructure improvements.

With that in mind, we offer our
Johnson Controls Contingent
Payment Program, which allows
clients to avoid an unconditional
debt service obligation. The
Contingent Payment Program
was created by Johnson Controls
to give clients an alternative to
traditional debt financing.

The program offers the following benefits:
 The City pays nothing during installation.
 Payments during the performance period equal savings generated by energy improvements.
 The City will pay less than expected if a performance short fall occurs.

In the Contingent Payment Program, the City would not borrow money from a bank or issue bonds. Instead, Johnson Controls would fund the cost of the project and would allow the City to pay for the project overtime. Calexico would not make any payments to Johnson Controls until after project installation. Once we complete the installation, the City will make scheduled quarterly payments to Johnson Controls equal to the amount of benefits that the project is expected to deliver. Many clients choose to pay for those benefits from their utility budget. And decrease in utility costs provides funding to pay for energy savings. The City does not have an unconditional debt service obligation to Johnson Controls. Instead, the amount the City pays is contingent upon Johnson Controls’ delivery of savings. If we do not produce the savings as expected, the City can RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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withhold the shortfall amount from your next payment. This variable structure based on performance creates a maximum payment amount that could be due, but no minimum. This means our cost recovery is capped and could be lower than expected.

Johnson Controls bears the risk if we fail to deliver the benefits, and the City can consequently pay less than expected. We can also offer terms that are typically longer than what most banks allow.

The most common form of financing is a lease-purchase agreement typically secured through a Tax-Exempt Lease Purchase. In these arrangements, the City (as lessee) enters into a transaction with a financial intuition (the lessor). According to the Association for Government Leasing & Finance, one of the most valuable attributes of a lease-purchase is that it enables clients to fi nance projects without incurring a “debt” or an “indebtedness” that is subject to voter approval and debt limitations. The most frequently used covenant is the non-appropriation clause. The documents are drafted so that the lessee may elect to not renew its obligation at the end of the current fiscal period. If the lease payments are paid from the current fiscal period’s revenues and the lessee has no obligation beyond the current fiscal period, the lease-purchase is not considered debt under the laws of most states.

The lease-purchase will contain an original term equal to one fiscal period and option renewal terms for each subsequent fiscal
period of and when the lease-purchase is
appropriated. If a lessee doesn’t appropriate
rental payments for a succeeding fiscal
period, the lease-purchase was not renewed
and it automatically terminates. This is not a
default. The lessee has simply exercised its
contractual right under the lease-purchase.

The risk is born by the lessor. It should be
noted that credit rating agencies, like S&P and
Moody’s, negatively view an act of noappropriation.

In most transactions, the lessee has a
purchase option to pay off the lease-purchase
early and acquire the equipment. To secure
the payment of the lessee’s obligations, the
lessor retains a security interest constituting a
first lien on the equipment. During the lease
term, title resides with the lessee. However, if the lease-purchase is terminated early for reasons other than exercise of the purchase option, title automatically transfers back to the lessor. There are a wide number of banks and leasing companies that participate in the lease-purchase market. That broad supply of capital ensures competitive pricing. The closing cost for a lease-purchase is also relatively low which often makes it an efficient financing vehicle for projects under $25 million. Amortization schedules can be “sculpted” to match the savings from a performance contract and there are no minimum RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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principal payment denominations. The time needed to close is also relatively short (approximately 30 days).

Bonds
Many counties have a master indenture for bond issuance to finance their capital improvements. The same vehicle can be used to fund energy savings projects. The City may choose to issue bonds solely for a specific Johnson Controls project, or for a larger capital improvement plan that rolls into the performance contract. For larger transactions, the capital market is an excellent funding source for credit-worthy borrowers that require a broader pool of investors or more financial flexibility. In addition, bonds typically have the lowest cost of capital, which enables clients to maximize their energy savings projects.

We cannot provide recommendations on a bond issuance. However, we can provide indepth detail on the project to enable the City and your advisors and underwriters to structure a bond issuance in a way that best services the needs of the City.

Energy as a Service
Energy as a Service (EaaS) represents a business model whereby the City would enter into a service contract, which would include a defined scope of services, future O&M, future life cycle and energy cost, and potentially other capital requirements such as new efficient building technologies, central plant upgrades and measures to meet the City’s carbon reduction goals. The tally of these costs and improvements would be financed, which will be paid back monthly in fixed guaranteed payments based on the availability of services. Under this model, proponents would use a number of practices to enhance and minimize the use of capital by creating O&M and energy savings through proven contracting methods such as the following opportunities:
 BOOM (Build, Own, Operate, Maintain)
 Energy Savings Performance Contracts (ESPC)
 Power Purchase Agreements (PPA)
 Pay for Performance Contracts
 On Bill Financing Solutions
With the above in mind, Johnson Controls can customize a model that best supports the goals and objectives of the City. We have the experience to utilize the various contracting methods mentioned to develop an EaaS approach that will provide long-term cost certainty, asset renewal and improved service delivery.

Infrastructure as a Service
Our Infrastructure as a Service (IaaS) program is one way public entities can redirect operating expenses into capital improvements without diminishing their borrowing capacity or cash reserves. Under this program, the City would make no upfront capital investment.

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Together with our funding partners, Johnson Controls would pay for the cost to engineer and install improvements that optimize the utility, operational, and capital costs for the energy infrastructure (and for that matter, any other building technology).

Once installed, the City would pay for the benefits that it receives over the contract term.

Infrastructure as a Service is a “pay for performance” program. A key difference is the inclusion of maintenance and lifecycle replacement throughout the term of the agreement. Johnson Controls will refurbish and repair all equipment throughout the agreement but will not ask the City for more funds.

You get the benefit of new infrastructure without the burden of ownership. We pay all O&M costs during the contract term. At the end of the term, the City can choose to either extend the service contract or purchase the improvements for fair market value. The City also has contractual hand back provisions at the end of the agreement so that Johnson Controls honors our Facility Condition Index (FCI) at end of term. IaaS clients have strong credit ratings and can afford to traditionally fi nance the projects but consider the packaging of maintenance, lifecycle and FCI on a per unit basis a set-it-and-forget-it model.

Power Purchase Agreement
Through third-party ownership, a Power Purchase Agreement (PPA), provides clients the ability to purchase electricity generated by on-site renewable energy systems for a period of 15 to 25 years. This method is advantageous because no upfront funding is required, the client is not responsible for operations and maintenance of the systems, and it allows for predetermined electricity pricing. A PPA can also leverage federal and state tax incentives not available to some clients. Under this program, the City would make no upfront capital investment. Together, again with our funding partners, Johnson Controls would pay for the cost to engineer and install the solar arrays. Once the project is completed, the City would pay for the benefits that it receives over the contract term through a program that offers off-balance sheet financial treatment. This program is a “pay for performance” program, where the City only pays for the energy and/or resiliency benefits realized, should the City want to further consider energy storage as part of the program. The City again gets the benefit of new infrastructure without the burden of ownership. Johnson Controls covers the operational and maintenance costs during the contract term. At the end of the term, the City can choose to either extend the service contract or purchase the improvements for fair market value (FMV). Based on IRS law, a FMV buyout at a selected year of ownership is required to monetize the tax credit in a PPA.

Rebates, Incentives, Grants & Tax Credits
We have an in-house Alternative Funding Department that has secured $433 million in grants with an 80%-win rate. This team is responsible for identifying, applying for, and winning rebates, incentives, grants, and tax credits available for the work. They have one goal: to find money for you. As stated in our method to perform the work, we intend to RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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engage SDGE, SDCP, and any third-party utility program implementers early in the project development process to identify rebates and incentives and to make sure that any activities required to secure the funds are not overlooked. We would also collaborate with the City to identify qualified grant opportunities (CEC research grants of pilot tech grants), facilitate, and develop applications, and provide support to help manage reporting and compliance requirements. This would include any CEC loans and On-Bill Finance programs. Two local examples follows:
 University of California San Diego – $39 million to develop a microgrid research facility.
 City of Chula Vista - $17 million in Clean Renewable Energy Bonds (CREBs) authorization.
 MiraCosta Community College- $5 million in Investment Tax Credit, Direct Pay for Solar
This team is also responsible for monitoring programs and funding flows associated with the Inflation Reduction Act and other federal programs:

1. Tax Credit Identification: we conduct a thorough assessment of a project to identify the applicable credits, deductions, accelerated depreciation, etc. This includes funding through programs administered by the CEC and downstream agencies.

2. Documentation and Compliance: We assist in gathering the necessary data, completing the required paperwork, and ensuring compliance with all regulations and guidelines.

3. Application and Submission: We’ll handle the entire application and submission process on your behalf, leveraging our knowledge and experience to streamline the procedure. Our team will ensure that all deadlines are met and that your claims are accurately presented to the appropriate authorities.

4. Ongoing Support: We’ll stay engaged throughout the process, addressing any inquiries or requests for additional information from the tax authorities and keeping you informed about the progress of your applications. Our team will also stay updated on new opportunities or changes in tax policies that may benefit your project in the future.

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9. Savings
Describe the respondent’s approach to projecting and proving utility savings. Describe the methodology and formulas utilized for reporting of the savings. Provide a description of monitoring services after implementation. List any projects/customers in which the guaranteed savings was not met and how each was resolved.

Our Assured Performance Guarantee works in a straightforward manner. If the utility and operational savings are less than the guaranteed amount, we will pay the shortfall. The guarantee is monitored monthly, quarterly, or semi-annually and is reconciled annually.

The Assured Performance Guarantee is not a third-party insurance policy. Johnson Controls is directly accountable for the financial risk. In any event, the project will pay for itself over time from utility and operational savings.

Our performance assurance engineers are responsible for monitoring and reporting the savings. The nature of our guarantee is defined in the following development, tracking and reconciliation process:
 Johnson Controls guarantees in writing the savings amount in an exhibit included in the contract. Our performance assurance engineers will be onsite to work with your staff at each facility to ensure the project goals are met.  At the onset of construction, Johnson Controls will begin monitoring and reporting the savings performance of the program and will continue to do so for the duration of the guaranteed contract. At the same time, Johnson Controls will suggest and implement enhancements to the operation of the facilities to fine-tune the overall performance.
 On an annual basis, we will collate the information and reconcile the guarantee if need be. If the dollar savings are equal to or greater than the guarantee amount, the City receives all of the excess benefit. If there is a shortfall, Johnson Controls will compensate the City for the difference.
 The annual tracking and reconciliation process is repeated each year throughout the term of the agreement.

This figure shows how we
calculate energy savings,
dollar savings, and excess
savings. Any excess
savings that are beyond
those used for project
justification are applied to
the bottom line for the City
(kept and used for other
priority needs). As an
example, if Johnson
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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Controls is conservative in estimating the actual savings in an energy conservation measure that is then documented with IPMVP Option B protocol (all parameter measurement), additional savings will be measured and documented but will not be collected by Johnson Controls. The City will have thorough documentation of the additional savings in the annual report.

Johnson Controls has the experience and the assets to provide a true performance guarantee. We employ a proven process for definition, measurement, tracking and reconciliation of such a contract. Johnson Controls assumes the risk; we do not “sell” the risk to an outside insurance provider. Therefore, we maintain a stake in the overall performance of the project.

Johnson Controls projects utility savings using a rigorous, data-driven methodology grounded in industry standards, and supports it with robust post-installation monitoring and transparent resolution practices.

Johnson Controls employs a comprehensive approach to projecting and verifying utility savings through its Energy Savings Performance Contracting (ESPC) program. Savings are projected using detailed engineering analyses and building energy modeling, often leveraging historical utility data, weather normalization, and load profiles. These projections are benchmarked against a theoretical baseline—what energy consumption would have been without the implemented measures—adjusted for external factors such as occupancy changes, weather variations, and equipment downtime.

To prove savings, Johnson Controls follows the International Performance Measurement and Verification Protocol (IPMVP), typically using Option C (Whole Building Analysis) or Option B (Retrofit Isolation with All Parameter Measurement) depending on project complexity. The formulas used include:
 Baseline Energy Use (BEU) = Historical consumption adjusted for normalized conditions
 Post-Implementation Use (PIU) = Actual metered consumption after ECMs  Verified Savings (VS) = BEU − PIU
After implementation, Johnson Controls provides ongoing monitoring services that include real-time data collection, performance dashboards, fault detection diagnostics, and periodic M&V reports. Their Central Utility Plant Optimization software tracks deviations from expected performance and flags anomalies, ensuring transparency and accountability throughout the contract term.

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In rare cases where guaranteed savings were not met, Johnson Controls has resolved issues through collaborative root-cause analysis and corrective actions. These may include recalibrating systems, modifying operational strategies, or adjusting baseline assumptions. While specific customer names are not publicly disclosed, Johnson Controls has a documented history of resolving such discrepancies through contractually defined reconciliation processes, maintaining client trust and long-term partnerships.

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10. Contracts, Forms and Pricing
Provide sample contracts for an investment grade audit, project installation, Measurement & Verification (M&V) including terms and conditions. Complete and include enclosed pricing proposal and acknowledgement form. If activity levels exceed those described, then the firm may be entitled to additional compensation on a pro-rated basis. Hourly rates for such work must be included in the proposal.

A comprehensive set of sample contracts is included in the appendix section, covering the Investment Grade Audit (IGA), project installation, and Measurement & Verification (M&V) phases. Each contract outlines scope of work, deliverables, and standard terms and conditions such as payment schedules, insurance requirements, dispute resolution, and performance guarantees. The completed pricing proposal and acknowledgement form are also enclosed. In accordance with the stated terms, if activity levels exceed those described in the scope, the firm may be entitled to additional compensation on a prorated basis. To support this, a schedule of hourly rates for supplemental services is provided within the pricing proposal.
“Before our project with Johnson Controls, the City had not identified our greatest areas of need. The Johnson Controls team provided a holistic approach, identified and selected infrastructure improvements, and provided an implementation plan that was well thought out and prioritized with the City goal planning session. More importantly, Johnson Controls has assisted the City with the design and installation of facility infrastructure projects without raising rates or taxes using a revenue guarantee that we have vetted through a 3rd party City Financial Advisor. Johnson Controls identified and secured $3,860,000 of funding through a combination of the California Energy Commission and the State Revolving Fund. In addition, the City is working with the State Water Resource board on finalizing a $1,650,000 of grant funding for renewable technology at the Wastewater Treatment Plant.

Without the hard work of Johnson Controls’ staff, this could not have been accomplished. Of the other ESCO’s that we vetted, Johnson Controls stood out as the best choice and their performance has proven that repeatedly.”
– Cleve Morris, City Manager, City of Placerville, CA
RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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11. Additional Information
Provide any additional information you believe will be helpful to assist in the review of your proposal. Include any attachments, exhibits, or reports which may help us gain an understanding of your firm’s ability to provide this service to the City of Calexico.

Why Partner with Johnson Controls?
Johnson Controls has been working in the State of California since 1897, and we understand the unique challenges of the Calexico region. Some key differentiators of Johnson Controls to consider are:
 Strong References: Working together with Cities is a specialty of our firm. We have successfully implemented complex energy-based construction projects in mechanical, fire prevention, building controls and renewable energy generation projects while delivering technically innovative solutions on time and on budget.

We bring an unparalleled track record of working with Cities and Municipal clients across North America. The City of Calexico can trust the Johnson Controls team to deliver the most successful energy services project.  Excellent Safety Record: Johnson Controls maintains an industry-leading safety record and is deeply committed to ensuring safe conditions for all personnel on every job site. All project and construction teams are certified under the Occupational Health and Safety Act (OSHA), and the company’s State experience modification rate stands at an exceptionally low 0.54, compared to the industry average of 1.0. This reflects Johnson Controls’ proactive safety culture and rigorous adherence to best practices. The City of Calexico can be confident that Johnson Controls will prioritize the health and safety of all individuals working on or around the project throughout its duration.
 We Manufacture and Independently Distribute: Johnson Controls is a company founded on innovation. In our 140-year history, we have created the original building controls, designed and manufactured industry leading fire and life safety systems. We manufacture a wide array of building systems and equipment under several brand names, including Simplex Grinnell fire protection systems, York heating and air conditioning equipment, Johnson Controls building controls, and Tyco security equipment. The City of Calexico will benefit from Johnson Controls knowledge of how products and technology are best applied to deliver the greatest energy savings.
 NAESCO Accreditation: Johnson Controls has earned the highest accreditation of the National Association of Energy Services Companies (NAESCO) and has been a member in good standing since 1997. As a NAESCO Certified Energy Service Provider, our financial capabilities and reserves and our ethical, transparent operations have been reviewed by a third party for compliance with the standards of the industry. This gives the City confidence knowing that Johnson Controls RFP – NO. 2025-700 CITY OF CALEXICO INFRASTRUCTURE MODERNIZATION AND UTILITY SAVINGS PROGRAM Request for Proposals No. 2025-700 City of Calexico Infrastructure Modernization and Utility Savings Program © 2025, Johnson Controls. Confidential – Contains Customer Information

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has been independently verified to deliver the guaranteed contractual commitments.
 The City of Calexico choses the program: Johnson Controls will identify, design and engineer energy-saving solutions that are potentially achievable, in collaboration with the City. The actual construction components of the program remain the City’s decision to select, based upon the factors deemed most appropriate for the needs of the City. Johnson Controls will act as a true partner to help the City accomplish its goals at the direction of the City.

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E. Appendix
 Pricing Proposal
 Investment Grade Audit Sample
 Certificate of Insurance System-wide Building Management Systems Contract Page | 12
Request for Proposals No. 2025-700 – City of Calexico Infrastructure Modernization and Utility Savings Program Proposal Due Date: November 12, 2025

Name of Respondent: _____________________________________________________ INVESTMENT GRADE AUDIT (IGA):

YES NO N/A
What is the respondent’s price to complete an IGA?
$___________________per square foot
IMPLEMENTATION:

What is the respondent’s profit fee for program implementation? Overhead % ____________________
Profit % _______________________
□ □
□ □ □
Johnson Controls, Inc.

California Small Building Program
Department of Developmental Services Loan Application
© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Table of Contents
Executive Summary
Energy Conservation Measure Summary
Tab 1 Developmental Centers and ECM Descriptions

FAIRVIEW DEVELOPMENTAL CENTER

PORTERVILLE DEVELOPMENTAL CENTER

SONOMA DEVELOPMENTAL CENTER
Tab 2 Measurement and Verification
Detailed Description of Measurement & Verification Activities and Deliverables Measurement & Verification Overview
ECM 1 - Lighting
ECM 2 – HVAC Replacement Equipment or HVAC VAV Conversion and Updated Controls ECM 3 – Boiler SCR Installation
Reports and Site Visits
Tab 3 Investor Owned Utility/Municipal Utility Incentives Tab 4 Fairview
Tab 5 Porterville
Tab 6 Sonoma
August 3, 2010
Subject: California Small Building Program
California Department of Developmental Services Loan Application On behalf of Johnson Controls and our 19 California branch offices and 2,750 employees supporting the State, we would like to thank the Department of Developmental Services (DDS) for the opportunity to implement energy conservation measures (ECMs) in three of your developmental centers through the State of California Small Building Energy Efficiency Program.

In December of 2004, Governor Schwarzenegger signed Executive Order S-20-04 to establish guidelines for the State to retrofit, build, and operate the most energy and resource efficient buildings possible. Among other measures, the governor called upon the State to reduce its consumption of energy off the electrical grid by 20% by the year 2015. This reduction in energy usage is to be achieved through an 8% savings from the retro-commissioning of State facilities and a 12% savings from the implementation of operational cost reduction measures.

All in all, we applaud and stand behind the direction set by Governor Arnold Schwarzenegger as you continue your efforts to GREEN our Golden State. Both Executive Order S-20-04, which establishes guidelines for the State to retrofit, build, and operate the most energy and resource efficient buildings possible, and the Governor calling upon the State to reduce its consumption of energy off the electrical grid by 20% by the year 2015 are clear indicators of the State’s commitment. Furthermore, we appreciate DDS’s leadership in this important project during times of rising utility costs, operating costs and global warming conditions, and see this as an example to other agencies and testimony to your taxpayer constituency that the State of California is serious about energy conservation and optimizing the use of the State Energy Program American Recovery and Reinvestment Act of 2009 (SEP ARRA) funds and valuable resources.

Johnson Controls is enthusiastic about working with the DDS and your centers on energy savings performance contracting (ESPC) projects. Our commitment began during our first meeting with your staff to determine those sites you wished us to focus on. From there the Johnson Controls development engineers, with the cooperation and support of your team, have created an energy efficiency project to retrofit 3 of your centers, discussed in detail in this document. This energy project after incentives equals $6,426,483 in cost and will save the DDS and state of California $825,884 annually by providing the greatest possible energy, operations and maintenance savings/reductions. Annual energy saving of 5,332,559 kWhs will be achieved thru the implementation of the Energy Conservations Measures (ECMs) proposed in this project. We have also identified Utility Incentives for the proposed ECMs in the amount of $906,941 which further help in fostering the project implementation. The simple aggregated payback for all measures is 7.8 years.

We intend to leverage our extensive local resources and ESPC experience to vigorously support the DDS at your participating centers. Additionally, we recognize the importance of this project to the DDS and realize that success is the only option. We know that the success of this project and all other projects is dependent upon the availability of highly qualified, capable, expert resources from day one.

The same resources – the Johnson Controls core team – who participated in DDS’s center walkthroughs, supplemented by other local subject matter experts, have designed and developed this project. A “seamless” knowledgeable project team dedicated to meeting and exceeding your requirements is our commitment to DDS. The attached response will provide you with the breakdown of the ECMs that we plan on implementing at each of your centers along with the savings data. Please recognize that some measures have longer payback periods but also realize these measures are highly recommended for implementation by those Johnson Controls engineers who performed the detailed audits and analysis of your centers.

From this project’s inception Johnson Controls has made it abundantly clear that we are not merely interested in solely performing lighting and controls retrofits at your centers. Yes, this would satisfy your employees relative to lighting but what about the other elements that makes up an employee’s comfort such as air quality. Hence you will see some of the mechanical measures having longer paybacks. In the true spirit of an ESPC and in support of the intent of using ARRA funds to facilitate thoughtful and thorough building retrofits while also generating jobs we are utilizing an industry standard called ‘bundling.’ This approach allows for the inclusion of both quick payback and longer payback items thus affording the DDS with a project you can be proud of and one that certainly will address many of your energy needs for years to come while returning an overall payback of 7.8 years.

Johnson Controls has organized this document taking in to consideration the various levels of individuals reviewing it. Immediately following this executive summary are the ECM Project Description and ECM Project Cost tables, which are segregated by utility provider. Additionally you will find a developmental center description of each DDS site being retrofitted in tab 1. This easy to read and follow document will provide you details about each specific center as well as the ECMs, including their description, we recommend implementing. Immediately following this, in tab 2 we have included a detailed description of our Measurement and Verification (M&V) activities and deliverables. Tab 3 contains a spreadsheet on the Investor Owned Utility/Municipal Utility Incentives. And for those wishing to dig deeper we also have included in tabs 4 thru 6, our eQuest modeling information, lighting counts and totals, etc. eQuest is a HVAC computer energy usage simulation model.

Three other items of importance are:
1) Johnson Controls beyond the measures outlined in this document also intends to ensure all DDS vending machines are equipped with energy efficiency controls. The installation of vending machine controls reduces the electricity consumption by powering down a vending machine when the area surrounding it is unoccupied and automatically repowers the vending machine when the area is reoccupied. The vending machine controls’ intelligent controller uses fuzzy logic to learn from the habits of the building occupants, and modifies the time-out period accordingly. The vending machine control automatically powers up the vending machine at appropriate intervals, independent of occupancy to ensure that the vended product stays cold. 2) In DDS sites within the PG&E, SCE & SDG&E utility territory Johnson Controls will be implementing a comprehensive diagnostic tune-up program (through the utility-sponsored Roof Top Unit Tune-Up Program) focused on optimizing performance for HVAC packaged units and split systems. This program’s benefits include increasing equipment performance and longevity, reducing the impact on the environment and improving building occupant comfort.

Note: The resultant energy savings from items 1 & 2 are not included in the Project Cost tables (please see next tab, ECM Summary – Project Cost). These utility-sponsored programs will verify and document the energy savings to DDS after implementation. 3) We have included a $10,000 cost for each center (please see next tab, ECM Summary – Project Cost). This is reflected in the Project Cost column, for a web based monitoring system, e.g., Smart Metering which is a requirement of this project. Since this will not be available through the Investor Owned Utilities until 2012 Johnson Controls will provide it through our technology.

Finally, Johnson Controls while visiting all of your centers also looked at the feasibility of HVAC replacement in the modular buildings as well as night set-backs in those buildings, dual duct AHU to VAV conversion, decentralization of the steam system and power plant boiler replacements but none of these opportunities proved to be cost effective.

In closing and once again, we commend your commitment to pursuing energy cost savings and environmentally friendly initiatives, and look forward to a successful partnership with the DDS through our mutual interest in energy conservation. We also thank the DDS for their excellent hospitality and information exchange throughout this process.

Please contact me on any questions you may have regarding this submittal. In addition to being your main Johnson Controls contact, I am Johnson Controls’ State of California American Recovery and Reinvestment Act (ARRA) Program Manager. I am experienced and conversant with direct government contracting and knowledgeable about appropriate contract vehicles and reporting requirements, thus providing DDS a partner that can help win ARRA projects that create jobs while building a more comfortable, safe and sustainable world.

Michael Trovato
State of California
Energy Solutions Executive
Johnson Controls
(916) 996-9920
[email protected]
"None of Us is as Good as All of Us"
California Small Building Program
Department of Developmental Services Loan Application
© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

ENERGY CONSERVATION MEASURE SUMMARY
Project Description and Project Cost information follows:

California Small Building Program
Department of Developmental Services Loan Application© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Energy Efficient State Property Revolving Loan Fund
Energy Conservation Measures Summary

Page 1 ends

California Department of Developmental Services
Building Name ECM # ECM Title ECM Description Source Document Page # Fairview Developmental
Center, 2501 Harbor
Boulevard, Costa Mesa, CA
92626
1 Lighting Upgrade Fixture replacements and retrofits including lower wattage T8 and induction lighting throughout the campus Facility Description/ECM/Lighting Tab:1-Pg.2 Tab:4 Fairview Developmental
Center, 2501 Harbor
Boulevard, Costa Mesa, CA
92627
2 Boiler SCR Install one Selective Catalytic Reduction (SCR) system for one campus steam boiler Facility Description/ECM/SCR Tab:1-Pg.2 Tab:4 Porterville Developmental
Center, 26501 Ave 140,
Porterville, CA 93257
3 HVAC - VAV Conversion Constant volume multi-zone unit conversion to variable air volume (VAV) for 17 buildings. Facility Description/ECM/eQuest Model Tab:1-Pg.5 Tab:5 Porterville Developmental
Center, 26501 Ave 140,
Porterville, CA 93258
4 Boiler SCR Install one Selective Catalytic Reduction (SCR) system for one campus steam boiler Facility Description/ECM/SCR Tab:1-Pg.6 Tab:5 Sonoma Developmental
Center, 15000 Arnold Drive,
Glen Ellen, CA 95442
5 Lighting Upgrade Fixture replacements and retrofits including lower wattage T8 and induction lighting throughout the campus Facility Description/ECM/Lighting Tab:1-Pg.8 Tab:6 Sonoma Developmental
Center, 15000 Arnold Drive,
Glen Ellen, CA 95443
6 HVAC
Upgrade -
Nelson
Constant volume multi-zone unit conversion to variable
air volume (VAV) for Nelson Building.

Facility
Description/ECM/eQuest
Model
Tab:1-Pg.8
Tab:6
Sonoma Developmental
Center, 15000 Arnold Drive,
Glen Ellen, CA 95444
7 HVAC
Upgrade - E/

J/ O/ R
Constant volume multi-zone unit conversion to variable
air volume (VAV) for four buildings.

Facility
Description/ECM/eQuest
Model
Tab:1-Pg.8
Tab:6
Sonoma Developmental
Center, 15000 Arnold Drive,
Glen Ellen, CA 95445
8 Boiler SCR Install one Selective Catalytic Reduction (SCR) system for one campus steam boiler Facility Description/ECM/SCR Tab:1-Pg.9 Tab: 6 California Small Building Program
Department of Developmental Services Loan Application© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Amount Units % ($ per unit) ($) ($) ($) ($) (years) (years) SCE Totals 3,171,844 kWh - - $338,819 $2,447,854 $507,872 $1,939,981 5.7SoCalGas Totals 79,560 Therms - - $57,825 $1,431,829 $0 $1,431,829 24.8PG&E Totals 2,160,715 kWh - - $429,240 $3,423,742 $399,069 $3,024,673 7.0 36,114 Therms
Web Based Monitoring - - - - $30,000 - $30,000 -PROJECT TOTALS: 5,332,559 kWh - - $825,884 $7,333,424 $906,941 $6,426,483 7.8 115,674 Therms
DEER
EUL
DEER
Reference
Address:

ECM # Energy Savings Per Year
Energy Efficient State Property Revolving Loan Fund
Summary of Energy Conservation Measures

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California Department of Developmental Services
Dept. Name: Department of Developmental Services Utility Service Provider: VariousFacility Name: Multiple Facilities Tarriff Rate: Various Energy Unit
Cost
Total Annual
Cost Savings
Project
Cost
Utility
Incentive
Cost After
Incentive
Simple
Payback
California Small Building Program
Department of Developmental Services Loan Application© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Amount Units % ($ per unit) ($) ($) ($) ($) (years) (years) Building Name: Sonoma Developmental Center Square Feet: 1,213,519 5 865,790 kWh 6% $0.1870 $161,865 $1,278,165 $129,868 $1,148,296 7.1 8/11 D59/D606 520,202 kWh 4% $0.1870 $97,255 $703,847 $93,636 $582,433 5.0 15 D51 27,778 Therms 1.4% $0.70 $19,445 $27,778
7 774,723 kWh 6% $0.1870 $144,840 $725,815 $139,450 $578,029 3.8 15 D51 8,336 Therms 0.4% $0.70 $5,835 $8,336
8 Therms - $0.70 $0 $715,914 $715,914
Total: 2,160,715 kWh $429,240 $3,423,742 $399,069 $3,024,673 7.0 36,114 Therms
TOTAL: 2,160,715 kWh $429,240 $3,423,742 $399,069 $3,024,673 7.0 36,114 Therms
Facility Name: Sonoma Developmental Center Tarriff Rate: E-20P Energy Savings Per Year Energy Unit Cost Total Annual Cost Savings Project Cost Utility Incentive Energy Efficient State Property Revolving Loan Fund
Summary of Energy Conservation Measures

Page 2 ends

Dept. Name: Department of Developmental Services Utility Service Provider: PG&EAddress:

ECM #
Cost After
Incentive
Simple
Payback
DEER
EUL
DEER
Reference
California Small Building Program
Department of Developmental Services Loan Application© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Amount Units % ($ per unit) ($) ($) ($) ($) (years) (years) Building Name: Fairview Developmental Center Square Feet: 1,101,359 1 kWh Electric service from SCE shown at SCE 8/11 D59/D602 Therms $715,914 $0 $715,914 - - Building Totals 0 Therms $0 $715,914 $0 $715,914
Building Name: Porterville Developmental Center Square Feet: 1,086,264 3 kWh Electric service from SCE shown at SCE 8/11 D59/D60 79,560 Therms 8% $0.7268 $57,825 $0
4 Therms $715,914 $0 $715,914 - -
Building Totals 79,560 Therms $57,825 $715,914 $0 $715,914 TOTAL: 79,560 Therms $57,825 $1,431,829 $0 $1,431,829Facility Name: Multiple Facilities Tarriff Rate: Various Energy Efficient State Property Revolving Loan Fund
Summary of Energy Conservation Measures

Page 2 ends

Dept. Name: Department of Developmental Services Utility Service Provider: SoCal GasAddress:

ECM # Energy Savings Per Year Energy Unit Cost Total Annual Cost Savings Project Cost Utility Incentive Cost After Incentive Simple Payback DEER EUL DEER Reference California Small Building Program
Department of Developmental Services Loan Application© 2010, Johnson Controls, Inc. Do not copy (physically, electronically, or in any other media) without the express written permission of Johnson Controls, Inc.

Amount Units % ($ per unit) ($) ($) ($) ($) (years) (years) Building Name: Fairview Developmental Center Square Feet: 1,101,359 1 2,101,987 kWh 15% $0.1226 $257,624 $1,587,537 $315,298 $1,272,239 4.9 8/11 D59/D602 Therms Gas service from SoCal Gas -- Building Totals 2,101,987 kWh $257,624 $1,587,537 $315,298 $1,272,239 4.9 3 1,069,858 kWh 8% $0.0759 $81,195 $860,317 $192,574 $667,742 8.2 8/11 D59/D60 Therms Gas service from SoCal Gas (payback with electric only) 4 Therms Gas service from SoCal Gas
Building Totals 1,069,858 kWh $81,195 $860,317 $192,574 $667,742 8.2 0 Therms
TOTAL: 3,171,844 kWh $338,819 $2,447,854 $507,872 $1,939,981 5.7Building Name: Porterville Developmental Center Square Feet: 1,086,264Facility Name: Multiple Facilities Tarriff Rate: Various Energy Savings Per Year Energy Unit Cost Total Annual Cost Savings Project Cost Utility Incentive Energy Efficient State Property Revolving Loan Fund
Summary of Energy Conservation Measures

Page 2 ends

Calexico City CouncilJanuary 21, 2026

Calexico City Council
January 21, 2026