Agenda Item No: K.15
AGENDA REPORT
DATE: September 16, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-189 PW Energy Conservation Project – Phase 1 Project Budget Adjustment
Authorizing an Update to the Fiscal Year 2025 -2026 Budget for the Energy Conservation Project – Phase 1 Project
Funding Source: $287,400; Intergovernmental Services Fund
Contact: Marisa Cumpian, (707) 428-7494
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City of Fairfield has undertaken a comprehensive energy efficiency initiative (Project) in partnership with W illdan Energy Solutions (Willdan). The total cost of the energy savings performance contract with Willdan is expected to total $29,998,064. The City will fund $8.6 million of the costs with available City funds and will finance the remainder of the improvements.
The City has opted to not finance project contingency costs estimated at $1,581,723.
DISCUSSION
On December 3, 2024, the City Council adopted Resolution No. 2024 -279, which authorized the City Manager to enter into an energy savings performance contract with Willdan for implementation of the Energy Conservation Project - Phase 1. The Project includes solar installations, lighting retrofits, Heating, Ventilation, and Air Conditioning (HVAC) upgrades, and other conservation measures across multiple City facilities.
Since the commencement of the Project, t wo change orders have been authorized. The first encompassed to asbestos testing and remediation, and the second addresses modifications to the HVAC ducting and lighting components. Additionally, several miscellaneous expenses have
been incurred related to the temporary r elocation of City staff during energy conservation upgrades to the City Hall.
The total cost of these changes are $287,400. A budget adjustment in the amount of $287,400 from the Intergovernmental Services is required.
FINANCIAL IMPACT
The Project was approved for an increase in appropriations of $31,579,787 to the Public Buildings Capital Fund (Fund 254) for fiscal year (FY) 2024-2025.This appropriation included $8,688,308 in available funding including $2,519,000 from Bedroom Tax (Fund 165), $2,401,308 from AB1600 Government Facilities (Fund 262), $2,140,000 from Construction License (Fund 164), $1,318,000 from Civic Center Improvements (Fund 532), $310,000 from Transit (Fund 451 and 452). The balance of the base project funding will be financed. The con tingency for this Project will be funded using the Intergovernmental Services Fund (Fund 551).
Staff have identified $287,400 in unanticipated work fees that need to be completed in support of the Project that was not budgeted for in the FY 2025-2026 approved budget. An increase in appropriations for the additional costs for the Project will require a budget adjustment of $287,400 from the Intergovernmental Services Fund to the Public Buildings Fund. The revised appropriation constitutes an update to the FY 2025 -2026 budget approved pursuant to Resolution No. 2025-103. The overall Project budget supports the additional expenses, and staff anticipate reconciling the Project at the conclusion and reimbursing the Intergovernmental Services Fund.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If the council has any questions, this request may be delayed so that staff can provide necessary background information.
COORDINATED WITH
Finance Department
STAFF CONTACT
Marisa Cumpian, Sr. Management Analyst
(707) 428-7494
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution