STAFF REPORT
City of Lancaster
CC 10
2/24/2026
TN
Date:February 24, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Lancaster Police Station Microgrid Project
Recommendation:
1. Award contract to construct the Lancaster Police Department Microgrid Project, to Mynt Systems in a not to exceed amount of $941,170.
2. Authorize the City Manager, or his designee, to execute any additional amendments to the Agreement deemed necessary to complete the project in a form approved by the City Attorney.
3. Find that the City has complied with the California Environmental Quality Act (CEQA).
A notice of exemption was filed on September 7, 2018.
G.C. Section 84308: No
Fiscal Impact:
Please appropriate a total amount of $941,170 (already includes 15% contingency and 5% City staff labor) from Lancaster Energy Fund Balance into Account Number 50119900-8000.
Background:
The Lancaster Police Department Station is a vital emergency operations and training center for our community, serving Lancaster Police personnel, County Sheriff deputies, and other law enforcement and first responder staff. The Police Department is in need of extended clean energy backup capabilities, and reduced energy bills. The proposed microgrid project, consisting of solar and battery backup power, will enhance the facility’s ability to provide clean backup power during increasingly frequent power are consistent with existing needs assessments and the planned expansion of the facility.
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Staff is recommending that Council authorize the City of Lancaster to enter into a construction agreement with Mynt Systems, the project developer. In lieu of undertaking its own competitive bidding or proposal process, the City of Lancaster will utilize a sole source agreement developed by the ZNE Alliance, a nonprofit organization serving as the prime contractor for the Lancaster Advanced Energy Community grant received from the California Energy Commission, which is providing partial grant funding for the project. The use of this sole source agreement is consistent with the City of Lancaster's practices on other grant projects of this type. MYNT Systems meets the criteria under Lancaster Municipal Code 3.32.200(B)(2), and a competitive quotation process would be impracticable and meaningless.
The current CEC grant term concludes March 31, 2026. The City originally committed a match of ~$5 million dollars to the CEC, and additional funding commitments are expected by the CEC to improve the City’s performance against this goal.
Failure to move forward with the PD microgrid presents two significant risks:
i. Potential Legal Action by the CEC – The CEC could seek recovery of unfulfilled matching funds, as has occurred with other cities (e.g., San Jose).
Such an action could delay or halt City eligibility for current and future CEC funding.
ii. Loss of Retention Payments – The CEC could withhold approximately $500,000 in retention funds from project partners after project closeout on March 31, 2026.
Both outcomes would negatively impact the City’s credibility and financial exposure related to state-funded energy programs.
Attachment:
Agreement
Cost Proposal
90% Design
CEC Terms and Conditions
Sole Source Memo