Patterson City Council
March 17, 2026

I.3 This Agreement shall supersede any previous Measurement and Verification Agreements accepted and approved by the “Purchaser” and “ABS.”
I.4 This Agreement, when accepted in writing by the “Purchaser” and approved by an authorized “ABS” representative, shall constitute the entire Agreement between the two (2) parties.

II. Charges:

II.1 For services not covered by this Agreement but performed by “ABS” upon the “Purchaser’s” prior written authorization, the “Purchaser” agrees to pay “ABS”’s invoice(s) 30 days after receipt of invoice. Failure to pay the invoice within 30 days after receipt will result in a 10% late payment penalty.

II.2 If emergency service is requested, ABS will provide Purchaser with a written proposal for the inspection and work and a cost estimate. ABS will only commence emergency service after Purchaser accepts the proposal and cost estimate in writing. If emergency service is requested by the “Purchaser” and inspection does not reveal any defect for which “ABS” is liable under this Agreement, the “Purchaser” will be charged at “ABS”’s emergency charge rates.

ABS’s emergency charge rates shall be seven hundred fifty dollars ($750) per hour in year 1 of this Agreement and shall escalate at 5% annually thereafter.

III. Limitations of Liability:

III.1 Neither party shall 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, CONSEQUENTIAL, INDIRECT, SPECIAL OR SPECULATIVE DAMAGES.

III.2 “ABS” 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.

III.3 Section removed.

III.4 “ABS” warrants that for equipment furnished and/or installed but NOT manufactured by “ABS”, “ABS” will extend the same warranty and terms and conditions, which “ABS” received from the manufacturer of said equipment.

III.5 This agreement pre-supposes that all equipment associated with the Energy Efficiency and Renewable Energy Program is in satisfactory working order. Should any equipment be in need of repair, “ABS” will have ninety (90) days to make such repair upon ABS discovering the need for repair or notification from Purchaser. If the “Purchaser” does not authorize “ABS” to make the repairs or if the “Purchaser” does not have the work performed, the Agreement saving will be adjusted to account for the equipment that is not functioning property due to needed repairs. Maintenance of existing equipment and systems that are not associated with the Energy Efficiency and Renewable Energy Program are 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.

III.6 The amount of any present or future sales, use, occupancy excise, or other tax (federal, state or local) which “ABS” 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 “ABS”. Purchaser shall reasonably assist “ABS” in determining the applicable requirements, but it shall be ABS’s sole responsibility for determining and complying with all applicable laws, regulations and standards.

III.7 If the equipment or software included under this Agreement is altered, modified, or changed by a party other than “ABS”, this Agreement shall be modified to incorporate such changes the Agreement price and/or Savings shall be adjusted accordingly.

III.8 Following twelve (12) months of service or any time thereafter, if individual item(s) cannot, in “ABS”’s opinion, be properly repaired on-site because of excessive wear, deterioration or an Act of God that is out of “ABS” control.

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“ABS” may withdraw the item(s) from coverage upon ninety (90) days prior written notice. Energy savings may be adjusted accordingly.

III.9 This agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California. Venue for all legal proceedings shall be in the Superior Court for the County of Stanislaus.

IV. Miscellaneous Provisions:

IV.1 The services provided hereunder may occur on active “Purchaser” sites. As such, “ABS” 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 and any other legal requirements which maybe applicable to “ABS”’s activities on or about the “Purchaser” sites. The “Purchaser” shall reasonably assist “ABS” in determining the applicable laws, regulations and standards.

IV.2 Dispute Resolution:

IV.2.1 Disputes: This section shall apply to any disputes arising under our related to this Agreement whether arising in contract, tort or otherwise, and whether arising at law or in equity including (a) any dispute regarding the performance, validity or enforceability of any provision of this Agreement or whether any party is in compliance with, or breach or, any provisions of this Agreement and (b) the applicability of this Section to a particular dispute. Any dispute to which this section applies is referred to herein as a “Dispute”.

IV.2.2 Negotiation to Resolve Disputes: If a dispute arises, the Parties shall attempt to resolve such dispute through the following procedure.

IV.2.2.1 First, the representatives of each of the Parties shall promptly meet (whether by phone or in person) in a good faith attempt to resolve the Dispute; IV.2.2.2 Second, if the Dispute is still unresolved after 20 days following the commencement of the negotiations described in Section 4.2.2.1 then a designated executive officer to each party shall meet (whether by phone or in person) in a good faith attempt to resolve the Dispute;
IV.2.2.3 Third, if the Dispute is still unresolved after 10 days following the commencement of the negotiations described in Section 4.2.2.2, then either Party may submit such Dispute to litigation;
IV.2.2.4 The venue for any Dispute arising from or relating to this Agreement that is adjudicated pursuant to this Section 4.2.2.4 shall be arbitrated in Stanislaus County, California. Any Dispute arising from or relating to this Agreement that is adjudicated pursuant to this Section 4.2.2.4 shall be arbitrated in Stanislaus County, California. The arbitration shall be administered by JAMS or another mutually agreed upon arbitrator in accordance with its Comprehensive Arbitration Rules and Procedures, and judgment on any award maybe entered in any court of competent jurisdiction in Stanislaus County, California. If the Parties agree, a mediator may be consulted prior to arbitration; IV.2.2.5 Pending a final resolution of a Dispute, the Parties shall each proceed diligently and faithfully with performance of their respective obligations under this Agreement.

IV.3 Indemnification:

To the fullest extent permitted by law (including, without limitation, California Civil Code Sections 2782 and 2782.8), ABS shall defend, indemnify, hold harmless, and release Purchaser, and Purchaser’s elected and appointed councils, commissions, directors, officers, employees, agents, and representatives (“Purchaser’s Agents”) from and against any and all actions, claims, loss, cost, damage, injury (including, without limitation, disability, injury or death of an employee of ABS or its subcontractors), expense and liability of every kind, nature and description to the extent caused in whole or in part by ABS’s negligence or relate to acts or omissions of ABS, or any direct or indirect subcontractor, employee, contractor, representative or agent of ABS, or anyone that ABS controls (collectively “Liabilities”). Upon receiving notice of a claim, ABS shall assume the defense of the claim, action, or proceeding through the prompt payment of all attorneys’ fees and costs, incurred in good faith and in the exercise of reasonable discretion, of Purchaser’s counsel in defending such an action. Purchaser shall have the absolute and sole authority to control the litigation and make litigation decisions, including, but not limited to, selecting counsel to defend Purchaser and settlement or other disposition of the matter. Such obligations to defend, hold harmless and indemnify Purchaser and Purchaser’s Agents shall not apply to the extent that such Liabilities are caused in whole or in part by the negligence, active negligence, or willful misconduct of Purchaser or Purchaser’s Agents, but shall apply to all other Liabilities. With respect to third party claims against ABS, ABS waives any and all rights of any type of express or implied indemnity against Purchaser and Purchaser’s Agents.

This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or

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compensation payable to or for ABS or its agents under workers’ compensation acts, disability benefits acts or other employee benefit acts.

Neither termination of this M&V Agreement nor completion of the acts to be performed under this M&V Agreement shall release ABS from its obligations to indemnify the Purchaser and Purchaser’s Agents.

Submission of insurance Certificates or other proof of compliance with the insurance requirements in the Installation Agreement does not relieve ABS from liability under this indemnification clause. The obligations of this indemnity shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

ABS shall require each of its Subcontractors to comply with the requirements of this section related to indemnifying, holding harmless, defending, and releasing Purchaser and Purchaser’s agents.

V. NOTICES. All notices or other communications required or permitted hereunder shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested. Notice shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if mailed, three (3) business days after the date of posting by the United States post office, postage prepaid, or (iii) if delivered by Federal Express or other overnight courier, the date delivered as shown on a receipt issued by the courier.

ABS: Alliance Building Solutions, LLC
12520 High Bluff Drive, Ste 345
San Diego, CA 92130
Purchaser: City of Patterson
1 Plaza
P.O. Box 667
Patterson, CA 95363
Attention: City Manager
Copy to: White Brenner LLP
1608 T Street
Sacramento, CA 95811
Phone: 916-468-0950
Attention: Nubia Goldstein
VI. Occupational Safety and Health: The Parties hereto agree to notify each other immediately upon becoming aware of any alleged violations of the Occupational Safety and Health Act (OSHA) relating in any way to the project or project site.

VII. INDEPENDENT CONTRACT. It is agreed between “Purchaser” and “ABS” that “ABS” shall perform the work as an independent contractor. “ABS” may use subcontractors to perform work hereunder, provided “ABS” shall fully pay said subcontractors and in all instances remain fully responsible for (a) the proper completion of this Agreement and (b) supervising such subcontractor’s work and for the quality of the work they produce. ABS shall ensure that each of the subcontractors holds all licenses legally required for the practice of its profession and in the classification(s) required for their respective work under this Agreement. ABS shall bind every subcontractor to the applicable terms of this Agreement.

Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and Purchaser nor shall the Agreement be construed to be for the benefit of any subcontractor.

ABS represents and warrants that neither it, nor any of its subcontractors, has been debarred by the California Labor Commissioner pursuant to Section 1777.1 of the California Labor Code or otherwise.

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ABS represents and warrants that it is an equal opportunity employer and agrees that it shall not discriminate in violation of any applicable federal, state, or other law, rule or regulation, including, but not limited, to discrimination against any employee or applicant for employment on account of such person's race, religion, color, national origin, ancestry, sex, or age. ABS shall apply such policy of non­discrimination in connection with all activities related to ABS’s employees and subcontractors, including with respect to initial employment, promotion, demotion, transfer, recruitment or recruitment advertising, and layoff or termination.

This contract is subject to prevailing wage law, including, but not limited to, California Labor Code Sections 1773.2 and 1775.

ABS acknowledges that the Work will be subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). ABS shall be responsible for ensuring that it and all of its Subcontractors are currently and properly registered with the DIR. ABS and each of its subcontractors shall comply with all applicable provisions of the California Labor Code (“Labor Code”) and the regulations promulgated thereunder (collectively, the “Labor Laws”), including, without limitation, any applicable Labor Laws requiring the payment of prevailing wages, submission of payroll records for inspection, posting of required notices at the Project Site, and cooperation with the DIR.

VIII. COMPLIANCE WITH LAWS. “ABS” shall comply with all applicable Federal, State and local laws and regulations. All licenses and permits required for the prosecution of the work shall be obtained and paid for by “ABS”. Each and every provision required by any Applicable Law to be included in this Agreement is hereby deemed to be so included, and this Agreement shall be construed and enforced as if all such provisions are so included.

IX. INSURANCE. “ABS” will maintain comprehensive liability and other insurance in the amount not less than those set forth below.

IX.1 General Liability Insurance. A policy of commercial general liability insurance, written on an “occurrence” basis, providing coverage with not less than $1,000,000 per occurrence for bodily injury, personal injury & property damage and must include a separate endorsement naming the “Purchaser”, its elected officials, its officers, agents and employees as additional insurance (“General Liability Policy”). The General Liability Policy shall include coverage for the contractual liability assumed by the ABS pursuant to this Agreement.

IX.2 Vehicle Liability Insurance. A policy of business vehicle liability insurance, written on an “occurrence” basis, with a combined single limit of not less than $1,000,000 per accident for bodily injury and property damage (“vehicle Liability Policy”). The vehicle Liability Policy shall include coverage for owned, hired, and non-owned automobiles.

IX.3 Worker’s Compensation Insurance. Worker’s compensation insurance as required by State law and employer’s liability insurance, written on an “occurrence” basis, with coverage in an amount not less than $1,000,000.

Notwithstanding the insurer rating standards set forth in this Agreement, coverage provided by the State Compensation Insurance Fund shall be deemed, with respect to the workers’ compensation insurance, to satisfy such insurer rating standards.

IX.4 Professional Liability Insurance. Professional liability insurance with coverage in an amount of not less than $1,000,000 (Professional Liability Policy”), which the “Purchaser” acknowledges shall be written on a “claims made” basis. The Professional Liability Policy shall provide coverage for claims arising out of the performance of the Scope of Services pursuant to this Agreement. If an aggregate limit applies, such aggregate limit in the Professional Liability Policy shall not be less than $2,000,000. Prior to commencing the Scope of Services, and, if applicable, upon replacing the original Professional Liability Policy, the ABS shall provide the Purchaser a copy of any and all applicable claims-reporting requirements. Notwithstanding anything to the contrary: (i) ABS shall have the Professional Liability Policy, as described herein, in full force and effect prior to commencing the Scope of Services; (ii) each renewal or replacement of the Professional Liability Policy shall have a retroactive date that is prior to the date the ABS commenced the Scope of Services; and (iii) as a condition to final payment to ABS pursuant to this Agreement. If the claims reporting period applicable to the scope of Services, as specified in or determined pursuant to the Professional Liability Policy for the Scope of Services, will Terminate prior to the end

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of the two-year period following final payment to ABS pursuant to this Agreement, then ABS, as its cost, shall obtain and provide satisfactory evidence to the Purchaser of: (i) an endorsement to extend the claims reporting period to include whatever will remain of such two-year period; or (ii) a supplemental extended reporting period (tail) applicable to the Professional Liability Policy as required to provide coverage until the end of such two-year period. Such tail coverage shall be required, for example; (i) if ABS intends to switch insurance carriers and the prospective new carrier will not agree to cover claims arising from the Scope of Services submitted at any time prior to the end of the two-ear period following final payment to ABS pursuant to this Agreement; (ii) if ABSs business is to be wound-up or otherwise terminated, whether voluntarily or Involuntarily; or (iii) when necessary for any other reason to ensure that professional liability insurance applicable to the Scope of Services is in effect at all times required by this Agreement.

IX.5 Insurer Rating Standards. The insurance policies required pursuant to this section must be issued by one or more insurers that are (i) licensed to do business in the State of California and (ii) have an A.M. Best Company rating of not less than “A-” and a financial size category of not less than “VII.” IX.6 Duration of Insurance. Except as provided in this Agreement with respect to insurance written on a “claims made” basis, the ABS shall maintain the insurance required pursuant to this Agreement in effect at least until the date that is one year following final payment to the ABS pursuant to this Agreement.

IX.7 Additional Insured’s. The “Purchaser”, its elected officials, officers, employees, and agents shall all be named as additional insured, to the extent of the ABSs’ acts and omissions in connection with this Agreement, on all insurance that the consultant is to have in effect pursuant to this agreement, excepting the workers’ compensation insurance and the Professional Liability Policy.

IX.8 Waiver of Subrogation. ABS hereby waives, on behalf of its insurers, any and all rights to subrogation that any such insurer may acquire by virtue of the payment of any loss. Each of the General Liability Policy and The Vehicle Liability Policy shall be endorsed with a cross-liability endorsement and a waiver of the insurer’s rights of subrogation against the “Purchaser”. The policy of worker’s compensation insurance shall be endorsed with a waiver of the insurer’s rights of subrogation.

IX.9 ABSs Insurance is Primary. To the extent permitted by law, insurance policies required by this Agreement to be maintained by the consultant shall be primary and non-contributing with respect to any insurance or self-insurance programs covering the “Purchaser” or “Purchaser’s” Council members thereof, or the “Purchaser’s” other officers, employees or agents. The General Liability Policy and the Vehicle Liability Policy shall be endorsed to provide that they are so primary and non-contributory.

IX.10 Evidence of Coverage. Prior to commencing the Scope of Services, the ABS shall provide to the “Purchaser” or “Purchaser” such duly-authorized and executed certificates of insurance evidencing that the insurance policies to be maintained by the ABS pursuant to this Agreement are in effect (each a “certificate of Insurance”), together with a copy of each endorsement to such insurance as is required pursuant to this Agreement. The delivery of such Certificates of Insurance and endorsements shall be a condition precedent to ABS commencing any of the Scope of Services. As applicable, the Certificate of Insurance shall identify those who are additional insured’s in accordance with this Agreement. Not less than Thirty days prior to the expiration of any insurance policy that the ABS is required to maintain pursuant to this Agreement, the ABS shall provide updated Certificates of Insurance to the “Purchaser” evidencing the renewal of such policy.

IX.11 Notice of Changes in Policies. Each certificate of Insurance and corresponding policy of insurance required pursuant to this Agreement shall expressly require, or be endorsed to require, that the insurer notify the “Purchaser” not less than thirty days prior to any cancellation, termination, reduction in coverage, or expiration without renewal of any such insurance policy, except for cancellation due to non-payment of premium, in which case the insurer shall provide such notice not less than ten days prior to cancellation. Language in any Certificate

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of Insurance or policy of insurance to the effect that the insurer shall “endeavor” to provide such notice shall not be acceptable.

IX.12 Subcontractor Insurance. ABS shall require that each of its Subcontractors comply with substantially the same requirements as are set forth in this Insurance section, except to the extent Purchaser has approved any different standards or requirements applicable to any particular Subcontractor.

X. Audits: ABS shall keep and maintain all such books and records as are necessary for proper administration and performance of the Agreement and/or as are required by law and/or this Agreement to be maintained (to the extent exclusively related to the performance of the Agreement, “Project Records”), including, but not limited to, plans and specifications, Change Orders, submittals, cut-sheets, projected energy-savings calculations, requests for information, written notices, permits, testing and inspection reports, and safety records. In accordance with Government Code Section 8546.7, the State has the right to examine, review, audit and/or copy the Records of the work during the three (3) year period following final payment to the Contractor pursuant to the Contract. In addition, the “Purchaser” hereby has the right to examine, review, audit and/or copy the Records of the work during the three (3) year period following final payment to the Contractor pursuant to the Contract. Therefore, the Contractor shall make the Project Records available at its offices at all reasonable times during the performance of the Work and for three (3) years from the date of final completion or filing of a Notice of Completion for the Project, whichever is later. However, if any audit is commenced within such three (3) year period, the Contractor shall make the Project Records available at all reasonable times until proceedings related to such audit are complete and all statutes of limitations related thereto have expired. In the event the “Purchaser” notifies the Contractor that federal funds have been used in connection with Project, the Contractor shall retain and make available the Project Records for such longer period as may be required by federal law.

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

XII. 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.

XIII. Severability: If one or more of the provisions of this Agreement are held to be unenforceable under laws, such provisions(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.

XIV. 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.

XV. Waiver: A waiver by a Party of any provision of this Agreement shall be binding only if the waiver is set forth in writing and has been duly approved and signed by the waiving Party. Unless so specified in the written waiver, a waiver by a Party of any provision of this Agreement shall not constitute a waiver of any other provision(s) herein, similar or not, and shall not be construed as a continuing waiver. Except as waived in accordance with this Section, a Party’s failure to require performance of any requirement of this Agreement shall not, in any manner, affect the Party's right to enforce the same or any other provision of this Agreement at a later time.

XVI. Assignment: Neither Party to this Agreement may assign any right or obligation pursuant to this Agreement without agreement in writing from the other Party. Any attempt or purported assignment of any right or obligation pursuant to this Agreement without the written agreement of the other Party shall be void and of no effect. Subject to the foregoing, this Agreement shall inure to the benefit of, and be binding on, the Parties' authorized successors and assigns.

XVII. Third Parties: Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties, to any person or entity other than the Parties.

XVIII. Acknowledgement: Both “ABS” and the “Purchaser” acknowledge having read this Agreement and all contract documents incorporated herein and have executed this agreement on the date written above.

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XIX. Approval: Each Party represents that the person that has executed this Agreement on its’ behalf is authorized to do so.

City of Patterson Alliance Building Solutions, LLC.

Signature Signature
Title Title
Date Date

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Attachment 1
Guaranteed Savings Measurement & Verification

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Guaranteed Savings Measurement & Verification
This document contains the Measurement and Verification (M&V) plan for the energy savings related to the Energy Efficiency Measures (EEMs) contained in the Installation Agreement. The following table summarizes the EEMs implemented in these Phases of work.

Site Lighting
Upgrades
HVAC
Upgrades
Controls
Upgrades
Electrical
Upgrades
Building
Envelope
Upgrades
Renewable
Energy
Aquatic Center X X
City Hall X X X X X
Corporate Yard X X X
Fire Station #1 X X X X X
Fire Station #2 X X X X
Old Corporate Yard X X
Senior Center X X
WWTP South X X X
Well 8 X
Well 9 X
Well 11 X
For each EEM, a specific M&V plan is submitted to provide a comprehensive overall plan for the City of Patterson. Energy savings shall be compared to the Utility Baseline Summary, as shown in Attachment 2. Each EEM’s M&V Plan provides:
• A description of how the savings shall be verified.
• The selection of the specific protocol of verification of savings. • The requirements for measurement or other means to establish savings.

ABS is responsible for pre-retrofit measurements, 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.

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Savings Guarantee
As of the date hereof, ABS guarantees that Purchaser shall realize total annual project savings (utility savings, operational savings, capital cost avoidance, rebates and Solar ITC) as shown in the table below. Notwithstanding the foregoing or anything to the Contrary contained herein, Purchaser hereby agrees that (i) ABS’s expectation regarding the annual project savings is an estimate, (ii) ABS’s expectation regarding the project savings are based on IRS rules and regulations as of the date hereof, and (iii) ABS shall not be liable for any changes or amendments to the IRS rules and regulations after the date hereof. Additionally, Purchaser hereby agrees that Purchaser shall be solely responsible for the application required for Purchaser to claim any tax credits related to the Solar ITC. The effective date will begin on the date of final acceptance of the Energy Efficiency and Renewable Energy Program and receipt of final payment for the associated Installation Agreement. The total project savings will exceed the Installation Agreement Contract Amount and M&V payments associated with this M&V Agreement during the course of the useful life of the installed equipment. ABS agrees to complete the M&V Report on an annual basis and deliver to the Purchaser within one hundred and twenty (120) days of the anniversary date of final acceptance and annually thereafter. Project savings that are verified during the course of construction will be applied to the 1st year guaranteed project savings.

If the annual M&V Report demonstrates that the project will achieve one hundred percent (100%) or more of the Guaranteed Project Annual Savings, then ABS 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 savings from previous years) does not meet the Guaranteed Project Savings in accordance with the M&V Plan, then ABS shall repair, replace, or substitute the EEM that is not performing at the required level, as identified in the M&V Report. Following corrective action, ABS shall re-perform the relevant M&V work for the affected EEM(s) and amend or supplement the M&V Report. If the sum of the EEMs 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 as shown in the Savings Summary, then ABS shall pay the Purchaser the shortfall amount.

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

The Utility Baseline Summary, as shown in Attachment 2, may be modified over the course of the Guarantee Period to adjust for changes in utility rates, number of days in utility billing cycle, missing bills, missing meters, square footage, energy using equipment, building occupancy and weather. This Guarantee is subject to the Purchaser’s adherence to the Control Parameters for Lighting and HVAC systems, as documented in the Installation Agreement Attachments. This guarantee assumes the annual utility rate escalator of 4% and the annual solar production at 100% of the estimated solar production in kWh.

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Year Guaranteed Savings
1 $203,390
2 $212,286
3 $286,632
4 $358,523
5 $372,530
6 $387,050
7 $402,107
8 $417,718
9 $433,908
10 $450,694
11 $468,102
12 $486,155
13 $504,878
14 $524,295
15 $544,434
16 $565,323
17 $586,990
18 $609,464
19 $632,776
20 $642,010
Total $9,089,265

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Measurement and Verification Methods
Measurement and Verification (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 contract.

The development of the M&V plan is based on the International Performance Measurement and Verification Protocol (IPMVP):

Concepts and Options for Determining Energy and Water Savings, Volume 1. This plan contains methodology that shall provide verification of the estimated program savings through direct utility billing comparisons, engineering calculations and/or field measurements.

M&V methods can differ based on the type, size and complexity of the project, as well as the availability of data, level of assurance of saving, financing constraints, and energy costs. The M&V methods used for this project are detailed herein and were selected to be the most cost effective while still providing a reasonable assurance of the savings calculations.

IPMVP 2012 Volume 1 provides an overview of the IPMVP Options, as illustrated below:

M&V Option M&V Methodology Description How Savings Are Calculated Option A
Retrofit Isolation:

Key Parameter
Measurement
Savings are determined by field measurement of the key
performance parameter(s) which define the energy use of the EEM’s affected system(s) and/or the success of the project.

Measurement frequency ranges from short-term to
continuous, depending on the expected variations in the measured parameter, and the length of the reporting period.

Parameters not selected for field measurement are
estimated. Estimates can be based on historical data,
manufacturer’s specifications, or engineering judgment.

Documentation of the source or justification of the estimated parameter is required. The plausible savings error arising from estimation rather than measurement is evaluated.

Engineering calculation of baseline and
reporting period energy from shortterm or continuous measurements of key operating parameter(s) and
estimated values. Routine and nonroutine adjustments as required.

Option B
Retrofit Isolation:

All Parameter
Measurement
Savings are determined by field measurement of the energy use of the EEM-affected system. Measurement frequency
ranges from short-term to continuous, depending on the
expected variations in the savings and the length of the reporting period.

Short-term or Continuous
measurements of baseline and
reporting period energy, and/or
engineering computations using
measurements of proxies of energy
use. Routine and non-routine
adjustments as required.

Option C
Whole Facility
Savings are determined by measuring energy use at the whole facility or sub-facility level. Continuous measurements of the entire facility’s energy use are taken throughout the reporting period.

Analysis of whole facility baseline and
reporting period (utility) meter data.

Routine adjustments as required, using
techniques such as simple comparison
or regression analysis. Non-routine
adjustments as required.

Option D
Calibrated
Simulation
Savings are determined through simulation of the energy use of the whole facility, or of a sub-facility. Simulation routines are demonstrated to adequately model actual energy
performance measured in the facility. This Option usually requires considerable skill in calibrated simulation.

Energy use simulation, calibrated with
hourly or monthly utility billing data.
(Energy end use metering may be used
to help refine input data.)

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Selected Measurement and Verification Options
The below table illustrates the selected IPMVP Options for the EEMs covered under this M&V plan:

Site Lighting
Upgrades
HVAC
Upgrades
Controls
Upgrades
Electrical
Upgrades
Building
Envelope
Upgrades
Renewable
Energy
Aquatic Center A, C A, C
City Hall A, C A, C A, C A, C A, C
Corporate Yard A, C A, C A, C
Fire Station #1 A, C A, C A, C A, C A, C
Fire Station #2 A, C A, C A, C A, C
Old Corporate Yard A, C A, C
Senior Center A, C A, C
WWTP South A, C A, C A, C
Well 8 A, C
Well 9 A, C
Well 11 A, C
The particular options selected for each EEM was based on a number of related issues including: EEM complexity, EEM cost, EEM savings, cost of M&V and the ability to accurately determine holistic building operations. If more than one option is selected, either option will be considered valid by ABS and the Purchaser. The baseline and the post-installation energy use depend on various system and external factors, such as utilized setpoints, energy demand, operating hours, occupancy, weather conditions, and energy rates. Development of the baseline, post installation consumption, cost avoidances and simple payback for each EEM covered by this M&V plan includes:
• Stipulated Values – These agreed upon values are important in the overall calculations for energy consumption, financial calculations, and operating conditions.
• 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 installation 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 usage, costing, and annual savings for evaluating the estimated and actual savings of EEMs.
• Pre-Retrofit Measurements – EEMs 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 – EEMs 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 – EEMs 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 – EEMs 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 EEM upon project completion. • ABS will follow the agreed-upon M&V protocols for the measurement period and will prepare post installation reports with supporting documentation for the Purchaser.

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Measurement and Verification Plan
IPMVP Option A: Retrofit Isolation, Key Parameter Measurement For Lighting System Upgrades
M&V Procedure
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.

Stipulated Values
Operating Hours are stipulated for purposes of M&V. Please refer to the Lighting Systems Attachment in the Installation Agreement for a complete list of lighting hours of operation. Stipulated values are agreed to by the Purchaser.

Adjustments
For this EEM, the following adjustments are allowed for purposes of Measurement and Verification:
• Light level requirements may be modified as detailed in this plan. • Changes in actual construction including the number and/or type of lighting fixtures. • Utility rates, billing days or degree days.

Savings Calculations
The calculations for the baseline energy consumption and post retrofit savings shall be completed in accordance with the industry guidelines set forth by IPMVP and methods indicated below. kWh Savings = [(Existing Watts / Fixture) x (Existing Quantity) x (Existing Hours of Operation) / 1000] – [(Proposed Watts / Fixture) x (Proposed Quantity) x (Proposed Hours of Operation) / 1000] Dollar Savings = (kWh Savings) x (Average Utility Baseline $/kWh Rate) Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by ABS. The operational savings are stipulated and met upon the completed installation of the energy retrofit contract.

Commissioning
Commissioning shall consist of inspections and a final verification report. Inspections shall consist of:
• During construction, ABS shall maintain a detailed record of the types and quantities of fixtures retrofitted and fixtures installed in each facility. A post construction inspection is required by the responsible M&V party. • After lighting modifications have been completed, the installations shall be inspected to verify counts by fixture code. • Post-retrofit lighting levels shall be measured to verify compliance with the contract standards.

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Measurement and Verification Plan
IPMVP Option A: Retrofit Isolation, Key Parameter Measurement For Mechanical System Upgrades
M&V Procedure
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 capacity, nameplate electrical data 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 The Mechanical Systems and Controls Systems Attachment(s) in the Installation Agreement for specific operating hours and runtime hours for each HVAC unit or area. Stipulated values are agreed to by Purchaser.

Adjustments
None required for this EEM.

Savings Calculations
The calculations for the baseline energy consumption and post retrofit savings shall be completed in accordance with the industry guidelines set forth by IPMVP and methods indicated below. kWh Savings = [(Capacity of Existing HVAC Unit) x (Existing Unit Efficiency) x (Stipulated Load Factor)] – [(Capacity of New HVAC Unit) x (New Unit Efficiency) x (Stipulated Load Factor)] x (Annual Hours of Operation) Dollar Savings = (kWh Savings) x (Average Utility Baseline $/kWh Rate) Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by ABS. The operational savings are stipulated and met upon the completed installation of the energy retrofit contract.

Commissioning
Commissioning shall consist of inspections and a final verification report. Inspections shall consist of:
• ABS shall include verification that each new unit is operating as specified in all modes (heat/cool).

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Measurement and Verification Plan
IPMVP Option A: Retrofit Isolation, Key Parameter Measurement For Control System Upgrades
M&V Procedure
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 capacity, nameplate electrical data, efficiency rating, operating schedules, cooling and heating temperature setpoints for each 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 The Mechanical Systems and Controls Systems Attachment(s) in the Installation Agreement for specific operating hours and temperature setpoints. Stipulated values are agreed to by Purchaser.

Adjustments
For this EEM, the following adjustments are allowed for the purposes of Measurement and Verification:
• Addition or subtraction to the conditioned square footage of facilities. • Utility rates, billing days or degree days.
• Equipment changes or modifications.
• Changes in facility usage associated with daily occupancy times, occupancy levels and special events.

Savings Calculations
The calculations for the baseline energy consumption and post retrofit savings shall be completed in accordance with the industry guidelines set forth by IPMVP and methods indicated below. kWh Savings = (Capacity of HVAC Unit) x (Unit Efficiency) x (Stipulated Load Factor) x (Existing Annual Operating Hours – Proposed Annual Operating Hours)
Therm Savings = (Heating Capacity of HVAC Unit) x (Unit Efficiency) x (Stipulated Load Factor) x (Existing Annual Operating Hours – Proposed Annual Operating Hours)
Dollar Savings = [(kWh Savings) x (Average Utility Baseline $/kWh Rate)] + [(Therm Savings) x (Average Utility Baseline $/therm Rate)]
Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by ABS. The operational savings are stipulated and met upon the completed installation of the energy retrofit contract.

Pre-Retrofit Measurements
Existing operating hours and cooling/heating temperature setpoints for each HVAC unit or area will be obtained from current thermostats and/or Energy Management System.

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 control systems.

Commissioning
Commissioning shall consist of inspections and a final verification report. Inspections shall consist of:
• ABS shall include verification that the operating schedules, cooling and heating setpoints and controls sequences for the HVAC equipment connected to the new thermostats and/or energy management system are programmed as specified.

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Measurement and Verification Plan
IPMVP Option A: Retrofit Isolation, Key Parameter Measurement For Transformer Upgrades
M&V Procedure
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 transformer 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.

Stipulated Values
Operating Hours are stipulated for purposes of M&V. The hours of operation will match the hours the facilities were operating during the baseline period. The transformers are energized 24/7 year-round for all facilities. Stipulated values are agreed to by the Purchaser. The below table illustrates stipulated existing and proposed transformer losses and percentage loading based on extensive field measurements:

Adjustments
For this EEM, the following adjustments are allowed for purposes of Measurement and Verification:
• Utility rates, billing days or degree days.

Savings Calculations
The calculations for the baseline energy consumption and post retrofit savings shall be completed in accordance with the industry guidelines set forth by IPMVP and methods indicated below. kWh Saving = EXISTING [(No Load Losses + ((On % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) + [(No Load Losses + ((OFF % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) – PROPOSED [(No Load Losses + ((On % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) + [(No Load Losses + ((OFF % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*( Operation Hours) Dollar Savings = (kWh Savings) x (Average Utility Baseline $/kWh Rate) Operational Savings
The Purchaser will realize maintenance and operational savings resulting from the new system installations, extended warranties, and/or service agreements provided by ABS. The operational savings are stipulated and met upon the completed installation of the energy retrofit contract.

Commissioning
Commissioning shall consist of inspections and a final verification report. Inspections shall consist of:
• During construction, ABS shall maintain a detailed record of the types and quantities of fixtures retrofitted and fixtures installed in each facility. A post construction inspection is required by the responsible M&V party.

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Measurement and Verification Plan
IPMVP Option A: Retrofit Isolation, Key Parameter Measurement For Solar Photovoltaic System
M&V Procedure
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 system savings are stipulated for the purposes of M&V. Values are obtained from the expected solar kWh production outlined in the Solar Systems Attachment and assuming a NEM 3.0 tariff with the utility. The solar panel degradation factor (0.8%/year), avoided energy cost ($/kWh, based on the City’s rate schedule) and utility escalation rate (4%/year) are stipulated for the solar photovoltaic systems. Stipulated values are agreed to by Purchaser.

Savings Calculations
The calculations for the baseline energy consumption and post installation savings provided the basis for the overall financial viability of these EEMs. 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 and recording the results.

Dollar Savings: After recording kWh production, each site’s avoided energy cost ($/kWh), as shown in Utility Baseline, shall be used to determine dollar savings. Dollar Savings = (Annual kWh production) x (Avoided $/kWh) = Annual $ kWh 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 with a solar service provider for the term of the solar lease agreement. The City shall provide ABS access to monitoring to the existing solar systems.

Pre-Retrofit Measurements
Existing utility electrical energy (kWh) consumption as shown in the Utility Baseline Summary, as shown in Attachment 2.

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

Adjustments
For this EEM, the following adjustments are allowed for the purposes of Measurement and Verification:
• 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. • Changes in the solar PV system sizing, location and layout. • 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.
• Adjustment to the Guaranteed Production values for weather shall use local weather data as recorded during the corresponding period.
• To the extent that the System output is negatively impacted by casualty, government regulation and or restriction that is beyond the Contractor’s control to remedy within a reasonable time period, the Parties shall negotiate in good faith a modification of the Guaranteed Production.

Excused Production Losses
For this EEM, the following events are excused from production losses and any necessary adjustments are allowed for the purposes of Measurement and Verification:
• Force Majeure Events: Lost production from the beginning of a Force Majeure Event until production limiting factors caused by the Force Majeure Event have been remedied.

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• Grid Event: Lost production when a fluctuation in the Grid frequency or voltage causes the inverters or the System to disconnect from the Grid. The “Grid” is defined to be the system receiving power exported from the System. • Grid Outage: Lost production when a failure in the grid or Interconnection Infrastructure prevented energy from being exported from the solar facility. “Interconnection Infrastructure” means that utility-owned and maintained interconnection equipment (the substation including but not limited to transformers, switches, and protective relays) that is used to connect the Facility to the utility grid. Grid operator/owner ordered curtailments for any reason, other than an issue in the System, is a Grid Outage.
• Weather Events: Lost production from weather that limits or prevents safe operation of the solar facility including floods, snow, hurricanes, tornadoes, insolation-limiting wildfires, and volcanic activity. • Purchaser Caused: Lost production when System dc capacity is off-line due to outages attributable to Purchaser’s decision to perform or cause to be performed, any investigations, studies, operations, construction, installation and maintenance work or other activities deemed appropriate by ABS at its sole discretion.

Commissioning
Commissioning shall consist of inspections and a final Commissioning report. Commissioning of the new solar PV system shall include securing the Utility Interconnect agreement, proper alignment of the solar panels and functional testing.

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Measurement and Verification Plan
IPMVP Option C: Whole Facility
M&V Procedure
The Measurement and Verification (M&V) Plan following IPMVP Option C protocol is designed to evaluate the energy performance of the whole facility, not just individual EEMs. The energy performance is assessed through utility meters, wholefacility meters, or sub-meters. The measurement boundary encompasses either the whole facility or a major section of the facility where EEMs were installed. Option C determines the combined savings of all the EEMs installed at the facility and is monitored by the associated energy meter. Savings reported under this Option will include the positive or negative effects of any non-EEM changes made in the facility because whole-facility meters are used.

Adjustments
Adjustments will be computed from identifiable physical facts about the energy governing characteristics of equipment within the measurement boundary. Adjustments are used to express both pieces of measured energy data under the same set of conditions. Two types of adjustments are possible:
• Routine Adjustments are used to account for any energy-governing factors, expected to change routinely during the reporting period. Routine Adjustments are completed by developing a mathematical model of each meter’s energy-use pattern. Typically, the baseline model includes factors derived from regression analysis, which correlates energy to one or more independent variables such as occupancy, weather, and metering period length. Values of independent variables over the reporting period can be inputted into the baseline model to predict what the baseline energy consumption would have been had if no EEM’s were installed. • Non-Routine Adjustments are used to account for those energy-governing factors which are not usually expected to change, such as: the facility size, the design and operation of installed equipment, or the type of occupants. ABS will monitor these static factors for change throughout the reporting period. Adjustments will be based on industry standards and sound engineering principles as they pertain to the specific affected system.

Metering
Whole-facility energy measurements can use the utility’s meters. Utility meter data is considered 100% accurate for determining savings because this data defines the payment for energy. The energy supplier’s meter(s) may be equipped or modified to provide output that can be recorded by the facility’s monitoring equipment. Meter data can be hourly, daily or monthly whole-facility data.

Savings Calculations
The calculations for the baseline energy consumption and post retrofit savings shall be completed in accordance with the industry guidelines set forth by IPMVP and ASHRAE. The baseline period and reporting period should use complete years of continuous data (12, 24, or 36 months). The electrical consumption reduction of the facility (measured in kWh and/or kW) shall be reported as Savings, or Avoided Energy Use, in which the savings are stated under the conditions of the reporting period and determined by the following equation:

Energy Savings (Avoided Energy Use) = (Baseline Energy ± Routine Adjustments to reporting-period conditions ± Non-Routine Adjustments to reporting-period conditions) - Reporting-Period Energy The price schedule of the reporting period will be used to compute the “avoided cost” on a meter by meter basis. The price schedule will be obtained from the utility and will include all elements that are affected by metered amounts, such as consumption charges, demand charges, power factor, and demand ratchets. In the event of a significant decrease in energy prices, the price schedule used for savings reporting will be that which prevailed at the time of commitment to the investment.

Cost savings are determined by applying the appropriate rate / price schedule in the following equation:

Cost Savings (Avoided Cost) = Cost of Baseline Energy - Cost of Reporting-Period Energy

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Attachment 2
Utility Baseline Summary
Site Name Site Address Building Area
(sqft)
Annual Use
(kWh)
Annual Cost
($)
Blended Rate
($/kWh)
Aquatic Center 1025 W Las Palmas Ave 5,385 87,416 $9,272 $0.106 City Hall 1 Plaza Circle 17,000 268,320 $31,695 $0.118
Corporate Yard 16215 Baldwin Rd 20,750 48,401 $5,251 $0.108 Fire Station #1 344 W Las Palmas Ave 8,605 68,240 $7,851 $0.115 Fire Station #2 1950 Keystone Pacific Pkwy 10,832 92,680 $9,733 $0.105 Old Corporate Yard 420 S 4th St 7,930 22,944 $2,984 $0.130 Senior Center 1033 W Las Palmas Ave 8,465 88,071 $13,164 $0.149 WWTP South 14901 Poplar Ave 7,250 1,367,501 $164,969 $0.121 Well 8 Orange Ave 308,689 $39,504 $0.128
Well 9 636 Orange 605,200 $65,292 $0.108
Well 11 15804 Sycamore 473,284 $57,566 $0.122

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Attachment 3
Energy Efficiency and Renewable Energy Project Cashflow

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Submitted to:

City of Patterson
1 Plaza
Patterson, CA 95363
Attn: Sonia Delgado
Submitted by:

Alliance Building Solutions, LLC
12520 High Bluff Drive, Suite 345
San Diego, CA 92130
City of Patterson
Energy Efficiency Project
Feasibility Report
Exhibit F

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Table of Contents
Section 1: Executive Summary and Background .......................................2 Section 2: Utility Analysis..........................................................................4 Section 3: Site Walk Analysis & Scope of Work..........................................5 Section 4: Savings Overview & Calculation Methodology........................14 Section 5: Rebates & Incentives ..............................................................19 Section 6: Financial Analysis...................................................................20 Section 7: Project Implementation..........................................................23 Section 8: Savings Guarantee..................................................................26 Attachments ............................................................................................28

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Section 1: Executive Summary and Background
Executive Summary
The City of Patterson has partnered with Alliance Building Solutions, LLC (ABS) to evaluate opportunities to reduce energy consumption, modernize aging infrastructure, and implement facility upgrades through an Energy Savings Performance Contract (ESPC) project delivery aligned with California Government Code Section 4217 procurement. This assessment was conducted by ABS at no cost to the City and structured to deliver a comprehensive project, the cost of which is entirely offset over time by energy and operational savings.

The proposed project includes guaranteed savings which support third-party financing, allowing for immediate implementation without upfront capital investment from the City of Patterson. This financially viable, low-risk solution is aligned with the City’s operational and fiscal objectives.

This report summarizes the analyses conducted, the total recommended project cost, the projected savings to cover the cost, and identifies an Investment Tax Credit (ITC) amountthat is potentially available to the City.

Background
ABS began discussions with the City in July 2024 regarding energy infrastructure needs, project delivery models, and procurement options. In December 2024, the City executed a Letter of Authorization (LOA) engaging ABS to perform a no-cost energy savings assessment and project development. The intent of the LOA was to develop a guaranteed, self-funding project meeting the City’s technical, financial, and legal requirements and which could be brought forth for procurement under CA Government Code Section 4217.

Through citywide facility assessments at the direction of City staff, detailed equipment inventories, energy baseline analysis, and engineering development, ABS identified a portfolio of Energy Conservation Measures (ECMs) designed to reduce utility costs, improve asset performance, and support long-term sustainability goals.

The project has since been fully developed and meets or exceeds the parameters set forth in the LOA. The project scope and procurement have been discussed with the Mayor, City Council Members, City Manager, Deputy City Manager and Interim DPW Director, Finance Director, Public Works staff, and legal counsel.

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Next Steps
ABS and City staff intend to bring the project to City Council for approval at the March 17, 2026, city council meeting, which requires a public hearing notice posting by March 3, 2026.

ABS is working closely with the City’s legal team to finalize contracts for inclusion in the council agenda packet. Timely approval is critical to secure the identified solar ITC rebate of $785,914, as applicable deadlines and milestones are rapidly approaching.

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Section 2: Utility Analysis
The initial phase of the analysis involved a comprehensive review of the City’s utility costs and energy consumption to establish accurate pre-project energy usage baselines. ABS submitted utility releases to TID for the latest 12 months of energy usage data and 15 min interval data for analyses at the facility level to understand consumption patterns, demand characteristics, and cost drivers.

This data was evaluated in conjunction with site walk observations, operating schedules, and staff input to identify opportunities to reduce energy use without compromising safety, comfort, or facility utilization. The resulting baselines provided the foundation for quantifying energy savings opportunities, developing targeted energy conservation measures, and supporting the guaranteed savings structure for this project.

This process included the following:
• Total annual energy consumption
• Total annual energy cost
• Peak demand charges
• Utility rate and tariff evaluation
• Load profile analysis / Peak load
• Demand charge reduction
The baseline table below represents the sites where ABS is recommending scope of work.

The baseline period is June 2024 to May 2025.

Table 2.1: Utility Baseline
Site Name Site Address Area
(sqft)
Meter # Account # Rate
Schedule
Usage
(kWh)
Annual
Cost
Blended Rate
($/kWh)
Aquatic Center 1025 W Las Palmas Ave 5,385 E214614 9340117280 NNT-MC 87,416 $9,272 $0.106 City Hall 1 Plaza Circle 17,000 E209260 0440156867 MD 268,320 $31,695 $0.118 Corporate Yard 16215 Baldwin Rd 20,750 E205925 9342685035 NNT-MC 48,401 $5,251 $0.108 Fire Station #1 344 W Las Palmas Ave 8,605 E200335 0440156934 MC 68,240 $7,851 $0.115 Fire Station #2 1950 Keystone Pacific Pkwy 10,832 E206845 0440159911 NNT-MD 92,680 $9,733 $0.105 Old Corporate Yard 420 S 4th St 7,930 E393073 0440156924 MC 22,944 $2,984 $0.130 Senior Center 1033 W Las Palmas Ave 8,465 E218548 9340144712 NNT-MD 88,071 $13,164 $0.149 WWTP South 14901 Poplar Ave 7,250 E215165 9340122305 NNT-MD 1,367,501 $164,969 $0.121 Well 8 Orange Ave E211349 0440156899 MD 308,689 $39,504 $0.128 Well 9 636 Orange E203188 0440156914 MD 605,200 $65,292 $0.108 Well 11 15804 Sycamore E211337 0440156907 MD 473,284 $57,566 $0.122

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Section 3: Site Walk Analysis & Scope of Work
Site Walk Analysis
As part of project development, ABS conducted comprehensive site walk assessments at City-owned facilities to evaluate existing conditions, verify equipment, and identify opportunities to improve energy efficiency, infrastructure, and operations. These assessments, coordinated with City staff, informed engineering analysis, scope development, and financial modeling.

The ABS team reviewed facility layouts, operating schedules, and equipment performance, assessing the type, age, condition, and operation of existing energy systems. This information validated utility data and ensured proposed measures aligned with actual operational needs.

In parallel, ABS met with City staff, particularly Public Works and facilities teams, to gather input on maintenance challenges, failing equipment, operational priorities, and long-term capital planning. These findings enabled us to develop a comprehensive scope of integrated energy conservation measures designed to reduce energy use, address deferred maintenance, and enhance facility performance while meeting technical, financial, and long-term City objectives.

Table 3.1: Scope of Work Matrix

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Lighting Systems: Interior and Exterior
ABS reviewed existing fixture types, wattage, operating hours, and lighting levels to determine replacement needs. This included evaluation of lamp age, ballast type, and control functionality such as occupancy and daylight sensors.

Existing lighting throughout facilities ranged from incandescent, fluorescent, HPS, and HID technology, with some sites already having been fully or partially converted to LED. Power density was compared against current LED standards and applicable energy codes. Systems with older technology outside of LED, high operating hours, or inadequate lighting controls were identified by City Staff for replacement, totaling 1,518 lamp replacements and 729 fixture replacements. Any existing LEDs that had been retrofitted were excluded from this scope.

Below are the sites with recommended lighting upgrades:
• Aquatic Center
o Interior Lighting
• City Hall
o Interior Lighting
o Exterior Lighting
• Corporate Yard
o Interior Lighting
o Exterior Lighting
• Fire Station #1
o Interior Lighting
• Fire Station #2
o Interior Lighting
o Exterior Lighting
• Old Corporate Yard
o Interior Lighting
• Senior Center
o Interior Lighting
o Exterior Lighting
• WWTP South
o Interior Lighting
For additional inventory information, site details, and equipment specifications please see Attachment B: Lighting Systems.

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Mechanical Systems
Mechanical measures were evaluated based on system age, manufacturer efficiency ratings, operating conditions, and maintenance history to determine remaining useful life.

Equipment was compared against ASHRAE standards and current market efficiency levels.

This analysis included load conditions, runtime data, temperature control issues, and operational reliability. Systems approaching end-of-life, operating inefficiently, or requiring excessive maintenance were identified by Staff and/or ABS for replacement consideration.

Mechanical equipment site investigations focused on identifying major heating, cooling, and ventilation equipment, including package units, split systems, boilers, chillers, pumps, and associated distribution components. ABS engineers identified a wide range of manufacturers including McQuay, Trane, Marvair, Cooper, Bryant, York, and Carrier; with tonnage ranging from 3-50 Tons.

A total of 13 units have been recommended for replacement.

Below are the sites with recommended replacements:
• City Hall
o 2 Wall Mount and Package Unit
o 1 Air Cooled Condensing
o 1 Boiler
o 1 HWH Pump
• Corporate Yard
o 3 Split Condenser
• Fire Station #1
o 1 Package Unit
• Fire Station #2
o 1 Split Condenser
o 3 Package Unit
For additional inventory information, site details, and equipment specifications please see Attachment C: Mechanical Systems.

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Control Systems
Control systems were reviewed to determine the level of automation, scheduling effectiveness, and the ability to manage temperature setpoints and occupant comfort. The controls investigation evaluated existing building automation systems, thermostats, control panels, sensors, and communication infrastructure. Systems with limited control functionality, lack of central scheduling, or outdated platforms were identified as candidates for controls upgrades.

Staff requested to replace the existing proprietary Alerton system that currently requires significant ongoing costs for maintenance and service subscriptions. The recommended Pelican thermostat system is an open protocol system, eliminating these costs and providing mobile access.

A total of 22 units have been recommended for replacement.

Below are sites with recommended replacements:
• Aquatic Center
o 2 units
• City Hall
o 2 units
• Corporate Yard
o 3 units
• Fire Station #1
o 3 units
• Fire Station #2
o 3 units
• Senior Center
o 9 units
For additional inventory information, site details, and equipment specifications please see Attachment D: Control Systems.

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Electrical Systems
Transformers were evaluated based on age, loading profile, physical condition, manufacturer efficiency rating, and insulation performance. ABS reviewed peak demand loading and thermal performance based on interval data where available. Transformers that were undersized, oversized, or operating with outdated efficiency standards were identified for replacement.

One (1) unit has been recommended for replacement.

Below are the sites with recommended replacements:
• WWTP South
o 1 unit
For additional inventory information, site details, and equipment specifications please see Attachment E: Electrical Systems.

Building Envelope Systems
Roofing assessments were conducted to evaluate roof age, material type, condition, and remaining useful life, and particularly for suitability to accept a new solar array. The investigation, coupled with input from Staff, identified roofs nearing end-of-life or requiring replacement to support long-term facility integrity and to optimize installation of rooftop equipment, including solar photovoltaic systems. Roofing considerations were coordinated with other measures to ensure constructability and sequencing.

Staff provided helpful feedback confirming roofing leaks and needed replacements at City Hall and Fire Station 1.

Two (2) roofing replacements with a new membrane layover have been recommended.

Below are the sites with recommended replacements:
• City Hall
• Fire Station #1
For additional inventory information, site details, and equipment specifications please see Attachment F: Roofing Systems.

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Renewable Energy Systems
The ABS team conducted site walks and an analysis for potential solar and battery energy storage. Analysis included existing solar PV performance and compared generation to load profiles to determine efficiency and operational integrity. For new systems, we reviewed available site area, interconnection conditions, and utility tariff structures. The solar site investigation included evaluation of available roof and ground-mounted areas for photovoltaic installation. Factors assessed included roof condition, structural considerations, shading, orientation, available electrical interconnection points, and compatibility with existing electrical infrastructure.

The analysis focused on identifying viable locations for solar deployment and integration with the overall project scope. ABS performed technical and financial screening, considering current incentives, projected energy production, and lifecycle performance. It was identified that the existing solar system at the WWTP South was not operational, with no measurable site generation. (See NOTE below)
Seven (7) sites have been recommended for new solar installations, and two (2) sites have been recommended for a repowering measure.

Below are sites with recommended renewable measures:
• City Hall – 24.2 kW
• Fire Station #1 – 21.7 kW
• Fire Station #2 – 39 kW
• Old Corporate Yard – 13.3 kW
• Well 8 – 177 kW
• Well 9 – 153.7 kW
• Well 11 – 139 kW
• WWTP South – 584 kW
o Repowering existing system that currently is not producing power • WQCF North – 23 kW
o Repair 7 panel strings
For additional information, site details, layouts and equipment specifications please see Attachment G: Renewable Energy Systems.

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NOTE: Regarding the repowering measure for solar at WWTP South The existing solar array at WWTP South was installed as part of a previous energy savings project that is still being paid off. This system components are beyond their warranty coverage, contain obsolete technology, and are not covered by a performance/savings guarantee.

When ABS audited the facility, the central inverter at WWTP South was offline and was inoperable for about 7 months. From the utility data received from TID, the failure began in May 2025.

ABS conducted an exhaustive review of the situation and considered numerous avenues of remediation. Our solar leadership has over 25 years each in commercial solar experience and are extremely well-qualified to evaluate options and recommend the best path forward for the City based on our considered opinion and experience.

The proposed rejuvenation of the system – paid for by savings – avoids extensive capital outlays to repair obsolete equipment in an obsolete system configuration.

Problem Assessment:
• The existing array at WWTP South is configured so that ALL of the solar power produced – which is DC Voltage – is collected and channeled through one central inverter. The inverter is designed to convert DC to AC Voltage for compatibility with grid power, either to offset consumption at WWTP South or to feed back into TID. • As a result of the central inverter failure, there was no AC power being delivered from the solar array to either offset ANY of the energy consumption at WWTP South or to deliver power back to TID.
• Given the age of the inverter, the fact that it is no longer manufactured, and the vulnerability inherent in the single-point-of-failure configuration, it is reasonably expected that a subsequent failure will be catastrophic and irreparable, or at the very least wildly expensive as an emergency repair, or simply left in a non-functioning state, which would not only eliminate any energy offset but could present an active life/safety/fire hazard.
• This “down” condition is indicative of an inverter that is beyond its useful life and beginning to fail. This assessment was apparently reiterated by an independent third party that was asked to review the array recently as well.

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Potential Remedies – Capital Required
• Repair existing or Replace in kind:
o The inverter is beyond its warranty period – 10 years from 2013 o The specific inverter is no longer produced
o The original manufacturer has been sold twice. Parts and service are reportedly not well supported and very costly when available
o A central inverter design scenario for an array of this size is not recommended. • When the existing inverter inevitably fails again, the result will be long periods of downtime while waiting for service that will result in furtherlosses of energy production/$ savings
o Repairing the existing inverter would be a step backward – good money after bad o Replacing the inverter in kind would be difficult – if not impossible - to match the performance parameters and very expensive to install.

Remedies – NO Capital Required
• ABS’ recommended and proposed solution is to install multiple “string” inverters that mitigate the risk of full system failure.
o This solution is included in the project scope with no upfront capital required and paid by guaranteed savings.
o The recommended inverters come with a 20-year warranty which matches the duration of the financing of this project.
o ABS will include several spare inverters so that in the event of an inverter failure, the array can be brought back online quickly
Conclusion
The existing array is a ticking time bomb that will result in lost energy savings and significant out of pocket capital expense:
• First and foremost, there is no savings guarantee for the city on the existing Chevron array. • The central inverter is out of warranty and past its useful life. • The inverter is no longer made, and the original manufacturer has been sold at least once, possibly twice.
• Some parts may be available, but parts and repairs will undoubtedly be expensive and are NOT free or covered by any warranty or guarantee.
• If the inverter goes down again, the entire array will not send power to TID and therefore will not offset the usage at WQCF

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• Other components within the array – combiner boxes, wiring harnesses, etc. are also 13 years old and weather-worn.
• The array was down for 7 months – not a communication error – it was not sending kWh to TID.
• The panels are no longer made – the broken panels cannot be replaced. • The broken panels are negatively impacting production and present a potential life/safety/fire hazard.

The proposed solution at WQCF South modernizes the system at no upfront cost to the City, provides resiliency, and its savings are guaranteed:
• Eliminates the single point of failure
• The savings are guaranteed for the duration of the contract. • The inverters are warranted for 20 years – same as the financing term • We adjusted the cash flow analysis to accommodate for the payoff of the existing loan for the Chevron project.
• The project modernizes the WQCF South, including:
o Full investigation of every string, conductor, connector and every combiner box.
▪ This includes thermography of the modules, connectors, and switchgear while operating
▪ Performing an Insulation Resistance Test (Megger) of all conductors prior to re-energization
▪ An I-V Curve analysis of each string to identify all poorly performing modules.
o New state-of-the-art inverters – replacement of the single inverter with 15 individual string inverters
o New switchgear equipment
o New transformer
o New wiring as required
o Removal of the old inverter
o Rearrangement of existing panels to remove potential fire/life/safety issues and to optimize the output of the array.
o A full commissioning of the completed repowering
• Simply stated, the proposed upgrade represents production and savings certainty, whereas the existing array represents production and cost uncertainty.

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Section 4: Savings Overview & Calculation Methodology
Savings Overview
Projected energy and cost savings for the identified measures were developed using a combination of field-verified equipment inventories, historical utility data, and engineering calculations consistent with industry-standard practices. A pre-project energy baseline was established for each facility using historical electricity data, as appropriate for operational and seasonal variability. Savings for individual measures were calculated by comparing baseline equipment performance to proposed equipment efficiencies, control strategies, and operating assumptions derived from site walk observations and staff input. The total projected savings were calculated using current utility rates, and applicable operational and maintenance savings. All savings factors have been incorporated into the guarantee and will be verified in accordance with the agreed-upon Measurement and Verification plan.

Lighting Systems
Lighting savings were calculated by comparing the connected load and operating hours of existing lighting systems to the proposed high-efficiency fixtures identified during site walks.

Existing lamp wattages and fixture quantities were field-verified, and operating schedules were established based on facility use and staff input. These savings reflect reduction in electrical consumption resulting from improved lamp and fixture efficiency. The basis of the savings is from the delta in watts from baseline to post retrofit multiplied by the respective hours of operation.

A sample calculation is as follows:
kWh Savings = (baseline fixture wattage)(baseline hours) - (post-retrofit fixture wattage)(post-retrofit hours) Mechanical Systems
Mechanical equipment savings were calculated using engineering-based comparisons of existing equipment performance to proposed high-efficiency systems and optimized operating strategies. Equipment capacities, efficiencies, and operating characteristics were verified during site assessments, and baseline energy consumption was developed using historical utility data and facility operating profiles. Savings estimates account for improved equipment efficiency, optimized control sequences, and reduced runtime where applicable.

Calculations reflect anticipated performance under normal operating conditions and are incorporated into the project’s guaranteed savings framework.

The basis of the savings is the electrical load of the baseline HVAC unit multiplied by the baseline hours of operation minus the electrical load of the post-retrofit HVAC unit

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multiplied by the post-retrofit hours of operation. The savings come from overall unit efficiency and part-load efficiency improvements with either a modulating energy usage and/or multiple steps versus on/off. This component of load efficiency is quite often where the bulk of the energy savings result from.

An example of a sample calculation for HVAC replacement is as follows:
kWh Savings = [(base unit tons)(base efficiency kW/ton)(base avg LF)(avg DC) + (base hp supply fan)(conversion kW/hp)(base supply fan avg LF)( base supply fan avg DC)](baseline hours) - [(post-retrofit unit tons)( postretrofit efficiency kW/ton)(post-retrofit avg LF)(post-retrofit avg DC) + (post-retrofit hp supply fan)(conversion kW/hp)(post-retrofit supply fan avg LF)(post-retrofit supply fan avg DC)](post-retrofit hours) Control Systems
Energy savings associated with building controls were calculated based on reductions in equipment runtime, improved scheduling, and optimized system operation enabled by enhanced control strategies. Existing control capabilities were assessed during site walks, and proposed improvements were evaluated for their impact on HVAC and lighting operation. Savings estimates reflect reduced energy use resulting from improved occupancy scheduling, temperature setpoint management, and system optimization, and are based on industry standard engineering methodologies and operational assumptions.

The basis of the savings is the electrical load of the baseline HVAC unit multiplied by the baseline hours of operation minus the electrical load of the post-retrofit HVAC unit multiplied by the post-retrofit hours of operation. The savings are very similar to that from the HVAC replacement with the exception of the energy consumption of the HVAC does not change for each point of the part-load curve. The savings result from optimized sequence of operation, i.e., the hours are optimized for the OSA conditions and the fine-tuning of the temperature set-point results in the HVAC unit operating at a point lower in its load curve.

Electrical Systems
Transformer energy savings were calculated by evaluating reductions in no-load and loadrelated losses achieved through replacement of existing transformers with higher-efficiency units. Existing transformer sizes, loading conditions, and operating characteristics were reviewed during the site investigation.

The basis of the savings is the electrical load of the baseline transformer multiplied by the annual hours of operation of 8,760 hours minus the electrical load of the post-retrofit transformer multiplied by the post-retrofit annual hours of operation of 8,760 hours. The energy savings attributed to converting to a high efficiency transformer are from the core losses and from coil losses. Coil loss is relatively constant, independent of load on the

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transformer; whereas coil losses will increase based upon the square of the current as the load on the transformer increases.

An example of a sample calculation for transformer replacement is as follows:
kWh Saving = EXISTING [(No Load Losses + ((On % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) + [(No Load Losses + ((OFF % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) – PROPOSED [(No Load Losses + ((On % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*(Operation Hours) + [(No Load Losses + ((OFF % Loading)^2*(Full Load Losses-No Load Losses))) / 1000]*( Operation Hours)
Renewable Energy Systems
Solar energy production and associated savings were modeled using industry standard software tools, including Energy Toolbase and HelioScope. Modeled annual energy production reflects local solar resource data, system design parameters, and anticipated performance losses. Energy production offsets grid-purchased electricity and was valued using current utility rates to determine projected cost savings. Solar production is incorporated into the overall project savings and guarantee.

The solar production and associated cost offset as a result of installing solar PV is quantified by looking at each hour of a year and comparing the energy load of the facility relative to the energy produced by the solar PV. This solar PV is then put relative to the cost of power to determine the actual cost offset.

Total Project Savings
For all the energy measures, once the kWh savings is calculated, it is converted to dollar savings by multiplying by the average utility rate for that meter.

Dollar Savings = (kWh Savings) x (Average Utility Baseline $/kWh Rate) The tables and graphs below give a breakdown of the savings for each site and measure.

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Table 4.1: Utility Consumption Savings Summary
Figure 4.1: Utility Consumption Comparison (Baseline vs Post Implementation) Site Baseline Consumption
(kWh)
Utility Savings
(kWh)
Year 1 Consumption
(kWh)
Aquatic Center 87,416 4,253 83,163
City Hall 268,320 128,346 139,974
Corporate Yard 48,401 14,347 34,054
Fire Station #1 68,240 48,605 19,635
Fire Station #2 92,680 90,414 2,266
Old Corporate Yard 22,944 23,538 -594
Senior Center 88,071 21,789 66,282
WWTP South 1,367,501 1,028,676 338,825
Well 8 308,689 299,093 9,596
Well 9 605,200 257,116 348,084
Well 11 473,284 237,566 235,718
Total 3,430,746 2,153,743 1,277,003
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Baseline vs Year 1 Consumption (kWh)
Baseline Consumption
(kWh)
Year 1 Consumption
(kWh)

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Table 4.2: Utility Consumption Savings Breakdown
Table 4.3: Utility Cost Savings Breakdown
Site Lighting Mech. & Controls Electrical Renewable Total Aquatic Center 3,390 863 - - 4,253
City Hall 33,358 52,012 - 42,976 128,346
Corporate Yard 12,069 2,278 - - 14,347
Fire Station #1 4,892 5,692 - 38,021 48,605
Fire Station #2 12,775 12,018 - 65,621 90,414
Old Corporate Yard 1,629 - - 21,909 23,538
Senior Center 17,471 4,318 - - 21,789
WWTP South 3,555 - 4,395 1,020,726 1,028,676
Well 8 299,093 299,093
Well 9 - - - 257,116 257,116
Well 11 - - - 237,566 237,566
Total 89,139 77,181 4,395 1,983,028 2,153,743
Consumption Savings (kWh)
Site Lighting Mech. & Controls Electrical Renewable Total Aquatic Center $389 $99 - - $488
City Hall $4,262 $6,645 - $5,151 $16,058
Corporate Yard $1,416 $267 - - $1,683
Fire Station #1 $609 $708 - $4,035 $5,352
Fire Station #2 $1,451 $1,365 - $6,963 $9,780
Old Corporate Yard $229 - - $2,324 $2,553
Senior Center $2,824 $698 - - $3,523
WWTP South $533 - $659 $116,024 $117,217
Well 8 $27,987 $27,987
Well 9 - - - $25,958 $25,958
Well 11 - - - $25,028 $25,028
Total $11,714 $9,783 $659 $213,472 $235,628
Utility Cost Savings ($)

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Section 5: Rebates & Incentives
Inflation Reduction Act - ITC Rebate
The Inflation Reduction Act expanded access to the federal Investment Tax Credit (ITC) for tax-exempt entities, including municipalities, through a Direct Pay (“Elective Pay”) mechanism. Under this provision, the City of Patterson may receive a cash payment from the U.S. Treasury equal to the ITC value for qualifying solar photovoltaic projects, despite having no federal tax liability. These funds are paid directly to the City and may be used at the City’s discretion.

Participation in the Direct Pay program is subject to eligibility requirements, deadlines, and milestone-based compliance, including project authorization, equipment procurement, and placed-in-service timelines. Delays in project approval or execution may impact incentive eligibility. This project is eligible for an ITC rebate of $785,914.

To maintain eligibility, project construction must begin by July 4, 2026, defined as having steel and racking installed for the solar arrays. Approval of the project on March 17 along with cooperation from the City of Patterson would allow sufficient time to complete required tasks, including contract execution, notice to proceed, engineering, permitting, soil testing, equipment procurement, and installation.

Utility Incentive with Turlock Irrigation District
Turlock Irrigation District (TID) offers a range of energy efficiency rebates and incentive programs for municipal customers aimed at reducing electricity demand and improving system efficiency. Incentives are generally structured to offset a portion of incremental project costs and are subject to TID program guidelines, pre-approval requirements, and available funding. This project is eligible for an incentive of $20,110, based on the following criteria set forth by the TID incentive program:
o Commercial lighting
▪ $0.10/kWh saved in the first year.
o Transformers
▪ Custom incentive of $0.08/kWh saved.
o Mechanical / HVAC
▪ Per unit rebate of $500/unit for the units 5 tons and below / Per ton rebate of $120/ton for the units above 5 tons.
*These rebates are reflected in the financial cash flow that has been presented to staff and in the Financial Analysis section below.

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Section 6: Financial Analysis
The financial analysis for this project was developed to confirm that the recommended scope of work is economically viable and fully supported by guaranteed savings. Project implementation costs, equipment, installation, and associated soft costs are all included within this proposal. Utility rates, financing terms, and contract duration were incorporated to model annual project costs and savings over the life of the project. The analysis demonstrates that guaranteed savings are sufficient to fund project costs, providing budget neutrality to the City, while minimizing financial risk and avoiding the need for an upfront capital investment.

The project would be financed using a Tax-Exempt Lease Purchase (TELP) agreement. It allows public agencies to acquire essential equipment and infrastructure at low interest rates. TELP is the most widely used financing structure for public agencies and serves as an effective alternative to traditional debt financing (such as bonds or loans).

Currently the City pays for the following operation and maintenance contracts that would be eliminated through this ABS project:
• Alerton Controls:
o Annual Cost - $12,889
• Engie Solar O&M Agreement:
o PV Module Cleaning:
▪ Annual Cost: $15,378
▪ Annual Escalator: 5%
o Monitoring Services:
▪ Annual Cost: $4,380
▪ Annual Escalator: 4%
The current Solar O&M agreement is only for cleaning once per year. The City desires to have cleaning and preventative maintenance conducted twice per year to ensure the system is working efficiently. Thus, in just the first year the City would save $52,921 on these maintenance agreements as shown in the project cash flows.

ABS estimates that it will cost the City $15,000 annually for the solar O&M on the existing and new solar PV arrays. Thus, saving the City $37,921 in maintenance agreements costs in the first year.

The Solar ITC and TID Rebate provide additional savings to the city that ABS has not factored into the project payments. The rebates will appear as unencumbered, non-earmarked cash to the general fund.

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The project has a total implementation price of $4,794,785. This price is fixed as ABS has a “no change order” policy. This provides the City with a guaranteed price and protection against mid-project change order cost increases.

The project has an estimated total gross savings of $16,510,750. Even after factoring interest expense, the project is cash flow positive every year and is expected to provide the city with $7,031,613 in net savings.

The tables below show the project cash flow and its parameters in detail.

Table 6.1: Project Cash Flow Parameters
- WQCF South savings start after the Bank of America lease is paid off in April 2029 (year 3). - WQCF South savings is counted only for the second half of 2029 (year 3). - Cost of Issuance is $29,900
Utility Escalator 4.0%
O&M Savings Escalator 4.0%
Inflation 4.0%
Solar Annual Degradation 0.80%
Financing Interest Rate 4.88%
Financing Term 20 Years
Cash Flow Parameters

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Table 6.2: Project Cash Flow
Timeline Utility
Savings
O&M
Savings
Existing
Solar O&M
Cost
Savings
Existing
Controls
O&M Cost
Savings
TID Rebate Solar ITC
Total
Annual
Savings
M&V
Payment
Solar O&M
Payment
Financing
Payment
Total
Annual
Payments
Net Annual
Cash Flow
Net
Cumulative
Cash Flow
Year 0 $24,377 $12,116 $36,494 $0 $36,494 $36,494
Year 1 $121,887 $60,582 $39,516 $13,405 $20,110 $255,500 $0 $15,000 $235,445 $250,445 $5,055 $41,549 Year 2 $125,933 $63,005 $41,406 $13,941 $785,914 $1,030,199 $0 $15,600 $235,445 $251,045 $779,154 $820,703 Year 3 $195,223 $65,525 $43,384 $14,498 $318,631 $0 $16,224 $264,908 $281,132 $37,499 $858,202 Year 4 $261,840 $68,147 $45,458 $15,078 $390,523 $20,000 $16,873 $316,150 $353,023 $37,500 $895,703 Year 5 $270,342 $70,872 $47,633 $15,681 $404,529 $20,800 $17,548 $328,682 $367,030 $37,499 $933,202 Year 6 $279,123 $73,707 $49,912 $16,309 $419,050 $21,632 $18,250 $341,668 $381,550 $37,501 $970,703 Year 7 $288,189 $76,656 $52,301 $16,961 $434,107 $22,497 $18,980 $355,130 $396,607 $37,500 $1,008,202 Year 8 $297,552 $79,722 $54,805 $17,639 $449,719 $23,397 $19,739 $369,082 $412,218 $37,501 $1,045,703 Year 9 $307,222 $82,911 $57,430 $18,345 $465,907 $24,333 $20,529 $383,546 $428,408 $37,500 $1,083,203 Year 10 $317,207 $86,227 $60,182 $19,079 $482,694 $25,306 $21,350 $398,538 $445,194 $37,500 $1,120,703 Year 11 $327,518 $89,676 $63,066 $19,842 $500,102 $26,319 $22,204 $414,080 $462,602 $37,500 $1,158,203 Year 12 $338,167 $93,263 $66,090 $20,636 $518,155 $27,371 $23,092 $430,192 $480,655 $37,500 $1,195,703 Year 13 $349,164 $96,994 $69,259 $21,461 $536,878 $28,466 $24,015 $446,896 $499,378 $37,500 $1,233,204 Year 14 $360,520 $100,873 $72,582 $22,320 $556,295 $29,605 $24,976 $464,214 $518,795 $37,500 $1,270,704 Year 15 $372,248 $104,908 $76,065 $23,212 $576,435 $30,789 $25,975 $482,170 $538,934 $37,500 $1,308,204 Year 16 $384,361 $109,105 $79,717 $24,141 $597,323 $32,021 $27,014 $500,788 $559,823 $37,500 $1,345,704 Year 17 $396,869 $113,469 $83,545 $25,106 $618,989 $33,301 $28,095 $520,094 $581,490 $37,499 $1,383,203 Year 18 $409,787 $118,008 $87,558 $26,111 $641,464 $34,634 $29,219 $540,112 $603,964 $37,500 $1,420,703 Year 19 $423,128 $122,728 $91,765 $27,155 $664,777 $36,019 $30,387 $560,870 $627,276 $37,501 $1,458,204 Year 20 $436,906 $127,637 $96,176 $28,241 $688,961 $37,460 $31,603 $575,904 $644,966 $43,995 $1,502,199 Year 21 $403,925 $100,800 $504,725 $32,867 $32,867 $471,858 $1,974,057 Year 22 $416,732 $105,648 $522,381 $34,182 $34,182 $488,199 $2,462,256 Year 23 $429,946 $110,731 $540,677 $35,549 $35,549 $505,128 $2,967,384 Year 24 $443,579 $116,060 $559,639 $36,971 $36,971 $522,668 $3,490,052 Year 25 $457,644 $121,647 $579,291 $38,450 $38,450 $540,841 $4,030,894 Year 26 $472,155 $127,505 $599,660 $39,988 $39,988 $559,672 $4,590,566 Year 27 $487,126 $133,647 $620,773 $41,587 $41,587 $579,186 $5,169,752 Year 28 $502,573 $140,086 $642,659 $43,251 $43,251 $599,408 $5,769,160 Year 29 $518,509 $146,838 $665,346 $44,981 $44,981 $620,366 $6,389,526 Year 30 $534,950 $153,917 $688,867 $46,780 $46,780 $642,087 $7,031,613 Totals $10,954,703 $1,816,132 $2,534,730 $399,162 $20,110 $785,914 $16,510,750 $473,950 $841,274 $8,163,913 $9,479,137 $7,031,613 Project Savings Project Payments

8.1 Packet Pg. 539
Energy Project Feasibility Report
City of Patterson
March 17th 2025
23 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Section 7: Project Implementation
Project implementation will be delivered through a collaborative and structured process designed to minimize disruption to City operations while ensuring quality, safety, and performance. The implementation phase includes detailed design development, equipment procurement, construction planning, installation, commissioning, and coordination with City staff at each facility.

Planning and Kickoff:

At project initiation, ABS conducts comprehensive kickoff meetings with City leadership, facilities, and maintenance staff to confirm goals, priorities, and expectations. These meetings establish a shared understanding of project objectives, identify key stakeholders, and define communication channels. The outcome is a clear roadmap that aligns technical priorities with educational and operational goals.

Collaborative Design Development:

Throughout design development, ABS maintains continuous collaboration with staff. We hold regular weekly progress meetings to review scope, equipment specifications, and potential design alternatives, always incorporating staff input and preferences. Using advanced modeling and simulation tools, we illustrate the energy, cost, and performance impacts of distinct options, enabling the facility staff team to make fully informed decisions.

All revisions are documented in Procore, ensuring transparent version control and immediate access to the latest design information.

Implementation and Ongoing Coordination:

During construction, ABS provides weekly coordination meetings and field reports to update staff on schedule, cost, and quality milestones. We proactively address design refinements or unforeseen site conditions through documented change-management procedures, keeping staff informed and in control of all decisions.

Training, Transition, and Post-Project Support:

Upon completion, ABS develops comprehensive operations and maintenance (O&M) plans tailored to City facilities. We conduct direct training sessions and workshops for facility/maintenance personnel to ensure they are confident operating new systems and technologies. We also provide digital documentation and cloud-based resources—including as-built drawings, submittals, and warranty records—stored within the project portal for ongoing access.

8.1 Packet Pg. 540
Energy Project Feasibility Report
City of Patterson
March 17th 2025
24 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Continuous Communication and Accountability:

ABS’s cloud-based collaboration platforms enable real-time communication, document sharing, and feedback throughout and after project completion. This ensures that all stakeholders remain informed and engaged, promoting accountability and performance continuity.

Please see the table and figure below for project installation schedule, assuming a March 17th city council approval.

Table 7.1: Project Implementation Schedule (Summary)
Milestones Estimated Date
City Council Approval March 17, 2026
Notice to Proceed April 17, 2026
Engineering May 25, 2026
City Permits June 8, 2026
Solar Construction Begins June 30, 2026
Project Installation Completion May 20, 2027
Utility Interconnections (PTO) June 30, 2027
Final Review and Training August 31, 2027
Project Closeout September 30, 2027

8.1 Packet Pg. 541
Energy Project Feasibility Report
City of Patterson
March 17th 2025
25 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Figure 7.2 (a): Project Implementation Schedule (Energy)

8.1 Packet Pg. 542
Energy Project Feasibility Report
City of Patterson
March 17th 2025
26 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Figure 7.2 (b): Project Implementation Schedule (Solar)

8.1 Packet Pg. 543
Energy Project Feasibility Report
City of Patterson
March 17th 2025
27 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Section 8: Savings Guarantee
ABS provides a contractual savings guarantee that ensures the project will meet the stated savings values. This provides the city protection against savings shortfall in any year and ensures that the project is cash flow positive annually. If verified savings fall short of the guaranteed amount, ABS is contractually obligated to reimburse the City for the difference.

This structure provides budget certainty, protects public funds, and allows the City to implement needed facility improvements with confidence that the project will perform as promised.

Every year, ABS will review the city’s monthly utility bills, solar production data, and conduct a monthly analysis. The analysis will be conducted for every meter included in this project.

The city will annually receive a detailed Measurement and Verification Report with the analysis and all supporting data.

Through taking a conservative approach to calculate annual savings, on past projects ABS has exceeded savings by 20-200%. Any additional savings outside of projected values will go directly to the City thus providing additional general fund relief. ABS has never fallen short on its savings guarantee on past projects, exemplifying the high-quality approach to its projects.

On this project, ABS will provide the City with a savings guarantee and a Measurement and Verification Report at no charge for the first 3 years following project completion.

The guarantee is based on a clearly defined pre-project energy baseline, standard engineering assumptions, and an agreed-upon Measurement and Verification (M&V) plan.

Additional information on the savings guarantee is provided within the “Measurement and Verification Agreement”, which has been submitted to City staff.

8.1 Packet Pg. 544
Energy Project Feasibility Report
City of Patterson
March 17th 2025
28 | P a g e
Alliance Building Solutions, LLC
www.alliance-usa.com
Attachments
Attachment A: Scope of Work
Attachment B: Lighting Systems
Attachment C: Mechanical Systems
Attachment D: Control Systems
Attachment E: Electrical Systems
Attachment F: Building Envelope Systems
Attachment G: Renewable Energy Systems

8.1 Packet Pg. 545
Site System Size (W-DC) Solar Cost Solar Savings (kWh) Solar Savings ($) Solar O&M Cost ITC Energy Cost Energy Savings (kWh) Energy Savings ($) Total Cost by Site Aquatic Center - $0.00 - - $1,600 - $15,108 4,253 $488 $15,108 Senior Center - $0.00 - - $1,800 - $69,552 21,789 $3,523 $69,552 Corporate Yard - $0.00 - - $750 - $208,037 14,347 $1,683 $208,037 WWTP North - $0.00 - - $2,250 - $0.00 - - $0
City Hall 24,200 $114,299 42,976 $5,151 $400 $38,862 $824,265 85,370 $10,907 $938,564 Fire Station #1 21,780 $104,286 38,021 $4,035 $600 $35,457 $170,581 10,584 $1,317 $274,867 Fire Station #2 39,040 $183,610 65,621 $6,963 $350 $62,427 $190,480 24,793 $2,816 $374,090 Old Corporate Yard 13,310 $64,045 21,909 $2,324 $250 $21,775 $2,767 1,629 $229 $66,812 Well 8 177,120 $713,819 299,093 $30,271 $950 $242,698 $0.00 - - $713,819 Well 9 153,720 $590,510 257,116 $25,958 $850 $200,774 $0.00 - - $590,510 Well 11 139,080 $540,941 237,566 $25,028 $800 $183,920 $0.00 - - $540,941 WWTP South 584,100 $968,731 1,020,726 $116,024 $4,400 $0 $33,753 7,950 $1,193 $1,002,484 Total 1,152,350 $3,280,241 1,983,028 $215,754 $15,000 $785,913 $1,514,543 170,715 $22,156 $4,794,784 ABS Energy Efficiency Project - Exhibit G
Cost/Savings Breakdown by Site 3/2/26
Packet Pg. 546
4 Project Scope-Exhibit H
Lighting HVAC / Mechanical Controls Renewables Electrical Envelope Interior LED
Lighting
Upgrades
Exterior LED
Lighting
Upgrades
Split Condenser
Replacement
(1 Ductless)
Wall Mount &
Package Unit
Replacement
Air-Cooled
Condensing Unit
Replacement
Boiler &
HHW Pump
Replacement
HVAC
Controls Solar Transformer Re-Roofing
Aquatic Center
1025 W Las Palmas (2)
City Hall
1 Plaza Circle
(2)
Both (1) (2) (2)
Corporate Yard
16215 Baldwin Rd (3) (3)
Fire Station #1
344 W Las Palmas Ave
(1)
Package (3)
Fire Station #2
1950 Keystone Pacific Pkwy (1) (3) Package (3)
Old Corporate Yard
420 S 4th Street
Senior Center
1033 W Las Palmas (9)
Well 8
301 Orange
Well 9
636 Orange
Well 11
15804 Sycamore
WQCF South
14901 Poplar Ave (1)
WQCF North
14901 Poplar Ave
Total 8 Sites 4 Sites 4 Units 6 Units 1 Unit 2 Units 22 Units 9 Sites 1 Unit 2 Sites *The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Packet Pg. 547
19 Preliminary Schedule – Energy Infrastructure Exhibit I Packet Pg. 548
18 Preliminary Schedule - Solar Exhibit J
Packet Pg. 549
Financing Proposal
City of Patterson, California
Energy and Solar Project Financing
Revision to Proposal Dated: February 20, 2026
Exhibit K

8.1 Packet Pg. 550
City of Patterson, CA – Financing Proposal
P a g e | 1
To:

Sonia Delgado
Interim Public Works Director
City of Patterson
1 Plaza, Patterson, CA 95363
Dear Sonia,
Metro Futures, Inc. (MFI) is pleased to submit to the City of Patterson a financing proposal for its energy and solar project financing. Below are the terms and conditions for the City’s consideration:

Financing
Amount
Interest
Rate Term No. of Semi-Annual Payments
Periodic
Payment
Total
Payments
$4,824,685.00 4.880% 20 Years 40 See
Amortization $8,163,912.92
Lessee: City of Patterson, California
Lessor: Metro Futures, Inc., together with its successors and/or assigns Financing Structure: Tax-Exempt Non-Appropriation Lease Purchase Agreement. The Lessee shall appropriate the annual lease payment due in its annual budget.

Payment Structure: Lease payments shall be due semi-annually in arrears. Interest shall be calculated on a 30/360-day convention. Please see the amortization schedule in the Appendix for further details.

Use of Proceeds: Energy and Solar Project
Security: During the term of the Lease Purchase Agreement, Lessee shall retain title to the equipment. However, the Lessor or Assignee shall be secured by a first-priority lien on the equipment financed via a UCC-1 filing.

Non-Bank Qualified: The Lessee expectsto borrow more than $10,000,000 in tax-exempt debt in the current calendar year. Thus, the financing shall be non-bank qualified tax-exempt financing under the Internal Revenue Code.

Financing Documents: Lessor’s legal counsel shall prepare the lease documents according to Federal and California State statutes. Lessee shall be responsible for a $5,000 legal fee that will be paid to MFI at closing. The legal fee has been included in the financing amount and will be paid out of the escrow account.

Opinion of Counsel: Lessee’s legal counsel shall provide Lessor an Opinion of Counsel for the financing. The opinion shall, among other things, confirm the due formation/organization and existence of Lessee and the validity of the financing.

8.1 Packet Pg. 551
City of Patterson, CA – Financing Proposal
P a g e | 2
Tax Opinion: Lessee shall engage tax counsel to provide a tax opinion, which shall confirm the tax-exempt status of the financing.

City Council Approval: The Lessee shall provide Lessor with a resolution or ordinance, acceptable to Lessor and approved by the City Council approving the financing and authorizing a designated individual to execute all necessary documents. A sample resolution will be provided to the Lessee upon request.

Insurance: Lessee shall provide Lessor with insurance certificate necessary to demonstrate that property and liability coverage exceeding the financing by $1,000,000. Additionally, the Assignee shall be listed as Certificate Holder and Loss Payee on the proof of coverage.

CDIAC: The Lessor will file a Report of Proposed Debt Issuance and Report of Final Sale with the California Debt and Investment Advisory Commission at no additional cost (not to exceed $5,000) to the Lessee.

Funding Methodology: The funds will be wired into a non-interest bearing escrow account for the benefit of the Lessee. The funds in escrow shall only be used to pay for the approved equipment/project. Any excess funds in escrow can only be used to make scheduled lease payments or purchase additional equipment. Any additions or changes to the equipment must be approved by the Lessor or Assignee at their sole discretion. MFI has assumed a funding date of April 17, 2026. The escrow agent will be selected by MFI.

Prepayment Option: The Lessee can prepay the lease in full on any scheduled lease payment date where there is an applicable concluding payment. The Lessee will pay the then scheduled lease payment and the applicable concluding payment.

Rate Lock: The Lessor can lock the interest rate once the Lessee has a Council Agenda date and a firm funding date.

Proposal Expiration: This financing proposal is valid for 60 days. If funding does not take place within 60 days, then the Lessor can adjust the terms and conditions to reflect market and/or credit changes.

8.1 Packet Pg. 552
City of Patterson, CA – Financing Proposal
P a g e | 3
Appendix: Revised Amortization Schedule for Financing Proposal Dated February 20, 2026 Lessee: City of Patterson, CA
Lessor: Metro Futures, Inc.

Lease Term: 20 Years
Interest Rate: 4.880%
Payment
Number Date Due Total Rental Payment Due
Interest
Component
Principal
Component
Concluding
Payment
0 4/17/2026
1 10/17/2026 $117,722.31 $117,722.31 $0.00 Non-Callable 2 4/17/2027 $117,722.31 $117,722.31 $0.00 Non-Callable
3 10/17/2027 $117,722.31 $117,722.31 $0.00 Non-Callable 4 4/17/2028 $117,722.31 $117,722.31 $0.00 Non-Callable
5 10/17/2028 $132,454.00 $117,722.31 $14,731.69 Non-Callable 6 4/17/2029 $132,454.00 $117,362.86 $15,091.14 Non-Callable 7 10/17/2029 $158,075.00 $116,994.64 $41,080.36 Non-Callable 8 4/17/2030 $158,075.00 $115,992.28 $42,082.72 Non-Callable 9 10/17/2030 $164,341.00 $114,965.46 $49,375.54 $4,802,193.26 10 4/17/2031 $164,341.00 $113,760.69 $50,580.31 $4,750,095.54 11 10/17/2031 $170,834.00 $112,526.54 $58,307.46 $4,690,038.85 12 4/17/2032 $170,834.00 $111,103.83 $59,730.17 $4,628,516.78 13 10/17/2032 $177,565.00 $109,646.42 $67,918.58 $4,514,302.77 14 4/17/2033 $177,565.00 $107,989.20 $69,575.80 $4,443,335.45 15 10/17/2033 $184,541.00 $106,291.55 $78,249.45 $4,363,521.02 16 4/17/2034 $184,541.00 $104,382.27 $80,158.73 $4,281,759.11 17 10/17/2034 $191,773.00 $102,426.39 $89,346.61 $4,149,541.00 18 4/17/2035 $191,773.00 $100,246.34 $91,526.66 $4,057,099.08 19 10/17/2035 $199,269.00 $98,013.09 $101,255.91 $3,954,830.61 20 4/17/2036 $199,269.00 $95,542.44 $103,726.56 $3,850,066.78 21 10/17/2036 $207,040.00 $93,011.51 $114,028.49 $3,697,918.82 22 4/17/2037 $207,040.00 $90,229.22 $116,810.78 $3,581,108.04 23 10/17/2037 $215,096.00 $87,379.04 $127,716.96 $3,453,391.08 24 4/17/2038 $215,096.00 $84,262.74 $130,833.26 $3,322,557.82 25 10/17/2038 $223,448.00 $81,070.41 $142,377.59 $3,180,180.23 26 4/17/2039 $223,448.00 $77,596.40 $145,851.60 $3,034,328.63 27 10/17/2039 $232,107.00 $74,037.62 $158,069.38 $2,876,259.25 28 4/17/2040 $232,107.00 $70,180.73 $161,926.27 $2,714,332.98 29 10/17/2040 $241,085.00 $66,229.72 $174,855.28 $2,539,477.70 30 4/17/2041 $241,085.00 $61,963.26 $179,121.74 $2,360,355.96 31 10/17/2041 $250,394.00 $57,592.69 $192,801.31 $2,167,554.65 32 4/17/2042 $250,394.00 $52,888.33 $197,505.67 $1,970,048.98 33 10/17/2042 $260,047.00 $48,069.20 $211,977.80 $1,758,071.18 34 4/17/2043 $260,047.00 $42,896.94 $217,150.06 $1,540,921.12

8.1 Packet Pg. 553
City of Patterson, CA – Financing Proposal
P a g e | 4
Payment
Number Date Due Total Rental Payment Due
Interest
Component
Principal
Component
Concluding
Payment
35 10/17/2043 $270,056.00 $37,598.48 $232,457.52 $1,308,463.60 36 4/17/2044 $270,056.00 $31,926.51 $238,129.49 $1,070,334.11 37 10/17/2044 $280,435.00 $26,116.15 $254,318.85 $816,015.26 38 4/17/2045 $280,435.00 $19,910.77 $260,524.23 $555,491.03 39 10/17/2045 $287,951.84 $13,553.98 $274,397.86 $281,093.17 40 4/17/2046 $287,951.84 $6,858.67 $281,093.17 $0.00
Grand Totals $8,163,912.92 $3,339,227.92 $4,824,685.00

8.1 Packet Pg. 554
City of Patterson, CA – Financing Proposal
P a g e | 5
Notwithstanding anything to the contrary contained herein, MFI shall have the right to cancel this offer by notifying the Lessee of its election to do so (whether or not this offer has previously been accepted by the Lessee) if at any time prior to the closing (i) there is a material adverse change in the Lessee’s financial condition, (ii) MFI discovers adverse circumstances of which MFI is currently unaware, (iii) MFI is unable to agree on acceptable documentation with the Lessee, or (iv) there is a change in law (or proposed change in law) that changes the economic effect of this financing to MFI. MFI reserves the right to negotiate and/or terminate its interest in this transaction should it be the successful proposer.

MFI appreciates the opportunity to provide this financing proposal and looks forward to your favorable response. Please contact us with any questions.

Sincerely,
Adi Kajaria
Director of Accounting and Investments
Metro Futures, Inc.

Phone: 949-981-8984
Email: [email protected]
Agreed To and Accepted By:

Signature:

Name:

Title:

Date:

8.1 Packet Pg. 555
Cash Flow - Full Scope - Delayed Savings/Payments
City of Patterson
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Years 11 to 15 Years 16 to 20 Years 21 to 25 Years 26 to 30 Totals 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 to 2041 2042 to 2046 2047 to 2051 2052 to 2056 Utility Savings $24,377 $121,887 $125,933 $195,223 $261,840 $270,342 $279,123 $288,189 $297,552 $307,222 $317,207 $1,747,617 $2,051,051 $2,151,826 $2,515,313 $10,954,703 O&M Savings $12,116 $60,582 $63,005 $65,525 $68,147 $70,872 $73,707 $76,656 $79,722 $82,911 $86,227 $485,715 $590,947 $0 $0 $1,816,132 Existing Solar O&M Cost Savings $39,516 $41,406 $43,384 $45,458 $47,633 $49,912 $52,301 $54,805 $57,430 $60,182 $347,063 $438,761 $554,887 $701,992 $2,534,730 Existing Controls O&M Cost Savings $13,405 $13,941 $14,498 $15,078 $15,681 $16,309 $16,961 $17,639 $18,345 $19,079 $107,471 $130,755 $0 $0 $399,162 TID Rebate $20,110 $20,110
Solar ITC $785,914 $0 $0 $0 $0 $785,914
Total Program Savings $36,494 $255,500 $1,030,199 $318,631 $390,523 $404,529 $419,050 $434,107 $449,719 $465,907 $482,694 $2,687,865 $3,211,514 $2,706,713 $3,217,305 $16,510,750 Total Project Amount - $4,794,785
M&V Agreement Payment $0 $0 $0 $20,000 $20,800 $21,632 $22,497 $23,397 $24,333 $25,306 $142,550 $173,434 $0 $0 $473,950 Solar O&M Payment $15,000 $15,600 $16,224 $16,873 $17,548 $18,250 $18,980 $19,739 $20,529 $21,350 $120,262 $146,317 $178,017 $216,585 $841,274 Annual Lease Payment $235,445 $235,445 $264,908 $316,150 $328,682 $341,668 $355,130 $369,082 $383,546 $398,538 $2,237,552 $2,697,768 $0 $0 $8,163,913 Total Program Payments $0 $250,445 $251,045 $281,132 $353,023 $367,030 $381,550 $396,607 $412,218 $428,408 $445,194 $2,500,364 $3,017,519 $178,017 $216,585 $9,479,137 Net Annual Cash Flow $36,494 $5,055 $779,154 $37,499 $37,500 $37,499 $37,501 $37,500 $37,501 $37,500 $37,500 $187,501 $193,994 $2,528,695 $3,000,719 $7,031,613 Net Cumulative Cash Flow $36,494 $41,549 $820,703 $858,202 $895,702 $933,202 $970,702 $1,008,202 $1,045,703 $1,083,203 $1,120,703 $1,308,204 $1,502,198 $4,030,893 $7,031,613 Utlity Rate Escalator 4.00%
O&M Savings Escalator 4.00%
Inflation 4.00%
Interest Rate 4.88%
Financing Term 20 Years
- WQCF South savings start after the Bank of America lease is paid off in April 2029 (year 3). - WQCF South savings is counted only for the second half of 2029 (year 3). - Cost of Issuance is $29,900
Cash Flow Assumptions:

Exhibit L

8.1 Packet Pg. 556
MEMO
To: Fernando Ulloa, City Manager
Mike Willet, Assistant City Manager
From: Kevin Williams, Finance Director
Date: February 25, 2026
Subject: Accounting Treatment of IRS Inflation Reduction Act Tax Rebate for clean energy improvements
The Inflation Reduction Act (IRA) created a new mechanism known as Elective Pay (also referred to as “Direct Pay”), which allows tax-exempt entities, such as state and local governments, to receive refund payments from the IRS equal to the value of eligible clean energy tax rebates. Elective Pay is treated as a voluntary nonexchange transaction under GASB 33 because the City receives value (a refundable rebate) without providing equal value in return.

Under GASB standards, revenue must be recognized when eligibility requirements are met.

Because each fund is a separate fiscal and accounting entity under GASB Codification Section 1100, the rebate must be recognized in the same funds that incurred the qualifying solar expenditures. This treatment is consistent with GASB principles and protects the City from any potential Proposition 218 concerns.

Applicable Accounting Standards
The Governmental Accounting Standards Board (GASB) is the authority that sets Generally Accepted Accounting Principles (GAAP) for state and local governments in the United States.

Governments must follow the rules and standards that are set by GASB or risk a multitude of consequences, including:
 Adverse Audit Opinions
 The loss of grant, Federal, or State funding
 Higher borrowing costs
 Potential violations of State Law
 Inconsistent or misleading financial information
 Damage to public confidence through a lack of transparency and comparability The pertinent GASB rules and standards used in accessing how to account for the elective pay rebate are outlined below.

1. GASB Statement No. 33 – Voluntary Nonexchange Transactions The IRS elective pay rebate is treated as a voluntary nonexchange transaction with reimbursement type eligibility requirements. Under GASB 33:

Exhibit M
City of Patterson
Finance Department
1 Plaza
P.O. Box 667
Patterson, California 95363
Phone (209) 895-8000 Fax (209) 895-8059

8.1 Packet Pg. 557
 Revenue is recognized when eligibility requirements are met (including incurring allowable costs) (Paragraphs 8-10 and 20-21).
 Purpose restrictions do not affect the timing of recognition (paragraph 22) GASB 33 determines when revenue is recognized, but not which fund recognizes it.

2. GASB Fund Accounting Principles
 (Codification 1100) - GASB’s Statement of Principles directs that governmental accounting “should be organized and operated on a fund basis,” defining a fund as “a fiscal and accounting entity with a self‑balancing set of accounts…segregated for the purpose of carrying on specific activities.” This supports recording the rebate in the fund(s) whose resources and activities are affected (i.e., the funds that incurred the qualifying costs or will pay the related financing). Because the eligibility requirement of the elective pay rebate is the incurrence of allowable solar costs, and those costs occur at the fund level, the related revenue must be recognized in those same funds
Proposition 218 Concerns
Proposition 218 (the “Right to Vote on Taxes Act”), approved by California voters in 1996, limits local governments’ authority to impose taxes, assessments, fees, and charges without voter approval. It added Articles XIII C and XIII D to the California Constitution. Proposition 218 brought about many changes for local governments, but the most important aspect of the proposition for this scenario is highlighted below:

1. Cost of Service Requirement:
 Property-related fees cannot exceed the reasonable cost of providing the service and must be proportional to the benefit provided.

Since Proposition 218 requires Enterprise fund rates to reflect only the actual cost of providing service, allocating the tax rebate exclusively to the General Fund would violate this requirement.

The rebate represents cost offsets that properly belong in the Enterprise funds, which are financing the underlying improvements.

Recommended Allocation Approach
The City will allocate the IRS elective pay refund to the funds that incurred the qualifying expenditures using one of the following methods:

1. Proportional Cost Method
 Allocation based on each fund’s share of eligible project cost or lease payments

2. Asset Location Method
 Allocation based on the fund that owns or operates the facility where the solar improvements are installed.

If the refund is initially deposited into a single fund, interfund transfers will be processed to distribute the revenue appropriately.

Conclusion

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This approach ensures compliance with GASB 33 and GASB Fund level accounting principles while maintaining fairness between funds. It also protects the City from potential Proposition 218 violations and ensures accurate financial reporting.

Kevin Williams
Finance Director

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Energy Efficiency Project Presentation
Exhibit N

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1 • ABS has done a comprehensive assessment of facilities – at no charge to the City. • Aging infrastructure - limited capital to replace, emergency repairs are expensive & inevitable. • TID rate increases are incoming. Without intervention, City will consume more energy at higher rates. • Capital improvements pay for themselves under a budget-neutral model. • City is eligible for $785,000 of free money (ITC) based on new solar installations. • Patterson is Preapproved for 100% Financing - No deposit required, no existing asset collateral required. • 100% of the Lease Payment is Guaranteed vs. the Usual 80 or 90% • ABS has never missed estimated savings and will pay the difference to the City if a shortfall occurs. • No Change Order Commitment - the original contract amount is the final contract amount.

Background
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

8.1 Packet Pg. 561
Energy Savings Performance Contract (ESPC)
2 • The City currently allocates funds every year
to pay utility and operational costs – a
permanent ongoing obligation.
• For the same budget outlay, new energy
equipment and new/updated solar will
reduce the City’s utility and O&M costs.
• Without intervention, utility and operational
costs will continue to rise. Aging equipment
will consume more energy at higher rates,
require more frequent repairs, and eventually
fail, requiring emergency funding.
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Current
O&M Costs
Current
Utility Costs
Current
Future
O&M Costs
Future
Utility Costs
Savings to
Fund Project
Post Install
Future
O&M Costs
Future
Utility Costs
Cost of Doing Nothing

8.1 Packet Pg. 562
Energy Costs
3 Date Range:
06/2024 – 05/2025
Baseline Energy Cost: $407,281 New Energy Cost: $187,317 $9,272
$31,695
$5,251 $7,851 $9,733
$2,984
$13,164
$39,504
$164,969
$65,292
$57,566
$8,820
$16,849
$3,695 $2,902 $691 $623
$9,907 $11,517
$56,595
$41,292
$34,426
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Aquatic Center City Hall Corporate Yard Fire Station #1 Fire Station #2 Old Corporate Yard Senior Center Well 8 WWTP South Well 9 Well 11 Baseline vs. New Energy Cost
Baseline Energy Cost New Energy Cost
WQCF South

8.1 Packet Pg. 563
4 Project Scope
Lighting HVAC / Mechanical Controls Renewables Electrical Envelope Interior LED
Lighting
Upgrades
Exterior LED
Lighting
Upgrades
Split Condenser
Replacement
(1 Ductless)
Wall Mount &
Package Unit
Replacement
Air-Cooled
Condensing Unit
Replacement
Boiler &
HHW Pump
Replacement
HVAC
Controls Solar Transformer Re-Roofing
Aquatic Center
1025 W Las Palmas (2)
City Hall
1 Plaza Circle
(2)
Both (1) (2) (2)
Corporate Yard
16215 Baldwin Rd (3) (3)
Fire Station #1
344 W Las Palmas Ave
(1)
Package (3)
Fire Station #2
1950 Keystone Pacific Pkwy (1) (3)
Package (3)
Old Corporate Yard
420 S 4th Street
Senior Center
1033 W Las Palmas (9)
Well 8
301 Orange
Well 9
636 Orange
Well 11
15804 Sycamore
WQCF South
14901 Poplar Ave (1)
WQCF North
14901 Poplar Ave
Total 8 Sites 4 Sites 4 Units 6 Units 1 Unit 2 Units 22 Units 9 Sites 1 Unit 2 Sites *The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

8.1 Packet Pg. 564
Previous Measurement & Verification Reports
5 $245,941
$789,896
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Year 1 Guaranteed Utility
Savings
Year 1 Actual Utility
Savings
Year 1 Guaranteed Utility Savings
Year 1 Actual Utility Savings
Guaranteed Year 1
Savings $245,941
Year 1 Actual Savings $789,896
% of Annual
Guarantee Met
321%
Guaranteed Year 1
Savings $308,028
Year 1 Actual Savings $340,010
% of Annual
Guarantee Met
110%
City of West Covina City of Fresno
$308,028
$340,010
$290,000
$300,000
$310,000
$320,000
$330,000
$340,000
$350,000
Year 1 Guaranteed Utility
Savings
Year 1 Actual Utility
Savings
Year 1 Guaranteed Utility Savings
Year 1 Actual Utility Savings
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Guaranteed Year 1
Savings $352,273
Year 1 Actual Savings $420,953
% of Annual
Guarantee Met
119%
$352,273
$420,953
$300,000
$320,000
$340,000
$360,000
$380,000
$400,000
$420,000
$440,000
Year 1 Guaranteed
Utility Savings
Year 1 Actual Utility
Savings
Year 1 Guaranteed Utility Savings
Year 1 Actual Utility Savings
City of Upland

8.1 Packet Pg. 565
6 • LED Lighting Upgrades (Interior) 8 Sites
• LED Lighting Upgrades (Exterior) 4 Sites
• HVAC/Mechanical Upgrades 4 Sites
• New EMS + Programmable T-stats 6 Sites
• Solar PV 9 Sites
• Transformers 1 Site
• Roof Repair 2 Sites
Project Amount
$4.79M
Total Project Savings
$16.5M
ITC Rebate
$785,914
TID Rebate
$20,110
Budget Impact
$0
Year 1 Savings: $255,500
Project Recap
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

8.1 Packet Pg. 566
7 Cash Flow
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Cash Flow - Full Scope - Delayed Savings/Payments
City of Patterson
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Years 11 to 15 Years 16 to 20 Years 21 to 25 Years 26 to 30 Totals 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 to 2041 2042 to 2046 2047 to 2051 2052 to 2056 Utility Savings $24,377 $121,887 $125,933 $195,223 $261,840 $270,342 $279,123 $288,189 $297,552 $307,222 $317,207 $1,747,617 $2,051,051 $2,151,826 $2,515,313 $10,954,703 O&M Savings $12,116 $60,582 $63,005 $65,525 $68,147 $70,872 $73,707 $76,656 $79,722 $82,911 $86,227 $485,715 $590,947 $0 $0 $1,816,132 Existing Solar O&M Cost Savings $39,516 $41,406 $43,384 $45,458 $47,633 $49,912 $52,301 $54,805 $57,430 $60,182 $347,063 $438,761 $554,887 $701,992 $2,534,730 Existing Controls O&M Cost Savings $13,405 $13,941 $14,498 $15,078 $15,681 $16,309 $16,961 $17,639 $18,345 $19,079 $107,471 $130,755 $0 $0 $399,162 TID Rebate $20,110 $20,110
Solar ITC $785,914 $0 $0 $0 $0 $785,914
Total Program Savings $36,494 $255,500 $1,030,199 $318,631 $390,523 $404,529 $419,050 $434,107 $449,719 $465,907 $482,694 $2,687,865 $3,211,514 $2,706,713 $3,217,305 $16,510,750 Total Project Amount - $4,794,785
M&V Agreement Payment $0 $0 $0 $20,000 $20,800 $21,632 $22,497 $23,397 $24,333 $25,306 $142,550 $173,434 $0 $0 $473,950 Solar O&M Payment $15,000 $15,600 $16,224 $16,873 $17,548 $18,250 $18,980 $19,739 $20,529 $21,350 $120,262 $146,317 $178,017 $216,585 $841,274 Annual Lease Payment $235,445 $235,445 $264,908 $316,150 $328,682 $341,668 $355,130 $369,082 $383,546 $398,538 $2,237,552 $2,697,768 $0 $0 $8,163,913 Total Program Payments $0 $250,445 $251,045 $281,132 $353,023 $367,030 $381,550 $396,607 $412,218 $428,408 $445,194 $2,500,364 $3,017,519 $178,017 $216,585 $9,479,137 Net Annual Cash Flow $36,494 $5,055 $779,154 $37,499 $37,500 $37,499 $37,501 $37,500 $37,501 $37,500 $37,500 $187,501 $193,994 $2,528,695 $3,000,719 $7,031,613 Net Cumulative Cash Flow $36,494 $41,549 $820,703 $858,202 $895,702 $933,202 $970,702 $1,008,202 $1,045,703 $1,083,203 $1,120,703 $1,308,204 $1,502,198 $4,030,893 $7,031,613 Utlity Rate Escalator 4.00%
O&M Savings Escalator 4.00%
Inflation 4.00%
Interest Rate 4.88%
Financing Term 20 Years
- WQCF South savings start after the Bank of America lease is paid off in April 2029 (year 3). - WQCF South savings is counted only for the second half of 2029 (year 3). - Cost of Issuance is $29,900
Cash Flow Assumptions:

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8 Solar Photovoltaic Systems
• 9 Sites:
• City Hall - 24 kW
• Fire Station #1 - 21 kW
• Fire Station #2 - 39 kW
• Old Corporate Yard - 13 kW
• Well 8 - 177 kW
• Well 9 - 153 kW
• Well 11 - 139 kW
• WQCF South (Upgrade) - 584 kW
• WQCF North (Partial Repair) - 23 kW
• Aggregate New System Size: 569 kW – DC
• Upgrade Existing System: 584 kW – DC
• Repair 7 Panel Strings: 23 kW – DC
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance. • Solar O&M Cost for all 12 Sites : $15,000

8.1 Packet Pg. 568
9 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site City Hall
System Size 24.2 kW
kWh Production 42,976
Total Site Offset 48%
Structure Roof Mount
System Cost $114,299
O&M Cost $400

8.1 Packet Pg. 569
10 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Fire Station 1
System Size 21.7 kW
kWh Production 38,021
Total Site Offset 71%
Structure Roof Mount
System Cost $104,286
O&M Cost $600

8.1 Packet Pg. 570
11 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Fire Station 2
System Size 39 kW
kWh Production 65,621
Total Site Offset 98%
Structure Roof Mount
System Cost $183,610
O&M Cost $350

8.1 Packet Pg. 571
12 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Old Corporate Yard
System Size 13.3 kW
kWh Production 21,909
Total Site Offset 100%
Structure Roof Mount
System Cost $64,045
O&M Cost $250

8.1 Packet Pg. 572
13 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Well 8
System Size 177.12 kW
kWh Production 299,093
Total Site Offset 97%
Structure Ground Mount
System Cost $713,819
O&M Cost $950

8.1 Packet Pg. 573
14 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Well 9
System Size 153.7 kW
kWh Production 257,116
Total Site Offset 42%
Structure Ground Mount
System Cost $590,510
O&M Cost $850

8.1 Packet Pg. 574
15 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Well 11
System Size 139 kW
kWh Production 237,566
Total Site Offset 50%
Structure Ground Mount
System Cost $540,941
O&M Cost $800

8.1 Packet Pg. 575
16 *The material within this presentation is proprietary information of Alliance Companies, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

Solar Layout
Site Existing WQCF (South)
Repowering Measure
System Size 584.1 kW
kWh Production 1,020,706
Structure Ground mount
Scope of Work ABS will re-commission
system to get production
back online. We will replace
central inverter with string
inverters to avoid complete
system downtime when
inverter fails
System Cost $968,731
O&M Cost $4,400

8.1 Packet Pg. 576
17 Reduction in Greenhouse Gas
Emissions from 3,684,856 Miles
Driven by the Average
Passenger Vehicle Every Year
Reduced Carbon Emissions in
the Equivalent to Carbon
Sequestered by 1,451 Acres of
Trees Every Year
Reduced Carbon Emissions
in the Equivalent of
1,607,342 Pounds of Coal
Burned Every Year
Environmental Attributes
3,684,856 1,451 1,607,342
*The material within this presentation is proprietary information of Alliance Building Solutions, LLC and cannot be shared or communicated to anyone without the expressed written consent from a principal within Alliance.

8.1 Packet Pg. 577
18 Preliminary Schedule - Solar

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19 Preliminary Schedule – Energy Infrastructure

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Recent CA Municipal Project References
20 City of Inglewood City of West Covina County of San Bernadino 1st Phase Completed
Phase 2 in Process
City of Montebello
City of Rialto City of Upland
*2 Phases of Work Completed
City of Fresno
3 Phases Completed 4th Phase in Process
City of Fontana *4 Phases of work Completed
City of Coachella
*Phase 2 in Process

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www.alliance-usa.com
END

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Alliance Building Solutions, LLC.
www.alliance-usa.com
1 UPDATE: On 12/16/2025, by unanimous vote, the San Bernardino County Board of Supervisors awarded to Alliance Building Solutions a Phase II Energy Efficiency Project with a contract value of $61,900,000, procured via CA GC 4217

PATTERSON ALLIANCE

CALIFORNIA BUILDING SOLUTIONS
San Bernardino County
The County project involved a holistic approach to modernizing energy systems at 2 county faci lities - Tax Collector Building and the County Government Center. Our approach ensures the comprehensive improvements in operational efficiency and substantial cost savings which is backed by Alliance savings guarantee. Based on the success of Phase 1, the County selected ABS to advance into Phase 2, which will expand energy efficiency and modernization measures across 48 County faci lities. The County continues to rely on ABS as a trusted partner to deliver large-scale, multi-phase improvements with predictable results and budget-neutral solutions
A. 268 W Hospitality Lane, San Bernardino, CA 92408
A. Don Day, (888) 818-8988
B. Project measures: Interior/ Exterior LED Lighting Upgrades, Installation Smart Thermostats, HVAC/ Mechanical Upgrades, Solar PV System C. NTP: 12/2023 - NOC: 11 /2024
D. Energy Savings $20M
E. Project Cost and Funding:

A. Phase 1: $7 .8M - 4217 Procurement - Cash
F. Verified Savings Performance Included: Exceeded savings by 163% City of Fresno
The City of Fresno issued a competitive RFQ for a large-scale, design-build energy efficiency program. ABS was selected first overall in Phase 1 over 10 competing firms, and again in Phase 2 over 6 additional competitors, reflecting the City's strong confidence in our approach and capabi lities. ABS delivered multiple turnkey phases addressing critical energy and infrastructure needs, helping Fresno combat rising PG&E utility rates through a budget-neutral, design-build model. Our integrated approach enabled the City to complete a substantial volume of capital improvements faster, with fewer internal resources, and at a significantly higher level of coordination A. 2600 Fresno St, Fresno, CA 93721,
A. Nelson Esparza , (559) 621-2489
B. Project Measures:
than traditional procurement methods.

A. Phase 1: Interior/ Exterior LED Upgrades, HVAC/ Mechanical Upgrades, Controls Upgrades, Solar Carport PV System, Roof Replacement, transformers
B. Phase 2: Interior/ Exterior LED Upgrades, HVAC/ Mechanical Upgrades, Controls Upgrades, Generators, Roof Replacement C. NTP: 03/ 2018 - NOC: 02/2021
D. Energy Savings $76M
E. Project Cost and Funding:

A. Phase 1: $9.6M - Prop 39 - TEFA
B. Phase 2: $23. 7M - 4217 Procurement - TEFA
C. Phase 3: $24.2M -Implementation - TEFA
F. Verified Savings Performance Included:

A. Exceeded savings: Phase 1 by 321 %
B. Exceeded savings Phase 2 by 412%
Exhibit O

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Alliance Building Solutions, LLC.
www.alliance-usa.com
2 8.1
Packet Pg. 583
Alliance Building Solutions, LLC.
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3 Additional References POC Title Contact Information

1. City of Fresno Nelson Esparza Councilmember [email protected]

2. San Bernardino County Dakota Higgins Chief of Staff [email protected]

3. City of Fontana Aquanetta Warren Mayor [email protected]

8.1 Packet Pg. 584
Alliance Building Solutions, LLC.
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4 Recent ABS Project Awards:
• $61.9M - 12/16/25 - San Bernardino County, procured via CA GC 4217 • $12.7M - 12/16/25 - Ripon USD, competitive RFP/Q, tax exempt municipal lease • $7.8M - 11/18/25 - City of Huntington Beach, procured via CA GC 4217,tax exempt lease • $8.2M - 03/25/25 - City of Inglewood, procured via CA GC 4217

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Exhibit P

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