March 17, 2026
Economic Development
DATE: March 17, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Nannette Beacham, Economic Development Director
Samantha Carr, Environmental Manager
Valerie Li, Office Aide
Subject:
Contract with Zero Net Energy Alliance for Lighting Fixture Upgrades at City Hall[Title]
FINANCIAL IMPACT: The proposed $250,000 expenditure is included within the approved fiscal year 2025-Environmental and
Community Investment Agreement (ECIA) and Economic
Development General Fund budget. (Account Strings:
11771018-400201-2A1EC ($50,000), 01362765-400201
($200,000)).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The City of Richmond, in partnership with the Zero Net
Energy Alliance (ZNEA), received a grant from the
California Energy Commission to support the
development of the Marin Clean Energy (MCE) Virtual
Power Plant (VPP) Pilot program, advancing clean
energy deployment, reducing greenhouse gas emissions,
and increasing resiliency at public facilities. By upgrading the lighting at 450 Civic Center Plaza (City Hall) —a
critical public facility that also serves as the City’s Emergency Operations Center (EOC), it will provide
future cost savings from increased energy efficiency and participantion in VPP. The Economic Development
Department is requesting City Council approval of a
agreement with ZNEA to provide these services.
AGENDA
REPORT
March 17, 2026
RECOMMENDED ACTION: APPROVE a sole-source contract with Zero Net Energy Alliance (ZNEA) in the amount of $250,000 to upgrade
lighting infrastructure at 450 Civic Center Plaza (City Hall) and participate in Marin Clean Energy's (MCE)
Virtual Power Plant Program with a term beginning
February 27, 2026, through September 30, 2026 –
Economic Development Department (Nannette
Beacham/Valerie Li 510-621-1554/Samantha Carr 510-
620-5407).
DISCUSSION:
ZNE Alliance (ZNEA) in partnership with the City of Richmond, MCE Clean Energy (MCE) and other grant partners were awarded the California Energy Commission (CEC) grant under Grant Award Number: EPC-19-005 ("CEC Grant Agreement"). As part of of this grant, the MCE Virtual Power Plant (VPP) Pilot Program was developed. Due to the grant, ZNEA and subcontractor Serious Controls are the only and most knowledable vendors to provide the lighting upgrade service. By upgrading the lighting at 450 Civic Center Plaza (City Hall) —a critical public facility that also serves as the City’s Emergency Operations Center (EOC), the City can receive bill savings from both the new energy efficient fixtures and from participation in the VPP Program.
A Virtual Power Plant (VPP) is a network of distributed energy resources (DERs)—such as batteries, smart devices, and efficient systems—that are coordinated to optimize grid performance. MCE’s VPP program will allow DERs at participating sites to be monitored and dispatched via a Distributed Energy Resource Management System (DERMS) in ways that:
Reduce peak demand
Lower emissions
Support energy cost savings
Improve resilience during outages
As a publicly owned, critical operations site, Richmond City Hall is an ideal candidate for early DER integration. The proposed lighting upgrade will improve building energy efficiency while positioning the facility for future participation in load-shifting and grid- responsive operations managed by MCE. The site’s location at 450 Civic Center Plaza and its use as an Emergency Operations Center strengthens the need for resilient infrastructure investments.
Richmond Municipal Code (RMC) Section 2.52.326 provides for sole source procurement where the City determines in writing, after conducting a good faith review of available sources, that there is only one source for the required good or service. Sole source procurement is justified in this instance because ZNEA are the awardees of the
March 17, 2026
grant and are therefore the only vendor that can provide the service for the VPP project (Attachment 1).
ZNEA’s subcontractor, Serious Controls, LLC, will perform the installation. The attached quote outlines costs for a comprehensive lighting retrofit package, including (Attachment 2):
Full disposal of old lighting materials
Installation of new high-efficiency fixtures
All labor costs
A 5-year warranty
City staff recommend approval of a sole-source contract with the Zero Net Energy Alliance (ZNEA) in the amount of $250,000 to upgrade lighting infrastructure at 450 Civic Center Plaza (City Hall) and participate in Marin Clean Energy’s Virtual Power Plant (VPP) Program (Attachment 3). The contract term would run from February 27, 2026, through September 30, 2026. After the lighting upgrades are installed, the City will apply to the MCE VPP program by completing and signing an MCE VPP Agreement to secure the full benefits of future cost savings, while supporting the City’s goals to advance clean energy, reduce greenhouse gas emissions, and increase resiliency at public facilities (Attachment 4).
NEXT STEPS:
1. Enter into agreement with ZNEA for the lighting upgrade
2. ZNEA to complete installation through subcontractor Serious Controls, LLC
3. Apply for MCE VPP program by completing and signing MCE VPP Agreement
SYNERGISTIC POLICIES:
This VPP Program supports and advances multiple City goals, including:
Richmond Climate Action Plan
o Strategy RE3: Promote switching from natural gas to clean electricity o Strategy EE3: Promote energy efficiency and green buildings Health in All Policies (HiAP)
o Enhances environmental health through sustainable public infrastructure
DOCUMENTS ATTACHED:
Attachment 1 – 450 CCP Lighting Upgrade - Sole Source Justification Form Attachment 2 – Lighting Upgrade Quote for 450 Civic Center Plaza Attachment 3 – 450 CCP Lighting Upgrade - Standard Contract Attachment 4 – MCE Virtual Power Plant Contract