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Attachment 1 - ABS Proposal Overview

Mayor and City Council
September 3, 2025

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Attachment 1 - ABS Proposal Overview
Meeting
September 3, 2025
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Mayor and City Council
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12520 High Bluff Drive Suite 345 | San Diego, CA 92130 | 858.333.4775 | 858.356.9651 fax www.absenergy.com | Contractor’s License # 1008135
July 2nd, 2025
Mr. Brad Chapman
Alliance Building Solutions, LLC
12520 High Bluff Drive, Suite 345
San Diego, CA 92130
Dear Mr. Chapman,
The City of San Bernardino is interested in evaluating the feasibility of an Energy Efficiency Program, including infrastructure modernization, conservation, and sustainability. The implementation of the program is to be self-funded from utility, operational savings, rebates, and incentives.

The City o f San Bernardino will support Alliance Building Solution s, LL C (ABS) in conducting a conceptual evaluation of such a program. More specifically the City agrees to:

1. Provide ABS with utility bill information.

2. Provide staff for an Engineering review meeting with appropriate department managers.

3. Provide staff for a Financial review meeting with appropriate department managers.

4. If a positive recommendation, request the City Council to direct staff to procure via CA4217 for the implementation of the project.

Alliance Building Solutions, LLC agrees to:

1. Develop a comprehensive utility analysis and project feasibility report for self -funding infrastructure improvements.

2. Conduct staff meetings to determine technical needs and financial requirements.

3. Present findings to staff and City Council.

ABS agrees to provide the City with this analysis at no cost . While in the scope development process, the City will not engage with any other energy services companies (ESCO’s) for related work for 18 months. If the City decides not to move forward with the Project with ABS, then all project information provided will be ABS’s proprietary information and cannot be used by the City without ABS’s written consent.

City of San Bernardino Alliance Building Solutions, LLC.

BY: ________________________________ BY: __________________________________ Signature Signature
Print Name: _________________________ Print Name: __Brad Chapman______________ TITLE: ______________________________ TITLE: _____Firm President ______________ DATE: ______________________________ DATE: ________________________________

12520 High Bluff Drive Suite 345 | San Diego, CA 92130 | 858.333.4775 | 858.356.9651 fax www.alliance-usa.com | Contractor’s License # 1008135

Company Background Overview
Established in 1964 with an initial team of five, Alliance Building Solutions (ABS) focused on warranty work and HVAC service calls, ABS has evolved from a small mechanical contractor to a leader in energy infrastructure solutions within the public sector in California. ABS contracts with public agencies across the state, focusing on the municipal and educational sectors. Offering a design-build / turnkey approach, ABS strives to create successful and effective energy projects, becoming a long-term energy partner with all our customers. In this relationship-driven industry, success also relies on customer satisfaction and long-term relationships with clients and industry professionals. For nearly half a century, our experienced team of executives, project managers, mechanical engineers, estimators, technicians, and installers have been delivering top tier energy solutions to satisfied clients throughout California.

Unlike traditional, outdated energy services companies, our leadership consists of executives, managers and implementers that came together to change the way municipalities view ESCO’s. We are and will remain privately held, meaning we prioritize our customers, not shareholders. We can keep profits fair and minimize markup as we perform most of our work in-house. Through strategic partnerships, our firm offers a diverse array of funding vehicles and financing solutions to our customers with a very flexible and streamlined approach.

ABS specializes in Energy Performance Contracting (EPC), which is a method that leverages energy savings to create a self-funding project. We understand the major budget constraints, lack of deferred maintenance funding, energy infrastructure needs, and economic trends within the municipal sector.

Through this understanding, we strive to build effective projects that are budget neutral, allowing Cities to address capital needs without additional capital outlay. Currently, public agencies are highly incentivized to implement renewable energy systems, with the Inflation Reduction Act Investment Tax Credit (ITC) allowing agencies to secure up to a 50% rebate on the total cost of renewable energy systems. This makes it one of the most financially advantageous times to install solar and battery storage. Additionally, California’s increasing wildfire activity has placed immense pressure on the energy grid, leading to rolling blackouts and a heightened risk of prolonged power outages. Public agencies must be prepared to maintain critical operations during these unpredictable events, and reliable backup power is no longer a luxury—it is a necessity.

City of San Bernardino
Energy Efficiency Project Proposal

12520 High Bluff Drive Suite 345 | San Diego, CA 92130 | 858.333.4775 | 858.356.9651 fax www.alliance-usa.com | Contractor’s License # 1008135

Alliance has successfully completed over $165M in holistic energy efficiency projects within CA, while locally working with various San Bernardino County agencies such as the City of Rialto, City of Fontana, City of Upland, West Valley Water District, City of Ontario, any many others through the State.

Currently, Alliance has completed a 1st phase of work with San Bernardino County and is in the development process of a 2nd and 3rd phase that will equate to over $100M in projects to be completed.

Our firm comes highly recommended by the County and has been selected as the long-term energy partner for all associated energy efficiency work throughout County facilities.

Project Approach
The project approach will entail a comprehensive audit process identifying facility infrastructure needs throughout various City buildings. Our team will work closely with staff to identify a pilot project that will select around 10-13 City owned facilities to be included within this audit. Emphasizing larger/higher energy user sites that will have a substantial amount of needs to be addressed, allowing the City to maximize realized energy savings to fund the project. As previously stated above, the strategy for this project will be a design build approach leveraging performance contracting through a 4217 procurement. This strategy enables the City to complete capital projects without having to pull from budget dollars and to fund project through realized energy savings over time.

Our engineering team will conduct a pre-site walk meeting with staff discussing the various needs within the facilities that will be included in the audit. We will schedule site walk dates that will work best with facility staff schedules. Staff feedback and input will provide information to our team that will allow us to effectively address all major needs that will be included in the scope recommendation. The City will provide signed utility releases, allowing Alliance to work directly with the utility provider for all of the needed usage data to build an energy baseline, which will show the current energy expenditures at each site.

During the site walks, our team will identify all energy infrastructure measures, providing fully detailed inventories of equipment type, make, model, age, etc. This will provide staff with detailed information on the existing infrastructure within each facility, encompassing elements affecting the City’s utility bill for gas, electric, or water; interior and exterior lighting, HVAC/mechanical systems, building controls/EMS, transformers, and a renewable analysis such as solar and battery storage. In addition to measures that will realize savings upon retrofit, Alliance will also try to include other items such as roofing, plumbing, window replacements, etc., that can also be funded through energy savings.

Following the completion of site walks, our team will develop a self-funding project to be presented to staff with the final scope recommendation. Upon finalizing the scope of work, the financial specifications will be shared, providing the total project cost and savings for a turn-key implementation of the project.

12520 High Bluff Drive Suite 345 | San Diego, CA 92130 | 858.333.4775 | 858.356.9651 fax www.alliance-usa.com | Contractor’s License # 1008135

Another segment of this approach will include conducting a comprehensive audit of the old City Hall Building to identify energy infrastructure upgrades that can be paid for through savings. This will coincide with the City’s efforts to modernize/upgrade the building for reoccupation efforts, while reducing the overall costs for the building rehabilitation budget.

The audit is identifying the sites below, but is not limited to additional sites within the initial pilot phase:

Site Name Address
1 Public Works Building (Building A & B) 201 North E Street 2 Rowe Library 108 E Marshall Blvd
3 Villasenor Library 525 N. Mt Vernon
4 Dorothy Ingraham Library 1505 W Highland Ave
5 City Yard (Corporation Yard) 234 S Mountain View
6 Rudy C. Hernandez Community Center 220 N. Lugo
7 Perris Hill Park Senior Center 780 E 21st St
8 5th Street Senior Center 600 5th Street
9 Delman Heights Center 2969 N. Flores St
10 Old City Hall 300 North D Street
Any Additional Sites ***

Cost Associated
There will be no cost associated with this audit. Alliance will complete the analysis at risk, requiring no financial obligation from the City.

Outcome & Associated Next Steps
Once a finalized project is identified that meets the City’s needs, Metro Futures Inc will then work to secure financing through a loan. Upon completion, all associated contracts will be forwarded to the City’s legal team for review and internal approval to be placed on the agenda for action. Alliance will support staff in preparing all the necessary documents for the agenda packet. Subsequently, the project will be presented before the council for a vote to approve Alliance for installation of the project.

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