Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 9, 2026
SUBJECT: CITYWIDE ENERGY EFFICIENCY PROGRAM - CONTRACT
MODIFICATION FOR PASEO POLE LIGHTING AND SOLAR
PANEL INSTALLATIONS
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
1. Amend the current contract with Climatec, LLC., to authorize the replacement of paseo pole lighting in the Northbridge paseo system and solar panel installations in the amount of $2,542,608, for a total contract amount not to exceed $38,027,075.
2. Increase General Fund Capital Projects Revenue Account 601-462110 (Energy Rebates) by $2,534,622, and appropriate $2,214,253 to Energy Efficiency Expenditure Account R0033601-516101.
3. Appropriate a one-time budget increase from the Landscape Maintenance District Fund Balance (Fund 357) to expenditure account 3572425-516113 in the amount of $328,355.
4. Authorize the City Manager or designee to execute all documents, subject to City Attorney review.
BACKGROUND
On September 27, 2022, the City Council awarded a contract to Climatec, LLC (Climatec) as part of the City’s Energy Efficiency Program. Since that time, Climatec has successfully completed the implementation of a wide range of energy conservation and infrastructure modernization measures throughout City facilities and has demonstrated the technical expertise and capacity necessary to deliver complex lighting, electrical, and renewable energy infrastructure projects.
The City’s Energy Efficiency Program includes the following completed improvements:
• HVAC modernizations at 15 sites;
• New Building Automation Systems at 23 sites;
• Interior LED lighting upgrades at 27 sites;
• Exterior lighting upgrades at 36 sites;
• Sports field LED lighting and controls at 7 sites;
• Solar photovoltaic systems at 6 sites;
• Smart irrigation controls at 24 sites;
• Redesign of the ice rink refrigeration plant;
• High-efficiency transformers at 6 sites; and
• Building envelope improvements at 3 sites.
Completed program measures are monitored through annual Measurement and Verification (M&V) reports that track energy savings and overall system performance. To date, the Energy Efficiency Program has generated approximately $900,000 in utility savings, with annual savings expected to increase significantly as the City’s solar photovoltaic systems continue operating at full production. The project is on track to achieve the utility and operational savings that are contractually guaranteed by Climatec.
In addition to ongoing operational savings, the City has received $2,532,998 in Inflation Reduction Act (IRA) incentives associated with the City’s existing solar investments.
It should be noted that the City’s Energy Efficiency Project was approved shortly after the IRA was enacted. Because the IRA incentive programs and related federal guidance were still new and evolving at that time, staff did not include potential IRA reimbursement funding in the original project savings projections. As a result, the City now has an opportunity to leverage previously unanticipated federal funding to expand the program while minimizing the use of local funding sources.
Additional Solar Installations
The City’s existing solar systems are currently generating approximately 2.5 million kilowatt- hours annually and producing more than $400,000 in annual utility savings. These systems have demonstrated the effectiveness of onsite renewable energy in reducing utility costs, offsetting rising electricity rates, and improving long-term budget stability.
With the City’s initial solar installations now fully operational and producing measurable energy savings, staff recommends expanding the program to include additional solar photovoltaic systems at the following facilities:
• Canyon Country Community Center;
• The Rink Sports Pavilion; and
• Valencia Community Center.
The total cost for adding solar at these sites is $2,214,253. Based on current projections, the
proposed additional solar installations are anticipated to generate approximately $4,450,490 in total lifecycle savings. In addition to reducing annual utility expenditures, the proposed systems are expected to provide long-term protection against escalating electricity costs and improve operational budget predictability.
Staff recommends increasing contract authority with Climatec in the amount of $2,214,253 to complete the installation of solar projects at these three sites. Additionally, staff recommends proceeding on an accelerated schedule to preserve eligibility for approximately $800,000 in federal renewable energy incentives associated with the Inflation Reduction Act requirements.
LMD T-46 Paseo Lighting Repairs
Within Landscape Maintenance District (LMD) T-46 (Northbridge), the City maintains approximately 375 pedestrian walkway lights across roughly nine miles of paseo pathways.
These paseos are heavily utilized by residents throughout the year, including during evening hours, making reliable lighting essential for public safety and accessibility.
In 2015, the City completed a capital improvement project that replaced the original paseo lighting system with energy-efficient LED fixtures and a centralized lighting control system. The project improved energy efficiency and provided remote monitoring and lighting control capabilities through a manufacturer-provided web-based platform known as Virticus.
The lighting system installed as part of that project relies on the Virticus platform for system programming, monitoring, and diagnostics. While City staff had operational visibility into the system, all programming modifications required coordination with the manufacturer.
The manufacturer has since discontinued support for the Virticus platform, which is now operating unreliably. As a result, City staff no longer have access to system-level controls or diagnostics, and many lighting issues must now be addressed manually in the field. These failures have resulted in inconsistent lighting operations, including lights remaining on outside normal operating hours, as well as increased maintenance challenges.
City staff have continued to receive concerns and service requests from Northbridge residents regarding these lighting inconsistencies. Addressing these issues remains a priority due to the importance of the paseo system to the surrounding community.
To address the ongoing system failures, staff evaluated several long-term corrective options, including retrofitting the existing fixtures with updated control components and fully replacing the lighting fixtures and control system. Based on this evaluation, staff determined that a turn- key replacement approach represents the most reliable and cost-effective long-term solution.
Accordingly, staff recommends increasing contract authority with Climatec in the amount of $328,355 to complete the turn-key installation of upgraded lighting fixtures and controls throughout the Northbridge paseo system.
The proposed improvements will restore reliable lighting operations, improve system functionality and maintenance capabilities, enhance energy efficiency, and improve safety and
quality of life for residents utilizing the paseo network.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Upon approval of the recommended actions, a one-time budget increase of $2,214,253 will be appropriated from the General Fund Capital Projects (Fund 601) to Energy Efficiency Expenditure Account R0033601-516101, with a corresponding increase of $2,532,998 to Revenue Account 601-462110, to support the installation of additional solar photovoltaic systems at the Canyon Country Community Center, The Rink Sports Pavilion, and Valencia Community Center. Additionally, a one-time budget increase of $328,355 will be appropriated from the Landscape Maintenance District Fund (Fund 357) to Expenditure Account 3572425- 516113.
ATTACHMENTS
City of Santa Clarita Public Hearing Notice
Climatec Proposed Amendment (available in the City Clerk's Reading File)