COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: September 16, 2025
SUBJECT: Adoption of a Resolution Authorizing Energy Efficiency Project for Facility Led Lighting Upgrades at Various City Facilities
Description:
The City Council will consider adopting a Resolution to authorize an Energy Efficiency Project Work Order for LED lighting upgrades across various City facilities, with a budget not exceeding $3,882,718 under PG&E’s Sustainable Solutions Turnkey Program. This project will replace outdated fluorescent and high-intensity discharge lighting with energy- efficient LED fixtures, reducing energy consumption, lowering operational costs, and improving lighting performan ce. Funded by a 0% loan from PG&E’s On -Bill Financing Program, the upgrades will enhance sustainability, reduce maintenance expenses, modernize infrastructure, and bring the City into compliance with Assembly Bill (AB) 2208 which went into effect January 1, 2025.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing Energy Efficiency Project Work Order for LED lighting upgrades at various City Facilities in an amount not to exceed $3,882,718, under Pacific Gas and Electric Company’s (PG&E) Sustainable Solutions Turnkey Program and authorize the City Manager to execute the PG&E On-Bill Financing loan agreement.
BACKGROUND:
On November 20, 2018, the City Council approved participation in Pacific Gas and Electric Company’s (PG&E) Sustainable Solutions Turnkey Program an d adopted a Resolution authorizing the City Manager to enter into a Master Services Agreement (MSA) with PG&E for the Energy Efficiency Project, pursuant to Government Code 4217.12. The MSA anticipated a series of projects to be contracted through Work Orders, subject to the terms of the MSA. November 20, 2018, Council Agenda Report is attached for reference (Attachment B).
2 DISCUSSION:
Following the recommendations outlined in the Investment Grade Audit Report, City staff, in coordination with PG&E, propose a third Work Order Project for LED lighting upgrades at various City facilities.
LED Lighting Upgrades
The scope of work, totaling $3,882,718, includes retrofitting and replacing interior and exterior lighting fixtures currently using outdated fluorescent and high intensity discharge (HID) lighting. The upgrade will improve overall energy efficiency, reduce operational costs, and modernize facility infrastructure. Facilities included in this project are listed in Table 1 below.
Additional benefits include reduced future maintenance costs through the installation of long-lasting LED components and occupancy sensors where appropriate. These improvements will enhance reliability, operation, reduce energy use, and bring City facilities into compliance with AB 2208.
Table 1: List of Locations
Abel Maldonado Youth Center Los Flores Ranch
Blending Facility Maramonte Park
City Attorney/Code Compliance + Police
Department Media Center + Elwin Mussell
City Hall Minami Community Center
Edwards Community Center Paul Nelson Aquatic Center
Fire Administration Complex Police Department (New)
Fire Station #1 Public Works Operations
Fire Station #2 Ruffoni Building (Partial)
Fire Station #3 Recreation & Parks Equipment Storage
Fire Station #3 (New) Recreation & Parks Office
Fire Station #4 Safe Haven (Newlove Community Building) Fire Station #5 Town Center Mall Parking Garage B
(Attachment D)
Hagerman Complex Transit Center
Landfill and Scalehouse Veterans Memorial Center
Library (New) + Library Parking Structure
Alternative(s)
The alternative to the recommended action would be for the City Council to direct staff to revise the proposed Work Order and identify alternative projects.
Fiscal Considerations
The project will be fully funded by a 0% interest loan from PG&E’s On-Bill Financing (OBF) Program, which provides 0% interest loans to qualified non -residential customers for energy-efficient retrofit projects. (Attachment E and Attachment F) Loan repayment will 3 be covered by energy savings over the 10-year term. The project is expected to generate positive cash flow in the first year, with cumulative net savings estimated at $ 1.9 million over 10 years and $10.8 million over 20 years. (Attachment G)
Impact on the Community
The community will benefit from improved lighting quality, enhanced energy efficiency, and reduced operational costs at various City facilities. These upgrades will support sustainability goals and create more inviting environments for community events and public use.
ATTACHMENT(S)
A. Resolution
B. CAR PG&E SST Energy Efficiency Program
C. CSM Lighting Work Order
D. Parking Structure Map
E. PG&E Loan Agreement
F. PG&E Financing Supplemental
G. CSM Lighting Upgrades Pro Forma