CITY OF SIMI VALLEY
STAFF REPORT
D
ecember 15, 2025
To: Cit
y Council
Fr
om: Public Works Department,
Ron Fuchiwaki, Public Works Director
Subj
ect: Adopt a resolution reaffirming the findings made in Resolution No. 2016-10 pursuant to G overnment Code sections 4217.10 through 4217.18, approve a first amendment to the energy services contract with OPTERRA Energy Services, LLC, and approve a supplement budget request
Staff Recommendation
I
t is recommended that the City Council:
1. Adop
t Resolution No. 2025–40 (Attachment A) reaffirming the findings of Resolution No. 2016-10 pursuant to Government Code sections 4217.10 through 4217.18;
2. Appr
ove first contract amendment (Attachment B) to the energy services contract with OPTERRA Energy Services, L LC, increasing the not -to-exceed amount by $175,000, for a total not-to-exceed amount of $9,686,523, to accommodate limited additional repair and energy -efficiency services within the Agreement’s original scope; and
3. A
pprove Supplemental Budget Request in the General Fund (Fund 100) in the amount of $175,000 to the Non -Departmental budget for the OPTERRA energy services contract.
Background
In March 2016, the City Council adopted Resolution No. 2016- 10, approving an Energy Services Contract with OPTERRA Energy Services, Inc. to design, construct, and implement a series of Energy Conservation Measures (ECMs) across multiple City facilities. The project was developed pursuant to the authority granted under California Government Code Sections 4217.10 –4217.18, which allows municipalities to enter into energy service contracts when the cost of implementing energy efficiency improvements is less than the cost of the energy that would otherwise be consumed.
Under the agreement, OPTERRA provided comprehensive services , including engineering, procurement, construction management, installation, and training for energy efficiency and solar power generation projects at the following City facilities:
AGENDA ITEM NO.
Consent (5)
• City Hall (rooftop solar)
• Police Department (parking lot and rooftop solar)
• City Library (parking lot solar)
• Senior Center (parking lot solar)
• Water Quality Control Plant (ground-mount solar)
These improvements have advanced the City’s long- standing goals to reduce energy consumption, enhance facility reliability, and promote environmental sustainability in municipal operations. The Agreement remains in effect through 2037.
Under the terms of the m aintenance services agreement section of the contract, if any generating facility is damaged through no fault of OPTERRA, the City may request that OPTERRA perform the necessary repairs to restore the system to normal operating conditions or replace deteriorated or damaged components. When such repairs are requested, the City compensates OPTERRA on a time- and-materials basis, including reimbursable expenses, multiplied by 1.15, with invoicing due within thirty (30) days of completion.
Discussion
Several of the City’s solar systems now require repair work that falls outside the scope of the preventive maintenance service agreement . To address these needs, staff recommends increasing the contract amount to fund the necessary repairs and provide a reserve for future repair needs. Specifically, staff is requesting an allocation of $175,000, consisting of $50,000 for existing repair work and $125,000 to fund potential repair work in the future.
City Council approved the original agreement through a Resolution; any amendments to the contract must also be approved by Resolution reaffirming the original findings and incorporating the proposed changes. The proposed Resolution and contract amendment also recognize the recent acquisition and rebranding to OPTERRA Energy Services LLC.
Financial Impact
$175,000. Funds are available in the General Fund (Fund 100) fund balance.
City Council Priority
This item supports the Reliable Infrastructure Pillar of Excellence.
Suggested Motion
I move that the City Council:
1. Adopt Resolution No 2025–40 reaffirming the findings of Resolution No. 2016-10 pursuant to Government Code sections 4217.10 through 4217.18;
2 2. Approve a first contract amendment to the energy services contract with Opterra Energy Services, LLC, increasing the not -to-exceed amount by $175,000, for a total not -to-exceed amount of $9,686,523, to accommodate limited additional repair and energy-efficiency services within the Agreement’s original scope; and
3. Approve Supplemental Budget Request in the General Fund (Fund 100) in the amount of $175,000 to the Non -Departmental budget for the OPTERRA energy services contract.
Summary
In March 2016, the City Council adopted Resolution No. 2016- 10, approving an Energy Services Contract with OPTERRA Energy Services, Inc. to design, construct, and implement a series of Energy Conservation Measures (ECMs) across multiple City facilities. The project was developed pursuant to the authority granted under California Government Code Sections 4217.10 –4217.18, which allows municipalities to enter into energy service contracts when the cost of implementing energy efficiency improvements is less than the cost of the energy that would otherwise be consumed. It is recommended that City Council adopt Resolution No. 2025–40 reaffirming the findings of Resolution No. 2016-10 pursuant to G overnment Code sections 4217.10 through 4217.18; approve a first contract amendment to the energy services contract with OPTERRA Energy Services, L LC, increasing the not -to-exceed amount by $175,000, for a total not -to- exceed amount of $9,686,523, to accommodate limited additional repair and energy - efficiency services within the Agreement’s original scope; and approve the Supplemental Budget Request in the General Fund (Fund 100) in the amount of $175,000 to the Non- Departmental budget for the OPTERRA energy services contract.
Prepared by: Dylan Gunning, Senior Management Analyst
Attachments
Attachment A – Resolution No. 2025–40
Attachment B – First Contract Amendment
3 Attachment A
RESOLUTION NO. 2025-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY REAFFIRMING THE FINDINGS MADE IN
RESOLUTION NO. 2016 -10 PURSUANT TO
GOVERNMENT CODE SECTIONS 4217.10 THROUGH
4217.18, AND APPROVING A FIRST AMENDMENT TO THE
ENERGY SERVICES CONTRACT WITH OPTERRA
ENERGY SERVICES, LLC
WHEREAS, on March 14, 2016, the City Council adopted Resolution No. 2016-10, approving an Energy Services Contract (the “Agreement”) with OpTerra Energy Services, Inc. for the design and construction of energy -efficiency improvements to City facilities and making the findings required by Government Code Sections 4217.10 through 4217.18; and
WHEREAS, OpTerra Energy Services, LLC (“OpTerra”), a Delaware limited liability company registered in California, has assumed all rights and obligations of OpTerra Energy Services, Inc. under the Agreement; and
WHEREAS, the original contract was approved at a duly noticed public hearing pursuant to Government Code § 4217.12(b), and this First Amendment does not materially alter the nature, scope, or economic assumptions of that Agreement so as to require a new noticed hearing; and
WHEREAS, City staff and OpTerra Energy Services, LLC now propose a first amendment to the Agreement (the “First Amendment”) to (a) recognize the assignment to the LLC, and (b) increase the Agreement ’s not-to-exceed amount by $175,000, for a not cap of $ 9,686,523, to accommodate limited additional repair and energy-efficiency services within the Agreement’s original scope; and
WHEREAS, under the rule of equal dignities, amendments to the Agreement originally approved by City Council resolution must likewise be approved by resolution, and Council action is required to reaffirm the findings under Government Code §§ 4217.10 through 4217.18, inclusive.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1 . The City Council hereby reaffirms the findings made in Resolution No. 2016-10 pursuant to Government Code § 4217.12(a) and determines that:
A. I t remains in the best interest of the City to maintain the Agreement and amend it through the First Amendment; and
4 RES. NO. 2025-40
B. T he anticipated cost to the City for energy services under the Agreement, as amended, will continue to be less than the anticipated marginal cost of energy that would otherwise be consumed.
SECTION 2. The City Manager or designee is authorized to execute the First Amendment, in a form approved by the City Attorney, on behalf of the City and to take all actions necessary to implement it.
SECTION 3. The City Clerk will certify to the adoption of this resolution and cause a certified resolution to be filed in the Office of the City Clerk.
PASSED and ADOPTED this 15th day of December, 2025.
Attest:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
Ronald K. Fuchiwaki
Public Works Director
5 Attachment B
FIRST AMENDMENT TO
AGREEMENT NO. 3180096 BETWEEN
THE CITY OF SIMI VALLEY AND
OPTERRA ENERGY SERVICES, LLC
THIS FIRST AMENDMENT (“Amendment”) to that certain agreement entitled “Energy Services Contract” (Opterra ES Contract No. R3032) (City Agreement No. 3180096) (“Agreement”) is made and entered into this 15
th day of December 2025, by and between
the CITY OF SIMI VALLEY, a general law city and municipal corporation (“CITY”), and Opterra Energy Services, LLC (“OPTERRA”), a Delaware limited liability company registered to do business in the state of California.
1. OPTERRA assumes, receives, and undertakes all the rights, obligations, and duties of Opterra Energy Services, Inc. under the agreement. OPTERRA will perform all obligations under the Agreement as if it were the original party thereto.
2. The parties agree that it is necessary to amend the Agreement to increase the Agreement’s “Not to Exceed Amount,” as defined in Article 1, to facilitate OPTERRA’s provision of repair services under Agreement Attachment E, section V.c. and V.d.
3. Article 1 is amended to update the definition of “Not to Exceed Amount” to increase the $9,511,523 amount to $9,686,523, which reflects an increase of $175,000.
4. ELECTRONIC SIGNATURES. This Amendment may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Amendment binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Amendment will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
5. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
6. Except as modified by this Amendment, all other terms and conditions of the Agreement remain the same.
[SIGNATURES ON NEXT PAGE]
6 City of Simi Valley
First Amendment to Agreement No. 3180096
Opterra Energy Services, LLC
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk D ee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Opterra Energy Services, LLC
Algeria R. Ford, City Attorney By:
Print Name: Gary Reams
Approved as to Content:
Title: Vice President
Samantha C. Argabrite, City Manager By:
Print Name: Courtney Jenkins
Johanna Medrano, Title: President and CEO
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
7