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Page 2 of 5 <br />in partnership with PG&E. <br />The City is also developing an Asset Management Plan to provide a long-term framework for <br />planning the maintenance, renovation, repair, and/or replacement of infrastructure and public <br />facilities to meet current and future needs. To support essential services and public safety, the <br />City seeks to address inefficient and end-of-life assets across its portfolio, including <br />administrative buildings, community centers, police and fire stations, parks, streets, water <br />distribution systems, and wastewater collection systems. Continuing to operate outdated <br />assets increases maintenance costs, utility consumption, and equipment failures, and reduces <br />operational efficiency for City staff. <br />The design-build energy services method authorized under California Government Code <br />sections 4217.10–4217.18 (GC 4217) offers a comprehensive solution for achieving efficiency <br />and resilience while requiring the Program to pay for itself through savings. Under GC 4217, <br />the City may procure a turnkey solution from assessments through implementation, provided <br />that projected savings over the useful life of improvements are sufficient to cover program <br />costs. This approach reduces financial risk, improves price and schedule certainty, and <br />supports the timely delivery of City objectives. The City also consulted with the Fair Political <br />Practices Commission and confirmed the Program is not prohibited under Section 1090. <br />DISCUSSION <br />Project Goals <br />The proposed Energy Infrastructure Modernization Program has the following goals: <br />Deliver long-term cost savings and reduce operating expenditures <br />Upgrade and modernize City facilities and replace end-of-life assets <br />Enable facility upgrades that may otherwise be unfunded by leveraging grants and other <br />external funding <br />Reduce greenhouse gas (GHG) emissions associated with energy and water use <br />through lower consumption and improved efficiency <br />Strengthen facility and infrastructure resilience during extreme events (e.g., wildfires <br />and power outages) <br />Support staff health and well-being <br />Competitive RFQ Process & Award <br />The City issued a Request for Qualifications (RFQ) for Comprehensive Facility Improvements: <br />Energy Efficiency and Resilience in April 2025. Prior to release, the Energy and Environment <br />Commission reviewed and provided feedback on the RFQ scope of work in January 2025. The <br />RFQ sought qualified energy service companies with experience in developing, implementing, <br />and monitoring GC 4217 programs. <br />The City received five proposals from qualified energy service companies. Climatec was <br />selected as the most responsive and responsible bidder based on experience, references, <br />project understanding, project team qualifications, cost and savings, and additional benefits. <br />Climatec meets all RFQ minimum requirements, including accreditation, licensing, bonding <br />capacity, and a local office with trained technical staff. <br />Docusign Envelope ID: 2116ABC8-4A4A-8B43-82A0-6C965050EDC5