TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. Subject
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Public Hearing to defer the consideration of a proposed contract amendment for the energy efficiency and infrastructure improvement project
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2. Summary
Pursuant to City Council direction, the City of Orange evaluated strategies to implement energy-efficiency and infrastructure upgrades across multiple facilities, including solar, LED lighting, EV charging infrastructure, and replacement of water meters with Advanced Metering Infrastructure-enabled units. After conducting a Request for Qualification/Request for Proposal process, Willdan Energy Solutions was selected to partner with the City of Orange in this process. On February 10, 2026, the City Council approved an Energy and Water Savings Performance Contract with Willdan Energy Solutions to conduct an Investment Grade Audit. The Investment Grade Audit has been completed, and staff have been working with Willdan Energy Solutions, the City’s independent municipal financial advisor, and the City’s outside bond legal counsel to establish agreed upon terms. In anticipation that mutually acceptable terms would be reached, the City issued a notice of public hearing pursuant California Government Code Section 4217. However, as of this writing, mutually agreed upon terms have not been reached. Staff recommend this project consideration be deferred. Staff will return with a proposed contract amendment if mutually acceptable terms can be reached.
3. Recommended Action
recommendation
Continue the Public Hearing to a date uncertain and direct staff to defer consideration of the proposed energy efficiency and infrastructure improvement project agreement and return to the City Council for consideration if mutually acceptable contractual terms are reached.
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4. Fiscal Impact
No fiscal impact associated with this action.
5. Strategic Plan Goals
Goal 5: Improve Infrastructure, Mobility, and Technology.
6. Discussion and Background
Following City Council direction to explore solar use for City facilities, the City issued Request for Qualifications/Request for Proposals (RFQ/RFP) seeking energy service companies to design and implement energy savings and water conservation projects.
Willdan Energy Solutions (Willdan) was selected as the most qualified respondent. This determination was made by a committee comprising three staff members from the Community and Library Services Department (Parks Division), Finance Department, and Public Works Department. Upon receiving notice that Willdan would continue along in the process, Willdan conducted preliminary assessments at no cost to the City which included site walks, utility use analyses, identification of incentives, and financing strategies.
After conducting a preliminary assessment, on February 10, 2026, the City Council approved the Energy and Water Savings Performance Contract (AGR-7917) with Willdan for an Investment Grade Audit (IGA). An IGA is an in-depth energy/operational analysis that identifies funding solutions while advancing designs and scopes of work. The IGA was completed, and staff has been working extensively with the City’s independent municipal financial advisor and bond counsel to identify a scope that balances savings, fee-based recovery, and fiscal prudence.
In anticipation that mutually agreed terms would be reached, pursuant to California Government Code Section 4217, a public hearing was previously noticed to allow the City Council to consider the proposed agreement and make the applicable statutory findings. However, as of this writing, mutually agreed-upon terms have not been reached. Accordingly, staff recommend the City Council defer consideration of the proposed energy efficiency and infrastructure improvement project agreement. Staff will bring the proposed agreement to the City Council for consideration if mutually acceptable contractual terms are reached.
7. ATTACHMENTS
• None