City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Mike Selling, Assistant Director of Engineering/City Engineer |
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Prepared by: |
Elizabeth Cha, Assistant Engineer; Kyzen Nicolas, Associate Engineer; Somporn Boonsalat, Deputy Director of Engineering |
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Date: |
September 15, 2026 |
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Subject: |
Public Hearing to Consider Approval of the Solar Photovoltaic & Battery Energy Storage System Project and Any Related Agreement(s) Pursuant to California Government Code §4217 |
Recommendation:
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Conduct a public hearing and adopt a resolution: finding that the energy conservation services provided by the Wastewater Quality Control Facility (WQCF) Solar Photovoltaic & Battery Energy Storage System Project (“Project”) is in the best interest of the City of Manteca; finding that the anticipated cost of the Project will be less than the anticipated cost of the energy that would have been consumed by the WQCF in the absence of the Project; finding that the funds required to repay the Project financing and associated Project costs are projected to be available from energy-cost savings or other funds that would have been used to purchase energy; finding that as no facility ground lease is proposed, the finding under Government Code 4217.12(a)(2) concerning fair rental value is not applicable; approving the Project and any related agreement(s) pursuant to California Government Code Section §4217; amending the Fiscal Year 2026-2027 Capital Improvement Program to include the Project and assign a new Capital Improvement Project Number; reallocating $2,000,000 from CIP 12013 in the Sewer O&M Fund (Fund 640) to the Project; approving the PDB Agreement for Services with Willdan for an amount not-to-exceed $15,000,000 with an additional $3,000,000 in contingency available via written authorization for a total not-to-exceed amount of $18,000,000; approving a Project contingency of $3,000,000; and authorizing the City Manager or designee to take all appropriate actions necessary to carry out the purpose and intent of the resolution.
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Background:
The City of Manteca’s (“City”) Wastewater Quality Control Facility (“WQCF”) spends approximately $2.5 M in energy cost to PG&E, annually.
On June 16, 2026, the City Council approved an Agreement for Services with Willdan Energy Solutions (“Willdan”) for the conceptual design of the Project to evaluate and confirm technical feasibility, financial viability, and alignment with the City’s operational requirements.
Willdan identified an estimated $15 to $18 million solar and battery energy project at the WQCF that qualifies for implementation via a Progressive Design Build (PDB) delivery approach under California Government Code (“CA GC”) §4217. The Project would qualify for up to $6 million in federal incentive, if completed before the end of 2027.
City staff has reviewed Willdan’s project cost proforma (see Attachment 6 - Project Cost Analyzer) and recommends approval of the following findings:
• The energy conservation services provided by the Project are in the best interest of the City.
• The anticipated cost of the Project will be less than the anticipated cost of the energy that would have been consumed by the WQCF in the absence of the Project.
• The funds required to repay the Project Financing and associated Project costs are projected to be available from energy-cost savings or other funds that would have been used to purchase energy.
• As no facility ground lease is proposed, the finding under CAGC 4217.12(a)(2) concerning fair rental value is not applicable.
On August 22, 2026 and August 28, 2026, the City published a Notice of Public Hearing for City Council consideration of adopting a resolution approving the Project pursuant to CA GC §4217.
The Project will be delivered through a PDB delivery method, which allows:
• The City to continue to participate in the design decision making process
• The contractor to be involved early in the design process
• Equipment to be ordered as soon as design packages are approved
• Reduced construction conflicts
• Reduced project delivery timeline
The PDB delivery method is composed of the following phases:
• Pre-Construction Phase, where the design-build (“DB”) Firm prepares approximately 60% Plans, Specifications, and Estimate and secures subcontractor bids via a competitive bidding process and provide a Guaranteed Maximum Price to the City.
• Construction Phase, the DB Firm completes the design, procures all materials and equipment, and provides the labor to complete project construction.
• Energy Savings Guarantee Phase, the DB Firm shall provide monitoring, reporting, and verification measurement of the actual performance to ensure performance obligations are being met.
Fiscal Impact:
There is no General Fund Impact.
The Project expense breakdown is as follows:
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Description |
Estimated Cost |
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Professional Service Contract (Willdan) |
$15,000,000 |
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PROJECT Budget Contingency |
$3,000,000 |
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Total |
$18,000,000 |
The Project funding breakdown is as follows:
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Description |
Funding |
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City Sewer O&M funds |
$2,000,000 |
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Project Infrastructure Financing |
$16,000,000 |
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Total |
$18,000,000 |
City staff recommends reallocating $2,000,000 from CIP 12013 - WQCF Alternative Energy Development in the Sewer O&M Fund (Fund 640) to the Project. Funds are not needed for CIP 12013 until 2028.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Notice of Public Hearing
3. Attachment 3 - Project Location Map
4. Attachment 4 - PDB Agreement for Services (Willdan Energy Solutions)
5. Attachment 5 - Presentation
6. Attachment 6 - Project Cost Analyzer