REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 16, 2025
FROM
DON DAY, Director, Project and Facilities Management Department
SUBJECT
Title
Public Hearing for Capital Improvement Program Project, Energy Efficiency Solutions Agreement with Alliance Building Solutions, LLC for the Energy Efficiency Solutions Phase II Project at various County Facilities
End
RECOMMENDATIONS
Recommendation
1. Conduct a public hearing on the Energy Efficiency Solutions Phase II Project.
2. Find that the Energy Efficiency Solutions Project is exempt under California Environmental Quality Act Guidelines, Section 15301 Class 1, Subsections (a) and (d) Existing Facilities, Section 15302 Class 2, Subsection (c) Replacement or Reconstruction, Section 15303 Class 3 Small Structures, Section 15304 Class 4, Subsection (a), Minor Alterations to Land, and California Code Public Resources Code Section 21080.35.
3. Approve Capital Improvement Program Project No. 26-116, in the amount of $64,997,347, for the Energy Efficiency Solutions Phase II Project.
4. Authorize the Auditor-Controller/Treasurer/Tax Collector to post necessary budget adjustments for the Capital Improvement Program Project to the 2025-26 budget as detailed in the Financial Impact section (Four votes required).
5. Approve plans and specifications/scope of work for the Energy Efficiency Solutions Phase II Project, located throughout San Bernardino County.
6. Find that it is in the best interest of the County to enter into an Energy Efficiency Solutions Agreement with Alliance Building Solutions, LLC, and that the anticipated cost to the County from the services provided by Alliance Building Solutions, LLC will be less than the anticipated cost to the County of the energy that would have been consumed by the County without the services.
7. Adopt Resolution authorizing the Board of Supervisors to enter into an Energy Efficiency Solutions Agreement with Alliance Building Solutions, LLC, for the installation of energy-related improvements at multiple facilities throughout San Bernardino County.
8. Award Energy Efficiency Solutions Agreement to Alliance Building Solutions, LLC, in the amount of $61,902,432, for a contract period of 1095 calendar days from the date of the issuance of the Notice to Proceed for the Energy Efficiency Solutions Phase II Project.
9. Authorize the Director of the Project and Facilities Management Department to order any necessary changes or additions in the work being performed under the Energy Efficiency Solutions Agreement, for a total amount not to exceed $210,000 pursuant to Public Contract Code Section 20142.
10. Authorize the Director of the Project and Facilities Management Department to accept the work when 100% complete and execute and file the Notice of Completion.
11. Direct the Project and Facilities Management Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Don Day, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote the Countywide Vision.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will result in the use of Discretionary General Funding (Net County Cost) in the amount of $64,997,347 for the Energy Efficiency Solutions Phase II Project (Project) (WBSE 10.10.1978). It is estimated that the County’s anticipated cost for the services to be provided by Alliance Building Solutions, LLC (ABS), totaling $61,902,432, is significantly less than the approximately $190 million in energy costs the County is projected to incur over the life of the Project’s systems in the absence of these improvements. In addition, ABS estimates that, for each Project site, the anticipated cost to the County for the services provided will be less than the energy costs the County would otherwise incur over a break-even period of 12.5 years.
The Project and Facilities Management Department (PFMD) requests the Auditor-Controller/Treasurer/Tax Collector post the following adjustments to the 2025-26 budget:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
1161161000 |
55305030 |
Operating Transfer Out |
Increase |
$64,997,347 |
- |
|
1280001000 |
56006000 |
Appropriation Contingencies |
Decrease |
$64,997,347 |
- |
|
7700003100 |
54304030 |
Structures & Improvement to Structures |
Increase |
$64,997,347 |
10.10.1978 |
|
7700003100 |
40909975 |
Operating Transfer In |
Increase |
$64,997,347 |
10.10.1978 |
BACKGROUND INFORMATION
Following California State-wide sustainability efforts, San Bernardino County (County) is committed to reducing its environmental footprint through sustainable County government operations and practices as part of its goals and objectives. Amidst the volatility in the utility market, PFMD is seeking opportunities to incorporate environmentally preferable products, energy-efficient County building design, and construction, and substantially reduce the costs and environmental impacts associated with operating County-owned and leased facilities.
On October 24, 2023 (Item No. 90), the Board of Supervisors (Board) approved a $7,880,230 contract with Alliance Building Solutions, Inc. (ABS) for the installation of energy-related improvements at two locations, 385 North Arrowhead Avenue and 268 West Hospitality Lane in San Bernardino. The project included the Light Emitting Diode (LED) conversion of lighting, replacement of existing electrical transformers, and the replacement of existing heating ventilation and air-conditioning (HVAC) system at 385 North Arrowhead Avenue. The project also included the installation of a high-efficiency heating hot water boiler and solar photovoltaic (PV) carport system with a battery energy storage system at 268 West Hospitality Lane.
In 2024, ABS contacted the County to evaluate additional sustainable opportunities at County-owned facilities. ABS conducted a Payback Overview that included a Cost and Savings Analysis and Cumulative Savings report, which supported a proposal to install energy-efficient measures such as lighting, transformers, Electric Vehicle (EV) charging systems, HVAC, system controls, and PV energy-offset measures. The proposal covered the County-owned facilities located at the following locations and included the following improvements:
• High Desert Government Center, 15900 Smoke Tree Street, Hesperia
o Lighting and mechanical upgrades, 5 EV chargers, rooftop and carport solar system
• Sheriff High Desert Detention Center, 9438 Commerce Way, Adelanto
o Rooftop and carport solar system
• Sheriff West Valley Adult Detention Center, 9500 Etiwanda, Rancho Cucamonga
o Lighting upgrades, rooftop, carport and ground mounted solar system
• Sheriff Training Center, 18900 Institution Road, Devore
o Lighting, mechanical and control systems upgrades, rooftop and carport solar system
• Sheriff facility, 1020 and 1060 Cooley Drive, Colton
o Electrical system upgrades
• Old Crime Lab, 200 S. Lena Road, San Bernardino
o Lighting, mechanical and control system upgrades, rooftop and carport solar system
• New Crime Lab, 711 E. Rialto Avenue, San Bernardino
o Lighting upgrades
• Coroner, 175 S. Lena Road, San Bernardino
o Lighting and mechanical upgrades, ground mounted solar system
• Sheriff Headquarters, 655 E. Third Street, San Bernardino
o Lighting, mechanical, control system and electrical upgrades
• Bob Burke Government Center, 63665 Palms Highway, Joshua Tree
o Lighting upgrades
• County Office Building, 8575 Haven Avenue, Rancho Cucamonga
o Lighting, mechanical and control system upgrades, carport solar system
• Hall of Records, 222 W. Hospitality Lane, San Bernardino
o Lighting and electrical upgrades, 5 EV chargers, rooftop and carport solar system
• County Office Building, 412 W. Hospitality Lane, San Bernardino
o Lighting and electrical upgrades
• Department of Public Health, 451 E. Vanderbilt Way, San Bernardino
o Lighting, electrical, and mechanical upgrades.
The improvements to each facility vary and were chosen to maximize the energy savings potential at each individual facility. The Project is expected break even in approximately 12.5 years, yielding a return on investment over the systems’ lifecycle and generating up to $16.5 million in federal tax credits and energy rebates. The County Administrative Office is currently evaluating opportunities to qualify for these federal tax credits and may return to the Board at a later date requesting approval to award a contract for tax credit and rebate management services.
The County can consider procuring services from ABS under California Government Code sections 4217.10 through 4217.18.
In accordance with Government Code section 4217.12, a Notice of Hearing was published in The Sun newspaper on December 2 and December 9, 2025, giving notice that the Board would be conducting a hearing, during its regular meeting, to award an Energy Efficiency Solutions Agreement to ABS on December 16, 2025. Additionally, in accordance with California Government Code sections 4217.10 to 4217.18, the Board must find it is in the best interest of the County to enter into an energy services agreement for the installation of energy-related improvements whose cost to the County under the Agreement will be less than the anticipated cost to the County of the thermal, electrical or other energy sources that would have been consumed by the County in the absence of the improvements and adopt a Resolution with these findings. ABS estimates that the anticipated cost to the County for the services provided by ABS ($61,902,432) are less than the anticipated costs to the County for energy that would have been used by the County, which is projected to cost $190 million over the life of the Project’s systems and that the anticipated costs to the County for the service provided at each Project site are less than the anticipated costs to the County for the energy that would have been used by the County at that site over the next 12.5 years. After completion of the work by ABS, PFMD will verify the new equipment is installed, tested, and operating as designed to optimize energy efficiency.
The recommended item will establish a Capital Improvement Program Project for the Project and award the Agreement to ABS for the Project located at facilities throughout the County. The Project will consist of LED conversion of lighting, replacement of existing electrical transformers, EV charging stations, replacement of existing HVAC systems and equipment, and PV rooftop and carport systems with battery energy storage systems. Under the negotiated Agreement, ABS will be paid 2.5% upon execution of the Agreement and the County’s receipt of the required bonds and insurance and another 2.5% when ABS begins work at the first project site.
It is recommended that the Board determine the Project to be categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines (Title 14, California Code of Regulations), as evidenced by the Notice of Exemption. The Project qualifies under Section 15301, Class 1, Subsections (a) and (d) for existing facilities; Section 15302, Class 2, Subsection (c) for replacement or reconstruction; Section 15303, Class 3, for Small Structures, and Section 15304, Class 4, Subsection (a) for minor alterations to land. Additionally, the Project is exempt under Public Resources Code Section 21080.35 for the solar projects. These provisions provide categorical exemptions for projects that involve negligible or no expansion of existing or former use, the replacement of existing utility systems and/or facilities, and minor site modifications. Therefore, no further environmental review is required.
PROCUREMENT
Energy service agreements are authorized by California Government Code sections 4217.10 through 4217.18, which provide that a public agency may enter into an energy services contract on such terms as the Board determines are in the best interest of the County if "the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed in the absence of these purchases." Which means that the energy savings will be equal to or greater than the project costs.
This is a noncompetitive procurement as permitted by Government Code 4217.10 through 4217.18.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on December 3, 2025; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on December 4, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on November 26, 2025; Project and Facilities Management (Sarah Riley, Chief of Project Management, 387-5000) on December 2, 2025; and County Finance and Administration (Yael Verduzco, Principal Administrative Analyst, 387-5285) December 2, 2025.
(DD: 601-4936)