FROM:
Development Services
SUBJECT:
Transformative Climate Communities Program Application
Title
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RECOMMENDATION:
Recommendation
1. Consider the funding for the grant application submittal for three microgrid projects, specifically Don Day, City Civic Center and Jesse Turner Center and direct the City Manager, or City Manager’s designee, to enter into any agreements and documents necessary to advance the application.
2. Authorize the method to procure utilizing the Purchasing Policies and Procedure Manual 3.1.5 Non-Competitive Proposal - (5) For renewable energy and energy efficiency projects.
End
COUNCIL GOALS:
• Promote environmental sustainability and reduce the City’s carbon footprint by investing in renewable energy and energy-efficient infrastructure.
• Practice sound fiscal management by reducing long-term energy costs and improving operational efficiency at City facilities.
• Support economic and community development by advancing innovative infrastructure projects that enhance the quality of life for residents and position the City as a leader in clean energy.
DISCUSSION:
The City of Fontana has received an unsolicited proposal from Alco Building Solutions to provide design, engineering, utility coordination, permitting, and implementation planning services (Phase 1) for solar PV, battery energy storage with microgrid controls, and DC fast charging infrastructure at three City facilities: Don Day Neighborhood Center, Jessie Turner Health and Fitness Community Center, and the Civic Center Campus. This initiative aims to reduce long-term operating costs, enhance facility resiliency during grid outages, and support the City’s transportation electrification goals. This Phase 1 effort will advance each site to permit-ready status, reduce project risk, provide accurate cost estimates, and strengthen long-term facility resiliency and energy cost savings.
As part of the proposal, Alco Building Solutions included grant funding opportunities. Specifically, the Transformative Climate Communities (TCC) program funds community-led development and infrastructure projects that achieve major environmental, health, and economic benefits in California communities. Since 2018, more than $424,000,000 has been awarded on 177 unique projects to TCC applicants. To be eligible for the grant, the City will have to identify non-profit partners who will incorporate workforce development opportunities as part of the project. Round 6 of the grant application cycle is now open with an anticipated total funding availability of $98,800,000. Project awards will be
The total proposed fee for facilities design is $390,000 ($130,000 per facility) regardless of whether or not the City is successful in receiving the grant. Based on the grant writer’s past experience, there is a 75% probability of receiving the fully funded grant for the three microgrids locations. If approved by council, in addition to the contracts for design, as a condition of receiving a discounted rate for design services, the contractor will be provided a letter of commitment that binds the city to use Alco Building Systems for the construction of Phase 2, subject to confirmation of grant award for construction by the city and the city’s final election to proceed with construction.
This proposal represents an important step toward modernizing City infrastructure with clean energy and resilience features. Staff will evaluate the technical approach, cost reasonableness, and alignment with available funding opportunities. Should the City Council desire to proceed based on the aforementioned costs, the Council shall direct the City Manager to enter into the necessary agreements based on the attached proposal from Alco Building Solutions for Phase 1 services and to handle all related administrative matters.
The construction of the facilities (Phase 2) is not part of staff’s current recommendation and funds are not currently available to complete construction of the project. Via a separate contract, staff has retained California Consulting to prepare, and process grant applications to fund Phase 2 of the proposed project. If funding is awarded for the project, staff will return to council for appropriate approvals of necessary documents and agreements.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $390,000 and a 10% contingency, funds are not available in the FY 2026-27 budget. All necessary budget adjustments will be included in the next quarterly FY 2026-27 budget report in General Fund (Fund 101) and supplemented by grants if received.
MOTION:
Approve staff recommendation.