ESCONDIDO — The city is preparing to launch a $56 million infrastructure overhaul aimed at modernizing aging energy systems, a three-year project expected to generate long-term savings of more than $83 million.
The initiative, known as the Citywide Energy Roadmap, will replace or upgrade failing systems across city facilities to improve efficiency and operations. Consultants with Climatec Energy Services, who studied the project’s scope and costs, estimate that the city spends approximately $9 million annually on energy, including $3.94 million for parks and buildings, $2.46 million for wastewater, $1.39 million for streetlights, and $1.25 million for water.
Rates have climbed more than 40% over the past five years and are expected to rise further as utilities transition underground and insurance costs grow.
“The cost of doing nothing is just too great,” said Ashley Lough of Climatec during an Aug. 20 council meeting.
Although the $56 million price tag represents only a portion of the $150 million in total infrastructure needs, city staff prioritized a third of the projects. The council approved the plan unanimously, 4-0, with Deputy Mayor Consuelo Martinez absent.
“I’m really looking forward to upgrading our infrastructure, which is very, very necessary here in Escondido,” said Councilmember Joe Garcia.
Upgrades will include new HVAC and building automation systems, LED lighting, solar and energy storage, electric vehicle charging stations, microgrids, transformers, roof improvements, and upgrades to water and wastewater treatment facilities. Tyler Girtman of Climatec said the work will also help the city meet state mandates for LED lighting and phasing out banned refrigerants.
Plans call for retro-commissioning at three sites, high-efficiency HVAC systems at 21 sites, central plant and electrical upgrades at two sites, and building automation systems at 16 sites. Crews will install LED lighting at 26 sites, add occupancy sensors and dimming controls at 17 sites, and install sports lighting at three locations.
Other improvements include microgrid systems at four sites, solar panels at six sites, EV chargers at 10 sites and high-efficiency transformers at 10 sites.
Water system upgrades include the installation of high-efficiency wash water recovery pumps, variable frequency drives, and hydraulic model development. Wastewater projects include high-efficiency blowers and controls, aeration basin enhancements, pump modernizations, dissolved oxygen control optimization, and a bioenergy facility study.
The upgrades will be funded primarily through a $46 million financing agreement with Banc of America Public Capital Corp., which carries a 20-year term and a 4.022% interest rate, resulting in an annual interest payment of $3.44 million. To supplement the financing, the city will contribute $7.9 million from general, water, and wastewater funds, as well as $3.8 million from Measure I, the one-cent sales tax that voters approved last year.
Since the savings will take years to fully materialize, staff recommended using Measure I funds to cover debt service in the early years. Annual savings are projected to exceed debt payments by 2036.
“When you look forward over the next 20 years, should the voters choose not to renew Measure I, this is just another thing that sets us up for success and tackles that structural deficit that the city’s been facing for so long,” said Mayor Dane White.
Climatec has guaranteed the savings, projected at 178%. If the targets are not met, the company will be required to add improvements at its own expense or repay the city for any shortfalls.
