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Lemoore council approves $50 million smart‑city package and 20‑year financing for guaranteed energy savings contract

December 17, 2025 | Lemoore City, Kings County, California


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Lemoore council approves $50 million smart‑city package and 20‑year financing for guaranteed energy savings contract
The Lemoore City Council on Dec. 16 approved a combined resolution authorizing a guaranteed energy‑savings performance contract with Pacific West (doing business as Energy Systems Group Pacific West) and a tax‑exempt equipment lease purchase to finance the project.

Ashu Jain, a presenter for Energy Systems Group, told the council the package bundles interior and exterior LED lighting, HVAC replacements, EV chargers, a solar parking upgrade at the city’s CMC site and an automated meter infrastructure (AMI) program. "My name is Ashu Jain. I'm with Energy Systems Group," Jain said in the presentation introducing the scope. Jacob Goering, ESG's senior project manager, outlined work at water and wastewater facilities, and said the AMI component would include retrofit and installation of about 7,400 water meters across the city.

City and ESG staff said the core project cost is about $24,000,000 and that combined funds and financing approaches brought the total funding to roughly $50,000,000. Jain said the programed measures produce net savings of about $25,000,000 over the project's 30‑year life, and ESG representatives said they guarantee savings for 20 years: "If the savings are any less than what we estimated ... we'll write you a check," a presenter said. ESG representatives also estimated approximately $876,000 in grant funding would be secured for the city.

The council opened a public hearing and fielded questions about term length and fund sources. Local resident Philip Reed asked, "What period of time are we financing this for?" and staff replied that financing terms are projected at 20 years. City staff explained that fund responsibilities differ by project component: the water fund would pay for water‑specific work (AMI meters), the sewer fund would cover sewer projects and the general fund would cover certain general‑fund projects, with approximately $3,500,000 of general‑fund contribution mentioned and a $500,000 sewer contribution cited for specific pieces.

City Attorney and staff noted there were additional redlines to the contract that had been agreed by the parties and incorporated into the resolution presented to council. After the public hearing and brief discussion, Council member Gornick moved to approve the combined resolution; the motion passed on a recorded vote of 5‑0.

Council and staff said approving the resolution will allow procurement and financing to proceed early next year, with staff indicating work could begin in the first months of 2026 and an 18‑month completion target for the construction and installation work. Implementation tasks and final scope remain subject to the redlined agreement and standard purchasing/contracting steps.

What’s next: The resolution authorizes execution of the contract and the financing agreement; project kickoff and permitting, final contract execution incorporating the redline edits, and coordination with fund managers are the next procedural steps.

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