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Bell Gardens approves $6 million Phase 2 energy project with ABM to modernize parks and civic facilities
Summary
Council approved a Phase 2 energy conservation and facilities upgrade agreement with ABM Building Solutions, a roughly $6 million, 20‑year financed project aimed at HVAC upgrades, solar and battery storage at Ford Park, generator and switchgear work for critical facilities, and marquee/digital signage; staff and ABM said guaranteed savings exceed project cost over the life of the contract and an estimated $795,000 investment tax credit is time‑sensitive.
The Bell Gardens City Council on April 13 approved resolutions authorizing a Phase 2 energy conservation and infrastructure upgrade project with ABM Building Solutions and related financing arrangements.
Public works staff and ABM described a package of facility improvements including a new HVAC system for the Ford Park recreation center (to support the gym as a community cooling center), rooftop solar and a battery energy storage system at Ford Park, replacement of an underground diesel fuel tank, switchgear and generator upgrades for police and city‑hall operations, irrigation pump replacements, HVAC modernization at other parks and restoration of marquee/digital signage at Ford Park and Veterans Park.
ABM project lead Nick Thomas said the total project cost is approximately $6 million and projected guaranteed savings over the life of the agreement are roughly $9.4 million. Thomas and staff emphasized a time‑sensitive federal Investment Tax Credit (ITC) estimated at about $795,000 that requires at least 5% project completion by July 5, 2026, to preserve the incentive.
Council members asked whether the 5% completion requirement was realistic. ABM and city staff said reaching the 5% threshold is feasible by placing equipment orders and starting engineering work immediately; they described the practical steps to meet the ITC deadline and noted that failure to qualify could be treated as a contractual breach with further negotiation or remedies.
Finance structure: staff said the project will be financed with a 20‑year tax‑exempt municipal lease at a fixed rate; staff described guaranteed energy‑cost savings that will offset the payment schedule so the project requires no out‑of‑pocket capital from the general fund. Staff reported an annual net savings estimate and the lease structure includes no prepayment penalties after five years.
The council adopted Resolution No. 2026‑34 (authorizing contract execution with ABM) and related lease purchase approvals on a roll call vote (Barca: yes; Chavez: yes; Sanchez: yes; Mayor Prom: yes; Mayor De la Rosa: yes).
What’s next: Staff and ABM will proceed with procurement, ordering and early engineering tasks to meet the federal ITC deadline and return with implementation details as the project enters construction.
