HomeMy WebLinkAboutItem 5e. Approve Design-Build Procurement Method and authorize an RFP for the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure Project Item 5e
Department: Public Works
Cost Center: 5008
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Anthony Ramos, Engineer III
SUBJECT: APPROVE DESIGN-BUILD PROCUREMENT METHOD AND
AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR
DESIGN AND CONSTRUCTION OF THE PHASE 1 MUNICIPAL FLEET
ELECTRIC VEHICLE CHARGING INFRASTRUCTURE PROJECT
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, making findings on energy savings and determining other
matters in connection with Energy Conservation Facilities”; and
2. Authorize the advertisement of a Request for Proposal (RFP) for the Phase 1
Municipal Fleet Electric Vehicle Charging Infrastructure Project in a form approved by
the City Engineer and City Attorney; and
3. Authorize the City Manager to execute the agreement with the preferred vendor ; and
4. Authorize the City Engineer to execute amendments to the agreement with the
selected vendor if within the available project budget; and
5. Authorize staff to pursue rebate and reimbursement opportunities related to fleet
electric vehicle charging infrastructure projects to support design-build costs.
POLICY CONTEXT
The information presented in this report is grounded in standing policy, including:
Resolution 11159 (2020 Series), which includes the goal of carbon neutrality by 2035
and a “Lead by Example” goal of carbon neutral government operations by 2030.
Resolution 11263 (2021 Series), in which the City adopted the 2030 sector specific
goal: “The City eliminates fossil fuel use in vehicle and equipment fleet.”
In addition, this project supports the Major City Goal (MCG) of Climate Action, Open
Space, and Sustainable Transportation by installing electric vehicle (EV) chargers to
support the transition to all-electric fleet vehicles.
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Item 5e
On May 17, 2022, Council approved a Purchasing Policy Update that requires Council
approval for Consultant Contracts with a value of $150,000 in appropriated budget or
more.
DISCUSSION
Background
City of San Luis Obispo Lead by Example Plan
On August 19, 2020, Council approved the City’s Climate Action Plan for Community
Recovery (CAP), and adopted Resolution 11159 (2020 Series), which established a
community-wide goal of carbon-neutrality by 2035. A central pillar of the CAP is a
commitment to achieve carbon neutral City operations by 2030. As a trusted community
leader, the City has a key role to play in implementing innovative climate actions that
reduce greenhouse gas emissions across City operations, create a more resilient and
equitable City organization, and are highly replicable.
In the City of San Luis Obispo, fleet operations are the second-largest contributor to
municipal greenhouse gas emissions, contributing approximately 39% of overall
emissions. The City’s Lead by Example plan establishes a goal to eliminate fossil fuel use
in vehicle and equipment fleet. Under this broader goal, the City aims to achieve 100%
all-electric light duty vehicles, 50% zero emissions medium and heavy-duty fleet, 100%
all-electric transit fleet, and 100% all-electric equipment.
To take action towards these goals, Council provided funding for Capital Improvement
Projects that build electric vehicle charging infrastructure to accommodate a growing
Electric Vehicle (EV) fleet. In addition, staff pursued and was awarded grant funding from
Central Coast Community Energy (3CE) to develop a comprehensive fleet electrification
strategic plan to guide future fleet charging infrastructure investments. This strategic
planning effort is underway and is expected to be completed by the end of 2022.
Proposed Streamlined Procurement Method
To streamline the installation of EV charging infrastructure for municipal fleet vehicles,
staff proposes the use of a “design/build” procurement method with a qualified vendor in
compliance with the California Government Code 4217.10, et seq., specifically, California
Government Code 4217.12.
Government Code 4217.12
Staff recommends adopting a Resolution (Attachment A) to state that the Phase 1
Municipal Fleet EV Charging Infrastructure project is exempt from certain City
procurement protocols due to its consistency with California Government Code Section
4217.12, which authorizes public agencies to enter into an energy service contract and
any necessarily related facility ground lease on terms that its governing body determines
are in the best interests of the public agency if the determination is made at a regularly
scheduled public hearing, public notice of which is given at least two weeks i n advance,
and if the governing body finds:
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Item 5e
1) That the anticipated cost to the public agency for thermal or electrical energy
or conservation services provided by the energy conservation facility under
the contract will be less than the anticipated marginal cost to the public
agency of thermal, electrical, or other energy that would have been consumed
by the public agency in the absence of those purchases.
2) That the difference, if any, between the fair rental value for the real property
subject to the facility ground lease and the agreed rent, is anticipated to be
offset by below-market energy purchases or other benefits provided under
the energy service contract.
Please note that at this time ground leases are not required as the City owns all sites
currently planned for new infrastructure.
Electric motors are substantially more efficient than internal combustion engines and the
cost per mile of an electric vehicle is substantially cheaper than an internal combustion
vehicle. Attachment B provides a cost savings analysis based on the PG&E EV Fleet
Electrification Planning calculator showing that the cumulative cost of an electric fleet
vehicle becomes cheaper than the cost of an equivalent fossil fuel vehicle over time. Since
the Municipal Fleet EV Charging Infrastructure project would lead to a decrease in fossil
fuel consumption, and a decrease in vehicle fuel costs, it is eligible as an energy
conservation facility under Government Code 4217.12 and may pursue a streamlined
procurement process.
Phase 1 of the Municipal Fleet EV Charging Infrastructure Project
For the first phase of the Municipal Fleet EV Charging Infrastructure project the City plans
to design and construct a total of five Level 2 chargers, two charging ports per charger, at
two City-owned properties to service the all-electric fleet vehicles in the Utilities and Parks
and Recreation Departments.
Pending Council action on this staff report, staff will develop a Request for Proposal (RFP)
for Phase 1 in a form agreed on by the City Engineer and City Attorney. Staff are currently
seeking information and reviewing RFPs for design/build EV Charging Infrastructure from
comparison agencies before finalization and release of the RFP. The RFP will include terms
and conditions to cover the design phase and construction of the work for this project. The
scope of the design work includes preparation of construction documents for the site work
needed for EV charging installations including conduit connections, charger mounts or
pedestals, and any parking lot modifications. Installation locations are as follows:
City Property Lot Address
Number of Level 2 EV
Chargers (two charging
ports per charger)
Repertory Theatre
Building
888 Morro St, San Luis Obispo,
CA 93401 3
Parks & Recreation
Building
1341 Nipomo St, San Luis Obispo,
CA 93401 2
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Item 5e
Phase 2 of the Municipal Fleet EV Charging Infrastructure Project
Staff will return to Council prior to entering Phase 2 of the project in order to request
authorization to release a RFP for the design-build services needed to complete the
electric vehicle charging infrastructure for the entire fleet buildout per the Fleet
Electrification Infrastructure Roadmap. The City is currently developing the Fleet
Electrification Infrastructure Roadmap, which will identify the locations, number of
chargers, and charger types needed to achieve the City’s adopted electric fleet goals.
Future phases of charger deployment will be informed by this work.
Previous Council or Advisory Body Action
August 18, 2020 – The City adopted the Climate Action Plan for Community Recovery,
which included the goal of carbon neutrality by 2035 and a goal of carbon neutral
government operations by 2030.
June 1, 2021 – Council adopted the 2021-23 Financial Plan with the Climate Action MCG
that included funding to rapidly electrify the City’s buildings and facilities.
July 6, 2021 – Council adopted the Lead by Example Plan that outlined goals for the City
to take climate action and called for fleet electrification.
June 7, 2022 – Council approved the grant submittal and award agreement between
Central Coast Community Energy and the City of San Luis Obispo to support the Fleet
Electrification Infrastructure Roadmap.
Public Engagement
The project appears in the 2021-23 Financial Plan, which was adopted on June 1, 2021
after an extensive public engagement effort.
CONCURRENCE
This report was completed in collaboration between Administration , City Attorney, and
Public Works. The Parks and Recreation and Utilities department concur with this report.
ENVIRONMENTAL REVIEW
This project was reviewed by the Community Development Department, who concur this
project is exempt under the California Environmental Quality Act (CEQA) and will file a
Notice of Exemption upon council approval. The project proposes minor alterations to
existing public facilities for installation of electric vehicle chargers and is exempt under
Section 15301 Class 1 (existing facilities).
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-2022, 2022-23
Funding Identified: Yes
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Item 5e
Fiscal Analysis:
The Fiscal Year 2021-23 Financial Plan established the Electric Vehicle Charging Station
at Various Facilities CIP (Project #1000513). Currently, there is an available balance of
$225,000 in the project account as shown in the below table. The City is eligible to
participate in the Central Coast Community Energy’s Electrify “Your Ride” program, which
provides rebates for fleet vehicle charger installation and associated site work. Based on
staff’s understanding of the current program and upon authorization from Council, staff
will pursue the eligible $16,000 in rebate and reimbursement opportunities from the
program in Fiscal Year 2022-23. Additional funding may also be available from the San
Luis Obispo Air Pollution Control District (APCD). Staff is recommending authorization to
award an agreement up to the available project budget of $225,000 plus any potential
rebates received for the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure
project. Any unspent funding will be used toward the next phase of the project.
Funding Sources Total Budget Available Annual Ongoing Cost
General Fund $150,000 N/A
State
Federal
Fees
Other: Sewer Fund $37,500 N/A
Other: Water Fund $37,500 N/A
Total $225,000* N/A
* Total does not include any potential rebates available to the project through Central Coast Community
Energy’s Electrify Your Ride program .
ALTERNATIVES
City Council could decide not to approve a streamlined procurement approach and
authorize the RFP for the Phase 1 Municipal Fleet EV Charging Infrastructure
Project. Under this alternative, the installation of EV charging infrastructure would not be
completed in a streamlined approach. This action is not recommended by staff because
it is inconsistent with the City’s climate action and lead by example goals.
ATTACHMENTS
A - Draft Resolution adopting streamlined procurement method for the EV Charging
Infrastructure Project
B - Exhibit A to the Draft Resolution - Fleet Electric Vehicle Cost Savings Analysis
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R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS
AND DETERMINING OTHER MATTERS IN CONNECTION WITH
ENERGY CONSERVATION FACILITIES
WHEREAS, it is the policy of the State of California and the intent of the State
Legislature to promote all feasible means of energy conservation and all feasible uses of
alternative energy supply sources; and
WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at
its facilities; and
WHEREAS, electric motors are substantially more efficient than internal
combustion engines and the cost per mile of an electric vehicle is substantially cheaper
than an internal combustion vehicle (as illustrated in analysis, attached here as Exhibit A
and made part hereof by this reference); and
WHEREAS, Exhibit A includes analysis showing that the anticipated cost to the
City for using electrical energy for electric vehicles will be less than the anticipated cost
of using fossil gas energy for vehicles; and
WHEREAS, the City proposes to issue a Request for Proposal and execute an
agreement (“Agreement”) with the preferred vendor (“Vendor”) for the design-build
procurement method of the Phase 1 Municipal Fleet Electric Vehicle Charging
Infrastructure Project; and
WHEREAS, pursuant to Government Code section 4217.12(a), this Council held
a regularly scheduled public hearing on September 20, 2022, public notice of which was
given not less than two weeks in advance, to receive public comment, information, and
staff input on the proposed project and procurement process.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The above recitals are true and correct.
SECTION 2. The terms of the Agreement and related agreements are in the best
interests of the City.
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Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 3. In accordance with Government Code section 4217.12, and based
on data provided by Exhibit A, public comment, and staff input received at the public
hearing, and information provided to Council in connection with the public hearing, the
Council finds that the anticipated cost to the City for electric vehicle charging stations to
be installed and operated under the Agreement will be less than the anticipated marginal
cost to the City for operating fossil fuel energy vehicles that would have been used by the
City in the absence of the installation and operation of electric vehicle charging stations
pursuant to the Agreement.
SECTION 4. The City Manager and City Attorney are hereby authorized and
directed to negotiate any further changes, insertions and omissions to the Agreement as
they reasonably deem necessary, and thereafter to execute and deliver the Agreement
following the Council’s adoption of this Resolution. The City Manager is further authorized
and directed to execute and deliver any and all papers, instruments, opinions, certificates,
affidavits and other documents and to do or cause to be done any and all other acts and
things necessary or proper for carrying out this Resolution and said Agreement.
SECTION 5. The City Engineer is hereby authorized and directed to negotiate any
amendments to Agreement as they reasonably deem necessary to complete the work, if
within the available project budget.
SECTION 6. Environmental Review. The City Council hereby determines that the
execution of an Agreement with Vendor is statutorily and categorically exempt from
environmental review on the basis that the project proposes minor alterations to existing
public facilities for installation of electric vehicle chargers (CEQA Guidelines § 15301).
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Resolution No. _____ (2022 Series) Page 3
R ______
SECTION 7. City staff are hereby authorized to file and process a Notice of CEQA
Exemption for the project in accordance with CEQA and the State CEQA Guidelines, and
the findings set forth in this Resolution.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2022.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ___________________________.
___________________________
Teresa Purrington
City Clerk
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Exhibit A
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1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid; I am over the age of
eighteen years, and not a parry interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates �to-wit:
t
in the year 2022.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at an Luis Obis o, Calif rnia, this day
of 2022.
Katy Gray, New ime Legals
Admit e' R.,ena4'.NThIG AOmvJNiMG Oa.,s/BUSINFSSi 1W Nai„✓Pr.. d Pub
SAN LUIS OBISPO
0 CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested
persons to attend a public hearing on Tuesday, September
20, 2O22 at 5:30 p.m. held in the Council Chambers at City
Hall, 990 Palm Street, San Luis Obispo. Please nine that
Zoom pargcipallon will not be supported, as this will be
an in -person mee0ng. Meetings can be viewed remotely
on Government Access Channel 20 or streamed live
from the City's YouTube channel at httpJ/yolrtuhe.ski city
Public comment prior to the start of the meeting, may
be submitted in yarning via U.S. Mail delivered to the City
Clerk's office at 9W Palm Street, San Luis Obispo, CA 93401
or by email to emailcouncil@slocity.urg.
PUBLIC NEARING ITEM:
The City Council will consider streamlining the
installation of Electric Vehicle Charging Infrastructure
for municipal fleet vehicles by using a "design/build"
procurement method with a qualified vendor under
California Government Code 4217.10. To approve this
action, Council will be asked to adopt a Resolution stating
thatthe Phase 1 Municipal Fleet EV Charging Infrastructure
Project is exempt from certain City procurement protocols
due to its consistency with California Government Code
Section 4217.12, which authorizes public agencies to
enter into an energy service contract and any necessarily
related facility ground lease on terms that its governing
body determines are in the best interests of the public
agency it the detenninadan is made at a regularly
scheduled public hearing, public notice of which is given
at least two weeks in advance
For more information, you are invited to contactAntbuny
Names of the City's Public Works Department at(805) 783-
7815 or aramos®slocity, erg
The City Council may also discuss other hearings or
business items before or after the items limed above. If
you challenge the proposed project in court, you may be
limited to raising only those issues you or someone else
raised at the public hearing described in this notice, or in
written correspondence delivered to the City Council at, or
priorto, the public hearing.
Council Agenda Reports for this meeting will be available
for review one week in advance of the meeting date on
the City's websne, under the Public Meeting Agendas
web page: https://w ..slocny.org/governmentlmayor.
and-city-council/agendas-and-minutes. Please call the
City Clerk's Office at (805) 781-7100 for more information.
The City Council meeting will be televised live on Charter
Cable Channel 20 and live streaming on the City's YouTube
channel hulcl/youtube.slo.city.
September 1, 2022