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HomeMy WebLinkAboutItem 5h. Authorization to Award Battery Electric Bus Charging Infrastructure, Specification No. 2000403 Item 5h Department: Public Works Cost Center: 9501 For Agenda of: 12/2/2025 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Public Works & Utilities Director Prepared By: Emma Laplante, Engineer II SUBJECT: AUTHORIZATION TO AWARD BATTERY ELECTRIC BUS CHARGING INFRASTRUCTURE, SPECIFICATION NO. 2000403 RECOMMENDATION 1. Approve the project plans and specifications for the Battery Electric Bus Charging Infrastructure, Specification No. 2000403; and, 2. Award a construction contract to Newton Construction and Management in the amount of $290,135 for the Battery Electric Bus Charging Infrastructure, Specification No. 2000403; and, 3. Authorize the City Engineer to approve Contract Change Orders up to the available project budget (Account 2000403), including any amendments authorized by the City Manager; and, 4. Authorize the City Engineer to execute a contract with PG&E for replacement and upgrading of the existing transformer servicing the bus chargers; and, 5. Authorize staff to purchase ChargePoint chargers and power blocks from a SourceWell agreement #042221-CPI at the final price within the available project budget; and, 6. Authorize the Finance Director to transfer $370,800 from the Fleet Replacement – Bus Replacement (Account No. 2000614), to the Battery Electric Bus Charging Infrastructure (Account No. 2000403). POLICY CONTEXT This project supports Major City Goals of Climate Action, Open space, and Sustainable Transportation by implementing a shift from fossil fuel-powered buses to an all-electric fleet. The project progresses the city towards the goal of being carbon neutral by 2035 as identified in the City of San Luis Obispo’s Climate Action Plan (CAP). On May 17, 2022, Council approved a Purchasing Policy Update to the Financial Management Manual, requiring Council authorization for Public Works contracts exceeding $200,000. Page 227 of 764 Item 5h To ensure consistency across departments and simplify operations and maintenance, ChargePoint chargers will be installed for this project. ChargePoint is currently being used successfully at other city facilities. The City of San Luis Obispo Municipal Code Section 3.24.060(D) Bidding Procedures allows for direct purchasing “when supplies or equipment have been uniformly adopted in the city or otherwise standardized”. Additionally, Section 3.24.060 (E) permits direct purchasing “when the purchase will be made cooperatively with one, or more, other units of government, or from a local dealer within the city limits that can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions”. The City will use a Sourcewell1 cooperative purchasing agreement to procure the ChargePoint EV chargers. This agreement leverages a competitively solicited contract that meets public procurement requirements, providing pre-negotiated pricing and terms. Using Sourcewell ensures cost-effectiveness, compliance, and efficiency in acquiring standardized charging infrastructure. Sourcewell has also been used for previous bus and other City purchases, and its cooperative pricing is lower than quotes received directly from ChargePoint, making it the preferred method for procuring the chargers. DISCUSSION Background On November 15, 2022, Council approved the first phase of charging infrastructure at the Transit Yard. That project installed two (2) ChargePoint Express 250 bus chargers, along with the electrical and site improvements necessary to support expansion of the electric bus fleet. On July 11, 2023, Council approved the purchase of six (6) Gillig Electric Buses, which have arrived and are currently being retrofitted with the City-required technology and branding. The buses will be ready for service in early 2026, but will not begin service until the additional charging infrastructure is installed. There are currently two (2) electric buses in service that were purchased in 2022, making a total of eight (8) zero-emission buses. The purchase of these buses aligns with the State of California’s Air Resources Board requirement to have 100% zero-emission transit vehicles by 2040 and supports the City’s goal of achieving carbon neutrality by 2035. However, the two existing chargers on site are insufficient to simultaneously charge all eight (8) buses and maintain full-time service. Therefore, installation of additional chargers and supporting infrastructure is needed to accommodate the expanded electric bus fleet. 1 Sourcewell is a Government agency created by the Minnesota legislature to procure cooperative agreements. Page 228 of 764 Item 5h Project Scope The final build-out to support electric buses at the Transit Yard will include six (6) Power Blocks and twelve (12) ChargePoint Express Plus Chargers. The scope of this specific project includes the installation of four (4) ChargePoint Express Plus chargers and two (2) ChargePoint Power Blocks. The purpose of the power blocks is to convert AC power to DC power, with each Power Block servicing two (2) Express Plus Chargers. To ease future installation of the power blocks, the scope also includes construction of the concrete foundations and conduit stub -ups for the four (4) future power blocks. Furthermore, due to the increased electrical demand required to charge eight buses, the existing 400-kilovolt-amperes (kVA) PG&E transformer will be upgraded to a 750-kVA transformer. The project will be completed under three different contracts to complete the scope outlined above. The construction contract for the installation of the chargers is recommended to be awarded to Newton Construction. The chargers will be purchased with a Sourcewell Cooperative agreement, which has been utilized for other projects by the city. Lastly, there will be a contract with PG&E for the installation of the transfo rmer. This phase of installation utilizes a different model of charger than those installed during the first phase. The new ChargePoint Express Plus units can fully charge a bus in approximately 3.5 hours, twice as fast as the previously installed chargers. The newly purchased electric bus will use an estimated 80% of its battery on the longer routes and 60% on shorter routes. The buses will need to be charged every night in order to be used for the next day's service. This increased efficiency allows for greater flexibility in scheduling bus charging throughout the day and reduces exposure to peak electricity rates. At the time of the first phase of construction in 2022, ChargePoint Express Plus chargers were not yet available. The advertised project scope also included an additive alternative scope to install one (1) power block and two (2) additional chargers. Due to funding constraints, the alternate scope is not recommended for award at this time. Project Advertisement and Bid Results An initial Bid opening was held on August 21st, 2025. The City received one bid that was deemed non-responsive and was therefore rejected. The project was subsequently readvertised, and the second bid opening was held on November 4th, 2025. Two bids were received. Upon review, the lowest bid from Lee Wilson Electrical was found non - responsive due to not meeting the required number of prior electric vehicle charging reference projects as specified in the Notice to Bidders. The second bid, subm itted by Newton Construction, was determined to be responsive. Both bids exceeded the Engineer’s Estimate of $265,650, reflecting ongoing cost escalation and a limited pool of contractors qualified to complete this type of project. Staff recommends awarding the project to Newton Construction, even though it is higher than the Engineer’s Estimate. It is unlikely that bids would decrease if the project were to be readvertised, and doing so would cause further delays to the implementation of the EV buses that are currently on site. Page 229 of 764 Item 5h Engineer’s Estimate Lee Wilson Electrical Newton Construction & Management Base Bid: $222,000.00 $253,899.00 $290,135.00 Additive Alternative: $43,550.20 $104,150.00 $112,050.20 Total: $265,550.00 $358,049.00 $402,185.00 The total cost of the listed bid results above does not include the purchase of the chargers and power blocks. The City will be purchasing those separately with an estimated cost of $510,000. There will also be an additional anticipated cost of $170,000 fo r the purchase of the transformer from PG&E for a total project cost of $1,103,225. Previous Council or Advisory Body Action This project was identified in the 2023-2025 Financial Plan that was approved by Council. On January 14, 2025 Council approved the execution of an agreement with SLOCOG for the city to receive $395,000 in grant funding from Senate Bill (SB) 125 and appropriate those funds to Project No. 2000403 for installation of the EV infrastructure needed at the Transit Yard. On June 17, 2025 Council approved the transfer to Project No. 2000403 of $14,868 in Low Carbon Transit Operations Program (LCTOP) funds and $69,156 in reassigned LCTOP competitive funds from project account 200058, which was the remaining balance from the original project in 2022. Public Engagement Public engagement occurred when the Project was first identified and included in the City’s 2023–25 Financial Plan. CONCURRENCE The Public Works Department, Fire Department, and City Administration have reviewed and concurred with the project. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15301 Class 1 (Existing Facilities) of California Environmental Quality Act (CEQA) Guidelines because this project proposes work within the existing transit facility. The project is consistent with the applicable general plan policies as well as with applicable City Regulations. A Notice of Exemption has been filed with the Community Development Department. Page 230 of 764 Item 5h FISCAL IMPACT N/A Budgeted: Yes Budget Year: 2025-2027 Funding Identified: Yes Fiscal Analysis: The total project cost of $1,103,225 includes the construction costs, construction contingencies, design support during construction, materials testing, purchase/installation of PG&E transformer and purchase of the EV chargers and power b locks. As a side note, the purchase price of chargers and power blocks was quoted at $510,000 and is not expected to fluctuate significantly. The project is funded through a combination of federal and state grants, along with remaining funding from the previous transit project and bus purchases. Federal Grant FTA 5307 can only be used for the purchase of the Charging Equipment; it can not be used for construction or site improvements. The other funding sources do not have any use restrictions and can be used to install and complete the site work. Funding Sources Total Budget Available Current Transfer Request Account Balance (Account 2000403) Remaining Account Balance (Account 2000614) Annual Ongoing Cost State: Low Carbon Transit Operations Program (LCTOP) $268,299.00 $0 $268,299.00 $0 $0.00 Federal: SB 125 $395,000.00 $0 $395,000.00 $0 $0.00 State: Transit Fund (LCTOP) $69,156.00 $0 $69,156.00 $0 $0.00 FTA 5307 (2000614) $534,834.70 $315,180.0 0 $315,180.00 $219,654.70 $0.00 TDA (2000614) $94,382.30 $55,620.00 $55,620.00 $38,762.30 $0.00 Total $1,361,672.00 $370,800 $1,103,255.00 $258,417 $0.00 Staff recommend transferring $315,180 FTA 5307 grant funds and $55,620 TDA grants funds, $370,800 total, from project account 2000614 to project account 2000403. The funds in account 2000614 are remaining grant funds from the purchase of the two electric buses, allocated for the construction cost of the EV charging infrastructure. There will be a remaining balance of $258,417.00 in project account 2000614. Page 231 of 764 Item 5h Battery Electric Bus Infrastructure No. 2000403 Battery Electric Bus Charging Infrastructure (2000403) Project Total Costs Project Costs LCTOP SB 125 CIP – Transit Fund (LCTOP) FTA 5307 TDA Construction Bid - Base: $44,135.20 $246,000 $0 $0 $0 $290,135.20 Total Construction Cost: $44,135.20 $246,000 $0 $0 $0 $290,135 Charger + Power Block Purchase (Base Bid): $0 $139,200 $0 $315,180 $55,620 $510,000 Material Testing $10,000 $0 $5,000 $0 $0 $15,000 Printing $500 $0 $0 $0 $0 $500 PG&E Transformer: $170,000 $0 $0 $0 $0 $170,000 Construction Contingencies (12%): $43,663.60 $9,800 $64,156 $0 $0 $117,620.60 Total Project Cost $268,299 $395,000 $69,156 $315,180 $55,620 $1,103,225 Current Project Balance $268,299 $395,000 $69,156 $315,180 $55,620 $1,103,255 Total Project (Base) Project Remaining Balance $0 $0 $0 $0 $0 $0 The cost associated with the transformer is an estimate based on staff research of similar projects. PG&E has not been able to provide a quote for this work. However, PG&E did verify that there will be minimal site work associated with the upgrade (i .e. new concrete pad), which staff anticipates will reduce the overall cost. ALTERNATIVES Deny authorization to award the project. City Council may choose not to authorize the award of the project. Choosing not to proceed at this time would result in significant delays to the deployment of the newly acquired electric buses, potent ially impacting service schedules and operational planning. Deny authorization to award the project and rebid the project for a third time. City Council may choose not to authorize the award of the project and request to readvertise the project. This change would most likely result in higher overall construction costs and additional delays to both the charger installation and the rollout of the electric bus fleet . Authorize the award of the project and request that the procurement of the chargers and power blocks be publicly bid. City Council may choose to authorize the award of the construction contract with Newton, but request staff to competitively bid the procurement of the chargers and power blocks instead of procuring them using the Sourcewell agreement. This would result in several months of delays to project completion, and could also result in higher costs for the chargers. ATTACHMENTS A - Battery Electric Bus Charging Infrastructure – Plans B - Battery Electric Bus Charging Infrastructure – Specials C- Contractor Agreement Page 232 of 764 0 AGREEMENT THIS AGREEMENT, made on , by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the Owner) and NEWTON CONSTRUCTION & MANAGEMENT, INC. (hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of BATTERY ELECTRIC BUS CHARGING INFRASTRUCTURE, SPECIFICATION NO. 20000403 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: Item No.SS(1)Item Description Unit of Measure Estimated Quantity Item Price (in figures) Total (in figures) 1 17 Clearing and Grubbing LS 1 $6,000.00 $6,000.00 2 15 Remove Chain Link Fence LF 20 $70.00 $1,400.00 3 41 Concrete Removal SQFT 402 $32.00 $12,864.00 4 26 Class II Aggregate Base CY 11 $400.00 $4,400.00 5 80 Chain Link Fence LF 53 $140.00 $7,420.00 *6 77 Pothole Existing Utilities EA 4 $500.00 $2,000.00 7 51 Power Block Concrete Pad LS 1 $30,000.00 $30,000.00 8 86 Power Block Mounting Plates EA 6 $300.00 $1,800.00 9 86 Set Power Block EA 2 $3,000.00 $6,000.00 Page 233 of 764 2 10 15 Modify Charging Station Concrete Pad and Set Charger EA 4 $4,000.00 $16,000.00 11 86 Pull Boxes EA 3 $3,000.00 $9,000.00 12 86 Conduit, Bends, and Material LS 1 $55,000.00 $47,000.00 13 86 Conductors LS 1 $92,000.00 $92,000.00 14 77 Circuit Breakers LS 1 $25,000.00 $25,000.00 15 12 Bollards EA 4 $1,800.00 $7,200.00 16 40 Concrete Pavement SQFT 402 $30.00 $12,060.00 17 84 Striping – Thermoplastic LS 1 $1,750.00 $1,750.00 BID TOTAL: $290,135.20 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and Information for Bidders 2. Standard Specifications and Engineering Standards 3. Special Provisions, any Addenda, Plans and Contract Change Orders 4. Caltrans Standard Specifications and Standard Plans 2015 5. Accepted Bid and Bid Bond 6. List of Subcontractors 7. Public Contract Code Sections 10285.1 Statement 8. Public Contract Code Section 10162 Questionnaire 9. Public Contract Code Section 10232 Statement 10.Labor Code Section 1725.5 Statements 11.Bidder Acknowledgements 12.Qualifications 13.Non-collusion Declaration 14.Agreement and Bonds 15.Insurance Requirements and Forms Page 234 of 764 3 ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City. ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. ARTICLE VI. Contractor is subject to compliance with all Required Federal Clauses per Exhibit A. Page 235 of 764 4 IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation CONTRACTOR: Newton Construction & Management, Inc. By: Whitney McDonald, City Manager Eric Newton Its: President and Secretary APPROVED AS TO FORM J. Christine Dietrick City Attorney By: Rodessa Newton Its: Treasurer Page 236 of 764