Item 479/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Chief El-Farra
Dept:
City Manager Dept: Police
Date: 12/10/2024
Subject: Approval of a Master Operation & Maintenance Agreement with CEG Solutions, LLC to provide operation and maintenance services for the photovoltaic system and battery energy storage system for the Civic Center Revitalization Project. (Cost: $180,511) (Action Item)
OBJECTIVE
To secure City Council approval for a Master Operation & Maintenance Agreement with Construction Engineering Group Solutions, LLC (CEG) to provide operation and maintenance services for the photovoltaic system and battery energy storage system for the Civic Center Revitalization Project (Project).
BACKGROUND
On March 26, 2024, City Council approved the Civic Center Revitalization Project for the development of a new public safety facility, parking garage and re -imagined Civic Center Park. The new facilities are now fully designed and under construction. The primary structure consists of a 104,000 sf, three story building, with an integrated four level parking garage that includes public parking. It is anticipated Phase I (public safety building and garage) will be completed September 2026. Phase II of the Project includes the demolition of the existing police station and construction of a new 3.7 acre Civic Center Park. Phase II completion is anticipated in October 2027.
DISCUSSION
An important Project goal is implementing cost -effective building systems with long -term reliable operability. To ensure the design aligns with this goal, Verdical Group was hired to work closely with the designers. Verdigal Group’s role concentrates on providing input that support energy efficiency and low maintenance costs. They also provided recommendations on industry best practices, as developed by the U.S. Green Building Council, for achieving Leadership in Energy and Environmental Design (LEED) certifi cation standards . In a preliminary review of the building design under the LEED rating system, the project is currently meeting “Silver” standards with a total of 59 points. It is only one point away from Item 479/2024
meeting “Gold” standards, so the team is working with the Verdical Group to identify the best opportunities to add elements to the project that will raise it to Gold level.
One category of the P roject’s energy efficiency outputs is renewable energy. Clark Construction is working with CEG on preli minary plans for the installation of a photovoltaic (PV) system on top of the new parking garage. The PV panels would be set on top of steel beams in a carport style (Exhibit A – Image). The design shows capacity for a 320kW system, providing enough gree n energy to support about 72 percent of estimated building power usage. The carport style also provides shade for the upper parking level, thus lowering the heat gain effect.
A Battery Energy Storage System (BESS) with a 500kWh capacity is included as part of the design. The BESS will store excess energy generated by the PV system and will discharge it during peak hours when the electricity rates are the highest. The collective system strengthens the Projects’ LEED point calculation adding six points to the current total.
To maximize energy production from the PV and BESS, operational oversight and routine maintenance is key. City staff do not have the equipment or expertise necessary to monitor and maintain the system once installed, so staff is seeking to contract with CEG for this service. The proposed contract is attached (Exhibit B - Agreement) and includes these major elements:
Installation and active review of a generation database software monitoring system. Provide annual reports on energy generation and whether it aligns with performance standards.
Cleaning of the PV array twice a year.
Emergency response to address any system outage alerts. Additional Service as needed for replacement of individual panels or other system components not properly working.
The initial term of the agreement is planned for five-years, with annual cost of living increases as specified in Table 1A below. At the City’s option, the agreement can be renewed for up to three additional 5-year terms for a total term not to exceed 20-years.
FINANCIAL IMPACT
The Master Operation & Maintenance Agreement would be paid annually once the renewable energy system is fully operational, which is currently estimated as September 2026. The initial fee is $34,000 and includes an annual cost of living increase of 3% for a total amount of $180,511 over the five-year term. Table 1A on the following page provides the payment schedule.
Item 479/2024
Table 1A
Year Service Fee
1 $34,000
2 $35,020
3 $36,071
4 $37,153
5 $38,267
$180,511
The cost will be programed in future year’s General Fund operating budget.
RECOMMENDATION
It is recommended that the City Council:
Approve the Master Operation & Maintenance Agreement; and Authorize the City Manager to execute the Master Operation & Maintenance Agreement by and between the City of Garden Grove and CEG Solutions LLC, in an amount not to exceed $180,511, and to make minor modifications as appropriate thereto, on behalf of the City.
By: Craig Beck, Project Executive and Grace Kim, Project Manager
ATTACHMENT(S)
1. Exhibit A - Image
2. Exhibit B - Agreement