STAFF REPORT
City of Lancaster
CC 9
10/8/2024
TN
Date:October 8, 2024
To: Mayor Parris and City Council Members
From: Jason Caudle, CEO – Lancaster Energy
Subject:Third Amendment to the Agreement with PowerFlex Systems, Inc., for the City Hall Resiliency Project
Recommendation:
1. Approve the Third Amendment to the Agreement with PowerFlex Systems, Inc., (PowerFlex) for the City Hall Resiliency Project.
2. Authorize the City Manager, or his designee, to sign all agreements with PowerFlex and Southern California Edison related to the project.
G.C. Section 84308: Yes
Fiscal Impact:
$23,246.00, bringing the total amount to $1,506,146.00; with these actions, sufficient funds are available in expenditure account CP11ZZ008 to cover the added project costs. The City is eligible for an Investment Tax Credit (ITC) equal to 30% of the project costs or $485,379.00.
The ITC will cover all of the required system upgrades and a portion of the project costs.
PowerFlex will support the City in applying for the ITC reimbursement.
Background:
Staff has continued working with PowerFlex to move the City Hall Resiliency project forward.
Most recently, Southern California Edison (SCE) has given pre-approval to interconnect battery to electrical system. Battery equipment has been secured and is expected to be delivered in November of 2024. Mobilization to start construction is scheduled for early December, with expected system energization March 2024.
The purpose for this amendment is to account for adjusted system design based on findings from 1 7
9 1
As-Built electrical system at City Hall. Removing the utility upgrade support work from scope, avoiding additional direct costs from SCE to the City. Reflect adjustments to final site equipment layout, controls in heating, ventilation, and air conditioning (HVAC), area from detailed design phase. Account for Fire Code changes requiring additional block wall around BESS.
Attachment:
Third Amendment to Engineering Procurement and Construction Services Agreement with PowerFlex