CITY COUNCIL STAFF REPORT
Meeting Date: February 07, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION __-22 AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH TESLA, INC. TO PURCHASE A
SOLAR POWER SYSTEM FOR THE NEW PLEASANT HILL LIBRARY
AND AUTHORIZING STAFF TO FACILITATE LIBRARY MOVE-IN,
UTILITIES, AND TECHNOLOGY (LOW VOLTAGE SYSTEMS)
SYNOPSIS
Adopt a resolution to authorize the City Manger to exececute an agreement with Tesla, Inc to purchase a solar power system for the new Pleasant Hill Library and to authorize staff to facilitate the Library move-in, Utilities, and Technology (Low Voltage Systems), which includes allocating a portion of the Utilities Fund to cover the ongoing utility services and tie-in expenditures.
DISCUSSION
Background
In August 2020, City Council awarded a construction contract to BHM Construction Inc. for the New Pleasant Hill Library Project No. 06-20 for the amount of $21,252,282. The project construction cost is $21,252,282. This includes a base bid of $20,917,282 and selected bid alternates of $335,000. It is reasonable to include a construction contingency of ten percent or $2,125,228, which is typical for this type of construction project. The total construction cost is not to exceed $23,377,510.
Though the cost for low voltage systems and utilities and move-in were anticipated and included in the initial budget for CIP (Project MK-4) budget cycle FY20/25, neither the base contract for BHM Construction nor the initial CIP (Project MK-4) budget included the cost for the purchase and installation of a photovoltaic solar panel system. The Library was designed to be solar ready with the intent of adding photovoltaic panels after completion of the library.
Receiving a favorable construction bid result, advancement of solar panel technology, efficiency and ease of construction sequence prompted consideration for installation of photovoltaic during the construction phase.
On February 2, 2022, the Budget Committee reviewed the request to purchase the solar power system and authorize staff to facilitate the Library move-in and low voltage systems. The Committee recommended that the City Council approve the request, as proposed by City staff.
Analysis
Newly Added Scope:
Photovoltaic System $513,038:
The City of Pleasant Hill has engaged Tesla, Inc. for the purchase and installation of photovoltaic solar panels for the Project. Tesla, Inc. will install and furnish all labor and material for this work. The City and BHM will inspect and oversee the work to be performed by Tesla for compliance to preserve the metal roof system warranty of the library.
The cost of this installation is expected to be $513,038, and staff requests City Council to authorize additional funds to the Library CIP budget to cover the added scope and expense.
The City Manager will enter into an agreement with Tesla, Inc. for the amount not-to-exceed $513,038 per the terms and conditions listed on Exhibit 1 of the attached agreement in a form that is subject to approval by the City Attorney.
Anticipated and Previously Budgeted Scope:
Low Voltage System $523,750:
The low voltage systems include video surveillance, intrusion detection, access control, assisted listening, audiovisual video conference, and public address systems. Equipment for low voltage systems was anticipated to be purchased by the City using funds from the Technology budget and installed by various vendors toward the end of the construction period. Typically, low voltage systems installation needs to be coordinated closely with the work of the General Contractor and Subcontractors to ensure a smooth transition between trades. Additional time is also required by the City’s vendors to install the system equipment and to perform testing after installation. This can only be done after the building has been energized with power (PG&E) and internet/data (AT&T).
Library Move-in and Utilities $300,000:
One of the soft costs in the approved Total Project Budget is utilities: payment of water, sewer, power permits, and connection fees. The original amount allocated for the utilities is $1,000,000, and staff requests authorization to allocate $250,000 of the fund now to cover the ongoing utility services and tie-in expenditures.
The library move in expenditure of $50,000 will cover the relocation of the temporary library from the current location at City Hall to the new library.
FISCAL IMPACT
The FY 2020/2025 CIP (Project MK-4) allocated a total of $33,569,103, which is a combination of local Measure K funds ($31,086,103), Private Sources ($1,500,000), Public, Educational, and Governmental (PEG) Access funds ($680,000), and Unified Lighting District funds ($303,000). Total Project Budget allocated $523,750 for Technology (Low Voltage Systems), $50,000 for Move-In, and $1,000,000 for Utilities.
BHM Construction Inc. Base Contract $21,252,282
Construction contingency of ten percent (10%) $2,125,228 Total Construction Cost by BHM $23,377,510
Additional and Anticipated Scope
Photovoltaic System $513,038
Low Voltage Systems $523,750
Move-In $50,000
Utilities $250,000
Total Additional and Anticipated Scope Cost $1,336,788
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution to authorize the City Manager to execute an agreement with Tesla, Inc. to purchase a solar power system for the new Pleasant Hill Library and to authorize staff to facilitate the Library move-in, Utilities, and Technology (Low Voltage Systems).
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 – Tesla Solar Order - Terms and Conditions
Prepared by: Ananthan Kanagasundaram
Reviewed by: Ananthan Kanagasundaram
Approved by: June Catalano, City Manager