TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:May 13, 2025
SUBJECT: Fleet Electrification and Battery Storage Projects at the Municipal Service Center
RECOMMENDATION:
1. Approve a Single-Source designation for the selection of Optony, Inc. for consulting services related to Fleet Electrification and Battery Storage projects at the Municipal Service Center (MSC).
2. Approve Professional Services Agreement with Optony Inc. (Optony), Santa Clara, CA, for consulting services for Fleet Electrification and Battery Storage projects including CI 5473 (MSC Transit Electric Vehicle [EV] Charging Infrastructure), CI 5726 (Transit Battery Energy Storage at MSC), CI 5710 (MSC Fleet EV Charging) and CI 5760 (MSC Fleet Emergency Generator and Battery Energy Storage in the proposed FY 2025-27 CIP Budget) in the amount of $145,000, plus extra services of $50,000 for a total amount of $195,000 with a term ending May 1, 2028, with one, two-year option to extend the agreement.
3. Approve budget appropriation in FY 2024-25 in the amount of $10,757 from A/C #001-0000-311-1000 (General Fund, Fund Balance) to A/C #001-5640-631-8300 (General Fund – MSC Fleet Emergency Generator and Battery Energy Storage Project CI 5760).
4. Approve expenditure/expense in the amount of $195,000 for the Agreement with Optony as follows: $46,102 from A/C #651-5540-682-8300 (Transportation Fund – MSC Transit EV Charging Infrastructure CI 5473), $107,571 from A/C #651-5540-682-8300 (Transportation Fund – Transit Battery Energy Storage at MSC CI 5726), $30,570 from A/C #001-5650-631-8300 (General Fund – MSC Fleet EV Charging CI 5710), and $10,757 from A/C #001-5640-631-8300 (General Fund – MSC Fleet Emergency Generator and Battery Energy Storage CI 5760).
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5. Approve the issuance of a Request for Proposals/Qualifications (RFP/Q) for procurement of design and construction of the MSC Fleet Electrification and Battery Storage projects (CI 5473, CI 5726, CI 5710, and CI 5760).
6. Find that this action is not a project defined under the California Environmental Act (CEQA).
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$10,757 Increase to Adopted FY 2024-25 General Fund Budget. A $10,757 increase to the Adopted FY 2024-25 General Fund Budget is requested for the MSC Fleet Emergency Generator and Battery Energy Storage Project CI 5760. CI 5760 is a new Capital Improvement Project in the Proposed FYs 2025-2027 CIP Budget. Additional project budget will be included in General Fund ($275,000 including design), Water Fund ($125,000), and Wastewater Fund ($125,000) in the upcoming biennial budget process with a total proposed project budget of $525,000. $1,200,000 is included in the Adopted FY 2024-25 Transportation Fund Budget for CI 5726, and $2,250,000 in carryover budget is included in the FY 2024- 25 Transportation Fund Budget for CI 5473. $130,550 in carryover budget is included in the General Fund Budget, $18,650 in carryover budget is included in the Lighting and Landscaping Fund Budget, $111,900 in carryover budget is included in the Water Fund Budget, $111,900 in carryover budget is included in the Wastewater Fund Budget for CI 5710, and an additional $60,000 reimbursement from the Energized Communities Grant.
BACKGROUND:
The California Air Resources Board’s (CARB) Innovative Clean Transit (ICT) regulation, adopted in December 2018, requires all public transit agencies to gradually transition to a 100 percent zero-emission bus (ZEB) fleet. Beginning in 2029, 100 percent of new purchases by transit agencies must be ZEBs, with a goal for full ZEB transition by 2040. The requirement applies to all transit agencies that own, operate, or lease buses with a gross vehicle weight rating (GVWR) greater than 14,000 pounds. The CARB Advanced Clean Fleets (ACF) rules also require 50 percent of vehicles purchased by state and local government fleets between 2024 and 2027 to be ZEB and 100 percent thereafter.
City Council adopted the ZEB Rollout and Implementation Plan in July 2023, and the Climate and Environmental Action Plan (CEAP) on May 7, 2024. The CEAP included three measures to support the municipal transition to EV:
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1. TR 2.7 sets goals for the City to transition the municipal fleet to electric vehicles and states that beginning in 2024, 50 percent of the City’s fleet vehicle purchases will be electric and 100 percent by 2027.
2. TR 2.8 covers the transit fleet and states that all new bus purchases should be electric.
3. TR 2.9 directs the City to construct electric vehicle charging infrastructure to support the fleet and transit transition.
To support these measures, the City applied for, and was awarded, an Energized Communities Grant of up to $250,000 from the Clean Power Alliance (CPA) to support the electrification of the City’s fleet, including Transit. The funds are to be used for assessment and planning, charging infrastructure, or the purchase of EVs.
City Council accepted the Energized Communities Grant on July 2, 2024.
As part of this grant program, CPA contracted with Optony to provide consulting services to the grant awardees. Under the CPA contract, Optony is providing the City with, and CPA is directly reimbursing Optony for, the following services (Attachment #2). These reimbursements will be charged against the City’s grant funds.
Technical Assistance Services
Task Description Budget
Fleet Analysis
Fleet Replacement Plan & Energy Needs
Assessment $20,000
Quick Design
Single Line Drawings for Civic Arts Plaza &
MSC $22,300
HCTP Design
Engineered site designs for eight level 2
chargers at Hill Canyon Treatment Plant
(HCTP) $25,000
MSC RFP
Review Review of existing MSC energy services RFP $12,000 Funding Package
Funding sources, rebates, incentives, CPA
programs, etc. $ 5,000
CPA - Direct Pay to Optony Total = $84,300
RFP/Q for MSC EV Charger and Battery Storage Projects
The MSC EV Charger and Battery Storage projects are proposed to be built with $4.0 million of existing Federal Transit Authority 5307 and TDA grant funds. The projects are expected to include the installation of the following key components:
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•Five (5) Level 2 ports and forty-two (42) Level 3 ports to serve Transit •Twelve (12) Level 2 ports and four (4) Level 3 ports to serve MSC Fleet •Four (4) additional Level 2 chargers in the MSC visitors' parking lot •Eleven (11) chargers in the MSC staff lot
•The proposed improvements will also include the installation of EV Charger Load Management Systems, Battery Energy Storage Systems (BESS), and natural gas generators for Transit and Fleet EV chargers.
The projects are being combined into one larger design and construction project due to the extensive underground electrical work and the need to coordinate the installations while minimizing impacts on the daily operations at the MSC. The estimated cost for the entire project is in the range of $8 – $10 million.
Staff are proposing to utilize a services procurement method authorized by Government Code Sections 4217.10-4217.18 for Energy Conservation projects to complete this project. This method allows one entity to do both the design and construction of the project. This process was utilized successfully for the recent Solar Carport Project (CI 5265) at the MSC and the Citywide Solar Project (CI 5562). This procurement strategy allows the City to factor in both cost competitiveness and qualifications when selecting a designer/contractor as opposed to only considering the lowest bid.
DISCUSSION/ANALYSIS:
These are complex projects that require substantial technical expertise to develop the RFP/Q, review proposals, negotiate contract details, and oversee the contractor throughout the design and construction processes. Selecting a highly qualified contractor and maintaining a tight schedule are essential due to the extensive electrification needs and the requirement that the site remain operational during construction. CPA hired Optony as their prime consultant for work under the Energized Communities Grant. As part of that grant, Optony has already provided expert review and guidance in refining the MSC Energy Services RFP/Q and is uniquely familiar with the entire project.
Retaining Optony to assist in helping provide technical support during the RFP/Q, construction, and startup phase will ensure that the City has continual access to outside expertise on a complex project. In addition, by retaining Optony, CPA has agreed to pay for a portion of the work done under the City contract. Staff therefore recommend that City Council approve a single source designation for the selection of Optony to continue to provide services on the MSC Energy Services Project and approve the proposed professional services agreement.
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The scope of CPA’s contract with Optony for grant-related services does not include ongoing support and oversight of a project of this magnitude. However, CPA staff agreed that such tasks are consistent with the intent of the grant and authorized the use of the Energized Communities Grant funds to support the project. In order to do that, CPA requested that the City enter into an agreement with Optony separately and provide direct oversight of Optony’s work and be reimbursed by CPA.
The City’s Professional Services Agreement with Optony (Attachment #1) will include the tasks included in the tables below. CPA will reimburse the City for the costs of Tasks 1 through 3 below related to the MSC Energy Services Project:
Fleet Electrification Services Reimbursed by CPA Grant* Task Description Hours Budget Requirements
1 RFP/Q and Contractor Selection 130 $25,000
2 Contract Administration 100 $20,000
3 Contingency (CPA approved
items) 75 $15,000 Requires CPA
approval
$60,000
Tasks 4, 5, and 6 for additional contract management oversight needed from Optony are beyond the scope of the CPA Fleet Electrification Grant and will be paid for with City funds.
Fleet Electrification Services City Funded
Task Description Hours Budget Requirements
4 Project Design Review, Plan
Check and Related Meetings 220 $43,000
5 Project Construction and
Commissioning 290 $57,000
6 Contingency for non-CPA
Approved Tasks and Additional
Site Walks
TBD $35,000
City Project
Manager
Approval
$135,000
Staff also recommend that City Council approve the release of the MSC Energy Services RFP/Q. Authorization to release the MSC Energy Services RFP/Q enables staff to receive and evaluate proposals.
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Staff will bring the project back to City Council for the award of the Energy Services Agreement. That staff report will provide details on the project costs, funding sources, including grants, and a project timeline.
This action is not a project as defined under the CEQA because this action will not result in a direct or foreseeable indirect physical change in the environment [14 CC 15060(c)].
This project meets City Council’s Top Ten Priorities #6 and #7, “Environmental Sustainability” and “Public Works and Infrastructure Investments.” CIP PROJECT PRIORITY (as outlined in the Adopted FY 2023-24 & FY 2024- 25 CIP Program Budget):
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The Levine Act disclosure form for Optony has been completed and is included as Exhibit E in Attachment #1.
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: John Brooks, Sr. Analyst
Attachments:
Attachment #1 – Optony Professional Services Agreement
Attachment #2 – CPA EFT Roadmap
DPW: 850-20\ev\Council\2025\051325\CI 5473 5726 5710 5760\Fleet Electrification & Battery Projects at the MSC staff report.docx