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Home My WebLink About03.b. Amendment to the Existing Agreement with Optony, Inc. to Raise the Cost Ceiling from $197,000 to $447,000Page 1 of 6 Item 3.b. CDr EENI RAL SAN BOARD OF •' �J POSITION PAPER CENTRAL CONTRA COSTA SANITARY DISTRICT � � • MEETING DATE: FEBRUARY20, 2024 SUBJECT: REVIEW DRAFT POSITION PAPER TO CONSIDER AN AMENDMENT TO THE EXISTING AGREEMENT WITH OPTONY INC., TO RAISE THE COST CEILING FROM $197,000 TO $447,000 SUBMITTED BY: INITIATING DEPARTMENT: RITA CHENG, REGULATORY COMPLIANCE ENGINEERING AND TECHNICAL SERVICES - SENIOR ENGINEER ERC-REGULATORY COMPLIANCE REVIEWED BY: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER LORI SCHECTEL, ENVIRONMENTAL & REGULATORY COMPLIANCE DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE Authorization from the Board of Directors (Board) is required to execute an amendment to a professional engineering services agreement for amounts greater than $200,000. BACKGROUND The Advanced Clean Fleets (ACF) Regulation, approved by the California Air Resources Board (CARB) in April 2023, aims to accelerate the adoption of medium- and heavy-duty zero -emission vehicles in public and private fleets across the state. This regulation requires state and local government agencies, including special districts, to ensure that 50 percent of their medium- and heavy-duty vehicle purchases are zero - emission vehicles (ZEVs) starting on January 1, 2024, and 100 percent of medium- and heavy-duty vehicle purchases are ZEVs beginning on January 1, 2027. 1 n addition to the ACF Regulation, the purchase of light -duty vehicles will be impacted by the CARB Advanced Clean Cars (ACC) I I Regulation that requires vehicle manufacturers to increase the share of ZEVs sold each year, ultimately reaching 100 percent ZEVs by 2035. Recognizing the short timelines set by the ACF Regulation, staff retained the services of a fleet electrification consultant, Optony Inc. (Optony) through competitive procurement and developed a District - wide Fleet Electrification Strategic Plan. February 20, 2024 REEP Committee Meeting Agenda Packet - Page 7 of 39 Page 2 of 6 The Fleet Electrification Strategic Plan outlines a multi -year approach to electrify Central San's fleet and includes preliminary site designs for constructing electric vehicle charging stations (EVCS) in three phases. Following the completion of Central San's Fleet Electrification Strategic Plan, Capital Projects plans to execute the design and construction of the first phase of the EVCS installation in 2024 at the Martinez and Collection Systems Operations campuses. Capital Projects will be following a design -build approach to expedite the installation of the first phase of the EVCS. Design -build is a common project delivery approach for EVCS installation projects. Optony has experience with design -build projects and can provide guidance with the procurement of EVCS. To ensure the continuation of fleet electrification support services, staff is recommending an amendment to the existing professional consulting services agreement with Optony to support the first phase of EVCS design, evaluate and apply for external funding opportunities, and support compliance assurance activities related to the ACF Regulation. The proposed amendment may cover the following support services: • Provide procurement support, which may include assistance with Requests for Proposals (RFP) for EVCS design and construction, vendor selection, and contract negotiations. • Develop 30 percent EVCE site designs with electrical load calculations and single -line electrical diagrams to support the RFP. • Prepare applications for the PG&E Electric Vehicle Fleets Program to receive upgraded electrical service to accommodate EV charging infrastructure and coordinate with PG&E on Central San's behalf to obtain charging infrastructure funding. • Evaluate potential EV charging infrastructure funding sources and support application processes to obtain external funding. • Support ACF Regulation compliance activities, which may include compliance reporting, working with CARB to apply for exemptions for specialty vehicles, and researching the latest options for EV replacements. ALTERNATIVES/CONSIDERATIONS The Board could reject staff's recommendation to authorize the amendment. However, this is not recommended by staff as Optony has specialized knowledge and experience on fleet electrification that does not yet exist among Central San staff. Due to a lack of staffing resources, it is in Central San's best interest to have Optony provide as -needed support throughout the upcoming RFP for design -build and evaluation of funding opportunities. Conducting another formal RFP process and selecting a new consultant to provide fleet electrification support services will impact Central San's ability to comply with the ACF Regulation, given its short compliance timeline. FINANCIAL IMPACTS This amendment would add $250,000 to the existing agreement, increasing the cost ceiling from $197,000 to $447,000. Work related to capital improvements executed under the amendment will be capitalized under the Plant Operations Building (POB) EVCS Project, District Project 8252. COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this matter at its February 20, 2024 meeting and recommended February 20, 2024 REEP Committee Meeting Agenda Packet - Page 8 of 39 Page 3 of 6 RECOMMENDED BOARD ACTION Authorize the General Manager to amend an existing professional engineering services agreement with Optony, Inc., in an amount not to exceed $250,000 increasing the agreement cost ceiling from $197,000 to $447,000 for fleet electrification support services. Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions ATTACHMENTS: 1. Presentation February 20, 2024 REEP Committee Meeting Agenda Packet - Page 9 of 39 Page 4 of 6 ATTACHMENT 1 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 10 of 39 Page 5 of 6 Amendment to Support Continuation of Fleet Electrification Support Services Capital Projects is planning to execute design and construction of the first phase of the electric vehicle charging station (EVCS) installation in 2024 at the Martinez and Collection Systems Operations campuses. To ensure the continuation of fleet electrification support services, staff is recommending an amendment to the existing professional consulting services agreement with Optony, Inc. The amendment will allow as -needed assistance for: Procurement and technical support during the first phase of EVCS design; Continued evaluation of external funding opportunities; and Support compliance assurance activities related to the Advanced Clean Fleets (ACF) Regulation. 3 Financial Impacts This amendment would add $250,000 to the existing agreement, increasing the cost ceiling from $197,000 to $447,000. Work related to capital improvements executed under the amendment will be capitalized under the POB EV Charging Station Project, District Project 8252. 4 It s February 20, 2024 REEP Committee Meeting Agenda Packet - Page 11 of 39 2 Page 6 of 6 Position Paper's Request Authorize the General Manager to amend an existing Professional Engineering Services .; Agreement with Optony, Inc. in an amount not to exceed $250,000, increasing the total cost ceiling to $447,000 for as -needed fleet electrification support 's services through December 31, 2026. r February 20, 2024 REEP Committee Meeting Agenda Packet - Page 12 of 39 3