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CC - CONSENT ITEM: (1) Acceptance of a Grant in an Amount up to $250,000 from the Clean Power Alliance of Southern California to Design and Build the Infrastructure Necessary to Support the Battery Recharging Requirements of the City’s Fleet of Electric Vehicles; and (2) Approval of the Grant Participation Agreements and any Subsequent Amendments Related Thereto.
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Meeting Date: January 27, 2025
Contact/Dept.: Allison Cohen, Transportation Department
Joe Susca, Public Works Department
Phone Number: (310) 253-6543
(310) 253-5636
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [X] No [ ]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: Meetings and Agendas - City Council (01/22/2025); Clean Power Alliance (01/08/2025); Optony, Inc. (01/08/2025)
Dept Approval: Yanni Demitri, Public Works Director/City Engineer (01/06/2025)
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RECOMMENDATION
Staff recommends the City Council (1) accept a grant in an amount up to $250,000 from the Clean Power Alliance of Southern California to design, purchase, and install electrical system upgrades and electric vehicle (EV) charging stations necessary to support the battery recharging requirements of the City’s fleet of electric vehicles; and (2) approve related grant participation agreements and any subsequent amendments with the Clean Power Alliance of Southern California and with Optony Inc. to implement the project; CIP No. PF-045 (Develop and Implement EV Charging Stations).
BACKGROUND
The Clean Power Alliance of Southern California (the “Alliance”) is a community choice aggregator formed under the laws of California. Through execution of a Joint Powers Agreement (JPA) in 2017, the City became one of 34 other local governments located in Los Angeles and Ventura counties who comprise the Alliance. The Alliance purchases electricity from producers and then sells that power to customers located within its territory. In early 2019, the City completed the transition from power being supplied by Southern California Edison (SCE) to the Alliance. In exchange for a distribution fee however, SCE continues to deliver that electricity through its powerlines to Alliance customers, to meter use, and to invoice and collect usage fees that are remitted to the Alliance.
The Alliance currently offers three tiers, containing varying degrees of renewable power content (40%, 50% and 100%), to their customers and currently, 95% of all customers citywide purchase “100% Green Power” from the Alliance. This tier is comprised of electricity produced from 100% renewable, carbon-free sources such as geothermal, wind, hydro, and solar that is typically paired with on-site battery storage. Currently, Councilmember McMorrin is appointed to serve on the Board of Directors of the Alliance, and she actively participates in their monthly meetings.
DISCUSSION
Currently, the City’s Transportation facility has EV charging stations that primarily support the recharging needs of the City’s fleet of battery-electric buses. For the six other City facilities where various types of fleet vehicles are kept, the City hired Energetics to prepare a phased approach to transition the fleet to electric by 2042, and to determine each site’s power and EV charging station requirements.
In 2024, the Alliance launched their Energized Communities grant program, which provides up to $250,000 to each member of the Alliance to implement projects designed to assist with transitioning fossil-fuel fleets of vehicles to battery-electric models (the “Grant Program”). Through a competitive bidding process, the Alliance awarded a contract to Optony Inc. Optony will support each Grant Program participating member in preparing plans and specifications to install EV charging stations and related electric infrastructure.
City staff will request that Optony review the phased plan prepared by Energetics and prepare detailed EV charging station and electric infrastructure plans and specifications to insert into a Notice Inviting Bids (“NIB”). The NIB will be released to competing general contractors to purchase and install the EV charging stations and the electrical infrastructure necessary to support them (the “Project”).
Currently, City Hall and the Police Station combined have 107 fleet vehicles and will become Optony’s first focus. Although the EV charging stations will be designed to meet the recharging needs of the City’s fleet, the fleet will primarily use them while parked overnight, which is when electricity rates are lower. During the daytime, and provided favorable terms can be reached with a firm to process purchase transactions, staff may also allow the stations to be used by employees, visitors, and members of the public at rates intended to recover the City’s ongoing maintenance and electricity costs.
Grant Participation Agreement:
The salient deal points contained in the Alliance’s Grant Participation Agreement are:
• City agrees to implement the Project by June 30, 2029.
• City agrees to use Optony to prepare the Project’s plans and specifications at set prices established in the Alliance/Optony agreement. The Alliance agrees to pay Optony directly and to deduct that amount from the City’s $250,000 grant balance.
• City agrees to follow its own procurement process to obtain competing bids to hire a general contractor to purchase and install the EV charging stations and the electrical infrastructure necessary to support them. Thereafter, the Alliance will reimburse the City in an amount up to the remaining balance of the grant.
• Both parties agree to indemnify and hold each other harmless from claims of property damage or personal injury.
• City agrees to allow the Alliance to affix its logo on charging equipment and to publicize that the City is a recipient of the Grant Program in its marketing materials, on its website, and in media releases. If the City decides to mention the Project on its website or in media releases, the City agrees to credit the Alliance as having provided the funds necessary to implement it. In both scenarios, the parties agree to allow each other the ability to review and approve such publicity prior to its dissemination.
Optony Agreement:
• Before naming the City as additional insured on Optony’s commercial general liability insurance policy, Optony’s insurance carrier requires that there be an agreement requiring that Optony name the city as an additional insured on Optony’s commercial general liability policy. This proposed agreement between the City and Optony will meet that requirement. This agreement will also include recitals regarding the City’s relationship with the Alliance, the City’s desire to participate in the Grant Program by implementing the Project, and referencing the competitive bidding process the Alliance underwent that led to Alliance awarding a contract to Optony to prepare the City’s plans and specifications at set prices.
FISCAL ANALYSIS
Staff is requesting that the City Council authorize acceptance of up to $250,000 in grant funds from the Alliance and to approve the related grant participation agreements with the Alliance and Optony to implement the Project.
The Adopted Budget for Fiscal Year 2024-2025 includes $250,000 in CIP Project No. PF-045 (Develop and Implement EV Charging Stations) which can be found in the Capital Improvements section of the budget book under Capital Grants Fund (Fund 423) on page 480. The $250,000 Alliance grant does not require a City match.
The Alliance will pay Optony directly for the work they perform on behalf of the City and deduct that amount from the City’s $250,000 grant fund balance. The City, however, will front the funds necessary to hire a general contractor to construct the Project and once completed, the City will receive reimbursement from the Alliance in an amount up to the remaining grant funds available.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Accept a grant of up to $250,000 from the Clean Power Alliance to prepare plans and specifications for the purchase and installation of electric vehicle charging stations and to construct the electrical infrastructure necessary to support them for the purpose of transitioning the City’s fleet of vehicles to battery electric; and
2. Approve related grant participation agreements and any subsequent amendments with the Clean Power Alliance of Southern California and Optony to implement the Project;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.