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Staff Report.Library Battery Storage SystemPREPARED BY: Dan Keller Environmental and Facilities Manager Reviewed by: Assistant Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 12/21/2021 ITEM NO: 16 DATE: December 16, 2021 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Battery Power Supply – Library (Project 821-2505) a.Authorize the Town Manager to Execute an Agreement for Consultant Services with AMS Electric LLC, dba Prime Electric LLC for a Design-Build Project to Install a Battery Storage System to Provide Backup Power at the Library in an Amount Not to Exceed $513,000; and b.Authorize Revenue and Expenditure Budget Adjustments in the Amount of $300,000 to Recognize Receipt and Expenditure of the State Office of Emergency Services Community Power Resiliency Grant Funds (421-821- 2505-43415 421-821-2505-824050; and c.Authorize Revenue and Expenditure Budget Adjustments in the Amount of $213,000 to Recognize Receipt and Expenditure of the Silicon Valley Clean Energy Grant Funds (421-821-2505-43529 421-821-2505-82405) RECOMMENDATION: Staff recommends that the Town Council take the following actions: a.Authorize the Town Manager to execute an Agreement for Consultant Services (Attachment 1) with AMS Electric LLC, dba Prime Electric LLC for a design-build project for installation of a battery storage system to provide backup power at the Library in an amount not to exceed $513,000; and b.Authorize revenue and expenditure budget adjustments in the amount of $300,000 to recognize receipt and expenditure of the State Office of Emergency Services (OES) Community Power Resiliency Grant funds (421-821-2505-43415 421-821-2505-82405); and c.Authorize revenue and expenditure budget adjustments in the amount of $215,000 to recognize receipt and expenditure of the Silicon Valley Clean Energy Grant funds (421-821- 2505-43529 421-821-2505-82405). PAGE 2 OF 3 SUBJECT: Authorize the Town Manager to Execute an Agreement for Consultant Services with AMS Electric LLC, dba Prime Electric LLC for a Design-Build Project to Install a Battery Storage System to Provide Backup Power at the Library During Outages DATE: December 16, 2021 BACKGROUND: The Library is an ideal facility for a Community Resource Center during power outages. The concept of installing a battery back-up system that would provide power to parts of the building during a power outage is a good candidate for a clean energy project and has made the Town of Los Gatos eligible for grant funding from two sources. • California Office of Emergency Services (Cal OES) Community Power Resiliency Program • Silicon Valley Clean Energy Resiliency In addition, based on CA Government code 4217 public agencies can select a qualified contractor to design and deliver energy projects if the cost of the project is less than the anticipated energy savings. The contractor provided a proposal that will follow the parameters of these requirements. DISCUSSION: A Request for Proposals was circulated, and three contractors responded with two contractors ultimately submitting proposals. The successful proposal (Exhibits A and B) includes an evaluation of the existing solar photovoltaic (PV) system at the Library, followed by a design and development of plans and installation of a battery storage system to provide electrical power back-up for the library and patrons during power outages. A goal of this proposal is to stay within the parameters of California Government Code 4217. This battery system will recharge through interconnectivity with the existing solar PV system at the library. The system size will be defined through the design process but is anticipated to provide sufficient power for select electrical sources. The system will be modular such that additional supply could be added through future projects. CONCLUSION: Approval of the recommended actions will allow the Town to take advantage of available grant funding and move forward with this project. FISCAL IMPACT: The Town of Los Gatos applied for and received a grant in the amount of $300,000 from Cal OES Community Power Resiliency Program for the planning and implementation of clean energy PAGE 3 OF 3 SUBJECT: Authorize the Town Manager to Execute an Agreement for Consultant Services with AMS Electric LLC, dba Prime Electric LLC for a Design-Build Project to Install a Battery Storage System to Provide Backup Power at the Library During Outages DATE: December 16, 2021 FISCAL IMPACT (continued): projects. Additionally, in 2022, the Town of Los Gatos will receive a Silicon Valley Clean Energy Resiliency Grant in the amount of $213,000. These grants will be applied to this project and will not require additional Town funding. Revenue and expenditure budget adjustments will be established to reflect the $513,000 as a grant funded project. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Agreement for Consultant Services 2. Exhibit A – Request for Proposal 3. Exhibit B – Request for Proposal Budget Costs GFAR $30,000 State OES Community Power Resiliency Grant $300,000 Silicon Valley Clean Enegery Grant*$213,000 Total Budget $543,000 *Anticipated in 2022 Agreement for Consultant Services with AMS Electric LLC, dba Prime Electric LLC $513,000 Total Costs $513,000 Remaining Balance $30,000 Battery Power Supply - Library CIP No. 821-2505