Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
MAY 20, 2021
Subject
SUBJECT: EXECUTE CONTRACT WITH SOUTHERN CALIFORNIA EDISON (SCE) TO UPGRADE UTILITIES AT DIVISION 9 & EL MONTE TRANSIT CENTER, EXECUTE CONTRACT MODIFICATION WITH BYD FOR DIVISION 9 (D9) DEPOT CHARGERS, AND GRANT DESIGN-BUILD AUTHORITY FOR CHARGING INFRASTRUCTURE
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. NEGOTIATE AND EXECUTE a cost reimbursable Contract with SoCal Edison (SCE) to upgrade Division 9 (D9) and EL Monte Bus Depot utilities to support the full electrification of Battery Electric Buses procured from BYD, for an amount Not-To-Exceed $19,565,853.
B. EXECUTE Modification No. 7 to BYD Coach & Bus, LLC (BYD), to add forty-four (44) Heliox Depot Chargers, software licenses, installation and commissioning support, and twelve (12) year warranty service and support for D9 charging infrastructure at the Firm Fixed price of $22,938,872 increasing the Contract Value from $48,528,900 to $71,467,772.
C. INCREASE the Contract Modification Authority amount from $4,777,472 to $30,778,325 to incorporate upgrades to the charging infrastructure and for vehicle configuration changes for Contract OP28367-002, with BYD Coach & Bus, LLC.
CONSIDER:
D. FIND that awarding a design-build delivery method authority, pursuant to Public Utilities Code Section 130242(b), will achieve for Metro certain private sector efficiencies through the integration of design, project work and components.
Approval requires a two-thirds affirmative vote.
E. Approve the hiring of an initial five (5) new, non-contract full-time employees as a part of the FY22 midyear budget process to ensure the successful delivery of the ZEB program.
Issue
ISSUE
In July 2017, Metro’s Board of Directors approved a motion to “convert the Metro Orange Line to full Zero Emission operation by 2020 and the Metro Silver Line as soon as feasible, thereafter.”
In accordance with the Board motion staff executed contracts with BYD for 100 forty-foot Battery Electric Buses (BEB); a base order of 60 BEBs followed by an option order for 40. Concurrently, staff proceeded with designs to upgrade the charging infrastructure at D9, the El Monte Transit Center, and Harbor Gateway Transit Center (HGTC).
Approval of staff’s recommendations is necessary to contract with SCE and BYD to upgrade the utilities and deliver and install the chargers and charging infrastructure necessary to support anticipated service levels with BYD 40’ BEB’s.
Background
BACKGROUND
In July 2017 the Metro Board approved a motion to convert the Silver Line to full Zero Emission operation as soon as feasible, thereafter 2020. One element is to upgrade the utilities at D9 and the adjacent El Monte Transit Center to support the anticipated service with 40’ BEB’s. It is staff’s recommendation for SCE to upgrade the charging locations with the necessary power and for BYD to provide the depot chargers. In parallel, Metro will initiate a solicitation for the civil work to install the chargers.
Power Supply
In support of the plan, SCE completed a Method of Service (MOS) study to analyze the existing sites and develop strategies to meet the charging needs at D9 and the El Monte Transit Center. In all, five charging options were considered.
• Only one, Option E, provides Metro with the anticipated 10 MW power, minimizes impact to operations, and provides the maximum resiliency to minimize risk of power outages. However, it will take approximately 44 months to complete the work once SCE is awarded a contract.
• Option A is considered only a temporary solution while work on one of the other options is performed. Option A can be implemented shortly after SCE is awarded a contract; however, the 10 MW will be available only during off-peak hours. During peak hours power will be limited to 5 MW. This option may be acceptable in the near term; however, it will create operational risk and does not offer the resiliency necessary to reduce the risk of power outages.
Therefore, it is staff’s recommendation to issue a contract to SCE for Options A and E. This will permit Metro to initiate ZEB operation on the Silver Line once the depot and en-route charges are installed. One hundred percent ZEB operation from D9 will be possible when the Option E work is completed.
Chargers
BYD’s contracts include delivery of depot chargers. However, these chargers use BYD’s proprietary design, are non-standard, are compatible only with BYD equipment, and have limited eligibility for funding, e.g., they are not eligible for SCE Charge Ready Transport program.
Since the BYD contracts were first awarded July 2017, there has been significant advancement in charger standards and design. Chargers conform to approved standards allowing for compatibility with fleets from multiple vendors, have greater and faster charging capacity allowing for operational flexibility, and occupy a smaller footprint which is critical for our space-challenged depots. Therefore, it is staff’s recommendation to issue BYD a contract modification to upgrade the chargers with a depot charging strategy utilizing SAE3105-1 overhead charging infrastructure.
Civil Work
Civil work at D9 and the El Monte Transit Center is required to install the chargers, electrical cabinets, and ancillary equipment. Typical work includes installation of concrete pads and running of conduits and wire. To minimize risk to project schedule, staff is seeking Board approval to use a design-build project delivery method for deploying charging infrastructure as appropriate.
PUC Section 130242 requires a finding by a two-thirds majority vote by the Board to use the design-build project delivery method.
Discussion
DISCUSSION
SCE - MOS Study and Proposed Solutions
Prior to the MOS being initiated, SCE determined that 5 MW is currently available for D9 and the El Monte Transit Center. Staff calculated that 10 MW is required for the complete transition to 100% BEB operation from D9 and the El Monte Transit Center.
The MOS Study conducted by SCE offered Metro five (5) options to meet the charging needs. These proposed options are presented below, along with the associated costs and staff’s assessments:
• Option A - $149,644
o Project Scope: Install necessary cable to support temporary service of 10 MW without Preferred Emergency (PE) Gear.
o Staff assessment. Acceptable only as a temporary solution for startup service.
It may be possible for Metro to stay under the 5MW cap during peak hours by using robust charge management system, batteries, a larger solar installation, and on-site power generation. It may be necessary for SCE to allow 10MW of load to flow permanently during off peak hours. This option would save over $19M in upfront costs, but comes with additional risks if the charging cannot be consistently performed to stay under the cap. In addition, the El Monte Transit Center charging requirements make this option very difficult to achieve.
• Option B - N/A
o Project Scope: Install necessary cable to support temporary service of 10 MW with PE Gear.
o Staff Assessment: N/A
SCE determined that serving the requested load with PE gear is not feasible due to reliability and operational requirements; therefore no scope or cost was provided.
• Option C - $5,237,746
o Project Scope: Install (1) 66/12 kV 28 MW transformers and (1) 66 kV line without redundancy.
o Staff Assessment. Not recommended.
Option C proposes the addition of a new customer-dedicated substation and installing a new tap configuration 66kV line segment (approximately 0.6 mile) from the existing Anita-Amador 66 kV Line to Metro Substation creating the new Anita-Amador-Metro 66 kV Line. It is noted that the substation would be dedicated to Metro but would be owned by SCE.
• Option D - $15,757,721
o Project Scope: Install (1) 66/12 kV 28 MW transformer and (2) 66 kV lines for transmission line redundancy.
o Staff Assessment: Not recommended.
Option D proposed the addition of a new customer-dedicated substation with one (1) transformer and two (2) 66 kV lines. Option D saves nearly $3.7M as compared to Option E but adds a risk power outage due to transformer failure. While the probability of transformer failure is low, any failure would disrupt service until the transformer is replaced.
• Option E - $19,416,209
o Project Scope: Install (2) 66/12 kV 28 MW transformers and (2) 66 kV lines for transmission line and transformer redundancy.
o Staff Assessment: Recommended.
Option E proposes the addition of a new customer-dedicated substation with two (2) transformers and two (2) 66 kV lines; the maximum resiliency available. SCE studied looping in the existing Anita-Amador 66 kV Line by installing approximately 0.9 mile of new underground circuit from Metro’s Sub-station to the existing Amador-Anita 66 kV Sub-transmission Line creating the new Amador-Metro 66 kV Line and installing approximately 0.78 mile of overhead and underground circuit creating the new Anita-Metro 66 kV Line. The construction schedule is around 44 months for this option.
SAE3105-1 Depot Chargers
The proposed solution by BYD requires installing an overhead inverted pantograph per bus; e.g., 100 total, to charge the BEBs while parked. The pantographs will be suspended from an overhead gantry fitted with one 175kW Heliox charger providing power to every three pantographs. This system complies with the SAE J3015-1 overhead charging standards.
Additionally, CNG fueling lanes will be equipped with a 450kW charger per lane so buses can get a burst of charge while being cleaned. This maintains an operational commonality with CNG buses that will still be at D9 during the transition. Additionally, this helps reduce the peak electrical demand on the electric circuit.
Civil Work | Design-Build
Design-build is a method of project delivery through which Metro contracts directly with a single entity that is responsible for both design and subsequent construction services for the stated project. Metro has successfully utilized design-build contracts on various capital programs. Staff seeks suitable opportunities to utilize the design-build delivery method for the civil work associated with the charging infrastructure. The design-build approach offers numerous benefits:
• A single point of responsibility for design, installation, and construction.
• Functional specifications are provided which promotes more open competition
• More budgeted projects can be accomplished by adding design/build capacity.
• Risk for design is shifted to the design/build contractor; therefore, changes related to design may be minimized.
• Schedule efficiency and significant time savings may be realized because construction may proceed while design is being finalized.
• Administrative costs may be reduced by combining the solicitation process for the design and construction phases;
• Save construction management and engineering resources during the construction phase; and
• Minimize contractor-generated changes resulting in a reduced contract closeout time.
These contracts will be awarded to the lowest price responsive, responsible bidder meeting the requirements set forth in the invitation for bids.
Approve Addition of Staff
Successful execution of a charging infrastructure program requires a skilled and experienced staff exclusively dedicated to this effort. Staff is requesting the approval of five (5) new non-contract positions in FY22 as listed below:
• Two (2) Sr. Manager Project Control. In the coming months, it is anticipated that two concurrent civil projects will be active at different locations. Each should be staffed with a Sr. Manager, Project Control.
• Two (2) Sr. Engineers. Minimally, each Sr. Manager Project Control should be supported by a Sr. Engineer.
• One (1) Sr. Analyst. It is anticipated that the projects will need to be supported by an analyst to coordinate budget and financial matters with Metro’s internal stakeholders.
This initial request is part of the total FTE need for infrastructure support which is planned as part of the Zero Emission Bus (ZEB) program. The five (5) positions will be hired on using available FTEs created through the FY22 midyear budget process. Upon approval of Recommendation E, staff will immediately commence recruitment processes to establish a ZEB specific qualified candidate pool for the five (5) positions with anticipated start dates of Q2/Q3 of FY22. This will be done through the FY22 midyear budget process. As the scale of the work evolves, staff may return and request Board approval for additional positions.
Staff’s Recommendation
1. SCE - MOS Study and Proposed Solutions: Staff recommends executing Options A and E. Option A will allow Metro to maintain and continue operation, initiate ZEB service while the major substation upgrade is performed. Option E will allow Metro to meet its long-term power needs with the greatest level of resiliency available. This approach will provide 10 MW and be scalable to increased power levels, if needed.
2. SAE3105-1 Depot Chargers: The solution proposed by BYD is considered the most robust and efficient in terms of operation and maintainability. It also ensures compatibility with manufacturers employing the same standards.
3. Design-Build: This authorization allows Metro to potentially reduce schedule, minimize risk to Metro, and reduce costs.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
There is no impact to safety. Recommendations A-D will allow Metro to initiate ZE operations on the Silver Line in the quickest and most cost-effective manner and provide the electrical power to support further expansion of ZE operation.
Financial_Impact
FINANCIAL IMPACT
Budget for the recommended action is included in the Life of Project (LOP) budget of Capital project 201077 - BYD 40 Foot Zero Emission Buses. Due to SCE payment requirements, a payment is scheduled for early FY22. Staff will closely monitor the financial situation and if needed, will request Board approval of a Mid-year budget amendment to make the payment. Since the project requires multi-year contracts, the Cost Center Manager, and Project Manager will be responsible for future fiscal year budgeting.
Impact to Budget
The combined funding for these actions include Federal, State and Local sources including Green Funds. Staff can also pursue funds such as LCTOP and BOS 5307 for this electrification effort. Staff also continues to pursue all additional grant and rebate opportunities as they materialize. This will help ensure that the Bus Acquisition and Electrification Program remain funded while enacting the fleet conversion to Zero Emissions by 2030.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
These recommendations support Goal #3, Enhance communities and lives through mobility and access to opportunity and Goal #4 Transform LA County through regional collaboration and national leadership.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff has considered leaving the existing circuit that supplied both Division 9 and El Monte Transit Center SCE service delivery alone; however, this approach is not recommended as this cannot support the Board’s directive to convert the entire fleet to zero emission buses.
The Board of Directors may choose not to authorize the Contract award for this project; however, this alternative is not recommended as this is critical to facilitate the timely execution and associated deliverables of Metro’s ZEB Master Plan and Vehicle Engineering and Acquisition capital and operating projects.
Next_Steps
NEXT STEPS
Upon Board approval, staff will continue to competitively award individual task orders, on an as-needed basis, for engineering, technical, and program management support services. Also, staff will commence recruitment activities for the five (5) positions critical to support the ZEB program and hire these positions when the FY22 budget is amended.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification Log
Attachment C - DEOD Summary
Attachment D - Funding / Expenditure Plan
Prepared_by
Prepared by: Marc Manning, Senior Director, Vehicle Engineering and Acquisition (213) 922-5871
Jesus Montes, Senior Executive Officer, Vehicle Engineering and Acquisition (213) 418-3277
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer (213) 922-4424
Debra Avila, Chief Vendor/Contract Management Officer (213) 418-3051