Loading...
CC SR 20250401 02 - EV Charging Stations at LL CITY COUNCIL MEETING DATE: 04/01/2025 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration to provide direction to Staff on establishing electric vehicle (EV) charging fees at Ladera Linda Community Park. RECOMMENDED COUNCIL ACTION: (1) Provide direction to Staff on establishing fees for electric vehicle (EV) charging at the Ladera Linda Community Park. FISCAL IMPACT: There is no fiscal impact to provide direction to Staff on establishing fees for electric vehicle (EV) charging at Ladera Linda Community Park. Depending on direction from the City Council, there could be costs associated with installing, maintaining, and operating EV charging at the Ladera Linda Community Park. If the City Council provides direction to adopt an EV charging fee that recovers less than the total annual cost to provide the service, there could be an impact on the General Fund of up to $41,675 annually, which is the estimated cost of electricity, replacement/maintenance, and other indirect costs. If the City Council provides direction to recover all costs associated with providing EV charging services, there would be no fiscal impact on the City. Once adopted, the fee will be part of the Master Fee Schedule, which is reviewed annually by the City Council for potential Consumer Price Index (CPI) adjustments and actual cost increases for the service. The City was approved for a $76,370 grant from the Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Equipment Rebate Voucher Program for the purchase and installation of EV charging stations. The reimbursement grant is sufficient to cover the cost of furnishing and installing the EV charging stations. VR Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A 1 ORIGINATED BY: Vanessa Hevener, Project Manager REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Catherine Jun, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: A. Electric Vehicle Charging Fee Analysis (Page A-1) BACKGROUND: In response to public requests, the City has been considering opportunities to install electric vehicle (EV) charging stations at City facilities. The recent reconstruction of Ladera Linda Community Park presented the first such opportunity. EV infrastructure capable of accommodating charging stations was included in the design of the Project due to legal requirements for new commercial buildings under the California Green Building (CALGreen) Code. Based on the size of the parking lot, and as required by CALGreen, a total of seven parking spaces were designated for EV charging. In December 2023, the City applied for the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Equipment Rebate Voucher Program to purchase and install EV charging stations at Ladera Linda Community Park. On January 22, 2024, the City was notified that the grant was approved in the amount of $76,370. Providing EV charging stations to the public comes at a cost to the City consisting not only of the initial installation (which will be reimbursed by the above-mentioned grant), but also of replacement/maintenance, electricity, and indirect costs. The City Council may recover the cost of providing EV charging to the public by adopting a charging fee that does not exceed the City’s actual cost of providing the EV charging service. Such a fee is not subject to Proposition 218 because the provision of electrical service is not considered a property-related fee under Proposition 218. Additionally, the legislative intent of California Government Code § 65850.7 further supports the notion that fees related to EV charging stations are not subject to the procedural and substantive requirements of Proposition 218. DISCUSSION: Staff is seeking direction from the City Council on establishing a fee to recover all or a portion of the City’s cost to provide EV charging to the public. To determine the actual cost of providing EV charging such that the fee is set not to exceed that amount, the City retained Matrix Consulting Group, Inc. (Matrix) to conduct a cost-of-service analysis (Attachment A). Initial Installation Costs There are three different types, or levels, of EV charging stations the City may install: 2 • Level I is the slowest charging technology and adds about four miles of range per hour of charging. • Level II can charge at a low voltage and adds an average of 12 to 50 miles of range per hour. This is the most common form of public charging equipment. • Level III is the fastest charging technology, capable of charging an EV to 80 percent in about one hour; however, it is not as common for public charging because the equipment is orders of magnitude more expensive than the other levels. In September 2024, Staff started a competitive procurement for furnishing and installing seven Level II charging stations at Ladera Linda Community Park, which are the most common public charging stations, by soliciting informal bids from vendors known to furnish and install EV charging equipment. Bids were requested to furnish and install the EV charging stations as well as replace/maintain them over a five-year period (which is the typical life cycle of EV charging stations), inclusive of necessary software. Three vendors provided proposals as shown below. Vendor Costs EV Range $46,070 SWTCH Energy Inc. $52,193 GreenWealth Energy $66,921 Staff reviewed the submitted proposals and SWTCH Energy, Inc. (SWTCH) was selected because, although it was not the least expensive, it was a qualified and experienced vendor that was the most responsive of the three, indicating that it was most capable of providing maintenance and update services to keep the charging stations operational . The cost to furnish, install, and maintain seven EV charging stations at Ladera Linda Community Park is $52,193. Replacement/Maintenance Costs The cost of furnishing and installing the EV charging stations includes maintenance for a five-year period. The estimated life cycle of the EV charging stations is five years, after which they will need to be replaced. The life cycle is five years because of the rapid changes in technology. The cost to maintain seven EV charging stations at the Ladera Linda Community Park for their life cycle of five years is included in the initial installation cost. The annualized cost to replace the seven EV charging stations at Ladera Linda Community Park is estimated to be $10,940 based on an average of current prices provided by three different vendors representing the uncertainty of which vendors will be available in the future. Electricity Costs 3 The annual electricity costs were estimated based on the average electricity rate charged by Southern California Edison (SCE) per kilowatts (kWh) at Ladera Linda Community Park and the estimated number of kWh used for the charging stations based on the hours of operation for the facility. The annual kilowatt hour usage for Ladera Linda Community Park is expected to be 80,644 kWh; assuming charging occupancy of approximately 45% of the time for 12 hours per day, which is what Matrix has found to be the typical usage at similar public facilities. The annual cost for electricity for seven EV charging stations at Ladera Linda Community Park is estimated to be $25,224 based on typical usage at similar public facilities. Indirect Costs Beyond installation, replacement/maintenance, and electricity, there are indirect, operational costs cities incur associated with various services, including EV charging services. Matrix calculated the City’s indirect cost rate to be approximately 15% of the City’s overall operating costs. The factor of approximately 15% was applied to the combined cost of replacement/maintenance and electricity. The annual costs for other indirect costs associated with providing EV charging services at Ladera Linda Community Park are estimated to be $5,511. Total Costs The annual installation (inclusive of maintenance), electricity, and other indirect costs of seven EV charging stations at the Ladera Linda Community Park is $41,675 based on an estimated useful life of five years with replacement factored in at that time (using currently known prices), as shown below. Total Annual Direct and Indirect Cost – Seven EV Charging Stations at Ladera Linda Cost Category Total Cost Replacement/Maintenance Cost $10,940* or $0.14 per kWh Electricity Cost $25,224 or $0.31 per kWh Indirect Costs $5,511 or $0.07 per kWh Total Direct and Indirect Costs $41,675 *Average replacement cost of three vendors representing uncertainty of which vendors will be available for future replacement To charge a fee for EV charging, the total annualized cost of $41,675 must be converted to a cost in terms of a unit of EV charging. The unit for EV charging is kWh. To convert the total annual cost to a fee based upon utilization per hour, the following formula is applied: $41,675 total cost = $0.52 per kWh 80,644 kWh annually Based on this calculation, the full cost associated with the City’s operation and maintenance of a Level II charging station is $0.52 per kWh. 4 Costs Recovery Staff surveyed surrounding areas to obtain information on the cost recovery policies of nearby government agencies. The table below shows the fees for Level II charging stations, which are the most common type of public charging stations. The fee structures of the jurisdictions shown below recover the full cost of providing EV charging services. However, the fees vary as each agency’s rates were developed through their own studies and based on their total costs at the time. Agency Level II EV Charging Fee (per kWh) Charging Fee Subsidized Additional Information Rolling Hills Estates $0.24 plus $0.50 session fee No $2.50 per hour for first 2 hours when idle and $5.00 after 2.5 hours Lomita Sheriff’s Station $0.45 (4-9PM) $0.30 (all other hours) No Manhattan Beach $0.51 No Redondo Beach $0.30 No Overstay fee of $1.50/hour after 4 hours El Segundo $0.50 plus $0.50 per hour No Only 1 station CONCLUSION: Staff is seeking direction from the City Council on establishing a fee for EV charging station use; if directed to establish a fee, Staff seeks direction on whether it should be at a full or partial recovery rate. Based on the information provided above, Staff recommends that the City Council adopt a base fee of $0.52 per kWh to recover the full costs related to EV charging at City facilities and consider future rate increases based on the Consumer Price Index (CPI) to keep up with inflation. Adopting a fee of less than that amount would require a subsidy from the General Fund and would make the Ladera Linda Community Park the only EV charging facility in the area not recovering the full cost of providing EV charging services. If the City Council wishes to establish a fee at full or partial recovery , Staff will return to the City Council at a duly noticed public hearing with a resolution to establish the EV charging fees. The fees will be incorporated into the Master Fee Schedule and any subsequent increases in costs related to EV charging will be updated in accordance with the Master Fee Schedule process. ALTERNATIVES: 5 In addition to Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Take other action, as deemed appropriate. 6 Matrix Consulting Group Page 1 October 1, 2024 Electric Vehicle (EV) Charging Fee Analysis The City of Rancho Palos Verdes is in the process of installing Electrical Vehicle (EV) Charging stations. As part of that installation, the City would like to develop a fee to offset the cost associated with the station’s installation, electricity usage, and general oversight. The proposed fee would be charged per kilowatt hour (kWh) to recover the cost associated with EV Charging Station operations. Overall, there would be 7 EV charging spaces proposed. The project team worked with City staff to identify the total operating costs associated with the charging stations, including the following cost components: • Annual Electricity Cost: Reflects the total annual electricity charges assessed to the City based on the estimated use of the charging stations. • Annual Replacement / Maintenance Cost: Reflects the cost to fund the replacement of EV stations as well as installation and maintenance costs, which is annualized over a 5-year timeframe. • Indirect Costs: Reflects the indirect costs associated with Citywide support in managing the EV program1. The following table breaks out the total annual cost for EV Charging stations by previously discussed cost component: Table 1: Total Direct and Indirect Cost – EV Charging Stations Cost Category Total Cost Annual Electricity Cost $25,2242 Annual Replacement Cost $10,9403 Indirect Costs $5,511 Total Direct and Indirect Costs $41,675 1 The indirect costs were based on a 15% indirect rate calculated by taking the total indirect support services and dividing it by total direct citywide expenditures. This rate was applied to all annual cost components 2 The annual electricity cost was estimated based on the average rate of $0.27 per kWh and estimating the number of kiloWatts used for the charging stations based on the hours of operation for the facility. As the stations are not available, actual data is unavailable, so an estimate was used. This estimate was compared to other jurisdictions and their kWh usage and was in alignment. 3 The annual replacement cost takes into account the total average cost proposed by the City’s vendors for installation, operations, and maintenance of the EV charging stations. mat rix consulting group A-1 Electric Vehicle (EV) Charging Fee Analysis City of Rancho Palos Verdes, CA Matrix Consulting Group Page 2 The $41,675 is divided by the estimated kWh to calculate the cost per kWh. The following graphic shows this calculation: $41,675 total cost = $0.52 per kWh 80,6444 kWH annually Based on the calculation conducted, the full cost associated with a Level II charging station is $0.52 per kWh. In reviewing other surrounding jurisdictions, the charging fee ranges from a low of $0.24 per kWh to a high of $0.51 per kWh. The City’s calculated full cost of $0.52 is $0.01 higher than the City of Manhattan Beach’s fee of $0.51. It is also within the range of the $0.45 charging station fee charged at the Sheriff Lomita Station from 4-9pm. Some of the vendors identified by the City, may have separate transaction fees. Therefore, the rate charged by the City would cover the City’s costs, but any fees charged by the vendor would be a direct pass through back to the vendor. It is important to note that EV Charging station rates are similar to parking meter rates and are not subject to user fee regulations. However, the State has recently passed a new bill that requires all EV Charging Stations (public and private) to charge based upon utilization per hour. As such, the full cost rate ($0.52 per kWh) calculated is based on per kWH and is compliant with this new state regulation. The City would assess this fee on top of any parking lot fees in which the EV charging stations are located. This practice is consistent with other private and public entities, which charge both for the use of the parking space as well as the use of the EV charging station. 4 The estimated kWh utilization is based on the 7 units of EV Charging Station with an average annual utilization of 11,521 kWh per unit. A-2