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CC SR 20260120 01 - EV Charging Stations at LL Update CITY COUNCIL MEETING DATE: 01/20/2026 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consider an update on establishing electric vehicle (EV) charging fees at Ladera Linda Community Park. RECOMMENDED COUNCIL ACTION: (1) Receive and file a status update on Level II and III EV charging stations costs and options at Ladera Linda Community Park pursuant to Council direction at its April 1, 2025 meeting; (2) Establish a base fee of $0.63/kWh that recovers the full costs related to providing and operating seven Level II EV charging stations at Ladera Linda Community Park, and direct Staff to return to the City Council at a duly noticed public hearing with a resolution to establish the EV charging fee; (3) Direct Staff to conduct an annual evaluation of the EV charging fee based on actual data, and propose fee changes (if any), as part of the annual Master Fee Schedule; (4) Accept and appropriate a $76,370 Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Program Equipment Rebate Voucher Program grant to procure and install seven Level II EV charging stations at Ladera Linda Community Park; and (5) Award a Professional Services Agreement to SWTCH Energy, Inc. in the amount of $54,812 to procure and install seven Level II EV charging stations, and authorize the Mayor to execute the agreement in a form approved by the City Attorney. FISCAL IMPACT: If the City Council approves the establishment of a base fee of $0.63/kWh to recover all costs associated with providing seven Level II EV charging services, there would be no fiscal impact, provided that actual use of charging stations matches the forecasted use rate. Once adopted by resolution at a future public hearing, the fee will be part of the Master Fee Schedule, which is reviewed annually by the City Council for potential Consumer Price Index (CPI) and other actual cost adjustments for the service. Should the City Council decide to charge a fee lower than $0.63/kWh, the City will be subsidizing the cost of EV charging to the public of up to $25,325 annually from the General Fund. If this option is approved, the additional appropriation request would increase from $76,370 up to $101,695. 1 The City was approved for a rebate grant up to $76,370 from the Department of Energy’s (DOE) Energy Efficiency and Conservation Block Grant (EECBG) Equipment Rebate Voucher Program for the purchase and installation of seven Level II EV charging stations at the Ladera Linda Community Park. The rebate grant is sufficient to cover the cost of furnishing and installing seven Level II EV charging stations. VR Amount Budgeted: $0 Additional Appropriation: $76,370 (full-cost recovery) Or up to $101,695(with subsidy) Account Number(s): 331-300-0000-3301 $76,370 (Federal Grants Fund/ Federal Grants 331-400-0000-xxxx $76,370 (Federal Grants Fund/ Federal Grants) 101-400-3110-5201 up to $25,325 (only if approved rate is lower than $0.63) (General Fund – PW Admin – Repairs & Maint.) VR ORIGINATED BY: Vanessa Hevener, Project Manager REVIEWED BY: Deanna Fraley, PE, Principal Engineer Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Professional Services Agreement with SWTCH Energy, Inc. (Forthcoming) B. April 1, 2025 Staff Report - Electric Vehicle Charging Stations at the Ladera Linda Community Park (Page B-1) C. Matrix Electric Vehicle Charging Fee Analysis (Page C-1) D. Level III Fee Analysis (Page D-1) EXECUTIVE SUMMARY: • On April 1, 2025, Staff presented a report to the City Council on establishing fees for Level II electric vehicle (EV) charging at Ladera Linda Community Park (Ladera Linda), and the City Council directed Staff to return with information on faster, Level III EV charging stations for the City Council’s consideration. • Level III charging will require the installation of new electrical infrastructure and the purchase of Level III charging equipment not covered by the grant rebate at a cost of approximately $260,000; whereas Level II charging does not require any 2 electrical upgrades, and the charging equipment costs of approximately $76,370 are covered by the grant rebate. • To recover all City costs, a fee of $0.63/kWh is required for Level II charging, and a fee of between $3.52/kWh and $6.34/kWh is required for Level III charging, depending on the combination of Level II and Level III chargers. • Considering that the fee for Level III charging would be the highest on the Palos Verdes Peninsula, there may be less Level III usage resulting in the City subsidizing the cost of the electrical upgrades and charging stations, which would be a burden on the City’s already challenging budget. • Staff recommend the City Council proceed with seven Level II charging stations at Ladera Linda and establish a base fee of $0.63/kWh to recover all costs associated with providing Level II EV charging services. BACKGROUND: On April 1, 2025, Staff presented a report to the City Council on establishing fees for Level II EV charging at Ladera Linda (Attachment A). In summary, Staff presented the following information to the City Council: • Construction of Ladera Linda included infrastructure to accommodate seven Level II EV charging stations as required for new commercial buildings under the California Green Building (CALGreen) Code. • The City was awarded a rebate grant of up to $76,370 from the U.S. Department of Energy’s, Energy Efficiency and Conservation Block Grant (EECBG) Equipment Rebate Voucher Program to purchase and install seven Level II EV charging stations at Ladera Linda. • 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. • The total cost of providing Level II EV charging (which adds an average of 12 to 50 miles of range per hour) at Ladera Linda was calculated to be $0.52* per kilowatt- hour (kWh). • Staff recommended 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 adjustments based on the Consumer Price Index (CPI) to keep up with inflation and other actual costs to provide this service. * After the April 1, 2025 City Council meeting, Staff discovered that Matrix Consulting, Inc., the City’s consultant, miscalculated the annual electricity costs used to derive the charging rate. The calculation was erroneously based on 8 Level II charging stations rather than the 7 available at the site. The correct calculation based on 7 stations would have resulted in a total annual electricity of $22,071 3 instead of $25,224, resulting in a charging rate of $0.47 per kWh instead of $0.52 per kWh. However, upon further review, Staff learned that Matrix assumed 100% utilization of seven EV chargers any time the park is open and Staff believes that this is not a reasonable assumption upon which to base the rate. Therefore, Staff have revised the calculation to 50% utilization resulting in a rate of $0.63 per kWh. (Attachment B) Following the discussion, the City Council requested Staff to investigate Level III charging stations, including whether the grant could be used to cover the cost difference between Level II and Level III charging stations. City Council further requested that the investigation include a combination of Level II and Level III charging stations and directed Staff to return to a future meeting with more information on Level III charging options and costs. DISCUSSION: Pursuant to City Council direction at its April 1, 2025 meeting, the following discussion provides an update on both Level II and III charging stations for Ladera Linda. Level II Charging To ensure that the City’s fees for Level II EV charging do not exceed the actual cost of providing the service, the City retained Matrix Consulting, Inc. (Matrix) to conduct a cost- of-service analysis (Attachment B). The analysis evaluated replacement/maintenance costs, electricity costs, and indirect costs, which cover the total cost of providing EV charging services. EV Equipment Costs In September 2024, Staff started a competitive procurement to furnish and install seven Level II charging stations at Ladera Linda. Informal bids were solicited from vendors known to supply and install EV charging equipment, including provisions for software, replacement, and maintenance over a five -year lifecycle – the typical life expectancy of such equipment. Three vendors provided proposals as shown below. Table 1: Level II Equipment Cost Vendor Total Cost EV Range $46,070 SWTCH Energy Inc. $52,193* GreenWealth Energy $66,921 *Cost of EV charging equipment increased by 5% to $54,812 since April 2025. After evaluating the proposals, SWTCH Energy, Inc. (SWTCH) was selected. Although not the lowest bidder, SWTCH was determined to be the most qualified and experienced vendor, best suited to provide reliable maintenance and software updates necessary to ensure continuous operation of the charging stations. 4 SWTCH’s initial cost proposal was $52,193. Since April 2025, however, the cost has increased by $2,618 (5%) for a new total cost of $54,812, which is still within the grant amount. Replacement/Maintenance Costs The cost to maintain seven Level II EV charging stations at Ladera Linda over a five-year lifecycle is included in the initial installation cost. The annualized replacement cost, based on an average of current pricing provided by the three vendors to reflect potential future market variability, is calculated by Matrix to be $10,940 per year. The EV equipment replacement cost is factored into the cost-of-service rate so that funds are readily available for replacement of the EV equipment in five years. Electricity Costs Electricity costs were calculated using the average time-of-use rates charged by Southern California Edison (SCE) and the anticipated annual usage of the seven charging stations. Based on 50% usage of all chargers during the park operating hours (12 hours per day), total annual electricity consumption is expected to be 40,322 kWh. This results in a calculated annual electricity cost of $11,036 for all seven stations at Ladera Linda. Indirect Costs In addition to direct costs, the City incurs indirect operational costs such as staff time across various City departments associated with providing EV charging services. Matrix determined the City’s indirect cost rate to be approximately 15% of total operating costs. Applying this rate to the combined replacement/maintenance and electricity costs, based on 50% utilization, is calculated to be $3,349 in annual indirect costs. Total Cost The total annual cost, which includes maintenance/replacement, electricity, and other indirect costs for seven Level II EV charging stations at Ladera Linda, is calculated to be $25,325. This cost is based on a five-year lifespan with EV Charger replacement factored at that time (using currently known prices), as shown below. Table 2: Total Annual Cost for 7 Level II Charging Stations at Ladera Linda with 50% Utilization Cost Category Annual Cost (based on 40,322 kWH) Replacement/Maintenance Costs $10,940 or $0.27 per kWh Electricity Costs $11,036 at $0.27 per kWh Indirect Costs $3,349 or $0.09 per kWh Total Direct and Indirect Annual Cost $25,325 or $0.63 per kWh To determine the estimated fee per unit of service, the total annual cost for the 7 Level II charging stations is divided by the projected annual electricity usage: $25,325 total cost = $0.63 per kWh 5 40,322 kWh annually Therefore, the full cost of providing Level II EV charging service is calculated at $0.63 per kWh based on 50% utilization. Level III Charging To provide faster charging times, Level III charging stations require two to ten times the amount of electricity that is required by Level II charging stations. This would require an upgrade of electrical equipment at Ladera Linda to increase the amount of electricity that can be received, even if only one or two Level III charging stations are installed. Staff conducted a cost-of-service analysis of providing Level III charging using the same methodology as for Level II charging. Electrical Upgrade Costs Although the current electrical supply to Ladera Linda is sufficient for Level II chargers, upgrades to the electrical system are required to accommodate Level III chargers. This includes trenching or boring to install electrical supply conduits from the transformer to electrical panel or charging location and upgrading electrical panels to create dedicated circuits for charging equipment. To estimate the cost of these upgrades, Staff retained Novus Design Studio (Novus), the electrical engineering consultant that designed the electrical system at Ladera Linda. Novus determined the needed electrical system upgrades to accommodate Level III charging stations and prepared construction cost estimates for the upgrades. The estimated cost to upgrade the electrical system is approximately $64,000 for one dual Level III to $90,000 for three dual Level III charging stations. As it currently stands, the rebate grant cannot be used towards electrical infrastructure as it is restricted to Level II charging stations only. Staff is inquiring with DOE if a modification to the grant to include Level III EV stations is possible. Staff will provide an update once the City receives confirmation. EV Equipment Costs Staff reached out to EV service providers to obtain cost estimates for supplying and installing Level III charging equipment. Procurement and installation of a combination of Level III and Level II charging stations is estimated to be in the range of $91,400 to $170,200. The lower end of the range is for one dual port Level III charger (Level III chargers only come as dual ports) with the remaining five chargers being Level II. The higher end of the range is for three dual port Level III chargers with one single port Level II charger. 6 Replacement/Maintenance Costs The cost to maintain one dual port Level III EV charging station over a two-year period, which is the warrantied period, is included in the initial installation cost (the lifespan of Level III chargers ranges from five to seven years; however, based on conversations with charging station providers, the cost to repair and maintain Level III chargers after the warranty expires is greater than the replacement cost). The annualized replacement/maintenance costs for one dual port Level III charging station and five Level II charging stations, based on the current pricing provided by a vendor, is estimated to be $45,700. The cost to replace/maintain three dual port Level III and one Level II charging station over the same period is $85,084. Electricity Costs Electricity costs were calculated using the average time-of-use rates charged by SCE and the anticipated annual usage of the seven charging stations. Based on the Park’s projected operating hours (12 park hours per day, and 50% utilization), total annual electricity consumption is expected to be 20,966 kWh for one dual port Level III and 62,899 kWh for three dual Level III. The total consumption is higher for Level III stations, because they can charge more quickly and take on more charging sessions than a Level II station in the same amount of time. This results in an estimated annual electricity cost of $5,738 for one dual port Level III with five Level II charging stations and $17,214 for three dual port Level III with one Level II charging stations. Indirect Costs In addition to direct costs, the City incurs indirect operational costs associated with providing EV charging services. Matrix determined the City’s indirect cost rate to be approximately 15% of total operating costs. Applying this rate to the combined replacement/maintenance and electricity costs based on 50% utilization resulting in a range between $17,592 and $29,305 in annual indirect costs. Total Cost Considering the electrical upgrades, replacement/maintenance, electricity, and indirect costs (Attachment C), the total annual cost for Level III EV charging stations at Ladera Linda is calculated to be $133,030 to $221,603 based on a calculated 2-year warranty with replacement factored in at that time (using currently known prices), as shown below. 7 Table 3: Total Cost for 6 Level III Charging Stations at Ladera Linda at 50% Utilization Rate Annual Cost Cost Category One Dual Port Level III (based on 20,966 kWh) Three Dual Port Level III (based on 62,899 kWh) Electrical Upgrades* $64,000 ($3.05 per kWh) $90,000 ($1.43 per kWh) Replacement/Maintenance $45,700 ($2.18 per kWh) $85,084 ($1.35 per kWh) Electricity Costs $5,738 ($0.27 per kWh) $17,214 ($0.27 per kWh) Indirect Costs $17,592 ($0.84 per kWh) $29,305 ($0.47 per kWh) Total Direct and Indirect Cost $133,030 or $6.34 per kWh $221,603 or $3.52 per kWh *The cost of electricity upgrades is a one-time expense, and the rate will need to be adjusted after the first year to remove the electricity upgrades costs from the cost analysis calculation. To determine the estimated fee per unit of service, the total annual cost is divided by the projected annual electricity usage: Rate for Level III chargers (of which there would be two in a one dual-port configuration): $133,030 total cost = $6.34 per kWh 20,966 kWh annually Rate for Level III chargers (of which there would be six in a three dual-port configuration): $221,603 total cost = $3.52 per kWh 62,899 kWh annually The cost of electricity upgrades is a one-time expense, and the rate will need to be adjusted after the first year to remove the electricity upgrade costs; based on current calculations, the new rate without electrify upgrades would be $2.09 to $3.29 per kWh. Cost Recovery Comparison Staff surveyed nearby jurisdictions to obtain information on their cost recovery policies. The comparison, displayed in the table below, shows that neighboring agencies generally recover the full cost of providing Level II EV charging services, although actual rates vary based on each jurisdiction’s cost structure and timing of their respective studies. It should be noted that Redondo Beach has one dual port Level III charger with a charge fee of $0.40/kWh. 8 Table 4: Summary of Rates in Neighboring Cities 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 Summary The cost per unit of Level III charging is significantly higher at $3.52/kWh to $6.34/kWh, depending on the number of Level III chargers, compared to $0.63/kWh for Level II chargers. Staff notes that the electricity upgrades are a one-time cost, and the rates after the first year are anticipated to be $2.09 to $3.29 per kWh. Table 5 summarizes the cost for Level II and Level III charging. Table 5: Summary of Level II and Level III Charging at 50% Utilization 7 Level II Charging Stations Level III Charging Stations (One Dual Level III to Three Dual Level III) Electrical Upgrades: (e.g., transformer, panel, conduit) $0 (already installed) $64,000 to $90,000 EV Equipment Cost $54,812 $91,400 to $170,200 Replacement/Maintenance $10,940 over 5-years; then $1,563/year after $45,700 to $85,084 over 2-years; then $24,310 for replacement Electricity Cost (SCE) $11,036 $5,738 to $17,214 Indirect Costs $3,349 $17,592 to $29,305 Total $25,325 $133,030 to $221,603 Fee Per Unit of Service $0.63 per kWh $6.34 to $3.52 per kWh In considering the difference between Level II and III charging stations, there may also be an unintended consequence of providing Level III charging at Ladera Linda in that it may become a destination for EV charging, rather than being a park where visitors come to Ladera Linda to charge their EVs as a complementary activity to recreation rather than primary activity. There are currently only two other locations on the Palos Verdes Peninsula where Level III chargers are available. 9 If the City Council approves, SWCTH is expected to install the Level II chargers in early February 2026 with activation by early May 2026. CONCLUSION: Given the required electrical system upgrades not covered by the grant, high cost of Level III equipment and installation, and operational and maintenance implications, Staff recommend proceeding with 7 Level II charging stations and setting a charging rate of $0.63/kWh to recover the full cost of providing the service. Accordingly, Staff recommend awarding a Professional Services Agreement to SWTCH Energy, Inc. for the purchase and installation of the seven Level II charging stations at Ladera Linda in the amount of $54,812. Additionally, Staff recommend the City Council accepts and appropriates up to $76,370 of the U.S. Department of Energy’s, Energy Efficiency and Conservation Block Grant Equipment Rebate Voucher Program for the purchase and installation of the 7 Level II charging stations at Ladera Linda. ALTERNATIVES: In addition to Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff to exclude one of the following costs from the base Level II EV charging fee of $0.63/kWh: a. Replacement/Maintenance Costs – There may be future grants available to fund replacement costs or the life cycle of the Level II chargers may exceed five years. This results in a new EV charging fee of $0.36/kWh. b. Indirect Costs – Results in a new EV charging fee of $0.54/kWh. c. Replacement/Maintenance Costs and Indirect Costs – Results in a new EV charging fee of $0.27/kWh. 2. Direct staff to proceed with the purchase and installation of both Level II and Level III EV charging stations. 3. Direct Staff not to proceed with seven Level II EV charging stations at Ladera Linda. 4. Do not approve one or more recommendations, and direct Staff accordingly. 5. Take other action, as deemed appropriate. 10 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 B-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: B-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 B-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. B-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: B-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. B-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. matrix consulting group B-7 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. B-8 Matrix Consulting Group Page 1 April 2, 2025 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 $22,0712 Annual Replacement Cost $10,9403 Indirect Costs $5,031 Total Direct and Indirect Costs $38,042 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 C-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: $38,042 total cost = $0.47 per kWh 80,6444 kWH annually Based on the calculation conducted, the full cost associated with a Level II charging station is $0.47 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 $0.47 is $0.04 lower 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 on utilization per hour. As such, the full cost rate ($0.47 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. C-2 Annual Electricity Usage $22,071 Equipment Replacement & Maint. Cost Cost / Unit Life Span Annual Cost / Unit # of Units Total Cost Level II $7,815 5 $1,563 7 10,940$ -$ Subtotal Direct & Replacement Costs $33,011 Subtotal Replacement Costs 10,940$ Total Indirect $5,031 Total Costs $38,042 Total kWh 80,644 Cost per kWh $0.47 plus any passthrough transaction / charging fees assessed by vendor C-3 50% Utilization Annual Electricity Usage $5,738 Electrical Upgrade Cost $64,000.00 Equipment Replacement & Maint. Cost Cost / Unit Life Span Annual Cost / Unit # of Units Total Cost Level III $45,700 2 $22,850 2 45,700$ -$ Subtotal Direct & Replacement Costs $115,438 Subtotal Replacement Costs 45,700$ Total Indirect $17,592 Total Costs $133,030 Total kWh 20,966 Cost per kWh $6.34 plus any passthrough transaction / charging fees assessed by vendor Attachment D - One Dual Level III Charging Rate Fee D-1 50% Utilization Annual Electricity Usage $17,214 Electrical Upgrade Cost $90,000.00 Equipment Replacement & Maint. Cost Cost / Unit Life Span Annual Cost / Unit # of Units Total Cost Level III $28,361 2 $14,181 6 85,084$ -$ Subtotal Direct & Replacement Costs $192,298 Subtotal Replacement Costs 85,084$ Total Indirect $29,305 Total Costs $221,603 Total kWh 62,899 Cost per kWh $3.52 plus any passthrough transaction / charging fees assessed by vendor Attachment D - Three Dual Level III Charging Rate Fee D-2