CA Review GH
Meeting Date: March 14, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Molly Amendt, Senior Engineer
[email protected], 760-573-3368
Subject: Agreement with San Diego Gas & Electric to Provide, Install and Maintain Electric Vehicle Charging Station Infrastructure at a City Parking Lot
District: 1
Recommended Action
Adopt a resolution authorizing execution of an application and agreement with San Diego Gas & Electric to provide, install and maintain electric vehicle charging station infrastructure as part of the State Street Parking Lot Electric Vehicle Charging Stations Project, Capital Improvement Program Project No. 4090.
Executive Summary
San Diego Gas & Electric has an electric vehicle, or EV, infrastructure policy that allows the City of Carlsbad to provide more public EV chargers with no installation costs to the city for the utility-owned infrastructure. The utility will pay for the design, construction, installation and maintenance of the utility-owned infrastructure for the city’s EV charging stations.
To take advantage of this opportunity, staff are requesting the City Council authorize the execution of an application and agreement with SDG&E to perform this work on a previously approved city project to add ten EV charging stations to the city-owned parking lot at 3021 State St.
The City Council’s approval for the agreement is required because there is no municipal code section or resolution authorizing the City Manager or the Mayor to execute this application and agreement with SDG&E. Additionally, the agreement requires the city to broadly indemnify SDG&E for any damages that might arise from its work related to the agreement, which requires the City Council’s approval.
A proposed resolution is provided as Exhibit 1.
Explanation & Analysis
The State Street Parking Lot Electric Vehicle Charging Stations Capital Improvement Program, Capital Improvement Program Project No. 4090, will add EV charging stations to the city-owned parking lot located at 3021 State St. It includes the construction of up to ten chargers in the lot.
The lot’s existing public charging ports consistently have the highest use of city-owned public chargers.
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The city was developing the plans and specifications required to construct the additional EV chargers when SDG&E established its EV Infrastructure Rule, Rule 45, in April 2022. The policy was created in response to Assembly Bill 841, which requires utilities companies to undertake transportation electrification efforts approved by the California Public Utilities Commission to advance California’s goal of reducing emissions of greenhouse gases to 40% below 1990 levels by 2030.
Under its EV Infrastructure Rule, SDG&E designs and deploys electric distribution infrastructure for all customers putting in EV charging stations that will have their own electric meters, other than those being installed in single-family homes.
Electric distribution infrastructure includes all of the required equipment and the associated engineering and civil construction work. The rule does not cover the costs of relocating or removing existing utility infrastructure, which would be the city’s responsibility.
Under the agreement, SDG&E will cover the infrastructure construction costs. The city is also not obligated to use a certain amount of power from the chargers, which eliminates the risk of the city having to make future payments to SDG&E if the chargers are underused.
Staff have identified the public EV charging project on State Street as an appropriate site because it meets the qualifications for participation and was already in development with SDG&E.
Under this agreement, and at no cost to the city, SDG&E will:
• Design the utility-owned electric distribution infrastructure to operate two direct current fast chargers and five Level 2 dual-port chargers1 • Purchase the materials and equipment necessary to complete construction of the utility- owned electric distribution infrastructure
• Construct, install and maintain all utility-owned electric distribution infrastructure In agreeing to participate in this program, the city will:
• Engineer, permit and construct the city-owned electric infrastructure, including the chargers (There is funding for this work in the budget for this Capital Improvement Program project)
• Grant SDG&E an easement for new utility-owned electric distribution infrastructure • Fund and execute the operation and maintenance of the charging stations for at least five years from when SDG&E makes the power available
• Remedy any charging station maintenance issue within 90 days of the start of the issue • Be required to reimburse all of SDG&E’s costs, if any of the charging stations are not in working condition after one year
• Install and activate the charging stations within 30 days after the SDG&E makes the power available
• Collect data required by the agreement and provide project information to SDG&E that conforms to the requirements of the California Public Utilities Commission
1 Direct current fast chargers are the fastest available chargers. The more common Level 2 chargers run on the standard alternating current in homes and businesses and take longer to charge an electric vehicle.
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• Indemnify SDG&E for any damages that might arise from its work related to the agreement, as mentioned above
Options
Staff provide the following options for the City Council’s consideration:
1. Authorize execution of the application and the EV Infrastructure Rule agreement with SDG&E
Pros
• Provides a more cost-effective solution for the new electric utility service required for the project
• Supports the goals of the city’s Climate Action Plan to reduce greenhouse gas emissions
Cons
• Costs of designing and installing utility-owned electric infrastructure will fall on the city if agreement terms are breached
2. Do not authorize execution of the application and agreement Pros
• Removes the risk of paying back costs to SDG&E if terms are breached Cons
• Does not allow the city to realize cost savings on design, construction and materials
• If the EV Infrastructure Rule opportunity is not used, SDG&E will set a customer allowance for the city’s EV charging stations based on future load, and future payments to SDG&E are a possibility if the chargers are under-used Staff recommend Option 1 for the City Council’s approval.
Fiscal An alysis
The city is responsible for engineering, permitting, constructing and maintaining city-owned electric infrastructure including the chargers.
The city will be responsible for paying SDG&E the ongoing costs of the electricity consumed by the EV chargers and the annual EV charger software subscription costs. The city will collect use fees by drivers to offset these costs.
The city will not incur any membership or participant fees by entering into this agreement.
Funding for the EV charger project has been appropriated from the Public Facility Fee Fund and is adequate to cover anticipated costs.
State Street Parking Lot Electric Vehicle Chargers
Capital Improvement Program Project No. 4090
Total appropriation to date - Public Facility Fee Fund $300,000 Total expenditures and encumbrances -$18,500
Remaining available funds $281,500
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Next Steps
After receiving the City Council authorization for the agreement, SDG&E will proceed with final design of the utility-owned infrastructure and secure any necessary easements for the project.
Construction is estimated to begin in fall 2023 and take approximately three months to complete, with an estimated completion in late 2023 or early 2024. According to the agreement, the city will have 30 days to install and activate the chargers from the date electric service is energized.
Environmental E valuation
The project is exempt from the California Environmental Quality Act under Guidelines Section 15301(b), which covers the minor alteration of existing public facilities, including existing facilities of both investor and publicly owned utilities, involving negligible or no expansion. In addition, none of the exceptions listed in Guidelines Section 15300.2 apply to the use of this exemption.
Exhibits
1. City Council resolution
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RESOLUTION NO. 2023-075
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AN APPLICATION AND
AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO PROVIDE, INSTALL AND
MAINTAIN ELECTRIC VEHICLE CHARGING STATION INFRASTRUCTURE AS
PART OF THE STATE STREET PARKING LOT ELECTRIC VEHICLE CHARGING STATIONS PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 4090 WHEREAS, the City Council of the City of Carlsbad, California has determined that San Diego Gas & Electric established the Electric Vehicle Infrastructure Rule known as Rule 45 tariff to support California's goal of reducing emissions of greenhouse gases to 40% below 1990 levels by 2030; and WHEREAS, staff have determined that it is necessary to install new utility-owned electric make ready infrastructure to support installation of EV charging stations as part of the State Street Parking Lot EV Charging Stations Project, Capital Improvement Program Project No. 4090; and WHEREAS, the EV Infrastructure Rule tariff pays for up-front design and construction costs of utility-owned electric infrastructure that is needed for EV charging stations; and WHEREAS, the city will be responsible for ongoing costs of the electricity being consumed by these chargers and the annual EV charger software subscription costs, and such costs will be offset by the usage fees collected from drivers who utilize the chargers.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Council authorizes the City Manager, or designee, to execute the EV Infrastructure Rule (Rule 45) Application, attached as Attachment A, and enter into an Agreement with San Diego Gas & Electric, authorizing SDG&E to perform EV Infrastructure Rule (Rule 45) tariff schedule related work, attached as Attachment B.
Exhibit 1
March 14, 2023 Item #1 Page 5 of 9
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 14th day of March, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
March 14, 2023 Item #1 Page 6 of 9
... ~ SempraEnergyu1,ay· Residential Multi-Unit Dwelling/ Commercial/ Industrial Development Please complete and submit this request along with the REQUIRED plans to the applicable SDG&E Project Management office.
Project Informat ion
D Electric Overhea d Service [Z] Electric Underground Service Date Initial service needed 110/02/23 ==:::=:--;:::::=======:
ProjectAddress/Location J302 1 State Stree t l CitylCarlsbad j statelCA l Zipl92008 Nearest Cross Street !Carlsbad Village Drive I Assessor's Parcel # @032960600 l Building ;...Pe:.:rm= ~~#...:I:::=:=:=:==:
Applicant I Company NamelCity of Carlsbad I Phone #f760-573-3368 Applicant Addressj1635 Faraday Avenue I CityJCarlsbad State!CA l ZipJ92008 r-r,::-------------------,
1 (Include whether Individual, partnership, corporation - Including Legal name to appear on contracte ity of Carlsbad _ an Incorporated association, state of Incorporation or LLC) Name of person authorized to sign contracts @colt Chadwick I Title jCity Manager Mailingadd ressforcon tract j1200 Carlsbad Village Drive I City JCarlsbad Stat~CA jzio@2008 Primary Contact Information (primary person relaying mformat1on between applicant and SDG&E representative) Jcompany !City of Carlsbad Name of Primary ContactJMolly Amend! Phone# @42-339-5928 l Cell # l760-573-3368 I Email Jmolly.amendt@ca rlsbadca .gov Mailing Address 11635 Faraday Avenue I Cit* arlsbad j state jcA I zip j92ooa Construction Information
Number of Charging Ports Required: 2 fast chargers, 10 Level Will existing SDG&E electric overhead facilities require undergrounding? Maximum Power Level for each EVSE: JDCFC 62.5, L2 6.24
llJ No O Yes
Ill No D Yes Will any existing SDG&E gas or electric facilities require relocation or removal? If yes, date needed: I.._ _______ __,
Are you planning on installing any self-generation equipment (photo voltaic or wind generation)? Ill No D Yes Operating Information
Type of Building (Office, Restaurant, Manufacturing, School. Shell, etc.) !Publi c city parking lot Operating Hours ~ Hours/day [=:J Days/week. Daily Ope_ ra_t-in_g_H_rs~:rl ===,,~am7 I==,rp_m_ P-ro_po_s_ed_ a_nn_u_a_l k-WH--Usa_ g_e·p=4=,=oo=o~ Load Information (1f multiple buildings. please provide separate gas and electric load mformat1011 for each bu1ldmg) IMPORTANT NOTE: Do NOT Install your electric main switch until the meter location Is approved by SDG&E.
New Main Switch Size (Service Termination Endosure)
Voltage: (select one)
Dl120/240 Volt, 3-wire, 10 DI 240/120 Volt, 4-wire, 30
11]480/277 Volt, 4-wire, 30 DI Primary voltage(> 480 Volts) □ 208/120 Volt, 4-wire, 30
□ Other (specify)
Customer Information
\Nhat is type of site (workplace , fleet , MUD, etc.):_P_u_b_li_c_p_a_rk_i_n_g_lo_t _____ _____ _____ _______ _ Is charging publicly accessible , shared , or private : Publi cly accessible ----- ------------------- -----
Is site located in a disadvantaged community (DAC) , another designa ted under-served community location (if so, which) , or neither.
No
Is customer participa ting in another SDGE incentive/infrastructure program : No ----------------- ---- Is site at a garage, a surface parking lot installation, or other (must explain · other"):_S_u_rf_a_c_e_p_a_r_ki_n_g_lo_t ______ ___ _ Will site primarily service light, medium , or heavy-duty or off-road EVs, or a mix: Light duty ------ -------------- Other Comments: . ____________________________ ___________ _ underlake and perform each and every obligation required of Appli a t.
Print Name :LAcw Cnaa.rn ignature '==l.== ol=#==========-Dat,06MAV5 March 14, ~ZF Page7of'9
AGREEMENT TO PERFORM RULE 45
TARIFF SCHEDULE RELATED
WORK
Attachment B
(City of Carlsbad J (Applicant) has requested SAN DIEGO GAS & ELECTRIC COMPANY , a California corporation (SDG&E) , to perform the tariff schedule related work in accordance with Electric Rule 45 and as located and described in paragraph 5 herein .
SDG&E agrees to perform the requested work and furnish all necessary labor, equipment, materials and related facilities required therefore, subject to the following conditions:
1. Whenever part or all of the requested work is to be furnished or performed upon property other than that of Applicant , Applicant shall first procure from such owners all necessary rights-of-way and/or permits in a form satisfactory to SDG&E and without cost to it.
2. Applicant shall indemnify and hold harmless SDG&E, its officers, agents and employees , against all loss, damage, expense and liability resulting from injury to or death of any person, including but not limited to, employees of SDG&E, Applicant or any third party, or for the loss, destruction or damage to property , including , but not limited to property of SDG&E, Applicant or any third party, arising out of or in any way connected with the performance of this Agreement but only in proportion to and to the extent such liability, loss, attorneys' fees, and expenses were caused by or result from the negligent or intentional acts or omissions of the Applicant , its officers, employees or agents . Applicant will pay all costs that may be incurred by SDG&E in enforci ng this indemnity, including reasonable attorneys' fees.
3. The Applicant must activate the initial agreed upon quantity of charging stations within 30 business days after service point energization by SDG&E (aka: DRS or Date Ready for Service). The Applicant must provide written confirmation to SDG&E once additional Charging Stations are installed. Due to any unforeseen financial or material lead time impact, the installation date of future chargers may be modified within the five-year contract term, subject to mutual agreement between SDG&E and the Applicant.
4. The Applicant understands that they are responsible for funding and executing the operation and maintenance of the charging stations for a minimum of 5 years from the DRS date. Applicant must remedy any Charging Station maintenance issue within 90 days of the start of such maintenance issue. Failure to comply with these terms may, at utility's discretion, result in discontinuation of service. In the event of discontinuation of service, Applicant shall reimburse utility's costs. If any of the Charging Stations are not in working condition for one year, Applicant shall reimburse all utility costs incurred under this Rule to the utility, subject to utility's knowledge .
5. At the start of DRS, Applicants will be enrolled as a default in the then available commercial time-variant electric vehicle ("EV") rate offered by SDG&E, unless otherwise agreed to by the Parties.
6. The location and requested work are described as follows: (Describe in detail the materials and facilities to be furnished and/or work to be performed by SDG&E. If more space is required, use other side, and attach any necessary drawings as Exhibits A, B, C, etc.).
LOCATION: 3021 State Street, Carlsbad, CA 92008
DESCRIPTION OF WORK: Connect to D221296 , tren ch, conduit & wiring to new 3-phase 277/480V transformer & meter
7. If the Applicant fails to comply with any of the above requirements , including but not limited to Section 4, as reasonably determined by SDG&E, SDG&E may terminate this Agreement and discontinue service or deenergize the EV infrastructure . In addition, SDG&E may pursue reimbursement of the costs incurred in connection with deploying the utility side EV infrastructure, including engineering design fees, and any costs associated with the removal of the utility-side EV infrastructure .
8. Data Collection and Use. Applicant shall support the data collection requirements of Rule 45. Data collection requirements will conform with the requirements of the California Public Utilities Commission and Data Reporting template to be provided. Appli cant hereby expressly consents to the use and disclosure, by SDG&E, its agents and representatives, of data gathered as part of Rule 45 for use in regulatory reporting, industry forums, case studies or other similar activities.
9. Upon completion of requested work, ownership shall vest to SDG&E.
March 14, 2023 Item #1 Page 8 of 9
AGREEMENT TO PERFORM RULE 45
TARIFF SCHEDULE RELATED
WORK
City Manager
Title
March 14, 2023
SAN DIEGO GAS & ELECTRIC COMPANY
Authorized by (Print)
Signature
Title
Date
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