Agenda #: 5.6
Meeting Date: January 18, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: ESTABLISHMENT OF ELECTRIC VEHICLE CHARGING FEE RATES.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
Adopt Resolution No. 2022-02, establishing electric vehicle charging station fee rates effective January 19, 2022.
FINANCIAL IMPACT:
The users of the charging stations are proposed to be charged $0.49 per kilowatt-hour (/kWh) of the electricity that is delivered to their vehicles. In addition, there would be a $1.20 per hour occupancy fee that is calculated by the minute starting 15 minutes after the end of the charging session if the vehicle is not disconnected. The proposed fees would cover all service fees, maintenance and operating costs, including the City’s electricity cost. City vehicles would be exempt from the fees, although actual cost of electricity would still be incurred during charging.
BACKGROUND:
On January 16, 2018, the City Council adopted Resolution No. 2018-06 approving a Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant Application to in part, install Level 2 charging stations at the City Hall. Following a competitive bid process, the City administratively awarded the construction contract for the charging stations to Noodoe, Inc., which commenced in November 2021.
Five (5) Level 2 (240 V) Electric Vehicle (EV) charging stations have now been installed in the City Hall parking lot and are currently under test use. The proposed Resolution (Attachment 1) would establish the rates for public use of the charging stations.
ANALYSIS:
Typically, an Electric Vehicle (EV) Charging Fee is comprised of the following five
components: 1. Cost of Electricity; 2. Cost of Network Services; 3. Cost of Warranty; 4.
Capital Cost Recovery; and 5. Payment Processing Fee.
Based on the electricity bills received from Southern California Edison, the average electricity cost at the City Hall from December 16, 2020 to December 14, 2021 (one year period) is $0.19 per kilowatt-hour (/kWh).
Staff conducted a fee study to identify optimal pricing where the City recovers the electricity, operating, and maintenance expenses for the newly installed public EV charging infrastructure. Based on a survey of several public agencies, Level 2 EV chargings at their facilities costs between $0.29/kWh and $0.59/kWh.
For the newly installed public charging stations, staff recommends the users/drivers to be charged $0.49/kWh. This is consistent with the average electric vehicle charging cost at public facilities in the region.
The charging cost collected from the users at the rate of $0.49/kWh pays for:
• Credit card processing fee (Stripe.com): 3.2% of the total charge. • Noodoe Inc. service fee (software system): $1.00 per charging session. • Noodoe Inc. maintenance cost (hardware): 25% of the total charge net of the service fee and credit card processing fee.
• City’s electricity ($0.19/kWh), operating, and capital cost: 75% of total charge net of the service fee and credit card processing fee.
To illustrate, a sample calculation/analysis has been prepared below for a typical charging session:
A. Electricty Delivered in Sample Charging Session (kWh) 6 B. Proposed Charging Fee (/kWh) $0.49
C. Average Electricity Rate (/kWh) $0.19
D. Total Charge to Customer (A x B) $2.94
E. Noodoe Flat Fee Per Session (Software and App) $1.00 F. Swipe Credit Card Processing (3.2% x D) $0.09
G. Net Balance (D - E - F) $1.85
H. Noodoe Revenue Share (Hardware Maint.) (G x 25%) $0.46 I. City Revenue Share (Gx 75%) $1.38
J. Electricity Cost (A x C ) $1.14
K. Net City Revenue After Electricity Cost (I - J) $0.24 Additionally, the users are proposed to be charged a $1.20/hour Occupancy Fee calculated by the minute, for continuing to occupy a charging station/parking space 15 minutes after their vehicle is fully charged to its charging limit. The intent of this fee is to discourage EV users from leaving their vehicles plugged in beyond the time necessary to charge their vehicles to free up the space for the next customer.
To support the City’s General Plan Climate Action Plan, establishing no-fee charging for the City’s fleet of electric vehicles is recommended at the newly installed five (5) EV charging stations.
The proposed Resolution also authorizes the City Manager, after an evaluation of operating and maintenance costs, electricity rates and charging station usage data, to make adjustments to the rates annually to achieve at least a cost-neutral position for the City.
In oder to use the City Hall EV Charging Stations, customers will need to download the Noodoe App from the Apple App Store or Google Play Store and set up an account. In efforts to promote the newly installed City Hall EV Charging Stations, Noodoe Inc. has provided the City with 1,000 coupon vouchers, some of which have already been used during the testing period. Each EV charging voucher can be used for a one-time charging session of an EV regardless of the kWh of the electricity used or the time that it takes. Staff will be coordinating the distribution of the vouchers through our normal media outlets in the coming weeks.
Separately, a maintenance services agreement with Noodoe, Inc. is being prepared. It will be reviewed and executed administratively, and will cover the software system and the hardware maintenance of the charging stations. The services provided by Noodoe Inc. will be paid for through their $1.00/charging session service fee for the software system and the 25% percent revenue share for the hardware system/equipment. There will no additional costs to the City.
LEGAL REVIEW:
City Attorney has reviewed and approved the Resolution as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.6.a Resolution No. 2022-02