STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 14, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: EV Charging at City Facilities
RECOMMENDED ACTION:
Receive an informational update from staff and Electric Vehicle Charging Services, Inc. (EVCS) regarding their Charging as a Service model and Bay Area Air Quality Management District (BAAQMD) Charge! grant application; Ask any questions;
Take public comment; and
Provide any direction to staff regarding next steps.
BACKGROUND:
At a special “shirtsleeves” meeting on sustainability initiatives held on January 17, 2023, the City Council requested that staff return with more information on options for accelerating the deployment of public Electric Vehicle (EV) charging facilities in Hercules.
In its regulatory capacity, the City complies with state streamlining requirements for EV charger permitting. The City has also adopted a “reach code” that goes beyond 2022 California Building Code requirements to require additional operational EV charging at new multifamily and hospitality facilities. In addition, the City has negotiated EV charging commitments through development agreements for major projects, including Safeway, the hotel at Sycamore Crossing, and the Bayfront development.
As part of the ENGIE engineering services contract executed in 2020, the City installed conduit and verified sufficient electrical capacity to install EV chargers at City Hall and the Community Swim Center parking facilities; however, no chargers were installed. At that time, ENGIE estimated the installed cost per charger at $33,500 to $42,000 for Level 2 chargers and $100,000 to $112,500 per charger for Level 3 DC Fast Charging (DCFC).
ANALYSIS:
City staff consulted with ENGIE regarding likely cost escalation from their 2020 estimates. Using the California Construction Cost Index published by the state Department of General Services, Real Estate Division, construction costs have escalated by 33% from June 2020 through January 2023. This results in an estimated installed cost per charger of approximately $45,000 to $56,000 for Level 2 chargers and $133,000 to $150,000 for Level 3 DCFC.
In January and February 2023, City staff consulted with staff from the Governor’s Office of Business and Economic Development, the Governor’s Office of Planning and Research, the Metropolitan Transportation Commission, Contra Costa Transportation Authority, Contra Costa Public Works Department, and City of El Cerrito regarding EV charging grant and partnership opportunities.
Staff identified and analyzed seven grant or partnership programs that provide funding for EV charging facilities. The results are summarized in Attachment 1. Many of these programs are limited to, or prioritize funding for, Disadvantaged and/or Low-Income Communities, which makes Hercules ineligible or likely uncompetitive for these programs.
The programs for which Hercules is eligible typically cover up to only about one-third of the cost of the installation and charging equipment, provide this partial reimbursement one to three years after installation, and have extensive maintenance and reporting requirements. Given the City’s limited staffing, staff does not believe the City could be competitive on its own in seeking EV charging grants, nor does it have the staff capacity to manage procurement, installation, maintenance, reporting, and grant administration. In addition, funding has not been identified for the City’s up-front costs to install charging facilities.
Charging As A Service Model
Given these and similar limitations, it is common for site hosts to partner with vendors who specialize in EV charging facilities, who bundle multiple sites into a grant application that could be more competitive, provide gap funding, and then install, own, and operate the chargers under a site hosting agreement with the property owner.
The Bay Area Air Quality Management District offers a grant program to provide funding to offset the cost of purchasing and installing publicly accessible, pay-for-use EV chargers. In a coordinated effort to expand the infrastructure network in Solano County, the Solano Transportation Authority (STA) contacted six vendors from the air district-approved vendors list and identified Electric Vehicle Charging Solutions, Inc. (EVCS) as the most responsive EV charger vendor.
EVCS was founded in 2018 and currently is one of the larger electric vehicle charging networks on the West Coast. Its fast chargers are powered by 100% renewable energy and offer a turn-key approach that utilizes public and private funding sources to promote more installations. According to the company, its mission is to cut emissions while simultaneously improving air quality by enabling the rapid adoption of zero-emission electric vehicles.
In 2022, EVCS announced it had raised $68.8 million in funding to help expand its presence to over thirty-five new cities in California, Oregon, and Washington. Previously, EVCS had secured over $50 million in government funding and implemented nearly 150 partner sites to establish its net zero carbon charging network. EVCS currently has active agreements with Solano County and the Cities of Fairfield, Vallejo and Vacaville. EVCS will receive and manage grants and there is no local match required. The estimated completion time ranges from 18 to 30 months. Contra Costa County is in the process of negotiating a similar agreement with EVCS.
In consultation with Contra Costa County Public Works staff, City staff identified the opportunity to install publicly accessible DCFC stations at the Hercules Civic Center and Community Swim Center with no material cost to the City. This opportunity would be created through a public private partnership with EVCS. EVCS would own, operate, and maintain the DCFC units and will establish new electrical service meters with PG&E to supply sites with dedicated electrical capacity. EVCS would be responsible for all material and labor costs associated with design, construction, maintenance, and operation of DCFC units, including electricity costs. These DCFC units would be open to the public and not dedicated to City fleet use.
Jessie Guo, Director of Network Expansion for EVCS, will make a brief presentation and be available to answer questions.
Charge! Grant Application
On February 27, 2023, EVCS made City staff aware of an opportunity to participate as a potential site host in a Charge! Grant application to the Bay Area Air Quality Management District, with an application deadline of March 3, 2023. The Charge! Program provides grant funding to offset the cost of purchasing and installing new chargers for light-duty electric vehicles (EV) at workplaces, destinations, transit parking locations, along transportation corridors, and multi-unit dwelling facilities.
Given the short timeframe for the grant application, with the approval of the City Manager, EVCS’s grant application included two City-owned sites in Hercules: the Civic Center and the Community Swim Center.
Next Steps
Charge! grant awards are expected to be announced in May or June 2023. If the grant is successful, staff will return to Council for authorization to negotiate a Site Host Agreement with EVCS for each site.
On March 7, 2023, the Contra Costa County Board of Supervisors agenda included an item authorizing County Public Works staff to negotiate Site Host Agreements with EVCS for Direct Current Fast Chargers at over 20 County-owned library locations and other County-owned facilities. If approved by the Board, the County agreement with EVCS would provide a template for the City’s agreement under similar terms, as allowed by the consolidation provisions of the California Public Contract Code.
FISCAL IMPACT:
There is no fiscal impact associated with this informational update. If the City enters into a Site Host Agreement with EVCS, the design, construction, maintenance, operation, and other services would be provided by EVCS at no cost to the City. The contract would generate revenue for the City at a rate of $0.07/kilowatt hour (kWh). The estimated annual revenue to the County is $7,000 per charger, or $70,000 per charger for the term of the agreement. City project management would be undertaken by Community Development staff.
ATTACHMENTS:
Attach 1 – EV Charging Funding Opportunities
Attach 2 – EVCS presentation