STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: EVCS Electric Vehicle Charging Site Host Agreement RECOMMENDED ACTION:
Receive a report from staff regarding a Site Host Agreement for EV Charging services at the Hercules Civic Center and Hercules Community Swim Center; Ask any questions;
Take public comment; and
Approve a resolution authorizing the City Manager to execute a Site Host Agreement with EVCS 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 deployment of public Electric Vehicle (EV) charging facilities in Hercules.
Given the specialized nature of EV charging permitting, installation, maintenance, funding and reporting, it is common for site hosts to partner with vendors who specialize in providing EV charging as a service. These vendors 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.
In consultation with Contra Costa County Public Works staff, City staff identified the opportunity to install publicly accessible charging 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 Electric Vehicle Charging Services, Inc. (EVCS). EVCS would own, operate, and maintain the charging 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 the charging units, including electricity costs. These charging units would be open to the public and not dedicated to City fleet use.
The Bay Area Air Quality Management District (BAAQMD) offers a grant program to provide funding to offset the cost of purchasing and installing publicly accessible, pay-for-use EV chargers. 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. 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.
On March 7, 2023, the Contra Costa County Board of Supervisors approved an item authorizing County Public Works staff to negotiate Site Host Agreements with EVCS for Direct Current Fast Chargers (DCFCs) at over 20 County-owned library locations and other County-owned facilities. The County agreement with EVCS served as a template for the City’s agreement under similar terms, as allowed by the consolidation provisions of the California Public Contract Code.
On March 14, 2023, the Council received an informational update from staff and EVCS regarding their Charging as a Service model and BAAQMD Charge! grant application. With the approval of the City Manager, EVCS’s 2023 grant application included two City-owned sites in Hercules: the Civic Center and the Community Swim Center.
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 Contra Costa and Solano Counties 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.
ANALYSIS:
EVCS staff have indicated that they have discussed their Charge! Grant application with BAAQMD staff and are optimistic that the grant will be awarded. EVCS also has other funding sources available. In order to move forward expeditiously if the grant is approved, staff requests the Council authorize the City Manager to execute the Site Host Agreement with EVCS in the substantially same form as the attached for the two City-owned sites.
Key deal points, as negotiated by City staff, include:
Each of the two sites would receive 8 DCFC stations and 2 Level II stations, for a total of 16 DCFC stations and 4 Level II stations Chargers would be located under existing solar canopies at both sites Contra Costa County agreement used as a template
No deposit required from the City as Site Host
Revenue sharing to the City of $0.07 cents per kilowatt-hour of electricity sold Ten (10) year term with optional ten (10) year extension Jessie Guo, Director of Network Growth for EVCS, will be available to respond to questions.
FISCAL IMPACT:
If the City Council approves the Site Host Agreement with EVCS, the design, permitting, 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) of electricity sold. The estimated annual revenue to the City 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 – Resolution
Attach 2 – EVCS Site Host Agreement with Exhibits