Administrative
Report
H.13., File # 22-3713 Meeting Date: 2/15/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
INTRODUCE BY TITLE ONLY ORDINANCE NO. 3228-22, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE 3, CHAPTER 6
OF THE REDONDO BEACH MUNICIPAL CODE TO ESTABLISH A FEE TO USE PUBLIC
ELECTRIC VEHICLE CHARGING STATIONS, PERMIT THE ESTABLISHMENT OF OVERSTAY CHARGES FOR PUBLIC ELECTRIC VEHICLE CHARGING STATIONS, AND PROHIBIT NONCHARGING VEHICLES FROM PARKING AT PUBLIC ELECTRIC VEHICLE CHARGING STATIONS.
FOR FIRST READING AND INTRODUCTION.
EXECUTIVE SUMMARY
On January 18, 2022 the City Council accepted as complete Capital Improvement Project (CIP) Job No. 20770, Electric Vehicle Charging Infrastructure Project. The grant funded project added seven dual port level 2 chargers and one dual port DC fast charger at five different locations throughout the City. These locations include the Riviera Village Triangle Lot, Main Library Parking Structure, Performing Arts Center, North Branch Library Parking Lot, and Police Department Front Parking Lot.
These are the first publicly owned charging stations in the City and given the signification interest from the public and the Council, staff will look to expand the City’s electric vehicle charging station (EVCS) footprint through future grant opportunities.
The EV charging stations are active and currently being offered at no cost to the user. The Public Works Department is proposing the attached Ordinance to establish the mechanism to apply fees for use of current and future EV charging stations. While the Ordinance creates the structure for the new proposed fees, the actual amounts will be set through updates to the Master Fee Schedule. A Public Hearing to consider changes to the Master Fee Schedule is also scheduled for the February 15, 2022 City Council Meeting. The City Council will need to approve the fee amount at the conclusion of the hearing for the new EVCS fees to be implemented.
Staff is proposing the new fees to recover the City costs incurred for public use of the stations. The recommended user fees are 30 cents per kWh for use of level 2 chargers and 40 cents per kWh for use of the DC Fast Charger, which is comparable to surrounding Cities. Furthermore, there is a proposed overstay fee of $1.50 per hour that will be assessed after a vehicle has been charging for more than four hours. Lastly, staff is proposing a parking violation of $50 for vehicles not plugged into the station while parked in an EV parking space, which mirrors the City’s expired meter violation penalty.
The purpose of the proposed fees is to recover electricity costs associated with the EV stations along
H.13., File # 22-3713 Meeting Date: 2/15/2022
The purpose of the proposed fees is to recover electricity costs associated with the EV stations along with promoting turnover in the EV parking spaces to allow for multiple users to utilize the stations each day. Staff is recommending the introduction and first reading of the ordinance to create the basis for fees and the violations associated with the use of EVCS parking spaces in the Municipal Code. The second reading and adoption of the Ordinance would occur on March 1, 2022, and if the City Council sets the amount of fees at the conclusion of the Public Hearing the EVCS fees would be implemented on April 1, 2022.
BACKGROUND
The City was awarded a grant from the MSRC that was executed in February 2019. The grant matched up to 50% of the total electric vehicle supply equipment/charging infrastructure (EVSE) cost for private access EVSE, which is for the dedicated use of the proposing entity; and up to 75% of the cost of publicly accessible EVSE up to a City total of $89,400.
The City Council approved the charging site locations that include one private use site (City Hall Parking Lot), and five public use sites (Riviera Village Triangle Lot, Main Library Parking Structure, Performing Arts Center, North Branch Library Parking Lot, and Police Department Front Parking Lot), for a total of nine (9) EV charging stations including seven (7) dual port level II stations, one (1) single port level II station, and one (1) DC fast charger.
In addition, in November 2020 the City was notified of SCIP funds being reserved for the City as part of an application that was submitted in December 2019. The SCIP program is funded through the California Energy Commission and promotes easy access to zero-emission vehicle infrastructure by offering rebates for the purchase and installation of eligible public electric vehicle chargers. The EVCS project’s design scope was amended to incorporate a DC fast charger into the plans and specifications after SCIP funds were reserved for the City in the amount of up to $70,000 or 75% of the cost, whichever is less. The SCIP funds were appropriated in December 2020 for CIP No. 20770.
Subsequently, the plans and specifications for CIP No. 20770 were approved by the City Council on January 19, 2021. On February 25, 2021, five (5) bids were received and publicly opened in the City Clerk’s office. After reviewing the bids, Amtek Construction with a bid amount of $133,333 was found to be the lowest responsible bidder. Amtek Construction was awarded the contract through City Council approval on April 13, 2021. The agreement was finalized on May 18, 2021 and construction commenced on June 28, 2021.
The final inspection was approved and completed by the Building and Safety Division on December 20, 2021 and the City Council accepted the project as complete on January 18, 2022. Given that the stations are connected to existing City electric meters there is a need to recover the increased electrical costs from usage of the stations.
Public Electric Vehicle charging stations are new in the City. As such, the ability to recover costs associated with their use does not exist in the City’s Master Fee Schedule. Staff is proposing the attached Ordinance to establish the mechanism to collect fees for use of the recently activated and any future EVCS.
Charging Station User Fees and Non-Charging Violation
In order to optimize the use of the charging stations and allow multiple electric vehicles to use the charging equipment during a typical day, staff is proposing a pricing plan designed to cover energy
H.13., File # 22-3713 Meeting Date: 2/15/2022
charging equipment during a typical day, staff is proposing a pricing plan designed to cover energy costs and regular maintenance. Furthermore, in order to avoid non-charging vehicles from utilizing the EVCS spaces, staff is proposing a $50 violation for all vehicles parked in an EVCS space that are not charging their vehicles.
The cost for the use of the charger is calculated based on duration of stay and energy consumed ($/kWh). ChargePoint, the station manufacturer, recommends using kWh pricing to cover electrical cost and provide revenue to cover ongoing operating costs, then encourages establishing “graduated pricing based on duration of stay” where the use fees are raised after a charging period to encourage turnover of the parking space. The proposal, which will be formally considered as part of the public hearing on the master fee schedule, is to set charging rates at:
Level 2 Charger (CT 4000) Rate Per
Kilowatt
Hour
Over-Stay
Rate After 4
Hours
$0.30 $1.50/ Hour
Fast Charging (CPE250 50kW) Rate Per
Kilowatt
Hour
Over-Stay
Rate After 4
Hour
$0.40 $1.50/ Hour
Staff is recommending that the City set a fee for use of the charging stations of $0.30/kWh for Level 2 and $0.40/kWh for the DC Fast charger. After 4 hours of charging the vehicle would begin to be charged an overstay fee of $1.50/hour for both the Level 2 and DC Fast Charger. These fees are consistent and comparable with the fees established by other communities with similar EV infrastructure. Staff will monitor demand and use of the charging stations during the first year to determine if any adjustments to the use fees are needed. On-going costs to be incurred by the City for the charging stations will consist of station maintenance, annual ChargePoint network fees, and the cost of the electricity used, which will vary based on station usage.
These ongoing revenue and expenditures will be tracked by site utilizing ChargePoint’s software, and pricing will also be set within the system. Users of the stations will pay for the use of the stations directly with ChargePoint. Specifically, users of the stations will need to establish an account with ChargePoint, Inc. to access the electric charging services.
The adoption of this ordinance codifies and creates the mechanism that allows for charging users a fee, as well as issue violations to those non-charging vehicles parked in current EVCS spaces along with future EVCS spaces.
COORDINATION
Staff coordinated this report with the Finance Department, the Police Department, and the City Attorney’s Office.
FISCAL IMPACT
The City projects expenses and (offsetting) revenue to be approximately $28,000 per year for the use
H.13., File # 22-3713 Meeting Date: 2/15/2022
of the stations.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Ordinance