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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 4, 2026
To: Honorable Mayor and City Council Members
From: C. Jeannie Fortune, Interim Director of Finance and Management Services
Department: Finance & Management Services
Subject: Authority to Execute a Charging Station Site License Agreement Between the City of San Bernardino and
Veteran Energy Services Company (VESCO) for Electric
Vehicle Charging Stations at Feldheym Library (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager, or designee, to execute the Charging Station Site License Agreement for a 10-year term with the option to renew for an additional one (1) to ten (10) years, and any subsequent amendments, subject to the review and approval by the City Attorney as to form.
Executive Summary
This staff report is a request to enter into a Charging Station Site License Agreement with GC Green and Xnergy, a joint venture LLC doing business as Veteran Energy Services Company (VESCO) for the installation and operation of up to four (4) Direct Current Fast Charging (DCFC) stations at Feldheym Library. Entering into this agreement would allow opportunities to expand the number of charging stations at additional city sites with Feldheym as the pilot for this project.
Background
On October 1, 2025, Council approved a no-cost Charging Station Site License Agreement with EV Charging Solutions (EVCS) for the installation and operation of up to four (4) Direct Current Fast Charging (DCFC) stations at Feldheym Library. Since the approval to enter into agreement, EVCS notified city staff that they are unable to proceed with the project due to capacity limitations. These limitations stem from significant time constraints, an accumulation of previously approved projects that are still pending initiation and overlapping grant deadlines that demand priority attention.
Consequently, EVCS cannot allocate sufficient resources to meet the project’s schedule and deliverables. To ensure continuity and timely delivery, EVCS referred the 2 9
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project to another EV carrier- GC Green and Xnergy, a joint venture LLC doing business as Veteran Energy Services Company (VESCO), that has demonstrated the capacity and willingness to carry out the project. VESCO representatives have conducted a site assessment at Feldheym Library to ensure timely project delivery.
Discussion
VESCO as a joint venture combines the specialized experience of EV charging station development and engineering, procurement, and construction. Founded in 2010, and is a Woman, Native American, and Service-Disabled Veteran-Owned Business specializing in construction, energy efficiency, renewable energy, and resiliency solutions for public, tribal, and private sector clients across California and beyond.
VESCO has extensive experience delivering similar EV charging station projects.
Throughout the project lifecycle, VESCO works closely with project owners, utilities, local jurisdictions, and equipment vendors to ensure EV charging stations are installed in compliance with applicable codes, utility requirements, and program guidelines. This coordinated approach ensures operational readiness and the successful deployment of charging stations that advance both immediate project goals and long-term community and environmental benefits.
Since receiving notice from EVCS that they could no longer deliver the EV Charging Station project and referred to VESCO as a viable alternate provider, staff quickly worked to coordinate a site visit to the Feldheym Library and held multiple discussions with VESCO to explore transitioning the project and funding from Southern California Edison (SCE) through DCFC Charging Program.
VESCO has agreed to engage the City for a similar Charging Station Site License Agreement, noting the following changes for consideration:
1. Financial Structure Amendment (Revenue Sharing)
Shifting to a profit-sharing model to properly account for the benefits generated by a battery energy storage system (BESS) from a per-kWh payment to electricity sold.
Net Operating Income (NOI) Sharing: Instead of a fixed $0.05 per kWh payment, we propose the City receive a revenue share equal to five percent (5%) of the Net Operating Income (NOI) generated annually by the Charging Station. BESS stores energy during off-peak hours to avoid high utility demand charges. These stations can offer more stable, competitive, or lower rates to users regardless of the time of day. The change is expected to offer comparable revenue-sharing benefits; however, the exact revenue potential is unknown due to the chargers being new to the site.
Demand Charge Protection: This change would remove obligation to reimburse the City for incremental demand charges, as the BESS investment is intended to eliminate or minimize these charges, and the savings are factored into the 2 9
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higher NOI. The City would directly benefit from the BESS investment through this enhanced profit calculation.
2. Critical Timeline and Permit Deadlines
Given the immediate need to move the project forward, non-negotiable termination dates are necessary to protect VESCO from prolonged, non-reimbursable spending.
Permit Issuance Deadline: A clause added to the contract that the project be subject to immediate cancellation by either party if the required City-issued Construction Permit is not obtained by April 1, 2026. This creates an early exit point before significant construction funds are committed. Utility Execution Deadline: The agreement will also be subject to immediate cancellation if SCE cannot execute Placement in Service for their required Utility-Side Infrastructure obligations. This preserves the integrity of the crucial fully-funded SCE agreement already in place.
3. Reduced Risk to VESCO
We would like to also add a measure to mitigate VESCO’s financial risk if the project is unexpectedly terminated at an early stage:
Preliminary Work Cost Recovery: In the event the agreement is terminated before the construction permit is issued (e.g., due to the April 1, 2026 deadline), the City agrees to reimburse VESCO for all pre-construction expenses, such as engineering and design fees, any preliminary feasibility studies and site assessments, and utility coordination and permit application costs for an amount up to a $25,000 (reasonable cap) upon presentation of invoices.
These amendments provide a fairer structure for the City, incentivizing the use of advanced BESS technology to ensure the long-term reliability and viability of the site, while protecting VESCO from unnecessary capital expenditure risk.
Staff recommends the authorization to enter into a Charging Station Site License Agreement with VESCO to install up to four (4) DCFC charging stations at Feldheym Library as a pilot project with the potential to expand to other city-owned sites for additional EV charging stations.
2021-2025 Strategic Targets and Goals
Investments in the community leveraging partnerships and grant funds support Key Strategic Goal 2b: Focused, Aligned Leadership and Unified Community – Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness; and Key Strategic Goal 3: Improved Quality of Life by improving air quality and expanded mobility options. 2 9
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Fiscal Impact
The potential fiscal impact to the general fund shall not exceed $25,000 in the event the project terminates on or before April 1, 2026 to reimburse VESCO for preliminary work cost recovery.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager, or designee, to execute the Charging Station Site License Agreement for a 10-year term with the option to renew for an additional one (1) to ten (10) years, and any subsequent amendments, subject to the review and approval by the City Attorney as to form.
Attachments
Attachment 1- Charging Station Site License Agreement
Ward:
First Ward
Synopsis of Previous Council Actions:
October 1, 2025 Council approved a no-cost, site host agreement with EVCS for EV Charging at Feldheym Library.