City Council Agenda Report
Meeting Date: January 16, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Purchase Contract with ChargePoint, Inc. for an Additional 5-Year Assure Maintenance Plan and Enterprise Cloud Plan Subscription
Recommendation
A. Pursuant to Vernon Municipal Code Section 3.32.110(B)(3), deem the proposed Purchase Contract commercially unreasonable to rebid every three years due to ChargePoint’s proprietary software system and being the original equipment manufacturer for the existing chargers; B. Approve the issuance and authorize the City Administrator to execute a Purchase Contract with ChargePoint, Inc., for an additional 5-Year Assure Maintenance Plan and 5-Year Enterprise Cloud Plan Subscription, in an amount not-to-exceed $381,700, extending the overall warranty for the 20 City-owned Direct Current Fast Chargers to a total of 10 years; and C. Authorize a contingency amount of ten percent (10%) or $38,170 for unforeseen expenses not included in the proposal, and grant authority to the City Administrator to issue Change Orders for an amount up to the contingency amount, if necessary.
Background
On July 19, 2022, the City Council approved a Master Services and Subscription Agreement (MSSA) not exceeding $825,837.85 with ChargePoint, Inc. (ChargePoint) to procure 10 Direct Current Fast Chargers (DCFCs), which references the Purchase Contract from July 12, 2022 Quote.
On December 20, 2022, the City Council approved a second procurement of an additional ten DCFCs from ChargePoint in the amount of $827,758.85 (Purchase Contract from December 8, 2022 Quote. Vernon Public Utilities (VPU) had identified two sites to pilot test the installation of DCFC to meet electric charging needs and to provide a large number of fast chargers for public use. The two separate purchases of the ChargePoint chargers both included a five-year warranty for maintenance (parts, labor, and remote technical support), as well as a five-year subscription to ChargePoint’s Enterprise Cloud Plan – a propriety cloud data network subscription that provides advanced management of the charging stations which would allow dynamic pricing, real-time troubleshooting, and more.
The two public Electric Vehicle (EV) charging sites that VPU identified were centrally located on opposite ends of the City and conveniently located by restaurant and restroom access. The need for public charging is critical to meet the demand of electric vehicle drivers traveling extended distances who must make recharge stops in order to get to their destination. The ability to connect to a DCFC and recharge an EV battery to 80 percent in approximately 15 minutes to 45 minutes, depending on the vehicle's voltage capacity, is essential to overcoming range anxiety, enabling long-distance travel, and empowering individuals without home-charging access to go electric.
With the City of Vernon located within a few miles of six major freeways, the public DCFC pilot stations provide drivers with a convenient option to charge EVs locally while supporting Vernon restaurants and businesses.
The steady growth of EVs has simultaneously increased demand for public fast-charging infrastructure over the years. With more EVs on the road than ever, charger “uptime” is a critical factor in the success of public fast charging networks, as it represents the percentage of time that an EV driver can arrive at a charging station, plug in their vehicle, and successfully receive a sufficient charge. Unlike standard Level 2 chargers installed at home or the workplace, DCFCs located at public charging sites must operate in unison with the network operator and the payment system while initiating individual charging sessions with EVs from different manufacturers to deliver a seamless charging experience.
Since the launch of both pilot sites (3807 S. Soto Street – July 2023 and 1850 E. 25th Street – December 2023), VPU has frequently called on ChargePoint’s customer support and maintenance team to troubleshoot several hardware issues. Due to the array of sophisticated power electronics found in DCFCs, this can range from service calls that involve replenishing coolant to replacing power modules or updating software configurations. These maintenance and service calls are comparable to other competitive charging equipment, and the operational challenges VPU has overcome so far are similar to the obstacles faced by other municipalities, local utilities, and the EV industry as a whole. As a result, VPU recommends extending the manufacturer coverage by an additional five years to ensure that the city-owned DCFCs remain operational throughout their useful life, which is generally estimated to be ten years and further aligns with the land lease term that the chargers were installed. In many instances, parts and labor for the repair of broken chargers can be costly if the units are no longer under warranty.
Under the ChargePoint Assure extended maintenance plan, all 20 DCFCs will be covered by parts and labor warranty, remote technical support, on-site repairs (as needed), unlimited configuration changes, and report generation capabilities. Additionally, there will be no interruption in software service for all 20 DCFCs, which includes continued Enterprise Cloud software updates, access control/pricing and automatic payment collection, and Time of Use Power Sharing and Energy Management application programming interfaces (API). The proposed 5-year extension of both the ChargePoint Assure Maintenance and the Enterprise Cloud Software subscription will be effective from when the first 5-year extension expires and will conclude as noted below.
Second 5-year extension Coverage Period:
• 3805 S. Soto Street, Vernon, CA – January 28, 2028 to December 31, 2033 • 1850 E. 25th Street, Vernon, CA – June 12, 2028 to December 31, 2033 The proposed Purchase Contract with ChargePoint is exempt from competitive bidding and competitive selection requirements pursuant to Vernon Municipal Code (VMC) Sections 3.32.110 (A)(2) and (B)(1), as the extended warranty coverage can only be provided by ChargePoint.
ChargePoint is the original equipment manufacturer of the city-owned DCFCs, and any maintenance required to the software is proprietary to ChargePoint.
Staff recommends City Council approve the proposed Purchase Contract with ChargePoint in the amount of $381,700 to extend the Assure Maintenance and the Enterprise Cloud Software subscription coverage period for an additional five years on the 20 city-owned DCFCs for a total of ten years; and recommends a contingency amount of ten percent (10%) or $38,170, for unforeseen expenses not included in the proposal, for a potential cost not-to-exceed $419,870.
The proposed Purchase Contract will have a five-year term. Pursuant to VMC Sections
3.32.220(B) and 3.32.110(B)(3), staff recommends the City Council deem the proposed Purchase Contract commercially unreasonable to rebid every three years provided ChargePoint is the proprietor for the DCFCs software system and upgrades and serves as the original equipment manufacturer for the existing chargers.
VPU plans to use Public Benefit funds, under California Assembly Bill 1890, to procure the extended 5-year coverage through the ChargePoint Assure Maintenance Plan and the Enterprise Cloud Software subscription. The Public Benefits charge is a state-mandated fee collected by the utility to fund energy efficiency, low-income assistance, renewable energy resources, and research, development and demonstration (RD&D) projects.
The proposal, including the expiration addendum, from ChargePoint has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $419,870. Sufficient funds are available in Electric Fund, Customer Programs Department, Public Benefit Rebate Program Account No. 055-050-595- 529702 for the current fiscal year.
Attachments
1. ChargePoint, Inc. - Quote – Q-416381-1
2. ChargePoint, Inc. - Master Services and Subscription Agreement
3. ChargePoint, Inc. – Terms and Conditions
4. Purchase Contract from July 12, 2022 Quote
5. Purchase Contract from December 8, 2022 Quote