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SR 09-10-2019 3J City Council Report City Council Meeting: September 10, 2019 Agenda Item: 3.J 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Award Request for Proposal #224 and enter into Agreement with EVgo Services LLC for Public Direct Current Fast Charging Stations Recommended Action Staff recommends that the City Council: 1. Award RFP# 224 to EVgo Services LLC, a California-based company, to provide DC fast charging services in Santa Monica; 2. Authorize the City Manager to negotiate and execute an agreement with EVgo Services LLC Corporation to install, own, and operate DC fast charging stations on City-owned properties. Summary At the core of the City’s Framework Priority to be a model for curbing climate change, the City’s adopted Climate Action and Adaptation Plan calls for Santa Monica to achieve carbon neutrality (zero carbon dioxide emissions) by 2050 or sooner. The shift to electric vehicles contribute to the City’s ability to achieve this goal. The Electric Vehicle Action Plan (EV Action Plan) calls for the installation of a minimum of 10 public direct current (DC) fast chargers and aims to increase the total number of EV charging stations citywide to 300 by the end of 2020. Santa Monica residents have been early adopters of electric vehicles and strong advocates of expanding the City’s EV charging infrastructure. As the number of EVs in Santa Monica continues to rise, the public’s demand for fast-charging options increases. Providing fast-charging services is an important infrastructure investment that will enable more drivers to switch to electric vehicles, which is a key strategy to reducing greenhouse gas emissions as outlined in the Climate Action and Adaptation Plan. 2 of 6 Staff recommends authorizing an agreement with EVgo Services LLC for the installation, ownership, and operation of DC fast chargers on City property. Although the City operates conventional chargers at no cost to users, fast chargers represent an important advance in practicality for users who will pay a per-minute use fee to use these fast charging stations. EVgo Services will install and maintain these charging stations at no cost to the City and will reimburse the City with a licensing fee of approximately $165 per space per month to support further expansion of the City’s charging network. Discussion DC fast chargers, also known as Level 3 chargers, charge electric vehicles at a significantly faster rate of 480 volts compared to standard Level 2 chargers, which supply power at 240 volts. DC fast chargers can charge a vehicle in 30 to 60 minu tes compared to Level 2 chargers, which typically charge a vehicle in four to eight hours depending on the size of the vehicle battery and the charge rate (kW). Installing DC fast chargers in Santa Monica would serve residents of multi-family buildings who do not have home charging access, employees, visitors, and ride share drivers who have chosen to go electric and require faster charging services. Currently, the City owns and operates 143 public, Level 2 charging ports and only one DC fast charger located at the Civic Center Parking Structure. Due to the necessary extensive electrical infrastructure and investment, installing DC fast chargers is more expensive and complex than installing Level 2 chargers. Allowing an experienced third - party Electric Vehicle Service Provider (EVSP) to handle all DC fast-charging costs and operations is more economical and efficient than the City managing and financing this process at this point in time. EVgo would work with the City to install fast chargers at the agreed-upon sites and identify additional sites in the future. EVgo would pay for the installation, equipment, and all operating costs, including utilities and maintenance. EVgo would retain the revenues from user fees and remit a licensing fee to the City for the use of the public space to 3 of 6 operate the charging stations. DC fast charging stations would have a maximum parking time limit (likely 90 minutes) to ensure user turnover. Due to anticipated new market entrants and declining production costs of chargi ng equipment in the next few years, the initial contract term would likely be 3 to 5 years with options to extend at the City’s discretion. EVgo’s user fees are set by state and/or regional entities based on electricity costs and are offered in two tiers: Pay As You Go or Monthly Membership. These fees would apply only to DC fast-charging stations, not to the City-owned Level 2 stations that are currently free of charge. This City has not yet implemented a policy on City-issued charging fees for cost-recovery at Level 2 stations. EVgo User Fees – Los Angeles Region Pay As You Go Membership Monthly Fee $0 $7.99 Charging Fee $0.27/min $0.23/min Session Length Up to 45 min Up to 60 min from 8pm-6am Up to 45 min from 6am-8pm Past Council Actions 11/14/17 (Attachment A) Council adopted the Electric Vehicle Action Plan 05/28/2019 (Attachment B) Council adopted the Climate Action & Adaptation Plan Vendor Selection Bidder Recommendation Best Qualified Person/Firm EVgo Services LLC Evaluation Criteria Previous experience, references, work plans, project team, proposed fees to the City, technical and site proposals, flexibility and creativity, and compliance with City specifications. Municipal Code SMMC 2.24.190 RFPs Received EVgo Services LLC Zeco Systems Inc. dba Greenlots Paseki Strategies Corporation Charge Technologies Inc. 4 of 6 RFP Data Posted On Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 04/23/2019 City's Online Bidding Site Santa Monica Daily Press 18 04/23/2019 Justification to Award The evaluation committee was composed of a representative from the EV Subcommittee of the Task Force on the Environment, and staff from the departments of Public Works, Planning and Community Development, and Housing and Economic Development. The committee unanimously selected EVgo as the recommended vendor for the following reasons: • The vendor has the most relevant experience and is the largest fast-charging network provider in the country. It operates more than 550 fast chargers in California and has partnerships with over 20 cities and organizations throughout the state. It is also the only network with experience operating fast chargers in the public-right-of- way (e.g. the proposed 9th Street and Colorado Ave location), • EVgo was the only proposer to offer a fee to the City for the use of the City’s parking facilities. (The proposed fee was $150 per parking stall per month.) • EVgo would offer a unique FastStart option at the Civic location to provide a temporary charging station while permitting and construction are under way. This is a self-contained unit (no construction required) offered at no cost to the City during site development. • EVgo has the highest customer ratings on PlugShare, a website and mobile app tha t aggregates customer feedback on charging stations and providers. Based on this criteria and criteria in SMMC 2.24.190, staff recommends EVgo Services LLC (EVgo) as the best qualified firm to provide DC fast charging equipment and services. The RFP included DC fast-charging locations reviewed and suggested by City staff and the EV Subcommittee of the Task Force on the Environment, and invited proposers to recommend additional locations. The suggested locations were: Civic Center Parking 5 of 6 Lot, Parking Structure 6, Lot 29, Lot 12, Beach Lot 4 North, Beach Lot North, and 9 th Street at Colorado Avenue (public right-of-way). These sites were selected based on convenient user access and space availability for the charging equipment and transformers. EVgo proposed the following initial sites to install fast chargers: Location Address Number of DCFCs Civic Center Parking Lot 1855 Main St. Up to 12 9th Street and Colorado Avenue (public right-of-way) 1547 9th St. 4 Lot 29 1638 5th St. 4 Parking Structure 8 1571 2nd St. 4 Total 24 *Station locations and numbers are subject to change. Financial Impacts and Budget Actions EVgo would own and operate the DC fast-charging stations on City-owned property at no cost to the City. EVgo would pay the City for use of the City’s parking facilities and public right-of-way at a rate to be determined during the negotiation process. If 24 charging stations are installed, a rate of $165 per parking space per month would generate $47,520 in revenue per year. Per SMMC 6.70.020, revenues would be subject to a 10% Parking Facility Tax. A revenue budget would be established during the FY 2019-20 mid-year budget, after staff finalizes the licensing fee negotiations. Staff are still evaluating the implementation of a cost recovery system for Level 2 stations to help fund operating costs and support the expansion of the EV charging network. Cost recovery options include a user fee (e.g. fee per kWh) and/or overstay charge for drivers that exceed their time limits at charging st ations. 6 of 6 Prepared By: Ariana Vito, Sustainability Analyst Approved Forwarded to Council Attachments: A. Nov 14, 2017 Staff Report - Electric Vehicle Action Plan (Web Link) B. May 28, 2019 Staff Report - Climate Action and Adaptation Plan (Web Link) C. EVgo Oaks Initiative Disclosure Form REFERENCE: Agreement No. 10936 (CCS)