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SR 11-28-2023 5F City Council Report City Council Meeting: November 28, 2023 Agenda Item: 5.F 1 of 7 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Office of Sustainability & the Environment Subject: Award Contract to GreenWealth for the Installation, Operation, and Maintenance of Designated Public Electric Vehicle Chargers Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities), Section 15302 (Replacement/Reconstruction), and Section 15303 (New Construction of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines. 2. Award RFP #372 to GreenWealth Energy Solutions, Inc. for the installation, operation, and maintenance of designated public Electric Vehicle (EV) chargers for the Public Works Department. 3. Authorize the City Manager to negotiate and execute an agreement with GreenWealth Energy Solutions, Inc. for five years with three two-year renewal options at no cost to the City. Summary Supporting the shift to transportation electrification is a critical component of the City of Santa Monica’s Climate Action & Adaptation Plan and EV Action Plan. The City has been a leader in installing public electric vehicle (EV) charging stations since the 1990s. As EV adoption increased, so has the demand for EV charging options and reliable infrastructure. The City has historically owned and operated its own EV chargers, but a shifting market and increase in EV charging service providers now allows the City to outsource the installation, operations, and maintenance of public chargers to a third- party at no cost to the City. This option saves staff time and money and improves the public charging experience for EV drivers. This staff report proposes contracting with a 5.F Packet Pg. 249 2 of 7 new vendor, GreenWealth Energy Solutions, to replace old chargers at three priority parking facilities and install and operate new chargers, as requested by the City. Discussion The State of California has a goal of reaching 5 million zero emission vehicles on the road by 2030. By 2035, 100% of new cars and light trucks sold in the state are required to be zero-emissions vehicles. Expanding public EV charging options is critical to supporting the rapidly growing EV adoption rates. City Council adopted the EV Action Plan in 2017 to support EV adoption through policies, programs, and infrastructure projects that expand EV charging access. Santa Monica currently has 178 standard level 2 chargers that are owned and operated by the City, and 28 DC fast chargers that are owned and operated by EVgo. • Level 2 chargers are the standard chargers found at most retail, workplace, and residential properties. They use a 240-volt outlet and typically provide about 14- 35 miles of range per hour of charging time depending on the charger configuration and the EV’s capacity to accept the charge. • DC fast chargers use a 480-volt outlet and charge at much faster rates, typically between 180-240 miles of range per hour depending on the charger configuration and vehicle capacity. The City entered into a contract with ChargePoint Inc. to purchase EV charging equipment in 2018. The City coordinates the installation, operations, and maintenance of these chargers and retains revenues earned at these stations. As the number of chargers and utilization rates have increased, so have maintenance costs and time to repair broken stations. Bringing on a third-party to manage and operate new stations would benefit both the City and EV drivers that count on EV chargers to be working. The City would save money on the capital costs of installing the equipment and would no longer have to pay for operating costs under the new model. GreenWealth would provide level 2 ChargePoint EV chargers, similar to the existing chargers found at other City parking facilities. 5.F Packet Pg. 250 3 of 7 GreenWealth would be responsible for replacing a minimum of 49 old charge ports at three parking structures (Structure 6, 9, and the Civic Structure), replacing or repairing additional chargers that break in the future at various City locations and installing chargers at new sites identified by the City in collaboration with the vendor, including three parking lots at the Santa Monica Airport. They would install chargers at mutually agreed upon City locations at no cost to the City, cover electricity costs, and retain the majority of charging revenue. GreenWealth would remit 20% of charging profits to the City after operational costs are met. The City may also elect to transfer ownership and operations of existing City-owned chargers for GreenWealth to maintain. GreenWealth would prioritize the replacement of existing chargers, many of which are broken, at the three sites listed below in Table 1. The stations at these locations are old, non-networked chargers (not ChargePoint stations) that are unable to collect revenue or provide usage data to monitor station status. 5.F Packet Pg. 251 4 of 7 Table 1 – Priority Sites – EV Charger Replacements Site Address Existing Chargers (ports) Future Chargers Parking Structure 6 1431 2nd St. 30 50-60 (Level 2) Parking Structure 9 1136 4th St. 4 4-10 (Level 2) Civic Center Parking Structure (first floor) 330 Olympic Dr. 15 14+ Level 2, 1 high- powered L2 Total 49 Parking Structure 6 was built with extra conduit to support future EV charging. GreenWealth would add up to 30 additional chargers at this location by using existing conduit and electrical capacity via load management. This would significantly increase charging options for the many local employees, residents, and visitors that utilize this structure. The vendor would replace other chargers as they break and add new stations at future EV charging sites, including a total of 24 new chargers at three Santa Monica Airport parking lots (2828 Donald Douglas Loop North, 3233 Donald Douglas Loop South, and 3200 Airport Ave). Drivers would be notified of pending construction at the parking structures in advance. EV charging user fees at GreenWealth-operated chargers would be based on regional user fees and electricity rates; proposed fees are around $0.35/kWh-$0.49/kWh on a time-of-use rate structure and are subject to change based on electricity rates set by the Clean Power Alliance and Southern California Edison. User fees are currently $0.30/kWh-$0.35/kWh at City-owned chargers. GreenWealth would review proposed fee structures with the City annually to ensure pricing is reasonable and calibrated to current market conditions and electricity rates. Electricity costs are anticipated to increase by approximately $16,000 per year at Parking Structure 6 and approximately $17,000 per year at Parking Structure 9 due to the planned additional EV chargers. Estimated annual costs for the three new Airport sites is $54,000. GreenWealth would reimburse the City for electricity costs incurred by their EV chargers at all locations. 5.F Packet Pg. 252 5 of 7 Vendor Selection Bidder Recommendation Best Qualified Person/Firm GreenWealth Energy Solutions, LLC Evaluation Criteria Work plans, experience, capacity/ability to perform services promptly, technical capabilities, financial/other resources, character/reputation, ability to provide future services as needed and price. Municipal Code SMMC 2.24.190 RFP Data Posted On Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 8/16/2023 City's Online Bidding Site Santa Monica Daily Press 63 9/26/2023 Justification to Award An evaluation committee comprised of members of the Office of Sustainability and the Environment and Architectural Services within the Public Works Department and the EV Subcommittee, a subcommittee of the Commission on Sustainability, evaluated the proposals. Based on their experience with similar projects, thorough project plan, profit- sharing proposal, and commitment to high-quality customer service, staff recommends GreenWealth Energy Solutions, Inc. as the best qualified firm to provide EV charging installation, operations, and maintenance services at select City sites. Environmental Review The contract is categorically exempt from CEQA pursuant to Sections 15301, Section 15302, and Section 15303 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 RFPs Received Blink Network, LLC Green Water and Power EV Tech Inc. True Upside Casco Contractors GreenWealth Energy Solutions, Inc. PowerFlex Systems, LLC EV Gateway OBE Networks 1, LLC Smart eMobility 5.F Packet Pg. 253 6 of 7 projects (Replacement/Reconstruction) which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced”. The contract will allow for the replacement and maintenance of existing EV chargers. In addition, the installation of new EV chargers is categorically exempt pursuant to Section 15303 (New Construction of Small Structures), which exempts construction and location of limited numbers of new, small facilities or structures including utility extensions and accessory structures/facilities such as EV chargers. Past Council Actions Meeting Date Description 07/25/17 (Attachment A) Original bid and award of agreement with ChargePoint, Inc. for EV charger procurement 11/14/17 (Attachment B) Council adopted EV Action Plan 03/06/18 (Attachment C) Modification to agreement with ChargePoint to expand procurement and services from fleet-only to public chargers 09/10/19 (Attachment D) Original bid and award of agreement with EVgo Services LLC for DC fast charging installation and services Financial Impacts and Budget Actions Staff seeks authority to enter into an agreement with Greenwealth Energy Solutions LLC to provide EV charging installation, operations, and maintenance at select City sites. The recommended action in this report is expected to have a positive impact to the General Fund and eventually the Airport Fund since the electricity costs will be reimbursed by GreenWealth. The reimbursement and profit-sharing revenues for the General Fund will be deposited in accounts 01500002.416300 and 01500002.416301, and for the Airport Fund in 57500001.416302 and 57500001.416303, respectively. The timing and amount of the revenues to be received and the electricity expenses to be incurred are indeterminate at this time. The department will track and monitor both the revenues and the expenditures closely. Any budget adjustments would be 5.F Packet Pg. 254 7 of 7 incorporated in the FY 2023-24 Year-End Budget and FY 2024-25 Exception-Based Budget, as needed. Prepared By: Ariana Vito, Sustainability Analyst Approved Forwarded to Council Attachments: A. Staff Report: Original ChargePoint Agreement (Web Link) B. EV Action Plan (Web Link) C. Staff Report: ChargePoint Agreement Modification (Web Link) D. Staff Report: EVgo Agreement (Web Link) E. Oaks Initiative Form - GreenWealth 5.F Packet Pg. 255 CITY OF SANTA MONICA OAKS INITI ATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public off icial from receiving, and a person or entity from conferring, specified personal benef its or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists f or persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This inf ormation must be updated and supplied every 12 months. 5.F.e Packet Pg. 256 Attachment: Oaks Initiative Form - GreenWealth (6071 : Award Contract to GreenWealth for EV Charger Services) CITY OF SANTA MONICA OAKS INITI ATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benef its include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ 5.F.e Packet Pg. 257 Attachment: Oaks Initiative Form - GreenWealth (6071 : Award Contract to GreenWealth for EV Charger Services)