HomeMy WebLinkAboutStaff Report 5.A 1/27/2014 Agentiai Item #5.11
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DATE: January 27,2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE—Director, Public Works & Utilities
Larry Zimmer, P.E.,—Capital Projects Division Manager
SUBJECT: Resolution Authorizing Continued Electric Vehicle Charging Stations Service and
Setting of User Fee Rate
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing continued
electric vehicle charging stations service and setting of a user fee.
BACKGROUND
As part of the 2009 American.Recovery and Reinvestment Act, the,U.S. Department of Energy
(DOE) released funding to establish development, demonstration, evaluation, and education
projects to accelerate the marketiniroduction and penetration of electric vehicles. The City of
Petaluma was able to take advantage of the funding opportunity, and had charging stations
installed at two locations under two separate grants by two separate companies. With only
minimal staff costs,the grant paid for two charging stations (level 1 and level 2),which operate
at standard household voltages (110 v.and 220 v), at the Keller Street Garage and one level 3
"fast charge" charger at.the Visitors Center. As part of the grant, the City entered into two
separate agreements, one with Charge Point for the Keller garage chargers and one with
Ecotality for the charger at the Visitor center. Both agreements provided service at no cost to the
City starting May 2013, ending on December 31, 2013.
Charge Point provides internet based software where a variety of reports can be generated. Staff
downloaded information for the first six months of charger use to determine that the total
kilowatt hours used during the period was 3526 kilowatt-hours (or 3.5 mega-watt hours). The
average energy cost per day was approximately $4.00 for both chargers, though the usage started
low and steadily increased over the initial period
The Keller Street Garage charger had been used at least once each day with an average use of
four different vehicles each day over a six month reporting period. During that same period
there were a total of 500 charging sessions: 30% of sessions were 30 minutes to one hour, 30%
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were one to two hours in duration,,25%o were between,2 hours and four hours.in length, (four
hours isthe legal parking limit), and-the remaining-1-5% ofusers charged their vehicles over four
hours in length and up to 14 hours in.a few instances.
DISCUSSION
After December 2013, the chargers became the property of the City and we are now responsible
for service fees and the maintenance of the chargers. Although the Master Service Subscription
Agreement,remains in effect, to continue operation of theKeller:garage charging stations the
City must pay subscription fees to Charge Point. Ecotality has not yet provided an estimate of
ongoing subscription or maintenance costs and this contract is further complicated by their
Chapter 11 Bankruptcy filing. Staff is uncertain at this time how this will impact the future use
of the Visitors Center charging;station. Direction provided by Council today will be
implemented at the Keller Street Garage charging stations as soomas practical, and will be
implemented at the Visitor Center charging station as soon as a new provider makes fees and
subscription requirements available.
Staff recommends that the City continues to provide electrical vehicle charging service to the
public, and that the City Council take action to set a fee with the intention of operating the
program on a cost neutral basis. Alternatively, Council may also direct staff to continue EV
service without any cost toithe.end User, or direct.staffito Cease service to all three charging
stations. Electrical costs for the Keller Street Garage and Petaluma Depot sites are currently paid
by General Fund-Public Facilities,(1100-16300).
To be able to continue use of the existing charging stations at the Keller Street Garage, the City
will need to pay subscription fees to the service provider. The annual fee is $230 per station,
with a discount for an extended subscription up to five years. Staff is recommending the $580
three-year subscription, which can be cancelled with notice'atany time with a prorated refund.
Due to the bankruptcy of Ecotality,,the Department of Energy has extended the grant period for
the charging station at the.Depot for an additional four months.
The chargers in the Keller Street Garage have been in place since May. The most frequently
used charger has cost the City lessthan $500 in electrical costs over a six month period, although
usage is increasing. Staff estimates that the electrical costs plus the subscription fee with the
expected staff time for all three charging stations will result in cost to the City of no more than
$6,000 per,year. This cost estimate is based on a slightly higher than currentusage and staff time
to manage the program. Any rnajor-problems or repairs to thetharging•station would result in
higher costs. The-existing Master Services Subscription Agreement with Charge Point remains
in effect and allows for the-setting.or changing of a charging fee at any time If the City elects to
set a fee to charge, it would,be-processed by the service provider, Charge Point and remitted to
the City minus a 10%•administrative fee.: Staff projects that a fee for using the charging stations
of$1.00 per hour with a $2.00 minimum would pay for the service and recommends that Council
establish this fee schedule.
Staff has polled other Sonoma County agencies regarding if and what fee they will assess for
vehicle charging. The Cities of Sonoma and Cotati are not currently assessing a fee and have no
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intention to do so in the future. Sonoma,County is,not"currently charging, but expects to:set,a fee
soon: Santa Rosa's current fee is $1.00;per hour with a$2:00 minimum,and is not expected to
change soon. Rohnert Park is charging $1.25'per hour,and will maintain that fee.
The local privately owned chargers have similar fees. The chargers near Target are free for the
first two hours then,.$2/hour; Casa Grande are $1.20/hour with a-$3.00 minimum, Enriquiez
Winery does not charge at all, and the Nissan dealership charges $5.00 to members and $8.00 to
non-members for a full charge.
The proposed action meets Council Goal: "Plan for the future -Healthy Development,
Sustainability, and Economic Development".
FINANCIAL IMPACTS
Staff believes that the proposed fee schedule would allow the three charging stations to remain in
operation and be "cost neutral" to the City. Any funds collected in excess of actual costs could
be set aside for operational maintenance costs and to add charging stations in the future. Cost for
repairs, electric bill and subscriptions would come from the General Fund operating budget until
such time that the collected fees could cover the expenses.
If Council chooses to continue.the service for free, the General Fund is projected to absorb the
approximate$6;000 per year expense as no corresponding budget reductions have been
identified to balance the added expense.
ATTACHMENTS
1. Resolution
RESOLUTION AUTHORIZING CONTINUED ELECTRIC VEHICLE CHARGING
STATIONS SERVICE,AND SETTING OF A USER FEE RATE
WHEREAS, encouraging the use of electric and plug-in hybrid vehicles'through
installation of charging stations is consistent with the City goals to reduce greenhouse gas
emissions; and
WHEREAS, a County of Sonoma grant program, referred to as Charge Point America,
resulted in the installation of two electric vehicle charging stations at the Keller Street Garage;
and
WHEREAS,Ecotality, through a grant from the Department of Energy (DOE) for the
installation of electric vehicle charging stations placed an electric vehicle charging station at the
Petaluma Visitors Center; and
WHEREAS, since the initial grant term for both pilot programs expired on December
31, 2013, the City has the option to continue the operation of the electric vehicle charging
stations and to set usage fees to recoup the cost of service, maintenance and electricity consumed
by electric vehicle charging; and
WHEREAS, Staff has estimated that a minimal fee to use the charging stations could
off-set the additional expenses to'the City to provide the service and has confirmed that other
agencies,,charge for the service.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City hereby:
1. Approves the continued use of all three electric vehicle charging stations.
2. Establishes$1.00 per hour with a $2.00 minimum,fee for all electric vehicle charging
stations owned by the City of Petaluma with the intent for the electric vehicle program to
be cost neutral to the City's General Fund.
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3. Directs that the fees collected will be separately accounted for and used to pay for any
costs associated with providing and maintaining existing and future electric vehicle
charging stations.
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