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Agenda Item 26.

City Council Meeting

Meeting Date:	11/15/2022
FROM:	Bill Gallardo

Subject:

Authorize Mayor to Execute Electric Vehicle Charging Station License Agreement with Carbon Solutions Group LLC

RECOMMENDATION

Execute License Agreement.

BACKGROUND/DISCUSSION

During the Study Session on July 19, 2022, the City Council directed staff to work with Carbon Solutions Group LLC (CSG) on a new agreement. The City Council requested that the additional renewable extensions be shortened from a five (5) year term to a one (1) year term, with up to three (3) extensions only, and that a revenue sharing feature be added in the agreement. The new agreement contains both of these items. With the variable revenue sharing feature that has been added to this agreement, the City will generate $8,775 over the next five years based on an average utilization of 44% for each charging station. CSG will charge the electric vehicle (EV) user affordable charging rates based on the fair market value taking into consideration the seasonal costs of the electrical rates. This agreement also includes reimbursing the City quarterly for all electricity costs for all the charging sessions.

City staff worked with Clipper Creek to install three Level II EV chargers in the parking structure at the Civic & Cultural Center, which replaced several first generation non-universal EV chargers that were only able to charge a specific vehicle. As EV car manufacturing technology has advanced, a universal charging plug was incorporated into all the new vehicles being built. The Clipper Creek manufacturer offered this new technology, which allowed the City to continue to provide public EV charging at the Civic & Cultural Center. However, when the City installed the Clipper Creek units, technology was limited and there wasn't the ability to charge EV users for their charging sessions. It is a common practice to charge EV users for their usage throughout Southern California.

Over the past few years, there has been a significant increase in EV users on the road. With the increase in EV users, chargers located at City Hall have been used more frequently. Now that it has become common practice to charge the EV user for their charging session, staff is recommending removing the three (3) free chargers and replacing them with three (3) Level 2 ChargePoint CT4000 units. These new EV chargers would be managed by Carbon Solutions Group LLC (CSG). Staff is recommending CSG because there were no out-of-pocket costs from the City to upgrade these EV chargers. GSC would be responsible for all the installation costs to upgrade the chargers and manage the charger interface to charge the EV user for their charging session.

To extend the agreement, both parties would have to agree to extend the additional terms mutually. If either party does not extend the term, then both parties would need to discuss either the removal of the stations or for the units to be sold to the City for fair market value at the time of termination. The City Attorney has reviewed the agreement and is amenable to the terms.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their November 8, 2022 meeting and recommended for Council approval.

FISCAL IMPACT/SUMMARY

CSG will be responsible for reimbursing the City for electricity consumed quarterly at a rate equivalent to the City's commodity cost of electricity. CSG will also pay the City the variable revenue share annually based on the chargers' utilization. Approval of this agreement will result in cost savings to the General Fund for electricity costs.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Brian M. Ingallinera, Environmental Services Coordinator
Michael Ho, Public Works Director / City Engineer

Attachments
CSG Agreement