HomeMy WebLinkAbout2017-07-25; City Council; ; Public hearing and resolution amending the Master Fee Schedule to establish an Electric Vehicle Charging FeeSchedule (which is reviewed and approved annually) would provide the flexibility to ensure
alignment with future demand and cost of service.
Policy Background
The General Plan Sustainability Element references the city's 2011 greenhouse gas emissions
inventory in noting that "the transportation sector was the largest source of emissions,
generating approximately 273,745 metric tons of C02e, or 39 percent oftotal 2011 emissions.
Transportation sector emissions are the result of diesel and gasoline combustion in vehicles
traveling with trips either entirely within the boundaries of Carlsbad, or with one trip-end in the
city." General Plan Policy 9-P.2 states the city's intention to "continue efforts to decrease use of
energy and fossil fuel consumption in municipal operations, including transportation .... "
General Plan Policy 3-P.17, included in the General Plan Mobility Element, notes that the city
will "consider innovative design and program solutions to improve the mobility, efficiency,
connectivity, and safety of the transportation system ... [and that] innovative solutions include ...
electric and solar power energy transportation systems .... "
Carlsbad's Environmental Guiding Principles recognize the importance of promoting efficient
transportation and the use of low emission fuel sources, and articulate the city's support for
programs that optimize the use of low-emission alternative fuel vehicles.
The 2017 City Council Goals include an aspiration to become a leader in multimodal
transportation systems and creative approaches to moving people and goods through and
within Carlsbad. This goal is directly supported by the city's efforts to improve transportation
sustainability and the cost-effective provision of electric vehicle charging infrastructure.
The City of Carlsbad Climate Action Plan (CAP} includes greenhouse gas reduction measures,
including a measure to promote an increase in the amount of Zero-Emissions Vehicle miles
traveled from a projected 15 percent to 25 percent of total vehicle miles traveled by 2035. A
Zero-Emissions Vehicle (ZEV) is a vehicle that emits no tailpipe pollutants from the on board
source of power, such as electric vehicles, fuel cell vehicles, and plug-in hybrids (when
operating in electric mode).
And finally, the city's Sustainability Guiding Principles recognize that developing a sustainable
community is based on employing cost-effective programs.
Expert Recommendations
To deliver on the city's CAP commitment to prepare a community-wide EV charging station
siting plan, The City of Carlsbad Electric Vehicle Supply Equipment (EVCS) Infrastructure
Assessment (EVCS Siting Recommendations Report) was prepared by the Center for Sustainable
Energy in August 2015. That report evaluated the feasibility, and prioritized the suitability of
installing EV charging stations at 21 unique City of Carlsbad properties. The report included a
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variety of policy recommendations, including that the city consider the fundamental question
of whether it wants to implement a fee for EV charging, or offer it for free.
Plug-in San Diego is a grant-funded partnership between the Center for Sustainable Energy and
SAN DAG, which provides technical assistance in support of EV adoption and implementation.
The city consulted Plug-In San Diego in 2016, requesting their assistance in evaluating market
rates for EV charging in the San Diego region, and to solicit recommendations for pricing of EV
charging services. In August 2016, Plug-in SD provided the following recommendations
regarding the establishment of a Carlsbad EV Charging Fee:
1. Be low enough to encourage frequent use,
2. Fully cover operational costs,
3. At least partially address capital cost recovery,
4. Plan for flexibility in future pricing to match demand.
As demonstrated below, and based upon the city's experience with EV charging at Alga Norte
Community Park, an EV Charging Fee of $0.35/kWh is expected to meet the city's operational
costs and recover approximately 50% of capital costs over the life of the EV charging station
equipment.
As proposed, the fee encourages frequent use by being comparable to rates charged across the
region and state. To augment the market analysis prepared by Plug-in SD, city staff surveyed
fees charged by municipalities and other public entities for EV charging throughout California.
Our findings show that a broad range and variety of pricing schemes are being deployed across
the state with fees ranging from $0 to $2 per hour, and/or $0 to $0.59/kWh. Among the
surveyed agencies that do charge, per kWh fees range from $0.20/kWh to $0.59/kWh.
This point is further supported by comparing the fuel economy of gasoline driving versus
electric vehicle driving. Assuming an average gasoline powered car gets 25-mpg and pays $3.00
per gallon for fuel; a per mile cost of $0.12 is achieved. For the electric vehicle, assuming a
range of 4 miles per kWh and a fee of $0.35/kWh results in a per mile cost of $0.0875; a 27%
cost incentive over gasoline driving.
And finally, given the city's practice of reviewing and adopting its Master Fee Schedule on an
annual basis, adequate flexibility is ensured to allow future pricing to match demand, as well as
to respond to any fluctuations in operational and capital costs.
Recommended EV Charging Fee: $0.35 per kilowatt-hour {$0.35/kWh)
The ChargePoint EV charging station at Alga Norte Community Park can be programmed by
city staff to require the collection of user fees. Users would be required to activate a
ChargePoint membership account via the ChargePoint mobile app or by calling ChargePoint
driver support and linking to a credit card or PayPal account. Fee payment would be made
by the user to Charge Point at the time of use. The city would then receive a monthly
remittance from ChargePoint.
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Assessing a fee of $0.35/kWh for Electric Vehicle Charging would meet the city's operating
costs and would achieve recovery of approximately 50% of capital costs over the life of the
equipment. The recommended fee is comprised of the components outlined, as follows:
Cost of Electricity: $0.21/kWh
The electricity rate paid by the city for EV Charging at Alga Norte Community Park is
$0.21 per kWh (including electricity delivery and generation charges, taxes and fees).
Cost of Network Services & Cost of Warranty: $0.061/kWh
When the city purchased its EV charging station in 2015, three (3) years of
ChargePoint Network Services and a five (5) year Assure Warranty were included in
the purchase price. Network services allow charging station data and payments to
be transmitted to ChargePoint, and for station operations to be monitored and
managed remotely by city staff. The Assure Warranty guarantees 98% charging
station uptime and one calendar day response time for all service calls. Fees for
these bundled services were not specified in the purchase price; however, current
pricing totals $1,115 per year.
ChargePoint data for 2017 indicates a 6.4 percent usage increase at the Alga Norte
EV charging station. As such, approximately 18,000 kWh of EV charging is expected
to occur at Alga Norte Community Park in 2017. Dividing the annual cost of services
($1,115) by the projected number of kWh (18,000) results in a per kWh cost of
$0.061.
50% Capital Cost Recovery: $0.044/kWh
The City purchased its EV charging station for $19,900, installed. Subtracting the
value of the bundled services discussed above, the capital cost of the installation
was $15,910. Assuming a 10-year equipment lifespan, a per kWh fee of $0.044
would achieve a 50% cost recovery on the capital cost ($7,955).
Payment Processing Fee (10%): $0.035/kWh
When customer payments are required at a ChargePoint charging station, a 10-
percent Payment Processing Fee is applied to each charging session. In order to fully
recover the city's direct operating cost of $0.315 per kWh, $0.035 per kWh should
be added to cover the ChargePoint Payment Processing Fee.
Fiscal Analysis
No funding is being requested at this time. Assuming the projected 2017 usage of 18,000 kWh,
and operating costs of $0.315/kWh, it is anticipated that the city would recover annual costs
totaling approximately $5,670 if a $0.35/kWh fee were to be charged to the users of the city's
existing charging station at Alga Norte Community Park. Revenue generated would reimburse
the General Fund for expenditures made from the Parks and Recreation Operating Budget for
Alga Norte Community Park.
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Next Steps
Should the Council choose to establish the recommended EV Charging Fee, the fee would
become effective on September 1, 2017, concurrent with the 2017-18 Master Fee Schedule.
The city will proceed with installing the below-ground electrical infrastructure for EV charging
stations at the Oak Street Parking Lot and Stagecoach Park Parking Lot pursuant to the
approved contract with EVGO. Once complete, the city will proceed with the installation of
above-ground charging stations at those locations. If the stations are owned by the city, they
will be subject to the adopted EV Charging Fee. However, if a third party vendor is contracted to
furnish and operate the stations, user fees may be determined during contract negotiations
with the city.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the environment,
and therefore does not require environmental review.
Public Notification
Information regarding public notification of this item such as mailings, public hearing notices
posted in the newspaper and on the city website are available in the Office of the City Clerk.
Should the City Council decide to adopt the proposed fee, users of the city's EV charging station
and the general public will be provided with notice via on-site signage and on line
communications in advance of the fee's effective date.
Exhibits
l. A Resolution of the City Council of the City of Carlsbad, California, Amending the Master
Fee Schedule to Establish an Electric Vehicle Charging Fee
5 Page 143
Exhibit 1
RESOLUTION NO. 2017-146
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH AN ELECTRIC VEHICLE
CHARGING FEE.
WHEREAS, the City Council of the City of Carlsbad, California has the authority to establish
fees for City services; and
WHEREAS, from time-to-time said fees are reviewed and evaluated to maintain an adequate
fee structure recovering costs for City services; and
WHEREAS, the City Council has determined that collecting an Electric Vehicle Charging Fee of
$0.35 per kilowatt-hour ($0.35lkWh) would not exceed the cost of providing electric vehicle charging
services; and
WHEREAS, the Electric Vehicle Charging Fee is comprised of the following five components:
1. Cost of Electricity; 2. Cost of Network Services; 3. Cost of Warranty; 4. 50 percent of Capital Cost
Recovery; and 5. Payment Processing Fee; and
WHEREAS, the City Council has held a public hearing and allowed for public comment on the
establishment of said fee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
II
II
II
1. That the above recitations are true and correct.
2. That the Master Fee Schedule is hereby amended to establish an Electric Vehicle
Charging Fee in the amount of $0.35 per kilowatt-hour as shown in Attachment A.
3. That this fee shall become effective on September 1, 2017.
4. That the Electric Vehicle Charging Fee may be adjusted annually as part of the Master
Fee Schedule update, with the amount of the adjustment based on changes in one or
more of the components of the Electrical Vehicle Charging Fee (Cost of Electricity, Cost
of Network Services, Cost of Warranty, 50 percent of Capital Cost Recovery, and
Payment Processing Fee).
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 25th day of :!!!Jy, 2017, by the following vote, to wit:
AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
NOES: None.
ABSENT: None.
(SEAL)
Category
Misc. Fees
Fee Description
City of Carlsbad
Master Fee Schedule
Section 1. General City Service Fees
2017-18
Electric Vehicle Charging Fee
Attachment A
16-17 Fee 17-18 Fee
$0 $0.35/kWh
Page 146
Jason Haber
July 25, 2017
Electric Vehicle Charging Fee
Overview
•Hearing/Resolution -Amend Master Fee Schedule
•$0.35/kWh Electric Vehicle Charging Fee
•For Public Use of City-Owned Stations
•Policy Guidance / Expert Recommendations
•Fee Components
EV Charging at Alga Norte
ChargePoint Dashboard
Messages
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Financials
$306
Yot.l'..,e di1ponsed 1.46 MWh of elecmcuy over the la,t 30
days Recoup your costs by charging a fH Charg{,Po1n1 will
send you tho money
Eshmatad monthly cosl based on elatlncty pnu ot S0.21 ...
per kWh
Policy Guidance
•General Plan Sustainability Element
•General Plan Mobility Element
•CAP -increase Zero-Emissions VMT from 15%
to 25% of total by 2035
•Environmental Guiding Principles
•Sustainability Guiding Principles
Expert Recommendations
•Center for Sustainable Energy & Plug-In SD
–Low enough to encourage frequent use
–Fully cover operational costs
–At least partial capital cost recovery
–Flexibility in pricing to match demand
Fee Components
•Cost of Energy -$0.21/kWh
•Warranty & Network Svcs. -$0.061/kWh
•50% Capital Cost Recovery -$0.044/kWh
•Payment Processing Fee -$0.035/kWh
Total $0.35/kWh
EV Charging -Next Steps
•Notify Public / EV Charging Station Users
•Activate ChargePoint Payment Processing
–Reimbursement to the General Fund
•EVGO Contract
–Underground Infrastructure Installations
–Oak Street & Stagecoach Park Parking Lot
Stations
Staff Recommendation
–Conduct a public hearing and adopt
a resolution amending the Master
Fee Schedule to establish an
Electric Vehicle Charging Fee for
public use of city-owned electric
vehicle charging stations.
July 25, 2017
Electric Vehicle Charging Fee