TITLE
Recommendation to authorize City Manager, or designee, to execute a contract with EVgo Services, LLC, of Los Angeles, CA, for the installation of infrastructure to prepare ten parking spaces for electric vehicle chargers at 2600 Temple Avenue (Fleet Services), at no cost to the City. (District 5)
DISCUSSION
City Council approval is requested to enter into a contract with EVgo Services, LLC (EVgo), for the installation of ten “Make-Ready Stubs” consisting of electrical infrastructure required to support one Level 2 Electric Vehicle Charger at each stub. The infrastructure is expected to be used for a combination of workplace charging and City vehicle charging.
This opportunity is a result of a settlement agreement involving EVgo’s parent company, NRG Energy, Inc. The agreement resolves all outstanding claims and disputes relating to litigation arising out of a long-term electricity contract entered into over a decade ago by a subsidiary of Dynegy, Inc., who then co-owned a portfolio of California power generating plants with NRG. NRG purchased the remaining interest in the facilities in 2006.
Stub installation will occur at the Fleet Services building (Attachment A). Chargers are not required and the use of functional charging stations is contingent upon the future authorized purchase of chargers and installation on the stubs. The City will not have any obligations after completion of the stubs, which will become the property of the City. EVgo will absorb expected costs of $29,416; if there are cost overruns and an agreement cannot be reached, EVgo will restore the property to its original condition. Construction is expected to be completed approximately eight weeks after the contract is in place. The agreement will contain an indemnity clause.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita and by Assistant Finance Director Lea Eriksen on July 20, 2017.
SUSTAINABILITY
The proposed infrastructure would encourage use of electric vehicles and should reduce vehicle emissions in furtherance of the City's sustainability goals.
TIMING CONSIDERATIONS
City Council action is requested on August 8, 2017, to ensure a contract is in place expeditiously to take advantage of this funding opportunity.
FISCAL IMPACT
EVgo will absorb 100 percent of the charging stub project cost and there is no cost to the City related to this contract. In the event the City wishes to convert the stubs into functional vehicle chargers, consideration for expenses related to the purchase and installation of chargers will be requested at that time. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER