TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a Master Services and Subscription Agreement, and any necessary amendments, with ChargePoint, Inc., of Campbell, CA, for operating 13 electric vehicle charging stations in City-owned City Place Parking Garage C, in an annual amount not to exceed $7,200. (District 1)
DISCUSSION
City Council approval is requested to enter into a Master Services and Subscription Agreement with ChargePoint, Inc., for warranty, operating, maintaining, and supporting ChargePoint electric vehicle (EV) chargers and related infrastructure.
On February 14, 2017, the City Council approved the City’s participation in Southern California Edison’s (SCE) Charge Ready Program (Program). Through the Program, SCE is providing free electric infrastructure required for the installation of new EV charging stations in City-owned City Place Parking Garage C. The City is responsible for purchasing and installing the EV charging stations.
The Public Works Department investigated procurement options for EV charging stations and found that ChargePoint is the only vendor that would provide charging stations that meet the City of Long Beach Charge Ready Program requirements and can be readily procured within the Program timelines. While there are other vendors who supply EV charging stations, they did not meet the City’s desired capabilities. ChargePoint is unique in that it maintains the largest network of EV charging stations in the country. Their broad network enables more electric vehicle owners to become familiar with the equipment, which translates to greater utilization of the stations and quicker return on investment. ChargePoint also offers a user-friendly phone application, allowing drivers to locate available charging stations, receive status of their charging sessions, and pay for usage. The EV charging stations are readily available for purchase from ChargePoint. The City was able to confirm the reasonableness of cost by receiving a second proposal from a different vendor for similar services, which was higher than the cost provided by ChargePoint.
The City will own the chargers and contract with ChargePoint for their operation and maintenance. ChargePoint will operate the chargers through its web-enabled network service, which requires entering into a Master Services and Subscription Agreement, and collect usage charges from users. ChargePoint will retain 10 percent of the fees collected and remit the remainder to the City. The City will have the ability to set charging rates to recover energy costs as well as the cost of operating and maintaining the units. The City will work with SCE to develop an appropriate rate structure for full cost recovery. ChargePoint operating services will be ongoing, but can be terminated at any time with 30-day notice.
This matter was reviewed by Deputy City Attorney Linda T. Vu on May 17, 2017 and Budget Analysis Officer Julissa Jose-Murray on May 31, 2017.
SUSTAINABILITY
Installing EV charging stations in publicly-owned parking facilities advances the City’s goals of reducing greenhouse emissions and facilitates the use of alternative fuel vehicles.
TIMING CONSIDERATIONS
City Council action is requested on June 20, 2017, to ensure the charging stations are operational expeditiously.
FISCAL IMPACT
The annual cost for network service and maintenance of the EV charging stations is estimated at $7,200, which will be offset by anticipated user revenues. The annual cost of the agreement is not currently budgeted and no appropriation is requested at this time. If necessary, the Public Works Department will return to the City Council to request a budget adjustment after the City begins collecting revenue pursuant to the Master Services and Subscription Agreement. All revenues generated from the Program will be deposited into the General Fund (GF) in the Public Works Department (PW). In addition, SCE will provide the City with a $5,200 rebate through the Program, which will be used to offset the cost of managing the project. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER