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Electric Vehicle Charging StationsMEETING DATE: 03/03/15 ITEM NO: COUNCIL AGENDA REPORT DATE: FEBRUARY 19, 2015 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: ELECTRIC VEHICLE CHARGING STATIONS STAFF RECOMMENDS THAT THE TOWN COUNCIL CONSIDER: A. ADOPTING A RESOLUTION APPROVING THE ELECTRIC VEHICLE CHARGING STATION FEE SCHEDULE FOR FY 2015/16. B. ACCEPTING STAFF REPORT ON ELECTRIC VEHICLE CHARGING STATION INFRASTRUCTURE. RECOMMENDATION: Staff recommends that the Town Council consider: 1. After opening and closing the required public hearing, adopting a resolution approving the electric vehicle (EV) charging station fee schedule for FY 2015/16. 2. Accepting staff report on EV charging station infrastructure. BACKGROUND: The Town of Los Gatos General Plan, Sustainability Plan, and the Council Strategic Goals all include language that provides support for installing EV charging stations. Publicly accessible charging stations provide opportunities for electric vehicle charging and are essential elements to facilitate the growth of electric vehicle usage, which in turn provides significant benefit to the environment. Since 2011, Town owned charging stations contributed to removing approximately 37,000 kilograms of greenhouse gasses from the environment. Currently the Town has installed four charging stations with a total of six charging ports. The Town, in partnership with the Bay Area Climate Collaborative (BACC), is a co -recipient of a regional grant from the California Energy Commission to install four additional EV charging stations, each with two charging ports. These new stations will increase the availability of EV charging stations to meet the growing demand, providing a total of 14 Town owned charging ports. Data show that usage in Town has steadily increased since the installation of the first four EV charging stations in 2011. Since this time, fees for EV charging stations have not been re- evaluated to align with costs and utilization. For this reason, staff recommends that the Town Council consider a new fee structure that re -aligns EV charging station fees. PREPARED BY: Reviewed by: MATT MORLEY Director of Parks and Public Works Assistant Town Manager own Attorney IPFinance PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT. ELECTRIC VEHICLE CHARGING STATIONS FEBRUARY 19, 2015 DISCUSSION: Installation offour new stations The Town joined the BACC in a regional effort to gain grant funding for charging station infrastructure and successfully received a grant from the California Energy Commission for four charging stations. The locations for the new stations were driven by several factors, including established electrical infrastructure to support the units and general locations where demand exists. These stations will be available and ready for use in the early summer timeframe at the following locations: • Creekside Sports Park — electrical infrastructure was put in place during construction of the park making this an easy install location. • Parks and Public Works Parking Lot — Electrical service from the corporation yard and proximity to the trail parking make this a potential high use location. • Pageant Way Parking Lot — With the New Los Gatos Museum opening this year and the regular visitors to the Civic Center, this is a desirable location. • Parking Lot 4 — Demand for the existing Downtown stations remains very high. This location takes advantage of existing electrical infrastructure and helps to address that high demand. Utilization Utilization of Town charging stations has grown steadily, as the chart below demonstrates. Year Revenue Unique Drivers Kilowatt hours used 2012 $1,522 274 5,678 2013 $8,043 1,049 25,961 2014 $15,144 1,795 48,064 The increase in unique drivers is especially positive, as it demonstrates that the spaces are being utilized by many customers as opposed to a few regular customers. The addition of new stations will help with the demand in addition to addressing an unmet demand at other locations. Additional value may exist in balancing the length of any one charging session with the demand for use of the stations overall. The accepted standard for public stations is to provide a location for topping off of a vehicle charge, while de-emphasizing all day or serial charging that can take away the opportunity for others to charge their vehicle. This can be managed through the fee structure as outlined below. Electric Vehicle Charging Station Fee Structure The current fee structure for Los Gatos EV charging stations is $3.00 per plug in charge, with no per hour charge or time limits. This fee was established based on a scan of what other municipalities were charging at the time the fee was set. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ELECTRIC VEHICLE CHARGING STATIONS FEBRUARY 19, 2015 DISCUSSION (cont'd): Staff has evaluated other publicly accessible EV charging station fees, and has reviewed BACC resources to understand current best practices. West Valley cities, such as Campbell and Saratoga, have implemented an hourly charging fee, while the City of San Jose has implemented a per kilowatt hour fee, plus a one-time plug in access fee. Generally the fees vary significantly from location to location with demand playing a significant role in the amount of the fee. The highest identified fee in the area is at Santa Clara University where the fee is $2 per hour for the first four hours and $3 per hour thereafter. Fees of $1 per hour are common at many stations. In order to address the challenge of long charging sessions, the current recommended industry standard is to increase fees to a significantly higher level after a prescribed period of time. Staff's recommendation is to adjust fees per the table below. This balances the fee on short timeframe charging sessions, with longer timeframe charging paying a balanced share, and eventually a higher rate to encourage turnover. Note that the average charge duration on Town charging stations is between two and three hours. This fee structure would result in those average users paying about the same amount as in the current fee structure. Proposed EV Charging Station Fee $1.00 Access Fee $1.00/hour 1 to 4 hour charge $5.00/hour After 4 hours EV Charging Station Signs Since the installation of the first four EV charging stations, EV parking signs have become standardized in their design and format. The BACC issued a report on standard signage for EV charging stations that many municipalities in the Bay Area and throughout the state are now using. Town staff will install both pictographic and text signs to align with these standards. This will enable the Town's EV charging stations to be easily identifiable for residents and drivers visiting the Los Gatos area. ALTERNATIVE RECOMMENDATION: Alternatively, Council may consider not taking any action on the fees or setting the fees at some other rate. CONCLUSION: Staff recommends that the Town Council consider adopting a resolution approving the EV charging station fee schedule for FY 2015/16. In addition, staff recommends that the Town Council consider accepting the staff report on EV charging station infrastructure. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: ELECTRIC VEHICLE CHARGING STATIONS FEBRUARY 19, 2015 ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA and no further action is required. FISCAL IMPACT: Although the grant covers most of the costs of new stations, there will minor infrastructure costs related to the installation of the four new EV charging stations, in the amount of $5,355. Additionally, there will be a minor fiscal impact to the Streets' Program Operating Budget, approximately $250, for the creation and installation of 14 new EV charging station signs at various parking lots. There are sufficient funds available in this program's budget to absorb these costs. Ongoing service agreement costs of approximately $2700 will be covered through operating budget adjustments and will be offset by revenue from the charging stations. Attachment: 1. Proposed resolution approving the EV charging station fee schedule for FY 2015/16. RESOLUTION 2015- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE EV CHARGING STATION FEE SCHEDULE FOR FY 2015/16 WHEREAS, the Town of Los Gatos financial policies require that the Town establish and maintain all user charges and fees based on the cost of providing services; and WHEREAS, the last update of the Electric Vehicle Charging Station Fees was 2011; and WHEREAS, the new Electric Vehicle Charging Station Fees will be based on a utilization based fee structure, as outlined in the March 3, 2015 Council Report; and WHEREAS, Electric vehicle prohibitions states that a person shall not park or leave a standing vehicle in a stall or space designated pursuant to Section 22511 unless the vehicle is connected for electric charging; and NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California that the new Electric Charging Station Fees shall be effective July 1, 2015. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 3`d day of March, 2015, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTACHMENT 1 This Page Intentionally Left Blank