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HomeMy WebLinkAboutRatify - Grant Application - Citys Electric Charging StationContract No. C32260 CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: Ratification of Grant Application Submittal to MSRC for Upgrading the City's Electric Charging Station and Authorization to Request Proposals SUBMITTED BY: Frankie Riddle, Director of Special Programs APPLICANT: City of Palm Desert DATE: September 13, 2012 CONTENT: None Recommendation By Minute Motion, 1. Ratify staffs submittal of grant application to MSRC for Upgrading the City's Electric Charging Station at the Civic Center Park Complex, and 2. Authorize staff to publish Notice Inviting Bids. Discussion Originally AB2766 Funds were targeted for the Bus Shelter Improvement Program and CVAG's Regional Street Sweeping Program. However, recently staff was asked to review alternative projects that may qualify for AB2766 Funds such as soil stabilization, alternative fuel/energy, etc. Currently, the City has available $258,000 for identified project. Since the City has an active focus on energy and sustainability programs, staff thought that utilizing a portion of the existing funds and combining them with Mobile Source Air Pollution Reduction Review Committee (MSRC) grant funding would provide an opportunity to update the City's existing obsolete electric charging station. Moving forward with this viable project would promote and support the electric/alternative fuel vehicle movement thereby encouraging community members to utilize the charging station for its intended use. Current Use of Charging Station: The charging station is primarily being utilized as a parking structure; however, staff recently observed visitors utilizing the electric outlets at the charging station to charge their electric vehicle. (Note: I spoke with the couple and they indicated that they drive from 29 Palms, park here at the Civic Center Park, and walk to Westfield Shopping Town to shop and have lunch. While shopping, they leave their electric vehicle to charge at the station. However, they indicated that they need to STAFF REPORT RATIFICATION OF MSRC GRANT APPLICATION SUBMITTAL SEPTEMBER 13, 2012 PAGE 2 utilize two (2) of the 110 outlets instead of the charging units to recharge their vehicle because the charging units themselves are obsolete and do not fit the new electric vehicle plug-in system.) The electric vehicle industry has now standardized all Level 2 charging units for electric vehicles, as well as the plug-in system on the vehicles. This now allows uniformity within the industry regardless of which make or model of car purchased, thereby making it more appealing to purchase these vehicles. However, the standardization only pertains to the Level 2 charging units which are considered the slow charging units intended to recharge vehicles over an extended period of time (e.g., while at work, shopping, etc.). Depending on how much of a charge the vehicle requires, charging could take from one to eight hours. The Level 3 charging unit is considered the fast charge and can charge a vehicle within 15 — 30 minutes; however, this unit has not been standardized to date, but the industry continues to work toward standardization for this system as well. While this unit does not have a standard connection, it has been developed so that it can be upgraded to the standard connection when the time comes. At this time, staff plans to install a Level 3 unit that accommodates the majority of electric vehicles driven. Upgrading the Electric Charging Station infrastructure includes the removal of old, obsolete charging units and installation of upgraded Level 2 wall and pedestal mounted units and installation of one Level 3 that meets new industry standards. Upgrading of the electrical source (i.e., installation of a new electric panel box/pedestal and transformer) to the station will be required to accommodate the new Level 3 unit. Staff is currently working with Southern California Edison to prepare a Utility Plan that will address this need. In addition, part of the new electric vehicle movement and infrastructure improvements was the ability for participating businesses with charging units/stations to recoup the cost of electric use. This issue was thoroughly vetted and resolved with Southern California Edison. As a result, the newer charging units have the ability to charge a fee for use through a credit card system. Staff is not proposing to charge a fee at this time; however, if in the future a fee is required to recoup costs incurred by the City, the option is there. The total estimated project budget is $154,770 with a 50/50 grant match from MSRC in the amount of $77,385. Other costs associated with the project are related to the use of electricity that would fluctuate monthly, and, if the City opted to charge a fee, there would be a monthly cost to connect to the network system designed to accept credit cards and track use. The benefits of upgrading the facility are: • Facility infrastructure will be in -line with current industry standards • Station/units should be upgradable if changes occur in the future STAFF REPORT RATIFICATION OF MSRC GRANT APPLICATION SUBMITTAL SEPTEMBER 13, 2012 PAGE 3 • MSRC grant funds will cover 50% of project costs, unless the project goes over budget • May encourage and promote the use of electric vehicles • Provides a benefit to both residents and visitors • May encourage other cities and businesses to install electric charging stations/units • The City will continue to promote its focus of being energy and environmentally forward thinking The cons of upgrading the facility are: • Unknown usage by residents and visitors • Unknown increased cost to the City associated with electricity usage • Increased cost to the City associated with the network system, that is if the City opted to charge a fee Staff recommends that City Council ratify submittal of grant application to MSRC and authorize staff to publish a Notice Inviting Bids to move the project forward to the next step. This project will be brought back before City Council for award of contract and further consideration at that time. Fiscal Analysis There will be no negative impact to the City's General Fund. Funding for this project is a 50/50 match with MSRC grant funds and the City's AB2766 funds in the amount of $77,385. In addition, if project costs exceed budgeted amount, there is a total of $258,000 available in the AB2766 fund. Submitted By: Frankie Riddle, I f Special Progra CITY COUNCILv'tON APPROVED DENIED RECEIVED OTHER MEETING DATE�T� Revie AYES: (-.1.a2.. rni k NOES: ABSENT: Y7er l.�_ ABSTAIN: Ala7� Pau Gibson, Director of Finance �'fI��FII?I� BY: �� Orii ia.0 on File with City Approval: JohrVM. Wohlmuth, City Manager is Office