Title
Air Quality Management District (AQMD) recommending the Board, acting as the AQMD Board of Directors:
1) Award Bid 23-918-053 for the replacement of electric vehicle chargers at County facilities and park and ride locations to True Upside Consulting LLC;
2) Authorize the Air Pollution Control Officer (APCO) to execute a funding agreement in the amount of $235,950 for the five year term, contingent upon approval by County Counsel and Risk Management;
3) Authorize the APCO to execute any necessary amendments to the funding agreement, excluding term extensions and increases to the not-to-exceed amount, contingent upon approval by County Counsel and Risk Management;
4) Reject the Bid Protest submitted by TurnonGreen, Inc. for Bid 23-918-053;
5) Establish an initial fee for the use of the new chargers at $0.33 per kilowatt hour; and
6) Direct staff to reevaluate the fee each year and recommend updated fees in the proposed fiscal year AQMD budgets starting with the FY2025/26 budget. (Cont. 12/12/2023, Item 24)
FUNDING: California Department of Motor Vehicles AB 2766 Subvention Funds.
Body
DISCUSSION/BACKGROUND
There are fifty-five (55) Electric Vehicle (EV) chargers at eighteen (18) County facilities and park and ride locations that are accessible to the public. AQMD has acquired funding for and worked with Facilities staff and private contractors to install these chargers and many others throughout El Dorado County (EDC). To incentivize EV usage in EDC, the electricity costs have been paid by AQMD with AB 2766 motor vehicle emission reduction funding. EV adoption is becoming much more prevalent. Of the new vehicles being sold in California, over 25% are now EVs. Several of the EDC EV chargers are now being very heavily used. AQMD staff believes this incentive is no longer necessary and recommend replacing the free for use EV chargers with chargers capable of collecting a fee from the user. It is expected that collecting a fee will increase the availability of the chargers.
The Procurement and Contracts Division issued Invitation to Bid No. 23-918-053 Electric Vehicle Supply Equipment Replacement, Maintenance, Billing and Customer Service on July 14, 2023. Bids were received from 14 vendors. The Procurement and Contracts team evaluated and ranked the Bids according to the pricing and qualifications criteria specified in Bid No. 23-918-053. The Bid from True Upside Consulting LLC (TUC) received the highest ranking.
A bid protest was submitted by TurnOnGreen Inc. on September 21, 2023. Procurement and Contracts Division staff re-evaluated the scoring of applications. However, the bid from TUC still received the highest ranking and the recommendation to award the bid to TUC stands.
Once the funding agreement is executed, TUC will begin replacing the EV chargers starting with those that are most heavily used. Once installed, TUC will provide billing network service, 24 hour customer service and warranty service for five years. At the end of the 5-year term, subsequent customer service will be solicited.
AQMD staff performed a cost study analysis based on the FY 2022-23 electricity cost, usage, the per kWh network fee, and 5-year and 10-year equipment cost amortizations. Using a 5-year amortization, the proposed charger cost would be $0.48/kWh. Using a 10-year amortization, the proposed charger cost would be $0.33/kWh. Costs to use other public chargers in EDC range from $0.22/kWh to $0.50/kwh. The average electricity cost for residential PG&E customers in September 2023 was $0.38/kWh.
Staff recommends using the 10-year amortization calculation and setting the initial cost at $0.33/kWh, conducting additional cost studies each year with updated usage and electricity cost information, and presenting the results to the Board for consideration with the proposed budgets, starting with the FY2025-26 budget. Loop (the EV network provider) charges a $1.00 charge initiation fee to the user per charging session, but does offer a $15/month subscription for unlimited charging sessions with no per charge fee.
ALTERNATIVES
The Board could choose not to award this project and direct staff to pursue other opportunities to utilize these motor vehicle emission reduction funds to improve air quality. The Board could also choose to continue providing the electricity for free, provide electricity for a certain number of kWh for free (such as the initial 5 or 10 kWh) or set the per kWh usage cost at a different amount.
PRIOR BOARD ACTION
On 8/17/99, the Board approved an agreement with the Sacramento Municipal Utilities District (SMUD) to install two EV chargers at Building C.
On 9/14/99, the Board approved an agreement with SMUD to install six EV chargers at the El Dorado Hills Park and Ride.
On 1/13/15, Legistar # 14-1110, the Board approved the acceptance of a grant from the Indian Gaming Local Community Benefit Committee that funded 10 EV chargers at the Red Hawk Casino.
On 12/15/15, Legistar #14-1084, the Board approved the acceptance of a grant from the California Energy Commission that funded 11 EV chargers at County Building B and four EV chargers at the South Lake Tahoe Government Center.
In the Board adopted AQMD budgets for the last nine fiscal years, funding has been allocated for the purchase and installation of EV chargers at County facilities.
On 12/12/23, this item was continued off calendar in order to clarify final contract terms.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Facilities
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
For the project period FYs 2023-24 and 2024-25 sufficient funding is available. Funding has been allocated in AQMD's FY 2023-24 Budget. If not completed during FY 2023-24, funding to complete the project will be allocated in AQMD's proposed FY 2024-25 Budget. By charging for the electricity there will be a cost savings in the use of AB 2766 funds. Use of these funds for electricity costs in FY 2022-23 was $29,305. The charges have been increasing every year. Savings resulting from the new chargers will be to use for more cost effective motor vehicle emission reduction projects including the 2766 grants (such as shuttles), Drive Clean (zero emission vehicle incentive), CHARGE (residential EVSE incentive), and the EV charger grants for businesses and other agencies.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Forward a signed copy of the Minute Order to AQMD.
STRATEGIC PLAN COMPONENT
This project will improve community health by facilitating the use of zero emission vehicles.
CONTACT
Rania Serieh, Interim APCO