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HomeMy WebLinkAboutcocc_council_mtg_packet_20230920_item-11_correctedCITY OF CAPE CANAVERAL CITY COUNCIL MEETING • WEDNESDAY, SEPTEMBER 20, 2023 AGENDA ITEM SUMMARY • ITEM # 11 CORRECTED Subject: Resolution No. 2023-21; establishing rates and charges and other terms and conditions for public EV charging stations operated by the City on City owned or controlled property; providing for the repeal of prior inconsistent resolutions, severability and an effective date. Department: Community and Economic Development Department — Resilience Division Summary: At the July 18, 2023, Regular City Council Meeting, Council unanimously approved a City -owned electric vehicle (EV) charging station upgrade project proposal. This project will see each of the City's six dual plug current free -to -use non -networked Level-2 ClipperCreek EV charging stations be replaced with six dual plug networked NovaCHARGE NC8000 series Level-2 EV charging stations requiring user payment beginning in FY 23/24. One charging station will be located at Manatee Sanctuary Park, one at Banana River Park, one at the City of Cape Canaveral Community Center (C5), and three at Cape Canaveral City Hall. The Cape Canaveral Public Library's existing charging station will be removed and its services transferred over to the C5. Existing ClipperCreek charging stations will be repurposed to support the charging needs of all - electric municipal fleet vehicles. They will be re -installed by Staff — as needed — at the Water Reclamation Facility, which serves as the City's primary fleet holding/maintenance area, as all - electric fleet operations expand. Local Market Analysis City Staff conducted a market analysis specific to Level-2 EV charging station rate structures within the region, and was able to identify several municipalities that also own and operate their own Level-2 public charging stations. Level-3, or DC Fast Chargers, were not analyzed because these utilize much more electricity in order to recharge a vehicle from 0% to near 100% in only tens of minutes. The services provided by a Level-3 charging station are not comparable to those that will be provided by the City's Level-2 stations (which have a slower rate of recharge), and as such their rate structures are generally set at a higher price. The total list of municipalities identified include: 1. City of Cocoa Beach, Florida 2. City of Satellite Beach, Florida 3. City of Rockledge, Florida 4. City of Melbourne, Florida 5. City of Orlando, Florida 6. City of Coral Gables, Florida 7. City of Oldsmar, Florida 8. Town of Oakland, Florida Payment rates were mostly structured on a per kilowatt hour (kWh) basis for each city, with one city found to be utilizing a rate structure based solely on a pay -by -hour parking fee. Some incorporated a combination of both kWh and parking fee payments. Payment rates — broken down by municipality — are shown below: City of Cape Canaveral City Council Meeting • Wednesday, September 20, 2023 Agenda Item # 11 Page 2 of 4 1. City of Cocoa Beach, Florida (1 public EV charging station): $0.20 per kWh, plus $2.50 per hour parking fee 2. City of Satellite Beach, Florida (2 public EV charging stations): Free to use 3. City of Rockledge, Florida (2 public EV charging stations): $1.95 per hour and $0.15 per minute after charging stops 4. City of Melbourne, Florida (1 public EV charging station): $0.13 per kWh 5. City of Orlando, Florida (100 public EV charging stations): $0.12 per kWh 6. City of Coral Gables, Florida (30 public EV charging stations): $0.04 per minute ($2.40 per hour) 7. City of Oldsmar, Florida (3 public EV charging stations): $0.15 per kWh, plus a $0.50 connection fee 8. Town of Oakland, Florida: (1 public EV charging station): $0.15 per kWh The payment rates listed above apply to all users with no differential between residents and nonresidents. This analysis indicates that the average kWh rate structure for the municipalities that were reviewed was between $0.12 and $0.20. The City of Cape Canaveral's new networked stations will have the capability to charge for parking in addition to kWh dispensed. However, at this time, Staff is not recommending an additional parking fee be applied since no other City parking spaces require payment to utilize. Proposed Program Rate Structure Staff is recommending a resident vs non-resident rate structure for charging station usage (Attachment 2). This rate structure differential is authorized under State law, because, as described above, rates, terms, and conditions of EV charging services are not subject to regulation at this time. A potential rate structure, with a residency -based fee differential, is presented below. Fees collected will be deposited to the City's general fund revenue account and thereby used to offset costs for electricity provided at the stations as well as maintenance needs of the stations and related infrastructure. The proposed rate structure will include an increased rate after the first four hours to encourage vehicle turnover at each station. • Resident rates: - $0.15 per kWh for the first 4 hours of charging - $0.20 per kWh after the first 4 hours of charging • Nonresident rates: - $0.20 per kWh for the first 4 hours of charging - $0.25 per kWh after the first 4 hours of charging In addition, NovaCHARGE, like all cloud -based, networked EV charging service providers across the industry, will charge a standard transaction fee of $0.50, plus 5% of the overall transaction cost for each charging session. This transaction fee covers costs incurred by NovaCHARGE, including their 24/7 driver support line, fees assessed by NovaCHARGE's payment processing company, company employees and overhead. To increase turnover and reduce idling, all vehicles that remain plugged in after their charge is complete will incur an "idle fee" of $0.15 per minute until the recharging plug is removed. This would mirror the City of Rockledge's EV charging station idle fee. All City charging stations will be programmed to cease operations at 9:30 pm every evening, and resume operations at 6:30 am City of Cape Canaveral City Council Meeting • Wednesday, September 20, 2023 Agenda Item # 11 Page 3 of 4 every morning. Per City Code, it is prohibited to remain parked overnight at a City park (i.e., Manatee Sanctuary Park, Banana River Park, and Canaveral City Park where the C5 is located). While not prohibited by Code, the City does discourage overnight parking at City Hall to reduce the chances of loitering and risks during off -hours. Users will need to download NovaCHARGE's app — called ChargeUp — to utilize each of the City's public charging stations and create an account that will allow for transactions to occur. The app will alert users to how much money has been dispensed during their charging session and when charging is complete; as well as when time -based rate increases begin. EVs themselves also alert drivers to their charging status in real-time and when their charge is complete. To receive the discounted resident charging rate, residents will need to send City Staff their preferred email address with proof of residency (i.e., a driver's license, a utility bill, etc.) so it can be uploaded into each charging station's recognition software so the system will know to offer them the resident rate. This rate will only work for City -owned NovaCHARGE stations operated by the City on municipal property. No other NovaCHARGE charge stations, or any other charging station, are affected by the City's rate/payment structure. The system's email bank will be purged at the start of each fiscal year to ensure that resident accounts accurately reflect residency status. Residents will need to resubmit their preferred email address with proof of residency to keep their resident discount active. In the prelude to a severe tropical storm or hurricane event and/or an evacuation order is given to leave the barrier island, the proposed Resolution authorizes the City Manager to reduce charging station rates by $0.05 per kWh for all users until the applicable tropical storm or hurricane has concluded, or the evacuation order is rescinded. This will help facilitate evacuation traffic by offering recharges to EV users wishing to leave the island. This specific "emergency pricing plan" may only be instituted when an evacuation order is given or a warning is issued. Charging stations will not be physically turned off during a storm event, but their hours of operation will remain the same. Each charging station's system contains a digital dashboard that can produce actual expense and revenue figures in real-time at any time. Staff will produce an annual report on program revenue/expenses. During the first year of operation, Staff will produce the report for City Council on a quarterly basis. The City will have the ability to change the program's rate structure at any time via Council Resolution due to each station's "smart" networked capabilities, allowing for better flexibility and adaptability to any possible market and/or regulatory changes. Vehicles that are found left behind at a City charging station for a long period of time are subject to towing in accordance with the City's code applicable to abandoned vehicles. Each of the two parking spaces situated in front of each of the City's charging stations will be designated "EV Only" parking. An internal combustion engine -based vehicle found to be parked in an EV Only space is subject to citations under Florida law enforced by the Brevard County Sheriff's Office. Typically, a full "refuel" for an EV battery pack costs less than that of a full refuel of a traditional gas or diesel vehicle, and the cost of electricity is less volatile in nature than the cost of gasoline or diesel. As such, the City assumes minimal risk in the proposed rate structure in terms of the cost of electricity provided. The project will officially commence the first week of October 2023. Staff and NovaCHARGE are working to complete the project sometime within the fourth quarter of 2023 (October — December) City of Cape Canaveral City Council Meeting • Wednesday, September 20, 2023 Agenda Item # 11 Page 4 of 4 pending no weather and/or supply chain issues. NovaCHARGE has indicated that the project could be completed within about thirty days. Public outreach will begin two to three weeks before the estimated completion of the stations, and will indicate how to utilize each station, rate structure, and how to apply for a resident discount. Outreach will be conducted via the City's Weekly Update, paper -based promotional materials within public facilities, and on social media platforms. Submitting Department Director: David Dickey Attachments: 1. Email from City Attorney re: Pertinent Florida State Statute EV Charging Station Information 2. Resolution No. 2023-21 Financial Impact: • Staff time and effort to prepare this agenda item. • Total upfront project cost: $108,912.94. • Total installation project budget: $120,000, which includes the one-year warranty extension (total 5 years). • Ongoing networking fees: $400 per year per charger. • Revenue is estimated at —$72,000 per year (among all six charging stations), based on proposed rate structure. Reviewed by Administrative/Financial Services Director: John DeLeo The City Manager recommends the City Council take the following action: Adopt Resolution No. 2023-21. Approved by City Manager: Todd Morley Attachment 1 From: Anthony A. Garaanese To: Todd Morley Cc: David Dicke ; Zachary Eichholz; Don Willis Subject: RE: [EXTERNAL] EV Charging Stations Date: Tuesday, February 21, 2023 12:06:38 PM Todd, Public utilities are governed by Florida Statutes Chapter 366. Florida Statutes § 366.02 states that the term "public utility" does not include a municipality or any agency thereof. Florida Statutes § 366.94 governs electric vehicle charging stations. Section 366.94(1) states that "[t]he provision of electric vehicle charging to the public by a nonutility is not the retail sale of electricity for the purposes of this chapter. The rates, terms, and conditions of electric vehicle charging services by a nonutility are not subject to regulation under this chapter. This section does not affect the ability of individuals, businesses, or governmental entities to acquire, install, or use an electric vehicle charger for their own vehicles." Further, subsection (2) directs the Florida Department of Agriculture, Office of Energy, to promulgate rules related to the methods of sale, labeling, and pricing of electric vehicle charging stations. Section 50-3 of the Administrative Code was created to house these rules. However, no rules exist. So, electric vehicle charging made available to the public by a non -utility (such as the City) is not considered a retail sale of electricity and, therefore, the rates, terms, and conditions of EV charging services are not subject to regulation at this time. Thus, a city which has installed electric vehicle charging stations on city property is not a public utility and is not engaged in the retail sale of electricity, and therefore is not subject to regulation as a utility under Chapter 366. There is no further provision of the Florida Statutes which would prohibit a city from charging customers for the use of the city's electric vehicle charging stations. A municipality may, therefore, be an owner or operator of an electric vehicle charging station as there is no provision of the Florida Statutes which would prevent a municipality from owning or operating an electric vehicle charging station. Pursuant to Florida Statutes § 377.815(3), the city, as an owner or operator of an electric vehicle charging station, may report the station's name, address, or location, and the fees or costs associated with the electric vehicle charging services provided by the station, to the Florida Department of Agriculture and Consumer Services. Also, FYI. The City of Orlando has publicly -available electric vehicle charging stations (for example near my office by Lake Eola on Rosalind and at the City parking garage on the corner of Rosalind and Robinson). You can find information regarding the charging stations here (private site with information about EV charging stations) and here (city map of charging stations). Regards, Anthony °N GA G NESE I WEISS 4 411144) D GRESTA & SALZIvIAN vk lisoS ATTORNEYS AT I, w Garganese, Weiss, D'Agresta & Salzman, P.A. Anthony A. Garganese, Shareholder Board Certified in City, County & Local Government Law 111 N. Orange Ave., Suite 2000 P.O. Box 2873 Orlando, Florida 32802-2873 Phone (407) 425-9566 Fax (407) 425-9596 Kissimmee (321) 402-0144 Cocoa (866) 425-9566 Website: www.orlandolaw.net Email: sshell@orlandolaw.net Any incoming e-mail reply to this communication will be electronically filtered for "spam" and/or "viruses." That filtering process may result in such reply being quarantined (i.e., potentially not received at our site at all) and/or delayed in reaching us. For that reason, we may not receive your reply and/or we may not receive it in a timely manner. Accordingly, you should consider sending communications to us which are particularly important or time -sensitive by means other than e-mail. Confidentiality Note: This e-mail, and any attachment to it, contains privileged and confidential information intended only for the use of the individual(s) or entity named on the e-mail. If the reader of this e-mail is not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that reading it is strictly prohibited. If you have received this e-mail in error, please immediately return it to the sender and delete it from your system. Thank you. From: Todd Morley [mailto:T.Morley@cityofcapecanaveral.org] Sent: Friday, February 17, 2023 3:42 PM To: Anthony A. Garganese <agarganese@orlandolaw.net> Cc: David Dickey <D.Dickey@cityofcapecanaveral.org>; Zachary Eichholz <z.eichholz@cityofcapecanaveral.org> Subject: [EXTERNAL] EV Charging Stations Anthony, FYI - One of the agenda items is an item submitted by Councilmember Willis regarding the status of the Rivian Agreement. As you know, Rivian has shifted their focus away from this initiative and we are back to square one. Could the City charge for this service? Is this creating utility? We should be prepared to respond to this next Tuesday. Todd Todd Morley City Manager City of Cape Canaveral (321) 868-1220 x218 100 Polk Avenue — P.O. Box 326 Cape Canaveral, Florida 32920 Florida has a very broad public records law. As a result, any written communication created or received by the City of Cape Canaveral officials and employees will be made available to the public and/or media upon request, unless otherwise exempt. Under Florida Law, email addresses are public records. If you do not want your email address released in response to a public -records request, do not send electronic email to this entity. Instead, contact our office by phone or in writing. Florida has a very broad public records law. As a result, any written communication created or received by the City of Cape Canaveral officials and employees will be made available to the public and/or media upon request, unless otherwise exempt. Under Florida Law, email addresses are public records. If you do not want your email address released in response to a public -records request, do not send electronic email to this entity. Instead, contact our office by phone or in writing. Attachment 2 RESOLUTION NO. 2023-21 A RESOLUTION OF THE CITY OF CAPE CANAVERAL, FLORIDA; ESTABLISHING RATES AND CHARGES AND OTHER TERMS AND CONDITIONS FOR PUBLIC EV CHARGING STATIONS OPERATED BY THE CITY ON CITY OWNED OR CONTROLLED PROPERTY; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT RESOLUTIONS, SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City is granted the home rule authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Section 366.94(1) states that the provision of electric vehicle charging to the public by a nonutility is not the retail sale of electricity for the purposes of being regulated by the Florida Public Service Commission under Chapter 366, Florida Statutes. Therefore, the rates, terms, and conditions of electric vehicle charging services by a nonutility are not subject to regulation under Chapter 366, Florida Statutes, and Chapter 366 does not affect the ability of individuals, businesses, or governmental entities to acquire, install, or use an electric vehicle charger for their own vehicles; and WHEREAS, based on the home rule powers vested in the City under the State Constitution, and the applicable provisions of Chapter 366, Florida Statutes, the City Council hereby finds that it has the authority to acquire, install, and use publicly available EV charging stations on City owned or controlled property and to impose rates, terms, and conditions for their use; and WHEREAS, the demand and availability of electric vehicles ("EVs") continues to grow within the United States, and Florida is second only to California in the number of EVs according to Southern Alliance for Clean Energy; and WHEREAS, Florida Power and Light (FPL) predicts that there will be over 600,000 EVs within its service territory by 2030 and approximately 8.1 million EVs by 2040; and WHEREAS, EVs are an important emerging technology for Cape Canaveral residents for a number of reasons, as recognized by the Legislature of the State of Florida: "conserves and protects the state's environmental resources, provides significant economic savings to drivers, and serves an important public interest." Section 718.113(8), Fla. Stat.; and WHEREAS, due to the City's unique coastal location adjacent to major tourist attractions, such as Port Canaveral, Kennedy Space Center, beaches, and the near -future Brevard Zoo aquarium, as well as the existence of critical military and aerospace installations, there is and will continue to be a need for accessible public EV charging station infrastructure to support long- term economic growth as EV ownership continues to increase; and WHEREAS, the City has also observed that a number of City residents rely upon the City's public charging stations given that they do not have access to home -based charging infrastructure either because they live in a rental or condominium property; and City of Cape Canaveral Resolution No. 2023-21 Page 1 of 4 WHEREAS, although private EV charging stations exist in various places, there currently appears to be a lack of publicly available EV charging stations on the barrier island based on a general area observation conducted by City staff; and WHEREAS, due to the growing demand for EVs and the need to provide publicly available EV charging stations, the City Council has recently authorized the purchase and installation of new "smart" EV charging stations at Manatee Sanctuary Park, Banana River Park, City Hall and the City of Cape Canaveral Community Center for purposes of continuing to support the electrification of the transportation sector and staying a leader in the region by offering long-term fiscal sustainability and better program management in furtherance of the goals set forth in the City's Resiliency Action Plan; and WHEREAS, in order to support the City's goal of providing state of the art "smart" publicly available EV charging stations, and to cover the City's operational and maintenance costs associated with such stations, the City Council hereby desires to establish reasonable rates and charges for the public's use of the City's EV charging stations; and WHEREAS, the City Council hereby finds that this Resolution supports the City's goal of providing widespread access to EV charging infrastructure throughout the City to prepare for increasing deployment of EVs, improve local air quality, and achieve the City's sustainability and climate goals in an accessible and inclusive manner; and WHEREAS, the City Council hereby also finds that this Resolution is in the best interests of the public health, safety and welfare of the citizens of the City of Cape Canaveral and general public. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are deemed true and correct and are hereby incorporated herein by this reference as a material part of this Resolution. Section 2. Adoption of Rates and Charges Schedule. The following rates and charges and other terms and conditions of usage are hereby adopted for City operated EV charging stations on City owned or controlled properties: A. City Resident usage rates: $0.15 per kWh for the first 4 hours of charging $0.20 per kWh after the first 4 hours of charging To receive the City Resident rate, a person must provide proof of residency in the form of a current driver's license, passport, personal identification card issued by a governmental agency, utility bill, homestead exemption, or such other supporting documentation deemed acceptable by the City Manager or designee. Residency status shall be verified by the City Manager or designee at least annually. B. Non -City Resident usage rates: $0.20 per kWh for the first 4 hours of charging $0.25 per kWh after the first 4 hours of charging City of Cape Canaveral Resolution No. 2023-21 Page 2 of 4 C. Additional Transaction Fee: In addition to the kWh rate described in Sections A and B above, a standard $0.50 flat transaction fee — plus 5% of the overall transaction cost shall be charged to a user for each charging session. D. Idle Fee: For purposes of increasing turnover and public availability of the charging stations to vehicles in need of charging and reducing idling, all vehicles that remain plugged in after their charge is complete shall incur an "idle fee" of $0.15 per minute until the recharging plug is removed. E. Other Terms and Conditions of Usage: All EV charging stations will be programmed to cease operations at 9:30 pm every evening, and resume operations at 6:30 am every morning. Any provision of the City Code prohibiting or limiting overnight parking on City owned property (including City parks such as Manatee Sanctuary Park, Banana River Park, and Canaveral City Park) shall remain in full force and effect. Whenever a tropical storm or hurricane warning or evacuation order is issued for Cape Canaveral, the City Manager is authorized to reduce the KWh rates in Section A and B by $0.05 per KWh for all users until the applicable tropical storm or hurricane event has concluded, or the evacuation order has been rescinded. Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 5. Reporting Resolution to State. Pursuant to Florida Statutes § 377.815(3), the City, as an owner or operator of an electric vehicle charging station that is available for public use, may report the station's name, address, or location, and the fees or costs associated with the electric vehicle charging services provided by the station, to the Florida Department of Agriculture and Consumer Services. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption. ADOPTED at a Regular Meeting of the City Council of the City of Cape Canaveral, Florida, assembled this 19th day of September 2023. [Signature Page Follows] City of Cape Canaveral Resolution No. 2023-21 Page 3 of 4 ATTEST: Mia Goforth, CMC, City Clerk Wes Morrison, Mayor Name FOR AGAINST Kim Davis Mickie Kellum Wes Morrison Angela Raymond Don Willis Approved as to legal form and sufficiency For the City of Cape Canaveral only by: Anthony A. Garganese, City Attorney City of Cape Canaveral Resolution No. 2023-21 Page 4of4