2022.02.08 CC Packet - Laserfiche WebLink

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January 25, 2022 Page 3 of 6 None. Council Business 1. Consider Electric Vehicle Charging Station License Agreement with CSG EV, LLC. City Manager Massopust indicated Community Assets and Development Director Schlichting would be presenting this item to the Council. Community Assets and Development Director Schlichting stated in early 2021 the City was accepted to be part of an Xcel Energy pilot. The pilot feasibility study and assessment were completed shortly thereafter. This program would have covered all of the costs associated with the infrastructure upgrades (related to power), installation, design, permitting and labor for the installation of power facilities to support EV at City Hall. The City would have been responsible for purchase of the charging equipment and energy used following install. Using State Bid prices, it was estimated to cost $84,635 for the equipment, cellular plans and installation. Community Assets and Development Director Schlichting explained during this same time, the City was made aware of a private company that was working with Cities (i.e. Plymouth) to build an EV charging network with no upfront cost. The City contacted Energy Management Solutions (EMS) Inc., a local energy solutions group, to see how New Brighton could fit into their plans. EMS worked with the City of New Brighton and our Attorney to prepare the framework for an agreement with Carbon Solutions Group (CSG). This agreement includes CSG providing the City with 5 electric vehicles, and EV charging stations at multiple sites throughout the City. By electing to receive 5 vehicles, the City will forgo rental income for the stalls that are occupied with EV equipment for 10 years. The total term of the agreement is 10 years, plus 2 additional 5 year terms if mutually agreed to do so. CSG will own, operate and pay for all software and equipment upgrades. CSG will include a user electricity fee that is higher than the Xcel rate to pay for their upfront investment. The rate/kWh is designed to be at or below the equivalent cost for gasoline. City staff has selected sites throughout New Brighton that have parking facilities off‐street. Staff will continue to work with CSG to install facilities where they make sense, and in locations that benefit all New Brighton user groups. Staff commented further on the proposed timeline for this project and recommended approval of the license agreement. Mayor Niedfeldt-Thomas inquired if staff had spoken to representatives from the City of Plymouth regarding this program. Community Assets and Development Director Schlichting stated he had not had direct conversations regarding deployment but noted he had met with County representatives regarding the proposed program. Councilmember Abdulle questioned how many miles the City would be able to drive on the electric vehicles. He asked what the charge would be to use the EV charging stations. Community Assets and Development Director Schlichting reported the City would be able to drive 149 miles on a fully charged Leaf. He indicated the Tesla has a longer range. Jody McDevitt, Energy Management Solutions (EMS) representative, discussed how the miles of range for electric vehicles was increasing each year as new models are introduced. He discussed what would be charged to drivers by the charging stations, noting this would include a kilowatt hour rate along with a demand charge component. He estimated the cost would be 25 to 30 cents per kilowatt hour, which was 20% to 25% less than gasoline. Mayor Niedfeldt-Thomas asked what role Xcel Energy would have with this project. Community Assets and Development Director Schlichting reported the City was chosen to be part of a pilot program with Xcel Energy to implement EV charging stations. However the cost of this infrastructure was estimated to be $30,000 and $50,000 and charging stations would still have to be purchased. He explained this led staff to pursue a partnership with CSG. He reported Xcel Energy would be working directly with CSG moving forward on the placements of EV stations within the City’s parks and at City Hall. Public Hearing Council Business 1. Consider Electric Vehicle Charging Station License Agreement with CSG EV, LLC.