Council Study Session

MINUTES OF THE GILBERT TOWN COUNCIL, IN SPECIAL MEETING FOR A STUDY SESSION, TUESDAY, MARCH 5, 2024, AT 5:00 PM, MUNICIPAL BUILDING I, COUNCIL CHAMBERS, 50 E. CIVIC CENTER DRIVE, GILBERT, ARIZONA COUNCIL PRESENT: Mayor Brigette Peterson, Vice Mayor Scott Anderson, Councilmembers Chuck Bongiovanni, Bobbi Buchli, Yung Koprowski, Kathy Tilque, and Jim Torgeson COUNCIL ABSENT: None. STAFF PRESENT: Town Manager Patrick Banger, Town Clerk Chaveli Herrera, Assistant to the Town Manager Jennika Horta CALL TO ORDER OF SPECIAL MEETING Mayor Peterson called the meeting to order at 5:04: p.m. AGENDA ITEM 1. Discussion on Electric Vehicle Charging Stations. Assistant to the Town Manager Horta presented the project background and said the discussion would focus on electric vehicle (EV) charging prices and policies. She said the Town currently operated three EV Charging Stations (EVCS). She said the one located at Town Hall was not currently active; however, the other two stations were operational and were located at the Public Safety Training Facility (PSTF) and the Hearne Way Parking Garage in the Heritage District (HD.) She also noted that those two EVCS were not able to collect data to understand the usage of those chargers. She stated that the Town was in the process of replacing those EVCS and exploring the implementation of a fee to recoup the cost of electricity dispensed by the new EVCS. She said the pilot period was recommended for one year and would be just a starting point. Eric Haggett, Director of Planning from the Chicago Office with Walker Consultants, discussed Walker’s Methodology and said they began with talking to about 10 different Town departments and tours of different locations to understand who might be using the locations. He discussed speaking to manufacturers and then performing research on EV charging policies and pricing in the Phoenix Metro area and other municipalities across the country. He said there was no way to make a profit previously, but now that they were used more commonly, they were exploring other options. He provided some peer research findings using Chandler, Mesa, Tempe, Scottsdale, and Guadalupe, as well as Arizona State University and the State of Arizona. They looked to document the cost to charge, charging time limit, fee imposed if not actively charging vehicle, paid parking required, and charging equipment vendor. He then discussed that Gilbert did not have EVs in the Town’s fleet other than one hybrid fire engine. He said some cities did have EVCS in their fleet and noted that the City of Tempe had 30 or more charging stations dedicated to fleet vehicle charging. He then summarized their recommended fees for charging stations that were currently being installed in Gilbert. He said the goals were recouping the cost of electricity dispensed, aligning with the market rates in the Phoenix area, potentially recouping some of the upfront costs, and encouraging people who actually used the charging spaces and were not just parking there. He said for public users and Town Employees, their recommendation was $0.25 per kilowatt hour (kWh) cost to charge for the first four hours, then up to $0.70 per kWh. He discussed an idle fee that could be assessed if a vehicle had finished charging and then was still parked in the charging station. He also noted a fine for an Internal Combustion Engine (ICE) Vehicle in EV Space or EV not plugged into the EVCS, stating they recommended up to $350.00, and that dollar amount matched the current State statute amount. He explained the term “icing” as someone intentionally parking in an EVCS space so that it could not be used by others. He then stated for Town Fleet Vehicle drivers, the recommendation was for free EVCS usage and to encourage them to charge on certain days and times. He then discussed the EV vs ICE Vehicle Fueling Cost Comparison with electric vehicles and that neither vehicle was favored. He also discussed recommended tracking via a radio-frequency identification (RFID) card issued to the Town employee and the days and times for usage that were recommended at Town Hall Campus, Hearne Way Garage, and the Public Safety Training Facility. He provided the potential revenue at the $0.25 recommended rate for kWh could total $6,500 per year in net revenue based on all of the charging stations working at the three listed locations. He said the net revenue would take place after paying for the cost of the electricity dispensed. He added the next steps would be for the Council to move forward with the recommended pricing structure for the pilot, post notice of intent for 60 days, and return to the Council in May to seek adoption of the fees. Councilmember Bongiovanni asked about the replacement cost for the newer EVCS, their lifespan, and the maintenance required. Eric Haggett said that a new EVCS cost about $7,500 and had an estimated lifespan of about 10 years. He said that the Town would opt for a service contract that would cover the maintenance of the EVCS. Councilmember Tilque said she understood that the existing stations were not currently charging users for their use; instead, the Town was covering the electricity cost. The question was whether employees would be issued cards to swipe at the stations, and then the corresponding department would be billed for the usage. Assistant to the Town Manager Horta said if it was a Town employee charging their own vehicle, they would be charged separately, but if they were charging a Town vehicle, yes, it would be tracked and accounted for. Councilmember Tilque said she supported the pilot program and she didn’t think it was fair for the Town to solely pay for the cost of the electricity when it was available to the public. Councilmember Tilque asked the Council if they implemented it for short period of time and if the Town would recover the infrastructure cost, to which the Council said yes. Councilmember Koprowski asked if the non-smart EVCS at the Hearne Garage were at the end of life, or if they could be used elsewhere. Assistant to the Town Manager Horta stated she would have to check, but said they would not be able to provide data on those stations. Councilmember Koprowski asked what the maximum output rate per hour was; Eric Haggett replied seven kWh per hour. Walker Consultants Anirudh Chopde, Principal of the Phoenix office, said these EVCS were Level 2 universal stations and put 40 kWh amps, as opposed to the Tesla EVCS, which put out 75 amps. Councilmember Koprowski recommended charging by the hour for the public's ease. Eric Haggett said a flat hourly fee would cause some to get more or less charge, so he said charging by the kWh fee would make more sense. Councilmember Koprowski discussed the fee for people parking there but not using them, stating she was in favor of the $350 to be consistent with state law, but said it was steep and asked about a graduated fee. Councilmember Koprowski discussed the proposed recommended usage times, stating it would be best to be consistent with the times to make it easier to understand. Eric Haggett stated it would be more of an internal public policy, not posted anywhere for the general public. Councilmember Koprowski asked if they knew how much they were spending annually for electricity for Hearne Garage; Assistant to the Town Manager Horta stated she could provide that data at a later date. Councilmember Koprowski asked about EV-first vehicles for the Town but said she preferred a use case. Assistant to the Town Manager Horta stated they would update that in the final draft. Councilmember Torgeson asked if this was just a pilot study to find out what the cost would be for the Town. Assistant to the Town Manager Horta said it was, and in that year, the Town would be able to figure out how much the cost would be, and moving forward, they would bring data on replacement costs thus far and data on usage. Councilmember Torgeson asked that in the year, they would be able to bring forth the infrastructure cost and see how much the Town would lose. Assistant to the Town Manager Horta stated they could bring back actual data after the one-year mark rather than use estimates. Councilmember Buchli inquired about cities and towns that had incorporated installation fees along with the cost of the EVCS. She expressed interest in reviewing relevant data. Eric Haggett said that he hadn’t encountered any instances where Level 2 EVCS significantly contributed to financial gains. He emphasized that home charging remained the most cost- effective option. He said regarding the specific plans, the Town was considering the purchase of a total of 15 units, which translated to 30 charging ports across the three existing sites. Councilmember Buchli asked about the cost of the individual EVCS units, to which Eric Haggett indicated it would be approximately $10,000, or $7,500 for the Town, plus other associated fees. Vice Mayor Anderson expressed his view that the limited investment in charging stations might be due to the fact that most people charged their EV at home. He raised the question of whether our EVCS, which could be exclusively used by our fleet, could be repurposed before they became obsolete. He inquired about the placement of these charging stations in relation to handicapped spaces. He said if not located adjacent to such spaces, ICE vehicles might be pushed further back. Eric Haggett and Anirudh Chopde clarified that the EVCS could indeed be dedicated solely to the Town’s fleet. They also noted that while some of the EVCS were positioned near handicapped spaces, others are situated on a different level of the parking structure, or at alternative locations. They said a thoughtful discussion highlighted the need to adapt and optimize charging. Mayor Peterson recommended, in the interest of time, that the Council gather any questions to be submitted. Councilmember Bongiovanni recommended that they postpone the second study session item until the April meeting. 2. Discussion on the Office of Digital Government related to the department scope, mission, public messaging, post content, funding and name of office. This item was not discussed; the Council requested the item discussion be postponed until April 2, 2024. ADJOURN Mayor Peterson adjourned the meeting at 5:51 p.m. ATTEST: ___________________________ ___________________________________ Brigette Peterson, Mayor Chaveli Herrera, MMC, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Study Session of the Town Council of the Town of Gilbert held on the 5th day of March, 2024. I further certify that the meeting was duly called and held and that a quorum was present. Dated this __________ day of ______________, 2024. ___________________________________ Chaveli Herrera, MMC, Town Clerk