Title
Resolution to Approve Agreement Between the City of Ann Arbor and the Downtown Development Authority of the City of Ann Arbor Regarding Responsibilities and Cost Allocation for the Installation of 80 Electric Vehicle Chargers in Public Parking Spaces and Authorize City Share ($367,200.00)
Memorandum
The City of Ann Arbor has made aggressive goals around climate action, including supporting a transition to electric vehicles for transportation. Research shows that one of the primary ways a city can support the transition to electric vehicles is by providing electric vehicle charging infrastructure. Having robust and highly visible electric vehicle charging infrastructure helps residents confront range anxiety, or the fear that chargers may not exist when needed.
Given this, the City of Ann Arbor has a goal of installing at least 100 new public electric vehicle chargers annually. One of the first areas of demand for charging in the downtown corridor. As such, the City has been working with the Downtown Development Authority (DDA) since before the COVID-19 pandemic to identify locations where electric vehicle chargers should be installed based on demand.
The COVID-19 pandemic, however, slowed down this work and caused major economic hardships to the DDA. Despite this, the City continued to work with the DDA to advance a potential installation of many electric vehicle chargers. In the fall of 2021, the DDA and the City began working with ChargePoint, the currently manufacturer of the City’s electric vehicle charging infrastructure, on a potential charging as a service contract. After negotiating with ChargePoint, the City and the DDA agreed that a 5-year charging as a service contract was the most viable means of getting a significant number of charging infrastructure into the downtown core.
As part of the charging as a service contract, the City and DDA would get 80 electric vehicle chargers installed, would receive operation and maintenance support directly from ChargePoint, and would quickly be able to more than triple the amount of chargers in our parking system (from 30 ports to 110 ports). The quote from ChargePoint to administer a 5-year charging as a service contract was $367,200 (or $73,440 per year).
Given that the DDA has had significant impacts to their revenue stream from the pandemic and given that the Office of Sustainability and Innovations originally budgeted the cost to outright procure the electric vehicle chargers (which is not necessary under a charging as a service program), the City’s Office of Sustainability and Innovations has budgeted resources to cover all 5-years of the charging as a service contract and the electrical upgrades necessary to get these sites prepared for the installation of chargers.
Working together, the DDA and the City developed an agreement that outlines roles, responsibilities, and collaborations between DDA and the City in regard to getting these 80 chargers in place (enclosed). Should Council approve this agreement, DDA would manage the charging as a service contract with ChargePoint since they are most closely tied to the parking system and have the feedback channels necessary to highlight any maintenance or operational needs. OSI would assist the DDA with internal processes necessary to get the chargers installed as well as help with advertising the existence of the chargers to the public. The Office of Sustainability and Innovations and City would also retain the right to purchase the chargers outright, should that become of interest at any point in the future. More details can be found in the enclosed agreement.
Budget/Fiscal Impact: Funding for this project is available in the office of Sustainability and Innovations approved FY23 General Fund Operations and Maintenance budget.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Maura Thompson, Interim Downtown Development Authority Executive Director
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The City has committed to reaching carbon-neutrality by year 2030 and an expanded electric vehicle charging infrastructure is necessary to attain this goal;
Whereas, The City and the Downtown Development Authority (DDA) have expressed interest in working cooperatively to install 80 public electric vehicle charging ports in downtown garages and lots in fiscal year 2022 and have identified clear roles and responsibilities for each party;
Whereas, The City is pursuing an amendment to the contract with Harper Electric to upgrade the electrical infrastructure at downtown parking lots and garages where these electric vehicle charging ports will be installed;
Whereas, The City and the DDA have agreed that charging as a service is a viable model for these new electric vehicle chargers, whereby a third party would install, maintain, and operate the chargers;
Whereas, The City and DDA have agreed that the DDA will award a charging as a service contract to ChargePoint, Inc. to install, operate, and maintain these 80 new electric vehicle chargers;
Whereas, The cost for a 5-year contract for 80 electric vehicle chargers via a charging as a service contract with ChargePoint is $367,200;
Whereas, The DDA has had major revenue losses due to the pandemic and is not able to contribute significant financial resources for the completion of this project;
Whereas, The Office of Sustainability and Innovations allocated funding in their FY22 budget to support the installation of electric vehicle charging infrastructure;
Whereas, The City, through the A2ZERO plan, set the goal of installing over 100 chargers per year in public garages and lots; and
Whereas, The City and the DDA have drafted an agreement to work collaboratively to install, maintain, and operate these chargers and to apply for state and utility rebates which, if secured, would go to the Office of Sustainability and Innovations as a rebate for the costs associated with the charging as a service contract;
RESOLVED, That City Council approve the enclosed agreement between the Downtown Development Authority and the City;
RESOLVED, That City Council authorize the payment of $367,200 to the Downtown Development Authority for the City share of the contract to procure, operate, and maintain the 80 charges;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.