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HomeMy WebLinkAboutCC e - Electrical Design Technical Memo MEMORANDUM Date: October 4, 2019 TO: Project File FROM: Richard Burde, PE, Engineer III Chris Read, Sustainability Manager CC: Project Team VIA: Matt Horn, PE, City Engineer Brian Nelson PE, Supervising Civil Engineer SUBJECT: Electrical Design Recommendations for Palm - Nipomo Garage Introduction For the last several years the City has aspired to develop the existing surface lot at the corner of Palm and Nipomo into a multi-level parking structure. Design of the structure began in March 2019 and is currently underway by the project design consultant, Watry Design, Inc. Construction is expected to start by the end of 2020. In addition to adding much needed parking to the downtown core, this development provides a valuable opportunity for the City to gain experience in implementing green technologies in a major capital project while balancing the monetary costs associated with such advancements. The Palm–Nipomo Parking Structure is scheduled to go to City Council for approval on November 5, 2019. With the project currently in the preliminary design stage, City Administration staff asked Public Works staff to investigate and make recommendations on the appropriate level of implementation of green technologies, including solar and electrical vehicle charging. This document provides a discussion of the benefits and challenges of such a project and provides recommendations for prudent levels of green technology implementation in the design of the structure’s electrical system. Background As stated in the City’s Climate Action Plan, San Luis Obispo has set a goal for becoming carbon neutral by 2035. If this ambitious milestone is to be achieved all viable opportunities for implementing green technology must be taken advantage of. However, mass implementation of many emerging green technologies is often cost prohibitive and the City’s desire to show leadership in environmental sustainability must always be balanced by the monetary costs associated with these advancements. The new parking structure at Palm and Nipomo will require a heavy investment from the City and is expected to have a life span of 50 years or more. This makes it critical for City staff to thoroughly consider current technologies and consumer trends in parking, as well as try to anticipate how emerging technologies might affect the future use of parking structures. Palm-Nipomo Proposal (Preliminary Implementation of Green Technologies) To date, Watry Design Inc. has produced a preliminary layout of the garage which includes 403 stalls on five levels. Of the 403 total stalls, 43 have been equipped with electric vehicle (EV) charging stations, or roughly 10% of total stalls. This allocation of EV stalls is in line with the current City Zoning Regulations see section 17.72.040 which requires 10% of stalls to be EV ready and an additional 25% of stalls to be made EV capable. In addition to EV charging, Watry’s preliminary layout includes photovoltaic (PV) panels on the structure’s top level with coverage equaling 8,935 of the 32,000 total square feet. Photovoltaic panels would be used to offset the energy demands of the garage, including load requirements of EV charging stations, as well as reduce the City’s overall dependence on traditional power sources. Any excess power produced would be directed to the grid, making clean energy available for use elsewhere. Green Technologies Currently Available Upon receiving Watry’s preliminary design, City staff researched whether expanding the use of green technologies in the Palm–Nipomo structure would be practical. The following section outlines the current capabilities, limitations, and costs associated with EV chargers and PV panels. In addition, the potential use of battery walls to offset peak demand electrical pricing will be explored. EV Charging – There are now over a million electric vehicles on the road across the US and a million more are expected within the next three years. California leads the U.S. in EV purchases where 7.1% of new cars sold in the state are electric. This trend in increased electric vehicle use presents an opportunity for parking garage operators to attract customers by providing charging stations in their structures. Currently there are three primary options available for charging electric vehicles: • Level 1 chargers - generally installed at private residences, they operate on a 120 Volts Alternating Current (AC) and require 8-12 hours to fully charge an electric battery. • Level 2 chargers - the most common type of chargers, these operate on a 240 Volts AC plug and require 4-6 hours to fully charge an electric battery. Level 2 chargers are compatible with all electric and hybrid vehicles. • Level 3 chargers - known as direct current (DC) Fast Chargers, they operate on a 480 Volts DC and can provide an 80% charge in as little as 30 minutes. All 43 EV-ready stalls currently being proposed in the Palm–Nipomo structure are Level 2 chargers, each of which will demand 6.656 kilowatts of electricity while in use. Operating Costs of EV Charging In April of 2019, the City installed 19 EV Level 2 charging stations in the Marsh St. parking garage, making it the City’s first significant implementation of EV charging. Despite the growing popularity of electric vehicles in California and the strong occupancy rates of the general stalls at Marsh St., use of the charging stations remains low. This is true even though the City only collects its typical parking rates and does not pass along electrical fees associated with charging to the consumer. Analysis by the Parking Services Programs has determined that the average price for power used in the Marsh St. garage is $0.36 per kilowatt hour, with peak rates of $0.58 per kilowatt hour. Therefore, a car parked and charging during peak rates incurs an energy cost to the City of $3.86/hour while only paying $1.50/hr in parking fees. At this rate, a customer fully charging a vehicle during a 6-hour stay would pay $7.50 in parking fees ($1.50/hour with the first hour free). During this time the City would incur $23.16 in electrical costs during peak times which equates to a $15.66 loss to provide this service ($7.50 of parking fees minus $23.16 electrical cost). During average rate times, the cost of electricity is lower but still equates to a $6.90 loss to provide this service. Providing EV charging stalls also brings hidden or “soft” costs to the project by reducing the parking structures revenue potential. Due to the enlarged space requirements of the EV charging stations and the need to maintain ADA-compliant paths of travel, the addition of EV charging stations beyond the 10% base requirement will require the elimination of traditional stalls, further impacting the structures potential for generating revenue. For example, making the parking structure 100% EV capable would reduce the total stall count by 35 stalls, roughly 8.6%. With debt financing being pursued for construction funding any potential impact on the structures ability to generate revenue must be carefully considered. Photovoltaic panels - Photovoltaic (PV) technology has been used on small scales to convert light into electricity for decades, but with advancements in PV technology over the last 20 years their use as a clean, reliable source of energy has become common. Today, PV panels annually produce 27.3 Terawatt hours worth of electricity in California, making it the second most utilized energy source in the state. This mass implementation has also contributed to the capital cost of PV systems dropping by approximately 34% over the last 5 years. Preliminary cost estimates for photovoltaic systems vary based on size and design specifics , but for the purposes of assessing the viability of implementation, a conservative cost of $3.00/watt will be used. At this price point, assuming average electrical cost of $0.36 per kwh incurred at the Marsh St. structure, it would take 5.7 years at 4 hours of production a day for the panels to pay for themselves. Applying peak rates of $0.58/kwh to the analysis would be reduced this to 3.54 years. With a lifespan for the panels of 20-30 years and minimal maintenance required to keep them functioning efficiently, PV implementation is clearly of benefit. Battery Walls - The last few years have also brought significant advancements in battery technology. Often used to complement PV systems, battery walls can store solar power produced during daylight hours, making it available for EV charging at night. A charged battery can also be used to offset power used during peak pricing times by bridging the gap between the power output of a PV system and the draw of high-energy equipment such as EV chargers. At a price point of $7500 each, wall batteries require routine maintenance, and have a lifespan of 10 years or less. These units also require additional storage space that can house control systems, as well as cooling and ventilation systems. Although additional cost analysis would be needed in order to accurately quantify the total price for battery wall implementation, preliminary calculations suggest this is not economically feasible. Palm – Nipomo Design Recommendations EV Chargers - Currently the California Green Code requires a parking structure of 200 units or more to provide 6% of total stalls to EV charging. This requirement is high compared to other states which highlights the commitment to environmental sustainability the City of San Luis Obispo has shown by requiring 10% EV ready and an additional 25% capable. It is the recommendation of City staff to implement the EV standards set forth in the City Zoning Regulations of 10% EV ready and 25% EV capable, which is a larger implementation than required in the California Green Code. Photovoltaic panels – Staff recommends increasing the use of photovoltaic panels from 8,935 square feet (sf) currently being proposed to 17,147 sf. This increase requires installation of photovoltaic panels along the perimeter of the top level of the parking structure which may change the aesthetic look of the structure as seen from the street. Battery wall - Battery walls are not deemed economically feasible at this time and should not be implemented in the design of the garage. Policy Considerations Although this memo is focused on the capital investments associated with the proposed parking garage, Public Works and the Office of Sustainability met to discuss additional policy considerations that could help support staff design recommendations. It is recommended that these policy considerations be presented at the November 5 City Council meeting and that the issues are resourced and addressed as the construction component of the project moves forward. The City has converging needs around rapidly increasing housing production, reducing vehicle miles traveled, reducing congestion, supporting active transportation and transit, enhancing downtown and implementing the downtown concept plan, addressing cost-of-living and equity issues, and reducing greenhouse gas emissions. The Palm/Nipomo garage should exist to serve the success of these broader policy priorities, and under this context the following policy and operational considerations should be considered: 1. Allowing downtown residents to park and charge overnight – This could allow new residential developments to have reduced parking requirements, would provide off-peak charging revenue, would provide access to charging for downtown residents, and would allow greater utilization of the garage. 2. A program to test EV charging rates – Given the dynamic pricing capabilities of ChargePoint chargers, the existing Marsh Street and the proposed Palm/Nipomo garages provide an opportunity to test rates to strike the correct balance between cost recovery and utilization. Initial ideas include: a. Equity rates that provide free or significantly reduced charging for income qualified residents b. Special rates for overnight charging c. Partnership with hotels and tourism groups (e.g., TBID, Chamber of Commerce, Downtown Association) to receive subsidies on charging rates that allow City cost recovery and cheap charging for visitors d. Full cost recovery for all other users 3. A program that illustrates how the project supports full implementation of the Downtown Concept Plan. Substantial economic development opportunities exist through implementation of the Downtown Concept Plan, including through reclaiming on-street parking spaces for commerce and recreation and through enhancing active transportation accessibility. An approach that allows projects to shift their EV charging space requirements to the Palm/Nipomo garage could achieve objectives related to providing chargers without compromising the implementation of the plan. 4. A marketing campaign to drive utilization – The existing Marsh street chargers are a substantial investment, but they have not been supported with marketing, signage, or site aesthetic enhancements. A collaboration with tourism and downtown organizations, as well as with the City’s communications resources, could help drive greater utilization. Conclusion With uncertainty regarding the future public demand for EV charging and a bid market that is producing much higher than anticipated construction costs, it is hard to justify increasing project scope for infrastructures that may never be fully utilized. The electrical design recommendations proposed by staff above was the result of weighing cost of implementation, current usage, and future projected use of green technologies Further implementation of the Downtown Master Plan also includes the construction of additional parking structures and will provide new opportunities for implementing green technologies should the cost-benefit analysis change in the future.