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Home My WebLink AboutR-11361 making findings on energy savings and determining other matters in connection with Energy Conservation FacilitiesR 11361 RESOLUTION NO. 11361 (2022 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS AND DETERMINING OTHER MATTERS IN CONNECTION WITH ENERGY CONSERVATION FACILITIES WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources; and WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at its facilities; and WHEREAS, electric motors are substantially more efficient than internal combustion engines and the cost per mile of an electric vehicle is substantially cheaper than an internal combustion vehicle (as illustrated in analysis, attached here as Exhibit A and made part hereof by this reference); and WHEREAS, Exhibit A includes analysis showing that the anticipated cost to the City for using electrical energy for electric vehicles will be less than the anticipated cost of using fossil gas energy for vehicles; and WHEREAS, the City proposes to issue a Request for Proposal and execute an agreement (“Agreement”) with the preferred vendor (“Vendor”) for the design-build procurement method of the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure Project; and WHEREAS, pursuant to Government Code section 4217.12(a), this Council held a regularly scheduled public hearing on September 20, 2022, public notice of which was given not less than two weeks in advance, to receive public comment, information, and staff input on the proposed project and procurement process. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The terms of the Agreement and related agreements are in the best interests of the City. DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11361 (2022 Series) Page 2 R 11361 SECTION 3. In accordance with Government Code section 4217.12, and ba sed on data provided by Exhibit A, public comment, and staff input received at the public hearing, and information provided to Council in connection with the public hearing, the Council finds that the anticipated cost to the City for electric vehicle charging stations to be installed and operated under the Agreement will be less than the anticipated marginal cost to the City for operating fossil fuel energy vehicles that would have been used by the City in the absence of the installation and operation of electric vehicle charging stations pursuant to the Agreement. SECTION 4. The City Manager and City Attorney are hereby authorized and directed to negotiate any further changes, insertions and omissions to the Agreement as they reasonably deem necessary, and thereafter to execute and deliver the Agreement following the Council’s adoption of this Resolution. The City Manager is further authorized and directed to execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this Resolution and said Agreement. SECTION 5. The City Engineer is hereby authorized and directed to negotiate any amendments to Agreement as they reasonably deem necessary to complete the work, if within the available project budget. SECTION 6. Environmental Review. The City Council hereby determines that the execution of an Agreement with Vendor is statutorily and categorically exempt from environmental review on the basis that the project proposes minor alterations to existing public facilities for installation of electric vehicle chargers (CEQA Guidelines § 15301). DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA Resolution No. 11361 (2022 Series) Page 3 R 11361 SECTION 7. City staff are hereby authorized to file and process a Notice of CEQA Exemption for the project in accordance with CEQA and the State CEQA Guidelines, and the findings set forth in this Resolution. Upon motion of Council Member Pease, seconded by Council Member Marx, and on the following roll call vote: AYES: Council Member Marx, Pease, Shoresman, Vice Mayor Christianson, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 20th day of September 2022. ___________________________ Mayor Erica A. Stewart ATTEST: __________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ___________________________. ___________________________ Teresa Purrington City Clerk DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA 9/26/2022 | 11:22 AM PDT Memorandum Date: August 23, 2022 To: Public Works From: Office of Sustainability Subject: Fleet Electric Vehicle Cost Savings Analysis Background Staff utilized the Pacific Gas & Electric Company (PG&E) EV Fleet Electrification Planning calculator1 to determine the projected cost savings associated with electric fleet vehicles. The PG&E Fleet calculator was created to assess vehicles for one facility and assumes a 1-to-1 ratio when replacing fossil fuel vehicles with their electric counterparts. The calculator also assumes steady year-long operations, with no variability week to week. Staff used ten electric passenger sedan vehicles as the input for analysis to serve as a basic proxy for understanding the potential savings associated with the installation of five new Level 2 EV (dual port) charging stations capable of charging ten electric vehicles. Cost Savings Analysis Staff adjusted the calculator inputs, which included parameters related to vehicle type and quantity, EV charger construction costs, fuel prices, and other entity characteristics, to best match the City’s circumstances. Based on these inputs (displayed on page 9), the calculator produced the projected cost savings associated with ten electric passenger sedans when compared to their fossil fuel counterparts. The savings were presented across the following categories: fuel, vehicles (purchase and resale), operations (maintenance and insurance), construction, grant funding, and Low Carbon Fuel Standard credits. With all savings combined, the cumulative cost of electric fleet vehicles becomes cheaper than the cost of an equivalent fossil fuel fleet vehicles after just 1.8 years. In the example of ten electric passenger sedans, the calculator estimates $394,000 in total cost savings over the life of the vehicles. Conclusion While electric fleet vehicles have higher upfront costs when compared to their fossil fuel vehicle counterparts, they offer significant savings on fuel and maintenance over the lifetime of the vehicle. Electric fleet vehicles are also eligible for various forms of grant funding, as well as Low Carbon Fuel Standard credits, which contribute to additional savings. The cost savings analysis displayed in the following pages demonstrates that the cumulative cost of an electric fleet vehicle becomes cheaper than the cost of an equivalent fossil fuel fleet vehicle over time. 1 https://fleets.pge.com/tco/ Exhibit ADocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA DocuSign Envelope ID: 710B84D5-FDCD-42BC-ACAD-AC773F7935AA