HomeMy WebLinkAboutStaff Report 2311-2223CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, March 18, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc.
(CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024
to April 15, 2027. CEQA Status - Not a Project. Consent Questions
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: March 18, 2024
Staff Report: 2311-2223
TITLE
Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc. (CLEAResult)
Extending the Contract Expiration Date by Three Years From April 16, 2024 to April 15, 2027.
CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends the Council approve and authorize the City Manager, or designee, to execute
the attached Amendment No. 2 to extend the third-party Electric Vehicle (EV) Program Contract
(C19171513) with CLEAResult by three years from April 16, 2024 to April 15, 2027 to finish EV
charger installations that have been moving through the Electric Vehicle Technical Assistance
Program (EVTAP). The not-to-exceed amount of $736,995 in the original contract will remain the
same.
EXECUTIVE SUMMARY
EVTAP is the key EV charger customer program developed to assist multi-family property, non-
profit, school, and small and medium business customers navigate the process of designing,
permitting, and installing EV chargers. CLEAResult was selected as the program administrator in
April 2019 to provide technical assistance to eligible customers. However, due to the COVID
pandemic and longer than anticipated project timelines, CLEAResult is unable to reach the
program goal of installing 250 ports at 30 sites by the current contract end date of April 2024.
Thus far, CLEAResult has facilitated the installation of EV chargers at 4 non-profits, 1 school, and
2 multi-family customer sites (totaling 81 ports). There are another 4 projects in the process of
being installed by April 2024 (estimated 94 ports). Based on additional projects in the pipeline,
CPAU staff and CLEAResult are confident that with a contract extension, EVTAP could facilitate
EV charger installations at 19 additional sites (estimated 250+ ports), bringing the total number
of sites with completed installations to 30 by April 2027. This could be achieved within the
$736,995 original contract limit approved by Council in May 2019.
BACKGROUND
Transportation currently accounts for roughly two-thirds of Palo Alto’s greenhouse gas
emissions. To achieve an 80% emissions reduction from 1990s levels by 2030 (80x30 goal) and
prevent catastrophic climate change, drastic changes must be made in the transportation sector
along all possible avenues. This requires reductions in the number of vehicle miles traveled,
particularly in single occupancy vehicles, and electrification of the remaining vehicles traveled to
the greatest extent possible. The April 2021 Sustainability and Climate Action Plan (S/CAP) impact
analysis showed a pathway to achieving the 80x30 goal that involved Palo Alto reducing its
vehicle emissions from 300,000 metric tons (MT) to 120,000 MT. Reaching this ambitious target
will require 85% of new vehicle sales to be EVs and 44% of all vehicles to be EVs by 2030.
It is critical that the City provide programs to help transition drivers from fossil fuel vehicles. Palo
Alto single-family households are embracing EVs. Based on the vehicle registration data obtained
from the Department of Motor Vehicles (“DMV”), an estimated 28.8%of Palo Alto single-family
households were driving an EV in 2022. However, it has been a challenge for residents living in
multi-family properties – over 40% of the City’s population – to switch to an EV due to the lack
of available charging infrastructure at the majority of the over 800 multi-family (MF) properties
in the City. Surveys repeatedly show that 70-80% of EV drivers charge at home, and that the
number one reason MF residents do not switch to an EV is the lack of charging infrastructure at
their place of residence. As of 2022, approximately 6.6% of MF households drive an EV, as shown
by DMV registration data. To support adoption with this customer segment, we have set the goal
to facilitate the installation of Electric Vehicle Supply Equipment (EVSE) at 10% of the City’s 800
MF properties by 2025.
To support multi-family residents, on April 15, 2019, the City entered into a contract with
CLEAResult to provide EVSE-related technical assistance to qualifying non-profit, schools, small
to medium businesses and multi-family property customers. The contract was approved by
Council on May 6, 20191 with an effective date of April 15, 2019. The goal of the agreement was
to assist customers in successfully navigating the various stages of the EVSE installation, including
site evaluation, engineering support, layout design, contractor bidding and selection process,
permitting support, installation project management and the securing of rebates.
In December 2021 the contract was amended to allow an additional 2 years to meet the original
3-year program goals. While there was no change to the maximum compensation payable under
the contract, the term was amended to make funds available over a 5-year period ending on April
15, 2024. However, this extension was not enough to jump-start the program due to the chilling
effect that COVID had on the progress of the program. COVID impacted the entire EV industry
which has taken longer to bounce back. Some of the reasons for the slower uptake include:
1 Council staff report # 10287: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2019/final-approved-report-id-10287.pdf?t=58991.87
1. The manufacturing sector had slowed down, resulting in the ability to get EV charger
equipment and transformers on a timely basis;
2.Properties were in “survival mode” during COVID focusing more on maintaining essential
services rather than expanding their resources on outward facing projects; and
3.The “work from home” trend reduced commuting and led to less demand for EVs,
resulting in properties feeling less pressured to install EV chargers.
While these trends have reversed post-COVID, the resurgence has not been as fast as was
originally anticipated when the first amendment was passed. Therefore, staff is requesting that
the CLEAResult contract be extended for an additional three years to be able to reach their
original goals.
ANALYSIS
Since the inception of the contract in April 2019, CLEAResult has accomplished the following:
•Enrolled 154 sites which signed a Program Participation Agreement.
•Conducted 93 Technical Site Visits by CLEAResult engineers to inventory electrical
infrastructure and analyze parking layouts.
•Prepared and presented 88 Charging Evaluation Reports (“CER”) which include electrical
load calculations, transformer loads, EVSE installation scenarios and pricing estimates.
•Of these customers:
o 7 have completed EVSE installations with CLEAResult assistance (2 MF, 4
nonprofits, and 1 school)
o 4 EV charger projects are expected to be completed by April 2024 (2 MFs and 2
non-profits)
o 49 customers remain active, of which an estimated 19 customer sites are
expected to be able to install chargers by April 2027.
Each project takes an average of 2 years or more to complete.
Continuing to use CLEAResult’s expertise and relationships makes it more likely that the City will
achieve the EVTAP program goals. They are subject matter experts in EVSE installations and have
deep knowledge of every aspect of EVSE project implementation. Nurtured over many months,
CLEAResult account managers have established strong working relationships with the multi-
family, school and non-profit customers currently enrolled in EVTAP. They also have intimate
knowledge and understanding of each property’s needs, as well as the technical and funding
limitations of each site. CLEAResult is positioned to be the best possible partner to bring these
projects to completion.
The goal of this extension is to ensure that 30 projects are completed by the end of the 8-year
term. Of those, 11 sites are expected to be completed before the extension goes into effect.
The other 19 sites currently in the pipeline will be the focus during the 3-year extension period,
with the goal for all 30 sites to have EVSEs operational by the end of the recommended
contract extension period through April 2027. The extension would provide CLEAResult the
necessary time to assist these customers complete installations to meet the Program goal of 30
sites.
FISCAL IMPACT
No additional funds are being sought. With this proposed contract extension, it is projected that
the City will pay CLEAResult up to $299,472, which is the remaining portion of the contract. The
total not-to-exceed amount of the contract will remain at $736,995.
It is anticipated that 0.5 FTE of staffing resources would continue to be required to manage the
EV Charger Technical Assistance Program and this contract, as well as oversee the approval and
payout of the EV charger incentives. Staffing will be from existing resources.
STAKEHOLDER ENGAGEMENT
Staff provided an update to the S/CAP Working Group on October 17, 2023 on the progress of
the EVTAP and EV Charging Rebate Program. Program updates are also provided regularly in the
Utility Advisory Commission (UAC) Quarterly Reports.
ENVIRONMENTAL REVIEW
CLEAResult provides only technical assistance for EV charger installation projects under this
contract and is not responsible for the installation of chargers; that is the responsibility of the
customer and installer hired by the customer. Typically installing EV chargers at an existing
customer site does not trigger California Environmental Quality Act (CEQA) review. Providing
technical assistance is exempt from the California Environmental Quality Act (CEQA) because it
can be seen with certainty that providing technical assistance on a consulting basis will not result
in any environmental impacts.
ATTACHMENTS
Attachment A - CLEAResult Consulting, Inc. Contract Amendment No 2. C19171513
APPROVED BY:
Dean Batchelor, Director Utilities
Staff: Marina Kipnis, Sustainability Programs Administrator
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Dear Mayor and Council Members,
On behalf of City Manager Ed Shikada, please see staff responses below for questions from
Council Member Tanaka on the Monday, March 18 Council Meeting.
Item 6: Adoption of a Resolution Approving an Edison Electric Institute Master Power
Purchase
1. Can you explain the specific criteria used to select Silicon Valley Clean Energy for this
master agreement over other potential suppliers and what positive benefits or qualitative
changes they could bring to the group of energy suppliers?
Staff response: SVCE was not selected over any other potential suppliers, they were the
only potential supplier who inquired about executing an EEI master agreement with us and
completed negotiations on such. The City has an open process for getting enabled with new
electric and gas master agreement counterparties, in which any credit-worthy supplier who
will accept the City’s must-have master agreement provisions is welcome become a new
master agreement supplier. SVCE met these criteria, and staff hopes they will become an
active participant in the City’s solicitations for electricity products, yielding higher levels of
competition and better pricing for the City in these efforts.
2. Was there an impact assessment on how this agreement would affect the city’s current
and future energy portfolio, more specifically analyzing the potential benefits or
drawbacks of diversification of energy suppliers?
Staff response: The City’s pool of enabled electricity counterparties has dwindled
somewhat in recent years, as some formerly active counterparties have decided to stop
engaging in the California energy markets. As such, staff sees only benefits (and no
drawbacks) to expanding the City’s pool of active energy suppliers.
Item 7: Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc.
1. Was an in-depth demand analysis based on empirical data that suggested the future need
for EV charging stations, and if so, what were the key findings that suggested that current
EV charging stations were being optimally used and Palo Alto needs more chargers?
Staff response: There has been an internal preliminary assessment made about EV charger
needs. This 2021 internal assessment suggests the need for multiple fold increase in
chargers by 2030 to meet demand in alignment with the goals of the S/CAP, which is to
reduce emissions 80% by 2030. This need for a robust increase in EV charging infrastructure
is in line with state’s EV charger needs assessment for meeting the 7 million EVs by 2030
goal. An update to the Palo Alto estimate is currently underway and results available in
early 2025.
2. What measures have been taken by the city to assess the current electrical
infrastructure's capability to support the increased load from additional EV chargers?
Staff response: An assessment was made on the electrical infrastructure needs to support
both EV and building electrification needs. This analysis suggested substantial upgrade
needs in residential neighborhoods. The Grid Modernization project, estimated at $200M+,
is designed to upgrade the system to meet this increased need. At the February 12, 2024
Council Study Session on the Reliability and Resiliency Strategic Plan, various elements of
grid modernization were discussed, including the capacity of the system to handle
electrification. For the specific scope involved with this contract, site-specific analyses are
conducted to ensure adequate infrastructure for individual installations.
Link to February 12, 2024 Study Session: Reliability and Resiliency Strategic Plan for the
City’s Electric Utility:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4071&meetingT
emplateType=2&compiledMeetingDocumentId=9079
3. Should the proposed approval go through, what impact would it have on Palo Alto
residents currently dependent on EV charging stations, particularly concerning the cost of
recharging and the availability of charging facilities?
Staff response: There will be no impact on electricity rates. The EV program is currently
funded solely from revenues derived from the state’s LCFS program, and not from rate-
payer funds. While the City does not manage the cost of charging as that is the domain of
property owners and EV charging companies to set pricing parameters, this contract
increases charger availability for the Palo Alto community. One of the S/CAP goals is to
increase access to chargers for residents of multi-family properties by 10% by 2025. This
contract puts the City on track to increase access from 4.7% currently to the 10% goal.
Item 8. Approval of a Professional Services Agreement (Contract No. C24190819)
1. Could you detail the mechanisms and systems in place for the Palo Alto community to
provide feedback on Pets In Need and the services it may provide, especially since the
incident of 7 puppies dying under PIN care during the previous contract? How will this
feedback be considered and integrated into ongoing service evaluation and improvement
efforts?
Staff response: Community members can provide feedback directly to City staff, the City
Manager or City Council. Pets in Need has been discussed four times at Council since
February 2022, which provided opportunities for feedback from the community. All
comments received are considered and some have influenced the current agreement, for
example the policy on handling of feral cats. City and PIN staff meet regularly and any
concerns needing resolution are discussed at that time.
2. How were alternative service providers evaluated for animal sheltering services in Palo
Alto following the operational challenges with Pets In Need, beyond the City already
having prior contact with the business, and what considerations were made to identify a
more cost-effective and efficient solution to fulfill the mandatory service requirements?
Staff response: Completion of this contract was at the direction of City Council. Staff
presented options for alternative service delivery models on February 14, 2022, and the
Council directed staff to proceed with negotiations for a long-term agreement with Pets in
Need. A detailed analysis of an in-house model for shelter operations was presented to
Council on March 27, 2023.
Item 10: Approval of Amended Palo Alto CLEAN Program Rules and Requirements
1. Given the significant amendments proposed to the Palo Alto CLEAN Program, especially
regarding the rate structure of renewable energy resources, can you provide explicit
details on the analytical processes used to determine the cost-effectiveness of these rates
and how they fit into the current renewable energy market?
Staff response: Staff’s proposed changes to the CLEAN program are not intended to make
any significant modifications to the overall program rate structure. Under the proposed
staff changes, the program price would remain 16.5 cents/kWh for solar resources up to the
participation cap of 3 MW (also unchanged), and the only change would be a slight increase
to the “avoided cost” rate that is available to all non-solar renewable resources and to solar
resources after the 3 MW participation cap is reached. For example, the contract price
available to solar resources that select a 15-year contract term would increase from 8.8
cents/kWh to 9.5 cents/kWh, resulting in a cost impact of less than $25,000 per year to the
City. These routine updates to the avoided cost level have been carried out numerous times
in the years since the program’s launch.