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Rancho Palos Verdes council directs staff to study Level 3 EV chargers, privatization and pricing assumptions
Summary
After a two-hour discussion about costs and utilization, council voted to ask staff to return with data on Level 3 upgrade costs, utilization assumptions, benchmarking of peer subsidies, conduit limitations and privatization options for Ladera Linda EV charging.
Rancho Palos Verdes city council voted Jan. 20 to direct staff to refine the analysis of electric-vehicle charging at Ladera Linda Community Park and to return with options focused on Level 3 (fast) charging and alternative delivery models.
Staff presented a cost-of-service study showing the city’s existing grant (Department of Energy equipment rebate voucher, up to $76,370) covers charging equipment but not electrical upgrades. Staff’s revised estimate, using a 50% utilization assumption for seven Level 2 chargers, produced a full-cost recovery rate of 63¢ per kilowatt-hour; staff noted Matrix Consulting’s original model assumed 100% utilization and produced a lower rate (47¢/kWh). The presentation said upgrading to Level 3 would require trenching, larger conduit and panel upgrades (estimated electrical-upgrade construction costs between $64,000 and $90,000), and equipment/installation costs that could raise the total to roughly $155,400 for one dual-port Level 3 charger or $260,000 for three dual-port units.
"Staff is recommending the following: award the PSA with [vendor] to procure and install Level 2 chargers, receive and file the Level 3 cost update, establish a base fee of 63¢ per kilowatt hour and return with a resolution to adopt EV charging fees," Project Manager Vanessa Hefner told the council.
Several council members pushed back on the assumptions underlying utilization and on the economic case for Level 2. "I really think the utility here would be in a Level 3 station," Council Member Bradley said, urging staff to identify the maximum number of Level 3 units that could fit under current grant limits without destructive trenching and to explore leasing or privatization so the city avoids long-term O&M and payment-collection costs.
Council Member Bradley moved — and colleagues seconded — a set of directions asking staff to: (1) benchmark how neighboring agencies are setting rates and whether their programs are subsidized; (2) ask the electrical engineer what additional conduit/copper can be pulled without full trenching and what Level 3 capacity is feasible on-site; (3) disclose the assumptions behind the 50% utilization rate and provide a sensitivity analysis showing revenue impacts at lower utilization; and (4) explore privatizing installation/operation and revenue-share models. The motion passed on roll call (Yes: Bradley, Lewis, Mayor Pro Tem, Mayor Seo; No: Ferraro).
Next steps: staff will return with the requested technical and financial detail and a sensitivity analysis before the council adopts any fee schedule or decides how many chargers to install and which technology to prioritize.
