REQUEST FOR DECISION
DATE: February 21, 2017 Report No. DEV-17-012
TO: Laurie Hurst, Chief Administrative Officer
FROM: Marlene Lagoa, Community Development Coordinator
SUBJECT:
Title
Electric Vehicle Charging Station User Fee - Amendment to Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874
End
RECOMMENDATION:
Recommendation
That Council:
1. give first, second and third reading to the Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874, Amendment Bylaw, 2017, No. 2889; and
2. direct that all revenue from the collection of electric vehicle charging user fees be deposited into the Sustainability Reserve Fund.
Body
RELEVANT POLICY:
Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874
Sustainability Reserve Fund Bylaw, 2009, No. 2714
STRATEGIC RELEVANCE:
This Request for Decision is not directly related to any specific Council strategic priority.
BACKGROUND:
The purpose of this report is to propose the first, second, and third reading of the Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874, Amendment Bylaw, 2017, No. 2889. The amendment is to introduce a user fee of $1.00 per hour for electric vehicle (EV) charging.
Information on the increasing use and demand of the Level 2 EV charging stations was presented at the January 16, 2017 Regular Meeting of Committee of the Whole (COTW). At that meeting, staff was directed to prepare a report for Council’s consideration to introduce a fee for use of EV charging station where revenue received is deposited into the Sustainability Reserve Fund.
Attached as Appendix A is the Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874, Amendment Bylaw, 2017, No. 2889.
ISSUES:
1. Rationale for Selected Option
Initially the uptake on the EV charging station was low with the Township’s Nissan Leaf accounting for approximately 43% of the station’s use in kWh; however, the demand for the station has steadily increased and the Township’s kWh consumption has dropped to only 7%. The biggest concern is that 62% of the station’s kWh consumption is attributed to “high” users - EV drivers who have used the station 10 or more times in a calendar year.
Attached as Appendix B are three tables and one chart showing the demand and cost of operating the EV charging station by year and user.
The increased demand for the EV charging station has been noted by staff on several occasions due to the following occurrences:
- Increased frequency of both charging stations being in use and other EV drivers being unable to plug-in (including the Township’s Nissan Leaf);
- Disagreements at the station between drivers (e.g. use of the station by hybrid plug-in electric vehicle vs. 100% electric battery vehicle); and
- A few incidences where the charging session for the Township’s Nissan Leaf was disconnected by an EV driver wanting to charge.
It is generally expected that 90% of EV charging will take place at home. The role of public EV charging stations is to decrease “range anxiety” - fear of running out of charge while on the road - on days when multiple trips are completed or when traveling out of town. However, not all EV drivers have the infrastructure, or permission, to plug-in at their residence (e.g. apartments and condominiums). By charging a fee, the Township can more equitably provide a neighbourhood EV charging station for residents who are unable to charge their vehicles at home.
2. Organizational Implications
The setup of the new user fee for EV charging, including all communication, will be implemented by Development Services staff.
The collection of quarterly revenue reports and money deposits will be administered on an ongoing basis by Financial Services staff.
3. Financial Implications
The purchase of the EV charging station included a 5 year contract for management and telecom service. As such, the station is already capable of collecting payment. Beginning in 2018 there will be an annual fee of $150 per station (not including the cost of electricity).
The current service agreement dictates that 15% of any user fees collected will go to the station service provider, AddEnergie. Based on a user fee of $1 per hour, the Township would receive revenue at $0.85 per hour. Staff anticipate that demand for the station will decrease significantly once a user fee is implemented. The estimated revenue over the first 12 months is $500.
If Council decides to deposit all revenue from the collection of user fees into the Sustainability Reserve Fund, the cost of electricity will continue to be funded from general operating.
4. Sustainability & Environmental Implications
Public EV charging station infrastructure encourages the adoption of zero emission vehicles. The purpose of introducing a user fee is to improve the overall availability of the station for current and prospective EV owners.
5. Communication & Engagement
There are a total of 30 FLO (AddEnergie) EV charging stations in the region including stations owned by the City of Victoria, District of Saanich, and District of Oak Bay. These municipalities have all been informed that the Township is considering implementing a user fee of $1 per hour.
Once the Bylaw amendment is adopted, EV users will be given at least three months notice of the new fee. Attached as Appendix C is a draft communication plan (based on a user fee implementation date of July 1, 2017).
ALTERNATIVES:
1. That Council give first, second and third reading to the Fees and Charges (Miscellaneous) Bylaw, 2016, No. 2874, Amendment Bylaw, 2017, No. 2889; and direct that all revenue from the collection of electric vehicle charging user fees be deposited into the Sustainability Reserve Fund.
2. That Council make further amendments to the Fees and Charges (Miscellaneous) Bylaw , 2016, No. 2874, Amendment Bylaw No. 2889, and give first, second and third reading as amended; and direct that all revenue from the collection of electric vehicle charging user fees be deposited into the Sustainability Reserve Fund.
3. That Council request further information from staff.