Item Coversheet

Resolutions - C7  S




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:July  26, 2023
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 2-367(E) OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AGREEMENTS WITH FLORIDA POWER & LIGHT (FPL), FOR THE INSTALLATION OF LEVEL 3 ELECTRIC VEHICLE (EV) FAST-CHARGING STATIONS, AT THE SOLE COST OF FPL (FPL PROGRAM), AT CITY PARKING LOTS, WITH THE AGREEMENT FOR EACH PARKING LOT HAVING AN INITIAL TERM OF TEN (10) YEARS, WITH THREE (3) ADDITIONAL ONE-YEAR AUTOMATIC RENEWAL TERMS, UNLESS EITHER PARTY OPTS NOT TO RENEW THE AGREEMENT; AND APPROVING THE INSTALLATION OF FOUR (4) LEVEL 3 FAST-CHARGING STATIONS AT EACH OF THE FOLLOWING PROPOSED CITY PARKING LOTS: 401 ALTON ROAD (P5); 2660 COLLINS AVENUE (P55); AND 1493 MICHIGAN AVENUE (P10), SUBJECT TO FPL COMPLETING ITS FEASIBILITY STUDIES; AND FURTHER AUTHORIZING THE CITY MANAGER TO MODIFY THE INITIAL PROPOSED LOCATIONS, APPROVE NEW PARKING LOT LOCATIONS, AND DETERMINE THE NUMBER OF EV FAST-CHARGING STATIONS FOR EACH PARKING LOT, AS NEEDED, WITH THE GOAL OF PROVIDING EV FAST-CHARGING SERVICES UNDER THE FPL PROGRAM AT CITY-OWNED PARKING LOTS IN THE NORTH BEACH, MIDDLE BEACH, AND SOUTH BEACH AREAS OF THE CITY.

RECOMMENDATION

It is recommended that the Mayor and City Commission waive formal competitive bidding by 5/7ths vote and approve the Resolution authorizing the City Manager to execute an agreement with Florida Power & Light (FPL) for the installation and maintenance of Level 3 electric vehicle (EV) fast-charging stations at designated City parking lots at the sole cost of FPL.

BACKGROUND/HISTORY

On January 20, 2022, the City Commission adopted Resolution 2022-32000, directing the Administration to evaluate opportunities and develop a plan to expand electric vehicle charging stations throughout the City.  The Administration was directed to identify potential locations for the expansion of charging stations, estimate cost of installation and maintenance, as well as funding sources for the initiative, including grant funding.

 

FPL approached the City with information about their EVolution program, which would facilitate installation of Level 3 charging stations at designated municipal parking facilities at no cost to the City. The Parking and Facilities and Fleet Management departments participated in multiple information gathering meetings with FPL. Following review of the FPL program and based on the benefits to the City, the City Attorney’s Office reviewed FPL’s proposed contract.  The purpose was to enter into an agreement with FPL at no charge to the City, for the installation and maintenance of transformers, needed infrastructure and Level 3 charging stations at mutually identified City parking lots. 

 

Tangentially, the City is in the process of awarding a contract for the installation, maintenance and operation of Level 2 chargers at multiple municipal parking facilities. The City has also entered into an agreement with Tesla for the installation, maintenance and operation of fast chargers for Tesla vehicles. Although the City has a network of Level 2 chargers, given the heightened level of  adoption of electric vehicles and the projected accelerated growth of the industry, the City is pursuing the installation of Level 3 chargers for faster EV charging with the purpose of promoting the continued expansion of EV’s in the City.   

ANALYSIS

There are three (3) levels of EV charging stations:  Level 1, Level 2 and Level 3.  Levels are based on electric current, voltage and charging speed. Level 1 and Level 2 charging stations operate on alternating current (AC) and provide slower charging speeds.  Level 1 chargers are primarily used in residential settings and operate at the slowest charging speeds.  Level 2 chargers vary on charging speed depending on voltage.  Level 3 chargers operate on direct current (DC), requiring more voltage but also providing the fastest charging speed.  Depending on voltage and vehicle, a Level 3 charger could fully charge a vehicle in as little as 15 minutes as compared to hours required by Level 2 chargers. 

 

Level 3 chargers require the installation of transformers and related infrastructure to support the power necessary to operate the chargers.  The City and FPL have reviewed parking facilities, aiming to install Level 3 chargers to serve the entire City (South, Middle and North Beach).    Three (3) lots have been identified for the installation of FPL Level 3 charging stations:  P5 located at 401 Alton Road, P10 located at 1493 Michigan Avenue, and P55 located at 2660 Collins Avenue.  Additional locations may be identified following evaluation of the sites.

 

Summary of Terms

Terms for the agreement are summarized as follows, as further described in Attachment A.

 

Term: Initial ten (10)-year term

 

Renewal(s): Three (3) one (1)-year automatic renewal terms, unless either party opts not to renew.

 

Locations/Expansion: Proposed installation at three (3) parking lots; P5 located at 401 Alton Road, P10 located at 1493 Michigan Avenue, and P55 located at 2660 Collins Avenue.

 

The City Manager would be authorized to modify the initial proposed locations, approve new parking facility locations, and determine the number of EV fast-charging stations for each location.

 

FPL’s primary obligations: installation, operation, maintenance, and replacement of EV Level 3 fast-charging stations and related equipment at FPL’s sole expense at mutually agreed parking facilities. Collection of electricity consumption fees and payment of consumption costs for electricity dispensed from equipment.

 

City’s primary obligations: Providing parking facilities for installation and operation of EV fast-charging stations by FPL at City Manager’s sole discretion, assisting with obtaining necessary permits, licenses and approvals for the installation and operation of the fast-chargers, providing FPL right of first refusal for installation of additional Level 3 fast-charging stations at parking facilities where FPL stations have been installed.

 

User Fees (for charging): Rates are currently established at .30 per kilowatt hour plus applicable taxes, as may be increased from time to time, in accordance with the Florida Public Service Commission.

 

Maintenance: FPL will maintain units in working condition.

 

Termination Rights: Both parties have a right to terminate the agreement. City agrees to pay for unamortized costs, should it terminate the agreement during the initial term.

SUPPORTING SURVEY DATA

According to the 2022 Community Satisfaction Survey, 59.4 percent of residents responding to the survey are informed about local climate change issues. Promotion of EV chargers in Miami Beach will assist in addressing environmental concerns related to climate change.

FINANCIAL INFORMATION

N/A

CONCLUSION

The installation of Level 3 fast-charging stations citywide will help to promote EV expansion by providing fast-charging alternatives. Furthermore, EV’s improve air quality by reducing vehicular emissions.  The program, however, requires significant infrastructure investment, which FPL will assume at no cost to the City.  Entering into an agreement with FPL would be in the City’s best interest; it would require the City Commission to waive by 5/7ths vote, the formal competitive bidding requirement. Agreements with FPL would have an initial term of ten (10) years with three (3) additional one-year automatic renewals, although either party may choose not to renew.

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Environment & Infrastructure - Make existing and new government buildings, assets and fleet efficient, sustainable and resilient.
Legislative Tracking
Parking
Sponsor
Commissioner Alex Fernandez

ATTACHMENTS:
Description
Resolution