Agda Pkt 2025.12.08 Joint SA PFA

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Page 2 of 4 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org BACKGROUND On October 23, 2023, the City Council adopted Ordinance No. 2530 to update specific fees for the City Manager’s Office, Community Development and Transportation, Fire, Library, Parks, Recreation and Community Services, Police, Public Works, and Special Events. The adopted fees were recommended following a comprehensive study by the Matrix Consulting Group (Matrix). The purpose of conducting the fee study was to identify the actual cost of providing certain City services and to develop justified fee recommendations for full-cost recovery, as the last comprehensive citywide fee study was performed in 2017. One of the fees evaluated in the study was the Electric Vehicle (EV) charging fee for City-owned EV charging stations. Due to changes in legislation, the City was required to change its method of collecting the payment from an hourly to a kilowatt-hour (kWh) based fee. The Matrix study resulted in a full-cost recovery calculation of $2.23 per kWh, which the City Council adopted through Ordinance No. 2530. Although the adopted EV charging fee was based on the City’s total cost of service at the time, staff recognized that it was substantially higher than the fees charged by public and private charging operators in the area and would likely affect affordability for community members who wished to charge their vehicles at City facilities. Therefore, staff presented the Council with a plan to implement the fee with a phased approach as shown below. Th City Council ultimately adopted this plan through Resolution No. 16194 on December 18, 2023. Year EV Charging Fee % of Adopted Fee 2024 $0.56/kWh 25% 2025 $1.12/kWh 50% 2026 $1.67/kWh 75% 2027 $2.23/kWh 100% In 2024, staff did not receive any negative feedback from customers, as the rate of $0.56 per kWh was comparable to the rates charged at other public and private locations. However, beginning in 2025, staff started receiving feedback from users who were displeased with the increased rate of $1.12 per kWh, which, in their opinion, was too high. In an effort to identify potential ways to address user concerns, PWS contracted with Matrix to re-evaluate the EV charging rate using updated cost and usage data. Based on the EV Charging Fee Analysis Memo (Attachment B), Matrix determined that, even with current increases in usage compared to the data analyzed in the previous study, the City would need to charge $1.38 per kWh to continue administering City-owned EV chargers and achieve full cost recovery. The City’s current fee of $1.12 per kWh is lower than the full-cost recovery calculation. Any effort to make the rate more competitive while maintaining the current business model would require the City to place a greater cost burden on its general fund. As part of the study, City staff also requested that Matrix evaluate a proposal that would allow the City to outsource the administration and maintenance of chargers altogether to an outside consultant who would agree to cap the rate at $0.70 per kWh. Matrix determined that this approach was the most viable option 7.B. - Page 2 of 8 129