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Page 3 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />if the City wanted to lower operating costs while still providing EV charging capability at City facilities. <br />Staff evaluated this proposal solely for the purpose of comparing the City-administered and outsourcing <br />business models. Staff will still need to conduct further analysis before pursuing any formal agreement or <br />solicitation for proposals from external service providers. <br />ANALYSIS <br />The primary takeaway from the current Matrix study is that the City cannot achieve competitive EV <br />charging rates by maintaining its existing business model. The implementation of the City’s EV chargers <br />over a decade ago was not intended for profit generation, but rather to incentivize the adoption of electric <br />vehicles at a time when EV technology was still in the early stages of acceptance. Over the past decade, <br />the number of EV users in the area has grown exponentially, and the number of providers offering <br />affordable charging solutions has grown accordingly, primarily due to their ability to leverage economies <br />of scale in keeping costs down. Unfortunately, the City does not have this benefit. The City’s Utilities Sub- <br />Committee was presented with the preliminary findings of the Matrix study on September 8, 2025, and <br />provided feedback that staff should further explore the outsourcing option. <br />As staff work through the logistics of finding a suitable solution to recommend outsourcing, they must still <br />address the fact that the current EV charging rate will increase to $1.67 per kWh on January 1, 2026, as <br />adopted in the prior Resolution. Staff is confident that it can perform the necessary due diligence to bring <br />forth a suitable recommendation to the City Council for consideration in the coming year. Therefore, staff <br />proposes amending the phase in plan to hold the EV charging rate at the current rate of $1.12 per kWh <br />through December 31, 2026, with the next and final phase effective January 1, 2027, at the rate of $1.38 <br />per kilowatt hour. This action will enable the City to continue recovering the majority of its costs while <br />staff identifies the most economically viable solution to present to the City Council for consideration. This <br />action also incorporates updated cost recovery information from the recent Matrix study. <br />Staff recommends adopting a Resolution amending the phase in for the electric vehicle charging fee for <br />City-owned charging stations to promote community benefits and allow staff time to identify service- <br />delivery alternatives while recovering operational costs. <br />EQUITY IMPACT STATEMENT <br />All City actions are assessed for impact. Because this item is on the consent calendar, this section indicates <br />assessment process, not findings. The anticipated impact of this policy, program, or action has been <br />assessed by reviewing data related to a standard or emerging best practice. <br />FISCAL IMPACT <br />Revenue from City-owned EV charging stations will continue to be deposited in the City’s Equipment <br />Services Fund. Any additional funding for operating expenditures will be allocated from the General Fund. <br />7.B. - Page 3 of 8 <br />130