Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
FEBRUARY 20, 2025
Subject
SUBJECT: ELECTRIC VEHICLE CHARGING STATIONS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to solicit competitive negotiations Request for Proposals (RFPs), pursuant to Public Utilities Code (PUC) §130242 and Metro’s procurement policies and procedures for operations and maintenance of Electric Vehicle Charging Stations.
(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Issue
ISSUE
Staff has determined that the Electric Vehicle Charging Stations solicitation constitutes specialized electric vehicle (EV) charging network solution, monitoring, operation, warranty, maintenance and equipment replacement and installation. This determination renders it appropriate that these Electric Vehicle Charging Station services be procured by a competitively negotiated process in accordance with PUC §130242. PUC §130242 states that the Board, upon a finding by two-thirds vote of all members, awarding the contract through competitive negotiation, versus a low bid procurement, will achieve for the authority a more competitive solicitation process with respect to quality, timeliness, price, and other private sector efficiencies, relevant to the integration of design, project work, and components. This competitive negotiation process is in line with LACMTA’s Acquisition Policy and Procedure Manual.
Background
BACKGROUND
In June 2022, the Board approved the 2023-2028 Electric Vehicle Parking Strategic Plan (EVPSP) as a strategic blueprint for sustainable, cost-effective, and efficient investments in electric vehicle (EV) charging infrastructure for our region.
Metro is committed to meeting ambitious emissions reduction goals through various strategies across our service region, including promoting the use of electric vehicles. Installation and ongoing operation of EV Chargers is an essential component of EV adoption. The regional availability of EV chargers must be in place to achieve successful growth in EV usage.
Metro’s existing Electric Vehicle Supply Equipment (EVSE) inventory includes 108 Level 2 EVSE units, 103 of which are currently installed and active across several Metro operating divisions and park-and-ride facilities. This network will grow to as much as 3,000 chargers over the next five years and operation and maintenance of new EVSE installations will be crucial for charging across four use-types: 1) employee charging, 2) non-revenue fleet charging, 3) park-and-ride charging, and 4) public charging.
Metro’s existing EVSE network is managed by a third-party vendor which has provided these networking, operations, maintenance, and installation services since August 2019. The current contract expires on July 31, 2025. The proposed competitive solicitation process will allow Metro to select a vendor to continue the operations of the existing network and support future expansion.
Discussion
DISCUSSION
It is in the public’s interest to utilize competitive negotiation rather than a sealed bid process to consider factors other than price in the award of contracts for maintenance and operations of the EV Charging Stations as allowed under PUC § 130242. The competitive negotiation process allows consideration of factors other than price that could not be adequately quantified or considered in a strictly low bid procurement.
Staff recommends the use of a competitive negotiation process for the Electric Vehicle Charging Stations to allow for the consideration of technical and commercial factors, such as past performance related to schedule adherence, quality and reliability, as well as price in the contract award selection process. By establishing explicit factors that identify Metro’s priorities, the solicitation can use evaluation criteria important to Metro to augment price considerations.
In addition to the ability to evaluate key technical and schedule factors, the competitive negotiation process permits direct discussions and negotiations with Proposers to clarify requirements and cost prior to an award recommendation. This process minimizes the risks associated with a complex specification and scope of work by allowing the parties to clarify ambiguities and correct deficiencies.
The scope of work of the forthcoming procurement does not come into conflict with existing union agreements and does not overstep the work and performance expectations of existing operations, facilities and maintenance staff.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this recommendation will have a direct and positive impact on safety, service quality, system reliability, performance, and overall customer satisfaction. The existing and new electric vehicle charging stations are going to be operationally installed, operated, and maintained consistently across the system.
Financial_Impact
FINANCIAL IMPACT
Once the proposals are evaluated and a qualified contractor is selected, an incrementally funded requisition shall be initiated to start the solicitation processes as per Vendor/Contract Management (VCM) policies. Funding for this action is included in future revenue projections.
Impact to Budget
Upon award, the project shall be funded with local funds. These local funds will be supplemented by revenues generated by the use of charging stations used by employees and the public. In addition, Metro will work to establish local and regional partnerships that help secure additional funds to support the installation, operation, and maintenance of these charging stations and the network
Equity_Platform
EQUITY PLATFORM
There are currently 108 EV chargers across the Metro system in 26 locations. The mix of locations include six Metro Bus and Rail Divisions where Non-Revenue Fleet are charged, and 20 public charging locations, specifically located at Metro Park and Rides. Metro’s EV Parking Strategic Plan, approved by the board in 2022, also utilized state Disadvantaged Communities designations in its prioritization factors, prioritizing sites sited within Disadvantaged Communities to ensure customers in these communities benefit from access to EV charging infrastructure through the growth of Metro’s EV charging network. Given that Metro Equity Focus Communities (EFCs) are defined by high rates of households without access to an automobile, this was not used as a prioritization metric for the Plan, though an estimated 26% of charging ports would be deployed in EFCs.
On future RFPs, the Diversity & Economic Opportunity Department (DEOD) will determine the applicability of an SBE/DVBE goal as part of its small business goal analysis review.
The solicitation details will be published in the four different media newspaper outlets a week before the solicitation is released. These include LA Sentinel, Asian Week, Los Angeles Daily News, and La Opinion. The Vendor Portal will also include the solicitation once released and will be available for download to all interested firms including small businesses. Procurement- Vendor Ads can be provided that include a list of vendors/contractors that will be notified by email.
Metro also conducted a demographic survey of current EV charging users in 2023 to better understand who uses and how customers experience the existing park and ride charging network. The survey results indicate that an estimated 40-50% of these users may live in, or within proximity to, an Equity Focus Community, based on their reported ZIP code, as illustrated in Attachment B. As noted, EFCs have high rates of households without access to an automobile. The survey also found that more than one in four users lack access to home charging, indicating park and ride charging provides a necessary source of charging access for those users. As EV adoption grows among residents living in multi-family buildings, which often lack charging access, locations like Metro’s park and rides and workplaces can fill in as reliable charging locations, reducing barriers to EV adoption among these customers.
Additionally, the survey yielded several findings regarding demographics of EV charging users. Current Metro EV charging users:
• were more likely to identify as White/Caucasian and Asian/Pacific Islander than the general Metro ridership population, and less likely to identify as Hispanic/Latino or Black/African American than general ridership;
• were more likely to speak English had home, and less likely to speak Spanish at home compared to general Metro ridership;
• were more likely to be high-income (over $100,000 household income) and less likely to be low income (less than $50,000 household income) than general ridership; and
• were more likely to live in single-family detached homes and less likely to live in either small (2-4 unit) or large (5+ unit) multifamily buildings.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
While this item does not directly encourage taking transit, sharing a ride, or using active transportation, it is a vital part of Metro operations as it supports Metro’s increasing share of electric non-revenue vehicles, encourages riders and employees to use low-carbon alternatives like electric vehicles to travel to work, and enables Metro riders to use electric vehicles as a first and last mile solution.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
These recommendations support Metro Strategic Plan Goal No. 1.2.D) Improve connectivity to provide seamless journeys by improving Park & Ride experience for electric vehicle owners and providing charging access to those who lack access to home charging; 4) Transform LA County through regional collaboration and national leadership with partners to develop EV charging and help meet City and State initiatives to accelerate EV adoption through greater access to electricity as a transportation fuel; 5.7) Metro will build and nurture a diverse, inspired, and high-performing workforce by providing workplace charging to employees and supporting those who drive EVs or are interested in owning an EV but lack reliable locations to charge one.
These goals strive to position Metro to meet the CAAP commitment of a 79% reduction in greenhouse gas emissions from internal operations by 2030 and include measures to install EV charging at Metro facilities for employee commuter use.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose to procure the operations and maintenance of EV Charging Stations using a low bid process, but this methodology is not recommended. The sealed bid process does not adequately account for any technical superiority of performance, reliability, or system life cycle costs that one firm’s equipment or solution may have over another since the process must award to the lowest responsive and responsible bidder. For these reasons, staff does not recommend this alternative. The competitively negotiated procurement process will provide for the evaluation of critical non-price related factors in the source selection process.
Next_Steps
NEXT STEPS
Staff will proceed with a competitively negotiated solicitation for the maintenance and operations of the Electric Vehicle Charging Stations.
Attachments
ATTACHMENTS
Attachment A - Electric Vehicle Parking Strategic Plan 2023-2028
Attachment B - EV Users are concentrated around the Westside, Central LA, and San Gabriel Valley
Prepared_by
Prepared by: Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Cris B. Liban, Deputy Chief, Sustainability, (213) 922-
(213) 922-7492
Reviewed_By
Reviewed by: Tim Lindholm, Chief Program Management Officer, 922-7297
Nalini Ahuja, Chief Financial Officer, (213) 922-3088
