Agenda

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Finance Committee

Meeting Date:	09/29/2020
FROM:	Bill Gallardo

Subject:

Supercharger Agreement with Tesla to Install Charging Stations at Parking Structure No.2

RECOMMENDATION

Approve the Supercharger Agreement.

BACKGROUND/DISCUSSION

Tesla is proposing to utilize two of their charging programs (Supercharging & Destination Charging) to install a total of 48 electric vehicles (EV) chargers in Parking Structure No.2 located at 175 S. Madrona Avenue. The proposal includes installation of 24 wall chargers (also known as Level II or Universal chargers for any EV user) and installation of 24 superchargers that are only used for Tesla vehicles. The City Council, at their July 7, 2020 meeting, reviewed and approved the charging station design layout Option 2 that calls for the charging stations to be located one level below the Ground level of the parking structure (Attachment 1). After the attached formal agreement is approved, Tesla intends on completing the final design, starting construction in early 2021 and completing the installation by Summer 2021.

The following is a summary of the significant deal-points in the attached agreement (Attachment 2):

Ten (10) year initial term and two additional five year extension renewal periods at the City’s discretion.
City to make a one-time contribution of $96,000 towards the installation of 24 Level II EV chargers.
If City does not extend the term, Tesla to remove all the equipment that relates to their supercharger technology and will leave the Wall Chargers (Level II) equipment to allow the City to continue to operate the system.
Tesla will own, operate and maintain all electric chargers at their costs, including electrical costs
Telsa will generate and supply all the necessary documentation to the City for compliance with the AQMD grant.
Tesla shall comply with the prevailing wage laws for any public work performed pursuant to this Agreement.

In addition, Tesla will handle all transactions and will collect fees for use of the chargers. Tesla has committed to charge a competitive rate as compared to other charging facilities in the vicinity. The City Attorney has reviewed the Tesla agreement and approves as to form.

SUMMARY/FISCAL IMPACT

Approval of this agreement will require the City to make a one-time payment of ninety-six thousand dollars ($96,000) to Tesla as a one-time contribution towards the costs incurred by Telsa in providing and installing the twenty-four (24) Wall Chargers (Level II). Staff would utilize the Mobile Source Air Pollution Reduction Review Committee (MSRC), which is a part of the Local Government Partnership Program grant in the amount of $56,500 and $39,500 from the AB 2766 Subvention Funds to cover the full cost of the contribution requirements with Tesla. Tesla will be responsible for all the costs to own, operate and maintain the system. There is no impact to the General Fund.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Brian M. Ingallinera, Environmental Services Coordinator
Concurrence: Rudy Correa, Interim Superintendent
Tony Olmos, P.E., Public Works Director

Attachments
Approved Design Concept
Tesla Agreement