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SR 08-28-2018 3I City Council Report City Council Meeting: August 28, 2018 Agenda Item: 3.I 1 of 5 To: Mayor and City Council From: David Martin, Director, Administration Subject: Authorize the City Manager to negotiate and execute an agreement for the installation of 10 Tesla Superchargers on the rooftop parking level of Parking Structure 7 Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a modification to the Agreement for Lease, Operation, and Maintenance of Parking Facilities executed July 28, 2010 with Macerich SMP LP for the installation of 10 Tesla Superchargers on the rooftop parking level of Parking Structure 7. Summary Macerich currently leases Parking Structures 7 and 8 from the City and seeks to add 10 Tesla Electric Vehicle Urban Supercharger stations on the rooftop parking level of Parking Structure 7. While these chargers would only be compatible with Tesla vehicles, they would relieve demand on the City’s existing public chargers. The estimated cost for the equipment is $150,000 which would be incurred by Tesla. Tesla will also cover installation and maintenance costs for the chargers. The City will contribute a percentage of costs towards the replacement of street-level bus lane panels and curb that are in need of replacement and will be affected by construction of additional power service for the chargers. Discussion Macerich currently has an Agreement for Lease, Operation, and Maintenance of Parking Facilities (Lease Agreement) and other license agreements with the City. Parking revenue from Structures 7 and 8 are split equally between Macerich and the City after parking facilities taxes and certain expenses (e.g. Parking Operator) are deducted as agreed to in the lease agreement. Macerich is responsible for all maintenance and upkeep costs and utilities for the structures, including cleaning, 2 of 5 painting, and repairs. Macerich also contributes to the cost of the Parking Access and Revenue Control Equipment. At its February 13, 2018 meeting (Attachment A), Council authorized a contract modification of the Macerich’s Lease Agreement to allow Macerich to sublease 10 of the public parking spaces in Parking Structure 7 to Tesla in connection with Tesla subleasing space situated on the first and second levels of the Santa Monica Place shopping center, at the entrance to the shopping center at the intersection of Broadway and 3rd Street Promenade. Tesla will be engaged in sales of electric vehicles similar to how it operates in other shopping malls. Staff recommends a modification of the Lease Agreement and to allow Macerich to add ten Electric Vehicle (EV) chargers. Staff agrees that adding these EV chargers would serve the public and is consistent with the City’s EV Action Plan (EVAP) which seeks to expand the public charging infrastructure to 300 charging ports within five years to increase EV ownership to 15% by 2025. The Tesla Urban Superchargers being proposed meet the Level 3 charger definition in the EVAP, which are the fastest charging option and take about 40 minutes to charge a Tesla vehicles battery to 80%. A site plan is provided as Attachment B. Tesla is installing Urban Superchargers in urban areas where city dwellers and out of town visitors can easily charge. These stations are placed at locations like grocery stores, downtown districts, and shopping centers to make charging easier. Following is an image of the Urban Supercharger. 3 of 5 The 10 Tesla EV Urban Superchargers would be placed on the rooftop parking level of Parking Structure 7 at no cost to the City. Tesla or Macerich will contribute the full cost associated with adding the chargers. The costs for equipment is estimated at approximately $150,000. Although Tesla will also cover all installation and maintenance costs, including adding additional electrical service to PS7 with its own meter, the full amount has yet to be determined. However, since some of the electrical lines will be installed under the bus stop, the City will contribute a percentage of the costs to replace bus lane panels and curb that are already in need of replacement. For the bus lane panels that are not in disrepair, Tesla or Macerich will cover the full cost since these would otherwise not have needed to be replaced by the City. The breakdown for these costs is: Replacement Item State of Disrepair % of Cost to City Cost ($) to City Panel Excessive 50% $5,776 Less 33% $6,517 None 0% $0 Curbs / Gutter Excessive 100% $3,441 Total Cost to City $15,734 Tesla would also cover the cost of the electricity for charging. The cost to drivers would 4 of 5 be dependent on the charging program they have entered into with Tesla and is also dependent on the vehicle model and year it was purchased. The Tesla app allows owners to remotely monitor their vehicle, alerting them when their charge is nearly complete and again once fully charged. This would increase the number of chargers in PS7 from 6 to 16. Although the Tesla Urban Superchargers can only be used with a Tesla vehicle, adding these chargers would free up the existing 6 EV chargers that are currently used by all electric vehicle drivers, including Tesla vehicle drivers. Tesla vehicle owners would be incentivized to use the Tesla EV Urban Superchargers due to their speed and smart features, such as notification when the vehicle is fully charged. Tesla also provides Tesla drivers with the ability to map a trip which will show where any Tesla chargers are located to assist drivers with planning. Locating the chargers on the rooftop also utilizes parking spaces that are used the least, since the rooftop of Parking Structure 7 is routinely vacant. CEQA The proposed parking management public valet program is exempt from the provision of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that the proposal will not result in significant adverse environmental impacts since the modification only represents an operational change to the use of the existing parking spaces and will not result in the creation of any new parking demand. Financial Impacts and Budget Actions The work associated with this project for work in the public right of way related only to the replacement of bus lane panels would be $15,734. Funds are available in the FY 2018-19 Capital Improvement Program budget in account C0104640.689000. 5 of 5 Prepared By: Salvador Valles, Assistant Director of PCD Approved Forwarded to Council Attachments: A. February 13, 2018 Council Action (WebLink) B. SM Place Tesla Site Plan Attachment B REFERENCE: Agreement No. 10740 (CCS)