08-28-2017 BPU RPT 07 - Laserfiche WebLink

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wni =R t v t ai,v 1.1 -- RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: AUGUST 28, 2017 ITEM NO: 7 SUBJECT: FIVE-YEAR SUPERCHARGER AGREEMENT WITH TESLA, INC., WHICH WILL DO BUSINESS IN CALIFORNIA AS TESLA MOTORS, INC., FOR THE INSTALLATION OF TWELVE TESLA SUPERCHARGERS IN THE MISSION SQUARE PARKING GARAGE LOCATED AT 3750 UNIVERSITY AVENUE ISSUE: Recommend City Council approve the Supercharger Agreement with Tesla, Inc., which will do business in California as Tesla Motors, Inc. (Tesla Motors, Inc.) for a five-year term with an option for two (2) five- year extensions, for installation of twelve Tesla Supercharger Stations in the Mission Square parking garage located at 3750 University Avenue. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Supercharger Agreement with Tesla Motors, Inc., for a five-year term with an option for two (2) five-year extensions, located in the Mission Square parking garage, 3750 University Avenue; and 2. Authorize the City Manager, or his designee, to execute the Supercharger Agreement with Tesla Motors, Inc., including the optional two five-year extensions, making minor, non -substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: The City of Riverside currently owns and operates one level 3 fast charger located at City Hall that is available to all EV owners. The proposed Supercharger Agreement between Riverside Public Utilities (RPU) and Tesla will provide twelve additional Electric Vehicle (EV) charging stations in Downtown Riverside for the exclusive use of Tesla vehicle owners. This project will enhance EV charging infrastructure in Riverside and act as a catalyst for increased visits to downtown as marketed through the Tesla vehicle owner digital platform. The proposed Tesla Supercharger Station will be located on the 3rd level of the Mission Square office building parking garage along the 91" Street side of the structure (see attached site map). These parking spaces are currently not assigned to any tenants, are underutilized and considered non -prime parking spots. Tesla strategically places their Superchargers in these locations to avoid monopolizing prime parking stalls predominantly utilized by the businesses located adjacent to the Supercharger locations. Initial project planning between RPU and representatives from Tesla Motor's Supercharger Team began in April of 2017 to discuss the possibility of installing Tesla Supercharger Stations in Downtown Riverside. As part of RPU's due diligence process, staff determined the project's viability by reviewing all City owned assets in downtown. After the asset review period and multiple meetings with the Tesla Supercharger Team, it was determined that the Mission Square parking structure would be the optimal location for installation of the twelve Supercharger Stations based on Tesla's site criteria.