Agenda Report
May 9, 2022
TO: Honorable Mayor and City Council
THROUGH: Finance Committee
FROM: Department of Transportation
SUBJECT: AUTHORIZATION TO ENTER INTO A CONTRACT WITH LUCID GROUP
USA TO LEASE PARKING SPACES FROM THE CITY IN THE
SCHOOLHOUSE GARAGE
RECOMMENDATION:
It is recommended that the City Council:
1 . Find that this action is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the General Rule that CEQA only applies to projects that may have an effect on the environment; and
2. Authorize the City Manager to execute a contract with Lucid Group USA to lease nine (9) reserved parking spaces from the City in the Schoolhouse Garage for an amount payable to the City of $123,930 for the initial five-year term; and
3. Authorize the City Manager to execute contract amendments for extension of the contract term for two additional five-year terms as detailed in the report.
BACKGROUND:
In April of 2021 the Parking Division was contacted by a representative of Lucid Group USA in regards to identifying the best location to park the vehicles to be used as test drive vehicles for their planned showroom on Colorado Blvd in Old Pasadena. City staff worked with Lucid and Pasadena Water & Power to identify the best location to secure a branded, exclusive right of use staging area, that would have the proper infrastructure to also support proprietary Lucid charging stations. The City also looked at current and future projected occupancy of Schoolhouse Garage and determined that normal parking operations and availability would not be adversely affected by Lucid's use of nine (9) parking spaces. The annual rate was established by using the "Reserved Monthly Parking Rate" which is three times the current garage monthly rate along with a 15% discount due to longevity of the agreement and aesthetic enhancements that will be made within the garage by Lucid. This agreement provides Lucid the space they need and allows the City to support a new business opening operations in Pasadena.
MEETING OF 05/09/2022 AGENDA ITEM NO. __ g __ _
Contract with Lucid Group USA
May 9, 2022
COUNCIL POLICY CONSIDERATION:
This project is consistent with the City Council's goal to improve, maintain, and enhance public facilities and infrastructure. It also supports and promotes the quality of life and the local economy.
ENVIRONMENTAL ANALYSIS:
The project has been reviewed for compliance with CEQA and is exempt per Section 15061 (b) (3). The project is covered by the general rule that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The parking space lease contract will not result in any significant effect on the environment.
FISCAL IMPACT:
This contract will result in annual revenues of $24,786 to be paid into the Parking Garage Fund account 40724023-695900 for the initial five-year term. The annual contract amount for the additional two five year terms will be based on a calculation involving the market monthly parking rate for Schoolhouse Garage at the time of the execution of extensions.
Prep~
J~Hamblen
Parking Manager
Approved by:
Director
Department of Transportation