City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 FROM: PUBLIC UTILITIES DEPARTMENT WARD: 1
SUBJECT: CHARGING STATION SITE LICENSE AGREEMENT WITH ELECTRIFY AMERICA FOR THE CONSTRUCTION OF SIX ELECTRIC VEHICLE CHARGING STATIONS AT THE MISSION SQUARE PARKING GARAGE, LEVEL 1, LOCATED AT 3750 UNIVERSITY AVENUE ISSUE:
Approval of a Charging Station Site License Agreement with Electrify America for the construction of six electric vehicle charging stations at the Mission Square Parking Garage, Level 1, located at 3750 University Avenue.
RECOMMENDATIONS:
That the City Council:
Approve a Charging Station Site License Agreement with Electrify America for the construction of six electric vehicle charging stations at the Mission Square Parking Garage, Level 1, located at 3750 University Avenue; and Authorize the City Manager, or designee, to execute the Charging Station Site License Agreement including making non-substantiative changes.
BOARD RECOMMENDATION:
On October 23, 2023, the Board of Public Utilities, with two Board members absent, unanimously voted to recommend that City Council approve a Charging Station Site License Agreement with Electrify America for the construction of six electric vehicle charging stations at the Mission Square Parking Garage, Level 1, located at 3750 University Avenue.
BACKGROUND:
On October 13, 2015, the City acquired the Mission Square Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is now the Landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six-story building, plus a basement level and a 490-parking stall garage situated on approximately 2.5 acres of land.
On September 26, 2017, the City Council approved a Supercharger Agreement with Tesla, Inc. for the installation of Tesla Supercharger Stations at the Mission Square Parking Garage, Level 3 and Level 1.
DISCUSSION:
The proposed electric vehicle (EV) charging stations will be located on Level 1 of the Mission Square parking garage, along the Market Street side of the structure (Attachment 2). Electrify America will improve approximately 1,134 square feet of space that was previously the bank drive-thru area and is currently not utilized. These improvements will result in six EV charging parking spaces and up to approximately 540 square feet of landscaped or paved space for equipment.
As part of the Agreement, Electrify America will be responsible for the total cost associated with the installation of the EV charging stations, which includes the design, electric infrastructure improvements, construction and the monthly electric costs incurred by the charge sessions of vehicles. The term of the Agreement is for ten (10) years, with two (2) options to renew the lease agreement for a period of five (5) years each. Electrify America will pay a parking space fee of $70/month, or $5,040 annually for the six (6) parking spaces.
The Agreement terms are summarized below:
Term: Ten-year term to commence upon full execution of the Agreement.
Premises: Approximately 1,134 square feet of space located at 3750 University Avenue, Level 1 Parking Garage.
Maintenance: Electrify America will be responsible for maintenance costs of charging stations, charging infrastructure and parking stalls for the duration of the Agreement.
Options to Extend: Electrify America shall have two (2) options to renew for an additional five (5) years.
Expansion: Electrify America shall have the option to expand an additional 1,170 square feet for additional charging stations, with approval by the City.
Infrastructure Improvements: Electrify America accepts the Premises in an “as-is” condition. Electrify America will be responsible for installing any infrastructure improvements it deems necessary for the installation and operation of the EV charging stations, at Electrify America’s sole cost and expense.
Electric Utility Service: Electrify America will be the customer of record for the electric service required for the EV charging stations and will be responsible for paying all electric service costs, infrastructure and billing.
STRATEGIC PLAN ALIGNMENT:
This item contributes to the Envision Riverside 2025 City Council Strategic Priority 5. - High Performing Government and Strategic Priority 6. - Infrastructure, Mobility & Connectivity and contributes to the achievement of the following Goals:
High Performing Government:
Goal 5.4. Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
Infrastructure, Mobility & Connectivity:
Goal 6.2. Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
The item aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – The City conducted business with transparency and good faith. By bringing the Agreement before the Board of Public Utilities, the City is providing a space for open dialogue between the Board and community stakeholders regarding all license terms.
Equity – The License Agreement demonstrates that Riverside is equitable in distribution of services, which ensures that every member of the community has equal access to share the benefits of community progress.
Fiscal Responsibility – The License Agreement demonstrates that Riverside is a prudent steward of public funds and ensures responsible management of the City’s financial and property resources.
Innovation – The License Agreement demonstrates that Riverside is innovative by partnering with Electrify America to offer charging stations for electric vehicles, which will reduce the carbon footprint in the city and demonstrates that Riverside is on the forefront of innovative strategies for clean businesses.
Sustainability & Resiliency – Committed to the needs of community stakeholders, the City is devoted to identifying, attracting, and retaining businesses that assist the community to preserve, adapt, and grow during a diverse array of economic cycles, in addition, this demonstrates the City’s commitment to reducing our carbon footprint.
FISCAL IMPACT:
The total revenue generated from the EV charging parking spaces is $5,040 annually, or $50,400 over the ten-year term of the License Agreement. All revenue will be deposited into the Mission Square Building Property Management Trust Account controlled by RPU and used to pay operating expenses for the Property.
Prepared by: Todd M. Corbin, Utilities General Manager
Certifies availability
of funds: Kristie Thomas, Assistant Chief Financial Officer/Finance Director Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
License Agreement with Electrify America
Site Map
Presentation
Mission Square – Electrify America - Page 1