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Tesla, Inc. Supercharger Agreement
<br />February 18, 2020
<br />Page 2
<br />In 2018, the City Council approved EV stations for six locations, funded through a grant from the
<br />Southern California Air Quality Metropolitan District (AQMD). Of these locations, only one is in
<br />downtown Santa Ana, located at the Third and Bush surface lot, and is equipped with two EV
<br />parking stalls. The closest Supercharging Station, located at MainPlace Mall, is equipped with 16
<br />fast charging stalls and averages approximately 270 visits per day.
<br />Installation of the Supercharger Station will bring hundreds of additional visitors to downtown
<br />Santa Ana on a weekly basis, increase patronage to downtown businesses, and increase sales
<br />tax revenue to the City. The Fifth and Spurgeon parking structure has a combined total of 700
<br />parking stalls and on average is 25% occupied. Full capacity is only reached during special events,
<br />approximately ten times per year. The garage is adjacent to Plaza Calle Cuatro, 4th Street Market,
<br />and in close proximity to the Spurgeon Paseo.
<br />Tesla estimates that the installation cost for this site is over $700,000 and monthly maintenance
<br />and electricity is over $20,000. Tesla states that supercharging is not intended as a profit -
<br />generator, but an amenity to Tesla customers. Their current fee is $0.28-$0.32/kWh. For
<br />comparison purposes, in 2018, City Council established a fee of $0.25/kWh for the first 4 hours,
<br />and $2.00 per hour after the initial 4 hours for City -operated EV chargers. These fees are intended
<br />to cover the operating costs and ongoing maintenance and electricity costs.
<br />To ensure compliance with California Government Code Section 53083 regarding Economic
<br />Subsidy Reports, an analysis of the loss of revenue to the City was conducted. The lost revenue
<br />for the elimination of seven parking spaces is estimated at $23,760 for a 15-year period, which
<br />does not meet the minimum $100,000 threshold. Therefore, an Economic Subsidy Report is not
<br />required. The lost revenue is calculated based on the elimination of seven parking spaces at the
<br />Fifth and Spurgeon parking structure, due to utility equipment and accessible parking spaces. This
<br />calculation of lost revenue is for compliance with State code. However, the project is expected to
<br />make a positive economic impact through infrastructure improvements, additional patronage to
<br />downtown, and by positioning the City with an innovative advantage.
<br />CEQA
<br />In accordance with the California Environmental Quality Act, the recommended action is exempt
<br />from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1 - Existing Facilities). Class
<br />1 exempts from environmental review for "the operation, repair, maintenance, permitting, leasing,
<br />licensing, or minor alteration of existing public or private structures, facilities, mechanical
<br />equipment, or topographical features, involving negligible or no expansion of existing or former
<br />use." The proposed project consists of a minor alteration of an existing parking facility to add
<br />electric vehicle charging capabilities. The proposed project would not increase the number of
<br />parking spaces and, therefore, would result in negligible, if any, expansion of use. There are no
<br />features that distinguish this project from others in the exempt class and, therefore, there are no
<br />unusual circumstances. As a result, Environmental Review No. 2020-7 will be filed for this project.
<br />25F-2
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