Connect with us

News

Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’

Published

on

Tesla Supercharger station in Aberdeen, Washington [Credit: Trebor Thickweb via app check-in]

He was young. Ambitious. Gifted. One of the greatest players to ever set foot on a professional baseball diamond, “Shoeless” Joe Jackson’s career ended in tatters for his alleged role in the infamous Chicago “Black Sox scandal” of 1919.

Call it a “conflict of interest.” It involved money. Lots of it.

Something else that involves money – lots of it – is afoot in Aberdeen, Washington: A Tesla Supercharger station and a “Gateway Center.” Aberdeen Mayor Erik Larson is a staunch proponent of both.

Updated: Mayor Larson fines himself $500 for violating the state’s conflict of interest ethics code

Mayor Larson is making the rounds looking for funding to help cover the costs of Gateway Center construction which is expected to cost upwards of $8M to complete, and incorporate Tesla’s Supercharger station into the design.

Questions within the community are swirling around what appears to be a conflict of interest regarding the mayor’s involvement in the Tesla deal. Documents have surfaced showing that the mayor has, or had, a financial interest in the electric car company that’s building the Supercharger station, apparently while he was negotiating with the company to bring the project to a city-owned lot. Why the station is being built on publicly owned land rather than on a private site is also in question.

Advertisement
-

Background

Mayor Larson negotiated the original agreement with Tesla for the charging station, which could have cost the city up to $2,000 a month in utility bills. The lease agreement came before the Aberdeen City Council for approval last summer. Originally, the City of Aberdeen was on the hook for paying  electricity costs.

Tesla Supercharger station in Aberdeen, Washington during construction [Credit: Trebor Thickweb via app check-in]

As noted in the Aberdeen City Council meeting agenda dated July 13, 2016, the lease language at that time included (see page three):

“The Mayor has negotiated with Tesla Motors, Inc. for the construction of a Tesla supercharger station in Aberdeen on the city of the former Chevron station. The supercharger will be incorporated into the design of the Gateway Center. …  the city will also be responsible for… paying the utility bills for Tesla vehicles that use the charging station, up to monthly cap of $2,000 per month.” (Emphasis added.)

Reading further, Item 8 of that actual lease agreement specifies that:

“Tesla agrees to arrange for all Tesla-related utility services provided or used in or at the Premises… Tesla shall pay directly to the utility company the cost of installation of any all such Tesla-related utility services and shall arrange to have the utility service separately metered. (Counterparty) shall be responsible for paying all utility bills related to such meter after installation, including payment for electricity consumed at the Premises during the Term, up to two thousand dollars ($2,000) per month.” (Emphasis added.)

Other Cities, Other Charging Stations

Tesla lease agreements with city governments aren’t new. Similar charging stations exist in five other Washington cities: Centralia, Burlington, Ellensburg, Kennewick, and Ritzville. There are eleven Supercharger stations in Oregon. All are located on either hotel/resort type private property or some other type of retail/outlet center. But the Aberdeen location is on a city-owned lot.

In California, two Supercharging stations on publicly owned property exist in Ukiah and Crescent City. But the terms negotiated by those cities for the stations are jarringly different from those negotiated for the Aberdeen site:

Advertisement
-

In Ukiah:

– “Tesla pays for the entire project, including staff time and utility costs.” (Ukiah Daily Journal, August 8, 2015.)

In Crescent City:

  • The city is being paid by the tenant for use of its property. A proposal by Recargo, Inc. to build and operate a universal electric vehicle charging station in Crescent City included a $4,800 annual payment from Recargo to the district for use of the property. (Del Norte Triplicate, October 11, 2016.)
  • “Essential components” of the city’s lease agreement with Tesla includes: “(1) the term, which is five years with two five-year options to renew, (2) Tesla will build and maintain the facility, and (3) the lease amount is one dollar per month.” (City of Crescent City Council Agenda Report, April 6, 2015.)
  • Tenant “agrees to arrange for and pay for all Tenant-related utility services provided or used in or at the Premises during the term of the Lease.” (#10 – Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)
  • “Tenant shall pay directly to the utility company the cost of installation of any and all such Tenant-related utility services and shall arrange to have the utility service separately metered.” (#10, Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)

In Aberdeen:

  • The city (re: taxpayers) could get stuck with “up to 30,000 for the costs of installing the new infrastructure for the city” per the re-negotiated August agreement.

[Credit: Conservelocity]

Key items in the re-negotiated agreement between the city and Tesla include (Aberdeen City Council Meeting Agenda, August 24, 2016. See page 3):
  • The provision requiring the city to pay for electricity used by Tesla vehicles was removed.
  • The proposed new lease requires Tesla to pay for all costs of charging Tesla vehicles.
  • The lease also requires Tesla to install infrastructure “that would allow the city to add charging stations for other electric vehicles at some point in the future.”
  • The city “will reimburse Tesla up to $30,000 for the costs of installing the new infrastructure for the city.” (Emphasis added.)

According to minutes from the August 24, 2016 Aberdeen City Council Meeting, a motion to adopt the re-negotiated lease agreement carried.

An interesting wrinkle, as announced by Tesla on November 7, 2016, is that Tesla has decided to stop offering unlimited free use of its network fast-charging stations worldwide beginning this year.

So, other than hopes of helping “attract potential tenants to the center as the first project participant” and providing “nearby restaurants and retailers with additional business” per Mayor Larson, just how, exactly, does the supercharging station tangibly benefit Aberdeen taxpayers or offset “up to $30,000” in reimbursements to Tesla “for the costs of installing the new infrastructure for the city”?

The Daily World reports that “A $30,000 grant will help Aberdeen reimburse Tesla for installing the station.” In light of the agreements hammered out with other cities for charging stations on public land, however, why is Aberdeen on the hook for reimbursing Tesla for any installation costs?

Another wrinkle:

According to an October 28, 2016 story in The Daily World, five Aberdeen sites were in the running as possible locations for the new Supercharger station, including the parking area for the Center. Larson explains:

“They (Tesla) could have easily worked with Gateway Mall or sought out private ownership, but they were interested in the Gateway Center parking lot.”

Advertisement
-

Why was a publicly owned site selected instead of a privately owned one? Is city government using public funds to compete with private business?

Additional questions swirl around Mayor Larson’s financial interest in Tesla Motors.

Some questions:

  1. Did Mayor Larson disclose his financial interest/common stock in Tesla Motor Company anywhere other than on his 2015 and 2016 PDC F-1 forms?
  2. As a candidate, Mayor Larson reported his stock value as $4.5K – $23.9K. After he was elected, he reported the value as $24K – 47.9K. What’s up with that?
  3. The mayor apparently handled all negotiations with Tesla, even though he had/has a financial interest in the motor company (See PDC F-1 forms, above). Did the city know about his financial interest in this company? If so, did it okay the mayor as negotiator of the Tesla lease agreement anyway? Why?

Perhaps a contract negotiator sans an apparent financial interest in the project under negotiation might be a good idea?

While we’re raising questions, what of Shoeless Joe? After the Black Sox scandal, Jackson never set foot on a professional baseball diamond again. He was banned for life along with seven other Chicago players for their alleged involvement in intentionally throwing the 1919 World Series to the Cincinnati Reds. Jackson’s alleged involvement in the conspiracy is still the subject of hot debate. Some maintain that the only things Joe was guilty of were being young, ambitious, gifted, and a bit naive.

Ring any bells?

Kristine Lowder

This guest post was written by Kristine Lowder of Conservelocity. Do you have a post you’d like to share? Email it to us at info@teslarati.com

Advertisement
-
Advertisement
Comments

News

Tesla Roadster event gets delayed due to unfavorable weather

Published

on

Credit: Tesla

Tesla is delaying its event for the Roadster, moving it from this Thursday, October 1, to Thursday, October 15, due to unfavorable weather.

The company has said it has been tracking the weather for this Thursday closely with local meteorologists, and because the event can only be held outside, Tesla is making the call to delay it:

“We’ve been tracking the weather closely with local meteorologists, but given the severe conditions predicted & because this event can only be held outdoors, we’ve made the difficult decision to reschedule. New date is October 15. Additional details to follow.”

We are sure that this is bringing back PTSD for some Tesla fans, and we know it is not ideal, but this also reveals some things about the event. Tesla said that this can only be held outdoors, meaning it bodes well for the rumors that the vehicle could potentially hover.

Some believe that this was essentially confirmed by the FAA airspace restriction they were granted, but this could have been for a drone show or to keep drones from spying on the event.

Tesla Roadster is available for order once again following brief hold

The Roadster event has been long-awaited, and it is unfortunate that the weather is going to keep us all waiting a little bit longer.

The Tesla Roadster will be unveiled in Waco, Texas.

Advertisement
-
Continue Reading

Elon Musk

SpaceX turned a heralding moment for Starship into its greatest

Starship reached orbit despite losing an engine, deployed 26 Starlink V3 satellites on Flight 14.

Published

on

By

SpaceX’s Starship reached orbit for the first time on Monday, and for a few nail-biting minutes it looked like it wouldn’t. During ascent on Flight 14, one of Ship 41’s six Raptor engines shut down early, and SpaceX’s livestream host Dan Huot told viewers the team had decided not to commit to orbit. Minutes later, after what Huot described as a lot of conversation in the control room, the final poll came back in favor, and a roughly 19 second burn of a single Raptor pushed the ship into orbit about 170 miles up.

The reversal matters because SpaceX had written the exit ramp into the mission plan. The company said it would only fire the orbital insertion burn if flight controllers confirmed enough backup hardware remained for the deorbit burn, a condition Teslarati laid out ahead of the flight. Losing an engine was exactly the scenario that rule was built for.

Pressing forward fits Elon Musk’s history. Falcon 1 failed three straight times before its fourth launch reached orbit in 2008, with SpaceX nearly out of money, and Starship was developed by flying prototypes until they broke. What changed this year SpaceX going public, and with $SPCX sliding below its IPO price in July when Flight 13 slipped, the short interest climbed significantly, as Teslarati reported at the time. A Starship potentially lost today with revenue generating next-gen Starlink satellites aboard would have landed directly on shareholders.

That pressure showed up after orbit. SpaceX cut a flight planned to last nearly 10 hours to about three, moving splashdown from west of Chile to the North Pacific near Hawaii. SpaceX gave no reason, though Musk said this month the company was being extremely cautious about debris risk. The single Raptor for deorbit worked, and Ship 41 completed its flip and landing burn before breaking apart in the water, an outcome SpaceX expected. Musk has structured SpaceX’s governance to shield long term bets from market pressure.

Advertisement
-

The payload is the bigger business story. Musk posted that all 26 Starlink V3 satellites deployed and are “operating nominally.” Each V3 is rated for about 1 Tbps of downlink and 160 Gbps of uplink, so this single launch adds roughly 26 Tbps, about 10 times what a Falcon 9 load of V2 Mini satellites adds. The V3 is too large for Falcon 9, making Starship the only vehicle that can build out the planned 100,000 satellite constellation, at up to 60 per flight once it reaches routine service. Unlike the 20 V3 units on Flight 13, which reentered on a suborbital path, these will raise their orbits and could begin serving customers within weeks and bring in hundreds of millions of additional dollars in projected Starlink revenue.

SpaceX has already begun winding down Falcon 9 Starlink launches from Florida in favor of Starship. Reported targets put Flight 15 as early as October 19, leaving about three weeks to diagnose Monday’s engine shutdown before the next orbital attempt.

Continue Reading

News

Tesla Cybercab fleet doubles to well over 100 units

Published

on

(Credit: Teslarati)

Tesla quietly doubled the size of its Cybercab fleet within the Robotaxi program in Austin, Texas, over the weekend to well over 100 units.

The move not only establishes more of the steering-wheel-less and pedal-less vehicles within the ride-sharing fleet Tesla has been operating for a year, but it also solidifies a more robust Robotaxi fleet as a whole.

Riders started receiving notifications from the Robotaxi app that stated: “Cybercab fleet has doubled: more rides available.”

Tesla first launched rides in the Cybercab in early September, although the Robotaxi fleet has been active for over a year, as rides began last Summer. Cybercab is truly Tesla’s most crucial vehicle release yet, as it is the first car any company has built that is geared toward full-fledged and end-to-end autonomy, never needing human intervention for anything.

Advertisement
-

Only available in Austin at the current time, Cybercab has two seats and has been spotted testing around various U.S. states and regions; Tesla plans to deploy the Cybercab in various U.S. cities in the coming months as a best-case scenario.

Tesla Cybercab gets initial tie-in to localized, in-house cathode plant

The availability of the Cybercab has doubled from just 58 units last Monday to 125 the following Friday. Marking a substantial increase in Cybercab availability, the additional ride-sharing units are more than welcome, as wait times for Cybercabs, especially, were quite high.

The dramatic increase is a sign that demand for Robotaxi is growing and Tesla is feeling more confident that its driverless ride-hailing suite, especially its Full Self-Driving software, is able to handle any traffic situation without explicit direction or supervision from a human being.

Continue Reading