COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Board of Supervisors

 

DATE:

March 17, 2010

BOARD MEETING DATE:

March 23, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Supervisor Mark Church

SUBJECT:

Solar Genesis Project

 

RECOMMENDATION:

Approve an Appropriation Transfer Request (ATR) to provide an appropriation of $272,750 from Non-Departmental Services to the Capital Project Budget Unit to fund the design, engineering, and installation of the Solar Genesis Project.

 

BACKGROUND:

On August 4, 2009, the Board adopted Resolution No. 070306, which authorized the Director of Public Works to execute agreements for the funding, design, engineering, and construction of the Solar Genesis Project.

 

The Board of Supervisors adopted the Cool Counties Declaration in October of 2007. The Declaration commits the County to reducing our carbon (CO2) footprint 80% below current levels by 2050. To help achieve that goal, the Board approved the “Solar San Mateo” program that included a County facility component, now called San Mateo Solar Genesis. Using solar to help power County facilities would make San Mateo County a renewable energy leader.

 

Projected electricity cost increases of 7% a year plus the demand surcharge make solar financially attractive. The County currently pays an average of $0.09 per kilowatt-hour (kwh) plus $0.05 in additional fees for peak demand periods. Solar power would offset electricity cost, as it would be produced at peak times.

 

At the Board’s request, staff issued an RFP in late 2008, and selected K2 Solar of San Jose, CA as the preferred integrator for the Solar Genesis Project, based upon the financial attractiveness and thoroughness of their proposal. K2 Solar proposed a 365kw-DC (315kw-AC) photovoltaic array atop the parking garage, with a proposed installation cost of $2.75 million dollars. Staff anticipates an additional $450,000 in cost for design, engineering, and project management, for a total project cost of $3.2 million. As the solar panel market is highly volatile, the project cost will not be finalized until the panels are ordered and under contract.

 

Public Works staff has determined that this project qualifies for a Categorical Exemption pursuant to Section 15301 of the Guidelines for Implementation of the California Environmental Quality Act (CEQA).

 

DISCUSSION:

To help cover the project cost, in 2008 the County requested a $3.35 million federal earmark for a solar project at County Center. Congress reduced the request to $1,427,250 and signed the funding into law in the Omnibus Appropriations Act of March 2009. Staff has worked with the Department of Energy for the past 6 months to secure the federal portion of the funds. There is a required local match of 50% of the project cost, and sufficient non-departmental funds have been reserved for this purpose.

 

The Board previously authorized the County Manager to execute applications and other documents associated with this project. The Grant Award and this memo have been reviewed and approved by County Counsel.

 

The Solar Genesis Project contributes to the 2025 Shared Vision outcome of an Environmentally Conscious Community by reducing the County’s emission of greenhouse gases, lowering the County’s energy costs, publicly demonstrating a commitment to renewable energy.

 

FISCAL IMPACT:

The total cost of the project is estimated at $3.2 million. The Federal earmark would fund $1,427,250, leaving a net County cost of $1,772,750. Non-departmental funds have been allocated for this project. Under the California Solar Initiative, the project is currently eligible for phased rebates, paid yearly for the first five years, and based upon the total kilowatt-hours of electricity produced. The rebate amount will depend upon the final system configuration, but is anticipated to be approximately $120,000 each year for five years, totaling approximately $600,000.