COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Board of Supervisors

DATE:

April 29, 2010

BOARD MEETING DATE:

May 11, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Supervisor Mark Church

SUBJECT:

Solar Genesis Project at the Government Center Parking Structure in Redwood City

RECOMMENDATION:

1.

Adopt a resolution ratifying the Director of Public Works’ execution of an agreement with Alliance Roofing, Inc., for the design, engineering, and installation of the Solar Genesis Project at the Government Center Parking Structure in Redwood City, in the amount of $2,725,315, for the period of March 19, 2010 to October 1, 2010; and

2.

Authorizing the Director of Public Works or the Director’s designee to execute contract revision orders related to the authorized Solar Genesis contract, in an aggregate amount not exceeding $408,797, which is 15% of the contract amount, for a maximum aggregate expenditure not to exceed $3,134,112.

BACKGROUND:

When the Board of Supervisors adopted the Cool Counties Declaration in October of 2007, it committed to reducing the County’s carbon (CO2) footprint 80% below current levels by 2050. To help achieve that goal, the Board approved the San Mateo Solar Genesis project, which will enable the use of solar energy to help power County facilities, and will make the County a renewable energy leader.

At the Board’s direction, staff issued an RFP in late 2008, and selected a collaboration between Alliance Roofing, Inc., and its exclusive subcontractor, K2 Solar, as the contractor for the Solar Genesis Project. Staff advised the Board of a total project cost of $3.2 million, which would include a combination of federal and county funds.

On August 4, 2009, in order to secure favorable pricing for the solar panels, the Board adopted Resolution No. 070306, authorizing the Director of Public Works to execute agreements for the funding, design, engineering, and construction of the Solar Genesis Project. However, the resolution was worded in very general terms, as the County’s receipt of necessary federal funding was not yet certain.

In early 2010, the federal funding for this project became available, and the project moved one step closer to implementation. On March 23, 2010, the Board approved an ATR to authorize the expenditure of the County’s share of the funds.

DISCUSSION:

Based on the general authority of Resolution No. 070306, the Director of Public Works signed the agreement with Alliance Roofing. Per the Solar Genesis proposal, the agreement specifies that K2 Solar is the exclusive sub-contractor for the solar panels.

Now that the federal funds have been secured, the exact amount of the federal funding is known, the County funds have been transferred, and the project is ready to begin, we are prepared to implement this innovative and energy efficient project. We are pleased that we have progressed this far, and request your Board’s ratification of the agreement with Alliance Roofing in the amount of Two Million Seven Hundred Twenty-Five Thousand Three Hundred Fifteen dollars ($2,725,315) for the period of March 19, 2010 to October 1, 2010. The 15% contingency recommended by staff will accommodate unforeseen circumstances in the installation.

The memo and the accompanying resolution have been reviewed as to form 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.