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HomeMy WebLinkAboutSR - C23290C1 - North Carports Photovoltaic SystmREQUEST: SUBMITTED BY: DATE: CONTENTS: CITY OF PALM DESERT OFFICE OF ENERGY MANAGEMENT STAFF REPORT Authorize Award of Contract No. C-23290 Cl to Carlson Solar for Installation of North Carports Photovoltaic System Benjamin Druyon, Energy Technician April 12, 2007 1) Agreement for Contract No. C-23290 Cl 2) Letter of confirmation on $150,294.92 rebate RECOMMENDATION By Minute Motion: 1. Authorize award of Contract No. C-23290 C 1 to Carlson Solar located in Hemet, CA in the amount of $464,157.68 for the North Carports Photovoltaic System Installation. 2. Authorize a 10% contingency in the amount of $46,415.70. 3. Authorize $800.00 for Interconnection application fee for net -metering to Southern California Edison. 4. Authorize the Director of Finance to allocate $510,373.38 for this work. No appropriation is necessary for this project. Funds are available from account 400-4511-422-3911 for this contract. EXECUTIVE SUMMARY This project is for increasing the size of our current photovoltaic system and the energy savings it will incur. It is a necessary step in the City's aggressive plan to reduce its energy consumption by 30% and peak load usage by 30%. This additional 60 kW photovoltaic system will provide the City with approximately 115,838 kWh, which is roughly 20% of our annual usage. The system installation will be scheduled for completion and fully operational in July. Staff Report Installation of North Carports PV System April 12, 2007 Page #2 BACKGROUND The 60,000 watt (60kW) system to be installed will provide approximately 115,585 kilowatts, saving roughly $25,484.00 per year. The net cost after rebate will be about $313,862.76 and will it take a little over 12 years to recover our costs for this project. After that time the City will save approximately $25,484.00 per year on its electricity bill at the City Hall Civic Center based on current Southern California Edison rates. To help offset the cost, the City's application for a solar rebate has been approved in the amount of $150,294.92. Plans have already been reviewed and approved by our Building and Safety Department. On March 29, 2007 bids were opened on the above project. The bid results are as follows: 1. *Carlson Solar from Hemet, CA 2. SunWize & from Kingston, NY 3. *Borrego Solar from El Cajon, CA 4. Premier Power from El Dorado Hills, CA -Disqualified, no bid bond $464,157.68 $520,341.00 $522,417.83 $397,183.00 *Benjamin met with a representative from this company for an on -site inspection. Research shows Carlson Solar is well qualified and an excellent choice for this prole( t. If you have any further questions, please call Benjamin Druyon or Patrick Conlon Submitted by: Benj Energy Druyon echnician Reviewe Fn Gib ctor of Finance d Concur: WA P trick Conlon Carlos Ortega / Director of Energy Management City Manager G:Energy ManagementlBen Druyon\StaffReport for contractor bids.doc w w w 0 a) 4)