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SR-012208-1E~r ~;tYOf City Council Report Santa Monica' City Council Meeting: January 22, 2008 Agenda Item: 1 ~ ~- To: Mayor and City Council From: Craig Perkins, Director -Environmental and Public Works Management Subject: Phase Two Strategy and Plan for Solar Santa Monica Recommended Action Staff recommends that the City Council: 1) authorize the City Manager to negotiate and execute a modification to Contract 8634 (CCS) with EcoMotion to provide project development and implementation services for Phase 2 of Solar Santa Monica for a not to exceed amount of $236,050; and 2) authorize a grant to SMMUSD for an amount not to exceed $20,000 to implement an RFP process for a provider of solar services. Executive Summary Since City Council approved the Solar Santa Monica demonstration project in 2006, the project has achieved its stated objective-to accelerate the awareness and installation of energy efficient and solar technologies throughout the community. The installed photovoltaic capacity in Santa Monica doubled in 2007 and the two-year work plan has been completed ahead of schedule. It is proposed to extend the Solar Santa Monica program into a second phase for the next three years: 2008, 2009, and 2010 with a projected five-fold increase in installed capacity. SMMUSD has requested a grant to assist their efforts to improve solar efficiency. Funds are available in the current budget. Background On March 14, 2006, City Council approved a Community Energy Independence Initiative (CEII) and authorized atwo-year demonstration project to begin establishing a community-wide CEII by installing energy efficiency measures and solar photovoltaic (electric) or solar thermal (hot water) systems in up to 50 residential, commercial, and institutional buildings. The CEII's long-term goal is to achieve greater community-wide 1 energy independence by maximizing energy efficiency and onsite solar power generation in every building in the community and, where appropriate, using clean distributed generation (microturbines, small fuel cells, and small co-generation systems) to supply baseload electricity. Specifically, the City intends to become a "net zero' electricity importer" by 2020 which would mean that the total annual electricity demand within Santa Monica would be matched or exceeded by the total amount of electricity that is locally generated within Santa Monica. On September 12, 2006, City Council authorized a professional services agreement with EcoMotion as the best qualified firm for $532,098 to provide project development, marketing and public outreach, and implementation services for the Solar Santa Monica demonstration project. Solar Santa Monica was publicly launched on January 17, 2007. Discussion Solar Santa Monica's primary purpose is to facilitate the solar investment process for residential and commercial property owner by providing completely objective on-site energy assessments,- screening contractors and arranging for fixed prices, working with financial institutions that are in the business of making solar and energy efficiency loans, and streamlining the permitting and inspection process. Even if a property owner selects a solar contractor who is not a Solar Santa Monica preferred provider, Solar Santa Monica still .provides support such as bid comparison services in recognition that each solar installation contributes to the City's energy independence goals. Through these efforts, the program stimulates the solar market and accelerates solar adoption in Santa Monica. Staff estimates that the solar baseline capacity at the start of the Solar Santa Monica program was approximately 356 kW (kilowatts). Since Solar Santa Monica's launch on January 17, 2007, about 40 new solar installations have nearly doubled the community's photovoltaic capacity to 650 kW. Five predominant solar projects contributed to Solar Santa Monica's success in 2007. 2 1. Civic Center Parking Structure -181 kW Solar panels were mounted on steel shade structures on the uppermost level of the nation's first LEED-certified parking structure. 2. The Phelps Group - 50 kW The Phelps Group, on Wilshire Boulevard, installed a rooftop solar system in addition to implementing other green business practices. 3. Solar City - 76 kW reported Solar City, a solar company from the Bay Area, reported signing up 15 homes for a total capacity of 76 kW. 4. Solar Santa Monica Comprehensive Service - 40 kW Solar Santa Monica provides comprehensive solar and energy efficiency service for residents and businesses that prefer such assistance. Currently, Solar Santa Monica is "signing" about one new residential project every two weeks, or about 25 homes per year. 5. Free Market Installations - 50 kW A number of installations resulted from normal free market solar business activity. There has been an extensive outreach to make every resident and business in Santa Monica aware of the Solar Santa Monica program and its two program portals: the Solar Santa Monica website and the Solar Santa Monica office at 1212 5th Street. Proposed Phase Two Strategy and Plan Solar Santa Monica proposes to extend the program goals to encompass the entire community and expand the scope of services offered to residents and businesses. Phase Two of Solar Santa Monica will extend the program for three years, 2008-2010, and add at least 500 kW of solar installations per year for three years. During Phase Two, a minimum of 1,500 kW of new capacity will be added; increasing the photovoltaic capacity in Santa Monica from 693 kW to 2,193 kW, a 300% gain. The proposed Phase Two growth is an essential step as the City seeks to offset 103 MW of power generation with solar by 2020. An estimate of what it will take in terms of installed photovoltaic 3 capacity to achieve the City's Community Energy Independence Initiative solar goals is presented below. Projected Solar Santa Monica Installations 2006 - 2007 Demonstration Project 0.3 MW 2008 - 2010 Phase Two 1.5 MW 2011 - 2013 Phase Three 7.5 MW 2014 - 2016 Phase Four 30 MW 2017 - 2020 Phase Five 64 MW Total 103 MW SMMUSD Grant Request Solar Santa Monica has also been supporting Santa Monica College's and the Santa Monica Malibu Unified School District's (SMMUSD) efforts to achieve their solar goals. SMMUSD will likely enter into along-term power purchase agreement with a third party that will capitalize, install, and maintain solar systems throughout the District. The SMMUSD requires financial assistance in the amount of $20,000 to prepare a comprehensive Request for Proposals solicitation and provide professional assistance to evaluate submitted proposals. Financial Impacts & Budget Actions It is recommended that EcoMotion's Contract 8634 (CCS) be amended on a sole source basis through June 30, 2008, for an amount not to exceed $236,050 to cover the first five to six months of Phase Two development and implementation. On a parallel path, staff will issue a professional services RFP for the remainder of Phase Two. Funding for the remainder of Phase Two will be included in the budget requests for the next two fiscal years. Funds for the $236,050 EcoMotion contract modification in FY2007-08 and a $20,000 grant to assist with SMMUSD's comprehensive solar initiative are available in Account Numbers M010731.589000 and 0010731.589000. Prepared by: Susan Munves, Energy and Green Building Programs Administrator 4 Approved: •~ Craig Per ins Director -Environmental and Public Works Management Department Forwarded to Council: . L t Ewell City anager 5 Reference Amendment to Contract No. 8634 (ccs).