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SR-092308-1I~~ City Council Report City of Santa bionica'° City Council Meeting: September 23, 2008 Agenda Item: ~ _- To: Mayor and City Council From: Dean Kubani, Manager, Office of Sustainability and the Environment Subject: Solar Santa Monica Demonstration Project Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement with EcoMotion to provide project development and implementation services for the Solar Santa Monica program. Executive Summary On January 22, 2008, City Council approved Phase 2 of the Solar Santa Monica program and a $236,050 contract modification to Contract 8634 (CCS) with EcoMotion to cover the first six months of development and implementation of Phase 2. A minimum of 1,500 kW of new solar capacity will be installed during the 3-year Phase 2; increasing the photovoltaic capacity in Santa Monica from 393 kW to 2,193 kW, a 300% gain. The EcoMotion contract will be for FY 2008-09. EcoMotion will work with prospective program participants, provide marketing and public outreach, project site management, and assist in the preparation of a community-wide solar loan program for Council approval. Funds for this contract are available in the adopted budget. Discussion On September 12 2006, City Council authorized a professional services agreement with EcoMotion for $532,098 to provide project development, marketing and public outreach, and implementation services fora 2 year Solar Santa Monica demonstration project. The demonstration project's goal was to facilitate the deployment of solar and energy efficiency in 50 residential, commercial, and institutional buildings throughout the community with the intention of demonstrating how Santa Monica could become a "net zero electricity importer" by 2020. Solar. Santa Monica was publicly launched on 1 January 17, 2007. After successfully achieving the demonstration project goals in 18 months, Council approved Phase 2 of the Solar Santa Monica program on January 22 2008 and also approved a $236,050 modification to EcoMotion's contract (8634 CCS) to fund the first six months of development and implementation of Phase 2. Phase 2 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; increasing the photovoltaic capacity in Santa Monica from 693 kW to 2,193 kW, a 300% gain. During FY 2008-09, EcoMotion will focus on the following areas: assisting commercial building property owners and multi-tenant building owners with the complexities of purchasing solar, developing a specialist network of contractors with specific expertise in energy efficiency and solar systems, project facilitation and site management, and overall program support. In addition, Solar Santa Monica is considering creating a special solar assessment district that would allow property owners to access the City's capacity to provide loans for the cost of solar systems and efficiency installations that would. be repaid through charges on the individual property tax bills of participating owners. This approach will be implemented by the cities of Berkeley and Palm Desert, and staff will be coming to Council for approval of a resolution that will direct staff to prepare a solar assessment district plan.. EcoMotion will assist in the preparation of the plan. Consultant/Consultant Selection In April, 2008, the City's Energy and Green Building Program Office sent a Request for Proposals to four companies for program development, marketing and public outreach, and site management services for Phase 2 of the Solar. Santa Monica program. Two proposals were received. Staff interviewed both firms and selected EcoMotion as the best proposal based upon the comprehensive scope of services proposed, previous experience implementing effective .energy efficiency and solar programs, and EcoMotion's lower proposed budget. EcoMotion developed the City of Palm Desert's new "Energy Independence Loan Program" which will loan City funds to property 2 owners for energy efficiency and solar upgrades. The Palm Desert program will serve as the model for a similar program in Santa Monica. Financial Impacts & Budget Actions The contract amount to be awarded to EcoMotion is $450,000. A 10% contingency in the amount of $45,000 is also proposed for a total of $490,000. Funds are available in Account 01226.555060.55100W. Prepared by: Susan Munves, Energy and Green Building Programs Administrator Approved: Forwarded Dean Kubani P. L ont well .Manager, Office of Sustainability and the Ci Manager Environment 3 Reference Amendment to Contract No. 8634 (CCS)