HomeMy WebLinkAbout2010/12/14 Item 8
CITY COUNCIL
AGENDA STATEMENT
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ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
DECEMBER 14, 2010, Item~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AL'\!D EXECUTE AN AGREEMENT WITH 212
DEGREES CONSULTING GROUP AND ALL DOCUMENTS IN
CONJUNCTION WITH IMPLEMENTING THE AGREEMENT
FOR NO-COST INSTALLATION OF SOLAR PHOTOVOLTAIC
SYSTEMS AT MUNICIPAL FACILITIES
DIRECTOR OF ECONOM. IC DEVE::?ZENT
DlliECTOR OF P~WORXS claw .
CITY MANAGER
ASSISTANT CITY ANAGER S--r-
~
4/STHS VOTE: YES D NO [K]
SUMMARY
As outlined in the Municipal Building Energy Efficiency Policy, the City is working
townrds providing 20% or more of its energy demand through on-site renewable energy
generation. The City has been approached by 212 Degrees Consulting Group on
opportunities to host solar photovoltaic systems on municipal sites for research and
development purposes. The systems would be installed at no-cost to the City and the
generated electricity would be used by the City at no-cost. 212 Degrees Consulting
Group would also be responsible for all liability insurance coverage, warranties, and
maintenance for the installed systems. If approved, the City Manager, in coordination
with the Attorney's Office, would negotiate and execute agreements based on the above-
mentioned terms.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance
with the California Enviromnental Quality Act (CEQA) and has determined that the
proposed action(s) qualifies for a Class 8 categorical exemption pursuant to Section
15308 [Actions by Regulatory Agencies for Protection of the EnviromnentJ of the State
CEQA Guidelines because the energy savings resulting from the renewable energy
projects will contribute to reducing Chula Vista's greenhouse gas or "carbon" emissions,
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DECEMBER 14, 2010, ItemL
Page 2 of3
thus improving air quality. Therefore, no further CEQA environmental review is
necessary .
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
While this specific project has not been vetted through the Resource Conservation
Commission, the RCC has supported implementation of the Council-Adopted Municipal
Building Energy Efficiency Policy and the Climate Measures Implementation Plans in the
past.
DISCUSSION
The City of Chula Vista has identified renewable energy systems as a valuable tool for
lowering long-term municipal energy costs which average $4 million annually and
reducing greenhouse gas or "carbon" emissions. When coupled with energy efficiency,
renewable energy systems such as solar photovoltaic (PV) panels are especially cost
effective in lowering peak energy demand when utility rates are highest and the regional
electricity grid is constrained. As such, the City has committed to providing at least 20%
of its energy demand through on-site renewable energy generation per its Municipal
Building Energy Efficiency Policy (Resolution 2005-048). The City has 515 kW of solar
PV that is installed or currently being installed representing II % of municipal energy
demand.
The City has been approached by 212 Degrees Consulting Group on unique opportunities
to host solar photo voltaic systems on municipal sites for research and development
purposes. The company has received funding from the Department of Energy to
demonstrate and monitor large-scale alternative energy systems in urban environments.
Specifically, the proposed project would install approximately 300 kW of roof-mounted
solar PV arrays at the Public Works Corp Yard to generate approximately 500,000 kWh
annually (equivalent to the annual energy use of over 80 homes). The systems would be
installed at no-cost to the City and 212 Degrees Consulting Group would be responsible
for all liability insurance coverage, warranties, and maintenance for the installed system
and for meeting all Department of Energy reporting and environmental clearance
requirements. The electricity generated by the solar PV panels would be used on-site by
the City at no-cost representing about $75,000 in annual utility cost savings. At the end
of the 3-year demonstration project, the solar PV arrays would either be removed (paid
by 212 Degrees Consulting) or system ownership would be transferred at no-cost to the
City. The latter scenario would create ongoing utility cost savings for the City
throughout the system's remaining lifespan (at least 20 years).
The new solar photovoltaic systems would contribute to the goals outlined in Measure #5
(Energy Efficiency & Renewable Energy Retrofits) of the Council-approved Climate
Measures Implementation Plans. If directed by City Council, the City Manager, in
coordination with the Attorney's Office, would negotiate and execute agreements based
on the above-mentioned terms.
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DECEMBER 14, 2010, Item~
Page 3 00
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property
holdings within 500 feet of the boundaries of the property which is the subject of this
action.
CURRENT YEAR FISCAL IMP ACT
Any future agreement would have a positive fiscal impact by providing the City with
solar photovoltaic systems with no upfront capital expenses (approximately $2.8 million
savings). Furthermore, the electricity generated from the facilities would be used by the
City at no-cost creating an additional annual utility savings of approximately $75,000
($6,250 per month).
ONGOING FISCAL IMPACT
At the end of the agreement, if system ownership is transferred at no-cost to the City,
annual utility savings of $75,000 would be realized by the General Fund. These
"avoided" utility cost savings would grow in future years as utility rates increase.
ATTACHMENTS
Attachment A - 212 Degrees Consulting Group - Statement of Project Objectives
Prepared by: Brendan Reed, Environmental Resource lvfanager, Conservation & Environmental Services
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ATT ACHlYJ:ENT A
STATEMENT OF PROJECT OBJECTIVES
212 Degrees Consulting, LLC, Las Vegas, NV.
Recovery Act: Demonstration project for deployment of alternative energy systems.
A. PROJECT OBJECTIVES
. Demonstrate the viability of wind turbine and solar cell generation systems within
various urban environments, geographically located in areas conducive to solar and
eolian technologies.
. The demonstration project will show that at least 35% ofthe energy used within the test
area is self generated.
B. PROJECT SCOPE
. Architecture and hardware selection, coordination and selection of manufacturer and
installer, verification of developmental and final processes for the installed hardware.
Will design, write and execute entire the scope of work for project installation such that it
meets the project objectives.
. Ensure generator selection, installation, site selection, evaluate effectiveness and perform
system functioning and reliability tests.
C. TASKS TO BE PERFORMED
PHASE 1: Architecture and Selection oftest hardware.
Task 1.0 Selection of project hardware.
The Company will develop the plan and scope of work for system, installation, monitoring,
evaluation, of the key hardware components to demonstrate the efficiency and capability of
urban deployment of wind and solar generators. Will choose hardware.based on efficiency,
reliability, cost, and aesthetics for a high density population.
. Consideration will be taken to select hardware that significantly reduces electricity costs.
Critical Milestone 1: The system performance will demonstrate and test to meet or exceed that
manufacturer's specifications.
Critical Milestone 2: The Company will demonstrate that the hardware cost plus transportation,
installation and maintenance represents a best value selection.
Task 2.0 Selection of Test and Demonstration Locations
. Locations will be sefected from a variety of urban locations to demonstrate viability of
generation or electricity in areas conducive to wind and solar systems.
Task 3.0 System Installation and Testing
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. Complete transportation and installation plan. The design will satisfy OSHA
requirements for hazardous materials and occupancy. The plan includes all the required
safety measures including ventilation, waste, and safety.
. Ensure that the installation, use, maintenance, noise, and aesthetics of the system comply
with all local, State, Tribal, and Federal law and regulation.
. Ensure compatibility and acceptance by primary transmission and distribution entity.
After assembly and fitting tests of all the hardware designed for this project, the Company will:
. Test the controls and functions.
. Test hardware performance such as generation performance in various weather,
day/night, season, wind and overcast environments.
. Test Initial processes for film deposition rate, uniformity, minority carrier lifetime,
resistance.
. Test film quality and identify the relationship between quality and process parameters
such as temperature and gas flows.
Subtask 3.1 Measure and Monitor Energy Generation from all comoonents at all times.
Subtask 3.2 Power Generation
Under this subtask the Company will monitor and maintain records of energy generate by
systems and all subcomponents.
Critical Milestone 2: Complete initial tests and monitoring to show that the Company has an
adequate record keeping and reporting system to prove the feasibility of achieving objectives.
Task 4 Svstem Maintenance
The Company will maintain records on maintenance requirements, days and hours of down time,
time and cost to repair. Costs will be itemized, documented and reported as both direct and
indirect costs. The Company will report system reliability for all subcomponents.
Critical Milestone 3: The installation, repair, maintenance, and performance will show a best
value.
Task 5. Preliminary Reoeatability and Reliability Tests
Repeatability and reliability tests in various locations and environmental conditions.
Critical Milestone 3: Film properties meet specifications sufficient reduce processing time for
quality wafers and establish repeatability confidence based upon tests of a large sample.
Task 6 Regulatory compliance and Subiect Aesthetic Judgments
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Document and vigilantly maintain compliance with all legal, zoning and regulatory
requirements.
Establish metrics, document and report aesthetic factors associated with system deployment.
Task 7.0 Full Repeatability and Reliability Test, Product Release
The Company will have hardware and installation specialists available to meet the specifications
below. The process will be repeatable. In these final tests test, the system will be run in
continuous mode to establish mean time between failure (MTBF) parameters, and throughput.
Critical Milestone 4: Complete evaluation of the hardware for reliability, evaluation of the
aesthetic and noise acceptance and demonstrate the system is cost efficient worthy and will meet
cost targets for non-green house gas energy requirements. The project will demonstrate reliable,
reasonable cost and publically acceptable alternative energy deployment in relatively dense
population areas.
PHASE 4 Specific Process Development for Applications. Demo, and Beta Site Tests
Task 8.0 Select Demonstration Venues
The Company will select venues to install and demonstrate systems in a variety of environments.
Critical Milestone 5: Selection of experimental test sites.
Task 9.0 Beta Site Tests
The Company will complete extensive process tests for specific processes at beta sites to
demonstrate reliability and repeatability.
Task 10.0 Project Management and Reporting
Reports and other deliverables will be provided in accordance with the requirements included in
the grant, including the Federal Assistance Reporting. Company representatives will attend one
program review meeting per year to present progress and results, and will provide a project
summary for the solar energy Technologies Program Annual Report every year as requested.
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RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND EXECUTE AN
AGREEMENT WITH 212 DEGREES CONSULTING
GROUP AND ALL DOCUMENTS IN CONJUNCTION
WITH IMPLEMENTING THE AGREEMENT FOR NO-
COST INSTALLATION OF SOLAR PHOTOVOLTAIC
SYSTEMS AT MUNICIPAL FACILITIES
WHEREAS, the City of Chula Vista has identified renewable energy systems as a
valuable tool for lowering long-term municipal energy costs which average $4 million
annually and reducing greenhouse gas or "carbon" emissions; and
WHEREAS, when coupled with energy efficiency, renewable energy systems
such as solar photovoltaic (PV) panels are especially cost effective in lowering peak
energy demand when utility rates are highest and the regional electricity grid is
constrained; and
WHEREAS, the City has committed to providing at least 20% of its energy
demand through on-site renewable energy generation per its Municipal Building Energy
Efficiency PolfLy (Resolution 2005-048); and
WHEREAS, the City has 515 kW of solar PV that is installed or currently being
installed representing 11 % of municipal energy demand; and
WHEREAS, the City has been approached by 212 Degrees Consulting Group on
unique opportunities to host solar photo voltaic systems on municipal sites for research
and development purposes; and
WHEREAS, 212 Degrees Consulting Group has received funding from the
Department of Energy to demonstrate and monitor large-scale alternative energy systems
in urban environments; and
WHEREAS, the proposed project would install approximately 300 kW of roof-
mounted solar PV arrays at the Public Works Corp Yard to generate approximately
500,000 kWh annually (equivalent to the annual energy use of over 80 homes); and
WHEREAS, the systems would be installed at no-cost to the City and 212
Degrees Consulting Group would be responsible for all liability insurance coverage,
warranties, and maintenance for the installed system and for meeting all Department of
Energy reporting and environmental clearance requirements; and
WHEREAS, the electricity generated by the solar PV panels would be used on-
site by the City at no-cost representing about $75,000 in annual utility cost savings; and
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Resolution No.
Page 2
WHEREAS, at the end of the 3-year demonstration project, the solar PV arrays
would either be removed (paid by 212 Degrees Consulting) or system ownership would
be transferred at no-cost to the City; and
WHEREAS, the latter scenario would create ongoing utility cost savings for the
City throughout the system's remaining lifespan (at least 20 years); and
WHEREAS, the systems would also contribute to the goals outlined in Measure
#5 (Energy Efficiency & Renewable Energy Retrofits) of the Council-approved Climate
Measures Implementation Plans; and
WHEREAS, if directed by City Council, the City Manager, in coordination with
the Attorney's Office, would negotiate and execute agreements based on the above-
mentioned terms.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby authorize the City Manager to negotiate and execute an
agreement with 212 Degrees Consulting Group and all documents in conjunction with
implementing the agreement for no-cost installation of solar photovoltaic systems at
municipal facilities.
Presented by
Michael T. Meacham
Director of Economic Development
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