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THE CITY OF 14 CITY COUNCIL AGENDA REPORT pLEASANTONo August 18, 2009 Operation Services TITLE: APPROVAL OF A PUBLIC WORKS CONSTRUCTION CONTRACT WITH CUPERTINO ELECTRIC, INC. FOR THE DESIGN, PURCHASE AND INSTALLATION OF A PHOTOVOLTAIC SOLAR ENERGY SYSTEM AT THE OPERATION SERVICES CENTER SUMMARY On April 7, 2009, the City Council authorized the City Manager to submit an application to the California Solar Initiative Program for a solar energy system rebate and to issue a request for quotations (RFQ) for the design, purchase and acquisition of a photovoltaic solar energy system at the Operation Services Center (OSC). Staff indicated that once installed, the system would provide electrical power to water Well 8 and the OSC buildings. In response to this approval, staff circulated the RFQ and on July 10, it received thirteen proposals. After reviewing all proposals, staff is recommending the awarding of a Public Works Construction Contract to Cupertino Electric, Inc. in the amount of $1,678,000 to design, provide and install the entire system which will be owned by the City. The recommended system will produce approximately 484,600 kWh /year of electrical power annually, which is capable of powering approximately 55% of the power needed for water Well #8, and 20% to offset other OSC building energy usage. Staff estimates the City will recoup its investment in the solar system in approximately 7 years through reductions in PG &E electrical billing charges and California Solar Initiative program rebates. The system has a life expectancy of 25+ years. The Contract requires work to be completed by January 2010. RECOMMENDATION Authorize the City Manager to enter into the attached Contract with Cupertino Electric, Inc. in the amount of $1,678,000 for the design, purchase and installation of a photovoltaic solar energy system at the City's Operation Service Center. FINANCIAL STATEMENT This project is not currently funded. However, the City Council has established a priority for an installation of a photovoltaic solar energy project and as a result, staff is recommending funding from various sources including the following. The Water CIP Replacement Improvement Fund, Sewer CIP Replacement Improvement Fund and the CIP Reserve Fund.