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BACKGROUND <br /> The City Council's 2007/2008 Annual Work Plan included a priority to pursue a public or <br /> private partnership for a photovoltaic (solar) energy project. After working with a local <br /> consultant (Energy Solutions), staff identified the City's water well No. 8 at the <br /> Operations Service Center (OSC) as the most viable future solar project location. Well <br /> No. 8 was installed several years ago to keep up with the City's need for additional <br /> water demands during peak consumption periods. <br /> When the State's Solar Initiative rebate program became available, staff again felt the <br /> City's water well would be a perfect fit for photovoltaic solar panels because of the ever <br /> increasing cost of energy to operate this water well. Consequently, the City applied and <br /> qualified for the state's rebate program for the installation of the photovoltaic solar <br /> panels at the OSC. When the water well is not in operation, the energy generated from <br /> the solar panels will continue to operate and feed energy (which is bankable) back into <br /> the local PG &E grid. <br /> The photovoltaic system installed will produce approximately 484,600kWh /year of <br /> electrical power which is capable of providing energy for approximately 55% of the <br /> energy needed for water well No. 8 and 20% of the energy required to operate the 5 <br /> main buildings at the OSC. The system consists of 1586 solar panels and four inverters, <br /> and is housed on four of the six largest OSC buildings. The system has a life <br /> expectancy of 25+ years and staff estimates that with the state's rebate, the City will <br /> recoup its initial investment into this solar system in approximately seven years through <br /> reductions in PG &E electrical bill charges. <br /> DISCUSSION <br /> Construction began in September 2009, with the project being substantially completed <br /> in January 2010 and placed into service the first week of March 2010 after acceptance <br /> by PG &E. The average output of the system since installation has been approximately <br /> 345 kW, running at 96% efficiency, even with considerable cloudy days <br /> The subject project is now ready for acceptance by City Council. <br /> Submitted by: Fiscal Review: Approved by: <br /> (0 v._ ipp <br /> Brian Dolan David P. Cu ver Nelson Fialho <br /> Director of Finance Director City Manager <br /> Community Development <br /> Attachments: <br /> 1. Funding and Expenditure Summary <br /> Page 2 of 2 <br />