Title
Resolution to Establish Project Budget and to Authorize Contract with Huron Valley Electric to Construct Solar Electric and Solar Thermal Systems at Fire Station #6 ($51,480.00)
Memorandum
The attached resolution will authorize a contract with Huron Valley Electric to install an 8-kilowatt solar electric (photovoltaic) system and a solar domestic hot water system at Fire Station #6. This project is funded entirely by the City's Energy Efficiency and Conservation Block Grant from the U.S. Department of Energy.
The City is purchasing the photovoltaic collectors for this project separately from the construction contract with Huron Valley Electric. This is because the manufacturer, Uni-Solar, has agreed to sell solar collectors at a greatly reduced cost only to the City of Ann Arbor based on our Solar America Cities Partnership and will not offer the same price to contractors. The Uni-Solar photovoltaic purchase will be brought to City Council under a separate resolution at a later date.
The Public Services Area requested proposals under RFP-789, released on January 10, 2011, for the design and installation of an 8 kW photovoltaic system and a solar domestic hot water system on Fire Station #6. The City received four proposals on January 24, 2011, from Huron Valley Electric, The Green Panel, NOVA Consultants, and StarPak Group.
A proposal review team comprised of Public Services staff and Energy Commission representatives selected Huron Valley Electric based on the scoring criteria outlined in RFP-789. A 10% contingency in the amount of $4,680.00 will be added to the project to cover any necessary change orders, making the total project amount $51,480.00. Huron Valley Electric received Living Wage approval on June 30, 2010 and Human Rights approval on February 7, 2011.
The installation is expected to start June 1, 2011 and be completed by the end of June. The solar electric system is expected to produce $1,000.00 annually in electricity and the solar hot water system is expected to meet 55% of the station's hot water needs, for an additional annual savings of $430.00. Electricity will be used to offset Fire Station #6 electric use on sunny days.
The City has a current agreement with DTE that provides a starting point for discussions to sell the excess electricity to DTE Energy through their Net Metering program.
Staff
Prepared By: Andrew Brix, Energy Programs Manager
Reviewed By: Sue F. McCormick, Public Services Administrator
Approved By: Roger W. Fraser, City Administrator
Body
Whereas, The City of Ann Arbor supports demonstrating renewable energy technology;
Whereas, City Council passed a resolution on May 1, 2006 setting a goal of 30% renewable energy for municipal operations;
Whereas, The City of Ann Arbor was selected by the U.S. Department of Energy as a Solar America City committed to implementing solar energy throughout the community by 2015;
Whereas, The U.S. Department of Energy (DOE) awarded the City an Energy Efficiency Conservation Block Grant (EECBG) of $1,243,400.00, from which funding for this project was appropriated in resolution R-09-501 on December 21, 2009;
Whereas, Huron Valley Electric submitted a proposal which was selected based on the scoring criteria under RFP-789, in the amount of $46,800.00, for an 8-kilowatt photovoltaic system and solar domestic hot water system at Fire Station #6;
Whereas, Huron Valley Electric received Living Wage approval on June 30, 2010 and Human Rights approval on February 7, 2011; and
Whereas, This project will assist the City of Ann Arbor in continuing its leadership role in renewable energy;
RESOLVED, That the City Council authorize a contract with Huron Valley Electric in the amount of $46,800.00 for the installation of the solar electric and solar thermal systems;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract following approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That a contingency amount of $4,680.00 be established within the project budget and that the City Administrator be authorized to approve change orders to the contract with Huron Valley Electric, not to exceed $4,680.00 in order to satisfactorily complete this project;
RESOLVED, That the City Administrator is authorized to take the necessary administrative actions to implement this resolution and approve change orders with contingency funds; and
RESOLVED, That City Council authorize the funding of the contract and the contingency amounts for the life of the project without regard to fiscal year.