Funding a $32 million solar project at six high schools in San Mateo Union High School District will come from expected and already realized savings coupled with moving funding previously earmarked from the Crestmoor site to the green efforts.
In an effort to lower the district's $1.1 million annual electricity bill, San Mateo Union High School District began looking at a solar panel plan. The $32 million plan, which the Board of Trustees gave the go-ahead for last night, banks on savings from a number of places. About 50 percent of which has already been realized while the remainder is anticipated. That anticipated savings was a difficult concept for the board to overlook noting unforeseen problems which arose in previous construction projects. In the end, the board felt comfortable that other alternatives existed should part of the proposed funding plan fail.
"This makes me really nervous," said board President Peter Hanley. "This is a lot of money to be banking on."
District staff was reassuring that the future assumed savings would be realized prior to signing contracts for solar panels.
"While this might sound risky, ... we would not award a solar contract until this money is in the bank and is realized. We believe it will happen. ... But we're not going to allocate it until we have firm bids in our hands," said Elizabeth McManus, deputy superintendent of business services.
A number of other possible funding methods, like savings from potential grants and utilizing rebates for construction costs rather than general income.
Trustees Dave Pine and Steve Rogers both noted the solar projects create an opportunity for savings long into the future for the district. That savings is precious, and could be more important than completing a building for a program the district may not be able to fund, they agreed.
Hanley concurred, adding, "I just want to make sure the money is there at each step."
Trustee Linda Lees Dwyer felt comfortable with the number of contingency plans and noted the projections are "guardedly optimistic."
Plans to fund the project will come from shifting funds for a number of places. First, reallocation of $2.6 million earmarked for Crestmoor; about $7.7 million in combined savings from completed construction projects; an assumed future savings in money set aside in a number of contingency funds; no longer setting aside money for escalation, which officials do not believe is necessary; and savings from utilizing state grant funds rather than bond money for certain career technical based programs, explained McManus.
"The money will be in the bank before you're asked to authorize that phase of the solar project," said Project Manager Todd Lee, noting the future savings will be known before contracts are awarded.
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Trustee Linda Lees Dwyer was curious about moving the money from Crestmoor, meaning the district will not complete projects at the site outlined in Measure M.
Lee confirmed her thought, adding the money is not enough to meet the needs at Crestmoor.
"It's a little like putting a band aid on a cancer. You're not going to solve anything by throwing that money at the problem. You either pump more money into that school or do something else," said Lee.
In September, three options for solar panel placement -- only at Aragon; at all six campuses; or at Aragon, Hillsdale, Mills and Burlingame -- were presented by Mark Quattrocchi, principal for Quattrocchi Kwok Architects who helped analyze the options. He recommended the four-school proposal.
A concern voiced in September by trustees was building curriculum around solar panels that could only be applied at four campuses, the ones which house panels. Quattrocchi amended the plan to include two smaller demonstration sites at San Mateo and Capuchino to allow for curriculum needs.
Moving forward, the two-year roll out moves simultaneously with planned bond-funded construction projects. The aggressive schedule calls for construction to begin at some schools as early as next summer going live Jan. 1, 2011. Construction at Capuchino would start the latest, in 2011, due to its current construction schedule.
Combining a drop in electric costs and rebates available over the first five years the panels are working will mean over $10 million in savings for the district, Quattrocchi said.
Installation means a number of possible hands-on learning opportunities for students. Hillsdale High School Principal Jeff Gilbert explained the on-site access could lead to multi-year curriculum opportunities in math and science. Given the district's location near businesses working in this field, there are many businesses that could partner with the district for such a program, he said.
Going green will have an additional practical benefit: Lowing costs of repairing damaged roofs.
Aragon, Mills and Hillsdale had flat roofs built under Measure D, a $137.5 million bond measure passed in 2000, which do not allow for runoff water. Pooling water shortened the life expectancy of each room, prompting a need for new roofs in under 10 years. On its own, the roof replacement costs are estimated to cost $16 million. Roof improvements will be required with the installation of solar panels, making the unexpected roof costs about $5 million of the $32 million solar project.
Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.
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