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Agenda Item (VIII-D-2)

Meeting10/16/2012 - Regular
Agenda ItemCommittee - Resources (VIII-D-2)
SubjectProject Budget, Borrowing of Measure C Funds, and Agreement with UTC Power Corporation for Fuel Cell Installation Project
College/DistrictNorco
Funding
College Allocated Measure C and Public Utility Commission Self-Generation Incentive Program Funds
Recommended ActionIt is recommended that the Board of Trustees approve: (1) a project budget in the amount of $3,110,000;(2) borrowing of Measure C funds in the amount of $450,000; and (3) a contract in the amount of $2,896,400 with UTC Power Corporation.

Background Narrative:


In accord with the Board of Trustee’s goal of reducing energy use to save general funds and pursue alternate energy opportunities, on October 18, 2011, the Board approved the expense of $10,000 to make an application to the Public Utility Commission’s (PUC) Self-Generation Incentive Program (SGIP). On July 17th notice was received that the SGIP incentive was awarded for the installation of a fuel cell at Norco College. The proposed project budget for the fuel cell is $3,110,000. Staff also requests approval of a project budget allocation from Measure C Program Contingency to fund $2,200,000 of the project. The SGIP will provide a grant incentive in the amount of $900,000 toward the project's total budget.

 

Of this $900,000 SGIP incentive, half ($450,000) will be paid up front. The incentive remainder will be paid out by the PUC over the next five years as savings are realized. The PUC requires this disbursement to ensure projects are completed and maintained for the five years as required by the SGIP terms. It is requested the Board approve the borrowing of $450,000 from Measure C funds to be repaid over the next four years at $106,875 per year with a final payment of $22,500 in the fifth year. The installation of the fuel cell will result in a net savings of over $300,000 per year for Norco College’s general fund.


Approval is also requested for the attached contract with UTC Power Corporation, based on the bid exemptions set forth in Government Code Section 4217.10-4217.18, for the purchase and installation of a Purecell Model 400 fuel cell in the amount of $2,896,400.
Prepared By: Paul Parnell, President, Norco College
 David Bobbitt, Interim Vice President, Business Services (Norco)
Laurens Thurman, District Consultant
Orin Williams, Associate Vice Chancellor, Facilities Planning & Development

Attachments: