Council Green Lights $2 Million Energy Project

The City Council Tuesday set the stage for a global tech company to complete energy-saving projects, including upgrading 1,300 city streetlights and replacing the 40-year-old ventilation system at the Community Center.

At a cost of more than $2 million, Siemens Industry, Inc. plans to install solar panels on the library, introduce technology to make the city’s streetlights last longer, add new irrigation controllers in some city parks, and replace the heating, ventilation and air conditioning system at the Community Center.

"Millbrae has tended to be a green city and we try to lead the Peninsula by making decisions of this type," said Mayor Daniel Quigg. "We have a responsibility with global warming to do whatever we can to reduce gases and emissions."

According to Siemens spokesman Steven Kuehn, the city will recoup the cost of the improvements over time . Under a separate service contract, Siemens will guarantee and measure electricity savings for each capital project.

“Because Siemens performs both the design and construction, Siemens is able to guarantee the savings, such that if the savings are not achieved, the city will receive a check from Siemens for the value of the shortfall,” Kuehn said in an email.

The council voted 4-1 to authorize the city manager to execute the services agreement with Siemens, file a notice of exemption under CEQA, and execute the financing for the projects.

Councilman Paul Seto cast the lone dissenting vote. Seto said he would have been more comfortable with a separate bid for replacing the HVAC system and  shorter loan term, which is expected to be 20 years.

"During these economic times it's tough to predict what the future is going to hold," Seto said.

The city held off on approving the solar panel segment of the project until a law goes into effect on Jan. 1 that exempts photovoltaic installations from environmental review under the California Environmental Quality Act.

The city plans to use various funds to finance the project.

“Working with Siemens enables the city to do the project without having to allocate scarce General Funds or Capital Improvement Project (CIP) funds,” Kuehn said.

City staff are expected to complete the contract and loan documents in January, with construction beginning thereafter, according to a staff report. Siemens will likely install the new HVAC system next spring.

Siemens has implemented similar energy efficiency projects in Cupertino, and in the city and county of Merced, Kuehn said.