Martinez school board to spend $6.2 million on solar panels

With school funding threatened every year by state budget shortfalls, Martinez school board members hope a $6.2 million investment in solar panels will pay off by reducing energy costs and thereby freeing up money for the district's other needs.

Four board members on Monday agreed to spend the money to install solar panels. John Fuller abstained from voting.

According to an analysis by the solar contractor, the school district will save an estimated $475,000 in the first year the panels are up and running. Superintendent Rami Muth said the solar project will allow the district to control its own destiny by providing a stable source of funds.

"This is going to give us another way to be able to weather those (state budget) storms," Muth said.

The total savings are a combination of lower electricity bills and rebates through the California Solar Incentive program. Through the rebate program, which PG&E runs, the school district will receive 12 cents per kilowatt hour of energy the solar panels produce. If energy costs increase over time, the district could save even more.

The money for the solar project comes from the $45 million bond voters approved in 2010. The board has issued about $25 million in bonds so far. Taxpayers will pay about $2.33 for every dollar in bond funds the district spends, according to Aaron Jobson, of Quattrocchi Kwok Architects.

The solar panels are scheduled to be installed later this year. The solar contractor will guarantee for 10 years that the panels will produce at least 95 percent of the energy they are capable of producing.

The company also will perform routine maintenance on the panels during the 10-year period. The panels come with a 25-year manufacturer's warranty and have a life expectancy of 40 years, Jobson said.

The board has separated the proposed bond projects into three phases. In addition to the solar panels, the first phase includes districtwide technology infrastructure upgrades, additions to the performing arts building and gym at Alhambra High School, a remodeled kitchen at Las Juntas Elementary School, and minor improvements at the Vicente Martinez High School and Briones Independent Study School campus.

However, board member Kathi McLaughlin expressed concern about delaying reconfiguring the driveway and parking lot at Las Juntas and renovating the Vicente Martinez and Briones campus until the second phase.

She urged the board find ways to cut costs on some of the other first-round projects or to find another funding source for the solar panels so the Las Juntas and Vicente projects can be completed in the first round.

The $45 million bond will be repaid over 25 years at a total projected cost of $99 million. Martinez property owners are paying nearly $62 per $100,000 of assessed valuation to repay $48 million in existing school bonds.