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Confusion over solar panels leaves Menlo Park with bill

by Sean Howell

Construction on a new gymnasium in Menlo Park's Civic Center is already under way, but whether it will feature solar panels is suddenly an open question.

When the City Council approved the project in July, city management said that Palo Alto real estate heavyweight and major Stanford donor John Arrillaga, who has offered to pay the bulk of construction costs for the facility, had also agreed to provide the solar panels.

At the Dec. 15 council meeting, however, Public Works Director Kent Steffens said he had since learned that the solar panels were not within the scope of Mr. Arrillaga's donation. He did not say whether Mr. Arrillaga had changed his mind, or whether there had been a misunderstanding at the outset.

If the city decides to install the solar panels, the $144,000 budgeted for them would now come out of proceeds from the voter-approved bond measure that is funding $7.3 million in design, construction and other costs. At the urging of Councilman John Boyle and the unanimous agreement of the council, the city will conduct a thorough study to determine whether the panels make sense at that location before making a final decision on whether to install them.

While according to Mr. Steffens the solar panels would provide only a "small portion" of the building's electricity, their installation would help the building to attain the LEED Silver certification from the U.S. Green Building Council that the builders are striving for. The city has already budgeted $250,000 for the LEED certification process.

"We need to understand how much we're willing to spend for a real return in terms of lowering costs, versus a nice symbolic gesture — though there's value in that, too," said Mr. Boyle, who voted against the earlier decision to complete the certification process.

Councilwoman Kelly Fergusson has argued that going through the LEED certification process could save the city in operating costs, because it would ensure that the building is constructed to specification.

And Mr. Steffens said that the city would eventually make back the money it spent on solar panels in reduced energy costs.

"It's sort of moot in my mind, the question of how this happened," Mr. Boyle said. "I wouldn't begin to say that (Mr. Arrillaga) changed his mind, or that staff made a mistake. It doesn't really matter to me."

Mr. Arrillaga is still expected to pay some $8 million in construction costs, covering all costs over the city's commitment.

Mr. Steffens and Mr. Arrillaga did not return calls seeking comment.