Your HOA at Work

LARMAC Continues to Innovate to Control Costs

Solar at Cox Sports Park keeps energy costs flat; In-house staff saves thousands annually.

In 2017, the LARMAC Board considered opportunities to use solar to control operating costs. Cox Sports Park was the best opportunity to install this cost-saving measure since it used the most energy of all LARMAC’s facilities. The sports park facility used the most energy during the lowest cost time of day – in the evening when the field lights were in use. Additionally, given the proposed footprint of the large shade structure that would be installed on Cox Sports Field, the system could generate the most energy.

In 2018, the investment of $433,900 to install the solar array project was estimated to reduce electrical usage by 71%, saving the association $63,000 in the first year alone, and would have a payback period of five years.

Since the solar project was installed at Cox Sports Park, electrical usage at the sports park has been reduced by 75% or 154,416 kWh. In 2018, the park used 206,472 kWh, and in 2022, the electricity usage was 52,056 kWh.

With the rise in energy costs over the past five years combined with the fact that LARMAC is using less energy today, LARMAC has seen a 233% increase in the average kWh cost. It paid $0.68/kWh in 2018 and now pays an average of $2.27/kWh.

Since the solar array system was activated in late 2018, a normalized annual savings is challenging to determine given the inconsistent use during the past five years. Field use decreased significantly in parts of 2020 and 2021 due to the COVID shutdowns. Adding to the complexities are the dynamic rates SDG&E introduced, which vary based on usage.

When LARMAC compares the first eight months of 2023 with the same period in 2018, there is a noticeable reduction in overall usage and expense:

  • 2018: 140,439 kWh / $97,255 in expenses / $0.69 average kWh
  • 2023: 56,458 kWh / $88,085 in expenses / $1.56 average kWh
  • Energy usage is down 60%
  • Energy expenses are down 9%
  • Average kWh rate is up 126%

These comparison numbers reflect a significant energy reduction (60%); however, the cost of energy is significantly higher today than it was in 2018 (up 126%), which leads to annual savings that are considerably less than the energy reduction.

Another way that LARMAC has used innovation to control its operating costs, and monthly homeowner assessments, is by bringing projects in-house. LARMAC has trained in-house staff members to repair concrete sidewalk lifts and rebuild wooden trellis and gazebo structures, which saved the master homeowner association tens of thousands of dollars by using LARMAC staff to complete the work rather than outside vendors. A recent example is a trellis repair project that was completed in-house and saved the association approximately $30,000.

Ken Gibson, LARMAC General Manager, said, “The LARMAC Board is comprised of resident volunteers who contribute their talents and expertise to benefit our community and residents. The foresight of the LARMAC Board and the staff working together to make the project a reality is to be commended. It has made a significant impact in containing costs and, ultimately, saving residents money.”

Original article: LARMAC Brings Solar to Cox Sports Park, Benefits Ladera Residents and the Environment