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CC 12-03-2024 Item No. 12. Photovoltaic Systems Project_Staff PresentationCity Council Meeting December 3, 2024 CAPITAL IMPROVEMENT PROGRAMS Photovoltaic Systems Design & Installation Project Subject Capital Improvement Programs’ Photovoltaic Systems Design and Installation project Recommended Action Approve the Capital Improvement Programs Photovoltaic Systems Design and Installation Project conceptual design for three City of Cupertino facilities: •Community Hall, •Cupertino Sports Center, and •Quinlan Community Center Tonight’s Action Photovoltaic Systems Design & Installation project - AGENDA 1.Background Information 2.Review project site conceptual design 3.Costs & Savings projections 4.Next Steps •FY24-25 CIP project, funded for $6.3M •Submitted interconnection applications to grandfather NEM 2.0 rates for 5 sites in 2023. NEM 2.0 provides 80% better buy-back rates for electricity. These sites must be activated by April 2026 •Savings in utility costs are projected to be $276,000 annually, and $13M over a 30yr lifespan if the recommended three sites are implemented •Inflation Reduction Act (IRA)/Direct Pay program offers rebate of 40% of costs for PV systems •Installing photovoltaic systems at these sites does trigger code requirements to improve accessibility and EV charging stations Background Information Sustainability Commission voted unanimously to recommend to City Council: a.Approve the Installation Project’s Conceptual Design for five City of Cupertino facilities: Quinlan Community Center, Community Hall, Cupertino Sports Center, Blackberry Farm, and Cupertino Library. b.If the above recommendation is not fully approved by the City Council due to budget constraints, then the Sustainability Commission recommends the installation of the Photovoltaic Facilities in order of preference: Quinlan Community Center, Cupertino Sports Center, Community Hall, Cupertino Library, and Blackberry Farm. c.The Commission also requests that the City of Cupertino pursue a funding agreement with Santa Clara County Library District for that facility’s portion of the project. Background Information: Sustainability Commission Parks and Recreation Commission voted unanimously to recommend to City Council: a.Approve the Capital Improvement Program Photovoltaic Systems Design and Installation project's conceptual design for three City facilities: •Community Hall, •Cupertino Sports Center, and •Quinlan Community Center. b.Include the Library if there was an agreement with the Santa Clara County Library District and they would pay a substantive amount. Background Information: Parks and Recreation Commission Proposed Site Conceptual Designs •Utilizes existing roof areas with the most effective solar orientation to maximize profit and mitigate the costs of the system. •Freestanding arrays provide shaded parking and significant shaded picnic area. Northern carport will require some tree trimming to maintain solar access and may require shade be provided for some existing ADA stalls. •The picnic area structure will be designed to respond architecturally to the layout of the picnic area (rather than one large single shed roof as shown in the illustration). •Preserving significant trees and working within the aesthetics of the park were high priorities. PV systems kWh generation 453,795 PV systems annual savings*$154,217 PV systems lifecycle savings***$7,272,774 Construction Cost - Total (PV+EV)$2,493,000 Direct Payback (IRA) funding (40%, PV only)$867,200 City Funding $1,625,800 Payback period (years, discounted cash flow)9.21 Quinlan Community Center Sports Center •The proposed locations have optimized west and south facing solar access, providing shade for some parking spaces and spectator areas. •The northern array is split to allow for pedestrian and operational access to the courts. PV systems kWh generation 322,104 PV systems annual savings*$93,047 PV systems lifecycle savings***$4,434,018 Construction Cost - Total (PV+EV)$1,965,000 Direct Payback (IRA) funding (40%, PV only)$726,000 City Funding $1,239,000 Payback period (years, discounted cash flow)11.11 Ideally oriented system with rooftop racking. Roof penetrations will not be required, as system will be able to clamp to standing seam roof profile. PV systems kWh generation 66,784 PV systems annual savings*$29,441 PV systems lifecycle savings***$1,315,345 Construction Cost - Total (PV+EV)$377,000 Direct Payback (IRA) funding (40%, PV only)$150,800 City Funding $226,200 Payback period (years, discounted cash flow)7.15 Community Hall •Modules are ideally oriented to the west or south. •Standing seam rooftops (supporting the two largest rooftop arrays) are ideal for supporting solar, as racking can be clamped to the standing seams as opposed to penetrating the roof surface. •Long trenching/boring routes will be required to consolidate generation at point of interconnection. •Some trees will need to be removed or significantly trimmed to support carport installation. •SCCLD pays electrical bill for the next 20 years, so direct benefit to the City will be long term. Library PV systems kWh generation 621,477 PV systems annual savings*$189,074 PV systems lifecycle savings***$10,847,040 Construction Cost - Total (PV+EV)$4,103,000 Direct Payback (IRA) funding (40%, PV only)$1,521,200 City Funding $2,581,800 Payback period (years, discounted cash flow)11.33 •Single continuous system that requires fewer trenching/ boring paths from various points on site, mitigating costs. •Proposed kWh generation slightly exceeds usage •The system is far enough from trees that tree trimming will not be needed to ensure solar access, and the existing netting system will protect the array from golf balls. •With system shading parking stalls, proportional shade coverage will need to be provided on ADA parking stalls. Blackberry Farm PV systems kWh generation 110,948 PV systems annual savings*$38,253 PV systems lifecycle savings***$1,563,642 Construction Cost - Total (PV+EV)$1,056,000 Direct Payback (IRA) funding (40%, PV only)$382,400 City Funding $673,600 Payback period (years, discounted cash flow)14.08 Costs & Savings Costs & Savings: Implement all Five Sites •Annual Cost Savings: $504,032 projected, with $25.4M 30-year lifecycle savings •Cost of Design and Construction ($10M to $12M) exceeds $6.3M project budget. This option requires Council’s approval to increase the project budget by ~$6M. •BBF has higher costs compared to utility reduction benefit, resulting in a longer payback period. •Library tenant (SCCLD) will reap the benefit of a reduced electrical bill for the duration of their lease (~20 years). The City’s benefit will be the increased resilience of the Cooling Center once battery back- up systems are installed as a follow-up project. Costs & Savings: Four Sites (Eliminate BBF) •Annual Cost Savings: $465,779 projected, with $23.9M 30-year lifecycle savings. Cost benefit is slightly lessened from 5-site option, but not significantly. •Cost of Design and Construction ($9M to $11M) exceeds $6.3M project budget. This option requires Council’s approval to increase the project budget by ~$5M. •Library tenant (SCCLD) will reap the benefit of a reduced electrical bill for the duration of their lease (~20 years). The City’s benefit will be the increased resilience of the Cooling Center once battery back- up systems are installed as a follow-up project. Costs & Savings: Four Sites (Eliminate Library) •Annual Cost Savings: $314,958 projected, with $14.6M 30-year lifecycle savings. Cost Benefit is notably lessened from 5-site option. •Cost of Design and Construction ($6M to $7M) exceeds $6.3M project budget. This option requires Council’s approval to increase the project budget by ~$1M. •BBF has higher costs compared to utility reduction benefit, resulting in a longer payback period. Costs & Savings: Three Sites (Eliminate BBF and Library) •Annual Cost Savings: $276,705 projected, with $13M 30-year lifecycle savings. Cost benefit is significantly lessened from 5-site option. •Cost of Design and Construction ($5M to $6M) is within the $6.3M project budget. The project team recommends proceeding with this option. Next Steps Objectives & Next Steps •The Request for Proposals (RFP) process is underway. Update the RFP proposers with Council’s direction, following this meeting. •Negotiate terms with successful Design/Build Entity and return to Council in January 2025 to award contract. •Initiate design process, including procurement, in January 2025. Completion required by April 2026. Subject Capital Improvement Programs’ Photovoltaic Systems Design and Installation project Recommended Action Approve the Capital Improvement Programs Photovoltaic Systems Design and Installation Project conceptual design for three City of Cupertino facilities: •Community Hall, •Cupertino Sports Center, and •Quinlan Community Center Tonight’s Action Thank You!