CC 02-04-2025 Item No. 10. Photovoltaic Systems Design & Installation Project _Desk Item
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: February 4, 2025
Agenda Item #10
Subject
Award of a design‐build contract to Syserco Energy Solutions for $4,339,881 and
award a project management and construction management agreement to 4Leaf, Inc.
for $225,000 for the Photovoltaic Systems Design and Installation Capital
Improvement Programs Project.
Recommended Action
1. Award a design‐build contract for the Photovoltaic Systems Design and
Installation Project (budget unit 420‐99‐274) in the amount of $3,939,881 with
Syserco Energy Solutions, Inc., as the Design‐Build Entity.
2. Authorize the City Manager to execute the design‐build contract with Syserco
Energy Solutions, Inc. with substantially similar terms as those in the draft
contract in Attachment A, when all conditions have been met.
3. Authorize the Director of Public Works to execute any necessary change orders
up to a contingency amount of $400,000 (approximately 10%) for a total contract
amount of $4,339,881.
4. Authorize the City Manager to execute a professional services agreement with
4Leaf, Inc. for project and construction management services, for a total not‐to‐
exceed contract amount of $225,000.
Background:
The NEM 2.0 interconnection applications were successfully submitted to PG&E for
five City of Cupertino facilities. This Project aims to design and build PV systems at
three of the five locations. The NEM 2.0 projects must be completed by April 15, 2026,
to receive the incentive, otherwise the NEM 3.0 program would be applied to these
properties. The NEM 2.0 rates provide 75 ‐ 80% greater compensation than NEM 3
rates for electricity that is generated and fed back into the electrical system. The
savings in utility costs for the three proposed sites are projected to be approximately
$276,000 annually, and $13 million over a 30‐year lifespan.
Q1: For Memorial Park area, please provide your assessment on installation
on the roof or the front parking lot of Quinlan or the other areas you have
considered. (Chao)
Staff response:
Roof installation at Quinlan Community Center: The rooftop at Quinlan community
center is not ideal for solar on this project for several reasons.
a. The NEM2 application that was filed for the site allows for up to a 20% reduction
of the original submitted system size, so, reductions beyond this point would
move the project to NEM3, which would result in far lower energy savings for the
city. For solar systems to function optimally (in the northern hemisphere,) the
modules ideally face east, west, or south to maximize captured sunlight – looking
at the roof planes ranging from east to west (clockwise,) there is room for just over
100 kW of system size in the unshaded areas, far below the threshold needed to
maintain the NEM2 application on site (325kW).
b. Since we cannot put the entire array on the roof, it is worth noting that a rooftop
installation in addition to carport installation is more expensive than the carport
only.
Quinlan Community Center (QCC) Front Parking Lot: A layout of carport PV arrays
in the front parking lot of QCC could meet the system size requirements of the NEM2
application by covering most of the parking area. However, such an installation would
be comprised of many thin, unoptimized carports and major shading concerns. The
increased number of carports also significantly increases the project cost due to (a) the
increased number of foundations and steel structures, (b) the increased number of
electrical connections, and (c) the increased number of EVCS and accessible parking
spaces.
Shading at Quinlan Community Center (QCC) Rear Parking Lot: While shading is a
concern at this installation location, it does not unduly impact the arrays’ ability to
produce energy. The direct anticipated shading losses from the trees on site at Quinlan
community center are roughly 6% – these losses are predominantly concentrated in
the winter months when the sun angle is low, though during the spring, fall, and
summer months when the majority of array production is generated, shading does not
significantly impact the arrays.
This project does not include removing the redwood trees from the site. The small trees
located along the northerly edge of the back parking lot are currently intended for
relocation.
Q2: Could we possibly use wooden support such as the following for the
Memorial Park picnic area and the parking lot area?
For picnic area?
For the picnic area, would there be outline for 120V and USB ports for laptops
and phones? That might make the solar panels at the picnic area quite
popular. ϠϡϢ
(Chao)
Staff response:
These images portray a few options for wood or timber structures:
a. Custom Glulam wood structure (images 1 and 3): Due to the lead times and cost
implications, the City would not be able to utilize custom glulam materials for this
project.
b. ‘Standard’ wood structure (images 2, 4 and 5): potentially possible. As we enter
into the schematic design phase of the project, we will investigate if such a
structure is economically feasible and if we can still make the April 15, 2026
project deadline. We recommend a 15% increase on the DBE contract for the
QCC project cost (approximately $300K additional contingency) to allow for this
possibility.
c. Wood sheathing over steel structure: this could be possible and has the benefit of
allowing completion of these architectural features to occur after the April 15,
2026 deadline. We recommend a 15% increase on the DBE contract for QCC
project cost (approximately $300K additional contingency) to allow for this
possibility.
d. Other aesthetic finishes: We can install the carport and picnic area PV arrays with
a painted steel finish, and at a later date, apply a number of finishing options
without impacting the April 15, 2026 deadline. Some options to consider: specialty
paint finishes, wood sheathing (as mentioned above), wood screens or partitions,
metal perforated screens, etc.
Adding USB and 120v ports/outlets at some locations will be considered.
Attachments Provided with Original Staff Report:
A. Draft Design‐Build Contract
B. Draft Professional Services Agreement
C. FY 24‐25 CIP Project Narratives Excerpt
D. RFP for Design‐Build Entity