05 Staff Report.Energy Efficiency Upgrades Town-wide Project Close Out
PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/06/2020
ITEM NO: 5
DATE: September 30, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Accept the Completion of Work Performed by Syserco Energy Solutions, Inc.
for PPW Job No. 411-821-2008 Energy Efficiency Upgrades
RECOMMENDATION:
Accept the completion of work performed by Syserco Energy Solutions, Inc. for PPW Job No.
411-821-2008 Energy Efficiency Upgrades.
BACKGROUND:
At the October 2, 2018 Town Council Meeting, Council authorized the Town Manager to
execute an Energy Services Agreement with Syserco Energy Solutions, Inc. for the design,
installation, and commissioning of heating, ventilation and air conditioning (HVAC), building
envelope, and lighting improvements at various Town facilities for a total project cost not to
exceed $1,664,358.
The delivery method chosen for the project was taken from a specific section of the California
Government Code (4217.10 et seq) that allows for entering into design-build energy services
contracts where the Town would work directly with a licensed contractor to develop and
complete energy efficiency projects.
DISCUSSION:
Syserco Energy Solutions, Inc. has satisfactorily completed all of the work for the project for a
final contract amount of $1,664,358. PG&E has completed its project verification report and
approved the On-Bill Financing zero percent loan in the amount of $1,560,335.60. The check
was delivered to the Town on August 9, 2020. The execution and recordation of the Certificate
of Acceptance is now required to finalize the Town’s acceptance of the project.
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SUBJECT: Accept the Completion of Work Performed by Syserco Energy Solutions, Inc. for PPW
Job No. 411-821-2008 Energy Efficiency Upgrades
DATE: September 30, 2020
CONCLUSION:
Staff recommends accepting the completion of work performed by Syserco Energy Solutions,
Inc. called for in the agreement with the Town of Los Gatos dated September 19, 2018. The
Town will pay back the loan through payments on the PG&E bill for each location where work
was done. The energy savings over the loan period are calculated to be less than the cost of
the total financed improvements. However, all the improvements will ultimately be financed
through anticipated energy savings.
FISCAL IMPACT:
Staff completed the project within the approved budget as shown below. The savings will go to
the GFAR fund balance.
Energy Efficiency Upgrades - Town-wide
Project 821-2008
Budget Costs
GFAR $1,696,687
Total Project Budget $1,696,687
Syserco Energy Solutions $1,664,358
Advertising $139
Total Project Costs $1,664,497
Project Savings $32,190
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.