Cupertino awards $4.34 million design-build contract for solar installations, approves PM/CM agreement

The Cupertino City Council on an evening vote approved a design-build contract with Sizer Co and a project management and construction management (PM/CM) agreement with 4 Leaf Inc. for photovoltaic installations at three city sites, a package the staff says will preserve NEM 2 interconnection rates and reduce energy costs over time.

The contract approved authorizes a base design-build award to Sizer Co of $3,939,881 and allows change orders up to a $400,000 contingency, bringing the contract ceiling to $4,339,881. The council also approved a $225,000 professional services agreement with 4 Leaf for project and construction management. Susan Michael, the city’s capital improvement program manager, told council the project was included in the FY 2024–25 CIP and has been reviewed by several commissions and the public.

Why it matters: Staff said the project would help the city lock in NEM 2 rates with PG&E, which staff estimated could be worth roughly $4 million over a 30-year lifecycle compared with NEM 3 treatment. The presentation projected about $290,000 in annual utility cost savings and a 30-year lifecycle savings of roughly $13.4 million for the three sites combined.

Staff presentation and council questions

“Siting and procurement have been a multi‑step process,” Michael said, summarizing the RFQ/RFP procurement and community outreach. She described a simplified Quinlan scope that reduced Quinlan costs by about $500,000 during design development.

Councilmembers pressed staff on aesthetics, site selection and the project’s economics if federal incentives changed. Vice Mayor Moore, who moved the staff recommendation, emphasized the importance of meeting the April 2026 NEM 2 deadline. Councilmembers asked whether the project could be scaled back (removing the Quinlan site) and how that would affect economies of scale and per-site pricing; staff said removing a site could raise the unit cost for the remaining work.

Public comment

Residents who spoke both supported and opposed aspects of the project. Several speakers urged protecting existing trees and using rooftop space rather than park canopies; others said Memorial Park picnic areas are underused and supported adding shade structures that also generate power. One commenter asked for a “plan B” if federal incentives were not available.

Council action and vote

Vice Mayor Moore moved to approve the staff recommendation; a second was recorded. The motion passed 3–2, with Councilmembers Wong and Mayor Chow recorded as voting no. The staff presentation and supplemental materials show an approved project budget of $6.3 million; awarding the contracts leaves roughly $1.6 million unallocated in that project budget, per the staff report.

What the contracts require

If the contracts are executed, staff will proceed to schematic design and then building permits. Michael said the design phase will address aesthetics and site-specific details, including how to integrate park features such as the Toyokawa stone lanterns and existing gazebo elements. The Quinlan roof was considered but staff recommended carport or canopy options rather than roof-mounted arrays due to roof configuration and cost.

Quotes

"It is crucial that we act on this project tonight in order to begin work on the project and work towards the April 2026 deadline to preserve the NEM 2 rates with PG&E," Susan Michael said during the presentation.

Ending

Staff will return with contract documents for signature and proceed to design if the city manager executes the contracts. The approved awards begin procurement and design work so the city can file for interconnection under the current NEM 2 rules and pursue the expected lifetime savings cited in the staff analysis.