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Daly City awards design‑build energy upgrade for Fire Station 93, council hears technical questions about warranties and storage

Daly City City Council · June 24, 2024
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Summary

Council approved a design‑build contract with Cicero/Sysirco Energy Solutions for solar, HVAC electrification, LED lighting and roof work at Fire Station 93; staff cited a $576,400 construction estimate, tax-credit-adjusted net of $491,124, and an approximate 14‑year ROI under NEM 3 tariff assumptions.

Daly City Council on June 24 approved a design‑build energy services agreement with Cicero/Sysirco Energy Solutions for upgrades at Fire Station 93, including HVAC heat-pump conversion, rooftop solar photovoltaic panels, LED lighting and apparatus bay roof replacement.

Staff described the project as aligned with the city’s Climate Action Plan and said it used procurement authorities in California Government Code §4217 and Public Resources Code §25008 that permit energy‑improvement contracting without full public bid in some cases. The presentation listed a construction estimate of $576,400 and cited an $885,276 tax-credit figure in the proposal materials that the presentation said brought the estimated completion construction cost to approximately $491,124; staff also cited an estimated return on investment of about 14 years under the NEM 3 tariff assumptions used in the design model.

Councilmember Glenn Sylvester asked technical questions about panel warranties (staff said the proposed Tier 1 modules carry a 25‑year degradation warranty and a 30‑year life-cycle warranty; inverters typically last about 15 years) and whether battery storage was modeled. Presenters said storage had been financially modeled but did not materially improve project economics given the site’s existing diesel generator and the cost and life cycles of batteries; staff said the electrical design allows future battery addition when economically viable. Council also asked whether the contractor would work with local union contractors; staff said Cicero/Sysirco solicited local union bids during cost estimating and intends to use local union labor where appropriate.

After a public hearing with no speakers, council adopted the resolution awarding the design‑build contract by unanimous roll call. Staff said funding is available in fire-station project accounts and that the project will yield reductions in greenhouse-gas emissions and long‑term energy savings.