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HomeMy WebLinkAboutSyserco Energy Solutions, Inc. (2) Page 1 of 8 ENERGY SERVICES CONTRACT This Energy Services Contract ("Contract") is made and entered into as of November 22, 2021 (“Effective Date”), between Syserco Energy Solutions, Inc., a California company (“Energy Services Contractor”), having its principal offices at 215 Fourier Ave, Fremont, CA 94539, and the Town of Los Altos Hills, having its principal office at 26379 Fremont Rd, Los Altos Hills, CA 94022 (“Town”), who are collectively referred to as the “Parties”, or individually as a “Party”. WHEREAS, Energy Services Contractor is a company with experience and technical and management capabilities to provide for the discovery, engineering, procurement, installation, financing, maintenance and monitoring of energy saving measures, solar power generation measures, and/or operations and maintenance cost reductions at facilities similar to Town’s facilities; WHEREAS, Energy Services Contractor has prepared a project proposal in the form of an Energy Services, (“Proposal”) for Town; and WHEREAS, Town desires for Energy Services Contractor to perform certain work as identified in this Contract, and Energy Services Contractor desires to perform such work; WHEREAS, this Contract is procured pursuant to the following procurement statute or other authority: CA Legislative Government Code 4217. Energy Services Contractor enters into this Contract in reliance on Town’s representations concerning the appropriateness and validity of the procurement mechanism(s) under which this contract is procured. Town as a fiduciary acknowledges such reliance by Energy Services Contractor. NOW THEREFORE, the parties agree as follows: 1. Contacts. As of the Effective Date, and subject to change from time to time, the following persons are the primary representatives of each party as related to execution of this project: For Energy Services Contractor: Name: Gabe Johnson Title: Account Executive Address: 215 Fourier Ave., Suite 140, Fremont, CA 94539 Telephone: 707-227-6377 Email: g.johnson@syserco.com For Town: Name: Peter Pirnejad Title: City Manager Address: 26379 Fremont Road, Los Altos Hills, CA, 94022 Telephone: 650-947-2514 Email: ppirnejad@losaltoshills.ca.gov 2. Scope of Work. Energy Services Contractor agrees to perform the design and/or construction work set forth in the proposal described as Energy Services Proposal (“Work”) and attached hereto as Exhibit A. Town agrees to take all actions identified in this Contract that are necessary to achieve the project benefits identified. Energy Services Contractor will provide all labor, materials, equipment, and supervision, including subcontractors, necessary to perform the Work. If included in the Proposal or other exhibit to this Contract, Energy Services Contractor also agrees to perform post-construction services, which may include monitoring, measurement and verification services, following Substantial Completion of the Work (“Services”). 3. Compensation. Town shall pay Energy Services Contractor an amount not to exceed E i g h t DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 2 of 8 H u n d r e d S e v e n t e e n T h o u s a n d , F i v e -H u n d r e d E i g h t y d o l l a r s a n d n o C e n t s ($817,580) (“Price”) as compensation for Energy Services Contractor ’s performance of the Work and Services as provided herein and only upon satisfactory delivery/completion of goods/services in a manner consistent with professional/industry standards for the area in which Energy Services Contractor operates. TOWN is not responsible for paying for any work done by Energy Services Contractor or any subcontractor above and beyond the not to exceed amount , unless specifically adjusted by Change Orders agreed upon and executed by the parties. Town shall pay Energy Services Contractor in accordance with the Schedule of Values that shall be reviewed and approved by Town prior to beginning the Work. Town shall pay Energy Services Contractor within fifteen (15) days of receiving an invoice. Energy Services Contractor will be entitled to interest at the rate allowed by law on all sums overdue and unpaid from the date due. Additional project financial information including total compensation and payment terms is as set forth in the Proposal, or other attached exhibits, as applicable. 4. Time. The Work to be performed under this Contract shall begin within 30 days of the date of an Executed Contract or Letter of Award (“Commencement Date”) and is anticipated to end by the earlier of the dates set forth in Section 4.a. or 4.b., below (“Time”). If the Work is divided into phases or individual projects, each phase or project will start in accordance with the timeline included as part of this Contract. The Work, but not the Services, shall be completed by the date that is the earlier of: a. The date on which Energy Services Contractor is substantially complete with the Work. Substantial completion means that Energy Services Contractor has performed enough of the Work so that Town may use the Work for its intended purpose or realize an intended benefit from the Work. If the Work is divided into phases or individual projects for which individual prices have been negotiated (“Phase”), then substantial completion dates shall apply to each phase or individual project as indicated in this Contract. Substantial completion should be demonstrated via execution by Town of a certificate of substantial completion. b. 365 days after the Commencement Date, subject to equitable extensions of Time, or pursuant to this Contract. Any Services shall commence on the substantial completion date, unless a different date is specified herein, and shall continue for a 1-year period unless a different period is specified herein. The conditions of all utility cost savings as set forth in the Energy Services Proposal shall coincide with the term of the Services. If for any reason Town terminates or breaches this Contract including but not limited to its obligations pursuant to the Services portion of the Contract or other separate agreement, the utility cost conditions of this agreement shall automatically terminate. 5. Permits, Approvals, Taxes. Unless obtained by Town or otherwise specified in this Contract, Energy Services Contractor shall obtain all permits, licenses, and inspections that are required for the Work. Town shall pay all taxes associated with the Work including, sales, use, real estate, and personal property taxes. 6. Safety. Energy Services Contractor shall be responsible for initiating, maintaining, and supervising safe performance of the Work. Energy Services Contractor shall comply with all applicable laws, ordinances, rules, regulations, and lawful orders of public authorities related to safety of persons or property. 7. Cleanup. Energy Services Contractor shall keep the premises and the surrounding area free from accumulation of waste materials or rubbish caused by the Work. Upon completion of the Work, Energy Services Contractor shall remove all waste materials, rubbish, tools, construction equipment, machinery, and surplus materials. 8. Subcontractors. Energy Services Contractor may hire subcontractors to perform any portion of the Work or Services under this Contract. Energy Services Contractor is entirely and ultimately responsible for compliance with the provisions of this Contract and for any part of work that is performed by a subcontractor. DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 3 of 8 9. Borrowed Equipment. If requested by Energy Services Contractor and if permitted by Town’s representative, Energy Services Contractor may use Town’s equipment in performing the Work or Services. Energy Services Contractor assumes full and complete responsibility for the use of the equipment, will ensure that only a competent operator will be permitted to use the equipment and only after fully inspecting the equipment, shall not modify the equipment, shall be solely responsible for all claims, demands, lawsuits, losses, expenses and/or liabilities that arise from its use of the equipment to the extent of Energy Services Contractor’s negligence, and agrees that Town makes no representation or warranty regarding the condition or suitability of equipment for any intended use. 10. Insurance. Prior to commencing Work, Energy Services Contractor shall provide to Town a certificate of insurance. Energy Services Contractor shall maintain such insurance in full force and effect at all times until the Work has been completed, in the following minimum amounts: Type of Insurance Coverage General Liability $2,000,000 General Aggregate / $1,000,000 Each Occurrence Automobile Liability $1,000,000 Combined Single Limit Workers Compensation Statutory The Town, its officers, officials, employees and agents shall be covered as additional insured with respect to liability arising out of activities performed by or on behalf of Energy Services Contractor. The insurer shall waive all rights of subrogation against the Town, its officers, officials, employees and agents for loss arising from work performed under this Agreement. The certificate of insurance shall include a clause providing 30-day written notice of policy cancellation to the Town. 11. Bonds. If required by Town and not included in the Proposal, Energy Services Contractor shall furnish a performance bond and/or a payment bond, in an amount equal to the construction cost of the Work, and such cost shall be paid by Town in addition to the Price. The performance bond shall cover completion of the physical work per the approved design. The bonds shall not guarantee or warranty the efficiency or performance of any aspect of the Work or Services, and shall not cover any obligation of Energy Services Contractor to ensure that the Work as constructed, or Services, will result in any particular level of energy savings. Any suit on the Bonds must be brought within the period of one (1) year after substantial completion; provided, however, that if this suit limitation is void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. Energy Services Contractor may furnish a retention bond in lieu of retainage held on respective monthly invoices. 12. Hazardous Materials. The Work and Services expressly exclude any work of any nature associated or connected with the identification, abatement, cleanup, control, removal, or disposal of hazardous materials or substances, including but not limited to asbestos, lead, or PCBs. As of the Effective Date, Town represents that, to the best of its knowledge, there is no hazardous material on the premises that may in any way relate to the Work or affect Energy Services Contractor’s ability to deliver the Work or Services. Prior to the Commencement Date, Town shall provide to Energy Services Contractor a comprehensive good faith survey that at a minimum complies with applicable regulatory requirements, and identifies all actual or suspected hazardous materials, quantities, and specific locations of such materials on the premises. Failure to provide such good faith survey timely shall result in an equitable adjustment to Time. If Energy Services Contractor becomes aware of or suspects the presence of hazardous materials on the premises during the Work or Services, Energy Services Contractor shall notify Town, Town shall investigate and correct the suspected hazardous materials in accordance with all applicable laws, Energy Services Contractor shall have the right to stop work in the affected area until the suspected hazardous materials are investigated and remediated by Town, and the Time and Price shall be equitably adjusted relative to the duration of Town’s investigation and remediation of the suspected hazardous materials. 13. Delays. If Energy Services Contractor is delayed in the commencement or completion of the Work or Services by causes beyond its control that are unforeseeable and cannot be mitigated or prevented with due diligence, including but not limited to fire, flood, theft, vandalism, labor disputes, abnormal adverse weather DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 4 of 8 conditions, acts of God, acts of the public enemy, riot, war, unavailability of equipment or supplies, or supply chain delays caused by any of the foregoing , then Energy Services Contractor shall provide written notice to the Town of the existence, extent of, and reason for such delays, and an equitable adjustment in the Time of the Contract shall be made as a result. If a delay is attributable to failure by Town to perform its obligations under the Contract or failure to cooperate with Energy Services Contractor in the timely completion of the Work, an equitable adjustment to Time and Price shall be made as a result. 14. Certificate of Substantial Completion. Upon Substantial Completion of any Phase of the Work, Town shall execute a certificate of substantial completion acknowledging: a. The portion of the Work substantially completed, and the date of substantial completion. b. Receipt of any manuals and training provided by Energy Services Contractor under this Contract. c. Any warranty start date and warranty period. d. A punch list of items remaining to be completed by Energy Services Contractor. Timing of Substantial Completion does not depend on Town’s timely executing a certificate of substantial completion, and failure by Town timely to execute a certificate of substantial completion shall not operate to extend the date of Substantial Completion. 15. Town Use. Upon substantial completion or start of beneficial use, whichever occurs first, Town is responsible for use, operation, and maintenance of all aspects of the Work and Services. Energy Services Contractor shall not be responsible for improper use, operation, or maintenance of any aspect of the Work or Services by Town or others at any time. 16. Warranty. Energy Services Contractor warrants that the Work will be of good quality and new; that the Work will be free from defects not inherent in the quality required or permitted; and that the Work will conform to this Contract. Energy Services Contractor warrants that the Work shall be free from defects in material and workmanship arising from normal usage for a period of one ( 1 ) year from the date of substantial completion, or start of beneficial use by Town, whichever is earlier. This warranty does not cover any improper use, operation, or maintenance of any aspect of the Work, or if the Work has been abused, altered, or repaired by the Town or third parties without supervision by or prior written approval from Energy Services Contractor, or if serial numbers or warranty date decals have been removed or altered. Town must report any warranty claims to Energy Services Contractor in writing, and such claims must be presented immediately upon having reason to know that a warranty issue exists. Failure by Town to notify Energy Services Contractor of the need for warranty service within ten days of discovery of a warranty claim will void this warranty. Additionally, Town shall not hire or direct others to repair any warranty item without Energy Services Contractor’s written consent. Town’s repair of any warranty item without the written consent of Energy Services Contractor shall void this warranty with respect to such item, and the cost of such repair shall not be reimbursable to Town by Energy Services Contractor. Energy Services Contractor makes no warranty whatsoever regarding materials or products provided by third parties that are incorporated into the Work. THE WARRANTIES CONTAINED IN THIS CONTRACT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE. 17. Indemnity. Energy Services Contractor agrees to indemnify, defend and hold harmless the Town, its officers, agents and employees from any and all demands, claims or liability of personal injury (including death) and property damage of any nature (collectively “Liability”), caused by or arising out of the performance of Energy Services Contractor under this Agreement, except to the extent caused by Town’s negligence or willful misconduct. With regard to Energy Services Contractor‘s work product, Energy Services Contractor agrees to indemnify, defend and hold harmless the Town, its officers, agents and employees from any and all demands, claims or liability of any nature to the extent caused by the negligent performance of Energy Services Contractor under this Agreement. DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 5 of 8 18. Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR SIMILAR DAMAGES OR LOSSES, INCLUDING LOSS OF PROFITS, ARISING OUT OF OR RELATING TO THIS CONTRACT, WHETHER BASED IN CONTRACT OR TORT OR ANY OTHER THEORY, EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION SHALL NOT RELIEVE ENERGY SERVICES CONTRACTOR FROM ITS INDEMNIFICATION OBLIGATION UNDER SECTION 17. 19. Force Majeure. Energy Services Contractor shall not be liable to Town for damages, loss, injury, or delay caused by conditions that are beyond the reasonable control of Energy Services Contractor and cannot be mitigated or prevented with due diligence. Such conditions include, but are not limited to fire, flood, theft, pandemic, epidemic, vandalism, labor disputes, abnormal adverse weather conditions, acts of God, acts of the public enemy, riot, war, unavailability of equipment or su pplies, or supply chain delays caused by any of the foregoing. 20. Changes. The Work or Services may be changed pursuant to a written change order mutually agreed upon by the Parties and executed by an authorized Energy Services Contractor signer and Town signer with authorization from Town’s City Council (“Change Order”). A Change Order is valid only to the extent that it changes the scope of Work or Services, Price, and/or Time. Any invalid portions of a Change Order shall be disregarded. The Parties contemplate that Change Orders may include scope changes such as installation of additional utility conservation measures, facility improvement measures, and operational efficiency improvements or the furnishing of additional services within the identified facilities, as well as other facilities owned or operated by Town. Energy Services Contractor shall be entitled to a Change Order for additional or extra work or services provided by Energy Services Contractor to Town at Town’s request in writing, consistent with the requirements of this section. 21. Intellectual Property. Plans, designs, specifications, drawings, materials, exhibits, reports, memoranda, studies, software code, electronic data, and other intellectual information and materials provided by Energy Services Contractor to Town (collectively the “Intellectual Property”) as part of the Work or Services are instruments of service owned by Energy Services Contractor and are not “work made for hire” as such term is defined under U.S. copyright law. If this Contract is performed to completion, then Energy Services Contractor grants to Town a limited license to use the Intellectual Property to operate, maintain, renovate, and manage the subject matter of this Contract. The Intellectual Property shall not be used on other projects or for completion of the Work or Services by others, unless Energy Services Contractor is adjudged to be in material breach of this Contract, in which case Town shall use the Intellectual Property at its sole risk, and shall h old Energy Services Contractor harmless from any and all errors or omissions in the Intellectual Property. The parties acknowledge that monetary damages may not be a sufficient remedy for unauthorized use of Intellectual Property and that Energy Services Contractor shall be entitled, without waiving any other rights or remedies, to such injunctive or equitable relief as may be deemed proper by a court of competent jurisdiction. If any bond is required in connection with such an action, the allegedly breaching party agrees that $3,000 shall be a reasonable amount of such bond. 22. Termination. This Contract may be terminated at any time as described below: a. Termination for Cause. If Energy Services Contractor materially fails to perform under this Contract, Town may notify Energy Services Contractor in writing of Town’s intent to terminate this Contract along with a description of the alleged failure. If Energy Services Contractor does not in good faith take reasonable steps to correct such failure within fifteen (15) days after receipt of such notice, Town may terminate this Contract, and Energy Services Contractor shall be entitled to receive payment for all Work satisfactorily completed prior to termination. If it is determined for any reason that termination was improper, the termination shall be treated as a termination for convenience. DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 6 of 8 b. Termination for Convenience. Town may terminate this Contract in whole or in part for any reason by providing written notice of termination to Energy Services Contractor and specifying the date on when the termination becomes effective. Upon receipt of such notice, Energy Services Contractor shall incur no further obligations in connection with the terminated work and will stop work to the extent specified. Energy Services Contractor shall also terminate outstanding orders and subcontracts as they relate to the terminated work. Energy Services Contractor shall settle liabilities and claims arising out of the termination of subcontracts and orders connected with the terminated work. In addition, Energy Services Contractor may terminate this Contract in whole or in part for any reason by providing written notice of termination to Town and specifying when termination becomes effective. In such case, Energy Services Contractor shall refund to Town all amounts prepaid by Town and unearned by Energy Services Contractor as of the date of termination, and Town shall have no payment obligation to Energy Services Contractor for unperformed Work. c. Unappropriated Public Funds. Energy Services Contractor’s compensation in future years is contingent upon the availability of appropriations in future years sufficient to pay for this Contract. Payments pursuant to this Contract shall be made only from funds appropriated or available, as of the Effective Date of this Contract, to pay for this Contract, and Town’s liability for payments shall be limited to the amount of appropriated or available funds as of the Effective Date of this Contract. If Town funds are not appropriated or available to fund this Contract, then Town may terminate this Contract without further obligation related to the non appropriated or unavilable funds. 23. Disputes. The Parties agree that the following process will be used to resolve any dispute between them. All dispute resolution shall be conducted in good faith, shall be confidential, shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence, and shall be inadmissible in any litigation, or other judicial proceeding. a. Negotiations. First, the Parties will attempt to negotiate a resolution. b. Mediation. If a dispute remains unresolved more than thirty (30) calendar days after the commencement of negotiations and the Parties have not mutually agreed to extend the negotiation period, then the Parties shall pursue mediation. In mediation, the Parties shall mutually select a mediator, the cost of the mediator and other administrative costs shall be shared equally by the Parties, and each Party shall be responsible for its own costs and expenses. c. Judicial Reference. In the event of any legal action or proceeding based upon a controversy arising from or relating to this Agreement, the parties may elect, pursuant to California Code of Civil Procedure Section 638, to the appointment of a referee to hear and determine any or all of the issues in such action or proceeding, whether of fact or law. If mutually agreed upon by the parties, an agreement to the use of judicial reference may be filed with the clerk of the court; or in the alternative, either party may move the court for the appointment of a referee. 24. Notices. All notices to Energy Services Contractor shall be written, shall be sent via certified mail or a national courier service or personally delivered, shall consist of one original to Attn: General Counsel, Energy Services Contractor, 215 Fourier Ave, Fremont, CA 94539, and one original to the primary Energy Services Contractor contact for the Work, and shall be deemed delivered when received by the General Counsel. 25. Non-Solicitation of Employees. Town shall not, so long as Energy Services Contractor is engaged by Town and for twelve (12) months after such engagement ends, directly or indirectly solicit or recruit any employee of Energy Services Contractor to leave his or her employment with Energy Services Contractor. This DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Page 7 of 8 provision does not apply if the Energy Services Contractor employee approaches Town of his or her own accord. Energy Services Contractor and Town recognize that the damages to be sustained by Energy Services Contractor in the event of unauthorized hiring of an employee of Energy Services Contractor by Town will be difficult if not impossible to ascertain. Consequently, Town and Energy Services Contractor, after each having consulted with their respective legal counsel and being fully aware of their rights herein, do hereby agree that in the event that Town causes Energy Services Contractor to lose any Energy Services Contractor employee, Town agrees to pay to Energy Services Contractor an amount equivalent to the total prior twelve (12) months’ compensation, including but not limited to salary, bonuses, and benefits, of the Energy Services Contractor employee lost due to the unauthorized conduct of Town. Town and Energy Services Contractor, after consulting with their respective legal counsel on their rights herein, do hereby agree and stipulate that the liquidated damages sum is a fair and reasonable estimate of the damages which Energy Services Contractor will sustain in the event Company materially breaches this Agreement as referenced above, and that nothing herein shall be construed to be a penalty. 26. Choice of Law/Venue. This Agreement shall be governed and construed under the laws of the State of California, notwithstanding any choice of law provision whether statutory, common law, or contractual. The Parties consent to exclusive jurisdiction and venue in the state courts of California. Energy Services Consultant and Town waive all defenses of lack of personal jurisdiction and forum non conveniens. 27. Assignment. Neither Party may assign or transfer its rights and/or obligations under this Contract without the prior written consent of the other Party which shall not be unreasonably withheld. 28. No Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Contract shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver. 29. No Third Party Beneficiaries. There are no third party beneficiaries under this Contract or any portion thereof. 30. Severability, Survival. If any portion of this Contract shall be held invalid in whole or in part under any law, rule, regulation, or order, then such portion shall remain in effect only to the extent permitted, and the remaining portions of the Contract shall remain in full force and effect. Any invalid porti ons shall be substituted with an interpretation that most accurately reflects the Parties’ intentions. 31. Tax Benefits. Unless otherwise specified in this Contract, Energy Services Contractor is solely entitled to claim tax benefits available under section 179D of the Internal Revenue Code (EPAct), or its successor. 32. Waiver of Subrogation. The Parties waive all rights against each other and their directors, officers, agents, and employees, and other contractors, for damages or losses to the extent covered by insurance. 33. Amendment. This Contract may not be amended except pursuant to a written amendment signed by an authorized signer of each Party. 34. Headings. The headings of this Contract are for purposes of reference only and shall not limit or define the meaning of the provisions of this Contract. 35. Complete Agreement. This Contract, including the exhibits attached hereto, is a fully integrated agreement and contains the entire understanding between Energy Services Contractor and Town with respect to the subject matter hereof. Any legal terms and conditions appearing in any attachment to this Contract shall be ignored to the extent they contradict or are inconsistent with the terms and conditions contained in the foregoing DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF Majd Khleif CEO DocuSign Envelope ID: 92E02CE0-898C-4DFE-A494-BA2844AB71EF 11/23/21 Syserco Energy Solutions Exhibit A Energy Services Proposal Prepared for the Town of Los Altos Hills, CA Syserco Energy Solutions 215 Fourier Avenue Suite 140 Fremont, CA 94539 Jason Smith j.smith@syserco.com Ph: (510) 390-1088 Fax: (510) 498-1160 Table of Contents Introduction & Project Cost ..................................................................................................... 3 Project Scope of Work ............................................................................................................. 4 1.1 Scope of Work and Services .............................................................................. 4 1.2 Technical Details ................................................................................................. 4 1.3 Scope of Work Overview ................................................................................... 5 2. Customer Furnished/Performed Items ...................................................................... 6 3. General Conditions ................................................................................................... 6 4. Site Work ..................................................................................................................... 7 5. Concrete One (1) Equipment service pad for Renewable energy solution Main Service Board. ................................................................................................................................ 7 6. Raw Materials ...................................................................................................... 7 7. Electrical .............................................................................................................. 8 8. System Main Service Board ................................................................................ 8 9. Performance Testing ........................................................................................... 8 10. Close-out As Build Drawings ............................................................................... 8 11. Mobilization / Project Development / Engineering Fee……….…………………………….8 Assumptions and Clarifications ............................................................................................... 9 Exclusions ................................................................................................................................ 10 Attachment A ........................................................................................................................ 13 Attachment B ......................................................................................................................... 14 Introduction & Project Cost SES has prepared the following report to evaluate microgrid options for the proposed installation of a battery storage system at the Los Altos Hills Town Hall in Los Altos Hills, CA. This resilience project is intended to provide backup power to the facility in the event of grid outage as well as utility bill savings through Time-of-Use (TOU) shifting when the grid is live. The total project price and contract value is a Lump Sum of $817,580 as approved by the Los Altos Hills Town Council on October 21, 2021. CAL OES $250,000 Silicon Valley Clean Energy $ 50,580 The remaining $517,000 shall be provided by existing Town capital. Additionally, battery energy storage system incentive monies may be available through the California Public Utility Commission (CPUC) Self Generation Incentive Program (SGIP) of up to $250 / kWh which would be approximately $85,000 additional monies. Project Scope of Work 1.1Scope of Work and Services 1.2 Technical Details Customer Name Site Address Town of Los Altos Hills Town Hall 26379 Fremont Rd Los Altos Hills, CA 94022 Site County Santa Clara Site Specific Location Adjacent to the existing building and existing generator. BESS AC kW System Size Delta Power Systems ~ 125kW BESS Duration Samsung 340 kWh Voltage of Existing Utility Service 208Y/120 -3 phase-4 wire 600 AMP Utility Service Upgrade 1200 AMP Motorized 2500 AMP Bussing Interconnection Methodology New Service Main Switchgear Microgrid and DAS Controller Ageto Energy ARC Controller 1.3 Scope of Work Overview This Project will design, engineer, permit, construct, and commission the battery energy storage (BESS) resilience system utilizing the approved conceptual design from the October 21, 2021 Town Council meeting. This BESS project includes a Delta Power System 125kW power conditioning system, 310 kWh duration of Samsung CRD and UL9540 compliant batteries. The resilience BESS system will be controlled by the Ageto ARC controller. Project includes a utility service upgrade which will be located at the new equipment pad adjacent to the existing generator as shown in the presentation from October 21, 2021. The AC distribution cables for both the existing PV solar and generator will be routed to the new switchgear. The existing service will become an 800 AMP subpanel fed from the new switchgear. Existing utility conduits are assumed to become abandoned and are assumed to be utilized in feeding the existing switchgear from the new main switchgear. As a part of the new service upgrade, it is assumed all existing utility conduits (3) will be used to route utility distribution to the new switchgear. One (1) additional conduit is assumed to be required to power the new switchgear. It is assumed there is room on the same side of the underground vault to core through and add the additionally required conduit. The application for the service upgrade is assumed to be completed by the Town’s electrical engineer, Pieter. 1.3.1Design, engineer, furnish and install Generating Facility Furnish and install BESS materials • 10-year manufacturer’s warranty • UL 9540 • CRD Compliant • SEL 751 Protective Relay • Step-down Transformer 1.3.2 Furnish and install new switchgear • 1200 AMPs • 2500 AMP Bussing • Mechanical Main Breaker • Mechanical Isolation breaker for PV and BESS section • Include room for (4) breakers in same section as PV and BESS for future EV fleet 14kW, 80 AMP Level II bidirectional chargers. Chargers and infrastructure not included in this scope of work. Spare conduit capped underground outside the envelop of the new equipment pad is included. 1.3.3 Furnish and install Microgrid Controller • 5-year limited manufacturer’s warranty • Wall-mounted Control Cabinet – NEMA 3R • 15” Touchscreen • Industrial PC • Power supply and UPS • Ethernet Switch • Remote Communications • (1) utility grade production monitoring • (1) utility grade consumption meter monitoring • (1) BESS discharge meter monitoring 1.3.4 Design, engineer, and construct equipment pad suitable to support new utility switchgear and the BESS resilience system and microgrid controller. 1.3.5 Interconnection: includes all Work on Client side between the renewable energy solution Main Service Board (MSB) to the POI. The work may include, but is not limited to enclosures, conduit, cable, and all excavation, backfill and compaction/boring required for the final mean and method utilized by SES after Contract Effective Date. Assumes SES will administer the Inter-connection application with the Utility and obtain approval for interconnection. 2. Customer Furnished/Performed Items 2.1. Any and all as-built drawings or site-specific information necessary to effectively design, engineer and construct the BESS, including but not limited to past site plans, underground private utilities, permits for past work, etc. 2.2. Original and/or “As-built” plans indicating the location of all existing utilities, including irrigation infrastructure, provided to SES. 2.3. Utility lines located / line location prior to construction. 2.4. Water as needed to complete the work. Construction services and, if it is required by the authority having jurisdiction, to fill any fire safety water tanks. 2.5. Provide and maintain a suitable good-weather Site access road that will accommodate heavy vehicles, deliveries, and service vehicles. 2.6. Site preparation including but not limited to vegetation removal, adequate grading, and soil compaction to SES specifications. 2.7. Provide a mutually acceptable construction staging and storage area(s) adjacent to project Site throughout the construction phase. 2.8. Unrestricted access to the Site during construction Monday through Friday including hours (6:00 am – 6:00 pm). 2.9. Provide reasonable coordination for the completion of the Project. 2.10. Provide time to complete the cut-over work from the existing utility service to the new service. 3. General Conditions 3.1. Project Management 3.1.1. After Contract Effective Date, a SES program/ project manager will be assigned to Customer for the duration of the project through Final Completion. 3.1.2. Coordination meetings (via conference call) will be facilitated by the SES project/ project manager. 3.1.3. After Contract Effective Date, and during the Design, Engineering, and Interconnection Phase the assigned project manager will create project schedule with Customer representative utilizing project constraints and information revealed during due diligence activities within the Design and Engineering Phase. 3.1.3.1. Project Schedule will include the following phases sequentially: • Design, Engineering, Interconnection Application Phase • Permitting Phase • Procurement Phase • Construction Phase • Commissioning Phase • Close-out Phase 3.1.4. During Construction Phase SES will assign a Construction Manager to manage the day-to-day activities and to coordinate construction activities with Customer. 3.1.5. SES shall provide onsite training of customer personnel for safety. 3.1.6. Milestone Completions (defined in the terms and conditions of the agreement) 3.1.6.1. Substantial Completion 3.1.6.2. Final Completion 3.2. Design, Engineering and Permitting 3.2.1. SES will perform the required Due Diligence in order to produce a permit plan set for the BESS Design/Build design and engineering which is limited to the following: 3.2.1.1. Structural equipment pad design and engineering 3.2.1.2. Electrical design and engineering (EE PE) 3.2.1.2.1. AC (Alternating Current) distribution system 3.2.1.2.2. Point of Interconnection (POI)/ Point of Common Coupling (PCC) engineering and analysis to be provided by Utility. 3.2.1.3. DAS (Data Acquisition System) integration 3.3. Site Assumptions 3.3.1. SES shall furnish all required trash removal and dumpsters. 3.3.2. SES shall maintain all areas free of waste materials, debris, and rubbish and maintain Site in a clean and orderly manner. 3.3.3. SES shall furnish and maintain the required temporary restroom facilities as required by code. 3.3.4. Reasonably free and clear access to POI is assumed to be available to perform the Work. 3.3.5. Project to be completed within a single mobilization. 4. Site Work 4.1 Any spoils emanating from any portion of the Work are to remain on Site as mutually agreed upon by Customer and SES. 4.2 It is assumed that the in-situ soil will be acceptable for use in satisfying any fill requirements in its existing condition, and that soil encountered in the Utility cut sections will also be suitable for re-use as a controlled fill. 4.3 Contract does not include a perimeter fence. 5. Concrete One (1) Equipment service pad for Renewable energy solution Main Service Board. 5.1 One (1) Equipment service pad for Renewable Energy Solution only intended for Renewable project. 6. Raw Materials 6.1 Steel pricing is based on current steel index & exchange rate and may be subject to a change order depending upon the cost of commodities at the time of procurement and will be considered a reasonable modification to the contract and an Excusable Event(s). 6.2 Contract is based on the use of aluminum for AC distribution. Aluminum & Copper pricing is based on current Commodity Metals index & exchange rate and may be subject to a change order depending upon the cost of commodities at the time of procurement and will be considered a reasonable modification to the contract and an Excusable Event(s). 7. Electrical 7.1 BESS major electrical components include: 7.1.1 Switchgear 7.1.2 AC and DC Disconnects 7.1.3 AC Panelboards (if required) 7.1.4 Fuses (if required) 7.1.5 Meter Boxes 7.1.6 Transformers 7.1.7 Battery Energy System Solution 7.1.8 Client-side electrical equipment and materials required at POI to achieve interconnection. 7.1.9 Conduit and Raceways, Wire and Conductors, Junction Boxes, Underground Boxes/Vaults, Cable, Wire & Supports at the Renewable energy solution (to system Main Service Board). 8. System Main Service Board 8.1 Standard Manufacturer’s equipment warranties. 8.2 Contract contemplates inverter locations for roof arrays to be in electrical rooms on the floor below the roof. Inverter locations for canopy arrays are located on the columns out of normal reach. 8.3 Electrical equipment at POI can support the proposed Generating Facility which is anticipate being new and a part of the service upgrade. 8.4 POI is assumed to be at the Customer’s main switchboard; included is a maximum distance of 25 feet between BESS and PCC. 9. Performance Testing. 9.1 Post Utility PTO: SES monitoring of ten (10) consecutive days of electrical performance reviewed against expected performance values. 9.2 Start-up and commissioning procedure shall include but is limited to the following: 9.2.1 Visual inspection of all components, including but not limited to, cabling, BESS PCS, and switches. 9.2.2 Continuity and Megger testing. 10. Close-out As Build Drawings 10.1 SES will provide a single digital jump drive and physical binder of Operations and Safety Manuals, including “As-built” schematics (1 hard copies, 1 digital copy). 11. Mobilization / Project Development / Engineering Fee Invoice will be presented upon mutual execution of the Contract and will be in the amount of 30% of the Project’s total value. Assumptions and Clarifications 1. Assumes SES will install a fully operational and interconnected electrical BESS in accordance with all applicable and known building codes per Attachment B, Conceptual Design. 2. Equipment pad is assumed to be a monolithic pour with an industrial grade broom finish. Placement is assumed to be adjacent to the existing generator. 3. BESS design, including system size, production, and other parameters, are based on information supplied by Customer and regarding the Customer’s current electricity usage. SES shall not be liable for any changes in Customer’s future electricity usage or usage patterns, required modifications to the work due to inaccurate or incomplete information supplied by Customer or the Customer’s Utility (“Utility”), or changes required by the Utility. 4. SES will prepare and submit an Interconnection Application to the Utility after Contract Effective Date on behalf of the Customer. The Interconnection Application process includes a Utility application review phase. The utility engineering review phase can result in additional costs not included or reasonably anticipated upon execution of this Contract. Customer will notify SES in writing or SES will provide Customer notice within five (5) business days of receiving the Utility’s review results. 5. Assumed Customer shall provide SES with the right to access the site for SES, its subcontractors, and its vendors and suppliers to perform the Work during regular business hours, or other such reasonable hours as may be requested by SES and acceptable to Customer. For the avoidance of doubt, work hours are considered to be between the hours of 7:30am and 5pm Monday through Friday. 6. This proposal assumes preliminary design and engineering due diligence has been completed prior to contract execution and is based upon educated assumptions. After contract execution, due diligence will be completed. Therefore, the scope, means and methods of the Work and subsequent price of this agreement may or may not be changed due to the impact of the design and engineering due diligence. 7. Assumes any and all electrical outages required to perform the work will be coordinated with the Customer prior to work being completed and will be performed during normal working hours. 8. Assumes existing electrical equipment at POI is capable of supporting the proposed Generating Facility. 9. Solution is based on conceptual design determined during early-stage development. Engineering to be completed after contract execution. 10. Engineering included: Geotechnical, Structural, Electrical, and Architectural. Survey is limited to site location and assumes the use of past as built site plans. 11. No ADA upgrades are assumed. No ADA due diligence has been performed prior to contract execution. 12. Site is assumed to be adjacent to yet does not encroach into the path of travel of the assumed location for the fire access. 13. Includes the integration of the existing design and engineering of the existing PV system 14. Includes all the materials mentioned in the Technical Scope of work to construct the system. 15. Assumes POI to be within the existing main switchboard. 16. Assumes new electrical equipment will be mounted outside of existing switchgear area unless otherwise stated. 17. Assumes Aluminum AC conductors between Inverters and AC disconnect. 18. Assumes Copper AC conductors between AC disconnect and Point of Interconnection. 19. SES shall seek to avoid injury, loss or damage to persons or property by adhering to all applicable safety requirements for the construction of BESS. 20. Customer acknowledges that the anticipated operation of the equipment and materials purchased per for this solution are dependent upon Customer’s existing electrical equipment, and SES will have no liability for equipment not purchased under this Contract. 21. While SES will exercise all due care, SES will not be responsible for pre-existing conditions at the Site, or for damage or problems arising from such pre-existing conditions which may be aggravated by normal traffic and material handling procedures associated with installing the BESS. SES will not be responsible for existing conditions that may be aggravated by operations of the BESS or and or aggravate the BESS. 22. All work assumes normal subsurface and digging conditions. Customer acknowledges SES has not yet performed subsurface due diligence and, or a Geotechnical Engineering Analysis and therefore makes no representation of knowing the impact of the results of such due diligence upon the scope or cost or schedule of the proposed project. 23. SES may substitute equivalent equipment or materials for those specified in this Contract. 24. SES may, at its discretion, engage licensed subcontractors to perform work associated with the renewable energy solution. SES will pay such subcontractors and, in all instances, remain responsible for the completion of subcontractor’s work. All subcontractors shall be required to be insured and shall provide a Certificate of Insurance prior to commencement of work to SES additionally naming Customer. 25. SES makes no representation, under any circumstances, as to the availability, amount, and Customer qualifications for third party financing or incentives. 26. Customer shall provide all Site information available which includes but is not limited to all information pertaining to the electrical usage, meter information, existing electrical infrastructure, land surveys, subsurface reports, private easements and utilities, and title reports. Customer will conduct a site walk-through with SES and identify to the best of their knowledge all known easements, rights-of-way, private utilities, and other rights that run with the land to perpetuity. 27. SES shall be excused for any failure or delay in the performance of its obligations hereunder due to Force Majeure, Permit and delays beyond the control of SES, and Utility delays as follows: 27.1. “Force Majeure” is defined in the Contract. 27.2. “Permit and/or Extraordinary Permit Delays” are defined as the impossibility for the affected Party, despite its reasonable efforts, to obtain, in a timely manner, any Permit or Extraordinary Permit or other approval necessary to enable the affected Party to fulfill its obligations in accordance with this Contract, provided that the delay or non-obtaining of such approval is not attributable to the Party in question and that such Party has exercised its reasonable efforts to obtain such Permit, Extraordinary Permit, or approval. 27.3. “Utility Delays” are defined as requirements imposed by the Utility for the renewable energy solution that result in delays to the work and/or receiving permission to operate by the utility. Exclusions 1. Site plan surveying (Civil Surveyor) 2. PV Solar production analysis beyond what’s already been completed 3. Geotechnical analysis (GEO) 4. Accessibility analysis (AOR) 5. Fire, life, and safety analysis (AOR) 6. All ADA upgrades are excluded 7. Any upgrades determined after due diligence after Contract Effective Date by the AOR will be managed through a contract change order. 8. Excluded is engineering, installation, and maintenance of temporary (for construction) or permanent storm water facilities and features if required by the AHJ, which includes but is not limited to best management practice mitigations including but not limited to riprap, basins, inlet structures down inlet protections. 9. This proposal does not include international trade commission duties, defined as: fees, costs, duties, tariffs, taxes or other related charges imposed on the importation or other sale of imported materials associated with the construction and, or installation of BESS which include but are not limited to, battery cells, PV solar wafers, PV solar cells, modules, inverters, cable, transformers, and, or steel, by any governmental authority or domestic and, or international agency as are publicly disclosed on the date of Proposal. 10. Multiple Mobilizations 11. Environmental Engineering and/or any Environmental/Biological Remediation 12. Floodplain Engineering and/or any alterations to Site and materials to accommodate floodplains. 13. Tree Removal/Relocation/Landscaping/Irrigation 14. Site/Development Bonds 15. Payment and Performance Bonds 16. Easements/Rights of ways/Conservation easements 17. Environmental Assessment, Environmental Impact Report, Testing, and other Reports as needed. 18. Any design or engineering related to flood plans and, or FEMA high-hazard floodplains. 19. All work associated with SWPPPs and Site stabilization. 20. Engineering, installation and maintenance of permanent storm water facilities and features, including (but not limited to) riprap, basins, inlet structures alterations and installation, and swales required by the AHJ. 21. Specialized Environmental Insurance. 22. Relocation and/or removal of any existing utilities (active or abandoned), inclusive of but not limited to water, electric, communication, data, cable TV, security systems, irrigation, etc. 23. Hazardous material survey, testing, and/or monitoring. 24. Removal and/or disposal of any hazardous or contaminated materials. 25. Excavation, removal and/or disposal of unsuitable materials. 26. Rock excavation and drilling. 27. Soft soil stabilization. 28. Dewatering foundations. 29. Removal/disposal of existing onsite trash and/or debris (inclusive of encountered underground trash or debris.) 30. Demolition, removal, or disposal of existing structures. 31. Corrosion resistant materials (beyond standard galvanization, G90.) 32. Visual screening, including privacy slat fencing. 33. ARRA procurement compliance: Buy American Provisions, State Historic Preservation Officer compliance, etc. 34. Environmental Assessment, Environmental Impact Report, Testing, and other Reports. 35. Electrical coordination studies. 36. Arc Fault Hazard Assessment. Attachment A Attachment B Town Hall of Los Altos Hills, Ca. Microgrid Analysis Report Syserco Energy Solutions, Inc Page | 1 Table of Contents Introduction 2 System Load Analysis 2 Microgrid Systems Analysis 4 Utility Tariff 5 System Analysis 6 Microgrid Design 12 Generator Considerations 14 Solar Considerations 15 Ageto Renewable Controller 17 Results Summary 18 Final Thoughts 19 Page | 2 Introduction SES has prepared the following report to evaluate microgrid options for the proposed installation of a battery storage system at the Los Altos Hills Town Hall in Los Altos Hills, CA. This resilience project is intended to provide backup power to the facility in the event of grid outage as well as utility bill savings through Time-of-Use (TOU) shifting when the grid is live. The below analysis used assumptive inputs for the evaluation and makes assumptions and estimates from the actual but limited site information. Actual outcomes may vary. System Load Analysis When the utility meter is the only device measuring the total facility power load and the corresponding interval PV production data is not available, it is impossible to calculate the exact load. This was the challenge at the town hall and one that often arises with determining a proper power consumption profile for facilities with existing PV when the PV is tied into the utility meter. The original PV Data Acquisition System from the 2007 solar installation used password protected hardware, proprietary software, and a remote database which has been abandoned for a number of years. The actual historical interval PV production data was inaccessible. However, the town’s third-party IT company captured screenshots of the annual production summaries from a local kiosk for nearly a decade. This annual production summary was used in our analysis. Due to this challenge, multiple methods of creating an accurate profile were considered and attempted. A synthetic PV profile was used based on the size, design and location of the existing PV arrays, annual production and annual production summaries and adding that back to the PG&E utility meter data. Because it is difficult to perfectly align 15-minute PV production data with the actual production close enough to consistently arrive at the actual total facility, there were enough obvious inaccuracies to make this method inviable. Instead, a generic load profile was generated for a similar in small office building located 8 miles from the town hall. This was scaled to meet the estimated daily consumption of 345 kWh/day. The average daily energy consumption was calculated with confidence by adding the known total yearly PV production and total yearly energy consumption for 2019, then calculating the daily average. This generic profile scaled to meet the true daily consumption is the load profile used for the modeling for this report. The following load profiles are DMaps (DataMaps) from our microgrid analysis tool Page | 3 representing a year of power consumption. Time of day is located on the y-axis from 0 to 24, with noon in the center at 12. The x-axis shows the day of the year from 1 to 365, starting with January on the left. Each 15-minute interval out of the year is represented by a rectangle which is colored according to the data value for that hour. The power scale in kW is located on the right. The DMap format often allows one to see daily and seasonal patterns more easily than with a simple time series plot. The below profile was generated using a combination of 15-minute 2019 utility data pulled from the town hall’s PG&E utility meter #1009484321 (to which solar is tied in) and a synthetic solar production profile from NREL (National Renewable Energy Laboratory) added back in. This method likely provides a reasonable estimate of the facility load, but contains some unavoidable inaccuracies, such as zero load in the middle of the day (shown in black). Due to this, this profile was not used for modeling, but to get insights into what it may have looked like. Figure 1: Yearly Electrical Load from 2019 In the graph above there are instances when the load plus the solar are negative are inaccurate (total facility consumption cannot be negative) and were given a value of zero which are colored black. This graph is a result of not having actual PV data and attempting to fold a PV model. It is an unreasonable assumption that the total load of the facility was zero at any point, especially in the middle of the day. This model cannot be used as days with “zero load” would have an effect on the battery sizing and economic calculations. This load profile has an average energy usage of 304.5 kWh/day, an average power consumption of 12.69 kW, and a peak power load of 55.79 kW. Page | 4 Figure 2: Scaled Generic Load Profile for a Small Office Instead, a generic load profile for a small office building, pictured above, was used to complete the analysis in this report. This load has an average energy usage of 350 kWh/day, an average power consumption of 14.58 kW, and a peak power load of 41.39 kW. 350 kWh was chosen based on the known total yearly consumption for 2019, plus a cushion to be generally conservative. This profile provides a reasonable estimate for the facilities consumption and aligns well with what can be interpolated from the actual consumption data if the 15-minute PV data was available. The daily and yearly energy consumption averages fall slightly higher for the scaled generic to compensate for the “zero load” intervals in the production data profile. The scaled generic load profile was used for the following analysis. Microgrid Systems Analysis The facility has existing solar arrays both on the roof and on the ground totaling 39 kWAC in capacity as well as a 65-kW emergency backup generator from 1993. The generator is a dual fired generator with a natural gas line and propane tank. The propane tank holds 500 gallons of stored fuel and if natural gas supply is not available it will support the peak load for approximately 40 hours. In the current configuration when an outage occurs the generator must work alone while the PV sits idle until the utility power returns. Page | 5 The scope of analysis includes the integration of battery energy storage solution and microgrid control capabilities. The addition of storage will be utilized for power resilience in the event of a grid outage and for electrical savings through TOU shifting when the grid is live. The goal of this analysis is to demonstrate the ability of the microgrid to sustain through a 72 hr., three-day Public Safety Power Shut-off (PSPS) event running off renewables only, and energy bill savings when not in PSPS event. In an emergency situation or prolonged outage, the solar and storage could operate in tandem with the generator, if upgraded to allow for more advanced control capabilities. The generator could operate indefinitely with an uninterrupted supply of natural gas. If the gas line were severed in an emergency situation the facility could run off of the generator's 500-gallon propane supply as long as it lasted. In the event the gas line is cut, the generator alone could likely supply the facility with power for over a month running off the stored propane. With aggressive energy conservation or load shedding, the facility could sustain even longer. In microgrids where grid services are performed, while resilience is still a priority, it is advantageous to reserve a portion of the battery for unforeseen outages. This analysis assumes that half of the available battery capacity will be reserved for outages. This reserved portion can be easily adjusted at any time in the built system through the microgrid controller. The portion reserved can be increased by the system operator within the control user interface to be more conservative in case of an outage or decreased to be more aggressive on grid services and utility bill savings. A “resilience mode” can also be activated within the microgrid controller by the system operator at any time to ignore grid services in order to prioritize charging the batteries with any forewarning of an outage. Energy storage can be utilized to store excess energy during the peak PV production hours which can then be discharged to offset peak hours effectively meeting the goal of reduced cost of energy during the TOU periods. Several different microgrid system configurations were modeled considering the current use case of utility, solar and generator as well as the addition of two to four Samsung/BYD battery racks at 170 kWh each and the addition of solar. The base case to which the economics of other configurations were compared to is the current use case of utility and solar. Utility Tariff The facility is on the PG&E’s B-6 Net Meter rate. The tariff does not include a base line customer charge or demand charges. The rate does include TOU charges including a summer peak, winter peak, off-peaks and a super off peak in the spring. Page | 6 Below is a graphic visually displaying the energy consumption charges varying throughout the year. The most expensive energy period is in the summer from 4 to 9 pm when energy is $0.269/kWh. Figure 3: Time-of-Use Energy Charges Incentives/ Grants No major tax incentives were modeled in this analysis under the assumption this project will not be viable as this facility is a public (Town) building. The below table represents grants and incentives the town currently and will possess in addition to the capital match the two has made. CAL OES Grant $250,000 Silicon Valley Clean Energy Grant $50,580 Town Capital Match $517,000 Total $817,580 Potential SGIP (Self Generation Incentive Program) ~ $250/ kWh ~ $85,000 (340kWh) System Analysis The analysis goal was to deliver resilience to the town hall within budget for a duration of 72 hours by integrating multiple configurations of varying battery sizes with the existing solar and generator. Two to four Delta Power Systems battery racks at 170 kWh each paired with a 125 kW inverter were initially modeled. We then added an additional 20 Page | 7 or 40 kWAC of solar to the equation for consideration. The below table demonstrates a few different options analyzed, each in conjunction with the utility. The levelized cost of energy (LCOE) is a measure of the average net present cost of electricity generation for a generating plant over its lifetime) was considered which was found by dividing the total annualized cost of the system by the total electric load served per year. Note, operating costs include the yearly amount paid to the utility. A negative operating cost demonstrates more energy was sold to the utility than consumed. These calculations are based on a 20-year life of the system. The calculations are intended to represent the entire costs of design, engineering, procurement, and construction of the system. It is assumed during normal daily usage 50% of the battery capacity will be reserved for outages. Table 1: Microgrid Configurations Existing Solar 350kWh/day As Is: Config 1: Config 2: Config 3: PV Solar (kW) 39 39 39 39 Genset (kW) 65 65 65 60 ESS Inverter (kW) 125 125 125 Li-ion (kWh) 340 510 680 LCOE ($/kWh) 0.068 0.223 0.222 0.248 LCOE % Savings 0.00% -227.94% -226.47% -264.71% Renewable Fraction 48.5 42.2 36.7 32.2 Initial Capital $0 $287,540 $326,000 $419,100 Amount paid to Utility per year $9,826 $8,231 $7,776 $7,267 The primary value of this solar plus energy storage renewable energy microgrid will be derived from the power resilience it provides the Town. Additional value will be provided through small savings on the monthly electric bill through Time-of-Use energy shifting. There are no demand charges on this rate tariff, utility bill meaning all savings will be derived from Time-of-Use shifting only. The largest swing of consumption charge is during the summer peak which varies by only $0.10. Page | 8 Table 2: Microgrid Configurations with 20-kW or 40-kW Additional Solar The below table illustrates modeled outcomes if additional PV Solar, Upgrade Generator and additional BESS was added to the configuration. 350 kWh/day Config 1: Config 3: Config 3: Config 4: Config 4: Config 5: PV Solar kW 59 59 79 59 79 59 Genset kW 70 70 70 70 70 70 ESS Inverter 125 125 125 125 125 Li-ion 340 340 510 510 680 LCOE ($/kWh) 0.058 0.208 0.181 0.210 0.192 0.241 LCOE % Savings 0.00% -258.62% -212.07% -262.07% -231.03% -315.52% Renewable Fraction 60.1 58.5 69.4 52.4 65.7 47.9 Initial Capital $51,212 $338,752 $381,176 $377,212 $419,636 $470,312 Operating Cost / yr. (NEM1.0) $5,200 $3,602 -$1,153 $3,171 -$1,495 $2,809 In a resilience configuration utilizing battery energy storage systems the financial payback is realized over an extended period. The electric bill saving is due to the specific rate structure of the utility tariff. The capital cost associated with the additional battery capacity needed for resilience events is realized over the assumed extended life of the battery serving demand reduction and TOU shifting. The value is in the reserve capacity the battery storage possesses to support utility outages thereby allowing the facility to continue to operate as if the utility had not dropped out. Serving the public, its constituents as a COVID testing center, cooling center, and charging center during these events is priceless. Therefore, there is an avoided cost of operational down time as well as now being able to utilize the PV as an asset that would not otherwise be able to be used with a generator. Additional solar would improves the overall payback of the system providing more support to the charging of the stationery or future mobile batteries during resilience events and for Net Energy Meter benefits. The true value for batteries will be in power resilience. In the event of a grid outage such as a Public Safety Power Shutoff (PSPS) event, the system will disconnect from the utility and operate in islanded mode running off of solar and storage as conditions allow. Solar inverters require a signal to grid follow. When the utility has an outage the utility grid forming falls out. When in an islanded mode during an outage or a PSPS event the ARC (Ageto) Microgrid Controller will command the battery energy storage to form the grid allowing the PV solar to function as if the utility was forming the electrical grid. Solar will both satisfy the building load and charge the batteries depending upon the time of Page | 9 year, and daily weather. The battery will discharge to support the load as the sun goes down and the solar production is reduced. When the battery storage charge is reduced to a configured state of charge, the ARC (Ageto) Microgrid Controller will open a contactor or mechanical breaker after calling for the generator to start which will run until the system is able to operate on renewables again the following day. The below tables show how long each configuration will be able to power the facility on solar and storage alone, without the aid of the generator. The following was calculated by simulating three outages of the specified length occurring randomly throughout the year. The X represents the configuration’s ability to back up the entirety of the building's loads for the duration specified on the left with a prior warning of the outage such as a PSPS event. This is the estimated minimum duration. It is likely each system could last longer in optimal conditions, such as multiple sunny days in a row in the summer or with aggressive energy conservation. Table 3: Configuration Sustained Outage Comparison 350 kWh/day Current: Config 2: Config 3: Config 4: Existing PV Solar kW 39 39 39 39 Existing Genset kW 65 65 65 65 ESS Inverter 125 125 125 Li-ion 340 510 680 Outage Length (days) 1 X X X 2 X X X 3 X X 4 X Page | 10 Table 4: Additional Solar Configuration Sustained Outage Comparison 350kWh/day Config 5: Config 6: Config 7: Config 8: Config 9: Config 10: PV Solar kW 59 59 79 59 79 59 Genset kW 65 65 65 65 65 65 ESS Inverter kW 125 125 125 125 125 Li-ion kWh 340 340 510 510 680 Outage Length (days) 1 X X X X X 2 X X X X X 3 X X X X X 4 X X X X X 5 X X X X 6 X X X 7 X If half of the battery is reserved for outages, configurations 3 and 4 will be able to last for three days on renewables only if resiliency mode is enabled to proactively charge the battery prior to the PSPS event. With additional solar, each configuration can last for at least 4 days. Longer renewable only outage durations could be sustained by load shedding non-critical loads. The ARC microgrid controller can automatically detect a grid failure and open load-drop contactors as needed, either at the start of an outage or when the battery reaches a predetermined low SOC. The above analysis is intended to provide insight into the renewable only (solar+storage) operation of the system. This site also has a generator which will allow the site to sustain the full load potentially indefinitely. The following images show the performance of the system during an outage in late September. Page | 11 Legend Figure 4: Typical - 340 kWh Battery With No Additional Solar for a 3-day Outage Page | 12 Figure 5: 510 kWh Battery With 20 kW Additional Solar for a 3-day Outage The above comparison demonstrates the benefit of additional solar in lasting through an outage. Additional solar means the batteries are more likely to be able to research a high state of charge during an outage while supporting the loads. The above represents sustaining the entire load though an outage through solar and storage alone. Microgrid Design Syserco Energy Solutions, Inc. is proposing an AC-coupled microgrid design that would maximize flexibility in the system. Delta Power Systems batteries and Delta PCS 125 inverter will be added to the existing solar and dual fired generator. An upgrade of the PV inverters will be considered. Under normal grid operations, the solar and storage will offset the load of the building, providing TOU shifting as needed. Once they have reached the maximum state of charge (SOC), excess solar will be exported back to the grid. A portion of the batteries will be reserved at all times for outage events. To island the system in the event of a grid outage, the SEL-751, a utility grade protective relay, is being suggested. When an outage occurs, the SEL-75 will detect the grid failure and open the contactor isolating the facility within less than a second. The Page | 13 Ageto ARC controller will command the Delta PCS 125 to switch to grid-forming and blackstart the microgrid. The solar inverters will then reconnect to the microgrid after a specified timed delay. The integration of the generator can then operate one of two ways depending on the upgrade of the generator controls. The first scenario is if the genset controls are not upgraded, the generator will sit behind an Automatic Transfer Switch (ATS). Once ARC determines the batteries to be at a low SOC and the solar production too low to meet the needs of the facility, ARC will open up a load-drop contractor essentially blacking out the Renewable side of the ATS. The ATS logic will then take over and call for the generator to start. ARC will try to charge the batteries from solar until the SOC is sufficiently high and once achieved, will close the load contactor, and return the load to the renewable side of the ATS. Cycle charging of the batteries by the generator will not be possible in this microgrid design as the generator and renewables will operate on different sides of an ATS, and not be able to operate in parallel. The second scenario is if the generator is upgraded to allow for more advanced control. The generator will then be able to run in parallel with the energy storage allowing for cycle charging of the batteries and less generator run time. Once grid health returns, the SEL-751 will automatically reconnect to the grid after matching frequency and voltage. In all scenarios ARC will monitor and protect the health of the assets including battery SOC limits, generator minimum loading and runtime, etc. Below is a one-line example of the system without the generator upgrade. Page | 14 Figure 6: Microgrid Design w/ 1200AMP Service Upgrade - No Generator Upgrade Generator Considerations The upgrade of a generator would allow for the solar and storage to operate in tandem with the generator during outages. Typically, a generator is installed to be at minimum twice the peak load. Utilizing the power capacity of the energy storage system can reduce the need to oversize the generator. Replacing a generator would bring the advances in generators that have been seen in the past 20 years including slight increases in efficiency and decrease in emissions. The addition of a new generator would also bring the ability to function in conjunction with the rest of the microgrid. Below is a one-line example for a system installing a new paralleling and synchronizing generator. The below design with the anticipated service upgrade would also work with adding more stationary or mobile storage. Page | 15 Figure 7: Microgrid Design with Generator Upgrade Solar Considerations While the existing solar is 15 years old, the lifetime of most panels is between 20 and 30 years. The panels themselves likely do not need to be replaced, however additional upgrades to the PV system may increase the efficiency and production of the system while further reducing the annual cost of electricity. Adding power optimizers and a new solar inverter could increase the power output of the existing system, especially if some panels are shaded, which appear to be via google. This would also bring the system to NEC 2020 code compliance and allow for panel level rapid shutdown increasing the overall safety of the PV system required today for a roof mounted PV Systems. Both power the optimizers and inverter can be sourced as needed. Strong consideration should be made to choosing an Inverter that will work with the ARC microgrid controller. Additional solar panels can also be added to increase the total production capacity of the array on several of the roofs including repowering the existing solar trees. We have contacted the original manufacturer who has indicated newer and larger modules could in fact be placed on the existing racking. The system would be constructed with newer more efficient modules and inverters increasing the system with a similar footprint. Page 16 Town of Los Altos Hills Resilience Project November 1, 2021 Figure 8: Potential Locations for Solar Addition Page 17 Town of Los Altos Hills Resilience Project November 1, 2021 Ageto Renewable Controller A key component to the overall system functionality for solar+storage is the technology choice we made to use the Ageto Renewable Controller (ARC), which provides real-time optimization and control of the power system and is the primary User Interface. ARC is currently the most flexible and most advanced behind the meter controller for integrating into hybrid systems possessing the ability to monitor energy usage and dispatch the energy resources to provide reliable power at the lowest cost of energy in a connected or islanded event. ARC will provide a web-hosted dashboard, so the power system is able to be remotely monitored or displayed in the front office to engage with customers and employees. Figure 9: Ageto’s Web-Hosted Dashboard The ARC microgrid controller will automatically monitor and control the energy resources in the system to meet the desired goals and operations of the system. It will operate locally for the lifetime of the system to bring additional value and savings out of the assets. In preparation of the recent New Orleans, LA. hurricane a preparatory resilience mode was integrated into the ARC. This feature, when enabled, will inform the controller an island event is coming. It stops the discharge of the battery for demand and TOU shifting maximizing the amount of time the system has to fully charge the battery energy system thus providing the longest Page 18 Town of Los Altos Hills Resilience Project November 1, 2021 possible renewable power source during the island event. This is a perfect solution to California Utility PSPS notifications of upcoming events. Results Summary The addition of battery storage will meet the goal of the project adding an additional layer of power resilience to the Los Altos Hills Town Hall and allow the facility to operate on renewables only during outages for a period of time. The major drivers for choosing the battery sizing for this system is the available budget and the desired length of renewable only operation in the event of a grid outage, 72 hours. The upgrade of other aspects of the existing system may be desired to improve the overall performance of the system including the duration of renewable resilience and ability of the entire solution to work in harmony. With the proposed solution, the project will be able to operate in island mode regardless of the upgrade of the generator or PV inverters. However, the upgrade would allow for cycle charging, the low power generation from the generator to strategically charge batteries at certain times and or states of battery charge or both. Additionally, upgrades to the PV system could increase the overall power output. Additional solar could be added to increase the production and charge a larger energy storage system faster in a grid outage. Page 19 Town of Los Altos Hills Resilience Project November 1, 2021 Final Thoughts We believe the proposed resilience project that includes 125kW / 340 kWh of BESS utilizing the Ageto Energy ARC microgrid controller meets the Town’s original project goals and budget. This project coupled with the service upgrade of 1200AMPs provides the Town the necessary infrastructure for today and future electrification, integration of additional energy storage and additional PV Solar.