City Council Meeting - FINAL

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Meeting Date: 09/05/2023  
Co-Submitter: Sam Beckett From: Jarrett Nelson, Public Works Project Manager

Consideration and Approval of Contract:  A Cooperative Purchase Contract with Pueblo Mechanical and Controls, LLC to remove and replace the boilers at the Flagstaff City Hall Building in the amount of $305,745.58 utilizing the Mohave Educational Services Cooperative Contract #19F-PMAC2-0904. 
  1. Approve the Cooperative Purchase Contract with Pueblo Mechanical and Controls, LLC to remove and replace the boilers at the Flagstaff City Hall Building in the amount of $305,745.58 utilizing the
    Mohave Educational Services Cooperative Contract #19F-PMAC2-0904; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
The City Hall building houses numerous city offices, provides service counters to the public and houses the City Council Chambers. This entire building is currently heated by two, nearly 40-year-old boilers, that are well beyond their serviceable lifespan. The company who manufactured the equipment has been out of business for over 20 years and replacement parts are no longer readily available. If the units fail during the winter the building does not have any other heat source to provide back up and would eventually freeze, which would cause significant damage to the building and disrupt the ability to provide essential services to the community. This Council action, if approved, will allow the facilities team to deliver the replacement project with Pueblo Mechanical and Controls, LLC (Pueblo Mechanical) to ensure the City Hall heat continues functioning thus allowing the building to continue serving the community as it was intended to.
Financial Impact:
The cost of this project is $305,745.58 and will be funded from account number 001-06-152-0512-3-4224. The new high efficiency boilers will reduce energy consumption by 15% which will reduce energy usage costs and greatly reduce the risk of losing heat to the entire building during the winter, causing expensive damage to the building.
Policy Impact:
The award of this Cooperative Purchase Contract will renew existing City infrastructure and allow it to continue serving the community as it was intended to do.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
High Preforming Governance:
  1. Deliver quality community assets – This project will invest in the maintenance and renewal of a community asset to keep it functioning as intended and provide a quality experience to users of the facility.
  2. Enhance the organizations fiscal stability & increase efficiency & effectiveness - This project will increase the efficiency and reduce operating costs of the building.

Carbon Neutrality Plan
Carbon Neutrality Strategies List: FS-1 Reduce or remove natural gas usage in municipal buildings - The new high efficiency boilers are over 95% efficient and will significantly reduce the natural gas consumption of the building. Electrification was explored as an option for replacement however it was determined that expensive electrical upgrades to the building were required, a comparable electric boiler was significantly more expensive than gas, the solar panels at the facility are not enough to offset the buildings existing electrical usage before increasing the load with an electric boiler and the grid power required to run the comparable electric boilers would cost the city approximately 3 times as much as natural gas.

Regional Plan
Chapter VII Energy:
Goal E.I. Increase Energy Efficiency - The high efficiency boilers installed in this project will increase the energy efficiency of the building.
Has There Been Previous Council Decision on This:
The Cooperative Purchase Contract through Contract #19F-PMAC2-0904, Mohave Educational Services Cooperative was vetted by the Purchasing Section to insure the best pricing for this product. Purchasing confirmed that Mohave has performed a proper and competitive formal solicitation with a Request for Qualifications that meets public procurement requirements. Purchasing staff reviewed the agency contract and has determine it relevant to the City's needs for this procurement and that it is currently active.

Due to the large size, Contract #19-PMAC2-0904 has been attached to the staff summary in two parts. You can also access the agency document and award information online through
COF Cooperative contract 2024-29
Exhibit A.1 Quote
Exhibit A.2 - Mech Spec
Exhibit B - Contract Amendment
Part 1 - Agency Contract Package
Part 2 - Agency Contract Package


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