Consideration and Approval of Contract: Cooperative Purchase Contract with Pueblo Mechanical and Controls, LLC in the amount of $599,833.26 for chiller replacement in City Hall.
 

1. Approve the Cooperative Purchase Contract with Pueblo Mechanical and Controls, LLC ("Pueblo") in the amount of $599,833.26 for chiller replacement in City Hall; and
2. Authorize the City Manager to execute the necessary documents.

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 cooled by one (1), nearly 20-year-old, 140 Ton Chiller, that is beyond its service lifespan. The unit utilizes outdated R-22 refrigerant and has numerous issues which make it ineffective in cooling the building. If the old unit fails during the summer heat, the City Hall building does not have any other cooling source to provide back up and would get warm during the day. This would disrupt staff's ability to provide essential services to the community. This City Council action, if approved, will allow the facilities team to deliver the replacement project with Pueblo to remove and replace the existing failing chiller with two (2)-71 ton chillers, condensers and related plumbing/mechanical work.

This project was not budgeted as part of the FY2024-25 budget. However, a request was submitted to Budget Team for consideration and Budget Team supported this request and the use of the General Fund Infrastructure Reserve Fund to fund this project.

Project Name: City Hall Chiller Replacement
Cost: $599,833.26
Account Number Budgeted: 001-09-402-1310-1-4405
FY Budgeted Amount: $2,113,260
Grant Funded: No
Funding Source: General Fund Infrastructure Reserve 

No.

1. Approve the Cooperative Purchase Contract with Pueblo for $599,833.26, as proposed using the Mohave Educational Services Cooperative Purchase Contract 19F-PMAC2-0904; or
2. Reject the Cooperative Purchase Contract and request that City staff conduct a solicitation for the essential chiller replacement. This option is not recommended by City staff as it would delay replacing failing equipment.

The existing chiller was installed new in 2005 and had an approximate service life of 15 Years. It has become problematic over the last 12 months and is being repaired frequently to keep it running.  This unit is one the of many, citywide, that continues to use R-22 refrigerant.

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 https://mesc.org/about-vendor%e2%80%8b/?contract_id=19F-PMAC2-0904.

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 organization’s fiscal stability & increase efficiency & effectiveness-This project will increase the efficiency and reduce operating costs.

Chapter VII Energy:
Goal E.I. Increase Energy Efficiency-The new chillers installed in this project will increase the energy efficiency of the building.

1. In January 2020, the Environmental Protection Agency banned the production and import of the coolant R-22 due to its particularly harmful impact to the ozone layer when released into the air. Approving the Cooperative Purchase Contract would upgrade the chemicals used in the chiller.
2. Priority 3-BE 3-Reducing building energy usage including electricity.

No.