Consideration and Adoption of Resolution No. 2025-49:  A resolution of the Flagstaff City Council, approving an Intergovernmental Agreement for a Cooperative Purchasing Agreement between the Arizona Board of Regents for and on behalf of Northern Arizona University to pursue a range of clean energy projects to meet carbon neutrality goals.
 

1. Read Resolution No. 2025-49 by title only
2. City Clerk reads Resolution No. 2025-49 by title only (if approved above)
3. Adopt Resolution No. 2025-49

This Agreement is intended to support an Arizona-based consortium of government agencies and educational institutions (“the Collaborators”) in achieving their carbon neutrality goals by procuring clean electricity. By leveraging economies of scale, the Collaborators will explore cost-effective clean energy procurement strategies, including:

1. A future Virtual Power Purchase Agreement (“VPPA”), and/or
2. Clean energy opportunities available through Arizona’s regulated utilities.

This Agreement authorizes NAU to issue a non-binding solicitation on behalf of the Collaborators. Responses to the solicitation will be evaluated by representatives of the Collaborators using the following criteria: cost-effectiveness, regional impact, ability to deliver before 2030, and support for the development of new clean electricity resources.

Upon selection of a preferred project, the parties will enter into non-binding negotiations to determine pricing and delivery terms. If the negotiated outcomes align with the City's needs, staff will provide an informational update to the Council and request authorization to proceed.

If approved, this Agreement will remain in effect for a period of one year.

Project Name: Intergovernmental Cooperative Purchasing Agreement — Virtual Power Purchase Agreement
Cost: Shared legal fees $10,000
Account Number Budgeted: 214-12-170-0671
FY Budgeted Amount: not originally budgeted for.  Sustainability will be using savings from other projects to fund this cost.
Grant Funded: No
Funding Source: Sustainability Division 

This Agreement enables the Collaborators to expand and enhance the range of options available to each entity in pursuit of their clean electricity goals. Specifically, it supports the development of new, cost-effective clean energy projects that contribute to the growth and decarbonization of the electric grid.

This Agreement benefits each Collaborator by leveraging collective purchasing power to reduce costs through economies of scale and shared expenses. The Collaborators will seek a cost-effective project that supports the development of new clean electricity sources and delivers clean power in advance of 2030 targets.

The City of Flagstaff officially declared a climate emergency on June 23, 2020. The resolution, passed by the Flagstaff City Council, recognized the urgent need to address climate change and committed the City to taking accelerated action to reduce greenhouse gas emissions and build climate resilience.

Approve the resolution and proceed to the next phase of this initiative, which will allow NAU to issue a non-binding solicitation on behalf of the Collaborators to pursue more cost-effective clean electricity options.
Do not approve the resolution and continue with business as usual.

1. High Performing Governance
2. Safe & Healthy Communities
3. Sustainable & Innovative Infrastructure 
4. Robust & Resilient Economy
5. Livable Community
6. Environmental Stewardship

Goal E&C.2. Reduce greenhouse gas emissions
Goal E.2. Expand production and use of renewable energy.

BE-1 Achieve net zero energy City of Flagstaff facilities.
CE-1 Produce 100% renewable electricity to cover all City of Flagstaff municipal electricity needs.
CE-2 Increase renewable energy installations and usage in new buildings. 
 

This project does not directly advance the City's Ten Year Housing Plan.