Consideration and Adoption of Resolution No. 2026-53:  A resolution approving an amendment to the Cooperative Purchasing Intergovernmental Agreement — Virtual Power Purchase Agreement and adding the City of Phoenix to the statewide consortium.
 

1. Read Resolution No. 2026-53 by title only
2. City Clerk reads Resolution No. 2026-53 by title only (if approved above)
3. Adopt Resolution No. 2026-53

The City of Flagstaff approved an intergovernmental agreement (IGA) with the Arizona Board of Regents (Northern Arizona University) that sunsets in October 2026.  The IGA authorizes Northern Arizona University to act on behalf of a statewide consortium (City of Flagstaff, City of Sedona, City of Tempe, Arizona State University, and Northern Arizona University) and lead procurement for a virtual power agreement for the purchase of renewable energy credits.  This amendment extends the IGA for an additional year and adds the City of Phoenix to the statewide consortium. 

Project Name: Intergovernmental Cooperative Purchasing Agreement — Virtual Power Purchase Agreement
Cost: If the procurement process results in a qualified developer and a fiscally viable project, staff will return to City Council for direction on next steps. If the Council authorizes staff to proceed with the selected renewable energy developer and contribute to shared legal costs with the consortium, the City’s contribution is capped at $10,000.  This process is anticipated in early FY 27-28. 
Account Number Budgeted: 214-12-170-0671
FY Budgeted Amount: The Sustainability Division will request funds in the next fiscal-year budget process or will use funding from current energy efficiency projects. 
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 credits to support organizational commitments.

This item was discussed with the City Council at the August 26, 2025, work session.  The City Council approved this Intergovernmental Agreement on October 7, 2025, by resolution.

Not approve the amendment and leave the statewide consortium.

Connection to PBB Priorities and Objectives:

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

Connection to Regional Plan:
Goal E&C.2. Reduce greenhouse gas emissions
Goal E.2. Expand production and use of renewable energy.

Connection to Carbon Neutrality Plan:
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 initiative does not directly support the Ten-Year Housing Plan.