Nogales council approves lending sound system to Consulate event, OKs $205,714 design contract for former Chase Bank building

Nogales City Council approved two separate items during a May 14 special session: an in‑kind loan of the city sound system to the Consulate of Mexico for a May 16 benefit concert and a design-and-engineering contract for the building that will become the city’s administration offices.

The council voted to lend the city sound system to the Consulate of Mexico for a scholarship benefit concert to be held at the Winter Museum. The request was presented on behalf of the consulate; according to the transcript, organizers will provide an operator and “will be responsible for anything that happened to the system.” The motion to lend the equipment passed with no recorded opposition.

Council members also approved a contract for design and engineering services for the renovation of the former Chase Bank building, listed in the agenda as administration services building renovation to be completed by the company shown in the agenda materials. City Manager Joel Kramer said the contract being approved covers the design-and-engineering phase only and quoted the contract sum during the meeting as $205,714. Kramer and the city attorney explained the procurement was made under a cooperative purchasing agreement known as TIPS (a tie‑in cooperative procurement). Kramer said construction permits and the later construction contract are separate; permit costs are not included in the design contract and will be part of the construction phase. Kramer said the city will waive permit fees it would otherwise bill to itself for this project.

Kramer told the council that liquidated‑damages language and penalties for missed deadlines will be included in the later construction contract rather than in the current design contract. The council was told the TIPS cooperative purchase document incorporates the contractor’s license and the cooperative procurement terms while local contract language (Arizona law, scope of work, completion timelines and liquidated damages) is added for the city’s protections.

No council amendments to the design contract were recorded during the meeting. Council members asked about penalties and permit coverage during discussion; the motion to approve the design contract passed by voice vote.

Next steps identified by staff: the contractor will complete engineering and design documents, then the city will return to council with the construction contract and final schedules, at which point staff said local liquidated‑damages clauses and permit details will be finalized.