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Council directs staff to seek funding and planning for steam-to-gas conversions and building upgrades
Summary
The council directed staff to pursue funding strategies and plans to convert city-owned steam-heated buildings and address building upgrades, citing a legal compliance timeline and high projected costs; councilors discussed potential utility loans and bonds as funding options.
Buildings-and-Grounds chair Councilor Johnson asked staff to find additional funding and a plan for steam conversions and building upgrades across city facilities, noting an approximate two-year window for required work and serious cost pressure if projects are delayed.
Public Works Director Jim Rosvitt said many city pipes are internal and conversions will require testing such as chemical pressure tests to determine whether internal systems can accept replacement boilers and new systems. Rosvitt warned of complex logistics and potential change orders if issues are discovered during work. He said some roofs are failing and water infiltration is ongoing in certain buildings.
Council discussion centered on funding options. Councilor Paulson asked about a potential zero-interest loan from the public utilities; staff said the utilities commission may have limited funds but that utility loans or bonding could be considered. Councilor Paulson noted several bonds will drop off near 2026 and suggested analyzing amortization and timing. Councilors agreed steam conversions are a priority and asked Buildings and Grounds and staff to develop a phased plan and funding options that might include utility loans, bonds or phased contracting.
Council action: Council moved and supported a direction to staff to seek additional funding and planning options for steam conversion and building upgrades. The motion carried on voice vote.
Why it matters: The city faces a statutory deadline and rising costs; delays could increase construction costs and create more complicated retrofit work. Conversions may also increase operational and inspection requirements (additional boiler licenses and daily inspection regimes).
What’s next: Buildings and Grounds will inventory at-risk buildings, identify priorities, and work with finance and utilities staff to identify loan, rebate or bonding pathways and present recommendations to council.
Ending: The council directed staff to pursue funding and planning for the conversions with urgency; staff will return with cost estimates and financing scenarios.
