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Nogales reviews LED streetlight conversion and 9-1-1 center design; council approves McKinstry oversight
Summary
Council reviewed a McKinstry proposal to upgrade municipal building HVAC and convert city streetlights to LEDs under a possible grant; council approved the proposal and discussed payback periods, rebates and options to take ownership of poles to deepen savings.
Nogales — City officials presented engineering and energy-efficiency proposals July 30 that would convert city streetlights to LEDs, replace aging HVAC systems and fund a design process for a new 9-1-1 communications center at the former armory.
City staff described a package McKinstry prepared showing an approximate $1.7 million project to convert municipal streetlights to LEDs and to replace aged mechanical equipment in city buildings. "If we change them all out... the savings would be about close to about $166,000 a year," a McKinstry presenter said. The packet included estimated rebates of roughly $132,000 and scenarios with payback between about a dozen and 22 years depending on scope.
The presentation noted that replacing only streetlights produces faster payback; adding HVAC and building mechanical replacements extended the payback (staff estimated roughly 20–22 years for the larger package). Officials also discussed potential financial structures including Greater Arizona Development Authority (GADA) financing and cooperative purchasing contracts that can cover consulting fees.
Officials discussed pole ownership and maintenance costs. "We are being charged for rental for the poles as well," staff said. Taking ownership of poles could increase upfront cost but reduce ongoing rental charges and shorten the payback period; staff said further legal and procurement checks would be needed.
The armory site: Chief Jimenez described a plan to use the armory property for a 9-1-1 center and a separate warehouse for city asset management. He said abatement (asbestos removal) is required before interior work continues and that an outside firm would perform oversight on construction and abatement. The council previously approved matching funds for 9-1-1 center grant work and staff said city contributions total about $1.2 million as the local match for grant awards discussed during the session.
Contract approval: The council voted to approve the McKinstry-related proposal and associated design/oversight contract under cooperative purchase authority. A council member asked about statutory contract provisions; the city attorney explained certain state-mandated clauses (e.g., e-verify, anti-boycott of Israel, and forced-labor prohibitions) are standard in state-level cooperative contracts.
What the council asked for next: Staff said they will provide written financing scenarios (e.g., with and without GADA, lien-structure implications) and the consultant will produce mock-ups and an implementation schedule. Officials also said they would provide monthly project updates to council once procurement and abatement work begins.
Ending: Council approved the McKinstry proposal at the meeting; additional procurement, financing and abatement work will return to council for contract approvals and oversight.
