Council approves $48,628 HVAC purchase and green-energy negotiations for municipal building

City consultants presented a multi-option plan on Oct. 30 to update failing HVAC and geothermal systems at a municipal building and to pursue an energy‑savings financing approach.

Doug Strauss, a mechanical engineer brought in to survey the building's systems, told the council one of two geothermal loops is offline and several heat pumps and controls are near failure. He said replacing failed elements and upgrading controls could be staged, and that an energy-savings contract with Energy Systems Group could help offset costs for a larger retrofit.

"One of those loops is shut off, so you're only running on half of your system," Strauss said, detailing how the degraded loop affects summertime heat rejection and current reliance on a supplemental boiler.

Staff proposed two actions: purchase of heat pumps and software and authorization for the city administrator to negotiate a broader phase‑2 contract with Automated Technologies and Energy Systems Group. Council authorized the City Administrator to execute the proposal from Automated Technologies in the amount of $48,628 for the initial purchase and approved the motion to proceed with negotiated agreements for later phases.

Council members asked timing and underground-impact questions; Strauss said vertical geothermal wells are common locally and that while occasional geofield issues arise, mechanical components typically wear first. The consultant recommended drilling replacement wells only for the damaged portion of the field and proceeding with a targeted, staged approach if full replacement proved costlier than adding a dry cooler.

Council directed staff to advance the purchase and continue contract negotiations; if the broader scope proves financially infeasible, staff will return with alternatives.