Staff Report

Town of Fountain Hills — Town Council (2026-03-03)

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ITEM 9.a. 
 
TOWN OF FOUNTAIN HILLS 
 
STAFF REPORT 
 
Meeting Date: 
3/3/2026 
Meeting Type: 
Town Council Regular Meeting 
Submitting Department: 
Public Works 
Prepared by: 
Justin Weldy, Public Works Director 
Staff Contact Information: Phone: 480-816-5133 
Email: jweldy@fountainhillsaz.gov 
 
Request to Town Council Regular Meeting (Agenda Language) 
CONSIDERATION AND POSSIBLE ACTION: Relating to Cooperative Purchasing 
Agreement 2026-058 with B2B Direct Sales Inc., dba The HVAC Co. 
 
Staff Summary (background) 
Staff is requesting Council authorization to proceed with modifications to the Central Plant 
chilled water piping system to provide full operational redundancy between the chillers and 
cooling towers. 
 
The proposed piping reconfiguration will allow the Town to operate chillers and cooling 
towers in any configuration, ensuring uninterrupted cooling during peak demand periods, 
increasing energy efficiency, extending equipment life, and reducing the risk of facility 
downtime. 
 
The Town’s central plant provides cooling to Town Hall and associated facilities through a 
system of chillers and cooling towers operating in a Lead-Lag (Primary-Secondary) 
configuration. 
 
Under the current piping configuration, the system does not allow full redundancy. During 
periods of high cooling demand, if one chiller becomes inoperable, the remaining chiller 
cannot adequately maintain cooling capacity. This creates a significant operational risk during 
peak summer conditions. 
 
Currently, the system allows the following operational configurations: 
• 2–3 
• 1–3 
• 3–1 
• 3–2 
However, the system cannot operate in the following configurations: 
• 1–2 
• 2–1 
This limitation reduces flexibility and redundancy during high-demand or mechanical failure 
scenarios.

The proposed project includes modifications to the cooling tower return loop piping. These 
changes will: 
• Allow chillers and cooling towers to operate in any configuration 
• Provide full redundancy between equipment 
• Enable improved Lead-Lag and Primary-Secondary operations 
• Increase system reliability during peak summer demand 
  
Operational Benefits 
1. Full Redundancy 
The modified system will allow any chiller to operate with any cooling tower. This nearly 
eliminates the risk of losing adequate cooling capacity during a single equipment failure. 
2. Reduced Risk of Downtime 
In the event of catastrophic mechanical failure of a chiller or cooling tower, staff will be able 
to reconfigure the system and maintain building cooling. This protects: 
• Town Hall operations 
• IT/server infrastructure 
• Court functions 
• Public access services 
3. Extended “Free Cooling” Season 
The piping modification will allow staff to circulate water through both cooling towers and 
utilize evaporative cooling without operating the chillers during appropriate weather 
conditions. 
This “free cooling” mode: 
• Reduces energy consumption 
• Lowers operating costs 
• Reduces runtime on chillers 
• Extends equipment life 
4. Equipment Longevity 
Improved flexibility reduces system stress and allows better load balancing between chillers, 
extending service life and lowering long-term replacement costs. 
 
The total cost of the Central Plant chilled water piping project is in the amount of 
$189,633.21, which includes $17,239.38 in contingency funds. Sufficient funding exists and 
sufficient budget authority in the Facilities Reserve Fund can be used in the current fiscal 
year, and the project will be paid for from this fund. This investment improves operational 
reliability, reduces risk exposure, and is expected to generate long-term energy savings 
through increased “free cooling” capability and reduced equipment wear. 
  
Without this modification: 
• A single chiller failure during peak summer demand could result in inadequate cooling 
capacity. 
• Critical Town operations could be disrupted. 
• Emergency rental cooling equipment may be required at significant expense.

• Equipment stress may shorten system lifespan. 
 
Related Ordinance, Policy or Guiding Principle 
This project is consistent with the Town’s guiding principles of: 
• Asset management and infrastructure preservation 
• Operational continuity of essential public facilities 
• Fiscal responsibility through lifecycle cost management 
• Risk mitigation for critical systems 
 
Risk Analysis 
Without this modification: 
• A single chiller failure during peak summer demand could result in inadequate cooling 
capacity. 
• Critical Town operations could be disrupted. 
• Emergency rental cooling equipment may be required at significant expense. 
• Equipment stress may shorten system lifespan. 
 
Recommendation(s) by Board(s) or Commission(s) 
N/A 
 
Staff Recommendation(s) 
Staff recommends that the Town Council authorize the modification of the Central Plant 
chilled water piping system to provide full redundancy and operational flexibility. 
 
Suggested Motion 
Move to approve Cooperative Purchasing Agreement 2026-058 with B2B Direct Sales Inc., 
dba The HVAC Co. in the amount of $189,633.21, which includes $17,239.38 in 
contingency. 
 
FISCAL IMPACT 
Fiscal Impact: $189,633.21, which includes $17,239.38 in contingency. 
Budget Reference: FY2026 
Funding Source: Facilities Reserve Fund 
 
ATTACHMENTS 
1. 
2026-058 HVAC Co 
2. 
Cooling Tower Return Piping Quote