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Sparks City Council Meeting 2/9/2015

General Business: 9.2

Title: Consideration and possible approval of reimbursement to the City of Reno in the amount of $263,139.72 for the City of Sparks’ share of a consulting agreement between the City of Reno and Stantec Consulting, Inc. to provide construction management services for the Near Term Headworks Improvement Project.
Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Michael Drinkwater, P.E. – TMWRF Plant Manager
Recommendation: Staff recommends City Council approve Sparks’ share of the contract between the City of Reno and Stantec Consulting Services for construction management services for the Near-Term Headworks Project.
Financial Impact: There is no impact to the General Fund. As this is a continuing FY 2013-2014 project, appropriations will be augmented from either fund equity in the Utilities fund grouping or from savings from projects contained in the adopted 5-year Capital Improvement Plan (CIP) for the City of Sparks, beginning with FY 2014-2015. The City of Reno will enter into an agreement with Stantec Consulting in an amount of $838,826.00 and will administer the project. Reimbursement will be sought from the City of Sparks for its share of expenses up to $263,139.72 through the current cost sharing agreement for TMWRF capital projects, based on the ownership of TMWRF with the City of Reno being 68.63% and Sparks being 31.37%, as illustrated in the attached Table 1. Expenses will post to Account 604090, TMWRF Construction, using CIP 14-6600A, TMWRF Headworks Near-Term Improvements Project.
Total Costs: $26,139.72
Fund: Sanitary Sewer Cap Proj Fund    Account: 604090
Program: TMWRF Near-Term Improvements Project (14-6600A)
Amount: $26,139.72    Budget Status: Over Budget (See Budget Correction Plan)
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

TMWRF staff is asking the City Council to approve reimbursement to the City of Reno in the amount of up to $263,139.72 for Sparks’ share of the consulting agreement with Stantec Consulting, Inc. for construction management services for the Near-Term Headworks Improvement Project.   



Background:

The Truckee Meadows Water Reclamation Facility (TMWRF) is jointly owned by the Cities of Reno and Sparks. The City of Reno oversees the Capital Improvement Program for TMWRF, while the City of Sparks manages operations.   A contract for the design of improvements to the headworks facility was awarded to Stantec Consulting Services in October 2013 in an amount of $633,702.  Upon completion of the design the project was put out for open, competitive bidding.  As a result of that bid the contract for construction of the improvements with KG Walters Construction was approved by council on January 12, 2015.  The current proposed agreement would provide for construction inspection and materials testing during the construction of the project.

Due to the time critical nature of rapidly completing the design and constructing the project which would help minimize the potential of additional equipment failures, the Consultant proceeded with the additional design work.  Per detailed review of the additional design task costs, the significant increase in project complexity, and the fact that a good set of bids were received on this project, Staff’s opinion is that the additional level of effort is acceptable.



Analysis:

This consultant agreement will provide services during project construction that includes construction management, engineering services during construction, inspection and testing.  In addition to the construction management tasks there is an augmentation of $80,000 to cover the additional design work and funding for final design tasks.  This additional work was deemed necessary to complete the design in a timely fashion and to include all necessary components to ensure the project resulted in a functioning facility.  The additional tasks, as partially summarized in this staff report and detailed amended agreement, have expanded the design, engineering, and construction management services of Stantec an additional $838,826.00 thereby increasing the total design and engineering services during for this project to $1,472,528.00.

The City of Reno will administer the contract and will be reimbursed for a portion of the costs by the City of Sparks through the Sparks – Reno cost sharing agreement for TMWRF.  The City of Reno and the City of Sparks share the cost for this project based upon their ownership of TMWRF, which is 68.63% for Reno and 31.37% for Sparks.  

Cost Sharing between Reno and Sparks – see Attachment 1



Alternatives:

Alternatives: Council could direct the manager to have staff provide other alternatives.



Recommended Motion:

I move to approve the reimbursement agreement with the City of Reno for the Sparks’ share of a contract for construction management service with Stantec Consulting in an amount not to exceed $263,139.72.



Attached Files:
     Attachment 1.pdf
     I100068 Headworks CM Reno Staff Report 20141211.pdf
     Additional work letter 11-7-2014.pdf
     I100068 Headworks Near-Term CM Agreement 20141219.pdf

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