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Sparks City Council Meeting 10/23/2017

General Business: 9.5

Title: Consideration, discussion and possible approval of a reimbursement to the City of Reno for Sparks’ share of a contract (AC-5415) with Nelson Electric for the Electrical Substation Rehabilitation Project at the Truckee Meadows Water Reclamation Facility (TMWRF) in an amount not to exceed $292,117.44.
Petitioner/Presenter: John A. Martini, P.E. – Community Services Director/Michael Drinkwater, P.E. – TMWRF Plant Manager
Recommendation: Staff recommends City Council approve reimbursing the City of Reno for Sparks’ share of the contract between the City of Reno and Nelson Electric for the Electrical Substation Rehabilitation Project.
Financial Impact: There is no impact to the General Fund. This project is in the JCC approved Capital Improvement Program for FY 18. Fund 1631, account 604090, program 15-6590E.
Total Costs: $292,117.44
Fund: Sanitary Sewer Cap Proj Fund    Account: 604090
Program: TMWRF- Substation Electrical Rehabilitation (15-6590E)
Amount: $292,117.44    Budget Status: Budget Exists
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 a reimbursement to the City of Reno for Sparks’ share of a contract between Reno and Nelson Electric for the Electrical Substation Project in an amount not to exceed $292,117.44. This item is scheduled to be heard by the Reno City Council at their regular meeting on October 25, 2017.  Staff is asking the Sparks City Council to approve this item first to expedite the procurement of necessary materials, primarily the transformers.  Staff is anticipating a large increase in factory orders for transformers and related electrical equipment as a result of flood damage to electrical systems throughout the south-eastern United States and Puerto Rico.  



Background:

TMWRF is serviced by two incoming 24.9 kilovolt (kV) sources provided by NV Energy.  Each incoming service is connected to a transformer through a closed switch that converts the 24.9 kV to 2,400 volts.  The reduced voltage is then sent to the TMWRF’s main electrical switch gear for distribution throughout the plant.  The current 24.9 kV transformers were installed in 1986 and are reaching the limits of their intended reliable service life.  Over the last five years, tests have found degradation of the transformer oil indicating the equipment beginning to fail.  Additionally, the 2007 Arc Flash study identified these transformers as presenting a dangerous Arc flash hazard.  The substation rehabilitation includes the two primary transformers, the feeders and switches.  



Analysis:

The City of Reno held an open, competitive bid for the proposed work.  Nelson Electric Inc. was the lowest responsible bidder with a total project bid of $931,200.00.  This item is scheduled to be heard by the Reno City Council at their regular meeting on October 25, 2017.  Staff is asking the Sparks City Council to approve this item first to expedite the procurement of necessary materials, primarily the transformers.  Staff is anticipating a large increase in factory orders for transformers and related electrical equipment as a result of flood damage to electrical systems throughout the south-eastern United States and Puerto Rico. 

City of Reno staff 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. Based on the ownership percentages, Sparks’ share of this agreement is an amount not to exceed $292,117.44.  



Alternatives:

Council could direct the City Manager to provide other alternatives.



Recommended Motion:

I move to approve a reimbursement to the City of Reno for Sparks’ share of a contract with Nelson Electric for the Electrical Substation Rehabilitation Project at TMWRF in an amount not to exceed $292,117.44.



Attached Files:
     Substation Construction-Reno Staff Report.pdf
     Construction Contract.pdf

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