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Sparks City Council Meeting 8/27/2012

Consent Items: 5.5

Title: Consideration and possible approval of the purchase of a Foxboro Distribution Control Support Agreement for the Truckee Meadows Water Reclamation Facility from Invensys Operations Management, in the amount of $48,259 in Fiscal Year 2012-13.
Petitioner/Presenter: Neil C. Krutz, PE, Deputy City Manager/Kim Laber, Acting Plant Manager / Mark Bowman, WW Systems Analyst
Recommendation: Staff recommends Council approve the purchase of a 3-year support agreement for the Distributed Control System Upgrade from Invensys Operations Management for a total of $148,982.
Financial Impact: There is no general fund impact. The cost associated with this fiscal year is $48,259 for Year 1 of the support agreement, and budget is available. This expense will be charged to Fund 5605, Account 603025, Contracts for Maintenance and Repairs, under Program 131502, TMWRF IT. Following quarterly reconciliation of TMWRF’s operating expenses, affecting the Sanitary Sewer Operations fund (1630), Sparks is expecting reimbursement of approximately $32,560.35 from the City of Reno based on actual flow splits provided by ADS Environmental as outlined in the interlocal agreement for the operations of the facility. The flow split for the most recent quarter, ending March 31, 2012, was 32.53% / 67.47% for the Cities of Sparks and Reno respectively. The remaining 2 years under this support agreement will be included in future budgets.
Total Costs: $148,982.00
Fund: Joint Treatment Plant    Account: 603025
Program: TMWRF IT (131502)
Amount: $148,982.00    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: Consideration and possible approval to purchase a support agreement for the Distributed Control System from the Foxboro Company for the amount of $148,982.


Background: The Distributed Control System (DCS) controls the operations of TMWRF. The current system was originally installed in 1998, after Foxboro was awarded the project in an open bid process. The Foxboro DCS has been very reliable and user friendly. This reliability is based in part by the use of a support agreement.

Analysis: A support agreement will give staff at TMWRF the tools necessary to keep the DCS system functioning at an optimum level. This will enable TMWRF to operate the facility with additional efficiency and less down time. The Foxboro DCS is a manufactured by Invensys Operations Management. Due to critical nature of control systems, only parts from the original manufacture should be used. Technical support through this agreement is provided from people that have direct communications with the engineers that designed the system. Additionally, the purchase of the agreement is classified as a software support agreement. For these reasons, only Invensys Operations Management can provide an acceptable support agreement and is exempt from the bidding process per NRS 332-115. TOTAL COST OF CONTRACT RENO SHARE SPARKS SHARE $148,982.00 $100,518.15 $48,463.85 Percentages (based on 67.47% 32.53% quarter ending 3/31/12)

Alternatives: 1. Council could direct TMWRF to operate without a support agreement, and risk getting into a position of not being able to repair a failure. 2. Council could also direct TMWRF to replace the entire system. This would be more expensive and also a very time consuming process. 3. Council could direct staff to provide other alternatives.

Recommended Motion: I move to approve that Council award the purchase of a 3-year service agreement to Invensys Operations Management for the amount of $148,982.

Attached Files:
     City of Sprrks CPC-0212-18232 R0 20-JULY-12.pdf

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