Sparks City Council Meeting 1/13/2014 2:00:00 PM

    Monday, January 13, 2014 2:00 PM
    City Council Ch;ambers, Legislative Building, 745 Fourth Street, Sparks, NV

General Business: 6.7

Title: Consideration and possible approval of reimbursement to the City of Reno for an Award of a Contract to KG Walters Construction Co., Inc. for construction of the Truckee Meadows Water Reclamation Facility (TMWRF) Digester Gas Conditioning System Project in an amount not to exceed $4,441,500.00, with the City of Sparks’ portion being $1,084,617.75
Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Michael Drinkwater P.E. – TMWRF Plant Manager / Todd Saxberg – TMWRF Operations Manager
Recommendation: Staff recommends Council approve reimbursement for the Award of Contract to KG Walters Construction Co., Inc. for the Truckee Meadows Water Reclamation Facility Digester Gas Conditioning System Project with the City of Sparks portion being $1,084,617.75
Financial Impact: There is no impact to the General Fund. $3,980,189.45 of appropriations remain in the 5-year Capital Improvement Plan (CIP) for the City of Sparks under TMWRF Projects, CIP 14-6600, in Fund 1631 - Sanitary Sewer Capital Project Fund. The City of Reno will enter into a construction contract with KG Walters Construction Co., Inc. for up to $4,441,500.00 and will administer the project. A $984,000.00 Federal grant has been secured to assist with the purchase of the gas conditioning equipment. This amount will be deducted from the total cost before the respective shares for Reno and Sparks are determined. Reimbursement will be requested from the City of Sparks for its share of expenses through the current cost sharing agreement for TMWRF capital projects, based on 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 13-6600E. This project is included in the TMWRF FY2014 Capital Improvement Plan that was approved by the Joint Coordinating Committee.
Total Costs: $1,084,617.75
Fund: Sanitary Sewer Cap Proj Fund    Account: 604090
Program: TMWRF Digesters- Gas System Upgrades Project (13-6600E)
Amount: $1,084,617.75    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: City staff is requesting Council to approve reimbursement to the City of Reno in the amount of $1,084.617.75 for its share of a $4,441,500.00 contract administered by the City of Reno with KG Walters Construction Co., Inc. to provide construction of the TMWRF Digester Gas Conditioning System described in the attached proposal for the Digester Gas System Upgrades Project.


Background: In an earlier council action on December 10, 2012, Sparks City Council approved reimbursement for an agreement for professional engineering services between the City of Reno and Carollo Engineers, Inc., for engineering services in support of the design of a Digester Gas Conditioning System at TMWRF in the amount of $324,798.00 with the City of Sparks portion being $101,889.14. The Truckee Meadows Water Reclamation Facility 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. The Washoe County Health Department Air Quality Management Division (WCHDAQMD) has issued a Permit to Construct Air Quality Permit for TMWRF and has directed the design and installation of a digester biogas conditioning system to replace past treatment processes for Hydrogen Sulfide (H2S) control in order for the facility to comply with current air quality regulations. The City of Sparks was successful in obtaining a Federal Department of Energy (DOE) matching grant of $984,000.00 to partially defray the cost of the proposed gas conditioning system. This grant has been included in determining City of Sparks' portion of the costs. The previous authorized design work has resulted in the final design of a Digester Gas Conditioning System that when constructed will provide for compliance with Air Quality regulations through the control of hydrogen sulfide,(H2S) and siloxanes, will produce a conditioned gas suitable as fuel for on-site generation of electricity and heat, will help reduce boiler and sludge heater maintenance requirements, and will eliminate a safety hazard associated with corroded and leaking digester gas piping internal to the Digestion Complex at TMWRF.

Analysis: This project will construct new digester gas collection piping, gas blowers, biological hydrogen sulfide removal tower, hydrogen sulfide removal media polishing vessels and media, gas moisture removal system, siloxane removal vessels and media, gas flare, gas meters, monitoring and control equipment, and modifications to limited portions of the gas distribution piping. Solicitation for the construction contract, under Quest project number 2971139, was advertised on November 13, 2013 in the Reno Gazette Journal and known interested vendors were alerted to the availability to the bid package via the City of Reno internet website. Three (3) bids were publicly opened on December 18, 2013 at 2:00 PM at Reno City Hall. A summary of those bids is shown in Table 2, attached.

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

Recommended Motion: I move to approve that Council grant the reimbursement to the City of Reno for Sparks’ share of the construction contract in the amount of $1,084,617.75

Attached Files:
     I100065 Bid summary 20131218.pdf
     Reno Staff Report-Construction Walters.pdf
     I100065 Construction Contract.pdf
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