Sparks City Council Meeting 5/27/2014 2:00:00 PM

    Tuesday, May 27, 2014 2:00 PM
    Sparks City Hall, Legislative Bldg, Council Chambers, 745 4th St., Sparks

General Business: 6.4

Title: Consideration and possible approval of a consulting agreement for Construction Management Services with Stantec Consulting Services, Inc. for the Truckee Meadows Water Reclamation Facility (TMWRF) Ameresco Energy Cost Savings Project in an amount not to exceed $399,000, with the City of Sparks’ portion being $125,166.30.
Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Michael Drinkwater P.E. – TMWRF Plant Manager
Recommendation: Staff recommends Council approve the Agreement for construction management services with Stantec Consulting Services, Inc. for services as described in the attached proposal in an amount not to exceed $399,000 (Sparks’ share being $125,166.30) and authorize the Mayor to execute the attached Agreement.
Financial Impact: There is no impact to the General Fund. The Ameresco Energy Cost Savings Project was not in the adopted 5-year Capital Improvement Plan (CIP) for the City of Sparks but following the City of Reno Council action, Sparks City Council approved their share on March 24, 2014, Agenda Item 6.5. Appropriations will be provided from either the re-allocation of remaining appropriations or from an as needed budget augmentation from the Utilities funds. Reimbursement will be sought 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 as outlined in the attached Table. Expenses will post to account 604090, TMWRF Construction using CIP 14-6600X.
Total Costs: $125,166.30
Fund: Sanitary Sewer Cap Proj Fund    Account: 604090
Program: TMWRF Projects (14-6600)
Amount: $125,166.30    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: Staff is asking the City Council to approve an agreement with Stantec Consulting for construction management services in support of the Ameresco Project.


TMWRF is jointly owned by the Cities of Reno and Sparks. The City of Reno provides oversight and implementation of the Capital Improvements for TMWRF, while the City of Sparks is responsible for the plant operations. With the implementation of the ESCo project, there will be a reduction in electrical consumption and chemical use resulting in long term benefits to both Cities. The Financial Grade Operational Audit was developed and prepared by Ameresco, Inc. The audit analyzed energy, water, chemical usage, and operating cost savings measures and developed a performance project. The audit included the estimated savings to be accrued, the costs to implement the project, and the internal controls used to ensure that project performance is achieved. A project resulting from the Financial Grade Operational Audit will have the project savings and performance guaranteed by Ameresco, Inc., under NRS 332, for a period of up to 15 years.

Discussion: Council approved the agreements for the TMWRF Energy Savings Project with Ameresco initiating the 2-year project on March 24, 2014. This project will be a design build project and will be constructed concurrently with other Capital Improvement Projects underway at TMWRF. This consultant agreement will assist staff by providing construction management services during project construction that includes: coordination of design and plan review, part time construction observation, communications coordination, attend project construction meetings, submittal coordination and review, payment request review, and closeout document coordination, during the 24-month construction period. Stantec Consulting Services, Inc. was selected from the City of Reno’s approved list of engineering consultants.

Analysis: 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 pro-rata ownership of TMWRF, which is 68.63% for Reno and 31.37% for Sparks. Based on these splits the City of Sparks’ share is $125,166.30 and the City of Reno’s share is $273,833.70.

Alternatives: Council could direct staff to provide other alternative.

Recommended Motion: I move to approve the Performance Contract for Energy Cost Savings with Ameresco, Inc. for the Truckee Meadows Water Reclamation Facility and authorize the Mayor to sign the agreement.

Attached Files:
     Stantec CM Scope and Agreement 20140408.pdf
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