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Sparks City Council Meeting 9/8/2014 2:00:00 PM
Monday, September 8, 2014 2:00 PMCouncil Chambers, Legislative Bldg. 745 4th St., Sparks
General Business: 9.2
Title: Consideration and possible approval of reimbursement to the City of Reno in the amount of $1,051,160.61 for the construction of the Electrical Systems Upgrades Phase II project at the Truckee Meadows Water Reclamation Facility.
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 Nelson Electric, Inc. to construct the Electrical Systems Upgrade Phase II project at the Truckee Meadows Water Reclamation Facility
Financial Impact: There is no impact to the General Fund. $1,653,302.52 remains designated for this continuing FY 2012-2013 project. Appropriations will be augmented from either fund equity or savings from projects contained in the 5-year Capital Improvement Plan (CIP) for the City of Sparks under Sanitary Sewer Capital Project Fund (1631), beginning with FY 2014-2015. The City of Reno will enter into an agreement with Nelson Electric Inc. in an amount not to exceed $3,350,846.70 and will administer the project. 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 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 13-6600D, TMWRF Electrical Systems Upgrade Phase II Project.
Total Costs: $1,051,160.61
Total Costs: $1,051,160.61|
Fund: Sanitary Sewer Cap Proj Fund Account: 604090 Program: TMWRF Electrical System Upgrades Project- Phase II (13-6600D) Amount: $1,051,160.61 Budget Status: Budget Exists |
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
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 $1,051,160.61 for its share of an agreement with Nelson Electric Inc. in an amount not to exceed $3,350,846.70 to construct the Electrical Systems Upgrades Phase II project at TMWRF.
Background: An arc-flash study of the electrical system components at TMWRF determined serious hazards existed due to aging, environmental factors and system reliability. The schedule of funding dictated that the electrical upgrades to correct all arc flash hazards be divided into two phases, Phase I and II. The first phase of electrical system upgrades was designed by CDMSmith and constructed by Auburn Construction with completion in the summer of 2013. Design of the Phase II improvements has now been completed. The previous authorized design work has resulted in the Phase II electrical improvements that when constructed will reduce arc-flash hazards, update electrical equipment that is at the end of its useful service life, provide electrical system redundancy to improve reliability of the plant to continuously treat sewage and meet discharge permit requirements. 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.
Analysis: This project will install four new medium voltage transformers, low voltage distribution switchboards, new medium voltage cables, new busways, new duct banks, generator quick connects at specific locations throughout the facility, modification to structures supporting electrical gear due to changes in size, and associated appurtenances. Bids were opened on June 29, 2014. The lowest responsive and responsible bidder is Nelson Electric Co., Inc. in the amount of $3,350,846.70. 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. Based on the ownership percentages, Reno’s share is up to $2,299,686.09 and Sparks share is up to $1,051,160.61.
Alternatives:
1. The City Council can approve the reimbursement as submitted by Staff.
2. The City Council can deny the reimbursement and provide direction to the City Manager.
Recommended Motion: I move to approve the reimbursement to the City of Reno for Sparks’ share of the construction of the Electrical Systems Upgrades Phase II project in the amount of $1,051,160.61.
Attached Files:
I100062 Const Contract Staff Rpt 20140730.pdf Nelson Electric Contract.pdf
