Sparks City Council Meeting 1/12/2015 2:00:00 PM

    Monday, January 12, 2015 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks

General Business: 9.8

Title: Consideration and possible approval of reimbursement to the City of Reno in the amount of $1,675,659.92 for the construction of the Truckee Meadows Water Reclamation Facility (TMWRF) 2014 Headworks Improvements Project.
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 KG Walters, Inc. for a contract to construct the Truckee Meadows Water Reclamation Facility (TMWRF) 2014 Headworks Improvements Project.
Financial Impact: There is no impact to the General Fund. As this is a continuing FY 2013-2014 project, appropriations will be augmented from either fund equity or savings from projects contained either 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 or from anticipated savings from a prior period capital project. The City of Reno will enter into an agreement with KG Walters Construction, Inc. in an amount of $5,341,600.00, including a force account of $700,000.00, and will administer the project. Reimbursement will be sought from the City of Sparks for its share of expenses up to $1,675,659.92 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%. Expenses will post to account 604090, TMWRF Construction, using CIP 14-6600A, TMWRF Headworks Improvements Project.
Total Costs: $1,675,659.92
Fund: Sanitary Sewer Cap Proj Fund    Account: 604080
Program: TMWRF Near-Term Improvements Project (14-6600A)
Amount: $1,675,659.92    Budget Status: Over Budget (See Budget Correction Plan)
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 reimbursement to the City of Reno in the amount of up to $1,675,659.92 for its share of an agreement in an amount not to exceed $5,341,600.00 with KG Walters Construction Inc. to construct the 2014 Headworks Improvements Project at TMWRF.   



Background:

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.  The Headworks facility, constructed in 1964, receives raw sewage flows from the entire sewer collection system, screens and measures the flow and pumps it up to the treatment process.

On January 11th, 2013 the City of Sparks declared an emergency to failures occurring in key components of the Headworks operation.  Under the emergency declaration, improvements to the Headworks operation were restricted to items that must be immediately repaired to assure continuing operation.  The assessment of the need for additional improvements became possible following the establishment of the pump-around.  Access to the dry internal spaces of Headworks enabled engineers to assess the condition of the concrete and steel structure and the mechanical and electrical equipment.   That assessment identified additional improvements which must be performed in the near-term to assure the sustainable and reliable operation of the Headworks facility. 

The previous approved consultant agreement (September, 2013), allowed for completion of a design for improvements that address items identified during the assessment. 



Analysis:

This project includes replacement of the mechanical screens, sluice gates, flumes and odor control system.  Additionally, repairs and improvements will be made to existing pump motor facilities, hydraulic systems and electrical equipment.  The engineer’s estimate for the construction of these improvements was $5,700,000.  The City of Reno conducted an open, competitive bid process for this project.  Bids were opened on November 12, 2014.  Of the four bids received, the lowest responsive and responsible bidder was K.G. Walters Construction Co., Inc. in the amount of $5,341,600.00.  The results for all bidders are shown in Table 1, attached.

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 tab is:

                                Total Project cost:           $5,341,600.00

                                Sparks’ Share:                   $1,675,659.92 (31.37%)

                                Reno’s Share:                    $3,655,940.08 (68.63%)



Alternatives:
  1. Council can approve the agreement as present by staff.
  2. Council could direct the manager to have staff provide other alternatives.


Recommended Motion:

I move to approve the reimbursement to the City of Reno for Sparks’ share of the construction of the 2014 Headworks Improvement Project in the amount of $1,675,659.92.



Attached Files:
     KG Walters Bid Docs I100068 TMWRF 2014 Headworks Improvements Project.pdf
     I100068 Headworks Const Contract Staff Report 20141117.pdf
     TMWRF Headworks Contract.pdf
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