A new Jenbacher co-generation engine was installed at TMWRF in March 2016 to produce electricity from the waste digester gas.  This engine requires routine service and maintenance to ensure performance and to maintain warranty coverage.  Smith Power Products is the Jenbacher authorized service contractor for Nevada and while headquartered in Salt Lake City, Smith maintains a satellite office in the City of Sparks.

The attached multi-year agreement detailing the services to be provided has been reviewed by the City’s Purchasing department and the City Attorney’s Office.  It provides for the necessary maintenance of the engine up to 60,000 hours of service, or approximately 8 ½ years based on expected operation time.  The cost of the agreement is based on total hours of operation of the engine during each year.  Because the engine is new, no historical operational data is available.  Based on expected run hours during the balance of the current fiscal year, the total cost for FY 17 is estimated to be $39,585.  The cost of the service agreement will be included in the TMWRF operational budget each fiscal year.  This cost was included as an expense in the Ameressco Project overall savings calculation.

Council can reject the agreement and direct the Manager to provide an alternate solution

I move to approve the multi-year agreement with Smith Power Products for an estimated annual cost of $62,000.