TMWRF is serviced by two incoming 24.9 kilovolt (kV) sources provided by NV Energy.  Each incoming service is connected to a transformer through a closed switch that converts the 24.9 kV to 2,400 volts.  The reduced voltage is then sent to the TMWRF’s main electrical switch gear for distribution throughout the plant.  The current 24.9 kV transformers were installed in 1986 and are reaching the limits of their intended reliable service life.  Over the last five years, tests have found degradation of the transformer oil indicating the equipment beginning to fail.  Additionally, the 2007 Arc Flash study identified these transformers as presenting a dangerous Arc flash hazard.  The substation rehabilitation includes the two primary transformers, the feeders and switches.  

The City of Reno held an open, competitive bid for the proposed work.  Nelson Electric Inc. was the lowest responsible bidder with a total project bid of $931,200.00.  This item is scheduled to be heard by the Reno City Council at their regular meeting on October 25, 2017.  Staff is asking the Sparks City Council to approve this item first to expedite the procurement of necessary materials, primarily the transformers.  Staff is anticipating a large increase in factory orders for transformers and related electrical equipment as a result of flood damage to electrical systems throughout the south-eastern United States and Puerto Rico. 

City of Reno staff 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, Sparks’ share of this agreement is an amount not to exceed $292,117.44.  

Council could direct the City Manager to provide other alternatives.

I move to approve a reimbursement to the City of Reno for Sparks’ share of a contract with Nelson Electric for the Electrical Substation Rehabilitation Project at TMWRF in an amount not to exceed $292,117.44.