Sparks City Council Meeting 1/23/2012 2:00:00 PM

    Monday, January 23, 2012 2:00 PM
    Sparks Council Chambers, 745 4th Street, Sparks, NV 89431

General Business: 6.3

Title: Consideration and possible approval of reimbursement to the City of Reno in the amount of $1,140,393.61 for Sparks’ share of a bid award to Auburn Constructors, Inc. by the City of Reno for upgrades to the electrical system at Truckee Meadows Water Reclamation Facility (TMWRF)
Petitioner/Presenter: Neil C. Krutz, P.E. – Director of Community Services/Kim Laber – Acting TMWRF Maintenance Manager
Recommendation: Staff recommends City Council approve Sparks’ share of the contract between the City of Reno and Auburn Constructors Inc. for a contract to replace electrical switch gear and transformers A & B at TMWRF.
Financial Impact: Funding will come from two sources. $784,250.00 of appropriations has been set aside in the 5-year Capital Improvement Plan (CIP) for the City of Sparks under TMWRF Electrical System upgrades Project, CIP Number 126600, in Fund 1631, Sanitary Sewer Capital Project Fund. Another $356,143.61 will be augmented from the previous year’s project. The City of Reno will enter into an agreement with Auburn Constructors Inc. for up to $ 3,635,300.00 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 %, or up to $ 2,494,906.39 and Sparks being 31.37%, or up to $1,140,393.61. Expenses will post to account 604090, TMWRF Construction using CIP 12-6600-100.
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: City staff is asking the City Council to approve reimbursement to the City of Reno in the amount of $1,140,393.61 for its share of a $ 3,363,300.00 contract administered by the City of Reno with Auburn Constructors, Inc. to provide and install electrical upgrades at TMWRF. Electrical upgrades are required to ensure compliance with the Environmental Protection Agency permit and the health and safety of plant personnel.

Background: Transformers A & B and related electrical switch gear went into service in 1964 during the original construction of the Truckee Meadows Water reclamation Facility and have been in use beyond their normal useful life (40 years). These systems have been exposed to corrosive environments associated with municipal wastewater treatment. A study was performed by CDM Engineering to assess the 1964 electrical equipment for safety risks and vulnerability to failure at TMWRF and the highest priority identified for replacement were transformers A & B as well as the switch gear and Low Voltage Distribution Centers associated with those transformers. Currently based on the Arc Flash Study this equipment cannot be worked on by plant personnel due to the potential health and safety risks inherent in this obsolete equipment.

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 ownership of TMWRF, which is 68.63% for Reno and 31.37% for Sparks. Based on the ownership percentages, Reno’s share is $ 2,494,906.39 and Sparks share is $ 1,140,393.61. Table 1 – Cost Sharing Between Reno and Sparks Total cost of contract Reno Share Sparks Share $ 3,635,300.00 $2,494,906.39 $1,140,393.61 Percentages 68.63% 31.37% Two responsive bids were received for this project: 1) Auburn Constructors, Inc. @ $3,635,300.00 2) Central Sierra Electric Company @ $3,923,000.00 3) A local northern Nevada company (Nelson Electric) failed to file the proper paper work. Staff has determined that the transformers and related electrical equipment need to be replaced. The equipment has performed well beyond its intended useful life. Failure of this equipment would most likely lead to permit violations as it would disable a major portion of the plant process. This equipment supplies power to secondary clarifiers and other electrical equipment which are an integral part of the treatment process. In addition plant personnel are unable to service this equipment due to the Arc Flash hazards associated with the electrical components contained within the equipment. Replacement of these components is necessary to the continued uninterrupted operation of the facility to meet discharge requirements.

Alternatives: Council could direct staff to provide other alternative.

Recommended Motion: I move to approve that Council award the approval of reimbursement to the City of Reno for Sparks’ share of the electrical upgrades in the amount of $1,140,393.61.

Attached Files:
     TMWRF Elec Sys Upgrades Contract w Reno.pdf
     TMWRF electrical upgrades-Reno staff rpt.pdf
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