2012 2:00:00 PM

Monday, February 13, 2012 2:00 PM
Sparks Council Chambers

Consent Items: 5.2

Title: Consideration and possible approval for a five (5) year contract in the amount of $74,865.00 to Siemens Energy Inc. to perform yearly preventative maintenance on the four (4) Turblex blowers located at the Truckee Meadows Water Reclamation Facility (TMWRF).

Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/David Bruketta – Acting Plant Manager / Kim Laber – Acting Maintenance Manager

Recommendation: Staff recommends City Council enter into a five (5) year contract with Siemens Energy Inc. in the amount of $74,865.00.

Financial Impact: $93,650.00 in appropriations is contained in the Fiscal Year 2011 – 2012 TMWRF operating budget for Contracts for Maintenance & Repair. This expense will be charged to Account 603025, Contracts for Maintenance & Repair, under Program 131510, TMWRF Maintenance. Following quarterly reconciliation of TMWRF’s operating expenses, Sparks is expecting a 70% reimbursement from the City of Reno based on the current flow percentage split of 70%(Reno)/30%(Sparks). Because this is a five (5) year contract, $14,973.00 will be available and budgeted for annually, with Reno’s share being $10,481.10 and Sparks share being $4491.90.

Total Costs: $74,865.00

Fund: Joint Treatment Plant Account: 603025
Program: TMWRF Maintenance (131510)
Amount: $74,865.00 Budget Status: Budget Exists

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 a five (5) year contract with Siemens Energy Inc. to provide preventative maintenance on the four (4) Turblex blowers at TMWRF. The preventative maintenance is needed to ensure that the blowers are running at optimal efficiency and to avoid costly reactive repairs.

Background: The Truckee Meadows Water Reclamation Facility (TMWRF) has five (5) aeration basins, which are part of the wastewater treatment process. This process requires large volumes of compressed air, which is supplied by the Turblex blowers. The failure of this process would lead to permit violations.

Analysis: The four (4) Turblex blowers are a critical part of the treatment process that is required to meet the discharge permit at TMWRF. By performing preventative maintenance on these blowers minor problems can be addressed and corrected before they become reactive failures. The preventative maintenance program includes an inspection of the blower mechanical equipment, inspection of blower instrumentation and controls and onsite training of operators. This will keep on-site personnel knowledgeable of the equipment and help ensure blower operation continues at peak operating efficiency, which will maximize power savings. Each of the Turblex blowers costs approximately $800,000.00 and by maintaining them via a factory authorized preventative maintenance program, the maximum life expectancy of each unit can be achieved, resulting in long-term financial benefits to TMWRF and rate payers. Staff has not solicited additional bids as the best results can be achieved by utilizing factory authorized and trained personnel on this specialized equipment. Siemens is the only factory authorized service center and distributor of OEM components in North America for these machines making them the sole source for performing maintenance on these units. A copy of the territory agreement is attached.

Alternatives: City Council could recommend that staff look at alternative options.

Recommended Motion: I move that City Council approve a five (5) year contract with Siemens Energy Inc. in the amount of $74,865.00 with the City of Sparks share being $22,459.50.

Attached Files:

Siemens Contract.pdf

Siemens proposal.pdf

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