2012 2:00:00 PM

Monday, September 24, 2012 2:00 PM
Sparks Legislative Building, 745 4th Street, Sparks, NV 89431

Consent Items: 5.5

Title: Consideration and possible ratification of an equipment rental from Aggreko, LLC in the amount of $225,000.00 supplying a 2400 volt, 500 amp generator and transformer to Truckee Meadows Water Reclamation Facility (TMWRF) for 8 weeks.

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

Recommendation: Staff recommends City Council ratify the rental of a generator and transformer from Aggreko, LLC in the amount of $225,000.00.

Financial Impact: This does not impact the General Fund. This unplanned expense, secured by purchase order 100007540, is essential to TMWRF operations. Appropriations will be re-allocated from either the existing or the contingency budget in Fund 5605. Expenses will be charged to Account 603015, Rent- Equipment using Program 131505, TMWRF Operations. Following quarterly reconciliation of TMWRF’s operating expenses, affecting the Sanitary Sewer Operations fund (1630), Sparks is expecting reimbursement from the City of Reno based on actual flow splits provided by ADS Environmental as outlined in the inter local agreement for the operations of the facility, for the actual cost of this contract. The flow split for the most recent quarter, ending June 30, 2012, was 32.20% / 67.80% for the Cities of Sparks and Reno respectively and the approximate split is outlined in Table 1 below.

Total Costs: $80,280.00

Fund: Joint Treatment Plant Account: 603015
Program: TMWRF Operations (131505)
Amount: $80,280.00 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 that City Council approve a rental with Aggreko, LLC in the amount of $225,000.00 for the Truckee Meadows Water Reclamation Facility.

Background: Truckee Meadows Water Reclamation Facility (TMWRF) has two 25,000 volt incoming sources of power to the plant. These redundant power sources are a requirement of TMWRF’S permit as issued by the Nevada Department of Environmental Protection permit in order to ensure that the TMWRF plant always has power available. Electrical improvements are currently being performed at TMWRF. During the course of these upgrades additional equipment was determined to be faulty and unsafe to use. A 2400 volt, 3000 amp breaker and buss were found to be defective and continued use could jeopardize the facility and personnel. The loss of this equipment has reduced TMWRF to one source of incoming power which does not meet the requirements of our permit and puts the plant at risk. A power loss in excess of 8 -10 hours would most likely result permit violations and discharges from manholes. Staff has determined that the best solution to resolve this loss of redundancy is to rent the necessary generation equipment in the event that TMWRF loses its remaining power source so that the plant can continue to operate. The 2400 volt generation unit is required to run the 2400 volt blowers for the aeration tanks. Total Cost Reno Share Sparks Share $225,000.00 $152,550.00 $72,450.00 Percentages (based on quarter ending June 30, 2012 flow data) 67.80% 32.20%

Analysis: Due Due to the mission-critical nature of this equipment, staff has already initiated the emergency rental of the required equipment with the authorization of the City Manager. This staff report is written in order to ratify that action as the total cost is in excess of $25,000.00.

Alternatives: Council could direct staff to provide other alternatives.

Recommended Motion: I move to approve the rental with Aggreko, LLC in the amount of $225,000.00 with the City of Sparks share being approximately $72,450.00.

Attached Files:

Proposal from Aggreko.pdf

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