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Sparks City Council Meeting 11/13/2012 2:00:00 PM
Tuesday, November 13, 2012 2:00 PMSparks Legislative Building, 745 E. 4th Street, Sparks, NV 89431
Consent Items: 5.13
Title: Consideration and possible ratification of a purchase order in the amount not to exceed $65,000.00 to Thomas Petroleum for supplying diesel fuel to operate emergency generators at the Truckee Meadows Water Reclamation Facility (TMWRF).
Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Kim Laber – Acting Plant Manager
Recommendation: Staff recommends City Council ratify the diesel fuel provided by Thomas Petroleum in the amount not to exceed $65,000.00.
Financial Impact: This does not impact the General Fund. This unplanned expense, secured by Purchase Order 100007700, 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 603450, Fuel- Bulk 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 interlocal agreement for the operations of the facility, for the actual cost of this contract but not to exceed $65,000.00. 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 (See Attachment-Table1).
Total Costs: $65,000.00
Total Costs: $65,000.00|
Fund: Joint Treatment Plant Account: 603450 Program: TMWRF Operations (131505) Amount: $65,000.00 Budget Status: Over Budget (See Budget Correction Plan) |
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Budget Correction Plan: Appropriations will be re-allocated from either the existing or the contingency budget in Fund 5605. |
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: City staff is asking City Council to ratify a purchase order with Thomas Petroleum in the amount not to exceed $65,000.00 for the Truckee Meadows Water Reclamation Facility for supplying diesel to operate emergency generation.
Background: Truckee Meadows Water Reclamation Facility (TMWRF) has been operating three (3) diesel operated generators since September 12, 2012 due to the failure of one of its 25,000 volt incoming sources of power to the plant. The three (3) generators supplied by Auburn Constructors Inc. are being operated continuously 24 hours a day a take approximately 30% of the load off of the remaining breaker until repairs can be made to both breakers and busses. Diesel supplied by Sierra Fuel Co. to operate these generators was being paid for by Auburn Constructors. On Friday, October 5th, at approximately 2:00 pm TMWRF was advised that Sierra Fuel Co. would be unable to make deliveries due to a west coast fuel shortage. Two oil refineries in California that supply fuel to Nevada were experiencing delivery issues. Operations staff made numerous calls to the major bulk fuel suppliers in Sparks, Reno and Salt Lake City attempting to locate a supplier. Thomas Petroleum, a major supplier of diesel fuel to the mines in Nevada, was the only supplier that had sufficient fuel on hand to meet the fuel demands of TMWRF. TMWRF decided to handle the purchase of the fuel from October 5, 2012 until October 12, 2012 at which time Auburn Constructors resumed responsibility for procurement of the diesel fuel.
Analysis: Due to the mission-critical nature of continuous operation of the diesel generators to meet NDEP permit requirements, staff has already initiated the emergency purchase of the required diesel fuel with the authorization of the City Manager. This purchase order was sole sourced to Thomas Petroleum. This decision was based on the fact that Thomas Petroleum was the only bulk supplier of diesel fuel that was able to meet the emergency demands for delivery and quantities in order to keep the emergency generators operating 24 hours a day. 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 ratify the purchase order with Thomas Petroleum in the amount of $65,000.00 with the City of Sparks share being approximately $20,930.00.
Attached Files:
Table 1.pdf
