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Sparks City Council Meeting 1/14/2013 2:00:00 PM
Monday, January 14, 2013 2:00 PMSparks Council Chambers, 745 4th Street, Sparks, NV
General Business: 6.3
Title: Consideration and possible approval of reimbursement to the City of Reno in the amount of $444,834.72 for Sparks’ share of a change order 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. – Deputy City Manager/Kim Laber – Acting TMWRF Plant Manager
Recommendation: Staff recommends City Council approve Sparks’ share of the contract between the City of Reno and Auburn Constructors Inc. for a change order to replace electrical switch gear Sources A & B.
Financial Impact: There is no impact to the General Fund. $1,931,001.48 of appropriations remains in the 5-year Capital Improvement Plan (CIP) for the City of Sparks under TMWRF Projects, CIP 136600, in Fund 1631, Sanitary Sewer Capital Project Fund. The City of Reno will enter into an agreement with Auburn for this change order for up to $1,418,025.88 and will continue to 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 $973,191.16 and Sparks being 31.37%, or up to $444,834.72. Expenses will post to account 604090, TMWRF Construction, using CIP 12-6600-100.
Total Costs: $444,834.72
Total Costs: $444,834.72|
Fund: Sanitary Sewer Cap Proj Fund Account: 604090 Program: TMWRF Electrical System Upgrades (12-6600) Amount: $444,834.72 Budget Status: Budget Exists |
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 the City Council to approve an additional reimbursement to the City of Reno in the amount of $444,834.72 for its share of a $ 1,418,025.88 change order to a 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. TMWRF recently experienced a failure of the Main Switch Gear sources “A” and “B”. As part of the replacement of Transformers “A” and “B” upgrades were going to performed on the Switch Gear “A” and ”B”. It has been determined that the upgrades will not address all of the issues with the switch gear and total replacement is mandated and warranted at this time. Failure of this equipment leaves the facility with no power to operate the plant. The recent failure of the switch gear necessitated the rental of generators to operate the facility at a cost of over $1,200,000.00.
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 $ 3,468,097.55 and Sparks share is $ 1,585,228.33. (See Attachment 1) Staff has determined that the switch gear and related electrical equipment needs 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 electrical equipment distributes power to other electrical equipment which is an integral part of the treatment process. 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 alternatives.
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 change order in the amount of $ 444,834.72. Sparks total reimbursement to Reno for this project will be $1,585,228.33.
Attached Files:
Attachment 1.pdf Aub Constr Reno Staff Report.pdf Contract and Proposal-Auburn Constructors.pdf
