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Sparks approves $11.77M early-procurement payment for dewatering building; Reno to reimburse $8.08M
Summary
Council approved a reimbursement agreement (AC6208) to pay approximately $11,772,340 for early procurement on the Truckee Meadows Water Reclamation dewatering project; Reno will reimburse about $8,079,357 and a prior $3 million federal grant was applied toward the early procurement package, staff said.
Sparks City Council unanimously approved a reimbursement agreement (AC6208) that requires Sparks to pay approximately $11,772,340 to support an early-procurement package for a dewatering building at the Truckee Meadows Water Reclamation Facility. Reno will reimburse about $8,079,357 by crediting Sparks' share during the construction guaranteed maximum price (GMP) phase.
Casey Menser, treatment plant director, explained the procurement need: "The dewatering building is currently approaching the 90% design stage... it has been apparent that it would be tremendously beneficial for the schedule as well as the overall costs to begin ordering some of this equipment that has an exceptionally long lead time." He noted that electrical switchgear and similar items could take 50–70 weeks to fabricate and deliver, motivating early procurement.
Menser also said the city previously secured a $3,000,000 federal grant that can be applied toward early procurement, reducing Sparks' up-front exposure. Staff emphasized the agreement does not change Sparks' ownership share (31.37%) of the total project and that Sparks is not financing any portion of Reno's loan or incurring interest on that loan. Council voted to approve the agreement unanimously.
The measure alters cash flow—Sparks pays early procurement costs, then receives credits against the construction GMP—so staff described it as preserving the cost allocation while allowing Reno to maximize loan use for construction costs. Councilors asked clarifying questions and then approved the motion.
