Agenda Item Wording:
title
Change Order Approval -Approve Change Order No. 1 in the amount of $196,619 to Cummins Pacific and appropriate $200,000 for repairs and maintenance from the WWTP Fund.
body
Deadline for Action: None
Submitting Department: Administration
Contact Name and Phone Number:
Mike Porter, Civil Engineer, 713-4412, mike.porter@visalia.city <mailto:mike.porter@visalia.city>
Ben Litwack, WRF Superintendent, 713-4671, ben.litwack@visalia.city <mailto:ben.litwack@visalia.city>
Jason Huckleberry, Engineering & Building Department Director, 713-4495, jason.huckleberry@visalia.city <mailto:jason.huckleberry@visalia.city>
Nick Bartsch, Public Works Director, 713-4052, nick.bartsch@visalia.city <mailto:nick.bartsch@visalia.city>
Department Recommendation:
Approve Change Order No. 1 in the amount of $196,619 to Cummins Pacific, LLC and appropriate $200,000 for repairs and maintenance to the existing RPGS System from the WWTP Fund 431 (Project Number 4330-72000/CP0323-999).
Summary:
The existing Renewable Power Generation System (RPGS) needs repairs and maintenance before it can be brought into service. Staff obtained a proposal from Cummins Pacific to provide repairs and maintenance on the RPGS prior to it being scheduled for pre-commissioning inspections and start-up. The system was installed in 2018 and has been non-operational since that time. During that time, little to no maintenance has been performed on the system. Inspections completed by Cummins and their team of technicians revealed that many parts suffered from corrosion and visible wear from exposure to the elements and non-use. Additionally, many of the sensitive electronic and computer components need to be replaced and/or updated. The system also uses multiple batteries and filters that need to be changed. To put it simply, the entire system needs a complete overhaul and tune-up. The RPGS was originally purchased from Cummins Pacific. Cummins, and their associated specialized service technicians are the only qualified vendors to render services on this equipment. The proposed repairs and maintenance to be provided on the system are anticipated to take approximately 2 weeks and will require multiple technicians from Cummins Pacific and their sub-consultant teams. See attached Cummins Proposal for a detailed list of parts and services to be provided.
Background Discussion:
The 2018 Water Reclamation Facility (WRF) upgrades included the installation of a Renewable Power Generation System (RPGS) to utilize biogas to generate power. The plan for the RPGS was initially approved by the San Joaquin Valley Air Pollution Control District (SJVAPCD, or APCD). Unfortunately, the RPGS plan was later rejected by the US EPA, and the addition of a Selective Catalytic Reduction (SCR) System was required. The project is currently operating under an Authority to Construct permit issued by the APCD. The SCR installation must be approved by the APCD as part of the permit requirements, prior to start-up of the RPGS.
The Visalia Water Reclamation Facility (WRF) produces renewable biogas as a byproduct of the wastewater treatment process. To beneficially utilize this biogas, the recent Water Reclamation Facility upgrade project included the installation of a RPGS which utilizes the biogas to power a 1 MW electricity generator. The power produced would be utilized on-site to reduce the electricity imported from Southern California Edison’s (SCE) grid.
While the RPGS was designed and installed as part of the larger upgrade project, challenges early in the project, along with permitting issues, and staff vacancies, caused a delay with the commissioning of the RPGS system. Since the delay has extended well beyond completion of the project’s other components, it was decided to close out the larger upgrade capital project and address the RPGS separately. This approach was approved by the Council in August 2018.
Once operational, the RPGS is expected to generate enough power to offset approximately $500,000 per year of net purchased power, resulting in a system payback period of approximately 11 years, which is well below its 20-year expected service lifetime.
Fiscal Impact:
Cummins’ Change Order No. 1 in the amount of $196,619.00 was approved by the Change Order Committee at the April 24, 2024, Change Order Committee Meeting.
The current budget summary is presented in the following Table:
|
Budget Summary: CIP 4330-72000/CP0323-999 WWTP Fund 431 |
|
Cummins Pacific (Current PO Amount) |
$ 64,800.00 |
|
Cummins Pacific (Change Order No. 1) |
$ 196,619.00 |
|
Construction Management (est. 5%) |
$ 13,250.00 |
|
Contingency (5%) |
$ 13,250.00 |
|
Total Project Cost Estimate |
$ 287,919.00 |
|
Current CIP Budget |
$ 100,000.00 |
|
Current Budget Shortfall |
$ (187,919.00) |
|
Appropriation Request |
$ 200,000.00 |
Any funds remaining at the end of project completion will be returned back to the Wastewater Treatment Plant Fund (431).
Prior Council Action:
May 3, 2021: Council authorized the City Manager to approve a sole source contract with W.M. Lyles for the installation of a new Selective Catalytic Reduction (SCR) System on the existing Cummins engine-generator.
August 2018: Approval of project Notice of Completion, including a discussion of the RPGS delays and planned course of action.
May 20, 2019: Approval of Cummins equipment contract ($196,505) and Parsons design contract ($199,400)
Alternatives: Do not complete improvements to the RPGS. This is not recommended because the City would not be able to utilize the system and will not benefit from the projected savings generated by the power generation system.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve Change Order No. 1 in the amount of $196,619 and appropriate an additional $200,000 from the WWTP Fund 431.
end
Attachments:
Vicinity Map
Cummins Proposal