Agenda Item Wording:
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Authorize the City Manager to issue a sole source purchase order to Cummins, Inc. - Authorize the City Manager to issue a sole source purchase order to Cummins, Inc., for the commissioning and startup of the renewable power generation system at the Visalia Water Reclamation Facility, in the amount of $251,757, and the appropriation of $260,000 from Wastewater Fund.
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Agenda Date: 07/20/2026
Prepared by:
Rehana Lustyan, Senior Project Manager Rehana.Lustyan@visalia.gov (559) 713-4176 Ben Litwack, Public Works Manager Ben.Litwack@visalia.gov (559) 713-4671
Nick Bartsch, Public Works Director Nick.Bartsch@visalia.gov (559) 713-4052
Department Recommendation: Staff recommends the City Council authorize the City Manager to issue a sole source purchase order to Cummins, Inc., for the commissioning and startup of the renewable power generation system (RPGS) at the Visalia Water Reclamation Facility, in the amount of $251,757, and the appropriation of $260,000 from Wastewater Fund 431 into CIP CP0323 to fund the commissioning scope.
Summary:
The City of Visalia Water Reclamation Facility (WRF) requires final commissioning and startup of the renewable power generation system (RPGS), which has remained uncommissioned since installation due to SCR retrofit requirements and subsequent vendor scheduling limitations. Because the prior purchase order (P03454) and associated contract (C15051) are closed and cannot be amended, a new sole‑source purchase order is required to authorize the Cummins final RPGS commissioning proposal. The original RPGS procurement and installation contract from 2018-2019 included only limited OEM start‑up tasks and did not include full commissioning, emissions activation, or the multi‑vendor integration now required to bring the system online. No remaining scope or budget exists under any earlier authorization.
This commissioning work must be procured as sole source because Cummins is the only vendor authorized and technically able to perform the integrated OEM commissioning sequence. “Technically able” means Cummins is the OEM responsible for all proprietary controls, emissions‑control logic, SCR ammonia‑dosing algorithms, blending‑skid integration, protective relay coordination, and utility‑compliance startup procedures, none of which can be accessed or configured by third‑party vendors.
To complete the commissioning scope, the City will need to appropriate $260,000 from Wastewater Fund 431 into CIP CP0323, which will fund the purchase order amount and associated commissioning‑related expenses.
Background Discussion:
RPGS System Overview & Project History
The City of Visalia Water Reclamation Facility possesses a 1-megawatt renewable power generation system (RPGS) fueled by internally produced digester gas. Mechanical installation was completed in 2018; however, delays related to the Southern California Edison interconnect, along with updated regional air regulations from the Air Board required the installation of a selective catalytic reduction (SCR) emissions-control system, delaying startup. The RPGS represents a $4.01 million capital investment intended to offset electrical demand, reduce flaring, and improve environmental compliance.
Commissioning Delays & Readiness Timeline
Although the SCR system was installed in 2021, commissioning could not proceed due to digester-gas quality deficiencies and prerequisite system issues, which the City resolved between 2023 and 2026. Cummins verified the system as fully commissioned-ready on March 18, 2026. During this period, all prior commissioning attempts were suspended, and no remaining scope or budget existed under earlier authorizations.
Need for a New Sole-Source Purchase Order
The original 2018-19 procurement and installation contract included only limited OEM start‑up tasks such as initial engine start procedures, basic loading tests, preliminary emissions checks, and operator training. These activities did not constitute full system commissioning and excluded SCR activation, blending‑skid commissioning, switchgear protection tuning, emissions‑compliance testing, and multi‑vendor integration. Because these elements were never part of the original scope, no commissioning authority or funding exists within prior authorizations.
Because the generator, controls, SCR system, blending skid, and switchgear must all be commissioned together under Cummins’ OEM procedures, the remaining work cannot be performed by third‑party contractors. “Technically able” means Cummins is the OEM responsible for the generator engine, electronic controls, emissions‑control logic, SCR ammonia‑dosing algorithms, blending‑skid integration requirements, protective‑relay coordination, and utility‑compliance startup procedures. No third party has access to Cummins’ proprietary control software, parameter maps, emissions‑tuning logic, load‑management sequences, or generator‑protection configurations needed to commission the RPGS safely and in compliance with Air District and utility requirements.
For these reasons, the commissioning effort requires a new sole‑source purchase order with Cummins to complete the integrated OEM startup, tuning, emissions activation, and compliance testing needed to bring the system online.
The commissioning timeline and final pricing from Cummins were not available until after the FY 2026-27 capital budgets were submitted, so no funding was budgeted for commissioning in that fiscal cycle. An appropriation of $260,000 from Wastewater Fund 431 into CP0323 is now required to fund the commissioning scope.
Commissioning Scope & Vendor Activities
For clarity, adder04 (formerly referenced as adder04 Rev5) is now titled “Cummins final RPGS commissioning proposal” and represents the complete, modernized commissioning scope. This proposal defines all 2026 labor, travel, testing, tuning, and multi-vendor integration tasks required to bring the RPGS into compliance with current regulatory and utility requirements.
The proposal mobilizes four specialty vendors under Cummins, ACS/Preferred, PEECO, Miratech, and Cummins OEM commissioning staff, to complete First Fire, load tuning, blending-skid commissioning, SCR setup and activation, emissions tuning, utility witness testing, and final compliance documentation.
The City conducted technical and financial reconciliation of all prior commission-related purchase orders, including correcting historical pricing discrepancies, confirming 2026-only costs, and validating vendor availability. This work produced the fully reconciled, final not-to-exceed total of $251,757.00.
Catalyst Work & October 2026 Commissioning Schedule
Miratech will load the catalyst blocks, replace dosing-system components, and complete SCR pre-commissioning during the week of October 5, 2026, ensuring readiness for SCR activation.
Commissioning remains scheduled for October 5-23, 2026, and includes:
• First fire
• Load tuning
• Blending-skid commissioning
• Catalyst loading
• SCR activation
• Emissions tuning
• Utility witness testing
• Final documentation and demobilization
Approval of the new purchase order secures the vendor schedule and allows the RPGS to be commissioned and brought online.
Fiscal Impact:
The amount for the Cummins final RPGS commissioning proposal is $251,757 and will be issued as a sole‑source purchase order. Cummins is the only vendor authorized and technically able to perform the integrated OEM commissioning, controls configuration, emissions‑tuning, and SCR activation work required to place the RPGS into compliant operation. “Technically able” means that Cummins alone controls the proprietary engine ECU software, generator parameter maps, emissions‑control logic, SCR dosing algorithms, blending‑skid integration protocols, and utility‑protection settings needed to commission the system. To fund the commissioning scope, the City will appropriate $260,000 from Wastewater Fund 431 into CP0323. This appropriation will fund the purchase order and all associated commissioning‑related expenses; catalyst block loading and SCR pre‑commissioning are included within the existing Miratech cost. All prior RPGS‑related expenditures have been reconciled, and no duplicative costs are included.
Prior Council Action:
July 2015, the City Council authorized the award of a contract for the procurement of the Renewable Power Generation System (RPGS) for the Water Reclamation Facility. The action approved the purchase and delivery of the 1-megawatt digester-gas-fueled generator set, controls, and associated system components at a cost of approximately $5.8 million. This authorization represents the City’s initial capital investment in the RPGS and is reflected in the project cost ledger under the 2015 equipment purchase.
August 2016, the City Council approved amendments to the construction and engineering contracts supporting the installation of the Renewable Power Generation System as part of the Water Conservation Plant Upgrade program. These amendments authorized additional construction services, integration work, and engineering support related to the RPGS facilities and equipment. These costs are included within the historic capital expenditures and are reconciled in the project ledger.
May 20, 2019, the City Council authorized the design, engineering, and procurement activities necessary to install a Selective Catalytic Reduction (SCR) emissions control system on the RPGS generator. The authorization included engineering services for SCR design and construction support, as well as the purchase of the SCR equipment itself. The action also approved the transfer of approximately $1 million to establish a dedicated capital project for SCR implementation. These costs are fully reflected in the ledger under the 2019 SCR procurement.
May 3, 2021, the City Council approved the sole-source installation of a new SCR system on the 1-megawatt generator at a cost of approximately $1.15 million, and appropriated an additional $670,000 from the Wastewater Treatment Plant Fund. This action initiated the SCR installation work that remains part of the current commissioning scope. All expenditures associated with this authorization are already captured in the project ledger under the SCR procurement and construction history.
May 6, 2024, the City Council approved a change order in the amount of $196,619 for generator repairs and maintenance performed by Cummins Pacific, and appropriated $200,000 from the Wastewater Treatment Plant Fund. These repairs-implemented as part of the Adder02 scope-were required to restore the RPGS generator to commissioning-ready condition. These expenditures are already reconciled in the project ledger and are not duplicated in the Adder04 cost.
Alternatives:
1. Do Not Approve the Cummins Final RPGS Commissioning Proposal - Not recommended. This would delay startup, prolong flare use, and increase regulatory exposure.
2. Postpone Startup to a Later Year - Not recommended. This risks equipment degradation, vendor scheduling conflicts, and higher future costs.
Rebid Not Included: A rebid is not feasible. No third-party vendor is authorized or qualified to perform the required OEM commissioning sequence, and both the prior contract and purchase order are closed. Only Cummins can provide the integrated commissioning, controls, emissions, and tuning work required for regulatory compliance.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to issue a sole source purchase order to Cummins, Inc., for the commissioning and startup of the renewable power generation system (RPGS) at the Visalia Water Reclamation Facility, in the amount of $251,757, and the appropriation of $260,000 from Wastewater Fund 431 into CIP CP0323 to fund the commissioning scope.
Environmental Assessment Status: Commissioning involves the startup of existing, pre-permitted equipment within an operating municipal utility facility. No new environmental impacts are anticipated.
CEQA Review: This action does not constitute a project under CEQA, pursuant to PRC §21065 and CEQA Guidelines §15378. No further review is required.
Deadline for Action: 7/20/2026
Attachments:
1. Cummins final RPGS commissioning proposal
2. RPGS commissioning - pricing reconciliation summary
3. Cummins response to City clarification requests
4. RPGS commissioning schedule & vendor contact package (October 5-23, 2026)
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
