2021/07/07 Council Agenda Packet

City Council Agenda Item Cover Sheet Project title: Award and Authorize Change Orders 1-3 from Cummins, Inc. using Sourcewell Contract #120617- CMM/EVT#2020-018 Council Bill # interoffice use Project: Sourcewell Contract #120617-CMM/EVT#2020-018 Partner/Supplier : Cummins, Inc. Location: Water Filtration Plant Preceding action: 8/9/17 Approved Professional Services Agreement with Sazan Group 1/30/19 Adopted Resolution Declaring an Emergency regarding Water Filtration Plant temporary back up power generation equipment 12/11/19 Approved Amendment #1 with Sazan Group 12/2/20 Award and authorize purchase or Cummins generators 6/1/21 Approved Amendment #2 with Sazan Group Fund: 336 – UP3587-12-650 Agenda dates requested: July 7, 2021 Briefing Proposed action Consent 7/7/21 Action Ordinance Public hearing Yes X No Budget amendment: Yes X No PowerPoint presentation: Yes X No Attachments: Change Order Quote Department(s) involved: Procurement & Public Works Contact person: Theresa Bauccio-Teschlog Phone number: (425) 257-8901 Email: tbauccio@everettwa.gov Initialed by: sh Department head Administration Council President Fiscal summary statement: Funding for the purchase of the generators is in the approved 2020 capital expenditures and is included in the 2021 & 2022 CIP budget. Project summary statement: The Utilities Department required three new generators for the Water Filtration Plant (WFP) to support reliable uninterrupted operations during electrical outages. The new generators and electrical infrastructure include improved controls, synchronization, and operational technology, which will ensure greater reliability and redundancy of the WFP electrical system during electrical outages. The City was authorized to purchase the generators from Cummins, Inc. on 12/2/2020. Cummins begun manufacturing the three generators once the purchase order was received, while the City, Snohomish County PUD, Cummins, and the project designers, Sazan Group, finalized the technical details regarding generator controls and generator and utility synchronization. A change to the typical options found in Cummins production standards is necessary to meet Snohomish County PUD requirements for the project. These changes have resulted in a change order for each generator in the total amount of $31,300.00 plus sales tax of $2,629.20 for a total change of $33,929.20. This change will result in a new contract amount of $1,937,902.57. The generators were purchased from Cummins Inc. through the Sourcewell competitively bid contract #120617-CMM/ EVT #2020-018. Additionally, all change orders for the generator will be available for purchase through the same contract. The City has an interlocal agreement with Sourcewell that allows for purchases from its competitively awarded contracts in lieu of soliciting bids on our own. Recommendation (exact action requested of Council): Award and Authorize Change Orders 1-3 from Cummins, Inc. using Sourcewell Contract #120617-CMM/EVT#2020-018 in the amount of $33,929.32, including Washington state sales tax.