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APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF MEMBRANE FILTERS AND REPLACEMENT PARTS FROM ENVIRONMENTAL DYNAMICS INTERNATIONAL (CITYWIDE)
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070, which support an exception to the competitive bidding process.
2. Authorize a nine-year sole source agreement with Environmental Dynamics International of Columbia, MO, in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts for the Regional Wastewater Control Facility (Exhibit 1 to the Resolution).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) Wastewater Utility operates the Regional Wastewater Collection Facility (RWCF), an advanced tertiary treatment plant with a capacity of 55 million gallons per day (MGD) located next to the San Joaquin River.
MUD staff operate and maintain equipment used in wastewater treatment, including four aeration basin systems to remove biological contaminants. The aeration basin systems require routine maintenance and repair to work properly.
If approved by the City Council, this action will authorize a nine-year sole-source justification with Environmental Dynamics International for the purchase of membranes and replacement parts, in an amount not to exceed $900,000.
DISCUSSION
Background
During the construction of the RWCF Modifications Project, outdated aeration basin systems were replaced by four Environmental Dynamics International aeration basin systems.
The Environmental Dynamics International aeration basin system uses the FlexAir Aeration/Mixing System membrane filters to remove biological contaminants during wastewater treatment. Each of the four basins contains approximately 8,400 membrane filters, which have a useful lifespan of three to five years.
Annually, the MUD will complete a full replacement of all membrane filters for one basin on a rotating basis to ensure each basin continues to operate properly. Because Environmental Dynamics International membrane filters and fixture materials are proprietary, they must be replaced with authentic Environmental Dynamics International components to maintain proper system performance.
In April 2026, under the City Manager's authority, a two-month sole-source agreement for $80,000 was approved for the one-time purchase of necessary components.
Present Situation
The Environmental Dynamics International aeration basin systems are operated and maintained by MUD Maintenance staff. However, the systems require routine part replacements to continue performing as designed by the manufacturer. Currently, Environmental Dynamics International is the sole manufacturer and source of the FlexAir Aeration/Mixing System required membrane filters and replacement parts.
If approved by the City Council, this action will authorize a nine-year sole-source agreement with Environmental Dynamics International of Columbia, MO, in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts for the Regional Wastewater Control Facility.
Findings
Pursuant to the Stockton Municipal Code (SMC) section 3.68.070, the City Council may approve findings that support and justify an exception to the competitive bidding process. The following findings support and justify an exception:
1. Maintaining the aeration basin systems according to manufacturer specifications is essential to ensure they effectively remove biological contaminants during the sewer treatment process.
2. The Environmental Dynamics International aeration basins require the use of original manufacturer materials for proper operation, performance guarantees, and the lowest life-cycle cost.
3. Environmental Dynamics International is the only manufacturer and source of the required membranes and replacement parts in the United States.
4. Maintaining and repairing the Environmental Dynamics International aeration basin systems is more cost-effective than replacing them with an alternative system.
FINANCIAL SUMMARY
The estimated annual cost is $100,000. There are sufficient funds in the Wastewater Maintenance Division account 6512-000-650001-610-000-00-65-000-000 to support the cost of membranes and replacement parts for FY 2026-27.
Funding for subsequent years will continue to be budgeted in these accounts, subject to City Council approval through the annual budget process.
This action has no impact on the General Fund or any other unrestricted funds.