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APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF DISC FILTER SYSTEM REPLACEMENT PARTS AND ON-CALL REPAIR SERVICES FROM VEOLIA WATER TECHNOLOGIES (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 five-year sole source agreement with Veolia Water Technologies of Cary, North Carolina, not to exceed the amount of $900,000, for materials, on-call repair, and maintenance services for the Veolia Water Technologies disc filter system (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 a Veolia Water Technologies (Veolia) disc filter system. This system removes suspended solids, sand, and organic debris from wastewater before it enters ultraviolet disinfection. Routine maintenance and repairs are necessary to ensure the disc filter system continues to treat wastewater effectively.
If approved by the City Council, this action will authorize a five-year sole source agreement with Veolia Water Technologies of Cary, North Carolina, not to exceed the amount of $900,000, for materials, on-call repair, and maintenance services for the Veolia Water Technologies disc filter system (Exhibit 1 to the Resolution).
DISCUSSION
Background
During the RWCF Modifications Project, the Veolia disc filter system was selected and installed to remove suspended solids, sand, and organic debris from wastewater. After installation, MUD Maintenance staff assumed responsibility for overseeing the system’s ongoing maintenance. However, the system is a proprietary brand and still requires Veolia parts and certified services to maintain proper operation. Veolia is the sole source for these materials and services.
Present Situation
The Veolia disc filter system requires routine maintenance, parts, and repair to work properly. The proposed five-year agreement with Veolia Water Technologies includes materials and services to ensure the system is properly maintained.
If approved by the City Council, this action will authorize a five-year agreement with Veolia Water Technologies for a not-to-exceed amount of $900,000.
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. Routine maintenance, replacement of worn components, and necessary repairs are essential to ensure the Veolia disc filter system continues to effectively remove suspended solids, sand, and organic debris from wastewater.
2. The Veolia disc filter system requires the use of original manufacturer parts and service for proper operation, performance guarantees, and the lowest life cycle cost.
3. Maintaining the Veolia disc filter system is more cost-effective than replacing it with an alternative system. Accordingly, the proposed action best serves the public interest.
4. Veolia Water Technologies is the only source for replacement parts and repair services in the United States.
FINANCIAL SUMMARY
There are sufficient funds in the Wastewater Maintenance Division accounts 6512-000-630013-610-000-00-65-000-000 and 6512-000-650001-610-000-00-65-000-000 to pay for replacement parts, repair, and maintenance services for FY 2026-27. The Division will budget funds for the remaining contract term in these same accounts, subject to City Council approval during the annual budget process.
This action has no impact on the General Fund or any other unrestricted funds.