title
APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF MEMBRANE FILTERS FROM FILMTEC CORPORATION FOR THE DELTA WATER TREATMENT PLANT
recommended action
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 and justify an exception to the competitive bidding process.
2. Authorize the purchase of membrane filters from FilmTec Corporation for $549,575.66.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The Municipal Utilities Department (MUD) includes three utilities supported by user fees and regulated for the protection of public health and the environment. The Water Utility provides drinking water service to the northern and southern regions of the Stockton Metropolitan Area, while the California Water Service Company and San Joaquin County serve the central region. The Delta Water Treatment Plant (DWTP), which began operation in May 2012, supplies up to 30 million gallons per day or nearly 1 billion gallons per year of water supplied from the San Joaquin River Delta and Mokelumne River.
The DWTP uses advanced membrane ultra-filtration to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations. Under its maintenance program, MUD maintenance staff replace these membrane filters on a regular schedule to maintain adequate water filtration at the treatment plant.
Currently, FilmTec Corporation (formerly Evoqua Water Technologies, Inc.) is the only manufacturer of membrane filter units approved by the State Water Resources Control Board (SWRCB) that are the correct size for the membrane filtration system used at the DWTP. Accordingly, FilmTec Corporation serves as the sole-source vendor for the required filter units.
If approved by the City Council, this action will authorize the purchase of 408 membrane filter units from FilmTec Corporation in the amount of $549,575.66.
DISCUSSION
Background
When the DWTP was designed and constructed, the project team installed advanced membrane ultra-filtration in the treatment process to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations. The membrane filtration system uses filter units that have a finite service life of five to ten years and require replacement under a regular maintenance program. If the filters are not replaced under the maintenance program, drinking water quality may fail to meet State and Federal standards, and the DWTP may need to reduce production.
On December 31, 2019, the Memcor membrane product line was purchased from Evoqua Water Technologies LLC by DuPont de Nemours Inc. (DuPont) and is now operating under the DuPont FilmTec Corporation business unit. Contracts for the supply of Memcor membranes were transferred to FilmTec Corporation with the sale of the Memcor product line, including all associated bonds and insurance certificates. FilmTec Corporation now fully owns the Memcor business line.
Present Situation
Membrane filter units have a finite service life of five to ten years and must be replaced to ensure the filtration system continues to perform as designed by the manufacturer. To prevent filters from exceeding their service life and to maintain the filtration system’s performance, MUD maintenance staff have developed a program to replace two membrane skids each year. Each membrane filter skid contains 204 filter units, totaling 408 filter units for two skids. This ongoing maintenance program ensures the membrane filtration system remains properly maintained and operable into the future.
The use of membrane filter technology requires approval from the SWRCB. FilmTec Corporation is currently the only SWRCB-approved manufacturer of membrane filter units that are the correct type and size for installation at DWTP.
If approved by the City Council, this action will authorize the purchase of 408 membrane filter units from FilmTec Corporation to service two membrane filter skids. The cost of the filter units is $549,575.66 (Exhibit 1 to the Resolution). After purchase and delivery, MUD maintenance staff will install the new filters to keep high-quality drinking water flowing to Stockton residents.
Findings
Pursuant to the Stockton Municipal Code (SMC) section 3.68.070, the City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support and justify an exception:
1. FilmTec Corporation is the only vendor that sells the membrane filter units that meet National Sanitation Foundation standards approved by the SWRCB and that are the correct type and size for the DWTP membrane filter skid.
2. Membrane filter replacement is a standard maintenance practice required to preserve the quality of the filtration treatment process and the production of high-quality drinking water. If the filter units are not replaced before the end of service life, the City's water production may fail to meet State and Federal standards.
3. Because the existing infrastructure and equipment were built for the current membranes, continuing to use this membrane type is far more cost-effective than switching to a new filtration system. Therefore, maintaining the current membranes is in the public’s best interest.
4. The membrane filtration system warranty covers material costs for repairs due to defective membrane filters. The use of any membrane filter not supplied by FilmTec Corporation will void the existing warranty.
FINANCIAL SUMMARY
The cost of 408 membrane filter units from FilmTec Corporation filters is $549,575.66. The FY 2025-26 Annual Budget includes appropriation to cover the purchase and delivery of membrane filters in the Water Utility Fund, Buildings and Structures account 6513-511-800001-600-000-00-65-000-000.
This action has no impact on the General Fund or any other unrestricted funds.