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APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF CENTRIFUGE REPLACEMENT PARTS AND MAINTENANCE SERVICES FROM GEA MECHANICAL EQUIPMENT U.S., INC. (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 GEA Mechanical Equipment U.S., Inc of Janesville, Wisconsin, in an amount not-to-exceed $500,000, for training, parts, repair, and maintenance services.
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 Westfalia Separator Centrifuge (Centrifuge) system to dewater collected sludge at the RWCF. The Centrifuge system requires genuine repair parts and services. GEA Mechanical Equipment U.S., Inc (GEA) is the sole authorized provider of repair parts, service, and maintenance for the Centrifuge system.
If approved by the City Council, this action will authorize a five-year sole source agreement with GEA Mechanical Equipment U.S., Inc of Janesville, Wisconsin, for Centrifuge training, replacement parts, repair, and maintenance services, in an amount not to exceed $500,000 (Exhibit 1 to the Resolution).
DISCUSSION
Background
The Centrifuge system uses centrifugal force to separate solids from wastewater. GEA is a proprietary brand that requires genuine GEA parts and certified services to maintain proper operation.
The Westfalia Separator Centrifuge system is routinely monitored and maintained by MUD Maintenance staff and requires parts and repair to continue performing as designed by the manufacturer. Currently, GEA is the sole available source for the Centrifuge system parts and certified service.
Present Situation
GEA Mechanical Equipment U.S., Inc. provided the City with a total cost of $500,000 for the five-year maintenance and service plan. Staff recommend approval of a not-to-exceed amount of $500,000. The proposed contract includes the materials and services necessary to maintain the system in accordance with the manufacturer’s specifications.
The proposed five-year agreement will provide GEA parts and certified service for the Centrifuge system from October 2026 through July 2031.
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 Westfalia Separator Centrifuge system continues to effectively dewater sludge during wastewater treatment.
2. The Westfalia Separator Centrifuge system requires the use of original manufacturer parts and service for proper operation, performance guarantees, and the lowest life cycle cost.
3. Maintaining the Westfalia Separator Centrifuge system is more cost-effective than replacing it with an alternative system. Accordingly, the proposed contract serves the best public interest.
4. GEA Mechanical Equipment U.S. Inc. is the only source for Westfalia Separator Centrifuge system 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 6512-000-650001-610-000-00-65-000-00 to pay for 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.