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ADOPT A RESOLUTION TO AUTHORIZE THE PURCHASE OF MEMBRANE FILTERS FROM FILMTEC CORPORATION FOR THE DELTA WATER TREATMENT PLANT
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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 and justify an exception to the competitive bidding process.
2. Authorize a purchase order with FilmTec Corporation for membrane filters in the amount of $486,981.20.
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.
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Summary
The Municipal Utilities Department (MUD) is comprised of three enterprise funds including Water, Wastewater and Stormwater Utilities. The Water Utility provides drinking water service to the northern and southern regions of the Stockton Metropolitan Area, with the California Water Service Company and San Joaquin County serving the central region. The Delta Water Treatment Plant (DWTP) began operation in May 2012, providing up to 30 million gallons per day of treated surface water from the San Joaquin 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. Pursuant to its maintenance program, MUD staff have determined that the required 408 filter units require replacement to maintain water production operations 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 is a sole source vendor for the required filter units.
If approved by the City Council, this action will authorize a purchase order with FilmTec Corporation for 408 membrane filter units in the amount of $486,981.20.
DISCUSSION
Background
The MUD operates and maintains the DWTP. When the DWTP was designed and constructed, advanced membrane ultra-filtration was installed 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. The contracts issued for the supply of Memcor membranes were transferred with the sale of the Memcor product line to FilmTec Corporation, including all bonds and insurance certificates. The Memcor business line is fully owned by FilmTec Corporation.
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, MUD staff have developed a maintenance 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 operated into the future.
The use of membrane filter technology is required to be approved by the SWRCB. FilmTec Corporation is currently the only approved manufacturer of membrane filters for water treatment by the SWRCB. In addition, this manufacturer has the correct type and size membranes designed for installation at the DWTP.
If approved by the City Council, this action will authorize a purchase order for 408 membrane filter units from FilmTec Corporation to service two membrane filter skids. The cost of the filter units is $486,981.20 (Exhibit 1 to the Resolution). Upon purchase and delivery, membrane installation will be completed by the Municipal Utilities Department (MUD) staff to ensure the continued production of high-quality drinking water for 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. Maintaining the drinking water production system with the current type of membranes is more cost-effective than replacing them with a different filtration system due to the supporting infrastructure, piping, structures, connections, electrical, tooling, and instrumentation in place for the existing membrane filtration system. Therefore, using the current type of membranes is in the best interest of the public.
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 the FilmTec Corporation filters is $486,981.20. The FY 2024-25 Annual Budget includes appropriation to cover the purchase and delivery of membrane filters in the Water Utility Fund, Buildings and Structures account.
There is no impact to the General Fund or any other unrestricted fund from this action.