REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: CASSIE L. SCHOLZ, PE, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SOHEIL MORTEZAEIFAR, Engineer II Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Wellhead Treatment System at Pump Station 347 (Council District 7): 1. ***RESOLUTION - Adopt a resolution authorizing an exception to formal bidding procedures and award of a sole source purchase agreement with ATEC Water Systems, LLC., in an amount not to exceed $191,016.62 (Subject to Mayor's Veto); 2. Award a sole source purchase agreement to ATEC Water Systems, LLC., in the amount of $191,016.62, to provide and deliver the ATEC Water Filtration System to Pump Station 347. ..Body RECOMMENDATION Staff recommends the City Council adopt the resolution and award a sole source purchase agreement to ATEC Water Systems, LLC. (ATEC), in the amount of $191,016.62 to provide and deliver the ATEC Water Filtration System to Pump Station (PS) 347, and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The concentrations of manganese in the groundwater pumped by PS 347 exceeded the secondary Maximum Contaminant Level (sMCL) for drinking water and a treatment system is required to return the municipal water well to service. The ATEC Water Filtration System was selected by the Department of Public Utilities (DPU) due to its successful and reliable performance at five other municipal well sites. Continuing to utilizing the ATEC Water Filtration System minimizes required training and standardizes spare parts across multiple well sites. BACKGROUND PS 347, located at 2220 N. Armstrong Avenue, was constructed in October 2006 to serve nearby residential, commercial, and industrial areas. The well has not been regularly operated since November 2016, however, because the groundwater manganese concentration began to exceed the sMCL for drinking water of 50 �g/L. While the manganese concentrations are not a risk to public health, the exceedance of a sMCL indicates that the water may impart an undesirable taste for nearby consumers. Consequently, DPU's Water Division removed the well from service. Bringing PS 347 back into service is necessary to reliably provide drinking water to the area at a consistent level of service, and provide fire suppression without interruption or reducing service. The PS 347 project's professional design services contract was previously advertised and awarded to Michael K. Nunley and Associates Inc. (MKN). The design phase is currently 90% complete, and the sizing and specifications of the ATEC Water Filtration System have been finalized. DPU desires to procure the ATEC Water Filtration System in advance of construction contract award as this system is a long lead-time order item. The advanced order and procurement of the treatment system facilitates smoother project execution and efficient resource utilization. ATEC is the sole provider of the ATEC Water Filtration System. The DPU staff contacted ATEC to obtain a quote for a filtration package, including eight, 36-inch diameter vessels. A price quote of $191,016.62 was provided to the City on Jan 13, 2023, and will still be honored by ATEC. The City Attorney's office has reviewed the authorizing resolution and proposed purchase service agreement and approved as to form. ENVIRONMENTAL FINDINGS The procurement and delivery of the ATEC Water Filtration System is not a project as defined by Section 15378 of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because this is a sole source purchase. FISCAL IMPACT There is no impact to the General Fund. Funds for this project are included in the Water Division Enterprise Fund 4000-4001. This project is located within Council District 7. Attachments: Resolution ATEC Water Systems, LLC., Product Purchase Agreement Vicinity Map