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I7. Res. 6205, 2024 emergency purchaseCllYOF City of Kalispell ALISPELL Post Office Box 1997 -Kalispell, Montana 59903-1997 Telephone (406) 758-7700 Fax - (406) 758-7758 MEMORANDUM To: Honorable Mayor Johnson and City Council From: Doug Russell, City Manager Re: Resolution Authorizing the Immediate Acquisition of Equipment for Short-term treatment of PFAS at the Grandview Well Source Meeting Date: June 17, 2024 BACKGROUND: At the work session on June 10, staff presented the Council with an update on the EPA PFAS regulations that went into effect in April of this year. The rule provides a 5- year window for public water systems to come into compliance. As part of the work session, Council was updated on the initial engineering that has taken place to identify alternative options to come into compliance, which may include the relocation/implementation of new wells, blending of the water supply, or treatment at the well source. Additionally, staff presented funding solutions that may mitigate the impact on the local users of the system. Staff additionally discussed short-term efforts to mitigate the influence of the system from the Grandview Wells, which is the only well source that had detections above the limits set for compliance in the last round of tests. Currently, use of that well source is being minimized. However, with water demand expected to emerge with warmer summer temperatures, minimizing its use presents additional problems for the system and keeping up with demand. As such, temporary treatment options were presented for consideration for the Grandview Well source, including an Ion Exchange Unit that could be used during these peak months until the long-term solution is implemented. It was identified that grant funds from the State of Montana could likely be applied for this acquisition, estimated between approximately $450,000 to $800,000. Costs are dependent on the available unit, Kalispell's water quality, and duration of use. As part of this discussion, it was identified that the short period before the peak demand in summer emerges would require an adjustment to the purchasing standards at the City, including the time period it would take to do a formalized bid process. State Law provides for a City to bypass these requirements if approved by three -fourths of the members present in order to meet the needs to best serve the public interest. 7-5-4303. Exemptions from bidding or advertising requirements for certain contracts. (1) The provisions of 7-5-4302 as to advertisement for bids shall not apply upon the happening of any emergency caused by fire, flood, explosion, storm, earthquake, not, insurrection, or other similar emergency, but in such case the council may proceed in any manner which, in the judgment of three -fourths of the members of the council present at the meeting, duly recorded in the minutes of the proceedings of the council by aye and nay vote, will best meet the emergency and serve the public interest_ Such emergency shall be declared and recorded at length in the minutes of the proceedings of the council at the time the vote thereon is taken and recorded. Additionally, our procurement policy references the requirements of a three -fourths vote to immediately acquire goods and services that meet a health condition. Emergency: A Department may find an Emergency situation which requires immediate acquisition of the goods and services. An Emergency situation includes situations that are a threat to public safety, health or welfare, or that requires immediate acquisition or repair to preserve or prevent damage to such things as public property, City operations and business, machinery or equipment. Such Emergency must be declared by a three fourths vote of the City Council. The resolution before Council is to identify the current compressed time frame to address the public health concern, and the need to exempt the purchase and installation of short-term treatment equipment from the bidding and advertising requirements. FISCAL IMPACT: The estimated cost of acquisition of the short-term treatment equipment is approximately $450,000 - $800,000. In addition to unit costs, there will be additional expenses for connecting the unit to the internal piping of the water facility. It is anticipated the treatment unit and connection costs will be covered by grant funds. Any expense not covered by grant funds would be borne by the Water Fund. RECOMMENDATION: It is recommended that the City Council approve Resolution 6205, Acknowledging the short time frame to address the public health concern with short-term treatment of the Grandview Well source and exempting the acquisition and implementation of the treatment equipment from bidding and advertising requirements. ATTACHMENT: Resolution 6205 RESOLUTION NO. 6205 A RESOLUTION DECLARING AN EMERGENCY AND AUTHORIZING THE PUBLIC WORKS DEPARTMENT TO PROCEED, WITHOUT ADVERTISEMENT OR BIDDING, WITH THE IMMEDIATE ACQUISITION OF EQUIPMENT FOR SHORT-TERM TREATMENT OF PFAS AT THE GRANDVIEW WELL SOURCE. WHEREAS, on June 10, 2024, Public Works staff presented council with an update on the EPA PFAS regulations that went into effect in April of this year, which provides a 5-year window for public water systems to come into compliance; and WHEREAS, most recent testing of Kalispell's Grandview Well sources revealed PFAS at a level above the limits set for compliance by the EPA. Kalispell's other well sources did not have levels above the limits set. WHEREAS, during non -peak water usage months, Kalispell's Public Works Department has minimized the use of the Grandview Wells. However, during peak water demand, use of the Grandview Wells can no longer be minimized. WHEREAS, short-term efforts to mitigate the influence of the system from the Grandview Wells included a treatment installation that could be used until a long-term solution is implemented; and WHEREAS, grant funds from the State of Montana could likely be applied for this acquisition, estimated to be between $450,000 and $800,000, which costs would be dependent on the available unit, facility piping, Kalispell's water quality, and duration of use; and WHEREAS, the estimated cost as determined by the Public Works Department is over $80,000, which typically would require advertisement and competitive bidding under Section 7-5-4302, MCA; and WHEREAS, Section 7-5-4303, MCA authorizes a City to proceed without observing Section 7-5-4302, MCA when an emergency exists and three -fourths of Council present at a meeting authorize a procedure which best meets the emergency and serves the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. That the presence of PFAS at a level above the limits set by the EPA in the Grandview Well sources during peak water demand months when that water source cannot be minimized constitutes an emergency under Section 7-5- 4303, MCA, thereby abrogating the City's responsibility to advertise and bid acquisition of equipment for short-term treatment. SECTION 2. That the Public Works Department, under the direction of the City Manager, is authorized and directed to proceed and solicit proposals from qualified contractors to acquire and install water treatment components in order to treat the Grandview Well Sources that could be used until a long-term solution is implemented. SECTION 3. That grant funds necessary to acquire short-term treatment applications be requested from the State of Montana. PASSED AND APPROVED BY THREE-QUARTERS OF THE MEMBERS OF THE CITY COUNCIL PRESENT AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, ON THE 17TH DAY OF JUNE, 2024. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk