DATE: December 3, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: SERVICE AGREEMENT WITH DON PETERSON CONTRACTING INC. FOR ANNUAL REPAIR AND SERVICE OF CITY SEWER SYSTEM
RECOMMENDATION
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Staff recommends that the City Council approve a Service Agreement with Don Peterson Contracting, Inc., in the amount of $125,000 per year for FY 2025-26 and FY 2026-27, for a total contract amount not to exceed $250,000, for the repair and servicing of City sewer systems; and authorize the City Manager, or designee, to execute the agreement.
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BACKGROUND AND ANALYSIS
The Buena Vista Lift Station has been undergoing necessary phases of repair. Don Peterson Contracting, Inc. performed the repairs and upgrades of the newer part of the station and is very knowledgeable with the functions of the station. The older section serves as a backup and redundant station when repairs and maintenance need to be performed on the new one. This older section needs to be rehabilitated, and Staff is recommending Don Peterson Contracting, Inc. to perform the work.
Don Peterson Contracting, Inc. has provided on-call pump and piping services to the City’s Water Utilities Department for several years. Don Peterson Contracting, Inc. is uniquely qualified to assist the Department due to the contractor’s knowledge of the City’s sewer systems, the pumps and pipes within those systems, and Contractor has the special skill and knowledge in the field of industrial mechanical, engine and gear repair.
In 2023, the City of Huntington Beach awarded a Service Agreement to Don Peterson Contracting, Inc. for the repair and servicing of industrial mechanical, engine and gear repair (Attachment 2). That agreement had a public agency clause, and the Oceanside City Code, Section 28A.24(b) permits cooperative purchasing agreements, or “piggybacking” of contracts. Staff recommends awarding this agreement based on the Service Agreement awarded by Huntington Beach.
FISCAL IMPACT
This cost of this agreement will be charged to Sewer Collections account 800803721.5320. The term of the agreement is two years and each year will be funded by that respective year’s operational budget. Charges for Fiscal Year 2025-26 are shown in the table below. Future years funding will be included in the annual budget requests for the Water Utilities Department. Therefore, sufficient funds are available.
|
Description |
Account Number |
Amount |
Available Balance |
|
Don Peterson Contracting Service Agreement |
Sewer Collections 800803721.5320 |
$125,000 |
$138,251 |
Sewer flow and service charges in the Sewer Operating fund (721) are the funding source for this project.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on November 18, 2025.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form. Procurement of goods and services must comply with Section 28A of the Oceanside City Code.
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Prepared by: Martin Popma, Water Utilities Division Manager
Reviewed by: Frederick Mayo, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Agreement