DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AUTHORIZE ANNUAL WATER UTILITIES PURCHASES IN AMOUNTS OVER $100,000 FOR EQUIPMENT, SUPPLIES, MATERIALS, AND SERVICES
RECOMMENDATION
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Staff recommends that the City Council:
a. Approve annual purchase orders, agreements, and amendments with various vendors for the purchase of equipment, supplies, materials and services for the Water Utilities Department, in amounts over $100,000, for FY 2025-26 for a total of $7,329,673;
b. Authorize the Financial Services Director, or designee, to execute the purchase orders; and
c. Authorize the City Manager, or designee, to execute the agreements and amendments upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Each year, as part of the budget process, staff from the Water Utilities Department determine the quantity of supplies and materials, professional services and other special equipment that will be needed for water and sewer system maintenance and operation during the next fiscal year. Products and services are acquired through various means, including Requests for Proposals (RFPs), Cooperative Purchasing Agreements, Sole Source determinations, and Informal Bidding Procedures, as outlined in Administrative Directive AD-21 “Procurement of Goods and Services”.
Staff is requesting approval of open purchase orders based on the estimate of annual purchases of goods and services and inventory replenishment for the upcoming fiscal year. The requested vendors, listed on the following page, provide reliable service and a delivery schedule that is compatible with Department requirements. Due to the number of purchases made throughout the year, open purchase orders will allow the flexibility to more efficiently maintain the high quality of service the Department provides. Staff is requesting approval for the purchase orders and associated Professional Services Agreement Amendments and Public Works Agreement Amendments as outlined in Attachment 2.
Services included in the following list will be performed as part of new or amended Professional Services Agreements. No work will be performed until a properly executed agreement or amendment is signed by both the Contractor and the City.
• Ayala Engineering (pressure grouting and coating)
• Babcock Laboratories (NPDES regulatory testing),
• Brax Company (well rehabilitation; pump and motor repair)
• Carollo Engineering (financial advisory)
• Cintas (uniform rental)
• Clinical Labs (Pure Water and Title 22 analyses)
• Doherty Concrete (as needed concrete services)
• Ferguson Waterworks (AMI Software as a Service)
• Golden State Industrial Coatings, Inc. (facility painting services)
• Hawthorne Cat (generator maintenance & rental),
• Marine Taxonomics (NPDES regulatory testing)
• Rancho Del Oro Landscaping (landscaping services),
• Retrofit Service Co (HVAC service),
• Sloan Electric (motor repair and rewinding)
• Synagro (sludge hauling)
Staff is requesting that Council approve vendors (Babcock, CS-amsco, Ferguson Waterworks, Harrington Industrial Plastics, DXP and Rockwell Solutions) as “sole source” (described in Attachment 2) per City Code Chapter 28A, as vendors listed are the only providers of the product or service and not available from any other source.
FISCAL IMPACT
The net impact of encumbering these funds for purchase of goods and services for FY 2025-26 is $7,329,673. The Department has programmed sufficient funds to cover these purchases in the adopted budget.
Water sales and water meter fees in the Water Operating Fund (711) and Water Fixed Asset Replacement Fund (712), sewer flow and service fees in the Sewer Operating Fund (721) and Sewer Fixed Asset Replacement Fund (722), and Solid Waste Service Fees (731) are the funding sources for these purchases.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on May 20, 2025.
CITY ATTORNEY’S ANALYSIS
Purchases must comply with bid requirements set forth in Chapter 28A of the City Code. Professional Service Agreements and Public Works Agreements must be reviewed by the City Attorney and approved as to form.
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Prepared By: Rebecca Bennett, Administrative Analyst
Reviewed By: Michael Gossman, Assistant City Manager
Submitted By: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Over $100K POs FY25-26