DATE: November 4, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Parks and Recreation Department
TITLE: AWARD OF BID AND INCREASE TO PURCHASE ORDER WITH HASA, INC. FOR AQUATIC TREATMENT CHEMICALS
RECOMMENDATION
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Staff recommends that the City Council award the bid for aquatic treatment chemicals to HASA, Inc.; approve an increase to the existing purchase order with HASA, Inc. in the amount of $61,000, from $100,000 to a total not-to-exceed amount of $161,000 for Fiscal Year 2026-27; appropriate $41,000 from the General Fund Unassigned Fund Balance; authorize up to four additional one-year renewal terms to be administratively approved upon mutual agreement of both parties and approval by the City, with annual price adjustments not to exceed five percent; and authorize the Financial Services Director, or designee, to execute the purchase order and subsequent renewals.
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BACKGROUND AND ANALYSIS
The Parks and Recreation Department operates three public aquatic facilities: William Wagner Aquatic Center, Brooks Street Swim Center, and Marshall Street Swim Center. Aquatic treatment chemicals are essential to maintain proper water quality, comply with County health regulations, and support safe public pool operations.
During Fiscal Year 2025-26, chemical usage exceeded original projections due to expanded programming and an increase in the number of community members served. Higher usage, along with a 5% increase in chemical prices, resulted in higher than anticipated expenditures. Additional chemical purchases were necessary to maintain water quality standards, ensure regulatory compliance, and support uninterrupted operations at the City’s aquatic facilities.
For Fiscal Year 2026-27, an interim purchase order with HASA, Inc. was administratively approved in the amount of $100,000 to ensure uninterrupted chemical supply while the City completed a competitive solicitation for aquatic treatment chemicals.
On July 24, 2026, staff advertised an Invitation for Bids (IFB) for aquatic treatment chemicals. Two bids were received. Following evaluation, HASA, Inc. was identified as the lowest responsive and responsible bidder.
Based on historical chemical usage, anticipated operational needs, and bid pricing, staff recommend increasing the existing purchase order with HASA, Inc. by $61,000, from $100,000 to a total not-to-exceed amount of $161,000 for FY 2026-27. The expenditure forecast used to develop this amount includes a 5% allowance for anticipated chemical price increases.
The IFB provides for an initial one-year term with the option to renew for up to four additional one-year terms upon mutual agreement of both parties and approval by the City. Prices will remain firm during the initial term. For each subsequent renewal term, HASA, Inc. may request a price adjustment not to exceed five percent over the pricing in effect during the immediately preceding contract year. Any requested adjustment must be submitted in writing with supporting documentation and is subject to City approval. Renewal terms are subject to available budget appropriations.
This purchasing structure supports a reliable supply of aquatic treatment chemicals, provides pricing stability, and avoids the need to conduct a new solicitation each year.
FISCAL IMPACT
The requested purchase order increase of $61,000 will increase the existing HASA, Inc. purchase order from $100,000 to $161,000 for FY 2026-27. Available funding of $34,559 in the William Wagner Aquatic Center account will partially support its proposed $37,000 increase. Additional appropriations totaling $41,000 from the General Fund Unassigned Fund Balance (101.3100.0001) are requested, consisting of $32,000 for Brooks Street Swim Center, $7,000 for Marshall Street Swim Center, and $2,000 for William Wagner Aquatic Center.
|
Account Number |
Available Balance |
FY2026-27 PO Increase |
Requested Appropriation |
|
Brooks St Pool 935941101.5355.0002 |
($14,669) |
$17,000 |
$32,000 |
|
Marshall St Swim Center 935950101.5355.0002 |
530 |
7,000 |
7,000 |
|
William Wagner Aquatic Center 935970101.5355.0002 |
34,559 |
37,000 |
2,000 |
|
Total |
$20,420 |
$61,000 |
$41,000 |
|
Unassigned Fund Balance 101.3100.0001 |
$5.93 M |
|
$41,000 |
COMMISSION OR COMMITTEE REPORT
No commission or committee action is required.
CITY ATTORNEY’S ANALYSIS
Purchases must comply with Chapter 28A of the City Code.
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Prepared by: Elizabeth Kovar, Parks & Rec Division Manager
Reviewed by: Manuel Gonzalez, Parks & Rec Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Bid Tabulation Sheet