DATE: November 18, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AUTHORIZE ADJUSTMENTS TO 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 approve adjustments to 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 2026-27 for a total not-to-exceed amount of $363,275; authorize the Financial Services Director, or designee, to execute the purchase order changes; and authorize the City Manager, or designee, to execute the amendments upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On June 17, 2026, Council approved Annual Purchase Orders and Agreements/Amendments for the Water Utilities Department. Due to unanticipated expenditures, staff determined that adjustments to Purchase Order amounts are necessary to meet the current operational needs of the Department.
Staff is requesting approval of amended purchase orders based on the updated estimate of annual purchases of goods and services and inventory replenishment for the remainder of the 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, staff believe that open purchase orders will allow 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 A. Available account budget balances for requested annual purchase order adjustments are in Attachment B.
Services provided by the vendors below will be performed under amended Professional Services or Public Works Agreements.
• Ayala Engineering (pressure grouting and coating)
• Babcock Laboratories (NPDES regulatory testing),
• Clinical Labs (Pure Water and Title 22 analyses)
• Retrofit Service Co (HVAC service),
• Sloan Electric (motor repair and rewinding)
FISCAL IMPACT
The net impact of encumbering these funds for purchase of goods and services for FY 2026-27 is $363,275. The Department has programmed sufficient funds to cover these purchases in the 2026-27 budget.
|
Vendor |
Original PO Amount |
Requested Amount |
Revised Total |
Account |
Available Balance |
|
Ayala Engineering |
$ 69,225 |
$ 146,075 |
$ 215,300 |
See Attachment B |
See Attachment B |
|
Alfa Laval |
- |
75,000 |
75,000 |
|
|
|
Babcock Labs |
57,000 |
2,850 |
59,850 |
|
|
|
Clinical Labs |
195,000 |
9,750 |
204,750 |
|
|
|
Ferguson Waterworks |
925,000 |
47,500 |
972,500 |
|
|
|
Hach Company |
369,100 |
7,000 |
376,100 |
|
|
|
Harrington Industrial Plastics |
134,200 |
9,600 |
143,800 |
|
|
|
McMaster Carr |
91,700 |
7,000 |
98,700 |
|
|
|
Retrofit Service Co |
97,000 |
10,000 |
107,000 |
|
|
|
Sloan Electric |
85,000 |
35,000 |
120,000 |
|
|
|
TS Industrial Supply |
340,000 |
13,500 |
353,500 |
|
|
|
Total |
$ 2,363,225 |
$ 363,275 |
$ 2,726,500 |
|
$ 1,549,021 |
Water sales and water meter fees in the Water Operating Fund (711) and Water Fixed Asset Replacement Fund (712), developer funds in the Water Expansion Fund (715), 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 will review staff’s recommendation at its regularly scheduled meeting on November 17, 2026.
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: John McKelvey, Principal Management Analyst
APPROVED BY: Frederick Mayo, Water Utilities Director
SUBMITTED BY: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Attachment A-Proposed Changes to Purchase Orders
2. Attachment B-Business Units for Proposed Changes
3. Amendment 3 with Ayala Engineering
4. Amendment 5 with Babcock Labs
5. Amendment 3 with Clinical Labs
6. Amendment 4 with Retrofit Service Co.
7. Amendment 3 with Sloan Electric