DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: FY 2025-26 CHEMICAL PURCHASES FROM VARIOUS SUPPLIERS FOR THE WATER UTILITIES DEPARTMENT
RECOMMENDATION
title
Staff recommends that the City Council approve the purchase of chemicals in amounts over $100,000 from various Water Utilities Department funds; authorize the Financial Services Director, or designee, to shift funds between the various suppliers for FY 2025-26, without returning to Council, so long as the budget of $4,184,248 is not exceeded; and authorize the Financial Services Director, or designee, to authorize the expenditures.
body
BACKGROUND AND ANALYSIS
Chemicals are an integral part of the water and wastewater treatment processes. Per Administrative Directive 21: Procurement of Goods and Services, chemicals are treated as commodities and as such, do not require a Purchase Order. However, most of the chemicals purchased by the Department are in amounts more than $100,000; therefore, City Council approval is required. The proposed vendors and expenditures are outlined in Attachment 2, which is attached to this report.
Each fiscal year, as part of the budget process, staff from the Water Utilities Department determine the quantity of water and wastewater treatment chemicals required for treatment operations. On April 9, 2025, staff issued a Request for Proposals for the full list of chemicals in an attempt to gain new multi-year pricing for water and wastewater treatment chemicals. The chemical market is volatile at the moment, and suppliers have been announcing price increases on a regular basis Staff issued the new RFP with the goal of gaining some pricing stability and certainty for the chemicals required for water and wastewater treatment.
Proposals were reviewed and a vendor or supplier was selected on the criteria of the best product provided for the purpose needed at the lowest price for FY 2025-26. Due to fluctuations in the chemical supply market, not all vendors provided multi-year pricing. Pricing was provided for multiple years and quotes provided from approved vendors are to implement efficiencies and to minimize the need to rebid annually.
It should be noted that these amounts are only estimates, based on historical use, current processes, and known pricing. It is possible that a particular process will require more (or less) of a particular chemical, and the spending may vary accordingly. For this reason, staff is requesting authorization from Council to spend an amount not-to-exceed $4,184,248 as noted below, with the flexibility to move money between vendors as chemical consumption requires. Should additional spending over $4,184,248 be required, staff will return to Council with a request for additional authorization.
FISCAL IMPACT
Anticipated expenditures for water and wastewater treatment chemicals in FY 2025-26 will be $1,982,000 and $2,202,248 respectively, for a total not to exceed budget of $4,184,248. Attachment 2 illustrates the proposed FY 2025-26 budget and costs for each business unit; therefore, sufficient funds are available.
Table 1
|
Business Unit |
FY25-26 Budget for Chemicals |
Total Anticipated Expenditure |
|
Weese Water Filtration Plant 750754711.5355.0002 |
$ 653,000 |
$ 653,000 |
|
Mission Basin Groundwater Purification Facility 750755711.5355.0002 |
221,000 |
221,000 |
|
Recycled Water Treatment 750704711.5355.0002 |
212,000 |
212,000 |
|
Pure Water Oceanside 750775711.5355.0002 |
896,000 |
896,000 |
|
Total Water |
1,982,000 |
1,982,000 |
|
Sewer Collections 800803721.5355.0002 |
160,500 |
160,500 |
|
La Salina Wastewater 800804721.5355.0002 |
350,123 |
350,123 |
|
SLR Water Reclamation Facility 800805721.5355.0002 |
1,691,625 |
1,691,625 |
|
Total Wastewater |
2,202,248 |
2,202,248 |
|
Total Water and Wastewater |
$4,184,248 |
$4,184,248 |
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 bidding requirements set forth in Chapter 28A of the City Code.
.end
Prepared by: Veronica Chen, Management Analyst
Reviewed by: Michael Gossman, Deputy City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Requested Expenditures by Vendor and Business Unit