CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 1 of 2 Item #8 CITY COUNCIL AGENDA REPORT March 19, 2024 Public Works - Operations Division TITLE: APPROVE FIRST AMENDMENT TO THE PURCHASE ORDER WITH THATCHER COMPANY OF CALIFORNIA, INC., INCREASING THE NOT-TO-EXCEED AMOUNT FROM $95,000 TO $110,000 FOR WATER TREATMENT CHEMICALS SUMMARY The City is responsible for the addition, monitoring, and testing of the chemical residuals and water quality its water system. The City currently procures water treatment chemicals from Thatcher Company of California, Inc. Staff is requesting City Council authorization to amend the Fiscal Year 2023/24 Purchase Order with Thatcher to increase the total amount by $15,000 for a new not-to-exceed amount of $110,000. RECOMMENDATION Authorize the City Manager to amend the annual recurring Purchase Order with Thatcher by increasing the not-to-exceed amount by $15,000 from $95,000 to $110,000 for FY 2023/24 for water treatment chemicals. BACKGROUND Utilizing purchase orders for as-needed services allows staff to authorize and have the work completed promptly as compared to formally bidding on each small project. Staff will contact the appropriate contractor(s) to procure the scope of services and request a quote when using the as-needed service contractors; based on contractors' availability and pricing for the task, staff will then authorize the selected contractor to proceed with the work, and the costs will be applied against the not-to-exceed limit of the purchase order. The City is responsible for the addition, monitoring, and testing of the chemical residuals and water quality in its water system. Staff continuously looks for alternative suppliers to ensure competitive pricing, and currently procures water treatment chemicals from Thatcher Company of California, Inc. through a FY 2023/24 purchase order for $95.000. DISCUSSION This year, there has been a sharp rise in costs for chemicals, including the water treatment chemicals procured from Thatcher. The addition of Fluoride into the City’s water is a State- regulated mandate that requires the City to follow EPA guidelines for safe drinking water. Staff solicits updated pricing for bulk chemical delivery for water treatment chemicals from vendors that provide services to the Pleasanton area. The chemicals are purchased through several different vendors through a purchase order process under the City's purchasing guidelines. Due to the high variability of chemical costs, vendors only hold/commit to pricing for short periods of time. Market trends indicate that water treatment chemical prices are increasing, and expenses are anticipated to exceed the City's purchase order cap of $100,000. Page 134 of 228