ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: April 7, 2026
SUBJECT: Amendment No. 2 to Agreement No. 2024-113 with Ferguson Enterprises LLC
(to accept a three percent (3%) contract price increase, revised not to exceed $397,428.93) for fire hydrants and fire hydrant parts.
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
On May 8, 2024, the City Council approved the annual contract for the supply of fire hydrants and hydrant parts with Ferguson Enterprises LLC in the amount of $397,428.93; renewable annually thereafter for four consecutive one -year periods. The City may ex ercise the option to allow price adjustments due to increases in the Producer Price Index (PPI)
Fire hydrants within the City limits are maintained by the Water Resources Department. The Water Resources staff maintains a stock of fire hydrants parts for repair or replacement for operational failure as well as damage from vehicle accidents.
Ferguson Enterprises LLC has requested a three percent (3%) price increase. After review, staff have approved the request, as the increase is permissible due to increases in the Producer Price Index (PPI) and is in accordance with the terms and conditions set forth in the original bid specifications.
Per the terms of the contract, amendments increasing the contract and/or extending the contract have been approved as follows:
• Amendment 1 approved April 23, 2025; extend term by one year.
Currently, there is $341,885 remaining on the contract. If approved, Amendment No. 2 will increase the contract price by 3%. No additional funds are needed at this time.
FISCAL IMPACT:
Funds are budgeted in the Water Resources operating account.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Signed Amendment No.2 to Agreement No. 2024-113
2. EXHIBIT A