ADMINISTRATIVE REPORT
MEETING DATE: September 16, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: September 1, 2026
SUBJECT: Amendment No. 2 to Agreement No. 2024-251 JCI Jones Chemicals Inc.
(increase compensation by $132,000: revised not to exceed $420,190 and extend the term by one year) to continue the supply of sodium hypochlorite.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On September 25, 2024, the City Council approved the annual contract for the supply of sodium hypochlorite for Wastewater Plant 3 with JCI Jones Chemical Inc., in the amount of $186,190; renewable annually thereafter for four consecutive one -year periods. The City may exercise the option to allow contract price adjustments due to increases in the U.S. Department of Labor Producer Price Index for the related industry.
Wastewater Plant 3 uses sodium hypochlorite to disinfect the water as part of the water treat ment process. This treatment step of disinfection is required to meet the Plant’s discharge permit and statewide Title 22 criteria for tertiary treatment (i.e. recycled water). A term extension will allow the continuance of supplying sodium hypochlorite.
Per the terms of the contract, one amendment has been approved as follows:
• Amendment 1 approved September 24, 2025; increased compensation by $102,000 for a revised not to exceed amount of $288,190 and extended the term by one year to September 24, 2026.
JCI Jones Chemicals, Inc., has agreed to extend its bid pricing with a four and seven-tenths percent (4.7%) increase in the contract price consistent with the increases reflected in the U.S Department of Labor Producer Price Index, ser ies No. PCU325180325180 for Other basic inorganic chemical manufacturing.
Staff have reviewed and approved the requested adjustment, which is permissible pursuant to the terms and conditions of the original bid specifications.
FISCAL IMPACT:
If approved, Amendment No. 2 will Increase compensation by $132,000 for a new not to exceed amount of $420,190 and extend the term by one year to allow the continuance of supplying sodium hypochlorite.
These project costs are borne by the Sewer Enterprise Fund and thus not a cost to the General Fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Amendment No. 2 to Agreement No. 2024-251
Exhibit A