Camarillo Sanitary District
AGENDA REPORT
Date: April 22, 2026
To: Honorable Chairman and Board of Directors
From: Greg Ramirez, District Manager
Submitted by: Dave Klotzle, Assistant District Manager
Subject: Sole Source Purchase of Thioguard – Pricing Agreement
BACKGROUND
Camarillo Sanitary District (CSD) staff previously completed field testing of various chemicals to determine which most effectively mitigated the corrosive effects of hydrogen sulfide concentration, which can cause corrosion in pipes, pumps, and other equipment, resulting in costly repairs. Staff determined that magnesium hydroxide, trade name Thioguard, was the most effective chemical. Other alternatives are available; however, they would require pilot studies and the investment of significant capital costs for equipment and pump station retrofitting.
Thioguard is a proprietary chemical manufactured by Premier Chemicals, with Hill Brothers Chemical Co. (Hill Brothers) as the exclusive authorized distributor and licensee in California and ten other western states.
DISCUSSION
Thioguard has proven effective and beneficial in reducing hydrogen sulfide concentrations. Although Hill Brothers could only provide one-year pricing from July 1, 2026, through June 30, 2027, at $862.85 per ton including delivery (exclusive of taxes) due to the volatile chemical market, they agreed to sign a three-year agreement that includes a five percent (5%) price increase in Fiscal Years 2027/2028 and 2028/2029.
Staff recommends the approval of CSD Pricing Agreement No. 2026-2 with Hill Brothers for the purchase of Thioguard at $862.85 per ton ($0.25886 per pound), plus taxes, from July 1, 2026, to June 30, 2027. During the term of the agreement, Hill Brothers may request a compensation adjustment of up to five percent (5%) for Fiscal Years 2027/2028 and 2028/2029. Staff estimates the annual purchase of Thioguard will average $240,000, including any applicable taxes
Sole Source Purchase of Thioguard – Pricing Agreement
April 22, 2026
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FISCAL IMPACT
Funds for the Pricing Agreement for Thioguard will be included in the FY 2026/27 Proposed Budget in the Camarillo Sanitary District Fund, Chemicals Account No. 871- 3730-437.61-61.
CITY COUNCIL STRATEGIC PLAN FY 2025/26
This item supports the City Council’s Strategic Plan Goal 6, Natural Resource Infrastructure Management to protect health and safety through the collection and treatment of domestic, commercial, and industrial wastewater, while achieving full regulatory compliance.
CEQA DETERMINATIONS
Staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines that the Hill Brothers Chemical Co. Pricing Agreement for Thioguard is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Pricing Agreement for Thioguard may have a significant effect on the environment. The activity of services is limited to the purchase of Thioguard.
RECOMMENDATION
1. Find that the pricing agreement with Hill Brothers Chemical Co. exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15601(b)(3) of the State CEQA Guidelines;
2. Authorize the District Manager to execute CSD Agreement No. 2026-2 with Hill Brothers Chemical Co. for the purchase of Thioguard at the cost of $862.85 per ton ($0.25886 per pound), exclusive of taxes, for Fiscal Year 2026/2027 with possible increases of up to five percent (5%) for Fiscal Years 2027/2028 and 2028/2029, exclusive of taxes.
ATTACHMENTS
1. CSD Agreement No. 2026-2
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None