DATE: 03/19/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2025-109
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
CHANGE ORDER WITH CORE-ROSION PRODUCTS FOR AS-NEEDED CHEMICAL
TANK PURCHASES
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve a change order for Core-Rosion Products to increase the amount from $100,000 to $200,000 annually for as-needed chemical tank purchases. Chemical tanks are essential for safely storing Sodium Hypochlorite and other chemicals critical to water treatment operations.
RECOMMENDED ACTION:
That the City Council authorize the City Manager, or his designee, to execute a change order to the purchase order with Core-Rosion Products, in the amount of $100,000 for an annual purchase amount of $200,000 per fiscal year beginning Fiscal Year 2025 and for subsequent years, including non-substantive extensions, change orders and amendments up to 10% or $20,000, as authorized in Corona Municipal Code Section
3.08.080(I).
That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions
BACKGROUND & HISTORY:
The Utilities Department operates both potable water and wastewater treatment facilities that rely on specialized chemical storage tanks to safely handle essential treatment chemicals. On September 28, 2021, the Utilities Department requested an exception to competitive bidding under Corona Municipal Code Section 3.08.140(E), allowing exceptions in the City's best interest.
Core-Rosion Products is the authorized distributor for Poly-Processing’s chemical storage tanks, which are listed in the City's Exclusive Standard Specifications as authorized by Public Contract Code (PCC) 3400.
ANALYSIS:
Given the ongoing operational needs and upgrade to chemical tanks, this report requests a change order to increase the purchase order to $200,000 annually to ensure the continued integrity of these critical tanks. The City’s water and wastewater treatment operations rely on these chemical storage tanks to safely contain Sodium Hypochlorite and other essential chemicals.
BASIS FOR EXCEPTION TO COMPETITIVE BIDDING
Staff believes that an exception to competitive bidding is warranted for these as-needed purchases under Corona Municipal Code Section 3.08.140(E), which states as follows:
(E) Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.
The City Council previously designated Poly-Processing chemical storage tanks as the Utilities Department’s exclusive standard per PCC 3400. This designation is based on the proven reliability and performance of Poly-Processing’s high-density cross-linked polyethylene tanks with integrally molded flanges (IMFO System) used throughout the City's water treatment facilities. The City Council adopted Resolution No. 2022-046, establishing specific equipment and products as a sole source for potable water, water reclamation, and reclaimed water facilities. Poly-Processing’s chemical storage tanks are included on this list as the City's established standard for chemical containment. This ensures that all facilities are equipped with compatible, high-quality storage solutions, thus reducing replacement, repair, and maintenance costs to maintain operational efficiency.
Staff recommends amending the purchase order with Core-Rosion Products by $100,000, bringing the total annual budget to $200,000 per fiscal year.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the Fiscal Year 2025 Utilities Department operating budget in the Water Facilities Maintenance Division within Water Utility Fund 570 and Sewer Facility Maintenance Division within Sewer Utility Fund 572.
Future funding requests will be requested through the annual budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15302 (c) of the Guidelines for the California Environmental Quality Action (CEQA), which states that “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination” and is therefore exempt from CEQA. This action involves the continued replacement and maintenance of chemical storage tanks essential for water treatment operations, ensuring public health and safety. Therefore, is exempt from the requirements of CEQA, and no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, ASSISTANT UTILITIES DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2022-046
2. Exhibit 2 – Sole Source Product Letter
3. Exhibit 3 – ETB Memo