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STAFF REPORT - CHANGE ORDER WITH JCI JONES CHEMICAL AND PO WITH NORTHSTAR FOR SODIUM HYDROXIDE.pdf

Corona City Council
June 18, 2025

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STAFF REPORT - CHANGE ORDER WITH JCI JONES CHEMICAL AND PO WITH NORTHSTAR FOR SODIUM HYDROXIDE.pdf
Meeting
June 18, 2025
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Corona City Council
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Text extracted from the city's file for reading and search. Open the original on pub-corona.escribemeetings.com. That file is the official record.

DATE: 06/18/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2025-253

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

CHANGE ORDER FOR FISCAL YEAR 2026 WITH JCI JONES CHEMICAL, INC., AND

ISSUANCE OF A PURCHASE ORDER TO NORTHSTAR FOR THE PURCHASE OF

SODIUM HYDROXIDE
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve a Change Order to increase the JCI Jones Chemical, Inc., Purchase Order for Fiscal Year 2026 and to issue a Purchase Order to NorthStar for the purchase of Sodium Hydroxide, also known as caustic soda. The use of Sodium Hydroxide is critical to the Desalter Facility’s treatment process and ensures the longevity of the City’s infrastructure.

RECOMMENDED ACTION:

That the City Council:
a. Authorize the City Manager, or his designee, to issue a Change Order to increase the Purchase Order with JCI Jones Chemicals, Inc. for Fiscal Year 2026 by $20,000, from $100,000 to $120,000, for the purchase of Sodium Hydroxide. b. Authorize the City Manager, or his designee, to issue a Purchase Order for Fiscal Year 2026 to NorthStar Chemical in the amount of $120,000 for the purchase of Sodium Hydroxide.
c. Authorize the City Manager, or his designee, to negotiate and execute nonsubstantive extensions, change orders, and amendments up to 10% per purchase order as authorized in Corona Municipal Code Section 3.08.080(I). d. Authorize an exception to competitive bidding pursuant to Corona Municipal Code Section 3.08.140(E) that competitive bidding has been satisfied for the reason provided in the Analysis section.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council take the above actions.

BACKGROUND & HISTORY:

The Utilities Department (UD) delivers safe and reliable drinking water and wastewater reclamation services to the residents of the City of Corona while complying with Federal, State, and Local regulations. UD owns and operates 3 potable water treatment plants, including a state-of-the-art reverse osmosis facility (known as the Desalter), eight 8 blend facilities, and 1 Granular Activated Carbon (GAC) treatment plant with a distribution system consisting of more than 700 miles of piping, 20 pump stations, and 18 storage tanks. There are over 46,000 potable water service connections. The Potable Water division uses Sodium Hydroxide at the Desalter Facility to adjust pH levels, which helps to prevent pipe corrosion and protects the distribution system.

ANALYSIS:

On June 8, 2021, the Purchasing Division issued Notice Inviting Bids (NIB) 21-082CA for potable water and water reclamation treatment chemicals. On July 7, 2021, the City Council authorized the issuance of a Purchase Order to JCI Jones Chemical, Inc., in the amount of $40,000 for multiple years. On September 11, 2024, the City Council authorized a Change Order to increase the JCI Jones Chemicals, Inc. Purchase Order to $100,000 along with any adjustments related to the Consumer Price Index (CPI).

Since January 2025, JCI Jones Chemicals, Inc., has notified the City of price changes and increased the price twice.

Looking at the price volatility of Sodium Hydroxide, staff requested informal bids from three different vendors. Staff received one proposal from North Star Chemicals, Inc. with pricing shown in the table below.

Vendor City Quote Amount
North Star Chemicals, Inc. Monrovia, Ca $1.26084/gal
The Utilities Department is requesting authorization for two purchase orders for two separate vendors for Sodium Hydroxide due to the fluctuating nature of prices and supply availability experienced in the past. Sodium hydroxide supply and price have been subject to variability due to several external factors, such as production issues, adverse weather events, tariffs, and broader supply chain disruptions. These factors have caused unpredictable delays and price changes, which can impact UD’s operations if not proactively managed.

The Utilities Department will complete a Request for Proposals during Fiscal Year (FY) 2026 (FY) for all potable water and water reclamation treatment chemicals.

The Utilities Department staff requests that City Council authorize a purchase order for $120,000 to JCI Jones Chemicals, Inc. for FY 2026 and authorize issuance of a purchase order in the amount of $120,000 to Pacific Star Chemical/DBA Northstar Chemicals for FY 2026.

FINANCIAL IMPACT:

Funding for the recommended actions was included in the Adopted FY 2026 Utilities Department’s Operating Budget within the Water Utility Fund 570.

ENVIRONMENTAL ANALYSIS:

This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (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 purchase of sodium hydroxide required for the operation of existing water treatment facilities, which will result in no expansion of use and there is no possibility that this action will have a significant impact on the environment. Therefore, no environmental analysis is required.

PREPARED BY: AFTAB HUSSAIN, ASSISTANT UTILITIES DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR

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