Agenda Item
City Council
Item #: 3.5. 5/23/2023 File #: 23-0312
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Second Amendment to the Agreement with HASA, Inc. for maintenance of Hart Park pools.
2. SUMMARY
The City currently has an agreement for $204,241 with HASA, Inc to provide maintenance of Hart Park pools. HASA, Inc. has since notified the City that the cost of maintaining the pools at Hart Park has increased due to rising costs in pool chemicals and other maintenance costs. The proposed Second Amendment to the Agreement with HASA, Inc. will increase the contract authority by $51,854.78, bringing the total not-to-exceed amount to $256,095.78, to account for the increased cost of pool chemicals and service expenses.
3. RECOMMENDED ACTION
Approve the Second Amendment with HASA, Inc., in the amount of $51,854.78 for maintenance of Hart Park pools; and authorize the Mayor and the City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for the Second Amendment is $51,854.78 and will be funded through the General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 3: Enhance and promote quality of life in the community. a: Renovate, maintain, develop, and/or expand public use places and spaces.
6. DISCUSSION AND BACKGROUND
In October 2020, the City Council awarded an agreement to Commercial Aquatic Services (CAS) for maintenance of the Hart Park pools in the amount of $183,280. Since then, CAS sold their business to HASA, Inc. (HASA). Through the First Amendment dated June 9, 2022, the City Manager approved the assignment of the agreement to the new provider, HASA. The First Amendment also authorized an emergency expenditure of $20,961 to make emergency repairs to the pool filters.
HASA recently notified the City that the cost for bulk chemicals, including chlorine and hydrochloric acid, has increased. The following table shows the rate increases negotiated by City staff with HASA City of Orange Printed on 5/18/2023Page 1 of 3
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Item #: 3.5. 5/23/2023 File #: 23-0312
for these chemicals for the last two years of the agreement:
Table 1: Chemical Rate Increases
Contract Year Prior Rate New Rate Difference
Chlorine (per gallon rate)
December 2022 - November 2023 $1.38 $2.18 $0.80
December 2023 - November 2024 $1.40 $2.48 $1.08
Hydrochloric Acid (per gallon rate)
December 2022 - November 2023 $1.22 $2.04 $0.82
December 2023 - November 2024 $1.30 $2.34 $1.04
In addition to this increase, the pools also require more chemicals than originally projected by CAS.
Due to an inaccurate projection, additional pool repairs, and return to pre-pandemic usage, more chlorine and hydrochloric acid were needed over the last few years in order to maintain appropriate chemical levels consistent with health and safety standards for safe pool use. Not maintaining appropriate chemical levels for public use poses health and safety hazards, which could cause a pool closure. The following table demonstrates the financial impact of the increase in chemical rates and use:
Table 2: Impact of Increased Rates and Use
Contract Year Cost at Prior
Rate and
Estimated Use
Cost at New
Rate and
Actual Use
Difference
Chlorine (per gallon rate)
December 2022 - November 2023 $6,210.00 $22,785.36 $16,575.36 December 2023 - November 2024 $6,300.00 $25,920.96 $19,620.96 Hydrochloric Acid (per gallon rate)
December 2022 - November 2023 $1,098.00 $3,672.00 $2,574.00 December 2023 - November 2024 $1,170.00 $4,212.00 $3,042.00 The total impact of the increase in rates and chemical use is $41,812.32. In addition to the increase in chemical costs, the labor for annual preventative maintenance expense also increased by $1,400.
The proposed Second Amendment accounts for both increases in the remaining two years of the agreement, for a total increase of $43,212.32. As the infrastructure of the pool continues to age, and the cost of future repairs could be influenced by a number of factors, including the historic nature of the facility, a 20 percent contingency of $8,642.46 has been added for an increase in the contract of $51,854.78. The proposed Second Amendment would bring the total contract not-to-exceed amount to $256,095.78.
Staff is recommending that the City Council approve the Second Amendment with HASA in the amount of $51,854.78 to continue maintenance at the Hart Park pools. The total expenditure for the Second Amendment will be funded through the General Fund (100). The current agreement expires in November 2024 at which time, services for pool maintenance and chemicals will be put out to bid.
It is anticipated costs for maintenance and chemicals will continue to increase.
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Item #: 3.5. 5/23/2023 File #: 23-0312
7. ATTACHMENTS
· Second Amendment to Maintenance Services Agreement with HASA, Inc.
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