PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
Meeting Date: June 17, 2025
TITLE:
Contract Amendment #3 with Olin Corporation for Supply of Sodium Hypochlorite RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #3 to the existing Professional Services Agreement with Olin Corporation, dba Olin Chlor Alkali Products and Vinyls to supply sodium hypochlorite in an amount not to exceed $129,276 for Fiscal Year 2026.
DISCUSSION:
Sodium hypochlorite is used in the City’s Wastewater Treatment Plant as a source of chlorine for disinfectant as part of the treatment process. In June of 2022 through a competitive bid process, the City entered into a contract with Olin Corporation, dba Olin Chlor Alkali Products and Vinyls (Olin Corp) for one year with three options to extend the agreement for an additional one-year period.
The initial contract was authorized by the City Council on June 7, 2022, for $2.083 per gallon, not to exceed an amount of $103,109 in Fiscal Year (FY) 2023. Contract Amendments #1 and #2 were authorized by the City Council on June 6, 2023 and June 4, 2024 respectively, each for $2.5272 per gallon, not to exceed $126,360 in FY 2024 and FY 2025.
Staff requested a quote for the final extension under the initial contract from Olin Corp to continue to provide sodium hypochlorite for FY 2026. The quote is for $2.5855 per gallon (including sales tax), not to exceed $129,276 bringing the total contract cost for FY 2023 through FY 2026 to $485,105.
Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #3 to the existing Professional Services Agreement with Olin Corp to supply sodium hypochlorite in the amount not to exceed $129,276 in FY 2026.
FISCAL IMPACT:
The fiscal impact of adopting the attached Resolution is $129,276 in the Wastewater Enterprise Fund. The FY 2026 budget includes $130,004 in the Wastewater Enterprise Fund chlorine account for the purchase of sodium hypochlorite. Table 1 illustrates the budget, proposed contract amendment cost, and remaining balance.
Council Agenda 6-17-2025 9.E-1
Table 1. Fiscal Impact of Contract Amendment
Item Fiscal Impact
FY 26 Project Budget $130,004
Contract Amendment #3 ($129,276)
Remaining/Shortfall $728
ATTACHMENTS:
1. Resolution
2. Amendment #3 with Olin Corp
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie R. Gaglione, PE, Director of Public Works City Manager Approval:
Council Agenda 6-17-2025 9.E-2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #3
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH OLIN
CORPORATION, DBA OLIN CHLOR ALKALI PRODUCTS AND VINYLS TO SUPPLY SODIUM HYPOCHLORITE IN AN AMOUNT NOT TO EXCEED $129,276 FOR FISCAL YEAR 2026
WHEREAS, sodium hypochlorite is used in the City’s Wastewater Treatment Plant as a source of chlorine for disinfectant as part of the treatment process; and WHEREAS, in June of 2022 through a competitive bid process, the City entered into a contract with Olin Corporation, dba Olin Chlor Alkali Products and Vinyls (Olin Corp) for one year with three options to extend the agreement for an additional one-year period; and
WHEREAS, Contract Amendments #1 and #2 for FY 2024 and FY 2025 were authorized by City Council on June 6, 2023 and June 4, 2024 respectively; and WHEREAS, the current quote for the final extension under the initial contract is for $2.5855 per gallon (including sales tax), not to exceed $129,276 bringing the total contract cost for FY 2023 through FY 2026 to $485,105.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #3 to the existing Professional Services Agreement with Olin Corporation, dba Olin Chlor Alkali Products and Vinyls, in substantially the form attached to staff’s report dated June 17, 2025, to supply sodium hypochlorite in an amount not to exceed $129,276 for Fiscal Year 2026.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 6-17-2025 9.E-3
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Council Agenda 6-17-2025 9.E-4
Attachment 1
AMENDMENT # 3
to the
JUNE 29, 2022 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND OLIN CORPORATION, DBA OLIN CHLOR ALKALI PRODUCTS AND VINYLS Pursuant to the June 29, 2022 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Olin Corporation, dba Olin Chlor Alkali Products and Vinyls, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated April 21, 2025, which is attached hereto and by this reference made a part hereof.
2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of $2.5855 per gallon (including sales tax) not to exceed one hundred twenty-nine thousand two hundred seventy-six dollars ($129,276), without prior written approval of the City.
3.The revised fee under the June 29, 2022 contract, plus addend a 1-3, is four hundred eighty- five thousand one hundred five dollars ($485,105 ).
4.The term end date of the agreement is hereby revised to June 30, 2026.
5.All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Rosemarie R. Gaglione, PE
Title: Director of Public Works
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Olin Corporation, dba Olin Chlor Alkali Products
and Vinyls
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Cost Proposal
Council Agenda 6-17-2025 9.E-5
Attachment 2
490 Stuart Road NE, Cleveland, Tennessee 37312
423/336-4850 • 423/336-4830
Internet Address: www.olinchloralkali.com
April 21, 2025
Jake Smith, Utilities Manager
City of Pismo Beach Public Works Department
550 Frady Lane
Pismo Beach, CA 93449
805-773-7075 Direct
Subject: ANNUAL PROPOSAL (SEMI-A NNUAL PRICING) – 12.5 WT% SODIUM HYPOCHLORITE Dear Jake:
Olin Corporation, for and on behalf of itself and its subsidiaries (“Olin”) is pleased to provide City of Pismo Beach Public Works Department (“Buyer”) with our proposal to supply 12.5 wt% Sodium Hypochlorite to your wastewater facility. Our proposal is outlined below:
PRODUCT & GRADE: 12.5 wt% Sodium Hypochlorite, meeting the West Coast Water Treatment S pecification attached hereto as Addendum A
QUANTITY: 100% of Buyer's requirements estimated to be 50,000 gallons per year, and not to exceed 125% of estimate in any contract year without Olin’s prior approval.
DELIVERY PERIOD: 07/01/2025 through 6/30/2026. Extensions upon mutual agreement PRICE & FREIGHT Sodium Hypochlorite, 12.5%
Min. delivered quantities 7/1/2025 – 12/31/2025 Semi-Annual Pricing Full Truck Load $2.39/gal + Applicable Taxes*
New pricing effective 7/1/2025 and will be negotiated semi-annual based on market conditions Note: Pricing is plus U.S. Superfund Excise Tax Surcharge ($0.004/gal. for 12.5 wt% bleach) CONTAINER: Olin's provided Tank Truck
ORIGIN: Olin’s Primary Shipping Point, Pittsburg, CA or other preferred shipping point DESTINATION: Buyer’s Wastewater Treatment Facility in Pismo Beach, CA PAYMENT TERMS: Net thirty (30) days from date of invoice ADDITIONAL PROVISIONS: •Seller reserves the right by written notice given at any time before shipment, to increase the price, if there is any increase in the price or cost of the product(s) to Seller due to increases in the cost of raw materials (including energy), labor or transport or any other causes beyond the control of Seller, provided that Seller gives advance notice to Buyer of any such price adjustment including reasonable explanations for this adjustment. •This proposal is made subject to the execution by the parties of a sales contract in a form to be agreed.
•Tank truck detention charges incurred at destination shall be for Buyer’s account.
Council Agenda 6-17-2025 9.E-6
Attachment 2
Supply Proposal Page 2
•Product shipped shall meet Olin’s specification at delivery, copy of which is attached. •Olin reserves the right to cancel this proposal at any time prior to mutual agreement and execution by the parities of a sales contract, and in any event this proposal may expire if sales contract is not executed by Buyer on or before the 20th day following the date hereof.
We trust the above meets with your approval. Should you require any assistance, or have any questions concerning this proposal, please feel free to contact us at your earliest convenience.
Yours truly,
Jason Cho
Jason Cho
Account Manager
Attachments: West Coast Water Treatment Specification
Council Agenda 6-17-2025 9.E-7
Attachment 2
Addendum A
Council Agenda 6-17-2025 9.E-8
Attachment 2