| CITY OF ONTARIO Agenda Report September 1, 2026 |
SECTION: CONSENT CALENDAR |

AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH GRISWOLD INDUSTRIES, DBA CLA-VAL COMPANY, FOR ON-CALL MAINTENANCE SERVICES OF AUTOMATIC HYDRAULIC CONTROL VALVES
That the City Council authorize the City Manager, or designee, to execute Amendment No. 2 to the Maintenance Services Agreement with Griswold Industries, DBA Cla-Val Company, of Perris, California, for on-call maintenance services for the City's Cla-Val Hydraulic Control Valves in the amount of $225,000 ($75,000 for FY 2026-27, $75,000 for FY 2027-28 and $75,000 for FY 2028-29) for a revised new total not-to-exceed aggregate amount of $374,999 and a term extension to June 30, 2029.
The proposed Amendment No. 2 to the Maintenance Services Agreement with Cla-Val Company provides for on-call maintenance services for the City's Cla-Val hydraulic control valves, increases the agreement by $225,000 (FY 2026-27 $75,000, FY 2027-28 $75,000, and FY2028-29 $75,000) for a revised new total not-to-exceed amount of $374,999 and extends the term of the agreement to June 30, 2029.
Under the existing Agreement and proposed Amendment, expenditures are as-needed and will be based on negotiated billing rates. The Fiscal Year 2026-27 Budget includes appropriations from the Water Operating Fund for these on-call maintenance services. If approved, additional appropriations will be included in future annual budgets presented to Council for approval. There is no impact to the General Fund.
The City uses Cla-Val’s automatic hydraulic control valves and currently operates over 100 Cla-Val valves in its water system. These valves are essential to the operation of the City's groundwater wells, pumping stations, and pressure-reducing stations. They provide automatic pressure regulation, flow control, and protect critical water system equipment to ensure reliable system performance.
Many of these critical valves are large, complex assemblies that require specialized service and can only be rebuilt using genuine Cla-Val parts. In addition, any valve repaired under warranty must be serviced exclusively by Cla-Val factory service technicians to maintain warranty coverage. Due to the specialized nature of the equipment, proprietary parts and service requirements, and the City's extensive inventory of Cla-Val valves, transitioning to another vendor would result in increased maintenance costs, additional training and familiarization requirements, and potential operational risks. Staff recommends that these services be approved under a non-competitive authorization.
Proposed Amendment No. 2 extends the term of the Agreement for an additional three years. The original Agreement term was from September 3, 2024 to June 30, 2026, with a not-to-exceed amount of $149,999. Approval of proposed Amendment No. 2 will to continue to provide the additional on-call maintenance services to the City’s Cla-Val hydraulic control valves.