| CITY OF ONTARIO Agenda Report September 1, 2026 |
SECTION: CONSENT CALENDAR |
Prepared By: Chris Bonadurer
Staff Member Presenting: Scott Burton, Utilities General Manager
Reviewed By: Dennice Raygoza, Courtney Jones, Michael Sigsbee
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH TESS ELECTRIC, INC., FOR ON-CALL MAINTENANCE OF ELECTRICAL SYSTEMS AT CITY WATER FACILITIES
RECOMMENDATION:
That the City Council authorize the City Manager, or designee, to execute Amendment No. 3 to the Maintenance Services Agreement with Tess Electric, Inc., of Riverside, California, for on-call maintenance services of the City’s water facilities electrical systems in the amount of $100,000 ($50,000 for FY 2026-27 and $50,000 for FY 2027-28) for a revised new total not-to-exceed aggregate amount of $248,500, and a term extension to June 30, 2028.
THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:
Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:
Proposed Amendment No. 3 to the Maintenance Services Agreement with Tess Electric, Inc., provides for on-call maintenance of the City’s water facilities electrical systems, increases the agreement amount by $100,000 ($50,000 for FY 2026-27 and $50,000 for FY 2027-28) for a revised new total not-to-exceed amount of $248,500 and extends the term to June 30, 2028.
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.
BACKGROUND & ANALYSIS:
The City owns and operates eighteen groundwater wells, seven pumping stations, twelve reservoirs, three treatment facilities, and seventeen pressure-reducing stations that produce, treat, store, and distribute drinking water throughout the community.
The continuous operation of these facilities depends on complex electrical infrastructure, including high-voltage electrical equipment, 600-horsepower motors, variable-frequency drives, motor control centers. These components power and regulate water production and distribution, protect critical equipment, and support remote monitoring and operation to maintain reliable water service.
The City utilizes Tess Electric, Inc., to maintain and repair the electrical infrastructure at its water facilities. Tess Electric, Inc. also designed and installed most of the electrical panels at the City’s water facilities, providing extensive knowledge of the electrical systems and their configurations. This expertise enables the company to quickly diagnose issues, perform repairs efficiently, and minimize operational downtime. Due to the specialized nature of the electrical infrastructure, Tess Electric, Inc.’s familiarity with the City’s systems, and the company’s extensive knowledge of the electrical panels and equipment it designed and installed, transitioning to another vendor could 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. 3 extends the term of the Agreement for an additional two years. The original Agreement term was from October 11, 2023 to June 30, 2026, with a not-to-exceed amount of $150,000. Approval of proposed Amendment No. 3 will continue to provide the additional on-call maintenance services of the City’s water facilities electrical systems.