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Item Number: J.8. CITY COUNCIL REPORT SUBJECT: Second Amendment to Professional Services Agreement with GHD Inc. for Wastewater Treatment Plant Excess Capacity Services MEETING DATE: June 9, 2026 TO: Mayor and Council FROM: Jamie McCracken, Utilities Director REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: The Utilities Department is requesting approval of the Second Amendment to the Professional Services Agreement (PSA) between the City of Tolleson and GHD Inc. for professional services related to utilizing excess capacity at the City's Wastewater Treatment Plant (WWTP). The Amendment increases the annual aggregate compensation amount and extends the term of the Agreement through June 30, 2029. BACKGROUND: On October 10, 2024, the City entered into a Professional Services Agreement with GHD Inc. to provide consulting services related to evaluating and utilizing excess treatment capacity at the City's Wastewater Treatment Plant. The consultant has assisted the City with technical evaluations, planning efforts, and strategic opportunities associated with maximizing the value and use of available wastewater treatment capacity. As the City continues to evaluate growth opportunities and wastewater service strategies, additional professional consulting services are necessary to support ongoing analysis, coordination, and implementation efforts. DISCUSSION: The proposed Second Amendment modifies the existing Professional Services Agreement by extending the term through June 30, 2029, and increasing the annual aggregate compensation limit from $200,000 to $300,000 per fiscal year. GHD Inc. provides specialized engineering and consulting expertise related to wastewater treatment operations, capacity utilization, infrastructure planning, regulatory considerations, and potential partnerships associated with the City's wastewater treatment facilities. The additional contract authority will allow the City to continue utilizing GHD's services as needed to support current and future initiatives involving excess treatment capacity at the Wastewater Treatment Plant. The increased annual authorization provides flexibility to address additional technical studies, evaluations, negotiations, planning efforts, and other professional services that may be required as opportunities arise. Extending the agreement term through June 30, 2029, ensures continuity of services and allows the consultant to continue supporting the City's long-term wastewater management objectives. The Amendment does not obligate the City to expend the full authorized amount. Services will continue to be utilized on an as-needed basis and only upon authorization by the City. BUDGET IMPACT: The Second Amendment increases the annual aggregate compensation amount from $200,000 to $300,000 per fiscal year and extends the agreement term through June 30, 2029. RECOMMENDATION: Staff recommends approval of the Second Amendment to the Professional Services Agreement between the City of Tolleson and GHD Inc. for professional services related to utilizing excess capacity at the City's Wastewater Treatment Plant, increasing the annual aggregate compensation amount from $200,000 to $300,000 per fiscal year and extending the term through June 30, 2029. ATTACHMENTS: 1. 06 09 26 UT - Second Amendment to PSA - GHD Inc. - End Date 06 30 29