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Item Number: H.4. CITY COUNCIL REPORT SUBJECT: Purchase Agreement with PVS DX, Inc. for 99% Chlorine Supply MEETING DATE: May 26, 2026 TO: Mayor and Council FROM: Jamie McCracken, Utilities Director REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: The Utilities Department is requesting approval of a Purchase Agreement between the City of Tolleson and PVS DX, Inc. for the purchase and delivery of 99% chlorine utilized in wastewater treatment operations. BACKGROUND: The City utilizes 99% chlorine as part of its wastewater treatment process to ensure compliance with environmental and operational requirements. The City issued a request for quotes for the supply of liquid chlorine and received two responses. The originally awarded vendor was unable to fulfill the City’s operational requirements; therefore, staff evaluated the remaining responsive and responsible bidder and determined that PVS DX, Inc. is qualified to provide the required chemical supply services. The proposed Agreement provides for the purchase and delivery of liquid chlorine on an as-needed basis through June 30, 2027, with the option to renew for up to three additional one-year terms upon mutual agreement of the parties and subject to annual budget appropriations. DISCUSSION: Under the Agreement, PVS DX, Inc. will provide 99% chlorine for use in the City’s wastewater treatment operations. The Agreement is structured as an indefinite quantity and indefinite delivery agreement, allowing the City to procure chemicals as operational needs arise. The Agreement establishes an annual aggregate compensation limit not to exceed $250,000 per fiscal year. Deliveries, quality standards, inspection requirements, indemnification provisions, and termination clauses are included to protect the City’s operational and financial interests. The Agreement also includes standard City contractual provisions related to appropriations, insurance and indemnification, conflict of interest compliance, and state statutory requirements. Approval of this Agreement will ensure continued availability of necessary treatment chemicals required for uninterrupted wastewater treatment plant operations and regulatory compliance. BUDGET IMPACT: Funding for the purchase of 99% chlorine is included within the Utilities Department operating budget. The annual aggregate amount under the Agreement shall not exceed $250,000 and will be subject to annual budget appropriations. RECOMMENDATION: Staff recommends approval of the Purchase Agreement between the City of Tolleson and PVS DX, Inc. for the purchase and delivery of 99% chlorine for wastewater treatment operations. ATTACHMENTS: 1. 05 26 26 UT - Chemical Purchasing Agreement - PVS DX, Inc. - End Date 06 30 27