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Item Number: H.7. CITY COUNCIL REPORT SUBJECT: Purchase Agreement with Thatcher Company of Arizona, Inc. for the Purchase of Sodium Hydroxide 50% for Wastewater Treatment MEETING DATE: July 8, 2025 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 with Thatcher Company of Arizona, Inc. for the purchase of Sodium Hydroxide 50%, which is a critical chemical used in the City’s wastewater treatment operations. BACKGROUND: Sodium Hydroxide 50% is essential for pH control and other wastewater treatment processes that ensure the City complies with environmental regulations. The City issued Invitation for Bids No. WW 25-01 to secure competitive pricing for the ongoing supply of this chemical. Thatcher Company of Arizona, Inc. submitted a responsive bid and was selected to provide Sodium Hydroxide 50% based on qualifications and proposed pricing. The Agreement reflects the terms outlined in the vendor's successful bid submittal. DISCUSSION: The Agreement with Thatcher Company of Arizona, Inc. establishes the following terms: • The initial term is one (1) year from the effective date, with up to four (4) additional one-year renewal options, subject to City approval and annual budget appropriations. • The price is set at $2.61 per gallon of Sodium Hydroxide 50%. • The annual aggregate amount shall not exceed $200,000 per fiscal year. • The Agreement allows for purchases on an as-needed, indefinite quantity basis through City-issued Chemical Orders. • The terms include product inspection requirements, delivery obligations, warranties, indemnification, and compliance with all applicable laws and procurement standards. This purchase ensures that the City can obtain Sodium Hydroxide 50% in a timely and cost-controlled manner, supporting the continuous operation of the wastewater treatment system. BUDGET IMPACT: The Agreement authorizes purchases up to $200,000 annually, funded through the approved Utilities Department budget for wastewater treatment operations. RECOMMENDATION: Staff recommends approval of the Purchase Agreement with Thatcher Company of Arizona, Inc. for the purchase of Sodium Hydroxide 50%, with a not-to-exceed amount of $200,000 per fiscal year. ATTACHMENTS: 1. 07 08 25 UT - Thatcher Company of Arizona Inc. Sodium Hydroxide 50% Purchase Agreement - End Date 07 09 30