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Item Number: H.6. CITY COUNCIL REPORT SUBJECT: First Amendment to PVS DX, Inc. Chemical Purchase Agreement MEETING DATE: March 25, 2025 TO: Mayor and Council FROM: Jamie McCracken, Utilities Director REVIEWED: Reyes Medrano Jr., City Manager PURPOSE: The Utilities Department is requesting the approval of the First Amendment of the Chemical Purchase Agreement between the City of Tolleson and PVS DX, Inc. to increase the compensation authorized by the Agreement for Additional Chemical purchases. BACKGROUND: The City and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging their Chemical Purchase Agreement under this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide the City with the required services and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the services. DISCUSSION: PVS DX, Inc. supplies the City of Tolleson with chemicals necessary for the treatment of wastewater and compliance with our various permits. Timely purchase and safe delivery of these chemicals also protects public and environmental health. BUDGET IMPACT: Commencing with the fiscal year July 1, 2024, through June 30, 2025, the City’s payments to the Contractor, if any, shall not exceed an aggregate amount of $500,000.00 for each fiscal year, for chemicals at the rates that shall be agreed upon by the parties. If an entire fiscal year does not fall within the Term of this Agreement, the aggregate compensation limit for that partial year shall be reduced to an amount equal to the compensation limit multiplied by a factor having as its numerator the number of days in the partial fiscal year and as its denominator the number 365. This Agreement shall remain in full force and effect until June 30, 2025. RECOMMENDATION: Staff recommends the City Council approve the Chemical Purchase Agreement with PVS DX, Inc. ATTACHMENTS: 1. 03 25 25 UT - First Amendment to CPA - PVS DX, Inc.