Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Second Renewal Of Blanket Purchase Agreement PA600686 With Airgas USA, LLC For The Supply And Delivery Of Liquid Oxygen In An Annual Amount Up To $498,000.00 For The Period From June 1, 2025, To May 31, 2026.
Strategic Plan Focus
Infrastructure & Facilites
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Utilities (“Department”) needs to purchase liquid oxygen (“LOX”) for the Southern Regional Wastewater Treatment Plant (“SRWWTP”) Cryogenic Oxygen Production Plant for use during maintenance and repair work. The SRWWTP is designed and constructed to use aerobic sewage treatment processes that require a continuous supply of oxygen to break down and remove wastewater contaminants.
On January 7, 2023, the City Commission passed and adopted Resolution No. R-2023-154, approving Blanket Purchase Agreement (“BPA”) Number PA600686 in an amount up to $298,000.00 with Airgas USA, LLC (“Airgas”) for the purchase and delivery of LOX for an initial one-year term from June 1, 2023, to May 31, 2024, with four optional one-year renewal periods.
On May 1, 2024, the City Commission passed and adopted Resolution No. R-2024-134, approving PA600686’s First Renewal for up to $298,000.00 from June 1, 2024, to May 31, 2025.
On January 15, 2025, the City Commission passed and adopted Resolution No. R-2025-016, approving a Change Order to PA600686, increasing the contract amount from $298,000.00 to $498,000.00. The change order was requested due to unforeseen repairs that required additional LOX deliveries. However, the Department desires to keep the elevated annual amount to cover potential cost increases related to increasing preventive maintenance needs at the Cryogenic plant, planned plant upgrades, and overall cost increase of LOX deliveries.
The Department Director recommends that the City Commission approve and authorize the second renewal of BPA PA600686 with Airgas in an annual amount up to $498,000.00 from June 1, 2025, to May 31, 2026.
Fiscal Impact:
A portion of the funding for this renewal is available in the FY 2025 Operating Budget in account number 442.400601.53600.552330.000000.000.000 and will be budgeted in subsequent fiscal years’ operating budgets subject to approval and adoption by the City Commission. No new staff will be required as a result of this resolution.
Recommended for inclusion on the agenda by:
Vincent Morello, Director, Department of Public Utilities
Chris O’Brien, Director of Public Safety