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File #: R-2023-276    Version: 1 Name: Ranch Cryogenics Ratification
Type: Resolution Status: Passed
File created: 8/7/2023 In control: Department of Public Utilities
On agenda: 9/6/2023 Final action: 9/6/2023
Title: A Resolution Of The City Commission Of The City Of Hollywood, Florida, Ratifying The City Manager's Approval Of A Purchase Order With Ranch Cryogenics, Inc. For The Emergency Repair And System Restoration Of The Southern Regional Wastewater Treatment Plant Cryogenic Plant In An Amount Up to $361,558.01, In Accordance with Section 38.41(C)(1) Of The City's Procurement Code. (Emergency Purchases)
Attachments: 1. Ranch Cryogenics Ratification Reso, 2. PU-23-78b Ranch Cryo Emergency CM Memo.pdf, 3. RCI Invoice 1721A.pdf, 4. RCI Invoice 1721B.pdf, 5. Risk Approved COI - Ranch_Cryogenics_6-6-23_to_6-6-24.pdf, 6. PFY-2302619.pdf, 7. Term Sheet - Ranch Cryogenics Inc.pdf

Title

A Resolution Of The City Commission Of The City Of Hollywood, Florida, Ratifying The City Manager’s Approval Of A Purchase Order With Ranch Cryogenics, Inc. For The Emergency Repair And System Restoration Of The Southern Regional Wastewater Treatment Plant Cryogenic Plant In An Amount Up to $361,558.01, In Accordance with Section 38.41(C)(1) Of The City’s Procurement Code. (Emergency Purchases)

 

Strategic Plan Focus

Infrastructure & Facilities

 

 

Body

 

Staff Recommends:  Approval of the attached Resolution.

 

 

Explanation:

The Department of Public Utilities urgently needed to procure vendor services for the repair and system restoration of the cryogenic plant at the Southern Regional Waste Water Treatment Plant (“SRWWTP”).  On April 12, 2023, the City of Hollywood received over 24 inches of rain in less than one day.  This extraordinary weather event caused unprecedented effluent flows to the SRWWTP treatment system.  These high flows overwhelmed the cryogenic plant systems, causing it to shut down.  The cryogenic plant produces liquid oxygen (“LOX”), which is essential to the biodegradation of sewage at the SRWWTP. 

 

Once the cryogenics system went into emergency shut-down mode, it could only be safely restarted with the assistance of specialized cryogenics repair services from Ranch Cryogenics, Inc.  The SRWWTP cannot properly treat influent flows without LOX.  The facility permit would also be in noncompliance and the public health and safety jeopardized, without a reliable LOX supply.

 

Section 38.41(C)(1) of the Procurement Code exempts from competitive bid and competitive proposals emergency purchases that receive prior administrative approval except for the most urgent situations presenting a clear and present substantial threat to life or property where immediate action is required.

 

City Manager memorandum PU-23-78-b authorized the repair of the cryogenic plant at the SRWWTP.

 

The Department Director and the Chief Procurement Officer recommend that the City Commission ratify the City Manager’s approval of the issuance of Purchase Order PFY-2302619 to Ranch Cryogenics, Inc., for emergency plant repairs and system restoration services in an amount up to $361,558.01.

 

 

Fiscal Impact:

Funding for the emergency repair and system restoration of the SRWWTP cryogenic plant was included in the amended FY 2023 Capital Improvement Plan and is available in account number 442.409903.53600.563020.00704.000.000.

 

 

Recommended for inclusion on the agenda by:

Kassandra Myers, Assistant Director, Department of Public Utilities

Vincent Morello, P.E., Director, Department of Public Utilities

Gus Zambrano, Assistant City Manager/Sustainable Development

 

Attachments:

                     Resolution Ranch Cryogenics

                     Risk Approved COI

                     RCI Invoice 1721A

                     RCI Invoice 1721B

                     Memo PU-23-78b

                     PFY-2302619