Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute The Third Renewal And Change Order To Blanket Purchase Agreement PA600686 With Airgas, Inc Dba Airgas USA, LLC For The Supply And Delivery Of Liquid Oxygen For The Period From June 1, 2026, To May 31, 2027, Increasing The Contract Amount From $298,000.00 To $900,000.00.
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 June 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 Liquid Oxygen (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 the First Optional Renewal of PA600686 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 up to $298,000.00 to $498,000.00. The change order was requested due to unanticipated repairs that required additional LOX deliveries.
On May 21, 2025, the City Commission passed and adopted Resolution No. R-2025-154 approving the Second Optional Renewal of PA600686 in an amount up to $498,000.00 from June 1, 2025, to May 31, 2026.
Additional repairs and the five-year full maintenance services for the Cryogenic Oxygen Plant prompted an increase in the contract amount from $498,000.00 to $1,200,000.00 to provide LOX during that critical maintenance task. On February 4, 2026, the City Commission passed and adopted Resolution No. R-2026-035 approving a Change Order to PA600686.
As industry-wide costs associated with the production and delivery of LOX continue to escalate, and given the increased consumption required during extended maintenance periods at the SRWWTF, it is prudent for the Department to maintain the elevated annual renewal amount. In anticipation of these ongoing cost pressures, the Department recommends sustaining the annual not‑to‑exceed amount of $900,000.00 to ensure the uninterrupted availability of LOX necessary to support all current and forthcoming maintenance activities, including cryogenic plant upgrades and enhanced preventive maintenance initiatives.
The Department Director recommends that the City Commission approve and authorize the third renewal of BPA PA600686 with Airgas, Inc DBA Airgas USA, LLC in an annual amount up to $900,000.00 from June 1, 2026, to May 31, 2027.
Fiscal Impact:
A portion of the funding for this service is available in the FY 2026 Operating Budget in account number 442.400601.53600.552330.000000.000.000 and will be budgeted in subsequent fiscal years’ operating budget subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Vincent Morello, Director, Department of Public Utilities
Chris O’Brien, Director of Public Safety