Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Increase The Attached Blanket Purchase Order, B002566, Between Air Liquide Industrial U.S. LP And The City Of Hollywood For The Emergency Supply Of Liquid Oxygen By An Estimated Additional Annual Expenditure Of $300,000.00 For Total Estimated Annual Expenditure Of $454,620.00.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Department of Public Utilities operates and maintains an oxygen generation cryogenic plant as an integral and necessary part of operating the Southern Regional Wastewater Treatment Facility.
The Department of Public Utilities required an emergency supply of pure liquid oxygen to continue the wastewater treatment process in the event of mechanical failures resulting in prolonged shutdown of the facility.
The City of Fort Lauderdale awarded through the competitive bid process Bid Number 442-11330 for the supply of liquid oxygen to Air Liquide Industrial U.S. LP.
Purchasing Ordinance, Section 38.40 (C)(5) allows the Director to procure, without following formal procedures, all goods and services which are subject of contracts with the state, its political subdivisions, the United States government, other governmental entities, or a corporation not for profit whose members are governmental entities, public officers, or any combination thereof, provided however, the goods and services are: (i) the subject of a price schedule negotiated by the state or the United States government, or (ii) the subject of a contract with another governmental entity or a corporation not for profit whose members are governmental entities, public officers, or any combination thereof, which contract is based strictly on competitive bids or competitive proposals and not on any preference.
On April 2014, the Hollywood City Commission approved resolution R-2014-80 and authorized the issuance of Blanket Purchase Order B002566 between the City of Hollywood and Air Liquide Industrial U.S. LP for the supply of liquid oxygen for an estimated annual expenditure of $154,620.00.
On October 17, 2014, during routine maintenance operations at the oxygen generation cryogenic plant a component of the plant malfunctioned which had an impact on the plant's capabilities to produce the necessary liquid oxygen.
On October 22, 2014, it was determined that one of the main components, the coldbox, has an internal leak and would significantly increase the need for an emergency supply of liquid oxygen until emergency repairs could be completed and the oxygen generation plant operations could be fully restored.
Air Liquide Industrial U.S. LP has provided the City of Hollywood with pure liquid oxygen in the past with satisfactory results and confirmed that they are capable of meeting the significant increased demand created by this emergency.
The Director of Public Utilities and the Director of Procurement Services recommend that the City Commission approve increasing the attached Blanket Purchase Order to Air Liquide Industrial U.S. LP of Orlando, Florida, for the purchase of pure liquid oxygen on an emergency basis by estimated additional annual expenditure of $300,000.00 for a total estimated annual amount of $454,620.00.
Funding for the attached blanket purchase order has been provided for in the fiscal year 2015 budget in the Department of Public Utilities Account Number 42.4041.00000.536.005233.
Recommended for inclusion on the agenda by:
Cathy Swanson-Rivenbark, City Manager
Matthew Lalla, Director, Financial Services
Steve Joseph, Director, Public Utilities
Joel Wasserman, Director, Procurement Services