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File #: R-2023-272    Version: 1 Name: Airgas LOX 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 Airgas USA, LLC For The Emergency Provision And Delivery Of Liquid Oxygen To The Southern Regional Wastewater Treatment Plant In An Amount Up To $300,000.00 In Accordance With Section 38.41(C)(1) Of The City's Procurement Code (Emergency Purchases).
Attachments: 1. Airgas LOX Ratification Reso, 2. Airgas COI Risk Approval.pdf, 3. PU-23-78a Airgas Emergency CM Memo.pdf, 4. CM Memo Airgas Payments.pdf, 5. Term Sheet - Airgas USA LLC.doc final JB.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 Airgas USA, LLC For The Emergency Provision And Delivery Of Liquid Oxygen To The Southern Regional Wastewater Treatment Plant In An Amount Up To $300,000.00 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:

 

On Wednesday, April 12, 2023, the City of Hollywood received over 18 inches of rain in less than one day. This extraordinary weather event caused unprecedented amounts of influent to enter the Southern Regional Wastewater Treatment Plant (“SRWWTP”) treatment system, resulting in the shutdown of the cryogenic plant (which produces oxygen).  Liquid Oxygen (“LOX”) is critical to the treatment process and essential for permit compliance.  The Department of Public Utilities urgently needed to procure LOX for use at the SRWWTP while the cryogenic plant was under repair. 

 

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-23-78a had authorized the repair of the cryogenic plant at the SRWWTP.  The repairs were estimated to take between 15 and 25 days.  During the repair process, bulk LOX was procured from AIRGAS USA, LLC, by the tanker load, two to three times daily at a cost of $6,665 per load.  At the time of the emergency AIRGAS USA, LLC was the intended Awardee for Solicitation IFB-050-23-JJ 2023, an open competitively bid contract.  The award for solicitation IFB-050-23-JJ 2023 was awarded on 06/07/2023; this contract is to be used for non-emergency oxygen supply. 

 

 

Fiscal Impact:

 

Funding for this purchase order was included in the amended FY 2023 Capital Improvement Plan and is available in account number 442.409903.53600.563020.000704.000.000.

 

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 Airgas (LOX)

                     Risk Approved COI

                     Memo PU-23-78a

                     Payment Spreadsheet