Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Ratifying The City Manager’s Approval Of The Issuance Of A Purchase Order To Ranch Cryogenics, Inc., For The Replacement Of The Cryogenic Oxygen Generation Plant Control System In An Amount Up To $400,000.00 Pursuant To 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 (“Department”) Southern Regional Wastewater Treatment Plant (“SRWWTP”) Cryogenic Oxygen Generation Plant (“Cryo Plant”) control system recently began showing signs of failure. This system includes hardware and software that monitors and controls the numerous functions of the Cryo Plant, which produces liquid oxygen essential to the biodegradation of sewage at the SRWWTP. Immediate system replacement was deemed necessary to prevent plant failure due to increasingly alarming signs of impending system collapse during daily maintenance checks. The expander device used to produce oxygen had to be shut down and restarted three times in one week due to issues with control system communications.
The Cryo Plant was designed, and is operated and repaired, by Ranch Cryogenics, Inc. (“Ranch Cryo”). This plant requires a specialized software system to control the cooling and oxygen production processes. The newest available versions of hardware and software will be included in the new control system to provide the longest possible system life. Installation of the new system is projected to take from 8-18 months due to material lead times and the complexity of the project. An emergency procurement process was therefore initiated to allow for equipment to be ordered before the actual failure of the existing system. Waiting longer to begin replacement would not only cost significantly more, it would also jeopardize the SRWWTP treatment process, SRWWTP permit compliance, and public health and safety.
Due to the exigency of this replacement, the Chief Procurement Officer recommends that the City Commission ratify the City Manager’s prior approval of the issuance of an emergency purchase order to Ranch Cryo for the purchase of a replacement control system for the cryogenic oxygen plant in an amount up to $400,000.00.
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.
Fiscal Impact:
Funding for this purchase is available in the FY 2025 Operating Budget in account number 442.400602.53600.552240.000000.000.000.
No additional staff are needed for this resolution.
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