Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Change Order To Blanket Purchase Agreement PA600686 With Airgas USA, LLC For The Supply And Delivery Of Liquid Oxygen To Increase The Contract Amount From $498,000.00 To $1,200,000.00.
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Utilities is seeking to increase PA600686 contract amount from $498,000.00 to $1,200,000.00. This increase is necessary to support critical operational demands, including annual preventive maintenance (turnaround), essential maintenance activities, and preparations for upcoming cryogenic plant valve repairs, all of which require more Liquid Oxygen (“LOX”) load delivery than originally anticipated. Under the original Blanket Purchase Agreement (“BPA”) the $298,000.00 was not sufficient due to emergency system repairs related to an electronic system failure. The electronic system complications required additional LOX to maintain system equilibrium; thus, the change order was initiated and approved under Resolution No. R-2025-016.
As the Wastewater Treatment Plant prepares for the February 2026 turnaround, a proposal and timeline have been submitted that include repairing and replacing several valves within the cryogenic plant production system. These additional activities will extend the turnaround and repair period beyond the normal duration, increasing the need for LOX deliveries and necessitating the contract amount increase requested herein.
Oxygen is a crucial component for achieving optimal efficiency in the plant’s treatment process. As the cryogenic plant approaches its scheduled annual maintenance, additional oxygen supplies are required to ensure continued operational stability. During this maintenance period, a backup gas supply is needed to support the oxygenation trains, enabling the plant to maintain effective treatment operations despite the temporary shutdown of the primary system.
The current funds available under PA600686 are insufficient to meet these heightened oxygen demands. Without the requested change order, the City risks operational disruptions and reductions in treatment efficiency, which would affect public health and safety.
Fiscal Impact:
Funding for the proposed $702,000.00 increase is available in the FY 2026 Operating Budget in account number 442.400601.53600.552330.000000.000.000.
Recommended for inclusion on the agenda by:
Vincent Morello, Director, Public Utilities
Chris O’Brien, Director, Public Safety