Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Ratifying The City Manager's Approval Of Two Purchase Orders To Airgas USA, LLC For The Emergency Provision And Delivery Of Liquid Oxygen To The Southern Regional Wastewater Treatment Plant In An Amount Up To $623,894.72 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 August 28, 2023, the Southern Regional Wastewater Treatment Plant ("SRWWTP") cryogenic facility experienced unanticipated, and unexplained, pressure and purity issues during the oxygen production process. SRWWTP staff responded to this emergent situation by securing specialized cryogenics repair services from Ranch Cryogenics, Inc. ("Ranch").
The system evaluation by Ranch required the temporary cessation of oxygen production. SRWWTP therefore arranged for the emergency delivery of Liquid Oxygen ("LOX") from AIRGAS USA, LLC ("Airgas") for use while the cryogenic plant was under diagnostic investigation and repair. Approval for the emergency procurement of LOX, and the issuance of a purchase order to Airgas for the already procured emergency LOX, as well as additional deliveries until the final repairs of the cryogenic system were complete, was secured via City Manager Memo PU-24-09. However, the approved funding of $500,000.00 was exhausted before emergency repairs were finished.
LOX expenditures for the diagnostic and repair shutdown exceeded the amount secured by PU-24-09 by $123,894.72 per provided invoices. DPU requested approval for the issuance of a purchase order to Airgas for the additional amount of $123,894.72 via City Manager Memo PU-24-40.
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 ...
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