Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Issue The Attached Blanket Purchase Order Renewing The Agreement Between Shrieve Chemical Company And The City Of Hollywood For The Supply Of Sulfuric Acid In An Estimated Annual Amount Of $430,000.00.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Department of Public Utilities requires the supply of sulfuric acid, used by the City’s Water Treatment Plant for the membrane treatment process to reduce plating (thin layer) of the membranes.
The required sulfuric acid has been competitively bid by the City of Deerfield Beach, Florida acting as lead agent for the Southeast Florida Governmental Cooperative Purchasing Group (Bid Number 2012-13/18).
The City of Deerfield Beach, Florida acting as lead agent for the Southeast Florida Governmental Cooperative Purchasing Group awarded its Bid Number 2012-13/18 to Shrieve Chemical Company for the supply of sulfuric acid for a three (3) year period with three (3) additional one (1) year renewal periods.
The City of Deerfield Beach, Florida exercised the first renewal option on May 31, 2016 providing a new expiration date of May 31, 2017.
The City of Deerfield Beach, Florida exercised the second renewal option on February 21, 2017 providing a new expiration date of May 31, 2018.
On June 19, 2013, the City Commission of the City of Hollywood passed and adopted Resolution Number R-2013-156, authorizing the issuance of blanket purchase order (B002487) in the amount of $430,000.00 to Shrieve Chemical Company for the supply of sulfuric acid in accordance with the City of Deerfield Beach, Florida (Bid Number 2012-13/18), for a three (3) year period with three (3) additional one (1) year renewal periods.
On July 6, 2016, the City Commission of the City of Hollywood passed and adopted Resolution Number R-2016-204 exercising the first renewal option.
The sulfuric acid base price shall be adjusted quarterly, based upon the Green Markets Tampa Price Sulfur Index as availability of sulfur depletes and the cost rises it is necessary for Shrieve Chemical Company to adjust the sulfuric acid base price.
The Director of Public Utilities and the Director of Procurement & Contract Compliance recommend that the City Commission approve the second renewal of the attached blanket purchase order to Shrieve Chemical Company for the supply of sulfuric acid, in an estimated annual amount of $430,000.00.
Section 38.48 (C) (1) of the Purchasing Ordinance provides that, when a contract entered into by the city pursuant to City Commission approval provides for one or more renewals by affirmative action of the city and the estimated annual cost of a renewal exceeds $250,000.00, only the City Commission is authorized to approve such renewals.
Funding for the attached blanket purchase order has been provided for in the fiscal year 2017 budget in the Department of Public Utilities Chemical Account Number 42.4011.00000.536.005233 and funding will be requested in subsequent fiscal years.
Recommended for inclusion on the agenda by:
Dr. Wazir Ishmael, City Manager
Gus Zambrano, ACM, Sustainable Development
George R. Keller, Jr., ACM, Finance & Administration
Steve Joseph, Director, Public Utilities
Paul Bassar, Director & Contract Compliance, Procurement Services