Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing Appropriate City Officials To Issue A Purchase Order To Ranch Cryogenics, Inc. For Services Related To Cryogenic Plant Reboiler Condenser Heat Exchanger Replacement, Located At The Southern Regional Wastewater Treatment Plant, In The Amount Of $683,912.50; Increasing The Amount Of Blanket Purchase Order B002566 With Airgas Inc. By An Additional Amount Of $300,000.00 For Liquid Oxygen Supply During The Project; Approving An Amendment To The Fiscal Year 2019 Capital Improvement Program. (Project No. 18-9418)
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City of Hollywood, Department of Public Utilities operates a Cryogenic Plant at the Southern Regional Wastewater Treatment Plant (“SRWWTP”), located at 1621 North 14th Avenue, Hollywood, Florida.
The Cryogenic Plant produces the daily pure oxygen supply necessary to meet the biological process related to the treatment of wastewater.
Solutionwerks Inc., who was authorized to perform the mandated five-year turnaround maintenance work for the Cryogenic Plant pursuant to Resolution No. R-2016-329, discovered a leak in the system during their work in August 2017.
Solutionwerks Inc. performed additional investigation and determined the actual leak was from the ruptured reboiler condenser heat exchanger.
A purchase order was issued to Solutionwerks Inc. in an amount of $113,677.50 for the purchase of a reboiler-condenser heat exchanger pursuant to Resolution No. R-2018-265.
On January 3, 2019, the Department of Public Utilities staff prepared bid documents and advertised the project, soliciting qualified construction services for the Cryogenic Plant reboiler-condenser heat exchanger replacement, and on February 5, 2019 two bid proposals were received at the Office of the City Clerk and were publicly opened at the SRWWTP with the following results:
NO. BIDDER BID TOTAL (BASE BID
AND ALTERNATE BID)
1 Ranch Cyrogenics, Inc. $683,912.50
2 Solutionwerks, Inc. $757,710.00
After thoroughly evaluating the bid proposals for compliance with the contract documents, City staff determined that the lowest bidder, Ranch Cryogenics, Inc., is the lowest responsive and responsible bidder.
A Notice of Intent to Award related to the project was posted on the City of Hollywood’s website and in DemandStar on February 12, 2019 and resulted in no bid protests.
The City has a Blanket Purchase Order (BPO) No. PA 600006 with Airgas Inc. in an estimated annual amount of $291,450.00 for liquid oxygen (“LOX”) supply during down time of routine Cryogenic Plant maintenance.
In order to guarantee continuation of the mandated wastewater treatment process at the SRWWTP during the estimated twenty days of Cryogenic Plant down time as required for the project, the SRWWTP must supplement the cryogenic processes using an approximate additional sixty loads of LOX estimated at a cost of approximately $300,000.00.
It is necessary to increase the amount of BPO No. PA 600006 by an additional $300,000.00 for the additional LOX supply needed for the project and funding for this expenditure will proceed from the project capital account listed below.
The Administration recommends that the City Commission authorize issuance of a purchase order to Ranch Cryogenics, Inc. in an amount of $683,912.50 for the Cryogenic Plant reboiler-condenser heat exchanger replacement project, and to increase the amount of BPO No. PA 600006 with Airgas Inc. by $300,000.00 for the additional LOX needed for the project.
It is necessary to amend the approved FY2019 Capital Improvements Program as set forth in Exhibit “A”.
The estimated construction time for this project is 90 calendar days from the Notice to Proceed date.
Recommended for inclusion on the agenda by:
Clece Aurelus, Engineering Support Services Manager, Department of Public Utilities
Francois Domond, Interim Director, Department of Public Utilities
Gus Zambrano, Assistant City Manager/Sustainable Development