Title
MOTION TO APPROVE THE PURCHASE OF AMMONIA SULFATE 40% FROM HAWKINS, INC. ON AN AS-NEEDED BASIS UTILIZING PRICING ESTABLISHED BY THE CITY OF PALM COAST BID NO. ITB-UT-22-45, FOR AN ANNUAL AMOUNT NOT TO EXCEED $38,500.00, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(5) states that “Commodities or services that are the subject of contract with the state, its political subdivisions or other governmental entities including the United States Government, are exempt from this section.
- Section 35.21 of the City’s Code of Ordinances is titled “AWARD OF CONTRACT.”
- Section 35.21(A) of the City’s Code of Ordinances is titled “City Commission approval.”
- Section 35.21(A)(1) states, “An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed.”
SUMMARY EXPLANATION AND BACKGROUND:
1. As part of the Jacobs/OMI function sourcing agreement, the City is responsible for providing chemicals for Utilities operations.
2. The Utilities Department utilizes Ammonia Sulfate 40% at the Holly Lake water system booster pumping station as part of the disinfection process for drinking water.
3. The City's current agreement with Hawkins for ammonia sulfate will naturally expire on June 21, 2024. Thereby the Utilities Department researched other available contracts to continue procuring Ammonia Sulfate 40% as needed.
4. On August 11, 2022, the City of Palm Coast entered into an agreement with Hawkins, Inc. to award Bid No. ITB-UT-22-45 "Chemicals for Water Treatment Plants" to Hawkins Inc. The agreement term was one-year with, two, one-year renewal periods. The City of Palm Coast is currently on their first renewal term which shall expire August 10, 2024. As of May 6, 2024, The City of Plam Coast approved the second renewal of this contract, to commence on August 11, 2024, and expire August 10, 2025, with no further renewals. The second renewal will extend the terms of the original agreement with no changes.
5. Utilities Department Staff has evaluated the City of Palm Coast's Bid No. ITB-UT-22-45 and the agreement with Hawkins, Inc., and has determined that it would be in the City's best interest to engage Hawkins, Inc. to provide ammonia sulfate to the Holly Lake booster station.
6. Staff has estimated that the annual consumption of ammonia sulfate is estimated at 7,000 gallons; at a proposed cost of $5.50 per gallon, totaling an estimated annual amount of $38,500.00.
7. Request the City Commission to approve the purchase of Ammonia Sulfate 40% from Hawkins, Inc. on an as-needed basis utilizing pricing established by the City of Palm Coast Bid No. ITB-UT-22-45, for an annual amount not to exceed $38,500.00, pursuant to Section 35.18(C)(5) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $38,500.00
b) Amount budgeted for this item in Account No: $5,115.00 for the current year is available in Account No. 471-533-6031-552430-0000-000-0000- (Operating Chemicals)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project
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|
Current FY |
Year 2 |
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|
|
Revenues |
$0.00 |
$0.00 |
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|
|
|
Expenditures |
$5,115.00 |
$33,385.00 |
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|
|
|
Net Cost |
$5,115.00 |
$33,385.00 |
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e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.