Title
MOTION TO APPROVE THE PURCHASE OF SWIMMING POOL CHEMICALS (LIQUID CHLORINE - SODIUM HYPOCHLORITE) FOR THE RECREATION & CULTURAL ARTS DEPARTMENT FROM FLORIDA POOL FILLS, INC., UTILIZING PRICING ESTABLISHED BY THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING GROUP (CO-OP) BID NUMBER 23-05-12-HR, IN AN ANNUAL ESTIMATED AMOUNT OF $35,000, PURSUANT TO SECTIONS 35.18(C)(6) AND 35.28(B) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "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)(6) states that, "Cooperative purchasing plans 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."
- Section 35.15 defines CHANGE ORDER. "Changes, due to unanticipated conditions or developments, made to an executory contract, which do not substantially alter the character of the work contracted for, and which do not vary so substantially from the original specifications as to constitute a new undertaking. The changes must reasonably and conscientiously be viewed as being in fulfillment of the original scope of the contract rather than as departing therefrom. Further, the changes, when viewed against the background of the work described in the contract and the language used in the specifications, must clearly be directed either to the achievement of a more satisfactory result or the elimination of work not necessary to the satisfactory completion of the contract."
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(B) states that "Notwithstanding the provisions of (A) above, the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission's approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000.
SUMMARY EXPLANATION AND BACKGROUND:
1. The Recreation & Cultural Arts Department uses Liquid Chlorine (Sodium Hypochlorite) to maintain and service their various swimming pools throughout the City.
2. On March 14, 2023, the City of Sunrise, as the lead agency for the Southeast Florida Governmental Purchasing Cooperative Group (Co-Op), awarded Bid No. 23-05-12-HR, "Swimming Pool Chemicals" to four vendors for specific line items. Line Item # 10b for Sodium Hypochlorite-Continuous (Liquid Chlorine with no minimum order quantity, was awarded to Florida Pool Fills, Inc. at a unit price of $1.74 per gallon, for an initial one-year period from March 26, 2023, through March 24, 2024, with two (2) one-year renewal options. The agreement has been renewed for the first renewal option through March 26, 2025.
3. The Recreation & Cultural Arts Department originally estimated their annual needs for the 2023-24 fiscal year to be under $25,000. As a result, their current requisition is for $24,360; however, they need an additional $2,784 to pay for the remainder of their orders in the 2023-24 fiscal year. This would increase their total to $27,144 and would exceed the City Manager’s allowed threshold of $25,000, requiring commission’s approval.
4. As a result, the Recreation & Cultural Arts Department would like to request for Commission to approve the purchase of swimming pool chemicals (liquid chlorine - sodium hypochlorite) from Florida Pool Fills, Inc., utilizing pricing established by the Southeast Florida Governmental Purchasing Group (Co-Op) bid number 23-05-12-HR, in an annual estimated amount of $35,000, pursuant to sections 35.18(C)(6) and to process the required change order pursuant to Section 35.28(B) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Estimated annual cost $35,000, which may fluctuate up or down based on actual needs.
b) Amount budgeted for this item is in Account No: Funds are available in account: # 001-572-7001-552480-0000-000-0000 (Pool Chemicals)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: The agreement is for an initial one-year period from March 26, 2023, through March 24, 2024, with two (2) one-year renewal options. The agreement has been renewed for the first renewal option through March 26, 2025.
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|
FY 2022-23 |
FY 2023-24 |
FY 2024-25 |
FY 2025-26 |
FY 2026-27 |
|
Revenues |
N/A |
N/A |
N/A |
N/A |
N/A |
|
Expenditures |
$35,000 |
$35,000 |
$35,000 |
N/A |
N/A |
|
Net Cost |
$35,000 |
$35,000 |
$35,000 |
N/A |
N/A |
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.