Title
MOTION TO APPROVE THE PURCHASE OF QUICKLIME FROM LHOIST NORTH AMERICA OF ALABAMA, LLC., ON AN AS-NEEDED BASIS, UTILIZING PRICING ESTABLISHED BY THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING GROUP (CO-OP) BID NO. 23-36B IN AN ANNUAL AMOUNT NOT TO EXCEED $1,720,775 FOR FY 2024-25, AND $1,892,835 FOR FY 2025-26, PURSUANT TO SECTION 35.18(C)(6) 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 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)(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. In accordance with the City's Utilities Operations and Management Agreement with Jacobs/OMI, the City is responsible for providing chemicals for the operation of the Utility.
2. The Utilities Department uses calcium oxide, also known as quicklime, as part of the treatment process at the City's water treatment plant.
3. On October 11, 2023, the City of Tamarac, as the lead agency for the Co-Op, awarded Bid No. 23-36B, "Furnish, Deliver and Discharge of Quicklime" to Lhoist North America of Alabama, LLC., for a three-year period commencing on November 1, 2023, and ending on October 31, 2026, with one (1) three-year renewal option.
4. The three-year agreement with Lhoist provides for the following annual per ton unit rates for foundry/rice lime delivered to the City of Pembroke Pines:
|
|
11/1/23-10/31/24 |
11/1/24-10/31/25 |
11/1/25-10/31/26 |
|
Delivered Price Per Ton |
$ 446.95 |
$ 491.65 |
$ 540.81 |
However, please note that the agreements also provide for quarterly adjustments for fuel surcharges.
5. On November 1, 2023, the City Commission approved to purchase Quicklime on an as needed basis from Lhoist North America of Alabama, LLC. utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) Bid #23-36B in the amount of $1,564,325.
6. The City's water treatment plant uses approximately 3,500 tons of quicklime per year, yielding an estimated total annual expense of $1,720,775.00 in FY 2025 and $1,892,835.00 in FY 2026.
7. Staff recommends City Commission approval to purchase of quicklime from Lhoist North America of Alabama, LLC., on an as-needed basis, utilizing pricing established by the Southeast Florida Governmental Purchasing Group (Co-Op) Bid No. 23-36B in an annual amount not to exceed $1,720,775 for FY 2024-25, and $1,892,835 for FY 2025-26, pursuant to Section 35.18(C)(6) of the City's Code Of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $1,720,775 for FY 2024-25, and $1,892,835 for FY 2025-26.
b) Amount budgeted for this item in Account No: Funds will be budgeted in Account no. 471-533-6031-552430-0000-000-0000- (Operating chemicals) for the future fiscal years.
c) Source of funding for difference, if not fully budgeted: See above.
d) 5 year projection of the operational cost of the project This item is to approve the purchase of Quicklime in the two (2) upcoming fiscal years.
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
$0.00 |
$0.00 |
$0.00 |
|
|
|
Expenditures |
$0.00 |
$1,720,775.00 |
$1,892,835.00 |
|
|
|
Net Cost |
$0.00 |
$1,720,775.00 |
$1,892,835.00 |
|
|
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.