Title
MOTION TO APPROVE THE PURCHASE OF AMMONIA SULFATE 40% FROM HAWKINS, INC. ON AN AS-NEEDED BASIS UTILIZING PRICING ESTABLISHED IN BROWARD COUNTY’S SOLICITATION # OPN2126118B1, FOR AN ANNUAL AMOUNT NOT TO EXCEED $41,650, 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% (AS400) at the Holly Lakes water system booster pumping station as part of the disinfection process for drinking water.
3. The City previously purchased Ammonia Sulfate 40% (AS400) from Hawkins, Inc. utilizing an agreement established by the City of Palm Coast Solicitation # ITB-UT-22-45. This agreement expired on August 10, 2025, and was brought to the City Commission on April 2, 2025 via the Contract Database Report as a non-renewal item because the agreement exhausted all of its renewal options.
4. On June 19, 2023, Broward County entered into an agreement to award Bid No. OPN2126118B1 "Liquid Ammonium Sulfate" to Hawkins Inc. The agreement term is for one-year with four (4), one-year renewal periods. The subject agreement is in its second renewal term valid through June 18, 2026.
5. The contract provides for a price of $5.95 per gallon of Liquid Ammonium Sulfate (AS400) and the Utilities staff estimates that the annual consumption of AS400 based on usage is approximately 7,000 gallons, resulting in an anticipated annual cost of $41,650.
6. Recommend City Commission to approve the purchase of Ammonia Sulfate 40% from Hawkins, Inc. on an as-needed basis utilizing pricing established in Broward County’s solicitation # OPN2126118B1, for an annual amount not to exceed $41,650, pursuant to Section 35.18(C)(5) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $41,650 annually. ($5.95 per gallon x 7,000 gallons)
b) Amount budgeted for this item in Account No: Funds are 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: The agreement term is for one-year with four (4), one-year renewal periods and is in its second renewal term valid through June 18, 2026. The Utilities Department estimates the need for 7,000 gallons annually, as a result below is the estimated breakdown per fiscal year, however the amounts may vary due to the actual demand:
|
|
FY 2025 |
FY 2026 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$4,760 |
$36,890 |
|
|
|
|
Net Cost |
$4,760 |
$36,890 |
|
|
|
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.