Title
MOTION TO APPROVE THE PURCHASE OF REPAIR PARTS FOR CITY WASTEWATER LIFT STATIONS ON AN AS-NEEDED BASIS FROM SMITH & LOVELESS, INC. IN AN ANNUAL AMOUNT NOT TO EXCEED $325,000, PURSUANT TO SECTION 35.18(C)(3) 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)(3) states that "City standard, single-source and sole- source commodities or services. City standard, single- source and sole-source commodities or services 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 $100,000, 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. The City’s sewer collection/transmission system includes 198 pumping stations that pump wastewater from homes, businesses, and parks either to the City’s Wastewater Treatment Plant (from property west of Flamingo Road within the city) or to the City of Hollywood for treatment (from property east of Flamingo Road within the city). Each of these stations incorporate numerous mechanical, structural, and electrical parts that require routine maintenance, repairs or replacements.
2. On December 15, 1999, City Commission approved the City’s Engineering Standards Manual that established a City Standard by requiring lift stations manufactured by Smith & Loveless, Inc. (S&L). A single manufacturer was chosen for uniformity of spare parts, efficiency of maintenance, training and engineered alignments which may be necessary at existing facilities. These stations continue to provide satisfactory service when properly maintained.
3. The Utilities Department is responsible for the routine maintenance and repair via the City’s contracted operator, Jacobs-OMI.
4. Staff has determined that directly purchasing lift station parts and equipment for maintenance and repair of these stations is more beneficial than having Jacobs-OMI procure the parts, to avoid the expense of sales tax.
5. Smith & Loveless, Inc. has supplied a letter stating they are “[…] the manufacturer of a full line of wastewater pumping, headwork, screening, and treatment equipment. Smith & Loveless only sells its proprietary equipment and proprietary parts directly to end-users or through sole-source representatives. Smith & Loveless has a long history with even the first S&L pump station sold in 1946 still in operation. Because of this long equipment life cycle, Smith & Loveless spends large portions of its resources in not only providing spare parts but maintaining the knowledge of which parts are now used for every piece of S&L equipment. Smith & Loveless has developed proprietary parts, which can only be purchased with records of the part information kept by S&L thru a unique S&L serial number system. This letter is to certify that Smith & Loveless, Inc. is the sole source for its new equipment, retrofit equipment, and parts […].
6. The Utilities Department's Fiscal Year 2026 budget includes $325,000 for lift station repair parts and equipment. The tax savings for that full budget amount would be approximately $22,750.
7. Staff recommends City Commission approval of the purchase of repair parts for City Wastewater Lift Stations, on an as needed basis, from Smith & Loveless, Inc., in an annual amount not to exceed $325,000, pursuant to Section 35.18(C)(3) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $325,000
b) Amount budgeted for this item in Account No: $325,000 is budgeted in Account No. 471-535-6021-546250-0000-000-0000- (R&M Equipment) in Fiscal Year 2026
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 |
Year 3 |
Year 4 |
Year 5 |
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Revenues |
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Expenditures |
$325,000 |
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Net Cost |
$325,000 |
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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.