Title
MOTION TO RATIFY THE CITY MANAGER’S APPROVAL TO CONTINUE UTILIZING THE PRICING FROM THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING COOPERATIVE GROUP CONTRACT #T-11-23 TO PURCHASE APPROXIMATELY 60 TONS OF CARBON DIOXIDE PER MONTH FROM AIRGAS USA, LLC. FROM MARCH 1, 2026 UNTIL THE NEW AGREEMENT IS AWARDED, AND TO AWARD THE NEW AGREEMENT FOR IFB # PSUT-25-15 “CARBON DIOXIDE LIQUID BULK DELIVERY” TO THE MOST RESPONSIVE/RESPONSIBLE BIDDER, AIRGAS USA, LLC., IN AN ANNUAL AMOUNT NOT TO EXCEED $360,150, PURSUANT TO SECTIONS 35.18(C)(6) AND 35.29(C).
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines an Invitation for Bid as “A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the commodities or services for which bids are sought. The invitation for bid shall be used when the city is capable of specifically defining the scope of work for which a service is required or when the city is capable of establishing precise specifications defining the actual commodities required. The invitation for bid shall include instructions to bidders, plans, drawings and specifications, if any, bid form and other required forms and documents to be submitted with the bid.”
- 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(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $100,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.18(C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states "All sealed competitive solicitations as defined in § 35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- 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.”
- Section 35.29 of the City's Code of Ordinances is titled "TERM, TERMINATION, EXTENSION AND RENEWAL OF CONTRACTS."
- Section 35.29(C) of the City’s Code of Ordinances is titled "Extensions."
- Section 35.29(C) states that "The City Manager or his or her designee is authorized to extend, for operational purposes only, and for a maximum of 180 days, any contract previously approved by the City Commission and entered into by the city. Any further extensions of the contract require the approval of the City Commission."
SUMMARY EXPLANATION AND BACKGROUND:
1. As part of the Jacobs/OMI agreement, the City is responsible for providing chemicals for the operation of the water and wastewater systems. The Utilities Department utilizes Carbon Dioxide (CO2) as part of the water treatment process for pH adjustment at the Water Treatment Plant.
2. On February 5, 2025, the City Commission approved the final renewal of the Southeast Florida Co-Op Agreement #T-11-23 which extended the contract with Airgas USA, LLC. to February 28, 2026. The price for CO2 delivered to the Water Treatment Plant was $0.285/LB or $570/TN.
Moreover, on November 19, 2025, the City Commission approved the Contract Database Report agenda item. This report includes notification-only items identifying contracts that user departments do not intend to renew and that do not require Commission Action. As part of the process, notice was provided that the Southeast Florida Co-Op Agreement #T-11-23 would not be renewed as it had no more renewal options and was scheduled to expire February 28, 2026.
3. On December 11, 2025, the City Commission authorized the advertisement of IFB PSUT-25-15 “Carbon Dioxide Liquid Bulk Delivery,” which was advertised December 16, 2025.
4. The purpose of the solicitation is to purchase liquid carbon dioxide on an as-needed basis, in accordance with the terms, conditions, and specifications contained in the solicitation.
5. On January 20, 2026, the City opened two (2) bids from the following vendors:
|
Vendor |
Qty. |
Unit Cost |
Total |
|
Airgas USA, LLC |
735 Tons |
$490.00 |
$360,150 |
|
Matheson Tri-Gas, Inc. |
735 Tons |
$626.00 |
$460,110 |
6. The Utilities Department reviewed the bids and determined that Airgas USA, LLC to be the most responsive and responsible bidder.
During the contracting process, Airgas USA, LLC raised concerns regarding the insurance requirements outlined in the solicitation. While the vendor ultimately accepted the City’s insurance requirements, the negotiations and submission of proof of insurance resulted in delays in finalizing the award.
7. On March 1, 2026, the City Manager approved the Utilities Department to continue purchasing CO2 under the terms of the Southeast Florida Co-Op Agreement #T-11-23 until the award of IFB# PSUT-25-15 is approved by the City Commission.
8. Request City Commission to award IFB #PSUT-25-15, “Carbon Dioxide Liquid Bulk Delivery,” to the most responsive/responsible bidder, Airgas USA, LLC in the annual amount not to exceed $360,150.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $360,150
b) Amount budgeted for this item 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 is for an initial two-year period, with two additional two-year renewal terms. The cost(s) shall remain firm for the initial twelve (12) month period of the contract term. Any requested cost increase shall be subject to adjustment only if increases occur in the industry. Any requested cost increase shall be fully documented and submitted to the City at least ninety (90) days prior to the end of the initial twelve (12) month period. Any approved cost adjustments shall become effective after the initial twelve (12) month period. Cost adjustments may be requested no more frequently than every twelve (12) months and any requested cost adjustment must be submitted at least ninety (90) days prior to the beginning of any twelve (12) month period. The breakdown below is for the initial two years of the contract, based on the 5 remaining months in the current fiscal year and assuming no cost adjustment after year one.
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$150,100 |
$360,150 |
$210,050 |
|
|
|
Net Cost |
$150,100 |
$360,150 |
$210,050 |
|
|
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.