Title
MOTION TO APPROVE THE AGREEMENT BETWEEN THE CITY OF PEMBROKE PINES AND HAWKINS, INC. FOR THE PURCHASE OF SODIUM HYPOCHLORITE 12.5 % ON AN AS NEEDED BASIS UTILIZING PRICING FROM THE PUNTA GORDA CONTRACT # Q2020110, FOR AN ANNUAL AMOUNT NOT TO EXCEED $38,220, 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. Part of the agreement with Operations Management International, Inc., the City is responsible for providing chemicals for the operation of the Utilities Division.
2. The City of Pembroke Pines Utilities Division utilizes Sodium Hypochlorite 12.5% as part of the Water Treatment process conducted at the Water Treatment Plant.
3. The current Piggy-Back Agreement with Charlotte County and Hawkins Water Treatment Group, Inc. is set to expire December 11, 2021.
4. On January 26, 2021, the City of Punta Gorda entered into an agreement with Hawkins, Inc., pursuant to Solicitation #Q2020110, entitled “Chemicals for Bal Harbor Booster Station,” for the provision of water treatment chemicals commencing on February 1, 2021 for a three (3) year term, which allows for an additional term of three (3) years.
5. The City has evaluated the City of Punta Gorda Solicitation #Q2020110 and the agreement with Hawkins, Inc. and the City desires to engage Hawkins, Inc. to provide Sodium Hypochlorite 12.5% utilizing the same terms and pricing for a period commencing December 12, 2021 and ending January 31, 2024 with the option for an additional renewal of one (1) three (3) year term.
6. The City is estimating 12,000 gallons of Sodium Hypochlorite 12.5% at the Water Treatment Plant Academic Village Location at a cost of $1.47 per gallon totaling an estimated annual amount of $17,640.
7. On October 6, 2021, the City Commission approved the purchase of Sodium Hypochlorite 12.5% from Allied Universal Corp. on an as needed basis utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op)Bid # 12525-312 in an annual amount not to exceed $285,720.60, pursuant to Section 35.18(C)(6) of the City's Code of Ordinances. The tankers that distribute the Sodium Hypochlorite for Allied Universal Corp. are too large to deliver to the City's site at the Academic Village, and that is why the Utilities Division is seeking approval to purchase Sodium Hypochlorite 12.5% from Hawkins for the Academic Village location.
7. Recommend City Commission to approve the agreement between the City of Pembroke Pines and Hawkins, Inc. for Sodium Hypochlorite 12.5% on an as needed basis utilizing pricing from the Punta Gorda contract # Q2020110, for an annual amount not to exceed $38,220, pursuant to Section 35.18(C)(5) of the City’s code of ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $38,220 (12,000/gallons x $1.47/gallon = $17,640 Annually)
b) Amount budgeted for this item in Account No: $14,700 for FY2021-22 ($1,470/month x 10 remaining months) is 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:
|
|
Dec. 2021-Sep. 2022 |
Oct. 2022-Sep. 2023 |
Oct. 2023-Feb. 2024 |
Year 4 |
Year 5 |
|
Revenues |
N/A |
N/A |
N/A |
N/A |
N/A |
|
Expenditures |
$14,700 |
$17,640 |
$5,880 |
N/A |
N/A |
|
Net Cost |
$14,700 |
$17,640 |
$5,880 |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable.