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MOTION TO APPROVE THE PURCHASE OF HYDROFLUOSILICIC ACID ON AN AS NEEDED BASIS FROM HAWKINS WATER TREATMENT GROUP, INC., UTILIZING THE SOUTHEAST FLORIDA GOVERNMENTAL COOPERATIVE PURCHASING GROUP (CO-OP) BID #19-C-020F FOR AN ESTIMATED ANNUAL AMOUNT NOT TO EXCEED $51,940 PURSUANT TO SECTION 35.18(C)(6) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On February 4, 2015, the City Commission adopted proposed resolution # 2015-R-03 to approve the agreement with Operations Management International, Inc. for the Operation, Maintenance and Management of the City Utility System and Customer Service, Meter Reading and Utility Billing Services.
2. As part of this agreement with Operations Management International, Inc., the City is responsible for providing chemicals for the operation of the Utilities Division.
3. The City of Pembroke Pines Utilities Division utilizes Hydrofluosilicic Acid as part of the Water Treatment process conducted at the Water Treatment Plant.
4. On May 1, 2019, the City Commission approved the purchase of Hydrofluosilicic Acid on an as needed basis from Univar USA, Inc. utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) Bid #19-C-020F with the City of Coral Springs as the lead agency for an estimated amount not to exceed $51,940 per year.
5. Recently, Univar USA, Inc. has decided to opt out of the current Southeast Florida Governmental Purchasing Cooperative (Co-Op) for Bid (IFB) # 19-C-020F for Hydrofluosilicic Acid (smaller users) because of delivery issues.
6. Since then, the City of Coral Springs, the lead agency for the Southeast Florida Governmental Purchasing Cooperative (Co-Op), issued an Invitation for Bid #19-C-020F for Hydrofluosilicic Acid (small users).
7. Hawkins Water Treatment Group, Inc. submitted a bid for the same cost as Univar for the same product.
8. On August 22, 2019, the City of Coral Springs agreed to enter into an agreement with Hawkins Water Treatment Group, Inc. for an initial two (2) year period beginning August 19, 2019, with two (2) additional two (2) year renewal periods, for the purchase of Hydrofluosilicic Acid at the same cost as the previous contract with Univar, $2.94 per gallon for less than truck loads.
9. Pursuant to Section 35.18(C)(6) of the City’s Procurement Code; Cooperative purchasing plans are exempt from competitive bidding.
10. The City of Pembroke Pines uses approximately 17,666 gallons of Hydrofluosilicic Acid per year.
11. Recommend City Commission approval for the purchase of Hydrofluosilicic Acid on an as needed basis from Hawkins Water Treatment Group, Inc. utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) BID #19-C-020F for an estimated annual amount not to exceed $51,940 pursuant to Section 35.18(C)(6) of the City’s Code of Ordinances which is the same cost as the previous contract with Univar.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $51,940
b) Amount budgeted for this item in Account No: $51,940 in account # 471-533-6031-52430 (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: This agreement is for a two (2) year period, beginning August 19, 2019 with two (2) additional two (2) year renewal options.
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Revenues |
N/A |
N/A |
N/A |
N/A |
N/A |
Expenditures |
$51,940 |
$51,940 |
N/A |
N/A |
N/A |
Net Cost |
$51,940 |
$51,940 |
N/A |
N/A |
N/A |
e) Detail of additional staff requirements: Not applicable.