Title
MOTION TO APPROVE THE PURCHASE OF QUICKLIME ON AN AS NEEDED BASIS FROM LHOIST NORTH AMERICA OF ALABAMA, LLC. UTILIZING THE SOUTHEAST FLORIDA GOVERNMENTAL COOPERATIVE PURCHASING GROUP (CO-OP) BID # 20-21B FOR AN ESTIMATED ANNUAL FISCAL YEAR AMOUNT NOT TO EXCEED $1,196,160 (4,200 TONS X $284.80/TON), PURSUANT TO SECTION 35.18(C)(6) 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)(6) states that, "Cooperative purchasing plans are exempt from this section."
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- 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 agreement with Operations Management International, Inc., the City is responsible for providing chemicals for the operation of the Utilities Division.
2. The Utilities Division uses the chemical, Quicklime, as part of the water treatment process conducted at the Water Treatment Plant.
3. The current Co-Op agreement for Quicklime with Lhoist North America of Alabama, LLC. and the City of Tamarac as the lead agency that the City utilizes ends October 31, 2020.
4. The City of Tamarac as lead agency for the Southeast Florida Governmental Purchasing Cooperative (Co-Op) advertised Bid # 20-21B, "Furnish, Deliver and Discharge of Quicklime" on August 12, 2020.
5. On August 31, 2020, The City of Tamarac opened one (1) proposal for Quicklime Type 1-Pebble Lime and Type 1A-Foundry/Rice Lime from the following vendor:
Vendor Delivered Price
Lhoist North America of Alabama, LLC. $284.80 per ton
6. On September 23, 2020, the City of Tamarac approved to enter into a new three (3) year contract with Lhoist North America of Alabama, LLC., commencing November 1, 2020 and ending on October 31, 2023, with three (3) one (1) year renewal options.
7. Currently the City of Pembroke Pines uses approximately 4,200 tons of Quicklime per year.
8. Request City Commission to approve the purchase of quicklime on an as needed basis from Lhoist North America of Alabama, LLC. utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) Bid #20-21B for an estimated annual fiscal year amount not to exceed $1,196,160 (4,200 tons x $284.80/ton), pursuant to Section 35.18(C)(6) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $1,196,160
b) Amount budgeted for this item in Account No: $1,196,160 is currently available 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: The agreement term is effective on November 1, 2020 and ending on October 31, 2023, with three (3) one (1) year renewal options. The estimated annual fiscal year, commencing on October 1 - September 30, amount shall not exceed $1,196,160.
|
|
Current FY |
FY 2021-22 |
FY 2022-23 |
N/A |
N/A |
|
Revenues |
$0 |
$0 |
$0 |
N/A |
N/A |
|
Expenditures |
$1,196,160 |
$1,196,160 |
$1,196,160 |
N/A |
N/A |
|
Net Cost |
$1,196,160 |
$1,196,160 |
$1,196,160 |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable.