Title
MOTION TO APPROVE THE DEPARTMENT RECOMMENDATIONS FOR THE FOLLOWING ITEMS LISTED ON THE CONTRACTS DATABASE REPORT:
(A) Choices for Life, Inc. - Commercial Lease - Renewal Section (A) of this item was deferred on the record at the May 17, 2023 Commission Meeting. Section (B) of this item passed on Consent on May 17, 2023. Section (A) Choices For Life - Commercial Lease Renewal will go before Commission on June 7, 2023 as a new item - File ID #______.
(B) Nalco Company, LLC. - Purchase and Delivery of Potassium Phosphate - Renewal
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Pursuant to Section 35.29(F) "City Commission notification" of the City's Code of Ordinances, "The City Manager, or his or her designee, shall notify the Commission, in writing, at least three months in advance of the expiration, renewal, automatic renewal or extension date, and shall provide a copy of the contract or agreement and a vendor performance report card for the contract or agreement to the City Commission."
2. On May 17, 2017, Commission approved the motion to place all contracts from the Contract Database Reports on consent agendas as they come up for contractual term renewal so that City Commission affirms directions to administration whether to renew or to go out to bid.
3. The Agreements shown below are listed on the Contracts Database Reports for renewal.
(A) Choices for Life, Inc. - Commercial Lease - Renewal
1. On October 15, 2020, the City entered into a Commercial Lease Agreement with Choices for Life, Inc. for an initial one (1) year period, which expired on November 1, 2021.
2. Choices for Life, Inc. leases the premises located at 6700 NW 13 St., Pembroke Pines, FL 33025.
3. Section 2.1 of the Original Agreement authorizes the renewal of the Original Agreement for four (4) additional one (1) year terms upon mutual consent, evidenced by a written Amendment.
4. On August 4, 2021, the Parties executed the First Amendment to renew the term for an additional one (1) year period which expired on November 1, 2022.
5. On April 14, 2022, the Parties executed the Second Amendment to renew the term for an additional one (1) year period which expires on November 1, 2023.
6. The Public Services Department recommends the City Commission to approve this Third Amendment to renew the term for an additional one (1) year period which shall commence on November 2, 2023, and naturally expire on November 1, 2024.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Annual Renewal Revenue: $56,896.08
b) Amount budgeted for this item in Account No: Funds are currently budgeted for this project in account #001-000-6001-362030-0000-000-0000-Rental city facilities
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 2 year projection of the operational cost of the project:
FY 2023-24 FY 2024-25
Revenues $52,154.74 $4,741.34
Expenditures $0.00 $0.00
Net Revenue $52,154.74 $4,741.34
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.
(B) Nalco Company, LLC. - Purchase and Delivery of Potassium Phosphate - Renewal
1. On July 26, 2015, the City entered into an Agreement with Nalco Company, LLC. for an initial one (1) year period, which expired May 31, 2016.
2. Section 2.2 of the Original Agreement, as amended, allows for additional one (1) year renewal terms upon mutual consent, evidenced by a written Amendment extending the term thereof.
3. On June 21, 2016, the Parties executed the First Amendment to the Original Agreement to renew the term for an additional one (1) year period which expired on May 31, 2017.
4. On September 14, 2016, the Parties executed the Second Amendment to the Original Agreement, as amended, to include a rate of one dollar and 44/100 cents ($1.44) per pound for shipments of 44,999 pounds or less.
5. On October 17, 2017, the Parties executed the Third Amendment to the Original Agreement, as amended, to renew the term for an additional one (1) year period, which expired on May 31, 2018.
6. On February 22, 2018, the Parties executed the Fourth Amendment to the Original Agreement, as amended, to renew the term for an additional one (1) year period, which expired on May 31, 2019.
7. On September 25, 2018, the Parties executed the Fifth Amendment to the Original Agreement, as amended, to revise the rates to one dollar and 50/100 cents ($1.50) per pound for loads under 1,000 pounds and one dollar and 44/100 cents ($1.44) per pound for loads above 1,000 pounds.
8. On March 19, 2019, the Parties executed the Sixth Amendment to the Original Agreement, as amended, to renew the term for an additional one (1) year period, which expired on May 31, 2020.
9. On June 19, 2019, the Parties executed the Seventh Amendment to the Original Agreement, as amended, to increase the rates to one dollar and 58/100 cents ($1.58) per pound for loads under 1,000 pounds and one dollar and 51/100 cents ($1.51) per pound for loads above 1,000 pounds.
10. On May 6, 2020, the Parties executed the Eighth Amendment to the Original Agreement, as amended, to revise the rates to one dollar and 63/100 cents ($1.63) per pound for 275 gallon totes, and one dollar and 56/100 cents ($1.56) per pound for bulk loads, and renew the term for an additional one (1) year period, which expired on May 31, 2021.
11. On April 21, 2021, the Parties executed the Ninth Amendment to the Original Agreement, as amended, to revise the rates to one dollar and 69/100 cents ($1.69) per pound for 275 gallon totes, and to renew the term for an additional one (1) year period, which expired on May 31, 2022.
12. On May 18, 2022, the Parties executed the Tenth Amendment to the Original Agreement, as amended, to revise the rates to one dollar and 89/100 cents ($1.89) per pound delivered in 3,712lbs, and to renew the term for an additional one (1) year period, which expires on May 31, 2023.
13. Contractor has proposed to the City to remove in its entirety the fuel energy surcharge of which consist of forty-five cents ($0.45) per pound as a result of the significant escalation of energy and raw material costs.
14. The Utilities Department recommends that the City Commission approve this Eleventh Amendment to the Original Agreement, as amended, and to increase the rate to two dollars and 49/100 cents ($2.49) per pound delivered, and to renew the term for an additional one (1) year period which shall commence on June 1, 2023, and naturally expire on May 31, 2024, as allowed by the agreement.
FINANCIAL IMPACT DETAIL:
a) Renewal Cost: $138,580.95 (55,655 lbs * $2.49)
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) 2 year projection of the operational cost of the project
Current FY Year 2
Revenues $0.00 $0.00
Expenditures $46,193.65 $92,387.30
Net Cost $46,193.65 $92,387.30
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.