Title
South Energy Center Expansion (B)
Explanation
Pursuant to authorization by the Commission on January 22, 2007, GRU and UF Health (formerly known as "Shands") entered into a 50-year Master Agreement on July 25, 2007, under which GRU would build, own, operate, and maintain a central utility plant and the underground on-campus infrastructure that would provide for the first and all subsequent phases of the UF Health South Campus all: 1) normal power, 2) standby power, 3) essential power, 4) steam, 5) chilled water, and 6) medical gas infrastructure. Additionally, a contract amendment was executed on December 30, 2009 for extension of reclaimed water from GRU's Main Street Water Reclamation Facility to the South Energy Center (SEC) and UF Health South Campus.
UF Health's recently approved cardiovascular and neuroscience hospital tower will require GRU to engineer, procure, and construct additional equipment and support infrastructure at the SEC that will provide services listed above for the new hospital. The project schedule calls for GRU to commence site work in June 2015 to coordinate with hospital site construction. GRU will furnish limited utility service in August 2016 to support building construction in advance of completion in the 4th quarter of 2017.
GRU and UF Health's contract is structured to provide GRU with a stable and predictable return on its investment in the SEC and the cost of its operations. The Master Agreement and proposed draft contract amendment ensure that future investments will provide similar returns on investments.
GRU Purchasing issued a Request for Statement of Qualifications (RFSQ) for the design of the SEC expansion. Three firms submitted Statements of Qualifications, which were ranked after evaluation of the submittals and discussions with the firms in accordance with the criteria established in the RFSQ and the Competitive Consultants' Negotiations Act (CCNA). The three firms are listed below in the order of ranking.
1. Burns & McDonnell
2. Affiliated Engineers
3. Stanley Consultants
In accordance with the CCNA, staff is recommending initiating contract negotiations with the top-ranked firm, Burns & McDonnell. If staff is unable to negotiate an acceptable contract with the top ranked firm, staff is requesting authority to negotiate with the other firms in order of ranking.
Due to the long lead times of equipment which are as long as 12-14 months, to cost-effectively meet the hospital's schedule for delivery of services, engineering and procurement must progress together on a fast track. Vendor-specific product information is required to complete the design, which is available only after a confirmed order is received by vendors. Additionally, plans must be reviewed and approved by the Florida Agency for Healthcare Administration (AHCA) which has a 90-day review cycle.
In addition to the small and minority-owned businesses known to GRU that will be included in purchasing opportunities for this project, GRU is also collaborating with the UF Health construction manager, Skanska, to identify other potential qualified businesses.
Fiscal Note
$19 million of the $28,500,000 project budget is for the engineering, equipment procurement, and construction, and is included in the approved FY 2015 budget. The remaining balance of the $28,500,000 project budget has been included in GRU's FY 2016 and 2017 budget forecasts.
Recommendation:
The City Commission:
1. Approve amending the Agreement between GRU and UF Health for the addition of hot water to the product services included in the Master Service Agreement in substantially the same form with no less favorable terms as the provided draft and authorize the Interim General Manager, or her designee, to execute the amendment, subject to approval by the City Attorney as to form and legality; and
2. Approve the final ranking of the qualifications of the engineering firms solicited to provide professional services to assist GRU in the planning, design, procurement, construction, and commissioning of a capacity expansion of the South Energy Center (SEC); and
3. Review the draft contracts , and authorize the Interim General Manager for Utilities, or her designee, to negotiate and execute a contract in accordance with the Consultants' Competitive Negotiations Act (CCNA) for engineering services for the Phase 2 expansion of the SEC as long as the contracts are in substantially the same form with no less favorable terms, and to take such other actions as may be necessary or advisable to proceed with such transaction, pursuant to this City Commission authorization, all contracts subject to the approval of the City Attorney as to form and legality; and
4. Authorize the Interim General Manager for Utilities, or her designee, to negotiate and execute the required contracts and issue purchase orders in accordance with Purchasing policies and procedures required for implementation of the expansion in an amount not to exceed $28,500,000.