Title
Central Utility Plant to Support the New Shands Hospital Complex (NB)
Staff recommends increasing the General Manger's authorization level from $35,000,000.00 to $40,000,0000.00 For the Central Utility Plant to support the new Shands hospital complex.
Explanation
On January 22, 2007 the City Commission authorized the General Manager to negotiate and execute contracts to design, finance, construct, own and operate a central utility plant on a portion of the new Shands medical complex. The Central Utility Plant (CUP) will efficiently provide chilled water, process steam, emergency and standby power generation, and medical gases to serve the first hospital tower and will be expanded to serve future phases of the project. Since that date, Shands has committed to include the electrical generating facilities needed for a combined heat and power system which uses waste heat for steam and chilled water production, which increases the project's overall cost. Additional architectural detailing and final design decisions also resulted in cost increases. The form of the financial agreement, which is open book cost plus is such that these increases result in unchanged profit levels (as a percent of revenue requirements).
Recommendation
Authorize the General Manager or her designee to negotiate and execute final agreements with Shands and Burns & McDonnell, Inc. for the design, finance, construction, operation, maintenance and future expansion of the CUP required to serve the new medical complex at an initial cost not to exceed $40,000,000.00 and for a term of 50 years, subject to approval by the City Attorney as to form and legality.
Fiscal Note
Funds are available in the FY 2007 Utility budget and the required funding through October 2009 will be included in future budgets.
Drafter
Prepared by Ed Regan, P.E., AG M. for Strategic Planning
Submitted by Karen S. Johnson, General Manager