Title
MOTION TO APPROVE A WORK ORDER AUTHORIZATION WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR ENGINEERING DESIGN SERVICES RELATED TO CONVERTING THE CITY-MAINTAINED ELECTRICAL SERVICES AT THE HEALTH PARK TO FLORIDA POWER & LIGHT (FPL) ELECTRICAL SERVICES, SERVED BY NEW UTILITY DISTRIBUTION INFRASTRUCTURE, IN AN AMOUNT NOT TO EXCEED $160,555.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City's Code of Ordinances is titled "PROCUREMENT PROCEDURES, PUBLIC FUNDS."
- Section 35.15 defines a Request for Qualifications as "A written solicitation for competitive sealed offers with the title, date and hour of the public opening designated. A request for qualifications shall include, but is not limited to, general information, functional or general specifications, statement of work, instructions for offer and evaluation criteria. All requests for qualifications shall state the relative importance of the evaluation criteria. The city may engage in competitive negotiations with responsible offerors determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of and conformance to the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of offers, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining the best and final offer."
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(A) states, "A purchase of or contract for commodities or services that is estimated by the Chief Procurement Officer to cost more than $100,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states, "All sealed competitive solicitations as defined in §35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Florida Statute (F.S.) 287.055 is known as the “Consultant’s Competitive Negotiation Act” (CCNA).
- F.S. Section 287.055(2)(a) defines Professional services as “those services within the scope of the practice of architecture, professional engineering, landscape architecture, or registered surveying and mapping, as defined by the laws of the state, or those performed by any architect, professional engineer, landscape architect, or registered surveyor and mapper in connection with his or her professional employment or practice.”
- F.S. Section 287.055(2)(f) states “Project” means that fixed capital outlay study or planning activity described in the public notice of the state or a state agency under paragraph (3)(a). A project may include:
1. A grouping of minor construction, rehabilitation, or renovation activities.
2. A grouping of substantially similar construction, rehabilitation, or renovation activities.
- F.S. Section 287.055(3)(a)(1) states “Each agency shall publicly announce, in a uniform and consistent manner, each occasion when professional services must be purchased for a project the basic construction cost of which is estimated by the agency to exceed the threshold amount provided in s.287.017 for CATEGORY FIVE ($325,000) or for a planning or study activity when the fee for professional services exceeds the threshold amount provided in s.287.017 for CATEGORY TWO ($35,000), except in cases of valid public emergencies certified by the agency head. The public notice must include a general description of the project and must indicate how interested consultants may apply for consideration.”
- F.S. Section 287.055(2)(g) states:
(1) “A “continuing contract” is a contract for any of the following:
a. Professional services entered into in accordance with all the procedures of this act between an agency and a firm whereby the firm provides professional services to the agency for projects in which the estimated construction costs of each individual project under the contract does not exceed $7.5 million. Beginning July 1, 2025, and each July 1 thereafter, the department shall adjust the maximum amount allowed on the preceding June 30 for each individual project in a continuing contract by using the change in the June-to-June Consumer Price Index for All Urban Consumers issued by the Bureau of Labor Statistics of the United States Department of Labor. The department shall publish the adjusted amount on its website;
b. Study activity if the fee for professional services for each individual study under the contract does not exceed $500,000; or
c. Work of a specified nature as outlined in the contract required by the agency, with the contract being for a fixed term or with no time limitation except that the contract must provide a termination clause.
(2) Firms providing professional services under continuing contracts may not be required to bid against one another."
Note - Effective July 1, 2025, the Department of Management Services (DMS) adjusted the maximum estimated construction cost for each individual project under a continuing contract from $7.5 million to $7,725,000, pursuant to Section 287.055(2)(g), Florida Statutes. However, they have not issued the update for July 1, 2026 on their website as of yet.
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, 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. The electrical service to seventeen (17) buildings at the Health Park is provided through an aging City-maintained electrical distribution system consisting of overhead power lines, underground electrical infrastructure, transformers, and metering equipment, which are maintained by the Public Services Department. Over the past several years, the City has been transitioning facilities to individual Florida Power & Light (FPL) electrical services to reduce the ongoing costs associated with maintaining this aging infrastructure. The existing electrical distribution system is considered obsolete and would require a significant capital investment to modernize, aside from the costly operational challenges currently experienced.
Seventeen (17) buildings remain connected to the original City-maintained electrical distribution system and must be converted to individual FPL service before the existing infrastructure can be permanently removed from service.
2. On September 2023, the City completed the Health Park Electrical Assessment Study, prepared by Quantum Electrical Engineering, Inc., to evaluate the remaining facilities and identify the improvements necessary to convert each building to a dedicated Florida Power & Light (FPL) electrical service. The study included conceptual construction cost estimates totaling approximately $3.435 million for the required electrical and utility improvements.
3. City staff met with Florida Power & Light (FPL) during the assessment phase in 2023 and again in June 2026 to coordinate the project requirements.
4. To facilitate the conversion, the City is required to provide the design and construction of the utility infrastructure on the owner side of each building's electric meter. FPL does not prepare the engineering design for customer-side electrical improvements, including site electrical infrastructure, service connections, demolition of the existing City-owned electrical system, permitting, utility coordination, easement preparation, or construction documents.
Because these design services for the building components are outside FPL's responsibility, the City requires professional engineering services to prepare the electrical design, construction plans, technical specifications, permitting documents, and supporting information necessary for both the City's construction project and FPL's utility design.
Once the city's consultant completes the engineered drawings for the building's electrical service requirements; those drawings will be provided to FPL for their internal assessment and design of their infrastructure that will provide power up to the point of connection. Additionally, upon substantial completion of FPL's design, the project is routed internally to FPL’s cost estimating team to determine the anticipated material and labor costs associated with the Utility’s scope of construction. FPL then generates the expected revenue from the proposed electrical services using the details included in the electrical service applications (in this instance, for each of the 17 new services). FPL will not be able to provide accurate cost estimations for their work until they have entered their design phase using baseline engineering plans provided to them for the Project. With the projected revenue and costs, FPL performs a 4-Year ROI analysis which may prove substantial returns and impose no additional costs to the city.
5. On January 21, 2026, the City Commission approved continuing contracts under RFQ #PSPW-23-20 for professional engineering services in accordance with the Consultants' Competitive Negotiation Act (CCNA), establishing a pool of pre-qualified consultants across multiple disciplines. Pursuant to the continuing services agreement, staff selected Kimley-Horn and Associates, Inc. to provide engineering design services for the Health Park Electrical Service Conversion Project.
6. In accordance with the continuing services agreement, staff conducted a scoping meeting with Kimley-Horn and Associates, Inc. on May 4, 2026, to define the project requirements, establish the design approach, and identify coordination requirements with City departments and FPL. Based on the approved scope, Kimley-Horn submitted a proposal to provide the required engineering design and related professional services.
7. Staff recommends approval of the Order Authorization with Kimley-Horn and Associates, Inc. for Professional Engineering Design services related to converting the City-maintained electrical services at the Health Park to Florida Power & Light (FPL) electrical services, served by new utility distribution infrastructure, in an amount not to exceed $160,555.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $160,555
b) Amount budgeted for this item in Account No: 001-519-6008-546152-0000-000-0000 - R&M - Land Bldg - Major Project
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project: Not Applicable.
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.