Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Third Renewal Of Blanket Purchase Agreement PA600663 With Stantec Consulting Services Inc. To Provide Professional Financial Rate And Management Consultant Services Related To Utility Rates And Large User Agreements In An Annual Amount Up To $400,000.00 For The Period From October 16, 2026, To July 16, 2027.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Utilities (“Department”) is actively engaged in a multi-year initiative aimed at thoroughly reviewing and updating the City’s water, sewer, and utility rate structure. This comprehensive project reflects the Department’s ongoing commitment to ensuring that the City’s utility systems remain effective and equitable for all parties involved.
As part of this assessment, the Department will update the rate structure to better align with current needs and address current challenges. These adjustments are intended to enhance efficiency and fairness across all utility services.
As part of this process, the Department is committed to transparency and fairness. The review of agreements with large users is intended to ensure that updated rates and terms reflect the best interests of both the City and the users who utilize significant resources.
The City of Palm Bay, serving as the lead agency for the Southeast Florida Governmental Purchasing Cooperative, originally awarded the regional contract to Stantec Consulting Services Inc. The contract was established for a one-year term, with provisions allowing for four optional annual renewals.
In accordance with the agreement, the City intends to exercise the third one-year renewal option. This renewal will maintain the same pricing and contractual terms and conditions as in prior years. The renewal period will run from October 16, 2026, through July 16, 2027. The annual expenditure for these services will not exceed $400,000.00.
On April 19, 2023, the City Commission passed and adopted Resolution No. R-2023-100 with Stantec approving PA600663 in an annual amount up to $250,000.00 to provide professional services specifically related to utility rates and large user agreements, supporting the City’s needs in these areas.
The City is required to perform the annual Large User Rate Estimate, Large User True-up, and other financial services pursuant to the Large User Agreements.
On October 1, 2024, the City Commission passed and adopted Resolution No. R-2024-327 with Stantec approving the first renewal of PA600663 in an annual amount up to $250,000.00 to provide financial services related to the Large User agreements. These services include the development of the annual Large User Rate, completion of the Large User True-up process, and other associated financial tasks.
On July 3, 2025, the City Manager approved the second renewal of PA600663. This renewal is effective from July 17, 2025, to July 16, 2026, in an annual amount up to $250,000.00.
The Department continues to need these services, which include financial analysis, modeling, and reports required to set utility rates and to comply with the Large User Agreements.
On July 22, 2026, the City Manager Memo PU-26-109 approved a 90-day extension of PA600663 in an amount up to $90,000.00, ensuring continuity of services during the interim period.
This extension covers services from July 17, 2026, through October 15, 2026. During this timeframe, the contract will remain active, allowing the continuation of essential professional services.
The extension specifically allows for the ongoing provision of professional services with a focus on utility rates and large user agreements. These services are critical for maintaining and updating the City's utility rate structure and agreements with its large utility customers.
Department staff will oversee and manage all aspects of the project. This action does not require the hiring or the allocation of any additional staff.
Fiscal Impact:
Funding for this service will be available in the FY 2027 Operating Budget in account number 442.400101.53600.531170.000000.000.000 subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Phyllis Shaw, CGFO, Deputy Director, Public Utilities/Finance
Vincent Morello, P.E., Director, Public Utilities
Chris O’Brien, Director, Public Safety