Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R79, a Resolution of the City Council of the City of Port St. Lucie Approving a Public Private Partnership Unsolicited Proposal Fee; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
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Submitted By: Nathaniel Rubel, Procurement Assistant Director, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Section 255.065, Florida Statutes and City Code of Ordinances, Section 35.18, permits the City to receive unsolicited proposals for Public-Private Partnerships. Section 35.18 requires that unsolicited proposals shall be accompanied by an application fee established by resolution of the City Council. This Resolution is being presented for Council approval to establish the application fee.
Presentation Information: Staff will be present to answer any questions.
Staff Recommendation: Move that the Council approve the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Resolution.
2. Move that the Council not approve the Resolution and provide staff with direction.
Background: Consistent with the provisions contained in Section 255.065, Florida Statutes, Florida encourages redevelopment of underdeveloped and underutilized properties through public/private partnerships (P3). A P3 is a contractual agreement between a public agency (federal, state, or local) and a private sector person or entity organized for the purpose of timely delivering services or facilities in a cost-effective manner that might not otherwise be possible using traditional sources of public procurement. Through this contractual agreement, the assets and professional skills of each sector (public and private) are shared and leveraged to deliver a service or facility to be used by the general public. Properly structured P3s share risk and expense amongst public and private partners; encourage efficiencies and innovation in design, construction, operations, and maintenance; and maximize funding and cash flow initiatives.
Section 255.065, Florida Statutes and City Code of Ordinances, Section 35.18, permits the City to receive unsolicited proposals for Public-Private Partnerships. Section 35.18 requires that unsolicited proposals shall be accompanied by an application fee established by resolution of the City Council. The application fee is intended to cover costs of the initial consideration and evaluation, including the costs of staff time, and the fees of attorneys, engineers, consultants, and financial advisors retained to evaluate the proposal, provide recommendations to the City, and/or negotiate a Contract. If the application fee is not sufficient to pay the City’s costs, the application fee shall be increased to cover the City’s actual costs. The City shall refund any portion of the application fee or subsequent additional fees collected, which exceed the cost of evaluating the proposal, after the evaluation and/or negotiation is complete. As of this time, the City has not yet established an unsolicited proposal application fee.
As the City is experiencing rapid growth, the likelihood increases that P3s would be considered to bring a wide array of projects to fulfill a public purpose. In addition, the Florida Legislature recently amended Section 255.065, Florida Statutes. The update to the law which became effective on July 1, 2024, includes an alternative to the public bidding process to provide a cost-effective and streamlined process to deliver P3 projects and additional measures to incentivize the private sector to present P3 opportunities. Therefore, the establishment of the application fee is important for the City to be able to offset the costs of evaluating any unsolicited proposals received. Furthermore, creating an application fee can also help ensure that any P3 opportunity presented has been carefully considered by the applicant prior to the submission of an unsolicited proposal.
Issues/Analysis: Staff conducted extensive research among government agencies throughout the State of Florida and found that their application fees generally ranged from $2,000.00 to $50,000.00. Review of the data found that the application fees required by many of the City’s closest peer agencies had been set at amounts around $25,000.00. In consideration of the various types of projects that may come before the City, Staff believes that establishing an application fee of $25,000.00 is the best amount to satisfy its intended purpose.
Financial Information: N/A.
Special Consideration: Section 35.18 does allow for the application fee to be waived or reduced by the Procurement Director upon finding that the estimated cost of evaluation will be less than the application fee.
Location of Project: N/A.
Attachments: Resolution.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 24190-06.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.