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Council approves guaranteed maximum price for Palm Coast maintenance operations fuel depot; members press for clearer contract details

October 22, 2025 | Palm Coast City, Flagler County, Florida


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Council approves guaranteed maximum price for Palm Coast maintenance operations fuel depot; members press for clearer contract details
PALM COAST, Fla. — The City of Palm Coast City Council on Oct. 21 approved a guaranteed maximum price (GMP) contract amendment for the Maintenance Operations Center (MOC) fuel depot, with a construction contingency. The vote was unanimous.

City staff described the project as part of a larger MOC master plan that consolidates public‑works, utilities and stormwater functions on a single campus. Phase 1B covers construction of a municipal fuel depot with associated paving, landscaping, irrigation, fencing and utility work; staff said the Phase 1B GMP with Old Bayne Building Company is $7,984,870 with a construction contingency of $227,331.

Architect Eric Givo and staff briefed council on project status. The site‑development package (Phase 1) already under construction includes utilities, stormwater infrastructure and grading; staff said the current site work is scheduled for completion in January 2026 and that the fuel depot construction could start in January 2026 with a 2027 completion target. Staff said the timing is driven in part by the existing fuel tanks reaching the end of their service life.

Several council members pressed staff about contract presentation and specific line items. Vice Mayor Pontieri and others questioned paragraph 18 of the submitted GMP backup, which describes mileage and reimbursable general‑condition costs for contractor personnel. City staff and the construction‑management team explained those costs are built into the GMP general‑conditions allowance and that the GMP is a not‑to‑exceed price reflecting the contractor’s planned staffing and overhead. Staff said the contractor has a defined general‑conditions number and cannot bill above the GMP for those items.

Council member Pontieri asked for additional clarity in the agenda packet and asked staff to provide the original contract executed in 2023 so members can confirm that new language does not alter previously approved terms. Council accepted staff assurances that the presentation is a standard construction management GMP process but requested that staff make the original contract available and that council have the opportunity to revisit the item if material discrepancies are discovered.

Motion and vote: Council member Pontieri moved approval of the resolution to accept the GMP for Phase 1B and the contingency; the motion passed unanimously.

What comes next: City staff will finalize the GMP amendment paperwork and proceed with contracting so construction may begin in early 2026; staff said they will provide copies of the original contracts and be available to answer detailed procurement questions for council prior to final invoicing.

Ending — Council described the fuel depot as necessary planning to replace aging tanks and expand on‑site fueling capacity; members asked for more explicit packet documentation and for staff to ensure transparency on reimbursable general‑condition costs before the final close‑out.

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