Tampa Bay Water board approves $145.1 million construction amendment for surface water treatment expansion

Tampa Bay Water’s board unanimously approved a negotiated amendment on March 17 to the Veolia design‑build‑operate agreement to deliver construction phase services for the surface water treatment plant expansion, locking a $145,100,000 construction amendment and bringing the project total to $181,100,000.

The expansion is intended to raise regional surface water capacity by about 12,500,000 gallons per day and remain on schedule for substantial completion in January 2028 and final completion in April 2028. "We request approval of the negotiated agreement amendment with Veolia for construction services in the amount of $145,100,000," presenter Maribel Medina said during the action item.

Board discussion focused on two late changes negotiated before the vote: (1) clarifying that newly‑imposed tariffs that take effect after the guaranteed maximum price (GMP) lock date (Feb. 20) would qualify as an "uncontrollable circumstance" and could be the basis for a contractor change order, and (2) documenting conservative permit issuance timeframes tied to schedule relief if permitting is delayed. Assistant general counsel David Jackson and staff said these edits were recommended to reduce ambiguity between Veolia’s underlying agreement and the design‑builder agreement being finalized with CDM Smith.

Contractor representatives said early equipment purchases had already reduced exposure to tariff risk. Ryan Hageman of CDM Smith told the board roughly $21,000,000 in early equipment purchases are already under contract; of the roughly $75,000,000 in remaining construction purchases, he estimated "less than 10% would be heavily subject to tariffs," citing typical tariff rates in the 15–25% range. Board members asked staff and the contractor to provide a post‑meeting breakdown of material origin and tariff exposure.

The amendment includes $8,100,000 in owner’s allowances and follows earlier board approvals of two early equipment packages. Staff and the design‑build team said the project remains within the capital improvement program budget.

Commissioners asked about permitting risk, and CDM Smith noted Tampa Bay Water, CDM and Veolia have worked on similar projects and expect permitting durations to be consistent with past experience; nevertheless, the contract language documents conservative permit intervals to enable joint problem solving if agencies delay approvals. Following discussion, Commissioner Westall moved approval and Commissioner Oakley seconded; the chair recorded the vote as passing unanimously.

The board thanked legal and project teams for accommodating the late changes so staff could secure current pricing from subcontractors and vendors. The board also directed staff to follow up with the contractor on the requested materials-origin breakdown and to continue coordinating with permitting agencies to avoid schedule impacts.

The agency will proceed to complete design by August and begin construction in September 2025, with management reporting that the project must be completed no later than the end of 2028.