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West Melbourne approves $52.48 million contract to build 4 MGD reverse-osmosis water plant
Summary
On Jan. 14 the West Melbourne City Council voted 7-0 to award a $52,484,250 construction contract to TLC Diversified for a new 4 million gallons-per-day reverse-osmosis water treatment plant; the project includes a roughly $2.5 million owner’s contingency and is part of a broader $~80 million program of wells and conveyance work.
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West Melbourne City Council voted 7-0 on Jan. 14 to award a contract to TLC Diversified to construct the city’s new reverse-osmosis water treatment plant, authorizing the city manager to sign a contract not to exceed $52,484,250.
The contract covers construction of a greenfield, 4,000,000-gallon-per-day (MGD) reverse-osmosis (RO) plant. Mark Petrone, the city’s capital projects manager, told the council that the recommendation followed a multi-year feasibility and design process led by Hazen and Sawyer and that the engineer reviewed the two bids received in December and recommended awarding the work to TLC Diversified.
The project traces to initial council discussions in 2017 and a feasibility study completed in 2019. Petrone said the city secured a concept-of-use permit from the St. Johns River Water Management District in July 2022, authorized design and construction task orders and completed four production wells in July 2024. Those wells produce a little over 1,100,000 gallons per day each, giving the city sufficient source capacity for the RO plant.
Council members questioned cost drivers before the vote. Petrone said the plant’s original concept was roughly 2.2–2.5 MGD; as the city planned for longer-term growth the size was doubled to about 4 MGD, which he said explains much of the increase from earlier, lower estimates. He also noted that the recommended contract price is below the engineer’s probable cost estimate and within the city’s budget.
Petrone outlined project risk mitigation: the engineer of record (Hazen and Sawyer) will oversee construction submittals and testing, Universal Engineering will perform plan review, city inspectors will monitor site work, and the city has already purchased two long-lead items (switchgear and a generator). He said the contract includes an owner’s contingency of just under $2,500,000 to cover unforeseen construction items.
Council members also discussed schedule and water supply continuity if weather or supply-chain issues delay construction. Petrone said the city will continue to rely on wholesale interconnections with Melbourne and Palm Bay as needed and that district rules governing regional supply should prevent a service interruption to residents.
The RO plant award is one part of a broader program: the council was told the combined cost for the plant plus well development and upcoming conveyance-line work is “just under $80,000,000.” Officials said the financing will use a mix of bond proceeds (about $54 million) and cash.
The motion was made by Deputy Mayor Pat Bentley and seconded by Councilmember Adams; Mayor Young called the vote and the measure passed 7-0.
The city expects to return to council with bids for well housings and the conveyance-line contract in upcoming meetings; officials said the conveyance-line bids are due back in early February and likely to return to council in the second February meeting for award.

