Council approves $8.77 million Phase II contract for deep injection well after debate over cost and procurement

The Town of Jupiter’s council voted 4–1 on Dec. 16 to award a construction contract to Lawrence Lee Construction Services for Phase II of the Deep Injection Well System and approve a budget increase to complete the project. The motion passed with Mayor Kuretsky dissenting.

Director of Utilities Amanda Barnes described Phase II as the work required to place the deep injection well and associated dual‑zone monitoring well into service: final wellheads, site piping, pump stations and functional testing. She said the work is driven by a Florida Department of Environmental Protection (FDEP) administrative order requiring the town to stop discharging reverse osmosis (RO) concentrate to surface water. “If the contract is awarded tonight, we expect that Phase II improvements will be completed in May 2027,” Barnes said. Staff noted that FDEP’s current completion date for the administrative order is December 2026 and that staff would submit a minor permit modification and schedule update to DEP while demonstrating progress.

Finance Director Scott Reynolds said the town received two proposals after a mandatory pre‑bid meeting that 5 firms attended; the selection committee ranked Lawrence Lee Construction Services highest using a best‑value procurement method. Reynolds said the requested award amount is $8,769,000 and that the CIP budget needs an additional $3.2 million (the staff materials referenced an increase of $3,216,563) which would come from available Renewal & Replacement funds. He described the procurement as best‑value rather than low‑bid and said selection considered experience, reference checks and safety records.

Staff and council members traced the higher-than-expected pricing to current market volatility: staff reported pipe and valve costs are approximately 20% higher than earlier estimates, pump costs about 10% higher, electrical costs roughly 77% higher and construction labor near double previous levels; tariffs were also cited as an influence. Council members debated alternatives, including rebidding, splitting scopes or using a construction manager‑at‑risk (CMAR) approach to seek more bidders. Several members stressed time constraints tied to the DEP order. Mayor Kuretsky, citing fiscal concerns and a steep increase versus the adopted CIP, urged additional documentation and the opportunity to value‑engineer and rebid. He said the increase represents a large percentage change versus the recent CIP estimate and requested that staff provide pre‑bid evaluation materials and the consultant’s estimate and variance analysis in future procurements.

After council discussion, Councilmember (motion maker) moved to approve the contract and budget amendment; the motion carried 4 to 1 with Mayor Kuretsky dissenting. Staff will award the contract to Lawrence Lee Construction Services for $8,769,000 and program the R&R transfer to fund the shortfall. Phase II completion is projected in mid‑2027 subject to procurement and construction schedule.