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Flagler Beach awards $46.3 million contract to rebuild wastewater plant to meet new nutrient rules
Summary
The City Commission voted to award a $46.307 million contract to L7 Construction for major Biological Nutrient Removal upgrades to the Flagler Beach Wastewater Treatment Facility after staff and the city's owner's advisers cited regulatory deadlines, market escalations since 2020 and favorable SRF loan terms. The contract includes modular capacity for future reuse projects.
Flagler Beach commissioners on Thursday approved a $46,307,000 construction contract (WW180131) with L7 Construction for a multi-year upgrade to the city's wastewater treatment facility intended to meet recent state nutrient and reuse requirements.
McKim & Creed owner's adviser Matt Clark told commissioners the existing plant lacks redundancy, contains equipment at or near end of life and will face increasing regulatory pressure under recent state bills that encourage reduced nutrient discharge and reuse feasibility. Clark summarized the project as a new headworks, a master pump station, equalization basins and intensified Biological Nutrient Removal (BNR) processes to remove nitrogen and phosphorus.
Clark said the work was bid after an earlier 2020 construction estimate of roughly $18 million; the market change, specialized contractor scarcity and higher equipment and labor costs resulted in bids substantially higher than that earlier number. He told the commission the low, responsive bid from L7 was within a competitive range of other bidders and that rebidding risked higher prices and schedule slips.
Edgar Fernandez, the city's financing adviser, described available funding: a mix of grant funds reserved for headworks work (from prior storm-related awards) and an SRF loan amendment. Clark and Fernandez noted SRF loan terms are favorable (multi-decade term at a fraction of market rates) and recommended approving the award to reduce schedule and performance risk linked to rebidding.
Commissioners asked about options to reduce cost and owner risk. Staff and the contractor said the city can use owner-direct purchases for large equipment items to lock pricing and save sales tax, and that the design intentionally leaves space for a fourth BNR basin to allow staged expansion. The contractor estimated a roughly 700-day construction window from notice-to-proceed to completion, depending on permitting and weather.
Commissioner discussion touched on whether to rebid; speakers warned rebidding could add months and possibly increase prices given current market conditions. Several commissioners stressed the urgency of compliance and asked staff for a clear project timeline and regular progress updates.
The commission voted to award the contract to L7 Construction. The contract award passed with a recorded 4 vote in favor.
