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Authority awards $441.9 million contract for Reservoir 3, approves $2.5 million mitigation credits
Summary
The Peace River Manasota Regional Water Supply Authority voted unanimously to award a $441.9 million construction contract for Reservoir Number 3 to Phillips Heavy Inc. and to authorize $2,505,600 for mitigation bank credits, following staff presentations on bidding, market conditions and mitigation options.
The Peace River Manasota Regional Water Supply Authority on Dec. 3 awarded a $441,935,462.29 contract to Phillips Heavy Inc. for construction of Reservoir Number 3 and authorized a $2,505,600 purchase of mitigation bank credits to offset wetland impacts.
Mike Knowles, authority staff, summarized the procurement process and bid results, saying Phillips’ composite bid for the reservoir plus on‑site mitigation and contingency totaled about $441.9 million. "We received competitive bids in a very active market; Phillips' total bid included the reservoir portion and the alternate on‑site mitigation," Knowles said during his presentation.
Jim Guida, the authority's director of water resources and planning, recommended a combined mitigation approach after describing the project footprint (about 1,250 acres) and unavoidable wetland impacts (about 281 acres). He said staff had priced both on‑site mitigation plus mitigation bank credits and found a combined approach materially less expensive than buying credits only. "Our recommendation is to construct the on‑site mitigation areas and supplement with bank credits," Guida said; staff estimated the combined option at just under $22 million compared with roughly $53.3 million for 100% off‑site credits.
Following staff remarks, Commissioner Cutsinger moved to authorize the contract to Phillips Heavy Inc. in an amount not to exceed $441,935,462.29; the motion carried unanimously. The board then voted to authorize final payment of $2,505,600 to EIP Credit Company, LLC for 12.84 mitigation bank credits; that motion also passed unanimously.
Knowles and Guida explained that Florida market conditions — including several large reservoir projects bidding concurrently — contributed to higher-than‑expected unit costs in some bid line items, and staff said they would continue to pursue owner direct purchases and local material sourcing to reduce costs where feasible.
The board recorded a target substantial completion for the PR3 reservoir and associated mitigation in December 2028. No member opposed either motion.
The authority will proceed with contract execution and final mitigation payment after closing the required procurement and administrative steps.
