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Staff seeks $403.6M to bridge funding gap for $489M flood‑protection mega‑bundle
Summary
City engineers presented a $488.97M guaranteed maximum price (GMP) for a seven‑project flood‑protection bundle and outlined a funding plan that would transfer existing appropriations, use bond capacity and authorize public facility revenue bonds to cover a $403.6M gap; staff scheduled a required public hearing and said construction could begin in 2026 if council approves appropriation.
City staff sought council direction to appropriate funds so the city can execute a design‑build contract for a seven‑project flood‑protection “mega bundle” covering Windsor Woods, Princess Anne Plaza and the Lakes.
City Engineer Toni Utterback described why the multi‑project bundle is needed—low elevations, legacy drainage infrastructure and increasing storm severity—and laid out the structural elements: tide gates, large pump stations and flood barriers. Utterback presented the design‑builder’s guaranteed maximum price (GMP) of $488,970,000 for the bundled scope and said the owner’s independent cost estimator found the builder’s direct construction estimate to be within 3% of the independent estimate.
“This is where we are today…the guaranteed maximum price that was presented to us by the design builder is 488,970,000.00,” Utterback said. Staff said the GMP is the product of progressive design‑build negotiations and value engineering that reduced earlier higher estimates.
Staff reported $85.3M currently available on the bundle projects and described a proposed funding plan to create the additional approximately $403.6M needed to award the contract: transferring appropriations from projects delayed or not yet ready for construction, appropriating restricted general‑fund fund balance earmarked for stormwater, authorizing public facility revenue bonds, and using charter bond capacity tied to the 2021 referendum. Finance staff emphasized that retaining and issuing the charter bond capacity before 2031 is a key element of the long‑term plan.
Council members raised concerns about deferring funds from other projects and the communication strategy to reassure the public, and staff emphasized most deferred projects will continue design work and that the FY27 CIP will restore funding to the greatest extent schedules allow. Staff also confirmed the ordinance to transfer funds requires a public hearing (advertised for Dec. 2) and that the ordinance would be brought to council for adoption (scheduled Dec. 9); if adopted, staff would issue notice to proceed in January 2026 with staggered project starts and substantial completion across the bundle targeted in 2031.
Next steps: staff will hold the advertised public hearing, return the ordinance to council for action, and if approved execute contract and begin construction work as scheduled; council directed staff to continue engagement and provide financial oversight details as the ordinance proceeds.
