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Council approves $6.4M GMP amendment for Wastewater Treatment Plant No.1 electrical upgrades
Summary
The council unanimously approved a guaranteed maximum price (GMP) contract amendment totaling about $6.4 million for electrical upgrades at Wastewater Treatment Plant No. 1, the first phase of a multi‑stage expansion; staff said upgrades will improve emergency operation readiness and support a future 4 MGD expansion.
The Palm Coast City Council voted unanimously to approve a guaranteed maximum price contract amendment of approximately $6.4 million for electrical work at Wastewater Treatment Plant No.1.
City utilities staff described the amendment as the first construction phase (GMP 1) to replace aging electrical equipment at Plant No.1, including a new generator (about 1,000 kW), switchgear and control equipment to support both current operations and a planned larger plant expansion. "This will support emergency operations and coordinate with the new expansion," staff said, adding the electric equipment replacements are intended to make the existing plant more resilient.
Staff said the project will be delivered through a construction manager at risk (CMAR) and that additional GMP packages for site work and larger construction phases will follow. The engineering firm (CPH) completed preliminary design work in October 2024 and the city budget includes a $250,000 project contingency for this phase. Finance staff reported that the bond used to support capital projects priced in line with projections, with an all‑in interest rate roughly 4.45%.
Council members asked about contractor fees, general conditions and oversight; staff said they would scrutinize 90% estimates and address overlap or double‑counting in general condition line items. After public briefings and questions, the council approved the amendment on a unanimous roll call.
Staff estimated the electrical upgrade package would take up to 16 months to be fully operational, and noted that subsequent GMPs (including a larger construction GMP later this summer) will address the new 4 MGD plant expansion.
