Subject:
Title
Save Our Indian River Lagoon Contingency Fund Request for the City of West Melbourne Ray Bullard Water Reclamation Facility Upgrade Project (District 3)
End
Fiscal Impact:
Up to $1,300,000.00 from Save Our Indian River Lagoon Contingency Funds
Dept/Office:
Natural Resources Management
Requested Action:
Recommendation
It is requested that the Board authorize the Chair to sign a cost-share amendment increasing funding for the Ray Bullard Water Reclamation Facility Upgrade Project by $1,300,000.00.
End
Summary Explanation and Background:
The City of West Melbourne Ray Bullard Water Reclamation Facility Upgrade Project is a substitute project that was added to the Save Our Indian River Lagoon (SOIRL) project plan in 2020 to upgrade the facility to reduce the nitrogen and phosphorus concentrations in the reclaimed water used for irrigation. The estimated annual total nitrogen reduction benefit is 11,360 pounds and the estimated annual total phosphorus reduction is 3,302 pounds. It was originally approved and contracted for a SOIRL cost-share of $4,260,000.00. The total cost for the project was estimated at $8,000,000.00. The 2025 SOIRL Plan Update allocated an inflation allowance to each project. The total inflation adjustment from 2020 to 2025 increased funding by $2,246,916.00 for a total SOIRL cost-share of $6,506,916.00.
When the project was first advertised, the City received three qualified bids, all of which exceeded the City’s estimates. The lowest bid was over $16,000,000.00. The City worked with its engineering firm to reduce anticipated construction costs while accomplishing the same nutrient reduction benefits. The revised project was re-advertised and the lowest bid received was $10,725,750.00.
The City secured funding from the Florida Department of Environmental Protection for $1,510,000.00 and from the St. Johns River Water Management District for $1,343,250.00. Combining these grants with SOIRL funds, the city has secured a sum of $9,359,166.00 for this project. This leaves the City with a funding shortfall of $1,365,584.00 for construction in addition to previous costs for design and permitting and an estimated $524,000 for construction oversight.
Section 5.1 of the Save Our Indian River Lagoon Project Plan allows the Contingency Fund Reserve to be used to increase funding for approved projects. “For project cost increases that exceed inflation rates and are more than 10% above the amount identified in the project's cost-share agreement or the estimated cost or eligible amount of Trust Fund cost-share stated in the Save Our Indian River Lagoon Project Plan, as updated, County staff will evaluate the project circumstances and present findings to the Citizen Oversight Committee for review. The Citizen Oversight Committee will recommend rejection, modification, or approval of the funding request and provide such recommendation to the County representative authorized to sign the amendment. Staff will provide the Citizen Oversight Committee’s recommendation to the County representative authorized to sign the request based on the authority granted by the County Commission.”
To address a portion of the funding shortfall, the City requested $1,400,000.00 of additional state grant funding, but has not yet received confirmation of award. Rather than delay project construction to wait to hear from the state, the City requested an additional $1,300,000 from the SOIRL Contingency funds. If the pending state grant is approved, the City will reduce or withdraw the use of SOIRL contingency funds accordingly.
On September 19, 2025, the Citizen Oversight Committee unanimously recommended approval of $1,300,000.00 of contingency funds for the Ray Bullard Water Reclamation Facility Upgrade Project to go before the County Commission for consideration.
The Contingency Fund Reserve allocates 5% of the approved Save Our Indian River Lagoon Project cost share for each approved project; 5% equates to an additional $325,346.00 for this project. The City’s $1,300,000 request is the equivalent of a 20% cost-share increase, but would be reduced if the state grant is approved. The current balance in the Contingency Fund Reserve is $21,900,738.
Contingency funding has been approved for 13 other projects during the life of the Save Our Indian River Lagoon Program. Last year, rather than delay construction award of the Sykes Creek Zone M, Sykes Creek Zone N, and Sykes Creek Zone T septic to sewer projects to wait to hear from the state, the Board approved 5% Contingency plus an additional $3,859,716 that was the amount of a pending state grant. After the grant was secured, the use of Contingency funds was reduced back to a 5% increase.
Clerk to the Board Instructions:
Please execute 2 copies of the contract amendment, one copy for the City of West Melbourne and one for Natural Resources Management.