SUBJECT
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Update on Project Costs Based on 90% Construction Cost Estimate and Update on Southeast Wellfield Project (Information)
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DESCRIPTION
The first part of this item will focus on updated project costs associated with the Southeast Wellfield Project.
In August of 2024, the PRWC’s Construction Manager at Risk, Florida Water Partners (FWP), provided a 90% construction cost estimate for the Southeast Lower Floridan Aquifer Wellfield Project (SE Project). The estimate was divided into costs for the Water Production Facility (SEWPF) and for the Transmission Main (SETM). In general, SETM costs decreased by $12.4M from the 60% construction cost estimate (inclusive of value engineering recommendations) for an updated total of $256,186,868. SEWPF estimated costs increased by $13.6M for an estimated total of $222,772,309. As a result, the total construction cost for the FWP portion of construction is now estimated at $478,959,177, which is an overall increase of $1,224,183 from the 60% construction estimate. This does not include drilling of injection or raw water wells. PRWC staff, in conjunction with TeamOne and FWP, have reviewed the 90% construction estimate and have been able to reduce the estimated project cost by approximately $10,220,700 by accounting for items such as owner-direct purchases and actual bid pricing from GMP-1 and GMP-2.
The FWP construction estimate is just one component of the overall SE Project Phase 1 cost. The attached table (Exhibit A) provides a program estimate of $589,831,461 for all elements of the SE Project including well construction, land acquisition, design and permitting, program management and other fees/costs. Exhibit A also provides the January 2024 Business Plan program estimate along with the 60% design scenario that was provided in January. Since the January 2025 Business Plan has not been prepared and the 90% program estimate is similar to that for the 60% scenario, members can use the 60% scenario to predict annual costs until the January 2025 Business Plan is complete. Exhibit B provides the estimated annual payments for each member and is inclusive of all PRWC costs: Southeast Wellfield, West Polk Wellfield, Combined Projects, Administration, and Conservation.
The January 2025 PRWC Business Plan update will reflect the $589,831,461 90% Program Estimate for SE Wellfield Phase 1. With this update, the PRWC now projects a funding shortfall of approximately $133M. The PRWC is actively working with PFM Financial Advisors to develop a plan to close the funding gap.
Staff will also provide the PRWC Board of Directors with a traditional update on progress related to the design, permitting and construction of the Southeast Wellfield Project. Staff will provide an overview of:
1) Design and Cost Estimating;
a. Water Production Facility
b. Transmission Main
c. 90% Design - Construction Estimate
2) Bidding and Construction;
a. Production wells
b. Injection well
c. Transmission Main
3) Land acquisition;
4) Permitting;
Other key activities as needed.
RECOMMENDATION
This is an information item, and no action is required.
FISCAL IMPACT
The overall fiscal impact of the Southeast Wellfield project is estimated to be $589,831,461 as of the 90% construction estimate. The project costs will be covered by multiple funding sources (WIFIA loan, SRF loan, Heartland grants, State AWS grants, SWFWMD grants, and member payments).
CONTACT INFORMATION
Mary Thomas
Mark Addison