Palm Bay approves surety completion agreement for delayed South Regional Water Reclamation Facility

The Palm Bay City Council approved a completion agreement that will allow the city to use subcontractors assigned by the project surety to finish the South Regional Water Reclamation Facility.

City Attorney Smith told council RJ Sullivan had been found in default and the city terminated the prime contract. The agreement with the surety assigns subcontract rights to the city so work can continue without rebidding and allows the city to retain $828,000 in contract retainage as liquidated damages while the surety paid $200,000 to bring subcontractors current.

Why it matters: Officials said the project is years behind schedule and additional work will push costs beyond the original contract price. Smith said the agreement preserves the city’s remedies against RJ Sullivan and provides a pathway to complete the plant using existing subcontractors.

Council action: Deputy Mayor Jaffe moved approval; Councilman Johnson seconded and the motion passed. The transcript records no individual roll-call votes or a detailed tally; the mayor announced the motion passed.

What comes next: City utilities staff will proceed with assignment of subcontracts and work with the surety and remaining subcontractors to complete the facility; officials expect final cost and schedule updates to be provided in subsequent reports to council.