TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: November 5, 2025
Title
A RESOLUTION OF THE CITY OF MARGATE, FLORIDA, APPROVING TERMINATION OF NEGOTIATIONS WITH THE TOP RANKED FIRM, LAWRENCE LEE CONSTRUCTION SERVICES, INC., RELATED TO REQUEST FOR QUALIFICATIONS (RFQ) 2025-007 - WASTEWATER TREATMENT PLANT (WWTP) AERATION BASIN UPGRADES; AUTHORIZING THE ADMINISTRATION TO COMMENCE NEGOTIATIONS FOR AN AGREEMENT WITH THE SECOND HIGHEST RANKED FIRM, GLOBALTECH, INC. FOR THE PROJECT; PROVIDING FOR AN EFFECTIVE DATE.
BACKGROUND:
On May 7, 2025, under Resolution 25-027, the Commission authorized negotiations with Lawrence Lee Construction Services, Inc., the top ranked firm for RFQ 2025-007 - Wastewater Treatment Plant (WWTP) Aeration Basin Upgrades. However, during negotiations, the proposed design/builder submitted pricing for a Membrane Bioreactor (MBR) system treatment process that is not compatible with the City’s long-term financial model. In addition to the unfavorable initial cost of that process, the life-cycle cost to maintain the proposed process would result in what is estimated to be nearly double-digit millions of dollars in maintenance costs over the first thirty years - excluding inflation, cleaning chemicals, labor, increased electrical consumption, and operational downtime that would further elevate costs - and the process also poses potential odor concerns which, if they worsen in the future, would likely require additional capital investments for odor mitigation that are not currently accounted for in the proposal.
It is now clear to Staff that for a comparable investment level, the City could pursue an alternative treatment process offering equal or better performance, lower operational and maintenance costs, and a true 30-year sustainable service life consistent with the anticipated bond financing horizon. Accordingly, approval to terminate negotiations with Lawrence Lee Construction Services, Inc. under RFQ 2025-007 and authorization to initiate negotiations with the second highest-ranked firm, Globaltech, Inc. is requested. Staff is confident that an alternative treatment process, other than MBR, will better align with the City’s goals for durability, operational reliability, and financial sustainability, providing a more resilient 30-year solution consistent with the upcoming bond financing and future regulatory requirements.
RECOMMENDATION:
Approve termination of negotiations with Lawrence Lee Construction, Inc., and authorize negotiations with Globaltech, Inc. for a fixed-price design/build (FPDB) solution.
FISCAL IMPACT: None until a successful Agreement is negotiated and an award is approved.
CONTACT PERSON: Spencer L. Shambray, NIGP-CPP, CPPB, Purchasing Manager
Curt Keyser, P.E., DEES Director
Marta Reckzo, Assistant DEES Director (Utilities)