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County awards two costly water projects as utilities staff warns of large CIP overages
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Summary
Lincoln County approved notices of award for an NC‑150 water main ($3.91M) and a water‑treatment disinfection system ($5.53M) after utilities staff warned projects are millions over original budgets and proposed CIP deletions and rate‑study updates to cover overages.
Lincoln County commissioners on Monday approved two notice‑of‑award motions for essential water projects after public‑utilities staff described significant cost increases since the projects were budgeted.
Andrew Bridal (Public Utilities) told the board that two pending bids represented a “reality check” for the county’s capital budgets. He identified the low bids and a combined overage: the NC‑150 West water main replacement and the water‑treatment plant disinfection system together were about $4.5 million over previously budgeted 2020 amounts. Bridal said staff will propose cuts, timing shifts and ordinance amendments so the county can fund necessary overages when the board considers FY‑27 budget actions.
Jonathan Drazenovich presented the notices of award. The NC‑150 West water main replacement low bid was Fuller Construction at $3,913,527.20; the board approved the award by voice vote. The water‑treatment disinfection system low bid was J.S. Harden and Company at $5,527,000; the board approved that notice of award as well.
Drazenovich explained the disinfection contract will switch the plant from an on‑site myox generation system to a bulk hypochlorite feed. He said the change requires additional HVAC and reclassification work at the chemical storage area, which contributed to the higher cost. Commissioners asked whether buying bulk hypochlorite improves safety; Drazenovich said it does not substantially alter chemical hazard but reduces electrical hazards tied to on‑site generation.
Public‑utilities staff said other projects on the horizon—an East Lincoln transmission main projected to exceed $20 million and several booster‑station replacements—may require financing and further CIP adjustments. The staff presentation described roughly $13 million in five‑year CIP savings after proposed deletions and timing changes, and said the county will rerun a rate study to assess potential water‑rate adjustments.
The board directed staff to prepare capital project ordinance amendments and work with finance on budget amendments so the county can proceed with contract execution and any required borrowing.
