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Newton awards West A Street sewer rehab contract, seeks larger state loan to cover costs
Summary
The Newton City Council awarded a $1.23 million contract for the West A Street sewer rehabilitation and will request an NCDEQ loan increase from $597,875 to an estimated $1,112,695.69 to cover the eligible sewer work; full roadway overlay costs will be paid from city funds via a budget amendment.
Newton City Council unanimously awarded a construction contract to Hickory Sand Company, Inc. for the West A Street Sewer Rehabilitation project and approved a budget amendment to fund a separate paving alternate that will be paid from city funds.
Public Works and Utilities Director Dusty Wentz told the council the city experienced significant inflow during rain events from 2015–2017 that produced at least eight Notices of Violation from the North Carolina Department of Environmental Quality tied to sanitary sewer overflows along Hildebran Creek. Smoke testing and video inspection identified failing sewer mains along West A Street between N. Ashe Avenue and Springs Avenue, prompting the rehabilitation project.
Wentz said the city previously secured a State Reserve Loan through the North Carolina Clean Water State Revolving Fund for $597,875 in May 2019. Since design and bidding, staff and engineer Mead & Hunt estimated the eligible sewer-rehabilitation cost at $1,112,695.69 (which includes engineering fees, a 5% construction contingency and a 2% loan closing fee). Wentz said staff will submit a loan modification request to NCDEQ to increase the approved loan to that amount so the eligible sewer work can proceed.
The council also considered Alternate #1 — a complete asphalt mill and overlay of the project corridor — which NCDEQ will not fund beyond excavated areas. Wentz reported the alternate paving cost was $318,523.00 and staff recommends a city contingency of $31,800.00 for a total Alternate #1 cost of $350,323.00; the council adopted a Budget Ordinance Amendment to cover that amount.
Bidding results showed two responsive bidders. Hickory Sand Company submitted the lowest qualified base bid of $913,934.00; staff’s total eligible project estimate of $1,112,695.69 includes that base bid plus engineering and fees. Council voted unanimously to award the contract contingent on receiving the increased State Reserve Loan from NCDEQ and unanimously adopted the budget amendment to fund the paving alternate.
The motion to award the contract was made by Council Member Jody Dixon and seconded by Mayor Pro Tem John Stiver. The project will move forward subject to NCDEQ loan approval; council recorded no additional discussion about project schedule in the minutes.
