Newton City Council awards paving contracts, adopts $50,000 Powell Bill amendment

Newton City Council on Sept. 22, 2020 approved split contracts totaling $421,740 to resurface six street segments and adopted a $50,000 budget amendment to draw on Powell Bill fund balance to cover the shortfall in projected paving revenue.

Public Works and Utilities Director Dusty Wentz told the council staff selected streets from the 2015 Asphalt and Sidewalk Condition assessment and recent visual inspections. The segments identified for work were E. Herman St.; Hamilton Dr. from Valley to Westside; Brentwood Cir. from Pinehurst to Brentwood Dr.; W. 6th St.; Chandy St.; and Cobble Stone Ct. Staff recommended splitting the work so Midstate Construction and J.T. Russell each receive the lowest-bid segments.

Wentz reported that the combined construction low bids totaled $421,740 and staff recommended a 10% contingency of $42,174, producing an estimated project cost of $463,914. He said the city’s FY2021 paving budget was originally set at $538,500 from the new Vehicle Tag Fee and the N.C. Department of Transportation Powell Bill Fund, but recent revenue projections have been revised downward. Wentz estimated approximately $140,000 from Powell Bill distributions (reduced because of lower fuel tax receipts during the COVID-19 pandemic) and approximately $260,000 from Vehicle Tag Fee collections for a revised estimate of about $400,000 available for paving. To bridge the gap, staff recommended appropriating $50,000 from the Powell Bill Fund balance that had been reserved for sidewalks. Wentz warned that if the full contingency is used the project would exceed current revenue estimates by $13,914 and that staff will monitor the Street Department budget for the remainder of the fiscal year.

Council acted on a package of motions. Upon motion by Mayor Pro Tem John Stiver, seconded by Council Member Ed Sain, the council unanimously awarded Base Bid 2 (Hamilton) and Alternate 1 (Brentwood) to Midstate Construction for $210,580. Upon motion by Council Member Jody Dixon, seconded by Council Member Ed Sain, the council unanimously awarded Base Bid 1 (E. Herman) and Alternate 3 (Chandy) to J.T. Russell for $211,160. The council also adopted the budget ordinance amendment of $50,000 as recommended by staff (motion by Mayor Pro Tem John Stiver, second by Council Member Ed Sain); these votes were recorded as unanimously resolved.

The meeting record notes ordinances, resolutions and proclamations are on file in the Office of the City Clerk. The council adjourned after completing the items on the special meeting agenda.

Next steps: staff will oversee contract execution and monitor paving revenues and expenditures during FY2021; any need to draw further fund balance would be reported to council.