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Low bid for Rains Road pump station comes in $2.7M over estimate; city pursues additional state loan
Summary
Bids for the Rains Road pump station upgrade returned a low of roughly $6.75 million—about $2.7 million above the CIP estimate. Staff said they are seeking additional state revolving funds and principal forgiveness; the city may need to use retained earnings if the loan does not cover the gap.
Finance Director Thomas Avant and utility staff told the committee that bids for the Rains Road Pump Station upgrade exceeded capital plan expectations. The low bid was roughly $6.75 million, about $2.7 million higher than the estimate in the CIP. Avant said staff has worked with NCDEQ and the Local Government Commission to pursue additional State Revolving Fund loans and principal forgiveness to close the gap.
Utility Director Morgan Huffman described the project’s scope and the operational need: the upgrade will replace portions of the station, increase pump capacity and replace an 8-inch force main with a 16-inch main to improve system performance. Engineer Clay Phillips told the Public Services Committee the replacement is designed to raise capacity from about 1,040 gallons per minute to about 1,740 gpm and includes adding an equalization basin and mechanical bar screens to reduce upstream flow pinch points. "Based on the study done at North Side, there is capacity," Phillips said, explaining design choices including a bore-under method to cross US 29/70 to avoid major traffic disruptions.
Avant said the city has received $4 million in grant funding and a $1 million state loan (with $500,000 of principal forgiveness), but if the state loan does not cover the full $2.7 million difference, the city may need to use retained earnings to fund the remainder. The committee forwarded related budget amendments and ordinance revisions to briefing.
