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Kenly re-advertises $6.6M wastewater plant upgrade after no bidders; council approves tentative contractor award on separate contract
Summary
Town staff re-advertised bids for a roughly $6.6 million wastewater treatment upgrade after a lack of bidders; separately, the council approved a tentative award to Ralph Hodge Construction Company following discussion of bidding dynamics.
Kenly — Town staff told the council Jan. 13 that bids will be re-advertised for wastewater treatment plant improvements (project SRP-W-ARP-0099) after no qualified bidders responded to the earlier solicitation. The estimated project cost is about $6.6 million, roughly $900,000 higher than originally anticipated.
Municipal Engineering and Interim Town Manager Tony Sears said the upgrades would add aerators and supplemental oxygen and replace plant controls and analyzers installed in 2010. The scope also includes rehabilitation of pump stations and sewer lines, relining and replacing services as needed to reduce total nitrogen levels and extend the plant’s operational life. Staff described procurement complications and permit needs; the item was informational with further action pending once permits are secured and bids authorized by the state.
Separately, the council considered Resolution #2025-03 and approved a tentative award to Ralph Hodge Construction Company. During that discussion a councilor or staff member raised concerns that some contractors may overbid early rounds and re-enter later rounds, citing an example that roughly $2.5 million might have been left on the table by an initial low bidder; the transcript does not identify a named speaker for that remark. The tentative award passed by unanimous vote (Motion: LaWanda Neal; Second: Keith Davis; Vote: 4-0).
Why it matters: The wastewater upgrade is the town’s largest capital utility project noted in the meeting and affects long-term treatment capacity and compliance. Procurement outcomes and contractor selection will determine schedule and budget adjustments.
Details: Staff said procurement terms required adjustments and the project is proceeding through permit reviews before returning for final bidding authorization. The tentative award relates to a separate contract action documented in Resolution #2025-03.
Next steps: Staff will re-advertise the wastewater project for bids on Jan. 14, 2025, proceed with permit approvals, and forward recommended contracts or awards to council for final authorization.
