Nags Head approves contracts for two South Old Oregon Inlet Road drainage projects, OKs budget amendment

The Nags Head Board of Commissioners on Jan. 23 voted to award construction contracts for two South Old Oregon Inlet Road drainage projects and approved a budget amendment to cover a remaining funding shortfall.

Town staff recommended and the board approved awarding Project Area 13 (Hargrove Street to Tides Drive) to Hatchell Concrete for a negotiated, adjusted price of $1,300,415 and awarding Project Area 12 (James Street to just south of Junko Street) to Fred Smith Company for an adjusted price of $1,808,058. The board approved both awards and the related budget amendment by voice vote, with no recorded opposition.

David, a town staff member presenting the projects, told commissioners the two projects had been bid twice after the initial round produced only two bidders, triggering procedures under North Carolina General Statute 143‑132 for procurement. He said Hatchell's original Project 13 bid was $1,712,810 and Fred Smith's was $1,814,148.10. Through a negotiated value‑engineering process — which included trimming the infiltration‑trench design (reducing a 24‑inch pipe to 18 inches and replacing aggregate/filter fabric with a perforated sock pipe), lowering trench depth, and reducing mobilization and traffic control items — staff reduced the Hatchell price by roughly $412,000 to the adjusted $1,300,415 figure.

On Project Area 12, David told the board that Hatchell's rebid (which included an add alternate for permeable pavers) was $2,513,291 while Fred Smith's rebid was $2,091,500. Staff identified $283,442 in value‑engineering savings to arrive at the adjusted Fred Smith price of $1,808,058; the add alternate (permeable pavers) was priced at $16,000 and remained included in the adjusted total.

David summarized specific savings items: reducing pipe size saved about $250,000; cutting dewatering needs saved about $50,000; reducing mobilization saved roughly $75,000; and traffic‑control reductions saved about $25,000. He said an on‑site design change (removing a planned solar LED street light) would be handled separately rather than through the construction contract.

When asked whether hydrant relocation was the town's responsibility or the contractor's, David responded that the contractor would perform the relocation. He also told commissioners the sock‑pipe approach has been used on recent local projects and "does well with going ahead and lowering the groundwater as well as being able to accommodate surface runoff."

Staff proposed a budget amendment to close the remaining shortfall for both projects. David said the town has roughly $100,000 of available Powell Bill funds that could be applied and requested a budget amendment of $96,559 to cover the immediate construction shortfall plus about $41,000 to cover construction contingency and construction administration through the end of the fiscal year; the board approved the amendment and will be asked later in the year for any additional funds required to carry construction through completion.

David warned that permitting and scheduling constraints extend the projects' timelines: N.C. Department of Transportation restrictions limit lane or road closures from May 15 through Sept. 15, and dune infiltration work cannot occur along the oceanfront "between the end of April and mid‑November" because of turtle nesting season. He estimated substantial completion for both projects by mid‑2026.

In closing remarks under manager items, Andy, the town manager, noted that long‑time employee Carolyn Morris reached a 30‑year milestone and that the board will recognize her at the regular February meeting.

The board took the contract awards and budget amendment by voice vote during the special meeting and then adjourned.