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Interlocal Agreement - Union County Water Downtown Waxhaw Cast-Iron Water Main Replacement Paving by Town of Waxhaw
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INFORMATION CONTACT:
John Shutak, Union County Water, Engineering Director, 704-283-3651
ACTION REQUESTED:
Authorize the County Manager to negotiate and execute an agreement with the Town of Waxhaw substantially consistent with this agenda item
PRIOR BOARD ACTIONS:
1) January 19, 2022, Regular Meeting, Agenda Item #22-827 - Approved Transystems Corporation d/b/a SEPI, A Division of Transystems, Task Order 2021-02 for surveying services.
2) July 14, 2025, Regular Meeting Agenda Item #25-445 - Approved Dawn Development Inc. contract for Construction services of the Waxhaw Cast-Iron Water Main Replacement Project.
BACKGROUND:
The Capital Improvement Plan (CIP), adopted by the Board of County Commissioners (BOCC), includes the Water Rehabilitation and Renewal Program’s annual allocation to assess, prioritize, and rehabilitate/replace water distribution system infrastructure. Water lines within the Town of Waxhaw are aged, cast-iron water lines in need of replacement to improve fire flow and reduce emergency repairs. This project consists of approximately 8,000 linear feet of 2-inch, 6-inch, 8-inch, and 12-inch water lines that will address the deficiencies of this aged infrastructure.
On March 31, 2025, the Procurement Department partnered with Union County Water (UCW) to issue an Invitation for Bid 2025-045 Downtown Waxhaw Cast-Iron Watermain Replacement. On April 29, 2025, two (2) bids for the title project were received. Since fewer than three (3) bids were received, the submitted bids were returned to the bidders unopened.
On May 8, 2025, the Procurement Department partnered with Union County Water to re-issue an Invitation for Bid 2025-045 (Rebid) Downtown Waxhaw Cast-Iron Watermain Replacement. On May 20, 2025, three (3) bids for the title project were received and processed. All bids were tabulated, reviewed and certified by UCW engineering staff. The bids were reviewed to confirm the lowest responsive, responsible (qualified) bidder in accordance with N.C.G.S 143-129(b) and Article 19.04 of the Instruction to Bidders. N.C.G.S 143-129(b) gives the governing body the authority to reject any proposals when in the best interest of the governing body and requires that the contract be awarded to the lowest responsible bidder, taking into consideration quality, performance, and the time specified for the work. Article 19.04 of the Instruction to Bidders, which was part of the bid documents, states “In evaluating whether a Bidder is responsible, Owner will consider the qualifications of the Bidder and may consider the qualifications and experience of Subcontractors and Suppliers proposed for those portions of the Work for which the identity of Subcontractors and Suppliers must be submitted as provided in the Bidding Documents.”
UCW engineering staff’s review determined that the apparent low bidder at the time of the bid opening, GE Construction Co., with a bid amount of $2,218,341.00, did not have the requisite experience and qualifications to perform the project as they provided no experience constructing public utility system water lines; therefore, GE Construction was determined to not meet the responsibility standard for this particular project as required by N.C.G.S. § 143-129 and Article 19 of the Instructions to Bidders. Therefore, it was recommended that the Board officially reject the bid. The Construction Services Contract was therefore awarded to Dawn Development LLC.
During the course of construction UCW, in collaboration with Town Of Waxhaw, proposed to streamline all asphalt repairs for each of the concurrent UCW water line and sewer line projects by consolidating the scope of asphalt repair under Town of Waxhaw purview, execution and administration on a cost reimbursable pay structure in the amount of $407,400.00 for Cast-Iron Water Main Replacement asphalt repairs. This equal amount would be deducted from the construction contract with Dawn Development Inc. providing an equal offset of funds available while enabling the Town of Waxhaw to manage the repair work. It is therefore recommended that the Board authorize the County manager to execute the proposed Interlocal Agreement with the Town of Waxhaw.
FINANCIAL IMPACT:
Funding is available within the adopted account 60184130 Waxhaw Water Rehabilitation and Replacement to support the construction contract amount of $2,882,295.00.
The proposed reallocation of $407,400.00 of the previously awarded amount would be deducted from the $2,882,295.00 existing contract with Dawn Development Inc. and applied to Town of Waxhaw asphalt repairs in like kind per the attached exhibit on a cost reimbursement not to exceed amount.