Dam reconstruction to begin in Boiling Spring Lakes despite cost-cutting measures

Nearly five years after Hurricane Florence destroyed them, crews will begin to reconstruct four dams in Boiling Spring Lakes.

While work is expected to start later this month, it'll proceed by working around shortfalls in financing after bids came in higher than expected.

The city will use value engineering for the project with McGill and Associates, its contractor Schnabel Construction, and the low-bidder, Sequoia Services LLC.

“Value engineering is not a negotiation with the contractor on pricing, but rather it identifies areas where alternatives may be used,” said city manager Gordon Hargrove.

While the parties identified about $2.4 million in possible savings, Hargrove noted those savings are based on assumptions.

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Alternatives include increasing the construction area to allow more work to occur onsite, reducing the cut-off wall from 24 inches to 12 inches, utilizing a closer soil disposal site, having the city take care of traffic control, and reducing the project duration from 36 months to 30 months.

Hargrove noted with the savings and the $2.8 million the city has already paid in design fees, the estimated project cost was reduced from $59 million to $53,785,000. However, he notes these are based on assumptions, and the city does share some risk in those assumptions. For example, Hargrove noted testing will be done to ensure the 12-inch wall will work. If not, the city will need to go with the 24-inch wall initially proposed, increasing the cost of the project by about $250,000.

A groundbreaking ceremony for the dam reconstruction project will take place at 10 a.m. on Saturday, June 17 at the reconstruction site for Sanford Dam on Alton Lennon Road.

Here’s a timeline detailing the project at different stages.

September 2018: Hurricane Florence brings 30 inches of rain to the area, bursting four dams in Boiling Spring Lakes, draining the city’s lakes. Clean up begins immediately after the storm but is extensive.

February 2020: City hires McGill and Associates for reconstruction design services.

January 2021: McGill and Associates announces the design phase is 90 percent complete.

May 2021: McGill is working with several agencies and FEMA to obtain the necessary permits. Various financing options are presented, and city begins working to secure remaining funding.

December 2021: Boiling Spring Lakes receives $14 million in funding from the North Carolina Legislature.

January 2022: N.C. Dam Safety approves the project application, which was submitted a year earlier.

August 2022: Commissioners vote to pursue a $20 million bond referendum to finance the project, with $15 million going toward construction and $5 million for contingencies.

More:Facing more than $20 million in debt, Boiling Spring Lakes pins its survival on voters

September 2022: McGill and Associates announces all permits are in hand. The city receives a Defense Community Infrastructure Pilot Program grant for $14.9 million, funding most of the project.

October 2022: City officials urge residents to approve the referendum for $5 million in contingencies.

November 2022: Voters overwhelmingly approve the referendum.

March 2022: The city receives two bids on its initial advertisement. Per statute, the city must re-bid the project before awarding a contract.

April 2022: Project is re-bid, and both bids are over budget.

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