The Lenoir City Council awarded a bid for its raw water intake project Tuesday morning during a meeting the council and Committee of the Whole at City Hall.

Council members, acting on the recommendation of Public Utilities Director Buddy Edmisten, awarded the bid to Crowder Construction Company of Charlotte. Crowder's bid came in at $4,742,800, well below the next lowest bid submitted.

Crowder was one of seven companies to submit bids for the project, which has a minimum construction budget of $5.3 million.

"It's a really good bid," Edmisten said. "They own a lot of their equipment that will be used, and they feel good about their bid."

The city has sought to move its intake system from the shore of Lake Rhodhiss into deeper water, and the Federal Energy Regulatory Commission (FERC) signed off on the project in mid-October.

The drought that started in March 2007 and extended into this year threatened to lower lake levels below the city's sluice gates. But mandatory water restrictions and a return to normal rainfall alleviated the situation earlier this year.

The drought was the second in the last decade and had city officials seeking a solution to the problem since Lenoir provides the majority of public water to county residents.

Funding for the project has come from different sources. A $1 million Golden LEAF Foundation grant along with $500,000 from the North Carolina Rural Economic Development Center are two of those sources.

City Manager Lane Bailey said the FERC approval and bid awarding also keep Lenoir eligible to receive an additional $3 million in federal stimulus funds, half through an interest-free loan and the other through a principal forgiveness program.

While the city is not guaranteed to receive the funding, additional monies could come from a state revolving loan at an interest rate of approximately 2 percent.

City officials said once the system is installed, customers will see improved water quality because the intake will be in a swifter current rather than along the shoreline. Officials also have said that the intake will be built to handle future expansion of the water plant.

"This moves our intake away from the shoreline into the river channel and protects us during times of drought, and we will have a better quality of water," Bailey said.

In other business, the council:

* Received a report on he status of orders of abatement issued by the council from Planning Director Chuck Beatty. Using a PowerPoint presentation, Beatty showed photos before cleanup took place at the properties and afterward, noting a marked improvement in appearance. He also told members that there still are several orders for demolition or renovation of houses, and city staff will burn as many as possible once asbestos reports are received. Asked about the status of the former Capt. Nick's Restaurant on Wilkesboro Boulevard, Beatty informed the council that the building will not be used as a restaurant any longer, instead becoming office space.

* Decided to postpone awarding a bid on the Blue Ridge Forest Development project. Edmisten told council members that the bids came in higher than expected with the low bid of $721,229 from Carolina Specialties Construction, higher than the $681,000 estimated cost of the project, and local companies did not submit bids. Edmisten suggested the bids be re-evaluated and addressed at the next council meeting Jan. 5, 2010, noting that there are 60 days to accept or rebid the project.

* Called for a public hearing to be held at the Jan. 5, 2010, meeting to consider adoption of a revised ordinance regarding no smoking on city facilities/grounds/vehicles except in designated areas.

* Approved a fee increase for driveway cuts. Beck indicated that the cost of concrete has increased to $124 per yard, and the current fee of $15 per linear foot or $270, whichever is higher, is not enough to cover costs. The council approved the recommended increase to $20 per linear foot or $400, whichever is greater.

* Reappointed Ed Blair as the city attorney for another two-year term.