After determining that two of the contractors considered for the municipal building renovation project did not meet the qualifications outlined in the township’s Responsible Contractor Ordinance, the Falls Township Supervisors on July 24th issued notices of intent to award municipal building construction contracts to the next lowest bidders.
The board voted unanimously to award the general construction contract to Rycon Construction in the amount of $19,230,000; and award the plumbing construction contract to Myco Mechanical, Inc., in the amount of $2,343,000.
“Everything is in order,” township attorney Mike Clarke told the board of those contracts.
The governing body voted 5-0 to disqualify the mechanical and electrical contracts, which were tentatively approved at the June meeting pending the outcome of the Responsible Contractor Ordinance review.
The Supervisors voted unanimously to issue notices of intent to award the mechanical construction contract to Allstates Mechanical, Ltd. in the amount of $4,227,215; and the electrical construction contract to QPI Electrical in the amount of $4,290,000, which includes the fire alarm alternate of $209,000.
Given the magnitude of the building improvement project, the board and its professionals are striving to ensure the contractors hired meet the criteria of the township’s ordinance and will be in the best position possible to deliver the services as contracted.
At its meeting in May, the Supervisors authorized issuance of $20,055,000 in bonds to cover the municipal building construction costs.
Because Falls received a “very strong rating” of Aa2 from Moody’s Investors Service, the township realized a savings of municipal bond insurance and was able to secure a 3.31% interest rate from Bancroft Capital, LLC of Fort Washington, PA according to Christopher Gibbons, Concord Public Financial Advisors, Inc. founder and principal.
The bond was expected to be $22 million, but the high rating helped cut costs. Since the funds would not be needed immediately, Gibbons suggested investing money in the meantime.
The investment would generate $630,000 which could be earmarked for the municipal building project. Falls will contribute $15 million from its general fund toward the project.
Gibbons estimates annual debt service at approximately $2.5 million over a 10-year term. The bond would be repaid by December 2033, he said.
In other business, the board voted 5-0 to purchase the MapLink interactive zoning map from General Code in the amount of $10,640. The system will use the township’s existing GIS (geographic information systems) files and will provide zoning information for specific parcels, Township Manager Matthew Takita told the board.