Falls Township Awards Contracts for Municipal Building Project

FALLS TOWNSHIP, PA — 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, Falls Township Supervisors have issued notices of intent to award municipal building construction contracts to the next lowest bidders.

At its meeting last week, supervisors 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.

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.

Contracts with Allstates and QPI would be formally approved at the board’s Aug. 28 meeting provided both meet the requirements of the Responsible Contractor Ordinance.

Given the magnitude of the building improvement project, the board and its professionals are striving to ensure the contractors hired to meet the criteria of the township’s ordinance and will be in the best position possible to deliver the services as contracted.

The board is prepared with the finances needed to fund the project.

At its meeting in May, supervisors authorized the 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 savings of municipal bond insurance and was able to secure a 3.31 percent interest rate from Bancroft Capital, LLC of Fort Washington, 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 Township will contribute $15 million from its general fund toward the project.

Gibbons estimates annual debt service at about $2.5 million over a 10-year term. The bond
would be repaid by December 2033, he said.

In other business:

Supervisors voted unanimously 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 files and will provide zoning information for specific parcels, Township Manager Matthew Takita said.