Falls Township Awards Municipal Building Project Contracts

FALLS TOWNSHIP, PA —After discovering that errors had been made in the process of reviewing the bids for the municipal building renovation project, Falls Township Supervisors called a special meeting to rectify the situation.

And then they awarded contracts to move forward with the long-awaited construction project.

In May, supervisors rejected the construction bids for the municipal building and rebid the project because of “a fatal defect.”

However, officials realized there had been “some confusion over the bid bonds,” Supervisors Chairman Jeff Dence said.

During a special meeting last week, supervisors voted unanimously to rescind the previous rejection of the bids and issue notices of intent to award municipal building construction contracts. Supervisor Jeff Boraski was absent.

The board voted unanimously to award the general construction contract to Rycon Construction in the amount of $19.23 million.

Supervisors also voted unanimously to award the electrical construction contract to the Farfield Company in the amount of $3.75 million, which includes the fire alarm alternate of $205,000.

The plumbing construction contract went to Myco Mechanical, Inc., for $2.34 million.

The board also voted 4-0 to award the mechanical (HVAC) construction contract to Boro Construction in the amount of $4.68 million.

Officials said they are prepared to fund the project.

At its May meeting, 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.

“It’s indicative of the township’s financial position,” Gibbons said of the rating. “There was a lot of competition for these bonds.”

The bond was expected to be $22 million, but the high rating helped cut costs, Gibbons said.

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, Gibbons said.

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.