ROOSEVELT — The Borough Council unanimously voted to award the bid for rehabilitation of the town’s 73-year-old water tank to a Millstone company at the Nov. 8 meeting.
U.S. Tank Painting Inc. had the lowest responsible bid for the work at $495,000. Councilman Dan Hoffman was absent.
The governing body also rejected a bid from a Shrewsbury company for water system improvements totaling $334,000. The resolution noted that state statutes permits contracting units such as the borough to reject all bids when the lowest bid substantially exceeds the cost estimate for the goods and services, or exceeds the contracting unit’s appropriation for goods and services.
The council discussed rebidding for the water system improvements. Councilman Jeff Ellentuck noted that the borough bonded for $565,000 for the water tower, so some money may remain for improvements unless there are large cost overruns. He estimated the water improvements to cost about $136,000. The improvements include booster pumps and certain items for homeland security purposes, such as new fencing, doors and windows.
Councilman Kirk Rothfuss said additional improvements “may be coming down the pike.” He said items at the sewer treatment plant need replacing or repair, such as the grit chamber. Rothfuss said that water/sewer operator Toby Moore could repair the booster pumps, as he has done in the past.
At an earlier meeting, Ellentuck reported that the borough borrowed $2.5 million from the Federal Housing Administration on July 1, 1992. As of Dec. 31, 2009, the borough still owed
2,081,406. In 2009, the borough paid $34,380 in principal and $142,634 in interest. The final payment for this loan is due in 2031, he said.
At the Nov. 8 meeting, Ellentuck said that while everyone agrees the town doesn’t want to borrow more money, interest rates are very low right now for borrowing money for the water improvements. He said he would get an answer from borough engineer Carmella Roberts regarding the law for the homeland security items.
Councilman Tom Curry said that the borough is now paying for not maintaining the water system in the past. Councilwoman Arlene Stinson said that interest rates may go up in the future, but the community and its need for water will still be here.