Derry Township authority rejects sewer line and trail bids; project survives vote to halt it

Derry Township Municipal Authority this week rejected bids for an over-budget sewer line and trail project.

But the proposal, which would construct a recreational trail from Keystone State Park to New Alexandria, remains alive after authority members reversed their decision to halt it. The project also would provide sewage service to the park and about 30 residential customers.

Construction bids opened Monday for sewers and a pump station came in at a little under $1.9 million — still within the $2.27 million in available funds, after adding in nearly $319,000 in engineering and legal fees.

But bids for the trail, which would follow the sewer line right of way, and several bridges needed to bring it across Loyalhanna Creek and its tributaries, came in at about $2.4 million. And that increases to $3.74 million when legal and engineering costs are added.

That total is more than $1.7 million beyond available funds for the non-sewage portion of the project. It’s a burden that some authority members feel is too high to pass along to customers.

After seven years of planning, authority member Joe Dixon said, “The project is coming to a head one way or another.

“Some of our board members feel we shouldn’t be spending our customers’ money on bridges. The bottom line is: the project came in $1.7 million over the projected costs. We don’t have the money to cover that.”

Authority members have said they don’t want to charge the 30 new customers a debt service fee much beyond $60 per month, since the top monthly fee paid in other parts of the authority’s service area is $58. But some on the authority have balked at the idea of spreading a portion of the debt service among all 4,500 authority customers.

The two aspects of the sewer and trail project are linked not only by the engineered design but because some of the trail funding is being used as a required match toward the sewer funding. Project funding includes a $1.2 million PennVest loan, a $1 million PennDOT grant and three grants from the state Department of Conservation and Natural Resources (DCNR) totaling more than $1.57 million.

Derry Township has pledged $100,000 to help control affected sewage customer rates.

During a virtual meeting Wednesday, authority engineer Ed Schmitt said recent regulatory decisions increased the length and height of many of the bridges and drove up project costs. He suggested eliminating the two largest bridges, which cross an oxbow bend in the Loyalhanna, and pursuing them later as a separate project.

But some members said they would not support a project that isn’t complete.

Chairman R. Daniel Duralia and Gilbert Stemmler supported Dixon’s motion to halt the project. Ellen Keefe and Patrick DiCesere were opposed.

“We spent a lot of time and energy on this project,” said Duralia. “I think it’s time to move on.”

Keefe said she believes the project will pay for itself in the long run.

“We need something that’s going to promote growth and bring people into the community,” she said.

DiCesere pleaded for more time to consider other options before shelving the project.

Dixon ultimately rescinded his motion and the four other authority members agreed, allowing Schmitt to consider possible project revisions.

“There might be some wiggle room with the design,” Dixon said.”If we can get DCNR to work with us on the bridge work, we might be able to get that down to a number we can afford.”

Manager Carol Henderson said the authority may be able to conduct a second round of bids, for a revised project, in January.