LOCK HAVEN — Though its legal council recommended it reject bids for a portion of a waterline project in Wayne Township, Lock Haven City Council voted to accept the lowest bid instead.

The project is a continuation of the city’s efforts to improve water infrastructure and its supply and an offshoot of its Department of Environmental Protection-required improvements to Keller Reservoir in McElhattan and Ohl Reservoir in Greene Township.

Following the installation of groundwater wells along Youngdale Road in 2023, the city is now working to connect these wells to the Central Clinton County Water Filtration Authority’s (CCCWFA) plant.

The scope of the project included the installation of a transmission main from the Youngdale wellfield and pressure reducing valve replacements. Bids for the project were accepted until Dec. 19 by city engineer Gwin Dobson and Foreman.

In January council moved to accept bids from C&R Directional for mechanical work at $2,363,000; and PRV vault and CCCWFA interconnection to Appellation Construction for $826,085. These bids were accepted with the stipulation the city is able to receive additional funds from PennVEST to cover the costs.

Council did not, however, move to accept Harger Utility for the transmission main installation.

At its meeting on Monday night, council heard from GDF Project Manager Devin Jarrett about this, and the firm’s recommendation — based on review of documents by legal council — to reject both Harger Utility’s bid and another that was submitted.

According to Jarrett, the recommendation was made due to the content of Harger Utility’s bid not matching what the Request for Proposal (RFP) was looking for.

He said, when meeting with officials in Wayne Township, they requested the installation of the water main be created using directional drilling so not to disrupt roadways or property.

“Harger’s bid contained approximately 90 percent open cut, which was an effort to make the project more cost effective,” he said. “The project was intended to be directional drill, and what was proposed was open cut. There were concerns about roadway restoration, property service — especially in areas of higher value like Linnippi Trail.”

Jarrett further stated the company hadn’t included information on asphalt restoration which could be required with using the open cut method.

Due to the city’s solicitor, Justin Houser, representing Harger Utility, the engineering firm sought legal advice from the city’s bond council, Eckhart Seaman.

Jarrett said GDF sent the bid documents to Harger Utility and C&R Directional Boring, LLC. Engineers also met with officials in Wayne Township.

“After speaking with (township officials) about the project, and in an effort to reduce cost, they agreed to let it happen. But they would also like any areas in the roadway that are cut to be full pavement restoration with milling and paving,” he said. “The reason for that is a lot of these areas have been paved in the last five years in very nice neighborhoods. They also want to avoid any unnecessary property damages to people’s property in the area.”

Jarrett repeated that Harger Utility’s bid didn’t accommodate these concerns raised by the township.

Eckhart Seaman, after reviewing the documents, also recommended the city should reject the two bids and rebid the project.

“Gwin Dobson and Foreman provided a recommendation to reject all the bids on the water line project and rebid the project in the hopes to reduce project costs for the trenchless method and provide a more accurate bid form and prevent any disputes during construction,” he said.

Jarrett emphasized the decision was not reflective of Harger Utility’s work.

“I want to point out that the engineer’s recommendation is not in any way to suggest a lack of competence in Harger Utility’s work, experience or capabilities,” he said, noting GDF and the company have a “strong relationship” which was demonstrated when the company helped with the emergency installation of the groundwater wells.

Matt Crawford, the Harger Utility project manager that put together the bid material for the Youngdale wellfield project, spoke in defense of the company and how it prepared the materials.

He noted the proposal does not step outside of the requirements for the project or exceed the proposed costs.

“With our bid submission it included the means and methods on how we would best recommend to install the work while remaining within the project documents buy-ins,” he said. “We’re not doing anything that is not payable or described outside of the installation of the pipe. Which is inclusive of directional drilling and open cut drilling.”

Crawford acknowledged it isn’t unusual for bids to be rejected during the process for a variety of reasons, this proposed decision was not ordinary.

He noted, typically when the lowest bid for a project is rejected it would go to the next lowest bidder.

“That’s not the case. The engineer is recommending rejecting all the bids for the contract and reissuing the project for rebid while sharing our construction means and methods with the other contractor,” he said. “We’ve already confirmed that their revisions on their plans and comments they plan to include are nearly identical to the means and methods we provided with our bid on how we would best do the project.”

He further noted the rejection of the bids and rebidding gives competitors the opportunity to review their proposed costs.

“They know exactly how much it costs to install a foot of this pipe, every fitting, every structure. Everything that we have a price on that is in that bid form has been shared with our competitors,” he said.

He pointed out the statements made regarding cost reduction, noting the approval of two other contracts for the project were overbid and still approved, while Harger Utility offered a bid below the engineer’s estimate.

“We wanted to sit down with the engineer to try and find ways to save money locally to help bring the overall budget down,” Crawford added.

Crawford said the entire situation was not typical, putting Harger Utility at a disadvantage for a rebid.

“Ultimately it is up to the city to make an informed decision with the best information they have available,” he said.

Following a brief discussion between council, which often were clarifying questions regarding the reason behind the recommendation to reject the bids, a motion was made to accept Harger Utility’s bid by Council Member Rick Conklin and seconded by Council Member Barbara Masorti.

The bid was accepted in a 5-2 vote, with Mayor Joel Long and Council Member Tami Brannan voting no.

“I don’t like going against what the attorney tells us. But it passes,” Long commented following the vote.