Water project bids too high for S. River

SOUTH RIVER — The borough’s plan to refurbish water lines has been thwarted due to high bids.

On Monday, Borough Engineer Bruce Koch recommended that the Borough Council reject the bids received and seek rebids for phase one of the water project in order to approve a lower bid and keep state funding.

"We do not have sufficient funds in our bonding or in our loan to make the award," said Koch.

According to Koch, the bids came in much higher than the borough had expected.

Therefore, in order to keep the borough bond status in good standing, Koch has recommended that the borough bid for what was initially the second phase of the water project next year.

The borough had estimated that the entire water replacement project would cost $5.4 million.

The borough hoped to award the bids by the end of the this month and begin performing some of the work by spring 2001.

But with the latest development, the borough will now likely bid for phase one of the project only.

That phase will remove internal pipeline corrosion and install a cement mortar lining, which will protect the pipelines from future corrosion.

The borough has until January 2001 to award a contract before being in jeopardy of losing funding.

"We certainly don’t want to delay this any longer than it has been," said Council President David Sliker.

A rebid proposal will likely be introduced at tonight’s council meeting, which is scheduled for 7:30 p.m. at the South River High School Library, Montgomery Street.

Unlike most municipalities, the borough of South River has its own water supply, which it sells to residents in conjunction with sewer use.

The borough has been working on making the borough’s water department self-supporting for some time now.

In order to make the borough’s water department self-sufficient, the borough had to increase the water tax rate for residents in 1999 and increase it again this year.

In December, residents were hit with a 9-cent tax-rate increase per $100 of assessed value.

The 9-cent tax-rate increase was the second in two years.

In 1998, residents were hit with the first 9-cent tax-rate increase.

That increase equated to about $24.47 a year for a homeowner with a home assessed at $77,000.

The increase was said to generate about $135,000 in revenue for one year.