Bidding adds to fuel costs for Liberty / By Martha Knight

LIBERTY VILLA—Liberty Township supervisors had one bid to show for their recent ad for diesel fuel, last Thursday morning, and it was more than some other vendors would offer on a “quotation” basis.

Not only that, accepting the bid, $3.245 per gallon, would lock the township into a year-long agreement to purchase from the bidder at that price, even though the general price of that and other motor fuels fluctuates rapidly, and is predicted to drop in the coming weeks.

Supervisor chairman Gary Turner expressed great frustration with the situation, and fellow supervisors Bruce Klein and Fred Ernst III were just as disturbed over the Catch 22 aspects of Pennsylvania’s bidding requirements.

Act 92, signed into law in November 2011, raised bid threshold from $10,000 to $18,500. That is, municipalities and public agencies including school districts, boroughs and townships would henceforth have to advertise for sealed bids for all contracts or purchases in excess of $18,500.

For purchases or contracts that would cost between $10,000 and $18,500, it would be necessary to obtain at least three written or phone quotes from potential suppliers. That method had been used by the township in the past.

Recently fuel purchases have surpassed $18,500 within the span of a year, meaning that the township would have to switch to a formal bidding process. The bid opening date was delayed until September 25 because the supervisors had to cancel the meeting scheduled for September 9.

The township now has its own pumps at the township government complex, south of Port Allegany, off Route 155. It is seeking a supplier to furnish diesel for the next 12 months. A bulk purchase saves the township and its taxpayers some money, and the township does not have to pay fuel taxes, but the requirement to seek bids rather than less formal quotations is proving costly this year.

To add to the irony, Turner said, two other suppliers have quoted lower prices when telephoned, but the supervisors may not consider those quotes because the suppliers had not chosen to bid.

After discussing the situation for some time, the supervisors finally opted to take no formal action on the bid, which was from Kane Liquid Fuel, giving Turner time to consult with an expert in such matters. The supervisors’ October meeting is scheduled for October 14.

Supervisors reviewed the contents of a letter from McKean County District Attorney Ray Learn’s office, asking the township to adopt a scrap metal ordinance. They were unwilling to do so, saying it would lead to enforcement duties they are unable to undertake.

A letter from the Pennsylvania Department of Environmental Protection (DEP) was discussed. It pronounced the township’s current Act 537 plan inadequate with regard to its sewage plan, and called for revision.

“After $40,000!” commented Ernst. He was referring to a major revision of the township’s Act 537 plan a few years ago, for which reimbursement of at least half the cost had been promised, but never received.

Turner said the water-sewer line extension project planned for the Liberty Villa area no longer relies on obtaining a right-of-way from the Western New York and Pennsylvania Railroad. Instead, a path for the mains will be drilled underneath the tracks. There will be a permit fee, but it will cost far less than the company had demanded for a right-of-way.

The road crew plans to create better ditches along Two Mile Road, finish sluice projects, and do a major bridge overhaul at Cady Hollow.