Lock Haven council rejects bids for Sunset Pines Phase 2 after water utility refuses relocation costs

On Feb. 10 the Lock Haven City Council voted to reject all bids for the Ashmore Garden / Sunset Pines Phase 2 project after Suburban Water declined to cover the cost of relocating an approximately 270-foot water line that sits where the city must install stormwater infrastructure.

City staff told the council Suburban’s written response offered no payment for relocation and said the only cooperation would be if “the city pays lock, stock and barrel for the relocation of the line, period.” Staff said the city does not have taxpayer dollars set aside to relocate the line and cannot use water-fund money for the work because the line is on a different (commercial) system.

Council members pressed staff about alternatives, including whether city crews could dig the trench while Suburban replaced the line, but staff said no formal written proposal from Suburban had been received and prior communications (letters and emails dating back to mid-2021) went unanswered. Staff and councilors said the lack of an agreed, documented plan left the city with three options: proceed at city expense, delay the project, or reject the bids. The council chose to reject the bids.

Council members voiced frustration with Suburban’s stance. During debate one councilor called Suburban’s refusal “absolutely stupid” and several others said the utility’s response reflected a limited view of its responsibilities to customers. Staff noted the city previously borrowed $450,000 in 2021 to assist a neighboring township with water-line replacement and waived certain fees in the spirit of cooperation, but said Suburban’s current position leaves the city unable to move forward without new funding or agreement.

The motion to reject all bids passed by the council vote recorded at the meeting. Staff said the decision will likely push the Phase 2 construction back two to three years absent a negotiated resolution with Suburban Water.