The Amity Township Board of Supervisors approved two contracts on June 20 for digester rehabilitation projects at its Waste Water Treatment Plant, Old Philadelphia Pike.

The low bidder for general sewer construction work on the digester was Eastern Environmental Contractors, Green Lance, Montgomery County, at $347,390.

The nsecond contract for clean the digester and dispose of sludge and grit was awarded to McGovern Environmental, Inc., Chester Springs, at $44,500.

The contracts will be paid from the township's sewer fund.

Estimates for the digester repairs was $350,000 and $48,000 for digester cleaning.

Township Manager Charles E. Lyon said a five-month budget analysis indicates that the township's earned income is down $90,000 from last year and revenues are $153,000 behind last year's revenues.

He said there is also $37,000 of cable-related expenses.

Supervisor Terry L. Jones said the actual gap is $29,000 due to the township's receipt of $124,000 this year from worker's compensation and property liability insurance dividends.

Lyon will provide the board at its July 3 meeting with the impact of the recent police department contract arbitration costs.

He said that labor cost breakdown will provide a good basis to start the discussion for the 2013 budget and solutions to the township's increasing police department costs.

The board approved on June 6 a new, three-year police contract with an arbitrated 3.5 percent annual increase that is retroactive to Jan. 1.

That increase is on top of a four percent increase the police department arbitrated three years ago, and which expired Dec. 31, 2011.

Board Chairman Robert R. Yanos said without a new, large revenue stream the township's options for 2013 with this increased expense will be to increase taxes or reduce the police force.

He said the board did not increase taxes for 2012 despite the tight budget.

The board unanimously approved the resignation of George Ferensick from the Planning Commission and announced that it is seeking applicants to fill the seat.

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