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The Lycoming County Water & Sewer Authority approved HRI, Inc., Muncy for the sewer rehabilitation project in Montoursville during its regular monthly meeting Wednesday.
The firm's bid of $137,627 was the lowest of four submitted for the work along Church Alley.
"We were very happy with that bid," Authority Executive Director Christine Weigle said.
The project, which impacts 14 customers, is expected to begin in May, she noted.
In other matters, the Authority agreed to waive late payment penalty fees for monthly customer bills for the month of January.
Since last spring at the outset of the COVID-19 pandemic, the board has taken action each month to waive the fees.
The Authority agreed to apply for a $100,000 grant to help fund efforts to alleviate stormwater issues for South Williamsport and DuBoistown as part of the Chesapeake Bay Reduction Pollution Plan.
Richard McCarty and Monica Luo, owners of a Lycoming Mall business, questioned why the business was billed for water and sewer service last year.
McCarty said it seemed unfair to pay for the months from March to August when the business was closed due to the pandemic.
Weigle noted that the business was assessed for fixed costs, although not for variable costs based on water consumption.
"We adjusted their bill for variable costs which was not adequate in their mind," she said. "It's a difficult situation. I understand it."
The Authority met in executive session to consider legal issues.