Title
Dept/ Agency: Water and Sewer Utilities
Action: ( X ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Contract for Sale of Water
Purpose: Sale of Water from the City of Newark’s Pequannock Water Supply System to Township of Pequannock
Entity Name: Township of Pequannock
Entity Address: 530 Newark-Pompton Turnpike, Pompton Plains, New Jersey 07444
Contract Amount: $3,421.82 per million gallons from January 1, 2025 through December 31, 2025, which rate may be modified from year to year
Contract Period: January 1, 2025 through December 31, 2034
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( X ) n/a
Property Location:
(Acre(s)/Block/Lot/City/State)
Additional Information:
body
WHEREAS, the Township of Pequannock (the Township) wishes to enter into an agreement with the City of Newark, Department of Water and Sewer Utilities (the City) on a bulk purchase basis for the supply and purchase of potable water from the City of Newark’s Pequannock Water Supply System; and
WHEREAS, the previous agreement with the Township expired, nevertheless, the City continued to supply water to the Township; and
WHEREAS, the agreement will resolve the retroactive payments the Township owes the City for bulk water services provided since the expiration of the prior agreement in the amount of $770,296.29 as of July 2025; and
WHEREAS, the agreement is a “take or pay” and the Township must pay for a minimum of 182,500,000 gallons of water per year regardless of the amount delivered during the service year; and
WHEREAS, the City is able and willing to supply water to the Township; and
WHEREAS, the New Jersey Department of Environmental Protection requires bulk water contracts be for a period of at least ten (10) years and is subject to approval of the Division of Water Resources, Bureau of Water Supply of the New Jersey Department of Environmental Protection; and
WHEREAS, the City desires to accept and execute an agreement with the Township for a period of ten (10) years for the continuation of water supply and sale, from January 1, 2025 through December 31, 2034.
NOW THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee the Director of the Department of Water and Sewer Utilities is authorized to execute an agreement with the Township of Pequannock for the supply and sale of water on a bulk purchase basis from the City of Newark’s Pequannock Water Supply System to the Township of Pequannock and the Township shall receive and pay for 182,500,000 gallons of water per year for a rate of $3,421.82 per million gallons from January 1, 2025 through December 31, 2025, which rate may be modified from year to year as provided in the agreement and as prescribed by law and as more fully detailed in the agreement.
2. The Mayor and/or the Director are authorized to accept the balance of retroactive payments in the estimated amount of $770,296.29.
3. The agreement is ratified from January 1, 2025 to the date of adoption of this resolution.
4. No municipal funds need to be expended for this resolution. This is a revenue generating contract.
5. The Director of the Department of Water and Sewer Utilities shall file a copy of this Resolution and a fully executed copy of the Agreement with the Division of Water Resources, Bureau of Water Supply of the New Jersey Department of Environmental Protection.
6. The Director of the Department of Water and Sewer Utilities shall file a fully executed copy of the agreement shall be filed with the Office of the City Clerk.
STATEMENT
This Resolution ratifies and authorizes the Mayor and/or his designee Director of the Department of Water and Sewer Utilities to enter into an agreement with the Township of Pequannock for the supply and sale of water from the City of Newark and the Township shall pay for and receive 182,500,000 gallons of water per year for a rate of $3,421.82 per million gallons from January 1, 2025 through December 31, 2025, which rate may be modified from year to year for the period of January 1, 2025 through December 31, 2034 and as more fully detailed in the agreement, in addition resolving the retroactive payments in the estimated amount of $770,296.29.