Title
Dept/ Agency: Water and Sewer Utilities
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Intergovernmental Agreement
Purpose: Bulk Water Contract
Entity Name: City of Belleville, New Jersey
Entity Address: 152 Washington Avenue, #1, Belleville, New Jersey 07109
Contract Amount: Income Generating Contract
Funding Source: No municipal funds required
Contract Period: Ten (10) years for a period of August 1, 2020 through July 31, 2030
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
Additional Information:
Resolution ratifying and authorizing the Director of the Department of Water and Sewer Utilities to execute an agreement with the Township of Belleville, New Jersey for the Supply of Potable water from the City of Newark’s water systems for the period of August 1, 2020 through July 31, 2030.
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WHEREAS, the previous Bulk Water Contract with the Township of Belleville, expired on December 31, 2015; and
WHEREAS, the Township of Belleville desires to enter into an agreement with the City of Newark, for the supply of potable water from the City’s Pequannock water supply system; and
WHEREAS, the City of Newark, desires to accept and execute an agreement to cover the period from August 1, 2020 through July 31, 2030, a period of ten (10) years for continuation of said water supply; and
WHEREAS, the City of Newark is able and willing to supply water to the Township of Belleville.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Municipal Council hereby authorizes the Director of the Department of Water and Sewer Utilities to enter into and execute an agreement for the supply of water from the City of Newark’s water supply system to the Township of Belleville (“Bulk Water Contract”) for the period of August 1, 2020 through July 31, 2030.
2. The Municipal Council ratifies the terms of the Bulk Water Contract from August 1, 2020 to the date of the adoption of this authorizing resolution.
3. The Municipal Council further authorizes the Director of the Department of Water and Sewer Utilities to charge the Township of Belleville the rates indicated below for the period of August 1, 2020 through July 31, 2030:
• August 1, 2020 through December 31, 2020 at a rate of $2,950.00 per million gallons.
• Beginning January 1, 2021 the rate shall be $3,100.00 per million gallons, and annually thereafter the Director of Water and Sewer Utilities shall adjust the water rate not to exceed the Cost of Living Adjustment. This shall be based on the Implicit Price Deflator for State and Local Governments for New Jersey and published by the U.S. Department of Commerce, Bureau of Economic analysis. The Cost of Living Adjustment shall be effective on May 1st of every year of this agreement.
• The City of Newark reserves the right to increase the cost of water being provided under this contract in addition to the Cost of Living Adjustment for any and all charges, fees or expenses imposed by the State of New Jersey Department of Environmental Protection Agency, including,c but not limited to mandated fees and capital expenditure and improvement projects. This ontract will also provide for an automatic pass-through of any incurred cost from the North Jersey District Water Supply Commission.
4. The Municipal Council hereby ratifies the terms of the agreement from August 1, 2020 to the date of adoption of this resolution for the supply of water for the extinguishing of fires to fifty-five (55) hydrants in the Silver Lake section of Belleville and various other streets specified in the contract payment herein below:
YEAR RATE ANNUAL TOTAL
2020 $800.00 $44,000.00
2021 $850.00 $46,750.00
2022 $900.00 $49,500.00
2023 $950.00 $52,250.00
2024 $1,000.00 $55,000.00
2025 $1,050.00 $57,750.00
• After 2025 the rate shall remain at the rate of $1,000.00 per hydrant until the contract is renegotiated.
5. This agreement is awarded without competitive bidding pursuant to N.J.S.A. 40A:11-5(2) because the contraction parties are New Jersey municipalities.
6. No municipal funds are required or shall be expended. This is a revenue generating contract.
7. The Director of the Department of Water and Sewer Utilities, shall forward a copy of this resolution and contract to the Department of Environmental Protection, Division of Water Resources, Bureau of Water Supply of New Jersey and the North Jersey District Water Supply Commission. The agreement is subject to approval of the aforementioned.
8. The attached agreement shall become effective August 1, 2020 through July 31, 2030. Any changes to the agreement will require the approval of the Municipal Council.
9. A fully executed copy of the agreement shall be filed in the Office of the City Clerk by the Director of the Department of Water and Sewer Utilities.
STATEMENT
This resolution ratifies and authorizes the Director of the Department of Water and Sewer Utilities to enter into and execute an agreement with the Township of Belleville for the supply of potable water from the City’s Pequannock Water Supply System for the period of August 1, 2020 through July 31, 2030.