The Hoboken City Council will consider amending their deal with Veolia Water to include $606,000 in upgrades as part of a settlement, as well as a new five-year bulk water deal with the Jersey City Municipal Utilities Authority, at tomorrow’s meeting.
By John Heinis/Hudson County View
“On July 12, 2023, the Council of the City of Hoboken (the “City”) will consider for introduction an ordinance authorizing the execution of the Second Amendment (the “Second Amendment”) to the Amended and Restated Operation, Maintenance and Management Agreement between Veolia and the City,” law firm McManimon, Scotland & Baumann, LLC wrote in a July 7th memo to three city officials.
“The Second Amendment provides (i) for the acquisition and installation by Veolia of an Advanced Leak Monitoring and Management System (the “LDS”) in the City’s water transmission and distribution system (the “System”), and (ii) that Veolia will continue to observe and comply with the terms of the current bulk water agreement among Veolia, Jersey City and JCMUA through the earlier of December 31, 2023 or the execution of a new bulk water agreement among the City, Jersey City and JCMUA.”
The memo came just five days before the council voted unanimously (9-0) in favor of a $250,000 settlement with PSE&G and one of their contractors, J. Fletcher Creamer and Son, related to a significant water main break on February 27th.
The latter was on the hook for the payment and a city spokeswoman said at the time that the settlement would also include Veolia, formerly Suez Water, spending $600,000 on leak detection sensors.
The memo says that the water service provider has agreed to spend $606,000 to fund the acquisition and installation of 260 sensors.
“This project provides value to the City as it makes the funds which were previously designated for the acquisition of the LDS by the City available for other City projects; will reduce the amount of non-revenue water once the leaks identified by the LDS are repaired; and improves the infrastructure of the System by identifying and repairing vulnerable areas to prevent future water main breaks,” the law firm also mentions in the memo.
In mid-2019, Hoboken entered into a new 15-year agreement with Veolia (then Suez) and approving the second reading of the ordinance on Wednesday’s agenda would add the aforementioned upgrades.
As for the bulk water agreement with the Jersey City MUA, a new five-year deal not to exceed $200,000 annually will also be up for a vote at tomorrow’s meeting.
While the current contract expired at the end of 2022, the two government agencies have been operating under those terms as they worked on new parameters, according to city spokeswoman Marilyn Baer.
“The City has been diligently negotiating the new bulk water agreement with JCMUA since it expired in 2022. Since that time, the City and JCMUA agreed to operate under the previous agreement until the new agreement could be reached,” she told HCV.
“The administration looks forward to the City Council’s vote on the new five-year agreement which will ensure residents continue to have access to quality drinking water.”
The Jersey City MUA’s Board of Commissioners approved the measure, which allows for 1,587.75 million gallons of potable water per year, at their July 27th meeting.
The Hoboken council will convene tomorrow at City Hall, 94 Washington St., at 7 p.m., with the meeting streaming live on their Facebook and YouTube pages.
