The vote on the second reading of Jersey City’s new $50 million, 40-year deal with their municipal utilities authority was carried at yesterday’s caucus.
By John Heinis/Hudson County View
” … We had some questions and concerns from council, obviously there’s been some public discourse on this, so we’re gonna carry it and we request that if there’s any questions or concerns, we got some already from [Ward E] Councilman [James] Solomon, just to send them our way and we’re going to out together a packet presentation before we proceed with anything here,” said Business Administrator John Metro.
“John, there’s been a lot of controversy over this: a lot of controversy,” replied Ward C Councilman Rich Boggiano, who along with Solomon voted no on first reading on September 20th (the vote was 6-2 with Councilman-at-Large Daniel Rivera absent).
“We’re gonna take our time and do our due diligence and iron it out prior to bringing it back to the council,” Metro responded.
When City Clerk Sean Gallagher asked if they were putting a date on when they were carrying the second reading to, Metro suggested holding a date in November to give all parties a sufficient amount of time to review the deal.
That was the full extent of the discussion on Tuesday for an agreement with the autonomous MUA that would require them to pay the city $30 million within 90 days from adoption, following by $10 million payments in both 2025 and 2026.
The current contract with the MUA requires them to pay the city $23 million annually as part of a 22-year deal thats runs through 2027; the new water services franchise and service agreement being considered would be good all the way through 2063.
Metro has previously said that the money would go towards eliminating existing bond debt, as well as that Veolia Water would be covering the $50 million the MUA owes the city.
The neighboring Hoboken City Council approved a five-year deal with the MUA not to exceed $200,000 annually back in August.
Former Gov. Jim McGreevey, an expected candidate for Jersey City mayor in 2025 with incumbent Steven Fulop running for governor, has come out against the deal, claiming it will drive up water prices for residents and consumers alike.
