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Request For Bids: Sale of Water System
BID #: 2
ISSUED: 2/1/2026
DUE: 4/1/2026
VALUE: Highest value for the Water System
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Executive Summary
This document is a Request for Bids (RFB) issued by the City of Rahway, New Jersey, for the sale of its Water System. The Water System includes the water distribution network, treatment plant, and associated infrastructure. The City seeks a qualified buyer who can ensure long-term water needs and provide high value for the Water System, pay off debt, minimize rate volatility for ratepayers, transfer regulatory responsibility, and reduce environmental and financial risk. Bidders are instructed to submit both a 'Base Bid' and an 'Alternate Bid' based on differing intentions to utilize existing water treatment plants. Bids are due no later than April 1, 2026.
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Document Text
--- Document: Request for Bids: Rahway Water Utility ---
CITY OF RAHWAY
IN THE COUNTY OF UNION, NEW JERSEY
REQUEST FOR BIDS
SALE OF WATER SYSTEM
Issued: FEBRUARY 2026
Bids Due: APRIL 1, 2026
Site Visit Meeting: FEBRUARY 25, 2026
ISSUED BY:
City of Rahway
1 City Hall Plaza
Rahway NJ 07065
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Table of Contents
1.0
INTRODUCTION AND DESCRIPTION OF THE BID PROCESS .............................................................. 3
1.1
Issuing Entity, Nature and Purpose of Procurement ................................................................................. 3
1.2
General Overview ......................................................................................................................................... 3
1.2.1 Utility Assets to be Sold by the City ........................................................................................................... 3
1.2.2 Explanation of Real Property Interests to be Conveyed ........................................................................... 4
1.3
City Objectives .............................................................................................................................................. 4
1.4
Bid Submission Date ..................................................................................................................................... 4
1.5
Project Participants and Advisors ............................................................................................................... 4
1.6
Inquiries and Correspondence ..................................................................................................................... 4
1.7
Procurement Process .................................................................................................................................... 5
1.7.1 Legal Authority ............................................................................................................................. 5
1.7.2 Schedule Adherence .................................................................................................................................... 6
1.7.3 Pre-Bid Meeting and Site Visits ................................................................................................................... 6
1.7.4 Written Questions Regarding RFB or Process ........................................................................................... 6
1.7.5 Addenda or Amendments to the RFB ......................................................................................................... 6
1.7.6 Cost of Bid Preparation .............................................................................................................................. 7
1.7.7 Correction of Errors ................................................................................................................................... 7
1.7.8 Modification of Bids .................................................................................................................................... 7
1.7.9 Disclosure of Information in Bids .............................................................................................................. 7
1.7.10 Withdrawal from Procurement Process ................................................................................................... 7
1.7.11 Disposal of Bids ........................................................................................................................................... 7
1.7.12 Rights of the City and Conditions ............................................................................................................. 7
1.8
Pay-to-Play Law ........................................................................................................................................... 9
1.9
Pending Litigation, Conflicts of Interest .................................................................................................... 9
1.10 Public Referendum ........................................................................................................................................... 9
1.11 Independent Due Diligence Required .............................................................................................................. 9
2.0
BACKGROUND INFORMATION ...................................................................................................................9
2.1
General City Profile ......................................................................................................................................9
2.2
Description of Water System .................................................................................................................... 10
2.3
Rates ............................................................................................................................................................ 10
2.4
Annual Financial Statements and Audit Reports ..................................................................................... 10
2.5
Water Billing ............................................................................................................................................................... 10
2.6
Existing City Operations Agreement ........................................................................................................ 11
3.0
COMPANY RESPONSIBILITIES .................................................................................................................. 11
3.1
General ........................................................................................................................................................ 11
3.2
Operation of City Water System ............................................................................................................... 11
3.3
Municipal Consent and BPU Approval of Sale ........................................................................................ 11
3.4
Water Pressure ........................................................................................................................................... 12
3.5
Water Quality and Secondary Maximum Contaminant Level (SMCL) Water Pressure................... 12
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3.6
Rate Plan ..................................................................................................................................................... 12
4.0
QUALIFICATION CRITERIA ....................................................................................................................... 13
4.1
General ........................................................................................................................................................ 13
4.1.1 Transaction Cost Reimbursement ............................................................................................................. 13
4.1.2 Technical Qualifications and Experience ................................................................................................. 14
4.1.3 Financial Strength ...................................................................................................................................... 14
5.0
INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF BIDS ................................................... 14
5.1
Submission Requirements ......................................................................................................................... 14
5.1.1 Bid Submission; Timing of Submission; Number of Bids to be Submitted ............................................ 14
5.1.2 Bid Forms.................................................................................................................................................... 15
5.1.3 Completeness .............................................................................................................................................. 15
5.2
Organization and Form of Bid................................................................................................................... 15
5.2.1 Organization of Bid .................................................................................................................................... 15
5.2.2 Form of Bid ................................................................................................................................................. 15
5.3
Section I: Executive Summary................................................................................................................... 15
5.3.1 General Provisions ..................................................................................................................................... 15
5.3.2 Letter of Qualification, Letter of Intent and Signature Requirements ................................................... 15
5.3.3 Bid Bond ...................................................................................................................................................... 16
5.4
Section II: Technical Qualifications and Experience ............................................................................... 16
5.4.1 Qualifications and Experience of Bidder .................................................................................................. 16
5.4.2 Qualifications and Experience of Key Personnel ..................................................................................... 16
5.4.3 Regulatory Compliance .............................................................................................................................. 16
5.4.4 Other Water System Acquisitions ............................................................................................................. 16
5.5
Purchase Price ............................................................................................................................................ 16
5.6
Financial Qualifications and Rate Plan..................................................................................................... 17
5.6.1 Financial Strength ...................................................................................................................................... 17
5.6.2 Capital Investments .................................................................................................................................... 17
5.6.3 Customer Service Plan and Plan for Billing Customers .......................................................................... 17
5.6.4 Rate Plan ..................................................................................................................................................... 17
5.6.5 Exceptions to the Agreement of Sale ......................................................................................................... 17
APPENDICES
A.
Evaluation Report
B.
Bid Forms
C
Registration for Updates
D.
Ordinance and Rates
E.
Operating Budget and Annual Audit
F.
Draft Agreement of Sale
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1.0
INTRODUCTION AND DESCRIPTION OF THE BID PROCESS
1.1
Issuing Entity, Nature and Purpose of Procurement
Through the issuance of this Request for Bids (the “RFB”), the City of Rahway, New Jersey (the
“City”) is hereby requesting Bids from parties interested in entering into an agreement to purchase the City’s
Water System (the “Water System”, including as such term is further hereinafter defined below). The Water
System is owned by the City and operated and maintained by Veolia Water New Jersey (Veolia) pursuant to
an agreement by and between the City and Veolia (formerly SUEZ Water) dated as of May 15, 2017 (the
“Public/Private Agreement” or the “Veolia Agreement”). After analyzing the operations and finances of the
Water System and the anticipated future needs of the Water System, the City Council has concluded that it
should issue this RFB to determine if a larger, private sector enterprise would be better suited to address the
long-term water needs of the City’s customers. In the event that the City receives one or more advantageous
bids and decides to move forward with the sale process (the “Sale”), a public referendum will be conducted
in accordance with N.J.S.A 40:62-3 et seq.
The RFB will include two (2) separate bids:
1) The “Base Bid” is the purchase price in which the purchaser will take over ownership of all
property, infrastructure, and equipment (including ownership of the existing water treatment
plant). The City will have the right of first refusal should the purchaser choose to sell any
property within the City of Rahway.
2) The “Alternate Bid” is the purchase price in which the purchaser does not intend to utilize the
water treatment plant and will not take ownership of the property, infrastructure, and equipment.
The Water Treatment Plant property will be maintained by the City of Rahway.
1.2
General Overview
The City’s water distribution system consists of 96 miles of water main, the diameter of which ranges
from 2 inches to 48 inches, approximately 769 fire hydrants, two elevated storage tanks (0.5 Million-Gallons
(MG) and 1.5 MG), 3.0 MG ground storage tank, and 1,436 water system valves (and 753 hydrant valves).
The Rahway water treatment plant’s (the “WTP”) design capacity is 7.7 MGD (Million-Gallons Per
Day). The WTP receives its water from the Rahway River (the “River”). The River is located in the North
Branch Watershed, which encompasses 40 square miles in Union and Essex Counties. The City supplements
this supply by purchasing treated water from the Middlesex Water Company (“MWC”). The operation and
maintenance of the Water System including the distribution and treatment systems is performed by Veolia
pursuant to the terms of the Public/Private Agreement.
For a comprehensive description of the System, see Water System Evaluation Report dated January
15, 2026, prepared by T&M Associates (the “T&M Report”) which is included with this RFB as Appendix
A.
1.2.1 Utility Assets to be Sold by the City
The City is seeking bids, subject to the requirements stated hereinafter in this RFB, for the purchase
of all rights in real property (the “Property”), facilities and stationary equipment, relating to the public
drinking water system identified in the T&M Report. The purchase will include all existing assets and rights
thereto, including water treatment facilities, surface intake, water storage tanks, water mains, water
distribution systems and appurtenances, but shall exclude personal property, vehicles, cash, securities and
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accounts receivable of the water system for services rendered up to and including the Closing Date. Further,
certain permits and licenses currently held by the City will have to be issued or transferred to the Buyer. The
assets to be purchased by prospective bidders are hereinafter at times referred to collectively, as, the “Water
System”).
The 3.0 MG ground storage tank at the WTP is located on Block 201, Lot 1 on property owned by
Union County (Rahway River Park). The City has owned and operated the 3.0 MG ground storage tank but
has no record of an easement for access, rehabilitation and operations. The successful Purchaser will have
to work with the County to formalize the required property rights.
The City owns two elevated storage tanks located at; one at 1045 Westfield Avenue and one at 999
Hart Street. The City intends to sell the cell tower lease rights at these two locations for the installation of
and maintenance of radio/cellular communications equipment. As part of the sale; the winning Bidder will
be provided with an easement to access each storage tank and to install and maintain equipment within their
leased space. The Purchaser shall honor all agreements and easements set forth as part of this sale.
1.2.2 Explanation of Real Property Interests to be Conveyed
Subject to the receipt of a bid deemed acceptable and advantageous to the City, the City will, at the
Closing, transfer its interest in all of its title, easements or other interests in the Water System.
1.3
City Objectives
The City is seeking to sell the Water System to a single qualified and experienced company which
will take over ownership, operations, maintenance and management of the Water System. The City’s
objectives include the following: (i) obtain highest value for the Water System; (ii) utilize sale proceeds to
pay off debt and other liabilities; (iii) minimize rate volatility for ratepayers; (iv) transfer responsibility for
regulatory requirements and compliance to the Buyer; and (v) reduce the environmental and financial risk to
the City.
1.4
Bid Submission Date
Copies of the Bid responding to this RFB must be submitted no later than 2:00 p.m. (Eastern Time)
on Wednesday, April 1st, 2026, in accordance with Section 5 of this RFB. Bids shall be in a sealed package
addressed to:
City of Rahway
Attention: Heather Capone, Municipal Clerk
1 City Hall Plaza
Rahway, New Jersey 07065
Instructions on the form and content of the Bid are given in Section 5 of this RFB.
1.5
Project Participants and Advisors
The City Council is responsible for authorizing all activities relating to the Water System. The
City Council has assembled a group of City representatives and consultants to form a project team to
assist in this procurement process (the “Project Team”). The Project Team will serve and oversee on behalf
of the City and the City Council, the function of directing and reviewing the detailed activities undertaken
with regard to the procurement of bids under this RFB.
1.6
Inquiries and Correspondence
5
All inquiries and correspondence relating to this RFB should be directed to:
Frank C. Ruggerio, City Qualified Purchasing Agent
City of Rahway
1 City Hall Plaza
Rahway, New Jersey 07056
Phone: (732) 827-2020
Email: fruggiero@cityofrahway.com
with a copy of all written (including electronic) correspondence to:
Mark J. McPherson, Esq.
Waters, McPherson, McNeill, PC
300 Lighting Way, 7th Floor
PO Box 1560
Secaucus, New Jersey, 07096
Phone: (201) 863-4400
Email: mark.mcpherson@lawwmm.com
And
Michael L. Willis, P.E.
T&M Associates
1144 Hooper Avenue, Suite 202
Toms River, New Jersey 08753
Phone: (973) 862-5060
Email: mwillis@tandmassociates.com
Bidders shall not contact any City employees or Council Members in connection with this RFB
at any time during the procurement process except for Mr. Frank Ruggerio and any inquiries made to
any City employee or Council Members other than Ms. Heather Capone and Mr. Frank Ruggerio will
not be responded to. All questions shall be sent in writing and delivered to the above addresses or sent by
email to Mr. Frank Ruggerio by 4:00 p.m. (Eastern Time) by the applicable date as described in subsection
1.7.2 of this RFB. The City will respond to those written questions which it deems appropriate. Responses
will be distributed to all Bidders that have registered with the City. The City shall not be obligated to provide
any response to any question that the City does not, in its sole and absolute discretion, deem to be appropriate.
1.7
Procurement Process
1.7.1 Legal Authority
In accordance with N.J.S.A. 40:62-3 et seq. (the “Referendum Law”), the City will utilize a Request
for Bids process that includes the issuance of this RFB followed by the review, clarification and evaluation of
Bids received. The Draft Agreement of Sale reflects the terms of the sale desired by the City. If a Bidder takes
material exceptions to the Draft Agreement of Sale (the “Agreement of Sale”), as determined in the sole and
absolute discretion of the City, the Bid may be deemed non-responsive. In the event that the City determines
to move forward with the sale following review and receipt of the Bids, the City will select the Highest
Responsible Bidder and will finalize the terms of the Agreement of Sale. Once the Agreement of Sale is
finalized, the City intends to pass an ordinance authorizing the sale of the Water System, subject to public
approval via referendum as further described herein. The City will then submit a question to the County Clerk
to be included on the November 2026 election ballot regarding whether the City should sell its Water System.
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If the public referendum passes in November, the City anticipates that it will execute the Agreement of Sale
with the Highest Responsible Bidder. Bidders are advised that the Agreement of Sale is subject to approval by
the New Jersey State Board of Public Utilities (the "BPU") pursuant to N.J.S.A. 48:2-51.1. Nothing herein
shall prohibit the City from deciding not to sell the Water System and the City reserves the right to do
so at any time prior to execution of the Agreement of Sale.
1.7.2 Schedule Adherence
In order for the City to have the option of going to referendum in November of 2026, a procurement
schedule is required. The following schedule identifies major activities and dates in the procurement process:
Bid Advertisement
February 12, 2026
Site Visit
February 25, 2026 at 10:00 a.m. (thereafter by appointment Only)
Bidder Questions Due
March 4, 2026 at 4:00 pm
Addendum Issued
March 23, 2026
Bids Due
April 1, 2026 at 2:00 pm
Recommendation for Bid Award May 1, 2026
To efficiently review and evaluate the Bids received (and to avoid the need for a costly and lengthy
clarification process), the Bidder should conform to the submission and format requirements set forth in
Section 5 of this RFB.
1.7.3 Site Visit
A site visit is not mandatory but highly encouraged and will be conducted on Wednesday, February 25, 2026 at
10 a.m.. Bidders that desire to schedule a site tour of the Water System on a date subsequent to the pre-Bid
meeting should contact Daniel Lee, PE, CME at dlee@cityofrahway.com to arrange for such tour. Bidders
shall agree to indemnify and hold the City harmless from any and all claims arising from Bidder's obtaining
access and/or having access to the Water System.
1.7.4 Written Questions Regarding RFB or Process
Prospective Bidders may submit written (or electronic) questions regarding this RFB. All such
questions should be submitted by Monday, March 4, 2026, at 2:00 PM. The City may, but shall not be
obligated to, respond to such questions. Any responses to questions will be circulated to all prospective
Bidders.
1.7.5 Addenda or Amendments to the RFB
During the period provided for the preparation of Bids, the City may issue addenda or amendments to
this RFB. The City shall issue notice that addenda or amendments have been made available, and will send
such addenda or amendments to the prospective Bidders that registered in accordance with Appendix C.
These addenda will be issued by, or on behalf of, the City, and will constitute a part of the RFB. Each Bidder
is required to acknowledge receipt of all addenda at the time of submission of the Bids by submitting an
executed acknowledgment form included as Bid Form 5 contained in Appendix B. All responses to this RFB
shall be prepared with full consideration of the addenda issued prior to the Bid submittal date. In order for a
Bidder to ensure that it receives all updates/addenda to this RFB, it must provide a completed registration
form, which can be found in Appendix C, to the City Clerk with a copy to Mark McPherson and Michael
Willis whose contact information is provided in Section 1.6 above. It is ultimately the responsibility of all
potential bidders to ensure they have received and reviewed any and all addenda or amendments to the RFB
that may be issued, and the City shall not be in any way responsible for any potential bidder’s failure to review
or receive same.
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1.7.6 Cost of Bid Preparation
Each Bid and preparation of all information required pursuant to this RFB shall be prepared at the
sole cost and expense (including legal costs) of the Bidder. There shall be no claims whatsoever against the
City, its staff, or its consultants for reimbursement for the costs or expenses (including legal costs) incurred
during the preparation of the Bid or other information required by this RFB or procurement process.
1.7.7 Correction of Errors
Prior to the submission of Bids, erasures or other corrections in the Bid must be initialed by a
designated signatory of the Bidder. The Bidder further agrees that in the event any errors are noticed by the
City after the Bid is opened, the City reserves the right, but does not have the obligation, to waive such errors,
or request that such errors be immediately corrected.
1.7.8 Modification of Bids
Prior to the Bid submission date, a Bidder may modify its previously submitted Bid if a modified
Bid is either hand delivered to Heather Capone by or on behalf of an authorized representative of the Bidder
or delivered to Heather Capone by certified mail. Modified bids should clearly indicate that they are in fact
modified bids and that such modified bid(s) supersede and replace any previously submitted Bid.
1.7.9 Disclosure of Information in Bids
The City will consider requests to protect proprietary information submitted with Bids. The Bidder
should clearly and specifically label all such material and cite the appropriate law which protects such
proprietary information. General requests to protect the entire Bid are not acceptable. The City shall
notify a Bidder of any Open Public Records Act request for information that has been designated as
proprietary information by the Bidder. In the event of a dispute with respect to whether any proprietary
information must be released in connection with any Open Public Records Act, the City shall be entitled to rely
on the advice of its counsel with respect to whether or not to disclose or release such information, and bidders
hereby agree to accept such determination and the City assumes no liability in connection with any such matters.
1.7.10 Withdrawal from Procurement Process
Bids received by the City Clerk and designated representative before the time of opening of Bids may
be withdrawn upon written application of the Bidder who shall be required to produce evidence showing that
they represent the principal or principals involved in the Bid. Bids may not be withdrawn within twenty-four
(24) hours of the stipulated time for receipt of Bids unless otherwise expressly allowed under applicable law.
Once Bids have been opened, they must remain firm for a period of 365 days following submission.
1.7.11 Disposal of Bids
All Bids are the property of the City and will not be returned (except with respect to bid bonds, which
will be returned in accordance with this RFB). At the conclusion of the procurement process, the City may
dispose of any and all copies of Bids received in whatever manner it deems appropriate. In no event will the
City assume liability for any loss, damage or injury which may result from any disclosure or use of marked
data which occurs prior to the disposal of Bids.
1.7.12 Rights of the City and Conditions
The City reserves, holds and may exercise, at its sole discretion, the following rights and conditions
with regard to this RFB in accordance with applicable law. By responding to this RFB, Bidders acknowledge
and consent to the following conditions relative to the procurement process and the determination of the
Highest Responsible Bidder:
•
All inquiries will be addressed as set forth in Section 1.6 of this RFB.
•
This RFB does not obligate the City to contract for the sale of the Water System.
8
•
The City reserves the right to change or alter the schedule for any events associated with this
procurement.
•
All costs incurred in connection with responding to this RFB will be borne by the Bidder and the
City will in no event (including upon a successful procurement challenge) be responsible for any
Bidder’s cost or be liable to a Bidder.
•
The City reserves the right to reject any and all Bids and components thereof and to eliminate,
for any valid reason, any and all Bidders responding to this RFB from further consideration
for this procurement in accordance with applicable law.
•
The City reserves the right to eliminate any Bidder who submits incomplete, inadequate responses
or is not responsive to the requirements of this RFB.
•
The City reserves the right to reject all Bids and to cancel the procurement.
•
The City reserves the right to designate a representative to act in its place or on its behalf during
this procurement process.
•
The City reserves the right to supplement, amend, or otherwise modify this RFB, or otherwise
request additional information, prior to or following Bid submissions.
•
All Bids become the property of the City and will not be returned.
•
All activities related to the Sale shall be subject to all applicable federal, State and local laws,
regulations, rules and/or requirements.
•
The City (including its staff and advisors) reserves the right to visit any of the facilities referenced
in each Bid to observe the operations of such facilities. Such site visits will be made at a mutually
agreeable time.
•
The City reserves the right to conduct investigations of any or all of the Bidders, as the City
deems necessary or convenient, to verify the information provided as part of a response and to
request additional information to support the information included in any Bid.
•
The City reserves the right to seek clarification of any aspect of a Bid.
•
The City reserves the right to reject any Bid which it deems to be non-responsive to its objectives
or not in the best interest of the City in accordance with applicable law.
•
The City reserves the right to determine that any Bid received complies or fails to comply with
the terms of this RFB.
•
The City reserves the right to waive any minor technical non-conformance with the terms of this
RFB.
•
All responses may be made available to the public at the appropriate time, as determined by the
City (in the exercise of its sole discretion) in accordance with law.
•
The City may request Bidders to send representatives to the City for interviews and/or
presentations.
•
Neither the City, nor its staff, and/or advisors shall be liable for any claims or damages resulting
9
from the solicitation or preparation of this RFB, nor will there be any reimbursement to Bidders
for the cost of preparing and submitting a response or for participating in this procurement
process.
•
The City reserves the right to suspend or terminate the procurement process described in this RFB
(or implied) at any time (at its sole discretion.) If terminated, the City may determine to commence
a new procurement process or exercise any other rights provided under applicable law without
any obligation to the Bidders.
1.8
Pay-to-Play Law
The successful Bidder must comply with the State’s Pay-to-Play law (N.J.S.A. 19:44A et seq.). and
sign all associated documents (Business Entity Disclosure Certification, P.L. 2005, C.271 Political
Contribution Disclosure Form and Stockholder Disclosure Certification). It is highly recommended that
Bidders become familiar with this law prior to submitting a Bid.
1.9
Pending Litigation, Conflicts of Interest
The City requires that the Highest Responsible Bidder must (a) not be a party to, or otherwise
involved in, any pending litigation, investigation, financial foreclosure or other action, or any other procedure
that would in any way impair its ability to perform its responsibilities under the anticipated contract; (2) not
be affiliated with, owned by, or otherwise engaged with any other firms that could pose a real or potential
conflict of interest with City of Rahway; (3) not be in arrears to City of Rahway for any taxes, fees, or other
obligations; and (4) not be found guilty of, either as an organization and/or on the part of its owned, principals,
or executives, any illegal activities that preclude it from establishing contracts
with government entities.
1.10
Public Referendum
Once an Agreement of Sale has been finalized in principal, with the Highest Responsible Bidder, the
City intends to introduce an Ordinance authorizing the execution of the Agreement of Sale and submission
of a public question to the County Clerk to be placed on the General Election ballot in November 2026. The
City will accept public comments on the Ordinance, and, if the Ordinance is ultimately adopted by the
City, the Ordinance and public question will be submitted to the County Clerk for inclusion on the
November 2026 General Election ballot. If the referendum passes in November, the City intends to execute
the Agreement of Sale with the Highest Responsible Bidder. Passing of the referendum is a pre-requisite of
the City’s being able to execute the Agreement of Sale.
1.11
Independent Due Diligence Required
While the City believes that the information supplied as part of this RFB is an accurate reflection of its
understanding related to the Water System being sold, such information is provided only to assist Bidders in
evaluating the Water System. Neither the City nor its employees, officials, consultants or advisors make any
warranty as to the accuracy or completeness of such information, nor does the City or any of its employees,
officials, consultants or advisors undertake any responsibility to perform any further investigation with
respect to the information supplied as part of the is RFB or to provide any updates with respect thereto..
Bidders are required to make their own evaluations before submitting a Bid and should not rely on the
documents listed above or contained herein as the basis for their Bid.
2.0
BACKGROUND INFORMATION
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2.1
General City Profile
The City of Rahway is located in Union County, New Jersey, and has approximately 30,763 residents
based upon the 2023 census. See the City website (http://cityofrahway.com) for further general information
regarding the City.
2.2
Description of Water System
The City’s water distribution system consists of 96 miles of water main, the diameter ranges from 2
inches to 48 inches, approximately 769 fire hydrants, two (0.5 MG and 1.5 MG) water storage tanks, and
1,436 water system valves (and 753 hydrant valves). For a comprehensive description of the System, see
Water System Evaluation Report dated January 15, 2026, prepared by T&M Associates which is included
with this RFB as Appendix A.
The Rahway water treatment plant’s (the “WTP”) design capacity is 7.7 MGD (Million Gallon Per
Day). The WTP receives its water Rahway River. The WTP is an ultrafiltration plant with 116 Veolia
membranes comprising 4 modules and chemical addition. The City supplements this supply by purchasing
treated water from the New Jersey American Water Company (AW) and from the Middlesex Water Company
(MWC). The Rahway Water Allocation Permit (WAP No. 5339) conditions are described in detail in the
T&M Report.
For a comprehensive description of the Water System, please refer to the T&M Report. The
report also contains a capital improvement plan which was prepared for the City.
2.3
Rates
Current rate information and the history of user fees are included in Appendix G to this RFB .
2.4
Annual Financial Statements and Audit Reports
The City’s 2025 Adopted Budget and the 2024 Audit reports are provided in Appendix E.
2.5 Water Billing
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The current water bills are prepared, forwarded and collected by Veolia Water as part of their service
contract. Each customer in Rahway receives a single bill for both water and sewer. The City would like to
explore options to maintain a similar billing scheme moving forward to minimize the impact to the
customers. The Base Bid shall include the Purchaser providing customer billing to water customers only (the
purchaser will be required to provide commercial water usage for the City to prepare the associated sewer
bills). And additional Bid Item is included to provide the annual cost of the purchaser to maintain a single
bill that includes water and sewer and to work with the City on payment.
2.6
Existing City Operations Agreement
The existing Public/Private Agreement with Veolia has a twenty-year term that will expire on May
15, 2037. Under the terms of the Public/Private Agreement, Veolia provides for the operation and
maintenance of the Water System. Pursuant to the agreement the City and Veolia may mutually terminate
the contract upon the tenth anniversary. If the City ultimately determines, at the conclusion of the Bid process,
and upon the successful passing of a referendum with respect thereto, the City will terminate the
Public/Private Agreement on or in connection with the Closing. Prospective bidders hereby understand and
acknowledge that the timeline with respect to Closing and the termination of the Public/Private Agreement
may not perfectly coincide with each other and, as such, bidders hereby agree and acknowledge that they may
be required to work with Veolia and the City in good faith to ensure a smooth transition in such instance.
The City has renewable interconnect agreements with AW and MWC as shown in the table below.
The Purchaser will be required to honor the terms of this agreement as part of the sale.
3.0
COMPANY RESPONSIBILITIES
3.1
General
This Section provides a summary of the responsibilities and financial obligations that the Company
will assume following the sale of the Water System. Bidders are advised that the Agreement of Sale,
a draft of which is included in Appendix F, will be the definitive statement of the responsibilities of the
Bidder.
3.2
Operation of City Water System
The City and the existing contract operations with Veolia will continue, and Veolia will continue
to operate the Water System until the Closing Date (subject to termination of the Public/Private Agreement
as described herein above and the timing with respect thereto). Buyer will operate the Water System
thereafter at its own cost and expense. Buyer must be aware that the customers of the Water System
(domestic users, industrial users and commercial users) have received the services as set forth in the
Customer Service Standards as defined in the Agreement of Sale. By executing the Agreement of Sale,
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Buyer will covenant to continue to provide services in accordance with the Customer Service Standards and
will covenant to guarantee the safe and reliable service in a manner that meets all local, state and federal
laws and regulations relating to the distribution and treatment of water.
3.3
Municipal Consent and BPU Approval of Sale
It is anticipated that the City will grant the municipal consent required by N.J.S.A. 48:19-17. The
Buyer shall be responsible for obtaining BPU approval of such municipal consent pursuant to N.J.S.A. 48:2-
14 as well as approval of the sale pursuant to N.J.S.A. 48:2-51.1.
3.4
Water Pressure
The Buyer will be required to maintain the water pressure levels in the Water System at the levels
existing in the Water System as of the date of Closing.
3.5 Water Quality Standards and Secondary Maximum Contaminant Levels (SMCL)
Based on N.J. Admin. Code § 7:10-7.2 – SMCL, the Buyer will be required to meet SMCLs.
a.
The Buyer should be aware that the City of Rahway utilizes the Rahway River for its
primary source of water. Based on weather conditions, elevated levels of chloride and sodium
can be experienced, that lead to aesthetic impacts to the finished water quality. The Buyer will
be required to ensure levels in compliance with Secondar Drinking Water Standards at or
below the following:
i.
Chloride: 250 mg/L (Recommended Upper Limit, RUL)
ii.
Sodium: 50 mg/L (RUL)
b.
It will be the responsibility of the Buyer to complete the necessary improvements and/or
the necessary blending with the bulk purchase contracts to control and maintain levels.
Based on N.J. Admin. Code § 7:10-7.4 - Public notification, the Buyer will be required to notify the public.
a. Whenever the average of samples collected in anyone monitoring period exceeds the
recommended upper limit for iron, manganese or sodium specified at above (N.J.A.C. 7:10-7.2)
in a public community water system, the supplier of water shall provide public notification as
required.
3.6
Rate Plan
As described in Section 5.6.4, the Bidder will be required to provide its plan for implementing a
binding rate structure for the ratepayers following the sale. The 10-year binding rate schedule must reflect that
rates will not be increased (0%) for Years 1 and 2 and by no more than 3% each year for years 3 through 10.
Rate Schedule (Years 1 through 10)
Year
Water Rate Increase
1
0%
2
0%
3
Max 3%
4
Max 3%
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5
Max 3%
6
Max 3%
7
Max 3%
8
Max 3%
9
Max 3%
10
Max 3%
The existing City rate structure includes a discount for seniors. The Buyer will be required to continue
this senior discount program for all eligible senior citizens who are enrolled in the program as of the
Closing date. In addition, the Buyer will be required to provide water service for no charge in
perpetuity for all municipal / board of education buildings/properties (list below).
Municipal Buildings:
o 1 City Hall Plaza – City Hall/Police Department
o City Hall Plaza – Library (Partial)
o City Hall Plaza – Recreation Center
o 1300 Main Street – Fire Department Headquarters
o 619 Maple Avenue – Fire Station 2
o 1306 Esterbrook Ave – Senior Citizen Center
o 125 West Milton Avenue - Senior Center
o 999 Hart Street – Public Works
o Block 227, Lot 6, Dog Park at Wheatena Park on Elizabeth Avenue
o All City Parks with water facilities
i. Madden Field
ii. Brennan Splash Park
iii. MLK Park – Dog Park
School Properties:
o Block 104, Lot 1; 811 St. Georges Avenue (Roosevelt)
o Block 132, Lot 33; 1012 Madison Avenue (High School)
o Block 132, Lot 34; 944 Madison Avenue (Madsion)
o Block 189, Lot 32; Kline Place (Rahway Academy)
o Block 211, Lot 1.01; 1809 St. Georges Avenue (Franklin)
o Block 369, Lot 21.01; 486 E. Milton Avenue (Grover Cleveland)
4.0
QUALIFICATION CRITERIA
4.1
General
The City will undertake a review and evaluation of Bids submitted in response to this RFB in a
manner consistent with the provisions of this RFB. Upon receipt of Bids, the Project Team will review each
Bid to determine its completeness and compliance with submittal requirements. Only complete Bids will be
fully evaluated. Such review may, at the City’s sole and absolute discretion, include further communications
and follow up inquiries with any bidder which the City determines it would benefit from receiving further
clarifications from.
4.1.1 Transaction Cost Reimbursement
In addition to payment of the Purchase Price, the City will require that the Buyer provide a payment
in the amount of $250,000 to cover the City’s administrative costs in connection with the sale (“Transaction
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Costs Payment”). Thirty percent of the Transaction Costs Payment ($75,000) will be due upon the passing of
the City Ordinance approving the sale of the Water System, which amount will be non-refundable. The
remaining seventy percent ($175,000) of the Transaction Costs Payment will be due at Closing.
4.1.2 Technical Qualifications and Experience
The Bidder must demonstrate through its submittal that it is technically “responsible” to own,
operate, maintain and manage the Water System. This shall include an organization chart indicating the
individuals that will operate and consult on the system and their associated resumes and technical experience.
In addition, a description of the costumer care package to be provided to the City residents. Including plans for
transferring billing, customer service and overall program.
4.1.3 Financial Strength
The Bidder must demonstrate through its submittal that it is financially capable of purchasing,
owning, operating and maintaining the City’s Water System and investing the capital for any improvements
deemed necessary. Bidders must be prepared to provide detailed information as to how said Bidder intends
to pay the purchase price for the system if the City should request same.
5.0
INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF BIDS
5.1
Submission Requirements
5.1.1 Bid Submission; Timing of Submission; Number of Bids to be Submitted
Bids must be submitted by 2:00 p.m. (Eastern Time) on April 1, 2026. One original, five (5) hard
copies and one electronic copy (thumb drive) of bid documents shall be sent to the following:
Heather Capone, City Clerk
City of Rahway
1 City Hall Plaza
Rahway, New Jersey 07065
The RFB will include two (2) separate bids:
1) Base Bid - is the purchase price in which the purchaser will take over ownership of all property,
infrastructure, and equipment (including ownership of the existing water treatment plant). The
City will have the right of first refusal should the purchaser choose to sell any property within
the City of Rahway.
2) Alternate Bid is the purchase price in which the purchaser does not intend to utilize the water
treatment plant and will not take ownership of the property, infrastructure, and equipment. The
Water Treatment Plant property will be maintained by the City of Rahway.
One copy of the Bid documents must be clearly marked as the original and must contain the original
signature forms and other original documents. The remaining 5 copies can be reproductions. Bidders shall
number each set of documents in sequential order on the upper right corner of each cover.
All Bids submitted will remain unopened until the deadline for submission of the Bids has passed.
At such time, all Bids received will be opened and distributed to the Project Team for review.
The delivery of the Bid to the City on the above date and prior to the time specified herein is solely
and strictly the responsibility of the Bidder. The City shall not, under any circumstances, be responsible for
delays caused by the United States Postal Service or any private delivery service, or for delays caused by any
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other occurrence.
5.1.2 Bid Forms
The Bid Forms specifically enumerate the requirements set forth in this RFB. A complete set of Bid
Forms shall be included in each Bid.
Each Bidder must fill out all of the forms completely. Use “N/A” to specify any items set forth in the
Bid Forms which are not applicable to a Bid. It should be noted that the failure to fully complete all applicable
Bid Forms by incorrectly providing that certain Bid Forms (or portions thereof) are not applicable to a Bid
may result in a determination that the Bid is unresponsive. To provide additional information, use separate
sheets following the Bid Form format.
In cases where a written price is used with a numeric price, the written price will govern.
5.1.3 Completeness
The Bidder must follow each and all of the instructions set forth in this Section in order for a Bid to
be deemed responsive to this RFB. In all cases, the City reserves the right to determine, at its sole discretion,
whether any aspect of the Bid meets the submission requirements of this RFB. The City reserves the right to
reject any Bid which, in its judgment, does not comply with these Bid submission guidelines. In providing
the information required within this Section 5.0 of this RFB, the Bidder should emphasize and should be
responsive to the qualification criteria described in this RFB.
5.2
Organization and Form of Bid
5.2.1 Organization of Bid
Bids submitted in response to this RFB should consist of the following sections:
SECTION I: Executive Summary
SECTION II: Technical Qualifications and Experience
SECTION III: Purchase Price
SECTION IV: Financial Qualifications and Rate Plan
SECTION V: Ten Year Capital Improvement Plan
5.2.2 Form of Bid
The Bidder shall provide the appropriate information required for each section, in accordance
with the following content and format requirements:
1.
The responses shall be concise, clear, factual, and complete with a minimum of
extraneous material.
2.
The information provided shall identify the section of the RFB being addressed.
3.
The Bid shall be indexed and divided into sections and shall be prefaced with a table
of contents.
5.3
Section I: Executive Summary
5.3.1 General Provisions
The Executive Summary shall summarize, in clear and concise language, the information contained
in all other parts of the Bid. The Executive Summary should be drafted so that it may be easily understood.
5.3.2 Letter of Qualification, Letter of Intent and Signature Requirements
Together with each Bid, the City must receive one Letter of Qualification and one Letter of Intent,
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in the forms attached, copied onto the official letterhead of the Bidder. The Letter of Qualification and Letter
of Intent must be signed by an officer of the Bidder’s entity who is empowered to sign such material and to
commit the Bidder to the obligations contained in the Bid. If the Bidder is a partnership, the Bid shall be signed
in the name of each firm by one or more of the general partners. If the Bidder is a corporation, the authorized
officer shall sign his/her name and his/her title beneath the full corporate name.
All forms which require Bidder signatures shall be signed by the same individual(s) signing the Letter
of Qualification and Letter of Intent.
5.3.3 Bid Bond
A Bid Bond in the amount of $20,000, payable to THE CITY OF RAHWAY, must accompany the
Bid when submitted. Such Bid Bond shall provide that if the Bid is accepted and the Bidder is determined
to be the Highest Responsible Bidder, then prior to the expiration or termination of said Bond, the Highest
Responsible Bidder will enter into an Agreement of Sale with the City, or if the Highest Responsible Bidder
shall fail to do so, said surety will pay to the City the full amount of the Bid Bond. At the option of the
Bidder, the Bid Bond may be a bond secured by a guarantee of a surety company listed in the latest issue of
United States Treasury Circular 570 and within the maximum amount specified in said circular and authorized
to do business in the State, or an irrevocable, standby “letter of credit” from a bank with a credit rating from
either Standard & Poor’s Corporation or Moody’s Investors Service of at least “A.”
Any Bid Bond must be valid for a period of at least 365 days from the Bid submission date. If the
Agreement of Sale has not been executed prior to the expiration of the Bid Bond, the City may require the
renewal of the Bid Bond for an additional period of time. No Bid shall be considered unless accompanied by
the required Bid Bond. The form of the Bid Bond which must be submitted is included in Appendix B.
The Bid Bonds submitted by the Bidders shall be returned within 10 business days after execution of
the Agreement of Sale by and between the City and the Highest Responsible Bidder.
5.4
Section II: Technical Qualifications and Experience
This Section shall describe the qualifications and experience of both the organization and key
personnel that will undertake the operation, maintenance and management of the Water System.
5.4.1 Qualifications and Experience of Bidder
The Bidder shall provide information on the general expertise, experience, and reputation of the
Bidder. The Bidder must demonstrate to the satisfaction of the City that it has the necessary qualifications to
operate the Water System, maintain the physical plants and maintain all equipment in order to adequately
operate and maintain the Water System. The Bidder shall describe the Bidder's experience and qualifications
relevant to the operation and maintenance of water systems.
5.4.2 Qualifications and Experience of Key Personnel
The Bidder must demonstrate to the satisfaction of the City that it has on staff a sufficient number of
qualified personnel to operate the Water System, maintain the physical plants and maintain all equipment in
order to adequately operate and maintain the existing Water System. The Bidder shall provide a description
of all personnel anticipated to be significantly involved in the operation of the Water System, with a list of
their educational degrees, licenses held and years of experience in water utility service operation and
maintenance. Personnel shall be appropriately licensed and experienced in operating, maintaining,
monitoring and repairing of water systems.
5.4.3 Regulatory Compliance
The Bidder shall describe its record of compliance with applicable regulatory requirements. The
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Bidder shall list any material violations of any applicable regulatory requirements, including any that resulted
in fines over $20,000.
5.4.4 Other Water System Acquisitions
The Bidder shall describe the rate structure and history of rate increases in connection with its
municipal water system acquisitions within the last five years. The Bidder shall also provide information
regarding any capital improvements made by the Bidder to such systems following such acquisitions.
5.5
Purchase Price
The proposed Purchase Price shall be set forth on Bid Form 3 (Purchase Price).
5.6
Financial Qualifications and Rate Plan
5.6.1 Financial Strength
The Bidder must demonstrate to the satisfaction of the City that Bidder has the adequate financial
resources to purchase the Water System from the City in accordance with the terms contained in the RFB
and Draft Agreement of Sale and to own, operate, maintain and improve the Water System. The Buyer shall
provide annual audited financial reports of its operations for the past three (3) years as part of the Bid.
5.6.2 Capital Investments
The Bidder shall provide its assumptions with respect to how much capital it expects to invest in the
Water System and identify any capital improvements it anticipates making to the systems with a 10-year
capital improvement plan.
5.6.3 Customer Service Plan and Plan for Billing Customers
The Bidder shall describe its proposed customer service plan and plan for billing customers, which
shall address the basis on which the Bidder proposes to bill water users. The Bidder shall also describe how
the City’s service area will be incorporated into the Bidder’s existing operations and shall indicate whether
any of its existing operations are in close proximity to the City of Rahway.
5.6.4 Rate Plan
The Bidder shall describe in detail its plan for implementing a binding rate structure for the ratepayers
following the sale.
Bidder shall propose its best offer to address the City’s objective of stabilizing rates for its ratepayers
following the sale. Proposed binding rate freezes or decreases, limits on annual rate escalation, etc. shall be
described in detail. Bidders shall submit a ten-year binding rate schedule following the Closing Date and
projections to 10-Years as a non-binding rate schedule. The binding rate schedule must reflect that rates will
not be increased (0%) for Years 1 and 2 and by no more than 3% per year for Years 3 through 10 following
the Closing Date (based on 2026 water rates).
5.6.5 Exceptions to the Agreement of Sale
The Bidder shall review the draft Agreement of Sale (Appendix F) prior to submitting a Bid and
identify areas where the Bidder takes exception, if any, during the Pre-Bid Question and Answer period. The
City will review such exceptions, if any, and, if the City decides to revise the draft Agreement of Sale based
on potential Bidder comments, a revised Agreement will be issued via an addendum to this RFB. Bidders
proposing significant changes to the draft Agreement of Sale with their Bid may be deemed non-responsive.
PREPARED FOR:
The City of Rahway, NJ
Engineering Department
1 City Hall Plaza
Rahway, NJ 07065
PREPARED BY:
T&M Associates
11 Tindall Road
Middletown, NJ 07748
(732) 671-6400
ENGINEERING
REPORT
CITY OF RAHWAY WATER
TREATMENT AND
DISTRIBUTION SYSTEM
OVERVIEW
T&M PROJECT NO. RAWY--00203
JANUARY 15, 2026
- Page 1 -
TABLE OF CONTENTS
1.
INTRODUCTION ............................................................................................................... 2
1.1
SERVICE AREA AND SCOPE OF WATER EVALUATION .................................... 2
1.2
SYSTEM DESCRIPTION .............................................................................................. 3
2.
EXISTING WATER SYSTEM ........................................................................................... 4
2.1
EXISTING WATER SUPPLY AND AGREEMENTS ................................................. 4
2.2
EXISTING WATER QUALITY .................................................................................... 5
2.3
WATER TREATMENT PLANT PROCESS DESCRIPTION ...................................... 6
2.3.1
INTRODUCTION AND TREATMENT OVERVIEW ......................................... 6
2.3.2
COAGULATION, FLOCCULATION AND CLARIFICATION ......................... 7
2.3.3
MEMBRANE FILTRATION SYSTEM ................................................................ 8
2.3.4
POLISHING – GRANULAR ACTIVATED CARBON CONTACTORS ............ 8
2.3.5
DECANT SYSTEM................................................................................................ 9
2.3.6
RESIDUAL HANDLING SYSTEM ...................................................................... 9
2.3.6.1
SPENT FILTER BACKWASH .......................................................................... 9
2.3.6.2
SEDIMENTATION BASIN NO 1 - RESIDUALS .......................................... 10
2.3.6.3
SEDIMENTATION BASIN NO 2 - RESIDUALS .......................................... 10
2.3.6.4
BELT FILTER PRESS ..................................................................................... 10
2.3.7
WATER TREATMENT PLANT – PUMPING EQUIPMENT ........................... 10
2.3.8
MEMBRANE MAINTENANCE - CHEMICAL FEED SYSTEMS ................... 12
2.4
WATER DISTRIBUTION AND FINISHED WATER STORAGE ............................ 13
2.4.1
WATER DISTRIBUTION ................................................................................... 13
2.4.2
FINISHED WATER STORAGE .......................................................................... 13
3.
LAND LEASE AGREEMENT WITH CELLULAR CARRIERS ................................... 14
3.1
VERIZON ..................................................................................................................... 14
3.2
SPRINT ......................................................................................................................... 14
3.3
AT&T ............................................................................................................................ 14
3.4
T-MOBILE ................................................................................................................... 14
4.
FUTURE WATER DEMANDS ........................................................................................ 14
5.
CAPITAL IMPROVEMENTS PLAN ............................................................................... 15
5.1
CURRENT CAPITAL IMPROVEMENTS PLANS .................................................... 15
5.2
10-YEAR CAPITAL IMPROVEMENT PLAN ........................................................... 16
- Page 2 -
1. INTRODUCTION
1.1
SERVICE AREA AND SCOPE OF WATER EVALUATION
The City of Rahway (City) located in the County of Union, New Jersey is bordered on the northeast by
City of Linden, on the northwest by the Township of Clark and on the south by the Township of
Woodbridge located in the County of Middlesex. The City has an area of approximately 4.04 square
miles and based on the 2023 U.S. Census Bureau the estimated population is 30,763. The bulk of
the City is developed and water consumption has not increased over the past 10-years.
The City municipal boundary and location are depicted below:
Figure 1.1: City of Rahway Limits
In recent years the City has faced increased regulatory constraints and varying surface water quality
from their main supply from the Rahway River. With ever-changing requirements facing the City and
the aging of the infrastructure and increased costs associated with maintaining and operating their
treatment facility it is necessary to evaluate the most cost-effective long-term solution to providing
the residents of the City safe and affordable drinking water.
As part of this evaluation T&M has been tasked with completing the following items:
1. Summarize the existing water related assets;
2. Summarize the existing water demands and allocation permit limits;
3. Prepare a capital improvement plan for the water infrastructure improvements;
4. Summarize all contracts associated with the water utility.
- Page 3 -
1.2
SYSTEM DESCRIPTION
The City (PWSID NJ2013001) currently derives its water supply from two primary sources; a surface
water diversion from the Rahway River and from a bulk purchase agreement with the Middlesex
Water Company.
The City owned water system includes the Westfield Avenue Water Treatment Plant (WTP) located on
a 6.95-acre property adjacent to Rahway River. Access to the property is Jefferson Avenue and this
facility is located in the northwestern section of the city.
The City of Rahway operates the following facilities:
•
Water Treatment Plant (WTP) design capacity with a design capacity of 7.7 million gallons per
day (MGD)
•
Four (4) finished water storage tanks
o 3.0 Million-Gallon (MG) ground storage tank
o 0.5 Million-Gallon elevated storage tank
o 1.5 Million-Gallon elevated storage tank
o 0.35 Million-Gallon clearwell
•
Six (6) Interconnects
o Four (4) with New Jersey American Water
o Two (2) with Middlesex Water Company
•
Approximate 8,200 services
•
769 fire hydrants and 753 hydrant valves
•
1,436 water system valves
•
The distribution system is comprised of approximately ninety-six (96) miles of water main
•
The WTP is rated as a NJDEP-required T-4 plant and the distribution system is listed as a W-3
required system.
A breakdown of the distribution system is provided below:
Table 1.1: Water System Diameter vs Length Breakdown
Diameter
Length (ft)
Length (miles)
%
2” or less
11,824
2.24
2.33
4”
11,932
2.26
2.36
6”
283,591
53.71
56.08
8”
43940
8.32
8.69
10”
25,674
4.86
5.07
12”
58,691
11.12
11.61
14”
1,423
0.27
0.28
16”
27,181
5.15
5.38
20”
21,729
4.12
4.30
36”
5,568
1.05
1.10
48”
14,153
2.68
2.80
TOTAL
505,706
95.78
100.00
- Page 4 -
The pipe material and age of installation is unknown for the majority of the distribution system. The
Rahway Water System was first established in 1871 with portions of the system original.
Based on the July 2024, Lead Service Line Inventory submission, the City operate 8,180 service
lines comprised of the following:
Table 1.2: Service Material Breakdown
Service Material
Number of Services
Non-Lead
6,831
Lead/Galv
596
Unknown
753
TOTAL
8,180
Note the City plans to have all lead and galvinzed lines replaced prior to completing the sale of the
water utility.
2. EXISTING WATER SYSTEM
2.1
EXISTING WATER SUPPLY AND AGREEMENTS
The City two (2) primary sources include the Rahway River and the interconnection with Middlesex
Water Company.
Table 2.1 – Water Allocation Permit Summary
Subject Item
Parameter
Limit
RAHWAY RIVER
Passing Flow
Diversion from the Rahway River shall not cause the river
flow measured at USGS gauging station No. 01395000 to be
< 7.9 cubic feet per second
5339 WA PERMIT – ALL
DIVERSION SOURCES
Water Diverted
<= 240 million Gallons Per month
5339 WA PERMIT – ALL
DIVERSION SOURCES
Maximum Diversion
Rate
<= 7,000 Gallons Per Minute
A copy of the water allocation permit is provided in the Appendix of this report.
Table 2.2 – Interconnection Agreements
Name of System (Public Water
System Identification No.)
Size and Number of
Interconnections
Use
Middlesex Water Company
(1225001)
(1) 20”
(1) 20”
Purchase
Emergency
- Page 5 -
New Jersey American Water – Raritan
(2004002)
(1) 36-12”
(1) 48-10”
(1) 48-8”
(1) 48-12”
Emergency
Emergency
Emergency
Emergency
The City has a Bulk Purchase agreement with Middlesex Water Company (Appendix). The current
agreement was executed on August 31, 2015 with a ten (10) year term with the ability if both parties
agree to extend thereafter. The Agreement shall remain in effect during the term set forth above
unless notice of intention to terminate the Agreement is given by either party at least six months
prior to the date of such termination. Pursuant to the agreement the City shall purchase water at the
Middlesex Water Companies’ Bulk rate in accordance with their latest tariff. The Daily Minimum
quanity of water is 200,000 gallons per day.
•
Maximum Daily Amount Guaranteed to be Delivered:
200,000 GPD
•
Maximum Monthly Amount Guaranteed to be Delivered:
6,080,000 GPM
•
Maximum Yearly Amount Guaranteed to be Delivered:
73,000,000 GPY
Water is supplied to the City through Interconnection 20-018.
2.2
EXISTING WATER QUALITY
Due to the City’s utilization of the Rahway River as the sole source of water the raw water quality can
vary greatly over the year. Primarily water quality is impacted in the winter due to road salting
operations which result in spikes in the Chloride and Sodium levels.
Based on available sample information the following monthly averages have been found over the
past three years for the winter months.
Table 2.3 – Chloride Concentrations in Raw Water (mg/L)
Month
Maximum
Average
2025
2024
2023
2025
2024
2023
December
506
294
January
1,138
1,647
312
338
409
156
February
2,425
1,514
278
749
416
176
March
237
1,328
132
356
Managing the aesthetic impacts of the high chlorides is important to the city and is currently
managed through blending with the Middlesex interconnect. Proactive changes to address elevated
levels of chlorides will be required for future operation of this facility.
- Page 6 -
2.3
WATER TREATMENT PLANT PROCESS DESCRIPTION
2.3.1
INTRODUCTION AND TREATMENT OVERVIEW
The City water treatment plant was permitted treatment capacity of 7.7 million gallons per day (MGD)
and averages a production around 3.67 MGD, over the past 12 years, to serve the approximately
30,763 residents.
Table 2.4 – Production, Purchase and Delivery Rates
Year
Average Daily
Production
(MGD)
Average Daily
Purchase
(MGD)
Total Average Daily
Delivered
(MGD)
2012
4.76
0.22
4.98
2013
4.31
0.36
4.66
2014
2.81
0.35
3.16
2015
3.39
0.58
3.97
2016
2.94
0.71
3.65
2017
3.01
0.33
3.34
2018
3.40
0.31
3.71
2019
3.03
0.34
3.37
2020
2.78
0.34
3.13
2021
2.81
0.30
3.11
2022
3.40
0.11
3.51
2023
3.42
0.04
3.47
2024
3.40
0.23
3.63
Raw water is pumped from the Rahway River into the Westfield Avenue Water Treatment Plant, the
this raw water is treated through an aeration process to remove an volatile organic compounds
(VOCs) followed by the additional coagulants and sedimentation process to settle out larger silts and
clay particles. After sedimentation water is pumped through ultrafiltration membranes and into a
clearwell. Filtered water is pumped through granular activated carbon (GAC) for polishing to remove
turbidity, odor, color and improve taste. A corrosion inhibitor is injected prior to disinfection to protect
finished water from copper or lead contamination. Disinfection is achieved through the injection of
sodium hypochlorite and contact time is achieved through a 3.0 million-gallon ground storage tank.
- Page 7 -
Figure 2.1 – Westfield Avenue Water Treatment Facility Process Schematic (All Existing Components)
2.3.2 COAGULATION, FLOCCULATION AND CLARIFICATION
Raw water from the Rahway River is pumped via the intake structures. with screening facilities. From
the intake structures, the water passes through two bar racks and a travelling water screen to two
(2) packed towers for the removal of volatile organic contaminants (VOCs) present in the river supply.
The aerated water from the packed towers flows to three rapid mix chambers, each designed for 3.5
MGD. Coagulation chemicals are added in each rapid mix chamber. The rapid mix chambers are
designed to have two chambers in continuous service with the third chamber as a standby. Each
mixer is 3 HP and is equipped with a variable speed drive to modify the mixing intensity.
Coagulated water from the rapid mix chambers is conveyed via a dual (one is standby) 7,000- gallon
per minute capacity pump system through 30-inch diameter pipeline that splits into four (4) 24-inch
diameter lines before entering the Sedimentation Basin No. 1. This 700,000-gallon Sedimentation
Basin 1 has an operating water depth of approximately 16-feet and is equipped with mechanical
flocculators. The flocculator compartment is separated from the remaining portion of Basin No. 1 by
a wooden baffle wall. The volume of the flocculator compartment is approximately 132,000 gallons.
Discharge from Sedimentation Basin No. 1 during normal plant operation flows by gravity to
Sedimentation Basin No. 2. Basin No. 2 measures 47 ft x 106 ft x 14 ft (deep) and has a capacity of
approximately 410,000 gallons and is a part of the early treatment facility.
The plant contains piping to allow by-pass of Sedimentation Basin No. 1 directly to two 12-foot
diameter Packed Tower Aerators served by two Aeration Blowers equipped with VFD (Variable
Frequency Drives) when Basin No. 2 is out of service for cleaning or during the emergency.
- Page 8 -
Settled solids are removed manually from both sedimentation basins. Each basin is reportedly
cleaned once per year.
2.3.3
MEMBRANE FILTRATION SYSTEM
The treatment plant is equipped with four (4) trains of ZeeWeed™ 1500 RMS (Rack-less Module
System) membranes with each train populated with one-hundred and sixteen (116) ZeeWeed™
1500 modules. The system was designed to produce a net capacity of 7.7 MGD with one (1) train
out of service at the design recovery of 95%, temperature ≥ 68 °F, and a Recovery Clean interval of
30 days. At temperatures ≥ 33 °F, the system will produce a lower capacity of 5.5 MGD at the same
conditions, or the higher capacity of 7.7 MGD with a shorter, 7-day Recovery Clean interval. Inlet
water flows through the 500-micron strainer before reaching the membrane filter.
Periodically, water filtration is stopped for cleaning. To clean ZW1500, flow of clean water is
reversed. Clean water is pressurized on the inside of the membrane fibers and flows to the outside.
This pushes off all the rejected material that has accumulated on the outside surface of the
membrane and flushes it to waste. Simultaneously, air is applied to the bottom of the module to
scour the membrane surface and aid in the cleaning/backwash process. The backwash recycle
stream directs a portion of the backwashed waste to the head of the WTP.
The air system consists of compressors, dryers, filters, valves and air receivers. The air compressor
and receiver systems were sized to provide air for the following:
•
Pneumatic valves
•
Membrane backwashing and air scour
•
Air diaphragm chemical metering pumps
•
Membrane integrity test.
Two (2) single stage, oil-injected rotary screw air-cooled compressors were provided. Each
compressor has a capacity of 178 cfm at a rated head of 125 psig. Compressors are Atlas Copco GA
30 with refrigerated dryers. Food grade oil is used as lubricant. Additionally, each compressor is
provided with an Elektronikon Control Module.
Two air receivers, one for Control Air and the other for Process Air. The 200-Gallons Control Air
receiver provides pressurized air for valve actuation and pneumatic control. The Process Air receiver
provides pressurized air during testing, air scouring, and membrane backwashing. The Process Air
receiver’s capacity is 3,100-Gallons (72-inch in diameter by 192 inches long).
The air receivers are Silvan Industries Inc., standard vertical receivers with a minimum rating of 200
psig and 150 psig for Control Air and Process Air, respectively.
2.3.4
POLISHING – GRANULAR ACTIVATED CARBON CONTACTORS
From Membrane filtration facility, the effluent flows by gravity to 430,000-Gallon clearwell. The
Clearwell can also be bypassed directly to Granular Activated Carbon Polishing Filter Facility should
maintenance be required.
The GAC contactors are backwashed approximately every 3-months and the waste is discharged to a
backwash tank located adjacent to the GAC facility. The backwash waste generated from a single
- Page 9 -
GAC vessel is approximately 30,000 gallons. The GAC backwash waste was historically pumped to
the sewer. Recently a project was completed to convey the GAC backwash to the Decant Facility.
Waste from one turbidimeter, two chlorine analyzers and one pH analyzer also discharges to the
backwash tank. A pump discharge line directs the backwash and analyzer waste to the Decant
Facility for settling/processing.
The system consists of the following:
•
Granular Activated Carbon (GAC) Polishing Filters – 8 each
•
GAC Booster Pumps – 3 each
•
Sodium Hypochlorite storage tank, dosing pump, control – 1 each
•
Orthophosphate (corrosion inhibitor) storage tank, dosing pump, control – 1 each.
•
GAC Filter Backwash Holding Tank – 1 each
GAC Filter backwash is directed to the plant sewer collection system. The treated water after GAC
Filters is equalized in 3 MG capacity Ground Storage Tank and, after fluoride addition, is sent to the
water distribution system via a duplex 4,200 GPM constant speed pumps.
Regenerated backwash water flows to sewer inlet basin. A 3,600-Gallon CIP (Clean In Place) Tank
serve to store membrane wash water and waste streams from floor drains.
2.3.5
DECANT SYSTEM
The decant facilities provide treatment of the spent filter backwash and decant is returned upstream
of the flocculators. Settled sludge can be discharged to the residuals holding pond or to Rahway
Valley Sewerage Authority (RVSA).
The primary components of the decant facility are the decant tanks. There are two decant tanks
each 26 ft long by 26 ft wide. The tanks are equipped with conical bottoms. Each decant tank has a
maximum volume (from bottom of tank to top of tank wall) of approximately 52,000 gallons. The
usable volume of each tank allowing 1-ft of freeboard is approximately 47,000 gallons. Decant is
returned to the flocculators via decant pumps.
2.3.6
RESIDUAL HANDLING SYSTEM
Residuals generated at the WTP consist of sludge generated from the annual manual cleaning of
Sedimentation Basins 1 and 2, spent filter backwash from the eight (8) GAC contactors, pressate
from the belt filter presses and sludge cake from the belt filter presses. Except for the sludge cake,
the above residuals are handled by the existing Decant Facility. The Granular Activated Carbon (GAC)
residuals are directed to the Decant Facility. The Decant Facility contains two decant tanks each with
a capacity of approximately 47,000 gallons, two clear water pumps each with a capacity of
approximately 150 gpm, two settled sludge pumps, and two sludge transfer pumps.
2.3.6.1
SPENT FILTER BACKWASH
Three filters at the WTP are backwashed daily. The backwash waste from three filters is directed to
one of the two decant tanks to settle for approximately six (6) hours and then decanted for
approximately five (5) hours. Spent filter backwash is directed to the Valve and Pumping Chamber,
which is part of the Decant Facility, and then is manually directed to one or both decant tanks by
opening and closing the influent valve on each tank. Settled sludge is pumped to the sanitary sewer
every 2 to 3 months and the annual sewer discharge from the settled sludge from spent filter
- Page 10 -
backwash is approximately 90,000 gallons per year (six times per year at 15,000 gallons per
discharge event). Settled sludge can also be pumped to the existing Holding Pond via an exposed
pipe, only when the temperature is high enough to prevent freezing.
2.3.6.2
SEDIMENTATION BASIN NO 1 - RESIDUALS
Sedimentation Basin No. 1 is manually cleaned in the late spring and the cleaning occurs for
approximately two days. Sludge from Sedimentation Basin No. 1 is directed to a manhole (referred to
as Manhole No. 3) and from there flows to the Valve and Pumping Chamber where it is then pumped
to the Holding Pond. During the cleaning of Sedimentation Basin No. 1, the influent valves to the
Decant Tanks are closed. The Holding Pond has enough capacity to contain the volume of residuals
generated from Sedimentation Basin No. 1 and has no spare capacity.
2.3.6.3
SEDIMENTATION BASIN NO 2 - RESIDUALS
Sedimentation Basin No. 2 is manually cleaned in the late summer and cleaning occurs for
approximately two days. Sludge from Sedimentation Basin No. 2 is directed to Manhole No. 3 and
from there flows to the Valve and Pumping Chamber and it is then pumped to the Holding Pond.
During the cleaning of Sedimentation Basin No. 2, the influent valves to the Decant Tanks are
closed. The Holding Pond has enough capacity to contain the volume of residuals generated from
Sedimentation Basin No. 2 and has no spare capacity.
2.3.6.4
BELT FILTER PRESS
One belt filter press that is used to dewater residuals from the holding pond. After the pond is filled
with residuals from Sedimentation Basin No. 1, the pond is manually decanted using a mobile pump
and the decant water is conveyed to the rapid mix tanks. The sludge in the holding pond is then
pumped to a sludge holding tank located adjacent to the belt press. Sludge cake from the press is
conveyed to a container and is then hauled to a landfill for disposal. Pressate is returned to the
empty decant tank where it is then pumped to the sewer. The pressate flowrate is restricted to a
maximum of 45 gpm and occurs for approximately 8 to 12 hours per day.
2.3.7
WATER TREATMENT PLANT – PUMPING EQUIPMENT
There are several sets of pumps at the WTP serving different purposes. Pumps serving the
major functions are described below.
Table 2.5 – Low Lift Raw Water Pumps
Number of Units
2
Primary Design Point Capacity (gpm)
7,000
Table 2.6 – Vanton Vertical Pumps Neutralization Tank
Number of Units
2
- Page 11 -
Maximum Full Load Motor Speed (rpm)
1750
Maximum Motor Horsepower (HP)
7.5
Minimum Discharge Size (inches)
3
Primary Design Point Capacity (gpm)
300
Primary Design Point TDH (ft)
30
Primary Design Point Minimum Efficiency (%)
70
Pump Model
SG-PY2000HA
Table 2.7 – Flowserve Membrane Feed Pumps
Number of Units
4
Maximum Full Load Motor Speed (rpm)
1775
Maximum Motor Horsepower (Hp)
75
Minimum Suction Size (inches)
10
Minimum Discharge Size (inches)
8
Minimum Shut-off Head at Design Speed (ft)
95
Primary Design Point Capacity (gpm)
1,995
Primary Design Point TDH (ft)
85
Primary Design Point Minimum Efficiency (%)
78.5
Secondary Design Point Capacity (gpm)
1,080
Secondary Design Point TDH (ft)
30
Secondary Design Point Minimum Efficiency (%)
76
BW Sweep Design Point Capacity (gpm)
2,700
BW Sweep Design Point TDH (ft)
45
BW Seep Design Point Minimum Efficiency (%)
80
Pump Model
3k10x8-16RV
The Membrane Feed Pumps’ primary design point is based on a total filtrate flow of 7.7 MGD at
68˚F for all four pumps in operation and a 30-day CIP cycle. The secondary design point is based
on low flow conditions of filtrate flow of 5.5 MGD at 33˚F, all four pumps in operation, and a 30 -day
CIP cycle.
Table 2.8 – Flowserve CIP Pumps
Number of Units
2
Maximum Full Load Motor Speed (rpm)
1180
Maximum Motor Horsepower (Hp)
40
Minimum Suction Size (inches)
8
Minimum Discharge Size (inches)
6
Minimum Shut-off Head at Design Speed (ft)
74
Primary Design Point Capacity (gpm)
1,480
Primary Design Point TDH (ft)
62
Primary Design Point Minimum Efficiency (%)
80
Pump Model
3k8x6-14RV
Table 2.9 – Flowserve Backwash Waste Transfer Pumps
- Page 12 -
No. of Pumps:
2
Maximum Shut off Head:
50 ft
Pump Capacity:
300 gpm @ 40 ft
Pump Efficiency:
70% @ 300 gpm
Maximum HP
7.5 HP
Manufacturer:
Flowserve or equal
Solids Handling Capacity:
3” solids
VFD or Constant Speed:
Constant Speed
Table 2.10 – Sump Pumps
No. of Pumps
2
Solids Handling Capacity
1.5”
Fluid
Clear Water
Material of Construction
Cast Iron
Type
Submersible
Power, HP
1/3
Design Flow, GPM
40
Design TDH, ft
10
Make Model
MDC33 by Myers
2.3.8
MEMBRANE MAINTENANCE - CHEMICAL FEED SYSTEMS
Several chemical feed systems are used throughout the treatment process with the following
chemicals utilized: polyaluminum chloride, sodium hypochlorite, orthophosphate all used during the
treatment process. In addition to these chemicals, the cleaning and membrane maintenance
requires the use of the following.
Sodium bisulfate and sodium hydroxide are used for dichlorination and pH adjustment, respectively.
Citric and sulfuric acids are uses for membrane cleaning (CIP) and pH adjustment. Storage and
concentration of these chemicals are summarized below:
o One 275-gallon tote of citric acid (50% concentration)
o One 55-gallon drum of sulfuric acid (50% concentration)
o One 275-gallon tote of sodium hydroxide (50% concentration)
o Two 55-gallon drums of sodium bisulfite (38% concentration)
o One (1) 150-gallon double-walled 12.5% sodium hypochlorite storage tank with level
indicator.
Panel-mounted CIP and Neutralization chemical transfer systems consisting of:
o Two sodium hypochlorite pumps and accessories for cleaning and maintenance.
o Two critic acid pumps and accessories for cleaning and maintenance.
o Two sulfuric acid pumps and accessories for cleaning and maintenance.
- Page 13 -
o Two sodium hydroxide pumps and accessories for citric and sulfuric acids
neutralization and CIP waste recovery.
o Two sodium bisulfate pumps and accessories suitable for sodium hypochlorite
neutralization, maintenance, and CIP waste recovery.
The chemical dosing pumps are Wilden and LMI diaphragm pumps. The pumps are mounted on five
separate panels (one for each chemical) with an HDPE backing panel. The dosing system consists of
½-inch Schedule 80 CPVC piping, ½-inch Asahi CPVC diaphragm valves, a 100 psig pressure gauge
with CPVC housing, a Primary Fluid Systems calibration PVC column, and a PVC back pressure valve.
The CIP tank water supply is equipped with a water softener. The softener can treat an unsoftened
water with a hardness of up to 200 mg/L as CaCO3 at a flowrate of 110 gpm. The softener system is
a duplex Vantage PTC Softener Model PTCSDD48x72 manufactured by Siemens.
2.4
WATER DISTRIBUTION AND FINISHED WATER STORAGE
2.4.1
WATER DISTRIBUTION
The City’s distribution system is mainly comprised of water mains equal to less than 6-inches (61%),
with 8-inch to 12-inch making up approximately 25% of the system. With portions of the system
being installed in the late 1800’s the majority of the distribution system is between 50 – 75 years in
age. The exact installation date of the associated system is unknown.
In total the system has approximately 2,189 valves, 769 fire hydrants and approximately 8,180
services. Based on the City’s latest lead service line inventory they have approximately 596 lead
services lines and 753 service lines of unknown material. The City has an aggressive lead service
line replacement program and it is anticipated that all lead service lines will be replaced and
inventory completed prior to the sale closing.
The City of Rahway fire hydrants are flushed and tested annually in accordance with the NJDEP
Water Quality Accountability Act (WQAA) guidelines. Fire hydrants are inspected each year and
repaired or replaced on an as-needed basis, depending on the severity of the repairs. There is a high
priority in keeping all fire hydrants online and operational at all times in order to provide adequate
fire protection in the City.
2.4.2
FINISHED WATER STORAGE
The City maintains four (4) water storage facilities. The largest is a 3.0 million gallon ground storage
tank with booster pumps located on Union County parkland on the other side of the Rahway River
from the water treatment plant. A 1.5 million-gallon elevated storage tank located at the Rahway
Public Works yard on Hart Street and two storage facilities on the water treatment plant property a
500,000 gallon elevated storage tank and a 350,000 gallon clear well.
The 3.0 MG ground storage tank is located on Union County parkland. As of the date or preparation
of this report and bid documents, the City cannot locate an easement or access agreement for this
infrastructure.
The appendix contains the most recent inspection reports for each tank.
- Page 14 -
3. LAND LEASE AGREEMENT WITH CELLULAR CARRIERS
There are land lease agreements with cellular carriers that are listed below. The City of Rahway
approved a resolution on February 2, 2026, which authorized sale of the cell tower leases and/or
agreements for cell towers located on property owned by the City of Rahway. The purchaser of the
water system is to maintain the easements and provide access to cell towers and adhere to the
agreements for the two elevated water storage tanks located at: 1045 Westfield Avenue and at 999
Hart Street.
3.1
VERIZON
The contract with Verizon was executed in 2008 and ended in 2013. The contract can be renewed
for 4 additional terms every 5 years, i.e., until the end of January 2033. Verizon rents so-called Land
and Tower Spaces for the purpose of Constructing, maintaining, repairing and operating a
communications facility and other permitted uses incidental thereto. By way of description and not
limitation, permitted use at the Premises shall include installation of an equipment shelter at the
location and of the type depicted on Exhibit B and any addenda hereto along with associated
antennas and other accessories for the operation of the aforementioned equipment facility. The
Company shall not use the Premises for any other purpose. Both spaces are exempt from real estate
taxes.
3.2
SPRINT
The lease agreement started in March 2001 and is renewed every five years for a maximum term of
20 years. The agreement has expired.
3.3
AT&T
Since July 2004, AT&T has been renting a 250 ft2 piece of land at 1045 Westfield Ave. to station
their equipment.
3.4
T-MOBILE
A portion of the lot at 1-45 Westfield Ave. has also rented by T-Mobile since August 2007 for
$34,000 annually plus 3% increase per year.
4. FUTURE WATER DEMANDS
The City has identified the following developments as potential future water demands in the system.
Table 4.01 provides projects ranging from those having received Board Approval to Projects and
Properties of Interest.
- Page 15 -
Table 4.01 – Potential Developments
Project Name
Type of Use
Street Address
Unit Count
Bridgeview Phase 1
Apartments
1655 Bridge Street
211 Units
Pine Street
Townhouses
Pine Street
10 Units
Esterbrook
Apartments
1416 Esterbrook Avenue
60 Units
Brownstones II
Apartments
1999 Elizabeth Avenue
200 Units
Monroe Street
Apartments
107-113 Monroe Street
59 Units
Vermella II
Apartments
1655 Bridge Street
72 Units
Columbia Bank
Apartments
and Office
1500 Irving Street
221 Units and
1,300,000 SF
Northfield Bank
Apartments
1515 Irving Street
101 Units
Tesla
Apartments
64 Units
UCPAC
Apartments
64 Units
Pierce & Fulton
Apartments
97 E. Milton Avenue
120 Units
Block 326
Apartments
1435 Main Street
120 Units
5. CAPITAL IMPROVEMENTS PLAN
This section summarizes the estimated cost for new or replacement water system facilities for the
City. The estimates are based on preliminary, pre-design estimates which include engineering,
administrative and anticipated construction costs.
5.1
CURRENT CAPITAL IMPROVEMENTS PLANS
City of Rahway is currently working through capital improvements that include the following:
1. Watermain Replacement. This project scope includes the replacement of 1,200 LF of 2-inch
and 4-inch water mains for the anticipated cost of $1,000,000. This project was scheduled
to start on 10 March 2025, and end in April 2025.
2. Hart Street 1.5 MG Elevated steel Tank Condition Assessment report and Improvements. The
inspection report on the tank indicated the need for a complete coating replacement for the
steal tank. Anticipated costs for the completion of this coating work is $3,250,000.
3. Membrane Replacement is anticipated over the next couple years with replacement of the
membranes anticipated to cost between $2,000,000 to $2,500,000.
4. The GAC replacement is done quarterly with an estimated annual cost of approximately
$1,000,000.
5. The raw water intake structure is in need of improvements as outlined in the Condition
Assessment Report prepared in 2019 with an anticipated cost of $4,000,000.
- Page 16 -
5.2
10-YEAR CAPITAL IMPROVEMENT PLAN
Category
2027
2028
2029
2030
2031
Year 1
Year 2
Year 3
Year 4
Year 5
EHS&S
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
General Water Treatment Improvements
150,000.00
$
150,000.00
$
150,000.00
$
150,000.00
$
150,000.00
$
UF Membrane Replacement
500,000.00
$
500,000.00
$
500,000.00
$
-
$
Electrical & SCADA Improvements
50,000.00
$
50,000.00
$
50,000.00
$
75,000.00
$
75,000.00
$
Pump Upgrades / Replacement
50,000.00
$
100,000.00
$
125,000.00
$
125,000.00
$
150,000.00
$
Watermain Replacement and Renewal
1,000,000.00
$
1,000,000.00
$
1,050,000.00
$
1,050,000.00
$
1,100,000.00
$
Finished Water Storage Improvements
3,250,000.00
$
-
$
-
$
Tools and Equipment
10,000.00
$
10,000.00
$
10,000.00
$
10,000.00
$
10,000.00
$
Facility Improvements
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
Fire Hydrant Replacements
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
Valve Replacement
25,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
Service Line Replacement
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
River Intake Structure Rehabilitation
-
$
-
$
-
$
4,000,000.00
$
-
$
Customer Meter Replacement (>= 2")
150,000.00
$
150,000.00
$
150,000.00
$
150,000.00
$
-
$
Customer Meter Replacement (< 2")
750,000.00
$
750,000.00
$
750,000.00
$
750,000.00
$
500,000.00
$
TOTAL
6,065,000.00
$
2,865,000.00
$
2,940,000.00
$
6,465,000.00
$
2,140,000.00
$
GAC Carbon Media Replacement (Quarterly) Annual Cost
1,050,000.00
$
1,060,000.00
$
1,070,000.00
$
1,080,000.00
$
1,090,000.00
$
Category
2032
2033
2034
2035
2036
Total
Year 6
Year 7
Year 8
Year 9
Year 10
EHS&S
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
150,000.00
$
General Water Treatment Improvements
150,000.00
$
150,000.00
$
150,000.00
$
150,000.00
$
150,000.00
$
1,500,000.00
$
UF Membrane Replacement
-
$
-
$
-
$
-
$
500,000.00
$
2,000,000.00
$
Electrical & SCADA Improvements
75,000.00
$
75,000.00
$
100,000.00
$
100,000.00
$
100,000.00
$
750,000.00
$
Pump Upgrades / Replacement
150,000.00
$
175,000.00
$
175,000.00
$
200,000.00
$
200,000.00
$
1,450,000.00
$
Watermain Replacement and Renewal
1,100,000.00
$
1,150,000.00
$
1,150,000.00
$
1,200,000.00
$
1,200,000.00
$
11,000,000.00
$
Finished Water Storage Improvements
-
$
-
$
125,000.00
$
3,500,000.00
$
-
$
6,875,000.00
$
Tools and Equipment
10,000.00
$
10,000.00
$
10,000.00
$
10,000.00
$
10,000.00
$
100,000.00
$
Facility Improvements
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
500,000.00
$
Fire Hydrant Replacements
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
$
150,000.00
$
Valve Replacement
25,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
25,000.00
$
250,000.00
$
Service Line Replacement
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
50,000.00
$
500,000.00
$
River Intake Structure Rehabilitation
-
$
-
$
-
$
-
$
-
$
4,000,000.00
$
Customer Meter Replacement (>= 2")
-
$
-
$
-
$
-
$
-
$
600,000.00
$
Customer Meter Replacement (< 2")
-
$
-
$
-
$
-
$
-
$
3,500,000.00
$
TOTAL
1,640,000.00
$
1,715,000.00
$
1,865,000.00
$
5,315,000.00
$
2,315,000.00
$
33,325,000.00
$
GAC Carbon Media Replacement (Quarterly) Annual Cost
1,100,000.00
$
1,110,000.00
$
1,120,000.00
$
1,130,000.00
$
1,140,000.00
$
10,950,000.00
$
AGREEMENT
for a Supply of Water
between
MIDDLESEX WATER COMPANY
and the
CITY OF RAHWAY
Entered into as of August 31, 2015
This Agreement (hereinafter referred to as the "Agreement") is entered into as of
this 31 st day of August, 2015 between:
and the
MIDDLESEX WATER COMPANY, a public utility and corporation organized
under the laws of the State of New Jersey, with offices at 1500 Ronson Road,
Iselin, New Jersey (hereinafter referred to as "Middlesex")
CITY OF RAHWAY, a municipal corporation of the State of New Jersey with its
principal offices located at City Hall Plaza, Rahway, New Jersey 07065
(hereinafter referred to as "Rahway").
W I TN E S S E TH:
WHEREAS, Middlesex owns and operates a public water supply system; and
WHEREAS, Rahway has requested that Middlesex provide it with a supply of
water for private and public use; and
WHEREAS Middlesex and Rahway entered into an agreement relating to the
supply of water from Middlesex to Rahway dated as of April 1, 2006 (the "2006
Agreement"); and
WHEREAS Middlesex and Rahway entered into a First Amendment to the 2006
Agreement on December 1, 2006 ("First Amendment") in which the parties agreed to
amend certain provisions of the 2006 Agreement; and
WHEREAS Middlesex and Rahway desire to further amend several provisions of
the 2006 Agreement as amended by the First Amendment including but not limited to an
extension of the term of the 2006 Agreement; and
WHEREAS, this Agreement is designed to set for the terms and conditions
between the parties relating to the supply of water including but not limited to an
extended term.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties hereto agree as follows:
-2-
I.
Supersession of 2006 Agreement and First Amendment.
This Agreement shall supersede and replace the 2006 Agreement between
Middlesex and Rahway dated April 1, 2006, and the First Amendment between
Middlesex and Rahway dated December 1, 2006 and all the terms and conditions
contained therein.
2.
Supply of Water.
Middlesex agrees to supply Rahway with water, and Rahway agrees to accept
such water upon the terms and conditions set forth herein.
3.
Term.
The term of this Agreement shall be ten (10) years from the date hereof. Except
as otherwise provided herein, or as the parties may mutually agree upon in writing,
service shall terminate on a date that is ten (10) years following the date hereof.
This Agreement shall remain in effect during the term set forth in this section,
after the termination date and any periods of renewal of the Agreement unless written
notice of intention to terminate the Agreement is given by either party at least six months
prior to the date of such termination. In the event that such notice has not been given, the
Agreement shall remain in effect until the earlier of (a) renewal or modification of the
Agreement by written consent of both parties, or (b) a date no less than six months after
the date that either party provides written notification of termination.
4.
Rates.
Rahway shall pay Middlesex at a rate which is the sum of (a) the rate for Service
Under Contract pursuant to Rate Schedule No. 5 of Middlesex's tariff, currently at the
rate of$ 2,241 .53 per million gallons (Exhibit A attached hereto), and (b) the rate for
Transmission Service pursuant to Rate Schedule No. 8 of Middlesex's tariff, currently at
the rate of$ 385 .26 per million gallons (Exhibit B attached hereto); or as applicable rates
and tariffs may be established and/or changed from time to time with the approval of the
New Jersey Board of Public Utilities ("NJBPU") as required by law. (Collectively, such
rates are hereinafter referred to as the "Contract Rate.") Rahway shall pay Middlesex at
the said Contract Rate for the greater of the Daily Minimum quantity of water (as defined
below in paragraph 8) or for all water delivered to Meter Stations (as defined below in
paragraph 6 (Meter Stations/Points of Delivery)) up to and including the Allowable
-3-
Excess as determined under paragraph 9 (a). Rahway shall pay Middlesex the applicable
Peaking Rate, set forth in paragraph 9, for all water in excess of the Allowable Excess,
subject to the provisions of paragraph 10 hereof.
5.
Delivery System.
Water to be supplied by Middlesex hereunder shall be delivered to Rahway
through Middlesex's water transmission and distribution system and all existing
interconnections located on such transmission and distribution system as exists at the date
of this Agreement and such other interconnections as may be reasonably agreed upon
from time to time.
6.
Meter Stations/Points of Delivery.
The parties understand and agree that delivery shall be made through such points
of delivery into the Rahway system as may be reasonably agreed upon from time to time
by the parties (hereinafter referred to as "Meter Stations"). Water so supplied shall be
metered at the Meter Stations.
7.
Meters, Services and Other Appu1tenances.
Middlesex shall furnish, install and maintain at its own cost such service
connections and meters as it shall deem necessary for connection to the Meter Stations.
The meters and service pipes shaII remain the property of Middlesex. Middlesex shall
maintain and verify the accuracy of said meters at least annually, and Rahway, at its sole
cost, shall have the right to test the meters at the Meter Stations by a certified meter
technician at any reasonable time upon written notice to Middlesex. Rahway shall
provide for furnishing, installing and maintaining at its own cost all other piping, fittings,
valves, meter pits , vaults, structures and appurtenances, including pumping stations or
pressure reducing stations, necessary to take water from Middlesex.
8.
Minimum Payment Obligation.
(a)
Rahway shall be obligated to pay for the Daily Minimum quantity of water
at the Contract Rate. "Daily Minimum" shall mean:
(i)
Two hundred thousand (200,000) gallons of water a day (0.20
million gallons per day (mgd)), or
(ii)
Such greater amount as may be elected under paragraph 8 (b) of
this Agreement.
-4-
(b)
At any time during the term of this Agreement, Rahway may elect, upon
written notification to Middlesex and Middlesex's approval, to increase the Daily
Minimum quantity of water to a greater quantity of water (hereinafter referred to as the
"Revised Daily Minimum"). Once such an election is made by Rahway, the Revised
Daily Minimum quantity of water shall remain in effect for a period of at least twelve
(12) months from the effective date of such election unless further increased pursuant to
this Agreement. At the end of such twelve (12) month period, the Revised Daily
Minimum shall remain in effect unless Rahway shall further amend (increase or decrease)
the Revised Daily Minimum. Each such election to amend shall be on written notice to
Middlesex and shall remain in effect for a period of twelve (12) months from the
effective date of such election unless further increased pursuant to this Agreement. Any
election to decrease the Revised Daily Minimum shall not be reduced below the initial
amount of two hundred thousand (200,000) gallons of water a day specified in paragraph
8(a)(i) of this Agreement.
9.
Peaking Rates.
(a)
The total daily quantity of water taken by Rahway at the Meter Stations
may exceed the Daily Minimum or the Revised Daily Minimum by up to 50% on a 24-
hour basis without affecting the Contract Rate. The quantity of water taken in the peak
hour multiplied by 24 may exceed the Daily Minimum or the Revised Daily Minimum by
up to 100% without affecting the Contract Rate. Such excess quantities of water are
known as the "Allowable Excess".
(b)
If the quantity of water taken in a 24-hour period shall exceed the Daily
Minimum or the Revised Daily Minimum by more than 50%, ("Daily Peaking Excess"),
Rahway shall pay for such Daily Peaking Excess at a rate (the "Daily Peaking Rate")
determined by the following formula:
(i)
A fraction (the numerator of which is the actual daily usage; and
the denominator of which is the applicable Daily Minimum or
Revised Daily Minimum then in effect multiplied by 1.5)
multiplied by the Contract Rate.
-5-
For example, if the actual daily usage is .25 million gallons, and
the Daily Minimum is .10 million gallons and the Contract Rate is
$1,500.00:
.25
x
Contract Rate
.10 X 1.5
1.67
X
$1,500.00 = $2,505.00 (Daily Peaking
Rate)
In this example, the charge for the Daily Peaking Excess would be
$250.00 calculated as follows:
.25
.15 (Allowable Excess) = .10 (Daily Peaking
Excess)
.10
X
$2,505.00 = $250.50
(c)
If the quantity of water supplied in the maximum peak hour multiplied by
24 shall exceed the Daily Minimum or the Revised Daily Minimum by more than 100%,
("Hourly Peaking Excess") Rahway shall pay for such Hourly Peaking Excess at a rate
(the "Hourly Peaking Rate") determined by the following formula:
(i)
A fraction (the numerator of which is the quantity of water
supplied in the maximum peak hour multiplied by 24; and the
denominator of which is the applicable Daily Minimum or
Revised Daily Minimum then in effect multiplied by 2.0)
multiplied by the Contract Rate.
For example, if the quantity of water supplied in the maximum
peak hour multiplied by 24 equals .30 million gallons; and the
Daily Minimum is .10 million ga11ons and the Contract Rate is
$1,500.00:
.30
.10 X 2
1.50
X
X
Contract Rate
$1,500.00 = $2,250.00 (Hourly Peaking
Rate)
-6-
In this example, the charge for such Hourly Peaking Excess would
be calculated as follows:
300,000 gal.+ 24 = 12,500
200,000 gal.+ 24 ::c 8,333
Calculated maximwn
Peak hour excess= 12,500 - 8,333 = 4,167 gal.
Hourly Peaking Rate x Calculated Max. Peak Hour
Excess
$2,250 mgd
$2,250 mgd
4,167 gal.
X
.004167
= $9.375 for such Hourly Peaking Excess
A similar calculation would be made for each day there is an
Hourly Peaking Excess, but there shall not be more than one such
Hourly Peaking Rate in each 24-hour period.
(d)
The Non-Emergency Usage Interconnection Table is set forth in Appendix
E, which is fully incorporated into this Agreement as if fully set forth herein. For
purposes of the calculations set forth in Paragraphs 9(a) and (b) herein, the amounts
charged as the Daily Peaking Rate shall not exceed and shall be capped at the rate for one
million gallons under the Consumption Charges as set forth in Rate Schedule No. 1 -
General Water Services - GS (the "Retail Rate") then in effect under the Middlesex
Tariff. As of the date of the Agreement, the Retail Rate is the equivalent of$ 5,574.87
per million gallons of water used.
(e)
Notwithstanding anything herein to the contrary, the obligation of
Middlesex to supply water under this Agreement beyond the Daily Minimum or the
Revised Daily Minimum, as the case may be, is subject to Middlesex having the supply
and capacity available to provide such amounts.
(f)
For the purposes of the calculation of the New Jersey Department of
Environmental Protection (NJDEP) firm capacity, the Daily Minimum or Revised Daily
Minimum shall be the Firm Capacity Transfer amount from Middlesex to Rahway. As
currently outlined below in Table # 1
Table# l
-7-
Maximum Daily Amount
Maximum Monthly Amount Maximum Yearly Amount
guaranteed to be Delivered
guaranteed to be Delivered
guaranteed to be Delivered
0.2 mgd
6.08 mgd
73 mgd
10.
Exceptions for Special Circumstances
Notwithstanding anything to the contrary herein, the parties recognize that at
different times during the year, Rahway experiences a problem with excess chloride in its
water (the "Chloride Issue"). In addition, at different times during the year, Rahway
experiences an additional passing flow problem whereby it is required to cease taking, or
decrease the amount of, water which it may legally take from the Rahway River (the
"Passing Flow Issue").
In the event that Rahway is experiencing either of these problems throughout the
year and properly notifies Middlesex of such problems, and the expected duration of the
same, then and in such event, Middlesex agrees that Rahway shall be obligated to pay for
the amount of water needed to address each such problem according to the following
schedule:
(a)
For the daily amount of water used for the Chloride Issue during the
period from October 1 - April 30, Rahway shall pay for such water at the Contract Rate
set forth herein without regard to any additional Peaking Rate charges as set forth in
paragraph 9 hereof. A sample calculation of the formula set forth in this subsection is
provided in Appendix A, which is incorporated into this Agreement as if fully set forth
herein.
(b)
For the daily amount of water used for the Passing Flow Issue during the
period from October 1 - April 30, Rahway shall pay for such water at the Contract Rate
set forth herein without regard to any additional Peaking Rate charges as set forth in
paragraph 9 hereof. A sample calculation of the fonnula set forth in this subsection is
provided in Appendix B, which is incorporated into this Agreement as if fully set forth
herein.
-8-
(c)
For the daily amount of water used for the Chloride Issue during the
period from May 1 - September 30, Rahway shall pay for such water in accordance with
the provisions of paragraphs 8 and 9 herein, except the amount charged as the Daily
Peaking Rate shall not exceed and shall be capped at the rate for one million gallons at
the Retail Rate then in effect under the applicable Middlesex Tariff. As of the date of the
Agreement, the Retail Rate is the equivalent of $5,574.87 per million gallons of water
used. A sample calculation of the formula set forth in this subsection is provided in
Appendix C, which is incorporated into this Agreement as if fully set forth herein.
(d)
For the daily amount of water used for the Passing Flow Issue during the
period from May 1 - September 30, Rahway shall pay for such water in accordance with
the provisions of paragraphs 8 and 9 herein, except the amount charged as the Daily
Peaking Rate shall not exceed and shall be capped at the rate for one million gallons at
the Retail Rate then in effect under the applicable Middlesex Tariff. As of the date of the
Agreement, the Retail Rate is the equivalent of$ 5,574.87 per million gallons of water
used. A sample calculation of the formula set forth in this subsection is provided in
Appendix D, which is incorporated into this Agreement as if fully set forth herein.
11.
Payment.
The terms are net cash on presentation of invoice.
12.
Combined Charge.
Payments for water (in excess of the Daily Minimum or the Revised Daily
Minimum and adjustments of the Daily Minimum or the Revised Daily Minimum under
paragraph 8) shall be determined on the basis of the combined total daily quantity of
water supplied through all the Meter Stations as determined by meter readings at said
Meter Stations.
13.
Meter Readings.
Middlesex will read the meters daily (at a regular hour determined by Middlesex)
for all water supplied to Rahway at each connection then in operation.
14.
Definitions.
Where the words "daily" or "24 hours" are used in this contract, they shall refer to
the 24-hour period between the daily meter readings.
-9-
15.
Quality.
All water delivered to Rahway by Middlesex under this Agreement is intended to
comply with all Federal and State primary requirements for safe drinking water.
16.
Scheduling.
Middlesex shall have the right to modify its rate of delivery to manage its system
requirements in accordance with accepted operating procedures. Rahway shall give
Middlesex reasonable advance notice of any anticipated departures from its then normal
usage.
17.
Exceptions for Emergencies.
The Daily Minimum or Revised Daily Minimum payment obligation shall not be
affected in the event that the amount of water supplied by Middlesex to Rahway exceeds
the daily or hourly limitations established herein for not more than twenty-four (24) hours
in case of documented fire, main break or water treatment plant-related emergencies
experienced by Rahway and for not more than five (5) days. Additional time beyond five
(5) days may be granted by Middlesex at Middlesex's sole discretion, in the case of other
exceptional circumstances experienced by Rahway requiring an emergency supply of
water, provided Middlesex is promptly notified that any such emergency exists. It is at
the sole reasonable discretion of Middlesex to determine if such requests meet the criteria
of an emergency as contemplated in this Agreement.
18.
Excused Performance.
Middlesex agrees to provide a continuous, regular and uninterrupted supply of
water at the Meter Stations, subject to delays in initiating service or interruptions in
service by reasons of acts of God, accident, strike, legal process, or other cause beyond
its control, or failure, refusal, or delay on the part of any governmental or regulatory body
having jurisdiction in issuing permits, approvals, authorizations, licenses, rights-of-way
or the like. Middlesex shall not be liable for damages to Rahway by reason of inadequate
pressure or volume or quality or failure to provide water for any cause whatsoever
provided that the same does not arise out of the negligence of Middlesex. In the event of
an interruption in service Middlesex agrees to act diligently within the bounds of normal
operating procedures to return service to normal.
-10-
19.
Indemnification.
Rahway shall completely indemnify, protect and save harmless Middlesex from
any and all costs, expenses, liability, losses, claims, suits and proceedings of any nature
whatsoever arising out of the water service by Rahway. However, as to claims involving
water quality, this paragraph is intended not to apply to water until after it is delivered to
Rahway system, i.e., after water is supplied through points of delivery referred to in
paragraph 6.
Middlesex shall completely indemnify, protect and save harmless Rahway from
all costs, expenses, liability, losses, claims, suits and proceedings of any nature
whatsoever caused by any breach by Middlesex of its obligations under this Agreement.
Notwithstanding anything herein to the contrary, each party's aggregate liability
to the other arising out of or in connection with this Agreement shall not exceed an
amount equal to two times one year's gross revenues required to be paid by Rahway to
Middlesex based upon the Daily Minimum or Revised Daily Minimum in effect at the
time of the occurrence giving rise to the liability, and each party hereby releases the other
from any liability in excess thereof. This paragraph is not intended to limit either party's
liability to third parties.
20.
Regulatory A[:)provals.
This Agreement shall be filed by Middlesex with and subject to approval by the
NJBPU and the NJDEP as may be required by law.
21.
Miscellaneous.
To the extent not inconsistent with this Agreement, all other provisions of
Middlesex's tariff shall be deemed to govern service hereunder.
This Agreement shall be governed by and interpreted in accordance with the laws
of the State of New Jersey.
-11-
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first written above.
ATTEST:
Vice President, General Counsel & Secretary
ATTEST: Jea«~
City Clerk
MIDDLESEX WATER COMPANY
By: ~
/J ✓ &I'_/
Dennis W. Doll
President and Chief Executive Officer
CITY OF RAHWAY
By~~<ru-~
Samson D. Steinman
Mayor
EXHIBIT A
MIDDLESEX WATER COMPANY TARIFF
RATE SCHEDULE NO. 5
MIDDLESEX WATER COMPANY
B.P.U. No. I - WATER
Twenty-second Revised Sheet No. 40
Canceling
Twenty-first Revised Sheet No. 40
RATE SCHEDULE NO. 5
SERVICE UNDER CONTRACT - SC
APPL1CABILITY:
Applicable to service provided under special agreements. Such special agreements are available to
customers that meet criteria as specified by the Board of Public Utilities and such agreements will be filed with
the Board on a case by case basis.
CHARACTER OF SERVICE:
Continuous except as limited by "Standard Terms and Conditions".
RATE:
All water used shall be charged at the rate of $2,241.53 per million gallons.
TERMS OF PAYMENT:
Bills will be rendered monthly.
A customer has at least 15 days from the postmark on the bill to pay a valid bill for service.
SPECIAL PROVISIONS:
As provided under special agreements.
Date of Issue: March 31, 2015
Issued by:
Dennis W. Doll, President
1500 Ronson Road
Iselin, New Jersey 08830-0452
Effective for service
Rendered on and after:
August 29, 2015
Filed pursuant to an Order of the Board of Public Utilities, State of New Jersey, dated August 19, 2015, in
Docket No. WRI5030391.
EXHIBITB
MIDDLESEX WATER COMPANY TARIFF
RA TE SCHEDULE NO. 8
MIDDLESEX WATER COMPANY
B.P.U. No. 1 - WATER
RA TE SCHEDULE NO. 8
Fifth Revised Sheet No. 43
Cancelling
Fourth Sheet No. 43
TRANSMISSION SERVICE - NORTHEAST SECTOR
APPLICABILITY:
Applicable to water transmission service to the Northeast area provided to customers under special
agreements at the option of the Company.
CHARACTER OF SERV1CE:
Continuous except as limited by "Standard Terms and Conditions".
RATE:
All water used shall be charged at the combined rate of $385.26 per million gallons for transmission plus
the rate for Service Under Contract as provided in Rate Schedule No. 5.
TERMS OF PAYMENT:
As provided by contract.
Bills to be rendered monthly.
A customer has at least 15 days from the postmark on the bill to pay a valid bill for service.
SPECIAL PROVISIONS:
As provided under special agreements.
Date oflssue: March 3 I, 2015
Issued by:
Dennis W. Doll, President
1500 Ronson Road
Iselin, New Jersey 08830-0452
Effective for service
Rendered on and after:
August 29, 2015
Filed pursuant to an Order of the Board of Public Utilities, State of New Jersey, dated August 19, 2015, in
Docket No. WR1503039 l.
RESOLUTION
CITY OF RAHWAY, NEW JERSEY
No.
AR-6-11
Date of Adoption
January 10, 2011
A RESOLUTION AUTHORIZING THE EXECUTION OF AN EMERGENCY
INTERCONNECTION AGREEMENT BY AND BETWEEN THE CITY OF RAHWAY AND
NEW JERSEY AMERICAN WATER, INC. FOR THE EMERGENCY SUPPLY OF WATER
WHEREAS, United Water Operations, Inc. operates the private water treatment and distribution
system of the City of Rahway (the “City”); and
WHEREAS, the City and New Jersey American Water, Inc. desire to enter into a contract in order to
provide an emergency interconnection between both parties’ water distribution systems;
and
WHEREAS, the Emergency Interconnection Agreement will ensure that should any water be provided
to the City by operation of the automatic or manual features of the emergency
interconnection infrastructure, it will be in accordance with the mutually acceptable terms
of the parties; and
WHEREAS, the appropriate City officials have reviewed the Emergency Interconnection Agreement
and agree that the emergency infrastructure will not interfere with the routine operations
of City water system.
NOW, THEREFORE, BE IT RESOLVED that the Municipal Council of the City of Rahway
authorizes the execution of an Emergency Interconnection Agreement between the City
of Rahway and New Jersey American Water Company, Inc. to provide for back-up
emergency water supply; and
BE IT FURTHER RESOLVED that the Mayor and Municipal Clerk are hereby authorized to execute
the agreement by and between the City of Rahway and New Jersey American Water, Inc.,
subject to review and approval by the City Attorney as to legal form and content.
Certified to be a true copy of a resolution adopted by
the Municipal Council of the City of Rahway at the
Regular Meeting held on 1/10/11.
M– Scaturo
S – Wenson Maier
YES:
Baker, Cox, Mione, Rachlin, Saliga,
Scaturo, Wenson Maier, Brown
ABSENT: Steinman
City Clerk
MANAGEMENT SERVICES AGREEMENT
FOR THE OPERATION, MANAGEMENT,
MAINTENANCE AND REPAIR OF THE
CITY OF RAHWAY'S WATER SYSTEM
BY AND BETWEEN
CITY OF RAHWAY & SUEZ WATER ENVIRONMENTAL SERVICES, INC.
DATED MAY 15, 2017
CONTENTS:
Services Agreement ........................................................................... Exhibit A
City Special Counsel Opinions .......................................................... Exhibit B
Board of Public Utilities Approval. .................................................. Exhibit C
Local Finance Board Approval. ........................................................ Exhibit D
City Ordinance/Business Administrator and Clerk Certificates ... Exhibit E
Suez Certificates and Counsel Opinion ........................................... Exhibit F
City's Notice to Proceed .................................................................. Exhibit G
Suez Bond/lnsurance ........................................................................ Exhibit H
Other Suez Deliverables ................................................................... Exhibit I
Exhibit A
EXECUTION COPY
SERVICES AGREEMENT FOR THE
OPERATION, MANAGEMENT, MAINTENANCE AND REPAIR OF THE
CITY OF RAHW AY'S WATER SUPPLY SYSTEM
By and Between
CITY OF RAHWAY
AND
SUEZ WATER ENVIRONMENTAL SERVICES INC.
DATED: May 15, 2017
TABLE OF CONTENTS
ARTICLE I. DEFINITIONS
Section 1.1
Section 1.2
Definitions
Interpretation
ARTICLE II. MANAGEMENT SERVICES
Section 2.1
Section 2.2
Operation, Management, Maintenance and Repair
of the Water Supply System
Performance and Payment Bonds
ARTICLE III. TERM
Section 3.1
Term
ARTICLE IV. CONDITIONS PRECEDENT
Section 4.1
Section 4.2
Section 4.3
Section 4.4
Section 4.5
General
Conditions Precedent to the City's Obligations
Conditions Precedent to Operator Obligations
Satisfaction of Conditions Precedent
Timing of Certain Obligations
ARTICLE V. REPRESENTATIONS AND WARRANTIES
Section 5.1
Section 5.2
City Representations, Warranties and Covenants
Operator Representations, Warranties and Covenants
8
17
18
18
18
20
20
23
25
26
27
28
ARTICLE VI. OPERATION, MANAGEMENT, MAINTENANCE AND REPAIR OF
THE SYSTEM
Section 6.1
General
30
Section 6.2
Maintenance and Repair
31
Section 6.3
Analytical Services
35
Section 6.4
Memorandums of Agreement
35
Section 6.5
Equipment and Chemicals
35
Section 6.6
Asset Inventory and Maintenance
35
Section 6.7
Buildings and Grounds Services
36
Section 6.8
Utilities
36
Section 6.9
Planning
36
Section 6.10
Economic Development
36
Section 6.11
Section 6.12
Section 6.13
Section 6.14
Section 6.15
Section 6.16
Section 6.17
Section 6.18
Section 6.18.1
Section 6.18.2
Section 6.18.3
Section 6.18.4
Section 6.19
Section 6.20
Section 6.21
Section 6.22
Section 6.23
Section 6.24
Section 6.25
Section 6.26
Section 6.27
Section 6.28
Pennits
Solid Waste Management
Water Supply System
Distribution and Storage
Reserved
Reserved
Operation and Maintenance Costs
Operations Review
Monthly Progress Report
Access to System and Records
Meetings
Audit of System and Review at Expiration of Agreement
Operations and Maintenance Plan
Continuous Operation
Continuity of Service
Customer Service and Emergency Response
Staffing
Licenses
Compliance with Laws and Regulations and Permits
Safety and Security
User Complaints
Development and Redevelopment
ARTICLE VII. CAPITAL IMPROVEMENTS
Section 7.1
Section 7.2
Section 7.3
City Responsibilities
Operator Responsibilities
Emergencies or Improvements Required by Law
ARTICLE VIII. FINANCIAL TERMS
Section 8.1
Section 8.2
Section 8.3
Section 8.4
Section 8.5
Section 8.6
Section 8.7
Section 8.7.1
Reserved
Reserved
Reserved
Annual Service Fee
Establishment and Collection of
Rates, Fees and Charges
Expenses
Customer Service
Water Service to City
ARTICLE IX. DEFAULT AND TERMINATION
Section 9.1
Section 9.2
General Provisions
Termination for Cause by the City
36
36
37
37
39
39
39
39
39
39
40
40
40
41
41
41
41
42
42
44
45
45
46
46
47
48
48
48
48
48
49
49
49
49
50
Section 9.3
Termination for Cause by the Operator
54
Section 9.4
Termination for Unenforceability of
Agreement
58
Section 9.5
Optional Termination
58
Section 9.6
Operator's Assistance Post Termination
59
ARTICLEX.
MISCELLANEOUS
Section 10.1
Insurance
60
Section 10.2
Indemnification
65
Section 10.3
New Equipment
66
Section 10.4
Enforcement
66
Section 10.5
Assignment
66
Section 10.6
Affirmative Action
67
Section 10. 7
Entire Agreement
67
Section 10.8
Notices
67
Section 10.9
Application of Law
68
Section 10.10
Relationship
68
Section 10.11
Public Relations
69
Section 10.12
Notice of Litigation
69
Section 10.13
Cost Substantiation
69
Section 10.14
Reserved.
70
Section 10.15
Hazardous Wastes
70
Section 10.16
Unforeseen Events
70
Section 10.17
System Regulations
72
Section 10.18
Covenant to Continue Work
72
Section 10.19
Cooperation with Financing
72
Section 10.20
City's Obligations
72
Section 10.21
City Approvals
73
Section 10.22
Survivorship
73
Section 10.23
Severability
73
Section 10.24
Dispute Resolution
73
Section 10.25
No Third Party Beneficiaries
75
Section 10.26
Counterparts
75
Schedules
1- System Information
2 -Best Management Practices for the Operation and Maintenance of the Potable Water System
3 -Billing and Collections
4 Computer Information Systems
5 -Rates, Fees and Charges
6 Staffing
7 -Permits
8 -Insurance
9 -Affirmative Action Requirements
10 - Asset Inventory
11 - Reserved.
12 - Reserved.
13 - Reserved
14 - Form of Annual O&M Plan
15 - Procurement Procedures
16 - Minimum Financial Criteria
17 - Minimum Technical Criteria
18 - NJDEP MOA Requirements
19 - Middlesex Water Agreement
20 - Performance and Payment Bonds
21 - Project Guarantor Agreement
SERVICES AGREEMENT FOR THE
OPERATION, MANAGEMENT, MAINTENANCE AND REPAIR OF
THE CITY OF RAHW AY'S WATER SUPPLY SYSTEM
THIS AGREEMENT, made this 15th day of May, 2017 by and between the CITY OF
RAHWAY, a Municipal Corporation of the State ofNew Jersey ("City"), with offices located at
Rahway City Hall, 1 City Hall Plaza, Rahway, New Jersey 07065-9985 and SUEZ Water
Environmental Services Inc., a Delaware corporation whose offices are located at 461 From
Road, Suite 400, Paramus, NJ 07652 ("Operator"). The City and the Operator are collectively
referred to herein as the "Parties" and individually as a "Party".
WITNESS ETH:
WHEREAS, the City currently owns and operates a Water Supply System within the
City limits of the City of Rahway, New Jersey; and
WHEREAS, the geographical boundaries and description of such Water Supply System
are set forth in Schedule 1 attached hereto; and
WHEREAS, the City issued a Request for Qualifications and Proposals for a Services
Agreement for the Operation, Management, Maintenance and Repair of the City of Rahway's
Water Supply and Wastewater Collection Systems, dated (the "RFQ/RFP"); and
WHEREAS, the Operator was selected as the Successful Respondent under Option 2
(Water only; Management Fee and Concession Fee); and
WHEREAS, a Concession was ultimately not selected by the City; and
WHEREAS, the Operator is engaged in the business of operating, maintaining,
managing and repairing Water Supply System; and
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WHEREAS, it is the mutual desire of the Parties to enter into an agreement to provide
for the operation, management, maintenance and repair of the City's Water Supply System; and
WHEREAS, the City Council has determined that the public health, safety, and welfare
of the residents of the City can best be protected by entering into an agreement to provide for the
operation, management, maintenance, and repair of the City's Water Supply System;
NOW, THEREFORE, in consideration of the mutual covenants, conditions, and terms
contained herein, the Parties hereto, intending to be legally bound hereby, agree as follows:
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ARTICLE I. DEFINITIONS.
Section 1.1 Definitions. The following definitions shall apply to and are used in this
Agreement:
"Agreement" - means this "Services Agreement for the Operation, Management,
Maintenance and Repair of the City of Rahway's Water Supply System " and all Schedules
attached hereto and made a part hereof, executed by and between the City and the Operator, as
the same may be amended from time to time.
"Annual Service Fee" - means the sum of the Fixed Management Fee, Pass-through
Charge, and any variable fee components that will be paid by the City to the Operator in
accordance with Schedule 5 attached hereto and Rev. Proc. 2017-13 as amended and superseded.
"Annual Maintenance Cap" - has the meaning set forth in Section 6.2 and Schedule 5
of this Agreement.
"Approved Subcontractor" - means such entity to be approved by the City, who will
subcontract with the Operator to provide all or a portion of the Services.
"Board" - means the Board of Public Utilities of the State of New Jersey or any
successor agency.
"Capital Improvements" -
means any acquisition, construction or replacement of
property that is not a Repair and that is capitalized for federal income tax purposes and that
either extends the depreciable life of the property or has a useful life of more than five (5) years
and/or has a value of $25,000 or more.
"Change Order" -_means a written document signed by the City and the Operator after
the Contract Date requesting a change in the Services. A Change Order may be memorialized by
the City through the issuance of a purchase order to the Operator and acceptance of same by the
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Operator.
"City" - means the City of Rahway, a public body corporate and politic of the State of
New Jersey, and/or designated representatives thereof
"City-Controlled Account" - means that account to which all funds collected from the
users shall be deposited by the Operator and from which the City will disburse the funds to the
Operator and the City in accordance with the terms and provisions of this Agreement.
"City Fault" - means any breach of this Agreement by the negligence or willful
misconduct of the City.
"Commencement Date" - means May 15, 2017.
"Contract Date" - means the date of execution of this Agreement.
"Contract Year" - means the one year period beginning on the Commencement Date
and ending on December 31, 2017 (which shall be the first Contract Year) and each succeeding
period beginning on January 1st of each year and ending on the day immediately prior to the next
succeeding anniversary of the Commencement Date, provided that last Contract Year shall be a
partial year beginning on January 1, 203 7 and ending on the 20th anniversary of the
Commencement Date.
"Day" - means a calendar day of twenty-four hours measured from midnight to the next
midnight.
"DEP" or "Department" - means the New Jersey Department of Environmental
Protection or any successor agency.
"Division" - means the Local Finance Board of the Division of Local Government
Services of the New Jersey Department of Community Affairs.
"Environmental Condition" -
means soil or groundwater or surface water
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contamination (a) migrating from any portion of the Water Supply System as a result of a release
of a hazardous substance originating at, in, or from the Water Supply System, to the extent not
caused by the negligence or willful misconduct of Operator (including subcontractors, employees
and agents) or which is inherent in operating the Water Supply System; or (b) migrating to the
Water Supply System as a result of any source condition existing on other property, to the extent
not caused by the negligence or willful misconduct of the Operator (including subcontractors,
employees and agents).
"EPA" - means the United States Environmental Protection Agency or any successor
agency.
"Fixed Management Fee" - means the fixed compensation due to the Operator for the
Services rendered pursuant to this Agreement, as permitted by the guidelines of Rev. Proc. 97-
13 and as specifically set forth in Schedule 5.
"Hazardous Substance" - means any (a) substance, product, waste or other material of
any nature whatsoever which is, or at any time before or after the Contract Date becomes, listed,
regulated or addressed pursuant to (i) Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Section 9601, et seq. ("CERCLA"); (ii) the Hazardous Materials
Transportation Act, 49 U.S.C. Section 1801 et seq.; (iii) the Resources Conversation and
Recovery Act, 42 U.S.C. Section 6901 et ~("RCRA");_(iv) the Toxic Substances Control Act,
15 U.S.C. Section 2601 et seq.; (v) the Clean Water Act, 33 U.S.C. Section 1251 et ~(vi)
applicable New Jersey Environmental Laws and/or (vii) any other federal, state, regional or local
statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to
or imposing liability, responsibility or standards of conduct concerning any hazardous, toxic, or
dangerous substance, product, waste or other material, as now or any time hereafter in effect; (b)
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substance, product, waste or other material of any nature whatsoever which may give rise to
liability under any of the foregoing or under any statutory or common law theory based on
negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions
of a state or federal court; (c) petroleum or crude oil excluding deminimis amounts and
excluding petroleum and petroleum-based products contained within regularly operated motor
vehicles or other equipment; or (d) asbestos; (2) but not chlorine, lubricants or any substances
inherent in operating, managing, maintaining or Repairing the Water Supply System.
"Index Factor" - has the meaning set forth in Schedule 5.
"Maintenance Index Factor" has the meaning set forth in Schedule 5.
"Minimum Financial Criteria" - means the financial requirements applicable to the
Operator as set forth in Schedule 16 attached hereto.
"Minimum Technical Criteria" - means the technical requirements applicable to the
Operator as set forth in Schedule 17 attached hereto.
"Notice to Proceed" - has the meaning set forth in Section 4.4.
"O&M" - means operation and maintenance.
"Operator" - means SUEZ Water Environmental Services Inc., or its permitted
successors or assigns.
"Pass-through Charge" - means the increase in the Annual Service Fee paid to the
Operator to reimburse the Operator, on a dollar-for-dollar basis, for additional costs of the
Operator incurred resulting from the occurrence of (a) Unforeseen Events; (b) increase in cost to
provide Services due to an expanded scope of services and/or an expanded service area; (c)
increases subsequent to Commencement Date in electric rates (which costs shall not be subject to
overhead or markup); or (d) other items as identified in the Agreement that entitle Operator to an
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adjustment to the Annual Service Fee.
"Pass-through Credit" - means the reduction in the Annual Service Fee paid to the
Operator to give the City the benefit, on a dollar-for-dollar basis, of the reduction in costs
(excluding profit) incurred resulting from the occurrence of (a) Unforeseen Events; (b)
operational cost savings resulting from Capital Improvements financed and/or implemented by
the City; (c) decreases subsequent to Commencement Date in electric rates (which costs shall not
be subject to overhead or markup); or ( d) other items as identified in the Agreement that entitle
City to an adjustment to the amount owed to Operator.
"Permits" - means permits, approvals and/or licenses issued by the United States
Environmental Protection Agency (USEP A), the Department or any other federal, State or local
regulatory agency, authority or private party that is necessary for the proper operation of the
Water Supply System.
"Preexisting Environmental Condition" - means the condition of the real property
(including, without limitation, soil, subsurface soils, subsurface gases, surface and groundwater)
and any and all structures and improvements located at, on, in, under, above, or in the vicinity of
any portion of the Water Supply System on or before the Commencement Date, including,
without limitation, the presence at, on, in, under, above or in the vicinity of the Water Supply
System of any Hazardous Substances.
"Proiect Guarantor" - means SUEZ Water Inc., or its permitted successors or assigns.
"Project Guarantor Agreement" - means the agreement(s) between the City and the
Project Guarantor that guarantees all of the financial and performance obligations of the
Operator.
"Proposal" - means the Proposal submitted by the Operator in response to the RFQ/RFP
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and accepted by the City.
"Repair(s)" - means any repair, renewal or replacement of property, including the
acquisition or installation of substitute property, for the purposes of assuring that such property
continues to be useful for the purposes for which such property or the original property was
designed, without enhancement in the capacity or performance characteristics of such property
the cost of which is less than Twenty-Five Thousand Dollars ($25,000); provided, however, (i)
with respect to the Water Treatment Plant and pump stations, a Repair shall not include
replacement of certain equipment such as pumps and process equipment; and (ii) with respect to
the water distribution system, such Repair shall not include replacement of more than two (2)
lengths of pipe, regardless of depth, location and/or interaction with other utilities, all of which
are deemed Capital Improvements. All Repairs shall include the cost of engineering, design,
permitting, labor and materials, which shall be the responsibility of the Operator. All Repair
work shall be overseen by the Operator and all outside contracts will be properly supervised by
the Operator throughout the Repair process. The terms "Repairing" or "Repaired" as used herein
shall refer to making a Repair.
"Rev. Proc. 2017-13" - means Revenue Procedure 2017-13, as supplemented, amended,
revised or superseded, and any supplement, amendment or revision thereof to the extent
applicable to this Agreement.
"RFO/RFP" - means the Request for Qualifications and Proposals for a Services
Agreement for the Operation, Management, Maintenance and Repair of the City of Rahway's
Water and Wastewater Collection Systems, dated issued by the Authority on behalf of the City.
"Services" - means all of the duties, obligations, and services as defined herein to be
provided by the Operator including operational, management and maintenance and Repair
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services, development of a plan for the renewal and replacement of infrastructure, coordination
of System operations with the City for System-wide optimal performance, customer service and
billing for water and sewer customers, development of recommendations for addressing high
water loss in the Water Supply System, as well as other services, all as defined in this Agreement
and in the Best Management Practice Plans attached hereto as Schedule 2, and if mutually
agreed by City and Operator, implementation of, the selected effective responses to high water
loss in the Water Supply System.
"State" - means the State of New Jersey
"System" - means collectively all of the individual components and elements which
compromise the Water Supply System all owned by the City of Rahway.
"Term" - means the period of time in which this Agreement is in full force and effect.
"Total User Charge Rate" - means that rate charged to the users of the Water Supply
System.
"Unforeseen Events" - means (a) any acts, events or conditions or any combination
thereof (other than a labor strike by the Operator, its employees or affiliates) that are (i) outside
of the reasonable control of the Party relying thereon not performing an obligation or complying
with any condition required of such Party under the Agreement; and (ii) has had or may be
reasonably expected to have a direct, material adverse effect on the Water Supply System or the
operation thereof, including, without limitation, the following:
A. Force Maieure events that are outside the reasonable control of the Party relying thereon,
such as acts of God, acts of terrorism, insurrections, riots, epidemics, landslides,
lightning, earthquakes, fires, floods of a severity and nature that result in declarations of
emergency by federal, State or local governments or that prohibit or materially impede a
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Party from fulfilling its obligations under this Agreement, changes in quantity and quality
of raw water that cannot be addressed through the raw water adjustment set forth in
subparagraph (H) below, explosions, civil disturbances, acts of the public enemy,
declarations of emergency by State, or local governments, and war;
B. Change in Law, defined as (1) the enactment of any law or regulations after the Contract
Date excluding laws adopted as of the date of submission of the Proposal but which have
provisions that take effect after the Contract Date or (2) a material modification of or
imposition of any material condition on the issuance, modification or renewal of any
Permit which, in the case of either ( 1) or (2) above, establishes requirements affecting the
financing or operation or capital costs of the Water Supply System that are more
burdensome than the most stringent requirements in effect as of the Contract Date;
C. Judicial/Administrative Determinations, defined as the final order, judgment, action
and/or determination of any federal, state or local court of competent jurisdiction,
administrative agency or governmental body ( other than the City if issued pursuant to the
provisions of this Agreement expressly authorizing the same);
D. Permit Terminations, defined as the suspension, termination, interruption, denial or
failure of renewal or issuance of any Permit (to the extent not caused in any way by the
negligence or willful misconduct of the Operator) that is necessary to operate the Water
Supply System.
E. Failure of Essential Services, defined as the failure of any applicable federal, State,
municipal, county or other public agency or private utility having operating jurisdiction
in the area in which the facility is located, or providing wholesale water services to the
City, to provide and maintain utilities, services, water and sewer lines and power
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transmission lines to the Water Supply System, except if such failure is caused by the
negligence or willful misconduct of the Operator.
F. Condemnation, defined as the condemnation, taking, seizure, involuntary conversion or
requisition of title to or use of the Water Supply System, or any material portion or part
thereof by the action of any federal, State or local government or governmental agency.
G. Labor strikes, provided however, that those strikes directed at the Operator, or its other
related entities, employee(s), or affiliate(s) shall not be an event beyond Operator's control.
H. Raw Water Adjustment, for significant changes on a rolling 12-month basis: (1) in raw
water characteristics relative to baseline values, which shall be the average of raw water
characteristics data from the preceding three (3) year period immediately prior to the
Commencement Date of this Agreement; and (2) for changes in production, for significant
(i.e., +/- 10% or more) changes in production from the baseline value, which shall be
determined as an average of calendar years 2016, 2017 and 2018.
The foregoing
adjustments shall include only documented variable costs directly related to the
documented changes in raw water characteristics and water production.
"Wastewater Billing" - means preparation, maintenance and collection of all bills and
invoices to the users of the Sewer Collection System as more fully described in Schedule 3.
"Water Act" - means the "New Jersey Water Supply Public/Private Contracting Act,"
N.J.S.A. 58:26-19 et seq.
"Water Supply System" - means, collectively, all of the individual components and
elements which comprise the City's potable water supply system as described in Schedule 2
attached hereto.
"Water Treatment Plant" - means the water treatment plant located at 1045 Westfield
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Avenue, Rahway, NJ.
"Water Treatment Plant Upgrade Project" means the City's upgrade to the Water
Treatment Plant in progress as of the Contract Date consisting of replacement of existing gravity
filters with membrane filters, replacement of sludge pond liner and other work as set forth in
Schedule 1, which the Parties anticipate being operational on or about January 1, 2018.
Section 1.2. Interpretation. Whenever the context may require, any pronoun that is used
in this Agreement shall include the corresponding masculine, feminine and neuter forms and the
singular shall include the plural and vice versa. Unless otherwise noted, the words "include,"
"includes" and "including" when used in this Agreement shall be deemed to be followed by the
phrase "without limitation." The words "agree," "agreements," "approval" and "consent," when
used in this Agreement, shall be deemed to be followed by the phrase "which shall not be
unreasonably withheld or unduly delayed," except or unless the context may otherwise specify.
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ARTICLE II. MANAGEMENT SERVICES.
Section 2.1. Operation, Management, Maintenance and Repair of the Water Supply
System. On and after the Commencement Date, the City and the Operator, in combination with
each other in the manner herein described, shall operate, manage, maintain and Repair the Water
Supply System, including undertaking such Capital Improvements as may be agreed between
City and Operator or otherwise provided for in this Agreement, all on the terms and conditions
set forth in this Agreement and Schedules attached hereto.
Section 2.2. Performance and Payment Bonds. Operator shall obtain at its own
expense and deliver to City on or before the Commencement Date, a performance bond and a
labor and materials payment bond, each in an amount equal to 100% of the Fixed Management
Fee for each Contract Year. The bonds shall be renewed annually in each Contract Year. The
performance bond and the labor and materials payment bond shall be obtained from a surety(s)
that is authorized to do business in the State and that is listed in the United States Treasury
Department Circular 570. Neither non-renewal by the surety, nor failure or inability of the
Company to file a performance and payment bond for subsequent terms under this Agreement
shall constitute a loss to the surety recoverable under such bond.
Such bonds shall be
substantially in the form attached hereto as Schedule 20.
ARTICLE III. TERM
Section 3.1. Term. The Term of this Agreement shall commence on the Commencement
Date and, unless earlier terminated in accordance with the terms hereof, shall expire on the
twentieth (20th) anniversary of the Commencement Date. As of the Commencement Date, the
Water Services Agreement for Operation, Management, Maintenance & Repair of the City of
Rahway's Water System dated September 29, 1999 ("Prior Agreement") between the City and
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SUEZ Water Environmental Services Inc., as successor in interest to United Water Operations
Inc., is hereby terminated by mutual agreement of the parties. The City and the Operator, on
behalf of themselves, their successors and assigns, each hereby mutually release the other Party,
its successors, assigns, affiliates, and SUEZ Water Resources Inc., as successor to United Water
Resources Inc., as Guarantor of the Prior Agreement, its officials, officers, and representatives
from all claims and demands arising out of the fee structure or fees paid to the Operator under
the Prior Agreement.
Neither the City nor the Operator has assigned any claims arising out of
the Prior Agreement.
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ARTICLE IV. CONDITIONS PRECEDENT
Section 4.1. General. The issuance of a Notice to Proceed and the establishment of the
Commencement Date shall be subject to the satisfaction or waiver of the conditions precedent set
forth in this Article IV hereof.
Section 4.2. Conditions Precedent to the City's Obligations. The City shall be under
no obligation to perform any obligations under the terms of this Agreement (other than those
obligations arising or relating to actions required to be taken by or on behalf of the City pursuant
to Article IV prior to issuance of the Notice to Proceed) unless the following conditions have
been satisfied (or waived by the City, in writing):
(a)
The Board, the Division and the Department shall have approved this Agreement.
(b)
Reserved
(c)
The Operator and the Project Guarantor shall have been validly organized and
created and shall be validly existing under the laws of the jurisdiction in which
each was incorporated and the Operator is authorized to transact business in the
State, as evidenced by delivery of (1) certified copies of the Certificate of
Incorporation and the Certificate of Good Standing and certification of the State
that the Operator is authorized to do business in the State; (2) an opinion of
counsel to the Operator and the Project Guarantor to such effect; and (3) such
other documentation as the City may reasonably require to evidence satisfaction of
the requirements set forth in this subparagraph.
( d)
The Operator shall have delivered the Project Guarantor Agreement to the City,
and such Project Guarantor Agreement shall be duly executed and delivered by the
duly authorized and proper corporate officers of the Project Guarantor.
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(e)
The Operator shall have delivered to the City (1) a certificate of an authorized
officer of the Operator, dated the Commencement Date, to the effect that each of
the representations of the Operator that are set forth in Section 5.2 of this
Agreement are true and correct as if made on such date, and (2) an opinion of
counsel to the Operator and the Project Guarantor, in a form which is reasonably
satisfactory to the City and its counsel, to the effect set forth in Section 4.2 ( c)
and (h) hereof
(f)
The Operator, its employees and/or its subcontractors, as applicable, shall have
obtained all applicable Permits, licenses and authorizations that are necessary for
the operation, management, maintenance and Repair of the Water Supply System
other than those Permits required to be maintained by the City.
(g)
The Operator shall have submitted to the City all certificates of insurance and, at
the City's option, copies of all applicable endorsements to insurance policies, as
are required by the terms of this Agreement.
(h)
The Operator and the Project Guarantor shall have delivered an Opinion of
Counsel to the effect that to the best of such counsel's knowledge, after
reasonable investigation, there is no material action, suit, proceeding or official
investigation that has been threatened, publicly announced or commenced by any
federal, state or local governmental authority or agency, or in any federal, state or
local court, that seeks to enjoin, assess civil or criminal penalties against, assess
civil damage against or obtain any judgment, order or consent decree with
respect to the Operator or the Project Guarantor or with respect to the Agreement
or the Project Guarantor Agreement in which an unfavorable decision, ruling or
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finding could reasonably be expected to have a material and adverse effect on the
Operator's or Project Guarantor's negotiation, execution, delivery or performance
of any such agreements or its participation or intended participation in any
transaction contemplated thereby.
(i)
No receiver, liquidator, custodian or trustee of the Operator or the Project
Guarantor or of a major part of either entity's property shall have been appointed
subsequent to the Contract Date, and no petition to reorganize the Operator or the
Project Guarantor pursuant to the United States Bankruptcy Code or any similar
statute that is applicable to the Operator or the Project Guarantor shall have been
filed; and no adjudication of bankruptcy or a filing for voluntary bankruptcy
under the provisions of the United States Bankruptcy Code or any other similar
statute which is applicable to the Operator or the Project Guarantor shall have
been filed.
(j)
No indictment is pending and no conviction has been returned against any officer
of the Operator or the Project Guarantor with respect to any business transaction,
whether or not related to the transactions contemplated by the terms and
conditions of this Agreement.
(k)
The Minimum Financial Criteria set forth in Schedule 16 have been, and
continue to be, satisfied as of the Contract Date. The entity for which the
Minimum Financial Criteria will be measured, and which is obligated to provide
financial information, shall be the Project Guarantor.
(1)
No change shall have occurred subsequent to the Contract Date and on or prior
to the Commencement Date in any applicable federal, State or local law, or any
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applicable federal, State or local statute, regulation thereunder or written
interpretation thereof by any applicable regulatory authority, that would make
the execution or delivery by either Party of this Agreement or the compliance by
the City with the terms and conditions hereof or the consummation by the City
of the transactions contemplated hereby, a violation of such law, statute or
regulation.
(m)
The Operator shall have delivered the Performance and Labor and Materials
Payment Bonds required pursuant to Section 2.2 of this Agreement.
Section 4.3. Conditions Precedent to Operator Obligations. The Operator shall be
under no obligation to perform any obligations under the terms of this Agreement (other than
obligations arising or relating to actions required to be taken by or on behalf of the Operator
pursuant to this Article IV prior to issuance of the Notice to Proceed) unless the following
conditions have been satisfied (or waived by the Operator. in writing):
(a)
The Board, the Division and the Department shall have approved this Agreement.
(b)
The City shall have delivered to the Operator a certificate of an authorized officer
of the City, dated the Commencement Date, to the effect that each of the
representations of the City that are set forth in Section 5.1 hereof are true and
correct as if made on such date.
(c)
To the knowledge of the Operator and Project Guarantor, respectively, no
material action, suit, proceeding or official investigation shall have been
threatened, publicly announced or commenced by any federal, State or local
governmental authority or agency, or in any federal, State or local court, that
seeks to enjoin, assess civil or criminal penalties against, assess civil damage
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against or obtain any judgment, order or consent decree with respect to the City or
to this Agreement or the Project Guarantor Agreement as a result of the City's
negotiation, execution, delivery or performance of any such agreement or its
participation or intended participation in any transaction contemplated thereby.
(d)
No change shall have occurred subsequent to the Contract Date in any applicable
federal, State or local law, or any applicable federal, State or local statute or
regulation thereunder or written interpretation thereof by any applicable
regulatory authority, that would make (i) the execution or delivery by either party
to this Agreement ( or the execution or delivery by the Project Guarantor of the
Project Guarantor Agreement), (ii) the compliance by the Operator or the Project
Guarantor with the terms and conditions hereof or (iii) the consummation by the
Operator or the Project Guarantor of the transactions contemplated hereby, a
violation of such law, statute or regulation.
(e)
Except as previously disclosed, no change shall have occurred subsequent to the
Contract Date and prior to Commencement Date, in the financial condition of the
City that would materially and adversely affect for a substantial period of time the
ability of the City to meet its financial obligations under the Agreement.
(f)
The City shall have delivered to Operator and Project Guarantor an Opinion of
Counsel, in form reasonably satisfactory to the Operator and Project Guarantor,
to the effect that the City is a municipality duly organized under the laws of the
State of New Jersey; and the City has the power and authority to execute and
perform its obligations under the Agreement; the City has taken all corporate
action necessary to authorize the execution of this Agreement; and the
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Agreement is legal, valid and binding and enforceable against the City m
accordance with its terms.
Section 4.4. Satisfaction of Conditions Precedent.
(a)
The Parties hereto shall exercise good faith and due diligence in satisfying the
conditions precedent required by this Article IV and shall promptly proceed to perform or cause
to be performed those conditions precedent, or portions thereof, that are within each Party's
control.
(b)
If the Commencement Date has not occurred by ninety (90) days after the
Contract Date, the period in which the conditions precedent can be satisfied or waived may be
extended by joint agreement of the City and Operator, for a period of time to be agreed upon by
the City and Operator, on the same terms and conditions set forth in this Agreement, except to
the extent expressly provided below. The foregoing time frame is based on the understanding
that this Agreement will not be executed prior to receipt of approvals from the Board, the
Division and the Department.
(c)
In the event that the Commencement Date shall not have occurred on or before
May 15, 2017 or prior to the last day of any extension period elected pursuant to Section 4.4(b),
then either Party, by notice in writing to the other Party, may terminate this Agreement. Unless
the reason for such termination is the sole fault of a Party to this Agreement, each Party shall
bear its respective expenses attributable to the Agreement.
( d)
The Operator and the City shall each provide an executed acknowledgment to the
other of the date that the respective conditions precedent to its obligations under this Agreement
have been met or waived and such acknowledgment shall be given within thirty (30) days of the
date on which the last such condition is met or waived. Neither Party will be permitted to
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terminate this Agreement for failure to satisfy any condition precedent that is entirely and
reasonably within such Party's control or which failure is determined to be the terminating
party's fault.
Upon satisfaction of the above conditions, the City shall within five (5) business days
immediately issue the Operator a formal written Notice to Proceed.
Section 4.5. Timing of Certain Obligations.
Pursuant to the Water Act, this Agreement must be submitted to the Division, Department
and the Board for review and approval. The City shall be responsible for obtaining such review
and approval, and the Operator shall cooperate with the City in providing any assistance and
information that is required in order to obtain such review and approval. In the event that the
Division, Department and/or the Board conditionally approve this Agreement or any portion
thereof and premise final approval on the acceptance of certain proposed terms and conditions by
the Parties, to the extent that such terms and conditions are immaterial terms and conditions in
that such terms and conditions do not (i) materially and adversely affect the rates to be charged
by the City; or (ii) materially and adversely impact the cost to operate and maintain the Water
Supply System (or any portion thereof); or (iii) materially and adversely impact the obligations
of the City or the Operator to operate and maintain the Water Supply System (or any portion
thereof), the Parties shall accept such terms and conditions and shall modify this Agreement as
reasonably agreed to include such terms and conditions. If the proposed terms and conditions
imposed by the Division, Department or the Board are material terms and conditions in that such
terms and conditions (i) materially and adversely affect the rates to be charged by the City; or (ii)
materially and adversely impact the cost to operate and maintain the Water Supply System (or
any portion thereof), then the Parties shall cooperate in good faith to negotiate mutually
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acceptable terms and conditions to this Agreement that will satisfy the concerns of the Division,
Department, or the Board.
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ARTICLE V. REPRESENTATIONS AND WARRANTIES
Section 5.1. City Representations, Warranties and Covenants. The City hereby
represents and warrants to the Operator as follows:
(a)
The City is a municipal corporation duly created and existing pursuant to the laws
of the State. The City has the requisite power and authority to enter into this
Agreement.
(b)
The City has the legal capacity and authority to assess the rates for the supply of
water services to customers of the Water Supply System that are required to be
established by the City pursuant to Section 8.5 (Establishment and Collection of
Rates, Fees and Charges) hereof. The City has and will maintain for the Term of
this Agreement the legal capacity and authority to impose liens for the
nonpayment of such rates and fees. Other than the existing indebtedness and any
indebtedness for Capital improvements if such are undertaken and paid for by the
City, there are no liens, notes, bonds, mortgages, encumbrances, or other
entitlement to the revenues of the Water Supply System (other than connection
fees, if any, which shall be retained by the City), that have priority over the
Operator's entitlement to the revenues of the Water Supply System pursuant to this
Agreement.
( c)
Other than that disclosed to the Operator in writing referring to this Section, the
City is not aware of any claims, suits, actions, or judgments which, if successful,
would create an encumbrance upon the revenues of the Water Supply System
which would have a priority over the Operator's entitlement to be paid from the
revenues of the Water Supply System pursuant to this Agreement or which
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otherwise would have a material adverse effect on the ability of either the Operator
or the City to perform its obligations hereunder
( d)
The City has enacted, or will have enacted by the Commencement Date, all
municipal laws, ordinances, or regulations necessary for the performance of this
Agreement. The City shall establish rates and fees for Services in accordance with
Section 8.5 hereof.
Section 5.2. Operator Representations, Warranties and Covenants. The Operator
represents and warrants to the City as follows:
(a)
The Operator is an entity duly organized and validly existing and in good standing
in the State of Delaware, and is qualified and authorized to do business in the
State.
(b)
The Operator has full power and authority to enter into this Agreement and to
perform its duties and obligations hereunder. This Agreement has been duly
authorized, executed and delivered by the Operator and the authorization,
execution, delivery and performance of this Agreement by the Operator will not
violate any law, judgment, order, ruling or regulation applicable to the Operator
and does not constitute a breach of or default under any agreement or instrument
by which the Operator is bound.
(c)
The Operator has or holds, or will have or hold as of the Commencement Date,
and will continue to have or hold throughout the Term of this Agreement, all
approvals, licenses, Permits, and certifications necessary to operate, manage,
maintain and Repair the Water Supply System, except those Permits that are held
by the City, in accordance with the terms and provisions of this Agreement, and
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competent and experienced personnel on its staff who have direct experience in
operating, managing, maintaining and Repairing water systems similar in nature
and character to the Water Supply System.
(d)
To the best of Operator's knowledge, no litigation is pending or threatened (or
reasonably foreseeable) against the Operator that would impair its ability to
perform its duties and obligations under this Agreement.
(e)
At all times during the Term of this Agreement, after the Commencement Date,
the Operator shall keep the Water Supply System and all components thereof free
from any and all liens and encumbrances arising out of or in connection with its
provision of the Services or any acts, omissions or debts of the Operator, its
parent, any of its affiliates or subsidiaries, or any of its subcontractors.
(f)
At all times during the Term of this Agreement, the Operator and/or Project
Guarantor shall meet and maintain the Minimum Financial Criteria, as set forth in
Schedule 16.
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ARTICLE VI.
OPERATION, MANAGEMENT, MAINTENANCE AND REPAIR OF THE SYSTEM
Section 6.1. General.
(a) On and after the Commencement Date and throughout the Term of this Agreement,
the Operator shall operate, manage, maintain and Repair the Water Supply System at all times on
behalf of the City and shall perform the Services in a professional, efficient and economical
manner and in accordance with the terms and provisions set forth in this Agreement, in
accordance with the Schedules attached hereto and in accordance with the capabilities of the
System. In addition, the Operator shall perform the Services in compliance with all federal, State
and local laws, regulations, Permits and requirements, within the design and operational
capabilities of the System, as reflected in Schedule 2, as same may be amended from time to
time, and based on the City's performance and funding of necessary Capital Improvements.
(b) The total cost of all Services outlined in this Agreement and in the Schedules shall be
included in the Fixed Management Fee, to be paid to the Operator in accordance with Schedule
~. Although the Schedules address the major activities required to be performed by the Operator,
they are not, however, intended to include all specific activities that are necessary for meeting
the performance requirements set forth in this Agreement, the Schedules, and the O&M Plan,
and in no way do they limit the Scope of the Services in Schedule 2 under this Agreement.
(c) The Operator shall include recommendations for upgrades to the Water Supply
System in accordance with its responsibilities under Section 7.2 of this Agreement. If a
disagreement arises over the Operator's explanation of limitations or proposed recommendations
for upgrades, the matter shall be subject to the dispute resolution procedure set forth under
Section 10.24 of this Agreement.
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Section 6.2. Maintenance and Repair
(a)
The Operator shall perform all maintenance and Repairs of the machinery,
equipment, structures, improvements and all other property constituting the System during the
Term of this Agreement required under the Agreement and the Schedules attached hereto. The
City's approval for any such maintenance or Repair shall not be required unless it constitutes a
Capital Improvement in which event the City shall have the right to approve such Capital
Improvement. Failure of the City to approve reasonable Capital Improvements requested by the
Operator, which the Operator has documented will cause the Operator to either fail to meet the
contract performance standards, affect water quality or environmental compliance or cause the
Operator to expend additional monies to properly operate the System will be a City Fault. The
Operator and the City will cooperate to anticipate annual expenditures for Capital Improvements
to assist the City in its budgeting process. The obligations of the Operator hereunder are
intended to assure that the System is fully, properly and regularly maintained and Repaired in
order to preserve their long-term reliability, durability and efficiency. The Fixed Management
Fee shall include a budgeted amount (the "Annual Maintenance Cap") as set forth in Schedule 5
for such maintenance and Repair of the System as described in this Agreement, and that amount
is included in the Fixed Management Fee paid to the Operator as set forth in Schedule 5. Any
amount of the Annual Maintenance Cap that remains unused at the end of a Contract Year shall,
at the City's option, either be added to the following year's Annual Maintenance Cap or be
refunded to the City at the end of such Contract Year. In connection therewith, the City will
allow the Operator, where appropriate, to make use of its annual contracts for procuring goods
and services necessary to complete the maintenance and Repair work. Examples of eligible
maintenance related costs for which the Operator shall be entitled to charge against the Annual
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Maintenance Cap pursuant to this Section are included in Schedule 5. For the avoidance of all
doubt Operator's labor costs and Operator's mark-up of materials, supplies, equipment rental
and subcontracting shall not be eligible maintenance related costs for costs that are within the
Annual Maintenance Cap. All maintenance costs that exceed the Annual Maintenance Cap shall
be the responsibility of the City as a Pass-Through Charge.
The amount of the Annual
Maintenance Cap shall be adjusted annually for inflation in accordance with changes in the
Index Factor.
The Operator shall include in its monthly status reports sufficient information for the
City to monitor the amounts spent on maintenance and Repair during each Contract Year and to
determine when the Operator is within approximately 80% of reaching the Annual Maintenance
Cap. As soon as the Operator reasonably believes that it will exceed the Annual Maintenance
Cap, the Operator shall so notify the City and shall promptly recommend a revised maintenance
budget for the remainder of the Contract Year sufficient to accomplish maintenance of the
System through the end of the Contract Year, subject to City approval, which shall not be
unreasonably withheld; provided, however, such changes would be subject to corresponding
adjustments to the requirements of Schedule 2, as applicable. If other maintenance and Repair
activities are necessary to be accomplished during the Contract Year that would result in an
exceedance of the Annual Maintenance Cap, such expenditures shall be subject to City
approval, except in emergencies as described herein. If the City does not approve the additional
necessary maintenance and Repair expenditures, then the City shall indemnify, defend and hold
the Operator harmless, to the extent permitted by law, after one hundred percent (100%) of
funds allocated under the Annual Maintenance Cap have been expended, from and against any
and all non-compliance, fine, penalty or enforcement action and reimbursement to the Operator
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for documented additional costs incurred to operate and maintain the System arising from,
related to or resulting from the City's rejection of the Operator's recommended additional
maintenance and Repair. Without limiting the foregoing, the Operator shall be excused from its
obligations under Schedule 2 to the extent necessary expenditures are not approved by the City.
Any individual expenditure or expenditures, except for emergencies, that would exhaust
or exceed the Annual Maintenance Cap for any Contract Year will require the City's written
approval, and Operator shall not be required to undertake any such expenditure without such
written approval. For emergencies, the Operator shall promptly (within 2 hours of becoming
aware of an event precipitating an emergency) notify the City Business Administrator and City
Engineer by telephone or E-mail of the nature of the emergency, continue to provide regular
updates on the emergency condition, and as soon as reasonably practicable thereafter, not later
than 10 business days, shall provide updated information regarding the nature and severity of
the condition and the estimated Repair costs, and shall keep the foregoing City representatives
advised of progress and changes that may occur as the emergency situation is addressed. The
City shall have the right to undertake the work associated with any such expenditure on its own
or via the procurement of an outside contractor. In the event the City shall approve a proposed
expenditure by the Operator which causes the Annual Maintenance Cap to be exceeded, the
Operator shall proceed with the work and the City shall reimburse the Operator for the cost of
materials, supplies, equipment rental and subcontracting costs in excess of the Annual
Maintenance Cap related to the work, plus fifteen percent (15%) on the first $100,000 and
twelve percent (12%) on amounts in excess of $100,000, no later than thirty (30) days from the
date of receipt of an invoice therefore from the Operator. Any amount included in an Annual
Maintenance Cap that is not expended for maintenance during a Contract Year shall be carried
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over to the subsequent Contract Year or at the City's option refunded to the City during such
Contract Year, and any such monies which are not expended as of the end of this Agreement
shall be returned to the City.
(b)
The Operator shall develop, implement and maintain a comprehensive computer-
based maintenance management program for all components of the Water Supply System, in
accordance with Schedule 2 of this Agreement.
( c) Maintenance shall be performed by the Operator in accordance with Schedule 2, the
terms and provisions of this Agreement, the O&M Plan, routine maintenance schedule,
manufacturers' recommendations, federal, State and local requirements, and industry standards.
The Operator shall maintain documentation of all maintenance activities.
The Operator shall provide to the City, in accordance with Schedule 2, a written O&M
Plan that consists of the schedule of preventive maintenance activities for the upcoming Contract
Year in a form consistent with Schedule 14 of this Agreement. The City shall have sixty (60)
days to approve such O&M Plan or provide written comments on such plan to the Operator. If
the City does not provide such written comments, the O&M Plan shall be deemed approved. If
the O&M Plan is not approved, the City and the Operator shall endeavor to resolve any concerns
and if not resolved within thirty (30) days after the City notifies the Operator that it does not
approve the O&M Plan, or if the O&M Plan is deemed to have not been approved, the matter
shall be referred to dispute resolution pursuant to Section 10.24 of this Agreement.
The Operator shall include information in its monthly reports that will assist the City on
an ongoing basis in evaluating the Operator's maintenance accomplishments relative to the
annual O&M Plan. The City shall bring any concerns or questions regarding the monthly reports
to the Operator's attention within thirty (30) days of receipt of each report. In the event the
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Operator fails to provide an annual written O&M Plan and comprehensive monthly reports that
detail the preventative maintenance and general maintenance activities provided to the City, the
City shall advise the Operator of its deficiency and the Operator will have thirty (30) days to
cure.
If a disagreement arises under this Section 6.2, the Parties shall comply with the dispute
resolution procedure set forth under Section 10.24.
Section 6.3 Analytical Services. The Operator shall perform testing, sampling and any
other analytical procedures to demonstrate compliance with this Agreement, applicable
regulatory requirements, and Permit provisions, in accordance with Schedule 2 of this
Agreement.
Section 6.4. Memorandums of Agreement. The Operator shall be responsible for
operation, management, maintenance and Repair of the Water Supply System in compliance with
all Permits and Memorandums of Agreement (MOAs), in accordance with Schedule 2 and
Schedule 18 of this Agreement, it being acknowledged that any revised or new Permits or
MOAs after the Contract Date will be Changes in Law.
Section 6.5. Equipment and Chemicals. (a) The Operator shall keep all equipment in
good operating condition and maintain and operate all equipment and chemicals and perform all
tests and testing, in accordance with Schedule 2 of this Agreement.
(b) All equipment, and chemicals provided by the City on and after the Commencement
Date, including any equipment and chemicals on order, shall be deemed to be owned by the City
and shall remain a part of the Water Supply System upon tennination or expiration of this
Agreement.
Section 6.6 Asset Inventory and Maintenance. The Operator shall provide to the City
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in the Operator's annual reports an updated asset inventory with the initial inventory to be based
upon Schedule 10 of this Agreement. For the avoidance of doubt, the asset inventory referred to
in this Section 6.6 is not the same as the asset management plan referred to in Schedule 2 of this
Agreement.
Section 6. 7. Buildings and Grounds Services. The Operator shall maintain the current
condition of the Water Supply System and maintain the facilities and facilities' structures in
accordance with Schedule 2 of this Agreement.
Section 6.8. Utilities. As of the Commencement Date, the Operator shall be responsible
for supplying and paying for all utilities, subject to the other terms and conditions of this
Agreement. For the avoidance of doubt, it is acknowledged that payments for wholesale water
supply to the City are not considered utilities and are to be paid by the City.
Section 6.9. Planning. The Operator shall be responsible for supporting the City's short
and long-term planning for the Water Supply System, in accordance with Schedule 2 and
Schedule 7 of this Agreement.
Section 6.10. Economic Development. The Operator shall provide all reasonable
services requested by the City or potential developers or others regarding potential development
or rehabilitation within the City to the extent such development or rehabilitation affects the
Water Supply System.
Section 6.11. Permits. The Operator shall maintain continuous compliance with all
federal, State and local Permits held by the City related to the Water Supply System, and support
the City in obtaining any Permits (federal, State or local) required to operate, maintain, or
enhance the Water Supply System over the Term of this Agreement. For the avoidance of all
doubt the City may, at its sole option, require the Operator to act on the City's behalf in applying
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for or renewing such Permits.
Section 6.12. Solid Waste Management. The Operator shall perform collection and
delivery of all solid waste from within the Water Supply System to disposal facilities, in
accordance with Schedule 2 of this Agreement.
Section 6.13. Water Supply System.
(a)
The Operator shall operate, maintain and manage the Water Supply System in
accordance with Schedule 2 of this Agreement, and in compliance with all federal, State and
local laws, regulations and requirements and in conformance with applicable Permits, including
those contained in Schedule 7 of this Agreement.
(b)
The Operator shall perform raw water monitoring in conformance with all
federal, State and local laws, regulations and requirements, and in accordance with Schedule 2
of this Agreement.
( c)
The Operator shall provide treated water in quantities meeting the production and
quality requirements specified in Schedule 2 of this Agreement and as required by applicable
Permits, subject to the other terms and conditions of this Agreement.
( d)
The Operator shall routinely monitor, calibrate and maintain all existing flow
meters; periodically remove accumulated iron and manganese deposits from exposed equipment
surfaces and unit processes; operate the solids handling and residuals disposal system in
accordance with all applicable Permits; and shall furnish all labor, materials, equipment and
incidentals required to operate, maintain and Repair the Water Treatment Plant all in accordance
with Schedule 2 of this Agreement.
( e)
The Operator shall perform process and finished water monitoring m
conformance with all federal, State and local laws, regulations and requirements, and m
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accordance with Schedule 2 of this Agreement.
Section 6.14. Distribution and Storage.
(a)
The Operator shall perform Repair of all water mains which become frozen or
broken, in accordance with Schedule 2 of this Agreement.
(b)
The Operator shall implement a valve exercising program in accordance with
Schedule 2 of this Agreement.
( c)
The Operator shall flush all hydrants and water mains, record the condition and
maintenance of the hydrants, and Repair the hydrants, in accordance with Schedule 2 of this
Agreement.
(d)
The Operator shall operate the Water Treatment Plant and all pumping facilities
needed to maintain distribution system water pressure at all locations and under all conditions in
accordance with Schedule 2 of this Agreement.
( e)
The Operator shall cooperate and assist Fire and Police Department personnel or
their representatives in times of fire or other emergencies in accordance with Schedule 2 of this
Agreement.
(f)
The Operator shall maintain, monitor and control water capacity in all storage
tanks, in accordance with Schedule 2 of this Agreement.
(g)
The Operator shall read, test, calibrate and Repair meters in accordance with
Schedule 2 of this Agreement.
(h)
The Operator shall replace commercial, industrial and residential meters in
accordance with Schedule 2 of this Agreement.
(i)
The Operator shall install meters in accordance with Schedule 2 of this
Agreement.
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(i) The Operator shall perform distribution system monitoring and notification m
conformance with all federal, State and local laws, regulations and requirements and m
conformance with applicable Permits, as currently performed by the City, and in accordance
with Schedule 2 of this Agreement.
(k)
The Operator shall meet the distribution system operating requirements in
accordance with Schedule 2 of this Agreement.
(1)
The Operator shall have no authority, without the prior written consent of the
City, to negotiate or finalize the terms of any bulk water sale of surplus water supply.
Section 6.15. Reserved
Section 6.16. Reserved.
Section 6.17. Operation and Maintenance Costs. The Operator shall provide, at its sole
cost and expense, all labor, materials, machinery, vehicles, storage areas, equipment, office
equipment (i.e., copiers, computers, etc.), fuel, chemicals, supplies, materials, spare parts,
expendables, consumables, testing and laboratory analysis, and any other items required for the
Operator to perform the Services, in accordance with the terms and provisions of this Agreement
and the Schedules attached hereto, including without limitation Section 10.16, and Schedule 5,
and subject to the Annual Maintenance Cap.
Section 6.18. Operations Review. The City shall have the right to and intends to
exercise its right to actively participate in the review of Services performed by the Operator and
any subcontractor throughout the term of this Agreement.
Section 6.18.1 Monthly Progress Reports. The Operator shall prepare and submit
monthly progress reports regarding the Services for submission to the City in accordance with
Section 4.10 of Schedule 2 of this Agreement. Such Monthly Progress Report shall contain a
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section that specifically provides a status concerning the development of the Annual O&M Plan
as addressed in Section 6.2(b) of this Agreement.
Section 6.18.2. Access to System and Records. (a) The City and/or its authorized
agents, and representatives from the governing regulatory agencies (e.g., DEP) reserve the right
to visit or inspect the Water Supply System at any time without advance notice, in accordance
with Schedule 2 of this Agreement. The City and/or its authorized agents and representatives
shall comply with the Operator's safety procedures of which they have been informed during
such visits.
(b) The City and/or its authorized agents and representatives shall perform an annual
inspection of the Water Supply System, in accordance with Schedule 2 of this Agreement.
(c) The Operator shall maintain all records of operating data and information relevant to
the Water Supply System, including accounting and financial records relating to the Annual
Maintenance Cap and Pass-Through Charges, and provide the City access to all such records
upon request, accompanied by an Operator representative, in accordance with Schedule 2 of this
Agreement.
( d) The Operator shall maintain a computerized recordkeeping system for all operation
and maintenance functions performed, in accordance with Schedule 2 of this Agreement.
Section 6.18.3. Meetings. The City and the Operator shall meet on a monthly basis to
discuss performance of Services, maintenance issues, equipment conditions, environmental and
Permit compliance, invoicing issues, public relations and other relevant issues, in accordance
with Schedule 2 of this Agreement.
Section 6.18.4. Audit of System and Review at Expiration of Agreement. A complete
System audit to determine the condition of the Water Supply System shall be provided by the
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Operator in accordance with the schedule set forth in Schedule 2 of this Agreement.
Section 6.19. Operations and Maintenance Plan.
(a)
The O&M Plan shall dedicate a separate section to detail the Operator's
maintenance and Repair program, in accordance with Schedule 2 of this Agreement. The
Operator shall make and complete all maintenance, Repairs and replacements to the Water
Supply System that are necessary to achieve such standard of Repair by performing all such
listed activities within the timeframe indicated in the O&M Plan.
Section 6.20. Continuous Operation. During the Term of this Agreement, the Operator
shall continue to operate and maintain all of the City's Water Supply System facilities on a
continuous basis, twenty-four hours a day, seven days a week, in accordance with the terms and
provisions of this Agreement, and in compliance with all applicable Permits and other federal,
State, and local requirements and Schedule 2 of this Agreement.
Section 6.21. Continuity of Service. The Operator shall cooperate in good faith with the
City, its agents, contractors, and subcontractors and shall provide for the orderly transition of
Services from the City/current operator and/or its/their contractors to the Operator without
interruption or disruption of Services and without adverse impacts to customers of the Water
Supply System or to the City, in accordance with Schedule 2 of this Agreement.
Section 6.22. Customer Services and Emergency Response. The Operator shall
respond promptly, i.e., within 2 hours, to the extent practicable and in a reasonable manner, to all
customer problems and emergencies pertaining to the Water Supply System in accordance with
Schedule 2 of this Agreement.
Section 6.23. Staffing.
(a) The Operator shall provide a staff of qualified and experienced employees who have
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direct experience in operating, maintaining and managing potable water systems similar in
nature and character to the City's Water Supply System, for operations, maintenance and
management procedures, and shall provide such additional third-party support as may be needed
to perform its duties and obligations hereunder, in accordance with Schedule 6 and Schedule 2
of this Agreement.
(b) The Operator at all times shall maintain the necessary number of employees, staff and
third-party contractors to operate, maintain and manage the Water Supply System in accordance
with the terms and provisions of this Agreement, to adequately maintain the Water Supply
System in good repair and to adequately operate the Water Supply System to provide good
service to the customers, and protect the health, welfare and safety of the citizens of the City.
Section 6.24. Licenses. The Operator shall acquire and hold, or cause its personnel to
acquire and hold, all required State, federal and local approvals, licenses, Permits, and
certifications necessary to operate, maintain and manage the Water Supply System in
accordance with the terms and provisions of this Agreement.
Section 6.25. Compliance with Laws and Regulations and Permits.
(a)
The Operator shall comply with the Safe Drinking Water Act ("SDWA"), Water
Pollution Control Act ("Clean Water Act"), Resource Conservation Recovery Act, as amended
("RCRA"), Comprehensive Environmental Response, Compensation and Liability Act as
amended ("CERCLA"), Occupational Safety and Health Act ("OSHA"), and any other
applicable local, state and federal laws, codes, ordinances and regulations as they pertain to the
operation and maintenance of the Water Supply System as set forth in this Agreement. The
Operator shall pay all regulatory fines and penalties, without limitation, assessed against the
City and/or the Operator for non-compliance resulting from the negligence, willful misconduct
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or breach of this Agreement by Operator in connection with Services required to be performed
by the Operator as defined in the Agreement. The preceding sentence shall survive the
expiration or termination of this Agreement.
(b)
The Operator shall comply with and shall satisfy, all regulatory requirements
pertaining to the above including, but not limited to, public notification in the event of non-
compliance with drinking water standards and the Operator shall pay all costs or fees associated
with same.
(c)
The Operator shall comply with all applicable State, federal and local laws,
regulations and ordinances including, without limitation, all environmental laws and regulations
as they apply to the operation and maintenance of the Water Supply System and will comply
with all Permits issued for or with respect to the Water Supply System as set forth in the
Agreement. The Operator shall maintain existing Permits for the Water Supply System (currently
held by the City) and will pay all costs associated therewith, including annual fees. In the event
that, during the Term of this Agreement, any existing Permit must be renewed, or additional
Permits are required, the Operator shall be responsible for completing all necessary applications,
including completing required application forms, supplying required data, and paying of required
fees for such Permits or Permit renewals. The Operator shall not be required to undertake system
modeling or engineering studies in connection with such Permits. All additional and renewed
Permits shall be in the name of the City, as the permittee. The costs associated with obtaining
either additional Permits not currently required or substantially changed Permits due to
significant regulatory changes necessary to continue to operate the Water Supply System shall be
treated as a Pass-through Charge to the City. The Operator must notify the City of such
circumstances no less than 120 days prior to such a Permit or renewal being due.
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( d)
On and after the Commencement Date, the Operator shall operate and maintain
the Water Supply System in compliance with all applicable laws and Permits as is required by
the terms and provisions of this Agreement. The Operator shall indemnify and hold the City
harmless from any fines or penalties assessed by a regulatory agency for any and all violations of
applicable laws, regulations or Permits resulting from breach of this Agreement, negligence or
willful misconduct on the part of the Operator, its agents, servants or employees during the Term
of the Agreement that are not a result of a lack of Capital Improvements required by the Water
Supply System in order to maintain compliance.
( e)
Notwithstanding the provisions of paragraph ( d), above, to the contrary, the
Operator shall not be responsible for any fines or penalties that do not fall under the terms for
operation, management, maintenance and Repair of the Water Supply System set forth in this
Agreement. These include but are not limited to Capital Improvements required for regulatory
compliance.
(f)
All Repairs to the Water Supply System shall be made by the Operator at its cost
and expense, subject to the other terms and conditions of the Agreement, in accordance with
existing City ordinances for work in the City including, but not limited to, securing all necessary
road opening permits. The Operator shall be exempt from paying the City fees for road opening
permits to the extent permitted by law; if any such fees are assessed, they shall be Pass-Through
Charges. The Operator shall be responsible for all New Jersey Department of Transportation
("NJDOT") and/or Union County ("Union") fees and permits associated with any Repair activity
affecting NJDOT or County roadways, provided that the same shall be considered Repair costs
to be charged against the Annual Maintenance Cap without markup.
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Section 6.26. Safety and Security.
(a)
The Operator shall provide for and maintain security and safety for all Water
Supply System's assets contemplated under this Agreement in accordance with Schedule 2.
(b)
The Operator shall conduct all Services in compliance with applicable health and
safety regulations including, but not limited to, OSHA, general industry regulations including
requirements for confined space entry, respiratory protection and hazard communication; EPA
regulations on emergency planning and notification under CERCLA, 40 CFR Part 355; and
EPA regulations on hazardous chemical reporting and community right-to-know, 40 CFR Part
370.
(c)
Nothing in this Section 6.26 shall require the Operator to make Capital
Improvements to ensure compliance with this Section.
Section 6.27. User Complaints.
(a)
The Operator shall contain and control noise and odors emitted from the Water
System and shall take an active role in the community to improve the local residents'
understanding of the operation of the System.
(b)
If the Operator or the City receives any complaints in relation to the level of
odors or noise generated by the Water Supply System, or any other matters affecting the health,
safety and welfare of the System or the community, the Party receiving the complaint shall notify
the other Party immediately. The Operator shall immediately investigate the complaint and,
within three (3) calendar days of the time of the notification of the complaint, prepare and
provide to the City for approval a proposed action plan to remedy the complaint. Upon the City's
approval of the Operator's action plan, as may be modified by the City, the Operator shall
implement the action plan within a time period to be determined by the City.
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Section 6.28. Development and Redevelopment. During the Term of this Agreement
the Operator shall be required to provide support and information to the City and the City's
Planning and Zoning Boards with respect development and redevelopment within the City and
the potential impacts of such development and redevelopment upon the System.
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ARTICLE VII. CAPITAL IMPROVEMENTS
Section 7.1. City Responsibilities. Unless otherwise agreed to by the City and the
Operator, the City shall be responsible for the design, construction, implementation and
financing of Capital Improvements to the System. Further, the City, in conjunction with
Operator, shall develop a long-term Capital Improvements recommendation within the first 12
months of Commencement Date in accordance with Schedule 2.
The City shall notify the Operator in writing within thirty (30) days after the end of the
City's fiscal year of the projects and expenditures it has undertaken to fulfill the requirements of
this Section concerning design, construction, implementation and financing of Capital
Improvements to the System. The City shall complete all Capital Improvements necessary to
maintain compliance with applicable federal, State or local laws and as otherwise set forth in this
Agreement. In the event that the City does not approve or adequately fund a Capital
Improvement, recommended by the Operator as necessary to achieve environmental compliance
or required by any regulatory body, the City shall be responsible for any fines, penalties,
regulatory actions or increased operating costs arising out of such failure to implement a Capital
Improvement. In such instance, Operator shall notify the City and provide the City with a written
explanation of why the City should be responsible for the cost of such fines and/or civil or
criminal penalties, and for contesting such fines and/or civil or criminal penalties resulting from
the City's failure to fund the Capital Improvement. If a dispute arises under this Section, then the
Parties shall comply with the dispute resolution procedure set forth under Section 10.24 of this
Agreement.
Section 7 .2. Operator Responsibilities.
(a)
The Operator shall be required to assist the City in the implementation of all
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Capital Improvements to the Water Supply System. The Operator shall also be responsible for all
Repairs to the System as specifically identified in Schedule 2. The Operator, in consultation with
the City, shall develop a long-term Capital Improvement Plan in accordance with the time frames
set forth in Schedule 2.
(b)
In the event the Operator deems an element of work to be a Capital
Improvement, the Operator shall (i) immediately notify the City or its consulting engineer of the
need to perform such work; and (ii) provide the City with an explanation of the reasons why
such work is necessary, and (iii) indicate whether the Capital Improvement is included in the
Capital Improvement Plan. If the Capital Improvement is not included in the Capital
Improvement Plan, the Operator shall provide an explanation of the reasons why such
improvement was not included. The City shall determine if and how the Capital Improvement
will be implemented, subject to Section 7.3.3.
Section 7.3. Emergencies or Improvements Required by Law. In the event that a
Capital Improvement (i) is required in order to continue to provide water service to the residents
of the City, (ii) is required to be made to the Water Supply System in order to comply with
applicable federal, State or local law including Change in Law, or (iii) if the failure to make a
Capital Improvement will jeopardize the health and safety of the residents of the City or the
public welfare, or materially and adversely affect the ability of the Operator to perform its
obligations under this Agreement, the City shall be obligated to implement such Capital
Improvement as soon as practicable under the circumstances. The Operator shall be required to
provide the City with a detailed report documenting the applicable federal, State or local law
that necessitates
any such Capital Improvement. The Operator's report shall detail the
evaluation of all feasible alternatives that could be implemented to eliminate the need for, or
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reduce the cost of, such Capital Improvement.
ARTICLE VIII. FINANCIAL TERMS.
Section 8.1. Reserved
Section 8.2. Reserved
Section 8.3. Reserved
Section 8.4. Annual Service Fee. On the first day of the month next succeeding the
Commencement Date, and on the first day of each month thereafter during the Term of this
Agreement, the City, in accordance with Schedule 3, shall pay the Operator via wire transfer one
twelfth of the Fixed Management Fee calculated in accordance with Schedule 5 of this
Agreement. The Annual Service Fee is described in and subject to the provisions of Schedule 5.
Section 8.5. Establishment and Collection of Rates, Fees and Charges.
(a)
The City retains responsibility for setting all rates and charges to customers. The
Operator shall implement revised water and sewer rates and charges on a date specified by the
City within thirty (30) days after notification from the City, except for structural rate changes,
which shall be implemented within sixty (60) days after notification from the City. The City shall
continue to review and implement where feasible rate policies that will help to improve customer
metering, billing and collections.
(b)
Effective on the Commencement Date, and as of each anniversary thereafter
throughout the Term of this Agreement, the City agrees, to the extent permitted by law, and in
accordance with Schedule 5, to increase its rates for the supply of water to customers of the
Water Supply System to at least the rates required to cover the Annual Service Fee to be paid to
the Operator for Services provided.
( c)
The Operator shall be responsible for the collection of all connection and tapping
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fees in accordance with Schedule 5 and Schedule 3, including Section 3 .1 of Schedule 3, of this
Agreement.
(d)
The City shall be the sole authority in determining and establishing the connection
and tapping fees to be charged to new customers of the Water Supply System connecting with
the System. All such connection fees shall be established in accordance with the provisions of
State law including, but not limited to, N.J.S.A. 40A:31-11, and all other charges shall be
established pursuant to municipal ordinance. All such connection and tapping fees shall be
deposited in the City-Controlled Account within forty-eight ( 48) hours, and shall remain the
property of the City, including those connection fees paid after the Commencement Date of this
Agreement.
Section 8.6. Expenses. The Operator shall pay all expenses required for the normal
operation, management, maintenance, water and sewer billing, and Repair of the Water Supply
System, including those Repairs set forth in Schedule 2 hereof in accordance with the terms of
this Agreement.
Section 8.7. Customer Service.
Section 8.7.1. Water Service to City. The Operator shall, at no cost or expense to the
City (other than payment of the Annual Service Fee), provide during the term of this Agreement
water service as provided in this Agreement to the Municipal Building and all other City offices
and public and quasi-public facilities, including, but not limited to, the City police and fire
departments listed on Schedule 3 of this Agreement. The City shall cooperate with the Operator
in attempting to install meters at all such municipal and quasi-municipal properties. A list of all
such municipal and quasi-municipal properties is set forth in Section 3.5 of Schedule 3 of this
Agreement.
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ARTICLE IX. DEFAULT AND TERMINATION.
Section 9.1 General Provisions. This Agreement may be terminated prior to its stated
expiration date by the City or the Operator on the terms and conditions set forth in this Article.
The rights of the City and the Operator to terminate this Agreement shall be strictly construed in
accordance with the provisions of this Article IX.
Section 9.2 Termination for Cause by the City.
(a) Upon the happening of any of the following events of default by the Operator, the
City shall have the right to terminate this Agreement and/or to pursue a cause of action for actual
damages, all as more fully described herein:
1.
The persistent and repeated failure by the Operator to provide the Services
in accordance with the terms and provisions of this Agreement, and/or
applicable laws, rules and regulations;
2.
The failure of the Operator to perform any of its material covenants,
agreements, obligations and/or duties created by this Agreement;
3.
If any representation and/or warranty which is not capable of cure is made
by the Operator that shall prove to be false and/or misleading in any
material respect and the legality of this Agreement or the ability of the
Operator to carry out its duties and obligations under this Agreement is
thereby materially and adversely affected;
4.
The commencement of any bankruptcy, insolvency, liquidation and/or
similar proceeding against the Operator, or its Project Guarantor and
which materially and adversely affects the Operator's ability to perform its
duties or obligations under this Agreement; the consent by the Operator, or
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its parent, to the appointment of and/or taking possession by a receiver,
liquidator, assignee, trustee and/or custodian of the Operator, or the
Project Guarantor and/or any substantial part of their respective assets
which materially and adversely affects the Operator's ability to perform its
duties or obligations under this Agreement; the making by the Operator,
and/or its Project Guarantor of any assignment for the benefit of creditors
which materially and adversely affects the Operator's ability to perform its
duties or obligations under this Agreement; and/or the failure by the
Operator, or its Project Guarantor to generally pay its debts as they come
due;or
5.
The failure by the Operator to make any payment required to be made by
the Operator pursuant to the terms of this Agreement.
(b) Upon the happening of any event described in clause (1 ), (2) or (5) of paragraph (a)
of this Section 9.2, the City shall provide written notice to the Operator setting forth in detail the
alleged failure and/or deficiency of the Operator. The Operator shall have thirty (30) days after
receipt of such written notice from the City to cure and/or correct such failure and/or deficiency
or to deliver to the City a written notice alleging that no such event described in clause (1) or (2)
or (5) of subsection (a) of this Section 9.2 has occurred and setting forth in detail its reasoning as
to why no such event has occurred. In the event that the Operator does not cure and/or correct
such failure and/or deficiency within said thirty (30) day period or deliver to the City the written
notice described in the preceding sentence within said thirty (30) day period, the City shall
provide the Operator with a second written notice affording the Operator an additional thirty (30)
days to cure and/or correct such failure and/or deficiency, or if Operator has commenced such
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cure or correction, such reasonable additional time as is necessary for Operator to cure and/or
correct such failure and/or deficiency. If the Operator fails to cure and/or correct the failure
and/or deficiency within such second thirty (30) day period or such reasonable additional time
period, the City shall be entitled to seek specific performance before a court of competent
jurisdiction.
(c)
Upon the happening of any event described in clause (3) or (4) of paragraph (a)
of this Section 9.2, the City shall have the right to terminate this Agreement upon thirty (30) days
prior written notice to the Operator.
( d)
If the City terminates this Agreement in accordance with the provisions of this
Section 9.2, the City shall be obligated to pay to the Operator, the sum determined in accordance
with the following formula:
Where:
(B)-(C + D)
B = Any outstanding Pass-through Charge required to be charged
to the City, the unamortized principal portion of the Capital
Improvements that the Operator has completed to the extent it has
not been previously reimbursed, and any earned and unpaid
portion of the Annual Service Fee.
Where: C = The amount, if any, necessary to enable the City to restore the Water
Where:
Supply System so that it is operational by the City without the
Operator and/or the additional amount necessary to enable the
City to replace the Operator.
D - Any outstanding Pass-through Credit required to be credited to
the City.
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The sum to be paid by the City to the Operator in accordance with the preceding formula
shall be paid within one hundred eighty (180) days after (i) the date of the negotiated settlement
between the City and the Operator, or (ii) a final determination by a court of competent
jurisdiction, as the case may be.
( e)
Notwithstanding anything in this Agreement to the contrary, the City shall be
entitled to pursue a cause of action against the Operator for any and all actual damages suffered
by the City as a result of any default by the Operator, plus any and all reasonable attorneys' fees,
litigation costs, collection costs or other expenses incurred by the City. The term damages as
used in this Section shall include, without limitation, any and all costs to the City of (i) restoring
the Water Supply System to the condition it would have been in if the Operator had operated,
maintained, managed and Repaired it in accordance with the requirements of this Agreement,
(ii) procuring a replacement operator for the Water Supply System, including the expenses of
the City incurred in connection with any procurement process and any amount which the City is
required to pay any such replacement operator as a management fee which is in excess of the
amounts payable by the City to the Operator under this Agreement for comparable services, and
(iii) any fines and penalties imposed on the City as a result of the Operator's failure to perform
its obligations under this Agreement. Notwithstanding anything in this Agreement to the
contrary, the Operator shall not be responsible to the City for any consequential or punitive
damages arising from breach of this Agreement.
(f) The Parties agree that with respect to this Section 9.2, the Agreement is not an
executory contract subject to assumption as defined by the Bankruptcy Code. The Parties further
specifically acknowledge that this provision is intended to "bankruptcy-proof the Agreement,
that this provision is critical to the Agreement, and was "bargained for" and part of the
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consideration for the Agreement.
To the extent a court of competent jurisdiction holds this Agreement to be an executory
contract subject to assumption by the Operator as a debtor pursuant to the Bankruptcy Code, the
Operator and the City specifically acknowledge that this Agreement falls within the provisions of
11 U.S.C. Section 365{c)(i)(a) to the extent that the trustee may not assume or assign it without
the consent of the City in that "applicable law excuses the party, other than the debtor, to such
contract or lease from accepting performance from or rendering performance to an entity other
than the debtor or the debtor-in-possession, whether or not such contract or lease prohibits or
restricts assignment of rights or delegation of duties."
Alternatively, to the extent a court of competent jurisdiction holds that the Agreement is
an executory contract subject to assumption and not within the exception of 11 U.S.C. Section
365(c)(i)(a), the City and Operator specifically agree to the following:
1. The Operator or the debtor-in-possession agrees to perform all obligations
under the Agreement, including curing all defaults and making ongoing
payments, or, in the event it chooses not to do so, will move as soon as
practicable to reject the executory contract under applicable bankruptcy law.
2. Since the Operator is specialized in the provision of Services and therefore is
in a special legal position and has certain unique legal attributes, no other
entity can provide "adequate assurance of future performance" as that term is
defined under the Bankruptcy Code and therefore the Agreement cannot be
assigned.
Section 9.3 Termination for Cause by the Operator.
(a) Upon the happening of any of the following events of default by the City, the
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Operator shall have the right to tenninate this Agreement or pursue a cause of action, for actual
damages, all as described herein:
1.
The failure of the City to perform any of its material covenants, agreements,
obligations and/or duties created by this Agreement;
2.
If any representation and/or warranty which is not capable of cure is made by
the City that shall prove to be false and/or misleading in any material respect
and the legality of this Agreement or the ability of the City to carry out its
duties and obligations under this Agreement is thereby materially and
adversely affected;
3. The commencement of any bankruptcy, insolvency, liquidation and/or similar
proceeding against the City which materially and adversely affects the City's
ability to perform its duties or obligations under this Agreement; the consent
by the City to the appointment of and/or taking possession by a receiver,
liquidator, assignee, trustee and/or custodian of the City, and/or any
substantial part of its assets which materially and adversely affects the City's
ability to perform its duties or obligations under this Agreement; the making
by the City of any assignment for the benefit of creditors which materially and
adversely affects the City's ability to perform its duties or obligations under
this Agreement; and/or the failure by the City to generally pay its debts as
they come due.
4. The failure of the City to make timely payments as set forth in this Agreement
or, in the event of a dispute, to place disputed funds into an escrow account
pursuant to Section 10.18.
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(b)
Upon the happening of any event described in paragraph (a) of this Section 9.3,
the Operator shall provide written notice to the City setting forth in detail the alleged failure
and/or deficiency of the City. The City shall have thirty (30) days after receipt of such written
notice from the Operator to cure and/or correct such failure and/or deficiency. In the event that
the City does not cure and/or correct such failure and/or deficiency within said thirty (30) day
period, the Operator shall have the right to terminate this Agreement, or, except with regard to
payment obligations, if City has commenced such cure or correction, such reasonable additional
time as is necessary for City to cure and/or correct such failure and/or deficiency; provided,
however, the Operator shall not terminate this Agreement based on the City's alleged failure to
make Capital Improvements pursuant to Section 7 .1 of this Agreement until such dispute is
resolved pursuant to Section 10.24 of this Agreement, and the City shall not be required to post a
bond arising out of failure to make Capital Improvements pursuant to Section of this Agreement.
(c)
Upon the happening of any event described in clause (2) or (3) of paragraph (a)
of this Section 9.3, the Operator shall have the right to terminate this Agreement upon 30 days
prior written notice to the City.
( d)
If the Operator terminates this Agreement in accordance with the provisions of
this Section 9.3, the City shall be obligated to pay to the Operator, the sum determined in
accordance with the following formula:
Where:
(B) - (C)
B = Any outstanding Pass-through Charge permitted pursuant to
the Agreement, the unamortized principal portion of the Capital
Improvements that the Operator has completed to the extent it has
not been previously reimbursed, any earned and unpaid portion of
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Where:
the Annual Service Fee, and Operator's reasonable demobilization
costs which shall not exceed 1/12 of the Annual Service Fee.
C = Any outstanding Pass-through Credit required to be credited
to the City pursuant to the Agreement.
The sum to be paid by the City to the Operator in accordance with the preceding formula
shall be paid within one-hundred eighty (180) days of the termination date, provided the
Operator has provided a detailed breakdown of the information utilized to complete the above
referenced formula to the City, or a final determination has been rendered by a court of
competent jurisdiction, as the case may be.
( e)
The Parties agree that with respect to this Section, the Agreement is not an
executory contract subject to assumption as defined by the Bankruptcy Code. The Parties further
specifically acknowledge that this provision is intended to "bankruptcy-proof' the Agreement
and that this provision is critical to the Agreement and was "bargained for" and part of the
consideration for the Agreement.
To the extent a court of competent jurisdiction holds this Agreement to be an executory
contract subject to assumption by the City as a debtor pursuant to the Bankruptcy Code, the City
and Operator specifically acknowledge that this Agreement falls within the provisions of 11
U.S.C. Section 365(c)(i)(a) to the extent that the trustee may not assume or assign it without the
consent of the Operator in that "applicable law excuses the party, other than the debtor, to such
contract or lease from accepting performance from or rendering performance to an entity other
than the debtor or the debtor-in-possession, whether or not such contract or lease prohibits or
...
restricts assignment of rights or delegation of duties."
Alternatively, to the extent a court of competent jurisdiction holds that the Agreement is
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an executory contract subject to assumption and not within the exception of 11 U.S.C. Section
365(c)(i)(a), the City and Operator specifically agree to the following:
1. The City or the debtor-in possession agrees to perform all obligations under
the Agreement, including curing all defaults and making ongoing payments,
or, in the event it chooses not to do so, will move as soon as practicable to
reject the executory contract under applicable bankruptcy law.
2. Since the City is a public body corporate and politic of the State of New
Jersey and therefore is in a special legal position and has certain unique legal
attributes, no other entity can provide "adequate assurance of future
performance" as that term is defined under the Bankruptcy Code and therefore
the Agreement cannot be assigned.
Section 9.4 Termination for Unenforceability of Agreement. If any court, agency
and/or other entity with competent jurisdiction shall finally determine that this Agreement is
unenforceable and/or prohibited by law, or, if for any reason the City Council is legally
prohibited (such prohibition shall be supported by a written legal opinion) from enacting any
ordinance establishing the rates for the supply of water service to the customers of the Water
Supply System that are required to be established by the City in accordance with the Agreement
hereof, or any such ordinance so enacted shall fail to become legally effective or shall no longer
be legally effective, then the City and the Operator shall each have the right to terminate this
Agreement, upon ninety (90) days' prior written notice to the other Party, provided that the City
shall be obligated to make a payment to the Operator, as determined pursuant to Section 9.3(d).
Section 9.5. Optional Termination.
Either Party may, following the tenth (10th)
anniversary of the Commencement Date, at its sole option and discretion, terminate this
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Agreement, provided said Party provides prior written notice to the other Party of its intent to
terminate the Agreement at least twelve (12) months before the effective date of termination. If
the City exercises its right to optional termination pursuant to this Section 9.5, the City shall be
obligated to pay to the Operator the amounts set forth in Section 9.3(d). If the Operator exercises
its right to optional termination pursuant to this Section 9.5, the City shall be obligated to pay the
Operator the sum determined in accordance with the following formula:
Where:
Where:
(B) - (C)
B = Any outstanding Pass-through Charge permitted pursuant to
the Agreement, the unamortized principal portion of the Capital
Improvements that the Operator has completed to the extent it has
not been previously reimbursed, any earned and unpaid portion of
the Annual Service Fee.
C = Any outstanding Pass-through Credit required to be credited
to the City pursuant to the Agreement
The Operator shall be responsible to pay the City's reasonable costs of reprocurement and
replacement operator, such combined costs not to exceed 1/12 of the then current Annual
Service Fee.
The sum to be paid by the City or the Operator, as applicable, in accordance with the
preceding formula shall be paid within one-hundred eighty (180) days of the termination date,
provided the Operator has provided a detailed breakdown of the information utilized to
complete the above referenced formula to the City, or a final determination has been rendered
by a court of competent jurisdiction, as the case may be.
Section 9.6.
Operator's Assistance Post Termination.
After the termination or
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expiration of this Agreement for any reason, the Operator shall assist the City with the orderly
transition of duties to the City or its agent. Operator shall, if requested by the City, continue to
provide the Services under this Agreement for up to ninety (90) days beyond the termination or
expiration of this Agreement and shall continue to receive its then current Annual Service Fee on
pro-rata basis for providing the Services.
ARTICLE X. MISCELLANEOUS.
Section 10.1. Insurance.
(a)
The Operator shall not commence performance of the Services under this
Agreement until it has provided evidence of insurance of the types and in such amounts as is
satisfactory to the City and as set forth herein, and such insurance has been approved by the City,
nor shall the Operator allow any subcontractor to work on its subcontract until all similar
insurance required of the subcontractor has been so obtained and approved. The Operator shall
maintain such insurance in full force and effect for the duration of this Agreement. The City
reserves the right to review the risk exposures every five (5) years and to propose reasonable
increases in Operator's insurance limits during the Term of this Agreement; provided, however,
Operator's additional costs therefor shall be treated as Pass-Through Costs pursuant to this
Agreement.
(b)
The insurance policies provided by the Operator at its sole expense and more
particularly described hereafter shall specifically designate the City as an additional insured
(except for Workers' Compensation) with respect to the operation, management, maintenance
and Repair of the Water Supply System.
( c)
The Operator shall be solely responsible for all mJunes to persons or for
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damages to property of third parties occurring on account of and during performance of the
Services hereunder, attributable to the negligence of the Operator, its employees, subcontractors,
or others acting on behalf of the Operator, and shall defend, indemnify and save harmless the
City, its elected and appointed officials, officers, members, employees, consultants, attorneys
and agents from liability as provided in this Agreement.
In the event the Operator is self-insured, it must provide satisfactory evidence of its
ability to meet the requirements of this section and demonstrate evidence of re-insurance. The
Operator shall be responsible for payment of all uninsured deductibles or retentions applicable
under the required insurance Certificates, which may be provided in electronic form, from the
insurance carrier(s), stating the limits ofliability and the expiration date for each policy and type
of coverage shall be filed with the City before Services commence. Certificates evidencing the
renewal or replacement of insurance during the term of the agreement shall be furnished to the
City on or before the date of such renewal or replacement. Such certificates shall specifically
refer to this Agreement and article, and the following paragraphs in accordance with which the
insurance is being furnished, and state that such insurance is as required by such paragraphs of
this Agreement.
(d)
Certificates of the required insurance, listed below, shall be submitted to the City
as evidence covering all of the types of coverages required in this Agreement. Such coverages
shall be written by insurance companies possessing an A.M. Best Company rating of at least A-
VII, and allowed to do business in the State of New Jersey.
( e)
All insurance policies herein required of the Operator shall be written by a
company duly authorized and licensed to do business in the State and be executed by an agent
therein duly licensed as an agent in the State.
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(f)
Insurance shall include the type of insurance specified below in not less than the
amounts stated and whatever other insurance may be necessary to provide complete protection
to the City and the Operator against liability, damage and accident of every kind. Neither
approval by the City nor a failure to disapprove insurance furnished by an Operator shall release
the Operator from full responsibility for liability, damages, and accidents as set forth herein.
(g)
Except as otherwise agreed to in writing by the City, the Operator shall purchase
and maintain during the life of this Agreement the following types of insurance in an amount, for
each policy, not less than the amounts stated:
1.
Workers' Compensation and Employer's Liability Insurance in accordance with the
statutory requirements of the State of New Jersey and all other applicable laws and regulations
which may apply.
In the case of any subcontracted work, the Operator shall require the
subcontractor to provide statutory Workers' Compensation Insurance for subcontractor's
employees. The Operator shall purchase and maintain during the life of this Agreement
Employer's Liability Insurance with a limit of $1,000,000 each accident, $1,000,000 each
employee and $1,000,000 policy limit for disease from an insurance company allowed to write
such insurance in all states where the Operator will have employees located in the performance
of this Agreement, and the Operator shall require each of its subcontractors to maintain
Employer's Liability Insurance on its employees in the same manner.
2.
Commercial General Liability Insurance
The Operator shall maintain during the life of this Agreement such Commercial General
Liability Insurance, or its equivalent, as shall protect it against claims for damages resulting from
(a) bodily injury, including wrongful death, and (b) property damage, including loss of use,
which may arise from operations under this Agreement whether such operations be conducted by
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the Operator or by any subcontractor or anyone directly or indirectly employed by either of them.
This insurance shall be written on an occurrence form, and shall include coverage for all of the
following:
(i)
Liability arising from premises and operations;
(ii)
Liability arising from the actions of independent contractors;
(iii)
Liability arising from products and completed operations, with such
coverage to be maintained for three (3) years after termination of the
Agreement; and
(iv)
Contractual liability including protection for bodily injury and property
damage claims arising out of liability assumed under this Agreement.
(v)
Deletion of any collapse or underground hazard exclusions or limitations.
The minimum acceptable limits of liability to be provided by such Commercial General
Liability Insurance shall be as follows:
$1,000,000 Each Occurrence
$2,000,000 General Aggregate
$2,000,000 Products and Completed Operations Aggregate
$1,000,000 Personal and Advertising Injury
$300,000 Fire Damage Liability
$10,000 Medical Expense
3.
Business Automobile Liability Insurance
The Operator shall purchase and maintain during the life of this Agreement such Business
Automobile Liability Insurance as shall protect it against claims for damages resulting from 1)
bodily injury, including wrongful death, and 2) property damage, including loss of use, which
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may arise from the operations of any owned, hired or non-owned automobiles used by or for the
Operator in any capacity in connection with the performance of this Agreement. The minimum
acceptable limits of liability to be provided by such Automobile Liability Insurance shall be as
follows:
Bodily Injury Limits and Property Damage - $1,000,000 each occurrence/annual aggregate.
Statutory Uninsured and Underinsured Motorists, and Personal Injury Protection (PIP)
coverages.
4.
Excess Umbrella Liability in an amount not less than $25,000,000. Operator may
meet this requirement through a combination of primary and excess liability limits totaling
$25,000,000 per accident/occurrence and $25,000,000 aggregate.
Evidence of Umbrella
Liability insurance must include a list of underlying insurance policies or coverages.
5.
Environmental (Pollution) Legal Liability insurance at limits of $5,000,000 each
pollution incident and $5,000,000 annual aggregate covering bodily injury, property damage and
on and off site clean-up (remediation) expenses, for injuries or damages arising out of Operator's
work for the City. If applicable, coverage should extend to the transportation of hazardous
materials from the City facility or work site to the final disposal site. The City shall be included
as Additional Insured, and no cross liability restrictions shall apply.
6.
If professional design or engineering services are to
be performed,
Professional/Errors and Omissions Liability insurance at limits of $5,000,000 each claim and
$5,000,000 annual aggregate.
7.
Employee Dishonesty at limits of at least $1 Million.
If any liability insurance purchased by the Operator has been issued on a "claims made"
basis, the Operator must comply with the following additional conditions:
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1. The Operator shall agree to provide certificates of insurance evidencing the above
coverages for a period of five (5) years after final payment for the Contract. Such
certificates shall evidence a retroactive date no later than the beginning of the
work under the Contract; or
ii. The Operator shall purchase an extended (minimum two years) reporting period
endorsement for each such "claims made" policy in force as of the date of final
acceptance and evidence the purchase of this extended reporting period
endorsement by means of a certificate of insurance or a copy of the endorsement
itself. Such certificate or copy of the endorsement shall evidence a retroactive
date no later than the beginning of the work under this Contract.
If at any time the Operator fails to maintain any of the foregoing policies, the Operator
shall, upon notice from the City, promptly obtain a new policy, submit the same to the City for
its approval and submit a Certificate thereof as hereinabove provided. Upon failure of the
Operator to furnish, deliver and maintain such insurance as above required, this Agreement, at
the election of the City, may be immediately suspended, discontinued or terminated. Failure of
the Operator to purchase and/or maintain any required insurance shall not relieve the Operator of
any liability under this Agreement.
The City and Operator hereby waive all rights against each other for damages caused by
fire or other perils, to the extent covered by real and personal property and equipment
breakdown insurance to be provided by the City, or any other property insurance secured by the
City or Operator, except such rights as they may have to the proceeds of such insurance.
Property and equipment breakdown policies shall provide for this waiver of subrogation by
endorsement or otherwise.
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Section 10.2. Indemnification
(a)
The Operator shall indemnify and hold harmless the City, its elected and
appointed officers, and its duly authorized agents, servants, consultants and employees from any
liability including, but not limited to, pollution damages, and also including liability to third
parties, for personal injury, including death, property damage or any other losses which are
caused by or arise from the negligence, willful misconduct, or breach of the
terms and
conditions of this Agreement, of the Operator or any subcontractor and/or agent selected by the
Operator.
(b)
The Operator shall indemnify and hold harmless the City, its elected and
appointed officers, and its duly authorized agents, servants, consultants and employees from any
liability including, but not limited to, pollution damages, and also including liability to third
parties, for personal injury, including death, property damage or any other losses which are
caused by or arise from the use and operation of vehicles and/or equipment used by the Operator,
owned or leased by the Operator or owned or leased by the City and used by the Operator, to the
extent arising from the negligence, willful misconduct, or breach of this Agreement by Operator.
For the avoidance of all doubt the Operator's liability under this Agreement shall be limited to
the amount of the Annual Service Fee for the then current year, in addition to the amounts that
may be covered by the insurance policies required to be obtained by the Operator.
( c)
The City, to the extent permitted by law, shall indemnify and hold harmless the
Operator, and its employees, officers, agents and consultants from any liability (including, but
not limited to liability to third parties) which is caused by or arise from City Fault, including for
acts or events to the extent not caused by Operator prior to Commencement Date. For the
avoidance of all doubt the City's liability under this Section 10.2 shall be limited to the amount
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of the then effective Annual Service Fee in addition to required insurance coverages.
Section 10.3. New Equipment. Any new equipment, other than replacement of vehicles
or other vehicles purchased by the Operator, installed as part of the Water Supply System by the
Operator during the term of this Agreement shall be owned by the City and shall remain a part of
the Water Supply System upon termination or expiration of this Agreement. Prior to making any
significant change to the Water Supply System or expenditures of its own for new equipment
(other than vehicles), the Operator will consult with the City.
Section 10.4. Enforcement. The failure on the part of any Party to enforce any provision
of this Agreement shall not be construed as a waiver of its right to enforce such provision in the
future.
Section 10.5. Assignment. This Agreement shall not be assigned in whole or in part by
any Party without the prior written consent of the other Party, which consent shall not be
unreasonably withheld, or unduly delayed. In the case of an assignment by the Operator, the
Operator shall only assign its rights and obligations under this Agreement to an entity of similar
capabilities and experience that meets the Technical and Financial Criteria. Any assignment by
the Operator, shall not relieve the Project Guarantor of its obligations under the Project
Guarantor Agreement and the Project Guarantor Agreement shall remain in effect for the
remainder of the Term of this Agreement unless the City accepts a substitute Project Guarantor
and provides a written release of the Project Guarantor's obligations.
Section 10.6. Affirmative Action. During the performance of this Agreement, the
Operator agrees that it shall comply with the requirements of N.J.S.A. 10:5-31 and N.J.A.C.
17:27-1 et seq. (Affirmative Action and Equal Opportunity) as set forth in Schedule 9 of this
Agreement.
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Section 10.7. Entire Agreement. This Agreement, the Schedules attached hereto and
any written clarification or modification executed by the Parties contain the entire agreement
between the Parties hereto relating to the operation, management, maintenance and Repair of the
Water Supply System and supersede all previous communications, representations, or
agreements. This Agreement may be modified only by written amendment signed by the Parties
hereto.
Section 10.8. Notices.
(a) All notices given pursuant to the terms of this Agreement shall be in writing and
delivered in person or transmitted by nationally recognized courier service providing proof of
delivery, or certified mail, return receipt requested, postage prepaid. Notices required to be given
to the Operator shall be addressed as follows:
SUEZ Water Environmental Services Inc.
461 From Road, Suite 400
Paramus, NJ 07652
Attention: President
And to
SUEZ Water Environmental Services Inc.
461 From Road, Suite 400
Paramus, NJ 07652
Attention: Legal Department
Notices required to be given to the City shall be addressed as follows:
Attn: Business Administrator
City of Rahway
1 City Hall Plaza
Rahway, NJ 07065
And to
Ryan J. Scerbo, Esq.
DeCotiis, FitzPatrick & Cole, LLP
500 Frank W. Burr Blvd.
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Teaneck, NJ 07666
(b)
The Operator shall issue all public notices associated with non-compliance with
regulatory requirements for drinking water standards, in a format acceptable to the City, and the
City shall provide all necessary support that the Operator may reasonably require.
Section 10.9. Application of Law. This Agreement shall be construed in accordance
with, and is subject to, all applicable laws, rules and regulations of the United States of America,
the State, any appropriate political subdivision(s), and any relevant regulatory or administrative
agency.
Section 10.10. Relationship. The relationship of the Operator to the City is that of
independent contractor and not one of employment. None of the employees or agents of the
Operator shall be considered employees of the City. For the purposes of all State, local and
federal laws and regulations, the Operator shall exercise primary management and operational
decision-making authority.
Section 10.11. Public Relations. The Operator shall develop, with the advice and
consent of the City, all communications, publicity and community relations programs in order to
keep the City and the Water Supply System's customers informed about the operation and
maintenance of the System. The Operator will deal in a professional manner with community
groups concerned with any aspect of the operation of the Water Supply System, including
scheduling of tours of the System, if and as requested. The Operator shall prepare written
summaries of all formal meetings with the City and/or community groups and provide the City
with a copy.
Section 10.12. Notice of Litigation. In the event the Operator or the City receives notice
of, or undertakes the defense or the prosecution of, any actions, claims, suits, administrative or
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arbitration proceedings or investigations in connection with the Water Supply System, the Party
receiving such notice or undertaking such prosecution shall give the other Party timely notice of
such proceedings and will inform the other Party in advance of all hearings regarding such
proceedings.
Section 10.13. Cost Substantiation. With respect to any costs and expenses incurred or
to be incurred by the Parties hereto in the performance of their obligations hereunder, all such
costs and expenses shall be reasonably documented and accompanied by a certificate, signed by
an authorized representative of the City or the Operator, as the case may be, stating the reason
for incurring the cost, the amount of the cost, including labor, materials and a fixed overhead, the
event or Section of this Agreement giving rise to the requesting Party's right to incur such cost,
and that such cost represents a competitive price for the service or materials (for services and
materials supplied by third-party vendors, the Operator shall comply with the requirements of
Schedule 15) supplied and any other information that is reasonably requested by the other Party
in order to assist in the evaluation and approval of the cost; provided, however, that such
amounts shall not include any contingency amounts.
A fixed overhead is to be applied to Pass-through Charges and to additional services that
the Operator may provide to the City pursuant to a contract amendment or other written
authorization, provided that (1) for Repairs or Capital Improvements in excess of or outside the
Annual Maintenance Cap, respectively, the rate shall be 15% on the first $100,000 of each item
and 12% on amounts in excess of $100,000 on a per item basis; (2) no additional profit or
overhead shall be charged by the Operator; and (3) no overhead shall be applied to increases
subsequent to Commencement Date in the rates charged by PSE&G for electricity or the rates
charged by Rahway Valley Sewer Authority ("RVSA") for Usage and Permit Fee or permit fees
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imposed by NJDOT or Union County in connection with Repairs. For any Pass-through Charges
that are subject to cost substantiation, the Operator shall follow the Agreed Procurement
Procedures set forth in Schedule 15 attached hereto and made a part hereof.
Section 10.14. Reserved.
Section 10.15. Hazardous Wastes. If, during the course of excavation work (or other
construction) necessary to make Repairs, or Capital Improvements to the Water Supply System,
hazardous waste materials or other Hazardous Substances are uncovered by the Operator, it shall
not be the obligation of the Operator to remove and dispose of such hazardous substances. The
Operator shall, however, take all of the necessary steps to protect the existing System from
contamination and to notify the appropriate agencies and the City and determine the necessary
steps to properly dispose of such hazardous waste. The Parties legally responsible shall pay all
costs for such removal.
Section 10.16. Unforeseen Events.
( a)
If an Unforeseen Event occurs, each Party shall be relieved of its responsibility to
perform to the extent necessitated by the Unforeseen Event and during the pendency thereof;
except that neither Party shall be relieved of its responsibility to satisfy any payment obligations.
The affected Party will notify the other promptly of the occurrence of such Unforeseen Event,
including the anticipated duration and effects of the Unforeseen Event, and will make all
reasonable efforts to alleviate or eliminate the effects of the Unforeseen Event.
(b)
The City shall be responsible for making Capital Improvements that are
necessitated by Unforeseen Events or a Change in Law.
The Operator and the City shall
determine what, if any, operation and maintenance cost savings or increases are generated from
any Capital Improvement and shall adjust the Fixed Management Fee appropriately via a
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contract amendment or other written authorization.
( c)
If an Unforeseen Event occurs that causes an adverse change in the operations of
the Water Supply System or increases in the operational costs, the Operator shall prepare a
proposal to be submitted to the City and the City's consulting engineer that describes the cause of
the changes, the extent of the changes, the anticipated duration of the changes, the cost impact
(increase or decrease) of the changes, and the duration of time that such anticipated cost
increases or decreases will be in effect. If the City approves the changes, such cost increases or
decreases will be Pass-through Charges or Pass-through Credits, as the case may be, and shall be
recovered through an increase or decrease in the Annual Service Fee in the following year (or
amortized as agreed to by the Parties). If the City does not approve the changes, the Parties will
use reasonable and good faith efforts to resolve the issue pursuant to Section 2.3 hereof. In the
event any such dispute is not resolved pursuant to Section 2.3, the Parties may take other actions
to resolve such dispute, including filing claims in a court of competent jurisdiction.
(d)
The City also may submit proposals to decrease the Annual Service Fee if an
Unforeseen Event occurs that causes a decrease in costs.
Section 10.17. System Regulations. The City shall maintain in effect, or cause to be
maintained in effect, and amend, or cause to be amended, as necessary from time to time, the
requirements, rules, regulations and ordinances which currently exist in regard to the Water
Supply System.
Section 10.18. Covenant to Continue Work. Without limiting either Party's rights
under Article IX or other provisions of this Agreement, during resolution of any dispute under
this Agreement, the Operator and the City shall each continue to perform all of their respective
obligations under this Agreement without interruption or delay. In the event any dispute arises
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under the Agreement relative to any payment obligations, the disputing Party shall deposit said
monies in an escrow account until resolution of the issue.
Section 10.19. Cooperation with Financing. The Parties agree to reasonably cooperate
in good faith with each other in connection with any financing or refinancing of financing
responsibilities of either Party with respect to the Water Supply System.
Section 10.20. City's Obligations.
(a)
It is understood that the City shall pay to the Operator the Annual Service Fee
through the revenues of the Water Supply System and other available revenues of the City, and
that the City shall take all reasonable and necessary steps to provide for and to authorize the
payment of all amounts due to the Operator from the City under this Agreement as the same
become due and payable.
(b)
In consideration of the Operator entering into this Agreement and to provide
funds for such purpose through financing or otherwise, the City agrees that the pledge set forth in
this Section and all related covenants and agreements in this Agreement are for the equal benefit,
protection and security of the Operator, any assignee of the rights of the Operator hereunder, and
any person lending money or providing credit in connection with any financing relating to the
Water Supply System.
Section 10.21. City Approvals. When it is provided in this Agreement that any matter is
subject to the approval or review of the City, except as to matters which are expressly stated to
be in the City's sole discretion, the City shall not unreasonably withhold or delay any such
approval or review. Any task that the City may request or require the Operator to perform or any
information or other material the City may request or require the Operator to provide shall be
reasonably requested or required.
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Section 10.22. Survivorship. Notwithstanding anything in this Agreement to the
contrary and not intending to limit the rights of the Parties, the Parties agree that (i) all claims for
breach of this Agreement will survive termination of this Agreement and the obligations of the
Project Guarantor, if any, with respect to those claims will survive termination of this
Agreement; and (ii) the indemnification provisions contained in Article X, Section 10.2 shall
survive termination of this Agreement.
Section 10.23 Severability. In the event that any material provision of this Agreement,
for any reason, shall be determined to be invalid, illegal, or unenforceable in any respect, the
Parties hereto shall negotiate in good faith and agree to such amendments to this Agreement or to
take such other actions as, to the maximum extent practicable in light of such determination,
shall implement and give effect to the intentions of the Parties as reflected herein, and the other
provisions of this Agreement, as so amended, shall remain in full force and effect.
Section 10.24. Dispute Resolution. In the event that a dispute arises among the Parties,
the disputing Party shall provide the other Party with written notice of the dispute and within
twenty (20) days after receipt of said notice, the receiving Party shall submit to the other a
written response. The notice and response shall include a statement of each Party's position and a
summary of the evidence and arguments supporting its position. Each Party shall designate a
high level executive or officer to work together in good faith to resolve the dispute; the name and
title of said executive or officer shall also be included in the notice and response. The executives
or officers shall meet at a mutually acceptable time and place within thirty (30) days of the date
of the disputing Party's notice and thereafter as they reasonably deem necessary to resolve the
dispute. If the executives or officers have not resolved the dispute through good faith efforts
within thirty (30) days after such initial meeting, then unless otherwise agreed, before resorting
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to the courts, the Parties shall try in good faith to resolve the dispute by mediation administered
by the American Arbitration Association ("AAA") under its Commercial Mediation Rules. All
costs attributed to mediation shall be borne equally by both Parties.
Absent mutual consent by both Parties, in the event that one of the Parties brings a
dispute immediately to court without first following the afore-mentioned dispute resolution
process, then the opposing Party shall be entitled to recover reasonable attorneys' fees and costs
from the Party initiating the litigation if either (a) the case is remanded and the Parties are
ordered to follow the dispute resolution process outlined herein or (b) the dispute is heard and
judgment is awarded in favor of the opposing Party.
All payments or funds that are the subject matter of a dispute between the Parties shall be
paid into an escrow account until such time as the dispute is fully resolved either through
mediation or litigation. During the course of any dispute between the Parties each Party must
comply with all terms and conditions of, and continue to perform all Services required under,
this Agreement.
The Parties consent to jurisdiction of any state or federal court located in Union County,
New Jersey.
Section 10.25. No Third Party Beneficiaries. This Agreement is made solely for the
benefit of the City and the Operator, their successors and assigns, and no other person shall have
any right, benefit or interest under or because of this Agreement, except as otherwise specifically
provided herein.
Section 10.26.
Counterparts.
This Agreement may be signed in any number of
counterparts, each of which is an original, and all of which taken together constitute one single
document.
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[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the Parties have hereunto set their hands and fixed their seals as of
the date first above written.
Attest:
Attest:
Name:
Title:
SUEZ WATER ENVIRONMENTAL
SERVICES INC.
By: ___________ _
Name:
Title:
2092081-1
78
IN WITNESS WHEREOF, the Parties have hereunto set their hands and fixed their seals as of
the date first above written.
Attest:
Name:
Title:
Attest:
Name: cArlilr ~
Title: /1---;;>'f- Se~~
CITY OF RAHWAY
By: ___________ _
Name:
Title:
SUEZ WATER ENVIRONMENTAL
SERVICES INC.
By:-~
Name: Dominique Demessence
Title: President
2092081-1
76
SUEZ May 5 2017
MANAGEMENT SERVICES AGREEMENT FOR THE
OPERATION, MANAGEMENT, MAINTENANCE AND REPAIR OF THE
CITY OF RAHW AY'S WATER SYSTEM
By and Between
City of Rahway & SUEZ Water Environmental Services Inc.
SCHEDULES
1- System Information
2-Best Management Practices for the Operation and Maintenance of the Potable Water System
3 -Billing and Collections
4 Computer Information Systems
5 -Rates, Fees and Charges
6 Staffing
7 -Permits
8 -Insurance
9 -Affirmative Action Requirements
10 - Asset Inventory
11 - Reserved.
12 - Reserved.
13 - Reserved
14 - Form of Annual O&M Plan
15 - Procurement Procedures
16 - Minimum Financial Criteria
17 - Minimum Technical Criteria
18 -NJDEP MOA Requirements
19 - Middlesex Water Agreement
20 - Performance and Payment Bonds.
21 - Project Guarantor Agreement
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SCHEDULE 1
SYSTEM INFORMATION
(See attached)
SCHEDULE 1
SYSTEM INFORMATION
The City of Rahway, New Jersey is located in the southeasterly edge of Union
County, of New Jersey. The 2010 Census population of the City is
approximately 27,346. The City provides water service to approximately 8,329
residential, commercial, and industrial customers within the City limits, which
comprises the City's water service area.
The City's Water Treatment Plant (WfP) is located in the northeasterly corner of
the City. It is a surface water treatment facility which draws water from the
Rahway River. The FIRM capacity of the WTP is 5.0 MGD (nominal). The City
also owns and operates four (4) storage tanks. One ground level 3 MG tank is
situated across the Rahway River from the WfP, one 0.5 MG water sphere at
the WfP, one 0.04 MGD underground chamber at the WfP, one 1.5 MG sphere
adjacent to the DPW yard in the southeasterly comer of the City.
In addition to the WTP, the City owns and operates the water distribution
system providing for the residential, commercial, industrial and frre protection
needs of the property owners. The water service area comprises about four
square miles.
In addition, approximately 94 miles of pipe and 780 frre
hydrants convey the primary source of water supply for fire protection in the
water system's service area.
Adjacent water service districts include:
■ New Jersey American Water Company
■ Middlesex Water Company
1. Well Field Description - All former wells are closed.
2. Water Allocation Permit
The City operates its System under Water Allocation Permit No. 5339 issued on
January 26, 2016. A complete listing of all current permit requirements is
provided in Water Allocation Permit No. 5339 which is attached to the
Agreement as Schedule 7.
3. Interconnections
The City has established interconnections with each of the following adjacent water service
districts:
■ New Jersey American Water Company; no contract, emergency usage only
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Middlesex Water Company-Take or pay minimum 0.2 MGD Contract, a copy of
which is attached to the Agreement as Schedule 19.
The City Council approved (3/9/15) a contract to construct an additional (new) 16"
Interconnection Pipeline from the Middlesex Water Company's 20" trunk line, at the intersection
of Jensen and West Lake Avenues, across the City (approximately 6,200 LF) and directly to the
WTP. The primary purpose for the new pipeline is for blending with the WTP processed water
to reduce the sodium chloride levels from the River during the winter season.
The
Interconnection Pipeline is anticipated to be completed in 2016. The contracted minimum 0.2
MGD 'Take or Pay' volume will remain.
4. WTP Description
The WTP, Facility ID TP001005, has a nominal peak finished water pumping capacity of 10
million gallons of water per day (MGD). The primary source of supply for the WTP is the
Rahway River as part of Water Allocation Permit #5339. Existing usage is conditioned upon the
Operator maintaining a minimum passing flow of 7.9 cubic feet per second (CFS) in the River.
The existing Allocation Permit limits are set at 7,000 gallons per minute (gpm) or 10.0 MGD
4. 1. General Plant Description
The City of Rahway water treatment facilities have evolved over many years in response to
changes in surface water quality in the Rahway River and water treatment requirements. In
1871, facilities were provided to pump water from the Rahway River into a small distribution
system located in the City. These pumps were originally housed in what is now referred to as the
"old pump station". In 1882, the City's first filtration system was placed into service. A major
expansion to the treatment works took place in the late 1920s which included the construction of:
• Raw water screening facilities
• Modifications to the "old pumping station"
• Rapid sand filters
• Chemical feed facilities
• Sedimentation Basin No. 1
The decant facilities were constructed in the mid-1970s. The most recent modifications consist
of the packed tower aeration and GAC treatment systems which were added in the early 1990s.
4.2. Clarification System (Coagulation. Flocculation & Clarification)
Raw water from the Rahway River is pumped to two (2) packed towers for the removal of
volatile organic contaminants (VOCs) present in the river supply. The aerated water from the
packed towers flows to three rapid mix chambers, each designed for 3.5 MGD. Coagulation
chemicals are added in each rapid mix chamber. The rapid mix chambers are designed to have
two chambers in continuous service with the third chamber as a standby. At a maximum plant
flowrate of 7 .0 MGD and two rapid mix chambers in service, the detention time is approximately
21 seconds.
With three chambers in service at a maximum plant flowrate of 7.0 MGD,
approximately 30 seconds of detention time is provided. The mixers are designed for a G of 500
sec·1• Each mixer is 3 HP and is equipped with a variable speed drive to modify the mixing
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intensity.
Coagulated water from the rapid mix chambers is conveyed to Sedimentation Basin No. 1
through a 30-inch diameter pipeline that splits into four (4) 24-inch diameter pipes before
entering the Basin. Sedimentation Basin No. 1 is equipped with mechanical paddle flocculators,
which were installed and placed into service in 1981. The flocculator compartment is separated
from the remaining portion of Basin No. 1 by a wooden baffle wall.
The volume of the
flocculator compartment is approximately 132,000 gallons.
The flocculated water then flows into Sedimentation Basin No. 1, which has a capacity of
700,000 gallons. Sedimentation Basin No. 1 has an operating water depth of approximately 16
feet and provides 144 minutes of detention at 7.0 MGD.
Discharge from Sedimentation Basin No. 1 flows by gravity to Sedimentation Basin No. 2. Basin
No. 2 measures 47 ft x 106 ft x 14 ft (deep) and has a capacity of approximately 410,000 gallons.
Sedimentation Basin No. 2 was part of the early treatment works of the facility and very little
information relative to the design of the structure is available. Following settling of the solids,
water is discharged by gravity to the rapid sand filters for further treatment.
The plant contains piping to allow by-pass of Sedimentation Basin No. 2 directly to the rapid
sand filters, when Basin No. 2 is out of service for cleaning.
Settled solids are removed
manually from both sedimentation basins. Each basin is reportedly cleaned once per year.
4.3. Filtration System
The treatment plant is equipped with six gravity filters each measuring 15 '-0" x 23 '-4"
(approximately 350 sf) and having a capacity of 1.0 MGD at a filtration rate of 2 gpm/sf. The
filters are equipped with Leopold clay tile underdrains. The gravity filters were modified in the
mid 1990s and consist of the following:
• 8 inches of graded gravel
• 12 inches of silica sand; effective size of 0.45 mm; uniformity coefficient of 1.4
• 20 inches of anthracite; effective size of 0.85 mm; uniformity coefficient of 1.3
As part of the improvements, the troughs were replaced and raised to an elevation of 54.07 in
order to allow for the installation of additional filter media. Individual turbidimeters were also
installed on the discharge of each filter.
The combined flow from the gravity filters is controlled by a rate of flow control valve which
consists of a Venturi tube with an integral butterfly valve.
Backwash water is delivered to each filter via the filter effluent header. There are no separate
backwash valves to deliver backwash water to each filter. To backwash a filter, all of the filter
effluent valves are closed with the exception of the filter to be backwashed.
Three filters are backwashed each day (at night). The backwash flowrate is 7.5 MGD, which
results in a surface loading rate of 14.9 gpm/sf. Each filter is backwashed for 6 minutes resulting
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in a spent filter backwash volume of 31,250 gallons per filter. Three filter washes produce a
total volume of approximately 93,750 gallons.
4.4. Decant System
The decant facility was constructed in the late 1970s. Prior to construction of this facility, spent
filter backwash was discharged to the Rahway River. The decant facilities provide treatment of
the spent filter backwash and decant is returned upstream of the flocculators. Settled sludge can
be discharged to the residuals holding pond or to Rahway Valley Sewerage Authority (RVSA).
The primary components of the decant facility are the decant tanks. There are two decant tanks
each 26 ft long by 26 ft wide. The tanks are equipped with conical bottoms. Each decant tank
has a maximum volume (from bottom of tank to top of tank wall) of approximately 52,000
gallons. The usable volume of each tank allowing 1 ft of freeboard is approximately 47,000
gallons. Decant is returned to the flocculators via decant pumps.
4.5. Water Quality
Turbidity is the relevant water quality parameter in terms of evaluating the clarification and
filtration systems. With respect to turbidity, plant staff take hourly turbidity readings of the raw
water, settled water ( discharge from Sedimentation Basin No. 1 ), top of filter (TOF) immediately
following Sedimentation Basin No.2, and combined filter effluent. HMM was provided with
hourly readings for each day for 12 months. As part of this evaluation, two days were selected
for each month (middle and end) and the data was summarized.
The data indicates that the sedimentation basins are providing up to 50% removal especially
when the raw water turbidity is above 5 NTU. However, the average turbidity removal within
the sedimentation basins is approximately 34%. In addition, there are conditions where the
settled water turbidity or influent turbidity to the filters is actually higher than the raw water
turbidity.
This condition was present on several occasions.
Such performance generally
indicates that coagulation is not optimized and could also be indicative of an upset condition
within the sedimentation process.
4.6. Residuals Handling System
Residuals generated at the existing Rahway WTP consist of spent filter backwash from the six
gravity filters, sludge generated from the annual manual cleaning of Sedimentation Basins 1 and
2, spent filter backwash from the eight GAC contactors, pressate from the belt filter presses and
sludge cake from the belt filter presses.
With the exception of the sludge cake, the above residuals are handled by the existing Decant
Facility. Recently a separate project was completed to direct the GAC residuals to the Decant
Facility. The Decant Facility contains two decant tanks each with a capacity of approximately
47,000 gallons, two clear water pumps each with a capacity of approximately 150 gpm, two
settled sludge pumps, and two sludge transfer pumps.
Spent Filter Backwash
Each evening, three filters are backwashed and each filter generates approximately 30,000
gallons of backwash waste. The backwash waste from three filters is directed to one of the two
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decant tanks where it settles for approximately six (6) hours and then decanted for approximately
five (5) hours. Spent filter backwash is directed to the Valve and Pumping Chamber, which is
part of the Decant Facility, and then is manually directed to one or both of the decant tanks by
opening and closing the influent valve on each tank. Settled sludge is pumped to the sewer every
2 to 3 months and the annual sewer discharge from the settled sludge from spent filter backwash
is approximately 90,000 gallons per year (six times per year at 15,000 gallons per discharge
event). Settled sludge can also be pumped to the existing Holding Pond via an exposed pipe.
When the temperature is high enough to prevent freezing, sludge is pumped to the Holding Pond.
Sedimentation Basin No. 1 Residuals
Sedimentation Basin No. 1 is manually cleaned in the late spring and the cleaning occurs for
approximately two days. Sludge from Sedimentation Basin No. 1 is directed to a manhole
(referred to as Manhole No. 3) and from there flows to the Valve and Pumping Chamber where it
is then pumped to the Holding Pond. During the cleaning of Sedimentation Basin No. 1, the
influent valves to the Decant Tanks are closed. The Holding Pond has sufficient capacity to
contain the volume of residuals generated from Sedimentation Basin No. 1 and has no spare
capacity.
Sedimentation Basin No. 2 Residuals
Sedimentation Basin No. 2 is manually cleaned in the late summer and cleaning occurs for
approximately two days. Sludge from Sedimentation Basin No. 2 is directed to Manhole No. 3
and from there flows to the Valve and Pumping Chamber and it is then pumped to the Holding
Pond. During the cleaning of Sedimentation Basin No. 2, the influent valves to the Decant
Tanks are closed. The Holding Pond has sufficient capacity to contain the volume of residuals
generated from Sedimentation Basin No. 2 and has no spare capacity.
GACWaste
The GAC contactors are backwashed approximately every 3 months and the waste is discharged
to a backwash tank located adjacent to the GAC facility. The backwash waste generated from a
single GAC vessel is approximately 30,000 gallons. The GAC backwash waste was historically
pumped to the sewer. Recently a project was completed to convey the GAC backwash to the
Decant Facility. Waste from one turbidimeter, two chlorine analyzers and one pH analyzer also
discharges to the backwash tank. SUEZ has installed a new pump discharge line that directs the
backwash and analyzer waste to the Decant Facility for settling/processing.
Belt Filter Press
The Rahway WTP contains one belt filter press that is used to dewater residuals from the holding
pond.
After the pond is filled with residuals from Sedimentation Basin No. I, the pond is
manually decanted using a mobile pump and the decant water is conveyed to the rapid mix tanks.
The sludge in the holding pond is then pumped to a sludge holding tank located adjacent to the
belt press. Sludge cake from the press is conveyed to a container and is then hauled to a landfill
for disposal. Pressate is returned to the empty decant tank where it is then pumped to the sewer.
The pressate flowrate is restricted to a maximum of 45 gpm and occurs for approximately 8 to 12
hours per day.
2156938-1
The connection to the sanitary sewer system is hydraulically restricted due to the configuration
and condition of the downstream sewer piping and the reported maximum flowrate is
approximately 45 gpm. Higher flowrates reportedly result in surcharging of the nearby sanitary
sewers.
4. 7. WTP Improvements
The City of Rahway is in the process of upgrading the treatment process within the WTP.
Proposed improvements to the treatment process include the construction of a new membrane
filtration System. The FIRM treated water capacity of the proposed membrane filtration system
will be 7.7 MOD.
The instrumentation and control system are also in the process of being upgraded to include the
installation of a WTP-wide fiber optic self-healing loop. The network loop will replace the
existing radio communication system. In addition, the existing servers will be upgraded to
provide additional redundancy. The project will also include the replacement of the residuals
pond liner with a new HDPE liner. This will allow for the continued use of the existing
dewatering facilities.
The project will also include a new sewer connection that will provide additional operational
flexibility.
Given that the WTP filter system is not yet complete, the Parties recognize that there will be a
need to modify and update this Schedule 1 to address the operating and maintenance
requirements of the new membrane filter system.
2156938-1
City Water Treatment Plant Facilities
2156938-1
Proposed Men1brane Treatment Plant
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5. Water Distribution and Storage System
Since the topography of the System service area ranges from about elevation 6 to about elevation
56 feet, the area is presently serviced by one pressure district. Major elements of the finished
water transmission system include:
■ Finished water pumping system at the WTP
■ 20-inch discharge main from the WTP
■ A 3 MG ground level storage tank which finished water pumps draw from
■ A 0.5 MG elevated storage tank in the WTP
■ A 1.5 MG elevated storage tank adjacent to the DPW yard
The water distribution system consists of about 94 miles of water mains, ranging in diameter
from 2 inches to 20 inches. The mains consist of unlined cast iron and Ductile Iron Cement
Lined Pipe (DICLP). All pipe installed after 2004 is required to be Class 54 DICLP.
2156938-1
SCHEDULE2
BEST MANAGEMENT PRACTICES FOR THE OPERATION AND MAINTENANCE
OF THE POTABLE WATER SYSTEM
2156938-1
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 1 General ...................................................................................................... 1-1
Section 2 Operation ................................................................................................... 2-1
2157407-1
2.1
General Provisions ........................................................................................................... 2-1
2.2
Analytical Services ........................................................................................................... 2-1
2.3
Permits..............................................................
.. ................................................... 2-2
2.4
Administrative Consent Orders / Memora
greement.. ..................................... 2-2
2.5
Equipment and Chemicals.................
.. .................................................. 2-2
2.6
............................................... 2-3
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30
Buildings and Grounds Se ·
Utilities ................................ ..
Planning..........
.. .
......................................... 2-3
................................ 2-3
......................... 2-3
, ............................................................. 2-4
...................................................... 2-4
............................................... 2-4
....................................................... 2-4
...................................................... 2-4
........................................................................ 2-5
........................................................................... 2-5
··'································································ .. ··············2·5
.................................................................................................... 2-5
................................................................................................ 2-5
Monitoring ............................................................................................... 2-5
tern Monitoring ........................................................................................ 2-5
ganese Deposits ......................................................................................... 2-5
ndling and Residuals Disposal. ......................................................................... 2-6
Treated Storage Tanks .................................................................................................... 2-6
Water System Pressure ................................................................................................... 2-7
Corrosion Prevention ....................................................................................................... 2-7
New Connections ............................................................................................................. 2-7
Cross Connection and Backflow Prevention .................................................................... 2-7
Water Quality Monitoring Program ................................................................................... 2-8
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
2.31
Public Education Program ............................................................................................... 2-8
2.32
Water Conservation Program ........................................................................................... 2-9
2.32.1
Leak detection/reporting .................................................................................................. 2-9
2.32.2
Annual Water Loss and Conservation Plan ................................................................... 2-1 O
2.33
Operator Training ........................................................................................................... 2-1 O
Section 3 Maintenance ............................................. .
....................................... 3-1
Secti
2157407-1
3.1
Operations and Maintenance Plans ....... .
··························································3· 1
................................................... 3-4
3.1.1
3.1.2
3.1.3
3.1.3.1
3.1.3.2
3.1.4
3.1.5
3.1.6
3.2
3.3
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Meter Reading and Maintenance .... ,: ..
Water Main Breaks and Repair
Distribution System Flushin
Prior to Flushing Checklist ...... .
While Flushing C
klist.. ............. :.
............................................ 3-4
..................................... 3-5
.. ............................ 3-5
....................... 3-6
·································································3·6
.......................................................... 3-7
................................................... 3-7
..
.. .............................................. 3-8
....................................................... 3-8
ility Mark Outs ....................................................... 3-8
·············································································3·9
........................................................... 4-1
.................................................................................................... 4-1
................................................................................................ 4-1
edures ................................................................................................... 4-1
ing to Third Party Water Purchases ....................................................... 4-1
g Logs/Records ......................................................................................... 4-1
Main
nee and Inspection Logs ................................................................................... 4-2
Incident Log ..................................................................................................................... 4-2
GIS Update ...................................................................................................................... 4-3
Spare Parts Inventory ...................................................................................................... 4-3
Annual Equipment Report ................................................................................................ 4-3
Capital Improvement Plan ................................................................................................ 4-4
Asset Management Plan .................................................................................................. 4-4
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
4.1 O
Monthly Progress Report ................................................................................................. 4-5
4.11
Annual Operation and Maintenance Report ..................................................................... 4-6
4.12
Audit of System ................................................................................................................ 4-6
4.13
Summary of Reports ........................................................................................................ 4-6
List of Tables
Table 2-1. Public Facilities ................................................................... ..
. ...................................................... 2-14
Table 4-1. Summary of Required Reports/Logs/Databases ............ .
. .......................................................... 4-7
2157407-1
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 1
Section 1
General
The purpose of this Best Management Practices ("BMP" or "BMPs")) guideline is to define the standards
for the operation and management of Rahway City's Potable Water Supply System ("System"). The
elements of these BMPs include the necessary requirements to provide water quality, system management
programs, and the operation and maintenance of facilities. Drinking water regulations have placed an
increased emphasis on monitoring and maintaining drinking water quality from the point-of-entry to
treatment, to the distribution system through to the last user. Distribution system water quality
encompasses monitoring and control of chemical, microbiological, and physical parameters that can affect
safety or aesthetic quality of water. The goal of every water system should be to operate efficiently and
safely while providing water that is protective of public health and fosters customer satisfaction and
public trust in the quality of tap water.
The BMP is a dynamic document which is developed to provide industry accepted standards and System-
specific requirements for a well operated utility. The goals for this BMPs are to:
■ Protect the health and welfare of the public and the operating staff.
■ Provide potable water that meets drinking water standards.
■ Protect the environment.
■ Preserve the long-term capability of the distribution system, storage, and treatment services.
■
Protect and preserve the associated equipment.
■ Minimize operational costs to the City.
The provisions of the BMP are subject to the terms and conditions of the Services Agreement for the
Operation, Management, Maintenance and Repair of the city ofRahway's water Supply System dated
______ ("Agreement"), including the provisions regarding Unforeseen Events and Changes in
Law.
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in
the Agreement.
2157407-1
1-1
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
Section 2
Operation
2.1
General Provisions
SUEZ Water Environmental Services Inc. (the "Operator") shall operate and maintain the potable water
system in a professional, efficient, and economical manner in accordance with this BMP, the Agreement
and in compliance with all federal, State and local laws, regulations, and requirements. The Operator
shall provide treated water in quantities meeting the required production and quality requirements. The
drinking water produced shall be in compliance with all primary and interim primary drinking water
regulations, including primary and secondary Maximum Contaminant Limits ("MCLs") promulgated by
the USEP A, NJDEP and all other local, State, and federal requirements. The quality of the drinking water
provided shall meet all applicable federal and State regulations and requirements at the point of discharge,
at the point of entry into the distribution system, throughout the distribution system and at the tap, as
applicable to the requirements.
The Operator shall provide all labor, materials, machinery, vehicles, equipment, office equipment
(copiers, typewriters, facsimile machines, computer systems, etc.), fuel, power, chemicals, supplies,
materials, spare parts, expendables, consumables, testing and laboratory analysis, hardware, software and
licenses, and all else necessary therefore or incidental thereto for the operation, maintenance,
management, and Repairs to the System by the Operator subject to the Annual Maintenance Cap.
The
Operator shall, at all times, keep the System in good repair and working order. The Operator shall
provide uninterrupted Services and provide Services twenty-four (24) hours per day, seven (7) days per
week. Operational decision making shall always be based on the following overall objectives:
•
Protection of health and welfare of the public
•
Protection of the health and safety of the operating staff
•
Preservation of the long-term capability of the water supply, water treatment, distribution, and
storage facilities
•
Protection of the environment
•
Protection of public and private property from flooding from water main breaks
•
Protection and preservation of the System
•
Maximization of operational efficiency and minimization of operational costs
•
Reduction of water loss
2.2
Analytical Services
The Operator shall perform testing, sampling, and any other analytical procedures to demonstrate
compliance with applicable regulatory requirements and permit provisions. The Operator shall perform
all applicable testing related to process control and water monitoring in conformance with regulatory
requirements. The Operator shall conduct all necessary analyses whether the analyses are conducted at an
on-site laboratory, at an offsite laboratory operated by the Operator, or through a subcontracted service.
Any laboratory that is utilized must be appropriately certified to perform the required analyses. The
Operator shall prepare the data received from the testing laboratory for all applicable regulations, permit
2157407-1
2-1
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
monitoring, and operating reports and shall forward the results from the laboratory to the appropriate
State and regulatory agencies. The results of all analytical testing shall be made available to the City.
2.3
Permits
Please refer to section 6.25(c) of the Agreement.
2.4
Administrative Consent Orders/ Memorandums of Agreement
The Operator shall be responsible for operation, management, maintenance, and Repairs to the System in
compliance with all Administrative Consent Orders (ACOs) and Memorandums of Agreement (MOAs).
This shall also include the response to any ACOs / MOAs and the improvements that are necessary to be
made to the System to maintain or bring the System into compliance with any existing or future ACOs /
MOAs. New or amended ACOs or MO As after the date of this Agreement shall be treated as Changes in
Law.
The Operator shall make all filings, applications and reports reasonably necessary to respond to such
ACOs I MO As, obtained or maintained by or in the name of the Operator or the City under applicable law
in order to operate the System. The Operator shall be required to undertake any engineering studies or
modeling in order to respond to the ACOs / MOAs, provided that the cost of studies or modeling, if
approved by the City, are addressed by the City as a Capital Improvement. With respect to ACOs /
MOAs that are required to be responded to in the name of the City, the Operator shall: (1) prepare the
response and develop and furnish all necessary supporting material; (2) supply all data and information
which may be required within its scope of knowledge; (3) familiarize itself with the terms and conditions
of such ACOs; and (4) attend all required meetings and hearings.
2.5
Equipment and Chemicals
The Operator shall keep all equipment in good operating conditions and maintain adequate equipment in
inventory in order to facilitate the Repair of used or useful equipment, if necessary, in a timely fashion
so as not to disrupt the operation of the System. Such equipment shall be of a quality and durability equal
to or greater than the equipment being used and sufficient for its effective and cost-effective utilization, in
inventory, or required herein, and shall meet the specification provided for in the O&M Plan and as
defined in this BMP.
The Operator shall operate all used or useful equipment necessary in order to maintain compliance with
applicable regulatory requirements and operational requirements, including equipment placed in service,
and perform all tests and testing as may be required or recommended pursuant to applicable warranties,
commercial or industrial standards, federal, State, and local laws, regulations and permits, as well as with
this BMP. The Operator shall be responsible for promptly notifying the City in the event of any major
equipment failures and such equipment failures shall be identified in the Monthly Progress Reports as
hereinafter described in Section 4.10 of this BMP.
All water treatment chemicals used at the System shall be in accordance with A WW A standards and must
be NSF approved for potable water treatment.
2157407-1
2-2
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
2.6
Vehicle Maintenance and Rolling Stock
The Operator shall be responsible for leasing or purchasing any vehicles needed to perform the Services.
Vehicles refers to all cars, trucks, vans or other modes of transportation that require a license plate used in
connection with providing the services for transporting people or things or used for other necessary
functions in the operation or maintenance of the System.
The Operator shall be responsible for maintenance of rolling stock. Rolling stock refers to equipment
available for transportation or that moves on wheels other than vehicles.
2.7
Buildings and Grounds Services
The Operator shall perform services to maintain the current condition of the System. The facilities and
facilities structures shall be maintained at a level adequate for the efficient, long-term reliability and
preservation of the capital investment.
2.8
Utilities
The Operator shall be responsible for supplying all utilities, including, but not limited to, natural gas,
heating, fuel oil, telephone, water, and electricity, as necessary at all System facilities to allow for the
proper operation and maintenance, all of the foregoing subject to the provisions of Schedule 5 of the
Agreement.
2.9
Planning
The Operator shall be responsible for supporting the City's short and long-term planning for the System.
Such support shall consist of providing System information and data and attending meetings with City
officials to assist in the development of such plans as requested by the City. Additionally, the Operator
shall assist the City in preparing on an annual basis its Capital Improvement Plan for the System as
further defined in this BMP. Plans to be developed and implemented by the Operator include but are not
limited to:
■ Residuals Disposal Plan
■ Annual Maintenance Plan
•
Assist the City in review of Development Plans (to respond to inquiries from potential water
customers)
■ Review, completion, and execution of permit applications from existing or potential water
customers; and
•
Operator shall provide recommendations to the City for development and implementation of its
Water Conservation and Drought Management Plans
■ Water Loss Reduction Plan
2157407-1
2-3
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
■ Operation and Management Plan (O&M Plan)
2.10
Economic Development/Redevelopment
An important role of the System providing reliable, below market costs is providing an attractive
environment for economic development in the City. The Operator shall be a resource to the City in its
economic planning by providing all reasonable services requested by the City, potential developers, or
others regarding potential development or rehabilitation within the City.
2.11
Solid Waste Management
The Operator shall be required to provide containers for the disposal of and collection of all solid waste
from within the System. The Operator shall be responsible for collection and delivery of all solid waste
to lawfully approved disposal facilities.
2.12
Facility Security
The Operator shall perform a vulnerability assessment in accordance with EPA guidelines and then
develop and implement a plan to minimize vandalism and risks by providing adequate fencing, posting of
signs and other security measures in order to implement the results of the vulnerability assessment at the
WTP and all of other System facilities owned by the City. Capital Improvements and/or any additional
operating expenses determined necessary as a result of the vulnerability assessment, if approved by the
City, shall be paid for by the City in accordance with the terms and conditions of the Agreement. This
Facility Security Plan shall be included in the O&M Plan and updated as often as necessary as System
potential vulnerabilities are identified or other information is learned, but no less than an annual basis.
2.13
Raw Water Pumping
The Operator is responsible to operate and maintain the System for ensuring that the System complies
with all applicable local, State, federal codes and regulations, the Agreement and this BMP, and to ensure
safe and adequate drinking water for all consumers 24 hours per day, 7 days per week.
2.14
Pumps, Motors, and Equipment
All pumping facilities shall be exercised at least on a weekly basis or as specified in the O&M Plan unless
otherwise agreed to by the City in writing. All equipment not in continuous use shall be exercised weekly
or as specified in the O&M Plan unless otherwise agreed to by the City in writing.
2.15
Purchase of Water from Third Party Suppliers
Within 90 days of the Commencement Date, the Operator shall develop, implement and submit to the
City for approval a standard operating plan that outlines the procedures for the purchase of drinking water
from third party suppliers, This plan shall include procedures for the operation of the interconnection as
2157407-1
2-4
of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
well as procedures for the notifications to the City. A copy of the City's current agreement with
Middlesex Water Company is attached to the Agreement as Schedule 19.
2.16
Section Reserved
2.17
Section Reserved
2.18
Raw Water Metering
The Raw Water Meter is located in the WTP Low (Raw) & High (Finished) Lift Pump Station.
2.19
Raw Water Monitoring
The Operator is required to perform raw water monitoring in conformance with all federal, State and local
laws, regulations and requirements, and as identified in this BMP.
2.20
Finished Water Metering
The existing flow meter located on finished water pipeline in the WTP Low & high Lift Pump Station
shall be routinely monitored, calibrated and Repaired by the Operator in accordance with manufacturer
recommendations, State requirements and this BMP. All flow meters shall be calibrated at least once
each year.
2.21
Finished Water Monitoring
The Operator shall perform process and finished water monitoring in conformance with all
federal, State and local laws, regulations and requirements, and as identified in the BMP.
2.22
Distribution System Monitoring
The Operator shall perform System monitoring and notification procedures in conformance with all
federal, State and local laws, regulations and requirements and in conformance with applicable permits, in
accordance with the Agreement and as identified in the BMP.
2.23
Iron and Manganese Deposits
The Operator shall be responsible for periodically removing accumulated iron and manganese deposits
from exposed equipment surfaces and unit processes, including, but not limited to de-gasifiers, rapid
mixers, flocculators, clarifiers and all process pipelines, culverts and other conveyances in order to allow
for the proper operation and performance of the equipment. The Operator shall be responsible for
disposal of all accumulated material in accordance with all local, State, and federal regulations.
2157407-1
2-5
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
2.24
Solids Handling and Residuals Disposal
The Operator shall operate, maintain, manage, and Repair the WTP mechanical dewatering facilities, and
shall coordinate and arrange for the transportation and disposal of residuals generated by them in
accordance with all local, State, and federal regulations.
2.25
Treated Storage Tanks
The Operator shall be responsible for maintaining at least 75% combined water capacity in all storage
tanks. Storage tank levels shall be monitored and controlled to ensure proper pressures for satisfactory
service and fire fighting capabilities under normal operating conditions and subject to any Capital
Improvements necessary to achieve such percentage.
The treated storage tanks shall conform to NJDEP Safe Drinking Water Act Rules. Water level in the
storage tanks shall be checked regularly to confirm it provides the minimum pressure required as
described in this BMP. The tank shall include an overflow and low level warning alarm.
Utilized
storage capacity of the tank shall be such that adequate water quality can be achieved within the water
distribution system.
Water storage tanks need to be periodically inspected and cleaned to help maintain good water quality in
the distribution system, and to help extend the life of the tank. Regular tank inspections can also help to
identify small problems that may develop into major problems that can create health related issues, lead to
costly Repairs or premature tank failure. The tank roof shall be inspected for impermeability and
durability. Painting or repainting of damaged surfaces shall be completed with inert and nontoxic
coatings in compliance with NJ.AC. 7: 10-8.
Tanks that are not periodically cleaned can cause contamination events that can harm human health or can
contribute to customers' aesthetic complaints. As part of the storage tank operation program, the tank
should be drained during inspection and cleaning. Alternative cleaning techniques include the use of
divers or remotely operated vehicles to clean the storage tank. The water should be tested in accordance
with American Water Works Association (AWWA) C652 standards.
The frequency of cleaning is based on the type of tank and water quality in the System. In general, the
tank should be tested at least every five years with more frequent cleaning if water quality testing
indicates more frequent cleaning is required. The tank's physical and structural condition shall be
evaluated when the tank is being cleaned through visual inspection. If Repairs are necessary for structural
integrity, or painting, these items shall be considered Capital Improvements. If the Operator discovers
any condition that threatens the health, safety or welfare of the customers or poses a threat to the efficient
and safe operation of the System, the Operator shall address the situation on an emergency basis.
Prior to cleaning, the Operator shall consult the City to agree on the proposed date, time, description and
duration of work activities and to coordinate third party water purchases that will be necessary during the
tank cleaning. During cleaning operations, the tank should be isolated from the distribution system
regardless of the cleaning methodology used.
2157407-1
2-6
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
The Operator shall include a tank maintenance plan as part of the O&M Plan.
2.26
Water System Pressure
The Operator shall operate the WTP and pumping facilities needed to maintain distribution system water
pressure at all locations and under all conditions, subject to the capabilities of the System and System-
wide demands. Additionally, the Operator shall maintain System pressure at a minimum of 20 psi under
normal operating conditions and under emergency conditions respectively at all locations throughout the
system. Other emergencies can be of any nature as determined by the police and fire department, as well
as other City officials, included extended power outages.
The Operator shall provide full cooperation to Fire and Police Department personnel or their
representatives in times of fire or other emergencies. This shall include, but not be limited to,
coordination with Fire Department personnel in the event of fire fighting to provide as much water as
required or practicable to meet fire fighting needs. This assistance shall include, but not be limited to,
utilization of interconnects and operation of the storage facilities.
2.27
Corrosion Prevention
The Operator is responsible for developing and implementing a corrosion control program which will be
included in the O&M Plan. The Operator shall monitor corrosion of the distribution system and identify
any necessary Repairs caused by corrosion. If those Repairs are necessary for structural integrity, these
items shall be considered Capital Improvements. If the Operator discovers any condition that threatens
the health, safety or welfare of the customers or poses a threat to the efficient and safe operation of the
System, the Operator shall address the situation on an emergency basis.
2.28
New Connections
Prior to allowing additional service connections to the distribution system, the System should be
evaluated for its ability to support the new demand while maintaining source water quantity and quality,
water quality at the treatment facility, adequate water storage capacity, distribution system capacity, and
the ability to maintain System pressures in the distribution system as discussed in the BMP. The Operator
shall confirm that all permits have been received, as necessary, prior to a new connection to the System.
New connections shall be made in accordance with local, State, and federal standards. Pipes shall be
disinfected prior to connecting to the distribution system. Acceptable pipe material is specified in the
Safe Drinking Water Act and in A WW A Standards and shall be in accordance with the Code of the City
of Rahway (applicable provisions of such laws and regulations referred to herein as the "City
Ordinance").
2.29
Cross Connection and Backflow Prevention
Backflow and cross connections into a public water system can pollute and contaminate the water in the
distribution system making it unsafe to drink. A cross-connection is any temporary or permanent
connection between a potable water system and any source or system containing non-potable water or
other substances. Backflow is the undesirable reversal of flow of non-potable water or other substances
2157407-1
2-7
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
through a cross-connection and into the piping of the potable water system. There are two types of
backflow; backpressure is caused by downstream pressure greater than the potable water system pressure
upstream and back-siphonage, which is caused by a negative pressure (such as drinking water through a
straw).
Backpressure can result from an increase in downstream pressure, a reduction in the potable water supply
pressure, or a combination of both. Increases in downstream pressure can be created by pumps or
temperature increases in boilers, as an example. Reductions in potable water supply pressure occur
whenever the amount of water being used exceeds the amount of water being supplied, such as during
water line flushing, fire fighting, or breaks in water mains. Back-siphonage can occur when there is a
stoppage of water supply such as due to nearby fire fighting or a break in a water main.
Backflow preventers, such as air gaps or mechanical backflow preventers should be used to eliminate
possible cross-connections and provide a barrier to prevent backflows. Mechanical backflow preventers
should have internal seals, springs, and other moving backs. These components require routine
maintenance to function as designed.
The City shall be responsible for a cross connection and backflow prevention program.
2.30
Water Quality Monitoring Program
A Water Quality Monitoring Program is designed to detect the presence of microbiological or chemical
contamination due to the potential compromise of the water quality, treatment effectiveness, and/or
distribution system integrity. Several parameters are required to be sampled as part of the sampling plan
including microbial concentration, free and total chlorine, and system pressure. A complete list of
contaminants required by law should be included in the water quality monitoring program.
The Operator shall develop and implement a sampling plan in compliance with EPA regulations.
2.31
Public Education Program
Public education programs are a key component to the overall performance of the System. Conservation
programs that are well designed and implemented can result in many positive outcomes including
efficient use of the potable water, public recognition and participation, and improved support for water
pricing adjustments.
The public education program should include a variety of resources such as:
■ The Annual Water Quality Report
■ Community involvement on all infrastructure projects
■ Education handout materials provided to the community by the Operators completing system
operation and maintenance work
■ Customer comment program
■
Public information on water conservation strategies
■
Guidelines for reporting suspected leaks or faulty meters
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Best Management Practices Plan for the
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Section 2
The Operator shall develop and maintain a public outreach program that includes a hotline, social media
and webpage. The outreach program shall provide the community with information on the System and
water quality while providing a means for community members to air their concerns. The outreach
program shall be set-up as a valuable tool for educators as well.
Water conservation is perhaps the biggest component of a public education program. It is important
customers know water conservation strategies to implement at their own property. Whatever media is
used, whether it is handouts, attending community meetings, or online, the message that water
conservation benefits the community and rate payers should be conveyed.
2.32
Water Conservation Program
Water conservation is an opportunity to improve services to existing customers and to extend services to
the population not served. Unaccounted for water of more than 20 percent requires priority attention and
corrective actions. Water losses can be caused by unmetered water, accounting errors, malfunctioning
distribution system controls, theft, inaccurate metering or physical leaks within the distribution system.
Some unmetered loss is authorized such as fire fighting or system flushing. These authorized uses often
account for a very small portion of the water loss.
2.32.1
Leak detection/reporting
Typically, the largest contributors to water loss include service line leaks, valve leaks, water main leaks,
or unknown/unmetered water services. The maintenance program for leak detection should consider the
material, composition, age, and joining method of the component to the distribution system.
Environmental factors such as temperature, freeze/thaw cycle, and even traffic loading can also increase
the frequency of leaks. The water conservation program should consider these issues when developing
the frequency and location of leak detection inspection.
The development of the leak detection program should give highest priority to the following areas:
■ Areas with a history of excessive leak and break rates
■ Areas where leaks and breaks result in the heaviest property damage
■ Areas where the system pressure is high
■ Areas exposed to stray electric current and traffic vibration
■ Areas near stream crossings
■ Areas where loads on pipes exceed design loads
Leaks are most easily identified where potable water reaches the surface. In many cases, however, the
leak is small and water will not reach the surface. Detailed and accurate records should be kept to be used
to identify possible leak locations. Records should be kept in such a format so they can easily be
coordinated with a map of the distribution system including the GIS maps. Field inspections will be
required to locate the exact area of the leak and make appropriate Repairs in a timely manner. Customers
should be provided with appropriate channels to report leaks or other required Repairs to the System. The
Public Education Program should provide a telephone number (hotline) for reporting issues as well as a
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Best Management Practices Plan for the
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Section 2
webpage where users can alert the City and Operator to possible leaks or unauthorized water use in the
distribution system.
2.32.2
Annual Water Loss and Conservation Plan
The City and the Operator recognize that addressing unaccounted for water in an aging system requires
capital expenditures as well as monitoring of system conditions and usage. The City and the Operator
hereby agree upon the following procedures for improving monitoring and addressing unaccounted for
water in the water distribution system:
•
First 180 days - the Operator shall make an initial operational assessment to determine with
accuracy the volumes of unaccounted for water and their breakdown between physical and
commercial losses.
•
First 270 days - based on this initial assessment, an adapted action plan with corresponding
unaccounted for water reduction targets shall be prepared by the Operator in close cooperation
with the City for the short and medium term. This first Water Loss and Conservation Plan will
include operational actions as well as a dedicated capital investment program to replace the most
deficient water mains. The goal of the Water Loss and Conservation Plan is to identify sources of
water loss in the System, quantify the volume of water loss, and develop corrective actions to
minimize the amount of water loss.
•
On an annual basis following the production of the above mentioned Plan - the Operator shall
update the Water Loss and Conservation Plan and implement the identified water reduction
actions. The Operator shall maintain an annual water loss record and develop a response plan to
reduce the volume of water loss throughout the System.
To the extent any of the above measures identify needed Repairs of the System, the responsibility for such
Repairs shall be subject to the other terms and conditions of the Agreement, i.e., Repairs of mains will be
processed through the Annual Maintenance Cap and the City will be responsible for Capital
Improvements.
2.33
Operator Training
Training programs shall be provided on at least an annual basis and more frequently as required for all
personnel employed for performance of services related to the potable water distribution system.
Training shall include, but not be limited to, modem process control, equipment operation, repair, and
maintenance, sampling and analytical procedures, regulatory requirements, supervisory skills, and safety
and occupational health procedures. Records of all training shall be maintained as part of a Training Plan
to be reviewed by the City.
The Training Plan shall clearly define the classroom and practical training curriculum for each Operator
position and classification. Calendar dates and milestones shall be assigned to each portion of the training
and a training schedule shall be submitted as part of the Training Plan. The date and duration of on-site
training by each of the equipment manufacturer's technical representatives will be shown in the schedule.
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City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 2
Table 2-1
Public Properties
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 3
Section 3
Maintenance
3.1
Operations and Maintenance Plans
The Operator shall develop, implement, maintain, and submit to the City for approval a comprehensive
computer-based Operation and Maintenance Plan/ Program (O&M Plan) for the System within l 80days.
The City will review the draft O&M Plan and provide comments and required corrections within 30 days
of the initial submittal. The Operator shall submit a final version of the O&M Plan incorporating City's
requested changes and comments 30 days following the return of the draft manual. The O&M Plan shall
then be updated annually by the Operator and submitted to the City for review and approval. Operator
shall provide to the City, two (2) bound hard copies and an electronic copy of the O&M Plan initially and
upon each annual update.
The City shall be provided with read-only access to the O&M Plan and provided with the ability to
compile, reconcile, and print all reporting functions. The O&M Plan shall specify all procedures and tests
to be conducted for the performance of the services, inclusive of all facilities and equipment. The O&M
Plan shall be a comprehensive manual organized into separate sections addressing each of the unit
processes involved, the overall System operation and control, historical data, inventory of spare parts,
auxiliary system equipment and systems, grounds and building maintenance, and provisions for enforcing
existing and new equipment warranties and guarantees and maintaining all warranties of existing
equipment and new equipment. The O&M Plan shall dedicate a separate section to detail the Operator's
maintenance and Repair program. Such program shall contain a detailed description of maintenance and
Repair activities which will be required to be performed by the Operator to maintain operability,
durability, and reliability of the System. The Operator shall make and complete all maintenance and
Repairs to the Facilities which are necessary to achieve such standard of Repair by performing all such
listed activities within the time frame indicated in the O&M Plan.
In addition to the above, a summary of the O&M Plan components for the System is provided below. This
list is not intended to be all inclusive and the Operator shall be responsible to confirm that all components
are included in the O&M Plan:
■
Schedule of permit applications to be submitted to regulatory agencies
■ Copies of all permits, licenses, and other regulatory documents obtained for Operator's services
■
Staffing plan showing a breakdown by staff classification of all personnel to be utilized during
operations and maintenance including, but not limited to, the shift in which the work will be
completed
■
Schedule of expected shutdowns for routine maintenance
■ Maintenance schedule for all facilities, pipes, valves, storage tanks, and fire hydrants
■ Operation procedures for all major equipment within the System during start-up, normal,
alternate, and emergency operation modes
■ Equipment and system manufacturers/suppliers O&M manuals
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Section 3
■ Forms and checklists to be used to monitor equipment and process system operation and
preventative maintenance
■ Monitoring and reporting requirements
■ Updates to the O&M Plan
Each separate unit process and auxiliary system processes section of the O&M Plan shall include a
detailed written explanation of the following:
■ The process or system including its key components
■ The system function including its purpose and normal operating parameters
■ Equipment summary including nameplate data, supplier/local representative, and manufacturer
■ Description of instrumentation and control system, including an alarm summary
■ Description of normal system operations including startup and shutdown, adjustment of
variable functions and settings, interface with other WTP systems, routine monitoring
checklists and record keeping forms
■ Emergency system operations including procedures to be followed in the event of probably
WTP or system upset conditions and/or emergencies, including temporary power outages,
chemical spills, localized or area-wide flooding, etc.
■ Maintenance, including preventative, predictive, and corrective maintenance for all equipment
■ Trouble shooting system malfunctions
■
Safety and emergency response plan and procedures (Emergency Response Plan)
The Operator shall implement such a maintenance program to include preventative, predictive, and
corrective maintenance for all components of the System subject to the Annual Maintenance Cap,
including, but not limited to, the booster stations, the WTP, wells, distribution and transmission pipes,
valves, fire hydrants, storage tanks, as well as the following:
■ Buildings and structures
■
Electrical systems and instrumentation and control systems, including SCADA systems and all
software upgrades, licensing renewals, and computer hardware, servers, equipment, alarms, and
field instruments maintenance. The City shall also be provided with web-based view-only
access for the SCADA systems.
■ Mechanical equipment
■ Rolling Stock
■
Laboratory, monitoring and sampling equipment
■ Heating, ventilation, and air conditioning
■ Computer systems that are the property of the City (software and hardware)
■ Chemical feed systems
■ Pumping systems
■
Each process component, including, but not limited to filtering facilities and backwash facilities
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Best Management Practices Plan for the
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Section 3
■ Water mains, distribution, storage tanks, and transmission mains
■ Auxiliary power facilities
■ Other facilities and systems contained within the System
■ Other specialized tools and equipment owned by the City
Preventative maintenance is considered to be those activities which keep a System in good repair. A
preventative maintenance program helps preserve capital investment while preventing service
interruptions, and can minimize the quantity of water loss. Preventive maintenance activities can include,
but are not limited to:
■
Scheduled flushing and inspection of water mains, valves, and fire hydrants, including fire flow
tests
■ Recording, investigating and resolving customer complaints
■ WTP Pump station and process components inspections, maintenance, Repair and emergency
power load tests
■ Scheduled inspection and/or cleaning as needed of system components
■ Maintenance activity records to support appropriate analysis and reporting
■ Storage tank inspection and cleaning only. Tank rehabilitation and painting shall be considered
as a Capital Improvement.
A preventative maintenance plan shall be incorporated into the O&M Plan. A preventative maintenance
plan provides an opportunity to organize regular maintenance activities and capture institutional
knowledge and experience that will be essential for operating an effective maintenance program into the
future. Preventative maintenance shall be performed in such a manner that the operation of the Managed
Assets is not impacted and the performance standards, guarantees, and/or warranties are not threatened.
The Operator shall also develop and maintain computer based preventative maintenance logs for each
facility and all equipment, pipes, and other components included in the O&M Plan. The City shall have
read-only privileges to these logs with the ability to generate and print all required reports.
The Operator shall also perform routine maintenance to achieve the following:
■ Maintain all equipment in an operational condition at all times while meeting the applicable
Performance Standards, unless undergoing Repair or renewal
■ Preserve the warranties on all Managed Assets equipment
■
Perform predictive and preventive maintenance on all Managed Assets Equipment in
accordance with manufacturers' recommendations
■ Minimize corrective maintenance and emergency Repairs
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Best Management Practices Plan for the
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Section 3
The Operator shall hold an annual Maintenance, Repair and Replacement Workshop with the City to
discuss the prior year's maintenance activities and recommended changes to the O&M Plan for the
upcoming year.
The Operator shall also develop a system to evaluate its performance of the maintenance programs.
The System has been designed and constructed to be capable of delivering the maximum daily demand
and fire flow for residents, businesses, and public fire fighting requirements. The goal of the routine
maintenance program is to support continued operation of the System through the evaluation of flow,
preventative maintenance of essential assets, and regular training of maintainers. The following
paragraphs provide guidance for developing and implementing a routine maintenance program capable of
meeting the goals of the System's operation. The following paragraphs are intended to be for guidance
only and may not be all inclusive. The Operator is responsible to provide a comprehensive O&M Plan
that addresses all facilities, components, equipment, pipes, and all else necessary for a complete and fully
operational System.
3.1.1
Meter Reading and Maintenance
The Operator shall be responsible for reading all meters on at least a quarterly basis. The Operator shall
arrange for mobile communications systems for the Operator's use in performing the meter maintenance.
Broken, inaccurate or inoperable customer meters shall be promptly Repaired by the Operator within four
(4) business days. If the Operator discovers an unmetered customer, the Operator shall immediately notify
the City and the Operator shall install a meter for these customers within four (4) business days of
discovery.
As part of the annual Capital Improvement Plan, the Operator shall provide recommendations to the City
to develop its meter replacement program. The City will be financing its meter replacement program as
part of its Capital Improvements.
The Operator shall maintain responsibility for all service lines that are on the street side of the curb line.
The customer shall be responsible for the service lines that are located on the property side of the curb
line.
For service connections that have been abandoned and are no longer billed, the Operator shall isolate
the service connection, remove the existing meter and remove or plug the service lateral at the water
main. Any meters that are removed from service shall be returned to the City. The Operator shall
develop procedures for review and approval by the City for notification and removal of service
connections for properties subject to demolition. In general, the procedures for removal of service
connections shall include the removal of the service connection at the water main.
3.1.2
Water Main Breaks and Repairs
Repair, rehabilitation, and new construction of water mains are a common activity. The goal of this BMP
guideline is to minimize the amount of water main Repairs needed. Nevertheless, water main Repairs
will be required to maintain the integrity of the System when cracks, leaks, or failures occur. A water
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Section 3
main break represents a loss in the integrity of the distribution system through water leakage, loss of
water pressure, and the potential for contamination. When a water main break is reported, the exact
location shall be identified and an emergency response crew shall be dispatched to isolate the area, set up
any necessary road blocks or barricades, and valve off the affected area.
Residents and commercial/industries shall be contacted if the break disrupts their service. The fire
department shall be notified if any fire hydrants are out of service. Local utilities shall be notified if
excavation is required that impacts other underground utilities. NJDEP shall be notified if a loss of
pressure in the System is caused by the break or if water quality is impacted.
Breaks in the water main present a major loss of water and revenue in the System while disrupting the
community's water supply and affecting safe passage. Therefore, water main breaks, where water is
reaching the surface, should be reported to the City immediately and a complete Repair provided within a
timeframe in adequacy with the criticality of the break. Major breaks should be treated as a top priority
with on-call staff available 24 hours a day, 365 days a year to respond to a major water break.
All
materials used to Repair the water main breaks shall be in accordance with the City's latest Ordinance.
Water main Repairs should be prioritized and addressed in a timely manner based on the degree of Repair
needed and the potential impact on the distribution system and community. Repair work shall be
performed without interruption of service whenever possible. If an interruption is necessary, the Repair
work shall include considerations to minimize the length of time for the outage. Any newly constructed
or Repaired water mains must be disinfected in accordance with the latest revision of A WW A standards
before reconnecting to the potable water supply. After Repairs are performed and the Repairs are tested
for water tightness, area hydrants shall be flushed and water quality samples shall be taken for testing.
The Operator shall continue to flush, disinfect, or take other measures as necessary until water quality
samples meet the required water quality requirements.
A water main break Repair procedure shall be incorporated into the O&M Plan.
3.1.3
Distribution System Flushing and Fire Flow Tests
Regular flushing of the System supports compliance with water quality standards. A systemic flushing
program shall be developed in accordance with federal, state, and local laws and incorporated into the
O&M Plan. The frequency of flushing depends on many factors including the condition of pipes,
historical performance of segments of the System, and the results of the sampling program. However, at a
minimum, and in conjunction and coordination with the City Fire Department, the Operator shall be
responsible for flushing all hydrants and water mains at least once a year. The systemic flushing program
serves as the basis for the routine maintenance program. At all times during system flushing, adequate
system pressure and flow volume shall be maintained.
3.1.3.1
Prior to Flushing Checklist
A checklist shall be developed listing the proper procedures prior to system flushing and included in the
O&M Plan. This checklist will be used as a standard guideline for all system flushing. Standard
information shall be included on the checklist including location. Prior to system flushing, the City shall
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Section 3
be notified of where flushing will take place. The Operator is also responsible for notifying any
customers that may be impacted by the flushing and what the customer can expect to experience as a
result of the flushing. Therefore, the checklist should include contact information for designated City
personnel and the amount of time needed for approval prior to system flushing. Equipment needed to
complete the system flushing maintenance should also be included on the checklist including pressure and
flow monitors. Necessary staff that has completed the training requirements shall also be included on the
checklist with the names of the specific personnel completing the scheduled system flushing. Finally, the
checklist shall include a table for signatures to verify the checklist requirements have been met. The
checklist should be maintained electronically and the City shall be provided with read-only access to the
completed checklist with the capabilities of printing of the checklist.
3.1.3.2
While Flushing Checklist
System flushing should be conducted in a safe manner. It is important to maintain pressure and water
quality and quantity during System flushing. For these reasons, a set of procedures and checklist should
be developed to be used during all System flushing. The checklist shall be included in the O&M Plan. A
table for signatures to verify the checklist requirements have been met should be included on the
checklist. The checklist should be maintained electronically and the City shall be provided with read-only
access to the completed checklist with the capabilities of printing of the checklist.
3.1.4
Valve Maintenance
The Operator shall develop and implement a reasonable valve exercising program to be implemented in a
progressive manner and address those valves deemed to be critical to the System's operation. The valve
exercising program shall be included in the O&M Plan. In general, many valves throughout the
distribution system may not have been exercised in a considerable amount oftime. All valves determined
to be broken or inoperative shall be reported to the City as part of the Monthly Progress Report and then
Repaired by the Operator as part of the O&M Plan and subject to the Annual Maintenance Cap.
The Program shall be developed such that 20% of the valves are exercised each year so that every valve
has been exercised every five years; however, critical valves shall be exercised on a more frequent basis.
Also, the oldest portion of the System shall be exercised within the first 20% of the valves to be
exercised. This program shall be developed in accordance with the manufacturer's recommended
procedures and include several key components including:
■ Number of transmission valves to be exercised annually based on the percentage of the total
valves in the System
■ Number of distribution valves to be exercised annually
■ Measures to verify that the goals are met and written procedures for action if the goals are not
attained
■
Critical valves in the distribution system shall be identified for exercising on a regular basis.
Potential water quality and isolation concerns shall be recognized. The program shall track the
annual results and set goals to reduce the percent of inoperable valves.
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Best Management Practices Plan for the
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Section 3
■ The valve-exercising program may be implemented in conjunction with the systemic flushing
program
■ Valve exercising can result in breakages in valve stems and exercised valves being left in a
position other than as found. Procedures must be in place to respond to broken or frozen
valves, and to assure that valves are returned to their original position after exercising.
3.1.5
Connection Shut-off Procedures
There are several reasons connections are required to be shut-off from the System. These include closure
of buildings, moving of residents, and unauthorized uses. It is the responsibility of a customer to alert the
City when they are closing buildings or moving. Additionally, the Operator may be informed, or
otherwise be made aware, of unauthorized uses. The Operator should respond to these reports and
remove the connection or shut-off the water service at the curb or water main using approved standard
operating procedures (SOPs) and in accordance with the City's Ordinance. The proposed connection
shut-off procedures shall be detailed in the O&M Plan.
As part of the water leak detection program, records shall indicate where unauthorized uses are present.
The community outreach program could also provide locations of unauthorized use. These connections
should be shut-off from the System in accordance with the approved SOPs and the City's Ordinance.
3.1.6
Hydrant Maintenance and Testing
The Operator shall be responsible for flushing all hydrants and water mains in accordance with the
distribution system flushing as previously described. Additionally, regular fire hydrant testing is
important in order to determine the capability of the fire hydrant and the System during an emergency.
The condition of and maintenance performed on the hydrants shall be recorded. All hydrants found to be
broken or inoperable shall be bagged immediately and shall be Repaired within one week by the
Operator, including those fire hydrants that are in need of Repair that are damaged by theft or vandalism
by third parties not under control of the Operator, subject to the availability of funds in the Annual
Maintenance Cap. Any fire hydrants that are in need of Repair as a result of vandalism shall be
immediately reported by the Operator to the City and documented separately by the Operator on the
maintenance logs. All new fire hydrants shall be in accordance with the City's latest Ordinance.
Fire hydrants shall be maintained to support adequate fire flow quantity and pressure in times of
emergency. A fire hydrant maintenance program will include the following components:
•
Number of hydrants to be inspected and tested annually based on a percentage of the total
hydrants in the System.
•
Procedures for opening and closing hydrants to minimize potential damage to the distribution
systems
•
Fire flow testing requirements
■ Hydrants can be maintained and inspected as part of the systematic flushing program
■ Annual flushing
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Section 3
■ New or replaced hydrants shall be City-approved standard hydrants
The Operator shall develop a methodology to quantify the amount of water used during hydrant flushing
and fire flow tests, which shall be included in the O&M Plan. At a minimum, the date and time, duration
the hydrant was opened, location of test of flushing, the system pressure (including, static and residual
pressure on the main, as well as static and residual pressure at the fire hydrant being tested), levels of
water tanks at time of test, booster pump operation status at time of test, number of hydrants tested and/or
flushed, flow rate, and names of individuals that conducted flushing and/or testing, should be recorded
during hydrant testing and flushing maintenance. This information shall also be included as part of the
Annual Water Loss and Conservation Plan.
In addition to the above, fire flow test results may be requested by public or private entities. The
Operator shall provide these results, upon request, to the City for furnishing to the requesting entity
within one week of the request being made. If recent (1 year or less) fire flow test results are not
available for the requested area, the Operator shall perform a fire flow test within two weeks of the
request for information and then provide the results to the City within one week following the fire flow
test.
3.2
Maintenance Training Policies and Procedures
The Maintenance Training Program can be coupled with the Operator Training Program as previously
described if desired by the Operator. Training programs shall be provided on at least an annual basis and
more frequently as required for all personnel employed for performance of services related to the potable
water distribution system. Maintenance Training shall include, but not be limited to, modem process
control, equipment operation, Repair, and maintenance, sampling and analytical procedures, regulatory
requirements, supervisory skills, and safety and occupational health procedures. Records of all training
shall be maintained as part of a Training Plan to be reviewed by the City.
The Maintenance Training Plan shall be updated annually and submitted to the City for review. The
Maintenance Training Plan shall clearly define the classroom and practical training curriculum for each
Operator position and classification. Calendar dates and milestones shall be assigned to each portion of
the training and a training schedule shall be submitted as part of the Training Plan. The date and duration
of on-site training by each of the equipment manufacturers' technical representatives shall be shown in
the schedule.
3.3
Emergency Maintenance and Response
The goal of this program is to prevent the need for emergency Repairs through preventative maintenance
practices. However, it is recognized emergency Repairs may be needed when the health and safety of the
community are a concern. Emergency maintenance often involves temporary repairing failures until a
permanent solution can be designed and constructed. Emergency maintenance shall be given a high
priority and addressed immediately.
3.4
Emergency Customer Service and Utility Mark Outs
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Section 3
The Operator shall respond promptly (within two (2) hours) to the extent practicable and in a reasonable
manner to all customer problems and emergencies pertaining to the System. In addition, requests for
utility mark outs the Operator shall respond to and complete all utility mark outs in accordance with the
timeframes required by the New Jersey Board of Public Utilities. The Operator shall maintain a toll-free
24 hour telephone number so that customers of the System can report any problems and emergencies.
The Operator shall immediately notify the City of any activity, problem, or circumstance of which it
becomes aware that threatens the safety, health, or welfare of the customers of the System. The Operator
shall maintain a computerized emergency maintenance log of all problems and emergencies identified and
measures taken by the Operator to remedy such problems and emergencies. The City shall be provided
with read-only access to the emergency maintenance log with the ability to compile and print all reports.
Emergency procedures shall address at a minimum:
■ Chemical Spills
■ Personnel Emergencies
■ Fire and Explosions
■ Pipe, Valve, or Pump Failure
■ Equipment and Process Failure
■ Power Failure
■ Acts of God (i.e., Hurricanes, Wind storms, and Floods)
■ Emergency Telephone Numbers
■ Emergency Equipment Inventory
■ Records Preservation
■ Industrial Waste Inventory and Monitoring System
■ Coordinating Instructions with Public Safety Agencies
■ Security Breach
■ Troubleshooting Guides
3.4.1
Emergency Contact Information
The Operator is responsible for developing and maintaining emergency contact information and
procedures. At a minimum, the list of emergency contacts must include the name, phone number, and
email of City and Operator staff, as well as any Local and State personnel that should be contacted in the
event of an emergency. The list of emergency contacts should be prepared in cooperation with the City
and updated as needed such that the latest information is always provided. The list should be reviewed
quarterly.
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City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
Section 4
Record Keeping and Inventory
4.1
Work Orders
Work orders should be completed whenever a needed Repair is identified. All work orders will follow
the appropriate procedure as described in the operation and maintenance manual. A standard work order
format should be developed. All work orders should be available in paper and digital database format.
The digital database should be organized by equipment ID (pipe ID, valve ID, hydrant ID, etc.) so a
review of the database provides information of the frequency of Repair needed at each individual
location. This provides valuable information on water loss and clusters of asset failure. The City shall be
provided with read-only access and the ability to print reports for the work orders.
4.1.1
Generation
Work orders can be generated in a variety of ways including Operator field notes, City notices, or
customer complaints/comments. Any reported incident should result in the generation of a unique work
order. Location, equipment involved, severity, and a general description of the maintenance/Repair
needed should be recorded as part of the work order. Once a work order is generated, the work shall be
completed within a 2-week period unless the item needed Repair is negatively impacting water quantity
or water quality or the BMP indicates that a type of Repair should be completed sooner. In the case of an
item negatively impacting water quantity or water quality, the work shall be completed immediately.
Work orders shall be given a priority designation based on their impact on the operational integrity of the
distribution system and public welfare. The Operator shall visit the site and make the final determination
of the maintenance activity required. If the work cannot be completed at that time, the Operator shall
document the reason that the work cannot be completed at that time, as well as what is required to
complete the work order, and then the work shall be scheduled to be completed within the 2-week period
or sooner depending on the type of Repair as previously described.
4.1.2
Completion Procedures
To complete a work order, the Operator shall indicate the corrective action taken, the date the work order
was completed, and the personnel involved in carrying-out the corrective action. A completed work order
should be entered into the digital database. If any follow-up action is required, it shall also be included in
the database with a new work order created. The original work order should reference the new work
order for the follow-up work and the new work order for the follow-up work should reference the original
work order such that there is a complete history and record for the items in need of repair.
4.1.3
Records Pertaining to Third Party Water Purchases
Please refer to Section 2.15.
4.2
Daily Operating Logs/Records
Record keeping is an important tool in understanding how the System is operating. Accurate and detailed
records can be used to identify water loss in the System, are a valuable accounting tool, and are required
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Section 4
to document water quality sampling and testing of the System. It is essential that these records for
operation, maintenance and performance of the System be up-to-date and accurate.
Daily activities shall include, but not be limited to, maintenance and water quality sampling. These
records should be maintained in accordance with the requirements outlined in this BMP. The Daily
Operating Logs shall be maintained electronically and City personnel shall be provided read-only access
with the ability to print reports from the logs.
4.3
Maintenance and Inspection Logs
Maintenance logs shall be completed daily and with each assigned maintenance task. Maintenance logs
should be tailored to the different types of maintenance activities. Information included on the log should
contain, but not be limited to:
■ Pipe material, diameter, length
■ Meter description, location, and manufacturer
■ Valve description, location and manufacturer
■ Hydrant flush time, visual observations, pressure readings pre and post flushing
■ System flushing location, pressure readings before, during and after flushing, visual
observations
■ Chlorine residual concentration
■ Quantity of chemicals on hand, volume of additional chemicals provided
■ Description of maintenance required
■ Description of maintenance preformed
■ Disinfection material if required
■ Names and signature of Operator completing the work action
■ Names and signature of inspector approving the work action
■ Warranty information
■ Safety precautions implemented
■ Incident report
■ Follow-up actions
The maintenance logs should be reviewed regularly and revised based on performance needs. These logs
will serve as basis for reporting requirements and therefore need to align with the reporting criteria. The
inspection logs can be completed simultaneously with the maintenance logs or independently. Inspection
logs will be used as support documents for regulatory requirements and therefore need to be accurate and
up-to-date. The maintenance logs shall be maintained electronically and City personnel shall be provided
read-only access with the ability to print reports from the maintenance logs.
4.4
Incident Log
2157407-1
4-2
of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
Incidents are described as emergency Repairs that result from significant failure of the System (such as
water main breaks), water quality testing results in violation of regulatory standards, or other Repairs that
require immediate action and/or reporting to regulatory agencies. These logs should be developed in
accordance with reporting standards and include the date the incident occurred, a description of the
incident, and when the corrective action was complete. Personnel involved in completing and inspecting
the Repair should also be provided. The incident log shall be maintained electronically and City
personnel shall be provided read-only access with the ability to print reports from the maintenance logs.
4.5
GIS Update
The City of Rahway has an established GIS database with several shape files showing various assets of
the System. When changes are made to the distribution system assets or existing assets are discovered
that are not correctly reflected in the GIS database or it is discovered that existing assets are not reflected
in the GIS database, the Operator shall update this information in the GIS databases. The Operator shall
provide the equipment, software licensing, and associated effort to maintain and periodically update the
GIS system to display and plot the potable System maps and aid in the tracking of maintenance activities.
At a minimum, the system shall consist of a base map showing water mains, hydrants, water treatment
facilities, well fields, and system valves, as well as all pertinent information related to same to aid in
maintenance of the System. The database shall contain fields that will include such information,
including, but not limited to, location of assets, size of pipes, age of pipes, pipe material, maintenance
performed with dates, attribute identification numbers, etc.
Within 30 days of the Commencement Date, the Operator shall provide the City with an updated version
of the GIS database under an electronic format compatible with the City's information system. An
updated version of the GIS database will have to be provided annually, and upon request, by the Operator
to the City with its Annual Operation and Maintenance Report.
4.6
Spare Parts Inventory
In order for the System to be maintained properly, an accurate list of spare parts should be kept.
Replacement meters, valves and other parts for critical equipment should be kept on hand so routine
Repairs can be completed within a timely manner. The Operator shall maintain a computerized spare
parts inventory and the City shall be provided read-only access with the ability to print reports.
4. 7
Annual Equipment Report
The Operator shall maintain a list of equipment owned by the City as well as the Operator. The list of
equipment shall identify the following at a minimum:
•
Owner of the equipment
•
Type of equipment
•
Year
•
Make
•
Model
2157407-1
4-3
■ Serial Number
■ Hours/Miles of Use
■ Warranty Status
■ Maintenance Log
■ Inspection Records
■ Inspection Date
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
Any City owned equipment in need of Repair should be highlighted in the report. Should City owned
equipment be damaged, vandalized, stolen, or rendered inoperable, the Operator shall notify the City
within 24-hours of the event. An annual report shall be provided to the City which includes the
equipment log described above along with a summary of the condition of the equipment. Additionally,
the Annual Equipment Report shall be maintained electronically and the City shall be read-only access
and the ability to print reports associated with the Annual Equipment Report.
4.8
Capital Improvement Plan
A Capital Improvement Plan (CIP) is a short-range plan which identifies capital projects and provides a
link between planning schedule and funding resources. It is the Operator's responsibility to develop an
annual CIP that provides recommendations to the City for review and consideration. The CIP shall
outline the recommended Capital Improvements for the next five year period on a rolling basis. A
narrative with project description, reason for the Capital Improvement, construction cost analysis and
anticipated operational and maintenance savings, and operational benefit shall be provided for each item
listed in the CIP. The Capital Improvements shall be listed in order of priority with the highest priority
item listed first and then the remaining items listed in descending priority order. Priority shall be given to
those measures which reduce water loss, provide operational and maintenance costs savings, and/or
improve the operation of the System. The City will review the CIP to verify the plan meets customer
needs while maintaining the operational performance of the distribution system.
4.9
Asset Management Plan
The City's potable water distribution system is composed of many critical assets both above and below
ground. The physical components of the System include process equipment, pipes, valves, pumps, and
storage facilities among others. Aging infrastructure requires Repairs to maintain their usefulness. Costs
of operation and maintenance will increase as the assets age and without proper maintenance and asset
tracking, the City will be faced with excessive costs for Repair and/or replacement to deliver the required
standard of service to its customers. The intent of an Asset Management Plan is to support the long-term
sustainability of the System by helping the City make informed decisions on when it is most appropriate
to Repair particular assets and by developing a long-term funding strategy.
The first Asset Management Plan shall be submitted in accordance with Schedule 18 of the Agreement.
The Asset Management Plan shall be prepared in accordance with NJ DEP requirements, updated, and
submitted by the Operator to the City on an annual basis. The Asset Management Plan should be closely
2157407-1
4-4
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
coordinated with the Capital Improvement Plan. The City will make the final determination as to which
assets need Repair or replacement as a Capital Improvement.
4.10
Monthly Progress Report
The Operator shall prepare a Monthly Progress Report regarding the Services. The Monthly Progress
Reports shall be prepared by the 10th of every month for the previous month of Services, provided the first
report shall be due on July 10, 2017. The Monthly Progress Reports shall be submitted to the City for
review and shall be maintained electronically with read-only access and printing capabilities provided to
the City. The Operator shall prepare the Progress Reports in a format subject to approval by the City.
The Monthly Progress Reports shall include data pertaining to performance, including analysis of permit
requirements, flows, and any other information required by the applicable regulatory agencies, the City
and/or as outlined in this BMP. The Monthly Progress Reports shall also include a description of
preventive and corrective maintenance activities and emergency services performed during the previous
month.
The Operator shall include the following in the Monthly Progress Report and any other information
required by the City:
■ Quantities of raw water drawn from the river, which is metered
■ A summary of quantity and type of process chemicals used
■ A summary of quantity and description of process residuals
■ A projection of available treatment for the current month
■ A projection of supply capacity for current month
■ A projection of source needs based on source water quality analyses
■ A description of WTP shutdowns and Repairs during the prior month, and predicted for the
current month
■ List any adverse conditions which may be expected to arise during the current month that may
affect the ability of the Operator to receive and treat a raw water source or supply the
distribution system
■ The results of-any regulatory or insurance inspections conducted during the prior month
including follow-up actions by the Operator
■ Summary of unscheduled Repairs and action taken
■ Summary of scheduled inspections and Repairs and action taken or postponed. Explanations
shall be provided for unscheduled Repairs and postponements of Repairs.
■ Inventory of repair parts
■ Information on utility outages
■ Quantities of utility services used during the month
■ The results of safety tests or other monitoring procedures conducted by staff or regulating
agency
■
Status of all preventive, predictive, and corrective maintenance, including, but not limited to
exercising of valves and fire hydrant testing and flushing
2157407-1
4-5
City of Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
■
Status of billings and collections
Additionally, any copies of all final reports as submitted to the regulatory agencies shall be sent to the
City and appropriate consultants of the City as directed by the City.
4.11
Annual Operation and Maintenance Report
The Operator shall develop, implement, maintain, and submit to the City for approval a comprehensive
computer-based Operation and Maintenance Report, as well as three (3) hard copies, for the System. The
Operation and Maintenance Report shall be prepared on an annual basis and be submitted to the City
within 30 days of the new calendar or contract year. The purpose of this Report will be to provide a year-
end summary of the operation and maintenance of the systems, and, shall include, but not be limited to,
the current condition of the System, a summary of the information provided in the Monthly Progress
Reports, as well as any additional information that is relevant and required by the City.
4.12
Audit of System
Within 120 days of the Commencement Date, the Operator shall conduct a complete System audit to
determine the condition of the systems. Such audit shall be presented to the City upon completion for
verification and approval of the conclusions drawn there from. Following the initial audit, subsequent
audits shall be performed by the Operator on a frequency proposed by the Operator, but in no case shall
an audit be performed less than every five years. The City shall be notified of the audit schedule and
offered an opportunity to participate directly and/or periodically. In any event, at the City's discretion, the
City may conduct its own audit at any time.
The Operator's Audit shall include a detailed, comprehensive survey, and inspection of the facilities to
identify the physical and operational conditions and general status of Repair of all equipment, buildings,
structures, pavements, grounds, utility lines and systems, spare parts inventories, operation and
maintenance records, etc. The Audit shall include a detailed report documenting the findings of the
survey/inspection. The report shall include an assessment of the current condition of each item or
component, its estimated remaining service life, and whether the current condition is consistent with the
maintenance and general upkeep requirements and expected normal wear and tear. An estimated cost for
Repair, renewal or placement shall be included for each item or component which is judged deficient.
Estimates shall include a reasonable contingency allowance that will vary depending on the nature of the
work required.
4.13
Summary of Reports
Several reports have been identified in the BMP as necessary for a well run utility to categorize, monitor,
and economically manage the System. Table 4-1 below summarizes the required reports and the
frequency each report shall be prepared and submitted to the City for review. It should be noted that the
below Table 4-1 is provided for convenience only. The Operator is required to prepare all reports and
documents as outlined in this BMP and as required by the regulatory agencies, regardless if the report is,
or is not, listed in Table 4-1.
2157407-1
4-6
City or Rahway
Best Management Practices Plan for the
Operation and Maintenance of the Potable Water System
Section 4
Table 4-1. Summary of Required Reports/Logs/Databases
Report
Water Quality Sampling Plan
Annual Water Quality Report
Annual Water Loss and
Conservation Plan & Quarterly
Reports
Operation and Maintenance Plan
Monthly Progress Report
Training Plan
Maintenance Log
Incident Log
GIS Database
Work Order
Emergency Response Plan
Asset Management Plan
Capital Improvement Plan
Equipment Report
Water Conservation and Drought
Management Plan
Residuals Disposal Plan
Annual Operation and
Maintenance Report
Audit of System
2157407-1
4-7
I
Fre<JUenq
I
City Provided Continuous
Digital Access
Reviewed Annually
Yes
Annually
Yes
Quarterly/ Annually
Yes
Annual
Yes
Monthly
Yes
Reviewed Annually
Yes
As Required
Yes
As Required
Yes
Annual and As Required
Yes
As Required
Yes
Reviewed Annually
Yes
Annual
Yes
Annual (5-YearRolling)
Yes
Annual
Yes
Annual
Yes
Annual
Yes
Annual
Yes
Within 120 days after the
Commencement Date and then
Yes
no less than every 5 years
SCHEDULE3
BILLING AND COLLECTIONS
3.1 BILLING AND COLLECTIONS
Provision of billing and collection services for the Water Supply System and the Sewer
Collection System is included within the Fixed Management Fee.
On and after the
Commencement Date, the Operator, as agent for the City, shall be responsible for the
preparation, maintenance and collection of all bills and invoices to the users of the Water Supply
System and Sewer Collection System as more fully described in this Schedule 3 and all costs
and expenses associated therewith are incorporated into the Operator's Fixed Management Fee;
provided however, that it is recognized that the City has the authority to enforce collection of
bills and invoices to users of the Water Supply System and Sewer Collection System through
liens and other remedies. The City shall cooperate in good faith with Operator with respect to
such enforcement activities. The Operator shall design the format and content (which shall be
reasonably acceptable to the City) of the bills for the Water Supply System and Sewer Collection
System. In addition, the Operator shall maintain a computerized billing and collections system
and customer information system (CIS) which provides, at a minimum, data on accounts such as
customer name, address, account type (residential or commercial), meter size, lists fire lines,
overdue accounts, and monthly billing cycles. The City acknowledges that the current bill
format is acceptable as of the date of this Agreement.
The Operator shall prepare, print, and deliver utility bills to the post office for mailing within
five (5) working days of the meter read out. The Operator shall also coordinate the preparation of
bills and include public service messages, when directed by the City, on bills.
The Operator shall assist the City in conducting one (1) lien sale per year at a date established by
the City and in coordination with the City's Tax Collector. Prior to providing the City with a list
of potential liens, the Operator shall request from the City and the City shall provide to the
Operator a copy of the City's most current vacant and abandoned property list. The Operator
shall indicate to the City if any of the proposed liens include properties contained on the City's
vacant and abandoned property list. The City is responsible for designating the tax status of
properties in its own system, and the Operator is entitled to rely on information furnished by the
City. The Operator is not required to track the tax status of various properties and is not
responsible for removing tax exempt properties from the lien sale.
The Operator does not have the authority to write off bills, and only the City has such authority.
When the City informs the Operator that a property is abandoned, the Operator shall be
responsible for shutting off the services and stopping billing for such property if so directed by
the City and upon such shut-off, such accounts shall not be included in the calculation of the
collection rate. Posting premises for shut off shall be subject to safety considerations and
availability of police protection, where reasonably required .The City shall provide a clear policy
as to when to stop billing for abandoned properties. All developers must be required to obtain a
construction meter and service to developers shall be billed at the standard applicable metered
rates. The Operator shall collect a deposit (to be placed in the City Controlled Account) to
2156938-1
guarantee the payment for metered water used for construction purposes where no advance
payments have been made. These deposits will be based upon the cost of the meter, plus the
estimated amount of water which may be used during construction. When the meter is returned
to the Operator is good condition, the outstanding deposit will be refunded without interest due,
less any amount due for unpaid bills.
The City shall notify the Operator of new subdivisions and any type of new property
construction, designating the block and lot.
The Operator shall provide to the City on an annual basis its SOC 2 report (or if such report is
superseded, a comparable successor report) covering the billing system that is used to perform
services under this Agreement.
3.2 ALLOCATION OF REVENUES
The Operator shall deposit on a daily basis all funds collected from the users into a City
controlled account (the "City Controlled Account") from which a Trustee (selected by the City)
( or City, if no Trustee is appointed) will disburse funds to the Operator and the City pursuant to
the terms of this Schedule 3. The Operator shall provide daily reconciliation of receipts and
evidence of deposits and maintenance of related accounts and databases. The Operator shall
supply a detailed transaction report for the entire year to support a year-end audit performed by
the City. If the Operator produces inaccurate reconciliation information to the City due to the
fault of Operator, the Operator shall reimburse all reasonable direct costs to the City arising out
of the Operator's production of the inaccurate reconciliation information. Circumstances where
reimbursement is warranted may include, but are not limited to, instances where the City is
caused to reimburse tax sale certificates and interest to lien purchasers, as a result of the
Operator's production of inaccurate reconciliation information to the City due to Operator fault.
If the Operator receives partial payments, the Operator shall first apply payments to any interest
and penalties (on wastewater service, then on water service), then to wastewater service, then to
water service. The City may change the order of hierarchy for partial payments on written notice
to the Operator.
The Trustee (selected by the City) (or City, if no Trustee is appointed) shall, from the City-
Controlled Account, pay to the Operator the Annual Service Fee in accordance with Schedule 5.
3.3 CUSTOMER SERVICE
The Operator shall respond, within 24 hours or the next business day following a holiday or
weekend, to all customer billing and collection questions, problems, and inquiries and shall
maintain a toll free telephone number for customers of the Water Supply System and the Sewer
Collection System to handle such questions, problems and inquires, as well as any emergencies,
as may arise. Customer shall be served in a prompt and courteous manner. The Operator shall log
all customer calls in its billing system under each customer's account information and shall
provide access ( one seat) to the City to view such data in the Operator's billing system.
2156938-1
Operator's monthly reports shall also include a summary of the types of calls received during the
prior 30 day period. Seasonal (1 st Q, 2nd Q, 3rd Q, 4th Q) and annual summaries shall be prepared
and maintained, and copies shall be made available to the City and included in the monthly and
annual reports. The Operator shall prepare and maintain, and provide the City, upon request, a
copy of the Operator's written policy in dealing with customer service and complaints relating to
billing and collection matters.
3.4 COLLECTION OFFICE
The Operator shall provide, within the downtown City business district, locations such as
grocery stores or pharmacies where customers of the Water Supply System and the Sewer
Collection System may pay their bills during normal business hours Monday through Friday. The
Operator shall also maintain a "drop box" at City Hall for customer use.
3.5 MUNICIPAL WATER SERVICE
During the Term of the Services Agreement, the Operator shall, at no cost or expense to the City,
other than payment of the Annual Service Fee, provide water service in accordance with this
Agreement to the Municipal Building and all other City offices and public and quasi-public
facilities, including but not limited to, the City Police Department and City Fire Department, as
well as to all fire-department related activities and all facilities identified in Schedule 2, Table 2-
1. The City shall be responsible to identify any such properties that are not metered. The
Operator shall install meters at such unmetered properties, and the City shall cooperate and assist
the Operator in contacting such facilities and securing their permission to install meters. Operator
shall produce a bill but no bill shall be delivered or presented to any properties identified in
Schedule 2, Table 2-1 as public properties. The City may, from time to time, supplement
Schedule 2, Table 2-1, to identify any properties acquired after Commencement of the Services
Agreement that fall into the City, other public and quasi-public category to which water service
shall be provided in accordance with this Section 3.5.
3.6 PERFORMANCE STANDARDS
The Operator shall operate billing and collection services to be in compliance with the specific
performance standards outlined in the Services Agreement and Schedules to the Agreement.
These include, but are not limited to, the performance standards stipulated in Table S3-1, the
billing and collection monitoring requirements stipulated in Table S3-2 and the reporting
requirements stipulated in Table S3-3 of this Schedule 3.
3.8 CITY CONTACT
The Operator shall designate a Billings and Collection contact person who shall be readily
accessible to the City to respond to any City billings, collection and customer service inquiries.
2156938-1
Table S3-1
Billing and Collection Performance Standards
Parameter
Reauirements
Comments
Customer Meter Readings
Quarterly
Meters read and
billed
Water and Sewer Billing
Within five (5) days of
meter readout
Water and Sewer Bill
>85% in the first year Based on rolling 12-
Collection
month average
Rates
and 90% each year
thereafter.*
*Note -
Public properties that are not subject to lien are excluded from this
calculation.
2156938-1
Table S3-2
Billing and Collection Monitoring Requirements
Type
Location/Frequency
Other Requirements
Billed consumption by
Quarterly
Ongoing program
customer class for water and
of
sewer
water
reconciliation
Customer historical water
Quarterly
Monitoring of
usage to
high/low
identify malfunctioning
readings and no
meters
us::itre
Customer
Included in monthly
Maintain log of
Inquiries/ Complaints
report (respond as per
escalated calls
Section 3.3 of
Schedule 3)
2156938-1
Table S3-3
Billing and Collection Reporting Requirements
Item/Parameter
Reoortin!! Requirement
Billing delinquency - 30 days
Include in accounts receivable
report submitted to City each month
Billing delinquency - 90 days
Include in accounts receivable
report submitted to City each month
Billing delinquency- 120 days
Include in accounts receivable
report submitted to City each
month.
17
I 21s693s-1
SCHEDULE4
COMPUTER INFORMATION SYSTEMS
CC&B - Customer Information System
Customer Care & Billing ("CCC&B") is a computerized enterprise customer billing system
handling customer operations processes. It is an Oracle-based product that is implemented in
hundreds of utilities and services millions of customer accounts worldwide. CC&B is used as
SUEZ's enterprise Customer Information System, processing bills, customer information,
account information, and providing robust reporting functions.
eRPortal Computerized Maintenance Management System (CMMS)
The eRPortal Software Group provides enterprise asset management and materials management
software products and Saas applications that enable companies to optimize operations, maintain
assets and infrastructure, and manage all related materials, resources and logistics. The software
has been developed with an architecture that provides customers with a solution that is
exceptionally easy to use; with an interface that is configurable based on an individual's daily
tasks and organizational role.
Hach Water Information Management Solution
SUEZ uses the Hach Water Information Management Solution (Hach WIMS™) reporting
system to manage our process and laboratory data and information. Our data management and
reporting systems allow us to manage the information and develop reports and scorecards that
measure our performance and facilitate reporting to the City and regulatory agencies.
ESRI Geographic Information System (GIS)
The Rahway Water GIS system uses the ESRI GIS platform provided by a third party. ESRI is
the industry standard for GIS and is SUEZ' GIS platform. SUEZ will utilize the GIS along with
the CMMS to track assets and manage data. SUEZ will assist with maintaining and updating the
City's GIS system, integrate the system into routine daily use, provide an approach to maintain
and upgrade the system over time and improve the overall reliability and performance of the
system.
The Operator may change the above systems at any time, provided the functionality of the new
systems is overall the same or better than the systems described above, and the new systems
otherwise meet the requirements of this Agreement.
I 21s693s-1
18
SCHEDULES
RA TES FEES AND CHARGES
5.1
FIXED MANAGEMENT FEE
The Fixed Management Fee for the Contract Year beginning on the Commencement Date shall
be $3,517,017. The Fixed Management Fee shall be increased each Contract Year by the Index
Factor as set forth in Section 5.3 of this Schedule 5. A portion of the Fixed Management Fee
includes an Annual Maintenance Cap as set forth in Section 5.8 of this Schedule 5; for the
avoidance of doubt, the Parties acknowledge that the Annual Maintenance Cap is not an
additional amount, but is part of the Fixed Management Fee. As of the Commencement Date,
the Annual Maintenance Cap is $500,100. The Annual Maintenance Cap shall be increased each
Contract Year by the Maintenance Index Factor, defined below. Effective on the day in which
the Water Treatment Plant Upgrade Project achieves Substantial Completion, as such term is
defined in the City's contract with Tomar Construction, LLC as of the date of this Agreement,
(1) the Fixed Management Fee will be increased by the amount of $403,386 (it being understood
that the Operator is not responsible for electricity and chemical costs associated with the testing
of the Water Treatment Plant Upgrade Project); and (2) the Annual Maintenance Cap shall be
increased by the amount of $150,900, both of the foregoing to be implemented on a pro rata
basis for a partial Contract Year. Each of the foregoing amounts in the previous sentence is
stated in 2016 dollars and shall be subject to adjustment by the Maintenance Index Factor as
defined in Section 5.3 of this Schedule 5 when the increase takes effect. For the avoidance of
doubt, the Fixed Management Fee also includes the electricity cost component. Increases or
decreases in electricity consumption shall not be subject to adjustment; only the changes in
electric rates charged by PSE&G, or other electric provider, shall be adjusted as Pass-through
Charges or Pass-through Credits. The fee increases set forth in this paragraph applicable to the
Water Treatment Plant Upgrade Project are further subject to equitable adjustment upon
engineering review of the final implementation of the Water Treatment Plant Upgrade Project to
the extent there are material changes to the revised plans and documentation furnished to
Operator by the City on April 28, 2016, including changes of 10% =/- in the following
assumptions:
19
I 21s693s-1
GE membrane cost assumptions
Electric
kWh/MG
313
Sewer discharge
MG/yr.
9.2
T/yr. BOD
1.8
T/yr. TSS
1.9
Chemical Consumption
Citric acid
0.2
mg/I
Sodium Hypochlorite
3.0
mg/I
Sodium Bisuifite
0.7
mg/I
Caustic
0.4
mg/I
Sulfuric acid
0.4
mg/I
5.1.a. RESERVED
5.2
ANNUAL SERVICE FEE; PAYMENT TERMS
The Annual Service Fee is composed of the sum of the Fixed Management Fee and Pass-through
Charges or Pass-through Credits, as the case may be. The City shall pay to the Operator one
twelfth of the Fixed Management Fee on the first day of each month following the
Commencement Date throughout the term of the Agreement for Services performed in the
preceding month. Partial months shall be prorated. All other payments to be made by the City to
the Operator pursuant to this Services Agreement shall be made within forty-five (45) days after
receipt of invoice. The City will review Operator's invoices, and if the City questions any items,
the City shall notify Operator within twenty-one (21) days of receipt of the invoice. All amounts
in dispute shall be resolved by the dispute resolution procedure set forth under Section 10.24 of
this Services Agreement. Failure to make payments on a timely basis shall be an event of default
pursuant to Article IX of the Agreement.
The Operator shall be paid a Fixed Management Fee for the Services that will be performed by
the Operator as set forth in Section 5.1, above. To the extent Rev. Proc. 2017-13 imposes limits
on the Operator's ability to perform the Services and/or receive compensation for such Services,
the City and Operator shall make the appropriate adjustments in the method of compensation so
that the City will receive such Services and Operator shall receive its corresponding
compensation. In no event shall any adjustment be made until the Parties agree that such
adjustment is warranted and until such time the Parties agree on the actual adjustment through a
contract amendment.
5.3
INFLATION ADJUSTMENT
20
I 21s693s-1
Annual Adjustments: At the beginning of each Contract Year, beginning January 1, 2018, the
Fixed Management Fee shall be increased each year by the Index Factor (the "Index Factor")
defined as follows:
(1) Labor Cost Component, representing 49% of the Fixed Management Fee,
shall be increased each Contract Year based upon the "ECI Index" for price-
level changes.
The ECI is the current Employment Cost Index, Total compensation for
Private industry workers in Northeast, Index ID CIU2010000000210I (B), as
published by the U.S. Department of Labor, Bureau of Labor Statistics.
(2) Non-Labor Costs Component, representing 41 % of the Fixed Management
Fee, shall be increased each Contract Year based upon the "CPI Index" for
price-level changes.
The CPI is the current Consumer Price Index for all urban consumers in the
Northeast Area, ID CUUR0l00SA0, as published by the U.S. Department of
Labor, Bureau of Labor Statistics.
Additionally, the Fixed Management Fee shall be increased each Contract Year, beginning
January 1, 2018, to reflect any documented increases or decreases in electric rates for the prior
Contract Year, with such change to be implemented on the first day of the Contract Year
following such increase. For the avoidance of doubt, any increase in electric rates 1s a pass-
through and not subject to escalation by the Index Factor.
In each Contract Year, beginning January 1, 2018, the Annual Maintenance Cap component of
the Fixed Management Fee shall be escalated by the Maintenance Index Factor, defined as a
blended rate of 45% CPI and 55% ECI.
All Annual Adjustments made pursuant to this Section 5.3 shall be calculated on a twelve-month
basis ending on the first day of the Contract Year in which such change takes effect. The new
adjusted rate shall be effective on the first day of the Contract Year even if the calculation made
pursuant to the terms hereof is not computed by the Operator until such information is made
available (such information typically being available one month thereafter). In the event that any
of the foregoing indices should cease to become available, the most closely comparable index
then available shall be used by the Operator, as agreed to by the City.
A sample calculation is attached hereto as Exhibit 5.3a.
Other Pass-Through Charges and Credits shall be invoiced or credited to the Annual Service Fee
as incurred.
5.4
USER CHARGES
21
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The City retains responsibility for setting rates and charges. The Operator agrees to implement
revised rates and charges on a date specified by the City within thirty (30) days after notification
from the City; except for structural rate changes, which shall be implemented within sixty (60)
days after notification from the City.
Effective on the Commencement Date and as of each annual anniversary thereafter throughout
the term of the Agreement, the City agrees, to the extent permitted by law, to increase its rates
for the supply of water services to customers of the Water Supply System to at least the rates
required to cover the Annual Service Fee to be paid to the Operator for services provided.
Nothing herein shall be construed to restrict the City from establishing rates for the supply of
water service to the customers of the Water Supply System that are in excess of the rates
required to cover the Annual Service Fee.
5.5
CONNECTION FEES
The Operator shall be responsible for the collection of all connection fees and tapping fees.
The City shall be the sole authority in determining and establishing the connection fees to be
charged to new water customers connecting with the Water Supply System.
All such connection and tapping fees shall be paid to, and shall remain the property of, the City
including those connection fees paid after the commencement date of the Services Agreement.
5.6
REV. PROC. 2017-13 REQUIREMENTS
Rev. Proc. 2017-13 limits the amount of any variable fee payable to Contractor to 20% of the
Annual Service Fee. For purposes of applying this limitation, the following items shall be
subtracted from the Annual Service Fee:
(i) Pass-through Charges/Credits
(ii) Allocable portion of Cost of Capital Improvements under Schedule 15 payable to
third parties, amortized in equal amounts over the term of the Agreement.
(iii) Operator labor associated with Capital Improvements under Schedule 15 or otherwise
contemplated at the time of execution of this Agreement, amortized in equal amounts
over the term of the Agreement.
5.7 VARIABLE COMPONENTS OF FEE
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The following items shall be considered variable components of the Operator's fee for purposes
of Rev. Proc. 2017-13:
(i) Adjustments in fee attributable to changes in water usage.
(ii) Allocable portion of cost of Capital Improvements including internal labor costs
under Schedule 15 retained by Operator and not payable to third parties, amortized in
equal amounts over a 5-year period.
5.8 ANNUAL MAINTENANCE CAP
The Annual Maintenance Cap is defined and discussed in Section 6.2 of the Agreement.
The
Annual Maintenance Cap includes both an above ground amount and a below ground amount.
The relative estimated percentages are shown in the following table:
Above Ground
Below Ground
Before Plant Upgrades Project $135,000
$365,100
completion
After Plant Upgrades Project $285,900
$365,100
completion
The foregoing percentages are indicative only, and all funds are to be used and made available
for maintenance related activities in accordance with the Agreement.
Attached Exhibit 5.8A contains examples of items that fall within the Annual Maintenance Cap.
The examples provided are not intended to be all inclusive of the types of maintenance activities
eligible to be paid for with funds from the Annual Maintenance Cap.
23
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24
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Exhibit 5.3a
Sample Calculation of Annual Service Fee
Effective January 1, 2018
AFn=AFn-l+(IFn*AFn-1)+ EPTCn
with IFn = CPIF*(CPin-1/CPin-2 - l)+ECIF*(ECin-1/ECin-2 - 1)
and EPTCn = (NECn-1- NECn-2)*TECn-1
Sample Calculation
AFn = $4,000,000 + (1.08%*$4,000,000) + 26,000 = $4,069,200
with IFn = 41 %*(260/258 - 1) + 49%*(130/128 - 1) = 1.08%
and EPTCn = (0.120-0.110)*2,600,000 = 26,000
Where,
Ref
Definition
AFn=
Annual Fee for Contract Year "N"
AFn-1 =
Annual Fee for Contract Year ''N-1"
IFn=
Adjustment Factor for Contract Year "N"
EPTCn=
Electricity Pass-Through Charge or Credit for Contract Year ''N"
CPIF=
The percentage of the Fixed Management Fee attributable to the
Non-Labor Component adjusted for changes in the CPI and
hereunder equal to _ %.
CPin-1=
The CPI value occurring in the last month of the Contract Year
preceding the Contract Year with respect to which a calculation
is to be made hereunder.
CPin-2=
The CPI value occurring in the last month of the Contract Year
two years (2) preceding the Contract Year with respect to
which a calculation is to be made hereunder.
ECIF=
The percentage of the Fixed Management Fee attributable to the
Labor Cost Component adjusted for changes in the CPI and
hereunder equal to _ %.
ECin-1=
The average ECI values occurring in the four ( 4) quarters
preceding the Contract Year with respect to which a calculation
is to be made hereunder.
I 2156938-1
$ample Calculation
If o be calculated
~4,000,000
Jo be calculated
If o be calculated
i41%
~60
258
~9%
130
25
Ref
Definition
Sample Calculation
ECin-2=
The average ECI values occurring in the four (4) quarters of the
128
Contract Year two years (2) preceding the Contract Year with
respect to which a calculation is to be made hereunder.
NECn-1=
The average net cost of electricity per Kwh occurring in the
$0.120/Kwh
Contract Year preceding the Contract Year and calculated as the
ratio of the total cost of electricity and the total electricity
consumption in the Contract Year preceding the Contract Year
NECn-2=
The average net cost of electricity per K wh occurring in the
$0.110/Kwh
Contract Year two years (2) preceding the Contract Year and
calculated as the ratio of the total cost of electricity and the total
electricity consumption in the Contract Year two years (2)
preceding the Contract Year
TECn-1=
The total electricity consumption in the Contract Year preceding
2,600,000 Kwh
the Contract Year
26
2156938-1
Exhibit 5.8A
Examples - Annual Maintenance Cap
Activities included in the Annual Maintenance Cap
Corrective work for the System such as:
Mechanical, electrical and plant equipment maintenance (minor wiring, minor
repairs to pumps and motors, minor repairs to pressure vessels, changing chemical
feeder)
Water tanks inspection
Replacement of broken valves
Replacement of hydrants
Repair of water main breaks
Repair of service line
Activities not included in the Annual Maintenance Cap
Capital work such as:
I 2156938-1
Replacement of pumps
Replacement of water meters
Replacement of process equipment
Replacement of filter media, GAC and membranes
Major replacement program for water main, valves or hydrants
Cleaning, painting and rehabilitation of water tanks
27
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SCHEDULE 6
STAFFING
City of Rahway
Pi oyed 1Mn\3QL't
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Rahway Valley Sewerage
Authority (RVSA)
Significant Indirect User
SIU Dischar e Permit
Water Allocation Permit -
Permit Extension Act -
Rahwa Cit Water De t.
NJPDES - Rahway Water
Treatment Plant -Discharge
to Groundwater Permit - 12
Potable WTP Basins &
Drying Beds (Gen.
Perm.#NJ0108456
SCHEDULE7
PERMITS
097
5339 / WAP030001
NJG0224693
3 year
10 year
5 year
29
SCHEDULES
INSURANCE
COMMERCIAL GENERAL LIABILITY
General Aaaregate:
$2,000,000
Products & Completed Ops Aggregate:
$2,000,000
Personal & Advertising Injury:
$1,000,000
Each Occurrence:
$1,000,000
Fire Damage (Any one Fire):
$300,000
Medical Expense (Any one Person):
$10,000
Coverage Written on Occurrence Basis:
Yes
COMMERCIAL AUTOMOBILE
Liability
$1,000,000
Non-Owned & Hired Liability
$1,000,000
Personal Injury Protection:
Statutory
Uninsured Motorists:
Statutorv
Underinsured Motorists:
Statutory
WORKERS' COMPENSATION
Workers' Compensation-Statutory Coverage
Employer's Liability
Each Accident:
$1,000,000
Disease - Each Employee:
$1,000,000
Disease - Policy Limit:
$1,000,000
EXCESS LIABILITY
(Excess of General Liability, Automobile Liability and Employers Liability)
Each Occurrence
$25,000,000
Annual Aggregate
$25,000,000
NOTE: Any combination of primary and excess liability totaling $25,000,000 per
accident/occurrence and $25,000,000 aggregate will be acceptable.
COMMERCIAL CRIME
I Employee Dishonesty
1 s1,ooo,ooo
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30
ENVIRONMENTAL (POLLUTION) LIABILITY
Each Pollution Incident
$5,000,000
Annual Aggregate
$5,000,000
PROFESSIONAL/ERRORS AND OMISSIONS LIABILITY
Each claim
$5,000,000
Annual Aggregate
$5,000,000
CITY COVERAGECOMMERCIAL PROPERTY/EQUIPMENT BREAKDOWN
$109,929,404
Blanket Limit Per Occurrence-Real & Personal Property
$1,500,000
Blanket Business Income
$125,000-Monthly
Limitation
$1,000,000
Blanket Extra Expense
Special/All Risk
Perils Insured
Re lacement Cost
Valuation
$5,000,000
Flood-Each Occurrence/Annual Aggregate
(Applies to Properties located in Flood Zones X or C with flood scores
of 30 or less)
$2,000,000
Flood-Each Occurrence/Annual Aggregate
(Applies to Properties located in Flood Zones B, XB, X500, And on a
FEMA Flood Rate ma Shaded X
Flood & Earthquake, Per Occurrence-Property Damage
Business Income
Flood-Per Location for properties located in Flood Zones B, XB, X500,
And on a FEMA Flood Rate map Shaded X
72 Hours
Business Income
The operator shall assist the City with the provision of underwriting information for the purposes of
obtaining their property insurance. The City will rely on its first party insurance coverage to pay for any
loss or damage and the operator shall reimburse the City for the deductible amount ($100,000 per
occurrence) in the event such loss or damage is the result of Operators negligence.
I 21s6938-1
31
SCHEDULE9
AFFIRMATIVE ACTION REQUIREMENTS
MANDATORY EQUAL EMPLOYMENT OPPORTUNITY LANGUAGE
N.J.S.A 10:5-31 et seq. (P. L. 1975, c. 127)
N.J.A.C. 17:27
GOODS, PROFESSIONAL SERVICE AND GENERAL SERVICE CONTRACTS
During the performance of the Services, the Operator must agree as follows:
a.
The Contractor or subcontractor will not discriminate against
any employee or applicant for employment because of age, race, creed, color, national
origin, ancestry, marital status, affectional or sexual orientation, gender identity or
expression, disability, nationality or sex. Except with respect to affectional or sexual
orientation and gender identity or expression, the Contractor will ensure that equal
employment opportunity is afforded to such applicants in recruitment and employment,
and that employees are treated during employment, without regard to their age, race,
creed, color, national origin, ancestry, marital status, affectional or sexual orientation,
gender identity or expression, disability, nationality, or sex. Such action shall include, but
not be limited to the following: employment, upgrading, demotion, or transfer; recruitment
or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The Contractor
agrees to post in conspicuous places, available to employees and applicants for
employment, notices to be provided by the contracting officer setting forth provisions of
this nondiscrimination clause.
b.
The Contractor or subcontractor, where applicable, will, in all
solicitations or advertisements for employees placed by or on behalf of the Contractor,
state that all qualified applicants will receive consideration for employment without regard
to age, race, creed, color, national origin, ancestry, marital status, affectional or sexual
orientation, gender identity or expression, disability, nationality or sex.
c.
The Contractor or subcontractor will send to each labor union
or representative of workers with which it has a collective bargaining agreement or other
contract or understanding, a notice, to be provided by the agency contracting officer
advising the labor union or workers' representative of the Contractor's commitments
under this act and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
d.
The Contractor or subcontractor, where applicable, agrees to
comply with the regulations promulgated by the Treasurer pursuant to N.J.S.A. 10:5-31
et seq., as amended and supplemented from time to time.
e.
The Contractor or subcontractor shall furnish such reports or
other documents to the affirmative action office as may be requested by the office from
Exhibit 9 Page 1
time to time in order to carry out the purposes of these regulations, and public agencies
shall furnish such information as may be requested by the affirmative action office for
conducting a compliance investigation pursuant to N.J.A.C. 17:27-1 et seq.
f.
The Contractor or subcontractor agrees to attempt in good faith
- to employ minority and female workers consistent with the applicable county employment
goals prescribed by N.J.A.C. 17:27-5.2 promulgated by the Treasurer pursuant to
N.J.S.A. 10:5-31 et seq., as amended and supplemented from time to time or in
accordance with a binding determination of the applicable county employment goals
determined by the affirmative action office pursuant to N.J.A.C. 17:27-5.2 promulgated by
the Treasurer pursuant to N.J.S.A. 10:5-31 et seq., as amended and supplemented from
time to time.
g.
The Contractor or subcontractor agrees to inform in writing
appropriate recruitment agencies in the area, including employment agencies, placement
bureaus, colleges, universities, labor unions, that it does not discriminate on the basis of
age, creed, color, national origin, ancestry, marital status, affectional or sexual orientation,
gender identity or expression, disability, nationality or sex, and that it will discontinue the
use of any recruitment agency that engages in direct or indirect discriminatory practices.
h.
The Contractor or subcontractor agrees to revise any of its
testing procedures, if necessary, to assure that all personnel testing conforms with the
principles of job-related testing, as established by the statutes and court decisions of the
State of New Jersey and as established by applicable Federal law and applicable Federal
court decisions.
i.
In conforming with the targeted employment goals, the
Contractor or subcontractor agrees to review all procedures relating to transfer,
upgrading, downgrading, and layoff to ensure that all such actions are taken without
regard to age, creed, color, national origin, ancestry, marital status, affectional or sexual
orientation, gender identity or expression, disability, nationality or sex, and conform with
the applicable employment goals, consistent with the statutes and court decisions of the
State of New Jersey, and applicable Federal law and applicable Federal Court decisions.
j.
The Contractor shall submit to the public agency, after
notification of award, but prior to execution of a goods and services contract, one of the
following three documents:
Letter of Federal Affirmative Action Plan Approval
Certificate of Employee Information Report
Employee Information Report Form AA302 ( electronically provided by
the Division and distributed to the public agency through the
Division's
website at www.state.nj.us/treasury/cont{act compliance}
k.
The Contractor or its subcontractors shall furnish such reports
or other documents to the Division of Purchase and Property, CCAU, EEO Monitoring
Program for conducting a compliance investigation pursuant to Subchapter 10 of the
Administrative Code at N.J.A.C. 17:27.
Exhibit 9 Page 2
By:
. tJv--f
---:-=-:--'c-~-;:--:-:..._:.._~(_;;;:;;;t_-=...:~:.__ __
(Sig
re' of Authoriz
Representative)
Name: _ __;C;;;_c_,ro_}~~f?:::..-_· _ff-....:._to_n_~ o __ _
(Print or Type)
Title: --~..1£../..:::.::LC=,e-~...L(
-=---,e __
s.l_d_~_-1-_---Ltl!....:.(.(___:::__
Date: __
____;:5:;__-.!.,..;l (j~--~8:_:0=--:...t ......J1L-__
Exhibit 9 Page 3
SCHEDULE 10
EQUIPMENT AND CHEMICALS INVENTORY
[Note: The City is in the process of compiling a complete Equipment and Chemical Inventory
and when complete this Schedule 10 will be incorporated by mutual agreement.
35
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I 21s693s-1
SCHEDULE 11
Reserved
36
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SCHEDULE 12
Reserved
37
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SCHEDULE 13
CAPITAL IMPROVEMENTS
Reserved
38
SCHEDULE 14
FORM OF ANNUAL O&M PLAN
Suez Rahway O&M Plan shall include:
Descriptions of Facilities
o
The process or system including its key components
Start-Up and Normal Operating procedures
o
Adjustments and settings, interface with other WTP systems, monitoring checklists
Planned Maintenance Program
o
Equipment summary including nameplate data, supplier/local representative and
manufacturer
o
Preventive, predictive and corrective maintenance scheduling and documentation
Records and Reporting System
Sampling and Analysis program and Compliance Monitoring
Public Notification Requirements
Staffing and Training
Environment, Health and Safety Program
Emergency Plan and Operating Procedures
I 21s693s-1
o
Procedures to be followed in the event of WTP or system upset conditions and/or
emergencies
o
Procedure to be followed in the event the interconnection needs to be adjusted
39
SCHEDULE 15
PROCUREMENT PROCEDURES
Procurement Procedures
1. Competitive procurement
The Operator shall competitively procure the goods and services that will result in Pass-Through Charges
to the City. Competition for procurement is required for procurement worth $50,000 and above.
Competitive procurement requires a minimum of three (3) quotes or bids; and also implies the selection of
the "best value" bid. Not necessarily the lowest price.
2. Non-competitive procurement
The City and The Operator acknowledge situations where competitive procurement is not feasible,
relevant or practical such as the following: sole or single source vendor situations; when the cost of the
goods or services is an amount is less than $50,000; and emergency purchases made to avoid work
stoppage, downtime, injury to persons or property or unusual costs. In cases of emergency, the Operator
shall as soon as practicable, notify the City Engineer or Business Administrator regarding the estimated
costs and nature of any work that is anticipated to exceed $50,000. Notification via e-mail shall be
acceptable, provided such email is supported by relevant back-up documentation.
3. Documentation to be Retained by the Operator
For procurements in excess of $50,000, upon request by the City, the Operator shall provide to the City
the particulars of the project and bid process (i.e. scope of goods or services, contract template, bid list,
price sheet and bid format, bid results and evaluation, an estimate of the cost of the goods or services
supported by relevant back-up documentation, etc.).
The Parties recognize that procurements of services may be accomplished on an annual or semi-annual
basis in order to secure qualified vendors, who may then perform services through task orders at agreed
upon pricing under Operator's direction.
40
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SCHEDULE 16
MINIMUM FINANCIAL CRITERIA
1.
A net worth for each of the three (3) most recent reviewed financial statements of
at least Ten Million ($10,000,000) Dollars.
2.
Pre-tax earnings for the two (2) out of the three (3) most recently reviewed
financial statements of at least One Million ($1,000,000) Dollars per year.
3.
Unencumbered cash and/or cash equivalents (such as marketable securities) of
at least Five Million ($5,000,000) Dollars as of the date of its most recent
reviewed financial statement. A portion of the "Cash Equivalent" can include an
unencumbered line of credit up to Two Million Dollars ($2,000,000) that can be
accessed during the term of the Agreement. If the Operator determines to satisfy
the "Cash Equivalent" through use of the unencumbered line of credit, the
Operator shall submit a letter from an authorized representative evidencing the
current existence of such a line of credit and verifying the encumbered and
unencumbered portions thereof and the ability of the Operator to access such
line of credit during the term of the Agreement. If the bank's letter qualifies the
Operator's ability to access the line of credit on the absence of any events of
default by the Operator, the bank must agree to (and acknowledge such
agreement in the letter) notify the City upon the occurrence of an event of default
by the Respondent. Notification of an event of default will entitle the City to seek
additional security from the Operator, or the Guarantor and may terminate the
Agreement in accordance with the terms contained therein.
41
1.
2.
Experience
SCHEDULE 17
MINIMUM TECHNICAL CRITERIA
(a)
Operator shall have been in the business of providing the Services for similarly
sized water supply systems for at least five (5) years or shall demonstrate, by
virtue of operating and maintaining its own facilities, equivalent experience.
(b)
Operator shall currently have under successful operation, either by virtue of
ownership or service contracts, at least two surface water treatment plants of
6.0MGD or greater capacity, three storage tanks, one raw and one finished water
pumping station, one gravity membrane / filter plant, and one water distribution
system serving a population of at least 28,000 persons.
Personnel
(a)
Operator shall currently have in its employ, and available to provide the Services
required under this Agreement, at least three supervisory personnel experienced
in providing supervision, troubleshooting, evaluations, and other technical
information in support of operation and maintenance of water facilities.
(b)
Operator shall currently have in its employ, and available to provide the Services
required under this Agreement, at least three supervisory personnel with current
public water treatment and distribution system license classification pursuant to
N.J.S.A. 58:11-64 et. seq. and N.J.A.C. 7:10-13 of W3 or higher for water
distribution
(c)
Operator shall currently have in its employ, and available to provide the Services
required under this Agreement, sufficient technical, managerial, engineering,
administrative, office, field, clerical and accounting staff to efficiently and
effectively render the Services as specified herein.
3.
Vehicles/Equipment
Operator must own or lease, or evidence a commitment to own or lease, a sufficient
number and type of vehicles and equipment as necessary to render the required
Services. A list of all such equipment and vehicles shall be provided.
4.
Operation and Management Experience
I 21s693s-1
(a)
Operator shall supply evidence of the ability to conduct plant and system
evaluations and engineering reviews and to implement improvements in
operations and maintenance practices to improve performance, efficiency,
reliability, and reduce operation and maintenance costs.
(b)
Operator shall provide information demonstrating past experience with the New
Jersey Department of Environmental Protection and the United States
Environmental Protection Agency in regard to compliance with all regulatory
requirements and submissions, and in-depth knowledge of the Safe Drinking
Water Acts, Clean Water Acts and State of New Jersey regulatory requirements.
(c)
Operator shall provide evidence of experience in developing and implementing
emergency contingency plans.
42
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(d)
Operator shall provide evidence of experience in developing operating and
maintenance manuals.
(e)
Operator shall indicate its approach to sharing information with the City relative to
technical, budgetary and financial matters.
(f)
Operator should demonstrate prior experience with the development and
implementation of cost-effective system improvements using a guaranteed
performance contracting approach for potable water systems of similar size to or
larger than the City's.
(g)
Operator shall demonstrate prior experience with water supply systems condition
assessments, as well as the ability to build on assessment programs utilized by
the City and the operator in the prior engagement.
(h)
Operator shall have the ability to provide additional support services to flexibly
support unanticipated needs that may arise over the course of the engagement.
43
SCHEDULE18
NJDEP MOA REQUIREMENTS
The City and the New Jersey Department of Environmental Protection ("NJDEP") entered into a
Memorandum of Agreement, dated December 4, 2015, a copy of which is included in this
Schedule 18, ("MOA''). The MOA requirements for which the Operator shall be responsible are
included in the Table set forth below:
NJDEP MOA REQUIREMENTS AND RESPONSIBILITIES BETWEEN SUEZ AND THE CITY OF
RAHWAY
MAY 10, 2016
CONDITIONS
DESCRIPTION
RESPONSIBILITY
1
The foregoing recital clauses are incorporated herein.
-
2
Rahway agrees to adopt and enforce an outdoor water conservation
City - Completed
ordinance which limits irrigation to a two-day per week watering
schedule and restricting hours of lawn irrigation.
3
Rahway agrees to submit quarterly progress reports to the Department
City - Completed
describing its efforts to adopt a water use restriction ordinance if an
ordinance is not adopted by November 30, 2015.
4
Rahway agrees to test and maintain its emergency water supply system
Suez
interconnections in accordance with N.J.A.C. 7: 19-6.9 to help ensure the
interconnections remain operational and available in the event of an
emergency.
5
Rahway agrees to comply with the water allocation limits of 240 MGM
Suez
with a maximum diversion rate of 7,000 gallons per minute as specified
in its Water Allocation Permit No. 5339 at all times.
6*
By June 1, 2017, Rahway shall submit for NJDEP review, an Asset
City/Suez
Management Plan ("Plan") for its water system, which Plan shall assess
the current state and remaining useful life of Rahway's water supply
assets to ensure an adequate reinvestment in and rehabilitation of system
infrastructure to facilitate long-term viability of the water system. At a
minimum, the Plan will consist of a defined level of standards, an asset
inventory/mapping/condition assessment, asset vulnerability/criticality
determination, a prioritized action plan, and long-term funding strategy.
Guidance on the essential components of developing an effective Plan
can be found at www.ni.gov/dep/watersuooly/pdf/guidance-amp.pdf.
7*
Implementation of the Plan shall begin no later than two hundred seventy
City/Suez
(270) days from the time of submission of the Plan.
8
Upon the Department's execution of this MOA, which acknowledges
City/Suez
Rahway is in the process of addressing infrastructure improvements set
forth in the Schedule at Table I to address its firm capacity deficit
demands in accordance with N.J.A.C. 7:10-1 et. seq., the Department
agrees to process water main extension permit applications in accordance
with N.J.A.C. 7: 10-1 l. lO(b) for the Meridia Brownstones, Domoch II
(Main & Monroe) and Rahway Residences for the Arts projects, or
portions thereof, upon the Department receiving administratively and
technically complete applications as determined by the Department. The
Department may approve such water main permit applications provided
that the total peak day water demand does not exceed the "Allowable
New Project Demand" limit as shown in the Table 1 below based on the
completion of infrastructure improvements.
9
Rahway may substitute, in its sole discretion, other development projects
City
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for those listed in Paragraph 8, so long as such projects do not exceed the
Allowable New Project Demand as show in Table 1, including
connections for single family residences on pre-existing individual lots
which may or may not require a water main extension permit pursuant to
NJ.AC. 7:10-11.I0(b). Rahway shall notify the Department in writing
of any project substitutions listed in paragraph 8 above, and remove the
previously designated project from designated project consideration.
10
Within thirty (30) calendar days after providing water service connections
City
to each Project or portions thereof identified in paragraph 8 or residences
or other projects in paragraph 9, Rahway shall notify the Department in
writing: the name/location of the Project; portions, or residence(s); the
number of connections; the projected average day and peak day water
demand for the Project or residence(s); and the basis for the calculation of
the water demand in accordance with NJ.AC. 7:10-1 l.5(e).
11
No additional connections beyond those described herein shall be made
City
until such time as the Department determines in writing that the firm
capacity deficit has been permanently resolved by Rahway.
12
The following individual shall be the Rahway contact for the Department:
City
1. James R. Housten Jr., PE & PLS, PP, CME, City Engineer
The following individual shall be the Department's contact for Rahway:
1. Joseph Mattie, NIDEP, Bureau of Water Systems Engineering
13
Rahway will not be in default of any provision of this Agreement, or
City/Suez
liable for failures in performance resulting from the following force
majeure acts or events: acts of God, civil or military authority; civil
disturbance, war, strikes, fires, earthquakes, other catastrophes beyond the
control of Rahway. The burden of proving that any delay is caused by
circumstances beyond the control of Rahway and the length of such delay
attributable to those circumstances shall rest with Rahway. If the
Department determines that either Rahway has not complied with the
notice requirements of the preceding paragraph, or the event causing the
delay is not beyond the control of Rahway, failure to comply with the
provisions of this Agreement shall constitute a breach of this Agreement
and further connection will not be permitted.
14
Rahway shall notify the Department in writing within seven (7) calendar
City
days after either Rahway or its consultant become aware of any delay or
anticipated delay, regarding the construction of the membrane filtration
and interconnection projects as reflected in the Schedule. The notice
shall describe the anticipated length of the delay, the precise cause or
causes of the delay, any measures taken or to be taken to minimize the
delay, and the time required to take any such measures to minimize the
delay. Rahway agrees to take all necessary action to prevent or minimize
any such delay. The Department may extend the time for performance
for a period no longer than the delay resulting from such circumstances,
unless the delay is a result of any event specified in paragraph 13 above
of this MOA, or the Department agrees in writing to further extend the
time for performance for good cause.
15
If the Department determines in writing that Rahway is not making
City
sufficient, timely progress in meeting the tasks set forth in the Schedule,
the Department may unilaterally terminate this Agreement if Rahway
fails to rectify any such deficiencies within 60 days after receipt of
written notice by the Department. Nothing in this Agreement shall
constitute a waiver by Rahway of any statutory or common law defenses,
or of its right to contest any such decision by the Department specified in
this paragraph to the Office of Administrative Law ("OAL").
16
Notwithstanding any other provision of this MOA, if the Department
City
45
2156938-1
determines in writing that the public health and safety is at risk because
ofRahway's firm capacity deficit, the Department may rescind this
Agreement and/or require Rahway to take all actions necessary to correct
the firm capacity deficit. This may include Rahway modifying its
existing contracts, impose mandatory water restrictions, and/or the
execution of a water purchase agreement that guarantees Rahway will
purchase and the water provider will deliver additional water sufficient to
meet the demands of the Rahway public water system as determined by
the Department and/or requiring Rahway to take or arrange for the taking
of any and all additional action in accordance with N.J.A.C. 7:19-11 et.
seq. and N.J.A.C. 7:10-1-1 et. seq. Nothing in this Agreement shall
constitute a waiver by Rahway of any statutory or common law defenses,
or of its right to contest any such action by the Department specified in
this paragraph to the OAL.
17
This MOA shall be governed by the laws of the State of New Jersey, and
City/Suez
construed as if it were drafted by both parties and both parties waive all
statutory and common law presumptions which would serve to have this
document in favor, or against, either party as the drafter hereof.
18
No modifications or waivers of this MOA shall be valid except by written
City
amendment duly executed by both parties hereto.
19
This MOA may be executed in counterparts, each of which shall be
City
deemed an original and when taken together, shall constitute one and the
same instrument.
20
Rahway shall submit to the Department, along with the executed original
City - Completed
MOA, the appropriate documentary evidence, such as a resolution, from
the City of Rahway's Council that the signatory for Rahway has the
authority to enter into this MOA.
21
This MOA shall become effective upon the execution of both parties
City - Completed
hereto.
*Subject to date change upon approval of a revised project schedule by NJDEP
Note: All references to SUEZ and City responsibilities under the MOA in this Schedule 18 are subject to the
other terms and conditions of the Agreement, in particular relating to Repairs and Capital Improvements.
46
I 21s6938-1
I 21s693s-1
SCHEDULE 19
Middlesex Water Contract
47
('
1
AGREEMENT
for a Supply of Water
between
MIDDLESEX WATER COMPANY
and the
· CITY OF RAHWAY
Entered into as of August 31, 2015
This Agteemeiit (hereinafter' l'efefred to as the "Agreement") is entered inro as of
this 3 i5t day of Augttst, 2015 between:
and the
MIDDLESEX WATER COMPANY, a publio utility and corporation organized .
under the laws bfthe State of New Jersey, with offices at 1500 Ronson Road,
Iselin, New Jersey (herefr1after referred to as ''Middlesex")
·
CITY OF RAHWAY, a municipal cotporatiori of the State of New Jersey with its
ptincipa'I offices located at City Hall Plaza, :Rahway,. New Jersey 07065
(hereinafter Teferred to as '~Rahway").
W l TN E S S ET B:
WHEREAS, Midd1esex own$ and openiteS. a public water supply system; and
WHEREAS, Rahway l~as requested that Middlesex provide it with a supply of
water for private and public use; and .
WHEREAS Middlesex and Rahway entered into ah agreement relating to the
supply of water frotn Middlesex to Rahway dated as of April 1, 2006 (the "2006
Agreement"); and
WHEREAS Middlesex and Rahway entered into a First Amendment to the 2006
Agreement on December 1, 2006 ("First Amen:dment") in which the parties agreed to
anJend certain provisions of the 2006 Agreement; and
WHEREAS fvfiddlesex and Rahway desire to further ame11d several provisions of
the 2006 Agreement as amended by the First Amendment including but not limited to a:n
extension of the t~n11, of the 2006 Agreement; and
WHEREAS, this Agreement is designed to set for the terms and conditions
between the parties relating to the'.supply of water iriduding but n:ot limited to an
exte11.cfed •ter111.
NOW, THEREFORE, in consideration ·of the premises and of the mutual
covenants herein contained, the parties hereto agrer;: as follows:
-2-
1.
Supersession of 2006 Agreement and First Amendn1ent.
.,
.
'
'
.
.
.
.
'
This Agreement shali supersede and replace the 2006 Agreement between
Middfesex and Rahway dated April 1, 2006, and the F'irst Amendment between
Middlesex a11d Rahway dated Deceniber 1, 2006 and. all the tertns and conditions
contained therein.
2.
Supply ,of Water.
Middlesex agrees to supply Rahw~y with water; and Rahway agrees to accept
si:.1ch water Upon the terms and. conditi01is set fmih herein.
3,
To:fil.
The term of this Agteemen:t shall be ten (10) years from the elate hereof Except
as otherwise provided hereh1; cit as the parties n1ay ri1utually agree upon in writing,
·service shall terminate on a date th.at fo ten (10) years fnllowing th~ date here:of.
This Agreement shalli"emain.in effect during the term set f01ih in this section,
after the termination date and any periods of renewal of the .Agteemel1t unjess written
notice of intention to terminate the Agreement is given by either party at least six months
prior to the date of such termination .. In tlw event that such 11otice has not been give11, the
Agreement shalt remain in effect until the earlier of (a) renewal or modification of the
Agreement by writte1i consent of both parties, or (b) a date no less than six months after
the date that either pmiy provides written notification of termination.
4.
Ra_te·s.
Rahway shall pay Middlesex at a rate which is the swn of (a) the rate for Service
Under Contract pursuant to Rate Schedule No. 5 of Middlesex's tariff, currently at the
rate of$ 2,241.53 per million gallons (Exhibit A attached hereto), and (b) the tate for
Trans·niission Service pursuant to Rate Schedule No. 8 of Middlesex's tariff, currently at
the rate of$ 385.26 per million gal1011s (Exhibit B attached hereto); or as applicable rates
and tariffs may be established ahd/ot changed from tiri1e to time with the approval of the ·
New Jersey Board of Public Utiiities ("NJBPU") as required by law. (Collectively, such
rates are hereinafter referred to as the ''Contract Rate.") Rahway shall pay Middle~ex at
the .said Contract Rate for the greater of the Daily Minfrnnm quantity of water (as defined
below in paragraph 8) or for all water delivered to Meter Stations (as defined below in
paragraph 6 (Meter Stations/Points of Delivery)) up to and including the Allowable
-3-
Excess as detei-mined under paragraph 9 (a). Rahway shall pay Middlesex the applicable
Peaking Rate, set forth in paragraph 9, for all water in excess of th¢ Allowably Excess,
subject to the.provisions of paragraph 10 hereof.
5.
Delivery System.
Water to be supplied by Middfosex heteundet shall be delivered to Rahway
through Middlesex's water transmission and distribution system atJd all existing
interconnections located on such transmission and distribution system as exists at the date
•Of this Agreemehfand such other interconnections as may be reasonably agreed upon
fro111 time to tiine.
6.
Meter Stati.ons/Points of DeHvery .
• . '
•
.• •
' •. , • ,, . = .•. '
.
The parties understand and agree that delivery shall be made through such points
of delivery into the Rahway system as may be reasonably agreed upon from time to time
by the parties (hereinafter referred to as "Meter Stations"). Watet so supplied shall be
metered at the Meter Stations.
7.
Meters, Setvices.and Other Apptniena11ces.
. .
. '
.
.
.
,.
. .
~
'
.
. . . . "
Middlesex shall :famish, install ai1d mafotain at its own cost such service
co11nections and meters as it shall deem necessary for connection to the Meter Stations.
The metets and service pipes shall remah1 the property of Middlesex. Middlesex shall
maintain and verify the accuracy of said meters at least atmually, and Rahway, at. its sole
cost, sh.ail have the right to test the meters at the Meter- Stations by a ce1ii:fied meter
technician at any reasonable time upon writte11 notice to Middlesex. Rahway shall
provide for furnishing, installing and maii1tainlng at its own cost all othet_piping, fittii1gs,
valves; meter pits , vaults, structt1_res arid appUJienances, inclt1ding pumping stations or
.
.
pres~ure reducing stations, ·necessary to take v,rater from Middlesex.
8.
1'1inimum Fayn1e.nt Obiigatipn.
(a)
Rahway shall be obligated to pay for the Daily Minimum quantity of water
at the Contract Rate. "Daily Minimum" shaii mean:
(i)
Two .hundred thousand (200,000) gallons of water a day (0.20
miilion gallons per day (mgd)),. or
(ii)
Such greater amount as may be elected under patagraph 8 (b) of
this Agteement.
-4-•
(b)
At anytime during the terrn of this Agteement, Rahway may elect, upon
written: notification to Middlesex and Middlesex's approval, to increase the Daily
Minimum quantity of water to a greater quantity of water (hereinafter referred to as the
"Revised Daily Minimum"). Once such an election is made by Rahway, the Revised
Daily Minimum quat1tity of water shall remain ih effect for a period of at least twelve
( 12) months fiwn the effective date of such electioil miless further increased pursuant to
this Agreement. At the en<Jof such twelve (12) month period, the Revised Daily
Minimum shall remain in effect unless :Rahway shali fmiher amend (increase or decrease)
the Revised I)aily Minimum. Each such election to amend shal1 be on written notice to
Middlesex aiid shall remain in effect for a period of twelye (12) months from the
effective date of such elect1on tmless further increas·ed pursuant to this Agreement. Any
electio11: to decrease the Revised._biiiiy Minimum shall not be reduced jJelow the initial
amount of two hundred-thousand (200,000) gallons of water a day specified in paragraph
. 8(a)(i) of this Agreement.
9.
P~aking J.3-atys.
(a)
The total daily quantity of wate1' taken by Rahway at the Meter Stations
may exceed the Daily Minimum or the Revised Daily Minimu1n by up to 50% on a 2_4-
hour basis witt1out affecting the Contract Rate. The quantity of water taken in the peak
hotu· tnultiplied by 24 .inay exceed the I)aily Minimum or the Revised Daily Miriirnum by
up to 100% without affecting the Conttact Rate. Such excess quat1tities of water are
lrnoWn as the "Allowable Excess;'.
(b)
If the quantity of water taken in a 24-hour period shall exceed the Daily
Mininium or the Revised Daily Miriin'illrn by more than 50%1 ("Daily Peaking Excess"),
Rahway shall pay for such Daily Pea!(111g Excess at a rate (the '1Daily Peaking Rate") ·
determined by the foilowing fonntila:
(i)
A fraction (the numerator of which is the actual daily usage; and
the denon1inatbi" of which is the applicable Daily Minimum or
Revised Daily Mini1mim then in effect multiplied by 1.5)
muiti_l?!ied by the Contract Rate.
-5-
1
I
For example, if the act~rnl daily usage is .25 million gallons, and
the Daily Minimum is .10 million gallons and the Contract Rate is
$1,500.00:
.25
. l Ox 1.5
1.67
X
X
· Contract Rate
$1,500.00 = $2,505.00 (Daily Peaking
Rate)
In th.is· example, the charge for the Daily Peaking Excess would be
$250.00 calculated as follows:
.25
.10
X
, 15 (Allowable Excess)=. IO (Daily Peaking
Excess)
$2,505.00 = $250.50
(c)
If the quantity 9f water supplied in the maximum peak hour- multiplied by
24 shall exceed the Daily Minimum or the Revised Daily Minilnu111 by more thar,1 l 00%, ·
("Hourly Peaking Excess") Rahway shall pay for such Hourly Peaking Excess at a rate
(the "Hourly Peaking Ri:lte"} determi11ed by the following forrtmla:
(i)
A fraction (the numerator of which is the quai1tity of water
· supplied in the maximum peak hour multiplied by 24; and the
denominator of which is the applicable Daily Minimum or
Revised Daily Mihirn,urri then in effect multiplied by 2.0)
multiplied by the Contract Rate.
Jior example, if the quantity of water supplied in the maximum
peak hour multiplied by 24 equals .30 million gallons; and the
Daily Minimu~n is .10 million gallons and the Contract Rate is
$1,500.00:
.30
.10 X 2
I.SO
X
X
Contract Rate
$1,500.00 = $2,250.00 (Hourly Peaking ·
Rate)
-6-
(
In this example, the charge for such Hourly Peaking Excess would
be calcuiated as follows:
300,000 gal.+ 24 = 12,500
200,_000 gal. + 24 = 8,333
Calctilated :rnaxii1i.um
Peak hour excess= 12;500 ~ 8,333 = 4,167 gal.
Hourly Peaking Rate x Calculated Max. Peak Hour
$2,250 mgd
$2,250 mgd
Excess
4,167 gal.
X
.004167
= $9.375 for such Hourly Peaking ExOe$s
A similar c:alculatio11 would be made for each day there is al'.1
Hourly Peaking Excess, but there shali not be more than one such
Hourly Peaking Rate in each 24-hotir period.
(d)
The Non-Emergency Usage Intetconnection Table is set forth in Appendix
E, which is fully incorporated into this Agreement as if f1.,11ly set fo1ih hei-ein. For
purposes of the c2Jculations set forth in Paragraph? 9(a) and (b) herein, the amounts
charged as the Daily Peaking Rate shall not exceed and shall be capped at the rate for one
miliion gallons under the Consumption Charges as set fotth in Rate Schedule No. 1 -
General Water Setvices_ - GS (the "Retail Rate") t4e11 in. e;ffect tmder the Middlesex
Tariff. As of the cla~e of the Agreen1ent, the Retail Rate is the equfvalent of$ 5,574.87
per million gallons of water used.
(e)
Notwithstanding anything hereii1 to the co11trary, the obligation of
Middlesex to supply water lindet this Agreement beyond the Daily Minimum or the
Revised Daily Minimum, as the case may be, is sub)ect to Middlesex having the supply
and capacity available to provide such amounts.
(f)
For the purposes of the calci..!lation of the New Jetsey Department of
Environmental Protection (NJDEP) firm ca pa.city, the Daily Minimi..1111 or Revised DaUy
Minimun:i shall be the Firm Capadty _Transfer amount from Middlesex to Rahway: As
currently outli.ned below in Table# 1
Table# 1
-7-
Maximum DailyAm:otmt
Maximum Monthly Amolfnt Maximum Yearly Amount
guaranteed to be Delivered
gua:rati:teed to be Delivered
guaranteed to be Delivered
0.2 mgd
6.08 mgd
73 mgd
10.
Exceptions for Special Circumstances
Notwithstanding anything to the contrary herein, the parties recognize that at
different tinies di,iring th~ year, Rahway experie11ces a problem with excess chloride in its
water (the "Chloride Issue"). In additio·n, at different times dtirii1g the year, Rahway
experiences an additional passing flow problem wheret;iy it is req1+ited to ~ease taking, or
decrease the amoJlnt of, water which it may legally take from the Rahway River (the
"Passfr1g Flow Iss\1e").
In the event that Rahway is experiencing eithet of these problems throughout the
.. year and properly notifies Midd1es(}x of such problems, and the expected duration of the
same1 then and in such event, Middlesex agrees that Rahway shall be obligated to pay for
the amount of water needed to address each such problem according to the following
schedule:
( a)
For the daily amount of water used for the Chloride Issue during the
period from October I -April 30, Rahway shall pay for such water at the Contract Rate
set forth herein without regard to any additional Peaking Rate charges as set forth in
paragraph 9 hereof A sample calculation of the formula set forth in this subsection is
provided in Appendix A, which is incorporated into this Agreement as if fully set forth
herein.
(b)
For the daily ainourit of watel' used for the Passing Flow Issue during the
period from October 1 -April 30, Rahway shall pay for such water at the Contract Rate
set fo1ih herein without regard to any additiorial Peaking Rate charges as set forth in ·
paragraph 9 heteof. A sample calculation of the formula set forth in this subsection is
proviq.ed in Appendix B, which is incorporated into this Agreement as if fully set forth
herein.
(c)
For the daily arri.ount of water used for the Chloride Issue during the
pedod from May 1 - Septembet 30, Rahway shall pay for such water in accordance with
the provisions of paragraphs 8 and 9 herein, except the amount charg~d as the Daily
Peaking Rate shall notexceed and shall be capped at the rate for one mill:ion gallons at
the Retail Rate then in effect under the applicab1eMiddlesex Tariff. As of the date of the
Agreement, theReta:il Rate is the equivalent of $5,574.81 per million gallons of water
used. A sample calculation of the formula ·set.forth in this subsection is provided in
. Appendix C, which is incorporated into this Agreement as if fully set forth herein.
(d)
For the daily amount of water used for the Passing Flow Issue during the
period from May 1 - September 30, Rahway shall pay for such water in accordan_ce with
the provisions of paragraphs land 9 herein, except the amount charged as the Daily
Peaking Rate shall not exceed and shall be capped at the rate for one million gallons at
the Retail Rate tlieri. in effect under the applicable Middlesex Tariff. As of the date of_the
Agreement, the Retail Rate is th~ equivalent of$ 5,574.87 per million gallons of water
·used.A sample calculation of the formula set forth in this subsection is provided in
Appendix D,.which is incorporated into this Agreement as if fully set fo1ih herein.
Payment
The terms are net 9ash on presentation of invoice.
12.
Combined Chai'.ge.
Pa.yme11ts for water (in excess of the Daily Minimum or the Revised Daily
Minimum and adjustrnertts of the Daily Minimum or the Revised Daily Minimum under
paragraph 8) shall be determined on the basis of the combined total daily quantity of
water supplied through all the Meter Stations as determined by meter readings at said
Meter Stations.
13.
Meter Readings.
Middlesex will read the m~ters daily (at a tegu1ar hour determined by Middlesex) .
for all water supplied to Rahway at each connection then in operation.
14.
D.eifoitions.
Where the words "daily" 01· "24 hours" are used ln this contract, they shall refer to
the 24-hour period between the daily meter readings.
-9-
15.
Quality.
All water delivered to Rahway by Middlesex nnder this Agreement is intended to
comply with all Federal and State primary req_uirements for safe drinking water.
16.
Scheduling.
Middlesex shall have the tight to modify its rate of delivery to manage its system
requirements in accordance with accepted operating procedures. Rahway shall give
Middlesex l'easonable advance notice of any atiticipated departures from its the11 normal
usage.
17.
Exceptio,ns for En1prgencies.
The Daily Minimum or Revised Daily Minimum payment obligation shall not be
affected in the event t,hat the amouht of water supplied by Middlesex to Rahway exceeds
.
.
.
the daily or hourly limitations established herein for not more than twenty-four (24) hours ·
in case of documented. fire, main break or water treatthenJ plant-related emergei16ies
experienced by Rahway and for not more than five (5) days. Additfonal time beyond five
(5) days may be granted by Mid.dlesex at Middlesex's sole discretion, in the case of other
exceptional cfrcumst2.nces experienced by Rahway requiring a11 er1.1ergency supply of
water, provided Middlesex is•promptly notified that any such emergency exists. It is at
the sole reaso11able discretion of Middlesex to determine if such requests meet the criteria
of an emergency as contemplated in this Agreement.
18.
Excus~d PerformaricQ.
Middlesex agrees to provide a continuous, reglilar and. uninterrupted supply of.
water at the Meter Stations, subject to delays in initiating service or interruptions in
•• ,,
•
•
I
Sl;!rVice by reasons of acts of God, accident, strike, legal process, or other cause beyond
its control, or failure, refusal, or delay on the part of ai1y governn1en.tal or regulatory body
having jurisdiction in issuing permits, approvals, authorizations, licenses, rights;of-way
or the like. Middlesex shall 11.ot be liable for dai:11ages to Rahway by reason of inadequate
pressure or volume or quality or failure to provide water for any cause whatsoever
provided that the-same does not atise out of the negligence of Middfosex. In the event of
an interruption in service Middlesex agrees to act diligently within the bow1ds of normal
operating ptocedures to return service to normal.
-10--
l i
19.
Indemnification.
Rahway shall completely indemnify, protect and save harmless Middlesex from
atiy and all costs, expenses, liability, losses, claims, suits and proceedings of any nature
whatsoever arising out of the Water service by Rahway: However, as to claims involving
water quality, this paragraph is intended not to apply to Water until after it is delivered to
Rahway system, i.e., after water is supplied through points of delivery referted to hi
paragraph 6.
Middlesex shall completely indemnify, protect and save harmless Rahway from
all costs, expens"es> liability, fosse'S, claims, suits and proceedings of any nature
whatsoewr caused by any breach by Middlesex of its .obligations u·nder this Agreement.
. . Notwithstanding anything he~·ein to the contrary< each paiiy's aggregate liability
to the other arising out of or in co1mection with this Agteement shall not exceed an
amount equal to two times one year;s gross revenues required to be paid by Rahway to
. Middlesex based upon the Daily Minimum or Revised Daily Minimum in effect at the
time of the occurrence givii1g rise to the liability, and ei;tch party hereby releases the other
from any liability in excess thereof. This paragraph is not :iJ.1tended to limit either party's
liability to third parties.
20..
~eg~il,at<?rY. J;tpptovt!-1s.
This Agreement shall be filed by Middlesex with and subject to approval by the
NJBPU and the NJDEP as may be required by law.
21.
Miscellaneous.
To the extent n,ot inconsistent with this Agl'eement, all other provisions of
Middlesex's tariff shall be deemed to govern service hereui'.1det.
This Agreement shall be governed by and interpreted fo accordance with the laws·
of the State of New Jersey.
-11-
IN WITNESS WHEREOF, the paiiies have caused this Agreement to be duly
executed as of the day and year first written above.
ATTEST:
~ K/1/
C) ~
.,•,1
.!._~ _ . /f:t.L-1L,t:,1.,," cl
J. L., ooper r
Vice President, General Cou1isel & Seci"etary
Jef:fi:7.J~/~
City Clerk ·
.
MIDDLESEX WATER COMP ANY
By:_~ JJ ✓Abt_f
Dennis W. Doll
President and Chief E:xecutive Officer
CitY OF RAHWAY
By~~(a)_L
Samson D. Steinman
·
Mayor
-12-
MIDDLESEX WATER COMPANY TARIFF
RATE SCHEDULE NO. 5
MlbDLESEX WATER COMPANY
B.P.U. No. 1- WATER
Twenty-second Revised Sheet No. 40
. Canceling
Twenty-first Revised Sheet No. 40
RA TE SCHEDULE NO. 5
SERVICE UNDER CONTRACT- SC
.
. .
APPLICABILITY:
Applicable to service provided under special agreements. Such speci.al agreements are available to ·
customers that meet criteria as spec.ified by the Board· of Public Utilities alid such ag1·eernents will be filed with
the Board on a case by case basis.
·
CHARACTER OF SERVICE:
.
.
Continuous except as limited by "Standard Terms and Conditions 11 •
RATE:
All water used shaH be charged at the rate of $2,24,1 .53 per minion gallons.
TERMS OF i? A YMENT:
..
'.
. .
Bills will be rendered monthly.
.
A customer has at least 15 days from the postinark 01i the bill to pay a valid bill for service.
SPECIAL PROVISIONS:
As provided under special agteernents.
Date of Issue: March 31, 2015
f ssued by: .
Dennis W, Doll, President
1500 Ronson Road
Ise!.in, New Jetsey 08830-0452 ·
Effective for service
Rendered on and after:
August 29, 2015
Filed pursuant to an Order of the Board of Public Utilities., State of New Jersey, dated August 19, 20 I 5, in
Docket No. WR1503039l.
EXHIBITB
MIDDLESEX WATER COMPANY TARIFF
RATE SCHEDULE NO. 8
(
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;
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MfDDLESEX WATER COMPANY
B.P.U. No. I - WATER
Fifth Revised Sheet No. 43
Cancelling
Fourth Sheet No. 43
RA TE SCHEDULE NO. 8
TRANSMISSION SERVICE-NORTHEAST SECTOR
.
'
APPLICABI.UTY:
Applicable to water transmission service to the Northeast area provided to cListomers under special
agreements at the option of the Conipany.
CHARACTER OF SERVICE:
· Continuous except as limited by ';Standard Tei·ms and Conditions".
RATE:
All water used sha!I be charged' at the COlTibined 1:ate of$385.26 per million gallons for transmission p
0lus
the rate foi: Service Under Coi1tract as provided in Rate Schedule No. 5.
TERMS OF PAYMENT:
. ..
.,..
. ...
As provided by contract.
B1Us to be rendered monthly.
A customer has at least l 5 days from the postmark on the bill to pay a valid bill for service.
SPECIAL PROVISJONS:
As provided under special agreements.
Date of Issue: March 31, 20 l 5
Issued by:
Dennis W. Doll, President
1500 Ronson Road
Iselin, New Jersey 08830-0452
Effective for service
Rendered on and after:
August 29, 2015
Filed pursuant to an Order of the Board of Pub liq Utilities, State of New Jersey, dated August 19, 2015, in
D0cket No. WRi'503039l.
. .
Act1.1al Oolly Usar,c:
Current baily lake or Pay Minimum:
Appendix A and B
fit:ttrtPld: of tht (ot cafculatfon under ExceptlonJ for Speclal drcunucancos
Chlotide ls,ue during tl1e period Ottober 1- April 3D- Ser forth In Section 10 (aJ
p355fng F_low Issue during the ptrlod OCtobef r • .Ap'rll,30 • Set forth In Section 1() (a)
f6r the purposes of this example
per contrac.t
MGD
Allcwed e,:cess o\ter 0.2 MGO rr.fnlmum:
0.2
0,3
Ci,ntract R~te"
) S 2,626.79. per MG
Current contract rate as per Paragraph t. B!!£I'
S~oial OrcumstanCJ! Definition
v,lhen RaJ,way dedare• rh~I the n•~ for lhe water Is due to the chlortdc or passins HOV( Issue
during t'1e perlqd bet\Veen Ocjober 1 and AAfll 30 as seJ1c.rth In Paragraph 10. (•land !bl, Ell•flPilons lor Speclal arc~mstantes
Jlahwai' shaU p.iy(or wvter at the Contract Kare l•~ov•l wilhout legard to any aHdillonal
P••~lng Charges as 1<t forth In Paracraph 9
So
,,2
msd
~ 2,~26.79 •
5,779.94 = ch;1rea for day, ho d:flly- PaaL'.lng Exce.H' ch:Hge ~pplies
•. Thi! rote J;ableapplleno rhe .c'U(rerit take or P•Y minimum cif 0.2 mgd,
ttte wr;ehl Cohtract Rateof.$2,926.79 and t~• current Ret:iil Raio of $5,574.87.
[
~·ate Tabfe•
If any of-ch..-..& are ad/iute~. thori <Ii·• k,te T,ble Will neod 10 bo adiuited, to
to rorroct.th•. ofy•os·es ..
Rahway
O.,:rent
Total
Daily
Contra.."!
Dally
Consumption
Rab!
Char
·0.2
ll)Bd
X $ 2,626.79 per
;ngd
.. $
$253&
per doy
o.a
mad
.. $ 2,626,79 per
mgd
. $
718.04
ptr day
DA
med • S 2,626,79 per
mgd
$ 1,050,7-2
per day
0.5
m/llf • $ 2,626.79 per
mgd
. $ 1,!113,40
per day
0,6
mgd • S 2,626,79
por
m;d
. $ ·1,576.07
per day
0.7
mad
• S 2,626,79
per
mgd
. s 1,838.75
per day
o.s
mgd
• s 2,626,79 per
mgd
= s Z,lOi,43
per day
0.9
mgd
• s 2,626,79
per
rngd
s 2,364·,u
per d:iy
1.0
. mgd
• s Z,625.79
per
mgd
' s 2,625,79
per day
l.1
mgd • t Z,626.79 per
rngd
. $ 2,ae~.47
percloy
u
mgd
X $ 2,625,7$ per
mg-d
. s 3,lSZ.15
par day
1.3
mgd
• $_ 2,.G'l5,7S
per
mgd
.,
$ 3,414.83
per day
1.4
rngd
• $ l,HG,79
per
mid
. $ 3,677..51
per day
1.S
rngd
X S 2,526.79 per
mtd
. S 3,940,19
per day
1.6
med • $ t,626,79
per
mgd
. $ 4)02.86
per day
1.7
mad
X $ 2,620.79 pet
mgd
. $ 4,4~.54
po~d,y
J.8
mgd
X $ 2,626.79
per
mgd
. S 4,7:18,21
perd~y
1.9
mgd
S 2.~.79 p•r
rogd,
. S 4,990,90
per day
2.0
.mad • S Z.&lo:79 per
rngd
" $ 5~5!.511
per day
2.1
"'lid
• S 1_~.79 pe< .
mid
- s s,!;1.o.2&
per day
2.2
mgd • S 2,G26.19
per
mgq
. S 5:77fi,94
ppr!lav
2.3
mgd
X S i,6;15,79
per
mgd
. $ 6,041,~2,
par-day
2.4
mgd
$ 'iJ26,79 per
mgd
. $ 6,304.a0
perd!y
2.5
mtd • $ J,'626,79
per
med
= $ 6,S66.9l
perd,y
2.6
msd .. $ 2,G:io,79
per
mgd·
$ 6,~;?°,G5
p~r d,y
7..1
rngd
• $ 2,626,79
per
mgd
. S 7•,092,33
per day
2.8
mid
• $ 2,626.79
per
mgd
. s ;,13ss:01
_per·day
2,9
mgd
• $ 2,625,79
per
mgd
• . $ t.'&17,69
per day
3.0
rn1~
• S 2,625.19
per
med
. S 7,SSG.37
per day
3.1
n,cd
• $ :1.626,79
per
mgd
. $ 8,143.05
per day
3.2
in&d
X S 2,626.79 per
me~
. $ MOS.73
per day
3.3
msd
• S 2,626,79 per
mgd
~ ,S S,ji68,41
pird,y
3,4
w,gd
s ~sie:'79 per
m;d
5 8,931.09
i,er~,y
3.5
mgd
• $ 2,616.79 per
·msd
:
'$ 9,193.77
per d~y
3.G
mgd
X $ 2,626.79 per
mgd
$ 9,4S6.~
per day
3,7
rr,gd
$ 2,626.79
per
mad
$ 9;719.12
porday
3.8
m~d
X $ 2,626.79 per
mgd
S 9;9.;1.30
perday
l.~
med
X $· 2.626.79 per
med
. s 10,244.•a
pcrd;3y
4.0
mgd
' , 2.G26.79
per
mgd
·s 10,so1.16
per du'(
D:il1y Take o( k;iy M!ii/n\urn::
Appendix C and D
fxornple of IM !or c::ilcu!atloh und-=< £xcepltonJ rOr Sped-'! rJrcumHnnci;s
· chloride bs~e during. \lit! p.:riod May 1 · Sept~mbcr.30
0.2 m_gd
l rngd
Set fo~h in Se,:lfot11Q (cl
Passint Flow hsuc dutint1 the period Moy l - Seplember 30
Set forth In }ectfon lO {di
percontran
rrm;lmvm Q.ai/y Consumption w_ithout incutrins O:iily P'e:a~f!\& lfo(e Cffi!ri:t
.5?edul Cirtumstjnce 0efinltio11
When ft;)hway d~c.h.He~ th~t there Is a chloc!de: Issue dJ.Jrfrig the pe-rlpd berv1t'.cn M4y l · and Sl!ptember 30, rt.ah way sha/f
pay for such woter without re·iurd to any _addftional Pcukit'lc: ChoHcei:..)t set ftinh rn PJrtl'g.rJ::ih·s, provided th.ic
the. wa1er US<J.d by ·R~h,~a:y ~~es uot 1!11c,~d one rnmion e;;JJort.s Fer day
Then
1.0o
mgd
•
S
2,G.26.79 •·
JI th~ Am1,1f D,1ilv usacre exceeds 1 med, ;u kdaes in this ex.;mpte, then for Jll \1:r;ige.in ~.i.Ce:is of 1 rngd, RJhwoy s.hi!if p~y ro, svch ~~es~
·
Jt j ·p~/1•; Pe.il:lng A.ate ;ir delt:-rrnlned und~r p:irnffriiph 9
The charge for the Oql!y Peaking !\rite and Da/lypea~lng txi;ess ,harge anij the Tot ill ch.1ri::i:: wovld then be c;ilcul.ited ~~ follows~
l'er µa:ra1:r.iph 9 tb)II}. ror the amotr1nt OY~r 1 rn8d
(0.2"1.SI
4,0
1.2
S
10,507,l, ,
1o;so?.J6 O.iily Penkins R;)tc
5,514.87
6,089,84 ;:,
For Dully Col'JSt.'mptJon 6&,.:wi:~n thtrDatlv {ninlrnum ,;J11d 1.,0 mild
l\.>h'Mly
CvrrCnt
Dally
Coou~t
Comvm:,Uori
RatE?
0.2
mr;d
s
2,625.7;3
P«
0.3
rngd
$
2..6?6.7ffJ
por
0.4
n1~d
s
2,626,79
per
=
0.5
mf;d
$
Z,620.79
F<r
.
0.6
med
5 . 1,626.79
pe,
0.7
m1d
2,52,.19 po,
o.s
rhg~
2.,6.2.G,79
per
0.9
m,d
i,?~6.79
per
.
l,O
mi;d
l,626".79
per
For D-.1.ily CcrtSumption ovar .1 rngd
Rahvil'.ly
ii;;rscCr1arge
oaUY P'e,>ktng .lrat~
Daily
for.tmi::d
for ilmount over l m ·1
ConSl,lmpt/on
l.l
mad
2,626.19
$
875.sp
l.2
mgd
s
1,516.79
$
1,?5L19
1.3
mid
s
2.626.79
$
2,626.)9
l.-1
n,gd
s
l,626.79
3,502.39
1.S
mgd
s
2,62~.79
i:1.,377-.98
LG
rrif:d
$
2.626.7'
s
S,574.81
LI
msd
$
2,526.79
s
S,511.87
LS
n1.ed
$
2,62$,79
s
5,574.87
LS
mgd
s
1,626.79
s
5,514.87
2,0
r,,gd
s
Z626.,9
$
s,m.a,
2,J
mad
s
l,iU6.79
$
S,574,87
i.2
med
s
UlS.79
s
S,574.87
l,3
tnS:d
·S
ZG26.79
S,574,87
1.4
ma~
s
~626,79
s:m.s1.
2.5
mad
$
l,!il6.79
s
S,S14,S7
l,6
med
s
l.6'~.79
s
5,574.87
l.7
mgd
s
2.626.79
s
S,S74,57
2.8
mgd
s
2,626.79
.$
S,S74,S?
2.9
mad
$
Ml&.19
$
.S,574,B7
l,O
"lid
$
2.626.?9
s
1,574.17
l,1
mgd
$
i,626 .. 19
$
s:s1u1
l.l
rnt'd
s
'2.il&,19
s
$,574.1-1
3.3
msd
s
2.~.79
5
S,514.U7
3,4
rne,d
s
2,&2~,79
5
5,574.87
3.5
~~gcf
s
2,625,19·
s
5,574.87
3:6
msd
$
l,&i&.79
$
S,S,74,'7
3.7
med
$
;z,626.79
$
S.$74,47
l.S
mt;d
s
2.526,79
s
ss1,,s1
3.9
ll'\~d
$
Z626.'i9°
s
5,574.81
•.o
nir,d
2,626.79
s
S,57tS7
9,316~63"
rot..f Ch.irs:e for 2 • .l rngd dvring MP\' 1-Sept 3D
.. This rate ta bit ;irpl!P..Ho th!!' current ral:e or pily mlnfmum of 0,2 med,
the: rurrcntContm'ct R:>U~ of .$:!,6'26,19 ::mt! che currunt ftet.lfl Rate of SS1571J,fl7.
JI any of-these arc odJusted, then 1h~ Rate T~b1c will Med tO be odjum:d, tc,
t~ reflect the chiltt(ie.5~
Tot.;)J
0.JOy
Ch;;iree
i
s·ts}G
$
?SS:0-l
s
l.050,72
s
l,313,40
s
1,576.07
s
1,838.75
s
2,101.43
s
2,354.11
l.516.79
0-tiiyP~kins
Excaucharc:e
Total Ch:irr,<!
O.,"
87.56 s
2,7l-4.3S
0.2
s
350.24 s
2,;77.03
0.3
$
788.04
$
3,•1.1•1.83
0.4
s
l,4-00,95 s
1:1,017.74
0.5
s
!,188,99
5
4,BlS,78
0.6
5
3,3'.-4.92 $
s,i.;13.11
0.7
s
3,;-0i.1u ;
S:,529.2.0
o.a
s .
-<,4'59,90 s
7,U06'.6'g
0,9
s
5,017.38
$
7,~14.l?
1.0
$
S,S14,S7
$
B,20LG6
1.1
$
6,,132.)6 s
B,7S9,15
1.2·
$
6,649.14
$
9,316.63
1,l
s
7,147,ll 5
9,814.1,
L.4
s
),804,;2 s 10,431.il
1.5
s
8,362,ll
$
10,989.10
1.6
s
8,919,79 $ 1~5•1638
l.1
s
•.~n.za
$ ll.i0-1,07
1,8
s
l0,Ol~.77
$
12,i;,;1,SG
u
s
10,SIU.! s 13,219.04
J.O
s
11,1,,,7,
$
1l;776,SS
l.l
s
11,107.13 s 14,334.02
2,2
$
ll,l64,71
$
14.891.50
u
s
n,aJ2.2p
$
15,4411.99
M
$
13,379.19
$
16,001;,48
2.5
$
13,937,lS $ 1~,SGJ,97
1.5
s
lA:•94:66 s 17,121.41
2.7
$
1s,0S2.is
$
17,678.94
?.I
$
lS,£09,54 s l8,lJ6,0l
2.9
s
16.167.12 s 18,193.91
l,O
$
16c72.ol.Gl s l~,lSl.,\O
1.,
f
1
-~ i
Actual Daily Usas~;
Take or P;;y O:dly Mi/\imcm i~: ·
Al!Owed exr.ess- over
o.i
Then
2.! mgd
f.L1 rr.~d
1.9
Appendix E
Example of the foi-c.ikulatfon for Ncn Emergencyt!:iage-
. Sot forth hi Sec1ron 9 {aJ fb)
foithe puip6ses oftlils ex:.mple
percontr:ia
0.2
1.S
0.3 rngd
(0.2·1.s)
7i3
2,626.79
i.2 l'!isd Ac.tual me
0.3
mg~ 111/owed exieu:
19~263.13
$
36,599:94 u D:::illy Pe:akhls-'Excess charB'~
1.9
Except that the Daily Pe3ki/1g Rati Oia'rge Is cap;,id ar the C'.!JrtentRet~ll R<de o(
·ss,574.87
GlvQn tl.ils.~Q/uttment, the o~nv.·Pe.1k1n· u,o~, Ch':i.r1te will be roc::1Icul;m.d u falloY-li
1,9 •
5,574.8.7 ;-
J0,59·2.25
~ Oilily P~::iV.ing Exc-e.u. Charge
C;ikul.:it!on o(Tot11l cfr.;ri,re
Anc11.113b/e f.xcess Ch;uee C!kulatfon
0.3 •
2,626.79
~
Total Char1=,e =-
738.04
Allowable· ~co~s Cha rgt! c.a lc1,1fa lion
Cifc:t;l.:idon of Total cfraq;e for Normal Interconnection l)s-gc
::1 mgd Oaily Pe::lkint Excets
S 10.592.25
. s
11,380.19 • Tot-al Charge
_1
• This rate t.itife app/ri:sto the wrrent t..akP. or pay tnil\lmum of 0.2 nigd,
Rafe Tab!~·•
'
·--c;'u7-
o,,ily
. RaJ,w~y
Poakin:g
Coorumption
Exc'e.u.
med
mgcf
0.2.
0
0.0
0.3
0
0,0
a.4
~.50239
0.1
o.s
s
•,3n.,a
0.2
O.G
$
S,S~4.87
·o,3
0.7
$
S.574.87
0.4
o.a
S,51<,87
□.5
0.9
S,514.87
b.,
l.O
5,S74.S7
0.7
!.!
5,574.87
o.a
u
s
5,S'T<l.87
0.9
l.l
s
5,574.87
l.O
1.4
i
S,S7M7
!.!
1,S
s
5,574.87
1.2
1.6
5
S'.574.87
l.3
1.7
s
5,574.87
t.•
1.a
5,574.87
J_S
L9
S,574.1!
u
2.0
5,574,p
1.7
2.l
s
5,S74-.iJ7
a
2.2
s
S,574.i7
1.9
.Z.3
$
5,574.87
2.0
l:.4
s
5,574.87
2.1
2.5
s
S,574.li7
2.2
z.6
s
5,574.87
2.3
z.1
s
S,3?4.87
2.4
1.8
s
5,574.07
2.S
2.s
$
s,'s1,.a1
2.6
).0
$
S,ST◄,87
2.7
3,l
s
S,57 ◄.87
u
3.2
s
5,574.81
1-9
3.l
s
S,574,87
3.0
M
s
S,S?◄,87
3-1
3.S
s
5,57 ◄.87
3.2
3.6
s
5,574,87
3,3
),7
s
s,HA.87
3.4
3,S
$
s.m.,1
3.S
3.9
s
5,574.87
3.,G
4,0
$
S,574,87
3.7
lhe: currenr Contract R!Jtl! of S2,626.7g a11d rhe. current R~tilil A.ate of SS,S?4.87.
lfiJ1Wof the.sq are .idj1,1sted, thon the-Rate ·r.,bla w!U need to be:1dj0Sted, to
to renect the ch;mi;:es,
$
s s
s
$
$
$ s
s
$_
s s
s
$
s
$ s
s
$
s
'
$
s
$
$
$ s s
$
$
$
5 s s
$
$
o,uy
_Pg~:tlflg
EXCe$~
. ch:zr;,,e. ·
3!:0.24
175.60
1,67?,46
2.229.95
2,787.«
3,344,92
3,902.4l
4AS9,90
5,017:38
5,S74.S7
6,132.35
6,689.34
7,247.33
7,8fll1.S2
8,362.31
S.j/9.79
9,<77.28
10f034.i7
10,59?.2~
ll,r4q4
ll,7.07.l3
12,26.t.71
H.9:?i.20
13,3'79.69
13,9.n.ja
14;494.66
15,0~2.15
15,699.64
l6,167,l2
l~,7lt61
17,282,10
L7,B3g.sa
ID,39),07
lS.SSI.SG
ls.s12.os
20,069.5$
W,6!7.0l
• .
•
$
s
s
$
$
s
s s
s
~
$
s
s
5 s s
$
s s s s s s
s s s s
$
s
s s s s
$
$
5 s
Allcw>hlo
TOtaf
EteesS
Oai/y
di~~e
Ch1rire
525,36
0
$
788.04
7sa.o,l
s
1'.l38.2S
7na,o•
s
1,663.63
788.04
s
1;460.50
788.0,1
s
l.017.99
788.04
$
l.SiS,47
7SS.O<t
s
4.132.96
7S8.04
$
4,690.45
788.04
$
$,147.93
788,iia
s
S,80S.,q
788.IJ.1
s
6,362.91
'768.04
s
6,920.39
788,04
s
7,4U.88
788.04
s
S,0lS.37
788.04
s,sn.es
788.04
s
9,150.34
788.04
$
9,707.83
lSS.04
s
l0,265.3l
788.0.t
s
1Q,8l<.S0
788,04
$
11,380.29
7SS,O.:S
11,93"7.78
788.04
)2,'95.16
700.04
$
13'\052.75
7K8.04
~
J3,610.2C.
)88.04
s
14,167,73
;aa.04
$
14,725.2l
768.04
s
L,,282.70
1aM4
s
lS,84011.9
718,04
s
LG,397,67
788,04
s
16,!SS,16
76&.04
s
17,Si!.SS
)88,04
s
18,070.13
738,01
s
18,627.62
188.04
5
19,IBS.ll
188.04
s
19,712.60
iee,d◄
$
20,300.08
788.04
s
20,s~1;57
788.0~ "
$
21,415.06'
SCHEDULE20
PERFORMANCE AND PAYMENT BONDS
PERFORMANCE BOND
Bond No. _________ _
KNOW ALL BY THESE PRESENTS, That we _________________ _
as Principal, and ____________________ , of _______ _
authorized to do business in the State of _____
_, as Surety, are held and firmly bound unto
_____________ , as Obligee, in the maximum penal sum of _____ _
Dollars .__ _______ _,, lawful money of the United States of America, for which payment well
and truly to be made we bind ourselves, our heirs, executors and assigns, jointly and severally, firmly by
this Surety Bond.
WHEREAS, the Principal has entered, or is about to enter, into a written agreement with the Obligee to
perform in accordance with the terms and conditions of the ______________ _
____________________________ (hereinafter referred to
as the Contract), said Contract is hereby referred to and made a part hereof;
NOW, THEREFORE, the condition of this obligation is such that if the above named Principal, its
successors and assigns, shall well and truly perform its obligations as set forth in the above mentioned
Contract, then this Bond shall be void; otherwise to remain in full force and effect pursuant to its terms.
Notwithstanding anything to the contrary in the Contract, the Bond is subject to the following express
conditions:
1. Whereas, the Obligee has agreed to accept this Bond, this Bond shall be effective for the definite
period of
_________ to ________ . The Bond may be extended, at the sole option of
the Surety, by continuation certificate for additional periods from the expiry date hereof. However, neither:
(a) the Surety's decision not to issue a continuation certificate, nor (b) the failure or inability of the
Principal to file a replacement bond or other security in the event the Surety exercises its right to not
renew or cancel this Bond (pursuant to paragraph 2 below), shall itself constitute a loss to the Obligee
recoverable under this Bond or any extension thereof.
2. This Bond may be canceled at any time upon thirty (30) days advance written notice from the Surety to
the Obligee.
3. The above referenced Contract has a term ending ____________ . Regardless of
the number of years this Bond is in force or the number of continuation certificates issued, this Bond shall
have the final and definite expiration date of ________ _, unless earlier nonrenewed or
canceled pursuant to paragraph 1 or 2 above.
4. No claim, action, suit or proceeding, except as hereinafter set forth, shall be had or maintained against
the Surety on this instrument unless such claim, action, suit or proceeding is brought or instituted upon
the Surety within one year from termination or expiration of the bond term.
5. Regardless of the number of years this Bond is in force or the number of continuation certificates
issued, the liability of the Surety shall not be cumulative in amounts from period to period and shall in no
event exceed the amount set forth above, or as amended by rider.
48
I 21s6938-1
6. Any notice, demand, certification or request for payment, made under this Bond shall be made in
writing to the Surety at the address specified below. Any demand or request for payment must be made
prior to the expiry date of this Bond.
Surety Address: ___________________ _
Attn: ________________ _
7. If any conflict or inconsistency exists between the Surety's obligations or undertakings as described in
this Bond and as described in the underlying Contract, then the terms of this Bond shall prevail.
SIGNED, SEALED AND DATED this ___ day of ___________ _
PRINCIPAL
By: _________________
_
, Principal
SURETY
By: _________________
_
, Attorney-in-Fact
49
I 2156938-1
PAYMENT BOND
Bond No. ________ _
KNOW ALL BY THESE PRESENTS, that we _______________ , as Principal,
and
, of
, authorized
to do business in _________ , as Surety, are held and firmly bound unto
_________________ , as Obligee, and to all persons who furnish labor or
material directly to the Principal for use in the prosecution of the work hereinafter named, in the maximum
penal sum of ________________________ _
Dollars ,..._ _____________ _,, lawful money of the United States of America, for
which payment well and truly to be made we bind ourselves, our heirs, executors and assigns, jointly and
severally, firmly by these presents.
WHEREAS, the Principal has entered, or is about it enter, into a written agreement with the Obligee, for
hereinafter referred to as the Contract) and more fully described in said Contract, said Contract is hereby
referred to and made a part hereof.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall
pay all persons who shall have furnished labor or material directly to the Principal for use in the
prosecution of the aforesaid work, each of which said persons shall have a direct right of action on this
instrument in his/her own name and for his/her own benefit, subject, however, to the Obligee's priority,
then this obligation to be void; otherwise to remain in full force and effect. Notwithstanding anything to the
contrary in the Contract, the Bond is subject to the following express conditions:
1. Whereas, the Obligee has agreed to accept this Bond, this Bond shall be effective for the definite
period of _________ to ________ . The Bond may be extended, at the sole
option of the Surety, by continuation certificate for additional periods from the expiry date hereof.
However, neither: (a) the Surety's decision not to issue a continuation certificate, nor (b) the failure or
inability of the Principal to file a replacement bond or other security in the event the Surety exercises its
right to not renew or cancel this Bond (pursuant to paragraph 2 below),shall itself constitute a loss to the
Obligee recoverable under this Bond or any extension thereof.
2. This Bond may be canceled at any time upon thirty (30) days advance written notice from the Surety to
the Obligee.
3. The above referenced Contract has a term ending ____________ . Regardless of the
number of years this Bond is in force or the number of continuation certificates issued, this Bond shall
have a final and definite expiration date of ____________ , unless earlier nonrenewed or
canceled pursuant to paragraph 1 or 2 above.
4. Regardless of the number of years this Bond is in force or the number of continuation certificates
issued, the liability of the Surety shall not be cumulative in amounts from period to period and shall in no
event exceed the amount set forth above, or as amended by rider.
5. Any notice, demand, certification or request for payment, made under this Bond shall be made in
writing to the Surety at the address specified below. Any demand or request for payment must be made
prior to the expiry date of this Bond.
Surety Address: ________________ _
Attn: ____________ _
I 2156938-1
50
6. No claim, action, suit or proceeding, except as hereinafter set forth, shall be had or maintained against
the Surety on this instrument unless such claim, action, suit or proceeding is brought or instituted upon
the Surety within one year from termination or expiration of the bond term; or after the expiration of ninety
(90) days after the day on which any person last supplied the labor and/or materials for which the claim is
made, whichever occurs first. If this limitation is void or prohibited by law, then the minimum period of
limitation available to Surety as a defense in the jurisdiction of the suit shall be applicable.
7. The amount of this Bond shall be reduced by and to the extent of any payment or payments made in
good faith hereunder.
8. If any conflict or inconsistency exists between the Surety's obligations or undertakings as described in
this Bond and as described in the underlying Contract, then the terms of this Bond shall prevail.
SIGNED, SEALED AND DATED this ___ day of _________ _, __
_
By: _________________
_
, Principal
SURETY
By: _________________
_
, Attorney-in-Fact
51
I 2156938-1
SCHEDULE21
PROJECT GUARANTOR AGREEMENT
PROJECT GUARANTOR AGREEMENT
THIS GUARANTY, made as of this 15th day of May, 2017, by SUEZ Water Inc., a Delaware
corporation (the "Project Guarantor'~, to and for the benefit of the City of Rahway, New Jersey
("City");
WITNESSETH :
WHEREAS, the City and SUEZ Water Environmental Services Inc. (the "Operator") has
entered into a Services Agreement for the Operation, Management, Maintenance and Repair of
the City of Rahway's Water Supply System dated May 15, 2017 ("Services Agreement"), for the
operation, management, maintenance and Repair of the City's Water Supply System (the
"System"); and
WHEREAS, the Project Guarantor is now willing to provide this Guaranty covering the
Operator's obligations under the Services Agreement;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Project Guarantor agrees as follows:
{l) Subject to tenns, conditions and limitations of the Services Agreement, the Project
Guarantor hereby guarantees the full and prompt performance by the Operator of all the
Operator's obligations under the Services Agreement when due and/or the payment of any
monies that may be due and owing by the Operator (the "Obligations") in acco!'dance with
the terms and conditions contained therein.
(2) The Project Guarantor further guarantees that in the event the Operator fails to duly and
properly perform and satisfy when due any and all of its Obligations under the Services
Agreement, Project Guarantor will, upon written demand of the City given following the
giving of written notice to the Operator and the expiration of all applicable cure periods
under the Services Agreement, setting forth the specific failure of the Operator, promptly
perform and satisfy those Obligations set forth in such demand which may include, but not
be limited to, the performance of any Services as defined in the Agreement and/or the
payment of any monies that may be due and owing by the Operator.
(3) The obligations of the Project Guarantor under this Guaranty (i) shall be absolute,
irrevocable and unconditional under any and all circumstances without regard to the
genuineness, validity, legality or enforceability of the Services Agreement (unless the City,
its successors or assigns, asserts any claim or defense based on any alleged invalidity,
illegality or unenforceability of the Services Agreement or any tenn thereof) or of any tenn
thereof, or lack of power or authority of any party (other than the City) to enter into the
Project Guarantor Agreement Page 1
Services Agreement, or any substitution, release or exchange of any other guaranty of or
any security for the Obligations, and in-espective of any other circumstances that might
otherwise constitute a legal or equitable discharge or defense other than as set forth in
Paragraph 3(g) hereot: if such defenses, including cure periods, have not already been
exhausted by the Operator, (ii) are in no way conditional upon any attempt to enforce
perfom1ance or compliance by the Operator and (iii) shall remain in full force and effect
until the performance by the Operator of an of its performance and payment Obligations
under the Agreement. This Guaranty shall continue to be effective or be automatically
reinstated, as the case may be, if at any time any payment by or on behalf of the Operator
or the Project Guarantor in respect of the Obligations is rescinded or must otherwise be
restored by the City to the Operator or such Project Guarantor, as the case may be, or any
assignee of the City for any reason whatsoever, including, but not limited to, any
proceedings in bankruptcy or reorganization, as though such payment bad not been made,
and the Project Guarantor agrees that it shall indemnify the City on demand for all costs
and expenses (including, witl101.1t limitation, foes and expenses of counsel) incurred by the
City in co1mection with any such rescission or restoration. Without limiting the generality
of the foregoing, the obligations of the Project Guarantor shall not be affected, reduced,
modified or impaired upon the happening from time to time of any of the following events,
whether or not with notice to or the consent of Project Guarantor:
(a) the failure to give notice to the Project Guarantor of the occurrence of a default by
the Operator under the te1111s and prnvisions of the Services Agreement;
{b) the modification or amendment (in accordance with the tenm, of the Services
Agreement) (whether material or otherwise) of ally obligation, covenant or
agreement set forth in the Services Agreement;
(c) any failure, omission, delay by or lack on the part of the City to assert or exercise
any right, power or remedy conferred on the City in the Services Agreement or this
Guaranty;
(d) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all
or substantially all of the City's a11d/or the Operator's assets, the marshalling of the
City's and/or the Operator's assets and liabilities, the receivership, insolvency,
bankruptcy, assignment for the benefit or creditors, reorganization, arrangement,
composition with creditors, or readjustments ot~ or other similar proceedings
affecting the City and/or the Operator or the Project Guarantor or any of the assets
of any of them;
(c) the assignment (in accordance with the terms of the Services Agreement) of any
right, title or interest of the City in the Water Supply System or the Services
Agret.,nent to any other person, including, without limitation, any person providing
financing to the City and any entity purchasing an interest in the Water Supply
System pursuant to a leverage lease or similar arrangement; or
(f) any other cause or circumstance, foreseen or unforeseen, whether similar or
Project Guarantor Agreement Pa1,>e 2
dissimilar to any of the foregoing; it being the intent of Project Guarantor that its
obligations hereunder shall not be discharged except by payment for and/or
performance of the Operator's Obligations, and then only to the extent of such
payment or perfonnance.
(g) Notwithstanding anything to the contrary contained herein, the obligations of the
Project Guarantor hereunder shall be subject, and the Project Guarantor shall be
entitled, to any defenses that the Operator may have or be entitled to under or in
connection with the Seivices Agreement, provided such defenses and limitations
have not already been exhausted by the Operator.
( 4) The Project Guarantor hereby waives diligence, presentment, demand of payment, protest
and all notices whatsoever, including, without limitation, notice of (1) any alterations or
modification of the Services Agreement, provided such alteration or modification has been
duly executed by the Operator, (2) the City's acceptance and reliance on this Guaranty and
(3) notice of default or demand in the case of default, provided such notice or demand has
been given to or made upon the Operator, and any requirement that the City exhaust any
right, power or remedy or proceed against the Operator.under the Services Agreement or
any other agreement or instrument referred to herein or therein or against any other person
under any other guarantee of, or security for, any of the Obligations.
(5) lf a demand, in accordance with Section 2 of the Guarani.y, is made upon the Project
Guarantor and the Project Guarantor duly and properly perfonns the obligations of the
Operator set forth in the demand, then (a) after satisfaction in foll of all of the Obligations,
the Project Guarantor shall be subrogated to the rights of the Operator against the City, and
(b) the City shall suspend the pursuit of any remedy against the Operator in respect of any
such Obligations which have been fully satisfied by the Project Guarantor hereunder.
(6) The Project Guarantor hereby represents and warrants that:
(a) it is duly organized and validly existing under the laws of the State of Delaware
and qualified to do business therein; it is not in default under any provisions of
the laws of said state or under its certificate of incorporation; it has
corporate power under said laws and under its certificate of incorporation to
enter into and perform all agreements and obligations on its part herein
contained; it has, by proper corporation action, duly authorized the entering into
and the execution and delivery of this Guaranty; entering into this Guaranty and
perfonnance hereunder is not an event of default or otherwise contrary to any
agreement or obligation by which it is bound; and this Guaranty has been duly
and validly executed and delivered by the Project Guarantor and constitutes its
legal, valid and binding obligations, enforceable in accordance with its tenns
(except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting rights of
creditors of Project Guarantor generally); and
(b) there is no action or proceeding pending or, to the best of its knowledge,
Project Guarantor Agreement Page 3
threatened against the Project Guarantor before any court or administrative
agency that could reasonably adversely affect its ability to perform its
obligations under this Guaranty and all authorizations, consents and approvals
of govenunenta\ bodies or agencies required in connection with the execution
and delivery of this Guara11ty or in connection with the pcrfonnance of its
obligations hereunder have been obtained as required hereunder or by law.
(7) TI1is Guaranty shall be governed by the laws of the State of New Jersey, and the Project
Guarantor hereby agrees to service of process in the State of New Jersey for any claim or
controversy arising out of this Guaranty or relating to any breach and to submit to the
exclusive jurisdiction of any court of competent jurisdiction in the State of New Jersey.
(8) This Guaranty shall be binding upon and enforceable against the Project Guarantor, its
successors and assigns, and it shall be for the benefit of the City; its successors, agents and
assigns.
(9) To the extent Project Gmirantor assl!mes directly the performance obligations, Project
Guarantor agrees to comply with applicable law, including the requirement of qualification
to transact business in the State ofNew Jersey.
IN WITNESS WHEREOI?, Project Guarantor hns executed this instrument the day and year first
above written.
PROJECT GUARANTOR
Received and Accepted:
CITY OF RAHWAY
B . n - ~ .~
~oµ
Title: /1'\ftl 0
Project Guarantor Agreement Page 4
Exhibit B
NEW YOF1K
NEW JERSEY
I.AW<lFFICES-
GLEI\IPOINTE CENTRE WEST
500 FRANK W. BURR BOULEVARD. SUITE 31
TEANECK. NEW JERSEY 07666
TELEPHOI\JE (201) 928-1100
TELEFAX
(201) 928-0588
WWW.DECOTIISLAW.COM
May 15, 2017
Mayor and Members of the Municipal Council
City of Rahway, in the
County of Union, New Jersey
RE:
Services Agreement for the Operation, Management, Maintenance and
Repair of the City of Rahway's Water Supply System with Suez Water
Environmental Services Inc.
Ladies and Gentlemen:
This firm has served as Special Counsel to the City of Rahway, in the County of Union, a
political subdivision of the State of New Jersey (the "City"), in connection with the Privatization
(as defined below) of the City's Water System (as defined below) pursuant to the New Jersey
Water Supply Public-Private Contracting Act (N.J.S.A. 58:26-19 et. seq.) (the "Act"). The City
owns and operates a water treatment and distribution system (the "Water System").
The
components of the Water System have been constructed over many years. Such improvements
have been financed, in part, with the proceeds of obligations of the City, the interest on which is
excludable from gross income for Federal income tax purposes (the "City Obligations"),.
The City will enter into a twenty year management services agreement (the "Agreement")
with Suez Water Environmental Services Inc. (the "Operator"), an affiliate of Suez Water Inc., a
Delaware Corporation (the "Parent Company") to provide operation, management, maintenance
and repair services to the Water System owned by the City (the "Privatization"). Pursuant to an
ordinance of the City finally adopted March 13, 2017 (the "Ordinance"), the City has authorized
the Privatization and the execution and delivery of the Agreement. The effective date of the
Agreement and the commencement date of the Privatization are May 15, 2017.
In our role as Special Counsel to the City for the Privatization, we have been requested to
advise the City whether the Privatization of the Water System may be accomplished pursuant to
the terms of the Agreement, without adversely affecting the excludability for Federal income tax
purposes of interest on existing City Obligations and future City Obligations issued to finance
improvements to the Water System.
In our capacity as Special Counsel and as a basis for the opinions set forth below, we
have examined (a) a copy of the Ordinance; (b) a copy of the Agreement; (c) such matters of
law, including, inter alia, the Act and the Internal Revenue Code of 1986, as amended and the
regulations promulgated thereunder and Revenue Procedure 2017-13, 26 C.F.R. 601.601 ("Rev.
1931140
M/\Y 15, 2017
PAGE 2
Proc."), which Rev. Proc. modifies, amplifies and supersedes Rev. Proc. 2016-44 and 2016-36
IRB 316 (collectively, the "Code"); and (d) such other agreements, proceedings, certificates,
records, approvals, resolutions, documents and legal opinions as to various matters with respect
to the Agreement, the City Obligations and the Privatization. We have assumed and relied upon
the genuineness, accuracy and completeness of all of the documents and other instruments which
we have examined.
Based on the foregoing, we are of the opinion that, under the Code, and applicable rulings
and judicial decisions interpreting the Code, as existing on the date hereof, the Privatization of
the Water System and the terms and provisions of the Agreement will not adversely affect the
excludability of interest for Federal income tax purposes on
outstanding City Obligations.
Based upon the foregoing, and under existing Code rulings and judicial decisions, we are also of
the opinion that the Privatization of the Water System will not adversely affect the ability of the
City to issue bonds or notes or other obligations of the City in the future to finance capital
improvements to the Water System during the term of the Agreement, the interest on which
would be excludable from gross income under the Code.
Except as stated above, we express no opinion as to any matter including, in particular,
any other federal, state or local tax consequences of acquiring, carrying, owing or disposing of
City Obligations.
In rendering our opinion, we have assumed that the City has complied with and will
continue to comply with the applicable requirements of the Code and the Agreement, including
requirements relating to, inter alia, the use and investment of proceeds of the City Obligations
heretofore issued or to be issued to finance the costs of the City's Water System, and rebate to
the United States Treasury specified arbitrage earnings, if any. Failure of the City to comply
with such covenants could result in the interest on the City Obligations being subject to federal
income taxation from the date of issue. We have not undertaken to monitor compliance with
such covenants or to advise any party as to changes in the law after the date hereof that affect the
tax-exempt status of the interest earned on the City Obligations.
The opinions expressed above are being rendered on the basis of federal law, as presently
enacted and construed, and we assume no responsibility to advise any party as to any changes in
law or fact subsequent to the date hereof.
This is an opinion letter and not a warranty or guaranty of the matters discussed herein.
This letter is being provided solely for the benefit of the City and may not be provided to
or relied upon by any other person, party, firm or organization without our prior written consent.
Very truly yours,
DeCotiis, FitzPatrick, Cole & Giblin LLP
1931140-2
YORK
NEW JERSEY
-L;\\V(lFFl('ES-
GLEf,JPOINTE CENTRE WEST
500 FRANK W BURR BOULEVARD. SUITE 31
TEANECK. NEW JERSEY 07666
TELEPHONE 1201) 928-1100
TELEFAX
(201) 928-0588
WWW.DECOTIISLAW.COM
May 15, 2017
Hon. Mayor Samson D. Steinman & Council
The City of Rahway New Jersey
1 City Hall Plaza
Rahway, NJ 07065
Suez Water Environmental Services Inc.
461 From Road
Suite 400
Paramus, NJ 07652
RE:
City of Rahway
Service Agreement for the Operation, Management, Maintenance & Repair of
the City of Rahway's Water Supply System
Ladies & Gentlemen:
We have acted as special counsel to the City of Rahway, a public body corporate and politic in
the County of Union, State of New Jersey (the "City") in connection with the procurement, negotiation,
and approval of the above referenced Services Agreement (the "Agreement") pursuant to the New Jersey
Water Supply Public Private Contracting Act, N.J.S.A. 58:26-19 et. seq., (the "Act").
In connection with our representation of the City, we have examined the following:
I.
The Request For Qualifications and Proposals for a Services Agreement for the
Operation, Management, Maintenance and Repair of the City of Rahway 's Water Supply and Sewer
Collection Systems, dated April 30, 2015;
2.
The Agreement;
3.
The Local Finance Board Application dated February 14, 2017, and the Local Finance
Board Approval dated March 8, 2017;
4.
The Board of Public Utilities Approval dated May 1, 2017; and
5.
Ordinance No. 0-03-17 of the City of Rahway, entitled Ordinance of the City of Rahway
PAGE2
Authorizing the Award of A Services Agreement to Suez Water Environmental Services Inc., to Provide
Contract Operator Services for the City's Water Supply Facilities and Infrastructure, dated March 3,
2017;
The documents referred to above are hereinafter collectively referred to as the "Agreement
Documents".
In the capacity of special counsel to the City, we are generally familiar with its affairs and
operations. We have examined and are familiar with all of the Agreement Documents.
In connection with the Agreement, we have also considered such questions of law as we have
deemed relevant and necessary for the purposes of this opinion. In making our examination, we have
assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals
and the conformity to original documents of all documents submitted to us as copies. In making our
examination of the Agreement Documents executed by entities other than the City, we have assumed
that each of those other entities had the power to enter into and perform all their respective obligations
under them, and have also assumed the authorization by each of those other entities of all requisite
action and the due execution and delivery of those documents by each other entity.
Based upon the foregoing, we are of the opinion that:
A.
The City is a public body corporate and politic, in the County of Union, State of New
Jersey, duly authorized to transact business in New Jersey.
B.
The City has the power and authority to own its water supply system, to conduct its
business, to execute and deliver the Agreement and the Agreement Documents, and to perform and be
bound by the obligations, agreements and covenants required to be performed by, or binding upon, it
under the Agreement.
C.
To the best of our knowledge, after due inquiry, the authorization, execution and
delivery of the Agreement Documents do not, and the performance by the City of its obligations
thereunder will not, violate any provision of the City's charter or governance documents, or any law,
regulation, order, decree, writ or injunction of any court, public board or body or of the City, or of any
agreement, indenture, note or other instrument which is binding upon the City or its properties, including
the water supply system and, except to the extent valid consents have been obtained, do not and will not
require the consent of any person or entity whatsoever, including, without limitation, any governmental
authority which oversees the City.
D.
The execution and delivery of the Agreement Documents have been duly authorized
by all requisite governing body action of City and will not violate any provision of any charter or
governance documents of the City and, to our best knowledge, will not violate any provision of any
indenture, agreement, or other instrument to which the City is a party or any provision of law, rule or
regulations or any order of any court or other agency of government applicable to the City.
E.
To the best of our knowledge, after due inquiry, (i) the City is not in default in the
performance of its obligations under any agreement, indenture, note or other instrument which is binding
upon the City or its water supply system, nor are we aware of any allegation of such a default, (ii) no
conditions exist which, with notice or passage of time or both, would constitute such a default, and (iii)
2154215-1
PAGE3
there is no action, suit, proceeding, inquiry or investigation, at law or in equity, pending before any
court, public board or body, or to the best of our knowledge, threatened, against the City or its water
supply system nor is there any basis therefor, wherein an unfavorable decision, ruling or finding would
in any way materially and adversely affect the transactions contemplated by the Agreement Documents
or the validity or enforceability thereof or the financial condition of the City.
The opinions expressed above are subject to (i) principles of equity which may limit the
availability of certain equitable remedies provided the unavailability of said remedies should not prevent
the realization by the Suez of the practical benefits intended to be provided by the Agreement; and (ii)
bankruptcy, insolvency, reorganization, moratorium and other laws applicable to creditor's rights or the
collection of debtor's obligations generally.
f
,.~ ya~ J. Scerbo
II
2154215-1
Exhibit C
CITY OF RAHWAY
STATE OF NEW JERSEY
Board of Public Utilities
44 South Clinton Avenue, 3rd Floor, Suite 314
Post Office Box 360
Trenton, New Jersey 08626-0350
www.ni.gov/bpu/
WATER
Agenda Date: 4/21 /17
Agenda Item: 5A
DRAFT SERVICES AGREEMENT FOR THE
OPERATION, MANAGEMENT, MAINTENANCE
AND REPAIR OF THE CITY OF RAHWAY'S
WATER SUPPLY SYSTEM APPLICATION FOR
APPROVAL OF SERVICES AGREEMENT
)
)
)
)
)
)
)
ORDER APPROVING A PUBLIC-
PRIVATE CONTRACT BETWEEN
THE CITY OF RAHWAY AND SUEZ
WATER ENVIRONMENTAL
SERVICES INC.
DOCKET NO. WO17020135
Parties of Record:
Ryan J. Scerbo, Esq., DeCotiis, FitzPatrick, Cole & Giblin, LLP, on behalf of the City of
Rahway
Carla E. Hjelm, Esq., Corporate Counsel, SUEZ Water Environmental Services Inc.
Stefanie A. Brand, Esq., Director, New Jersey Division of Rate Counsel
BY THE BOARD:
On July 19, 2016, pursuant to the New Jersey Water Supply Public-Private Contracting Act,
N.J.S.A. 58:26-19 et seq. ('Water Act"), the City of Rahway ("Petitioner" or "Rahway'') requested
approval of an executory contract with SUEZ Water Environmental Services Inc. ("Company'' or
"SUEZ") for the operation, management, maintenance and repair of the Rahway water SURPIY
system, which was entitled "Services Agreement for the Operation, Management, Maintenance
and Repair of the City of Rahway's Water Supply System By and Between City of Rahway and
SUEZ Water Environmental Services Inc." ("Services Agreement"). The Petitioner requested
approval from the New Jersey Board of Public Utilities ("Boardn), the New Jersey Department of
Community Affairs, Division of Local Government Services, Local Finance Board ("DCA"), and
the New Jersey Department of Environmental Protection ("NJDEP" or "DEP"), in accordance
with N.J.S.A. 58:26-24{f) and N.J.S.A. 58:26-25.
At its September 23, 2016 meeting, following discovery and the development of a record, the
Board approved the contract (" Agreement"). Initially, the contract structure selected by Rahway
included a concession fee.
Subsequent to this approval, Rahway submitted an updated or
revised contract package under a cover letter dated February 14, 2017, whereby Rahway
advised the reviewing State agencies: "Representatives from the Office of the Attorney General
assisting [DCA] ... although not objecting to the concession fee itself, did question the process
Agenda Date: 4/21/17
Agenda Item: SA
the City intended to utilize to finance the concession fee. As a result, the City and SUEZ
revaluated the contract structure.
Ultimately, the parties decided to move forward with a
contract structure that does NOT include~ concession fee. To be clear the only substantive
change to the Agreement since the time of the City's initial application to the agencies is the
removal of the concession fee component." (Letter at 2.)
BACKGROUND/PROCEDURAL HISTORY1
Rahway is a municipal corporation within the County of Union. As the owner and operator of a
water supply, transmission and distribution system, pursuant to the County and Municipal Water
Supply Act, N.J.S.A. 40A:31-1 et seq., Rahway provides services to its residents.2
·
Rahway has jurisdiction, pursuant to N.J.S.A. 40A:31-1 et~. to determine the terms and
conditions under which it supplies water to customers within its municipal limits.
Rahway
determined to enter into a contract for services pursuant to the Water Act.
Provided with the above information, Rahway agreed to enter into a 20-year contract with SUEZ
for operation, management, maintenance and·repair services for its water supply system.
A new public hearing on the proposed contract with SUEZ was noticed in the Star Ledger, a
·newspaper printed and circulated daily in the City of Rahway, on January 11, 2017. This notice
was published pursuant to N.J.S.A. 58:26-~4(b).
A public hearing was conducted on January 26, 2017 at 6:30 p.m. at the Rahway Public U,brary.
A verbatim record of the ~earing was produced as required pursuant to N.J.S.A. 58:26-24(d). A
few members of the public requested to speak at the public hearing and a few comments were
made concerning the time allotted for public comment concerning the revised Agreement. The
individuals felt the seven days provided by Rahway for the public to provide written comments
following the close of the public hearing was not sufficient. Also, it is noted that Rahway allowed
the public to submit written comments for a period of two weeks following the date of the public
hearing, and no written com.ments or statements were received.
-
TERMS OF THE PUBLIC-PRIVATE CONTRACT
,,.
Due to the concession fee change, the Fixed Management Fee for the Contract Year beginning
on the Commencement Date shall be $3,517,017. The Fixed Management Fee shall be
increased each Contract Year by the Index Factor. A portion of the Fixed Management Fee
includes an Annual Maintenance Cap. For the avoidance of doubt, Rahway and SUEZ
acknowledge that the Annual Maintenance Cap is not an additional amount, but is part of the
1 Because the concession fee is the only substantive change to the Services Agreement approved by the
Board in its September 23, 2016 Order, the Board incorporates herein all relevant and applicable findings
of facts and discussions from said Order.
2 Rahway has 8,259 customers located within its boundaries. In addition, 79 customers are located
outside of Rahway's boundaries. All of these customers will be affected by the draft Services Agreement
and are billed individually at the same rates applied to customers located within Rahway's boundaries.
The customers located outside of the boundaries of Rahway are located in the following communities:
Avenel (22), Clark (5), Colonla (4e), Linden (5), and Woodbridge (1).
2
BPU DOCKET NO. WO17020135
Agenda Date: 4/21/17
Agenda Item: SA
Fixed Management Fee. As of the Commencement Date, the Annual Maintenance Cap is
$500,100.
The Annual Maintenance Cap shall be increased each Contract Year by the
Maintenance Index Factor.
Additionally, the Fixed Management Fee shall be increased each Contract Year, beginning
January 1, 2018, to reflect any documented increases or decreases in electric rates for the prior
contract year, with such change to be implemented on the first day of the contract year following
such increase. For the avoidance of doubt, any increase in electric rates is a pass-through and
not subject to escalation by the Maintenance Index Factor.
Rahway established a new one-time rate increase effective April 1, 2017, which is effectively a
$6 dollar per quarter increase to the typical residential user .. Rahway retains responsibility for
setting rates and charges. SU~ agrees to implement revised rates and charges on a date
specified by Rahway within 30 days after notification from Rahway; except for structural rate
changes, which shall be implemented within 60 days after notification from Rahway.
Effective on the Commencement Date and as of each annual anniversary thereafter throughout
the term of the Agreement, Rahway agrees, to the extent permitted by law, to increase its rates
for the supply of water services to customers of the water supply system to at least the rates
required to cover the Annual Service Fee to be paid to SUEZ for services provided. Nothing
herein shall be construed to restrict Rahway from establishing rates for the supply of water
service to the customers of the water supply system that are in excess of the rates required to
cover the Annual Service Fee.
On January 26, 2017, the Petitioner submitted a Hearing Report to the DEP, which, pursuant to
N.J.S.A. 58:26-25(a), must complete its review and submit its comments to the Board and DCA
within 60 days of its receipt thereof. To date, the Board has received no comments from the
DEP and is unaware of any prevailing issues.
By letter dated February 28, 2017, Petitioner consented to an extension for the Board to act on
its application through May 1, 2017.
·
•
The revised contract was approved at the DCA's March 8, 2017 agenda meeting.
By letter dated March 30, 2017, the New Jersey Division of Rate Counsel filed comments and
advised the Board that it did not object to the Public-Private contract and w~ not opposed to
·the Board's approval of the Petition.
DISCUSSIONS AND FINDINGS
N.J.S.A. 58:26-25(c)(4} states that once the Board approves a proposed contract, the
jurisdiction of the Board terminates until or unless the contract is amended to change the
formula or other basis of determining charges contained therein.
After review of the record herein, the Board FINDS that the statutory criteria listed herein above
have been met.
3
BPU DOCKET NO. WO17020135
Agenda Date: 4/21/17
Agenda Item: 5A
1. Suez Water Environmental Services Inc. (formerly named United Water Environmental
Services Inc.) has the financial capacity, technical and administrative experience to
ensure continuity of service over the terms of the contract.
N.J.S.A. 58:26-
25(c)(1 ). SUEZ Water Environmental Services, Inc. is a wholly owned subsidiary of
SUEZ Water, Inc., which in turn owns SUEZ Water Resources, a Delaware Corporation,
of which certain of its subsidiaries are Board regulated entities. SUEZ Water, Inc. is a
wholly owned subsidiary of SUEZ North America Inc., which is itself a wholly owned
subsidiary of SUEZ Groupe SAS, a French corporation which is a wholly owned
subsidiary of SUEZ SA, a French limited liability company. SUEZ Water Environmental
Services, Inc. (and its predecessors) has demonstrated over the years that it has the
financial capacity, and technical and administrative expertise to meet all the demands of
the proposed contract.
2. The terms of the contract are not unreasonable given the services that are to be
performed by SUEZ.
N.J.S.A 58:26-25(c)(2).
The Board believes that under the
circumstances of this matter and as set forth in the contract, a 20-year term is
appropriate.
3. N.J.S.A. 58:26-25(c)(3) is intended to protect franchise customers outside of Rahway.
Ninety-nine percent of Rahway's customers are located within Rahway's l::loundaries.
Thus, there is no subsidization of customers outside the municipal boundaries.
4. The contract contains provisions addressing the following:
N.J.S.A. 58:26-23(e)(1): The charges, rates, fees or formulas to be used to
determine the charges, rates, or fees to be charged by the public entity for the
water supply services to be provided.
~.J.S.A. 58:26-23{e)(2): The allocation of the risks of financing and constructing
planned capital additions or upgrades to existing water supply facilities are
incorporated.
N.J.S.A. 58:26-23(e)(6): The employment of current smployees of the public
entity whose positions of employment will be affected by the terms of the contract
are addressed.
Therefore, based upon the above, the Board HEREBY APPROVES the amended Public-Private
Contract between the City of Rahway and SUEZ Water Environmental Services Inc. subject to
the following provision:
Any extension of the contract beyond the 20-year term pursuant to N.J.S.A 58:26-
25( c)(4}, and any amendment of the contract to change the formula or other basis of
determining charges contained therein, shall be subject to Board review and approval.
4
BPU DOCKET NO. WO17020135
This Order shall bl effective on May 1, 2017.
DATED: ~ ~\ /7
J~E
L. IORDALISO
j!DMMISSIONER
~ J.
bNN~M~
COMMISSIONER
ATTEST:
I HERESY CERTIFY that the withln
document is a true copy of the orig!nal
In the files of the Board of Public Utilitl>.,s
cQ_~~
5
Agenda Date: 4/21/17
Agenda Item: 5A
BOARD OF PUBLIC UTILITIES
BY:
SIONER
~~~
~IVUKULA
.
COMMISSIONER
BPU DOCKET NO. WO17020135
Agenda Date: 4/21/17
Agenda Item: 5A
CITY OF RAHWAY
DRAFT SERVICES AGREEMENT FOR THE OPERATION, MANAGEMENT, MAINTENANCE
AND REPAIR OF THE CITY OF RAHWAY'$ WATER SUPPLY SYSTEM APPLICATION FOR
APPROVAL OF SERVICES AGREEMENT
BPU DOCKET NO. WO17020135
SERVICE LIST
Ryan J. Scerbo, Esq.
DeCotiis, FitzPatrick, Cole & Giblin, LLP
Glenpointe Centre West
500 Frank W. Burr Boulevard, Suite 31
Teaneck, NJ 07666
RScerbo@decotiislaw.com
Carla E. Hjelm, Esq.
Suez Water Nj
461 From Road, Suite 400
Paramus, NJ 07652
Carla.Hjelm@suez-na.com
Stefanie A. Brand, Esq., Director
Division of Rate Counsel
140 East Front Street, 4th Floor
Post Office Box 003
Trenton, NJ 08625-0003
sbrand@rpa.state. nj. us
Patricia McNamara, Executive Secretary
Local Finance Board
D,epartment of Com·munity Affairs
101 South Broad Street
Post Office Box 800
Trenton, NJ 08625
Patricia.McNamara@dca.nj.gov
Robert Martin, Commissioner
Department of Environmental Protection
401 East State Street, 7th Floor
Post Office Box 402
Trenton, NJ 08625
Bob.Martin@dep.nj.gov
6
Irene Kim Asbury, Esq.
Secretary of the Board
Board of Public Utilities
44 South Clinton Avenue, 3rd Floor, Suite 314
Post Office Box 350
Trenton, NJ 08625-0350
lrene.asbury@bpu.nj.gov
Maria Moran, Director
Division of Water
Board of Public Utilities
44 South Clinton Avenue, 3rd Floor, Suite 314
Post Office Box 350
Trenton, NJ 08625-0350
Maria.moran@bpu.nj.gov
BPU DOCKET NO. WO17020135
CHRIS CHRISTIE
Governor
KIM GUADAGNO
Lt. Governor
State of New Jersey
DIVISION OF RA TE COUNSEL
140 EAST FRONT STREET, 4TH FL
P. o. Box003
TRENTON, NEW JERSEY-08625
March 30, 2017
Via Hand Delivery & First Class Mail
Irene Kim Asbury, Secretary
Board of Public Utilities
44 South Clinton Ave., 3rd Floor
Suite 314
P.O. Box 350
Trenton, NJ 08625
Re:
I/MIO City of Rahway Amendment to Draft Services
Agreement for the Operation, Management, Maintenance
and Repair of the City of Rahway's Water Supply System
BPU Docket No. WOl 7020135
Dear Secretary Asbury:
STEFANIE A. BRAND
Director
Please accept for filing an original and eleven copies of the Division of Rate Counsel's
("Rate Counsel") comments regarding the above referenced matter. Please date stamp the
additional copy as "filed" and return it in the enclosed, self-addressed, stamped envelope. Thank
you for your consideration and attention to this matter.
On February 14, 2017, The City of Rahway (the "City") filed a petition with the Board of
Public Utilities ("Board") requesting Board approval of a substantive amendment (the
"Amendment") to its proposed Draft Services Agreement for the Operation and Management,
Maintenance and Repair of the City of Rahway's Water Supply System Agreement (the
"Agreement") with SUEZ Environmental Services, Inc. ("SUEZ"). The Board issued an Order
approving the Agreement and a public-private contract between the City and SUEZ on
Tel: (609) 984-1460 • Fax: (609) 292-2923 • Fax: (609) 292-2954
http:/lwww.nj.gov/ma
E-Mail: njratepayer@rpa.state.nj.us
New Jersey Is An Equal Opportunity Employer • Printed on Recycled Paper and Recyclable
September 23, 2016, under docket number WO16070678 (the "Prior Proceeding").
Rate
Counsel participated extensively in the Prior Proceeding by propounding discovery and
ultimately filing a non-objection comment letter with the Board on September 2, 2016 (the
"Comment Letter").
The City owns and operates a water production and distribution system serving roughly
8,329 accounts within the confines of the City. The City produces water from a water filtration
plant drawing water from the Rahway River. The City also purchases water from Middlesex
Water Company under the terms of a long-term water supply agreement. The City followed the
procedures set out in the New Jersey Water Supply Public-Private Contracting Act (N.J.S.A.
58:26-19; et seq., hereafter the "Act") and proposes to enter into a twenty-year operating contract
with SUEZ. The details of the Agreement are outlined in the Order and Comment Letter of the
Prior Proceeding.
The Amendment at issue is the removal of the concession fee component of the contract.
There are no other amendments requiring approval at this time. The Agreement continues to
include an initial annual fee $4,517,017 per year to be charged by SUEZ to the City. The
Agreement was previously a concession arrangement that would have provided the City an
annual concession payment of $1,000,000 for each year of the term of the Agreement. Absent
the concession fee, the City now proposes a one-time rate increase to the City's customers,
effective April 1, 2017, which is effectively a $6 per quarter increase to the typical residential
user.
Rate Counsel has reviewed the Petition and responses to Board Staff discovery requests
R-1 through R-6. Rate Counsel is satisfied that the Amendment does not violate the limited
scope of review set forth in the Act. In particular, Rate Counsel is confident that customers of
the regulated affiliate, SUEZ Water New Jersey, can be properly protected from any
subsidization of the cost of providing services to SUEZ through the normal rate setting process.
Accordingly, Rate Counsel is not opposed to approval of the Petition.
SEMI
cc: Service list
Respectfully submitted
Stefanie A. Brand, Esq.
Director, Division of Rate Counsel
By: __ ~-----------
Susan E. McClure, Esq.
Assistant Deputy Rate Counsel
Irene Kim Asbury, Secretary
Board of Public Utilities
44 South Clinton Ave.
P.O. Box 350
Trenton, NJ 08625
Maria L. Moran
Board of Public Utilities
44 South Clinton Ave.
P.O. Box 350
Trenton, NJ 08625
Veronica Beke, DAG
Board of Public Utilities
44 South Clinton Ave.
P.O. Box 350
Trenton, NJ 08625
Robert Martin, Commissioner
Depart. of Environmental Protection
401 East State Street, ?'h Floor
P.O. Box 402
Trenton, NJ 08625
Justin Cederberg
Administrative Analyst II
Bureau of Rates
NJ Board of Public Utilities
44 South Clinton A venue, 9th Floor
P.O. Box350
Trenton, NJ 08625
I/M/O City of Rahway Amendment to
Draft Services Agreement for the
Operation, Management, Maintenance
and Repair of the City ofRahway's Water
Supply System
BPU Docket No. WO017020135
Stefanie A. Brand, Director
Division of Rate Counsel
140 East Front Street, 4th Floor
P.O. Box 003
Trenton, NJ 08625
*Debra F. Robinson, Esq.
Division of Rate Counsel
140 East Front Street, 4th Floor
P.O. Box003
Trenton, NJ 08625
Susan E. McClure, Esq.
Division of Rate Counsel
140 East Front Street, 4th Floor
P.O. Box 003
Trenton, New Jersey 08625
Kathryn A. Hart, Legal Assistant
Division of Rate Counsel
140 East Front Street, 4th Floor
P.O. Box003
Trenton, NJ 08625
Karen Fell, Director
Water Systems Operations
Depart. of Environmental Protection
401 East State Street, 7th Floor
P.O. Box402
Trenton, NJ 08625
Ryan J. Scerbo, Esq.
DeCotiis, FitzPatrick & Cole LLP
Glenpointe Centre West
500 Frank W. Burr Blvd., Ste 31
Teaneck, NJ 07666
Carla E. Hjelm, Esq.
Suez Water NJ
461 From Road, Suite 400
Paramus, NJ 07652
Patricia McNamara
Executive Secretary
Local Finance Board
Department of Community Affairs
l 0 1 South Broad Street
P.O. Box 800
Trenton, NJ 08625
Carolyn McIntosh, DAG
Division of Law
124 Halsey Street
P.O. Box 45029
Newark, NJ-07101
ExhibitD
CHRIS CHRISTIE
Governor
KIM GUADAGNO
Lt. Governor
Cheryl Oberdorf, Esq.
$>late of ~ehl j{ er~ep
DEPARTMENT OF COMMUNITY AFFAIRS
101 SOUTH BROAD STREET
POBox803
TRENTON, NJ 08625-0803
April 21, 2017
DeCotiis, Fitzpatrick & Cole, LLP
500 Frank W. Burr Blvd.
Teaneck, New Jersey 07666
Dear Ms. Oberdorf:
CHARLES A. RICHMAN
Commissioner
Enclosed please find a Local Finance Board (Board) Resolution(s) reflecting the
action the Board took at the meeting held on Wednesday, March 8, 2017.
If you have any questions regarding this information, please feel free to contact
me at (609) 292-4537.
Enclosure( s)
cc: Dennis Enright
Rayna E. Harris
Dieter Lerch
Sincerely,
/ifuw_ 4-& 70~,
Patricia Parkin McNamara
~
Executive Secretary
Local Finance Board
New Jeney i.~ an Equal Opportuni(Y Empl,~1•er • Printed 011 Recycled paper anti Recyclable
Cmus CHRISTIE
Governor
KIM GUADAGNO
Lt. Governor
$)tate of ~ew Jer~ep
DEPARTMENT OF COMMUNITY AFFAIRS
101 SOUTII BROAD STREET
POBox803
TRENTON, NJ 08625-0803
LOCAL FINANCE BOARD
RESOLUTION
CHARLES A. RICHMAN
Commissioner
WHEREAS, the New Jersey Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et
seq., authorizes municipalities to enter into long term contracts for the operation, maintenance and
management of their water supply facilities; and
WHEREAS, the New Jersey Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et
seq., provides that, prior to executing long term contracts pursuant to these provisions,
municipalities must submit such contracts to the Local Finance Board in the Division of Local
Government Services for review and approval; and
WHEREAS, the City of Rahway has, in accordance with the requirements of the aforementioned
statutes, submitted an application to the Local Finance Board for the purpose of obtaining the
Board's approval of a proposed contract between the City of Rahway and SUEZ Water
Environment Services, Inc. for the operation, maintenance, management and repair of the City of
Rahway's water supply system; and
WHEREAS, the Local Finance Board, in reviewing such a contract pursuant to provisions of the
New Jersey Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et seq., is required to
ensure that the contract satisfies the following statutory requirements:
( 1)
That the terms of the proposed contract will not materially impair the ability of the
municipality to punctually pay principal and interest due on its outstanding
indebtedness and to supply other essential public improvements and services;
(2)
That any concession fee or other monetary benefit paid by a private firm as a result
of the contract will be paid directly to the municipality and will be used solely for
the purpose of reducing or off-setting property taxes; and
(3)
That the contract contains the provisions required by paragraphs (3), (4), (5), (7)
and (8) of subsection e. of section 5 of P.L. 1995, c. 101 (C. 58:26-23); and
WHEREAS, the Local Finance Board, following receipt of the City of Rahway's application for
approval of a proposed contract for the operation, maintenance, management and repair of the City
of Rahway's water supply system by SUEZ Water Environment Services, Inc. has reviewed that
contract to determine whether it satisfies the aforementioned requirements of the New Jersey
Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et seq; and
New Jersey is an Equal Opportunity Employer• Printed on Recycled paper and Recyclable
Local Finance Board
City of Rahway
March 8, 2017
WHEREAS, in the course of its review of the proposed contract between the City of Rahway and
SUEZ Water Environment Services, Inc. for the operation, maintenance, management and repair
of the City of Rahway's water supply system, the Local Finance Board has, in accordance with the
provisions of N.J.S.A. 58:26-25(f) and N.J.S.A. 58:27-25(e), availed itself of the services of the
staff of the Division of Local Government Services and has been provided with a report with
regard to the contract by the Division staff; and
WHEREAS, the Local Finance Board, in reviewing the contract, has also conducted a public
hearing on March 8, 2017, at which time it has received testimony from various representatives of
the City of Rahway with regard to the contract; and
WHEREAS, the Local Finance Board, in accordance with its responsibilities under the New
Jersey Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et seq., has considered the
City of Rahway's application; the terms and provisions of the contract which the City of Rahway
proposes to execute with SUEZ Water Environment Services, Inc. the testimony and other
information provided to the Board by the City of Rahway with regard to the contract; and such
other information as the Board has deemed necessary and appropriate; and
WHEREAS, on the basis of its consideration of the City of Rahway's application, the Local
Finance Board is satisfied that the proposed contract satisfies the requirements prescribed under
the New Jersey Water Supply Public-Private Contracting Act, N.J.S.A. 58:26-19 et seq.: and
WHEREAS, the Local Finance Board, has accordingly determined to approve the proposed
contract in accordance with the provisions of the New Jersey Water Supply Public-Private
Contracting Act, N.J.S.A. 58:26-19 et seq. under the conditions: (1) the City of Rahway appoint an
individual as contract administrator to monitor compliance of the Operator, as well as, to ensure
that the oversight and administrative duties are performed as outlined in the Service Agreement;
(2) whomever the City names to this position should first be approved by the Director of the
Division of Local Government Services; and (3) among the contract administrator's duties would
be the preparation of a quarterly report, issued to the City and the Local Finance Board, during the
term of the Agreement. This report would include, but not limited to, a certification of Operator's
compliance with the terms of the Agreement and a report of any disputes between the City and
SUEZ Water Environment Services, Inc.;
NOW, THEREFORE, BE IT RESOLVED by the Local Finance Board that the Board hereby
determines that the contract which the City of Rahway proposes to execute with SUEZ Water
Environment Services, Inc. for the operation, maintenance, management and repair of the City of
Rahway's water supply system will not materially impair the ability of the City of Rahway to
punctually pay the principal and interest due on its outstanding indebtedness and to supply other
essential public improvements and services; and
Local Finance Board
City of Rahway
March 8, 201 7
BE IT FURTHER RESOLVED by the Local Finance Board that the Board hereby determines
the contract which the City of Rahway proposes to execute with SUEZ Water Environment
Services, Inc. for the operation, maintenance, management and repair of the City of Rahway's
water supply facilities contains the provisions required by N.J.S.A. 58:26-23(e) (3), (4), (5), (7)
and (8) of the New Jersey Water Supply Public-Private Contracting Act; and
BE IT FURTHER RESOLVED by the Local Finance Board that the Board has determined that
no concession fees will be paid by SUEZ Water Environment Services, Inc. pursuant to the
proposed contract; and
BE IT FURTHER RESOLVED that, in light of the foregoing findings and determinations, the
Local Finance Board has determined to grant and accordingly hereby grants approval to the
contract proposed to be executed by the City of Rahway with SUEZ Water Environment Services,
Inc. for the operation, maintenance, management and repair of the City of Rahway's water supply
system under the conditions: (1) the City of Rahway appoint an individual as contract
administrator to monitor compliance of the Operator, as well as, to ensure that the oversight and
administrative duties are performed as outlined in the Service Agreement; (2) whomever the City
names to this position should first be approved by the Director of the Division of Local
Government Services; and (3) among the contract administrator's duties would be the preparation
of a quarterly report, issued to the City and the Local Finance Board, during the term of the
Agreement. This report would include, but not limited to, a certification of Operator's compliance
with the terms of the Agreement and a report of any disputes between the City and SUEZ Water
Environment Services, Inc.; and
BE IT FURTHER RESOLVED that the Executive Secretary of the Local Finance Board is
hereby authorized and directed to certify or endorse such documents or instruments as may be
necessary, convenient or desirable in order to carry out the purpose and provisions of this
resolution and the aforementioned statutes; and
BE IT FURTHER RESOLVED that this resolution shall take effect immediately.
20416/PPC-3 7
APPROVED BY:
THE LOCAL FINANCE BOARD
DATE: March 8, 2017
p~ ~i-;)'h<;lJ-___
PATRICIA PARKIN MCNAMARA
EXECUTIVE SECRET ARY
LOCAL FINANCE BOARD
Exhibit E
CERTIFICATE OF THE CLERK OF THE CITY OF RAHWAY, NJ
I, Rayna E. Harris, the duly appointed and acting Clerk of the City of Rahway, in the
County of Union (the "City"), a political subdivision of the State of New Jersey, DO HEREBY
CERTIFY as follows:
1.
Attached hereto as Exhibit A is a true and complete copy of Ordinance No. 0-03-
17 entitled, "ORDINANCE OF THE CITY OF RAHWAY AUTHORIZING THE AW ARD OF
A SERVICES AGREEMENT TO SUEZ WATER ENVIRONMENTAL SERVICES INC., TO
PROVIDE CONTRACT OPERATOR SERVICES FOR THE CITY'S WATER FACILITIES
AND INFRASTRUCTURE", which ordinance was finally adopted by the City at a meeting of
the governing body duly called and held on March 3, 2017, at which meeting a quorum was
present and acting throughout. The ordinance has not been amended, modified, supplemented or
repealed, and as such, remains in full force and effect on and as of the date hereof.
3.
There is no action, suit, proceeding, inquiry or investigation at law or in equity or by
or before any governmental instrumentality or other agency, pending or, to the best of my
knowledge now threatened against or affecting the City (or, to the best ofmy knowledge, upon due
inquiry, any basis therefor), or to which the City is or may be a party, (a) questioning or challenging
the validity of any proceeding taken or to be taken by the City in connection with the adoption of
the aforementioned Ordinance, (b) seeking to prohibit, restrain or enjoin the authorization and
adoption of the Ordinance, or (c) wherein an unfavorable decision, ruling or finding would
adversely affect, financially or otherwise (i) the existence or organization of the City or the title to
office of the Mayor or any member of the governing body of the City, (ii) the validity or
enforceability of the proceedings taken by the City for the authorization and adoption of the
aforementioned Ordinance, or (iii) the ability of the City to perform its obligations under the
Ordinance.
2154223-1
IN WITNESS WHER~PJ:i. .• I have hereunto set my hand and affixed the official seal of
the City of Rahway as of this -!f';:=:. day of May, 2017.
[SEAL}
2154223-1
CITY OF RAHWAY, COUNTY OF UNION,
STATE OF NEW JERSEY
By~ . ...,;;:::=-~'..l...l'-:...!...l,,!~~~.,,.__~~~1--:,,,"-
.
2154223-1
EXHIBIT A
ORDINANCE
ORDINANCE
CITY OF RAHWAY, NEW JERSEY
No. _ __,;O:;:;.·_0=3-...;;1:..:.7 __
ORDINANCE OF THE CITY OF RAHWAY AUTHORIZING THE AW ARD OF A
SERVICES AGREEMENT TO SUEZ WATER ENVIRONMENTAL SERVICES INC.,
TO PROVIDE CONTRACT OPERATOR SERVICES FOR THE CITY'S WATER
FACILITIES AND INFRASTRUCTURE
WHEREAS, the City of Rahway ("City") owns an extensive potable water treatment and
supply system (collectively referred to herein as the "System") servicing the residents of the City;
and
WHEREAS, the City's current 20 year services agreement with its current contract
operator is nearing expiration; and
WHEREAS, the City undertook a competitive procurement pursuant to N.J.S.A 58:26-19
et seq., New Jersey Water Supply Public-Private Contracting Act (referred to herein as the "Act"),
to obtain proposals from qualified £inns to provide contractor operator services to the City for its
System; and
WHEREAS, on August 7, 2015, the City received proposals from the following two fmns:
1. Suez Water Environmental Services, Inc. ("Suez"); and
2. Middlesex Water Company
WHEREAS, the City formed an evaluation team (the "Evaluation Team"), to review the
proposals received and select a firm to negotiate a new contract operator's service agreement with;
and
WHEREAS, following a review of the proposals, interviews of the respondents and the
completion of an evaluation matrix, the Evaluation Team selected Suez for the negotiation of a
new contract operator services agreement; and
WHEREAS, the Evaluation Team and Suez successfully completed negotiations in or
about May 2016 resulting in the completion of a draft services agreement (the "Services
Agreement"); and
WHEREAS, pursuant to the Act, the City made the Draft Services Agreement available
for inspection for a period of two weeks prior to conducting a public hearing concerning the
Services Agreement on January 10, 2017; and
WHEREAS, in accordance with the Act, the City has submitted the Services Agreement
to the New Jersey Department of Environmental Protection, the Department of Community
0-03-17
t of2
City of Rahway
Affairs, and the Board of Public Utilities (co1lectively referred to herein as the "Agencies") for
review; now, therefore
BE IT ORDAINED AND ENACTED, by the City Council of the City of Rahway as
follows:
1. The Mayor and the Business Administrator of the City of Rahway are hereby
authorized and directed to execute the Services Agreement with Suez Water
Environmental Services, Inc., to provide contractor operator services in connection
with the City's System in accordance with the Act;
2. This Ordinance shall be published by the City Clerk; and
3. This Ordnance shall take effect immediately.
Date of Introduction: February 7, 2017
Certified to be a true copy of an
ordinance introduced and adopted
upon first reading by the
Municipal Council of the City of
Rahway at the duly held Meeting
on the 13th day off February, 2017.
Rayna E. Harris, City Clerk
0-03-17
Motion: Brown Second: Baker
YES:
Councilmembers Baker, Bresenhan,
Brown, Cox, Farrar, Miles, Mojica,
Wenson Maier, Giacobbe
ABSENl': None
2of2
City of Rahway
State of New Jersey
} SS.
Middlesex County
Penl<mally appeared Yj Ci nL. +J {
l( (V I'.,_
Of the Home News Tribune, a newspaper printed in Freehold, New Jersey and published in East Brunswick,
in said County and State, and of general circulation in said county, who being duly sworn, deposeth and saith
that the advertisement of which the annexed is a true copy, has been published in the said newspaper
1 times, once in each issue as follows:
=-03:::.:./=03=/-'-17'--_ __,A.D 2017
Ad Number: 0001966300
Ad Number: 0001966300
Run Dates: 03/03i17
CITY OF RAHWAY
PUBLIC NOTICE
CITY COUNCIL OF THE
CITY OF RAHWAY
ORDINANCE 0-03-17
ORDINANCE OF THE CITY OF
RAHWAY
AUTHORIZING
THE
AWARD OF A SERVICE~GREE·
MENT TO SUEZ WATER ENVI-
RONMENTAL SERVICESNC., TO
PROVIDE CONTRACTOPERATOF
SERVICES FOR
THE
CITY'S
WATER FACILITIESAND INFRA-
STRUCTURE
The purpose of this ordinance is
to authorize and direct the exe-
cution
of the Services Agree-
ment with Suez Water Environ-
mental Services, Inc., to provide
contractor
operator
services In
connection
with the City·s Sys-
tem In accordance with N.J.S.A
58:26•19 et seq., the New Jersey
Water
Supply
Public-Private
Contracting Act.
This ordinance was introduced
and passed upon first reading at
a
meeting
of the
governing
body of the City of Rahway, In
the County of Union, state of
New Jersey, on
February
13,
201 7. It will be further consid-
ered
for
final
passage, after
public
hearing
thereon,
at a
meeting of the governing body
to be held at City Hall, Munlci•
pal
Council/Court
Chambers,
First Floor,
1 City Hall Plaza,
Rahway, New Jersey, on March
13, 2017 at 7:00 p. m.
During
the week prior to and up to and
including the date of such meet-
Ing copies of the full ordinance
wlll be available at no cost and
during
regular
business hours,
at the
Clerk's office
tor the
members of the general public
who shall request the same.
Rayna E. Harris, City Clerk
($24.64)
-----------000·1966300-01
State of New Jersey
County of Union
Affidavit of Publication
I,
Denise Rolong
• being duly sworn according
to law, state an oath that the notice annexed hereto Is a true copy which has been published in
the following newspaper published in Union County and circulated in the Citv of Rahway in the
State of New Jersey:
Newspaper: Union County local Source
Number of Times: One Time
Date: On the 30th day of March, 2017
-;;:;:::::::,
Notary Public of New
DENlSE ROLONG
Notsryl'l.ibllc • Slatllcf N4rN Jfl'MY
commission IC #2448346
My eomm. e,ip, JUIV 28, 2019
Notary Stamp and Seal
CERTIFICATE OF THE BUSINESS ADMINISTRATOR
OF THE CITY OF RAHWAY, NJ
I, Cherron Rountree, the duly appointed and acting Business Administrator of the City of
Rahway, in the County of Union (the "City"), a political subdivision of the State of New Jersey,
DO HEREBY CERTIFY as follows:
(1)
The City is a municipal corporation duly created and existing pursuant to the laws
of the State. The City has the requisite power and authority to enter into the
Services Agreement for the Operation, Management, Maintenance and Repair of
the City's Water Supply System, with a Commencement Date of May 15, 2017 (the
"Agreement").
(2)
The City has the legal capacity and authority to assess the rates for the supply of
water services to customers of the water supply system that are required to be
established by the City pursuant to Section 8.5 (Establishment and Collection of
Rates, Fees and Charges) of the Agreement. The City has and will maintain for the
Term of the Agreement the legal capacity and authority to impose liens for the
nonpayment of such rates and fees. Other than the existing indebtedness and any
indebtedness for Capital improvements if such are undertaken and paid for by the
City, there are no liens, notes, bonds, mortgages, encumbrances, or other
entitlement to the revenues of the water supply system (other than connection fees,
if any, which shall be retained by the City), that have priority over the Operator's
entitlement to the revenues of the water supply system pursuant to the Agreement.
(3)
Other than that disclosed to Suez Water Environmental Services, LLC's (the
2154238-1
"Operator") in writing, the City is not aware of any claims, suits, actions, or
judgments which, if successful, would create an encumbrance upon the revenues of
the water supply system which would have a priority over the Operator's
entitlement to be paid from the revenues of the water supply system pursuant to the
Agreement or which otherwise would have a material adverse effect on the ability
of either the Operator or the City to perform its obligations hereunder
(d)
The City has enacted, or will have enacted by the Commencement Date, all
municipal laws, ordinances, or regulations necessary for the performance of the
Agreement. The City shall establish rates and fees for Services in accordance with
Section 8.5 of the Agreement.
2154238-1
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Rahway as of this 1< day of May, 2017.
[SEAL]
CITY OF RAHWAY, COUNTY OF UNION,
STATE OF NEW JERSEY
By: ~ms-r
Exhibit F
SUEZ Water Environmental Services Inc.
Officer's Certificate
Reference is made to the Services Agreement for the Operation, Management.
Maintenance and Repair of the City ofRahway's Water Supply System by and between the City
of Rahway ("City") and SUEZ Water Environmental Services Inc. ("Operator") dated as of May
15, 2017 ("Services Agreement"). All capitalized terms not defined in this Certificate shall have
the respective meaning set forth in the Services Agreement.
Pursuant to Section 4.2(e) of the Services Agreement, the undersigned, being a duly
authorized officer of the Operator, in his capacity as such and not individually, does hereby certify
for and on behalf of the Operator to the City:
(a)
The Operator is an entity duly organized and validly existing and in good standing
under the laws of the State of Delaware (the "State"), and is qualified and
authorized to do business in the State of New Jersey.
(b)
The Operator has full power and authority to enter into the Services Agreement and
to perform its duties and obligations hereunder. The Services Agreement has been
duly authorized, executed and delivered by the Operator and the authorization,
execution, delivery and performance of the Services Agreement by the Operator
will not violate any law, judgment, order, ruling or regulation applicable to the
Operator and does not constitute a breach of or default under any agreement or
instrument by which the Operator is bound.
( c)
The Operator has or holds, or will have or hold as of the Commencement Date, and
will continue to have or hold throughout the Term of the Services Agreement, all
approvals, licenses, Permits, and certifications necessary to operate, manage,
maintain and Repair the Water Supply System, except those Permits that are held
by the City, in accordance with the terms and provisions of the Services Agreement,
and has competent and experienced personnel on its staff who have direct
experience in operating, managing, maintaining and repairing water systems
similar in nature and character to the Water Supply System.
(d)
To the best of Operator's knowledge after due inquiry there is no litigation is
pending or threatened ( or reasonably foreseeable) against the Operator that would
impair its ability to perform its duties and obligations under the Services
Agreement.
(e)
At all times during the Term of the Services Agreement, after the Commencement
Date, the Operator shall keep the Water Supply System and all components thereof
free from any and all liens and encumbrances arising out of or in connection with
its provision of the Services or any acts, omissions or debts of the Operator, its
parent, any of its affiliates or subsidiaries, or any of its subcontractors.
(f)
At all times during the Term of this Agreement, the Operator and/or Project
Guarantor shall meet and maintain the Minimum Financial Criteria, as set forth in
Schedule 16 of the Services Agreement.
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of the 15th day
of May, 2017.
SUEZWA~XMENTALSERVICES INC.
By:
--::::::==-,.,,
""
Name: Dominique Demessence
Title:
President
2
May 15, 2017
City of Rahway
sue2
1 City Hall Plaza
Rahway, NJ 07065
Carla Hjelm
Senior Corporate Attorney - Corporate
Development
461 From Road, Suite 400
Paramus, New Jersey 07652
(Phone) 201 767 2886
(Email) Carla.Hjelm @suez-na.com
Re:
Services Agreement for the Operation, Management, Maintenance & Repair of the City
of Rahway's Water Supply System by and between the City of Rahway and SUEZ Water
Environmental Services Inc. ("Services Agreement")
Ladies and Gentlemen:
I represent SUEZ Water Environmental Services Inc., a Delaware corporation ("Operator") and
SUEZ Water Inc. ("Project Guarantor") in connection with the negotiation, execution and
delivery by the Operator of the Services Agreement and by Guarantor of the Project Guarantor
Agreement. Capitalized terms used in this opinion letter and not defined herein shall have the
respective meanings indicated in the Services Agreement.
I have examined the Services Agreement and the Project Guarantor Agreement and such other
documents as I have believed relevant in order to deliver the opinions herein expressed. In
making my examination, I have assumed, without independent investigation, the genuineness of
all signatures, the legal capacity of all individuals who have executed any of the aforesaid
documents, the authenticity of all documents submitted to me as originals, the conformity to
original documents of all documents submitted to me as certified, conformed or photostatic
copies, and that all public records reviewed are accurate and complete. I have made such other
examinations and investigations as to matters oflaw as I have deemed necessary in order to
enable me to render this opinion. 1n addition, I have assumed (i) that the City has the power to
enter into and perform its obligations under the Services Agreement and the Project Guarantor
Agreement, (ii) the due authorization, execution and delivery by the City of the Services
Agreement and the Project Guarantor Agreement; and (iii) the validity, binding effect and
enforceability of the Services Agreement and the Project Guarantor Agreement with respect to
the City.
sue2
In rendering the opinions set forth herein, I express no opinion as to the effect of any laws other
than the laws of the State of New Jersey and, solely with respect to items 1 through 4 below, the
general corporate laws of the State of Delaware.
Based upon the foregoing and subject to the other limitations and qualifications herein, I advise
you that it is my opinion that:
1.
The Operator is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has the authority to do business in the State
of New Jersey and in any other state in which it conducts its activities, with the full legal right,
power and authority to enter into and perform its obligations under the Services Agreement.
2.
The Services Agreement has been duly authorized, executed and delivered by all
necessary corporate action of the Operator and constitutes a legal, valid and binding obligation of
the Operator, enforceable against the Operator in accordance with its terms, except to the extent
that its enforceability may be limited by bankruptcy, insolvency or other similar laws affecting
creditors' rights from time to time in effect and equitable principles of general application.
3.
The Project Guarantor is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware, with the full legal right, power and
authority to enter into and perform its obligations under the Guaranty.
4.
The Project Guarantor Agreement has been duly authorized, executed and
delivered by all necessary corporate action of the Project Guarantor and constitutes a legal, valid
and binding obligation of the Project Guarantor, enforceable against the Project Guarantor in
accordance with its terms, except to the extent that its enforceability may be limited by
bankruptcy, insolvency or other similar laws affecting creditors' rights from time to time in effect
and equitable principles of general application.
5.
To the best of my knowledge, after reasonable investigation, there is no material
action, suit, proceeding or official investigation that has been threatened, publicly announced or
commenced by any federal, state or local governmental authority or agency, or in any federal,
state or local court, that seeks to enjoin, assess civil or criminal penalties against, assess civil
damage against or obtain any judgment, order or consent decree with respect to the Operator or
the Project Guarantor or with respect to the Services Agreement or the Project Guarantor
Agreement in which an unfavorable decision, ruling or finding could reasonably be expected to
have a material and adverse effect on the Operator's or Project Guarantor's authorization,
execution, delivery or performance of any such agreements or its participation or intended
participation in any transaction contemplated thereby.
The opinions expressed in this letter are solely for the benefit of the City in connection with the
execution and delivery of the Services Agreement and the Project Guarantor Agreement. This
2
sue2
opinion letter may not be relied on by any other person or entity for any other purpose. The
opinions expressed in this latter are limited to the matters set forth in this letter, and no other
opinion should be inferred beyond the matters expressly stated. These opinions are delivered as
of the date hereof, and I disclaim any responsibility to update these opinions at any time
following the date hereof.
Very truly yours,
wktf!~
Carla E. Hjelm
Senior Corporate ttomey - Corporate Development
3
ExhibitG
Cherron Rountree
Business Administrator
May 15, 2017
City of Rahway
Department of Administration
One City Hall Plaza
Rahway, NJ 07065
Suez Water Environmental Services, Inc.
461 From Road
Suite 400
Paramus, NJ 07652
Re:
City of Rahway
Tel: (732) 827-2001
Fax: (732) 388-9388
crountree@cityofrahway.com
Service Agreement for the Operation, Management, Maintenance & Repair of
the City of Rahway's Water Supply System
Ladies & Gentlemen:
This letter shall serve as notification that all Conditions Precedent set forth in Section 4.4(d) of
the SeNice Agreement for the SeNices Agreement for the Operation, Management,
Maintenance and Repair of the City of Rahway's Water Supply System, with a Commencement,
Date of May 15, 2017 (the "Agreement"), have been satisfied.
This letter shall also serve as the City's official Notice to Proceed to Suez Water Environmental
Services, Inc., pursuant to and in accordance with Section 4.4(d) of the Agreement.
~
Cherron Rountree,
Business Administrator
City of Rahway
A Sustainable Jersey™ Certified Community
ExhibitH
SCHEDULE20
PERFORMANCE AND PAYMENT BONDS
PERFORMANCE BOND
Bond No. =92=5=0=9"'-'73"--------
KNOW ALL BY THESE PRESENTS, That we SUEZ Water Environmental Services Inc.
as Principal, and Fidelity and Deposit Company of Maryland
, of Schaumburg, IL
,
authorized to do business in the State of
New Jersey , as Surety, are held and firmlv bound unto
•
•
•
Three Mitnon Five Hundred Seventeen
City of Rahway
, as Obhgee, In the maximum penal sum of ThousandSeventeenand00/100
Dollars ( $3,517.017.00
). lawful money of the United States of America, for which payment well
and truly to be made we bind ourselves, our heirs, executors and assigns, jointly and severally, firmly by
this Surety Bond.
WHEREAS, the Principal has entered, or is about to enter, into a written agreement with the Obligee to
perform in accordance with the terms and conditions of the Operation, Management, Maintenance and
Repair of the City of Rahway's Water Supply System
(hereinafter referred to
as the Contract), said Contract is hereby referred to and made a part hereof;
NOW, THEREFORE, the condition of this obligation is such that if the above named Principal, its
successors and assigns, shall well and truly perform its obligations as set forth in the above mentioned
Contract, then this Bond shall be void; otherwise to remain in full force and effect pursuant to its terms.
Notwithstanding anything to the contrary in the Contract, the Bond is subject to the following express
conditions:
1. Whereas, the Obligee has agreed to accept this Bond, this Bond shall be effective for the definite
period of
May 15, 2017
to
December 31, 2017 . The Bond may be extended, at the sole option of
the Surety, by continuation certificate for additional periods from the expiry date hereof. However, neither:
(a) the Surety's decision not to issue a continuation certificate, nor (b) the failure or inability of the
Principal to file a replacement bond or other security in the event the Surety exercises its right to not
renew or cancel this Bond (pursuant to paragraph 2 below), shall itself constitute a loss to the Obligee
recoverable under this Bond or any extension thereof.
2. This Bond may be canceled at any time upon thirty (30) days advance written notice from the Surety to
the Obligee.
3. The above referenced Contract has a term ending
May 15, 2037
. Regardless of
the number of years this Bond is in force or the number of continuation certificates issued, this Bond shall
have the final and definite expiration date of
May 15. 2037
, unless earlier nonrenewed or
canceled pursuant to paragraph 1 or 2 above.
4. No claim. action. suit or proceeding. except as hereinafter set forth, shall be had or maintained against
the Surety on this instrument unless such claim, action, suit or proceeding is brought or instituted upon
the Surety within one year from termination or expiration of the bond term.
5. Regardless of the number of years this Bond is in force or the number of continuation certificates
issued, the liability of the Surety shall not be cumulative in amounts from period to period and shall in no
event exceed the amount set forth above, or as amended by rider.
48
6. Any notice, demand, certification or request for payment, made under this Bond shall be made in
writing to the Surety at the address specified below. Any demand or request for payment must be made
prior to the expiry date of this Bond.
Surety Address: Fidelity and Deposit Company of Maryland
1299 Zurich Way
Schaumburg, IL 60196
Attn: Joe Santoro
7. If any conflict or inconsistency exists between the Surety's obligations or undertakings as described in
this Bond and as described in the underlying Contract, then the terms of this Bond shall prevail.
SIGNED, SEALED AND DATED this
9th
day of ---=M
..... ay ___ -~2=0~17~-
, Principal
SURETY
, Attorney-in-Fact
49
PAYMENT BOND
Bond No . ..::9=2=50=9:..:.7=3 _____ _
KNOW ALL BY THESE PRESENTS, that we SUEZ Water Environmental Services Inc.
, as Principal,
and Fidelity and Deposit Company of Maryland
, of
Schaumburg, IL
, authorized
to do business in
New Jersey
, as Surety, are held and firmly bound unto
City of Rahway
, as Obligee, and to all persons who furnish labor or
material directly to the Principal for use in the prosecution of the work hereinafter named, in the maximum
penal sum of Three Million Five Hundred Seventeen Thousand Seventeen and 00/100
Dollars ( $3,517,017.00
), lawful money of the United States of America, for
which payment well and truly to be made we bind ourselves, our heirs, executors and assigns, jointly and
severally, firmly by these presents.
WHEREAS, the Principal has entered, or is about it enter, into a written agreement with the Obligee, for
Operation Management. Maintenance and Repair of the City of Rahway's Water Supply System
hereinafter referred to as the Contract) and more fully described in said Contract, said Contract is hereby
referred to and made a part hereof.
NOW. THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall
pay all persons who shall have furnished labor or material directly to the Principal for use in the
prosecution of the aforesaid work, each of which said persons shall have a direct right of action on this
instrument in his/her own name and for his/her own benefit, subject, however, to the Obligee's priority,
then this obligation to be void; otherwise to remain in full force and effect. Notwithstanding anything to the
contrary in the Contract, the Bond is subject to the following express conditions:
1. Whereas, the Obligee has agreed to accept this Bond, this Bond shall be effective for the definite
period of
May 15, 2017
to
December 31, 2017 . The Bond may be extended, at the sole
option of the Surety, by continuation certificate for additional periods from the expiry date hereof.
However, neither: (a) the Surety's decision not to issue a continuation certificate, nor (b) the failure or
inability of the Principal to file a replacement bond or other security in the event the Surety exercises its
right to not renew or cancel this Bond (pursuant to paragraph 2 below),shall itself constitute a loss to the
Obligee recoverable under this Bond or any extension thereof.
2. This Bond may be canceled at any time upon thirty (30) days advance written notice from the Surety to
the Obligee.
3. The above referenced Contract has a term ending
May 15, 2037
. Regardless of the
number of years this Bond is in force or the number of continuation certificates issued, this Bond shall
have a final and definite expiration date of
May 15, 2037
• unless earlier nonrenewed or
canceled pursuant to paragraph 1 or 2 above.
4. Regardless of the number of years this Bond is in force or the number of continuation certificates
issued, the liability of the Surety shall not be cumulative in amounts from period to period and shall in no
event exceed the amount set forth above, or as amended by rider.
5. Any notice, demand. certification or request for payment. made under this Bond shall be made in
writing to the Surety at the address specified below. Any demand or request for payment must be made
prior to the expiry date of this Bond.
Surety Address: Fidelity and Deposit Company of Maryland
1299 Zurich Way
Schaumburg. IL 60196
Attn: Joe Santoro
50
6. No claim, action, suit or proceeding, except as hereinafter set forth, shall be had or maintained against
the Surety on this instrument unless such claim, action, suit or proceeding is brought or instituted upon
the Surety within one year from termination or expiration of the bond term; or after the expiration of ninety
(90) days after the day on which any person last supplied the labor and/or materials for which the claim is
made, whichever occurs first. If this limitation is void or prohibited by law, then the minimum period of
limitation available to Surety as a defense in the jurisdiction of the suit shall be applicable.
7. The amount of this Bond shall be reduced by and to the extent of any payment or payments made in
good faith hereunder.
8. If any conflict or inconsistency exists between the Surety's obligations or undertakings as described in
this Bond and as described in the underlying Contract, then the terms of this Bond shall prevail.
SIGNED, SEALED AND DATED this
9th
day of ____
M~a~y _____ , 2017
SUEZ Water Environmental Services Inc.
SURETY
, Attorney-in-Fact
51
SURETY DISCLOSURE STATEMENT AND CERTIFICATION
pursuant to NJ.SA 2A:44-143
(for use when surety(ies) have a certificate from US. Secretary of the Treasury in accordance with 31 U.S C.§9305)
Zurich American Insurance Company ,
surety on the attached bond, hereby certifies the following:
(I)
The surety meets the applicable capital and surplus requirements of R.S.17 17-6 or R.S. I 7 I 7-7 as of the surety's most current annual filing
with the New Jersey Department of Insurance
(2)
The capital and surplus, as determined in accordance with the applicable laws of this State, of the surety participating in the issuance of the
attached bond is in the following amounts as of the calendar year ended December 31, 2015, which amounts have been certified on a
Certification by PricewaterhouseCoopers, LLP and are included in the Annual Statement on file with the New Jersey Department oflnsurance, 20
West State Street CN-325, Trenton, New Jersey 08625-0325
Zurich American Insurance Company, $30,309,699,066
With respect to each surety participating in the issuance of the attached bond that has received from the United States Secretary of the Treasury a
certificate of authority pursuant to 31 lJ.S.C §9305, the underwriting limitation established therein on July I, 2016 is as follows:
Zurich American Insurance Company, $707,582,000
The amount of the bond to which the statement and certification is attached is "'$""3-"5=-1'-'7'-'-"0-'-1-'-7"-'.0'--'0'-------
(I)
If, by virtue of one or more contracts of reinsurance, the amount of the bond indicated under item (4) above exceeds the total underwriting
limitation of all sureties on the bond as set forth in item (3) above, then for each such contract of reinsurance:
(a) The name and address of each such insurer under that contract and the amount of the reinsurer's participation in the contract is as
follows·.
and;
(b) Each surety that is party to any such contract of reinsurance certifies that each insurer listed under item (5)(a) satisfies the credit for
reinsurance requirement established under P.L. I 993, c243(C I 7:5 IB-I et seq.) and any applicable regulations in effect as of the date on which
the bond to which this statement and certification is attached shall have been filed with the appropriate public agency.
CERTIFICATE
I, Michael P Bond, as Vice President for Zurich American Insurance Company, a corporation domiciled in New York, DO HEREBY CERTIFY
that, to the best ofmy knowledge, the foregoing statements made by me are true, and ACKNOWLEDGE that, if any of those statements made by
me are false, this bond is VOIDABLE
~
Michael P. Bond
Dated May 9, 2017
Effective: July 1, 2016
CORPORATE ACKNOWLEDGMENT
STATE OF
7'Lew ::Se csey
COUNTY OF _ _;;;.6.....,e'-'--r-=ig1-1-e~111------
+-i-.
On this IO
day of __
M.._«.__,_y ______ _
d-b 17
before me
personally came
------'~"--a_n_i_e_.t---"le'-----'C:::...ct.-'--"f':;_;o=-=-z_..:::;2-c_;:o:;__l ,'-·-------------- to me known,
who, being by me duly sworn, did depose and say that l)€/she resides in
____________ thattt€/sheisthe
SUEZ Water Environmental Services Inc.
SecretC\.tv
of
------~~---r------- -----------------
that corporation described in and which executed the above instrument; that ~/she
knows the seal of said corporation; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by order of the Board of Directors of said
corporation, and 1)€/she signed hfs/her name thereto by like order.
(SEAL)
MO EIG£LMANII
a.., PubllC of New JerstJ
1rc111mt::M &pilel MaJ u. 2022
State of
County of
NJ
Morris
} ss:
On
May 09, 2017
, before me, a Notary Public in and for said County and State, residing
therein, duly commissioned and sworn, personally appeared
Kristin S. Bender
known to me to be Attorney-in-Fact of Fidelity and Deposit Company of Maryland
the corporation described in and that executed the within and foregoing instrument, and known to me to be the person who executed
the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in this certificate above.
~~fublic
My Commission Expires
3/18/2022
LEANNE LYNSKEY
Notary Public • State of New Jersey
My Commission Expires Mar 18, 2022
ZURICH AMERICAN INSURANCE COMPANY
COLONIAL AMERICAN CASUAL TY AND SURETY COMPANY
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That the ZURICH AMERICAN INSURANCE COMPANY, a corporation of the State of New
York, the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, a corporation of the State of Maryland, and the FIDELITY
AND DEPOSIT COMPANY OF MARYLAND a corporation of the State of Maryland (herein collectively called the "Companies"), by
Thomas 0. McClellan, Vice President, in pursuance of authority granted by Article V, Section 8, of the By-Laws of said Companies, which
are set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date hereof, do hereby nominate,
constitute, and appoint
Kristin S. Bender of Morristown, New Jersey
, its true and lawful agent and Attomey-
in-Fact, to make, execute, seal and deliver, for, and on its behalf as surety, and as its act and deed: any and all bonds and undertakings,
and the execution of such bonds or undertakings in pursuance of these presents, shall be as binding upon said Companies, as fully and amply,
to all intents and purposes, as if they had been duly executed and acknowledged by the regularly elected officers of the ZURICH
AMERICAN INSURANCE COMPANY at its office in New York, New York., the regularly elected officers of the COLONIAL
AMERICAN CASUALTY AND SURETY COMPANY at its office in Owings Mills, Maryland., and the regularly elected officers of the
FIDELITY AND DEPOSIT COMPANY OF MARYLAND at its office in Owings Mills, Maryland., in their own proper persons.
The said Vice President does hereby certify that the extract set forth on the reverse side hereof is a true copy of Article V, Section 8, of
the By-Laws of said Companies, and is now in force.
IN WITNESS WHEREOF, the said Vice-President has hereunto subscribed his/her names and affixed the Corporate Seals of the said
ZURICH AMERICAN INSURANCE COMPANY, COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, and
FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 14th day of October, A.D. 2015.
e
By: Thomas 0. McClellan
Vice President
State of Maryland
County of Baltimore
ATTEST:
ZURICH AMERICAN INSURANCE COMPANY
COLONIAL AMERICAN CASUALTY AND SURETY COMPANY
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
By: Eric D. Barnes
Secretary
On this 14th day of October, A.O. 2015, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, Thomas 0.
McClellan, Vice President and Eric D. Barnes, Secretary of the Companies, to me personally known to be the individuals and officers described in and who
executed the preceding instrument, and acknowledged the execution of same, and being by me duly sworn, deposeth and saith, that he/she is the said officer of
the Company aforesaid, and that the seals affixed to the preceding instrument are the Corporate Seals of said Companies, and that the said Corporate Seals and
the signature as such officer were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporations.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written .
. -, ~a..~
By: Constance A. Dunn, Notary Public
My Commission Expires: July 9, 2019
EXTRACT FROM BY-LAWS OF THE COMPANIES
"Article V, Section 8, Attorneys-in-Fact. The Chief Executive Officer, the President, or any Executive Vice President or Vice President
may, by written instrument under the attested corporate seal, appoint attorneys-in-fact with authority to execute bonds, policies,
recognizances, stipulations, undertakings, or other like instruments on behalf of the Company, and may authorize any officer or any such
attorney-in-fact to affix the corporate seal thereto; and may with or without cause modify of revoke any such appointment or authority at any
time."
CERTIFICATE
I, the undersigned, Vice President of the ZURICH AMERICAN INSURANCE COMPANY, the COLONIAL AMERICAN
CASUALTY AND SURETY COMPANY, and the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, do hereby certify that the
foregoing Power of Attorney is still in full force and effect on the date of this certificate; and I do further certify that Article V, Section 8, of
the By-Laws of the Companies is still in force.
This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of
Directors of the ZURICH AMERICAN INSURANCE COMPANY at a meeting duly called and held on the 15th day of December 1998.
RESOLVED: "That the signature of the President or a Vice President and the attesting signature of a Secretary or an Assistant Secretary
and the Seal of the Company may be affixed by facsimile on any Power of Attorney ... Any such Power or any certificate thereof bearing such
facsimile signature and seal shall be valid and binding on the Company."
This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of
Directors of the COLONIAL AMERICAN CASUAL TY AND SURETY COMP ANY at a meeting duly called and held on the 5th day of
May, I 994, and the following resolution of the Board of Directors of the FIDELITY AND DEPOSIT COMP ANY OF MARYLAND at a
meeting duly called and held on the 10th day of May, 1990.
RESOLVED: "That the facsimile or mechanically reproduced seal of the company and facsimile or mechanically reproduced signature
of any Vice-President, Secretary, or Assistant Secretary of the Company, whether made heretofore or hereafter, wherever appearing upon a
certified copy of any power of attorney issued by the Company, shall be valid and binding upon the Company with the same force and effect
as though manually affixed.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seals of the said Companies,
this
9th
day of
May
2017
By: Gerald F. Haley, Vice President
FIDELITY AND DEPOSIT COMPANY
OF MARYLAND
600 Red Brook Blvd., Suite 600, Owings Mills, MD 21117
Statement of Financial Condition
As Of December 31, 2016
ASSETS
Bonds ............................................................................................................................................... $
Stocks .............................................................................................................................................. .
Cash and Short Term Investtnents ................................................................................................... .
Reinsurance Recoverable ................................................................................................................ .
Other Accounts Receivable ............................................................................................................. .
TOT AL ADMITTED ASSETS ........................................................................................................ $
LIABILITIES, SURPLUS AND OTHER fUNDS
Reserve for Taxes and Expenses ...................................................................................................... $
Ceded Reinsurance Premiums Payable ........................................................................................... .
Securities Lending Collateral Liability ........................................................................................... .
TOTAL LIABILITIES .................................................................................................................... $
Capital Stock, Paid Up........................................................................................ $
5,000,000
Surplus................................................................................................................
162,883,521
141,903,342
22,845,654
3,080,053
13,996,720
27,147,872
208,973,641
896,428
40,193,693
0
41,090,121
Surplus as regards Policyholders......................................................................................................
167,883,520
TOTAL ....................................................................................................................................... $ 208,973,641
Securities carried at $62,166,344 in the above statement are deposited with various states as required by law.
Securities carried on the basis prescribed by the National Association oflnsurance Commissioners. On the basis of
market quotations for all bonds and stocks owned, the Company's total admitted assets at December 31, 2016 would
be $209,350,832 and surplus as regards policyholders $168,260,711.
I, DENNIS F. KERRIGAN, Corporate Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, do hereby
certify that the foregoing statement is a correct exhibit oft
assets and liabilities of the said Company on the 31st
day of December, 2016.
rate Secretary
State of Illinois
City of Schaumburg }
SS:
Subscribed and sworn to, before me, a NotBI)' Public of the State of Illinois, in the City of Schaumburg, this 1 • day of March, 2017.
(/ '
'
DA.'lRYL JOINER
OFFICIAL S!:Al
Notary P"i,:ic • Slc,lo ol lUlnols
My Commission Expires
Fo!>ruary 24, 2018
Notary Public
~RD•
CERTIFICATE OF LIABILITY INSURANCE
I
DATE (MM/DDIYYYY)
05/10/2017
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
PRODUCER
:.l~=~~CI
MARSH USA, INC.
Rvt\•
I FAX
445 SOUTH STREET
IA/C Nol:
MORRISTOWN, NJ 07962-1966
:
Attn: Morristown.CertRequest@marsh.com Fax: 212-948-0979
INSURERISl AFFORDING COVERAGE
NAIC#
100055-ENVIR-W/POL-17-18.
UMB
INSURER A : Liberty Mutual Fire Insurance Company
23035
INSURED
INSURER B : National Union Fire Insurance Company
19445
SUEZ NORTH AMERICA INC.
461 FROM ROAD, SUITE 400
INSURER c : Liberty Insurance Corporation
42404
PARAMUS, NJ 07652
INSURER D : ACE American Insurance Company
22667
INSURERE:
INSURERF:
COVERAGES
CERTIFICATE NUMBER:
NYC-007221079-71
REVISION NUMBER:14
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
TYPE OF INSURANCE
ADDL SUBR
,:~M%~, ,,~:-Ji~,
LIMITS
LTR
1,uoft ~--
POLICY NUMBER
A
X
COMMERCIAL GENERAL LIABILITY
TB2-641-444728-037
03/01/2017
03/01/2018
EACH OCCURRENCE
$
2,000,000
-
~
CLAIMS-MADE ~
OCCUR
~~~~~~JYE~~~~nce\
$
2,000,000
-
MED EXP (Any one person)
$
10,000
PERSONAL & ADV INJURY
$
2,000,000
-
GEN'L AGGREGATE LIMIT APPLIES PER:
GENERAL AGGREGATE
$
3,000,000
~
□PRO- □Loe
PRODUCTS • COMP/OP AGG
$
3,000,000
POLICY
JECT
OTHER:
$
A
AUTOMOBILE LIABILITY
AS2-641-444728-067
03/01/2017
03/01/2018
COMBINED SINGLE LIMIT
$
2,000,000
/Ea accident\
- X
ANY AUTO
BODILY INJURY (Per person)
$
~
ALL OWNED
-
SCHEDULED
AUTOS
AUTOS
BODILY INJURY (Per accident) $
~
-
NON-OWNED
rp~~~~gAMAGE
HIRED AUTOS
$
-
-
AUTOS
$
B
X
UMBRELLA LIAB M
OCCUR
12318741
01/0112017
01/01/2018
EACH OCCURRENCE
$
25,000,000
-
EXCESSLIAB
CLAIMS-MADE
AGGREGATE
$
25,000,000
OED I X I RETENTION $10 000
PROD./COMP. AGG.
$
15,000,000
C WORKERS COMPENSATION
WA7-64D-444728-017 {AOS)
03/01/2017
03/0112018
X I ~ffTuTE I I OTH-
ER
C
AND EMPLOYERS' LIABILITY
Y/N
WC7-641-444728-107 (WI)
03/01/2017
03/01/2018
ANY PROPRIETOR/PARTNER/EXECUTIVE ~
E.L. EACH ACCIDENT
$
2,000,000
OFFICER/MEMBER EXCLUDED?
N/A
(Mandatory In NH)
E.L. DISEASE - EA EMPLOYEE $
2,000,000
~i~c~fi~ ~1~PERATIONS below
E.L. DISEASE - POLICY LIMIT
$
2,000,000
D
POLLUTION & REMEDIATION
PPLG27413249001
07124/2014
07/2412017
PER OCCURRENCE:
5,000,000
LEGAL LIABILITY
'SIR - $250,000'
AGGREGATE:
5,000,000
DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space Is required)
THE CITY OF RAHWAY, ITS ELECTED AND APOINTED OFFICERS AND ITS DULY AUTHORIZED AGENTS, SERVANTS, AND EMPLOYEES ARE INCLUDED AS AN ADDITIONAL INSURED ON THE
GENERAL LIABILITY, AUTOMOBILE LIABILITY, AND UMBRELLA LIABILITY POLICIES PURSUANT TO SECTION 10.1 OF THE WATER SERVICES AGREEMENT FOR OPERATION, MANAGEMENT,
MAINTENANCE & REPAIR OF THE CITY'S WATER SYSTEM.
CERTIFICATE HOLDER
CANCELLATION
THE CITY OF RAHWAY
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
CITY HALL
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ONE CITY HALL PLAZA
ACCORDANCE WITH THE POLICY PROVISIONS.
RAHWAY, NJ 07065
AUTHORIZED REPRESENTATIVE
of Marsh USA Inc,
I
Manashl Mukherjee
..N.A~-..t ~
© 1988-2014 ACORD CORPORATION. All rights reserved.
ACORD 25 (2014/01)
The ACORD name and logo are registered marks of ACORD
,_____...,
ACORD®
L___...
AGENCY
MARSH USA, INC.
POLICY NUMBER
CARRIER
ADDITIONAL REMARKS
AGENCY CUSTOMER ID: 100055
------------------
LO C #: Morristown
ADDITIONAL REMARKS SCHEDULE
Page
2
of
2
-- --
NAMED INSURED
SUEZ NORTH AMERICA INC.
461 FROM ROAD, SUITE 400
PARAMUS, NJ 07652
I
NAICCODE
EFFECTIVE DATE:
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM,
FORM NUMBER:
25
FORM TITLE: Certificate of Liability Insurance
CRIME:
CARRIER· BERKLEY REGIONAL INSURANCE CO.
POLICY NUMBER· BCCR-45000041-23
EFFECTIVE· 01/01/2017 • 01/01/2018
LIMIT· $10,000,000
DEDUCTIBLE • $50,000
ACORD 101 (2008/01)
© 2008 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
Exhibit I
Delaware
Page 1
The First State
I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY "SUEZ WATER ENVIRONMENTAL SERVICES
INC." IS DULY INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE
AND IS IN GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE SO FAR
AS THE RECORDS OF THIS OFFICE SHOW, AS OF THE FOURTH DAY OF MAY,
A.D. 2017.
AND I DO HEREBY FURTHER CERTIFY THAT THE ANNUAL REPORTS HAVE
BEEN FILED TO DATE.
AND I DO HEREBY FURTHER CERTIFY THAT THE SAID "SUEZ WATER
ENVIRONMENTAL SERVICES INC. " WAS INCORPORATED ON THE SIXTH DAY OF
OCTOBER, A.D. 2009.
AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE TAXES HAVE
BEEN PAID TO DATE.
4736636 8300
SR# 20173098578
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202488054
Date: 05-04-17
Delaware
Page 1
The First State
I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THE ATTACHED ARE TRUE AND CORRECT
COPIES OF ALL DOCUMENTS ON FILE OF "SUEZ WATER ENVIRONMENTAL
SERVICES INC. " AS RECEIVED AND FILED IN THIS OFFICE.
THE FOLLOWING DOCUMENTS HAVE BEEN CERTIFIED:
CERTIFICATE OF INCORPORATION, FILED THE SIXTH DAY OF
OCTOBER, A.D. 2009, AT 1:46 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009.
4736636 8100H
SR# 20173136596
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202492149
Date: 05-05-17
Delaware
The First State
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
Page 2
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
4736636 8100H
SR# 20173136596
You may verify this certificate onllne at corp.delaware.gov/authver.shtml
Authentication: 202492149
Date: 05-05-17
Delaware
Page 3
The First State
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
CERTIFICATE OF MERGER, FILED THE TWENTY-THIRD DAY OF
DECEMBER, A.D. 2009, AT 12:02 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
DECEMBER, A.D. 2009 AT 11:59 O'CLOCK P.M.
4736636 8100H
SR# 20173136596
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202492149
Date: 05-05-17
Delaware
Page 4
The First State
CERTIFICATE OF MERGER, FILED THE TWENTY-NINTH DAY OF JULY,
A.D. 2013, AT 12:07 O'CLOCK P.M.
CERTIFICATE OF CORRECTION, FILED THE NINETEENTH DAY OF
AUGUST, A.D. 2013, AT 12:35 O'CLOCK P.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF CORRECTION IS THE TWENTY-SEVENTH
DAY OF OCTOBER, A.D. 2013.
CERTIFICATE OF MERGER, FILED THE TWENTY-FIFTH DAY OF MARCH,
A.D. 2014, AT 6:33 O'CLOCK P.M.
CERTIFICATE OF AMENDMENT, CHANGING ITS NAME FROM "UNITED
WATER ENVIRONMENTAL SERVICES INC. " TO "SUEZ WATER ENVIRONMENTAL
SERVICES INC. ", FILED THE SECOND DAY OF NOVEMBER, A. D. 2015, AT
8:41 O'CLOCK A.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF AMENDMENT IS THE NINTH DAY OF
NOVEMBER, A.D. 2015.
4736636 8100H
SR# 20173136596
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202492149
Date: 05-05-17
Delaware
Page 5
The First State
AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID
CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE
AFORESAID CORPORATION, "SUEZ WATER ENVIRONMENTAL SERVICES INC.".
4736636 8100H
SR# 20173136596
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202492149
Date: 05-05-17
State of Delaware
Secretary of State
Division or Corporations
Delivered 01 :46 PM 10/06/2009
FILED 01 :46 PM 10/06/2009
SRV 090913323 -
4736636 FILE
STATE o/DELAWARE
CERTIFICATE o/INCORPORATION
A STOCK CORPORATION
UNITED WATER ENVIRONMENTAL SERVICES INC.
FIRST: The name of this corporation shall be:
United Water Environmental Services Inc.
SECOND: Its registered office in the State of Delaware is to be located at 271 I Centerville
Road, Suite 400, in the City of Wilmington, County of New Castle and its registered agent at such
address is CORPORATION SERVICE COMPANY.
THIRD: The purpose or purposes of the corporation shall be:
To engage in any lawful act or activity for which corporations may be
organized under the General Corporation Law of Delaware.
FOURTH: The total authorized stock is 3,000 shares at $1.00 par value.
FJFfH: The name of the incorporator is Robert A. Gerber. His address is 200 Old Hook
Road, Harrington Park, New Jersey 07640-1799.
SIXTH: The Board of Directors shall have the power to adopt, amend or repeal the by-laws.
SEVENTH: No director shall be personally liable to the Corporation or its stockholders for
monetary damages for any breach of fiduciary duty by such director as a director. Notwithstanding
the foregoing sentence, a director shall be liable to the extent provided by applicable law, (i) for
breach of the director's duty of loyalty to the Corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a knowing violation oflaw,
(iii) pursuant to Section 174 of the Delaware General Corporation Law or (iv) for any transaction
from which the director derived an improper personal benefit. No amendment to or repeal of tl:iis
Article Seventh shall apply to or have any effect on the liability or alleged liability of any director
of the Corporation for or with respect to any acts or omissions of such director occurring prior to
such amendment.
IN WITNESS WHEREOF, the undersigned, being the incorporator herein before named,
has executed signed and acknowledged this certificate of incorporation thjs 6th day of
October, A.D. 2009.
iJ.~J:»J~
Name: Robert A. Gerber
Incorporator
State of Delaware
Secretary of State
Division or Corporations
Delivered 12: 02 PM 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131580 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC CORPORATIONS
Pursuant to Title 8, Section 25l(c) of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
_s_E_R_V_IC_E_S_IN_c_. ___________
, and the name of the corporation being
merged into this surviving corporation is UNITED WATER AOS INC.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by each of the constituent corporations.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENT AL
SERVICES INC.
a Delaware corporation.
FOURTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate of Incorporation.
FIFTH: The merger is to become effective on December 31, 2009, 11:59 p.m.
SIXTH: The Agreement of Merger is on file at United Water, 200 Old Hook Road
_H_a_rri_n_gt_on_P_a_rk_, _N_J _07_6_40_A_ttn_: _Le_g_al_D_ep_t_. _________
__, the place· of business
of the surviving corporation.
SEVENTH: A copy of the Agreement of Merger will be furnished by the surviving
corporation on request, without cost, to any stockholder of the constituent corporations.
By:
/p,,t..
~
Authorized Officer
'7)'0
Name: \hc,rnl\.S \ • ~'Y\
Print or Type
Title: ---v (
f? 'C:'.> I c.\-e V\, t
State of Delaware
Secretary or State
Division of Corporations
Delivered 12:02 PM 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131595 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC LIMITED LIABILITY COMPANY
INTO A
DOMESTIC CORPORATION
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law and Title 6,
Section 18-209 of the Delaware Limited Liability Company Act, the undersigned
corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
, a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER
NACOLLC
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENT AL
SERVICES INC.
FOURTH: The merger is to become effective on December 31, 2009, 11:59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd, HarringtonPark, NJ 07640
Attn: Legal Dept
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be it's
Certificate of [ncorporation
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the I 5,.,
day of °"'robe,
J;A.D., 2009
.
By:
.
n,,,.,,,--
Authorized Officer
Name: -f'V\Dyy'\t\, ~- 7>:> rz:MJ:::r,
Print or Type
Title: -P N? S) d £?4,:...,.\-
State or Delaware
Secretary of State
Division of Corporations
Delivered 12:02 PM 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131612 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
FOREIGN CORPORATION INTO
A DOMESTIC CORPORATION
Pursuant to Title 8, Section 252 of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
, a Delaware corporation, and the name
of
the
corporation
being
merged
into
this
surv1vmg
corporation
is
UNITED WATER SERVICES INC.
a California
--------
corporation.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by each of the constituent corporations pursuant to Title 8 Section 252
of the General Corporation Law of the State of Delaware.
TIDRD: The name of the surviving corporation is UNITED WATER ENVIRONMENT AL
_s_E_R_V_IC_E_S_IN_c_. _______________
___, a Delaware corporation.
FOURTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate oflncorporation. (If amendments are affected please set forth)
FIFI'H:
The authorized stock and par value of the non-Delaware corporation is
I 00 shares no par
SIXTH: The merger is to become effective on December 31, 2009, I I :59 p.m.
SEVENTH: The Agreement of Merger is on file at UNITED WATER, 200 Old Hook Rd
Harrington Park, NJ 07640
, an office of
the surviving corporation.
EIGHTH: A copy of the Agreement of Merger will be furnished by the surviving
corporation on request, without cost, to any stockholder of the constituent corporations.
IN WITNESS WHEREOF, said surviving corporation has caused this certificate to be
signed by an authorized officer, the
I e""'
day of Dece her
A.D.,
2009
Name: ----n\Qrfl\_S, ~- Y:>o'?:YY)
Print or Type
Title: 7,\Qf;.1de n+-
State o:f Delaware
Secret:azy o:f State
Division or Corporations
Delivered 12:02 .E'JI 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131630 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC LIMITED LIABILITY COMP ANY
INTO A
DOMESTIC CORPORATION
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law and Title 6,
Section 18-209 of the Delaware Limited Liability Company Act, the undersigned
corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER
CONTRACTSERVICESLLC
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
TIDRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SER VICES INC.
FOURTH: The merger is to become effective on December 31, 2009, 11:59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd, HarringtonPark, NJ 07640
Atm: Legal Dept
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any co~tituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be it's
Certificate o flncorporation
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the
I 8""
day of V,,,,bcr 71, ,A.D., 2009
Br, HM/ ~
/.
Authorized Officer
Name: \Y°\Df{)C\~J?~~a~
PrintorT~
~
Title:-P ,1 Q side (
State o:f Delaware
Secretazy o:f State
Division o:£ Co.r:J,orations
Delivered 12:02 Pk 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131639 -
4136636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC LIMITED LIABILITY COMP ANY
INTO A
DOMESTIC CORPORATION
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law and Title 6,
Section 18-209 of the Delaware Limited Liability Company Act, the undersigned
corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
_s_ER_v_1_c_Es_1N_c_. --------~ a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER
CAMDENLLC
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
FOURTH: The merger is to become effective on December 31, 2009, 11 :59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd, HarringtonPark, NJ 07640
Attn: Legal Dept
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be it's
Certificate of Incorporation
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the
\ e,·""
da
D
her
.D., 2009
•
V
By:
~,
State of Delaware
Secretary of State
Division of Corporations
Delivered 12:02 Pk 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131663 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC LIMITED LIABILITY COMPANY
INTO A
DOMESTIC CORPORATION
Pursuant to Title 8, Section 264( c) of the Delaware General Corporation Law and Title 6,
Section 18-209 of the Delaware Limited Liability Company Act, the undersigned
corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
, a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER
SPRINGFIELD LLC
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
FOURTH: The merger is to become effective on December 31, 2009, 11:59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd, HarringtonPark, NJ 07640
Attn: Legal Dept
------------- the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be it's
Certificate of Incorporation
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the
18,,.
da of D
ber
.D., 2009
.
Name: '""7Y\~9t, s:·t>. -Y)~
Print or Type
Title: '7) w $ d e ~1+=
Sta t:e or Delaware
secreta.z:y or State
Division oE Corporations
Del.ivered 12:02 Etl 12/23/2009
FILED 12: 02 PH 12/23/2009
SRV 091131672 - 4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC LIMITED LIABILITY COMPANY
INTO A
DOMESTIC CORPORATION
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law and Title 6,
Section 18-209 of the Delaware Limited Liability Company Act, the undersigned
corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER
HYDRO MANAGEMENT LLC
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SER VICES INC.
FOURTH: The merger is to become effective on December 31, 2009, 11 :59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd, HarringtonPark, NJ 07640
Attn: Legal Dept
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be it's
Certificate of Incorporation
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the
18~
day of December
.D., _2_009 __
Name: '"Tu om C\._S V · f::>Q;-z---v·n
.
Print or Type
Title: JJ LQ .s,,1 cie n ±:::
State 0£ Delaware
Secretazy 0£ State
Division of Corporations
Delivered 12: 02 PM 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131695 -
4736636 FILE
STATE OF DELA WARE
CERTIFICATE OF MERGER OF
DOMESTIC CORPORATION AND
FOREIGN LIMITED LIABILITY COMPANY
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FlRST: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED w ATER SERVICES
SAN ANTONIO LLC
a (list jurisdiction) Texas
limited
liability company.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
FOURTH: The merger is to become effective on December 31, 2009 11:59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd,
Harrington Park, NI 07640
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate of Incorporation.
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the I ~•"f\\
day of December
,A.D., _20_0_9 __
By: 7/V)? •¥ p//Jrl
Authorized Officer
Name: JX\Ci'N\9i '> :::J?. 'b <VY':SY)
Print or Type
Title: 1) ws. 1de I'\+-
State of Delaware
Secretary of State
Division of Corporations
Delivered 12:02 PM 12/23/2009
FILED 12: 02 PM 12/23/2009
SRV 091131707 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC CORPORATION AND
FOREIGN LIMITED LIABILITY COMPANY
Pursuant to Title 8, Section 264(c) of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is UNITED WATER ENVIRONMENT AL
SERVICES INC.
, a Delaware Corporation, and the name of the
limited liability company being merged into this surviving corporation is UNITED WATER FLORIDA
OPERATIONS LLC
a (list jurisdiction) Florida
limited
liability company.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by the surviving corporation and the merging limited liability
company.
THIRD: The name of the surviving corporation is UNITED WATER ENVIRONMENTAL
SERVICES INC.
FOURTH: The merger is to become effective on December 31, 2009 11:59 p.m.
FIFTH: The Agreement of Merger is on file at United Water, 200 Old Hook Rd,
Harrington Park, NJ 07640
the place of business of the surviving corporation.
SIXTH: A copy of the Agreement of Merger will be furnished by the corporation
on request, without cost, to any stockholder of any constituent corporation or member
of any constituent limited liability company.
SEVENTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate of Incorporation.
IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by
an authorized officer, the
I s·'I"
day of D ember
A.D., _20_0_9 __
By:_,_ ___ ffi_n-41..--
__ _
Authorized Officer
Name: ~DY]l\ '.;;> 7 -'l,'2''V\JX'\
Print or Type
Title: ~
f-..OS~dcll\.,t-
State of Del.aware
Secretazy or State
Division of Corporations
Delivered 12:56 PM 07/29/2013
FILED 12: 07 PM 07/29/2013
SRV 130928152 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
FOREIGN CORPORATION INTO
A DOMESTIC CORPORATION
Pursuant to Title 8, Section 252 of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is United Water Environmental Services Inc ..
-----------------·' a Delaware corporationt and the name
of
the
corporation
being
merged
into
this
surviving
corporation
is
United Water Operations Contracts Inc.
,a New Jersey
----------------------
corporation.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by each of the constituent corporations pursuant to Title 8 Section 252
of the General Corporation Law of the State of Delaware.
THIRD: The name of the surviving corporation is United Water Environmental Services Inc.
_____________________
_.J a Delaware corporation.
FOURTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate oflncorporation. (If amendments are affected please set forth)
FIFI'H:
The authorized stock and par value of the non-Delaware corporation is
100 at$0 parvalue
SIXTH: The merger is to become effective on _th_e_fi_ili_ng_h_crew
__
it_h ________ _
SEVENTH: The Agreement of Merger is on file at 200 Old Hook Road, Harrington Park, NJ 07640
Attentin: Legal Department
an office of
the surviving corporation.
EIGlffH: A copy of the Agreement of Merger wi11 be furnished by the surviving
corporation on request, without cost, to any stockholder of the constituent corporations.
IN WITNESS WHEREOF, said surviving corporation has caused this certificate to be
signed by an authorized officer, the 2Stlt
day of July
A.D.,
2013
By:
,
Name: Carla B. Hjelm
Print or Type
Title: Secretary, United Water Environmental Services Inc.
State of Delaware
Secretary of State
Division or Corporations
Delivered 12:35 PM 08/19/2013
FILED 12: 35 PM 08/19/2013
SRV 131001551 -
4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF CORRECTION
United Water Environmental Services Inc.
, a
corporation organized and existing under and by virtue of the General Corporation Law· of
the State of Delaware.
DOES HEREBY CERTIFY:
I.
The name of the corporation is United Water Environmental Services Inc.
2.
That a Certificate of Merger
----------------------
(Tit I e of Ce1tificate Being Corrected)
was filed by the Secretary of State of Delaware on _Ju_ly_29_,_20_1_3 ______ _
and that said Certificate requires correction as pem1itted by Section 103 of the
General Corporation Law of the State of Delaware.
3.
The inaccuracy or dcfoct of said Certificate is: (must be specific)
4.
The date of merger Is inaccurately stated as: "SIJ\lh: The Merger Is to become effective on the
filing herewith."
Article Sixth
of the Certificate is corrected to read as follows:
"Sixth: The Merger is to become effective on October 27, 2013."
IN WlTNESS WHEREOF. said corporation has caused this Certificate of Correction
this
1q
day of August
, A.O. 2013
ByJ,L_L
Authorized Officer
Name: Nadine Leslie
Print or Type
Title: President
State of Delaware
Secretary of State
Division of Corporations
Delivered. 06:33 PM 03/25/2014
FILED 06:33 PM 03/25/2014
SRV.140379171 - 4736636 FILE
STATE OF DELAWARE
CERTIFICATE OF MERGER OF
DOMESTIC CORPORATIONS
Pursuant to Title 8, Section 251(c) of the Delaware General Corporation Law, the
undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is United Water Environmental Services Inc.
_________________ , and the name of the corporation being
merged into this surviving corporation is Suez Environnement North America Holdings Inc.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed
and acknowledged by each of the constituent corporations.
THIRD: The name of the surviving corporation is United Water Environmental Services lnc.
______________________ a Delaware corporation.
FOURTH: The Certificate of Incorporation of the surviving corporation shall be its
Certificate of Incorporation.
FIFTH: The merger is to become·effective on the filing of this certificate
SIXTH: The Agreement of Merger is on file at United Water 200 Old Hook Road,
Harrington Park, NJ 07640
, the place of business
of the surviving corporation.
SEVENTH: A copy of the Agreement of Merger will be furnished by the surviving
corporation on request, without cost, to any stockholder of the constituent corporations.
IN WITNESS WHEREOF, said surviving corporation has caused this certificate to be
signed by an authorized officer, the JS~
day of March
,A.O.,
2014
•
.
Name: Carla E. Hjelm
Print or Type
Title: Secretary
STATE OF DELAWARE
CERTIFICATE OF AMENDMENT
OF CERTIFICATE OF INCORPORATION
OF
UNITED WATER ENVIRONMENTAL SERVICES INC.
State of DelawaN
Secretary of State
Dh-·lslon of Corporations
Delivered 08:41 AM 11/02/201!
llLED 08:41 AM 11/0lll0IS
SR 20!50727944 • F11e Number 4736636
The corporation organized and existing under and by virtue of the General Corporation
Law of the State of Delaware does hereby certify:
1.
That the Board of Directors of United Water Environmental Services Inc. adopted
resolutions setting forth a proposed amendment of the Certificate of Incorporation which it
deems advisable; therefore, the Certificate of Incorporation of the Corporation is hereby
amended by striking out the Article FIRST thereof and substituting in lieu of said Article the
following new Article as follows:
"FIRST: The name of the corporation shall be: SUEZ Water Environmental Services Inc."
2.
The amendment of the Certificate of Incorporation herein certified has been duly
adopted in accordance with the provisions of Section 242 of the General Corporation Law of the
State of Delaware.
3.
This amendment shall become effective on November 9, 2015.
IN WITNESS WHEREOF, said corporation has caused this certificate to be signed this~ day of
November, 2015.
ATTEST:
UNITED WATER ENVIRONMENTAL SERVICES INC.
STATE OF NEW JERSEY
DEPARTMENT OF THE TREASURY
DIVISION OF REVENUE AND ENTERPRISE SERVICES
SHORT FORM STANDING
SUEZ WATER ENVIRONMENTAL SERVICES INC.
0101004563
I, the Treasurer of the State of New Jersey, do hereby certify that the
above-named Delaware Foreign For-Profjt Corporation was
registered by this office on October 20, 2D09.
As of the date of this certificate, said business continues as an active
business in good standing in the State of New Jersey, and its Annual
Reports are current.
I further certify that the registered agent and office are:
Certificate Number: 6079538623
Verify this certificate online at
CORPORATION SERVICE COMPANY
PRINCETON SOUTH CORPORATE CTR
STE 160, 100 CHARLES EWING BLVD
EWING, NJ 08628
IN TESTIMONY WHEREOF, I have
hereunto set my hand and affixed
my Official Seal at Trenton, this
4th day of May, 2017
~fl/~
Ford M Scudder
Acting State Treasurer
hllps:l/www I .state.nj. us/TYTR _ StandingCert/JSP/Verifo _ Certjsp
Delaware
Page 1
The First State
I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY "SUEZ WATER INC. " IS DULY INCORPORATED
UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD STANDING AND
HAS A LEGAL CORPORATE EXISTENCE SO FAR AS THE RECORDS OF THIS
OFFICE SHOW, AS OF THE FOURTH DAY OF MAY, A.D. 2017.
AND I
DO HEREBY FURTHER CERTIFY THAT THE ANNUAL REPORTS HAVE
BEEN FILED TO DATE.
AND I DO HEREBY FURTHER CERTIFY THAT THE SAID "SUEZ WATER INC. "
WAS INCORPORATED ON THE SECOND DAY OF DECEMBER, A. D. 2002.
AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE TAXES HAVE
BEEN PAID TO DATE.
3596796 8300
SR# 20173098579
You may verify this certificate online at corp.delaware.gov/authver.shtml
Authentication: 202488055
Date: 05-04-17
Delaware
Page 1
The First State
I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THE ATTACHED ARE TRUE AND CORRECT
COPIES OF ALL DOCUMENTS ON FILE OF "SUEZ WATER INC." AS RECEIVED
AND FILED IN THIS OFFICE.
THE FOLLOWING DOCUMENTS HAVE BEEN CERTIFIED:
CERTIFICATE OF INCORPORATION, FILED THE SECOND DAY OF
DECEMBER, A.D. 2002, AT 2 O'CLOCK P.M.
CERTIFICATE OF AMENDMENT, CHANGING ITS NAME FROM "UNITED
WATER INC. " TO "SUEZ WATER INC. ", FILED THE SECOND DAY OF
NOVEMBER, A.D. 2015, AT 9:02 O'CLOCK A.M.
AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
THE AFORESAID CERTIFICATE OF AMENDMENT IS THE NINTH DAY OF
NOVEMBER, A.D. 2015.
AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID
CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE
AFORESAID CORPORATION, "SUEZ WATER INC. ".
3596796 8100H
SR# 20173099992
You may verify this certificate on line at corp.delaware.gov/authver.shtml
Authentication: 202488233
Date: 05-04-17
I
I
I
I
I ;
STATE o/DELA WARE
CERTIFICATE o/INCORPORATION
A STOCK CORPORATION
•
First: The name of the corporation is United Water Inc.
STATE OF DELAWARE
SECRETARY OF STATE
DIVISION or-t:ORPoRATIONS
FILED 02: 00 PM 12/02/2002
020737127 -
3596796
•
Second; The address of its registered office in the State of Delaware is 2711 ·
Centerville Road, Suite 400 in the City of Wilmington, County of New Castle-. , The
name of its Registered Agent at such address is Corporation Service Company.
Tue zip code is 19808.
•
Third: The pU1pOse of the corporation is to engage in any lawful act or activity for
which corporations may be organized under the General Corporation Law of the
State of Delaware.
•
Fourth: The total authorized stock is 3,000 shares at $1.00 par value.
•
Fifth: The name of the incorporator is Robert A. Gerber. His address is 200 Old
Hook Road, Harrington Parle, New Jersey 07640-1799.
In Witness Whereof, the undersigned have executed this Certificate of Incotp0ration
on this 2nd day of December, 2002.
BY: (U..;/;a,~
Robert A. Gerber, Incorporator
STATE OF DELAWARE
CERTIFICATE OF AMENDMENT
OF CERTIFICATE OF INCORPORATION
OF
UNITED WATER INC.
State of Debwatt
Secretary or Stat,
Dl\.•lsfoa. of Corporations
Delivered 09:02 AM lllll212015
llLED 09:02AM 11/0l/2015
SR l01S0728388 • FlleNumber 3596796
The corporation organized and existing under and by virtue of the General Corporation
Law of the State of Delaware does hereby certify:
1.
That the Board of Directors of United Water Inc. adopted resolutions setting
forth a proposed amendment of the Certificate of Incorporation which it deems advisable;
therefore, the Certificate of Incorporation of the Corporation is hereby amended by striking out
the Article FIRST thereof and substituting in lieu of said Article the following new Article as
follows:
"FIRST: The name of the corporation shall be: SUEZ Water Inc."
2.
The amendment of the Certificate of Incorporation herein certified has been duly
adopted in accordance with the provisions of Section 242 of the General Corporation law of the
State of Delaware.
3.
This amendment shall become effective on November 9, 2015.
()l'cl
IN WITNESS WHEREOF, said corporation has caused this certificate to be signed this _d_ day of
November, 2015.
ATTEST:
UNITED WATER INC.
37
IC
37
IC
37
IC
37
IC
37
IC
37
IC
37
IC
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91-679-HY
91-422-HY
91-294-HY
91-330-HY
91-456-HY
91-393-HY
91-528-HY
91-527-HY
91-481-HY
91-699-HY
91-547-HY
91-206-HY
91-201-HY
91-646-HY
91-131-HY
91-715-HY
91-325-HY
91-629-HY
91-455-HY
91-317-HY
91-106-HY
91-657-HY
91-459-HY
91-587-HY
91-696-HY
91-691-HY
91-115-HY
91-437-HY
91-264-HY
91-412-HY
91-234-HY
91-706-HY
91-540-HY
91-635-HY
91-343-HY
91-242-HY
91-678-HY
91-149-HY
91-493-HY
91-506-HY
91-371-HY
91-207-HY
91-645-HY
91-495-HY
91-368-HY
91-176-HY
91-758-HY
91-480-HY
91-231-HY
91-722-HY
91-321-HY
91-267-HY
91-449-HY
91-427-HY
91-103-HY
91-377-HY
91-310-HY
91-190-HY
91-631-HY
91-349-HY
91-373-HY
91-511-HY
91-625-HY
91-705-HY
91-153-HY
91-366-HY
91-123-HY
91-251-HY
91-709-HY
91-193-HY
91-667-HY
91-376-HY
91-165-HY
91-685-HY
91-347-HY
91-365-HY
91-762-HY
91-280-HY
91-253-HY
91-578-HY
91-148-HY
91-656-HY
91-394-HY
91-300-HY
91-238-HY
91-195-HY
91-675-HY
91-602-HY
91-571-HY
91-454-HY
91-530-HY
91-420-HY
91-416-HY
91-503-HY
91-572-HY
91-109-HY
91-668-HY
91-308-HY
91-117-HY
91-100-HY
91-507-HY
91-338-HY
91-600-HY
91-582-HY
91-334-HY
91-196-HY
91-249-HY
91-168-HY
91-515-HY
91-517-HY
91-367-HY
91-757-HY
91-209-HY
91-702-HY
91-145-HY
91-724-HY
91-588-HY
91-143-HY
91-463-HY
91-403-HY
91-275-HY
91-606-HY
91-553-HY
91-261-HY
91-400-HY
91-688-HY
91-462-HY
91-654-HY
91-498-HY
91-336-HY
91-601-HY
91-290-HY
91-634-HY
91-458-HY
91-742-HY
91-640-HY
91-718-HY
91-263-HY
91-542-HY
91-255-HY
91-769-HY
91-537-HY
91-692-HY
91-560-HY
91-370-HY
91-730-HY
91-484-HY
91-723-HY
91-623-HY
91-581-HY
91-751-HY
91-174-HY
91-677-HY
91-488-HY
91-763-HY
91-451-HY
91-747-HY
91-221-HY
91-719-HY
91-616-HY
91-395-HY
91-204-HY
91-569-HY
91-746-HY
91-475-HY
91-228-HY
91-359-HY
91-104-HY
91-340-HY
91-566-HY
91-446-HY
91-320-HY
91-417-HY
91-536-HY
91-138-HY
91-666-HY
91-561-HY
91-697-HY
91-671-HY
91-661-HY
91-402-HY
91-126-HY
91-707-HY
91-292-HY
91-453-HY
91-710-HY
91-768-HY
91-213-HY
91-617-HY
91-151-HY
91-478-HY
91-721-HY
91-383-HY
91-736-HY
91-494-HY
91-628-HY
91-222-HY
91-683-HY
91-773-HY
91-583-HY
91-518-HY
91-364-HY
91-132-HY
91-122-HY
91-726-HY
91-447-HY
91-445-HY
91-345-HY
91-510-HY
91-183-HY
91-565-HY
91-217-HY
91-224-HY
91-180-HY
91-379-HY
91-490-HY
91-596-HY
91-564-HY
91-568-HY
91-450-HY
91-586-HY
91-419-HY
91-141-HY
91-244-HY
91-603-HY
91-618-HY
91-622-HY
91-279-HY
91-433-HY
91-516-HY
91-534-HY
91-344-HY
91-270-HY
91-521-HY
91-178-HY
91-105-HY
91-158-HY
91-473-HY
91-759-HY
91-559-HY
20 inch
48 inch
36 inch
16 inch
12 inch
10 inch
6 inch
8 inch
2 inch
14 inch
10
4 inch
8
8 inch
2 inch
4 inch
2 inch
6 inch
6 inch
6 inch
12 inch
6 inch
10 inch
4 inch
4 inch
8 inch
8 inch
12 inch
8 inch
2 inch
8 inch
12
inch
4 inch
2 inch
6 inch
6 inch
8 inch
12 inch
4 inch
6 inch
2 inch
6 inch
8 inch
6
i
n
ch
2 inch
8 inch
6 inch
10 inch
6 inch
4 inch
6 inch
8 i
n
ch
4 inch
6 inch
8 inch
6 inch
16 inch
20 inch
2 inch
6 inch
6 inch
8 inch
2 inch
6 inch
6 inch
6 inch
6 inch
6 inch
4 inch
8 inch
2 inch
8 inch
6 inch
2 inch
10 inch
8 inch
6 inch
4 inch
10 inch
4 inch
16 inch
4 inch
12 inch
6 inch
6 inch
10 inch
20 inch
2 inch
6 inch
10 inch
6 inch
6 inch
8 inch
2 inch
2 inch
12 inch
8 inch
6 inch
8 inch
16 inch
6 inch
6 inch
2 inch
8 inch
4 inch
6 inch
6 inch
2 inch
10 inch
6 inch
8 inch
8 inch
6 inch
4 inch
12 inch
6 inch
6 i
nch
6 inch
8 inch
16 inch
2 inch
8 inch
4 inch
4 inch
6 inch
8 inch
10 inch
8 inch
2 inch
6 inch
6 inch
4 inch
16 inch
6 inch
6 inch
8 inch
10 inch
36 inch
8 inch
6 inch
2 inch
10 inch
6 inch
6 inch
2 inch
6 inch
8 inch
6 inch
8 inch
2 inch
4 inch
Blowoff
91-75-DIST-VALVE
91-71-DIST-VALVE
91-61-DIST-VALVE
91-73-DIST-VALVE
91-74-DIST-VALVE
91-85-DIST-VALVE
91-81-DIST-VALVE
91-48-DIST-VALVE
91-79-DIST-VALVE
91-43-DIST-VALVE
91-90-DIST-VALVE
91-50-DIST-VALVE
91-68-DIST-VALVE
91-58-DIST-VALVE
91-94-DIST-VALVE
91-30-DIST-VALVE
91-98-DIST-VALVE
91-87-DIST-VALVE
91-70-DIST-VALVE
91-96-DIST-VALVE
91-46-DIST-VALVE
91-92-DIST-VALVE
91-14-DIST-VALVE
91-77-DIST-VALVE
91-966-DIST-VALVE
91-956-DIST-VALVE
91-955-DIST-VALVE
91-949-DIST-VALVE
91-751-DIST-VALVE
91-703-DIST-VALVE
91-450-DIST-VALVE
91-430-DIST-VALVE
91-374-DIST-VALVE
91-326-DIST-VALVE
91-315-DIST-VALVE
91-295-DIST-VALVE
91-284-DIST-VALVE
91-141-DIST-VALVE
91-1441-Air-VALVE
91-461-DIST-VALVE
91-754-DIST-VALVE
91-681-DIST-VALVE
91-385-DIST-VALVE
91-532-DIST-VALVE
91-941-DIST-VALVE
91-774-DIST-VALVE
91-351-DIST-VALVE
91-161-DIST-VALVE
91-554-DIST-VALVE
91-451-DIST-VALVE
91-403-DIST-VALVE
91-655-DIST-VALVE
91-414-DIST-VALVE
91-252-DIST-VALVE
91-496-DIST-VALVE
91-491-DIST-VALVE
91-915-DIST-VALVE
91-580-DIST-VALVE
91-928-DIST-VALVE
91-954-DIST-VALVE
91-275-DIST-VALVE
91-425-DIST-VALVE
91-572-DIST-VALVE
91-999-DIST-VALVE
91-485-DIST-VALVE
91-192-DIST-VALVE
91-384-DIST-VALVE
91-497-DIST-VALVE
91-982-DIST-VALVE
91-379-DIST-VALVE
91-236-DIST-VALVE
91-907-DIST-VALVE
91-742-DIST-VALVE
91-663-DIST-VALVE
91-483-DIST-VALVE
91-557-DIST-VALVE
91-135-DIST-VALVE
91-768-DIST-VALVE
91-154-DIST-VALVE
91-590-DIST-VALVE
91-765-DIST-VALVE
91-552-DIST-VALVE
91-989-DIST-VALVE
91-750-DIST-VALVE
91-335-DIST-VALVE
91-129-DIST-VALVE
91-114-DIST-VALVE
91-948-DIST-VALVE
91-465-DIST-VALVE
91-448-DIST-VALVE
91-447-DIST-VALVE
91-502-DIST-VALVE
91-772-DIST-VALVE
91-156-DIST-VALVE
91-522-DIST-VALVE
91-625-DIST-VALVE
91-302-DIST-VALVE
91-538-DIST-VALVE
91-987-DIST-VALVE
91-445-DIST-VALVE
91-734-DIST-VALVE
91-533-DIST-VALVE
91-469-DIST-VALVE
91-901-DIST-VALVE
91-690-DIST-VALVE
91-380-DIST-VALVE
91-943-DIST-VALVE
91-521-DIST-VALVE
91-677-DIST-VALVE
91-530-DIST-VALVE
91-239-DIST-VALVE
91-468-DIST-VALVE
91-139-DIST-VALVE
91-848-DIST-VALVE
91-413-DIST-VALVE
91-763-DIST-VALVE
91-207-DIST-VALVE
91-874-DIST-VALVE
91-362-DIST-VALVE
91-854-DIST-VALVE
91-381-DIST-VALVE
91-551-DIST-VALVE
91-931-DIST-VALVE
91-405-DIST-VALVE
91-312-DIST-VALVE
91-100-DIST-VALVE
91-998-DIST-VALVE
91-108-DIST-VALVE
91-626-DIST-VALVE
91-878-DIST-VALVE
91-805-DIST-VALVE
91-821-DIST-VALVE
91-918-DIST-VALVE
91-850-DIST-VALVE
91-305-DIST-VALVE
91-990-DIST-VALVE
91-193-DIST-VALVE
91-503-DIST-VALVE
91-492-DIST-VALVE
91-437-DIST-VALVE
91-628-DIST-VALVE
91-200-DIST-VALVE
91-327-DIST-VALVE
91-942-DIST-VALVE
91-102-DIST-VALVE
91-614-DIST-VALVE
91-269-DIST-VALVE
91-861-DIST-VALVE
91-407-DIST-VALVE
91-670-DIST-VALVE
91-640-DIST-VALVE
91-508-DIST-VALVE
91-328-DIST-VALVE
91-856-DIST-VALVE
91-101-DIST-VALVE
91-555-DIST-VALVE
91-720-DIST-VALVE
91-647-DIST-VALVE
91-801-DIST-VALVE
91-426-DIST-VALVE
91-633-DIST-VALVE
91-961-DIST-VALVE
91-357-DIST-VALVE
91-434-DIST-VALVE
91-337-DIST-VALVE
91-949-DIST-VALVE
91-120-DIST-VALVE
91-958-DIST-VALVE
91-794-DIST-VALVE
91-938-DIST-VALVE
91-208-DIST-VALVE
91-125-DIST-VALVE
91-194-DIST-VALVE
91-700-DIST-VALVE
91-583-DIST-VALVE
91-519-DIST-VALVE
91-545-DIST-VALVE
91-454-DIST-VALVE
91-953-DIST-VALVE
91-185-DIST-VALVE
91-936-DIST-VALVE
91-623-DIST-VALVE
91-268-DIST-VALVE
91-486-DIST-VALVE
91-662-DIST-VALVE
91-869-DIST-VALVE
91-270-DIST-VALVE
91-494-DIST-VALVE
91-829-DIST-VALVE
91-618-DIST-VALVE
91-346-DIST-VALVE
91-546-DIST-VALVE
91-453-DIST-VALVE
91-610-DIST-VALVE
91-574-DIST-VALVE
91-209-DIST-VALVE
91-476-DIST-VALVE
91-591-DIST-VALVE
91-317-DIST-VALVE
91-952-DIST-VALVE
91-664-DIST-VALVE
91-576-DIST-VALVE
91-158-DIST-VALVE
91-584-DIST-VALVE
91-195-DIST-VALVE
91-558-DIST-VALVE
91-122-DIST-VALVE
91-489-DIST-VALVE
91-940-DIST-VALVE
91-244-DIST-VALVE
91-189-DIST-VALVE
91-495-DIST-VALVE
91-435-DIST-VALVE
91-890-DIST-VALVE
91-960-DIST-VALVE
91-251-DIST-VALVE
91-843-DIST-VALVE
91-951-DIST-VALVE
91-997-DIST-VALVE
91-466-DIST-VALVE
91-665-DIST-VALVE
91-409-DIST-VALVE
91-549-DIST-VALVE
91-995-DIST-VALVE
91-477-DIST-VALVE
91-1504-DIST-VALVE
91-1485-DIST-VALVE
91-1481-DIST-VALVE
91-1476-DIST-VALVE
91-1468-DIST-VALVE
91-1467-DIST-VALVE
91-1466-DIST-VALVE
91-1465-DIST-VALVE
91-1459-DIST-VALVE
91-1447-DIST-VALVE
91-1440-DIST-VALVE
91-1198-DIST-VALVE
91-1197-DIST-VALVE
91-1396-DIST-VALVE
91-1043-DIST-VALVE
91-1115-DIST-VALVE
91-1266-DIST-VALVE
91-1034-DIST-VALVE
91-1125-DIST-VALVE
91-1202-DIST-VALVE
91-1336-DIST-VALVE
91-1304-DIST-VALVE
91-1049-DIST-VALVE
91-1204-DIST-VALVE
91-1390-DIST-VALVE
91-1281-DIST-VALVE
91-1400-DIST-VALVE
91-1098-DIST-VALVE
91-1317-DIST-VALVE
91-1147-DIST-VALVE
91-1068-DIST-VALVE
91-1209-DIST-VALVE
91-1213-DIST-VALVE
91-1158-DIST-VALVE
91-1356-DIST-VALVE
91-1426-DIST-VALVE
91-1381-DIST-VALVE
91-1002-DIST-VALVE
91-1061-DIST-VALVE
91-1101-DIST-VALVE
91-1051-DIST-VALVE
91-1143-DIST-VALVE
91-1290-DIST-VALVE
91-1425-DIST-VALVE
91-1275-DIST-VALVE
91-1367-DIST-VALVE
91-1253-DIST-VALVE
91-1104-DIST-VALVE
91-1408-DIST-VALVE
91-1085-DIST-VALVE
91-1417-DIST-VALVE
91-1364-DIST-VALVE
91-1167-DIST-VALVE
91-1054-DIST-VALVE
91-1229-DIST-VALVE
91-1108-DIST-VALVE
91-1087-DIST-VALVE
91-1412-DIST-VALVE
91-1111-DIST-VALVE
91-1036-DIST-VALVE
91-1146-DIST-VALVE
91-1044-DIST-VALVE
91-1239-DIST-VALVE
91-1339-DIST-VALVE
91-1428-DIST-VALVE
91-1225-DIST-VALVE
91-1347-DIST-VALVE
91-1340-DIST-VALVE
91-1163-DIST-VALVE
91-1405-DIST-VALVE
91-1156-DIST-VALVE
91-1321-DIST-VALVE
91-1334-DIST-VALVE
91-1370-DIST-VALVE
91-1293-DIST-VALVE
91-1379-DIST-VALVE
91-1419-DIST-VALVE
91-1185-DIST-VALVE
91-1301-DIST-VALVE
91-1240-DIST-VALVE
91-1134-DIST-VALVE
91-1215-DIST-VALVE
91-1279-DIST-VALVE
91-1330-DIST-VALVE
91-1388-DIST-VALVE
91-1190-DIST-VALVE
91-1383-DIST-VALVE
91-1000-DIST-VALVE
91-1247-DIST-VALVE
91-16-HY
91-95-HY
91-113-HY
91-289-HY
91-690-HY
91-351-HY
91-660-HY
91-241-HY
91-554-HY
91-750-HY
91-142-HY
91-140-HY
91-555-HY
91-157-HY
91-695-HY
91-202-HY
91-548-HY
91-283-HY
91-669-HY
91-579-HY
91-252-HY
91-278-HY
91-407-HY
91-556-HY
91-112-HY
91-226-HY
91-442-HY
91-775-HY
91-658-HY
91-137-HY
91-613-HY
91-774-HY
91-584-HY
91-597-HY
91-740-HY
91-567-HY
91-642-HY
91-570-HY
91-687-HY
91-277-HY
91-543-HY
91-689-HY
91-605-HY
91-341-HY
91-389-HY
91-328-HY
Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community
Rahway System Map
SUEZ-NA January, 2022
G
!.
Hydrant
SubtypeCode
!
(
Bypass
"¥
AirValve
!?
BlowOff
!
(
DeadEnd
!(
!
(
Division
"
!
(
InsertionValve
!
(
LineValve
RWWATER.wPressurizedMain
Unknown
DIAMETER, SubtypeCode
0, 50
1 inch, FlushLine
10 inch, Distribution
12 inch, Distribution
14 inch, Distribution
16 inch, Distribution
16 inch, FlushLine
16 inch, Transmission
18 inch, Transmission
2 inch, Distribution
20 inch, Distribution
24 inch, Distribution
26, Transmission
3 inch, Distribution
3, 50
3/4 inch, Distribution
30 inch, Transmission
36 inch, Transmission
4 inch, Distribution
4 inch, FlushLine
4, 50
42 inch, Transmission
48 inch, Transmission
51, Transmission
6 inch, Distribution
6 inch, FlushLine
6 inch, Transmission
6, 50
60 inch, Transmission
72 inch, Transmission
8 inch, Distribution
Unknown, FlushLine
RWWATER.wNetworkProductionStructure
<all other values>
SubtypeCode
EnclosedStorageFacility
[
Ú
PumpingFacility
Reservoir
3
Q
TreatmentPlant
"M
Well
!
ElevatedTank
U
T
UndergroundTank
U
T
GroundTank
.
StandPipe
37
IC
InterConnect
World Street Map
RWWATER.wHydrantValve
<all other values>
SubtypeCode
!
HydrantValve
RWWATER.wHydrantBranchLine
<all other values>
SubtypeCode
HydrantBranchLine
RWWATER.wServiceCurbStop
<all other values>
SubtypeCode
!?
CurbStop
RWWATER.wServiceLine
<all other values>
SubtypeCode
Commercial
Domestic
Fire
Industrial
Irrigation
PublicAuthority
Wholesale
¯
2,200
0
2,200
1,100
Feet
07/25/2007
17:57
CITY OF RAHWAY -
AGREEMENT
THIS AGREEMENT made the 15th day of June, 2004, between THE CITY OF
RAHWAY, a Municipal Corporation of the State of New Jersey, situated In the
County of Union (hereinafter called "City•) and MERCK & CO., INC., a Naw
Jersey Corporation organized under the laws of the State of New Jersey
(hereinafter called "Merck").·
After July 1st an·d on each succeeding July 1 't during the term of the Agreementi
the annual rate shall be increased by applying the preceding year's annual
C~msumeir Price Index ("CPI") for the New York/New Jersey Region to the then
current rate, plus one half (1/2) of one percent (1 %).
Then Current Rate X Preceding Year CPI::: -v• + 0.5% = New Rate.
In no event shall thi.s rate exceed the rate established by ·any future Ordinance
adopted by the Municipal Council of the City of Rahway.
WITNESSETH:
WHEREAS, Merck desires tc obtain from the City for its own use a supply of
water of approximately one million (1,000,000) gallons per day through the
existing pipeline to Merck's Rahway/Linden facility (the "Facllliy"); and
WHEREAS, the City has represented that ft h~s the ability to provide safe,
adequate and proper water service to Merck; and
WHEREAS, the City has represented that, in order to provfde an emergency
back-up water source for such water servioe aforesaid, the City must connect its
water facilities to those of Middlesex Water Co. (the "Hook-Up"}.
NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
he":'bY, the parties hereto hereby agree as follows:
1.
(a)
The City agrees to sell and deliver to the Facility, and Merck agrees
to purchase and accept from the City commencing on the date of July 1, 2004,
and continuing for a period of twenty (20) years (through June 30, 2023), one
million (1,000,000) g~llons per day of water from the water source supply of the
City, at the rates as set forth in the Rate Schedule attached hereto as Exhibit "A"
or at the rates then in effect pursuant. to duly enacted legisration approved by the
Governing Body of the City amending its rate schedule.
PAGE
02
\
pll,GE
03
(b)
Merck shall pay for the purchase of water in monthly Installment
payments of$ 90,000 per month ("Retail Price"), such payment to be due on the
first day of the month, beginning July 1, 2004. Any overages for p;yment made
for water not taken by Merck shall be adjusted by the City at the end of eacll year
of the contract period and any such overagas shall be credited to Merck. In the
event that Merck purchases water in excess of tt,e annual commitment, City shall
provide an invoice representing 1ha emount due from Merck within thirty (30)
days of the end of the calendar year with the payment due with an additional
thirty (30) days of the date of said Invoice.
(c)
If Merck fails to take said daily gallonage as averaged overs year
(I.e., three hundred sixty-five million (365,000,000) gallons per year), Mercie shall
then pay to the City the amount representing the difference between the City's
retail cost {currently $2,465.24 per million gallons) and the City's cost for the
production of such gallonage (currently $937.00 per million gallons) rrnfferential
Price") solely for each million gallons or portion thereof not used by Merck.
(d)
. In the event of a leap year, Merck shafl pay to the City the amount
of the Retail Price for 3,666,000,000 gallons per year.
{e)
Any disputes regarding gallonage taken and/or amount billed if not
resolved between the parties, shall be submitted for art:>mit:ra:ti:on:be:t:or~e~t~he:_ __ ----~--
American Arbitration .Association.
.
The Cit ·
or providing safe and adequate water
sen,
, tn udlng, without limitation, all system improvements
necessary therefore.
2.
Merck shall reimburse the City for all costs reasonably, actually and
necessarily incurred by the City and payable to Middlesex Water Co., in
connection with the Hook .. Up, not to exceed Two Hundred Fifty Thousand Dollars
($250,000). Merck shall so reimburse the City within thirty (30) days after receipt
of an invoice therefore, together with support documentation.
3.
(a)
Promptly upon execution of this Agreement, Merck shall, at no cost
or expense to the City, cap, sear and grout Rahway Municipal Well No. 6 (the
•well"}, and the City hereby grants to Merck the right to enter upon the
appurtenant property and access the Well solely for this purpose. Upon
completion of said capping, sealing and grouting, the City shall thereafter keep
the Well so capped, sealed and grouted, which obligation shell survive expiration
or other termination of this Agreement. Merck shall pay the city of Rahway Two
Hundred Fifty Thousand Dollars ($250,000) (the ·capping Fee~} for the right to
cap, seal and grout the Well.
CITY OF RAAWAY -
(b)
Merck shall Indemnify and hold harmleB!i the City, its Officials,
Employees, Agents, Servants and Deslgnees against any and all Claims, suits,
damages, losses, costs (including, without limitation, attorneys' fees and court
costs) in connection with any and all of Merck's activities regarding the Well an
any right or entry granted to Merck in connection with the Well.
4.
It is further understood and agreed that In the event of war, fire or other
catastrophic event outside of the reasonable control of either party that prevents
the delivery or use of the minimum quantity of water set forth herein, Merck shall
not be required to pay for such prevented amounts of water during such period.
The affected party shall pursue correction of such event with diligence.
5.
This Agreement may be terminated any time by thirty (30) days' prior
written notice thereof to the City if the City does not comply with the terms or the
Agreement; provided, however, that the City has received written notice of such
failure to comply and a ressonable period of time thereafter (taking into account
the nature of the cure) to cure such failure to comply.
lN WITNESS WHEREOF the parties hereto have caused their respective
corporate seals to be hereunto affixed end these presents to be executed by their
respective proper officers the day and year first above written.
ATTEST - SEAL
Ing
-412/04
RVw,aten1grmt.<1oc
MERCK & CO., INC.
ClTY OF RAHWAY
B~~
PAGE
04
EVALUATION REPORT
INTAKE STRUCTURE EVALUATION
RAHWAY WATER TREATMENT PLANT
CITY OF RAHWAY, UNION COUNTY, NEW JERSEY
Submitted to:
City of Rahway
1 City Hall Plaza
Rahway, New Jersey 07065
Prepared by:
CONSULTING AND MUNICIPAL ENGINEERS
3141 BORDENTOWN AVENUE, PARLIN, NEW JERSEY 08859 (732)-727-8000
November 2019
DRAFT
Intake Structure Evaluation
Rahway Water Treatment Plant
Rahway, Union County
November 2019
Page ii of ii
TABLE OF CONTENTS
Page
COVER LETTER…………………………………………………………………..……...…. i
TABLE OF CONTENTS…………………………………………………………….………. ii
INTRODUCTION……………...……………………………………………………………... 1
OVERVIEW……………...……………………………………………………………...
1
INTAKE STRUCTURE DESCRIPTION………………………………………..……….…. 3
VISUAL EVALUATION…………………………………………………………..…….…… 4
CONCLUSIONS AND RECOMMENDATIONS………………………………….………. 11
Rating Criteria…………………………………………………………………………… 11
General…………………………………………………………………………………… 11
Recommended Maintenance and Repair Items……..……………….…………… 12
CLOSURE…………..…………………..……………………….…………………………… 15
FIGURES
Figure 1
Site Location Plan
Figure 2
Sketch of Weir Structure
Figure 3
Undermining Location Plan
APPENDIX
Attachment A
Visual Evaluation Photographs for the Intake Structure
Attachment B
Waterware Commercial Diving Survey Report and Video
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 1 of 15
INTRODUCTION
In accordance with our authorization, a condition evaluation of the Intake Structure at
the Rahway Water Treatment Plant was performed on July 11, 2019. The condition
evaluation included both the areas of the structure above and the below the water
surface. The underwater visual evaluation of the Intake Structure was performed by
Waterware Commercial Diving Services Corporation. This report summarizes the
results of the evaluation of the Intake Structure at the Water Treatment Plant.
OVERVIEW
The residents and businesses of the City of Rahway are served by a Water System
consisting of a Water Treatment Plant (WTP), four (4) storage tanks, eight (8)
interconnections, and more than 85 miles of distribution piping. The Water Treatment
Plant is located at 1045 Westfield Avenue along the Rahway River in the City of
Rahway and is operated by SUEZ. Raw water is drawn from the Rahway River into the
Plant for treatment. The main components of the Plant are:
• Rahway River Intake Structure
• Raw Water Low Lift Pumping Station
• Packed Towers / Air Strippers
• Coagulation Basins
• Membrane Filter Building
• Clearwell
• Granular Activated Carbon (GAC) Facility
• Chemical Storage and Feed Facilities
• High Lift Finished Water Pumping Station
• Holding Pond
• Decant Facility
• Dewatering Facility
• Maintenance Building
• Office Building
• 3 MG Ground Storage Tank
• 0.5 MG Finished Water Storage Tank
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 2 of 15
With the recent completion of the Membrane Filtration Units, the peak capacity of the
existing Water Treatment Plant is approximately 7.7 million gallons per day (MGD).
Interconnections provide an additional supply of water to meet the demands of the City.
The Intake Structure, a raw water component of the Water Treatment Plant, is located
within the Rahway River. The Rahway River runs north to south in the area of the
Intake Structure. The drainage area of the Rahway River, upstream of the Water
Treatment Plant, is approximately 40 square miles. It is believed that the Intake
Structure was constructed in the late 1800’s with the construction of the Water
Treatment Plant.
The Intake Structure components consist of a 67’ wide barrage or as more commonly
referred to in this part of the United States as a poured in place concrete Weir,
upstream and downstream channel walls and raw water intakes. The weir structure is a
rectangular broad crested type weir. The weir structure is equipped with four sluice
gates, training walls and associated controlled spillway with upstream and downstream
aprons.
The weir structure creates a headwater which allows the water in the Rahway River to
flow by gravity through the raw water intakes and into the Water Treatment Plant for
processing into potable water. The concrete weir consists of four sluice gates which
regulate flow through the weir and maintains an upstream water level that is adequate
to supply raw water to the Treatment Plant. A timber walkway spans the weir for access
to the sluice gates. Concrete channel walls are located upstream and downstream of
the structure on both the eastern and western sides of the Rahway River. Three raw
water intakes are located on the upstream western channel wall. These raw water
intakes are the entry point of the raw water to the Water Treatment Plant. Currently,
two of the three raw water intakes are active. The two active intakes are channels that
allow water to flow by gravity though concrete channels into the Raw Water Low Lift
Pumping Station. A bar rack and traveling screen as shown in Photo No. 3 in
Attachment A prevent large debris from entering the Raw Water Low Lift Pumping
Station. Figure 1 – Site Location Plan shows the locations of the components of the
Intake Structure.
It is our understanding that the weir is not considered a dam and, as a result is not
registered with the NJDEP Division of Dam Safety and Flood Control. Plans and other
records pertaining to the construction of the weir were not available. Additional
photographs of the Intake Structure are included in Attachment A of the Appendix.
RAW WATER INTAKE
NO. 2 (ACTIVE)
RAW WATER INTAKE
NO. 1 (ACTIVE)
SLUICE GATE
NO. 1
SLUICE GATE
NO. 2
SLUICE
GATE NO. 3
SLUICE GATE
NO. 4
RAW WATER
INTAKE NO.
3 (INACTIVE)
WEIR STRUCTURE
UPSTREAM TRAINING
WALL (EAST)
DOWNSTREAM
CHANNEL WALL (EAST)
DOWNSTREAM
CHANNEL WALL (WEST)
UPSTREAM TRAINING
WALL (WEST)
®
INTAKE STRUCTURE EVALUATION
FIGURE 1 - SITE LOCATION PLAN
SCALE : 1" = 20'
DATE : 11/2019
CITY OF RAHWAY
UNION COUNTY, NEW JERSEY
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 3 of 15
The following sections provide a description of the Structure, a summary of the visual
evaluations and, based on the visual evaluations, the recommendations for the
maintenance and repairs of the Intake Structure to improve its condition.
INTAKE STRUCTURE DESCRIPTION
The weir structure spans approximately 67' across the Rahway River in the east to west
orientation between Rahway River Park (east) and the Water Treatment Plant (west).
There is a timber walkway consisting of timber planks and rails, approximately 3’-0”
wide which spans the crest of the weir structure. The timber walkway provides access,
across the Rahway River, to the spillway gates and for removing debris from the
structure.
The weir structure includes four spillway gates that regulate the flow of the river to
maintain an adequate upstream water level. Each of the four gates are separated by
concrete training walls. The gates are positioned within channels located in the weir.
During normal operation, the gates are fully closed in the down position and water
overtops the gate and onto the downstream spillway apron. In high flow events, the
gates can be raised to increase the passing flow of water through the Intake Structure.
The gates consist of a 10’-0” wide steel plate mounted in a steel frame. The gates have
electrically actuated gear operators that raise and lower the gates. Controls for each
gate operator are located on the western side of the Intake Structure. The gear
operators may also be operated manually from the timber walkway. The SUEZ operator
indicated that all four gates were recently repaired and are in working order. A drawing
of the weir structure is shown in Figure 2 – Sketch of the Weir Structure.
There are two active intakes located approximately 75’ upstream of the weir structure
along the western upstream training wall. Each intake contains a bar rack mounted on
the upstream training wall at the influent to the Water Treatment Plant. Beyond the bar
rack, water in the intake flows in a channel through a traveling screen and to the Raw
Water Low Lift Pumping Station where it can be conveyed into the Water Treatment
Plant for processing. There is a third raw water intake located on the same upstream
training wall as the other two intakes. However, it was reported that this intake is
inactive and has not operated since it was replaced and repaired after Superstorm
Sandy. The third inactive intake is located approximately 25’ upstream of the weir
structure. A metal sheet pile is anchored into the wall to divert debris from flowing into
INTAKE STRUCTURE EVALUATION
FIGURE 2 - SKETCH OF WEIR STRUCTURE
SCALE : 1" = 20'
DATE : 11/2019
CITY OF RAHWAY
UNION COUNTY, NEW JERSEY
10' WIDE SPILLWAY
GATE (TYP. 4)
TRAINING WALL
(TYP.)
CONCRETE UPSTREAM
APRON (TYP.)
CONCRETE DOWNSTREAM
SPILLWAY (APRON) (TYP.)
TIMBER WALKWAY
DOWNSTREAM CHANNEL
WALL (EAST)
UPSTREAM CHANNEL WALL
(EAST)
DOWNSTREAM CHANNEL
WALL (WEST)
UPSTREAM CHANNEL WALL
(WEST)
FLOW
RAHWAY RIVER
TRAINING WALL (TYP.)
STORM SEWER PIPE
WEIR STRUCTURE
THIS DRAWING WAS PREPARED TO DEPICT LOCATIONS
AND FEATURES OF THE INTAKE STRUCTURE BASED ON
THE VISUAL EVALUATION PERFORMED ON JULY 11, 2019.
WEIR STRUCTURE
WEIR STRUCTURE
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 4 of 15
the third raw water intake. Photo No. 4 in Attachment A of the Appendix shows the third
inactive intake and associated steel sheet pile.
Concrete channel walls are located upstream and downstream of the weir structure on
both the eastern and western sides of the Rahway River. Based on field measurements
by both the evaluation crew and the diving team, the footings of the walls are typically
16" thick with a 4" shelf from the face of the wall. The eastern upstream wall is
approximately 44'-6” long and the eastern downstream wall is approximately 84’-0” long.
The western upstream wall is approximately 110'-4” long and the western downstream
wall is approximately 79'-0” long.
Refer to Figure 1 for approximate dimensions of the Intake Structure and component
locations.
VISUAL EVALUATION
The visual evaluation of the Intake Structure was performed on July 11, 2019 by the
following representatives of CME Associates: Zachary Williams, P.E., and Steven
Prestileo, E.I.T. Photographs taken of critical elements show the present condition of
the Intake Structure on the date of the evaluation. A SUEZ employee was present
during the evaluation to provide access to the timber walkway and the upstream and
downstream channel walls.
The following were examined during the evaluation: weir structure; upstream and
downstream channel walls; spillway gates; raw water intake bar screens; and, concrete
spillway walls, training walls and spillway inclines (aprons) leading to the crest of the
spillway gates. Water was observed to be flowing over and under the spillway gates on
the weir structure during the evaluation. .
The inspections of the underwater areas of the upstream and downstream channel
walls, the raw water intakes up to the bar racks, the spillway gates, and the upstream
portion of the intake structure were performed by Waterware Commercial Diving
Services Corporation. The diver’s evaluation report and an electronic copy of the video
recordings of the diving survey are contained in Attachment B of the Appendix. The
representatives from CME Associates were stationed at the video monitor while diving
was in progress to evaluate the visual record and recommend additional probing, if and
where appropriate. The majority of the underwater evaluation was performed by
panning a camera up and down the walls in 18" increments as shown in the attached
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 5 of 15
videos. Any contact with the river bottom resulted in silt and debris creating unclear
images. For walls found to be undermined during the visual evaluation, the dive captain
went into the Rahway River to take measurements.
Weir Structure
The rectangular broad-crested weirs (weir structure) spans approximately 67' across the
Rahway River. There is a timber walkway consisting of timber planks and rails,
approximately 3’-0” wide which spans the crest of the structure. The weir structure
includes four 10’ wide rectangular sluice gates that can regulate the flow. A concrete
apron is located along the River bottom upstream of each gate. Downstream of each
gate is a concrete spillway that slopes to the downstream water surface. Between each
of the gates is a concrete training wall that extends upstream and downstream.
Portions of the apron were found to be undermined on the upstream side of Intake
Structure. The concrete, below the water surface, was heavily covered in silt and algae
which limited the evaluation of the concrete condition.
The concrete spillway slopes down to transition to the downstream streambed elevation.
Severe scour of up to 8’-0” deep and extending up to 10’-0” downstream was noted at
the edge of the concrete spillway. The below sketch depicts a cross section view of the
weir structure.
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 6 of 15
Weir Structure Typical Cross Section
Sluice Gates
The gates consist of a 10’ wide steel plate mounted in a steel frame located between
two training walls. At all four gate locations, the bottom steel frame is raised
approximately 1” above the concrete apron allowing water to pass below the frame.
Debris was found in the opening between the steel frame and concrete apron. The
steel frames of the gates located below the water surface contained surface build-up of
algae and vegetation which limited visual inspection. Gate 3 was found to have only an
angle on its edge while the other gates use a steel full channel section. The angle
showed signs of deterioration. Large amounts of debris were observed on the upstream
side of all the gates, below the water surface.
Sluice Gate
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 7 of 15
Timber Walkway
The visible condition of the timber walkway spanning the crest of the weir structure was
observed. The timber walkway is constructed of pressure treated lumber consisted in
2”x6” planks and 2”x4” hand rails and kick plates. A structural steel member associated
with the sluice gates serves as the handrail on the north side of the timber walkway.
Moderate to severe deterioration of the timber walkway was observed. Additionally,
loose and missing portions of the timber railing were observed.
Timber Walkway (looking east)
Upstream Channel Walls
The walls located on the east and west sides of the upstream channel appear to consist
of cast-in-place concrete walls of unknown stem thickness, footing width and footing
thickness. Additionally, it is unknown if the concrete walls contain reinforcement. The
eastern upstream training wall is approximately 44’-6” long and the western upstream
channel wall is approximately 110’-4” long. No undermining was observed during the
underwater inspection at the toe of the upstream channel wall footings, as the footings
were covered below the upstream stream bottom. Since no as-built plans were
provided at the time of the evaluation, the width of the upstream channel walls could not
be determined.
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 8 of 15
Downstream Channel Walls
The walls located on the east and west sides of the downstream channel appear to
consist of cast-in-place concrete walls of unknown stem thickness and footing width.
Additionally, it is unknown if the concrete walls contain reinforcement. The eastern
downstream channel wall is approximately 84’-0” long and the western downstream
channel wall is approximately 79’-0” long. The footings of the walls were measured to
be 16” thick with a 4” shelf from the face of the wall.
The diving evaluation found both downstream training walls to be severely undermined.
The undermining was determined to be a maximum of 24" deep and 24" horizontally
under the footing. According to FHWA-NHI Inspection Criteria, significant scour is
classified as undermining that affects 20% of the length of the footing or area
underneath the footing. Since no as-built plans were provided, we reasonably
estimated a 36" wide footing. Based on this estimate, the undermining is considered
significant. Approximately 42’ of the eastern downstream wall and 34’ of the western
downstream wall were found to be undermined. Existing structural plans were not
available at the time of the evaluation. Therefore, dimensions of the existing structure
not visible during the evaluation are based on our best engineering judgement.
Example of Undermined Bottom of Downstream Channel Wall
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 9 of 15
The eastern downstream wall has six (6) 12" x 60" steel plates, each with two threaded
steel rods anchored into the wall to hold the wall in place. These plates were reportedly
installed after Superstorm Sandy. The wall was noted to be sloping inward, toward the
river, with complete separation at joints or large vertical cracks down to the footing.
Thick vegetation growth was observed to occur at the vertical cracks below the water
surface.
Eastern Downstream Training Wall – Sloping Inward
The west downstream wall contains a steel pipe at the corner of the Intake Structure
that has been undermined. The inspection diver’s report noted that the pipe appears to
have sagged and portions of the base of the pipe cast in concrete have broken off.
There is severe undermining of the west downstream channel wall at the location of the
corner bend. See Figure 3 – Undermining Location Plan for approximate locations of
undermining based on the findings from the diver’s report.
Raw Water Intakes
The two active raw water intakes are protected by screens consisting of vertical bars
and rectangular openings mounted in the upstream channel wall. A temporary floating
silt screen was located in front of the active intakes. Raw Water Intake #1, located the
furthest upstream from the weir structure, was found to have heavy built-up of algae and
silt on the bar screen, below the water surface on the bar screen. Additionally, portions
DOWNSTREAM
CHANNEL WALL (EAST)
DOWNSTREAM
CHANNEL WALL (WEST)
®
INTAKE STRUCTURE EVALUATION
FIGURE 3 - UNDERMINING LOCATION PLAN
SCALE : 1" = 20'
DATE : 11/2019
CITY OF RAHWAY
UNION COUNTY, NEW JERSEY
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 10 of 15
of the vertical bars located above the water surface were found to be deteriorated with
portions of the vertical bars missing as indicated in the photo below.
Bar Screen #1
Raw Water Intake #2 is located adjacent to Intake #1. This bar screen appears to be
constructed of a corrosion resistant material. There was no build-up or corrosion found
on the bar screen.
Bar Screen #2
The third inactive raw water intake is protected by a rectangular opening bar screen. A
steel sheet pile is anchored into the wall to divert debris from flowing into the third raw
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 11 of 15
water intake. Moderate silt build up on the underwater portions of the bar screen and
bottom channel were found. No signs of deterioration of the screen material were found
during the evaluation.
CONCLUSIONS AND RECOMMENDATIONS
Rating Criteria
Our evaluation was performed in accordance with general guidelines for structural
condition assessment of buildings, as published by the American Society of Civil
Engineers. Terms used to generally describe the condition of a building structural
system or component are listed and defined below. When the term is applied to an
overall structure or system, this does not necessarily indicate that all elements of the
building structure or system are in the same condition.
• Excellent “As New” condition.
• Good
The structural system is sound and performing its function, although
it shows signs of wear and may require some minor repairs, mostly
routine.
• Fair
The structural system is still performing adequately at this time, but
needs “priority” and/or “routine” repairs to prevent future deterioration
and to restore it to good condition.
• Poor
The structural system cannot be relied upon to continue to perform its
original function without “immediate” and/or “priority” repairs.
General
The Intake Structure was visually inspected by CME Associates on July 11, 2019. The
Intake Structure is comprised of the following elements: weir structure; four spillway
gates; two active raw water intakes; one inactive raw water intake; timber walkway; and
the upstream and downstream channel walls. The following condition ratings were
assigned to each element of the Intake Structure:
• Weir Structure
-
Fair Condition
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 12 of 15
• Spillway Gates
-
Fair Condition
• Timber Walkway
-
Poor Condition
• Upstream Channel Walls -
Fair condition
• Downstream Channel Walls -
Poor condition
• Raw Water Intake
Intake #1
-
Poor Condition
Intake #2
-
Fair Condition
Intake #3
-
Fair Condition
Based on this, the overall condition of the Intake Structure is Fair with maintenance and
repairs recommended.
Recommended Maintenance and Repair Items
Based on our visual evaluation, we recommend the following maintenance and repair
items be implemented to improve the condition of the Intake Structure:
1. Weir Structure
a. Remove debris from the structure as necessary.
b. Perform repairs to the concrete surface at all concrete cracks and spalls.
c. Replace riprap within the streambed downstream of the concrete spillway.
d. Undermining portions of the upstream apron are to be filled with grout or
concrete material and monitored.
2. Spillway Gates
a. Continue to exercise each spillway gate.
b. Remove large debris from upstream of the gates, below the water surface.
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 13 of 15
c. Due to the significant amount of buildup on frames, prior issues with the gate
operations and frames not being constructed of a corrosion resistant material,
consideration shall be given for replacing the spillway gates with any future
rehabilitation of the weir structure. The new gates shall be constructed of
stainless steel gates and frames. The new gates shall include new electric
actuators located on the walkway. The actuators should allow for operating
each gate through the Plant SCADA System. Repairs to the concrete
channels in which the gates are currently located should also be performed
with the gate replacement.
3. Timber Walkway Improvements
a. It is recommended that the timber walkway be removed and replaced with
expanded aluminum grating with aluminum handrails and kick plates.
4. Upstream Channel Walls
a. Removal of all vegetation along the channel walls.
b. Remove debris from the channel walls as necessary.
c. Perform repairs to the concrete surface at all concrete cracks and spalls.
5. Downstream Channel Walls Repairs
a. Severe undermining was detected by the inspection diver on the east and
west downstream channel walls at a maximum of 2 feet deep and 2 feet into
the footing. Photos of these areas of undermining are included in Attachment
A – Photos 20 to 24 of the Appendix. Additionally the undermined locations
can be viewed in the videos “Upstream – Downstream East Wall Final” and
“Downstream West Wall Final” included in Attachment B. It is due to this
undermining that the Downstream Channel Walls are, in our opinion, in Poor
condition. As per the definitions above, this condition requires “immediate”
and/or “priority” repairs to be performed to the downstream channel walls so
that they can continue to perform their original function. A temporary repair
shall be performed to stabilize the undermined portions of the downstream
wall by installing grout bags in the undermined cavities below the existing
walls. We recommend that these repairs be performed on a “priority” basis.
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 14 of 15
Long term repairs should be considered to provide permanent repair or, if
required, complete replacement of the downstream channel walls. In order to
facilitate permanent repairs, a cofferdam and dewatering system will be
required to provide dry access to properly excavate and replace the
undermined stream bed at areas indicated in Figure 3 with competent soil or
build out the existing footing. Scour countermeasures such as additional
riprap or steel sheeting shall be implemented to prevent future scour and
undermining.
b. The west downstream wall contains a steel pipe at the corner of the Intake
Structure that has been undermined. Additionally the pipes appear to have
sags and portions of the pipe cast in concrete have broken off. There is
severe undermining of the west downstream channel wall at the location of
the corner bend. Based on a review of available site plans for the Water
Treatment Plant, it is believed that the steel pipe is an 18” diameter storm
sewer. Repairs to the pipe should be performed with any permanent repairs
to the channel walls.
c. Remove all vegetation along the channel walls.
d. Remove debris from the channel walls as necessary.
e. Perform repairs to the concrete surface at all concrete cracks and spalls.
6. Raw Water Intakes
a. Remove build-up on Bar Screen #1.
b. Replace the bar screen at Raw Water Intake #1 with a new bar screen
constructed of stainless steel.
c. Consider installation of a permanent structure to direct solids in the Rahway
River away from the intakes.
d. Raw Water Intake #3 is currently inactive. It was reported that the pumping
equipment downstream of the intake is currently not functioning. Future
analysis of the Water Treatment Plant should take into consideration the re-
2019 Intake Structure Evaluation
Report for the Water Treatment Plant
Located in the City of Rahway, Union County
November 2019
Page 15 of 15
activation of this intake to provide redundancy or increase raw water capacity.
Should it be determined that the intake cannot contribute to the Water
Treatment Plant in the future, proper abandonment of the Intake should be
considered.
CLOSURE
In reviewing this report, it should be understood that the reported condition of the Intake
Structure is based on observations of field conditions at the time of the evaluation. It is
important to note that the condition of a structure depends on numerous and constantly
changing internal and external conditions, and is evolutionary in nature. It would be
incorrect to assume that the present condition of a structure will continue to represent
the condition of the structure at some point in the future. Only through continued
maintenance and evaluation can there be any chance that unsafe conditions be
detected.
The conclusions in the report are based on our best professional judgement and
information available at the time of the evaluation. No other warranty is made either
expressed or implied. Any variations in the Intake Structure condition should be brought
to our attention to determine if the conclusions in the report should be re-evaluated or
modified.
ATTACHMENT A
VISUAL EVALUATION PHOTOGRAPHS
FOR THE INTAKE STRUCTURE
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 1 of 13
Photo No.:
Description:
1
View of upstream Rahway River from middle of walkway - facing North.
Photo No.:
Description:
2
View of downstream spillway channel – facing South.
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 2 of 13
Photo No.:
Description:
3
View of western upstream channel wall; plant walkway over two raw
water intakes- facing West.
Photo No.:
Description:
4
View of western upstream channel wall; inactive raw water intake –
facing West. Note the metal sheet diverting flow.
Metal Sheet
Diverting Flow
Intake Bar Screen
#2 (Active)
Intake Bar Screen
#1 (Active)
Traveling Screen
(Typical 2)
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 3 of 13
Photo No.:
Description:
5
View of upstream side of spillway gates from plant walkway – facing
South.
Photo No.:
Description:
6
View of eastern upstream channel wall – facing East.
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 4 of 13
Photo No.:
Description:
7
View across span of walkway over spillway gates – facing East.
Photo No.:
Description:
8
View across span of walkway over spillway gates – facing West.
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 5 of 13
Photo No.:
Description:
9
View of western downstream channel wall – facing Southwest
Photo No.:
Description:
10
View of eastern downstream channel wall – facing East
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 6 of 13
Photo No.:
Description:
11
View of steel plates and failing eastern downstream channel wall –facing
East.
Photo No.:
Description:
12
Typical tapered upstream spillway channel wall at the spillway gates –
facing West.
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 7 of 13
Photo No.:
Description:
13
View of metal sheet pile diverting flow away from inactive raw water
intake – facing East.
Photo No.:
Description:
14
View of shallow water upstream of spillway gates – facing West
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 8 of 13
Photo No.:
Description:
15
View of deeper water downstream of spillway gates – facing Northwest.
Note depth of water in comparison to previous upstream photo.
Photo No.:
Description:
16
View of spillway downstream of spillway gates – facing North.
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 9 of 13
Photo No.:
Description:
17
View of spillway gates crest into spillway from upstream side of dam –
facing Southwest.
Photo No.:
Description:
18
View of typical spillway gate (Gates 1 and 2 shown in photo) – facing
West
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 10 of 13
Photo No.:
Description:
19
View of western upstream channel wall – facing Northwest. Note inactive
raw water intake.
Photo No.:
Description:
20
View of undermined eastern downstream channel wall
Intake 3
(Inactive)
Bottom of
concrete footing
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 11 of 13
Photo No.:
Description:
21
View of undermined eastern downstream channel wall
Photo No.:
Description:
22
View of undermined eastern downstream channel wall
Bottom of
concrete footing
Bottom of
concrete footing
2019 Evaluation Report
Intake Structure Evaluation at Water Treatment Plant
City of Rahway, Union County
October 2019
Attached A - Page 12 of 13
Photo No.:
Description:
23
View of undermined western downstream channel wall
Photo No.:
Description:
24
View of undermined western downstream channel wall
Bottom of
concrete footing
Bottom of
concrete footing
ATTACHMENT B
WATERWARE COMMERCIAL DIVING SURVEY
REPORT AND VIDEO
VIDEO INSPECTION
Of The
Rahway Spillway Dam Structure
For
CME ASSOCIATES
3141 Bordentown Ave.
Parlin, NJ 08859
July 11th, 2019
INSPECTED & PREPARED BY
WATERWARE CORPORATION
2502 EDGEMONT STREET
PHILADELPHIA, PA 19125
PHONE 215.426.5225
Page 2
TABLE OF CONTENTS
Items
Page Numbers
Inspection Summary
3
Inspection Report
4
Page 3
CME ASSOCIATES
Video Inspection of the Rahway Spillway Dam Structure
Introduction
Waterware Corporation was contracted by CME Associates to perform the video inspection of the Rahway
Spillway Dam Structure. The purpose of the inspection was to determine the condition of the underwater structure
in its entirety. The inspection started on the upstream west wall at the end of the plant walking platform. From
this point, the inspection progressed downstream and across the upstream side of the dam gates. It then continued
along the eastern wall from the upper most point upstream to the furthest downstream point. The final part of the
inspection covered the west wall from the corner of the downstream side of the dam structure to the furthest point
downstream. The inspection was performed over the course of one day, Thursday, July 11th, 2019.
Summary of Inspection
The inspection was conducted by scanning each structure at 18” increments. In general, the upstream walls and dam
structure appeared to be in better condition than the downstream side. The upstream west wall (treatment plant side)
was in good condition. There was, however, significant buildup of debris on the currently used bar screens. The old
intake structure was still existent. Just upstream of the old intake structure was a stack of horizontal wood planks
mounted against the wall.
Across the upstream edge of the apron for each gate there was noticeable erosion and portions of missing concrete.
None of the gates were fully closed and sealed. They all had debris wedged between the bottom of the gate and
concrete floor seating surface. Three of the gates had a channel mounted to the bottom of them and one gate had an
angle instead. The leading edges of the channel and the angle exhibited some deterioration. One gate appeared to
have a loose gasket hanging below the bottom edge of the gate.
The upstream east wall (opposite side of treatment plant) appeared to be in good shape. There was one minor crack
that looked to have been previously repaired at some time.
The downstream east wall has the most issues. There were several cracks along the wall that went the entire vertical
length of the wall. Some of the cracks extended down through the footer at the base of the wall. It was evident that
the concrete has shifted significantly with some of the walls jutting out as much as 6”. Most of the major cracks in the
wall had 12” x 60” plates anchored to the wall attempting to hold the walls in position. There was substantial
undermining under a majority of this wall. The most extensive undermining was approximately 2’ below the footer
and extended 18”-24” under the footer. It appeared the footer for the wall did not extend completely to the spillway
as portions of the wall were poured onto rock that was at the river bed.
The downstream west wall had a large section undermined under the steel pipe that was in the corner of the dam
structure. Also, in this location, it appears the concrete pipe has sagged and portions of concrete around the base of
the pipe have broken off. This wall also exhibited cracks that extended through the footer. As with the downstream
east wall, the west wall had substantial undermining below the footer approximately 10” and extending under the
footer up to 24”.
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
VIDEO INSPECTION REPORT
Upstream West Wall
08:22:01
Discolored Concrete
Upstream West Wall
08:32:42
Small Pipes
Protruding from
Concrete
CME ASSOCIATES
1965-1
ITEM
VIDEO/TIME
The west wall upstream dam inspection started on the upstream side of the intake structures
and went downstream to the dam.
Construction Joints
7/11/2019
1 of 8
Upstream Video West Wall
07:55:41, 08:37:36
1st Intake Barscreen
Upstream Video West Wall
08:05:22
There is minor spalling present on the underside of the concrete
walkway around the barscreen opening.
Concrete Spalling
Upstream West Wall
08:41:42
Horizontal
Construction Joint
Sheet Pile
Upstream West Wall
09:03:00
Upstream Video West Wall
08:13:37
2nd Intake Barscreen
Concrete Cracks
Upstream West Wall
08:27:04
Concrete Spalling
Upstream Video West Wall
08:17:50
A horizontal construction joint is visible on the wall that juts out
perpendicular to the walkway. It does have some debris build up
on it, but it does appear to be in good condition.
The corner of the perpendicular wall is protected with sheet pile.
There is heavy algae and debris build up on it and there are some
timbers at the base. The sheet pile is filled inbetween the
backside and the concrete wall. It appears to be in good
condition.
Upstream West Wall
08:58:36, 08:59:36
There is minor concrete spalling present just above the waterline.
This intake barscreen appears to be made up of 3 different
sections. The top section has rectangular openings, the middle
section has vertical bars, and the lower section has rectangular
openings. The vertical bars of the bar screen have significant
build up on them. The lower section appears to be fairly clear
with minimal debris build up.
There is heavy build up on the bars of the intake bar screen.
Some debris is lodged between the slats. The build up on the bar
screen gets heavier as it goes deeper in the water toward the river
bed. The base of the barscreen is approximately 1 foot of of the
river bed. Just above the water line, sections of the bars of the
barscreen have deteriorated away.
West Wall Upstream of Dam Structure
CONDITION
Construction joints are visible througout the wall. They appear to
be in good shape with minimal build up on them.
Rahway Spillway Dam Structure
There are minor cracks in the concrete that extend all the way
through the walkway around the opening of the 2nd barscreen.
There appears to be some sort of vent structure coming from
inside the building that may have water drainage coming off of it.
This is draining on the concrete and seeping all the way through
to the underside and down the wall of the concrete.
There are two pipes coming out of the concrete wall just above
the water line. One pipe extends approximately 5 ft below the
waterline. It is a small diameter perforated pipe and has some
debris build up on it. The second small diameter pipe extends 4 ft
below the water line and does not appear to be perforated.
Page 4
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
Upstream West Wall
09:20:20
There are some timbers piled up in front of the old intake
structure. This structure sits on the river bed and portions extend
just below the river bed.
Old Intake Structure
ITEM
Upstream West Wall
09:08:42
Upstream West Wall
09:14:15
Steel Angle
An angle is bolted onto the wall. It extends down through the
water and stops just short of the concrete base. It has some
debris build up on it.
A vertical board mounted against the concrete wall starts at the
river bed and protrudes out of the water. There appears to be 3"-
4" of washout into the wall, just above the board and below the
concrete.
Upstream West Wall
09:18:15
VIDEO/TIME
CONDITION
Diversion Plate
West Wall Upstream of Dam Structure
2 of 8
Wooden Planking
Wooden Plank/
Wash-Out
Upstream West Wall
09:17:23
The diversion plate on the west wall has some wear along its
upstream edge. There is some debris build up on it. The bottom
edge of the plate appears to be deteriorating away.
Deteriorated Plate
Structure
Upstream West Wall
09:15:34
This appears to be a deteriorating plate structure. The angle
bolted on the wall has some corrosion and it is seated on a
concrete ledge.
At the downstream end of the diversion plate horizontal wooden
planking starts. It has gaps between several of the boards and
some plant growth growing out from inbetween them.
Concrete Repair
Upstream West Wall
09:21:40
It appears there has been some concrete repair above the bar
screen, at the first channel of the old intake structure.
Old Intake Structure
Frame
Upstream West Wall
09:23:07
The downstream frame channel of the downstream frame is
pulled off the wall approximately 1-1/2".
Cold Joint
Upstream West Wall
09:24:53
There is a visible horizontal joint along the wall downstream of the
old intake structure extending to the corner of the dam.
VIDEO INSPECTION REPORT
CME ASSOCIATES
1965-1
7/11/2019
Rahway Spillway Dam Structure
Page 5
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
The dam structure inspection started at the first gate on the west side of the river (the side the treatment plant is on).
Third Gate
Gate Bottom Channel
Dam Structure
09:55:50
VIDEO INSPECTION REPORT
CME ASSOCIATES
1965-1
7/11/2019
ITEM
VIDEO/TIME
CONDITION
Debris Under Gate
Dam Structure
09:51:45, 09:53:40
Dam Structure
3 of 8
This starts the inspection of the second gate from the west side of
the river.
Visible Joint, First
Gate
Concrete Apron of
First Gate
Dam Structure
09:58:35
Dam Structure
10:03:14
This is the joint between the tapered apron and the flat concrete
section of the first gate.
The bottom of the first gate appears to have a channel attached to
it. The top edge of the channel is jagged and has deteriorated.
The upstream edge of the second gate apron appears to be in
good condition. There are 2 cutouts along the leading edge.
There is also heavy algae and plant growth on the apron floor.
Gate Bottom Channel
Dam Structure
10:09:10
There is a channel attached to the bottom of the second gate.
The top edge of the channel has some deterioration.
There is debris wedged between the bottom of the gate and the
floor preventing the first gate from fully closing.
Rahway Spillway Dam Structure
Debris Under Gate
Dam Structure
10:11:15
There is visible debris wedged under the gate preventing it from
fully closing. There is also debris in front of the gate.
Large Gap
Dam Structure
10:08:35
There is a large gap between the bottom of the gate and the floor.
This shows the upstream edge of the concrete apron at the first
gate. There is minimal debris and rocks built up in front of the
apron. There are also small sections of the apron edge that
appear to have broken and are missing.
Second Gate
Dam Structure
10:05:35
Dam Structure
10:19:31
This starts the inspection of the third gate. It appears the
upstream apron does not extend beyond the wing wall as far as
the second gate.
Gap Under Gate/
Gate Bottom Angle
Dam Structure
10:22:56
The third gate has a gap between the bottom of the gate and the
concrete floor. One side of the gate has more of a gap between
the bottom edge and the floor than the other. The bottom edge of
this gate is an angle, not a channel like gates one and two. The
bottom edge of the angle has some deterioration and has at least
one spot that is bent.
Concrete Apron of
Second Gate
Dam Structure
10:13:58
Gate Gasket
Dam Structure
10:24:08
There appears to be a gasket between the angle and the gate that
is either sagging or falling off.
Debris Under Gate
Dam Structure
10:25:25
Debris is stuck under the gate possibly preventing it from fully
closing.
Concrete Apron of the
Third Gate
Dam Structure
10:27:45
This is the upstream edge of the third gates apron. The leading
edge of the apron has large sections of concrete missing. In the
center of this apron is the largest missing piece. There is erosion
through 2/3's of the apron.
Page 6
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
Rahway Spillway Dam Structure
Dam Structure
4 of 8
ITEM
VIDEO/TIME
CONDITION
This starts the inspection of the fourth gate. There is heavy algae
and plant growth throughout this gate especially along the east
wall along the bank.
Missing Material at
Joint
Dam Structure
10:38:37
The joint between the tapered apron and the flat conrete has
material missing and could use repair. Gate has some build up of
debris in the corners.
CME ASSOCIATES
1965-1
7/11/2019
Dam Structure
10:36:24
VIDEO INSPECTION REPORT
Fourth Gate
Gate Bottom Channel
Dam Structure
10:40:35
Similar to gates one and two, the fourth gate has a channel
attached to the bottom of it. There is debris wedged under this
gate that appears to be preventing it from fully closing.
Concrete Apron of the
Fourth Gate
Dam Structure
10:44:00
This is the upstream edge of the apron of the fourth gate. It is
overgown with plants and algae as well as having a lot of debris in
front of it. The front edge of the apron has some erosion and
concrete missing.
Missing Material at
Joint
Dam Structure
10:48:42
There is erosion that has occurred between the tapered apron
and the flat concrete.
Page 7
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
VIDEO INSPECTION REPORT
CME ASSOCIATES
1965-1
East Wall Upstream of Dam Structure
5 of 8
Vegetation
Upstream Downstream East Wall
11:00:15
There is a significant amount of vegetation and algae making it
difficult to view the integrity of the concrete wall structure.
ITEM
VIDEO/TIME
CONDITION
7/11/2019
Rahway Spillway Dam Structure
The east wall upstream inspection started at the farthest point on the wall upstream of the dam (opposite side of the
treatment plant), and went downstream towards the dam structure.
Start of Concrete Wall Upstream Downstream East Wall
10:57:41
This shows the concrete wall starting point that extends into the
soil at ground level.
Crack in the Wall
Upstream Downstream East Wall
10:58:35
There is a small crack in the wall. It appears there was an
attempt to repair this crack at one time. It extends below the
water line.
Page 8
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
East Wall Downstream of Dam Structure
6 of 8
ITEM
7/11/2019
Rahway Spillway Dam Structure
CME ASSOCIATES
1965-1
VIDEO INSPECTION REPORT
VIDEO/TIME
CONDITION
The downstream inspection of the east wall starts at the farthest downstream point of the wall and heads upstream toward
the dam structure. This portion of the wall has several plates, approximately 12" x 60", anchoring the walls together.
Start of Concrete Wall Upstream Downstream East Wall
11:05:51
This shows the location of the starting point for this portion of the
inspection.
Washout Under
Concrete
Upstream Downstream East Wall
11:06:42
There is some washout under the concrete at the very end of the
wall.
Crack in the Wall
Upstream Downstream East Wall
11:08:54
There is a crack in the wall that extends to the river bed. It has a
lot of roots growing through it. It appears to have been partially
filled with concrete as a patch. At the crack, the concrete wall has
shifted 6". There is a steel binding plate bridging the crack.
Crack in the Wall
Upstream Downstream East Wall
11:17:48
This crack in the wall appears to be a joint that is starting to
separate. There is a steel binding plate bridging the crack.
Crack in the Wall
Upstream Downstream East Wall
11:20:43
There is a crack in the wall that starts in the footer. It does not
extend to the top of the wall.
Undermining
Upstream Downstream East Wall
11:21:38
There is undermining under the footer of the wall. It is
approximately 6" deep and extends under the wall 1'. It is filled
with debris.
Crack in the Wall
Upstream Downstream East Wall
11:22:50
There is a crack in the wall that goes from the top of the wall all
the way through the footer. There is another plate bridging this
crack.
Undermining
Upstream Downstream East Wall
11:24:37
The undermining continues. In this location it extends more than
1' under the footer.
Undermining
Upstream Downstream East Wall
11:41:18
The undermining in this location is significant. It is approximately
1' deep and extends under the footer approximately 2'.
Pipe Under the Footer Upstream Downstream East Wall
11:42:05
There is a small diameter pipe that travels from under the footer
upstream towards the center of the river. There is undermining.
Crack in the Wall
Upstream Downstream East Wall
11:43:00
There is a large crack in the footer which extends all the way to
the top of the concrete wall and multiple cracks branching off.
The cracks range up to a few inches of separation. This is at the
downstream edge of the 4th plate. It appears the wall has split
around an old drainage pipe. The undermining continues.
Crack in the Wall
Upstream Downstream East Wall
11:47:21
There is a crack in the center of the 5th steel plate. This crack
extends through the footer of the wall. There are multiple cracks
in this location and a large void where the concrete wall has
shifted. It appears there was an attempt to patch this location, but
the wall has shifted since then.
Page 9
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
Rahway Spillway Dam Structure
East Wall Downstream of Dam Structure
7 of 8
ITEM
VIDEO/TIME
CONDITION
Undermining
Upstream Downstream East Wall
11:50:50
The undermining at this point is significant. It is approximately 2'
deep and extends under the footer 18" to 24".
VIDEO INSPECTION REPORT
CME ASSOCIATES
1965-1
7/11/2019
Crack in the Wall
Upstream Downstream East Wall
11:53:30
There is a crack in the middle of the 6th steel plate. It does not
appear to penetrate the footer. Undermining is still significant at
2' deep and extending 18"-24" under the footer.
Crack in the Wall
Upstream Downstream East Wall
11:56:10, 11:58:14
There is a large broken off piece of concrete at the end of the
wall. Accompanying this is a large crack between the two wall
sections. This crack/joint extends down through the footer.
It appears that either a part of the footer or concrete wall is broken
apart near the bottom of the wall. The undermining continues.
Wall Poured into the
Rocks
Upstream Downstream East Wall
11:58:54
It does not appear the footer is extending through this section.
The wall looks to have been poured on to the rocks on the river
bed.
Undermining
Upstream Downstream East Wall
12:03:20
The undermining continues. This location is approximately 6'
downstream of the spillway.
Page 10
Customer:
Job Number:
Date Inspected:
Item Inspected:
Location Inspected:
Page:
ITEM
VIDEO/TIME
CONDITION
1965-1
Undermining
Downstream West Wall
12:38:50
There is significant undermining around the steel pipe at the
corner of the dam structure. It is aproximately 3' x 3' and extends
under 18".
The downstream inspection of the west wall starts at the downstream corner of the dam and travels downstream to the end
of the wall (On treatment plant side of the river).
Missing Concrete
Downstream West Wall
12:41:00
It appears the concrete pipe has sagged and there are portions of
concrete that are broken and missing.
Rocks Cast in to
Concrete
Downstream West Wall
12:46:09
Just downstream of the second drain pipe there are large rocks
that appear to have been cast in to the concrete floor.
Crack in the Wall
Downstream West Wall
12:49:48
One foot downstream of the fourth drain pipe is a crack in
between two sections of wall. The crack has opened up to 1"
wide
Footer Visible
Downstream West Wall
12:51:00
Approximately 30" downstream of the fourth drain pipe the
foundation wall becomes visible.
Undermining
Downstream West Wall
12:53:15
The undermining of the west wall becomes apparent at
approximately 3' downstream of the spillway.
Undermining
Downstream West Wall
12:54:56
Under the 5th drain, undermining continues. It is approximately
6"-8" deep and extends 18"-24" under the footer.
Undermining
Downstream West Wall
13:18:31
Undermining under the footer of the wall increases to 10" deep 2'
downstream of the fifth drain pipe.
Undermining
Downstream West Wall
13:21:00
The undermining continues under the footer.
Crack in the Wall
Downstream West Wall
13:26:28
Four feet downstream of the sixth drain pipe is a crack that
extends from the top of the wall through the footer. The
undermining continues.
Crack in the Wall
Downstream West Wall
13:32:30
There is a small horizontal crack on the wall, just above the
footer.
Crack in the Wall
Downstream West Wall
13:39:21
At the ninth and tenth drain pipe, there is a crack that extends
from the top of the wall down through the footer. There is slight
build up along this crack under water.
Undermining
Downstream West Wall
13:41:30
The undermining becomes less apparent and starts tapering
down at approximately 2' downstream of the ninth and tenth drain
pipe.
Undermining Stops
Downstream West Wall
13:43:03
Under the eleventh drain pipe, the footer goes into the river bed
and the undermining has stopped.
Footer Under River
Bed
Downstream West Wall
13:44:05
Two feet downstream of the eleventh drain pipe, the footer is fully
submerged under the river bed.
VIDEO INSPECTION REPORT
CME ASSOCIATES
7/11/2019
Rahway Spillway Dam Structure
West Wall Downstream of Dam Structure
8 of 8
Page 11
Advanced Solutions
Joe Jasinski
Water System Consultant
908-797-9559
Joseph.Jasinski@Suez.com
Hart Street 1.5MG Elevated Tank
Condition Assessment Report – Draft
Rahway, NJ
Prepared By:
Bryan Morrow
NACE Level III Cert #9135
Region Inspection Manager
Bryan.morrow@suez.com
Assessment Performed: 1/16/2020
2
Rahway, NJ Hart St 1.5MG Elevated Tank Inspection 1/16/2020
TANK DATA
TANK NAME:
Hart Street
TANK DESIGN:
Elevated
CONSTRUCTION TYPE:
Welded Steel
LOCATION:
1660 Edgewood Street
CITY:
Rahway
STATE:
NJ
CAPACITY:
1,500,000 Gallon
HEIGHT:
110’ Balcony
87’ LWL
DIAMETER:
94’
estimated
BUILDER:
NR
YEAR:
1972
CONTRACT #
NR
EXT. COATING:
Alkyd
LEAD:
109,000
mg/kg
CHROMIUM:
6,660 mg/kg
INT COATING:
INT DRY COATING:
Epoxy
Alkyd
LEAD:
302 mg/kg
120 ug/g
CHROMIUM:
209 mg/kg
<30 ug/g
INSPECTOR(S):
Bryan Morrow
DATE:
1/16/2020
SUMMARY
SUEZ –Advanced Solutions (SUEZ-AS) conducted a visual inspection of the Hart Street Tank.
The purpose of the inspection was to determine the condition of the structure, coatings,
sanitary, safety & security conditions and compliance of the applicable state and federal
requirements.
EXTERIOR
Condition
The exterior coatings have extensive failures throughout in the form of weathering degradation
exposing underlying coats & susbtrate, areas of corrosion, areas of delaminating coatings. The
remaining top coat is extensively faded & chalked.
Recommendation
Abrasive blast clean all surfaces to an SSPC-SP6 commercial blast cleanliness standard
followed by the application of a zinc/epoxy/acrylic polyurethane coating system.
All antennas, mounts & coaxial must be removed in order to perform the above rehabilitation.
Consideration should be given to installing all coaxial on proper messenger pipes, cluster
brackets & stands that give at least 8” of clearance from the tank surfaces. Currently, the
handrail/balcony area is overloaded with the antenna equipment, a roof corral system should
be installed to mount all antenna to. Install a coaxial bridge around the balcony to the shell
wall leaving at least 7’ of headroom clearance above the balcony floor. Any connections to the
tank should be seal welded. Proper install design would reduce the need of powering down or
removing equipment to perform the regular tank maintenance.
INTERIOR
Interior water chamber
Condition
3
Rahway, NJ Hart St 1.5MG Elevated Tank Inspection 1/16/2020
The water chamber coatings are no longer soundly protecting the underlying substrate. There
are numerous areas of moderate to aggressive corrosion present especially throughout the
roof & roof structure areas.
Recommendation
Abrasive blast clean all interior surfaces to an SSPC-SP10 near white metal cleanliness
standard followed by the application of zinc rich urethane primer, stripe coat all seams, edges
& apparatus with a high build epoxy then, apply a full coat of 100% solids epoxy that meets
NSF-61 & AWWA D102 requirements.
Remove the outdated cathodic protection system and pursue active tank maintenance instead.
Interior dry area
Condition
There are numerous areas of coating failures in the form of delamination throughout the dry
interior. Adhesion testing performed reveals poor adhesion qualities to the prime coat.
Recommendation
Abrasive blast clean all surfaces to an SSPC-SP6 commercial blast cleanliness standards
followed by the application of a zinc/epoxy coating system. A stripe coat to all weld seams,
edges, bolts & apparatus must be applied before the epoxy finish coat is applied.
Before the abrasive blast cleaning & coating is started, remove insulation from the inlet pipe,
protect any electrical/control boxes, light fixtures & other apparatus.
Complete all welding repairs prior to abrasive blast cleaning and coating.
STRUCTURAL
There are 3 areas on the roof rafters have severe corrosion degradation and are missing areas
of the flanges. These areas at the very least must be repaired. The rest of the roof rafters
appear to have moderate to severe corrosion degradation along the flanges. Once the tank is
rigged for renovation, all rafters must be thoroughly inspected to determine extent of steel loss
so a determination if any further repairs should be done.
The access tube stops 7’ short of the roof & is held in place from suspension angle brackets.
2 of the 3 suspension brackets are no longer connected to the roof & access tube. See below
under sanitary recommendations & conditions for solution.
SANITARY
Since the access tube does not go completely to the roof, leaving it open to the water chamber,
if the lower door is left open birds can/will fly up the riser through the access tube & into the
water chamber. Also, with the antennas on the tank, communications workers climb through
this area giving them opened unsecure access to the water chamber. These 2 items bring to
light substantial sanitary issues in the design of this tank. Recommend to remove the 3’
diameter access tube altogether. Install a 36” blank out plate where the opening in the floor is
for the access tube by 100% full penetration weld. The plate to blank this area out should
match the existing steel thickness of the bottom of the bowl.
Replace the screened termination on the 8 ½” OD overflow with a screened flapper
combination that meets current sanitary requirements.
4
Rahway, NJ Hart St 1.5MG Elevated Tank Inspection 1/16/2020
The existing roof vent has an open hole where a bolt is missing. The top also does not prevent
wind driven rain from entering the water chamber. Replace the existing 24” roof vent with a
30” freeze proof design vent assembly that meets current sanitary requirements.
Plate weld over (23) cathodic protection hand hole openings in the roof.
Replace the insulation & frost jacket on the 24” diameter inlet pipe in the dry riser area (approx.
95’)
The tank should be removed from service at least every 5 years and all sediment cleaned out,
disinfected then returned to service.
Recommend installing an active mixing system in the tank to prevent thermal stratification,
keep consistent chlorine residual throughout & help prevent winter icing.
SAFETY & SECURITY
Install a 24” bolted shell man way at the balcony level for safe interior access
Install a fixed ladder from the new above-mentioned balcony shell man way to the interior floor.
Replace the existing 18” bowl man way on the floor/top of the dry riser with a 24” clamp style
man way.
Extend the balcony handrail to 42” high & add a mid-rail so it complies with current OSHA
requirements.
Remove the extended neck opening that was cut in the balcony floor (
Install 100’ of access ladder going up the exterior leg to the balcony – to replace access to the
top of the tank instead of access being done through the dry interior.
Install a lockable 8’ aluminum ladder door at the bottom of the new leg ladder.
Install a flexible cable safety climb device on the 87’ interior dry riser ladder & one on the new
above mentioned 100’ leg ladder.
Remove the ladder cage from the interior dry riser ladder.
Weld the riser ladder connection est. 20’ from ground.
Remove the curb around the 9x14” opening that was cut in the balcony floor for an old coaxial
penetration & plate weld over this area to close it off. Plate weld over any other coaxial
penetrations through the balcony floor.
Plate weld over (12) 3” holes that were cut in the balcony floor between the legs.
Install a welded lock hasp on the roof hatch leading to the water chamber, remove the pivot
bar device & plate weld over the small opening.
Remove the handrail from roof ladder & the cage from the shell ladder.
There are at least (3) steel pipe posts that were cut off about 1 ½” above grade that are trip &
laceration hazards on the ground beneath the tank. These should be dug up and removed or
at the very least cut below grade.
There is a power pole with an insulated overhead power line 20’ from the leg, approx. 30’ from
the leg is an overhead uninsulated power line set.
WATER STORAGE TANK INSPECTION REPORT
Advanced Solutions
Bryan Morrow
NACE Level III Cert #9135
Region Inspection Manager
Bryan.Morrow@Suez.com
Date: 1/16/2020
Project:
Task:
Tank Name: Hart Street
Location: 1660 Edgewood Street
City: Rahway
State: NJ
Capacity: 1,500,000 gallons
Tank Type: Elevated
Construction: Welded Steel
Tank ID Plate: No
HWL: 110' balcony
LWL: 87'
Diameter: 94' bowl est
Yr Built: 1972
By: NR
Contract: NR
Exterior Roof Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Roof
Coating visual assessment? (G/F/P)
Poor
Coating Type: Alkyd DFT: 6.0
All the roof coatings are experiencing extensive weathering degradation which
is exposing underlying coats & the substrate.
Coating
Actionable checking / delamination?
Yes
Actionable corrosion / deterioration?
No
Is there any graffiti paint or etchings?
No
Coating adhesion assessment? (G/F/P)
NR
Does soiling impact visual appearance?
Yes
Will antenna equipment impact recoat?
No
Roof
Structural visual assessment? (G/F/P)
Good
The exterior roof structure appears to be in good condition.
Structure
Are all plate seams sealed?
Yes
Significant pitting or metal loss visible?
No
Rigging holes / access ports sealed?
Yes
Other unsealed penetrations present?
No
Is the roof perimeter watertight?
Yes
Roof Vent
Design meets state standards?
No
Finial Stub OD: 24"
The roof vent top does not prevent wind driven rain from entering the water
chamber. There is a missing bolt @ the bottom of the screen that is leaving an
opening to the water chamber.
Screen intact?
Yes
Vacuum pallet functional?
NA
Unsealed penetrations present?
Yes
Roof
At least two hatches to WC present?
No
There is a single 24" round hinged lid roof hatch that is held closed by a pivot
bar style retainer from the interior side.
Access
Primary meets state standards?
Yes
Additional meet state standards?
NA
All roof access points secured?
No
Antenna equipment affects roof entry?
No
Roof
Is there a roof ladder / stair present?
Yes
There are no fall arrest systems in place for the roof. There is a handrail that is
welded to the side rails of the roof ladder, this is leaving a tight acces up the
roof ladder.
Safety
Is there a guardrail system present?
Yes
Required fall arrest system present?
NA
Are the roof FAA lights operational?
NA
Exterior Shell, Bowl & Riser Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Shell
Coating visual assessment? (G/F/P)
Poor
Coating Type: Alkyd DFT: 6.7
The shell coatings are faded, chalked, weather degrated to underlying coats &
the substrate w/ corrosion present.
Logos are wearing through to the underlying coats.
There are corrosion areas present along the balcony handrail & floor.
Bowl has mildew/dirt buildup present along with the coatings that are faded &
chalked.
Riser coatings are faded, chalked & have areas weathering to underlying coats
& substrate.
Coating
Actionable checking / delamination?
Yes
Actionable corrosion / deterioration?
Yes
Logo visual assessment? (G/F/P)
Poor
Is there any graffiti paint or etchings?
No
Coating adhesion assessment? (G/F/P)
NR
Balcony visual assessment? (G/F/P)
Poor
Bowl coating assessment? (G/F/P)
Poor
Riser coating assessment? (G/F/P)
Poor
The balcony handrail is overloaded w/ antennas & coaxial mounted to it which
is restricting safe access & compromising the tank structure.
Does soiling impact visual appearance?
Yes
Will antenna equipment impact recoat?
Yes
Shell
Structural visual assessment? (G/F/P)
Good
The shell, bowl & riser structure all appear to be in good overall condition.
Structure
Are all plate seams sealed?
Yes
Significant pitting or metal loss visible?
No
Unsealed penetrations present?
No
Riser base plate condition? (G/F/P)
Fair
Any active leakage observed?
No
Riser
Structural visual assessment? (G/F/P)
Good
The riser foundation is in good overall condition.
Foundation
Riser anchor bolts in sound condition?
Yes
Grout or sealer in sound condition?
Yes
Does grade promote good drainage?
Yes
Failure or undermining of foundation?
No
Shell
At least two manholes present?
No
There is one 18" round clamp style bowl man way present in the bottom of the
bowl/top of the dry riser.
There are some areas of water retention along the balcony floor which is
causing accelerated corrosion.
Access
Primary meets state standards?
No
Additional meet state standards?
NA
Structural damage / leakage visible?
No
Balcony structural damage / failure?
No
Water retention evident along balcony?
Yes
Shell
Balcony handrail meets standards?
No
Balcony Handrail Hght: 36" Safety Climb Type:
There is a shell ladder present that has a cage installed to it.
Safety
Water retention on balcony walkway?
Yes
Required shell ladder present?
Yes
Required safety climb system present?
No
Is shell ladder equipped with a cage?
Yes
Are there rest platforms present?
No
Actionable corrosion / deterioration?
No
Crossover platform handrails sound?
NA
Do antennas / cables impact climbing?
Yes
Overflow
Extends to near ground level?
Yes
Pipe OD: 8 1/2"
The overflow system was found to be in good overall condition. The
termination has a wide meshed flanged screen above a concrete splash pad.
External weir box sealed / secured?
NA
Actionable corrosion / deterioration?
No
Unsealed penetrations present?
No
Required air gap present?
Yes
Screen is intact or was replaced?
Yes
Flapper is functional or was replaced?
NA
Drain, spillway or rip-rap present?
Yes
Support Structure Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Support
Column / strut coatings? (G/F/P)
Poor
Coating Type: Alkyd DFT: 8.9
The support structure coatings are faded, chalked, weathering to underlying
coats as well as the substrate & there are areas of corrosion present
throughout.
Structure
Actionable checking / delamination?
Yes
Coatings
Actionable corrosion / deterioration?
Yes
Support rod conditions? (G/F/P)
Poor
Support
Column / strut visual condition? (G/F/P)
Good
Column Type: Tubular
The windage X rods are in good condition overall structurally & in adjustment.
The top set of riser radial rods are sagging about 10".
Structure
Are sway / radial rods taught?
No
Sway / radial rod connections secure?
Yes
Column
Column shoe / base conditions? (G/F/P)
Fair
The column footings are in good structural condition however, there are areas
of corrosion present.
Footings
Actionable corrosion / deterioration?
Yes
Failure or undermining of footings?
No
Grout or sealer in sound condition?
Yes
Does grade promote good drainage?
Yes
Support
Actionable corrosion on column ladder?
NA
Safety Climb Type: NA
There is currently no support structure ladder in place.
Structure
Required safety climb system present?
NA
Safety
Is ladder equipped with cage / platform?
NA
Functional security gate present?
NA
Do antennas / cables impact climbing?
NA
Interior Roof Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Roof
Coating visual assessment? (G/F/P)
Poor
Coating Type: Epoxy DFT: 19.5
The roof & roof structure coatings have numerous failures w/ moderate to
extensive corrosion present especially along the rafter flanges & roof plates.
Coating
Actionable blistering / delamination?
Yes
Actionable corrosion / deterioration?
Yes
Coating adhesion assessment? (G/F/P)
NA
Rafter visual assessment? (G/F/P)
Poor
Roof to shell junction? (G/F/P)
Poor
Roof
Structural visual assessment? (G/F/P)
Poor
The internal roof structure is questionable in areas. There are 3 areas of the
rafter flanges missing large areas of steel from corrosion degradation along
where the access tube suspension rods were attached at one point. There is
also moderate to extensive pitting/steel loss visible along the rest of the rafters.
The bolted connections of the rafters to the center compression ring are not
intact at all.
Structure
Are all plate seams sealed?
Yes
Significant metal loss on plates visible?
No
Significant metal loss on rafters visible?
Yes
Roof bolted connections sound?
No
Light leaks visible from the interior?
No
Interior Shell & Bowl Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Shell &
Coating visual assessment? (G/F/P)
Fair
Coating Type: Epoxy DFT: NR
The shell/bowl coatings were not completely visible during this visual
inspection however, what was visible appeared to be fair condition overall.
Bowl
Actionable blistering / delamination?
No
Coatings
Actionable corrosion / deterioration?
No
Coating adhesion assessment? (G/F/P)
NR
Shell &
Structural visual assessment? (G/F/P)
NR
The shell/bowl structure could not be assessed during this visual in service
inspection.
Bowl
Are all plate seams sealed?
NR
Structure
Significant pitting or metal loss visible?
NA
Bowl plate assessment? (G/F/P)
NR
Riser transition in sound condition?
NR
Safety bars or grate present over riser?
NA
Shell
Is an interior shell ladder present?
Yes
Safety Climb Type: NA
The ladder leading from the roof hatch goes into the access tube that is 7'
short of the ceiling. This ladder was recently replaced and a flexible cable
safety climb device was installed on it.
Safety
Required safety climb system present?
Yes
Actionable corrosion / deterioration?
No
Internal balcony or platform present?
No
Water
Water quality visually acceptable?
Yes
The center of the floor is covered in a layor of sediment. There is a roof
hanging style cathodic protection system in place however, functionality was
not tested.
Quality
Significant staining or biofilm present?
No
Significant floor sediment present?
Yes
Is there a mixing system present?
No
Is there a cathodics system present?
Yes
Is there a level indicator present?
No
Interior Riser Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Riser
Is the tank equipped with a dry riser?
Yes
Riser OD: 10'
9.6 mil average. Dry interior is Alkyd coating.
Large areas of coating delaminating throughout the dry riser.
Coating visual assessment? (G/F/P)
Poor
Actionable corrosion / deterioration?
No
Structural visual assessment? (G/F/P)
Good
Riser
Is an interior riser ladder present?
Yes
Safety Climb Type:
The riser is a dry interior. There is a ladder cage installed. Approx. 20' above
grade there is a ladder connection that is not fully welded.
Safety
Required safety climb system present?
No
Actionable corrosion / deterioration?
No
Is the riser equipped with a floor drain?
NA
Site Conditions: All questions are Yes / No / NA / NR unless listed (G/F/P) for Good / Fair / Poor / NA / NR
Tank Area
Item of Concern
Status
Comments
Site
Is site equipped with a security fence?
Yes
The site is tight w/ 2 communications buildings within the drip line of the tank
along w/ a concrete pad w/ communications equipment under the tank. There
are a few pipes that were cut off 1 1/2" above grade that are trip/laceration
hazards under the tank. There is a power pole w/ an overhead insulated
powerline 20' from leg. The site fence gate has a large gap between the gates
when closed that can simply be stepped through.
Any signs of damage to the fence?
Yes
Are fence gates secured with locks?
Yes
Is a vault or pump house present?
Yes
Sample tap onsite?
NR
Is there telemetry / SCADA onsite?
NR
Is there non-tank pooling water onsite?
No
Is there electrical service onsite?
Yes
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Tank overview
Tank overview
Tank overview
Roof overview
Roof overview
Roof overview
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Roof overview
Roof overview
Cathodic protection hand holes w/ cover plates on roof
24" roof vent does not comply w/ current sanitary requirements
Hole where bolt is missing leaving an opening to the water chamber
Extensive corrosion & coating delaminating inside the vent neck
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Roof/dome access ladder
Roof ladder has rails installed on either side going down to caged ladder
Roof ladder has rails installed on either side going down to caged ladder
Shell/balcony overview
Shell coatings are wearing through to underlying coats & substrate
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Shell coatings are wearing through to underlying coats & substrate
Logos are wearing through
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
Due to antenna equipment, it is not safely passable on balcony around
overflow
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Balcony handrail does not meet current OSHA requirements of 42" high
top rail
14 1/2 x 9" opening in balcony floor
3" diameter holes were cut at one point between each set of legs all the
way around the balcony
Trash & debris from antenna workers
Trash & debris from antenna workers
Trash & debris from antenna workers
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Trash & debris from antenna workers
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
Coaxial laying on the balcony floor
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
Balcony handrail overloaded from antennas & coax, coaxial laying on
balcony in areas
Bowl/riser/support structure overview
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Bowl/riser/support structure overview
Bowl/riser/support structure overview
Bowl/riser/support structure overview
Bowl/riser/support structure overview
Bowl/riser/support structure overview
Bowl/riser/support structure overview
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Bowl/riser/support structure overview
Support structure overview
Support structure overview
Riser bottom
Riser bottom
Riser anchor bolts
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Moderate corrosion along the leg
Moderate corrosion along the leg
Coaxial attached to multiple legs
Coaxial attached to multiple legs
Coaxial attached to multiple legs
Coaxial attached to multiple legs
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Windage rods skip a leg between connections
Overhead insulated powerline 20' from the leg
Overhead insulated powerline 20' from the leg
2 communications buildings under the drip line of the tank
2 communications buildings under the drip line of the tank
2 communications buildings under the drip line of the tank
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Communications equipment on pad under tank
8 1/2" OD flanged screen overflow termination
8 1/2" OD flanged screen overflow termination
Overflow weir box
Extensive corrosion on the roof center
Areas of blistered coating w/ corrosion present
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Large piece of rafter flange missing from corrosion degradation
Extensive corrosion degradation along roof rafters
Connections to the compression ring are not sound
Extensive corrosion degradation along roof rafters
Extensive corrosion degradation along roof rafter & compression ring
Extensive corrosion degradation along roof rafters
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Extensive corrosion degradation along roof rafters
Extensive corrosion degradation along roof rafters
Suspension brace connection point on the roof, brace no longer
connected, hanging from access tube
Only 1 acces tube suspension brace is still attached out of the 3
Only 1 acces tube suspension brace is still attached out of the 3
Only 1 acces tube suspension brace is still attached out of the 3
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Access tube suspension brace no longer connected
Interior overview
Interior overview
Interior overview
Interior ladder
Bottom of dry riser
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Sample tap on inlet in bottom of riser
Electrical boxes in bottom of riser
Electrical boxes in bottom of riser
Insulated inlet pipe, frost jacket falling off in areas
Caged access ladder in dry riser
Coatings delaminating throughout the riser
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
No safety climb device installed on riser ladder
Dry riser overview
Dry riser overview
Coatings delaminating throughout the riser
Ladder connection not completely welded
Ladder connection not completely welded
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Graffiti in the form of rubbing through the dirt buildup from antenna workers
18" clamp style bowl man way does not meet current confined space
requirements
Top of riser rigging access hatch
Access tube overview
1a poor adhesion throughout dry access tube
Dry access tube ends 7' below the roof & is open to the water chamber
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Site overview
Site overview
Site overview
Site overview
Remains of old posts cut off under tank are a trip & laceration hazard
Remains of old posts cut off under tank are a trip & laceration hazard
SUEZ-Advanced Solutions
Rahway, NJ Hart St 1.5MG Elevated Inspection 1/16/2020
Site entrance
Site gate
Site gate
SUEU
* Date:
*City or County:
*State:
Customer:
Tank Name:
Tank Size/Type:
SUEZ Sample #:
*Submitted By:
Employee Dept. #:
Sales Department
Paint Chip ldentification Request
1/16/202A
Rahway
NI
SUEZ Rahway, Nl
Hdrt Street
7.5MG/Elevated
BM-7/76/2020
Bryan Morrow
254
lB- lqql-7''l
w
ffi
,*owtu-WiLuAffis"
(x) Denotes Required lnformation for proper identification by Analytical Lab
To: Mr. E Lynn Shirey ll
Shirey Analytical Services, LLC
1028 Hercules Avenue
Houston, TX77O58
Phone: Z8t-352-6357
1.
lnterior Sample
Sample Location: (ie.: Roof, Sidewall, Floor) N/A
This sample should reflect the majority of the tested area, please avoid Touchup areas
Topcoat Color that needs to be identified NIA
FTIR Generic Topcoat AnalYsis:
2.
Exterior Sample
Sample Location (ie.: Roof, Sidewall, Floor) N/A
This sample should reflect the majority of the tested area, please avoid Touchup areas
Topcoat Color that needs to be identified N/A
*Please check for clear coat:
FTIR Generic Topcoat AnalYsis:
3.
Additional Sample
Sample Location: (ie.: Roof, Sidewall, Floor) Dry int bottom
This sample should reflect the majority of the tested area, please avoid Touchup areas
Topcoat Color that needs to be identified Lt blue
FTIR Generic Topcoat AnalYsis:
Analytical Use Only:
No evidence of coating. (lnorganic/Rust Material)
Missing lnformation.
Not enough samples in bag for proper identification.
Email to:
laraanderson@utilityservice.com, Brian.k.huffman@sherwin.com, Bryan.Morrow@suez.com
Pigmented Alkyd
HIH LABORATORY, INC.
100 E. NASAParkway, Suite 210
P.O. Box 57727
Webster, Tx 77598
(281) 338-9000
FAX (281) 338-2351
LABORATORY ANALYSIS REPORT
Report Number
52000
Page 1 of 2
PO Number
18-1491-357
Client Sample ID
HIH Sample
Number:
Sample
time
(min)
Sample
Vol. (L)
or Area
Analyte
Result
Units
Actual Exp Units
Reporting
Limit
Blank
Corrected
SHIREY ANALYTICAL SERVICES
1028 HERCULES AVE.
HOUSTON TX 77058
Attention:
Date Received:
02/03/2020
Date Reported:
Report Number
52000
Client Number:
1105 0
Mr. Lynn Shirey
Date Collected
Test date:
Lower
95% Confidence
Limit
Upper
95% Confidence
Limit
02/07/2020
BM-1/16/2020 ADDITIONAL
DRY INT BOTTOM
554470
No
30
<
Chromium (as Cr)
ug/g
%
30
0.003
<
1/16/2020
ug/g
2/3/2020
No
50
Lead (as Pb)
ug/g
%
120
0.012
1/16/2020
ug/g
2/3/2020
ELLAP 101438
TDH 30-0040
AIHA 101438
NVLAP Lab Code 101233-0
HIH LABORATORY, INC.
100 E. NASAParkway, Suite 210
P.O. Box 57727
Webster, Tx 77598
(281) 338-9000
FAX (281) 338-2351
LABORATORY ANALYSIS REPORT
Report Number
52000
Page 2 of 2
PO Number
18-1491-357
Test
date
Analyst
Instrument
MSD %
RECOVERY
MS %
Recovery
LCS %
Recovery:
Precision
(% Sr)
Blank
Result
DUP
RPD
MS/MSD
RPD
Range
Batch
No
Media
Method
Analyte
Lit
Ref
HIH
Sample
#
SUPPLEMENTARY QUALITY ASSURANCE INFORMATION
Report Number
52000
02/04/2020
38643
5.7
102
98
30
Chromium (as Cr)
NIOSH 7300 M
Paint
JR
8300MET
97
554468
<
ug/g
02/04/2020
38643
102
1.6
99.7
108
50
Lead (as Pb)
NIOSH 7300 M
Paint
JR
8300MET
97
554468
<
ug/g
Method Literature References
Samples arrived in good condition unless otherwise noted.
HIH Laboratory did not collect these samples; therefore, calculations and sampling information are based on client-supplied sampling data.
97 NIOSH Manual of Analytical Methods, 4th Edition, August, 1994
Approved Signatory:
Esteban P. Piña, Technical Manager
ELLAP 101438
TDH 30-0040
AIHA 101438
END OF REPORT
NVLAP Lab Code 101233-0
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Analytical Results
ProQuality Lab
Your Resource for Laboratory Solutions
659 Henderson Dr. Suite D
Cartersville, GA 30120
Phone: 770-382-4400
Fax: 770-382-4408
5/27/2010
EPA ID: GA01200
Utility Service Co, Inc
Regina Arthur
P.O. Box 1350
Perry, GA 31069
Rahway, NJ Hart Street 1MG Elevated Tank
Project:
17148
Exterior Leg
5/10/2010
MM-505-EXT
Lab Sample ID:
Description:
Sample ID:
Units
Analyst
Analysis
Date
Method
Result
Analyte
Detection
Limit
Date Sampled:
Marty Mazzella
Sampler:
PO Number:
PQ-
Chromium (Cr)
EPA 6010B
6,660
mg/kg
RAR
5/26/2010
50
Lead (Pb)
EPA 6010B
109,000
mg/kg
RAR
5/26/2010
100
17149
Interior Roof
5/10/2010
MM-505-INT
Lab Sample ID:
Description:
Sample ID:
Units
Analyst
Analysis
Date
Method
Result
Analyte
Detection
Limit
Date Sampled:
Marty Mazzella
Sampler:
PO Number:
PQ-
Chromium (Cr)
EPA 6010B
209
mg/kg
RAR
5/26/2010
50
Lead (Pb)
EPA 6010B
302
mg/kg
RAR
5/26/2010
100
Page 1 of 2
Utility Service Co, Inc
Regina Arthur
P.O. Box 1350
Perry, GA 31069
Rahway, NJ Hart Street 1MG Elevated Tank
Project:
17150
Dry-Interior Sidewall
5/10/2010
MM-505-INT-DRY
Lab Sample ID:
Description:
Sample ID:
Units
Analyst
Analysis
Date
Method
Result
Analyte
Detection
Limit
Date Sampled:
Marty Mazzella
Sampler:
PO Number:
PQ-
Chromium (Cr)
EPA 6010B
ND
mg/kg
RAR
5/26/2010
50
Lead (Pb)
EPA 6010B
240
mg/kg
RAR
5/26/2010
100
Respectfully Submitted,
ProQuality Lab
by:
Laboratory Case Narrative
ND = Not Detected above the Detection Limit
There were no problems with this project.
Page 2 of 2
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
September 18, 2020
Jacqueline Foushee, P.E., C.M.E.
Director of Community Development
City Engineer
City of Rahway
1 City Hall Plaza
Rahway, NJ 07065
Re:
City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Dear Ms. Jacqueline Foushee:
In accordance with your Authorization we have performed and evaluation of the 1.5 million gallon
Hart Street Water Storage Tank and the 0.5 million gallon Westfield Avenue Hydrosphere. The
evaluation included the inspection of the two tanks by Tank Industry Consultants (TIC) and CME
staff and a review of the inspection reports prepared by TIC and Suez Water. Tank Industry
Consultants (TIC) was authorized to perform specialty services for this inspection that included a
Remotely Operated Vehicle (ROV) inspection, paint analysis, exterior conditions, etc. TIC has
about 40 years of experience specializing in the inspection of water storage tanks.
TIC and CME Associates were on site from June 9, 2020 through June 12, 2020 for the purposes
of inspecting the conditions of the Hart Street Tank and the Westfield Avenue Spheroid. The
exterior of both tanks, general site conditions, vaults, interior dry surfaces, and interior wet
surfaces were inspected. An ROV being used for the internal wet inspection(s). This report will
summarize the findings by Suez Water, TIC, and CME staff as of the general condition of the
water storage tanks, the antenna systems installed on the tanks and ach site.
Please contact Keith Henderson if there are any questions or concerns,
Very truly yours,
CME Associates
Michael McClelland
Partner
cc:
William J. Mitchell, CME Associates
Keith Henderson, CME Associates
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 2
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TABLE OF CONTENTS
HEADING
PAGE NUMBER
INTRODUCTION
3
EXECUTIVE SUMMARY
4
IMMEDIATE CONCERNS
6
PAINTING RECOMMENDATIONS
7
CELLULAR EQUIPMENT
9
RECOMMENDATIONS
14
ESTIMATED COSTS
26
SITE INSPECTION DETAILS
27
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 3
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Introduction
The City of Rahway, New Jersey adopted resolution AR-101-20 on April 13, 2020 authorizing the
execution of a contract between the City of Rahway and CME Associates for Professional
Engineering Services for Water Storage Tank Assessments. The water storage tanks included
in the assessments were the 1.5 Million Gallon (MG) Hart Street Tank and the 0.5 MG Westfield
Avenue Hydrosphere. Both tanks are elevated water storage tanks.
On June 9, 2020 through June 12, 2020, William Mitchell of CME Associates was onsite as liason
during the inspections performed by TIC. Work being conducted by TIC was documented and
independent tank/site observations were recorded.
CME reviewed additional data that had been provided by the City of Rahway for the cellular
antenna lease agreements and evaluations performed by Suez Water. These documents were
referred to and incorporated in the tank evaluation.
This report is not intended to cover every detail of the review and the individual reports should be
consulted if this information is required.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 4
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Executive Summary
The coating on both tanks is at or near the end of its useful life. It is more cost effective to
rehabilitate the tanks in their interiority rather than just the interior or just the exterior.
Based on the inspection reports prepared by TIC and Suez Water the 1.5 MG Hart Street Tank
interior wet surface coating was in poor overall condition. Metal loss and rust were observed on
the roof, stiffeners, and other areas. This tank should be prioritized to be painted within the next
year. Allowances should be made for further review and improvements once the metal has been
blasted.
Based on the inspection reports prepared by TIC and Suez Water the 0.5 MG Westfield Avenue
Hydrosphere interior wet surfaces were found to be in fair to poor conditon. The rehabilitation of
the 0.5 MG Westfield Avenue tank should be scheduled in the next 1 to 2 years.
There were items that were identified during the inspections that require immediate action. These
are outlined on page 4 of this report. There were additional American Water Works Association
(AWWA) and operational defeficiencies identified that should be included in the rehabilitation of
the tanks. ANSI/OSHA and safety-related deficiencies that were identified should also be
incorporated in the rehabilitation of the tanks. CME Associates compiled additional site
improvements for consideration.
The City of Rahway, New Jersey requested a review of the impacts of the cellular equipment
located on the tanks and sites. The installation of the cellular equipment was observed to be non
compliant with AWWA Standards and OSHA requirements in some locations. The cellular
equipment should be installed in an improved manner in accordance with applicable standards,
and to not adversly affect the tank coating or structure. The existing cellular equipment should
be removed from the water storage tank prior to the start of the rehabilitation. The cellular
improvements, including all welding to the tank, should be corrected prior to the blasting and
painting of the tank to avoid damaging any new coatings.
Copies of the lease agreements were supplied to CME Associates for review. It is recommended
that the agreements be revised when these are prpared for renewal to include details on the
requirements of the cellular providers when the tanks are being rehabilitated or when the cellular
providers desire to change their equipment. It is recommended that the cellular providers be
contacted, prior to the initiation of any rehabilitation contract, to determine if there are any issues
that must be addressed. This is necessary to prevent delays once the project begins. Items to
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 5
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
be discussed should include the relocation of equipment off of the tank, improvements required
prior to reinstalling the equipment, time constraints, etc.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 6
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Immediate Concerns
Critical items that affect how the tank operates and items that were not compliant with AWWA
Standards which could pose a water quality concern were observed.
1.5 MG Hart Street Tank
Based on our review of the TIC and Suez Water inspection reports we recommend that the tank
interior be painted within the next year. It would be more economical to perform the exterior,
interior dry, and condensate platform at this time.
There were additional AWWA and Operational Deficiencies noted. These deficiencies are noted
with respect to protecting the water within the tank. The overflow pipe screen is the incorrect
mesh and could allow ingress of insects into the tank. A broken band was observed on the roof
vent.
There are ANSI/OSHA and Safety-Related Deficiencies that should be corrected when
rehabilitating the tank but no immediate items were called out. We recommend that a detailed
safety plan be prepared, that addresses the safety concerns, to be applied when the tank is being
accessed.
0.5 MG Westfield Avenue Hydrosphere
TIC and Suez Water noted deficiencies in this tank. We recommend that one of these deficiencies
be addressed immediately. The roof vent screen should be replaced immediately. This was
supported with a photograph showing a hole in the vent screen. This is a water quality concern
since the screen prevents insects, birds, or other small animals from potentially getting into the
tank.
It was reported that there were uncovered openings in the roof plates and a hole in the roof vent
flange. These could potentially have an immediate impact on water quality in the tank.
There are ANSI/OSHA and Safety-Related Deficiencies that should be corrected when
rehabilitating the tank, but no immediate items were called out. We recommend that a detailed
safety plan be prepared, that addresses the safety concerns, to be applied when the tank is being
accessed.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 7
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Painting Recommendations
1.5 MG Hart Street Tank
We recommend that the interior wet, interior dry, and exterior be painted. This tank should be
performed within the next year. Additionally, the piping in the valve vault should be included.
Appropriate interior and exterior surface preparation shall be used following AWWA D102, AWWA
D100 and Steel Structures Painting Council.
All coatings and any additives that are used shall be acceptable to the United States
Environmental Protection Agency and approved by the National Sanitation Foundation (NSF) in
compliance with NSF Standard 61 and the controlling state and/or local health and environmental
regulatory agencies. All coatings and any additives shall comply will all pertinent requirements
for potable water storage facilities of the NJDEP Safe Drinking Water Act Regulation and NJDEPE
air pollution requirements for volatile organic compounds (VOC’s) emissions. The exterior and
interior coatings shall be furnished by the same manufacturer.
All equipment to be removed from the tank prior to rehabilitation. All improvements and welding
to be completed prior to the tank blasting and painting. When equipment is returned to the tank it
shall comply with the installation requirements with no welding permited.
Painting Recommendations
0.5 MG Westfield Avenue Hydrosphere
We recommend that the interior wet, interior dry, and exterior be painted. This tank should be
performed within the next 2-3 years. The piping within the interior dry section should be included.
Appropriate interior and exterior surface preparation shall be used following AWWA D102, AWWA
D100 and Steel Structures Painting Council.
All coatings and any additives that are used shall be acceptable to the United States
Environmental Protection Agency and approved by the National Sanitation Foundation (NSF) in
compliance with NSF Standard 61 and the controlling state and/or local health and environmental
regulatory agencies. All coatings and any additives shall comply will all pertinent requirements
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 8
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
for potable water storage facilities of the NJDEP Safe Drinking Water Act Regulation and NJDEPE
air pollution requirements for volatile organic compounds (VOC’s) emissions. The exterior and
interior coatings shall be furnished by the same manufacturer.
All equipment to be removed from the tank prior to rehabilitation. All improvements and welding
to be completed prior to the tank blasting and painting. When equipment is returned to the tank it
shall comply with the installation requirements with no welding permited.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 9
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Cellular Equipment
Hart Street Tank
Metal bands were observed being used to
attach cables and cable trays to some of
the water tank legs. These can expand
and contract which may cause premature
failure to the tank coating. Broken bands
were observed dangling at one location.
One leg was observed with wire rope
cables being used to secure the cellular
cables and cable tray to the leg of the tank.
No visible welded locations were observed
securing the cable tray and equipment.
Only the cable rope secured the structure.
Wire rope cable clamps were observed to
be incorrectly secured. The cable and
clamps may expand and contract which
may cause premature failure to the tank
coating.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 10
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Both Suez and TIC indicated that there were cellular antennas mounted upon the balcony railing.
Pictures taken by TIC show multiple cables and boxes mounted to the balcony side of the railing
and obstruct the use of the railing in some locations. Pictures also show that there are kickback
supports connected to the bottom of the balcony.
There are multiple cellular structures onsite and on the tank. There are generators on the site
which appear to be for back-up power to some of the cellular equipment. There are multiple
cables routed with various forms of bracketing and mounting to the top of the tank with antenna
arrays mounted to the balcony railings.
As noted in the report details, there is debris on the site that appears to be associated with the
cellular equipment such as brackets, conduit pieces, spools of corrugated cable sleeves, etc.
0.5 MG Westfield Avenue Hydrosphere
This tank had four cellular providers mounted on it. These companies are shown below in “Figure
1” with relative locations. Some of the ground equipment presents a challenge during the
rehabilitation due to its close proximity to the tank. As an example the T-Mobil equipment is next
to the bottom cone which will obstruct tarps when the tank is encapsulated as well as potentially
be in the way when the tank is being blasted and painted.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 11
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Figure 1.
The antenna arrays in “Figure 1” show that T-Mobile’s array occupies the upper portion of the
tank roof shell. The next array down belongs to AT&T followed by Sprint and Verizon Wireless.
The TIC report shows interior burning of the paint due to welding on the exterior at some locations.
The report and the pictures do not show the relative direction and level for these burn marks. The
burn marks appear to be matching pairs. The Verizon array consists of 4 antenna in each sector
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 12
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
and does not match the observed pattern. T-Mobile’s antenna are on the very top of the tank with
sectors consisting of three antennas each. The location and pattern does not match T-Mobile’s
arrangement. AT&T’s sectors consist of 4 antennas each which does not match the observed
pattern. The most likely source of the burn marks is the Sprint arrays which are further down on
the shell in groups of two but this cannot be confirmed with the available information.
The ladder going up to the access tube has been used
to support numerous cellular provider cables with no
evidence of structural improvements.
TIC pointed out that the location of some of the cell carrier equipment on the ground will present
some challenges when rehabilitating the tank. The equipment’s proximity to the tank will be an
obstruction for scaffolding and/or curtains that dropdown from the bowl plus room is needed to
abrasively blast the old coating.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 13
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Multiple cellular provider’s equipment and sites are overgrown and unsightly.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 14
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Cellular Recommendations
Hart Street Tank
The Lease Agreements do include Maintenance of the Lessee’s areas. The cellular providers
should be contacted to immediately clean up their areas and site for all materials that have been
left on the premises.
Proper and dedicated cable supports should be added to the tank legs to replace straps, cable
ropes and other brackets used in some locations.
TIC’s inspection did indicate that there was “widespread” failure of the coating on the safety railing
but this was not attributed to the cellular installations. A review of the lease agreements does not
define who is responsible to pay for any associated expenses for relocating the cellular equipment
off the tank during rehabilitation. This should be addressed in future lease agreements. The City
of Rahway should contact the cellular companies prior to any rehabilitation project to identify and
confirm their position to avoid any issues during the construction.
Inspection by Suez indicated that the balcony handrail is overloaded with antennas & coaxial
mounted to it which is restricting safe access. Consideration should be made for an alternate
location for the antennas. The report does not include any supporting information on how the
tank structure is being compromised. It is recommended that the railings be brought up to the
current OSHA requirements. All equipment will need to be removed from the hand rail when this
takes place.
Radio Frequency (RF) exposure is a concern when working near or around cellular equipment.
Because cellular equipment is mounted upon the balcony railing it is in close proximity to where
personnel or inspectors could be located. RF surveys are useful for identifying potential concerns
and exposure times. If there currently is no RF exposure report, it is a useful part of the safety
plan. In some cases, cellular providers relocate their equipment onto the painter’s scaffolding
during the painting. The painter should be aware of these concerns and take appropriate
measures to provide a safe work environment during the painting. If there is no such report,
Rahway should consider requiring the cellular providers to furnish an RF exposure report to
identify potential concerns and precautions when working around the antennas whether upon the
balcony or temporarily upon the scaffolding.
The lease agreements received do not have a section regarding the landlord maintaining their
infrastructure such as painting and improvements. Dialog with the cellular providers should occur,
prior to the development of the specs, with the intent to have the cellular providers pay for
improvements associated with mounting of their equipment to improve site aesthetics, safety
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 15
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concerns, and structural concerns. This will help identify potential issues that could affect the
project and the schedule. It should be considered to make allowances for mounting the antennas
and cable to brackets on the outside of the balcony rails with any structural improvements along
with any additional supports. The use of stainless steel brackets and hardware should be
investigated to reduce potential rust staining in the future.
The lease agreements should be improved when it is time to renew them.
AWWA Standard D100 Section A.5.6 covers antennas and related equipment on elevated tanks.
This standard should be incorporated into future lease agreements so that any proposed work
complies with the standard. The standard includes Cellular equipment. This standard includes,
but is not necessarily limited to, items that were observed to be in non-compliance or should be
addressed when new equipment is mounted upon the tank or relocated upon the tank. These are
summarized below:
•
Stud welded attachments should only be used for minor cable supports on horizontal surfaces.
Damage to the existing coating should be repaired and attachments should be seal-welded
and/or caulked.
•
Antenna cables should be arranged and located for protection during abrasive blasting and
recoating operations.
•
Exterior bolted components should be painted, seal-welded, and/or caulked to prevent
corrosion and rust streaking.
•
If clamps or bands used to attach equipment and cables to columns of multicolumn tanks,
they should be sealed or caulked to prevent corrosion and rust streaking.
•
Precautions for radio frequency exposure of personnel should be considered.
•
Antennas and related equipment should not interfere with OSHA requirements. Cables should
not be attached to ladders or obstruct manholes and platforms. Commercially available cable
support systems should be used such as cable ladders.
•
If there is not enough spacing available (Example: Access Tubes) the cables should be fitted
to the access tube wall to maximize clearance.
•
Exterior welded attachments should be seal welded to prevent rust streaking.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 16
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
•
Interior and exterior tank coating should be inspected and repaired when welding is performed
upon the tank. Therefore both surfaces of affected areas should receive a one-year
anniversary inspection after the work is completed to evaluate the performance of the coating
repairs.
Cellular Recommendations
0.5 MG Westfield Avenue Hydrosphere
If possible the cellular cables should be routed onto their own support system independent of the
access ladder. If not possible the ladder support structure should be analyzed and improved as
required.
The lease agreements received do not have a section regarding the landlord maintaining their
infrastructure such as painting and improvements. The cellular providers should be contacted
early in the process when the City decides to develop plans and specifications to paint the tank.
This will help identify potential issues that could affect the project and the schedule.
The Lease Agreements do include Maintenance of the Lessee’s areas. The cellular providers
should be contacted to clean up their areas.
Photos also show obstructions caused by cable runs both interior and exterior. Vestiges of cellular
install work left from when antenna and cables were installed or modified can be observed. These
are not indicated to have caused any structural damage to the tank but do not meet current OSHA
requirements. Though there is no structural damages noted, the excess cable on the interior
ladder should be removed. Cable runs should be removed from the ladder.
Radio Frequency (RF) exposure is a concern when working near or around cellular equipment.
There is cellular equipment mounted upon the tank in close proximity to where personnel or
inspectors could be located. RF surveys are useful for identifying potential concerns and
exposure times. If there currently is no RF exposure report, it is a useful part of the safety plan.
In some cases, cellular providers relocate their equipment onto the painter’s scaffolding during
the painting. The painter should be aware of these concerns and take appropriate measures to
provide a safe work environment during the painting. If there is no such report, Rahway should
consider requiring the cellular providers to furnish an RF exposure report to identify potential
concerns and precautions when working around the antennas whether upon the tank or
temporarily upon the scaffolding.
The lease agreements should be improved when it is time to renew them.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 17
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
AWWA Standard D100 Section A.5.6 covers antennas and related equipment on elevated tanks.
This standard should be incorporated into future lease agreements so that any proposed work
complies with the standard. The standard includes Cellular equipment. This standard includes,
but is not necessarily limited to, items that were observed to be in non-compliance or should be
addressed when new equipment is mounted upon the tank or relocated upon the tank. These are
summarized below:
•
Stud welded attachments should only be used for minor cable supports on horizontal surfaces.
Damage to the existing coating should be repaired and attachments should be seal-welded
and/or caulked.
•
Antenna cables should be arranged and located for protection during abrasive blasting and
recoating operations.
•
Exterior bolted components should be painted, seal-welded, and/or caulked to prevent
corrosion and rust streaking.
•
Precautions for radio frequency exposure of personnel should be considered.
•
Antennas and related equipment should not interfere with OSHA requirements. Cables should
not be attached to ladders or obstruct manholes and platforms. Commercially available cable
support systems should be used such as cable ladders.
•
If there is not enough spacing available (Example: Access Tubes) the cables should be fitted
to the access tube wall to maximize clearance.
•
Exterior welded attachments should be seal welded to prevent rust streaking.
•
Interior and exterior tank coating should be inspected and repaired when welding is performed
upon the tank. Therefore both surfaces of affected areas should receive a one-year
anniversary inspection after the work is completed to evaluate the performance of the coating
repairs.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 18
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General and Site Recommendations
Hart Street Tank
Add door switch to the access door for intrusion alarm. This will also require that the
communication system has available input/output for the door switch.
The overflow screen was not the correct mesh to comply with regulations. The screen should be
24 mesh. Verify that the reduced screen opening will not present a tank operational concern and
need to be modified.
The old broken concrete for the spillway should be removed and a new spillway design should be
used to prevent washout.
We did not observe a local display of the tank water level. There is a pressure gauge. It could be
useful to have a local digital display of the tank water level in feet inside the tank dry area.
The interior dry area should be cleaned of all debris.
Heaters should be mounted inside with temperature sensors and the interior dry walls should be
insulated.
The old pipe insulation and heat trace should be replaced with new. When the old insulation is
removed the pipes should be inspected and if satisfactory, cleaned and painted prior to the
installation of new insulation.
Should consider replacing the site fencing and barbed wire. At a minimum the gate for site access
should be replaced since the existing gate does not prevent site access.
Both TIC and Suez indicated a large degree of corrosion on the roof rafters. There should be
allowances built into the contract to allow for detailed inspection and potential structural repairs
that become apparent once the tank has been blasted.
Bent riser rods should be repaired/adjusted/replaced as required.
Suez recommends removal of the access tube to the top of the tank because it does not go
completely to the roof and poses a potential risk for contamination. Access would have to be
modified if using Suez’s recommendation. Rahway has a choice to either bring the length of the
access tube fully to the roof or follow Suez’s recommendation.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 19
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Suez and TIC reported elevated levels of lead in the exterior paint. These are 73,000 mg/Kg and
109,000 mg/Kg respectively. This will need to be contained and disposed of properly.
Vehicles and equipment should not be parked up against the site fencing.
There is some movement in the water level in the tank during demand periods. Consider checking
low demand periods. If cycling is lower during low demand periods a mechanical mixing system
could be considered to improve water quality.
General and Site Recommendations
0.5 MG Westfield Avenue Hydrosphere
Add door switch to the access door for intrusion alarm. This will also require that the
communication system has available input/output for the door switch.
Suez to locate and inspect the overflow screen to verify that it is intact and has a 24 mesh screen.
Additionally a check valve could be installed in the tank interior dry area inside the overflow piping.
We did not observe a local display of the tank water level. There are pressure gauges. It could
be useful to have a local digital display of the tank water level in feet inside the tank dry area.
The valves and controller on the piping that branches off to the plant are closed. Determine if this
water will never be needed again to feed water for the backwashing of the filter beds (or other).
If it will not be used the line should be removed and a blind flange installed in the tank interior dry
section.
The piping branch with the check valve has closed valves. If this is not needed it could be
eliminated otherwise check system operation.
Remove any old pipe insulation, inspect piping, clean pipe, paint pipe, and reinsulated with new
materials.
Consider pipe improvements along with painting of all piping in the interior dry section.
All unused instrumentation and appurtenances should be removed.
The interior dry area should be cleaned of all debris.
Removing the damaged fence section(s) and repair as required. Place large bollards that
maximize the roadway space but affording some protection to the cellular cabinet on the corner.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 20
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
There is some movement in the water level in the tank during demand periods. Consider checking
low demand periods. If cycling is lower during low demand periods a mechanical mixing system
could be considered to improve water quality.
Recommended Tank Improvements
Hart Street Tank
The following improvements are from the report prepared by TIC.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 21
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 22
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 23
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Recommended Tank Improvements
0.5 MG Westfield Avenue Hydrosphere
The following improvements are from the report prepared by TIC.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 24
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 25
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 26
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Cost Estimates
1.5 MG Hart Street Tank
Rehabilitation is estimated to cost approximately $2,900,000
0.5 MG Westfield Avenue Hydrosphere
Rehabilitation is estimated to cost approximately $1,860,000
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 27
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Site Inspection Details
Hart Street Tank
Hart Street Tank
(Image from Google Earth)
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 28
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
On Tuesday, June 9, 2020 TIC arrived onsite at 7:55 AM with
three inspectors at the Hart Street Tank. This inspection
continued on June 10, 2020. The lead inspector was Chad
Mitchell and he was accompanied by James Birmingham and
Davon Van Doren.
At 8:00 AM Suez staff opened the gates to the Hart Street Tank.
This tank is located next to Public Works at the end of Edgewood
Avenue.
The interior inspection was performed by ROV (remotely
operated vehicle) on June 10, 2020. This portion of the
inspection took about an hour (excluding setup time).
The tank has a 1.5 MG capacity and was missing a plaque. The plaques typically indicate the
year that the tank was constructed, brand, model, capacity, and height. There was a date stamp
of 1971 on a Mueller Gate Valve in the tank vault and this should be a good estimate for the tank
construction. The tank has 12 support legs and a center support with access tube entrance.
Pictures from TIC show floor openings in the balcony without covers.
Additional pictures from TIC captured corroded and bent riser rod(s), cracks in the grout between
the base plate and the foundation, a crack in the foundation, bent anchor bolt, crack(s) in overflow
pipe bracket(s), intermittently welded balcony to shell, a bent roof ladder rung, corroded roof patch
plates, electrical conduit routed across the top of the platform floor, electrical conduit attached to
the side of the ladder rail and bracket, ladder bracket found without seal weld, silt on the tank
bottom, poor condition of roof vent with broken band, and various locations of paint failure and
corrosion.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 29
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
An access door on the center column opens to a fill/discharge
pipe and ladder to the top. The tank has an access tube running
up from the center of the tank. There is no safety climb device.
There is a portable heater being used to heat this interior space
as well as insulation around the piping. There was no insulation
on the interior walls. No security equipment or door sensors were
observed.
The old paint coating on the tank is covered with micro cracking.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 30
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
The overflow piping does have a screen
at the bottom but this screen is not the
required mesh size. The wire should be
24 Mesh. Many utilities have begun to
use rubber “duckbill” check valves for the
tank
overflow
which
satisfies
the
requirement
but
24
Mesh
is
still
“recommended” even when using this
design. The picture also shows that the
spillway design is incorrect. There is
washout occurring on the stone bed on
the side of the overflow spillway. The
spillway concrete is cracked.
The Hart Street Tank site fencing was still useable but in poor
condition. The gate is bent and closed via a chain and lock but
the gap is large enough that an individual could squeeze through
the opening.
Along the Public Works side of the site there are multiple vehicles
parked up next to the fence. These vehicles can provide an easy
way to get over the fence and barbed wire.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 31
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The site could use minor improvements. There are
weeds growing out of the stone bed, sections of fence
were covered in growth, and debris were on the
grounds. A lot of the debris appears to be associated
with the cellular equipment such as brackets, conduit
pieces, spools of corrugated cable sleeves, etc.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 32
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Cathodic Protection – On top of a panel inside the tank access there was a book titled Polatrol.
This would be a cathodic protection system.
Mixing System – No mixing system control panel was observed.
Pressure / Overflow / Sensors Reporting – Email response from Suez on 6/24/2020 indicated that
radio transmits tank level data to SCADA. The SCADA reports an alarm status if there is a high
level or overflow condition.
TIC reported elevated levels of 1,000 mg/Kg lead in the exterior paint. TIC reported elevated
levels of 29,000 mg/Kg lead in the interior wet section paint.
Tank level control - The tank floats with the system.
August was selected as a potentially high demand month. Data provided by Suez Water for
August of 2019 showed that about a third of the tank’s volume changes over the course of that
month. The minimum level going down to 21.2 feet. Though not captured by the graph above
there were three times where the level was briefly over the full capacity of 30 feet during the month
of August 2019.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 33
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Westfield Avenue Hydrosphere
Rahway Water Treatment Plant
Location of Horton Water Sphere
(Image from Google Earth)
The tank was constructed in 1986 according to
the plaque mounted inside the doorway
entrance to the tank dry section. Total height
was listed as 65.5 feet to bottom with a capacity
of 500,000 gallons. The tank is a CBI Na-Con,
Inc. built under contract E60126.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 34
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 35
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
It has been described that the water tank currently is used for additional water system storage.
Water treatment improvements were made under contract 2014-1. The work under this contract
abandoned existing water treatment filters and replaced these with membranes. Prior to this
modification the tank also supplied water for use in backwashing the filterbeds.
On June 11, 2020 TIC arrived at the hydrosphere at 1045 Westfield Avenue 7:30 AM. Personnel
had to be cleared to work and had to be signed in. The weather was overcast. At 3:00 PM TIC
indicated that they would come back the following day due to concerns of lightning. On June 12,
2020 TIC returned to complete the inspection.
The interior inspection was performed by ROV (remotely operated vehicle) on June 12, 2020.
This portion of the inspection took less than an hour (excluding setup time).
An access door on the base opens to fill/discharge piping and ladder to the top. The tank has an
access tube running up from the center of the tank. There is no safety climb device at the base.
There are heaters to heat this interior space as well as insulation around parts of the piping. There
is insulation on the interior walls. No security equipment or door sensors were observed.
There are various materials on the floor within the tank dry area such as an old television set,
miscellaneous hardware, old paint containers, etc.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 36
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Section of piping in the tank interior dry where the paint
has failed and some delaminating of the metal pipe has
occurred.
The existing paint system on the exterior is discolored.
The tank overflow was not visible and could not be checked because it went into the ground to
some unknown discharge location.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 37
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
The tank is within the secure site of the water treatment plant and
is not isolated within its own secure area. There are some sections
of fencing. Close to the driveway there is a section that has been
damaged. While onsite it was observed that multiple trucks
backed up the driveway in this location to remove materials.
There are small tress growing near the tank and vegetation around the site.
One grounding bracket was not connected/used.
TIC captured a picture in their report showing the base cone access door frame in poor condition.
TIC captured pictures showing unused antenna equipment and brackets on the roof and on top
of the condensate platform.
Cathodic Protection – There was an active Corrpro Cathodic Protection System Panel inside the
tank dry section.
Jacqueline Foushee, P.E., C.M.E.
September 18, 2020
City Engineer
City of Rahway, New Jersey
Re: City of Rahway, New Jersey – Elevated Water Storage Tank Inspections
Our File No. PRW00406.01
Page 38
F:\HOME\WPROC\R-Z\RWY\PRW00406.01 Water Storage Tanks Assessment\2020.09.18 revised Report.docx
Mixing System – No mixing system control panel was observed.
Pressure / Overflow / Sensors Reporting – There is a panel inside the tank dry section that was
marked “SCADA”. Telemetry is by radio.
Tank level control - The tank floats with the system.
Data provided by Suez for the Month of August 2019 showed some daily changes in the water
level within the Horton Water Sphere. The monthly maximum level was 37.4 feet in the bowl
and a monthly minimum value of 30.2 feet in the bowl.
WATERTOWERLEASEAGREEMENT
This Agreement, mnde this y' day of~ 2002, between the City of Rahway. with its principal mailing
address of City Hall Plaza, Rahway, New Jersey o-fbGs: Social Security #/Tax ID #22-600-223 I hereinafter designated
LESSOR and New York SMSA Limited Partnership, d/b/a Verizon Wireless, a Limited Partnership of the State of New
York, with its principal offices at c/o Verizon Wireless. 180 Washington Valley Road, Bedminster, New Jersey 07921,
hereinafter designated LESSEE.
WITNESS ETH
In consideration of the mutual covenants contained herein and intending to be legally bound hereby, the
Parties hereto agree as follows:
LEASE AGREEMENT
I.
LESSOR hereby leases to LESSEE a portion of that certain space on the LESSO R's Water Tower,
located at 1045 Westfield Avenue, City of Rahway, Essex County, State of New Jersey, as shown on the Tax Map of
the City of Rahway as Block 20 I, Lot 2 together with a parcel of land sufficient for the installation of LESSEE's
equipment building as shown on Exhibit "A", attached hereto and made a part hereof together with the non-exclusive
right for ingress and egress. seven (7) days a week, twenty-four (24) hours a day, on foot or motor vehicle, including
trucks. and for the installation and maintenance of utility wires, poles, cables. conduits, and pipes over, under, or along
a twelve ( 12 ') foot wide right-of-way extending from the nearest public right-of-way, Westfield Avenue, to the demised
premises. said Property and right-of-way for access being substantially as described herein in Exhibit "A" and attached
hereto and made a part hereof which tower space and parcel of land are collectively referred to hereinafter a. the
"Property". LESSEE shall provide telephone notice to LESSOR in advance of its required access to the property.
In the event any public utility is unable to use the aforementioned right-of-way, the LESSOR hereby agrees to
grant an additional right-of-way either to the LESSEE or to the public utility at no cost to the LESSEE.
LESSOR hereby grants pennission to LESSEE to install, maintain and operate the radio communications
equipment, antennas and appurtenances described in Exhibit "B" attached hereto.
LESSEE reserves the right to replace the aforementioned equipment with similar and comparable equipment
provided said replacement does not increase tower loading of said Tower.
2.
LESSOR also hereby grants to LESSEE the right to survey said Property, and said survey shall then
become Exhibit "C" which shall be attached hereto and made a part hereof, and shall control in the event of boundary
and access discrepancies between it and Exhibit "A". Cost for such work shall be borne by the LESSEE.
3.
This Agreement shall be effective as of the date of execution by both parties, provided however, the
initial tenn shall be for five (5) years and shall commence on the Commencement Date (as hereinafter defined)at which
time rental payments will be due at an annual rental o
to be paid in equal
monthly installments on the first day of the month, in advance, to LESSOR or to such other person, firm or place as the
LESSOR may, from time to time, designate in writing at least thirty (30) days in advance of any rental payment date.
The Commencement Date is defined as the first ( I st) day of the month following the date this Agreement is executed
by all parties or the first (1st) day of the month following the date LESSEE is granted a building pennit by the
govern.mental agency charged with issuing such pennits, whichever event occurs last. Rent shall increase on the first
anniversary date of the Commencement Date and each year thereafter including any renewal term pursuant to
Paragraph 4 by an amount equal to
■■■
of the rent paid for the prior year.
1
4.
This Agreement shall automatically be extended for three (3) additional five (5) year terms unless the
LESSEE tenninates it at the end of the then current term by giving the LESSOR written notice of the intent to terminate
at least six (6) months prior to the end of the then current term.
5.
lfat the end of the third (3rd) five (5) year extension term this Agreement has not been terminated by
either Party by giving to the other written notice of an intention to terminate it at least six (6) months prior to the end of
such term, this Agreement shall continue in force upon the same covenants, terms and conditions for a further term of
five (5) years and for five (5) year terms thereafter until terminated by either Party by giving to the other written notice
of its intention to so terminate at least six (6) months prior to the end of such term. Annual rental for each such
additional five (5) year term shall be equal to
payable with respect to the immediately
preceding five (5) year term.
6.
LESSEE shall use the Property for the purpose of constructing, maintammg and operating a
communications facility and uses incidental and all necessary appurtenances. A security fence consisting of chain link
construction or similar but comparable construction may be placed around the perimeter of the Property at the
discretion of LESSEE (not including the access easement). All improvements shall be at LESSEE's expense and the
installation of all improvements shall be at the discretion and option of the LESSEE. LESSEE will maintain the
Property in a good condition reasonable wear and tear excepted. lt is understood and agreed that LESSEE's ability to
use the Property is contingent upon its obtaining after the execution date of this Agreement all of the certificates,
perm its and other approvals ( collectively the "Governmental Approvals") that may be required by any Federal, State or
Local authorities as well as satisfactory soil boring tests which will permit LESSEE use of the Property as set forth
above. LESSOR shall cooperate with LESSEE in its effort to obtain such approvals and shall take no ac'tiori which
would adversely affect the status of the Property with respect to the proposed use thereof by LESSEE. In the even.t that
any of such applications for such Governmental Approvals should be finally rejected or LESSEE determines that""Such
Governmental Approvals may not be obtained in a timely manner or any Governmental Approval issued to LESSEE is
canceled, expires, lapses, or is otherwise withdrawn or tenninated by governmental authority or soil boring tests are
found to be unsatisfactory so that LESSEE in its sole discretion will be unable to use the Property for its intended
purposes or the LESSEE determines that the Property is no longer technically compatible for its intended use, LESSEE
shall have the right to terminate this Agreement. Notice of the LESSEE's exercise of its right to terminate shall be
given to LESSOR in writing by certified mail, return receipt requested, and shall be effective upon the mailing of such
notice by the LESSEE.
All rentals paid to said termination date shall be retained by the LESSOR. Upon such
termination, this Agreement shall become null and void and all the Parties shall have no further obligations including
the payment of money, to each other.
7.
LESSOR agrees the LESSEE shall have free access to the Tower at all times for the purpose of
installing and maintaining the said equipment. LESSOR shall furnish LESSEE with necessary means of access for the
purpose of ingress and egress to this site and Tower location. It is agreed, however, that only authorized engineers,
employees or properly authorized contractors of LESSEE or persons under their direct supervision will be permitted to
enter said premises.
8.
LESSOR covenants that it will keep the Tower in good repair as required by federal law H.R.
6180/S. 2882, the Telecommunications Authorization Act of 1992 including amendments to Sections 303( q) and
503(b)(5) of the Communications Act of 1934. The LESSOR shall also comply with all rules and regulations enforced
by the Federal Communications Commission with regard to the lighting, marking and painting of towers.
If the
LESSOR fails to make such repairs including maintenance the LESSEE may make the repairs and the costs thereof
shall be payable to the LESSEE by the LESSOR on demand. If the LESSOR does not make payment to the LESSEE
within ten ( 10) days after such demand, the LESSEE shall have the right to deduct the costs of the repairs from the
succeeding monthly rental amounts normally due from the LESSEE to the LESSOR.
2
No materials may be used in the installation of the antennas or transmission lines that will cause corrosion or
nist or deterioration of the Tower structure or its appurtenances.
All antenna(s) on the Tower must be identified by a marking fastened securely to its bracket on the Tower and
all transmission lines are to be tagged at the conduit opening where it enters any user's equipment space.
9.
LESSEE agrees to have installed radio equipment of the type and frequency which will not cause
measurable interference to LESSOR or other lessees of the premises. In the event LESSEE's equipment causes such
interference, and after LESSOR has notified LESSEE of such interference, LESSEE will take all steps necessary to
correct and eliminate the interference. LESSOR agrees that LESSOR and/or any other tenants of the property who
currently have or in the future take possession of LESSOR's water tower and/or property will be permitted to install
only such radio equipment that is of the type and frequency which will not cause measurable interference to LESSEE.
In the event any such LESSOR's or tenant's equipment causes such interference, LESSOR will see that the Party
causing said interference will take all steps necessary to correct and eliminate the interference.
10.
If the LESSEE causes damage to the Water Tower, LESSEE agrees to repair such damage with
reasonable promptness at its own cost and expense.
11.
LESSEE agrees to maintain its antennas, transm1ss1on lines and other appurtenances, in proper
operating condition and maintain same in satisfactory condition as to appearance and safety.
12.
All installations and operation in connection with this Agreement by LESSEE shall meet wi~h all
applicable Rules and Regulations of the Federal Communications Commission, Federal Aviation Agency aniil all
applicable codes and regulations of the township, county and state concerned. Under this Agreement, the LESSOR
assumes no responsibility for the licensing, operation, and/or maintenance of LESSEE's radio equipment.
13.
Each Party shall indemnify and hold the other harmless against any claim of liability or loss from
personal injury or property damage resulting from or arising out of the use and occupancy of the Property or the parcel
of which the Property is a part, by the Party, its servants or agents, excepting, however, such claims or damages as may
be due to or caused by the acts of the other Party, or its servants or agents.
14.
The Parties hereby waive any and all rights of action for negligence against the other which may
hereafter arise on account of damage to the premises or to property, resulting from any fire, or other casualty of the kind
covered by standard fire insurance policies with extended coverage, regardless of whether or not. or in what amounts,
such insurance is now or hereafter carried by the Parties. or either of them. LESSOR agrees that LESSEE may
self-insure against any loss or damage which could be covered by a comprehensive general public liability insurance
policy.
15.
Notwithstanding anything to the contrary contained herein, provided LESSEE is not in default
hereunder and shall have paid all rents and sums due and payable to the LESSOR by LESSEE, LESSEE shall have the
right to terminate this Agreement upon the annual anniversary of this Agreement provided that three (3) months prior
notice is given the LESSOR.
3
16.
LESSEE, upon termination of the Agreement, shall, within ninety (90) days, remove its building(s),
antenna structure(s) (except footings). fixtures and all personal property and otherwise restore the Property to its
original condition, reasonable wear and tear excepted. If such time for removal causes LESSEE to remain on the
Property after termination of this Agreement. LESSEE shall pay rent at the then existing monthly rate or on the existing
monthly pro-rata basis if based upon a longer payment term. until such time as the removal of the building. antenna
strncture, fixtures and all personal property are completed.
17.
If the LESSOR during the lease term or any extension of the lease tenn elects to sell all or any
portion of the Property, whether separately or as part of the larger parcel of which the Property are a part, the LESSEE
shall have the right of first refusal to meet any bona fide offer of sale on the same terms and conditions of such offer. If
LESSEE fails to meet such bona fide offer within thirty (30) days after notice thereof from LESSOR, LESSOR may
sell the premises or portion thereof to such third person in accordance with the terms and conditions of his offer. For
purposes of this Paragraph, any transfer, bequest or devise of the LESSO R's interest in the Property as a result of the
death of the LESSOR. whether by will or intestate succession, shall not be considered a sale of the Property for which
the LESSEE has any right of first refusal.
18.
Should the LESSOR, at any time during the term of this Agreement, decide to sell all or any part of
the property (the property to include only the parcel leased hereunder) to a purchaser other than LESSEE, such sale
shall be under and subject to this Agreement and LESSEE's rights hereunder, and any sale by the LESSOR of the
portion of this property underlying the right-of-way herein granted shall be under and subject to the right of the
LESSEE in and to such right-of-way.
19.
LESSOR covenants that LESSEE, on paying the rent and performing the covenants shall peac~ably
and quietly have, hold and enjoy the leased Property.
..
20.
LESSOR covenants that LESSOR is seized of good and sufficient title and interest to the Property
and has full authority to enter into and execute this Agreement. LESSOR further covenants that there are no other liens,
judgments or impediments of title on the Property, or affecting LESSOR's title to the same, and that there are no
covenants, easements or restrictions which prevent the use of the Property by the LESSEE as set forth above.
2 l.
It is agreed and understood that this Agreement contains all agreements, promises and
understandings between the LESSOR and LESSEE and that no verbal or oral agreements, promises or understandings
shall be binding upon either the LESSOR or LESSEE in any dispute, controversy or proceeding at law, and any
addition, variation or modification to this Agreement shall be void and ineffective unless made in writing signed by the
Parties. In the event any provision of the Agreement is found to be invalid or unenforceable, such finding shall not
effect the validity and enforceability of the remaining provisions of this Agreement.
22.
This Agreement and the perfonnance thereof shall be governed, interpreted, construed and regulated
by the laws of the State in which the Property is located.
23.
This Agreement may be sold, assigned or transferred by the LESSEE without any approval or
consent of the LESSOR to the LESSEE's principal, affiliates, subsidiaries of its principal or to any entity which acquires
all or substantially all of LESSEE's assets in the market defined by the Federal Communications Commission in which
the Property is located by reason of a merger, acquisition or other business reorganization. As to other parties, this
Agreement may not be sold, assigned or transferred without the written consent of the LESSOR, which such consent
will not be unreasonably withheld or delayed.
4
24.
All notices hereunder must be in writing and shall be deemed validly given if sent by certified mail,
return receipt requested or by commercial courier, provided the courier's regular business is delivery service and
provided further that it guarantees delivery to the addressee by the end of the next business day following the courier's
receipt from the sender, addressed as follows (or any other address that the Party to be notified may have designated to
the sender by like notice):
LESSOR:
LESSEE:
City of Rahway
City Hall Plaza
Rahway, NJ 07065
New York SMSA Limited Partnership
d/b/a Verizon Wireless
c/o Verizon Wireless
180 Washington Valley Road
Bedminster, New Jersey 07921
Attention: Network Real Estate
Notice shall be effective upon mailing or delivering the same to a commercial courier, as permitted above.
25.
TI1is Agreement shall extend to and bind the heirs, personal representatives, successors and assigns of
the Parties hereto.
26.
At LESSOR's option, this Agreement shall be subordinate to any mortgage or other security interest
by LESSOR which from time to time may encumber all or part of the Property or right-of-way; provided. how-ever,
every such mortgage or other security interest shall recognize the validity of this Agreement in the event of a
foreclosure of LESSOR's interest and also LESSEE's right to remain in occupancy of and have access to the Property as
long as LESSEE is not in default of this Agreement. LESSEE shall execute whatever instruments may reasonably be
required to evidence this subordination clause. In the event the Property is encumbered by a mortgage or other security
interest, the LESSOR immediately after this agreement is executed, will obtain and furnish to LESSEE, a
non-disturbance agreement for each such mortgage or other security interest in recordable fonn.
27.
LESSOR agrees to execute a Memorandum of this Lease Agreement which LESSEE may record
with the appropriate Recording Officer. The date set forth in the Memorandum of Lease is for recording purposes only
and bears no reference to commencement of either tenn or rent payments.
28. In the event there is a default by the LESSEE with respect to any of the provisions of this Agreement or its
obligations under it, including the payment of rent, the LESSOR shall give LESSEE written notice of such default.
After receipt of such written notice, the LESSEE shall have fifteen ( 15) days in which to cure any monetary default and
thirty (30) days in which to cure any non-monetary default, provided the LESSEE shall have such extended period as
may be required beyond the thirty (30) days if the nature of the cure is such that it reasonably requires more than thirty
(30) days and the LESSEE commences the cure within the thirty (30) day period and thereafter continuously and
diligently pursues the cure to completion. The LESSOR may not maintain any action or effect any remedies for default
against the LESSEE unless and until the LESSEE has failed to cure the same within the time periods provided in this
Paragraph.
5
29.
a. LESSOR will be responsible for all obligations of compliance with any and all environmental
and industrial hygiene laws, including any regulations, guidelines, standards, or policies of any governmental
authorities regulating or imposing standards of liability or standards of conduct with regard to any environmental or
industrial hygiene conditions or concerns as may now or at any time hereafter be in effect, that are or were in any
way related to activity now conducted in, on, or in any way related to the Property, unless such conditions or
concerns are caused by the activities of the LESSEE.
b. LESSOR shall hold LESSEE harmless and indemnify the other from and assume all duties,
responsibility and liability at its sole cost and expense, for all duties, responsibilities, and liability (for payment of
penalties, sanctions, forfeitures, losses, costs, or damages) and for responding to any action, notice, claim, order,
summons, citation, directive, litigation, investigation or proceeding which is in any way related to: a) failure to
comply with any environmental or industrial hygiene law, including without limitation any regulations, guidelines,
standards, or policies of any governmental authorities regulating or imposing standards of liability or standards of
conduct with regard to any environmental or industrial hygiene concerns or conditions as may now or at any time
hereafter be in effect; and b) any environmental or industrial hygiene conditions arising out of or in any way related
to the condition of the Property or activities conducted thereon, unless such environmental conditions are caused by
the LESSEE.
30.
In the event of damage by tire or other casualty to the Premises that cannot reasonably be expected to
be repaired within forth-five ( 45) days following same or, if the Property is damaged by fire or other casualty s~ that
such damage may reasonably be expected to disrupt LESSEE's operations at the Premises for more than forty-five-,(45)
days, then LESSEE may at any time following such fire or other casualty, provided LESSOR has not completed the
restoration required to permit LESSEE to resume its operation at the Premises, terminate this Lease upon fifteen ( 15)
days written notice to LESSOR. Any such notice of termination shall cause this Lease to expire with the same force
and effect as though the date set forth in such notice were the date originally set as the expiration date of this Lease and
the parties shall make an appropriate adjustment, as of such termination date, with respect to payments due to the other
under this Lease. Notwithstanding the foregoing, all rental shall abate during the period of such fire or other casualty.
3 I.
In the event of any condemnation of the Property, LESSEE may terminate this Lease upon fifteen
( 15) days written notice to LESSOR if such condemnation may reasonably be expected to disrupt LESSEE's operations
at the Premises for more than forty-five ( 45) days. LESSEE may on its own behalf make a claim in any condemnation
proceeding involving the Premises for losses related to the antennas, equipment, its relocation costs and its damages and
losses (but not for the loss of its leasehold interest). Any such notice of termination shall cause this Lease to expire with
the same force and effect as though the date set forth in such notice were the date originally set as the expiration date of
this Lease and the parties shall make an appropriate adjustment as of such termination date with respect to payments
due tq the other under this Lease.
The submission of this Lease for examination does not constitute an offer to lease the Premises and
this Lease becomes effective only upon the full execution of this Lease by the parties hereto. If any provision herein is
invalid, it shall be considered deleted from this Lease and shall not invalidate the remaining provisions of this Lease.
6
Each of the parties hereto warrants to the other that the person or persons executing this Lease on behalf of such party
has the full right, power and authority to enter into and execute this Lease on such party's behalf and that no consent
from any other person or entity is necessary as a condition precedent to the legal effect of this Lease.
IN WITNESS WHEREOF, the Parties hereto have set their hands and affixed their irrespective seals the day
and year first above written.
LESSOR:
City of Rahway
LESSEE:
New York SMSA Limited Partnership
d/b/a Verizon Wireless
By Cellco Partnership,
its managing general partner
David R. Heverling
Network Vice President
~heAr~
7
Exhibit A
(Sketch of Property)
8
EXHIBITB
LESSEE is authorized to install and maintain the following equipment:
ANTENNAS:
Diameter of transmission line:
ANTENNA INFORMATION
( 12 Total) Three sectors of four antennas @ l 00' AGL (Antenna Rad" Center)
Orientation: 30' , 130', 230°
Not to exceed I 5/8"
9
...
"
NOTES:
1. THE PURPOSE OF THIS DRAWING >S FOR
CONCEPT ONLY. ALL DIMENSIONS SHOWN
ARE APPROXIMATE.
2. INFORMATION SHCWN ON THIS DRAWING
IS BASED ON LI~ TEO FIEI..O MEASUREMENTS
T N<EN BY GREEJ\,MAN--PEDERSEN ON 3-19-02
AND LEASE EXHlEIT Pt.ANS PREPARED BY
THE CE01'RS GRCUP DATI:D 1-9-01.
3. OWNER, ClTY OF RAHWAY
Cl TY HALL PLAZA
R/11-iWAY. NJ D7065
4. SITE CONT ACT, ONOY SOLOMON
QTY HALL PLAZA
R>HWAY, NJ 07065
(732) 627-2193
5. SITE ADDRESS' IG-4-5 WESTFIELD AVENUE
RAHWAY, NJ 07065
6. BLOCK, 201 - LOT, 2
7. ZONE, R-2 • RESIDENTIAL
8. LOCATION, LATITU'JE, 40" 37'00" N
LONGITUDE, 74" 17'25" W
9. APPRO~MATE AMSL GROUNJ ELEVATION AT
THE BASE OF THE WATER TANK IS 60.00 FT.
10. LATITUDE ANO LCNGlruDE VALUES SHOWN
ARE BASED ON USGS "PERTH AMBOY, NJ"
QUADRANGLE '4AP.
11. c!NAL EL!::CTRIC ,>ND TELEPHONE SERVICE
ROUTING TO BE CHERMINED DURING
FINAL DESIGN.
...
J
2
CPl~LCT f"a_:
200Z&S7.04
ISS\£
~Existing
Gras.,,.,
REVlSC::O ANTENNA LOCATION
REVISED SHELTER LOCATlOH
PROPOSED 7"--0" HIGH
CHAIN LINK FENCE WtTH
BAABEO WIRE CTYP .>
,{__£,istl09 PrNed Area ~
OWNER,
arr OF ilAHWAY
!BLOCK 2011 -
LOT 2
6.85 ACRES
NOTE,
PROPOSED------~
METER PANEL
£ zlslfnq
Paved Ar$7
PROPOSED 12'-0" WIDE
DOUBLE SWING LOCKING
SECURITY GATE
Exfsllnq Concr ete -----t.____
srructure
----------. -
Exlsllnq Entry Door---:;- - --- -
j
ro WatBJ' rant
Cxlstln(J Gale----
£"/sting Sprint Meter Ceriter
SITE PL~
EXISTING ANTENNAS ARE
NOT SHOWN FOR CLARITY
SCALE: 1"-20'-0 ..
RFW j 7-J0-02
NEW
YORK SMSA
"'SL
7-03-02
-<J'-0"
I
PROPOSED 12'X30'
VERIZON WIRELESS
EOUIP'4ENT SHELTER
ON CONCRETE PIER
FOUNDATIONS
• :
-
PROPOSED •CRUSHED
•
-
I
STONE SUlFACE
c_, _ --7~
:'~™~'
-- ·-
..
,
PROPOSED CABLE ICE
•
,.
•
'Cl
•
~~SGE ANO SUPPORT
-
0
.
'
~
----.._ Existing Dry Well
~
·:
<I
• -------- PROPOSED COAX' CABLES
ROUTED UP OUTSIDE FACE OF
WATER TANK TO PROPOSED
_; .
ANTENNAS CLAMPED TO
)'
,
CORROSION RESISTANT
'<
.,,. ·'
~•
•
CHANNEL SUP!'ORTS WELDE□
- -
-~
• 1
•
TO AND PAINTED TO MATCH
'.
• •, '.
•
WATER TANK SURFACE (TYP.l
--- .- .,. .r~~- _: ---: -..
Exlstff'K) SprfrtUndergrcund
"-,- 1 I \
1'
Cauxlai Col!ie Ccrdults
,.-~!'
, -~ ::::ior '
~ng Sprint
I ' -
-
•
EQ!.Jlprent Area
,--•
-- ·-"--£xfs11ng ChaTn
£xlsffng Sprint
UN< Fe= /TypJ
Undergrotll'd U/1/llfes
PROPOSED VERIZON WIRELESS
ANTENNAS MOUNTED ATOP
WATER TANK (TOTAL OF 121
Existing NexfeJ Underqraund
Coax/al Cable Conduits
£xfsffng lie/er Centor
E.<l.sflr,, C/J/ldmons
- -
-
' -
-
E,d stlng Ferce
Existing Te/ep/r)re
Service
Existing Eiecfr lc
Sertlce
LEGEND
----- PROPOSED CONDITIONS
--.-x-- PROPOSED FENCE
--T-- PROPOSED TELEPHONE SERVICE
--E-
-
PROPOSED ELECTRIC SERVICE
-
-
-
-
-
PROPOSED LIMIT OF CRUSHED
STONE SURF ACE TREATMENT
LEASE EXHIBIT
REVISED COAX C-'S.£ ROUTWG
"5l. ( 5-31-02
LIMITED PARTNERSHIP ~
--
PROPOSED WIRELESS TELECOMMUNICATIONS F AGILITY
RAHWAY 2
F"""- SUBMISSION
RD
~-15-02
Verizon wireless
PRELIMINAR'f SU81,i!SSlqN
RD l •-2-02
d/b/a
DE51:!1PT'Ot
.,,
OArr
l4l [cdusa:.~ P.uitway 3rll!lcbbur!, ~~ J:..-sc:y 0&.r.6
RAHWAY, UNION COUNTY, NEW JERSEY
;1-:
U:
N
j
_!._
PROPOSED
ANTENNA
ITYP.l
.~~~
~<::?:,.:,;
~
...
J8i
~
ANTENNA SCHEDULE
NOT TO SCALE
REVISED ••ITENNA LOCATION
•
REVISED SHELTER LOCATION
REVISED COAX C/IBLE ROUTING
FIN.OC.. SUSMISS!ON
PREU"'NAIIY SUB!ISSION
CPI ?fl:OJECT NQ_,
%002557.D♦ =
=--
RFW
7-30-02
MSL
7-03-02
MSL j 5-31-02
RO
4-15-02
RO
4-2--02
IIY
DAIT
PROPOSED VERIZON ----
ANTENNAS (TOT /,L OF 1Zl
Existing k=s Tube--------------
To Roof Of Waler Tank
PROPOSED COAX C/IBLES ROUTED ------------L+-'
UP OUTSIDE FACE OF WATER TANK TO
PROPOSED ANTENNAS <BEYOND)
CLAMPED TO CORROSION RESIST ANT
CHANNEL SUPPORTS WELDED TO AND
PAINTED TO MATCH WATER TANK
SURF ACE (TYP .l
\
Existing Wat,r T - ~\
PROPOSED CABLE ICE
I
BRJDGE ANO SUPPORT
LEGS
PROPOSED 7'-0" HIGH \
CHAIN Ll'lK FENCE WITH
BARBED WIRE <TYP .l
PROPOSED----,.
METER PANEL
PROPOSED 1Z'X30'
VERIZON WIRELESS
EQUIPMENT SHELTER
ON CONCRETE PIER
FOUNDATIONS <BEYOND)
I I
I
I
I
I
I
J
I
I
I
11
!
~------ PROPOSED COAX CABLES
CL.AMPED TO CORROSION
RESIST ANT CH-a
SUPPORTS WELDED AND
PAINTED TO MATCH WATER
TANK SURFACE (TYP.l
,----- Existing Entry Door
To Water Tani:
,-----
Existing Telep(rxle
RDP Ca/Jlret
~--- Exlstfng VoiceStreom
Equipment r&:jondJ
Existing Sprlr,
E(IUlpment rBeyondJ
Existing Nextel
E'JU/l)trlent'i/elter
~---i=
fr
NOTE,
Existing C«a<r•---...r
Structure
SOUTHWEST ELEVATION
EXISTING CHAIN UNK FENCE
NOT SHOWN IN ITS ENTIRETY
FDR CLARITY
NEW YORK SMSA
LIMITED PARTNERSHIP
d/b/a
SCALE: 1/11;"- l' -O"
~
verizon wireless
1"11.oduslrialPrlwayB~--g,Ne-,o,Jes..~- 081176
LEASE EXHIBIT
?ROPCS~D WIRELESS TELECOMMUNICATIONS FACILITY
RAHWAY 2
RAHWAY. UNION COUNTY, NEW
JERS;cY
(jpl uREE.NMAN-PEDERSEN, INC.
~-"'-~~&,
.........
EB
...
N
Exlstlnr; Outside -----,,.
Diameter Of Nater Tank
Existing Ne~ el ~
Antenna Se~·or
Existing Vci::eStream
Antenna Se,;•ors
. S,.._
.,,.Oo,..,../"u'
0:..--
S'""'~
\
Existing Sprint~ ~
Antenna Sec/or
\
Existing Nextel
Antenna Sector
NeKTel
• 27CT Sector
~
~ -
,~ i~_/
~-....-?-
..
</),x,..
,_.,c
- ·-·
PROPOSED V:RIZON
WIRELESS ANTENNA
SECTOR
Existing Sprint
Antenna St:etor
/
PROPOSED VERIZON
WIRELESS ·ANTENNA
SECTQR
j
\1,1/
c,952;,,o(
7~. -:,;::-- Existing Sprint
/
Antenna Sector
'.)...--- ---- ----~! Existing VolceStream
Antenna Sector
i
I
I
-----:-- Existing Nextel
Antenna Sector
,~
l?. ~.1,
,
~Q:
.-·V
◊t_~~-1
-~~;.-1c-e
vl'-9
PROPOSED VERIZON
WIRELESS ANTENNA
SECTOR. (4'-0"
SEPARATION MAST
TO MAST TYP. EACH
SECTOR>
ANTENNA SCHEDULE
SCALE: 1"· 10' -0"
' GPI PROJECT No.• 2002557 .04
NEW YORK SMSA
\
~
-·
; LIMITED PARTNERSHIP~-
i
d/b/a veri70Qwireless
141 lndusuiol Pnrkway Branchbwg, Now Jorsor OS876
5
REVISED ANTENNA LOCATION
RFW
7·30·02
ANTENNA LAYOUT
MSL
7·29·02
ISSl-E
0~C.RIPTION
BY
Di>.TE
LEASE EXHIBIT
PROPOSED WIRELESS TELECOMMUNICATIONS FACILITY
RAHWAY 2
RAHWAY, UNION COUNTY, NEW JERSEY
Gpl GREENMAN-PEDERSEN, INC. ~
_____
.. _
\..V
Oi>.TE• 7•3 ·0
51
PUBLIC NOTICE
NOTICE OF ADOPTED ORDINANCE
The Ordinance published herewith, the summary terms of which are included herein, was finally adopted by the
Municipal Council of the City of Rahway, County of Union, State of New Jersey, at a meeting held on January
13,2014. Copies of said Ordinance are available at the City Clerk's Office to the members of the general public
who shallrequest tu-"'*'TNANCE
- cITy oF RAHwAy, NEw JERSE'
o-51-13
AN ORDINANCE AUTHORIZING AN AMENDMENT TO AN
EXISTING LEASE BETWEEN THE CITY OF RAHWAY AND AT&T
WIRELESS FOR USE OF PROPERTY LOCATED AT THE
WESTFIELD AVENUE WATER TOWER, BLOCK 201, LOT 2 IN THE
CITY OF RAHWAY F'OR THE SITING OF WIRELESS
COMMUNICATIONS EQUIPMENT
WHEREAS, pursuant to The Local Lands and Buildings Law, N.J.S.A. 40A:12-l et
seq., the City has the power to lease real property or interests therein; and
WHEREAS, by Resolution No. AR-151-04, dated July 12,2004, the City authorized
the execution of a certain lease between the City of Rahway ("City"; and Cellular Telephone
Company, dlbla AT&T Wireless ("AT&T"), whereby AT&T leased a portion of property
owned by the City at 1045 Westfield Avenue, in the City of Rahway, consisting of
approximately 250 square feet of land for the placement of an equipment shed and space on
the City's existing water tower together with such easements as were necessary for AT&T's
antennae and initial installation (the "Original Lease"); and
WHEREAS, New Cingular Wireless, PCS, LLC, a Delaware limited liability
company, is the successor in interest to Cellular Telephone Company, and also does business
as AT&T Wireless, and is also referred to herein as "AT&T;" and
WHEREAS, AT&T has requested an amendment to the Original Lease, increasing
the size of the premises leased to AT&T to permit AT&T to install an emergency backup
generator on the site to power the cell site during periods of power outage; and
WHEREAS, AT&T has also requested the right to connect to the natural gas supply
on the property, with AT&T to pay for all natural gas consumed by AT&T on the site; and
WHEREAS, the City and AT&T have agreed that in exchange for permission to
increase the size of the leased premises and access to the natural gas supply to permit the
installation and maintenance of the backup generator, AT&T will pay the City an additional
four hundred dollars ($4OO; per month in rent, subject to all further adjustments and increases
provided in the Original Lease; and
WHEREAS, the City and AT&T have incorporated the above terms into a document
entitled, o'First Amendment to N.J. Structure Lease Agreement," (the o'Amendment") a copy
o-51-13
Page 2 of 2
of which is annexed hereto as Exhibit o'A," the terms of which are hereby incorporated as if
set forth at length herein;
WHEREAS, the City has determined that it would benefit the citizens of the City of
Rahway, County of Union and State of New Jersey to execute the Amendment.
NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of
Rahway, County of Union and State of New Jersey that:
1.
The Original Lease, approved by Resolution No. AR-151-04, dated July 12, 2004, is
hereby ratified and aPProved.
2.
The amendment of the Original Lease is hereby authorized in accordance with the
terms of the Amendment.
The Mayor and Municipal Clerk are hereby authorized and directed execute the
Amendment in substantially the same form as that attached hereto and made a part
hereof as Exhibit ooA" and any other documents which may be required to effectuate
the Amendment.
BE IT FURTHER ORDAINED, that this ordinance shall take effect following
adoption and approval in the time and manner prescribed by law.
aJ
M- Giacubbe
S-Cox
YES:
Bakero Bresenhano Farrar, Coxn
Giacobbeo Mione, Saliga' Wenson
Maier, Brown
Date Introduced
c 2013
PRESIDENT
MAYOR
Date of Adoption
Januarv
?o14
CITY CLERK
C-1
BID CHECKLIST
Items Submitted with Bid
Owner’s CHECKMARKS
Bidder’s INITIALS
A. FAILURE TO SUBMIT ANY OF THESE ITEMS WITH
THE BID IS MANDATORY CAUSE FOR REJECTION
_X_
Letter of Qualification – Bid Form 1
_X_
Bid Bond or Certified/Cashier’s Check - Bid Form 2
_X_
Purchase Price – Bid Form 3
_X_
Letter of Intent – Bid Form 4
_X_
Acknowledgment of Receipt of Addenda (if any) – Bid Form 5
_X_
Statement of Ownership – Bid Form 6
_X_
Non-Collusion Affidavit – Bid Form 7
B. ITEMS PREFERRED AT TIME OF BID, BUT MANDATORY AT
THE TIME INDICATED
_X_
New Jersey Business Registration Certificate (Prior to Contract Award)
PRINT NAME OF BIDDER:
SIGNED BY:
PRINT NAME AND TITLE:
DATE:
COMPLETE AND SUBMIT THIS CHECKLIST WITH THE BID
C-2
BID FORM 1
LETTER OF QUALIFICATION
(Note: To be typed on Bidder's Letterhead. No modifications may be made to this letter, except to
italicized items.)
[Insert date]
Dear Municipal Clerk:
The undersigned has/have reviewed my/our Bid submitted in response to the Request for
Bid (RFB) issued by City of Rahway (“the City "), in connection with the sale of the City’s Water
System.
I/We affirm that the contents of my/our Bid (which Bid is incorporated herein by reference)
is accurate, factual and complete to the best of our knowledge and belief and that the Bid is
submitted in good faith upon express understanding that any false statement may result in the
disqualification of (Name of Bidder).
(Bidder shall sign and complete the spaces provided below.)
(Signature)
(Typed Name and Title)
(Type Name of Firm)*
Dated:
C-3
BID FORM 2
BID BOND
KNOW ALL MEN BY THESE PRESENT, that we [NAME OF BIDDER], as Principal
(hereinafter the “Bidder”) and [NAME OF SURETY], a [Corporation], [Partnership] duly
organized under the laws of the State of
, as Surety, are held and firmly
bound unto the City o f Rah way (the “City”), as Obligee, in the sum of Twenty Thousand
Dollars ($20,000) lawful money of the United States of America to be paid to the City, its
successors or assigns, for which payment, well and truly to be made, we bind ourselves, our
successors and assigns, jointly and severally, firmly by these present; and
WHEREAS, the above-named Bidder has submitted or is about to submit to the City a Bid
to enter into an Agreement of Sale to purchase the City’s Water System as described in the Request
for Bids, dated [
, 2026] (the “RFB”), issued by the City and covered by the Bid
submitted by the Bidder in response thereto, which Bid is made a part hereof.
NOW, THEREFORE, the Surety hereby understands that if the above-referenced Bid is
accepted by the City, then the Bidder will in good faith enter into a final Agreement of Sale in
writing and give bond with surety acceptable to the City for the purchase of the City’s Water System
within the time specified in the RFB, or any extension thereof agreed to in writing by the City.
Surety hereby agrees that if the Bidder shall fail to do so, Surety will pay to the City, as liquidated
damages, the full amount of this Bond within 30 calendar days after receipt by Bidder and Surety of
written notice of such failure from the City, which notice shall be given with reasonable
promptness, identifying this Bond and including a statement of the amount due. Upon execution of
the Agreement of Sale, this Bond shall thereafter become null and void, otherwise to remain in full
force and effect unless terminated as hereinafter provided.
It is agreed that this Bond shall become effective on the date the Bid is submitted and will
continue in full force and effect for three hundred sixty-five (365) days from such date of submittal
(unless extended) or until terminated as hereinafter provided.
If the Bid is not accepted within such 365-day time period, or any extension thereof agreed
to in writing by the City and the Bidder, then after written notice by the City of such non-
acceptance, this Bond may be terminated by the Surety or Bidder upon written notice to each other
and to the City by registered mail at least 10 days prior to the termination date specified in such
notice. Upon the giving of such notice, the Surety shall be discharged from all liability under this
Bond for any act or omission of the Bidder occurring after the date of the notice of non- acceptance.
Any suit or action under this Bond shall be commenced only in a court of competent
jurisdiction located in the State of New Jersey.
All capitalized terms used herein and not otherwise defined shall have the meaning set forth
in the RFB.
C-4
IN WITNESS WHEREOF, the Surety and Bidder, intending to be legally bound hereby,
do each cause this Bid Bond to be duly executed on its behalf by its authorized officers, agents or
representatives.
Signed and sealed this
day of
, 20 .
SURETY
BIDDER
[NAME OF SURETY]
[NAME OF BIDDER]
Name
Name
Name of Authorized Signatory
Name of Authorized Signatory
Signature
Signature
Title
Title
C-5
BID FORM 3
PURCHASE PRICE
Total Purchase Price: Bidder hereby proposes a TOTAL PURCHASE PRICE in accordance with
the RFB for the assets described therein at an amount set forth in words as follows:
BASE BID: Total Purchase Price – Own and Operate all features of the Water System.
______________________________________________________________________________
______________________________________________________________________________
and in dollars as follows:
$__________________________________
ALTERNATE BID: Total Purchase Price – Own and Operate all features of the Water System
with the exception of the water treatment plant.
______________________________________________________________________________
______________________________________________________________________________
and in dollars as follows:
$__________________________________
ADDER: Annual cost to provide customer billing to sewer customers.
______________________________________________________________________________
and in dollars as follows:
$__________________________ / YEAR
(Bidders acknowledge that in case of discrepancy, the amount in words will govern)
Plus an amount of $250,000 payable to Seller for Transaction Reimbursement Costs.
Name of Bidder
Signature
Title
C-6
BID FORM 4
LETTER OF INTENT
(Note: To be typed on Bidder's Letterhead. No modifications may be made to this letter, except to
italicized items.)
[Insert date]
Dear Municipal Clerk:
The undersigned, as Bidder, has (have) submitted the attached Bid in response to a Request
for Bid (RFB), issued by the City of Rahway (“the City”), for the Sale of the City’s Water System.
(Name of Bidder) HEREBY STATES:
1.
The Bid contains accurate, factual and complete information.
2.
(Name of Bidder) agrees/agrees to participate in good faith in the contract process
as described in the RFB and to adhere to the City’s procurement schedule.
3.
(Name of Bidder) acknowledges/acknowledge that all costs incurred by it (them) in
connection with the preparation and submission of the Bid prepared and submitted
in response to the RFB, or any negotiation which results from this RFB shall be
borne exclusively by the Bidder.
4.
(Name of Bidder) hereby declares/declare that the only persons participating in this
Bid as Principals are named herein and that no person other than those herein
mentioned has any participation in this Bid or in any contract to be entered into with
respect thereto. Additional persons may subsequently be included as participating
Principals, but only if acceptable to the City.
5.
(Name of Bidder) declares that this Bid is made without connection with any other
person, firm or parties who has submitted a Bid, except as expressly set forth below
and that it has been prepared and has been submitted in good faith and without
collusion or fraud.
6.
(Name of Bidder) acknowledge and agrees that the City may modify, amend,
suspend and/or terminate the procurement process (in its sole judgment). In any
case, the City shall not have any liability to the Bidder for any costs incurred by the
Bidder with respect to the contract activities described in this RFB.
C-7
(Bidder shall sign and complete the space provided below.)
(Signature)
(Typed Name and Title)
(Type Name of Firm)*
Date:
C-8
BID FORM 5
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA OR REVISIONS (IF ANY)
Bidder has examined and carefully studied the RFB, the other related data identified in the
RFB, if any, and the following Addenda, receipt of all of which is hereby acknowledged.
Addendum No.
Data Received
Addendum No.
Date Received
Name of Bidder
Signature
Title
C-9
BID FORM 6
STATEMENT OF OWNERSHIP
(N.J.S.A. 52:25-24.2)
The BIDDER is (check one):
◻
Partnership
❑ Corporation
❑ Sole Proprietorship
❑ Limited Liability Partnership
◻
Limited Liability Corporation ❑ Limited Partnership
◻
Subchapter S Corporation
❑ Other, Please List
I certify that:
◻
No individual person or entity owns a 10% or greater interest in the Bidder.
OR
◻
The list below contains the names and addresses of all individuals/entities holding 10% or
greater interest in the Bidder. If a parent entity holding 10% or more is a publicly traded entity,
then the Bidder in complying with N.J.S.A. 52:25-24.2 may submit the name and address of each
publicly traded entity, and the name and address of each person holding 10% or more interest in
the publicly traded entity as of the last annual filing with the Security Exchange Commission
(SEC), or foreign equivalent.
Name:
Address:
Name:
Address:
Name:
Address:
Check here if additional sheets are attached.
NOTE: If an entity owns a 10% or greater interest in the Bidder, list all owners of 10% or greater
interest for each such entity. Repeat the process of disclosure as necessary for each tier or level of
ownership until the name and address of each individual person who owns a 10% or greater interest
in each listed entity has been disclosed.
C-10
Publicly Traded Parent Company Disclosure:
Provide the Website (URL) providing the last annual Security Exchange Commission (SEC) filing,
or foreign equivalent:
BIDDER:
SIGNED BY:
PRINT NAME & TITLE:
DATE:
C-11
BID FORM 7
NON-COLLUSION AFFIDAVIT
City of Rahway Request for Bids – Sale Water System
STATE OF
)
) ss:
COUNTY OF
)
I,
of the City of
in the County of
and the State of
of full age, being duly sworn
according to law on my oath depose and say that:
I am
of the firm of
the bidder making the Bid for the above named
project, and that I executed the said Bid with full authority so to do; that said Bidder has not, directly
or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any
action in restraint of free, competitive bidding in connection with the above named project; and
that all statements contained in said Bid and in this affidavit are true and correct, and made
with full knowledge that the City of Rahway relies upon the truth of the statements contained in
said Bid and in the statements contained in this affidavit in awarding the contract for the said
project.
I further warrant that no person or selling agency has been employed or retained to solicit
or secure such contract upon an agreement or understanding for a commission, percentage,
brokerage or contingent fee, except bona fide employees or prospective employees or bona fide
established
commercial
or
selling
agencies
maintained
by
for the purpose of
securing business. (N.J.S.A. 52:34-15)
(NAME OF CONTRACTOR)
Subscribed and sworn to
(Type or print name of affiant under signature)
before me this
day of
20
.
Notary Public of
My commission expires
, 20 .
C-12
NEW JERSEY BUSINESS REGISTRATION
Pursuant to N.J.S.A. 52:32-44, the City of Rahway (“Contracting Agency”) is prohibited from
entering into a contract with an entity unless the bidder/proposer/contractor, and each
subcontractor that is required by law to be named in a bid/proposal/contract has a valid Business
Registration Certificate on file with the Division of Revenue and Enterprise Services within the
Department of the Treasury.
Prior to contract award or authorization, the contractor shall provide the Contracting Agency with
its proof of business registration and that of any named subcontractor(s).
Subcontractors named in a bid or other proposal shall provide proof of business registration to the
bidder, who in turn, shall provide it to the Contracting Agency prior to the time a contract, purchase
order, or other contracting document is awarded or authorized.
During the course of contract performance:
(1) the contractor shall not enter into a contract with a subcontractor unless the subcontractor first
provides the contractor with a valid proof of business registration.
(2) the contractor shall maintain and submit to the Contracting Agency a list of subcontractors and
their addresses that may be updated from time to time.
(3) the contractor and any subcontractor providing goods or performing services under the
contract, and each of their affiliates, shall collect and remit to the Director of the Division of
Taxation in the Department of the Treasury, the use tax due pursuant to the Sales and Use Tax Act,
(N.J.S.A. 54:32B-1 et seq.) on all sales of tangible personal property delivered into the State. Any
questions in this regard can be directed to the Division of Taxation at (609)292-6400. Form NJ-
REG can be filed online at http://www.state.nj.us/treasury/revenue/busregcert.shtml.
Before final payment is made under the contract, the contractor shall submit to the Contracting
Agency a complete and accurate list of all subcontractors used and their addresses.
Pursuant to N.J.S.A. 54:49-4.1, a business organization that fails to provide a copy of a business
registration as required, or that provides false business registration information, shall be liable for
a penalty of $25 for each day of violation, not to exceed $50,000, for each proof of business
registration not properly provided under a contract with a contracting agency.
C-13
THESE ARE SAMPLES OF BUSINESS REGISTRATION CERTIFICATES.
OR
CITY OF RAHWAY REGISTRATION
Sale of Water System
The Bidder,
, as designated below hereby
wishes to receive any updates for the Request For Bids and its appendices.
BIDDER: _______________________________________________________
BY: _____________________________________________________________
SIGNATURE: ___________________________________________________
TITLE: _________________________________________________________
DATE: _________________________________________________________
ADDRESS: _____________________________________________________
TELEPHONE: ___________________________________________________
FAX: ____________________________________________________________
EMAIL: _________________________________________________________
NOTE: As set forth in RFB this completed form must be submitted to the parties identified
in Section 1.6 to ensure that the Bidder receives all addenda/notices related to this RFB.
Chapter 411
WATER
§ 411-1.
Rates and charges.
§ 411-2.
Nonprofit organizations.
§ 411-3.
Special rates for senior citizens.
§ 411-4.
Fees for water connections.
§ 411-5.
Water conservation regulations.
§ 411-6.
Replacement of lead service
lines within City.
[HISTORY: Adopted by the City Council of the City of Rahway 7-9-1984 by Ord. No. A-12-84 as
Ch. 193 of the 1984 Code. Amendments noted where applicable.]
§ 411-1. Rates and charges. [Amended 4-5-1983 by Ord. No. A-4-83;14-15-1987 by Ord. No. A-3-87;
5-13-1991 by Ord. No. A-10-91; 5-10-1999 by Ord. No. O-18-99; 5-12-2003 by Ord. No. O-35-03;
6-16-2004 by Ord. No. O-17-04; 12-11-2006 by Ord. No. O-39-06; 7-9-2007 by Ord. No.
O-29-0710-14-2008 by Ord. No. O-26-08; 6-30-2009 by Ord. No. O-27-09; 11-14-2011 by Ord. No.
O-30-11; 3-11-2013 by Ord. No. O-11-13; 8-28-2013 by Ord. No. O-39-13; 4-24-2017 by Ord. No.
O-11-17; 12-13-2021 by Ord. No. O-48-21; 7-10-2023 by Ord. No. O-30-23]
The rates and charges for water and services to be supplied by the Division of Water shall be as set forth in
the following schedules, and the Division of Water Accounts shall render bills and accounts in accordance
with said schedules from and after the effective date of this chapter.
A.
Schedule I: Water supplied through a meter shall be charged for at a rate per 1,000 cubic feet as listed
in Subsection H. Commercial and industrial accounts with meters larger than one inch will be billed
monthly. The minimum charge shall be as per meter size as follows and will be increased annually as
per rates listed in Subsection H.
Meter Size
(inches)
Minimum Monthly Charges
Minimum Quarterly Charges
5/8
$23.89
$71.67
3/4
$36.92
$110.76
1
$60.81
$182.42
1 1/2
$119.44
$358.33
2
$191.11
$573.32
3
$390.90
$1,172.70
4
$597.21
$1,791.63
1.
Editor's Note: This ordinance provided that the following be added to the preamble of Ord. No. A-32-81, adopted 12-28-1981, which
is the ordinance that originally comprised this chapter: "Bills for water service furnished under this schedule will be rendered either
quarterly or monthly at the option of the City of Rahway, Division of Water." In addition, Ord. No. A-4-83 provided as follows:
"Effective upon adoption of this ordinance, all water rates herein shall remain in effect until December 31 of any given year and
shall continue in effect thereafter with approval of Municipal Council of the City of Rahway by resolution if there are no changes in
rates."
City of Rahway, NJ
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Meter Size
(inches)
Minimum Monthly Charges
Minimum Quarterly Charges
6
$1,194.42
$3,583.25
8
$1,802.48
$5,407.45
10
$3,691.83
$11,075.50
12
$4,299.90
$12,899.70
B.
Schedule IA: Rates for Manufactured Water and Nonmanufactured Supplied Water.
(1) Definitions. As used in this chapter, the following terms shall have the meanings indicated:
MANUFACTURED WATER — Water that is produced, supplied, metered and billed for by
the Division of Water of the City of Rahway.
NONMANUFACTURED SUPPLIED WATER — Water used by Rahway consumers that is
not necessarily produced, supplied or metered by the City Division of Water but the use of
which is arranged for or administered by and billed for by the City Division of Water, and
includes any such water supplied to Rahway consumers from utilities other than the City
Division of Water. It is hereinafter referred to as "NMS water."
(2) Base rate. For any consumer whose water supply consists of manufactured water and NMS
water, the base rate shall be $71.67 per thousand cubic feet.
(3) Surcharge. Any increase in costs of charges to the City for NMS water above current costs or
charges to the City for NMS water shall be passed on in the form of a surcharge to users of NMS
water, and users shall be liable in full for such increases, based on their usage of NMS water.
C.
Schedule II: Private Fire Service Rates:
(1) Private fire service rates shall be as follows:
Size of Service
(inches)
Quarterly Charge
2 or less
$175
3
$350
4
$525
6
$900
8
$1,350
10
$1,850
12
$2,150
(2) Testing.
(a)
No water shall be used through private fire service connections except for test purposes or
in case of fire, and no charge shall be made for water so used.
City of Rahway, NJ
§ 411-1
RAHWAY CODE
§ 411-1
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(b) Water for testing without charge is limited to a maximum of 1,000 cubic feet per quarter.
D.
Schedule IIA: fire hydrant charges.
(1) Private fire hydrants. Private fire hydrants are installed and owned by the owner of the property
on which they are installed. A charge of $850 per year, per hydrant, will be billed to the property
owner. The hydrants will be maintained by the Division of Water.
(2) Leased fire hydrants. Leased fire hydrants are installed within the right-of-way of other
municipalities. They are billed to the requesting municipal agency at a rate of $325 per year, per
hydrant. The hydrants are installed and maintained by the Division of Water.
E.
Schedule III: water for temporary purposes.
(1) Water for temporary purposes supplied through meters shall be billed at the rates set forth in
Schedule I, but a deposit of $120 per inch of diameter or fraction thereof shall be required for
the meter.
(2) Water supplied for temporary purposes without meters shall be billed at the minimum quarterly
rate in Schedule I for any use of three months or less. Charge for additional time will be at the
same rate.
(3) The Division of Water will provide adapters and hydrant wrenches for the above at a
nonrefundable charge of $30 per item. A separate deposit of $200 will also be required.
F.
Schedule IV: water supply installations. Charges for new water supply installations shall be as
follows:
(1) Applicants seeking to install new water supply lines shall submit plans to the contract manager
for the Water Division and pay a permit fee of $250 for plan review and inspection of the
installation for any line up to two inches in diameter. No permit shall be issued until the Water
Connection Fee has been paid in accordance with § 411-4.
(2) Applicants seeking to install new water supply lines in excess of two inches shall submit plans
to the contract manager for the Water Division and pay a permit fee based upon actual costs for
plan review and inspection of the installation.
(3) Curb settings.
(a)
When it is necessary that the meter be set outside the building, the contract manager for
the Water Division will place a meter setting for services and meters one inch in diameter
or less.
(b) The charge for the curb setting shall be at cost, including labor and materials. This charge
is in addition to the permit fee for a new service installation as listed above.
(4) The property owner shall submit plans for pit settings for meters 1 1/2 inches or longer and pay
a permit fee of $250 for plan review and inspection. These pits shall be constructed and
maintained by the property owner.
G.
Schedule V: services not involving the use of water.
(1) Removing, repairing or replacing lost or damaged meters due to negligence: The charge for
meters of all sizes shall be at cost, including labor and materials.
City of Rahway, NJ
§ 411-1
WATER
§ 411-1
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(2) Resumption of service after discontinuance for nonpayment of bills or violations of rules and
regulations of the Water Division: $30 per inch of diameter of meter or fraction thereof for the
first shutoff and $60 per inch of diameter of meter or fraction thereof for any additional shutoffs
within two years.
(3) Removing and replacing undamaged meters within a period of one year after installation at the
request of a customer: $30 per inch of diameter of meter or fraction thereof.
(4) Relocation of hydrants, shutoff valves or other appurtenances of the water supply system at the
request of the customer: The charge shall be fixed by the Superintendent of Water, based upon
cost to the Water Division, and paid in advance.
(5) Request for services of nonemergency nature after normal working hours will be billed to
customer. Charge will be equivalent to the cost incurred by the Division of Water.
(6) Customer request for meter testing because of high bill: $50.
(7) Deposits for meters installed outside of City limits.
Size
(inches)
Charges
5/8 x 3/4
$50
3/4
$75
1
$100
11/2
$200
2
$250
H.
Schedule VI. Effective on the dates indicated, all rates, fees and charges as set forth above in
Schedules I through V, inclusive, shall be as follows:
(1) The following rates for metered consumption shall take effect on the dates indicated:
Date
Rate
August 1, 2023
$71.67/kcf
January 1, 2024
$77.39/kcf
January 1, 2025
$83.59/kcf
January 1, 2026
$87.77/kcf
January 1, 2027
$92.15/kcf
January 1, 2028
$96.76/kcf
January 1, 2029
$101.60/kcf
January 1, 2030
$106.68/kcf
January 1, 2031
$112.01/kcf
January 1, 2032
$117.61/kcf
City of Rahway, NJ
§ 411-1
RAHWAY CODE
§ 411-1
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§ 411-2. Nonprofit organizations. [Added 8-10-1987 by Ord. No. A-16-87; amended 6-30-2009 by
Ord. No. O-27-09; 11-14-2011 by Ord. No. O-30-11; 3-11-2013 by Ord. No. O-11-13; 8-28-2013 by
Ord. No. O-39-13; 4-24-2017 by Ord. No. O-11-17; 12-13-2021 by Ord. No. O-48-21; 7-10-2023 by
Ord. No. O-30-23]
(2) Minimum charges shall increase accordingly.
I.
Schedule VII: Delinquent Water Utility Charges; Interest Rates.
(1) Grace period. Bills are due upon receipt. A grace period of 30 calendar days is provided, within
which a payment of water utility charges may be hereafter received without any charge for
interest, provided that such payment is received within said thirty-calendar-day period after the
billing date upon which the amount becomes payable.
(2) Interest rates. After the above grace period, water utility charges shall be considered delinquent,
and interest shall run against such delinquent charges at the rate of 8% on the first $1,500 of the
delinquent water utility charges and 18% on any delinquent sums in excess of $1,500.
J.
Schedule VIII: bad check charge: Should the City receive a negotiable instrument from a customer,
in payment of a bill, charge or deposit due, and such instrument is subsequently dishonored or
uncollectible for any reason, the City shall charge the customer a handling charge of $25.
A.
For the purpose of this section, the term "nonprofit organization" shall be defined as any organization
which qualifies under the terms of N.J.S.A. 12A:40A:12-21(a) through (1) or such other statutes
concerning aid by municipalities to private organizations.
B.
All nonprofit organizations shall be billed for and be required to pay for all water consumed as per
the terms of § 411-1 hereof.
C.
Any eligible nonprofit organization may apply for and receive reimbursement for water bills paid
under the following terms and conditions:
(1) That said organization has, at the conclusion of its fiscal year, submitted audited financial
statements to the Division of Water.
(2) That said financial statements demonstrate that said nonprofit organization operated at a loss for
the fiscal year submitted.
(3) That the sum of water bills paid for said fiscal year are equal to or more than 5% of the
demonstrated losses as revealed by the financial statement.
(4) That when the organization is a component of, or subsidiary to, any other organization, the
requirements and criteria established hereby shall be applied to any and all such organizations
taken together as a whole. Any organization applying for free water by reimbursement must
provide the required records for such other organizations also or a legal statement that it is not a
component of, a division of, or subsidiary to, any other organization.
(5) Any reimbursements made hereunder shall be in full for the applicable fiscal year.
D.
The provisions of this section shall be administered by the Division of Water, which administration
shall include the use of formal application forms. Actual approval or denial of reimbursement shall
be done by a resolution of the Municipal Council of the City of Rahway as a matter of public record
following the receipt of written reports from the Division of Water regarding the application. The
City of Rahway, NJ
§ 411-1
WATER
§ 411-2
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§ 411-3. Special rates for senior citizens. [Added 7-9-2007 by Ord. No. O-29-07; amended 6-30-2009
by Ord. No. O-27-09; 11-14-2011 by Ord. No. O-30-11; 3-11-2013 by Ord. No. O-11-13; 8-28-2013 by
Ord. No. O-39-13; 4-24-2017 by Ord. No. O-11-17; 12-13-2021 by Ord. No. O-48-21; 7-10-2023 by
Ord. No. O-30-23]
For all properties owned by senior citizens and which qualify for a senior citizen tax deduction pursuant to
the provisions of N.J.S.A. 54:4-8.40 et seq., the rates shall be as follows:
§ 411-4. Fees for water connections. [Added 7-9-2007 by Ord. No. O-27-07]
§ 411-5. Water conservation regulations. [Added 10-13-2015 by Ord. No. O-29-15; amended
11-9-2022 by Ord. No. O-46-22]
Division of Water is authorized to adopt such other rules or regulations necessary to effectuate the
terms of this section.
A.
One-family dwelling: $5 per quarter for 1,100 cubic feet or less.
B.
All other rate provisions, including excess usage rate, shall be set forth above.
A.
The connection fee set forth in Schedule A,2 attached hereto and made a part hereof, shall become
effective upon adoption of this section.
B.
The connection fee set forth in Schedule A shall be recomputed at the end of each fiscal year of the
City, and following a public hearing in accordance with the provisions of N.J.S.A. 40:14A-8(c), shall
be revised to reflect the recomputed connection fee, which shall thereafter be imposed in accordance
with N.J.S.A. 40:14A-8(c).
C.
Every approval for new construction that will connect to the water distribution system of the City will
include, as a condition of said approval, the provision that connection fees in accordance with
Schedule A of this section shall become due and payable to the City prior to the issuance of a
construction permit for said construction, or for those properties for which a building permit has been
obtained at the time of the adoption of this section, prior to the issuance of a certificate of occupancy.
D.
All existing structures which will connect into the water distribution system of the City shall be issued
a permit for water connection only after payment to the City of the applicable connection fee as set
forth in Schedule A.
E.
The City shall provide an application for said connection fee, and upon receipt of each connection
fee, forthwith issue a certificate evidencing payment.
A.
Outdoor landscape water use restrictions. Restrictions on outdoor landscape water use apply to all
users in the City of Rahway at all times regardless of source of supply (e.g., public water supplies,
well or ground water, lakes, streams, or ponds) unless expressly exempt in § 411-5E. Such water use
shall conform to the following outdoor landscape water use restrictions:
(1) Lawn watering with a hose or hose-end sprinkler.
(a)
May only be done two days per week.
[1] Properties may only be watered two days per week. Properties with odd-numbered
2.
Editor's Note: Schedule A is included at the end of this chapter.
City of Rahway, NJ
§ 411-2
RAHWAY CODE
§ 411-5
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addresses may be watered two days per week on Mondays and Thursdays, and
properties with even-numbered addresses may only be watered two days per week
on Tuesdays and Fridays.
(b) Watering shall only be conducted between the hours of 6:00 a.m. and 9:00 a.m. or between
5:00 p.m. and 8:00 p.m.
(c)
The watering of any single area of property shall not exceed 30 minutes per day.
(d) Flowers and shrubs may be watered as needed with a handheld hose equipped with an
automatic shutoff nozzle.
(e)
No hose or hose-end watering shall be permitted when it is raining.
(2) Irrigating lawns and landscapes with automatic irrigation systems equipped with a conventional
irrigation controller [this includes all systems that do not have a "SMART" controller as defined
in § 411-5A(3)].
(a)
May only be done two days per week.
[1] Properties may only irrigate two days per week. Properties with even-number
addresses may only irrigate on Mondays and Thursdays, and properties with odd-
number addresses may only irrigate on Tuesdays and Fridays.
(b) Irrigation shall only be conducted between the hours of 12:00 midnight and 10:00 a.m.
(c)
Operation of any irrigation zone equipped with spray (mist) heads shall not exceed 15
minutes per zone. Operation of any irrigation zone equipped with rotary sprinkler heads
shall not exceed 50 minutes per zone.
(3) Irrigation with systems equipped with a SMART controller.
(a)
To qualify for this provision, the SMART controller must have met the minimum
requirements of IA-SWAT protocol testing. Lists of climate-based and sensor-based
controllers that have successfully completed the protocol testing can be found at
http://www.irrigation.org/Tested_Products.aspx.
(b) The SMART controller must be programmed by an EPA WaterSense Partner who holds a
New Jersey Landscape Irrigation Contractor Certificate pursuant to N.J.S.A. 45:5AA-3.
[1] The SMART controller must be programmed to irrigate between the hours of 12:00
midnight and 10:00 a.m.;
[2] Proper sprinkler head data and accurate soil/plant/irrigation information must be
entered;
[3] The SMART controller programming data shall be posted at the controller;
[4] The Water Sense Partner must make a minimum of two site visits after the initial
programming to adjust and fine tune the irrigation schedule.
(4) Irrigation systems programmed and monitored by an irrigation manager.
(a)
The property owner must designate a qualified person who will be the irrigation manager
and register that person with the municipality with defining qualifications.
City of Rahway, NJ
§ 411-5
WATER
§ 411-5
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(b) The irrigation manager must be an EPA WaterSense Partner or show evidence of
successfully completing one of the approved courses listed below:
[1] Rutgers University Continuing Education Course, Irrigation Systems: Scheduling.
[2] Irrigation Association's online course, Landscape Irrigation: Scheduling.
[3] A comparable course offered by a recognized continuing education facility or
professional association.
(c)
A property-specific irrigation program shall be developed by the irrigation manager based
on plant variety, soil type, exposure, slope, precipitation rate, and irrigation efficiency.
(d) Weekly adjustments shall be made to the irrigation schedule based on current
evapotranspiration (ET) rates or weather conditions.
(e)
If it is found that an irrigation manager does not follow any of the terms prescribed in this
Section, they may be disqualified from acting as a property's irrigation manager.
(5) All automatic irrigation systems:
(a)
Shall be equipped with an operational automatic rain sensor device which disables the
system when a predetermined amount of rainfall has occurred. Each rain sensor device
shall be capable of and programmed to interrupt the automatic irrigation cycle when 1/4
inch of rain has fallen.
(b) Any work performed on a system as a result of any inspection made by the homeowner or
a professional must be in compliance with the Landscape Irrigation Contractor
Certification Act of 1991 (N.J.S.A. 45:5AA-3).
(c)
Flowers and shrubs irrigated with drip or micro irrigation may be watered as needed.
(6) All new irrigation systems must comply with the following:
(a)
The system must be installed by an EPA WaterSense Partner who holds a New Jersey
Landscape Irrigation Contractor Certificate pursuant to N.J.S.A. 45:5AA-3.
(b) New Jersey irrigation best management design practices are listed below:
[1] Designing a system that ensures sufficient operating pressure at the sprinkler head;
[2] Dividing irrigated areas into hydro-zones of turf and plants with similar water
requirements;
[3] Creating zoning systems according to exposure;
[4] Considering the soil type so the sprinkler irrigation precipitation rate is compatible
with the soil infiltration rate or dividing the zone runtimes into multiple short cycles;
[5] Providing separate control of sloped areas;
[6] Preventing sprinkler heads from overthrowing onto driveways, roads, and sidewalks;
[7] Providing for separate irrigation for parkway strips between curbs and sidewalks that
minimizes overthrow onto walks, pavement, and other impervious surfaces;
City of Rahway, NJ
§ 411-5
RAHWAY CODE
§ 411-5
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[8] Using pressure-regulating technology as necessary to ensure sprinkler heads operate
within the manufacturer's recommended range. The pressure regulation may be:
[a]
A pressure regulation device at the point of connection;
[b] Pressure regulation at each remote control valve;
[c]
Pressure regulation at the sprinkler head;
[d] A combination of the above.
[9] Irrigating all flowers and shrubs with drip and/or microirrigation;
[10] Including check valves in low sprinkler heads to prevent low-point drainage;
[11] Having a pressure-regulating device and wye strainer on each drip/micro control
valve.
(c)
Systems must have a SMART controller capable of estimating or measuring depletion of
available plant soil moisture and operating the irrigation system only to replenish the water
as needed while minimizing excess water use.
[1] The SMART controller must be an EPA WaterSense labeled SMART controller and
listed on their website, http://www.epa.gov/watersense/product_search.html, and
select irrigation controllers from the drop-down menu.
[2] The SMART controller must be programmed by an EPA WaterSense Partner who
holds a New Jersey Landscape Irrigation Contractor Certificate pursuant to N.J.S.A.
45:5AA-3.
[a]
Proper sprinkler head data and accurate soil/plant/irrigation information must
be entered;
[b] The SMART controller programming data shall be posted at the controller;
[c]
The WaterSense partner must make a minimum of two site visits after the initial
programming to adjust and fine tune the irrigation schedule.
(7) Upon the declaration of water emergency by the Council of the City of Rahway as stipulated in
§ 411-5F, additional restrictions may be imposed and shall supersede the restrictions in this
section.
(8) State of New Jersey requirements shall supersede those identified in this section when more
stringent than those identified in § 411-5.
B.
Violations.
(1) Violations include knowingly or recklessly watering or irrigating or permitting irrigation of
lawn or landscape on owned, leased, or managed property that results in the following:
(a)
Watering during any form of precipitation;
(b) Water leaking from any irrigation equipment;
(c)
Water puddling on landscaped or impervious surfaces;
City of Rahway, NJ
§ 411-5
WATER
§ 411-5
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(d) Water runoff from irrigated property;
(e)
Irrigating on days not permitted in this section;
(f)
Irrigating at hours not permitted in this section.
(2) Violators of these guidelines and requirements are subject to fines and penalties described in
§ 411-5D.
(3) All water users in the City of Rahway are responsible for preventing the above violations.
C.
Enforcement of water conservation guidelines.
(1) The water use restrictions and automatic rain sensor requirement imposed pursuant to this
section shall be enforced by the City Engineer and/or Code Enforcement Officer.
(2) Whenever the City Engineer and/or Code Enforcement Officer shall observe a violation of the
water use restrictions established in § 411-5A, regardless of the source of the water (public
supply or private source), such authorized official shall issue a written warning and explain the
penalties set forth for a second and third offense, as provided in § 411-5D.
(3) The City Engineer and/or Code Enforcement Officer shall keep such records as may be
reasonable and necessary for the purpose of determining the persons and businesses who have
been warned upon a first offense.
(4) The City Engineer and/or Code Enforcement Officer and/or their designee is hereby duly
authorized to issue summonses for the violation of the water use restrictions imposed pursuant
to § 411-5A.
D.
Penalties.
(1) After a written warning has been issued for a first offense in accordance with § 411-5C above,
any person or business that thereafter violates the water use restrictions imposed pursuant to
§ 411-5A shall be subject to a minimum penalty of $50 for such first violation.
(2) No Municipal Court appearance shall be required for such first violation, unless the person or
business pleads not guilty to the alleged violation.
(3) Each subsequent violation shall be subject to a penalty to be imposed at the discretion of the
Municipal Court Judge.
E.
Exemptions. Restrictions in § 411-5A above do not apply to the following:
(1) Outdoor water use from rainwater harvesting, gray water, or reclaimed water are exempt from
the provisions of the section. Use of gray or reclaimed water must have an approved NJPDES
permit issued through the NJDEP.
(2) Outdoor water use for commercial farms producing harvestable crops, commercial nurseries,
sod farms and golf courses are exempt from the provisions of the section.
(3) Outdoor irrigation necessary for one day only where treatment with an application of chemicals
requires immediate watering to preserve an existing landscape or to establish a new landscape.
(4) Outdoor irrigation necessary for the establishment of newly sodded lawns or landscaping within
the first 21 consecutive days of planting.
City of Rahway, NJ
§ 411-5
RAHWAY CODE
§ 411-5
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(5) Visually supervised operation of an irrigation system by a person in compliance with the New
Jersey Landscape Irrigation Contractor Certification Act of 1991 (N.J.S.A. 45:5AA-1) and at
the minimum rate necessary in order to check system condition and effectiveness.
F.
Declaration of water emergency.
(1) Declaration of water emergency. A water emergency may be declared upon action by a
resolution of the City Council of the City of Rahway:
(a)
Whenever the City Engineer in his or her professional judgment finds that emergency
conditions exist within the City, he or she shall recommend to the City Council that a water
emergency be declared. Said recommendation shall contain findings which specify which
water use restrictions, if any, contained in § 411-5F(2) below are appropriate. Factors that
the City Engineer may consider in making said recommendation include, but are not
limited to, the following:
[1] Lack of precipitation for an extended time period;
[2] Below-average water levels in municipal streams or other surface water bodies;
[3] Declaration of a water emergency by the Governor;
[4] Declaration of a water emergency by a surrounding municipality or municipalities;
[5] Designation by the New Jersey Department of Environmental Protection of a drought
watch or drought warning condition;
[6] Below-average water levels in wells monitored by the United States Geological
Survey, New Jersey Geological Survey, or other wells monitored by agencies of the
United States or New Jersey;
[7] Evidence of low or dirty water yields in private wells in the City; and
[8] Declaration of a water emergency resulting from infrastructure failure or any other
safe drinking water emergency issues.
(b) Upon the receipt of such a recommendation, the City Council may accept the City
Engineer's recommendation and findings, or any portion thereof, and adopt a resolution
declaring a water emergency in the City.
(c)
Such resolution declaring a water emergency may be adopted by the City Council at any
regular, special, adjourned or emergency public meeting of the City Council. Such
resolution shall specify which of the water use restrictions, if any, contained in
§ 411-5F(2) below are being imposed. Such resolution shall be effective immediately upon
publication and shall continue in effect for 90 days, or such lesser time period as may be
specified, unless extended or repealed as set forth in § 411-5F(3) and (4) below.
(2) Water use restrictions. Upon adoption by the City Council of a resolution declaring that a water
emergency exists in the City:
(a)
All citizens shall be urged to observe voluntary indoor conservation measures; and
(b) Water use restrictions, including but not limited to those set forth below, may be included
in a water emergency resolution:
City of Rahway, NJ
§ 411-5
WATER
§ 411-5
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[1] Restricting the watering of all plant growth, except commercially grown food crops,
sod at commercial sod farms, and golf courses and nursery stock at nurseries or retail
outlets;
[2] Restricting the washing of vehicles, except for emergency vehicles, and by a
commercial enterprise whose primary function is car washing, regardless of whether
the operation is mobile or stationary or in those instances where a threat to public
health may exist;
[3] Restricting the washing of driveways, sidewalks, decks, patios or other paved areas;
[4] Restricting the service of water in restaurants, clubs, or eating places, unless
specifically requested by patrons;
[5] Restricting the use of fire hydrants by fire companies for testing fire apparatus and
for Fire Department drills except as the Fire Chief deems necessary in the interest of
public safety;
[6] Restricting the use of fire hydrants by the Department of Public Works, contractors,
and all others, except as necessary for firefighting or protection purposes;
[7] Restricting the use of water for all outdoor recreational purposes;
[8] Restricting the washing of the outside of dwellings, buildings, or other structures,
except windows;
[9] Restricting the operation of any ornamental fountain or other structure making a
similar use of water except as necessary to preserve or support fish and aquatic life;
[10] Restricting the washing of streets by a street sweeper, except in those instances where
reclaimed water for beneficial reuse (RWBR) is authorized under a valid New Jersey
Pollutant Discharge Elimination System (NJPDES) permit; and
[11] Restricting any other water use activity specified by the City Council in the
resolution required by § 411-5F(1)(b) above which is deemed reasonable and
necessary under the circumstances considering the nature and extent of the water
emergency.
(c)
The following restrictions may be imposed on the water uses stated in § 411-5F(2)(b):
[1] Limitation of all outdoor usage which is not strictly prohibited by this section to
between the hours of 6:00 a.m. and 9:00 a.m. or between 5:00 p.m. and 8:00 p.m.;
[2] The watering of any single area shall not exceed 30 minutes per day; and
[3] Any other restriction specified in the resolution adopted by the City Council which
is reasonable under the circumstances considering the nature and extent of the water
emergency.
(d) Any water use restriction imposed pursuant to § 411-5F may be amended by the City
Council to add, alter, or delete any restriction at any time during the water emergency
provided that said amendment shall be adopted by resolution of the City Council.
(e)
Any water use restriction imposed pursuant to § 411-5F shall apply equally to both users
City of Rahway, NJ
§ 411-5
RAHWAY CODE
§ 411-5
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§ 411-6. Replacement of lead service lines within City. [Added 11-21-2023 by Ord. No. O-42-23]
on privately owned wells and users served by a public or semipublic water system.
(f)
Nothing in this section shall be read so as to prohibit, restrict or limit water usage where a
bona fide health emergency exists.
(3) Duration of water emergency. Whenever the City Engineer in his or her professional judgment
finds that the emergency drought conditions in the City have abated prior to the expiration of
the time period specified in the resolution, he or she shall recommend to the City Council of the
City of Rahway that the water emergency cease. Upon such a recommendation to cease, the City
Council may adopt a resolution declaring the water emergency at an end and the water use
restrictions previously imposed as no longer applicable. Otherwise, at the end of the time period
specified in the original resolution, the water use restrictions identified in the original resolution
shall lapse and be inapplicable and unenforceable.
(4) Extension of water emergency time period. If, at the expiration of the time period specified in
the resolution, the City Engineer in his or her professional judgment finds that the emergency
drought conditions have not abated, he or she shall recommend to the City Council that the
water emergency remain in effect. Said recommendation shall specify the duration of the
extension. Whenever the City Council has received such a recommendation, it may accept the
City Engineer's recommendation and findings, or any portion thereof, by adopting a resolution
to extend the water emergency. Said resolution shall specify the duration of the extension, which
shall not be for more than 90 days.
(5) Notice. Reasonable attempts shall be made to notify citizens and residents of the City of the
existence of a water emergency, the restrictions imposed, and the penalties for violations.
G.
Enforcement of water use restrictions. The water use restrictions imposed pursuant to § 411-5F shall
be enforced during a water emergency by the City Engineer, Code Enforcement Officer, and
enforcement personnel in the Department of Public Safety. Whenever these enforcement officials
shall find a violation of the water use restrictions, regardless of the source of the water, these
enforcement officials shall give the violator a written warning explaining the penalties for a violation
of the Code. These enforcement officials shall keep such records as may be reasonable and necessary
for the purpose of determining the persons and businesses who have been issued a written warning.
These enforcement officials are hereby duly authorized to issue summonses for the violation of the
water use restrictions imposed pursuant to this § 411-5F.
H.
Penalties. After a written warning for a first offense in accordance with § 411-5B, any person or
business that thereafter violates the water use restrictions imposed pursuant to this subsection shall be
subject to a minimum penalty of $50 for such first violation. No Municipal Court appearance shall be
required for such first violation, unless the person or business pleads not guilty to the alleged
violation. Each subsequent violation shall be subject to a penalty to be imposed at the discretion of
the Municipal Court Judge.
A.
The City of Rahway, its agents, successors or contractors, hereafter referred to as "the City," are
hereby authorized to enter any property within the City of Rahway to perform a lead service line
replacement pursuant to P.L. 2019, c. 291,3 but shall not enter any part of the property that is not
directly related to performing a lead service line replacement. The service line shall include all piping
3.
Editor's Note: See N.J.S.A. 58:12A-38 et seq.
City of Rahway, NJ
§ 411-5
WATER
§ 411-6
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and fittings connecting the water main to the property and shall include the water meter.
B.
At least one week before entering a property to perform a lead service line replacement, the City shall
notify the owner of record of the property and any occupant of the property of the need for lead
service line replacement.
C.
The City shall make every effort to notify the owner of record and any occupant of the property in
person, but if the owner or occupants are unable to be reached in person, the City shall send, by
certified mail, a notification to the owner and any occupants or post a written notification in a
prominent location on the property.
D.
The notification shall be written in both English and Spanish and shall include:
(1) The scheduled date and time of the lead service line replacement;
(2) Whether City employees will be performing the service line replacement and, if not, the entity
performing the service line replacement;
(3) The extent of any water service disruptions resulting from the service line replacement;
(4) Any locations where occupants can access supplemental drinking water due to any service
disruptions; and
(5) That if the City is unable to gain access to the property in order to replace the lead service line,
no department within the City of Rahway, as permitted by law, shall issue any permits,
approvals, certificates of occupancy, or certificates of approval for continued occupancy for any
property until a lead service line replacement is scheduled.
E.
Upon completion of the lead service line replacement, the City shall send a letter to the owner of the
property confirming the replacement and the date on which the work was performed.
F.
On an ongoing basis, but not later than every 30 days, agents of the City contracted to work on the
lead service line replacement project shall inform the City of Rahway Engineering Department as to
which properties it has successfully performed a lead service line replacement on and which
properties it was unable to perform a lead service line replacement on due to an inability to gain
access to the property.
G.
Where the City is unable to perform a lead service line replacement because of the inability to gain
access to the property, the Department of Property Maintenance shall deny the issuance of a
certificate of occupancy for that property until a lead service line replacement has been performed.
H.
Upon the required notice set forth herein, the owner or occupant of any property that has been
determined to require a lead service line replacement shall permit the City access to the property to
perform said replacement. If the owner or occupant refuses to grant access to the property to perform
the required lead service line replacement, said owner or occupant shall be subject to a fine not to
exceed $2,000. Each day that a violation continues shall be a separate and distinct offense.
City of Rahway, NJ
§ 411-6
RAHWAY CODE
§ 411-6
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CAP
MUNICIPALITY:
COUNTY:
UNION
December 31, 2026
Term Expires
Term Expires
12/31/2028
12/31/2026
4/1/2024
Date of Orig. Appt.
C-1326
Cert. No.
T-8403
Cert. No.
N-0404
Cert. No.
CR00398
Lic. No.
Fax #:
732-388-1536
12/31/2028
12/31/2026
12/31/2026
12/31/2028
12/31/2028
City Hall
1 City Hal Plaza
Rahway, NJ 07065
Sheet A
Joseph D. Gibilisco, President
Jeffrey Brooks, Vice-President
David Brown
Joanna Miles
Jeremy E. Mojica
Al Montesdeoca
Danni Newbury
Vannie Deloris Parson
Karla Timmons
Municipal Officials
Municipal Attorney
{
Official Mailing Address of Municipality
Heather Capone
Municipal Clerk
Angela Vidal
Tax Collector
Frank C. Ruggiero
Chief Financial Officer
Dieter P. Lerch
Registered Municipal Accountant
Louis N. Rainone
12/31/2028
12/31/2028
2025 MUNICIPAL DATA SHEET
Mayor's Name
Name
CITY OF RAHWAY
Governing Body Members
Raymond A. Giacobbe
(MUST ACCOMPANY 2025 BUDGET)
Municipal Budget of the
of
, County of
for the Fiscal Year 2025.
It is hereby certified that the Budget and Capital Budget annexed hereto and hereby made a part
hereof is a true copy of the Budget and Capital Budget approved by resolution of the Governing Body on the
day of
, 2025
and that public advertisement will be made in accordance with the provisions of N.J.S.A. 40A:4-6 and
N.J.A.C. 5:30-4.4(d).
Certified by me, this
9th
day of
, 2025
It is hereby certified that the approved Budget annexed hereto and hereby made
It is hereby certified that the approved Budget annexed hereto and hereby made
a part is an exact copy of the original on file with the Clerk of the Governing Body, that all
a part is an exact copy of the original on file with the Clerk of the Governing Body, that all
additions are correct, all statements contained herein are in proof, and the total of anticipated
additions are correct, all statements contained herein are in proof, the total of anticipated
revenues equals the total of appropriations.
revenues equals the total of appropriations and the budget is in full compliance with the
Local Budget Law, N.J.S.A. 40A:4-1 et seq.
Certified by me, this
day of
, 2025
Certified by me, this
day of
, 2025
It is hereby certified that the amounts to be raised by taxation for local purposes has been
compared with the approved Budget previously certified by me and any changes required as a
condition to such approval have been made. The adopted budget is certified with respect to the
foregoing only.
STATE OF NEW JERSEY
Department of Community Affairs
Director of the Division of Local Government Services
Dated:
, 2025
By:
Frank C. Ruggiero
Clerk
Address
Address
732-827-2000
Sheet 1
DO NOT USE THESE SPACES
Chief Financial Officer
CERTIFICATION OF ADOPTED BUDGET
Fair Lawn, NJ 0711
Address
201-791-7100
Phone Number
(Do not advertise this Certification form)
Registered Municipal Accountant
9th
June
June
9th
Dieter P. Lerch
June
17-17 Route 208N
Address
2025
CITY
UNION
RAHWAY
9th
Heather Capone
1 City Hal Plaza
Rahway, NJ 07065
MUNICIPAL BUDGET
June
Phone Number
Section 1.
Municipal Budget of the
of
, County of
for the Fiscal Year 2025
Be it Resolved, that the following statements of revenues and appropriations shall constitute the Municipal Budget for the year 2025;
Be it Further Resolved, that said Budget be published in the
in the issue of
, 2025
The Governing Body of the
of
does hereby approve the following as the Budget for the year 2025:
RECORDED VOTE
Brooks
(Insert Last Name)
Brown
Mojica
Montesdeoca
Ayes Newbury
Nays
Parson
Gibilisco
Absent
Notice is hereby given that the Budget and Tax Resolution was approved by the
of the
of
, County of
, on
9th
, 2025.
A Hearing on the Budget and Tax Resolution will be held at
, on
14th
, 2025 at
o'clock
P.M. at which time and place objections to said Budget and Tax Resolution for the year 2025 may be presented by taxpayers or other
interested persons.
UNION
7:00
MUNICIPAL BUDGET NOTICE
Abstained
Sheet 2
CITY
Union County Local Source
CITY
RAHWAY
July
UNION
COUNCIL MEMBERS
CITY
City Hall
RAHWAY
June 19th
June
RAHWAY
YEAR 2025
General Appropriations For: (Reference to item and sheet number should be omitted in advertised budget)
XXXXXXXXXXXX
1. Appropriations within "CAPS" -
XXXXXXXXXXXX
(a) Municipal Purposes {(Item H-1, Sheet 19)(N.J.S.A. 40A:4-45.2)}
57,646,038.00
2. Appropriations excluded from "CAPS" -
XXXXXXXXXXXX
(a) Municipal Purposes {(Item H-2, Sheet 28)(N.J.S.A. 40A:4-53.3 as amended)}
11,936,794.00
(b) Local District School Purposes in Municipal Budget (Item K, Sheet 29)
-
Total General Appropriations excluded from "CAPS" (Item O, Sheet 29)
11,936,794.00
3. Reserve for Uncollected Taxes (Item M, Sheet 29) Based on Estimated
97.80%
Percent of Tax Collections
2,500,000.00
Building Aid Allowance
2025 - $
4. Total General Appropriations (Item 9, Sheet 29)
for Schools-State Aid
2024 - $
72,082,832.00
5. Less: Anticipated Revenues Other Than Current Property Tax (Item 5, Sheet 11) (i.e. Surplus, Miscellaneous Revenues and Receipts from Delinquent Taxes)
26,625,093.00
6. Difference: Amount to be Raised by Taxes for Support of Municipal Budget (as follows)
XXXXXXXXXXXX
(a) Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes (Item 6(a), Sheet 11)
44,004,354.00
(b) Addition to Local District School Tax (Item 6(b), Sheet 11)
-
(c) Minimum Library Tax
1,453,385.00
EXPLANATORY STATEMENT
SUMMARY OF CURRENT FUND SECTION OF APPROVED BUDGET
Sheet 3
General
Water
Sewer
Parking
Budget
Utility
Utility
Utility
Utility
Utility
Utility
Budget Appropriations - Adopted Budget
71,022,201.00
9,930,000.00
7,288,000.00
2,558,000.00
-
-
-
Budget Appropriations Added by N.J.S.A. 40A:4-87
249,087.00
Emergency Appropriations
1,270,000.00
-
-
-
-
-
-
Total Appropriations
72,541,288.00
9,930,000.00
7,288,000.00
2,558,000.00
-
-
-
Expenditures:
Paid or Charged (Including Reserve for
Uncollected Taxes)
69,183,374.00
9,903,600.00
7,173,274.00
2,514,700.00
-
-
-
Reserved
3,352,912.00
20,571.00
111,122.00
42,200.00
-
-
-
Unexpended Balances Canceled
5,002.00
5,829.00
3,604.00
1,100.00
-
-
-
Total Expenditures and Unexpended
Balances Canceled
72,541,288.00
9,930,000.00
7,288,000.00
2,558,000.00
-
-
-
Overexpenditures *
-
-
-
-
-
-
-
Sheet 3a
EXPLANATORY STATEMENT - (Continued)
SUMMARY OF 2024 APPROPRIATIONS EXPENDED AND CANCELED
Total General Appropriations for 2024
71,022,201.00
Allowable Operating Appropriations before
Cap Base Adjustment:
383,811.00
Additional Exceptions per (N.J.S.A. 40A:4-45.3)
57,095,366.93
Subtotal
71,406,012.00
Exceptions Less:
Additions:
Total Other Operations
2,267,236.00
New Construction (Assessor Certification)
1,084,364.49
Total Uniform Construction Code
2023 Cap Bank Available
676,063.00
Total Interlocal Service Agreement
2024 Cap Bank Available
720,591.00
Total Additional Appropriations
Total Capital Improvements
500,000.00
Total Debt Service
7,209,419.00
Transferred to Board of Education
Total Additions
2,481,018.49
Type I School Debt
Total Public & Private Programs
416,560.00
Maximum Appropriations within "CAPS" Sheet 19 @
2.5%
59,576,385.42
Judgements
Total Deferred Charges
3,060,000.00
Cash Deficit
Additional Increase to COLA rate.
3.5%
Reserve for Uncollected Taxes
2,250,000.00
Amount of Increase allowable.
1.0%
557,027.97
Total Exceptions
15,703,215.00
Amount on Which CAP is Applied
55,702,797.00
2.5% CAP
1,392,569.93
Maximum Appropriations within "CAPS" Sheet 19 @
3.5%
60,133,413.39
Allowable Operating Appropriations before
Additional Exceptions per (N.J.S.A. 40A:4-45.3)
57,095,366.93
Total General Appropriations for Municipal Purposes
57,646,038.00
(Sheet 19, H-1)
Over or (Under) Appropriations Cap
(2,487,375.39)
NOTE:
MANDATORY MINIMUM BUDGET MESSAGE MUST INCLUDE A SUMMARY OF:
1. HOW THE "CAP" WAS CALCULATED. (Explain in words what the "CAPS" mean and show the figures.)
2. A SUMMARY BY FUNCTION OF THE APPROPRIATIONS THAT ARE SPREAD AMONG MORE THAN ONE OFFICIAL LINE ITEM
(e.g. if Police S & W appears in the regular section and also under "Operation Excluded from "CAPS" section, combine the
figures for purposes of citizen understanding.)
BUDGET MESSAGE
EXPLANATORY STATEMENT - (Continued)
Sheet 3b
CAP CALCULATION
CAP CALCULATION
Following is a recap of the Municipality's Employee Group Insurance
Estimated Group Insurance Costs - 2025
12,200,000.00
$
Estimated Amounts to be Contributed by Employees:
Contribution from all eligible emp.
1,600,000.00
Budgeted Group Insurance - Inside CAP
9,783,280.00
Budgeted Group Insurance - Utilities
70,000.00
Budgeted Group Insurance - Outside CAP
793,720.00
TOTAL
10,647,000.00
Instead of receiving Health Benefits,
30 employees
have elected an opt-out for 2025. This opt-out amount
is budgeted separately.
Health Benefits Waiver
Salaries and Wages
150,000.00
$
EXPLANATORY STATEMENT - (Continued)
BUDGET MESSAGE
RECAP OF GROUP INSURANCE APPROPRIATION
Sheet 3b (2)
ADJUSTED TAX LEVY PRIOR TO EXCLUSIONS
42,554,803.92
Exclusions:
Allowable Shared Service Agreements Increase
Allowable Health Insurance Costs Increase
981,860.00
Allowable Pension Obligations Increases
Allowable LOSAP Increase
Allowable Capital Improvements Increase
Allowable Debt Service and Capital Leases Inc.
2,276,448.00
Recycling Tax appropriation
Deferred Charge to Future Taxation Unfunded
Current Year Deferred Charges: Emergencies
-
Add Total Exclusions
3,258,308.00
Less Cancelled or Unexpended Waivers
Less Cancelled or Unexpended Exclusions
5,002.00
ADJUSTED TAX LEVY
45,808,109.92
LEVY CAP CALCULATION
Additions:
New Ratables - Increase for new construction
36,498,300
Prior Year Amount to be Raised by Taxation
42,390,396.00
Prior Year's Local Purpose Tax Rate (per $100)
2.971
Less:
New Ratable Adjustment to Levy
1,084,364.49
Less: Prior Year Deferred Charges to Future Taxation Unfunded
Amounts approved by Referendum
Less: Prior Year Deferred Charges: Emergencies
670,000.00
Levy CAP Bank Applied
Less: Prior Year Recycling Tax
Less:
MAXIMUM ALLOWABLE AMOUNT TO BE RAISED BY TAXATION
46,892,474.41
Less:
Net Prior Year Tax Levy for Municipal Purpose Tax for CAP Calculation
41,720,396.00
AMOUNT TO BE RAISED BY TAXATION FOR MUNICIPAL PURPOSES
44,004,354.00
Plus 2% CAP Increase
834,407.92
ADJUSTED TAX LEVY
42,554,803.92
OVER OR (UNDER) 2% LEVY CAP
(2,888,120.41)
Plus: Assumption of Service/Function
(must be equal or under for Introduction)
ADJUSTED TAX LEVY PRIOR TO EXCLUSIONS
42,554,803.92
SUMMARY LEVY CAP CALCULATION
Sheet 3 - Levy CAP
P.L. 2007, c. 62, was amended by P.L. 2008 c. 6 and P.L. 2010 c. 44 (S-29 R1).
The last amendment reduces the 4% to 2% and modifies some of the exceptions and
exclusions. It also removes the LFB waiver. The voter referendum now requires a vote in
excess of only 50% which is reduced from the original 60% in P.L. 2007, c. 62.
EXPLANATORY STATEMENT - (Continued)
BUDGET MESSAGE
NEW JERSEY 2010 LOCAL UNIT LEVY CAP LAW
"2010" LEVY CAP BANKS:
2022
Maximum Allowable Amount to be Raised by Taxation
39,452,094
Amount to be Raised by Taxation for Municipal Purpose
38,299,841
Available for Banking (CY 2025)
1,152,253
Amount Used in CY 2025
Balance to Expire
1,152,253
2023
Maximum Allowable Amount to be Raised by Taxation
40,987,523
Amount to be Raised by Taxation for Municipal Purpose
40,136,938
Available for Banking (CY 2025 - CY 2026)
850,585
Amount Used in CY 2025
Balance to Carry Forward (CY 2026)
850,585
2024
Maximum Allowable Amount to be Raised by Taxation
42,390,396
Amount to be Raised by Taxation for Municipal Purpose
42,390,396
Available for Banking (CY 2025 - CY 2027)
-
Amount Used in CY 2025
Balance to Carry Forward (CY 2026 - CY2027)
-
2025
Maximum Allowable Amount to be Raised by Taxation
46,892,474
Amount to be Raised by Taxation for Municipal Purpose
44,004,354
Available for Banking (CY 2026 - CY 2028)
2,888,120
Total Levy CAP Bank
3,738,705
EXPLANATORY STATEMENT - (Continued)
BUDGET MESSAGE
Sheet 3d
Realized in
FCOA
2025
2024
Cash in 2024
1.
Surplus Anticipated
08-101
3,300,000.00
3,000,000.00
3,000,000.00
2.
Surplus Anticipated with Prior Written Consent of Director of Local Government Services
08-102
Total Surplus Anticipated
08-100
3,300,000.00
3,000,000.00
3,000,000.00
3.
Miscellaneous Revenues - Section A: Local Revenues
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Licenses:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Alcoholic Beverages
08-103
60,000.00
55,000.00
63,550.00
Other
08-104
15,000.00
13,000.00
26,525.00
Fees and Permits
08-105
150,000.00
122,000.00
235,316.00
Fines and Costs:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Municipal Court
08-110
400,000.00
390,000.00
420,994.00
Other
08-109
Interest and Costs on Taxes
08-112
350,000.00
345,000.00
359,261.00
Interest and Costs on Assessments
08-115
Parking Meters
08-111
Interest on Investments and Deposits
08-113
1,400,000.00
818,000.00
1,502,715.00
Anticipated Utility Operating Surplus
08-114
Water Utility
08-114
1,055,308.00
913,933.00
913,933.00
Sewer Utility
08-114
Parking Utility
08-114
442,000.00
1,176,000.00
1,176,000.00
Police Department Fees
08-134
120,000.00
120,000.00
128,856.00
CURRENT FUND - ANTICIPATED REVENUES
Sheet 4
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section A: Local Revenues (continued)
Vacant/Foreclosure House Registration
08-129
175,000.00
170,000.00
192,620.00
Planning Board Application Fees
08-146
6,000.00
25,000.00
6,853.00
Street Opening Permits
08-229
59,000.00
80,000.00
59,038.00
UCC Penalties
08-231
75,000.00
60,000.00
123,950.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 4a
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section A: Local Revenues (continued)
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Anticipated
GENERAL REVENUES
Sheet 4b
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section A: Local Revenues (continued)
Total Section A: Local Revenue
08-001
4,307,308.00
4,287,933.00
5,209,611.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Anticipated
GENERAL REVENUES
Sheet 4c
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section B: State Aid Without Offsetting Appropriations
Transitional Aid
09-212
Energy Receipts Tax (P.L. 1997, Chapters 162 & 167)
09-202
4,056,777.00
4,056,777.00
4,056,777.00
Garden State Trust
09-206
Watershed Aid
09-207
Reserve for Municipal Relief Fund Aid
09-208
418,158.00
418,158.00
Total Section B: State Aid Without Offsetting Appropriations
09-001
4,056,777.00
4,474,935.00
4,474,935.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 5
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section C: Dedicated Uniform Construction Code Fees
Offset with Appropriations (N.J.S.A. 40A:4-36 and N.J.A.C. 5:23-4.17)
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Uniform Construction Code Fees
08-160
650,000.00
559,000.00
1,297,418.00
Special Item of General Revenue Anticipated with Prior Written
Consent of Director of Local Government Services:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Additional Dedicated Uniform Construction Code Fees Offset with Appropriations
(N.J.S.A. 40A:4-45.3h and N.J.A.C. 5:23-4.17)
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Uniform Construction Code Fees
08-160
Total Section C: Dedicated Uniform Construction Code Fees Offset with Appropriations
08-002
650,000.00
559,000.00
1,297,418.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Anticipated
GENERAL REVENUES
Sheet 6
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section D: Special Items of General Revenue Anticipated
With Prior Written Consent of the Director of Local Government Services
Shared Service Agreements Offset With Appropriations:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
UCC - Fanwood
11-102
66,000.00
Tax Assessor - Highland Park
11-103
42,000.00
Special Improvement District
11-104
125,000.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Anticipated
GENERAL REVENUES
Sheet 7
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section D: Special Items of General Revenue Anticipated
With Prior Written Consent of the Director of Local Government Services
Shared Service Agreements Offset With Appropriations:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Anticipated
GENERAL REVENUES
Sheet 7a
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section D: Special Items of General Revenue Anticipated
With Prior Written Consent of the Director of Local Government Services
Shared Service Agreements Offset With Appropriations:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Total Section D: Shared Service Agreements Offset With Appropriations
11-001
233,000.00
-
-
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 7b
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section E: Special Items of General Revenue Anticipated
With Prior Written Consent of the Director of Local Government Services -
Additional Revenues Offset with Appropriations (N.J.S.A. 40A:4-45.3h):
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Total Section E: Special Item of General Revenue Anticipated with Prior Written
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Consent of Director of Local Government Services - Additional Revenues
08-003
-
-
-
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 8
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section F: Special Items of General Revenue Anticipated
With Prior Written Consent of Director of Local Government Services - Public and
Private Revenues Offset with Appropriations:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Recycling Tonnage
10-569
19,199.00
29,605.00
29,605.00
Body Armor Replacement Program
10-505
5,683.00
5,683.00
Clean Communities Program
10-602
68,877.00
60,640.00
60,640.00
Multiple Housing Inspection Program
10-679
5,857.00
11,794.00
11,794.00
Grahill Charitable Trust
12-501
10,000.00
-
CLEP Grant
12-801
32,559.00
15,500.00
15,500.00
Recreation - Dog Park
10-634
375,000.00
-
Kids Recreation Grant
12-852
71,071.00
133,000.00
133,000.00
Strengthening Local Health Capacity
10-621
234,936.00
74,664.00
74,664.00
Municipal Alliance on Alcoholism and Drug Abuse
10-506
8,321.00
7,424.00
7,424.00
Alcohol Education and Rehabilitation
10-507
13,253.00
13,253.00
National Opioid Settlement
10-711
64,496.00
7,179.00
7,179.00
Local Recreation Improvement
10-671
70,000.00
70,000.00
Selective Enforcement Management
10-510
42,000.00
42,000.00
Emergency Management
10-537
10,000.00
10,000.00
Stormwater Assistance
10-564
15,000.00
15,000.00
Local Public Health Infrastructure
10-693
194,145.00
168,049.00
168,049.00
State Forestry Grant
10-599
45,200.00
-
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 9
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section F: Special Items of General Revenue Anticipated
With Prior Written Consent of Director of Local Government Services - Public and
Private Revenues Offset with Appropriations (Continued):
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Distracted Driving
10-508
2,100.00
-
Pedestrian Safety
10-504
3,500.00
-
Green the Streets
10-594
1,500.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Section F: Special Item of General Revenue Anticipated with Prior Written
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Consent of Director of Local Government Services - Public and Private Revenues
10-001
1,136,761.00
663,791.00
663,791.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 9i
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section G: Special Items of General Revenue Anticipated
With Prior Written Consent of Director of Local Government Services - Other Special
Items:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Utility Operating Surplus of Prior Year
08-116
Water Utility
08-116
1,000,000.00
1,295,000.00
1,295,000.00
Sewer Utility
08-116
500,000.00
Parking Utility
08-116
750,000.00
500,000.00
500,000.00
PILOT - Lower Essex St - Denholtz Management
08-130
530,000.00
500,000.00
533,069.00
PILOT - Rosegate
08-130
25,000.00
15,000.00
26,796.00
PILOT - Senior Citizen Housing
08-130
340,000.00
340,000.00
352,104.00
PILOT - Housing Authority
08-130
60,000.00
PILOT - Meyers Sr. Residence
08-130
20,000.00
30,000.00
20,498.00
PILOT - Metro
08-130
93,000.00
155,000.00
93,275.00
PILOT - Waters Edge
08-130
427,000.00
585,000.00
432,186.00
PILOT - Lafeyette
08-130
272,000.00
265,000.00
272,890.00
PILOT -Reva
08-130
269,000.00
550,000.00
269,756.00
PILOT - Artist Housing
08-130
18,000.00
18,000.00
28,431.00
PILOT - Dornoch/Mint
08-130
500,000.00
360,000.00
504,485.00
PILOT - RWJ Hospital
08-130
540,000.00
291,668.00
1,250,789.00
PILOT - Meridia Brownstones
08-130
296,000.00
624,000.00
296,757.00
PILOT - Grammercy
08-130
92,000.00
Police Outside Duty - Administrative Fees
08-133
9,000.00
18,000.00
9,432.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 10
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
3.
Miscellaneous Revenues - Section G: Special Items of General Revenue Anticipated
With Prior Written Consent of Director of Local Government Services - Other Special
Items:
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Hotel Fees
08-243
300,000.00
240,000.00
343,263.00
Cable TV Franchise Fee
08-117
77,747.00
85,000.00
79,897.00
Cellular Phone Tower Fees
08-240
300,000.00
300,000.00
301,402.00
Solid Waste Fees - Rahway Housing Authority
08-240
10,000.00
30,000.00
10,401.00
Solid Waste Fees - Rahway Board of Education
08-240
6,000.00
Outside Health Services - Winfield
08-241
8,500.00
8,300.00
8,531.00
UCUA - Host Community Fees
08-132
2,350,000.00
2,350,000.00
2,367,596.00
UCUA - Host Community Fees - Excess Tonnage
08-132
450,000.00
450,000.00
482,661.00
General Capital Fund Balance
08-228
1,754,000.00
4,060,000.00
4,060,000.00
Uniform Fire Safety Act Fees
08-106
92,000.00
Local Cannibis Tax Revenue
08-240
58,000.00
Total Section G: Special Items of General Revenue Anticipated with Prior Written
XXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Consent of Director of Local Government Services - Other Special Items
08-004
11,141,247.00
13,075,968.00
13,539,219.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 10n
Anticipated
GENERAL REVENUES
Realized in
FCOA
2025
2024
Cash in 2024
Summary of Revenues
XXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
1.
Surplus Anticipated (Sheet 4, #1)
08-101
3,300,000.00
3,000,000.00
3,000,000.00
2.
Surplus Anticipated with Prior Written Consent of Director of Local Government Services (Sheet 4, #2)
08-102
-
-
-
3.
Miscellaneous Revenues:
XXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
Total Section A:
Local Revenues
08-001
4,307,308.00
4,287,933.00
5,209,611.00
Total Section B:
State Aid Without Offsetting Appropriations
09-001
4,056,777.00
4,474,935.00
4,474,935.00
Total Section C:
Dedicated Uniform Construction Code Fees Offset with Appropriations
08-002
650,000.00
559,000.00
1,297,418.00
Total Section D:
Special Items of General Revenue Anticipated with Prior Written Consent of Director of Local
Government Services - Shared Service Agreements
11-001
233,000.00
-
-
Total Section E:
Special Items of General Revenue Anticipated with Prior Written Consent of Director of Local
Government Services - Additional Revenues
08-003
-
-
-
Total Section F:
Special Items of General Revenue Anticipated with Prior Written Consent of Director of Local
Government Services - Public and Private Revenues
10-001
1,136,761.00
663,791.00
663,791.00
Total Section G:
Special Items of General Revenue Anticipated with Prior Written Consent of Director of Local
Government Services - Other Special Items
08-004
11,141,247.00
13,075,968.00
13,539,219.00
Total Miscellaneous Revenues
13-099
21,525,093.00
23,061,627.00
25,184,974.00
4.
Receipts from Delinquent Taxes
15-499
1,800,000.00
1,500,000.00
1,457,648.00
5.
Subtotal General Revenues (Items 1, 2, 3 and 4)
13-199
26,625,093.00
27,561,627.00
29,642,622.00
6.
Amount to be Raised by Taxes for Support of Municipal Budget:
XXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
a) Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes
07-190
44,004,354.00
42,390,396.00
XXXXXXXXXXX
b) Addition to Local District School Tax
07-191
-
-
XXXXXXXXXXX
c) Minimum Library Tax
07-192
1,453,385.00
1,319,265.00
XXXXXXXXXXX
Total Amount to be Raised by Taxes for Support of Municipal Budget
07-199
45,457,739.00
43,709,661.00
45,039,483.00
7.
Total General Revenues
13-299
72,082,832.00
71,271,288.00
74,682,105.00
CURRENT FUND - ANTICIPATED REVENUES - (Continued)
Sheet 11
Anticipated
GENERAL REVENUES
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
General Government
-
-
General Administration
20-100
-
-
Salaries and Wages
20-100
1
433,000.00
973,000.00
938,000.00
920,092.00
17,908.00
Other Expenses
20-100
2
475,000.00
1,025,000.00
1,125,000.00
1,119,052.00
5,948.00
Public Relations
-
-
Salaries and Wages
20-100
1
100,000.00
-
-
Other Expenses
20-100
2
185,000.00
-
-
Insurance
-
-
Salaries and Wages
20-100
1
278,000.00
-
-
Arts & Culture
-
-
Salaries and Wages
20-100
1
125,000.00
-
-
Other Expenses
20-100
2
160,000.00
-
-
Mayor's Office
20-110
-
-
Salaries and Wages
20-110
1
72,000.00
72,000.00
72,000.00
71,996.00
4.00
Municipal Council
20-110
-
-
Salaries and Wages
20-110
1
75,000.00
75,000.00
75,000.00
74,021.00
979.00
Other Expenses
20-110
2
1,000.00
1,000.00
1,000.00
245.00
755.00
City Clerk
20-120
-
-
Salaries and Wages
20-120
1
290,000.00
284,000.00
264,000.00
254,928.00
9,072.00
Other Expenses
20-120
2
86,000.00
86,000.00
86,000.00
59,547.00
26,453.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 12
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
General Government (Continued)
-
-
Financial Administration (Treasury)
20-130
-
-
Salaries and Wages
20-130
1
626,000.00
574,000.00
574,000.00
546,333.00
27,667.00
Other Expenses
20-130
2
1,340,000.00
1,343,000.00
1,403,000.00
1,398,769.00
4,231.00
-
-
Audit Services
20-135
2
70,000.00
70,000.00
70,000.00
70,000.00
-
-
-
Revenue Administration (Tax Collection)
20-145
-
-
Salaries and Wages
20-145
1
240,000.00
223,000.00
223,000.00
222,785.00
215.00
Other Expenses
20-145
2
30,000.00
50,000.00
25,000.00
8,508.00
16,492.00
-
-
Tax Assessment Administration
20-150
-
-
Salaries and Wages
20-150
1
237,000.00
234,000.00
209,000.00
207,207.00
1,793.00
Other Expenses
20-150
2
63,000.00
50,000.00
50,000.00
45,624.00
4,376.00
-
-
Legal Services
20-155
-
-
Salaries and Wages
20-155
1
186,000.00
141,000.00
96,000.00
94,296.00
1,704.00
Other Expenses
20-155
2
650,000.00
850,000.00
650,000.00
607,346.00
42,654.00
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 13
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
General Government (Continued)
-
-
Division of Engineering
20-165
-
-
Salaries and Wages
20-165
1
354,000.00
380,000.00
421,000.00
420,298.00
702.00
Other Expenses
20-165
2
660,000.00
660,000.00
660,000.00
658,965.00
1,035.00
-
-
Economic Development
20-170
-
-
Salaries and Wages
20-170
1
262,000.00
132,000.00
132,000.00
82,071.00
49,929.00
Other Expenses
20-170
2
182,000.00
155,000.00
155,000.00
56,365.00
98,635.00
-
-
Land Use Administration
-
-
Planning Board
21-180
-
-
Salaries and Wages
21-180
1
6,000.00
4,200.00
4,200.00
4,039.00
161.00
Other Expenses
21-180
2
20,000.00
20,000.00
20,000.00
6,905.00
13,095.00
Zoning Board of Adjustment
21-185
-
-
Salaries and Wages
21-185
1
5,000.00
4,200.00
4,200.00
4,039.00
161.00
Other Expenses
21-185
2
20,000.00
20,000.00
20,000.00
11,996.00
8,004.00
Property Maintenance
-
-
Salaries and Wages
21-181
1
330,000.00
226,000.00
208,000.00
200,945.00
7,055.00
Other Expenses
21-181
2
36,000.00
30,000.00
30,000.00
29,600.00
400.00
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 14
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Insurance
-
-
Other Insurance
23-210
2
1,808,017.00
1,345,500.00
916,200.00
756,418.00
159,782.00
Employee Group Insurance
23-220
2
9,783,280.00
9,433,840.00
9,310,840.00
8,391,350.00
919,490.00
Health Benefit Waiver
23-222
2
150,000.00
150,000.00
150,000.00
150,000.00
-
-
-
Public Safety
-
-
Police Department
25-240
-
-
Salaries and Wages
25-240
1
9,557,000.00
8,940,000.00
850,000.00
10,352,000.00
9,792,422.00
559,578.00
Salaries and Wages-Emergency
25-240
1
-
-
Other Expenses
25-240
2
495,000.00
544,000.00
634,000.00
627,068.00
6,932.00
Office of Emergency Management
25-252
-
-
Salaries and Wages
25-252
1
102,000.00
106,000.00
108,000.00
107,770.00
230.00
Other Expenses
25-252
2
30,000.00
30,000.00
30,000.00
29,834.00
166.00
-
-
Fire Department
25-265
-
-
Salaries and Wages
25-265
1
6,772,000.00
6,209,000.00
270,000.00
6,539,000.00
6,363,595.00
175,405.00
Other Expenses
25-265
2
358,000.00
286,000.00
286,000.00
285,779.00
221.00
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 15
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Public Works
-
-
Department of Public Works
26-290
-
-
Salaries and Wages
26-290
1
2,615,000.00
2,721,000.00
150,000.00
3,001,000.00
2,753,869.00
247,131.00
Other Expenses
26-290
2
1,448,000.00
1,552,000.00
1,552,000.00
1,290,025.00
261,975.00
-
-
-
-
-
-
Division of Solid Waste & Recycling
26-305
-
-
Salaries and Wages
26-305
1
1,512,000.00
1,512,000.00
1,482,000.00
1,414,938.00
67,062.00
Other Expenses
26-305
2
1,632,000.00
1,694,000.00
1,694,000.00
1,513,507.00
180,493.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 15a
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Health and Human Services
-
-
Department of Health and Welfare
27-330
-
-
Salaries and Wages
27-330
1
804,000.00
855,000.00
705,000.00
701,453.00
3,547.00
Other Expenses
27-330
2
301,000.00
306,000.00
306,000.00
292,754.00
13,246.00
-
-
Environmental Commission
-
-
Salaries and Wages
27-335
1
4,000.00
4,000.00
4,000.00
3,975.00
25.00
Other Expenses
27-335
2
2,000.00
1,500.00
1,500.00
1,497.00
3.00
-
-
Parks and Recreation
-
-
Recreation Department
28-370
-
-
Salaries and Wages
28-370
1
1,093,000.00
1,041,000.00
1,141,000.00
1,048,252.00
92,748.00
Other Expenses
28-370
2
735,000.00
428,000.00
468,000.00
448,858.00
19,142.00
-
-
Community Services - Senior Services
28-371
-
-
Salaries and Wages
28-371
1
309,000.00
297,000.00
274,000.00
271,615.00
2,385.00
Other Expenses
28-371
2
75,000.00
69,000.00
71,000.00
69,502.00
1,498.00
Social Justice Commission
-
-
Salaries and Wages
28-372
1
5,000.00
5,000.00
5,100.00
5,090.00
10.00
Other Expenses
28-372
2
30,000.00
50,000.00
50,000.00
49,149.00
851.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 15b
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Municipal Court
43-490
-
-
Salaries and Wages
43-490
1
896,000.00
806,000.00
706,000.00
681,874.00
24,126.00
Other Expenses
43-490
2
59,000.00
87,000.00
87,000.00
70,806.00
16,194.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 15c
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Uniform Construction Code - Appropriations
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Offset by Dedicated Revenues (N.J.A.C. 5:23-4.17)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
State Uniform Construction Code
Construction Official
Salaries and Wages
22-195
1
644,000.00
646,000.00
675,000.00
674,875.00
125.00
Other Expenses
22-195
2
75,000.00
75,000.00
77,000.00
75,375.00
1,625.00
-
-
Municipal A.B.C. Board
-
-
Salaries and Wages
22-196
1
6,000.00
6,000.00
6,200.00
6,131.00
69.00
Other Expenses
22-196
2
2,000.00
1,500.00
1,500.00
1,473.00
27.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 16
XXXXXX
XXXXXX
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Uniform Construction Code - Appropriations
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Offset by Dedicated Revenues (N.J.A.C. 5:23-4.17)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sheet 16a
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
XXXXXX
XXXXXX
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
UNCLASSIFIED:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Utility Expenses and Bulk Purchases
-
-
Electricity
31-430
2
390,000.00
370,000.00
370,000.00
327,740.00
42,260.00
Street Lighting
31-435
2
720,000.00
575,000.00
575,000.00
428,982.00
146,018.00
Telephone
31-440
2
150,000.00
178,000.00
153,000.00
132,961.00
20,039.00
Heating Fuels
31-446
2
120,000.00
120,000.00
120,000.00
101,779.00
18,221.00
-
-
Contribution to Rahway Redevelopment Agency
30-411
2
250,000.00
100,000.00
100,000.00
100,000.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
Sheet 17
XXXXXX
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - within "CAPS" - (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
UNCLASSIFIED:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Operations {Item 8(A)} within "CAPS"
34-199
50,529,297.00
48,226,740.00
1,270,000.00
49,466,740.00
46,146,688.00
3,320,052.00
B.
Contingent
35-470
2
XXXXXXXXXX
-
-
34-201
50,529,297.00
48,226,740.00
1,270,000.00
49,466,740.00
46,146,688.00
3,320,052.00
Detail:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
34-201
1
27,938,000.00
26,470,400.00
1,270,000.00
28,218,700.00
26,928,909.00
1,289,791.00
Other Expenses (Including Contingent)
34-201
2
22,591,297.00
21,756,340.00
-
21,248,040.00
19,217,779.00
2,030,261.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 17a
XXXXXX
FCOA
Total Operations Including Contingent - within "CAPS"
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
(E)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
(1) DEFERRED CHARGES
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations
46-870
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
Prior Year Bills
46-860
2
XXXXXXXXXX
-
XXXXXXXXXX
PSE&G
46-860
2
9,040.00
XXXXXXXXXX
9,040.00
9,040.00
XXXXXXXXXX
Kessler
46-860
2
2,900.00
XXXXXXXXXX
2,900.00
2,900.00
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 18
XXXXXX
XXXXXX
FCOA
Deferred Charges and Statutory Expenditures -
Municipal within "CAPS"
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
(E)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
(1) DEFERRED CHARGES
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
Sheet 18a
FCOA
XXXXXX
XXXXXX
Deferred Charges and Statutory Expenditures -
Municipal within "CAPS"
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
(E)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
(2) STATUTORY EXPENDITURES:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Contribution to:
Public Employees' Retirement System
36-471
1,466,697.00
1,496,406.00
1,496,406.00
1,484,406.00
12,000.00
Social Security System (O.A.S.I.)
36-472
1,070,000.00
1,030,000.00
1,060,000.00
1,057,294.00
2,706.00
Consolidated Police & Fireman's Pension Fund
36-474
-
-
Police and Firemen's Retirement System of NJ
36-475
4,555,044.00
4,528,900.00
4,528,900.00
4,528,900.00
-
23-225
-
-
Pension Adjustment Fund
36-476
-
-
-
-
-
-
Defined Contribution Retirement Program (DCRP)
36-477
25,000.00
25,000.00
25,000.00
15,425.00
9,575.00
-
-
34-209
7,116,741.00
7,092,246.00
-
7,122,246.00
7,097,965.00
24,281.00
(F) Judgments
37-480
-
XXXXXXXXXX
(G) Cash Deficit of Preceding Year
46-855
-
-
34-299
57,646,038.00
55,318,986.00
1,270,000.00
56,588,986.00
53,244,653.00
3,344,333.00
FCOA
XXXXXX
XXXXXX
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Deferred Charges and Statutory Expenditures -
Municipal within "CAPS" - (continued)
Sheet 19
(H-1)
Unemployment Compensation Insurance
(N.J.S.A. 43:21-3 et seq.)
Total Deferred Charges and Statutory Expenditures -
Municipal within "CAPS"
Total General Appropriations for Municipal
Purposes within "CAPS"
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Public Safety
-
-
Police Dispatch/911
-
-
Salary and Wages
25-251
1
324,000.00
313,000.00
313,000.00
304,421.00
8,579.00
Other Expenses
25-251
2
219,000.00
155,000.00
155,000.00
155,000.00
-
-
-
Education Functions
-
-
Municipal Library
29-390
-
-
Maintenance of Free Public Library
29-390
2
1,453,385.00
1,319,265.00
1,319,265.00
1,319,265.00
-
-
-
Insurance
-
-
Employee Group Insurance
23-221
2
793,720.00
96,160.00
96,160.00
96,160.00
-
Other Insurance
23-210
2
78,983.00
383,811.00
383,811.00
383,811.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 20
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Other Operations - Excluded from "CAPS"
34-300
2,869,088.00
2,267,236.00
-
2,267,236.00
2,258,657.00
8,579.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 20a
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Uniform Construction Code
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Uniform Construction Code Appropriations
22-999
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 21
Appropriations Offset by Increased Fee
Revenues (N.J.A.C. 5:23-4.17)
FCOA
XXXXXX
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Shared Service Agreements
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
Sheet 22
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Shared Service Agreements
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
Sheet 22a
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Shared Service Agreements
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Interlocal Municipal Service Agreements
42-999
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 22b
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34-303
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 23
Additional Appropriations Offset by
Revenues (N.J.S.A. 40A:4-45.3h)
Total Additional Appropriations Offset
by Revenues (N.J.S.A. 40A:4-45.3h)
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Public and Private Programs Offset by Revenues
Matching Funds for Grants
41-899
-
-
-
Body Armor Replacement Program
41-505
2
5,683.00
5,683.00
5,683.00
-
Municipal Alliance of Alcoholism and Drug Abuse
41-506
2
8,321.00
7,424.00
7,424.00
7,424.00
-
Recreation Grant - Dog Park
41-510
2
375,000.00
-
-
-
Clean Communities Program
41-602
2
68,877.00
60,640.00
60,640.00
60,640.00
-
Multiple Housing Inspection Program
41-679
2
5,857.00
11,794.00
11,794.00
11,794.00
-
Pedestrian Safety
41-739
2
3,500.00
-
-
-
Recycling Tonnage
41-569
2
19,199.00
29,605.00
29,605.00
29,605.00
-
Alcohol Education and Rehabilitation
41-501
2
6,374.00
6,374.00
6,374.00
-
Alcohol Education and Rehabilitation
41-501
2
6,879.00
6,879.00
6,879.00
-
Municipal Alliance - Local Match
41-506
2
2,080.00
1,856.00
1,856.00
1,856.00
-
Grahill Charitable Trust
40-501
2
10,000.00
-
-
-
CLEP Grant
40-801
2
32,559.00
15,500.00
15,500.00
15,500.00
-
Union County Kids Recreation Grant
40-851
2
71,071.00
133,000.00
133,000.00
133,000.00
-
Local Public Health Infrastructure
41-621
2
194,145.00
168,049.00
168,049.00
168,049.00
-
Strengthening Local Health Capacity
41-621
2
234,936.00
74,664.00
74,664.00
74,664.00
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 24
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Public and Private Programs Offset by Revenues
National Opioid Settlement
40-711
2
64,496.00
7,179.00
7,179.00
7,179.00
-
Emergency Management
41-537
2
10,000.00
10,000.00
10,000.00
-
Stormwater Assistance
41-564
2
15,000.00
15,000.00
15,000.00
-
Local Recreation Improvement
41-671
2
70,000.00
70,000.00
70,000.00
-
Selective Enforcement Management
41-510
2
42,000.00
42,000.00
42,000.00
-
Distracted Driving
41-508
2
2,100.00
-
-
-
State Forestry Grant
41-599
2
45,200.00
-
-
-
Green the Streets
41-594
2
1,500.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 24a
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(A) Operations - Excluded from "CAPS" (continued)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Public and Private Programs Offset by Revenues (cont)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Public and Private Programs Offset by Revenues
40-999
1,138,841.00
665,647.00
-
665,647.00
665,647.00
-
Total Operations - Excluded from "CAPS"
34-305
4,007,929.00
2,932,883.00
-
2,932,883.00
2,924,304.00
8,579.00
Detail:
Salaries & Wages
34-305
1
324,000.00
313,000.00
-
313,000.00
304,421.00
8,579.00
Other Expenses
34-305
2
3,683,929.00
2,619,883.00
-
2,619,883.00
2,619,883.00
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 25
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(C) Capital Improvements - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Down Payments on Improvements
44-902
-
-
Capital Improvement Fund
44-901
500,000.00
500,000.00
XXXXXXXXXX
500,000.00
500,000.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 26
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(C) Capital Improvements - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
-
-
-
-
-
-
-
-
-
-
-
-
Public and Private Programs Offset by Revenues:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
New Jersey Transportation Trust Fund Authority Act
41-865
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Capital Improvements Excluded from "CAPS"
44-999
500,000.00
500,000.00
-
500,000.00
500,000.00
-
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 26a
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(D) Municipal Debt Service - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Payment of Bond Principal
45-920
4,700,000.00
4,416,960.00
4,416,960.00
4,416,960.00
XXXXXXXXXX
Payment of Bond Anticipation Notes and Capital Notes
45-925
-
XXXXXXXXXX
Interest on Bonds
45-930
1,514,000.00
1,223,585.00
1,223,585.00
1,223,585.00
XXXXXXXXXX
Interest on Notes
45-935
390,427.00
925,000.00
925,000.00
922,603.00
XXXXXXXXXX
Green Trust Loan Program:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Loan Repayments for Principal and Interest
45-940
-
XXXXXXXXXX
Green Acres Loan Repayments
45-942
50,000.00
50,000.00
50,000.00
47,395.00
XXXXXXXXXX
45-943
-
XXXXXXXXXX
Capital Grant Agreement-Rahway Revelopment Agency
-
XXXXXXXXXX
Library Project/Arts Center Project
45-944
520,438.00
593,874.00
593,874.00
593,874.00
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
CURRENT FUND - APPROPRIATIONS
Appropriated
Expended 2024
Sheet 27
FCOA
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(D) Municipal Debt Service - Excluded from "CAPS" (cont.)
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
Total Municipal Debt Service Excluded from "CAPS"
45-999
7,174,865.00
7,209,419.00
-
7,209,419.00
7,204,417.00
XXXXXXXXXX
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 27a
FCOA
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
(E) Deferred Charges - Municipal - Excluded from "CAPS"
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
(1) DEFERRED CHARGES:
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations
46-870
XXXXXXXXXX
-
XXXXXXXXXX
46-875
254,000.00
3,060,000.00
XXXXXXXXXX
3,060,000.00
3,060,000.00
XXXXXXXXXX
46-871
XXXXXXXXXX
-
XXXXXXXXXX
Overexpenditure of Ordinance Appropriation
46-896
XXXXXXXXXX
-
XXXXXXXXXX
Deferred Charges Unfunded - General Capital
XXXXXXXXXX
-
XXXXXXXXXX
Ordinance 26-17
46-892
XXXXXXXXXX
-
XXXXXXXXXX
Ordinance 31-19/31-20
46-892
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
46-999
254,000.00
3,060,000.00
XXXXXXXXXX
3,060,000.00
3,060,000.00
XXXXXXXXXX
(F) Judgments (N.J.S.A. 40A:4-45.3cc)
37-480
-
XXXXXXXXXX
(N)
29-405
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
(G)
46-885
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
34-309
11,936,794.00
13,702,302.00
-
13,702,302.00
13,688,721.00
8,579.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
FCOA
XXXXXX
Sheet 28
Special Emergency Authorization -
3 Years (N.J.S.A. 40A:4-55.1 &
Special Emergency Authorization -
5 Years (N.J.S.A. 40A:4-55)
(H-2)
Total General Appropriations for
Municipal Purposes Excluded from
Transferred to Board of Education for
Use of Local Schools (N.J.S.A. 40:48-
Total Deferred Charges - Municipal -
Excluded from "CAPS"
With Prior Consent of Local Finance Board:
Cash Deficit of Preceding Year
8. GENERAL APPROPRIATIONS
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
( I ) Type 1 District School Debt Service
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Payment of Bond Principal
48-920
-
XXXXXXXXXX
Payment of Bond Anticipation Notes
48-925
-
XXXXXXXXXX
Interest on Bonds
48-930
-
XXXXXXXXXX
Interest on Notes
48-935
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
48-999
-
-
-
-
-
XXXXXXXXXX
(J)
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations - Schools
29-406
XXXXXXXXXX
-
XXXXXXXXXX
29-407
-
XXXXXXXXXX
29-409
-
-
-
-
-
XXXXXXXXXX
(K)
29-410
-
-
-
-
-
XXXXXXXXXX
(O) Total General Appropriations - Excluded from "CAPS"
34-399
11,936,794.00
13,702,302.00
-
13,702,302.00
13,688,721.00
8,579.00
(L) Subtotal General Appropriations {Items (H-1) and (O)}
34-400
69,582,832.00
69,021,288.00
1,270,000.00
70,291,288.00
66,933,374.00
3,352,912.00
(M) Reserve for Uncollected Taxes
50-899
2,500,000.00
2,250,000.00
XXXXXXXXXX
2,250,000.00
2,250,000.00
XXXXXXXXXX
9.
Total General Appropriations
34-499
72,082,832.00
71,271,288.00
1,270,000.00
72,541,288.00
69,183,374.00
3,352,912.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 29
For Local District School Purposes -
Excluded from "CAPS"
Total of Type 1 District School Debt
Service - Excluded from "CAPS"
Deferred Charges and Statutory
Expenditures - Local School -
Capital Project for Land, Building or
Equipment N.J.S.A. 18A:22-20
Total Deferred Charges and Statutory
Expenditures - Local School -
District School Purposes {Items (I) and (J) -
Excluded from "CAPS"
XXXXXX
XXXXXX
XXXXXX
8. GENERAL APPROPRIATIONS
for 2024 By
Total for 2024
Summary of Appropriations
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
(H-1) Total General Appropriations for
57,646,038.00
55,318,986.00
1,270,000.00
56,588,986.00
53,244,653.00
3,344,333.00
Municipal Purposes within "CAPS"
(A)
Operations - Excluded from "CAPS"
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Other Operations
2,869,088.00
2,267,236.00
-
2,267,236.00
2,258,657.00
8,579.00
Uniform Construction Code
-
-
-
-
-
-
Shared Service Agreements
-
-
-
-
-
-
Additional Appropriations Offset by Revenues
-
-
-
-
-
-
Public & Private Programs Offset by Revenues
1,138,841.00
665,647.00
-
665,647.00
665,647.00
-
Total Operations Excluded from "CAPS"
4,007,929.00
2,932,883.00
-
2,932,883.00
2,924,304.00
8,579.00
(C)
Capital Improvements
500,000.00
500,000.00
-
500,000.00
500,000.00
-
(D)
Municipal Debt Service
7,174,865.00
7,209,419.00
-
7,209,419.00
7,204,417.00
XXXXXXXXXX
(E)
Total Deferred Charges (Sheet 28)
254,000.00
3,060,000.00
XXXXXXXXXX
3,060,000.00
3,060,000.00
XXXXXXXXXX
(F)
Judgments (Sheet 28)
-
-
-
-
-
XXXXXXXXXX
(G)
Cash Deficit - With Prior Consent of Local Finance Board
-
-
XXXXXXXXXX
-
-
XXXXXXXXXX
(K)
Local District School Purposes
-
-
-
-
-
XXXXXXXXXX
(N)
Transferred to Board of Education
-
-
XXXXXXXXXX
-
-
XXXXXXXXXX
(M)
Reserve for Uncollected Taxes
2,500,000.00
2,250,000.00
XXXXXXXXXX
2,250,000.00
2,250,000.00
XXXXXXXXXX
Total General Appropriations
72,082,832.00
71,271,288.00
1,270,000.00
72,541,288.00
69,183,374.00
3,352,912.00
CURRENT FUND - APPROPRIATIONS
Expended 2024
Appropriated
Sheet 30
FCOA
34-299
XXXXXX
XXXXXX
34-300
22-999
42-999
34-303
34-305
44-999
45-999
46-999
50-899
34-499
40-999
37-480
46-885
29-410
29-405
Realized in
FCOA
2025
2024
Cash in 2024
Operating Surplus Anticipated
08-501
08-502
Total Operating Surplus Anticipated
08-500
-
-
-
Rents
08-503
10,617,000.00
9,197,184.00
9,197,184.00
Additional Rents
08-504
732,816.00
2,073,964.00
Miscellaneous
08-505
Water Connection Fees
08-506
Grant - UCLSG Water Infrastructure
08-507
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Deficit (General Budget)
08-549
Total Water Utility Revenues
08-599
10,617,000.00
9,930,000.00
11,271,148.00
Sheet 31
DEDICATED WATER UTILITY BUDGET
Anticipated
10. DEDICATED REVENUES FROM WATER UTILITY
Operating Surplus Anticipated with Prior Written Consent of Director of Local Government Services
Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local
Governement Services
11. APPROPRIATIONS FOR WATER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
-
-
Other Expenses
55-502
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED WATER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32
11. APPROPRIATIONS FOR WATER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED WATER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32a
11. APPROPRIATIONS FOR WATER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
-
-
Other Expenses
55-502
800,000.00
710,000.00
710,000.00
690,106.00
19,894.00
Management Fee
55-502
5,300,000.00
4,993,000.00
4,993,000.00
4,992,935.00
65.00
Grant - UCLSG - Water Infrastructure
55-503
-
-
Other Expenses - Carbon Filter Replacements
55-502
1,200,000.00
1,200,000.00
1,200,000.00
1,199,388.00
612.00
Capital Improvements:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Down Payments on Improvements
55-510
-
-
Capital Improvement Fund
55-511
XXXXXXXXXX
-
-
Capital Outlay
55-512
-
-
-
-
-
-
Debt Service:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Payment on Bond Principal
55-520
425,000.00
415,000.00
415,000.00
415,000.00
XXXXXXXXXX
Payment on Bond Anticipation Notes & Capital Notes
55-521
299,930.00
306,398.00
306,398.00
306,398.00
XXXXXXXXXX
Interest on Bonds
55-522
210,000.00
230,000.00
230,000.00
226,408.00
XXXXXXXXXX
Interest on Notes
55-523
576,762.00
385,000.00
385,000.00
385,000.00
XXXXXXXXXX
Principal and Interest on EIT Loan
55-524
750,000.00
750,000.00
750,000.00
747,763.00
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
DEDICATED WATER UTILITY BUDGET - (continued)
Expended 2024
Appropriated
Sheet 32b
11. APPROPRIATIONS FOR WATER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Deferred Charges and Statutory Expenditures:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
DEFERRED CHARGES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations
55-530
XXXXXXXXXX
-
XXXXXXXXXX
Overxpenditure of Appropriation Reserves
55-550
26,669.00
XXXXXXXXXX
26,669.00
26,669.00
XXXXXXXXXX
Authorized but not Issued - Water Capital
55-550
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
STATUTORY EXPENDITURES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Contribution To:
Public Employee's Retirement System
55-540
-
-
Social Security System (O.A.S.I.)
55-541
-
-
55-542
-
-
-
-
-
-
-
-
Judgements
55-531
-
XXXXXXXXXX
Deficit in Operations in Prior Years
55-532
XXXXXXXXXX
-
XXXXXXXXXX
Surplus (General Budget )
55-545
1,055,308.00
913,933.00
XXXXXXXXXX
913,933.00
913,933.00
XXXXXXXXXX
TOTAL WATER UTILITY APPROPRIATIONS
55-599
10,617,000.00
9,930,000.00
-
9,930,000.00
9,903,600.00
20,571.00
DEDICATED WATER UTILITY BUDGET - (continued)
Expended 2024
Appropriated
Sheet 33
Unemployment Compensation Insurance (N.J.S.A.
43:21-3 et. Seq.)
Realized in
FCOA
2025
2024
Cash in 2024
Operating Surplus Anticipated
08-501
341,000.00
818,000.00
818,000.00
08-502
Total Operating Surplus Anticipated
08-500
341,000.00
818,000.00
818,000.00
Rents
08-503
6,900,000.00
6,008,000.00
6,008,000.00
Additional Rents
08-504
365,000.00
257,000.00
979,094.00
Miscellaneous
08-505
Industrial Sewer Flow Charges
08-506
180,000.00
155,000.00
208,212.00
Sewer Connection Fees
08-507
25,000.00
50,000.00
27,219.00
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Deficit (General Budget)
08-549
Total Sewer Utility Revenues
08-599
7,811,000.00
7,288,000.00
8,040,525.00
Sheet 31
Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local
Governement Services
DEDICATED SEWER UTILITY BUDGET
Anticipated
10. DEDICATED REVENUES FROM SEWER UTILITY
Operating Surplus Anticipated with Prior Written Consent of Director of Local Government Services
11. APPROPRIATIONS FOR SEWER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
-
-
Other Expenses
55-502
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED SEWER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32
11. APPROPRIATIONS FOR SEWER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED SEWER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32a
11. APPROPRIATIONS FOR SEWER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
270,000.00
245,000.00
251,000.00
250,910.00
90.00
Other Expenses
55-502
171,000.00
125,000.00
119,000.00
19,549.00
99,451.00
Sewer Treatment Expenses
-
-
Rahway Valley Sewer Authority
55-502
6,650,000.00
6,400,000.00
6,399,000.00
6,388,743.00
10,257.00
Sewer Permit Fees
55-502
83,000.00
78,000.00
79,000.00
78,010.00
990.00
Capital Improvements:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Down Payments on Improvements
55-510
-
-
Capital Improvement Fund
55-511
XXXXXXXXXX
-
-
Capital Outlay
55-512
-
-
-
-
-
-
Debt Service:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Payment on Bond Principal
55-520
255,000.00
265,000.00
265,000.00
263,040.00
XXXXXXXXXX
Payment on Bond Anticipation Notes & Capital Notes
55-521
-
XXXXXXXXXX
Interest on Bonds
55-522
120,000.00
130,000.00
130,000.00
128,360.00
XXXXXXXXXX
Interest on Notes
55-523
225,000.00
9,000.00
9,000.00
9,000.00
XXXXXXXXXX
Principal and Interest on EIT Loans
55-524
20,000.00
20,000.00
20,000.00
19,996.00
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
DEDICATED SEWER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32b
11. APPROPRIATIONS FOR SEWER UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Deferred Charges and Statutory Expenditures:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
DEFERRED CHARGES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations
55-530
XXXXXXXXXX
-
XXXXXXXXXX
Overexpenditure of Appropriations
55-550
XXXXXXXXXX
-
XXXXXXXXXX
Authorized but not Issued - Sewer Capital
55-550
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
STATUTORY EXPENDITURES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Contribution To:
Public Employee's Retirement System
55-540
-
-
Social Security System (O.A.S.I.)
55-541
17,000.00
16,000.00
16,000.00
15,666.00
334.00
55-542
-
-
-
-
-
-
-
-
Judgements
55-531
-
XXXXXXXXXX
Deficit in Operations in Prior Years
55-532
XXXXXXXXXX
-
XXXXXXXXXX
Surplus (General Budget )
55-545
XXXXXXXXXX
-
XXXXXXXXXX
TOTAL SEWER UTILITY APPROPRIATIONS
55-599
7,811,000.00
7,288,000.00
-
7,288,000.00
7,173,274.00
111,122.00
DEDICATED SEWER UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Unemployment Compensation Insurance (N.J.S.A.
43:21-3 et. Seq.)
Sheet 33
Realized in
FCOA
2025
2024
Cash in 2024
Operating Surplus Anticipated
08-501
500,000.00
500,000.00
08-502
Total Operating Surplus Anticipated
08-500
-
500,000.00
500,000.00
Rents
08-503
Parking Fees
08-504
1,206,000.00
1,200,000.00
1,603,288.00
Miscellaneous
08-505
Ground Lease
08-506
574,000.00
558,000.00
500,743.00
Reserve for Rate Stabilization
08-507
300,000.00
300,000.00
300,000.00
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Deficit (General Budget)
08-549
Total Parking Utility Revenues
08-599
2,080,000.00
2,558,000.00
2,904,031.00
Sheet 31
Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local
Governement Services
DEDICATED PARKING UTILITY BUDGET
Anticipated
10. DEDICATED REVENUES FROM PARKING UTILITY
Operating Surplus Anticipated with Prior Written Consent of Director of Local Government Services
11. APPROPRIATIONS FOR PARKING UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
-
-
Other Expenses
55-502
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED PARKING UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32
11. APPROPRIATIONS FOR PARKING UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DEDICATED PARKING UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32a
11. APPROPRIATIONS FOR PARKING UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Operating:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Salaries & Wages
55-501
695,000.00
420,000.00
425,000.00
422,019.00
2,981.00
Other Expenses
55-502
425,000.00
450,000.00
445,000.00
405,781.00
39,219.00
Employee Group Insurance
55-502
70,000.00
70,000.00
70,000.00
70,000.00
-
-
-
-
-
Capital Improvements:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Down Payments on Improvements
55-510
-
-
Capital Improvement Fund
55-511
XXXXXXXXXX
-
-
Capital Outlay
55-512
-
-
-
-
-
-
Debt Service:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Payment on Bond Principal
55-520
210,000.00
200,000.00
200,000.00
200,000.00
XXXXXXXXXX
Payment on Bond Anticipation Notes & Capital Notes
55-521
35,000.00
35,000.00
35,000.00
35,000.00
XXXXXXXXXX
Interest on Bonds
55-522
100,000.00
110,000.00
110,000.00
108,900.00
XXXXXXXXXX
Interest on Notes
55-523
66,000.00
60,000.00
60,000.00
60,000.00
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
-
XXXXXXXXXX
DEDICATED PARKING UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Sheet 32b
11. APPROPRIATIONS FOR PARKING UTILITY
FCOA
for 2024 By
Total for 2024
for 2025
for 2024
Emergency
As Modified By
Paid or
Reserved
Appropriation
All Transfers
Charged
Deferred Charges and Statutory Expenditures:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
DEFERRED CHARGES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Emergency Authorizations
55-530
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
XXXXXXXXXX
-
XXXXXXXXXX
STATUTORY EXPENDITURES:
XXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Contribution To:
Public Employee's Retirement System
55-540
12,000.00
12,000.00
12,000.00
12,000.00
-
Social Security System (O.A.S.I.)
55-541
25,000.00
25,000.00
25,000.00
25,000.00
-
55-542
-
-
-
-
-
-
-
-
Judgements
55-531
-
XXXXXXXXXX
Deficit in Operations in Prior Years
55-532
XXXXXXXXXX
-
XXXXXXXXXX
Surplus (General Budget )
55-545
442,000.00
1,176,000.00
XXXXXXXXXX
1,176,000.00
1,176,000.00
XXXXXXXXXX
TOTAL PARKING UTILITY APPROPRIATIONS
55-599
2,080,000.00
2,558,000.00
-
2,558,000.00
2,514,700.00
42,200.00
DEDICATED PARKING UTILITY BUDGET - (continued)
Appropriated
Expended 2024
Unemployment Compensation Insurance (N.J.S.A.
43:21-3 et. Seq.)
Sheet 33
Sheets 34 - 37 - Not Applicable to Municipal Budget and have been omitted from this document
CITY OF RAHWAY
2025 MUNICIPAL BUDGET
Realized in
14. DEDICATED REVENUES FROM
FCOA
2025
2024
Cash in 2024
Assessment Cash
53-101
Deficit ( Utility Budget)
53-885
Total Utility Assessment Revenues
53-899
-
-
-
Expended 2024
15. APPROPRIATIONS FOR ASSESSMENT DEBT
2025
2024
Paid or Charged
Payment of Bond Principal
53-920
Payment of Bond Anticipation Notes
53-925
Total Utility Assessment Appropriations
53-999
-
-
-
Dedication by Rider - (N.J.S.A. 40A: 4-39) dedicated revenues anticipated during the year 2025 from Animal Control State or Federal Aid for Maintenance of Libraries
Bequest, Escheat; Construction Code Fees Due Hackensak Meadowlands Development Commission; Outside Employment of Off-Duty Municipal Police
Officers; Unemployment Compensation Insurance; Reimbursement of Sale of Gasoline to State Automobiles; State Training Fees - Uniform Construction Code Act;
Older Americans Act - Program Contributions; Municipal Alliance on Alcoholism and Drug Abuse - Program Income:
Municipal Public Defender; Disposal of Forfeited Property - Special Federal Law Enforcement Trust; Donations - Police Department; Parking Offenses Adjudication Act; Accumulated Absences;
UCC Code Enforcement Fee - 3rd Party; Recreation Trust Fund - Fee Programs; Uniform Fire Safety Act Penalty Moneys;
are hereby anticipated as revenue and are hereby appropriated for the purpose to which said revenue is dedicated by statute or other legal requirement."
Sheet 38
Anticipated
DEDICATED ASSESSMENT BUDGET UTILITY
Appropriated
YEAR 2024
YEAR 2023
23,704,173.00
12,116,707.00
9,760,660.00
74,665.00
XXXXXXXX
XXXXXXXX
3,054,776.00
108,679,274.00
103,947,518.00
XXXXXXXX
1,457,648.00
1,623,793.00
2,069,820.00
28,944,937.00
27,149,931.00
700,986.00
151,198,566.00
142,481,902.00
2,664,500.00
XXXXXXXX
XXXXXXXX
4,031,320.00
70,286,286.00
66,037,056.00
254,000.00
49,928,319.00
48,913,541.00
1,016,000.00
15,561,471.00
14,701,064.00
37,570,240.00
400,000.00
400,000.00
4,174,357.00
1,063,534.00
140,350,433.00
131,115,195.00
15,985,481.00
1,270,000.00
750,000.00
9,466,626.00
139,080,433.00
130,365,195.00
12,118,133.00
12,118,133.00
12,116,707.00
37,570,240.00
*Nearest even percentage may be used
12,118,133.00
3,300,000.00
-
8,818,133.00
(Important: This appendix must be Included in advertisement of Budget.)
Surplus Balance, January 1
Surplus Balance Remaining
Current Surplus Anticipated in 2025 Budget
Surplus Balance, December 31
Total Funds
Other Revenues and Additions to Income
Delinquent Taxes
Current Taxes:*(Percentage Collected 2024: 97.88%, 2023: 98.41%)
CURRENT REVENUE ON A CASH BASIS:
Special District Taxes
County Taxes (Including Added Tax Amounts)
School Taxes (Including Local and Regional)
Municipal Appropriations
EXPENDITURES AND TAX REQUIREMENTS:
Surplus Balance, December 31
Total Adjusted Expenditures and Tax Requirements
Less: Expenditures to be Raised by Future Taxes
Total Expenditures and Tax Requirements
Other Expenditures and Deductions from Income
Taxes Receivable
Receivables with Offsetting Reserves:
Federal and State Grants Receivable
Due from State of N.J.(c. 20, P.L. 1961)
*Balance Included in Above "Cash Liabilities"
Less: School Tax Deferred
School Tax Levy Unpaid
Total Liabilities, Reserves and Surplus
Surplus
Reserves for Receivables
*Cash Liabilities
APPENDIX TO BUDGET STATEMENT
CHANGE IN CURRENT SURPLUS
COMPARATIVE STATEMENT OF CURRENT FUND OPERATIONS AND
Sheet 39
Proposed Use of Current Fund Surplus in 2025 Budget
ASSETS
LIABILITIES, RESERVES AND SURPLUS
CURRENT FUND BALANCE SHEET - DECEMBER 31, 2024
Cash and Investments
Total Assets
Deferred Charges Required to be in Budgets Subsequent to 2025
Deferred Charges Required to be in 2025 Budget
Other Receivables
Property Acquired by Tax Title Lien Liquidation
Tax Title Lien Receivable
This section is included with the Annual Budget pursuant to N.J.A.C. 5:30-4. It does not in itself confer any authorization to raise or expend
funds. Rather it is a document used as part of the local unit's planning and management program. Specific authorization to expend funds for purposes
described in this section must be granted elsewhere, by a separate bond ordinance, by inclusion of a line item in the Capital Improvement Section of this
budget, by an ordinance taking the money from the Capital Improvement Fund, or other lawful means.
CAPITAL BUDGET
- A plan for all capital expenditures for the current fiscal year.
If no Capital Budget is included, check the reason why:
Total capital expenditures this year do not exceed $25,000, including appropriations for Capital Improvement Fund,
Capital Line items and Down Payments on Improvements.
No bond ordinances are planned this year.
CAPITAL IMPROVEMENT PROGRAM
- A multi-year list of planned capital projects, including the current year.
Check appropriate box for number of years covered, including current year:
3 years. (Population under 10,000)
X
6 years. (Over 10,000 and all county governments)
years exceeding minimum time period.
Check if municipality is under 10,000, has not expended more than $25,000 annually for capital purposes in immediately
previous three years, and is not adopting CIP.
C - 1
2025
Sheet 40
CAPITAL BUDGET AND CAPITAL IMPROVEMENT PROGRAM
The Mayor and Council, in presenting this Capital Improvement Program, is desirous of informing the residents and taxpayers of the City of its
projected needs for 2025 through 2030. These projects have been given serious consideration and the Governing Body has proposed projects that will be beneficial to
the Community. As in the past, every effort will be made to receive outside funding for these projects, which will keep the cost to taxpayers as low as possible.
The Capital Improvement Program is flexible in that it may be amended at any time to increase or decrease amounts, as well as add or delete items, these actions
must be done with the approval of the Government Body. The following is a recap of the yearly program totals:
Water
Sewer
Parking
General
Utility
Utility
Utility
Year
Capital
Capital
Capital
Capital
Total
2025
7,300,000
4,050,000
500,000
11,850,000
2026
2,700,000
2,400,000
500,000
5,600,000
2027
2,700,000
200,000
500,000
3,400,000
2028
2,700,000
200,000
500,000
3,400,000
2029
2,700,000
200,000
500,000
3,400,000
2030
2,700,000
200,000
500,000
3,400,000
20,800,000
7,250,000
3,000,000
31.050.000
C - 2
CITY OF RAHWAY
Sheet 40a
NARRATIVE FOR CAPITAL IMPROVEMENT PROGRAM
Local Unit
CITY OF RAHWAY
4
6
1
2
3
AMOUNTS
TO BE
PROJECT TITLE
PROJECT
ESTIMATED
RESERVED
5a
5b
5c
5d
5e
FUNDED IN
NUMBER
TOTAL
IN PRIOR
2025 Budget
Capital
Capital
Grants in Aid and
Debt
FUTURE
COST
YEARS
Appropriations
Improvement Fund
Surplus
Other Funds
Authorized
YEARS
DPW Vehicles & Equip
COR 001
3,600,000.00
30,000.00
570,000.00
3,000,000.00
Various Fire Dept Improvements
COR 002
2,500,000.00
50,000.00
950,000.00
1,500,000.00
Varioius Police Dept Improvements
COR 003
600,000.00
5,000.00
95,000.00
500,000.00
Annual Sidewalk Improvements
COR 004
1,100,000.00
5,000.00
95,000.00
1,000,000.00
Annual Road Improvements
COR 001
7,350,000.00
117,500.00
2,232,500.00
5,000,000.00
Various Water System Improvements
COR 005
1,500,000.00
500,000.00
1,000,000.00
Various Sewer System Improvments
COR 006
3,000,000.00
500,000.00
2,500,000.00
Recreation Improvements
COR 007
2,400,000.00
70,000.00
1,330,000.00
1,000,000.00
City Building Improvements
COR 008
3,250,000.00
87,500.00
1,662,500.00
1,500,000.00
Water Storage Tank Rehab & Paint
COR009
1,200,000.00
1,200,000.00
Various Electrical Improvements
COR11
150,000.00
150,000.00
UF Membrane Module Replacement
COR12
2,000,000.00
1,000,000.00
1,000,000.00
GAC Medica Replacement (PFAS Removal)
COR13
2,400,000.00
1,200,000.00
1,200,000.00
-
-
-
-
-
TOTAL - THIS PAGE
XXXXX
31,050,000.00
-
-
365,000.00
-
-
11,485,000.00
19,200,000.00
C - 3
CAPITAL BUDGET (Current Year Action)
2025
PLANNED FUNDING SERVICES FOR CURRENT YEAR - 2025
Sheet 40b
Local Unit
CITY OF RAHWAY
4
6
1
2
3
AMOUNTS
TO BE
PROJECT TITLE
PROJECT
ESTIMATED
RESERVED
5a
5b
5c
5d
5e
FUNDED IN
NUMBER
TOTAL
IN PRIOR
2025 Budget
Capital
Capital
Grants in Aid and
Debt
FUTURE
COST
YEARS
Appropriations
Improvement Fund
Surplus
Other Funds
Authorized
YEARS
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - THIS PAGE
XXXXX
-
-
-
-
-
-
-
-
C - 3
Sheet 40b1
CAPITAL BUDGET (Current Year Action)
2025
PLANNED FUNDING SERVICES FOR CURRENT YEAR - 2025
Local Unit
CITY OF RAHWAY
4
6
1
2
3
AMOUNTS
TO BE
PROJECT TITLE
PROJECT
ESTIMATED
RESERVED
5a
5b
5c
5d
5e
FUNDED IN
NUMBER
TOTAL
IN PRIOR
2025 Budget
Capital
Capital
Grants in Aid and
Debt
FUTURE
COST
YEARS
Appropriations
Improvement Fund
Surplus
Other Funds
Authorized
YEARS
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - ALL PROJECTS
XXXXX
31,050,000.00
-
-
365,000.00
-
-
11,485,000.00
19,200,000.00
C - 3
CAPITAL BUDGET (Current Year Action)
2025
PLANNED FUNDING SERVICES FOR CURRENT YEAR - 2025
Sheet 40b - Totals
Local Unit
CITY OF RAHWAY
1
2
3
4
PROJECT TITLE
PROJECT
ESTIMATED
Estimated
5a
5b
5c
5d
5e
5f
NUMBER
TOTAL COST
Completion
2025
2026
2027
2028
2029
2030
Time
DPW Vehicles & Equip
COR 001
3,600,000.00
600,000.00
600,000.00
600,000.00
600,000.00
600,000.00
600,000.00
Various Fire Dept Improvements
COR 002
2,500,000.00
1,000,000.00
300,000.00
300,000.00
300,000.00
300,000.00
300,000.00
Varioius Police Dept Improvements
COR 003
600,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
Annual Sidewalk Improvements
COR 004
1,100,000.00
100,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
Annual Road Improvements
COR 001
7,350,000.00
2,350,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
Various Water System Improvements
COR 005
1,500,000.00
500,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
Various Sewer System Improvments
COR 006
3,000,000.00
500,000.00
500,000.00
500,000.00
500,000.00
500,000.00
500,000.00
Recreation Improvements
COR 007
2,400,000.00
1,400,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
City Building Improvements
COR 008
3,250,000.00
1,750,000.00
300,000.00
300,000.00
300,000.00
300,000.00
300,000.00
Water Storage Tank Rehab & Paint
COR009
1,200,000.00
1,200,000.00
Various Electrical Improvements
COR11
150,000.00
150,000.00
UF Membrane Module Replacement
COR12
2,000,000.00
1,000,000.00
1,000,000.00
GAC Medica Replacement (PFAS Removal)
COR13
2,400,000.00
1,200,000.00
1,200,000.00
-
-
-
-
-
TOTAL - THIS PAGE
XXXXX
31,050,000.00
XXXXXXXXXX
11,850,000.00
5,600,000.00
3,400,000.00
3,400,000.00
3,400,000.00
3,400,000.00
C - 4
6 YEAR CAPITAL PROGRAM - 2025 to 2030
ANTICIPATED PROJECT SCHEDULE AND FUNDING REQUIREMENTS
FUNDING AMOUNTS PER BUDGET YEAR
Sheet 40c
Local Unit
CITY OF RAHWAY
1
2
3
4
PROJECT TITLE
PROJECT
ESTIMATED
Estimated
5a
5b
5c
5d
5e
5f
NUMBER
TOTAL COST
Completion
2025
2026
2027
2028
2029
2030
Time
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - THIS PAGE
XXXXX
-
XXXXXXXXXX
-
-
-
-
-
-
C - 4
Sheet 40c1
FUNDING AMOUNTS PER BUDGET YEAR
6 YEAR CAPITAL PROGRAM - 2025 to 2030
ANTICIPATED PROJECT SCHEDULE AND FUNDING REQUIREMENTS
Local Unit
CITY OF RAHWAY
1
2
3
4
PROJECT TITLE
PROJECT
ESTIMATED
Estimated
5a
5b
5c
5d
5e
5f
NUMBER
TOTAL COST
Completion
2025
2026
2027
2028
2029
2030
Time
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - ALL PROJECTS
XXXXX
31,050,000.00
XXXXXXXXXX
11,850,000.00
5,600,000.00
3,400,000.00
3,400,000.00
3,400,000.00
3,400,000.00
C - 4
6 YEAR CAPITAL PROGRAM - 2025 to 2030
ANTICIPATED PROJECT SCHEDULE AND FUNDING REQUIREMENTS
FUNDING AMOUNTS PER BUDGET YEAR
Sheet 40c - Totals
Local Unit
CITY OF RAHWAY
1
2
4
5
6
Project Title
Estimated
3a
3b
Capital
Capital
Grants - in - Aid
7a
7b
7c
7d
Total Costs
Current Year
Future Years
Improvement
Surplus
and Other
General
Self
Assessment
School
2025
Fund
Funds
Liquidating
DPW Vehicles & Equip
3,600,000.00
180,000.00
3,420,000.00
Various Fire Dept Improvements
2,500,000.00
125,000.00
2,375,000.00
Varioius Police Dept Improvements
600,000.00
30,000.00
570,000.00
Annual Sidewalk Improvements
1,100,000.00
55,000.00
1,045,000.00
Annual Road Improvements
7,350,000.00
367,500.00
6,982,500.00
Various Water System Improvements
1,500,000.00
1,500,000.00
Various Sewer System Improvments
3,000,000.00
3,000,000.00
Recreation Improvements
2,400,000.00
120,000.00
2,280,000.00
City Building Improvements
3,250,000.00
162,500.00
3,087,500.00
Water Storage Tank Rehab & Paint
1,200,000.00
1,200,000.00
Various Electrical Improvements
150,000.00
150,000.00
UF Membrane Module Replacement
2,000,000.00
2,000,000.00
GAC Medica Replacement (PFAS Removal)
2,400,000.00
2,400,000.00
-
-
-
-
-
-
-
-
-
TOTAL - THIS PAGE
31,050,000.00
-
-
1,040,000.00
-
-
19,760,000.00
10,250,000.00
-
-
C - 5
Sheet 40d
6 YEAR CAPITAL PROGRAM - 2025 to 2030
SUMMARY OF ANTICIPATED FUNDING SOURCES AND AMOUNTS
BUDGET APPROPRIATIONS
BONDS AND NOTES
Local Unit
CITY OF RAHWAY
1
2
4
5
6
Project Title
Estimated
3a
3b
Capital
Capital
Grants - in - Aid
7a
7b
7c
7d
Total Costs
Current Year
Future Years
Improvement
Surplus
and Other
General
Self
Assessment
School
2025
Fund
Funds
Liquidating
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - THIS PAGE
-
-
-
-
-
-
-
-
-
-
C - 5
Sheet 40d1
6 YEAR CAPITAL PROGRAM - 2025 to 2030
SUMMARY OF ANTICIPATED FUNDING SOURCES AND AMOUNTS
BUDGET APPROPRIATIONS
BONDS AND NOTES
Local Unit
CITY OF RAHWAY
1
2
4
5
6
Project Title
Estimated
3a
3b
Capital
Capital
Grants - in - Aid
7a
7b
7c
7d
Total Costs
Current Year
Future Years
Improvement
Surplus
and Other
General
Self
Assessment
School
2025
Fund
Funds
Liquidating
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL - ALL PROJECTS
31,050,000.00
-
-
1,040,000.00
-
-
19,760,000.00
10,250,000.00
-
-
C - 5
Sheet 40d - Totals
6 YEAR CAPITAL PROGRAM - 2025 to 2030
SUMMARY OF ANTICIPATED FUNDING SOURCES AND AMOUNTS
BUDGET APPROPRIATIONS
BONDS AND NOTES
Sheets 43-44 - Not Applicable to Municipal Budget and have been omitted from this document
CITY OF RAHWAY
2025 MUNICIPAL BUDGET
Contracting Unit:
Year Ending:
The following is a complete list of all change orders which caused the originally awarded contract price to be exceeded by more than 20 percent. For regulatory details
please consult N.J.A.C. 5:30-11.1 et seq. Please identify each change order by name of the project.
For each change order listed above, submit with introduced budget a copy of the governing body resolution authorizing the change order and an Affidavit of Publication for
the newspaper notice required by N.J.A.C. 5:30-11.9(d). (Affidavit must include a copy of the newspaper notice.)
If you have not had a change order exceeding the 20 percent threshold for the year indicated above, please check here
and certify below.
6/9/2025
Heather Capone
Annual List of Change Orders Approved
Pursuant to N.J.A.C. 5:30-11
Sheet 45
CITY OF RAHWAY
December 31, 2024
Clerk of the Governing Body
Date
CITY OF RAHWAY
UNION COUNTY, NEW JERSEY
REPORT OF AUDIT
YEAR ENDED DECEMBER 31, 2024
CITY OF RAHWAY
COUNTY OF UNION
PART I
REPORT ON AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
YEAR ENDED DECEMBER 31, 2024
Exhibits
A
A-1
A-2
A-3
B
C
C-1
D
D-1
D-2
D-3
D-4
E
E-1
E-2
E-3
E-4
F
F-1
F-2
F-3
F-4
G
A-4
A-5
A-6
A-7
A-8
A-9
A-10
CITY OF RAHWAY
TABLE OF CONTENTS
PART I - Report on Audit of Financial Statements and Supplementary Schedules
Independent Auditor's Report
Financial Statements
Comparative Balance Sheets - Regulatory Basis - Current Fund
Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Current Fund
Statement of Revenues - Regulatory Basis - Current Fund
Statement of Expenditures - Regulatory Basis - Current Fund
Comparative Balance Sheets - Regulatory Basis - Trust Fund
Comparative Balance Sheets - Regulatory Basis - General Capital Fund
Comparative Statements of Changes in Fund Balance - Regulatory Basis -
General Capital Fund
Comparative Balance Sheets - Regulatory Basis - Water Utility Fund
Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Water Utility Operating Fund
Comparative Statements of Changes in Fund Balance - Regulatory Basis -
Water Utility Capital Fund
Statement of Revenues - Regulatory Basis -Water Utility Operating Fund
Statement of Expenditures - Regulatory Basis - Water Utility Operating Fund
Comparative Balance Sheets - Regulatory Basis - Sewer Utility Fund
Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Sewer Utility Operating Fund
Comparative Statements of Changes in Fund Balance - Regulatory Basis -
Sewer Utility Capital Fund
Statement of Revenues - Regulatory Basis - Sewer Utility Operating Fund
Statement of Expenditures - Regulatory Basis - Sewer Utility Operating Fund
Balance Sheet - Regulatory Basis - Parking Utility Fund
Statement of Operations and Changes in Fund Balance - Regulatory Basis -
Parking Utility Operating Fund
Comparative Statements of Changes in Fund Balance - Regulatory Basis -
Parking Utility Capital Fund
Statement of Revenues - Regulatory Basis - Parking Utility Operating Fund
Statement of Expenditures - Regulatory Basis - Parking Utility Operating Fund
Comparative Balance Sheets - Regulatory Basis - General Fixed Assets
Account Group
Notes to the Financial Statements
Supplementary Schedules
Current Fund
Statement of Cash - Treasurer
Statement of Change Funds
Statement of Grants Receivable
Statement of Due from State ofNew Jersey- Senior Citizen and Veterans
Deductions
Statement of Taxes Receivable and Analysis of Property Tax Levy
Statement of Tax Title Liens
Statement of Property Acquired for Taxes
1-3
4-5
6
7-9
10-14
15-16
17
18
19-20
21
22
23
24
25-26
27
28
29
30
31-32
33
34
35
36
37
38-89
90
91
92
93
94
95
95
Exhibits
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
A-21
A-22
A-23
A-24
A-25
A-26
A-27
A-28
A-29
B-1
B-2
B-3
B-4
B-5
B-6
B-7
B-8
B-9
B-10
B-11
B-12
B-13
B-14
B-15
B-16
B-17
B-18
B-19
B-20
B-21
B-22
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
Current Fund
Statement of Revenue Accounts Receivable
Statement of Other Liens Receivable
Statement of Due to Rahway Redevelopment Agency
Statement of 2023 Appropriation Reserves
Statement of Encumbrances Payable
Statement of Accounts Payable and Other Liabilities
Statement of Tax Overpayments
Statement of Prepaid Taxes
Statement of Reserve for Federal and State Grants - Unappropriated
Statement of Appropriated Reserves for Grants
Statement of County Taxes Payable
Statement of Amount Due County for Added Taxes
Statement of Local District School Taxes Payable
Statement of Special Improvement District Taxes Payable
Statement of Reserve for Tax Appeals
Statement of Deferred Charges
Statement of Special Emergency Note Payable
Statement of Due from Special Improvement District
Statement of Reserve for Municipal Relief Fund Aid
Trust Fund
Statement of Cash and Investments
Statement of Amount Due To State of New Jersey -Animal Control Fund
Statement of Reserve for Animal Control Expenditures
Statement of Due to Current Fund- Animal Control Fund
Statement of Community Development Block Grants Receivable
Statement of Loans Receivable - Community Development Trust Fund
Statement of Deferred Loans Receivable - Community Development Trust Fund
Statement of Encumbrances Payable - Community Development Trust Fund
Statement of Reserve for Community Development Expenditures
Statement of Reserve for Workers' Compensation Claims - Unemployment
Insurance Fund
Statement of Reserve for Unemployment Compensation Claims - Unemployment
Insurance Fund
Statement of Due to Current Fund- Unemployment Insurance Trust Fund
Statement of Due to State ofNew Jersey- Unemployment Insurance Trust Fund
Statement of Miscellaneous Deposits and Reserves - Other Trust Fund
Statement of Due from Current Fund - Other Trust Fund
Statement of Due to Water Utility Operating Fund- Other Trust Fund
Statement of Other Liabilities - Other Trust Fund
Statement of Reserve for Payroll Deductions Payable - Other Trust Fund
Statement of Accrued Salaries and Wages - Other Trust Fund
Statement of Reserve for Flex Spending - Other Trust Fund
Statement of Due to General Capital Fund - Community Development Trust Fund
Statement of Due from Other Trust Fund - Unemployment Insurance Trust Fund
96
97
97
98-99
100
100
101
101
102
103
104
104
104
105
105
105
106
107
107
108
109
109
109
110
111
111
111
112
113
113
114
114
115
116
116
116
117
117
117
118
118
Exhibits
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-11
C-12
C-13
C-14
C-15
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
General Capital Fund
Statement of General Capital Cash - Treasurer
Analysis of General Capital Cash
Statement of Due from/to Current Fund
Statement of Deferred Charges to Future Taxation - Funded
Statement of Deferred Charges Unfunded
Statement of Improvement Authorizations
Statement of General Serial Bonds
Statement of Grants Receivable
Statement of Bond Anticipation Notes
Statement of Loans Payable
Statement of Capital Improvement Fund
Statement of Contracts Payable
Statement of Reserve of Payment of Debt
Statement of Bonds and Notes Authorized But Not Issued
Water Utility Fund
Page
119
120
121
121
122
123-124
125-127
128
129
130
130
131
131
132
D-5
Statement of Cash- Collector/Treasurer- Water Utility Cash
133
D-6
Analysis of Cash - Water Utility Capital Fund
134
D-7
Statement of Change Fund- Water Utility Operating Fund
135
D-8
Statement of Loans Receivable- Water Utility Capital Fund
135
D-9
Statement of Fixed Capital- Water Utility Capital Fund
135
D-10
Statement of Fixed Capital Authorized and Uncompleted- Water Utility Capital Fund
136
D-11
Statement of Consumer Accounts Receivable- Water Utility Operating Fund
137
D-12
Statement of 2023 Appropriation Reserves - Water Utility Operating Fund
13 8
D-13
Statement of Encumbrances Payable - Water Utility Operating Fund
139
D-14
Statement of Accounts Payable and Other Liabilities
139
D-15
Statement of Due From/To Water Utility Capital Fund- Water Utility Operating Fund
139
D-16
Statement of Due from Current Fund - Water Utility Operating Fund
140
D-17
Statement of Reserve for Future Capital Improvements - Water Utility Capital Fund
140
D-18
Statement of Improvement Authorizations - Water Utility Capital Fund
141
D-19
Statement of Contracts Payable- Water Utility Capital Fund
142
D-20
Statement of Reserve for Amortization- Water Utility Capital Fund
142
D-21
Statement of Reserve for Deferred Amortization - Water Utility Capital Fund
142
D-22
Statement of Water Serial Bonds - Water Utility Capital Fund
143
D-23
Statement of Bond Anticipation Notes- Water Utility Capital Fund
144
D-24
Statement ofNJ EIT Loan Payable - Water Utility Capital Fund
145
D-25
Statement of Capital Improvement Fund- Water Utility Capital Fund
145
D-26
Statement of Accrued Interest Payable on Bonds, Notes and Loans - Water Utility
Operating Fund
145
D-27
Statement of Grants Receivable - Water Utility Operating Fund
145
D-28
Statement of Deferred Charges - Water Utility Operating Fund
146
D-29
Statement of Water Rent Overpayments - Water Utility Operating Fund
146
D-30
Statement of Due from Sewer Utility Capital Fund - Water Utility Operating Fund
146
D-31
Statement of Due to General Capital Fund- Water Utility Operating Fund
146
D-29
Statement of Bonds and Notes Authorized But Not Issued- Water Utility Capital Fund
147
Exhibits
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
Sewer Utility Fund
E-5
Statement of Cash - Collector/Treasurer - Sewer Utility Cash
148
E-6
Analysis of Cash - Sewer Utility Capital Fund
149
E-7
Statement of Consumer Accounts Receivable - Sewer Utility Operating Fund
150
E-8
Statement of Fixed Capital - Sewer Utility Capital Fund
151
E-9
Statement of Fixed Capital Authorized and Uncompleted- Sewer Utility Capital Fund
152
E-10
Statement of Due to Current Fund- Sewer Utility Operating Fund
153
E-11
Statement of Due from Water Utility Operating Fund-Sewer Utility Operating Fund
153
E-12
Statement of Due from/to Sewer Utility Operating Fund - Sewer Utility Capital Fund
153
E-13
Statement of 2023 Appropriation Reserves - Sewer Utility Operating Fund
154
E-14
Statement of General Serial Bonds - Sewer Utility Capital Fund
155
E-15
Statement of Environmental Infrastructure Loan Payable - Sewer Utility Capital Fund
156
E-16
Statement of Bond Anticipation Notes- Sewer Utility Capital Fund
157
E-17
Statement of Improvement Authorizations - Sewer Utility Capital Fund
158
E-18
Statement of Contracts Payable - Sewer Utility Capital Fund
159
E-19
Statement of Capital Improvement Fund - Sewer Utility Capital Fund
159
E-20
Statement of Accrued Interest on Bonds and Loans - Sewer Utility Operating Fund
159
E-21
Statement ofReserve for Amortization- Sewer Utility Capital Fund
160
E-22
Statement of Reserve for Deferred Amortization - Sewer Utility Capital Fund
160
E-23
Statement of Due to Other Trust Fund - Sewer Utility Operating Fund
160
E-24
Statement of Bonds and Notes Authorized But Not Issued- Sewer Utility Capital Fund
161
Parking Utility Fund
F-5
Statement of Cash- Collector/Treasurer
162
F-6
Analysis of Cash Parking Utility Capital Fund
163
F-7
Statement of Fixed Capital - Parking Utility Capital Fund
164
F-8
Statement of Fixed Capital Authorized and Uncompleted-Parking Utility Capital Fund 165
F-9
Statement of Due to Parking Utility Capital Fund - Parking Utility Operating Fund
166
F-10
Statement of Due to Sewer Utility Operating Fund - Parking Utility Operating Fund
166
F-11
Statement of Due to Current Fund- Parking Utility Operating Fund
167
F-12
Statement ofDue to General Capital Fund-Parking Utility Operating Fund
167
F-13
Statement of Reserve for Rate Stabilization - Parking Utility Operating Fund
167
F-14
Statement of 2023 Appropriation Reserves - Parking Utility Operating Fund
168
F-15
Statement of Encumbrances Payable - Parking Utility Operating Fund
169
F-16
Statement of Accounts Payable - Parking Utility Operating Fund
169
F-17
Statement of Accrued Interest on Bonds and Notes - Parking Utility Operating Fund
170
F-18
Statement of Reserve for Security Deposits - Parking Utility Operating Fund
170
F-19
Statement of General Serial Bonds - Parking Utility Capital Fund
171
F-20
Statement of Bond Anticipation Notes - Parking Utility Capital Fund
172
F-21
Statement of Reserve for Amortization- Parking Utility Capital Fund
173
F-22
Statement of Reserve for Future Capital Improvements-
Parking Utility Capital Fund
173
F-23
Statement of Contracts Payable -Parking Utility Capital Fund
173
F-24
Statement oflmprovement Authorizations -Parking Utility Capital Fund
174
F-26
Statement of Bonds and Notes Authorized But Not Issued-Parking Utility Capital Fund 174
Exhibits
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
PART II - Government Auditing Standards and Single Audit
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards-Independent Auditor's Report
Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance; and Report on the Schedule of Expenditures of Federal
Awards Required by U.S. Uniform Guidance
Schedule of Expenditures of Federal Awards - Schedule A
Schedule of Expenditures of State Financial Assistance - Schedule B
Notes to the Schedules of Expenditures of Federal Awards and
State Financial Assistance
Schedule of Findings and Questioned Costs
Summary Schedule of Prior-Year Audit Findings and Questioned Costs
PART III - Supporting Data and Letter of Comments and Recommendations
Comparative Statements of Operations and Changes in Fund Balance -
Current Fund
Comparative Statements of Operations and Changes in Fund Balance -
Water Utility Operating Fund
Comparative Statements of Operations and Changes in Fund Balance -
Sewer Utility Operating Fund
Comparative Statements of Operations and Changes in Fund Balance -
Parking Utility Operating Fund
Comparative Schedule of Tax Rate Information
Comparison of Tax Levies and Collection Currently
Delinquent Taxes and Tax Title Liens
Property Acquired by Tax Title Lien Liquidation
Comparison of Water Utility Levies
Comparison of Sewer Utility Levies
Comparative Schedule of Fund Balance
Officials in Office and Surety Bonds
General Comments
Recommendations
175-176
177-179
180
181-182
183-184
185-188
189
190
191
192
193
194
194
195
195
195
195
196
197
198-200
201
LERCH, VINCI & BLISS, LLP
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAULJ. LERCH, CPA, RMA, PSA
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERTW. HAAG, CPA, RMA, PSA
Honorable Mayor and
Members of the City Council
City of Rahway
Rahway, New Jersey
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of Financial Statements
Opinions
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHERM. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
We have audited the financial statements of the City of Rahway which comprise the balance sheets - regulatory basis of
the various funds and account group as of December 31, 2024 and 2023, and the related statements of operations and
changes in fund balance - regulatory basis for the years then ended, and the related statements of revenues - regulatory
basis and statements of expenditures - regulatory basis of the various funds for the year ended December 31, 2024, and the
related notes to the financial statements.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the accompanying financial statements - regulatory basis referred to above present fairly, in all material
respects, the financial position - regulatory basis of the various funds and account group of the City of Rahway as of
December 31, 2024 and 2023, and the results of operations and changes in fund balance - regulatory basis of such funds
for the years then ended and the respective revenues - regulatory basis and expenditures - regulatory basis of the various
funds for the year ended December 31, 2024 in accordance with the financial accounting and reporting provisions and
practices . prescribed by the Division of Local Government Services, Department of Community Affairs, State of New
Jersey as described in Note 1.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally
Accepted Accounting Principles section of our report, the accompanying financial statements referred to above do not
present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial
position of each fund of the City of Rahway as of December 31, 2024 and 2023, or changes in financial position, or,
where applicable, cash flows for' the years then ended.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States and the audit requirements prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the
City of Rahway and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
17-17 ROUTE 208 FAIR LAWN, NJ 07410 • TELEPHONE (201) 791-7100 • FACIMILE (201) 791-3035
WWW.LVBCPA.COM
1
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements, the financial statements are prepared by the City of Rahway on the
basis of the financial accounting and reporting provisions and practices that demonstrate compliance with the regulatory
basis of accounting and budget laws prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally
accepted in the United States of America, to meet the financial reporting requirements of the State of New Jersey for
municipal government entities. The effects on the financial statements of the variances between the regulatory basis of
accounting described in Note 1 and accounting principles generally accepted in the United States of America, although
not reasonably determinable, are presumed to be material and pervasive.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
financial accounting and reporting provisions and practices that demonstrate compliance with the regulatory basis of
accounting and budget laws prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey as described in Note 1. Management is also responsible for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Rahway' s ability to continue as a going concern
for twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with generally accepted auditing standards, Government Auditing Standards and audit requirements
prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards and
audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey, we:
•
Exercise professional judgement and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City
ofRahway's internal control. Accordingly, no such opinion is expressed.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Rahway's ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
2
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements of the City of Rahway as a
whole. The supplementary schedules listed in the table of contents, schedule of expenditures of federal awards, as
required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance) and schedule of expenditures of state financial
assistance are presented for purposes of additional analysis and are not a required part of the financial statements of the
City of Rahway. Such information is the responsibility of management and was derived from and relate directly to the
underlying accounting and other records used to prepare the financial statements. The information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplementary schedules listed in the
table of contents, schedule of expenditures of federal awards and schedule of expenditures of state financial assistance are
fairly stated, in all material respects, in relation to the financial statements as a whole on the basis of accounting described
in Note 1.
Other Information
Management is responsible for the other information included in the report of audit. The other information comprises the
supplementary data and letter of comments and recommendation section but does not include the financial statements and
our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 29, 2025 on our
consideration of the City of Rahway's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the effectiveness of the City of Rahway's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City of Rahway's internal control over financial reporting and compliance.
Fair Lawn, New Jersey
August 29, 2025
3
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CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS - CURRENT FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
ASSETS
Cash
A-4
Cash - Change Funds
A-5
Grants Receivable
A-6
Due from State ofNew Jersey - Senior Citizen
and Veterans Deductions
A-7
Receivables with Full Reserves
Taxes Receivable
A-8
Tax Title Liens Receivable
A-9
Property Acquired for Taxes (Assessed Value)
A-10
Revenue Accounts Receivable
A-11
Other Liens Receivable
A-12
Due from Special Improvement District
A-28
Due from Animal Control Fund
B-4
Due from Unemployment Insurance Trust Fund
B-12
Due from General Capital Fund
C-4
Due from Sewer Utility Operating Fund
E-10
Due from Parking Utility Operating Fund
F-11
Deferred Charges
Special Emergency Authorizations (40A:4-55)
A-26
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements
4
2024
$
23,702,578
$
1,595
3,054,776
74,665
26,833,614
2,069,820
700,986
2,664,500
36,745
134,730
67,067
3,326
368
1,911,628
293,819
1,783,000
9,665,989
1,270,000
1,270,000
$
37,769,603
$
EXHIBIT A
Page 1
2023
26,240,656
1,595
3,063,427
74,665
29,380,343
1,624,449
643,253
2,664,500
25,505
130,950
57,067
18,227
775
86,438
757,000
6,008,164
3,060,000
3,060,000
38,448,507
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS - CURRENT FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
LIABILITIES, RESERVES AND FUND BALANCE
Appropriation Reserves
A-3, A-14
$
3,298,906
$
Encumbrances Payable
A-15
1,801,160
Accounts Payable and Other Liabilities
A-16
256,722
Tax Overpayments
A-17
16,867
Prepaid Taxes
A-18
493,510
County Taxes Payable
A-22
232,507
Special Emergency Note Payable
A-27
Due to Rahway Redevelopment Agency
A-13
54,006
Due to Other Trust Fund
B-15
1,047,613
Due to General Capital Fund
C-4
Due to Water Utility Operating Fund
D-16
1,587,843
Reserve for Special Improvement District Taxes
A-24
70,067
Reserve for Federal and State Grants - Unappropriated
A-19
1,136,761
Reserve for Federal and State Grants - Appropriated
A-20
5,049,231
Reserve for Tax Appeals
A-25
970,418
Reserve for Muncipal Relief Fund Aid
A-29
16,015,611
Reserve for Receivables
A
9,665,989
Fund Balance
A-1
12,088,003
Total Liabilities, Reserves and
EXHIBIT A
Page2
2023
1,898,586
1,317,061
138,376
9,940
385,827
47,696
1,200,000
2,001,879
1,000
6,565,690
103,570
414,704
4,850,731
970,418
418,158
20,323,636
6,008,164
12,116,707
Fund Balance
$
37,769,603
$ 38,448,507
The Accompanying Notes are an Integral Part of these Financial Statements
5
EXHIBIT A-1
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS- CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Reference
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated
A-2
Miscellaneous Revenue Anticipated
A-2
Receipts from Delinquent Taxes
A-2
Receipts from Current Taxes
A-2
Non-Budget Revenues
A-2
Other Credits to Income
Unexpended Balance of Appropriation Reserves
A-14
Cancelled Appropriated Grant Reserves
A-20
Interfunds Liquidated
A
Statutory Excess - Animal Control Trust Fund
B-4
Total Income
EXPENDITURES
Budget Appropriations
Salaries and Wages
A-3
Other Expenses
A-3
Deferred Charges and Statutory Expenditures
A-3
Capital Improvements
A-3
Municipal Debt Service
A-3
County Taxes
A-21
Amount Due County for Added and Omitted Taxes
A-22
Local District School Tax
A-23
Special Improvement District Tax
A-24
Interfunds Advanced
A
Refund of Prior Year Revenue and Taxes
A-4
Total Expenditures
Adjustments
Less: Expenditures Included Above Which by Statute are
Required to be Raised in Subsequent Year's Budget
A-26
Adjusted Expenditures
Excess in Revenue
Fund Balance, Beginning of Year
A
Decreased by:
Utilized as Anticipated Revenue
A-1,A-2
Fund Balance, End of Year
A
The Accompanying Notes are an Integral Part of these Financial Statements
6
2024
$
3,000,000
25,184,973
1,457,648
108,679,274
1,091,636
1,509,020
239,802
919,507
3,106
142,084,966
28,530,700
23,868,923
10,182,246
500,000
7,204,417
15,328,964
232,507
49,928,320
400,000
4,059,208
148,385
140,383,670
1,270,000
139,113,670
2,971,296
12,116,707
15,088,003
3,000,000
$
12,088,003
2023
$
3,000,000
24,872,942
1,623,793
103,947,518
1,327,356
432,091
185,646
325,802
6,094
135,721,242
24,889,300
26,315,594
7,344,612
250,000
7,237,550
14,653,368
47,696
48,913,541
400,000
919,507
144,027
131,115,195
750,000
130,365,195
5,356,047
9,760,660
15,116,707
3,000,000
$ 12,116,707
CITY OF RAHWAY
STATEMENT OF REVENUES -REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
Surplus Anticipated
A-2
$
Miscellaneous Revenues
Licenses
Alcoholic Beverages
A-11
Other
A-11
Fees and Permits
A-11
Fines and Costs
Municipal Court
A-11
Interest and Costs on Taxes
A-11
Interest on Investments and Deposits
A-2
Anticipated Utility Operating Surplus- Water
A-11, D-4
Anticipated Utility Operating Surplus - Parking
A-11, F-4
Police Department Fees
A-11
Utility Operating Surplus of Prior Year
Water Utility
D-1
Parking Utility
F-1
Payments in Lieu of Taxes (PILOT)
Lower Essex St. - Denholtz Management
A-11
Rosegate
A-11
Senior Citizen Housing
A-11
Meyers Sr. Residence
A-11
Metro
A-11
Waters Edge
A-11
Lafeyette
A-11
Reva
A-11
Artist Housing
A-11
Domoch/Mint
A-11
R WJ Hospital
A-11
Meridia Brownstones
A-11
Cellular Phone Tower Fees
A-11
Vacant/Foreclosure House Registration
A-11
Police Security - Administrative Fees
A-11
Planning Board Application Fees
A-11
Street Open Permits
A-11
UCC Penalties
A-11
Comcast Cable Franchise Fee
A-11
Uniform Construction Code Fees
A-11
State Aid Without Offsetting Appropriations
Energy Receipts Taxes
A-11
Reserve for Municipal Relief Fund Aid
A-29
The Accompanying Notes are an Integral Part of these Financial Statements
7
Adopted
Added by
Budget
NJSA 40A:4-87
3,000,000
55,000
13,000
122,000
390,000
345,000
818,000
913,933
1,176,000
120,000
1,295,000
500,000
500,000
15,000
340,000
30,000
155,000
585,000
265,000
550,000
18,000
360,000
291,668
624,000
300,000
170,000
18,000
25,000
80,000
60,000
85,000
559,000
4,056,777
418,158
$
Actual
3,000,000
63,550
$
26,525
235,316
420,994
359,261
1,502,715
913,933
1,176,000
128,856
1,295,000
500,000
533,069
26,796
352,104
20,498
93,275
432,186
272,890
269,756
28,431
504,485
1,250,789
296,757
301,402
192,620
9,432
6,853
59,038
123,950
79,897
1,297,418
4,056,777
418,158
EXHIBIT A-2
Page 1
Excess or
(Deficit)
8,550
13,525
113,316
30,994
14,261
684,715
8,856
33,069
11,796
12,104
(9,502)
(61,725)
(152,814)
7,890
(280,244)
10,431
144,485
959,121
(327,243)
1,402
22,620
(8,568)
(18,147)
(20,962)
63,950
(5,103)
738,418
CITY OF RAHWAY
STATEMENT OF REVENUES - REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
Public and Private Revenues Offset with Appropriations
Clean Communities
A-19
$
Multiple Housing Inspections
A-19
Municipal Alliance on Alcoholism and Drug Abuse
A-19
Alcohol Education and Rehabilitation
A-6,A-19
Body Armor Grant
A-19
Local Recreation Improvement Grant
A-19
Selective Enformcment Management
A-19
Recycling Tonnage
A-19
CLEP Grant
A-19
NJ Health Strengthening
A-6
Public Health Inf
A-6
Kids Recreation Grant
A-19
National Opioid Settlement
A-6
Emergency Management
A-19
Stormater Assistance
A-19
Other Special Items of Revenue
U.C.U.A. - Host Community Fees
A-11
U.C.U.A. - Host Community Fees - Excess Tonnage
A-11
Solid Waste Fees
Rahway Housing Authority
A-11
Rahway Board of Education
A-11
Outside Health Services
Winfield
A-11
Hotel Fees
A-11
General Capital Fund Balance
C-1
Total Miscellaneous Revenues
Receipts from Delinquent Taxes
A-2
Amount to be Raised by Taxes for Municipal Budget
Local Tax for Municipal Purposes
Minimum Library Tax
Total Amount to be Raised by Taxes
A-2
Budget Totals
$
Non-Budget Revenues
A-2
The Accompanying Notes are an Integral Part of these Financial Statements
8
Modified
Added by
Budget
NJSA 40A:4-87
60,640
11,794
7,424
6,879
$
6,374
5,683
70,000
42,000
29,605
15,500
74,664
168,049
133,000
7,179
10,000
15,000
2,350,000
450,000
30,000
6,000
8,300
240,000
4,060,000
22,812,540
249,087
1,500,000
42,390,396
1,319,265
43,709,661
71,022,201
$
249,087
$
$
EXHIBIT A-2
Page2
Excess or
Actual
(Deficit)
60,640
11,794
7,424
13,253
5,683
70,000
42,000
29,605
15,500
74,664
168,049
133,000
7,179
10,000
15,000
2,367,596
$
17,596
482,661
32,661
10,401
(19,599)
(6,000)
8,531
231
343,262
103,262
4,060,000
25,184,973
2,123,346
1,457,648
(42,352)
43,720,218
1,329,822
1,319,265
45,039,483
1,329,822
74,682,104
$
3,410,816
1,091,636
75,773,740
CITY OF RAHWAY
STATEMENT OF REVENUES - REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Analysis of Current Tax Collections
Revenue from Collections
Allocated to School, County Taxes and
Special District Taxes
Add Appropriation "Reserve for Uncollected Taxes
Balance for Support of Municipal Budget Appropriations
Interest on Investments
Revenue Accounts Receivable
Due from Other Trust Fund
Due from General Capital Fund
Due from Unemployment Insurance Trust Fund
Due from Animal Control Fund
Non-Budget Revenue
Prior Year Refunds and Cancellations
PILOT - Housing authority
PILOT - Grarnrnercy
Uniform Fire Safety Act
Shared Services - Fanwood
Sale of Vehicles & Equipment
Other Miscellaneous
Zoning Maps/Ordinances
Court Settlements
Other Liens
FEMA Reimbursement
Tree Permits
Planning Board
Green the streets
Sale of Recyclables
Engineering Fees
Administrative Fee - Senior Citizens and Veterans Deductions
Garage Sale Fees
BOE Health Services
NSF Check Fees
Assessors Property Lists
Assessment Searches
Police Confiscated Cash
Copies
Cannibis
The Accompanying Notes are an Integral Part of these Financial Statements
9
Reference
A-8
A-21, A-22
A-23, A-24
A-3
A-2
A-11
B-15
C-4
B-12
B-4
A-2
A-2
EXHIBIT A-2
Page3
$
108,679,274
$
$
$
$
$
65,889,791
42,789,483
2,250,000
45,039,483
1,021,444
112,489
366,744
666
1,372
1,502,715
57,796
66,358
92,045
92,284
16,500
29,424
81,296
34,725
79,715
18,599
421,847
100
140
5,000
16,814
9,350
1,913
1,435
1,920
1,332
280
30
3,706
461
58,566
1,091,636
EXHIBIT A-3
Page 1
CITY OF RAHWAY
STATEMENT OF EXPENDITURES- REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Appropriation
Expended
Unexpended
Budget After
Paid or
Balances
Budget
Modification
Charged
Reserved
Cancelled
OPERATIONS - WITHIN "CAPS"
General Government
Department of Administration
Salaries and Wages
$
973,000
$
938,000
$
920,092
$
17,908
Other Expenses
1,025,000
1,125,000
1,119,052
5,948
Mayor's Office
Salaries and Wages
72,000
72,000
71,996
4
Municipal Council
Salaries and Wages
75,000
75,000
74,021
979
Other Expenses
1,000
1,000
245
755
City Clerk
Salaries and Wages
284,000
264,000
254,928
9,072
Other Expenses
86,000
86,000
59,547
26,453
Financial Administration (Treasury)
Salaries and Wages
574,000
574,000
546,333
27,667
Other Expenses
1,343,000
1,403,000
1,398,769
4,231
Audit Services
70,000
70,000
70,000
Revenue Administration (Tax Collection)
Salaries and Wages
223,000
223,000
222,785
215
Other Expenses
50,000
25,000
8,508
16,492
Tax Assessment Administration
Salaries and Wages
234,000
209,000
207,207
1,793
Other Expenses
50,000
50,000
45,624
4,376
Legal Services
Salaries and Wages
141,000
96,000
94,296
1,704
Other Expenses
850,000
650,000
607,346
42,654
Engineering
Salaries and Wages
380,000
421,000
420,298
702
Other Expenses
660,000
660,000
658,965
1,035
Building, Planning and Economic Development
Salaries and Wages
132,000
132,000
82,071
49,929
Other Expenses
155,000
155,000
56,365
98,635
Land Use Administration
Planning Board
Salaries and Wages
4,200
4,200
4,039
161
Other Expenses
20,000
20,000
6,905
13,095
Zoning Board of Adjustment
Salaries and Wages
4,200
4,200
4,039
161
Other Expenses
20,000
20,000
11,996
8,004
Property Maintenance
Salaries and Wages
226,000
208,000
200,945
7,055
Other Expenses
30,000
30,000
29,600
400
Insurance
Other Insurance
1,345,500
916,200
810,424
105,776
Employee Group Insurance
9,433,840
9,310,840
8,391,350
919,490
Health Benefit Waiver
150,000
150,000
150,000
Public Safety
Police Department
Salaries and Wages
8,940,000
9,502,000
8,982,724
519,276
Salaries and Wages - Special Emergency - Retirement Pay
850,000
809,698
40,302
Other Expenses
544,000
634,000
627,068
6,932
The Accompanying Notes are an Integral Part of these Financial Statements
10
EXHIBIT A-3
Page2
CITY OF RAHWAY
STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Aggrogriation
Exgended
Unexpended
Budget After
Paid or
Balances
Budget
Modification
Charged
Reserved
Cancelled
OPERATIONS - WITHIN "CAPS" (Continued)
Public Safety (Continued)
Office of Emergency Management
Salaries and Wages
$
106,000
$
108,000 $
107,770 $
230
Other Expenses
30,000
30,000
29,834
166
Fire Department
Salaries and Wages
6,209,000
6,269,000
6,093,595
175,405
Salaries and Wages - Special Emergency - Retirement Pay
270,000
270,000
Other Expenses
286,000
286,000
285,779
221
Public Works
Streets and Roads
Salaries and Wages
2,721,000
2,851,000
2,636,560
214,440
Salaries and Wages - Special Emergency - Retirement Pay
150,000
117,309
32,691
Other Expenses
1,552,000
1,552,000
1,290,025
261,975
Solid Waste and Recycling
Salaries and Wages
1,512,000
1,482,000
1,414,938
67,062
Other Expenses
1,694,000
1,694,000
1,513,507
180,493
Health and Human Services
Department of Health and Welfare
Salaries and Wages
855,000
705,000
701,453
3,547
Other Expenses
306,000
306,000
292,754
13,246
Environmental Commission
Salaries and Wages
4,000
4,000
3,975
25
Other Expenses
1,500
1,500
1,497
3
Parks and Recreation
Recreation Department
Salaries and Wages
1,041,000
1,141,000
1,048,252
92,748
Other Expenses
428,000
468,000
448,858
19,142
Senior Services
Salaries and Wages
297,000
274,000
271,615
2,385
Other Expenses
69,000
71,000
69,502
1,498
Social Justice Commission
Salaries and Wages
5,000
5,100
5,090
IO
Other Expenses
50,000
50,000
49,149
851
Municipal Court
Salaries and Wages
806,000
706,000
681,874
24,126
Other Expenses
87,000
87,000
70,806
16,194
Uniform Construction Code Enforcement
(NJSA 52:27D-120 etc.)
Construction Official
Salaries and Wages
646,000
675,000
674,875
125
Other Expenses
75,000
77,000
75,375
1,625
Municipal A.B.C. Board
Salaries and Wages
6,000
6,200
6,131
69
Other Expenses
1,500
1,500
1,473
27
Unclassified
Utility Expense and Bulk Purchases
Electricity
370,000
370,000
336,780
33,220
Heating Fuels
575,000
575,000
428,982
146,018
Telephone
178,000
153,000
132,961
20,039
Street Lighting
120,000
120,000
101,779
18,221
Contribution to Rahway Redevelopment Agency
100,000
100,000
100,000
Total Operations Within "CAPS"
48,226,740
49,466,740
46,209,734
3,257,006
Contingent
Total Operations Including Contingent
- Within "CAPS"
48,226,740
49,466,740
46,209,734
3,257,006
Detail:
Salaries & Wages
26,470,400
28,218,700
26,928,909
1,289,791
Other Expenses (Including Contingent)
21,756,340
21,248,040
19,280,825
1,967,215
The Accompanying Notes are an Integral Part of these Financial Statements
11
EXHIBIT A-3
Page 3
CITY OF RAHWAY
STATEMENT OF EXPENDITURES - REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
AQQroQriation
Ex12ended
Unexpended
Budget After
Paid or
Balances
Budget
Modification
Charged
Reserved
Cancelled
DEFERRED CHARGES AND
STATUTORY EXPENDITURES -
MUNICIPAL WITHIN "CAPS"
DEFERRED CHARGES
Prior Year Bills
$
11,940
$
11,940
$
2,900
$
9,040
STATUTORY EXPENDITURES
Contribution to:
Public Employees' Retirement System
1,496,406
1,496,406
1,484,406
12,000
Police and Firemen's Retirement System
4,528,900
4,528,900
4,528,900
Social Security
1,030,000
1,060,000
1,057,294
2,706
DCRP Contribution
25,000
25,000
15,425
9,575
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
7,092,246
7,122,246
7,088,925
33,321
Total General Appropriations for Municipal
Purposes Within "CAPS"
55,318,986
56,588,986
53,298,659
3,290,327
OPERATIONS - EXCLUDED FROM "CAPS"
Education Functions
Maintenance of Free Public Library
1,319,265
1,319,265
1,319,265
Public Safety
Police Dispatch 9-1-1 System
Salaries and Wages
313,000
312,000
304,276
7,724
Other Expenses
155,000
156,000
155,145
855
Insurance
Employee Group Insurance
96,160
96,160
96,160
Other Insurance
383,811
383,811
383,811
Public and Private Programs Offset with Revenues
Body Armor Replacement Program
5,683
5,683
5,683
Municipal Alliance on Alcohol and Drug Abuse
State Share
7,424
7,424
7,424
Local Match
1,856
1,856
1,856
Clean Communities Program
60,640
60,640
60,640
Multiple Housing Inspections
11,794
11,794
11,794
Recycling Tonnage Grant
29,605
29,605
29,605
Alcohol Education & Rehabilitation
6,879
13,253
13,253
CLEP Grant
15,500
15,500
15,500
Union County Kids Recreation Grant
133,000
133,000
133,000
Strengthening Local Health Capacity
74,664
74,664
Strengthening LPH
168,049
168,049
National Opioid Settlement
7,179
7,179
7,179
Emergency Management
10,000
10,000
10,000
Stormwater Assistance
15,000
15,000
15,000
Local Recreation
70,000
70,000
70,000
Selective Enforcment Management
42,000
42,000
42,000
Total Operations - Excluded from "CAPS"
2,683,796
2,932,883
2,924,304
8,579
Detail:
Salaries and Wages
313,000
312,000
304,276
7,724
Other Expenses
2,370,796
2,620,883
2,620,028
855
The Accompanying Notes are an Integral Part of these Financial Statements
12
EXHIBIT A-3
Page4
CITY OF RAHWAY
STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Aggrngriation
Exgended
Unexpended
Budget After
Paid or
Balances
Budget
Modification
Charged
Reserved
Cancelled
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"
Capital Improvement Fund
$
500,000
$
500,000
$
500,000
Total Capital Improvements - Excluded from "CAPS"
500,000
500,000
500,000
MUNICIPAL DEBT SERVICE- EXCLUDED FROM "CAPS"
Payment of Bond Principal
4,416,960
4,416,960
4,416,960
Interest on Bonds
1,223,585
1,223,585
1,223,585
Interest in Notes
925,000
925,000
922,603
$
2,397
Green Acres Loan
Repayment of Principal and Interest
50,000
50,000
47,395
2,605
Capital Grant Agreement - Rahway Redevelopment Agency
Library Project/ Arts Center Project
593,874
593,874
593,874
Total Municipal Debt Service
Excluded from "CAPS"
7,209,419
7,209,419
7,204,417
5,002
DEFERRED CHARGES
Special Emergency Authorization- 5 Years
3,060,000
3,060,000
3,060,000
Total Deferred Charges - Municipal-Excluded from "CAPS"
3,060,000
3,060,000
3,060,000
Total General Appropriations - Excluded from "CAPS"
13,453,215
13,702,302
13,688,721
$
8,579
5,002
Subtotal General Appropriations
68,772,201
70,291,288
66,987,380
3,298,906
5,002
Reserve for Uncollected Taxes
2,250,000
2,250,000
2,250,000
Total General Appropriations
$
71,022,201
$
72,541,288
$
69,237,380
$
3,298,906
$
5,002
The Accompanying Notes are an Integral Part of these Financial Statements
13
CITY OF RAHWAY
STATEMENT OF EXPENDITURES - REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Budget as Adopted
Special Emergency Authorization
Added by NJSA 40A:4-87
Cash Disbursements
Encumbrances Payable
Due to Rahway Redevelopment Agency
Transferred to Appropriated Grant Reserves
Deferred Charges
Reserve for Uncollected Taxes
The Accompanying Notes are an Integral Part of these Financial Statements
14
Reference
A-2
A-26
A-2
A-4
A-15
A-13
A-20
A-26
A-2
Budget
After
Modification
$ 71,022,201
1,270,000
249,087
$ 72,541,288
$
EXHIBIT A-3
Page 5
Paid or
Charged
61,439,378
1,770,205
54,006
663,791
3,060,000
2,250,000
69,237,380
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS - TRUST FUND
AS OF DECEMBER 31, 2024 AND 2023
ASSETS
Animal Control Fund
Cash
Community Development Trust Fund
Cash
Community Development Grants Receivable
Loans Receivable
Deferred Loans Receivable
Other Trust Fund
Cash
Due from Current Fund
Due from Sewer Utility Operating Fund
Unemployment Insurance Fund
Cash
Due from Other Trust Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements
15
Reference
2024
B-1
$
14,160
14,160
B-1
254,185
B-5
1,112,316
B-6
180,405
B-7
2,971,161
4,518,067
B-1
5,109,049
B-15
1,047,613
E-23
6,156,662
B-1
66,170
B-22
43,247
109,417
$ 10,798,306
EXHIBIT B
Page 1
2023
$
28,237
28,237
518,572
856,445
180,405
2,911,557
4,466,979
5,040,064
2,001,879
9,744
7,051,687
35,321
53,323
88,644
$
11,635,547
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS - TRUST FUND
AS OF DECEMBER 31, 2024 AND 2023
LIABILITIES, RESERVES AND FUND BALANCES
Animal Control Fund
Due to State of New Jersey
Reserve for Animal Control Expenditures
Due to Current Fund
Community Development Trust Fund
Due to General Capital Fund
Reserve for Loans Receivable
Encumbrances Payable
Reserve for Community Development Expenditures
Other Trust Fund
Due to Unemployment Insurance Trust Fund
Due to Water Utility Operating Fund
Miscellaneous Reserves and Deposits
Other Liabilities
Payroll Deductions Payable
Accrued Salaries and Wages
Reserve for Flex Spending
Unemployment Insurance Fund
Due to Current Fund
Reserve for Workers' Compensation
Reserve for Unemployment Compensation
Due to State of New Jersey
Total Liabilities and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements
16
Reference
2024
B-2
$
202
B-3
10,632
B-4
3,326
14,160
B-21
183,562
B-6, B-7
3,151,566
B-8
153,643
B-9
1,029,296
4,518,067
B-22
43,247
B-16
B-14
5,682,999
B-17
48,059
B-18
223,928
B-19
154,293
B-20
4,136
6,156,662
B-12
368
B-10
28,848
B-11
43,230
B-13
36,971
109,417
$ 10,798,306
EXHIBITB
Page 2
2023
$
44
9,966
18,227
28,237
382,017
3,091,962
228,368
764,632
4,466,979
53,323
911,024
5,590,065
256,621
41,492
193,549
5,613
7,051,687
775
14,892
72,977
88,644
$
11,635,547
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS - GENERAL CAPITAL FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
ASSETS
Cash
C-2, C-3
$ 10,313,553
Deferred Charges to Future Taxation
Funded
C-5
43,497,821
Unfunded
C-6
21,339,910
Grants Receivable
C-9
2,264,304
Due from Current Fund
C-4
Due from Community Development Trust Fund
B-21
183,562
Due from Water Utility Operating Fund
D-31
382,285
Due from Parking Utility Operating Fund
F-12
64,969
Total Assets
$ 78,046,404
LIABILITIES, RESERVES AND FUND BALANCE
Serial Bonds Payable
C-8
$ 43,379,428
Bond Anticipation Notes Payable
C-10
8,700,000
Green Acres Loans Payable
C-11
118,393
Contracts Payable
C-13
2,190,022
Improvement Authorizations:
Funded
C-7
2,340,529
Unfunded
C-7
12,248,368
Due to Current Fund
C-4
1,911,628
Capital Improvement Fund
C-12
41,362
Reserve for Grants Receivable
C-9
1,664,304
Reserve for Payment of Debt
C-14
432,538
Fund Balance
C-1
5,019,832
Total Liabilities, Reserves and
Fund Balance
$ 78,046,404
There were bonds and notes authorized but not issued on December 31, 2024 and 2023 of $13,477,618 and $7,223,382,
respectively (Exhibit C-15)
The Accompanying Notes are an Integral Part of these Financial Statements
17
EXHIBITC
2023
$
15,736,151
35,960,596
24,445,382
2,264,304
1,000
382,017
$
78,789,450
$
35,796,388
17,500,000
164,208
3,506,000
5,219,471
9,735,801
3,272
1,664,304
810
5,199,196
$
78,789,450
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASIS
GENERAL CAPITAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Balance, Beginning of Year
Increased by:
Premium on Bonds/Bond Anticipation Notes
Cancellation of Funded Improvement Authorizations
Decreased by:
Premium on Bonds Utilized to Fund Improvement Authorizations
Anticipated as Current Fund Budgeted Revenue
Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements
18
Reference
C
C-2
C-7
C-6
A-2
C
2024
$
5,199,196
671,582
3,369,054
9,239,832
160,000
4,060,000
4,220,000
$
5,019,832
EXHIBIT C-1
2023
$
5,747,896
259,699
191,601
6,199,196
1,000,000
1,000,000
$
5,199,196
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
WATER UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
ASSETS
Operating Fund
Cash
Cash - Change Fund
Grant Receivable
Due from Current Fund
Due from Other Trust Fund
Due from Water Utility Capital Fund
Due from Sewer Utility Capital Fund
Receivables and Other Assets With Full Reserves
Consumer Accounts Receivable
Deferred Charges
Overexpenditure of Appropriations
Overexpenditure of Appropriation Reserves
Total Operating Fund
Capital Fund
Cash
Loans Receivable
Fixed Capital
Fixed Capital Authorized and Uncompleted
Due from Water Utility Operating Fund
Total Capital Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements
19
Reference
D-5
D-7
D-27
D-16
B-16
D-15
D-30
D-11
D-4,D-28
D-28
D-5, D-6
D-8
D-9
D-10
D-15
2024
$
6,815,916
200
750,000
1,587,843
66,635
534,044
9,754,638
1,911,586
27,940
11,694,164
2,092,603
397,438
56,378,910
13,600,000
72,468,951
$ 84,163,115
$
$
EXHIBITD
Page 1
2023
510,886
200
3,000,000
6,565,690
911,024
10,987,800
1,576,305
26,669
12,590,774
574,913
397,438
56,104,090
14,304,369
658,246
72,039,056
84,629,830
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
WATER UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund
Appropriation Reserves
D-4, D-12
Encumbrances Payable
D-13
Accounts Payable and Other Liabilities
D-14
Water Rent Overpayments
D-29
Accrued Interest on Bonds and Notes
D-26
Due to General Capital Fund
D-31
Due to Water Utility Capital Fund
D-15
Due to Sewer Utility Operating Fund
E-11
Reserve for Receivables
D
Fund Balance
D-1
Total Operating Fund
Capital Fund
Serial Bonds Payable
D-22
NJ EIT Loan Payable
D-24
Bond Anticipation Notes Payable
D-23
Contracts Payable
D-19
Capital Improvement Fund
D-25
Improvement Authorizations
Funded
D-18
Unfunded
D-18
Due to Water Utility Operating Fund
D-15
Reserve for Amortization
D-20
Reserve for Deferred Amortization
D-21
Reserve for Future Capital Improvements
D-17
Fund Balance
D-2
Total Capital Fund
Total Liabilities, Reserves and Fund Balance
2024
$
677
751,315
882,704
123,051
177,158
382,285
1,209,495
3,526,685
1,911,586
6,255,893
11,694,164
6,864,000
11,058,453
10,245,000
653,200
106,472
19,933
5,860,254
66,635
35,166,644
304,208
703,152
1,421,000
72,468,951
$ 84,163,115
There were bonds and notes authorized but not issued on December 31, 2024 and 2023 of $6,340,605 and $9,230,633,
respectively (Exhibit D-32).
The Accompanying Notes are an Integral Part of these Financial Statements
20
$
$
EXHIBITD
Page2
2023
242,091
3,290,647
209,854
189,908
182,234
658,246
406,863
5,179,843
1,576,305
5,834,626
12,590,774
7,279,000
11,696,351
7,667,000
498,944
106,472
443,852
7,199,834
34,231,267
304,208
1,708,173
903,955
72,039,056
84,629,830
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS - WATER UTILITY OPERATING FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Revenue and Other Income Realized
Surplus Anticipated
Rents
Additional Water Rents
Water Connection Fees
Public and Private Programs Offset with Appropriations
Non-Budget Revenues
Other Credits to Income
Cancellation of Prior Year Accounts Payable
Unexpended Balance of Appropriation Reserves
Total Revenues
Expenditures
Budget Appropriations
Operating
Public and Private Revenues Offset with Revenues
Capital Improvements
Debt Service
Deferred Charges
Total Expenditures
Less:
Expenditures Included Above Which by Statute are
Deferred to Subsequent Year Budgets
Total Adjusted Expenditures
Excess in Revenues
Adjustments to Income Before Fund Balance
Surplus to General Budget
Statutory Excess to Fund Balance
Fund Balance, Beginning of Year
Decreased by:
Utilized as Anticipated Revenue
Utilized as Anticipated Revenue - Current Fund
Fund Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements
21
Reference
D-3
D-3
D-3
D-3
D-3
D-3
D-14
D-12
D-4
D-4
D-4
D-4
D-4
D-4
D-4
D
D-3
A-2
D
2024
$
9,197,184
2,073,964
366,000
3,290
11,640,438
6,930,940
2,080,569
26,669
9,038,178
27,940
9,010,238
2,630,200
(913,933)
1,716,267
5,834,626
7,550,893
1,295,000
$
6,255,893
EXHIBITD-1
2023
$
130,000
9,197,184
393,228
3,000,000
268,718
123,577
12,627
13,125,334
5,450,000
3,000,000
400,000
1,913,000
279
10,763,279
10,763,279
2,362,055
(906,721)
1,455,334
5,804,292
7,259,626
130,000
1,295,000
$
5,834,626
EXHIBITD-2
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS
WATER UTILITY CAPITAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Balance, Beginning of Year
Increased by:
Funded Improvement Authorizations Cancelled
Premium on Issuance of Bonds and Notes
Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements
22
Reference
D
D-18
D-5
D
$
2024
903,955
$
423,919
93,126
2023
893,318
10,637
$
1,421,000
$
903,955
=========
Rents
Additional Rents
Non-Budget Revenue
Analysis on Non-budget Revenue
Interest on Investments
Water Connection Fees
CITY OF RAHWAY
STATEMENT OF REVENUES - REGULATORY BASIS
WATER UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
Anticipated
D-l,D-11
$9,197,184
D-l,D-11
732,816
$9,930,000
Cash Receipts
Due from Water Utility Capital Fund
The Accompanying Notes are an Integral Part of these Financial Statements
23
EXHIBIT D-3
Excess
Realized
(Deficit)
$
9,197,184
2,073,964
$ 1,341,148
11,271,148
$ 1,341,148
366,000
$
11,637,148
$
318,452
47,548
$
366,000
$
303,460
62,540
$
366,000
CITY OF RAHWAY
STATEMENT OF EXPENDITURES -REGULA TORY BASIS
WATER UTILITY OPERA TING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Appropriation
Expended
Budget
After
Paid or
Budget
Modification
Charged
Reserved
Operating
Management Fee
Other Expenses
Other Expenses-Carbon Filter Replacements
Debt Service
Payment of Bond Principal
Payment of Bond Anticipation Notes
Interest on Bonds
Interest on Notes
Principal and Interest on Loans
Deferred Charges
Overexpenditure of Appropriations
Surplus (General Budget)
Cash Disbursements
Encumbrances Payable
Due to Current Fund
Accrued Interest on Bonds and Notes
Deferred Charges
$4,993,000
710,000
1,200,000
415,000
306,398
230,000
385,000
750,000
26,669
913,933
$9,930,000
Reference
D-5
D-13
A-2
D-26
D-28
$ 4,993,000
710,000
1,200,000
415,000
306,398
230,000
385,000
750,000
26,669
913,933
$ 9,930,000
The Accompanying Notes are an Integral Pati of these Financial Statements
24
$4,992,935
737,940
1,199,388
415,000
306,398
226,408
385,000
747,763
26,669
913,933
$9,951,434
$7,920,529
751,315
913,933
338,988
26,669
$9,951,434
$
65
612
$
677
EXHIBIT D-4
Overexpenditure
Cancelled
$
27,940
$
3,592
2,237
$
27,940
$
5,829
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS- REGULATORY BASIS-
SEWER UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
ASSETS
Operating Fund
Cash
E-5
Due from Water Utility Operating Fund
E-11
Due from Sewer Utility Capital Fund
E-12
Due from Parking Utility Operating Fund
F-10
Receivables and Other Assets With Full Reserves
Consumer Accounts Receivable
E-7
Total Operating Fund
Capital Fund
Cash
E-5, E-6
Fixed Capital
E-8
Fixed Capital Authorized and Uncompleted
E-9
Due from Sewer Utility Operating Fund
E-12
Total Capital Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements
25
2024
$
1,910,873
1,209,495
3,120,368
774,432
3,894,800
4,793,124
5,306,426
9,603,000
511,854
20,214,404
$
24,109,204
$
$
EXHIBITE
Page 1
2023
652,318
406,863
60,687
1,097,000
2,216,868
663,058
2,879,926
1,668,348
4,505,428
9,093,000
15,266,776
18,146,702
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
SEWER UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund
Appropriation Reserves
E-4, E-13
$
111,122
Due to Current Fund
E-10
293,819
Due to Sewer Capital
E-12
511,854
Due to Other Trust Fund
E-23
Accrued Interest on Bonds, Notes and Loans
E-20
65,100
981,895
Reserve for Receivables
E
774,432
Fund Balance
E-1
2,138,473
Total Operating Fund
3,894,800
Capital Fund
Serial Bonds Payable
E-14
3,472,572
NJ Environmental Infrastructure Loan Payable
E-15
61,349
Bond Anticipation Notes Payable
E-16
3,535,000
Due to Water Utility Operating Fund
· D-30
534,044
Due to Sewer Utility Operating Fund
E-12
Improvement Authorizations
Funded
E-17
1,030,701
Unfunded
E-17
5,669,951
Contracts Payable
E-18
546,630
Capital Improvement Fund
E-19
374,500
Reserve for Amortization
E-21
4,163,805
Deferred Reserve for Amortization
E-22
6,700
Fund Balance
E-2
819,152
Total Capital Fund
20,214,404
Total Liabilities, Reserves and Fund Balance
$
24,109,204
$
$
EXHIBITE
Page2
2023
155,563
86,438
9,744
60,973
312,718
663,058
1,904,150
2,879,926
3,735,612
80,423
60,687
1,574,249
4,717,355
48,545
374,500
4,270,693
6,700
398,012
15,266,776
18,146,702
There were bonds and notes authorized but not issued of$3,670,000 and $5,505,000 on December 31, 2024
and 2023, respectively. (Exhibit E-24)
The Accompanying Notes are an Integral Part of these Financial Statements
26
EXHIBITE-1
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS - SEWER UTILITY OPERATING FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Reference
Revenue and Other Income Realized
Surplus Anticipated
E-3
Rents
E-3
Industrial Sewer Flow Charges
E-3
Sewer Connection Fees
E-3
Non-Budget Revenues
E-3
Other Credits to Income
Unexpended Balance of Appropriation Reserves
E-13
Cancelled Prior Year Liabilities
E
Total Income
Expenditures
Budget Appropriations
Operating
E-4
Debt Service
E-4
Deferred Charges and Statutory Expenditures
E-4
Total Expenditures
Excess in Revenues
Fund Balance, Beginning of Year
E
Decreased by:
Utilized as Anticipated Revenue
E-3
Fund Balance, End of Year
E
The Accompanying N ates are an Integral Part of these Financial Statements
27
2024
$
818,000
6,987,094
208,212
27,219
140,631
155,563
8,336,719
6,848,000
420,396
16,000
7,284,396
1,052,323
1,904,150
2,956,473
818,000
$
2,138,473
2023
$
551,748
6,008,081
157,629
59,522
74,827
155,057
10,000
7,016,864
6,136,000
552,214
20,248
6,708,462
308,402
2,147,496
2,455,898
551,748
$
1,904,150
EXHIBITE-2
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS
SEWER UTILITY CAPITAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Balance, Beginning of Year
Increased by:
Funded Improvement Authorizations Cancelled
Premium on Bonds/Bond Anticipation Notes
Balance, End of Year
Reference
E
E-17
E-5
E
The Accompanying N ates are an Integral Part of these Financial Statements
28
$
$
398,012
$
389,002
32,138
397,452
560
819,152
$
398,012
========
Surplus Anticipated
Rents
Additional Sewer Rents
Industrial Sewer Flow Charges
Sewer Connection Fees
Non-Budget Revenue
Analysis of Non-Budget Revenue:
Interest on Investments
Vending Machines
CITY OF RAHWAY
STATEMENT OF REVENUES - REGULATORY BASIS
SEWER UTILITY OPERA TING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
Anticipated
E-1
$
818,000
E-1, E-7
6,008,000
E-1, E-7
257,000
E-1, E-5
155,000
E-1, E-5
50,000
E-4
$
7,288,000
Cash Receipts
Due from Sewer Utility Capital Fund
The Accompanying Notes are an Integral Part of these Financial Statements
29
Realized
$
818,000
6,008,000
979,094
208,212
27,219
8,040,525
140,631
$
8,181,156
$
121,651
18,980
$
140,631
$
42,649
97,982
$
140,631
$
$
EXHIBITE-3
Excess
(Deficit)
722,094
53,212
(22,781)
752,525
CITY OF RAHWAY
STATEMENT OF EXPENDITURES -REGULATORY BASIS
SEWER UTILITY OPERA TING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
A1212ro12riation
Budget
Operating
Salaries and Wages
$
245,000
Other Expenses
125,000
Sewer Treatment Expense
Rahway Valley Sewer Authority
6,400,000
Sewer Permit Fees
78,000
Debt Service
Payment of Bond Principal
265,000
Interest on Bonds
130,000
Interest on Notes
9,000
Principal and Interest on Loans
20,000
Statutory Expenditures
Social Security System (O.A.S.I.)
16,000
$
7,288,000
Reference
E-3
Cash Disbursements
E-5
Due to Current Fund
E-10
Accrued Interest on Bonds and Notes
E-20
The Accompanying Notes are an Integral Part of these Financial Statements
30
Budget
After
Modification
$
251,000
119,000
6,399,000
79,000
265,000
130,000
9,000
20,000
16,000
$
7,288,000
$
$
$
$
Ex12ended
Paid or
Charged
250,910
$
19,549
6,388,743
78,010
263,040
128,360
9,000
19,996
15,666
7,173,274
$
E-1
6,666,972
368,021
138,281
7,173,274
EXHIBITE-4
Reserved
Cancelled
90
99,451
10,257
990
$
1,960
1,640
4
334
111,122
$
3,604
E,E-1
ASSETS
Operating Fund
Cash
Total Operating Fund
Capital Fund
Cash
Fixed Capital
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
PARKING UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
F-5
$
5,463,838
5,463,838
F-5, F-6
783,214
F-7
11,190,396
Fixed Capital Authorized and Uncompleted
F-8
1,355,000
Due from Parking Utility Operating Fund
F-9
9,140
Total Capital Fund
13,337,750
Total Assets
$
18,801,588
31
$
$
EXHIBITF
Page 1
2023
6,872,992
6,872,992
97,392
11,190,396
1,355,000
688,435
13,331,223
20,204,215
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
PARKING UTILITY FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund
Appropriation Reserves
F-4, F-14
$
42,200
Encumbrances Payable
F-15
46,753
Accounts Payable
F-16
16,551
Due to Current Fund
F-11
1,783,000
Due to General Capital Fund
F-12
64,969
Due to Sewer Utility Operating Fund
F-10
Due to Parking Utility Capital Fund
F-9
9,140
Reserve for Rate Stabilization
F-13
900,000
Accrued Interest on Bonds and Notes
F-17
29,176
Reserve for Security Deposits
F-18
2,891,789
Fund Balance
F-1
2,572,049
Total Operating Fund
5,463,838
Capital Fund
Serial Bonds Payable
F-19
2,245,000
Bond Anticipation Notes Payable
F-20
1,268,000
Reserve for Amortization
F-21
9,032,396
Reserve fo~ Future Capital Improvements
F-22
186,524
Contracts Payable
F-23
Improvement Authorizations
Unfunded
F-24
532,458
Fund Balance
F-2
73,372
Total Capital Fund
13,337,750
Total Liabilities, Reserves and Fund Balance
$
18,801,588
There were no bonds and notes authorized but not issued at December 31, 2024 and 2023.
32
$
$
EXHIBITF
Page2
2023
223,030
69,656
14,006
757,000
1,097,000
688,435
1,200,000
35,270
3,265
4,087,662
2,785,330
6,872,992
2,445,000
1,303,000
8,797,396
186,524
2,500
534,958
61,845
13,331,223
20,204,215
EXHIBITF-1
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS - PARKING UTILITY OPERATING FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Revenue and Other Income Realized
Surplus Anticipated
Parking Fees
Ground Lease
Reserve for Rate Stabilization
Non-Budget Revenues
Other Credits to Income
Unexpended Balance of Appropriation Reserves
Cancelled Prior Year Liabilities
Total Revenues
Expenditures
Budget Appropriations
Operating
Debt Service
Deferred Charges and Statutory Expenditures
Total Expenditures
Excess in Revenue
Adjustments to Income Before Fund Balance
Surplus to General Budget
Statutory Excess to Fund Balance
Fund Balance, Beginning of Year
Decreased by:
Utilized as Anticipated Revenue
Utilized as Anticipated Revenue - Current Fund
Fund Balance, End of Year
33
Reference
F-3
F-3
F-3
F-3
F-3
F-14
F
F-4
F-4
F-4
F-4
F
F-3
A-2
F
$
$
500,000
1,603,288
$
500,743
300,000
240,911
198,677
3,343,619
940,000
403,900
37,000
1,380,900
1,962,719
(1,176,000)
786,719
2,785,330
3,572,049
500,000
500,000
500,000
1,467,975
531,269
300,000
294,998
202,255
17,007
3,313,504
940,000
366,309
37,000
1,343,309
1,970,195
(1,097,000)
873,195
3,062,135
3,935,330
500,000
650,000
2,572,049
$
2,785,330
=============
EXHIBIT F-2
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS
PARKING UTILITY CAPITAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Reference
Balance, Beginning of Year
F
Increased by:
Premium on Bond Anticipation Notes
F-5
Balance, End of Year
F
34
$
$
61,845
$
11,527
2023
42,507
19,338
73,372
$
61,845
=========
Surplus Anticipated
Parking Fees
Ground Lease
Reserve for Rate Stabilization
CITY OF RAHWAY
STATEMENT OF REVENUES -REGULATORY BASIS
PARKING UTILITY OPERA TING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
Anticipated
F-1
F-1
F-1
F-1
$
500,000
1,200,000
558,000
300,000
$
F-4
$
2,558,000
$
Non-Budget Revenue
Analysis of Realized Revenue:
Parking Fees
Other
Interest on Investments
Non-Budget Revenue
Cash Receipts
Due from Parking Utility Capital Fund
The Accompanying Notes are an Integral Part of these Financial Statements
35
$
$
$
$
$
EXHIBITF-3
Excess
Realized
(Deficit)
500,000
1,603,288
$
403,288
500,743
(57,257)
300,000
2,904,031
=$ ==3=46==,0=3=1
240,911
3,144,942
1,191
239,720
240,911
213,654
27,257
240,911
CITY OF RAHWAY
STATEMENT OF EXPENDITURES -REGULATORY BASIS
PARKING UTILITY OPERA TING FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Appropriation
Budget
After
Paid or
Expended
Budget
Modification
Charged
Reserved
Operating
Salaries and Wages
$
420,000
$
Other Expenses
450,000
Employee Group Insurance
70,000
Debt Service
Payment of Bond Principal
200,000
Payment on Bond Anticipation Notes
35,000
Interest on Bonds
110,000
Interest on Notes
60,000
Statutory Expenditures
Contribution to Public Employees' Retirement System
12,000
Social Security System (O.A.S.I.)
25,000
Surplus (General Budget)
1,176,000
$
2,558,000
$
Reference
F-3
Cash Disbursements
F-5
Due to Current Fund
F-11
Encumbrances Payable
F-15
Accrued Interest on Bonds and Notes
F-17
The Accompanying Notes are an Integral Part of these Financial Statements
36
425,000
$
422,019
$
2,981
445,000
405,781
39,219
70,000
70,000
200,000
200,000
35,000
35,000
110,000
108,900
60,000
60,000
12,000
12,000
25,000
25,000
1,176,000
1,176,000
2,558,000
$
2,514,700
$
42,200
F-1
F, F-1
$
1,123,047
1,176,000
46,753
168,900
$
2,514,700
EXHIBIT F-4
Cancelled
$
1,100
$
1,100
CITY OF RAHWAY
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -
GENERAL FIXED ASSETS ACCOUNT GROUP
AS OF DECEMBER 31, 2024 AND 2023
2024
ASSETS
Land
$ 13,925,600
Buildings and Building Improvements
25,848,831
Machinery and Equipment
16,968,136
Total Assets
$ 56,742,567
LIABILITIES AND RESERVES
EXHIBIT G
2023
$
13,925,600
23,230,282
16,177,221
$
53,333,103
Investment in General Fixed Assets
$ 56,742,567 $
53,333,103
The Accompanying Notes are an Integral Part of these Financial Statements
37
NOTES TO FINANCIAL STATEMENTS
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
Reporting Entity
The City of Rahway (the "City") was incorporated in 1858 and operates under the Faulkner Act, an elected Mayor and
Council Plan B form of government. The Mayor and nine members of the City Council are elected to four-year terms.
Six members of the Council are elected from each of six wards. Three Council members are elected at-large at the
same time as the Mayor, two years after the ward seats are up for an election. Under the City's form of government, all
executive and administrative authority is rested in the office of the Mayor, who is the Chief Executive Officer of the
City. The City Council exercises all legislative powers including final adoption of the municipal budget and bond
ordinances. A Business Administrator is appointed by the Mayor and is responsible for the implementation of the
policies of the Mayor and Council, the administration of all City affairs and for the day to day operations of the City.
The Business Administrator is the Chief Administrator Officer of the City. The City's major operations include public
safety, road repair and maintenance, sanitation, fire protection, recreation and parks, health services, water, sewer and
parking services, and general administrative services.
GASB requires the financial reporting entity to include both the primary government and component units. Component
units are legally separate organizations for which the City is financially accountable.
The City is financially
accountable for an organization if the City appoints a voting majority of the organization's governing board and (1) the
City is able to significantly influence the programs or services performed or provided by the organization; or (2) the
City is legally entitled to or can otherwise access the organization's resources; the City is legally obligated or has
otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the
City is obligated for the debt of the organization. Component units may also include organizations that are fiscally
dependent on the City in that the City approves the budget, the issuance of debt or the levying of taxes. The City is not
includable in any other reporting entity as a component unit.
The financial statements contained herein include only those boards, bodies, officers or commissions as required by NJS
40A:5-5. Accordingly, the financial statements of the City do not include the municipal library and or redevelopment
agency, which are considered component units under GAAP. Complete financial statements of the above component
units can be obtained by contacting the Treasurer of the respective entity.
B.
Description of Regulatory Basis of Accounting
The financial statements of the City of Rahway have been prepared on a basis of accounting in conformity with
accounting principles and practices prescribed or permitted by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey (the "Division") which is a regulatory basis of accounting other than
accounting principles generally accepted in the United States of America (GAAP).
Such principles and practices are
designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of
reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City
accounts for its financial transactions through separate funds, which differ from the fund structure required by GAAP.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. GASB has adopted accounting statements to be used by
governmental units when reporting financial position and results of operations in accordance with accounting principles
generally accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do not
prepare financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements.
However under the regulatory basis of accounting municipalities are required to follow GASB pronouncements with
regard to disclosure requirements for notes to the financial statements.
38
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Presentation - Financial Statements
The City uses funds, as required by the Division, to report on its financial position and the results of its operations. Fund
accounting is designed to demonstrate legal compliance and to aid financial administration by segregating transactions
related to certain City functions or activities. The City also uses an account group, which is designed to provide
accountability for certain assets that are not recorded in those Funds.
The City has the following funds and account group:
Current Fund - This fund is used to account for the revenues and expenditures for governmental operations of a
general nature and the assets and liabilities related to such activities, including Federal and State grants not
accounted for in another fund.
Trust Funds - These funds are used to account for assets held by the government in a trustee capacity. Funds held by
the City as an agent for individuals, private organizations, or other governments are recorded in the Trust Funds.
Animal Control Fund - This fund is used to account for fees collected from dog and cat licenses and
expenditures which are regulated by NJS 4: 19-15 .11.
Community Development Trust Fund - This fund is used to account for grant proceeds, program income and
related expenditures for Federal Block grant entitlements.
Other Trust Fund - This fund is established to account for the assets and resources, which are held by the
City as a trustee or agent for individuals, private organizations, other governments and/or other funds.
These funds include dedicated fees/proceeds collected, developer deposits, payroll related deposits and
funds deposited with the City as collateral.
Unemployment Insurance Fund - This fund is used to account for employee and employer contributions for
the purpose of providing unemployment benefits to eligible former employees.
General Capital Fund - This fund is used to account for the receipt and disbursement of funds used and related
financial transactions related to the acquisition or improvement of general capital facilities and other capital assets,
other than those acquired in the Current Fund.
Water Utility Fund - This fund is used to account for the revenues and expenditures for the operation of the City's
water utility and the assets and liabilities relative to such activities. Acquisition or improvement of capital facilities
and other capital assets for the water utility is accounted for in the capital section of the fund.
39
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.
Basis of Presentation -Financial Statements (Continued)
Sewer Utility Fund - This fund is used to account for the revenues and expenditures for the operation of the City's
sanitary sewerage system and the assets and liabilities relative to such activities. Acquisition or improvement of
capital facilities and other capital assets for the sewer utility is accounted for in the capital section of the fund.
Parking Utility Fund-This fund is used to account for the revenues and expenditures for the operation of the City's
parking facilities and services. Acquisition or improvement of capital facilities and other capital assets for the
parking utility is accounted for in the capital section of the fund.
General Fixed Assets Account Group - This account group is used to account for all general fixed assets of the City,
other than those accounted for in the water and sewer utility funds. The City's infrastructure is not reported in the
account group.
Comparative Data - Comparative data for the prior year has been presented in the accompanying financial statements
in order to provide an understanding of changes in the City's financial position and operations. However, comparative
data have not been presented in all statements because their inclusion would make certain statements unduly complex
and difficult to understand.
Reclassifications - Certain reclassifications may have been made to the December 31, 2023 balances to conform to the
December 31, 2024 presentation.
Financial Statements - Regulatory Basis
The GASB Codification also requires the financial statements of a governmental unit to be presented in the basic
financial statements in accordance with GAAP. The City presents the regulatory basis financial statements listed in the
table of contents which are required by the Division and which differ from the basic financial statements required by
GAAP. In addition, the Division requires the regulatory basis financial statements listed in the table of contents to be
referenced to the supplementary schedules. This practice differs from reporting requirements under GAAP.
D.
Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the accounting principles and practices prescribed by
the Division in accordance with the regulatory basis of accounting. Measurement focus indicates the type of resources
being measured. The basis of accounting indicates the timing of transactions or events for recognition in the financial
statements.
The City of Rahway follows a modified accrual basis of accounting. Under this method of accounting, revenues, except
State/Federal Aid, are recognized when received and expenditures are recorded when incurred.
The accounting
principles and practices prescribed or permitted for municipalities by the Division ("regulatory basis of accounting")
differ in certain respects from accounting principles generally accepted in the United States of America (GAAP)
applicable to local government units. The more significant differences are as follows:
40
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Cash and Investments - Cash includes amounts in demand deposits as well as short-term investments with a maturity
date within three months of the date acquired by the government. Investments are reported at cost and are limited by
N.J.S.A. 40A:5-15.1 et seq. GAAP requires that all investments be reported at fair value.
Inventories - The costs of inventories of supplies for all funds are recorded as expenditures at the time individual items
are purchased. The costs of inventories are not included on the various balance sheets. GAAP requires inventories to
be recorded as assets in proprietary-type funds.
Property Tax Revenues/Receivables - Real property taxes are assessed locally, based upon the assessed value of the
property. The tax bill includes a levy for Municipal, County, and School purposes. The bills are mailed annually in
June for that calendar year's levy. Taxes are payable in four quarterly installments on February 1, May 1, August 1, and
November 1. The amounts of the first and second installments are determined as one-quarter of the total tax levied
against the property for the preceding year. The installment due the third and fourth quarters is determined by taking
the current year levy less the amount previously charged for the first and second installments, with the remainder being
divided equally. If unpaid on these dates, the amount due becomes delinquent and subject to interest at 8% per annum,
or 18% on any delinquency amount in excess of $1,500. A penalty ofup to 6% of the delinquency may be imposed on
a taxpayer with a delinquency in excess of $10,000 who fails to pay that delinquency prior to the end of the fiscal year
in which the charges become delinquent. The school levy is turned over to the Board of Education as expenditures are
incurred, and the balance, if any, must be transferred as of June 30, of each fiscal year. County taxes are paid quarterly
on February 15, May 15, August 15 and November 15, to the County by the City. When unpaid taxes or any municipal
lien, or part thereof, on real property, remains in arrears on April first in the year following the calendar year levy when
the same became in arrears, the collector in the municipality shall, subject to the provisions of the New Jersey Statutes,
enforce the lien by placing the property on a standard tax sale. The City also has the option when unpaid taxes or any
municipal lien, or part thereof, on real property remains in arrears on the 11th day of the eleventh month in the fiscal
year when the taxes or lien became in arrears, the collector in the municipality shall, subject to the provisions of the
New Jersey Statutes, enforce the lien by placing property on an accelerated tax sale, provided that the sale is conducted
and completed no earlier than in the last month of the fiscal year.
The City may institute annual in rem tax foreclosure
proceedings to enforce the tax collection or acquisition of title to the property. In accordance with the accounting
principles prescribed by the State of New Jersey, current and delinquent taxes are realized as revenue when collected.
Since delinquent taxes and liens are fully reserved, no provision has been made to estimate that portion of the tax
receivable and tax title liens that are uncollectible. GAAP requires property tax revenues to be recognized in the
accounting period when they become susceptible to accrual (i.e., when they are both levied and available), reduced by
an allowance for doubtful accounts.
Miscellaneous Revenues/Receivables - Miscellaneous revenues are recognized on a cash basis. Receivables for the
miscellaneous items that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the
City's Current Fund. GAAP requires such revenues to be recognized in the accounting period when they become
susceptible to accrual (i.e., when they are both measurable and available).
Utility Revenues/Receivables - Water and sewer utility charges are levied quarterly based upon a flat service charge
and if applicable, an excess consumption or usage charge. Parking utility charges are based on rates approved by City
ordinance. Revenues from these sources are recognized on a cash basis. Receivables that are susceptible to accrual are
recorded with offsetting reserves on the balance sheet of the City's water, sewer and parking utility operating funds.
GAAP requires such revenues to be recognized in the accounting period when they become susceptible to accrual,
reduced by an allowance for doubtful accounts.
41
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Grant and Similar Award Revenues/Receivables - Federal and State grants, entitlements or shared revenues received
for purposes normally financed through the Current Fund are recognized when anticipated in the City's budget. GAAP
requires such revenues to be recognized as soon as all eligibility requirements imposed by the grantor or provider have
been met.
Property Acquired for Taxes - Property acquired for taxes is recorded in the Current Fund at the assessed valuation
when such property was acquired, and is fully reserved. GAAP requires such property to be recorded as a capital asset
in the government-wide financial statements at fair value on the date of acquisition.
Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created by
charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other
funds are not offset by reserves. GAAP does not require the establishment of an offsetting reserve for interfunds and,
therefore, does not recognize income in the year liquidated.
Deferred Charges - Certain expenditures, operating deficits and other items are required to be deferred to budgets of
succeeding years. GAAP requires expenditures, operating deficits and certain other items generally to be recognized
when incurred, if measurable.
Funded and unfunded debt authorizations for general capital projects are also recorded as deferred charges and
represent permanent long-term debt issues outstanding (funded) and temporary debt issues outstanding or unissued debt
authorizations (unfunded), respectively. GAAP does not permit the recording of deferred charges for funded and
unfunded debt authorizations.
Appropriation Reserves - Appropriation reserves are recorded as liabilities and are available, until lapsed at the close
of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding year. Lapsed
appropriation reserves are recorded as additions to income. Appropriation reserves do not exist under GAAP.
Expenditures - Expenditures are recorded on the "budgetary" basis of accounting.
Generally, expenditures are
recorded when an amount is encumbered for goods or services through the issuance of a purchase order in conjunction
with an encumbrance accounting system. Outstanding encumbrances at December 31, are reported as a cash liability in
the financial statements. Unexpended or uncommitted appropriations, at December 31, are reported as expenditures
through the establishment of appropriation reserves unless cancelled by the governing body.
GAAP requires
expenditures to be recognized in the accounting period in which the fund liability is incurred, if measurable, except for
unmatured interest on general long-term debt, as well as expenditures related to compensated absences and claims and
judgements, which are recognized when due.
Encumbrances - Contractual orders outstanding at December 31, are reported as expenditures and liabilities through
the establishment of an encumbrance payable. Encumbrances do not constitute expenditures or liabilities under GAAP.
Compensated Absences - Expenditures relating to obligations for unused vested accumulated vacation and sick leave
are not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39
for the future payment of compensated absences. GAAP requires that the amount that would normally be liquidated
with expendable available financial resources be recorded as an expenditure in the operating funds and the remaining
obligations are recorded as a long-term obligation in the proprietary funds and government-wide financial statements.
42
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Tax Appeals and Other Contingent Losses - Losses arising from tax appeals and other contingent losses are
recognized at the time a decision is rendered by an administrative or judicial body; however, municipalities may
establish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses.
GAAP requires such amounts to be recorded when it is probable that a loss has been incurred and the amount of such
loss can be reasonably estimated.
Reserve for Uncollected Taxes - Reserve for Uncollected Taxes is a non-spending budget appropriation account
required to provide assurance that cash collected for property taxes levied in the current year will provide sufficient cash
flow to meet expected budgetary obligations.
The minimum amount required to be budgeted in Reserve for
Uncollected Taxes is determined utilizing the actual percentage of property taxes collected in the immediate preceding
budget year, unless allowable alternative methods are utilized with the approval of the Division. A Reserve for
Uncollected Taxes is not established or required under GAAP.
Pensions - The City appropriates in its annual budget the amount required to be paid for pension contributions as
determined by the State administered pension systems. Under the regulatory basis of accounting the City is only
required to disclose in the Notes to the Financial Statements it's share of the actuarially determined net pension
liabilities, deferred outflow of resources, deferred inflow of resources and pension expense (benefit) related to the State
administered pension system. GAAP requires these actuarially determined amounts to be reported in the proprietary
funds and government-wide financial statements.
Other Post-Employment Benefits (OPEB) - The City funds its employer paid post-retirement medical benefits on a
pay-as-you-go basis. Under the regulatory basis of accounting the City is only required to disclose in the Notes to the
Financial Statements it's actuarially determined net OPEB liability, deferred outflow of resources, deferred inflow of
resources and OPEB expense (benefit). GAAP requires these actuarially determined amounts to be reported in the
proprietary funds and government-wide financial statements.
General Fixed Assets - In accordance with NJAC 5:30-5.6, Accounting for Governmental Fixed Assets, the City of
Rahway has developed a fixed assets accounting and reporting system. Fixed assets are defined by the City as assets
with an initial, individual cost of $2,000 and an estimated useful life in excess of two years.
Fixed assets used in governmental operations (general fixed assets) are accounted for in the General Fixed Assets
Account Group. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than
buildings, such as roads, bridges, curbs and gutters, and streets and sidewalks are not capitalized. General fixed assets
acquired under capital financing agreements are capitalized at their acquisition cost. Intangible right-to-use leased assets
and intangible right-to-use IT software (SBITAs) are not capitalized.
General Fixed Assets purchased after January 1, 2020 are stated as cost.
Donated fixed assets are recorded at
acquisition value at the date of donation.
General Fixed Assets purchased prior to January 1, 2020 are stated as follows:
Land
Buildings and Improvements
Machinery and Equipment
No depreciation has been provided for in the financial statements.
43
Assessed Value
Estimated Historical Cost
Estimated Historical Cost
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
General Fixed Assets (Continued)
Expenditures for construction in progress are recorded in the General Capital Fund until such time as the construction is
completed and put into operation for general fixed assets.
Accounting for utility fund "fixed capital" remains unchanged under NJAC 5:30-5.6.
Property and equipment purchased by the water, sewer and parking utility funds are recorded in the capital account at
cost and are adjusted for disposition and abandonment. The amounts shown do not purport to represent reproduction
costs or current value. Contributions in aid of construction are not capitalized. The balance in the Reserve for
Amortization and Deferred Reserve for Amortization accounts in the Utility Capital Funds represents charges to
operations for the costs of acquisitions of property, equipment and improvements.
The utilities do not record
depreciation on fixed assets.
GAAP requires that capital assets, including intangible right-to-use leased assets and intangible right-to-use IT software
(SBITAs), be recorded in proprietary-type funds as well as the government-wide financial statement at historical or
estimated historical cost if actual historical cost is not available. In addition, GAAP requires depreciation on capital
assets to be recorded in proprietary funds as well as in the government-wide financial statements.
Use of Estimates -The preparation of financial statements requires management of the City to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of accrued revenues and expenditures during the
reporting period. Accordingly, actual results could differ from those estimates.
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.
Budgets and Budgetary Accounting - An annual budget is required to be adopted and integrated into the accounting
system to provide budgetary control over revenues and expenditures. Budget amounts presented in the accompanying
financial statements represent amounts adopted by the City and approved by the State Division of Local Government
Services as per N.J.S.A. 40A:4 et seq.
The City is not required to adopt budgets for the following funds:
Trust Funds
General Capital Fund
Utility Capital Funds
The City must prepare its budget in compliance with applicable laws limiting or capping the amounts by which both the
budget appropriations and the municipal tax levy can increase in the annual budget.
1977 Appropriation "CAP": The 1977 Appropriation Cap is calculated using the formulas and provisions ofN.J.S.A
40A:4-45.1 through 4-45.43a. The law was originally adopted in 1976 and was most recently amended in 2003. Under
this law, the City is permitted to increase its overall Current Fund appropriations (with certain exceptions) by 2.5% or
the "cost of living adjustment" (COLA), whichever is less. The COLA is calculated based on the Implicit Price
Deflator for Local Governments computed by the U.S. Department of Commerce. The City can, when the COLA is
less than or equal to 2.5%, increase its allowable inside-the-cap appropriations to 3 .5%, upon adoption of a COLA Rate
Ordinance by the governing body and beyond 3 .5% upon voter passage of a referendum. Additionally, municipalities
can bank the unused appropriation increases for use in any of the next two (2) succeeding budget years.
44
CITY OF RAHWAY
NOTES TO FINANCIAL ST A TEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A.
Budgets and Budgetary Accounting (Continued)
2010 Levy "CAP": The 2010 Levy Cap is calculated using the formulas and provisions of N.J.S.A. 40A:4-45.44
through 45 .4 7. It established limits on the increase in the total amount to be raised by taxation for municipal purposes
(municipal tax levy). The core of the levy cap formula is a 2% increase to the previous year's amount to be raised by
taxation for municipal purposes, exclusive of certain appropriations and allowable adjustments and extraordinary costs
related to a declared emergency. Voter approval may be requested to increase the municipal tax levy by more than the
allowable adjusted tax levy. Additionally, municipalities can bank the unused tax levy for use in any of the next three
(3) succeeding budget years.
The governing body is required to introduce and approve the annual budget no later than February 10, of the fiscal year.
The budget is required to be adopted no later than March 20, and prior to adoption must be certified by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey. The Director of the Division of
Local Government Services, with the approval of the Local Finance Board may extend the introduction and approval
and adoption dates of the municipal budget. The budget is prepared by fund, function, activity and line item (salary or
other expense) and includes information on the previous year. The legal level of control for appropriations is exercised
at the individual line item level for all operating budgets adopted. The governing body of the municipality may
authorize emergency appropriations and the inclusion of certain special items of revenue to the budget after its adoption
and determination of the tax rate. During the last two months of the fiscal year, the governing body may, by a 2/3 vote;
amend the budget through line item transfers. Management has no authority to amend the budget without the approval
of the governing body. Expenditures may not legally exceed budgeted appropriations at the line item level. During
2024 and 2023, the City increased the original budget by $1,519,087 and $3,328,692, respectively. For both 2024 and
2023, the increase was funded by a special emergency authorization for terminal pay and by additional allotted to the
City. In addition, the governing body approved several budget transfers during 2024 and 2023.
B.
Excess Expenditures Over Appropriations
The following is a summary of expenditures in excess of available appropriations. The overexpended appropriations
resulted in unfavorable variances.
Water Utility Operating Fund
Appropriations
Operating
Other Expenses
2023
Water Utility Operating Fund
Appropriation Reserves
Operating
Other Expenses
Modified
Budget
$710,000
$245
$737,940
$26,914
Unfavorable
Variance
$27,940
$26,669
In accordance with the regulatory basis of accounting, the above variances or overexpenditures were recorded as
deferred charges on the balance sheet of the respective fund at year end and are required to be funded in the succeeding
year's budget. GAAP does not permit the deferral of overexpenditures at year end.
NOTE 3 CASH DEPOSITS AND INVESTMENTS
The City considers petty cash, change funds, cash in banks, certificates of deposit and deposits with the New Jersey
Cash Management Fund as cash and cash equivalents.
45
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 3 CASH DEPOSITS AND INVESTMENTS (Continued)
A.
Cash Deposits
The City's deposits are insured through either the Federal Deposit Insurance Corporation (FDIC), National Credit
Union Share Insurance Fund (NCUSIF), Securities Investor Protection Corporation (SIPC) or New Jersey's
Governmental Unit Deposit Protection Act (GUDPA). The City is required to deposit their funds in a depository which
is protecting such funds pursuant to GUDPA. The New Jersey Governmental Unit Deposit Protection Act requires all
banks doing business in the State of New Jersey to pledge collateral equal to at least 5% of the average amount of its
public deposits and 100% of the average amount of its public funds in excess of the lesser of75% of its capital funds or
$200 million for deposits in excess of the FDIC or NCUSIF insured amounts. GUDPA does not protect intermingled
trust funds, bail funds, withholdings from an employee's salary or funds which may pass to the local government upon
the happening of a future condition.
Bank balances are insured up to $250,000 in the aggregate by the FDIC for each bank. NCUSIF insures credit union
accounts up to $250,000 in the aggregate for each financial institution. SIPC replaces cash claims up to a maximum of
$250,000 for each failed brokerage firm. At December 31, 2024 and 2023, the book value of the City's deposits were
$61,321,058 and $57,977,645 and bank and brokerage firm balances of the City's deposits amounted to $61,741,848
and $57,895,612, respectively.
The City's deposits which are displayed on the various fund balance sheets as "cash"
are categorized as:
Depository Account
Insured
$
Uninsured and Collateralized
$
Bank Balance
2024
2023
58,002,177
$
3,739,671
54,083,862
3,811,750
61,741,848
$
57,895,612
===========
Custodial Credit Risk - Deposits -
Custodial credit risk is the risk that in the event of a bank failure, the
government's deposits may not be returned to it. The City does not have a formal policy for custodial credit risk. As
of December 31, 2024 and 2023, the City's bank balances of$3,739,671 and $3,811,750 were exposed to custodial
credit risk as follows:
Depository Account
Uninsured and Collateralized
Collateral held by pledging financial institution's trust
department but not in the City's name
$
46
Bank Balance
2024
2023
3,739,671
$
3,811,750
============
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 3 CASH DEPOSITS AND INVESTMENTS (Continued)
B.
Investments
The City is permitted to invest public funds in accordance with the types of securities authorized by N.J.S.A. 40A:5-
15 .1. Investments include bonds or other obligations of the United States or obligations guaranteed by the United States
of America, Government Money Market Mutual Funds, any obligation that a federal agency or a federal instrumentality
has issued in accordance with an act of Congress, which security has a maturity date not greater than 3 97 days from the
date of purchase, provided that such obligations bear a fixed rate of interest not dependent on any index or other
external factor; bonds or other obligations of the City or bonds or other obligations of the school districts which are a
part of the City or school districts located within the City, bonds or other obligations, having a maturity date of not more
than 397 days from the date of purchase, issued by New Jersey school district, municipalities, counties, and entities
subject to the "Local Authorities Fiscal Control Law, " (C.40A:5A-1 et seq.); Other bonds or obligations having a
maturity date not more than 397 days from the date of purchase may be approved by the Division of Local Government
Services in the Department of the Community Affairs for investment by local units; Local Government investment
pools, deposits with the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L. 1977,
c.281 (C.52: 18A-90.4); and agreements for the repurchase of fully collateralized securities, if transacted in accordance
with NJSA 40A:5-15.1 (8a-8e).
As of December 31, 2024 and 2023 the City had no outstanding investments.
Interest earned in the General Capital Fund, Animal Control Fund and certain Other Trust Funds are assigned to the
Current Fund in accordance with the regulatory basis of accounting. Interest earned in the Utility Capital Funds are
assigned to the Utility Operating Funds in accordance with the regulatory basis of accounting.
NOTE 4 TAXES AND UTILITY CHARGES RECEIVABLE
Receivables at December 31, 2024 consisted of the following:
Utility
Current
Total
2024
Property Taxes
$
2,069,820
$
2,069,820
Tax Title Liens
700,986
700,986
Utility Rents
$
1,911,586
_$ ___
7_74~,4_3_2
2,686,018
$
2,770,806
$
1,911,586
$
774,432
$
5,456,824
============
In 2024, the City collected $1,457,648 and $2,239,363 from delinquent taxes and utility charges and fees, which
represented 64% of the delinquent tax and 100% of the water and sewer charges receivable at December 31, 2023.
47
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 4 TAXES AND UTILITY CHARGES RECEIVABLE (Continued)
Receivables at December 31, 2023 consisted of the following:
Utility
Current
Water
Sewer
Total
2023
Property Taxes
$
1,624,449
$
1,624,449
Tax Title Liens
643,253
643,253
Utility Rents
$
1,576,305
$
663,058
2,239,363
$
2,267,702 $
1,576,305
$
663,058
$
4,507,065
In 2023, the City collected $1,623,793 and $2,035,244 from delinquent taxes and utility charges and fees, which
represented 74% of the delinquent tax and 100% of the water and sewer charges receivable at December 31, 2022.
NOTE 5 DUE TO/FROM OTHER FUNDS
As of December 31, interfund receivables and payables that resulted from various interfund transactions were as
follows:
Current Fund
$
Trust Fund:
Animal Control
Community Development
Other Trust
Unemployment
General Capital Fund
Water Utility Fund:
Operating
Capital
Sewer Utility Fund:
Operating
Capital
Parking Utility Fund:
Operating
Capital
Total
$
2024
Due from
Other Funds
3,992,141
1,047,613
43,247
630,816
2,188,522
1,209,495
511,854
9,140
Due to
Other Funds
$ 2,635,456
3,326
183,562
43,247
368
1,911,628
1,591,780
66,635
805,673
534,044
1,857,109
9,632,828
$ 9,632,828
Due from
Other Funds
$
862,440
2,011,623
53,323
383,017
7,476,714
658,246
1,564,550
688,435
$ 13,698,348
2023
$
$
Due to
Other Funds
8,568,569
18,227
382,017
964,347
775
1,065,109
96,182
60,687
2,542,435
13,698,348
The above balances are the result of expenditures being paid by one fund on behalf of another and/or revenues being
collected in one fund on behalf of another.
The City expects all interfund balances to be liquidated within one year.
48
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 6 DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Under the regulatory basis of accounting, certain expenditures or other items are required to be deferred to budgets of
succeeding years. At December 31, the following deferred charge is reported on the Current Fund balance sheet:
Current Fund
Special Emergency Authorizations ( 40A:4-55)
Water Utility Operating Fund
Overexpenditure of Appropriation Reserves
2023
Current Fund
Special Emergency Authorizations ( 40A:4-55)
Water Utility Operating Fund
Overexpenditure of Appropriation Reserves
$
$
Balance
December 3 1
Subsequent Year
Budget
Appropriation
1,270,000
$
27,940
254,000
$
Balance
December 31
Subsequent Year
Budget
Appropriation
3,060,000
$
26,669
3,060,000
26,669
49
Balance to
Succeeding
Budgets
1,016,000
27,940
Balance to
Succeeding
Budgets
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 7 FUND BALANCES APPROPRIATED
Under the regulatory basis of accounting, fund balances in the Current Fund and Utility Operating Funds are comprised
of cash surplus (fund balance) and non-cash surplus (fund balance). All or part of cash surplus as of December 31 may
be anticipated in the subsequent year's budget. The non-cash surplus portion of fund balance may be utilized in the
subsequent year's budget with the prior written consent of the Director of the Division of Local Government Services if
certain guidelines are met as to its availability. Fund balances at December 31, which were appropriated and included
as anticipated revenue in their own respective fund's budget for the succeeding year were as follows:
Current Fund
Cash Surplus
Non-Cash Surplus
Water Utility Operating Fund
Fund Balance
December 31
$
7,688,562
4,399,441
$
12,088,003
Cash Surplus
$
6,227,953
27,940
Non-Cash Surplus
$
6,255,893
Sewer Utility Operating Fund
Cash Surplus
$
2, 138,473
Non-Cash Surplus
$
2,138,473
Parking Utility Operating Fund
Cash Surplus
$
2,572,049
Non-Cash Surplus
$
2,572,049
2024
Utilized
in Subsequent
Year's Budget
$
3,300,000
$
3,300,000
1,000,000
1,000,000
$
841,000
$
841,000
$
750,000
$
750,000
50
Fund Balance
December 31
$
7,118,615
4,998,092
$
12,116,707
$
5,807,957
26,669
$
5,834,626
$
1,904,150
$
1,904,150
$
2,785,330
$
2,785,330
2023
Utilized
in Subsequent
Year's Budget
$
3,000,000
$
3,000,000
1,295,000
1,295,000
$
818,000
$
818,000
$
1,000,000
$
1,000,000
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 8 FIXED ASSETS
A. General Fixed Assets
The following is a summary of changes in the general fixed assets account group for the years ended December 31,
2024 and 2023.
Balance,
Balance,
December 3 1,
December 31,
2023
Increases
Decreases
2024
2024
Land
$
13,925,600
$
13,925,600
Buildings and Improvements
23,230,282
$ 2,618,549
25,848,831
Machinery and Equipment
16,177,221
790,915
16,968,136
$
53,333,103
$ 3,409,464
$
$
56,742,567
Balance,
Balance,
December 3 1,
December 31,
2022
Increases
Decreases
2023
2023
Land
$
13,925,600
$
13,925,600
Buildings and Improvements
20,703,540
$ 2,526,742
23,230,282
Machinery and Equipment
15,738,446
438,775
16,177,221
$
50,367,586
$ 2,965,517
$
$
53,333,103
51
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 8 FIXED ASSETS (Continued)
B. Utility Funds Fixed Assets
The following is a summary of changes in the utility fund fixed assets for the years ended December 31, 2024 and
2023.
Balance,
Balance,
December 31,
December 31,
Water Utility Fund
2023
Increases
Decreases
2024
2024
Fixed Capital
System and System Improvements
$
34,146,792
$
274,820
$
34,421,612
Land, Plant, Building and Building
Improvements
21,383,462
21,383,462
Vehicles and Equipment
573,836
573,836
$
56,104,090
$
274,820
$
56,378,910
Balance,
Balance,
December 31,
December 31,
2022
Increases
Decreases
2023
2023
Fixed Capital
System and System Improvements
$
34,146,792
$
34,146,792
Land, Plant, Building and Building
Improvements
21,383,462
21,383,462
Vehicles and Equipment
573,836
573,836
$
56,104,090
$
$
56,104,090
52
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 8 FIXED ASSETS (Continued)
B. Utility Funds Fixed Assets (Continued)
Balance,
Balance,
December 31,
December 31,
Sewer Utility Fund
2023
Increases
Decreases
2024
2024
Fixed Capital
System and System Improvements
$
4,505,428
$
925,993
124,995
$
5,306,426
Balance
Balance,
December 3 1,
December 31,
2022
Increases
Decreases
2023
2023
Fixed Capital
System and System Improvements
$
4,205,428
$
300,000
$
4,505,428
Balance,
Balance,
December 31,
December 31,
Parking Utility Fund
2023
Increases
Decreases
2024
2024
Fixed Capital
Land and Buildings
$
9,679,164
$
9,679,164
Parking Lots and Improvements
970,666
970,666
Machinery and Equipment
540,566
540,566
$
11,190,396
$
$
$
11,190,396
Balance,
Balance,
December 31,
December 31,
2022
Increases
Decreases
2023
2023
Fixed Capital
Land and Buildings
$
9,679,164
$
9,679,164
Parking Lots and Improvements
970,666
970,666
Machinery and Equipment
540,566
540,566
$
11,190,396
$
$
$
11,190,396
53
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE9 MUNICIPAL DEBT
The Local Bond Law (N.J.S.A. 40A:2 et seq.) governs the issuance of bonds and notes used to finance capital
expenditures. General obligation bonds have been issued for both general capital and utility capital fund projects and
acquisitions or other purposes permitted by the Local Bond Law. All bonds are retired in serial installments within the
statutory period of usefulness. Bonds issued by the City are general obligation bonds, backed by the full faith and credit
of the City. Bond anticipation notes, which are issued to temporarily finance capital projects and acquisitions or other
purposes permitted by the Local Bond Law, must be paid off within ten years and four months or retired by the issuance
ofbonds.
The City's debt is summarized as follows:
Issued
General
Bonds, Notes and Loans
Water Utility
Bonds, Notes and Loans
Sewer Utility
Bonds, Notes and Loans
Parking Utility
Bonds and Notes
Less Funds Temporarily Held to Pay Bonds
and Notes
Net Debt Issued
Authorized But Not Issued
General
Bonds and Notes
Water Utility
Bonds and Notes
Sewer Utility
Bonds and Notes
Parking Utility
Bonds and Notes
Net Bonds and Notes Issued and Authorized
But Not Issued
54
$
2024
52,197,821
28,167,453
7,068,921
3,513,000
90,947,195
1,270,246
89,676,949
13,477,618
6,340,605
3,670,000
$
53,460,596
26,642,351
3,816,035
3,748,000
87,666,982
278,810
87,388,172
7,223,382
9,230,633
5,505,000
$
113,165,172 $
109,347,187
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
Statutory Net Debt
The statement of debt condition that follows is in the format of City's Annual Debt Statement and indicates a statutory
net debt of 1.63% and 1.70% at December 31, 2024 and 2023, respectively.
Gross Debt
Deductions
Net Debt
2024
General Debt
$
65,675,439
$
1,270,246
$
64,405,193
School Debt
44,250,049
44,250,049
Utility Debt
48,759,979
48,712,407
47,572
Debt Guarantees (Note 9)
1,445,000
1,445,000
Total
$
160,130,467
$
95,677,702
$
64,452,765
Gross Debt
Deductions
Net Debt
2023
General Debt
$
60,683,978
$
278,810
$
60,405,168
School Debt
46,825,000
46,825,000
Utility Debt
48,942,019
48,861,407
80,612
Debt Guarantees (Note 9)
1,965,000
1,965,000
Total
$
158,415,997
$
97,930,217
$
60,485,780
Statutory Borrowing Power
The City's remaining borrowing power under N.J.S. 40A:2-6, as amended, at December 31, was as follows:
2024
2023
3-1/2% of Equalized Valuation Basis (Municipal)
$
138,160,287
$
124,394,220
Less: Net Debt
64,405,193
60,485,780
Remaining Borrowing Power
$
73,755,094
$
63,908,440
55
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt
The City's long-tenn debt consisted of the following at December 31:
General Obligation Bonds
The City levies ad valorem taxes to pay debt service on general obligation bonds. General obligation bonds outstanding
at December 31 are as follows:
$7,425,000, 2013 Bonds, due in annual
installments of $405,000 to $515,000 through
September 15, 2032, interest at 3.125% to 4.00%
$9,460,000, 2015 Bonds, due in annual
installments of $650,000 to $700,000 through
August 1, 2013, interest at 3.00% to 4.00%
$4,463,056, 2015 Refunding Bonds, due in an annual
installment of $476,780 on
October 1, 2024, interest at 4.00%
$8,627,000, 2016 Bonds, due in annual installments
of $600,000 to $797,000 through August 1, 2031,
interest at 3.00% to 4.00%.
$11,683,178, 2016 Refunding Bonds, due in annual
installments of $670,000 to $1,160,697 through
April 15, 2030, interest at 2.00% to 4.00%.
$3,875,000, 2019 General Obligation Bonds, due in annual
installments of $315,000 to $430,000 through
July 15, 2031, interest at 2.00% to 4.00%.
$5,215,000, 2020 General Obligation Bonds, due in annual
installments of $515,000 to $660,000 through
July 15, 2030, interest at 2.00% to 4.00%.
$7,330,000, 2022 General Obligation Bonds, due in annual
installments of $350,000 to $500,000 through
July 15, 2039, interest at 3.375% to 4.00%.
$12,000,000, 2024 General Obligation Bonds, due in annual
installments of $695,000 to $1,225,000 through
July 15, 2036, interest at 3.00% to 4.00%.
56
2023
$
3,630,000
$
4,025,000
4,820,000
5,470,000
476,780
5,002,000
5,602,000
5,012,428
6,182,608
2,620,000
2,910,000
3,565,000
4,050,000
6,730,000
7,080,000
12,000,000
$
43,379,428
$
35,796,388
============
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
General Intergovernmental Loans Payable
The City has entered into loan agreements with the State of New Jersey for the financing relating to the various projects
within the City. The City levies ad valorem taxes to pay debt service on general intergovernmental loans issued.
General intergovernmental loans outstanding at December 31 are as follows:
$290,876, Waterfront Park Loan due in
Semi-annual installments of$1,048 to $17,721
through March, 2031, interest at 0%
$477,200, 2006 Green Acres Loan due in
Semi-annual installments of $13,977 to $14,690
through August, 2026, interest at 2.00%
Utility Bonds
$
$
2023
60,500
$
78,221
57,893
85,987
118,393
$
164,208
==========
The City pledges revenue from operations to pay debt service on utility bonds issued. The water, sewer and parking
utility bonds outstanding at December 31 are as follows:
Water Utility
$4,714,000, 2018 Bonds, due in annual
installments of $185,000 to $280,000 through
June 25, 2038, intrest at 2.5% to 5.0%
$3,900,000, 2019 Bonds, due in annual
installments of $165,000 to $250,000 through
July 15, 2039, intrest at 2.0% to 4.0%
$
$
57
2023
3,794,000
$
3,964,000
3,070,000
3,315,000
6,864,000
$
7,279,000
==============
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Utility Bonds (Continued)
Sewer Utility
Allocated $76,944, 2015 Refunding Bonds, due in an annual
installment of $8,220 on October 1, 2024
interest at 4.00%
Allocated $251,822, 2016 Refunding Bonds, due in annual
installments of $23,269 to $24,820 through April 15, 2026,
interest at 2.00% to 4.00%
$2,275,000, 2019 Bonds due in annual
installments of $120,000 to $130,000 through July 15, 2038,
interest at 2.00% to 4.00%
$1,848,000, 2022 Sewer Bonds due in annual
installments of $110,000 to $175,000 through July 15, 2035,
interest at 3.50% to 4.00%
Parking Utility
$3,335,000 2018 Revenue Refunding Bonds, due in annual
installments of $210,000 to $300,000 through November 15, 2033
interest at 4. 5 %
58
$
8,220
$
47,572
72,392
1,800,000
1,920,000
1,625,000
1,735,000
$
3,472,572
$
3,735,612
2024
2023
$
2,245,000
$
2,445,000
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Utility Intergovernmental Loans Payable
The City has entered into loan agreements with the State of New Jersey for the financing relating to the improvement of
the City's water and sewer infrastructure. The City pledges revenue from operations to pay debt service on utility
intergovernmental loans issued.
Utility intergovernmental loans outstanding of the water and sewer utilities at
December 31 are as follows:
Water Utility
$1,832,129, 2017 Environmental Infrastructure Fund Loan,
due in semi- annual installments of $31,053 to $62,106,
2024
2023
through August 1, 2036, interest free.
$ 1,117,909
$ 1,211,069
$605,000, 2017 Environmental Infrastructure Trust Loan,
due in annual installments of $30,000 to $45,000, through
August 1, 2036, interest at 3.0% to 5.0%.
$9,578,797, 2018 Environmental Infrastructure Fund Loan,
due in semi- annual installments of $134,912 to $269,825,
435,000
through August 1, 2041, interest free.
6,880,544
$3,210,000, 2018 Environmental Infrastructure Trust Loan,
due in annual installments of$ 115,000 to $200,000, through
August I, 2041, interest at 3.0% to 5.0%.
2,625,000
465,000
7,285,282
2,735,000
$11,058,453
$11,696,351
59
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Utility Intergovernmental Loans Payable (Continued)
Sewer Utility
$257,017, 2010 Environmental Infrastructure Fund Loan,
due in semi-annual installments of $4,590 to $9,179
through August 1, 2029, interest free
$91,953, 2010 Environmental Infrastructure Trust Loan,
due in annual installments of $3,291 to $5,937
through August 1, 2029, interest at 4.25%
$
40,904
$
54,673
20,445
25,750
$
61,349
$
80,423
=========
The City's principal and interest for long-term debt issued and outstanding as of December 31, 2024 is as follows:
Calendar
General Cagital
Water Utility
Sewer Utility
Parking Utility
Year
Princigal
Interest
Princigal
Interest
Princigal
Interest
Princigal
Interest
Total
2025
$
4,737,077 $
1,514,040
$
1,067,897 $
318,391
$
273,575
$
123,171
$
210,000
$
101,025
$
8,345,176
2026
4,918,687
1,368,874
1,087,897
293,479
287,751
113,042
220,000
91,575
8,381,305
2027
4,777,721
1,210,991
1,097,897
272,932
274,304
102,786
225,000
81,675
8,043,306
2028
4,932,096
1,037,241
1,112,897
251,248
273,291
92,347
235,000
71,550
8,005,670
2029
5,007,096
868,341
1,122,897
231,048
280,000
81,413
245,000
60,975
7,896,770
2030-2034
14,265,144
2,191,526
5,789,485
855,844
1,450,000
249,413
1,110,000
127,800
26,039,212
2035-2039
4,860,000
436,625
5,444,008
343,019
695,000
44,475
11,823,127
2040-2041
1,199,475
20,651
1,220,126
$ 43,497,821
$
8,627,638
$ 17,922,453
$
2,586,612
$
3,533,921
$
806,647 $
2,245,000
$
534,600
$ 79,754,692
60
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Debt Guarantees
Rahway Redevelopment Agency-Public Library Project
The Rahway Redevelopment Agency (the "Agency") is a public body corporate and politic created by the City
pursuant to the Redevelopment Law by adoption of an ordinance on January 5, 2001. The City has designated the
Agency as redeveloper of a public/private project to construct and operate a new free public library for the City's use.
In connection with said project, the Agency on October 29, 2001 issued $12,000,000 City-secured Public Library
project notes. Such project notes were subsequently refunded on October 17, 2002 by the issuance of $4,665,000
City-secured Public Library Revenue Bonds, Series 2002 and $5,780,000 City-secured Public Library Project Notes,
Series 2002. The Series 2002 notes were then refunded on October 29, 2003 by the issuance of $3,500,000 City-
secured Public Library Project Notes, Series 2003. The Series 2003 notes were refunded on October 29, 2004 by the
issuance of $2,000,000 City-secured Public Library Revenue Bonds, Series 2004, and $2,500,000 City-secured Public
Library Project Notes, Series 2004. The Series 2004 Project Notes were subsequently retired on October 29, 2005
from grant proceeds received as part of the Library project. The Series 2002 bonds were refunded in 2012 through the
issuance of $4,505,000 City-Secured Public Library Revenue Refunding Bonds.
The Series 2004 bonds were
refunded in 2014 through the issuance of $1,260,000 City-Secured Public Library Revenue Refunding Bonds. Said
bonds and notes are secured through a "Use, Occupancy and Capital Grant Agreement" (the "Agreement"), between
the Rahway Redevelopment Agency and the City of Rahway.
The obligation of the City to pay grants and to pay all other amounts provided for under the agreement and to perform
its obligations under the Agreement shall be absolute and unconditional.
The cost and expense of the performance by the City of its obligations under this Capital Grant Agreement and the
incurrence of any liabilities of the City under this Capital Grant Agreement, including, without limitation, the
obligation for the payment of all Basic Grants and additional Grants and all other amounts required to be paid by the
City under this Capital Grant Agreement, is a direct, general and irrevocable obligation, full faith and credit pledge of
the City for which the City is obligated to make any required payments under this Capital Grant Agreement out of the
first funds becoming legally available for such purpose, and to provide funds for such payments, if not otherwise
available, from the levy of ad valorem taxes upon all the taxable property in the City without limitation as to rate or
amount, which obligation is not subject to appropriation. As of December 31, 2024 and 2023, the Agency had
outstanding $-0- and $145,000, respectively, subject to the City guarantee.
Rahway Redevelopment Agency - Arts District Extension
On September 15, 2008, the Rahway Redevelopment Agency issued $5,950,000 in tax exempt project notes and
$1,550,000 in taxable project notes.
The notes, which are guaranteed by the City, were used to (i) refund the
$4,000,000 principal balloon payment due on the UCIA loan; (ii) provide $3,500,000 for the design and construction of
an outdoor amphitheater in the Rahway Arts District; and (iii) pay costs associated with the issuance of such notes.
These notes were renewed for an additional year on September 15, 2009 and again on September 15, 2010. On
September 8, 2011, the Agency issued $5,075,000 in City-secured Arts District Extension Revenue Bonds. As of
December 31, 2024 and 2023, the Agency had outstanding $1,445,000 and $1,820,000, respectively, subject to City
guarantee.
61
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Changes in Long-Term Municipal Debt
The City's long-term capital debt activity for the years ended December 31, 2024 and 2023 were as follows:
Balance,
Balance,
Due
December 3 1,
December 3 1,
Within
2023
Additions
Reductions
2024
One Year
2024
General Capital Fund:
Bonds Payable
$
35,796,388
$
12,000,000 $
4,416,960
$
43,379,428
$
4,690,697
Intergovernmental Loans Payable:
Green Acres Loans
164,208
45,815
118,393
46,380
General Capital Fund Long-Term
Liabilities
$ 35,960,596
$
12,000,000
$
4,462,775
$ 43,497,821
$
4,737,077
Water Utility Capital Fund:
Bonds Payable
$
7,279,000
Intergovernmental Loans Payable:
NJ Environmental Infrastructure
11,696,351
Water Utility Capital Fund
Long-Term Liabilities
$
18,975,351
$ =====
Sewer Utility Capital Fund:
Bonds Payable
$
3,735,612 $
Intergovernmental Loans Payable:
NJ Environmental Infrastructure
80,423
Sewer Utility Capital Fund
Long-Term.Liabilities
$
3,816,035
$ =====
Parking Utility Capital Fund:
Bonds Payable
$
2,445,000
Parking Utility Capital Fund
Long-Term Liabilities
$
2,445,000
$ =====
62
$
415,000
$
6,864,000 $
637,898
11,058,453
425,000
642,897
$
1,052,898
$
17,922,453
$
1,067,897
$
263,040
$
3,472,572 $
___
19--'--,0_7_4
61,349
254,303
19,272
$
282,114
$
3,533,921
$
273,575
=========
$
200,000
$
2,24s,ooo
_$ __
2_10~,o_o_o
$
200,000
$
2,245,000
$
210,000
=========
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt (Continued)
Changes in Long-Term Municipal Debt (Continued)
General Capital Fund:
Balance,
December 31,
2022
Bonds Payable
$
40,706,363
$
Intergovernmental Loans Payable:
Green Acres Loans
209,469
General Capital Fund Long-Term
Liabilities
$
40,915,832
$
Additions
=====
Water Utility Capital Fund:
Bonds Payable
$
7,864,000
Intergovernmental Loans Payable:
NJ Environmental Infrastructure
12,324,248
Water Utility Capital Fund
Long-Term Liabilities
$
20,188,248
$ =====
Sewer Utility Capital Fund:
Bonds Payable
$
4,078,637 $
Intergovernmental Loans Payable:
NJ Environmental Infrastructure
99,312
Sewer Utility Capital Fund
Long-Term Liabilities
$
4,177,949
$
Parking Utility Capital Fund:
Bonds Payable
$
2,630,000
Parking Utility Capital Fund
Long-Term Liabilities
$
2,630,000
$
63
Balance,
Due
December 31,
Within
Reductions
2023
One Year
$
4,909,975
$
35,796,388 $
4,416,960
45,261
164,208
45,815
$
4,955,236
$
35,960,596
$
4,462,775
$
585,000
$
7,279,000
$
627,897
11,696,351
415,000
637,898
$
1,212,897
$
18,975,351
$
1,052,898
$
343,025
$
3,735,612
$
18,889
80,423
----'---
$
361,914
$
3,816,035
$
$
185,000
$
2,445,000
$
$
185,000
$
2,445,000
$
263,040
19,074
282,114
200,000
200,000
CITY OF RAHWAY
NOTES TO FINANCIAL ST A TEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
B.
Short-Term Debt
The City's short-term debt activity for the years ended December 31, 2024 and 2023 was as follows:
Bond Anticination Notes
Balance,
Rate
Maturity
December 31,
Renewed/
Retired/
rill
Date
2023
Issued
Redeemed
2024
General Cagital Fund
Pumose
Acquisition of Property
4.50%
7/24/2025
$
510,000
$
510,000
2020 Road Improvement Program
4.50%
7/24/2025
916,270
916,270
Improvements to Madden Field
4.50%
7/24/2025
300,000
300,000
Various 2020 Capital Acquisitions & Improvements
4.50%
7/24/2025
1,171,956
1,171,956
Purchase of Ambulance and 911 Command Center
4.50%
7/24/2025
710,000
710,000
Purchase and Installation of Outdoor Shelters
4.50%
7/24/2025
120,000
120,000
Acquisition of Equipment, Vehicle and Fire Rescue Truck
4.50%
7/24/2025
665,000
665,000
2021 Road Improvement Program
4.50%
7/24/2025
2,215,774
2,215,774
Acquisition of Vehicles and Equipment
4.50%
7/24/2025
1,428,000
1,428,000
Replacement of HV AC at City Hall
4.50%
7/24/2025
380,000
380,000
Tennis Court Improvements
4.50%
7/24/2025
380,000 $
380,000
380,000
2022 Roads and Sidewalk Program
4.50%
7/24/2025
2,330,000
2,330,000
Various Improvements and Acquisitions
4.50%
7/24/2025
1,999,000
1,999,000
1,999,000
Acquisition of Fire Truck and Headquarters Improvements
4.50%
7/24/2025
1,666,000
1,666,000
1,666,000
Steetscape Improvements
4.50%
7/24/2025
238,000
238,000
238,000
Acquisition of Property
4.50%
7/24/2025
2,470,000
2,470,000
2,470,000
2023 Road and Sidewalk Improvement Program
4.50%
7/24/2025
1,947,000
17,500,000
8,700,000
17,500,000
Water Utility Cagital Fund
Pumose
Various Improvements to Water Treatment Plant
4.50%
7/24/2025
903,919
315,766
903,919
Various Acquisitions and Improvements
4.50%
7/24/2025
3,488,081
3,299,747
3,488,081
Upgrade of Granular Activated Carbon Filter System
4.50%
7/24/2025
2,500,000
2,479,487
2,500,000
Lead Water Service Pipe Replacement Project
4.50%
7/24/2025
775,000
775,000
775,000
Lead Water Service Pipe Replacement Project
4.50%
7/24/2025
950,000
Replacement of Water Mains
4.50%
7/24/2025
950,000
Water Filtration System Upgrades
4.50%
7/24/2025
975,000
Replacement of Water Meters
4.50%
7/24/2025
500,000
7,667,000
10,245,000
7,667,000
Sewer Utility Cagital Fund
Purpose
Various Sewer Improvements
4.50%
7/24/2025
3,535,000
Parking Utility Cagital Fund
Pumose
Various Parking Utility Capital
Acquisitions and Improvements
4.50%
7/24/2025
698,000
672,000
698,000
Purchase and Acquisition of Electric Vehicles
4.50%
7/24/2025
80,000
71,000
80,000
Structural Repairs at Parking Deck
4.50%
7/24/2025
525,000
525,000
525,000
1,303,000
1,268,000
1,303,000
Total Bond Anticipation Notes
$ 26,470,000
$ 23,748,000
$ 26,470,000
64
Balance,
December 31,
2024
$
380,000
1,999,000
1,666,000
238,000
2,470,000
1,947,000
8,700,000
315,766
3,299,747
2,479,487
775,000
950,000
950,000
975,000
500,000
10,245,000
3,535,000
672,000
71,000
525,000
1,268,000
$ 23,748,000
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
B.
Short-Term Debt (Continued)
Bond Anticipation Notes {Continued)
Balance,
Balance,
Rate
Maturity
December 31,
Renewed/
Retired/
December 31,
00
Date
2022
Issued
Redeemed
2023
2023
General Cagital Fund
Purgose
Acquisition of Property
5.00%
7/26/2024
$
510,000 $
510,000 $
510,000 $
510,000
2020 Road Improvement Program
5.00%
7/26/2024
1,200,000
916,270
1,200,000
916,270
Improvements to Madden Field
5.00%
7/26/2024
300,000
300,000
300,000
300,000
Various 2020 Capital Acquisitions & Improvements
5.00%
7/26/2024
1,171,956
1,171,956
1,171,956
1,171,956
Purchase of Ambulance and 911 Command Center
5.00%
7/26/2024
710,000
710,000
710,000
710,000
Purchase and Installation of Outdoor Shelters
5.00%
7/26/2024
120,000
120,000
120,000
120,000
Acquisition of Equipment, Vehicle and Fire Rescue Truck
5.00%
7/26/2024
665,000
665,000
665,000
665,000
2021 Road Improvement Program
5.00%
7/26/2024
2,023,044
2,215,774
2,023,044
2,215,774
Acquisition of Vehicles and Equipment
5.00%
7/26/2024
1,428,000
1,428,000
Replacement of HY AC at City Hall
5.00%
7/26/2024
380,000
380,000
Tennis Court Improvements
5.00%
7/26/2024
380,000
380,000
2022 Roads and Sidewalk Program
5.00%
7/26/2024
2,330,000
2,330,000
Various Improvements and Acquisitions
5.00%
7/26/2024
1,999,000
1,999,000
Acquisition of Fire Truck and Headquarters Improvements
5.00%
7/26/2024
1,666,000
1,666,000
Steetscape Improvements
5.00%
7/26/2024
238,000
238,000
Acquisition of Property
5.00%
7/26/2024
2,470,000
2,470,000
6,700,000
17,500,000
6,700,000
17,500,000
Water Utility Cagital Fund
Purgose
Various Improvements to Water Treatment Plant
5.00%
7/26/2024
925,000
903,919
925,000
903,919
Various Acquisitions and Improvements
5.00%
7/26/2024
3,500,000
3,488,081
3,500,000
3,488,081
Upgrade of Granular Activated Carbon Filter System
5.00%
7/26/2024
2,500,000
2,500,000
2,500,000
2,500,000
Lead Water Serivce Pipe Replacement Project
5.00%
7/26/2024
775,000
775,000
6,925,000
7,667,000
6,925,000
7,667,000
Parking Utility Cagital Fund
Pumose
Various Parking Utility Capital
Acquisitions and Improvements
5.00%
7/26/2024
724,000
698,000
724,000
698,000
Purchase and Acquisition of Electric Vehicles
5.00%
7/26/2024
80,000
80,000
80,000
80,000
Structural Repairs at Parking Deck
5.00%
7/26/2024
525,000
525,000
804,000
1,303,000
804,000
1,303,000
Total Bond Anticipation Notes
$ 14,429,000 $ 26,470,000
$ 14,429,000 $ 26,470,000
65
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
B.
Short-Term Debt (Continued)
The purpose of these short-term borrowings was to provide resources for capital construction, acquisitions or
improvement projects and other purposes permitted by the Local Bond Law NJSA 40A:2 et. seq. The amounts issued
for governmental activities are accounted for in the General Capital Fund. The amounts issued for the water, sewer and
parking utility activities are accounted for in the Water, Sewer and Parking Utility Capital Fund.
State law requires that notes are to be issued for a period not exceeding one year and may be renewed from time to time
for additional periods, none of which shall exceed one year. All bond anticipation notes, including renewals, shall
mature and be paid not later than the first day of the fifth month following the close of the tenth fiscal year following
the date of the original notes. In addition, any note renewed beyond the third anniversary date of the original note,
requires one legally payable installment to be paid.
In addition to the debt shown in the above schedule, municipalities may issue debt to finance emergency or special
emergency appropriations or to meet cash flow needs (Tax Anticipation Notes) to temporarily finance operating
expenditures. This debt which is not included in the City's statutory debt limit calculation is reported in the Current
Fund for the years 2024 and 2023 as follows:
Special Emergency Notes
Following the adoption of an ordinance or resolution for special emergency appropriations, the City may borrow money
and issue special emergency notes which may be renewed from time to time, but at least 1/5 of all such notes and the
renewal thereof, shall mature and be paid in each year so that all notes have been paid by the end of the fifth year
following the date of the special emergency resolution.
Rate
Purpose
00
2024
Terminal Pay
5.00%
2023
Terminal Pay
5.00%
Maturity
Date
Balance,
December 31,
Renewed/
2023
Issued
10/21/2024 $ 1,200,000 $ =====
Balance,
December 31,
Renewed/
2022
Issued
Balance,
Retired/
December 31,
Redeemed
2024
$ 1,200,000
$ =====
Balance,
Retired/
December 31,
Redeemed
2023
10/21/2024 $ 1,500,000 $
1,200,000
$
1,500,000
$ 1,200,000
66
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 10 CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
As of December 31, the City had the following commitments with respect to unfinished capital projects:
Capital Project
Berzenic Park Tennis Courts and Howard Field
Park Basketball Court Improvements
Madden Field Basketball Court Improvements
Main Street Lighting and Landscaping Improvements
LSLRP Test Pit Program - Phase 2
NJ DOT 2024 Road Improvement Program
2023
NJDOT FY22Municipal Aid Program
Acquisition of Refuse Truck-2022
Acquisition of Refuse Truck-2023
NJDOT FY23 Municipal Aid Program
LSLRP Test Pit Program Phase 2
Portable Radio Equipment for Police and Fire Departments
Playground Equipment for Berzinec Park
NOTE 11 OTHER LONG-TERM LIABILITIES
A.
Compensated Absences
Construction
Commitment
$203,300
283,460
246,300
865,281
634,963
$594,678
338,504
358,215
403,672
2,876,117
324,754
239,238
Estimated
Date of
Completion
2025
2025
2025
2025
2025
2024
2024
2024
2024
2025
2024
2024
Under the existing policies and labor agreements of the City, employees are allowed to accumulate (with certain
restrictions) unused vacation benefits, personal time and sick leave over the life of their working careers and to redeem
such unused leave time in cash (with certain limitations) upon death, retirement or by extended absence immediately
preceding retirement.
In addition, the City has entered into agreements with certain employees allowing for the
deferral of a portion of such employees' salary increases. These salary deferrals will be paid in full upon termination of
employment.
It is estimated that the current cost of such unpaid compensation and salary related payments would approximate
$6,944,510 and $9,712,184 at December 31, 2024 and 2023, respectively. These amounts which are considered
material to the financial statements, are not reported either as an expenditure or liability.
As of both December 31, 2024 and 0223, the City has reserved in the Other Trust Fund $86,982 to fund compensated
absences in accordance with NJSA 40A:4-39.
B.
Deferred Pension Obligation
During the year ended December 31, 2009 the City elected to contribute 50% of its normal and accrued liability
components of the PFRS and PERS obligations and deferred the remaining 50% in accordance with P.L. 2009, c.19.
The deferred amount totaled $1,554,082 and will be paid back with interest over 15 years beginning in the 2012 year.
The City is permitted to payoff the deferred PFRS and PERS pension obligations at any time. It is estimated that the
total deferred liability including accrued interest (7.00% effective July 1, 2017) at December 31, 2024 and 2023 is
$480,282 and $718,531, respectively.
67
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 11 OTHER LONG-TERM LIABILITIES (Continued)
B.
Deferred Pension Obligation {Continued)
During the years ended December 31, 2024, 2023 and 2022 the City was required to contribute for the deferred pension
obligation the following amounts which equaled the required contribution for each year.
Years Ended
December 31,
2024
2023
2022
C.
Changes in Other Long-Term Liabilities
$
34,476
$
34,049
35,390
PFRS
204,944
202,147
210,082
Under the regulatory basis of accounting, certain other long-term liabilities which may be considered material to the
financial statements are not reported either as an expenditure or a liability. However, under the regulatory basis of
accounting, these other long-term liabilities and related information are required to be disclosed in the notes to the
financial statements in conformity with the disclosure requirements of the Governmental Accounting Standards Board.
The City's changes in other long-term liabilities for the years ended December 31, 2024 and 2023 were as follows:
Balance,
Balance,
December 31,
December 3 1,
2023
Additions
Reductions
2024
2024
Compensated Absences
$
9,712,184
$ 2,767,674
$
6,944,510
Deferred Pension Obligation
718,531
$
1,221
239,470
480,282
Net Pension Liability - PERS (I)
15,625,584
15,625,584
Net Pension Liability - PFRS ( 1)
35,140,570
35,140,570
Net OPEB Liability (1)
76,988,049
76,988,049
Total Other Long-Term Liabilities
$138,184,918
$
1,221
$ 3,007,144
$135,178,995
(I) GASB Statements number 68 (Pension) and 75 (OPEB) financial information was not provided by the State
Division of Pensions and Benefits as of the date of the audit.
Balance,
Balance,
December 31,
December 3 I ,
2022
Additions
Reductions
2023
2023
Compensated Absences
$
10,092,760
$
380,576
$
9,712,184
Deferred Pension Obligation
940,606
$
14,121
236,196
718,531
Net Pension Liability - PERS
16,019,144
393,560
15,625,584
Net Pension Liability - PFRS
38,965,284
3,824,714
35,140,570
Net OPEB Liability
70,979,087
6,008,962
76,988,049
Total Other Long-Term Liabilities
$ 136,996,881
$ 6,023,083
$ 4,835,046
$ 138,184,918
68
Due
Within
One Year
$ 241,295
$ 241,295
Due
Within
One Year
$ 239,470
$ 239,470
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS
The State of New Jersey sponsors and administers the following contributory defined benefit public employee
retirement systems (retirement systems) covering substantially all state and local government employees which
includes those City employees who are eligible for pension coverage.
Consolidated Police and Firemen's Pension Fund (CPFPF) - established in January 1952, under the provisions of
N.J.S.A. 43:16 to provide coverage to municipal police and firemen who were appointed prior to July 1, 1944. The
fund is a closed system with no active members. Additionally, based on recent actuarial valuation there was no
normal cost or accrued liability contributions required for the fiscal year ended June 30, 2017. CPFPF is a cost-
sharing multi-employer defined benefit plan. For additional information about CPFPF, please refer to the State
Division of Pension and Benefits (Division's) Annual Comprehensive Financial Report (ACFR) which can be found
at www. state .n j. us/treasury /pensions.
Police and Firemen's Retirement System (PFRS) - established in July 1944, under the provisions of N.J.S.A.
43: 16A to provide coverage to substantially all full time county and municipal police or firemen and State firemen
appointed after December 31, 1944. Membership is mandatory for such employees. PFRS is a cost-sharing multi-
employer defined benefit pension plan with a special funding situation. For additional information about PFRS,
please refer to the State Division of Pension and Benefits (Division's) Annual Comprehensive Financial Report
(ACFR) which can be found at www.state.nj.us/treasury/pensions.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement benefits as well as death and
disa?ility benefits. All benefits vest after ten years of service, except disability benefits which vest after four years of
service.
The following represents the membership tiers for PFRS:
Tier
1
2
3
Definition
Members who were enrolled prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for
each year of creditable service, as defined, up to 30 years plus 1 % for each year of service in excess of 30 years.
Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal
65% (tier 1 and 2 members) and 60% (tier 3 members) of final compensation plus 1 % for each year of creditable
service over 25 years, but not to exceed 30 years. Members may elect deferred retirement benefits after achieving
ten )'.'ears of service, in which case, benefits would begin at age 55 equal to 2% of final compensation for each year of
service.
Public Employees' Retirement System (PERS) - established in January 1955, under the provisions of N.J.S.A.
43: 15A to provide coverage, to substantially all full-time employees of the State or any county, municipality, school
district, or public agency provided the employee is not a member of another State-administered retirement system.
Membership is mandatory for such employees. PERS is a cost-sharing multi-employer defined benefit pension plan.
For additional information about PERS, please refer to the State Division of Pension and Benefits (Division's)
Annual Comprehensive Financial Report (ACFR) which can be found at www.state.nj.us/treasury/pensions.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death, and disability
benefits. All benefits vest after ten years of service.
69
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees' Retirement System (PERS) (Continued)
The following represents the membership tiers for PERS:
Tier
1
2
3
4
5
Definition
Members who were enrolled prior to July 1, 2007
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1155th of final average salary for each year of service credit is available to tier 1 and 2
members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1160th of
final average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5
members upon reaching age 65. Early retirement benefits are available to tier 1 and 2 members before reaching age
60, tier 3 and 4 members with 25 or more years of service credit before age 62, and tier 5 members with 30 or more
years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member
retires prior to the age at which member can receive full early retirement benefits in accordance with their respective
tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have a least 25 years of service.
Deferred retirement is available to members who have at least ten years of service credit and have not reached the
service retirement age for the respective tier.
The State of New Jersey sponsors and administers the following defined contribution public employee retirement
program covering certain state and local government employees which include those City employees who are
eligible for pension coverage.
Defined Contribution Retirement Program (DCRP) - established under the provisions of Chapter 92, P.L. 2007
and Chapter 103, P.L. 2008 to provide coverage to elected and certain appointed officials, effective July 1, 2007 and
employees enrolled in PERS on or after July 1, 2007 who earn in excess of established annual maximum
compensation limits ( equivalent to annual maximum wage for social security deductions). This provision was
extended by Chapter 1, P.L. 2010, effective May 21, 2010, to new employees (Tier 2) of the PFRS and new
employees who would otherwise be eligible to participate in PERS on or after November 2, 2008 and do not earn the
minimum salary required for tier 3 enrollment or do not work the minimum required hours for tier 4 and tier 5
enrollment but earn a base salary of at least $5,000 are eligible for participation in the DCRP. Membership is
mandatory for such individuals with vesting occurring after one (1) year of membership. DCRP is a defined
contribution pension plan.
Other Pension Funds
The state established and administers a Supplemental Annuity Collective Trust Fund (SACT) which is available to
active members of the State-administered retirement systems to purchase annuities to supplement the guaranteed
benefits provided by their retirement system. The state or local governmental employers do not appropriate funds to
SACT.
The State also administers the Pensions Adjustment Fund (P AF). Prior to the adoption of pension reform legislation,
P.L. 2011, C.78, it provided cost of living increases equal to 60 percent of the change in the average consumer price
index, to eligible retirees in some State-sponsored pension systems which includes the CPFPF. Cost-of-living
increases provided under the State's pension adjustment program are currently suspended as a result of the reform
legislation. This benefit is funded by the State as benefit allowances become payable.
70
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Other Pension Funds (Continued)
The cost of living increase for PFRS and PERS are funded directly by each of the respective systems, but are
currently suspended as a result of reform legislation.
According to state law, all obligations of each retirement system will be assumed by the State of New Jersey should
any retirement system be terminated.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available
financial reports that include the financial statements and required supplementary information of each of the above
systems, funds, and trust. The financial reports may be accessed via the New Jersey, Division of Pensions and
Benefits website at www.state.nj.us/treasury/pensions.
Measurement Focus and Basis of Accounting
The financial statements of the retirement systems are prepared in accordance with U.S. generally accepted accounting
principles as applicable to governmental organizations. In doing so, the Division adheres to reporting requirements
established by the Governmental Accounting Standards Board (GASB).
The accrual basis of accounting is used for measuring financial position and changes in net position of the pension trust
funds. Under this method, contributions are recorded in the accounting period in which they are legally due from the
employer or plan member, and deductions are recorded at the time the liabilities are due and payable in accordance with
the terms of each plan. The accounts of the Division are organized and operated on the basis of funds. All funds are
accounted for using an economic resources measurement focus.
Investment Valuation
The Division oflnvestment, Department of the Treasury, State of New Jersey (Division oflnvestment) manages and
invests certain assets of the retirement systems.
Empower (formerly Prudential Retirement) is the third-party
administrator for the DCRP and provides record keeping, administrative services and investment options.
Investment transactions are accounted for on a trade or investment date basis. Interest and dividend income is
recorded on the accrual basis, with dividends accruing on the ex-dividend date. The net increase or decrease in the
fair value of investments includes the net realized and unrealized gains or losses on investments.
The State of New Jersey, Department of the Treasury, Division of Investment, issues publicly available financial
reports that include the financial statements of the State ofNew Jersey Cash Management Fund. The financial report
may be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Investment, P.O.
Box 290, Trenton, New Jersey 08625-0290, or at www.state.nj/treasury/doinvest.
Collective Net Pension Liability
The collective net pension liability of the participating employers for local PERS at June 30, 2024 was not available
and for June 30, 2023 is $14.6 billion, and the plan fiduciary net position as a percentage of the total pension liability
is 65.22% at June 30, 2023. The collective net pension liability of the participating employers for local PFRS at June
30, 2024 was not available and for June 30, 2023 is $13.1 billion and the plan fiduciary net position as a percentage
of total pension liability is 70.16% at June 30, 2023.
The total pension liabilities were determined based on actuarial valuations as of July 1, 2022 which were rolled
forward to June 30, 2023.
71
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Actuarial Methods and Assumptions
In the July 1, 2022 PERS and PFRS actuarial valuations, the actuarial assumptions and methods used in these
valuations were described in the Actuarial Assumptions and Methods section of the Actuary's report and are
included here in this note to the financial statements. The pension systems selected economic and demographic
assumptions and prescribed them for use for purposes of compliance with GASB Statement No. 68. The Actuary
provided guidance with respect to these assumptions, and it is their belief that the assumptions represent reasonable
expectations of anticipated plan experience.
Employer and Employee Pension Contributions
The contribution policy is set by laws of the State of New Jersey and contributions are required by active members
and participating employers. Plan members and employer contributions may be amended by State of New Jersey
legislation, with the amount of contributions by the State of New Jersey contingent upon the annual Appropriations
Act. As defined, the various retirement systems require employee contributions for 2024 and 2023 based on 10.0%
for PFRS, 7.50% for PERS and 5.50% for DCRP of employee's annual compensation.
For the years ended December 31, 2024 and 2023 for CPFPF, which is a single-employer defined benefit plan, the
annual pension cost differs from the annual required contribution. For PFRS and PERS, which are cost sharing
multi-employer defined benefit pension plans, employers' contributions are based on an actuarially determined
amount, which includes the normal cost and unfunded accrued liability.
In the DCRP, which is a defined
contribution plan, member contributions are matched by a 3% employer contribution. All contributions made by the
City for 2024, 2023 and 2022 were equal to the required contributions.
During the years ended December 31, 2024, 2023 and 2022, the City, was required to contribute for normal cost
pension contributions, accrued liability pension contributions, and non-contributory life insurance premiums the
following amounts which equaled the required contributions for each respective year:
2024
2023
2022
CPFPF
$
17,955
PFRS
$
4,323,906
4,427,298
4,203,227
$
1,461,930
1,338,573
1,231,022
$
DCRP
15,425
15,870
23,442
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
The regulatory basis of accounting requires participating employers in PERS and PFRS to disclose in accordance with
GASB Statement No. 68, Accounting and Financial Reporting/or Pensions, (GASE No.68) their proportionate share of
the collective net pension liability, collective deferred outflows of resources, collective deferred inflows of
resources and collective pension expense excluding that attributable to employer-paid member contributions.
Under GASB Statement No. 68 local governmental employers are required to provide certain financial information
based on a measurement date no earlier than the end of the employer's prior fiscal year. The GASB No. 68 financial
information from the State's Division of Pensions and Benefits to be reported for the year ended December 31, 2023 for
the measurement date of June 30, 2024 was not available as of the date of audit. Accordingly, N.J.A.C. 5:30-6.l(c)2
authorized and permits New Jersey municipalities to present the most recent available audited GASB No. 68 financial
information to be incorporated into the audit and remain in compliance with the regulatory basis of accounting
disclosure requirements for notes to the financial statements. As such the GASB No. 68 financial information for the
year ended December 31, 2024 is not presented in the notes to the financial statements.
The employer allocation percentages presented are based on the ratio of the contributions made as an individual
employer to the total contributions to the plan during the fiscal years ended June 30, 2024 and 2023. Employer
allocation percentages have been rounded for presentation purposes.
72
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Public Employees Retirement System (PERS) (Continued)
At December 31, 2023, the City reported a liability of $15,625,584 for its proportionate share of the PERS net pension
liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the
net pension liabihty was determined by an actuarial valuation as of July 1, 2022. The City's proportionate share of the
net pension liabihty was based on the ratio of the City's contributions to the pension plan relative to the total
contributions of all participating governmental entities durmg the measurement period. As of the measurement date of
June 30, 2023, the City's proportionate share was .10787 percent, which was an increase of .00172 percent from its
proportionate share measured as of June 30, 2022 of .10615 percent.
For the year ended December 31, 2023, the pension system has determined the City's pension expense (benefit) to be
($157,742) for PERS based on the actuarial valuation which is less than the actual contributions reported in the City's
financial statements of $1,338,573. At December 31, 2023, the City's deferred outflows of resources and deferred
inflows of resources related to PERS pension which are not reported on the City's financial statements are from the
following sources:
2023
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
Difference Between Expected and
Actual Experience
$
149,401
$
42,269
Changes of Assumptions
34,326
626,683
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
71,958
Changes in Proportion and Differences Between
City Contributions and Proportionate Share
of Contributions
1,319,971
169,224
Total
$
1,575,656
$
838,176
At December 31, 2023 the amounts reported as deferred outflows of resources and deferred inflows of resources related
to PERS pension will be recognized in pension expense (benefit) as follows:
Year
Ending
December 31,
Total
2024
$
(140,220)
2025
(27,733)
2026
886,220
2027
8,084
2028
11,129
Thereafter
$
737,480
73
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Public Employees Retirement System (PERS) (Continued)
Actuarial Assumptions
The City's total pension liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate:
Price
Wage
Salary Increases:
Rate for All Future Years
Investment Rate of Return
2023
2.75%
3.25%
2.75 - 6.55%
Based on Years
of Service
7.00%
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study
for the period July 1, 2018 to June 30, 2021.
Mortality Rates
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee mortality table
with an 82.2% adjustment for males and 101.4% adjustment for females, and with future improvement from the base
year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010 General Below-
Median Income Healthy Retiree mortality table with a 91.4% adjustment for males and 99.7% adjustment for females,
and with future improvement from the base year of 2010 on a generational basis. Disability retirement rates used to
value disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7%
adjustment for males and 117.2% adjustment for females, and with future improvement from the base year of 2010 on
generational basis. Mortality improvement is based on Scale MP-2021.
74
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7% at June 30, 2023) is
determined by the State Treasurer, after consultation with the Directors of the Division of Investment and Division of
Pensions and Benefits, the board of trustees and actuaries. The long-term expected rate of return on pension plan
investments was determined using a building-block method in which best-estimate ranges of expected future real rate of
return ( expected returns, net of pension plans investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June
30, 2023, as reported for the year ended December 31, 2023, are summarized in the following table:
Asset Class
Risk Mitigation Strategies
Cash Equivalents
U.S. Treasuries
Investment Grade Credit
US Equity
Non-US Developed Markets Equity
International Small Cap Equity
Emerging Markets Equity
High Yield
Real Assets
Private Credit
Real Estate
Private Equity
Discount Rate
Target
Allocation
3.00%
2.00%
4.00%
7.00%
28.00%
12.75%
1.25%
5.50%
4.50%
3.00%
8.00%
8.00%
13.00%
2023
Long-Term
Expected Real
Rate of Return
6.21%
3.31%
3.31%
5.19%
8.98%
9.22%
9.22%
11.13%
6.97%
8.40%
9.20%
8.58%
12.50%
The discount rate used to measure the total pension liability for PERS was 7.00% as of June 30, 2023. The projection
of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the
current member contribution rates and that contributions from employers and the nonemployer contributing entity will
be based on 100% of the actuarially determined contributions for the State employer and 100% of actuarially
determined contributions for the local employers. Based on those assumptions, the plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on plan investments was applied to all projected benefit payments in determining the total
pension liability.
75
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
Sensitivity of Net Pension Liability
The following presents the City's proportionate share of the PERS net pension liability as of December 31, 2023
calculated using the discount rate of 7.00%, as well as what the City's proportionate share of the PERS net pension
liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.00%) or 1-percentage-
point higher (8.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
(6.00%)
(7.00%)
(8.00%)
City's Proportionate Share of
the PERS Net Pension Liability
$
20,341,186
$
15,625,584
$
11,611,983
The sensitivity analysis was based on the proportionate share of the City's net pension liability at December 31, 2023.
A sensitivity analysis specific to the City's net pension liability was not provided by the pension system.
Pension Plan Fiduciary Net Position
Detailed information about the PERS pension plan's fiduciary net position is available in the separately issued financial
report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial
report
may
be
accessed
via
the
New
Jersey,
Division
of Pensions
and
Benefits,
website
at
www.state.nj.us/treasury/pensions.
Police and Firemen's Retirement System (PFRS)
At December 31, 2023, the City reported a liability of $35,140,570 for its proportionate share of the PFRS net pension
liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of July 1, 2022. The City's proportionate share of the
net pension liability was based on the ratio of the City's contributions to the pension plan relative to the total
contributions of all participating governmental entities during the measurement period. As of the measurement date of
June 30, 2023, the City's proportionate share was .31804 percent, which was a decrease of .02237 percent from its
proportionate share measured as of June 30, 2022 of. 34041 percent.
76
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
For the year ended December 31, 2023, the pension system has determined the City pension expense to be $574,408 for
PFRS based on the actuarial valuation which are less than the actual contributions reported in the City's financial
statements of $4,427,298. At December 31, 2023, the City's deferred outflows of resources and deferred inflows of
resources related to PFRS pension which are not reported on the City's financial statements are from the following
sources:
2023
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
Difference Between Expected and
Actual Experience
$
1,504,649
$
1,675,893
Changes of Assumptions
75,846
2,372,831
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
1,789,643
Changes in Proportion and Differences Between
City Contributions and Proportionate Share
of Contributions
3,661,040
Total
$
3,370,138
$
7,709,764
At December 31, 2023 the amounts reported as deferred outflows of resources and deferred inflows of resources related
to PFRS pension will be recognized in pension expense (benefit) as follows:
Year
Ending
December 31,
Total
2024
(2,806,902)
2025
(2,538,568)
2026
1,441,321
2027
(931,478)
2028
391,593
Thereafter
104,408
$
(4,339,626)
77
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Actuarial Assumptions
The City's total pension liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate:
Price
Wage
Salary Increases
Rate for All Future Years
Investment Rate of Return
2.75%
3.25%
3 .25%-16.25%
Based on Years
of Service
7.00%
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study
for the period July 1, 2018 to June 3 0, 2021.
Mortality Rates
Employee mortality rates were based on the PubS-2010 amount-weighted mortality table with a 105 .6% adjustment for
males and 102.5% adjustment for females. For healthy annuitants, mortality rates were based on the PubS-2010
amount-weighted mortality table with a 96.7% adjustment for males and 96.0% adjustment for females. Disability rates
were based on the PubS-2010 amount-weighted mortality table with a 152.0% adjustment for males and 109.3%
adjustment for females. Mortality improvement is based on Scale MP-2021.
78
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7% at June 30, 2023) is
determined by the State Treasurer, after consultation with the Directors of the Division of Investment and Division of
Pensions and Benefits, the board of trustees and actuaries. The long-term expected rate of return on pension plan
investments was determined using a building-block method in which best-estimate ranges of expected future real rate of
return ( expected returns, net of pension plans investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June
30, 2023, as reported for the year ended December 31, 2023, are summarized in the following table:
Asset Class
Risk Mitigation Strategies
Cash Equivalents
U.S. Treasuries
Investment Grade Credit
US Equity
Non-US Developed Markets Equity
International Small Cap Equity
Emerging Markets Equity
High Yield
Real Assets
Private Credit
Real Estate
Private Equity
Discount Rate
Target
Allocation
3.00%
2.00%
4.00%
7.00%
28.00%
12.75%
1.25%
5.50%
4.50%
3.00%
8.00%
8.00%
13.00%
2023
Long-Term
Expected Real
Rate of Return
6.21%
3.31%
3.31%
5.19%
8.98%
9.22%
9.22%
11.13%
6.97%
8.40%
9.20%
8.58%
12.50%
The discount rate used to measure the total pension liability for PFRS was 7.00% as of June 30, 2023. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members will be made at the
current member contribution rates and that contributions from employers will be based on 100% of the actuarially
determined contributions for the State. Based on those assumptions, the plan's fiduciary net position was projected to
be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on plan investments was applied to all projected benefit payments in determining the total pension
liability.
79
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Sensitivity of Net Pension Liability
The following presents the City's proportionate share of the PFRS net pension liability as of December 31, 2023
calculated using the discount rate of 7.00%, as well as what the City's proportionate share of the PFRS net pension
liability would be if it were calculated using a discount rate that is I-percentage-point lower (6.00%) or 1-percentage-
point higher (8.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
(6.00%)
(7.00%)
(8.00%)
City's Proportionate Share of
the PFRS Net Pension Liability
$
48,962,231
$
35,140,570
$
23,630,429
The sensitivity analysis was based on the proportionate share of the City's net pension liability at December 31, 2023.
A sensitivity analysis specific to the City's net pension liability was not provided by the pension system.
Special Funding Situation - PFRS
Under N.J.S.A. 43:16A-15, the City is responsible for their own PFRS contributions based on actuarially determined
amounts, except where legislation was passed which legally obligated the State to make contributions if certain
circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 8, P.L. 2000, Chapter
318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and
Chapter 201, P .L. 2001. The amounts contributed on behalf of the City by the State under this legislation is considered
to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a nonemployer
contributing entity.
Accordingly, the City's proportionate share percentage of the net pension liability, deferred
outflows and inflows determined under GASB Statement No. 68 is zero percent and the State's proportionate share is
100% for PFRS under this legislation.
At December 31, 2023, the State's proportionate share of the net pension liability attributable to the City for the PFRS
special funding situation is $6,475,059. For the year ended December 31, 2023, the pension system has determined the
State's proportionate share of the pension expense attributable to the City for the PFRS special funding situation is
$736,525, which is less than the actual contributions the State made on behalf of the City of $740,497. At December
31, 2023 (measurement date June 30, 2023) the State's share of the PFRS net pension liability attributable to the City
was .31804 percent, which was a decrease of .02237 percent from its proportionate share measured as of December 31,
2022 (measurement date June 30, 2022) of .34041 percent. The State's proportionate share attributable to the City was
developed based on actual contributions made to PFRS allocated to employers based upon covered payroll. These on-
behalf contributions have not been reported In the City's financial statements.
Pension Plan Fiduciary Net Position
Detailed information about the PFRS pension plan's fiduciary net position is available in the separately issued financial
report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial
reports
may
be
accessed
via
the
New
Jersey,
Division
of Pensions
and
Benefits,
website
at
www.state.nj.us/treasmy/pensions.
80
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS
The State of New Jersey sponsors and administers the post-retirement health benefit program plan for participating
municipalities including the City.
Plan Description and Benefits Provided
The State of New Jersey sponsors and administers the following post-retirement health benefit program covering
substantially all eligible local government employees from local participating employers.
State Health Benefit Program Fund- Local Government Retired (the Plan) (including Prescription Drug Program Fund)- The
Plan is a cost-sharing multiple-employer defined benefit other postemployment benefit (OPEB) plan with a special
funding situation. It covers employees of local government employers that have adopted a resolution to participate in
the Plan. For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits' (the Division) Annual Comprehensive Financial Report (ACFR), which can be found at
https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the participating employers.
Under the provisions of Chapter 88, P.L. 1974 and Chapter 48, P.L. 1999, local government employers electing to
provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88,
local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State
Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for
employer paid health benefits coverage for retired employees. Under Chapter 48, the employer may assume the cost of
postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2)
retires with 25 or more years of service credit in a State or locally administered retirement system and a period of
service of up to 25 years with the employer at the time of retirement as established by the employer; or 3) retired and
reached the age of 65 with 25 or more years of service credit in a State or locally administered retirement system and a
period of service of up to 25 years with the employer at the time of retirement as established by the employer; or 4)
retires and reached age 62 with at least 15 years of service with the employer. Further, the law provides that the
employer paid obligations for retiree coverage may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A. 52:14-l 7.32i, the State provides medical and
prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from
an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution
with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter
330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who
die in the line of duty under Chapter 271, P.L. 1989.
Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have less than 20
years of creditable service on June 28, 2011 will be required to pay a percentage of the cost of their health care
coverage in retirement provided they retire with 25 or more years of pension service credit. The percentage of the
premium for which the retiree will be responsible will be determined based on the retiree's annual retirement benefit
and level coverage.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available
financial reports that include the financial statements and required supplementary information of the above Fund. The
financial reports may be assessed via, the New Jersey, Division of Pensions and Benefits website at
www.state.nj.us/treasury/pensions.
81
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Plan Membership and Contributing Employers
Membership and contributing employers/nonemployers of the defined benefit OPEB plan consisted of the following at
June 30, 2023:
Active Plan Members
Inactive Plan Members or Beneficiaries Currently Receiving Benefits
Total
Contributing Employers
Contributing Nonemployers
Measurement Focus and Basis of Accounting
65,613
34,771
100,384
574
1
The financial statements of the OPEB plan are prepared in accordance with U.S. generally accepted accounting
principles as applicable to government organizations. In doing so, the Division adheres to reporting requirements
established by the Governmental Accounting Standards Board (GASB).
The accrual basis of accounting is used for measuring financial position and changes in net position of the other
postemployment benefit plan. Under this method, contributions are recorded in the accounting period in which they are
legally due from the employer or plan member, and deductions are recorded at the time the liabilities are due and
payable in accordance with the terms of each plan. The accounts of the Division are organized and operated on the
basis of funds. All funds are accounted for using an economic resources measurement focus.
Collective Net OPEB Liability
The collective net OPEB liability of the participating employers and the State, as the non-employer contributing entity,
of the Plan at June 30, 2024 was not available and for June 30, 2023 is $15.0 billion, and the plan fiduciary net (deficit)
as a percentage of the total OPEB liability is (0.79)% at June 30, 2023.
The total OPEB liabilities were determined based on actuarial valuations as of July 1, 2022 which was rolled forward to
June 30, 2023.
Actuarial Methods and Assumptions
In the July 1, 2022 OPEB actuarial valuation, the actuarial assumptions and methods used in this valuation were
described in the Actuarial Assumptions and Methods section of the Actuary's report and are included here in this note
to the financial statements. The Plan selected economic and demographic assumptions and prescribed them for use for
purposes of compliance with GASB Statement No. 75.
The Actuary provided guidance with respect to these
assumptions, and it is their belief that the assumptions represent reasonable expectations of anticipated plan experience.
82
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Post-Retirement Medical Benefits Contribution
The funding policy for the OPEB plan is pay-as-you-go; therefore, there is no prefunding of the liability. However, due
to premium rates being set prior to each calendar year, there can be a minimal amount of net position available to cover
benefits in future years. Contributions to pay for the health benefit premiums of participating employees in the OPEB
plan are collected from the State of New Jersey, participating local employers, and retired members. The State of New
Jersey makes contributions to cover those employees eligible under Chapter 330, P.L. 1967, as disclosed previously.
Local employers remit employer contributions on a monthly basis.
Retired member contributions are generally
received on a monthly basis.
The employers participating in the OPEB plan made contributions of $431.4 million and the State of New Jersey, as the
non-employer contributing entity, contributed $55.6 million for fiscal year 2023.
The State sets the employer contribution rate based on a pay-as-you-go basis rather than the actuarial determined
contribution, an amount actuarially determined in accordance with the parameters of GASB Statement No. 75. The
actuarial determined contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and any unfunded actuarial liabilities (or funding excess) of the plan using a systematic and
rational method over a closed period equal to the average of the expected remaining service lives of all employees that
are provided with OPEB through the Plan. The City's contributions to the State Health Benefits Program Fund-Local
Government Retired Plan for post-retirement benefits for the years ended December 31, 2024, 2023 and 2022 were
$4,130,224, $3,721,454 and $3,204,698, respectively, which equaled the required contributions for each year. In
addition, the City's reimbursements to eligible retired employees for Medicare Part B insurance coverage for the years
ended December 31, 2024, 2023 and 2022 were $125,522, $121,071 and $120,750, respectively.
OPEB Liabilities, OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
The regulatory basis of accounting requires participating employers in the State Health Benefit Program Fund - Local
Government Retired Plan to disclose in accordance with GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits other than Pension (GASE No. 75) their proportionate share of the collective net OPEB
liability, collective deferred outflows of resources, collective deferred inflows of resources and collective OPEB
expense excluding that attributable to retiree-paid member contributions.
Under GASB Statement No. 75 local governmental employers are required to provide certain financial information
based on a measurement date no earlier than the end of the employer's prior fiscal year. The GASB No. 75 financial
information from the State's Division of Pensions and Benefits to be reported for the year ended December 31, 2022 for
the measurement date of June 30, 2024 was not available as of the date of audit. Accordingly, N.J.A.C. 5:30-6.l(c)2
authorizes and permits New Jersey municipalities to present the most recent available audited GASB No. 75 financial
information to be incorporated into the audit and remain in compliance with the regulatory basis of accounting
disclosure requirements for notes to the financial statements. As such the GASB No. 75 financial information for the
year ended December 31, 2024 is not presented in the notes to the financial statements.
The employer allocation percentages presented are based on the ratio of the plan members as an individual employer to
the total plan members to the plan during the fiscal years ended June 30, 2023 and 2022. Employer allocation
percentages have been rounded for presentation purposes.
At December 31, 2023, the City reported a liability of $76,988,049 for its proportionate share of the net OPEB liability.
The net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB
liability was determined by an actuarial valuation as of July 1, 2022. The City's proportionate share of the net OPEB
liability was based on the ratio of the City's proportionate share of the OPEB liability attributable to the City at June 30,
2023 to the total OPEB liability for the State Health Benefit Program Fund - Local Government Retired Plan at June
30, 2023. As of the measurement date of June 30, 2023 the City's proportionate share was .51303 percent, which was
an increase of .07352 percent from its proportionate share measured as of June 30, 2022 of .43951 percent.
83
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
OPEB Liabilities, OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
For the year ended December 31, 2023, the Plan has determined the City's OPEB expense to be $3,417,517 based on
the actuarial valuations which is less than the actual contributions reported in the City's financial statements of
$3,721,454. At December 31, 2023, the City's deferred outflows ofresources and deferred inflows ofresources related
to the OPEB plan which are not reported on the City's financial statements are from the following sources:
Difference Between Expected and
Actual Experience
Changes of Assumptions
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Changes in Proportion and Differences Between
City Contributions and Proportionate Share
of Contributions
Contributions made Subsequent to the
Measurement Date
Total
Deferred
Outflows
of Resources
$
3,550,292
9,972,841
52,832,156
$
66,355,289
2023
Deferred
Inflows
of Resources
$
20,907,438
21,762,057
12,703
9,938,760
$
52,620,958
At December 31, 2023, the amounts reported as deferred outflows of resources and deferred inflows of resources
related to the OPEB plan will be recognized in OPEB expense (benefit) as follows:
Year
Ending
December 31,
Total
2024
$
1,630,173
2025
1,626,949
2026
3,246,774
2027
4,303,949
2028
2,077,428
Thereafter
849,058
$
13,734,331
84
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Actuarial Assumptions
The City's total OPEB liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. The actuarial assumptions vary for each plan member depending on the pension plan the member is enrolled in.
This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate
Salary Increases*
PERS:
Rate For All Future Years
PFRS:
Rate For All Future Years
2.50%
2.75% to 6.55%
Based on Years of Service
3.25% to 16.25%
Based on Years of Service
* Salary increases are based on years of service within the respective pension plan.
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of the PFRS and PERS
experience studies prepared for July 1, 2018 to June 30, 2021.
100% of active members are considered to participate in the plan upon retirement.
Mortality Rates
Pre-retirement and post-retirement mortality rates were based on the Pub-2010 Healthy "Safety" for PFRS and Healthy
"General" for PERS classification headcount-weighted mortality table with fully generational mortality improvement
projections from the central year using Scale MP-2021. Disability mortality rates were based on the Pub-2010 Disabled
"Safety" for PFRS and Disabled "General" for PERS classification headcount-weighted mortality table with fully
generational mortality improvement projections from the central year using Scale MP-2021.
Health Care Trends
The trend rate for pre-Medicare medical benefits is initially 6.50% and decreases to a 4.50% long-term trend rate after 9
years. For post-65 medical benefits PPO, the trend is, increasing to 14.80% in Fiscal Year 2026 and decreasing to
4.50% in Fiscal Year 2033. For HMO the trend is increasing to 17.40% in Fiscal Year 2026 and decreasing to 4.50% in
Fiscal Year 2033. For prescription drug benefits, the initial trend rate is 9.50% and decreases to a 4.50% long-term
trend rate after 7 years. For the Medicare Part B reimbursement, the trend rate is 5.00%.
Discount Rate
The discount rate for June 30, 2023 measurement date was 3.65%. This represents the municipal bond return rate as
chosen by the State. The source is the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt
general obligation municipal bonds with an average rating of AA/Aa or higher. As the long-term rate ofreturn is less
than the municipal bond rate, it is not considered in the calculation of the discount rate, rather the discount rate is set at
the municipal bond rate.
85
CITY OF RAHWAY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Sensitivity of Net OPEB Liability to Changes in the Discounts Rate
The following presents the City's proportionate share of the net OPEB liability as of December 31, 2023 calculated
using the discount rate of 3.65% as well as what the City's proportionate share of the net OPEB liability would be if it
were calculated using a discount rate that is I-percentage-point lower 2.65% or I-percentage-point higher 4.65% than
the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
2.65%
3.65%
4.65%
City's Proportionate Share of
the Net OPEB Liability
$
89,176,700
$
76,988,049
$
67,184,159
The sensitivity analysis was based on the proportionate share of the City's net OPEB liability at December 31, 2023. A
sensitivity analysis specific to the City's net OPEB liability was not provided by the Plan.
Sensitivity of Net OPEB Liability to Changes in the Healthcare Trend Rate
The following presents the City's proportionate share of the net OPEB liability as of December 31, 2023 calculated
using the healthcare trend rates as disclosed above as well as what the City's proportionate share of the net OPEB
liability would be if it were calculated using healthcare trend rates that are I -percentage-point lower or 1-percentage-
point higher than the current rate:
City's Proportionate Share of
the Net OPEB Liability
$
1%
Decrease
65,430,783
Healthcare Cost
Trend Rates
$
76,988,049
$
1%
Increase
91,784,882
The sensitivity analysis was based on the proportionate share of the City's net OPEB liability at December 31, 2023. A
sensitivity analysis specific to the City's net OPEB liability was not provided by the pension system.
Special Funding Situation
Under N.J.S.A. 43:3C-24 the City is responsible for their own OPEB contributions based on actuarially determined
amounts, except where legislation was passed which legally obligated the State to make contributions if certain
circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 330, P.L. 1997 and
Chapter 271, P.L., 1989.
Under Chapter 330, P.L. 1997, the State pays the premiums or periodic charges for the
qualified local police and firefighter retirees and dependents equal to 80 percent of the premium of periodic charge for
the category of coverage elected by the qualified retiree under the State managed care plan or a health maintenance
organization participating in the program providing the lowest premium or periodic charge. The State also provides
funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under
Chapter 271, P.L. 1989. The amounts contributed on behalf of the City by the State under this legislation is considered
to be a special funding situation as defined by GASB Statement No. 75 and the State is treated as a nonemployer
contributing entity.
Accordingly, the City's proportionate share percentage of the net pension liability, deferred
outflows and inflows determined under GASB Statement No. 75 is zero percent and the State's proportionate share is
100% of OPEB under this legislation.
86
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Special Funding Situation (Continued)
At December 31, 2023, the State's proportionate share of the net OPEB liability attributable to the City for the OPEB
special funding situation is $177,211. For the year ended December 31, 2023 the plan has determined the State's
proportionate share of the OPEB expense (benefit) attributable to the City for the OPEB special funding situation is
$(32, 132).
At December 31, 2023, (measurement date June 30, 2023), the State's share of the OPEB liability
attributable to the City was .00508 percent, which was a decrease of .001 percent from its proportionate share measured
as of December 31, 2022 (measurement date June 30, 2022) of .00608 percent. The State's proportionate share
attributable to the City was developed based on eligible plan members subject to the special funding situation. This data
takes into account active members from both participating and non-participating employer locations and retired
members currently receiving OPEB benefits.
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the separately issued financial report
from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial reports may
be accessed via the New Jersey, Division of Pensions and Benefits, website at www.state.nj.us/treasury/pensions.
NOTE 14 RISK MANAGEMENT
The City is exposed to various risks of loss related to general liability, automobile coverage, theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; termination of employees and natural disasters. The
City has obtained commercial insurance coverage to guard against these events to minimize the exposure to the City
should they occur.
The City of Rahway is a member of the Central Jersey Joint Insurance Fund (CJSIF). The joint insurance fund is both
an insured and self-administered group of municipalities established for the purpose of insuring against property
damage, general liability, motor vehicles and equipment liability and worker's compensation. The Fund is a risk-
sharing public entity pool.
The relationship between the City and the insurance fund is governed by a contract and by-laws that have been adopted
by resolution of each unit's governing body. The City is contractually obligated to make all annual and supplementary
contributions to the insurance fund, to report claims on a timely basis, to cooperate with the management of the fund, its
claims administrator and attorneys in claims investigation and settlement, and to follow risk management procedures as
outlined by the fund.
Members have a contractual obligation to fund any deficit of the fund attributable to a
membership year during which the municipality was a member.
The fund provides its members with risk management services, including the defense of and settlement of claims, and
established reasonable and necessary loss reduction and prevention procedures to be followed by the members.
Complete financial statements of the fund can be obtained by contacting the fund's Treasurer.
There has been no significant reduction in insurance coverage from the previous year nor have there been any
settlements in excess of insurance coverage in any of the prior three years.
87
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 14 RISK MANAGEMENT (Continued)
The City has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit
Reimbursement Method". Under this plan the City is required to reimburse the New Jersey Unemployment Trust Fund
for benefits paid to its former employees and charged to its account with the State. The City is billed quarterly for
amounts due to the State. The following is a summary of City contributions, employee contributions, reimbursements
to the State for benefits paid and the ending balance of the City's unemployment compensation trust fund for the current
and previous two years:
Year Ended
City
Employee
Amount
Ending
December 31,
Contributions
Contributions
Reimbursed
Balance
2024
None
$
43,247
$
72,994
$
43,230
2023
None
36,329
None
72,977
2022
None
18,330
None
36,648
NOTE 15 CONTINGENT LIABILITIES
The City is a party defendant in some lawsuits, none of a kind unusual for a municipality of its size and scope of
operation. In the opinion of the City's Attorney, the potential claims against the City not covered by insurance policies
would not materially affect the financial condition of the City.
Pending Tax Appeals - Various tax appeal cases were pending in the New Jersey Tax Court at December 31, 2024 and
2023. Amounts claimed have not yet been determined. The City is vigorously defending its assessments in each case.
Under the accounting principles prescribed by the Division of Local Government Services, Department of community
Affairs, State of New Jersey, the City does not recognize a liability, if any, until these cases have been adjudicated. The
City expects such amounts, if any, could be material. As of both December 31, 2024 and 2023, the City reserved
$970,418 in the Current Fund for tax appeals pending in the New Jersey Tax Court. Funding of any ultimate liability
would be provided for in succeeding years' budget or from fund balance.
Federal and State Awards - The City participates in a number of federal and state programs that are fully or partially
funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the
appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program regulations,
the City may be required to reimburse the grantor government. As of December 31, 2024 and 2023, significant
amounts of grant expenditure have not been audited by the various grantor agencies but the City believes that
disallowed expenditures, if any, based on subsequent audits will not have a material effect on the overall financial
position of the City.
NOTE 16 FEDERAL ARBITRAGE REGULATIONS
The City is subject to Section 148 of the Internal Revenue Code as it pertains to the arbitrage rebate on all tax-exempt
obligations, both long and short-term debt. Under the 1986 Tax Reform Act, the Internal Revenue Service (IRS)
required that all excess earnings from investment proceeds be rebated to the IRS. Arbitrage, for purposes of these
regulations, is defined as the difference between the yield on the investment and the yield on the obligations issued. If
there are excess earnings, this amount may be required to be rebated to the IRS. At December 31, 2024 and 2023, the
City had no estimated arbitrage earnings due to the IRS.
88
CITY OF RAHWAY
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 17 PUBLIC/PRIVATE PARTNERSHIPS
The City presently owns a water supply, treatment, transmission, storage and distribution system, and a billing and
collections department (the "Water System"). The City has entered into a management services agreement with Veolia
(formerly Suez, formerly United Water Operations, Inc.) for the operation, management, maintenance and repair of the
Water System in accordance with the provisions of the "New Jersey Water Supply Public-Private Contracting Act" set
forth at N.J.S.A. 58:26-19 ~ ~-
Pursuant to the terms of the original agreement, the City retained ownership of the Water System and Veolia will
operate, manage, maintain and repair the Water System for a period of twenty (20) years, beginning September 29,
1999. In exchange for these services, the City paid Veolia an annual Fixed Management Fee. The agreement did not
provide for the payment of any concession fees by Suez to the City.
During 2017, the aforementioned original agreement was terminated by mutual agreement of the City and Veolia and a
new agreement was entered into for a period of twenty (20) years, beginning on May 15, 2017.
NOTE 18 TAX ABATEMENTS
For the years ended December 31, 2024 and 2023, the City provided property tax abatements through a certain
program authorized under State statutes.
•
The Long Term Tax Exemption Law (NJSA 40A:20 et.seq.) is focused on broad areas of redevelopment. It
allows for a longer abatement term to carry out a larger development plan through declaring an area as being
"in need of redevelopment". These long-term property abatements may last up to 30 years from completion
of a project or 35 years from execution of the financial agreement. The process is initiated when the
municipality passes a resolution calling for the municipal planning board to study
the need for designating
an area "in need of redevelopment". Upon adopting the planning board's recommendations and formalizing
the redevelopment area designation, a municipality adopts a redevelopment plan, engages
redevelopment
entities to carry out the plan, and may authorize long-term tax abatements in the process. Developers submit
abatement applications to the governing body for review. The financial agreement is approved through
adoption of a local ordinance. The agreement exempts a project from taxation, but requires a payment in lieu
of taxes (PILOTs) in an amount based generally on a percentage of project costs or revenue generated by the
project, depending on the type of project. For the years ended December 31, 2024 and 2023 the City abated
property taxes totaling $10,170,701 and $5,824,682, respectively under the LTTE program.
The City
received $4,081,036 and $3,571,295 in PILOT payments under this program for the years ended December
31, 2024 and 2023, respectively.
NOTE 19 SUBSEQUENT EVENTS
Bond Anticipation Notes
On July 23, 2025, the City issued Bond Anticipation Notes in the amount of $35,698,000 to temporarily finance
expenditures related to various capital projects. The City awarded the sale of said notes to Jefferies LLC at an interest
rate of 4.0%. These notes, dated July 23, 2025 will mature on July 22, 2026.
Debt Authorized
During 2025, the City adopted bond ordinances authorizing the issuance of $7,252,662 in bonds or bond anticipation
notes to fund certain capital projects. As of the date of this report the City has not issued nor awarded the sole of said
bonds or notes.
89
SUPPLEMENTARY SCHEDULES
CURRENT FUND
CITY OF RAHWAY
STATEMENT OF CASH - TREASURER
Balance, December 31, 2023
Increased by:
Taxes Receivable
Revenue Accounts Receivable
Prepaid Taxes
Grants Receivable
Non Budget Revenue
Due from State-Senior Citizen and Veterans Deductions
General Capital Fund Receipts Deposited in Current Fund
Water Utility Operating Fund Receipts Deposited in Current Fund
Receipts from Animal Control Trust Fund
Receipts from Self Insurance Trust Fund
Receipts from General Capital Fund
Receipts from Sewer Utility Operating Fund
Receipts from Parking Utility Operating Fund
Unappropriated Reserves for Grants
Decreased by:
2024 Budget Appropriations
2023 Appropriation Reserves
Encumbrances Payable
Accounts Payable and Other Liabilities
County Taxes
County Added Taxes
Local District School Taxes
Appropriated Grant Reserves
Tax Overpayments
Special Improvement District Expenditures Paid by Current Fund
Special Emergency Note Payable
Refund of Prior Year Revenue
Special Improvement District Expenditures Paid by Current Fund
Payments to Other Trust Fund
Payments to Water Utility Operating Fund
Sewer Utility Operating Fund Expenditures Paid by Current Fund
Balance, December 31, 2024
90
EXHIBIT A-4
$
26,240,656
$ 109,655,469
15,676,820
493,510
257,738
1,091,636
95,626
431,728
2,250,000
19,379
1,073
2,082,388
160,640
650,000
1,136,761
134,002,768
160,243,424
61,439,378
342,387
1,147,813
121,509
15,328,964
47,696
49,928,320
194,534
9,940
10,000
1,200,000
123,090
418,503
841,777
5,018,914
368,021
136,540,846
$
23,702,578
Tax Collector
City Clerk
Health Officer
Municipal Court
Recreation
CITY OF RAHWAY
STATEMENT OF CHANGE FUNDS
Balance,
December 31,
2023
$
1,000
20
25
250
300
$
1,595
91
EXHIBIT A-5
Balance,
December 31,
2024
$
1,000
20
25
250
300
$
1,595
CITY OF RAHWAY
STATEMENT OF GRANTS RECEIVABLE
Balance,
2024
December 31,
Revenue
2023
Realized
Anti-Gang Strategies
$
234,191
Drug Free Communities
248,699
Justice Grant
4,425
Bulletproof Vest Partnership
10,461
Recreation for Individuals with Disabilities
20,000
NJ Crime Stats Exhange
20,000
NJACCHO Local Public Health Infrastructure
8,651
$
242,713
Congressional Infrastructure
2,500,000
Alcohol Education and Rehabilitation
6,374
Community Based Art
17,000
$
3,063,427 $
249,087
92
EXHIBIT A-6
Balance,
Cash
December 31,
Receipts
2024
$
234,191
248,699
4,425
10,461
20,000
20,000
$
251,364
2,500,000
6,374
17,000
$
257,738
$
3,054,776
CITY OF RAHWAY
STATEMENT OF DUE FROM STATE OF NEW JERSEY -
SENIOR CITIZEN AND VETERAN DEDUCTIONS
Balance, December 31, 2023
Increased by:
Senior Citizens' and Veterans'
Deductions Per Tax Billings
Senior Citizens' and Veterans'
Deductions Allowed by Tax Collector
Decreased by:
Cash Receipts
Senior Citizen and Veteran Deductions Disallowed by Tax Collector
Balance, December 31, 2024
93
$
95,500
2,500
95,626
2,374
EXHIBIT A-7
$
74,665
98,000
172,665
98,000
$
74,665
EXHIBIT A-8
CITY OF RAHWAY
STATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Senior
Senior
Citizens' and
Citizens' and
Balance,
Veterans'
Veterans'
Transferred
Balance,
December 31,
2024
Added
Deductions
Collected In
Deductions
to Tax
December 31,
Year
2023
l&Yy
Taxes
Disallowed
2023
2024
Allowed
Cancelled
Title Liens
2024
2019
$
750
$
750
2022
11,215
$
4,856
$
6,359
2023
1,612,484
$
5,916
1,452,792
152,557
13,051
1,624,449
5,916
1,457,648
153,307
19,410
2024
$ 109,369,399
1,653,939
$
2,374
$
385,827
108,197,821
$
98,000
$
235,921
$
57,733
2,050,410
-
$
1,624,449
$ 109,369,399
$
1,659,855
$
2,374
$
385,827
$ 109,655,469
$
98,000
$
389,228
$
57,733
$
2,069,820
Anal:ysis of 2024 Tax Leyy
Tax Yield
General Purpose Tax
$ 108,968,556
Special Improvement District Tax
400,843
Added Taxes (54:4-63.1 et seq.)
1,653,939
$ 111,023,338
Tax Levy
Special Improvement District Tax
$
400,000
Local District School Tax (Abstract)
49,928,320
County Tax
$ 14,727,349
County Open Space
601,615
County Share of Added Taxes
232,507
15,561,471
Local Tax for Municipal Purposes
42,390,396
Minimum Library Tax
1,319,265
Additional Tax Levied
1,423,886
45,133,547
$ 111,023,338
94
EXHIBIT A-9
CITY OF RAHWAY
ST A TEMENT OF TAX TITLE LIENS
Balance, December 3 1, 2023
$
643,253
Increased by:
Transfers from Current Taxes Receivable
57,733
Balance, December 31, 2024
$
700,986
EXHIBIT A-10
STATEMENT OF PROPERTY ACQUIRED FOR TAXES
Balance, December 31, 2023
$ 2,664,500
Balance, December 31, 2024
$ 2,664,500
95
EXHIBIT A-11
CITY OF RAHWAY
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
Balance,
Balance,
December 31,
Accrued in
December 3 1,
2023
2024
Collected
2024
Licenses
Alcoholic Beverages
$
63,550
$
63,550
Other
26,525
26,525
Fees and Permits
235,316
235,316
Municipal Court
Fines and Costs
$
25,505
432,234
420,994
$
36,745
Interest and Costs on Taxes
359,261
359,261
Interest on Investments
1,021,444
1,021,444
Police Department Fees
128,856
128,856
Payments in Lieu of Taxes
Lower Essex St. - Denholtz Management
533,069
533,069
Rosegate
26,796
26,796
Senior Citizen Housing
352,104
352,104
Meyers Senior Residence
20,498
20,498
Metro
93,275
93,275
Waters Edge
432,186
432,186
Lafayette
272,890
272,890
Reva
269,756
269,756
Arist Housing
28,431
28,431
Domoch/Mint
504,485
504,485
R W J Hospital
1,250,789
1,250,789
Meridia Brownstones
296,757
296,757
Comcast Cable Franchise Fee
79,897
79,897
Cellular Phone Tower Fees
301,402
301,402
Vacant/Foreclosure House Registration
192,620
192,620
Police Security - Administrative Fees
9,432
9,432
Planning Board Application Fees
6,853
6,853
Street Opening Permits
59,038
59,038
Uniform Construction Code Penalties
123,950
123,950
Uniform Construction Code Fees
1,297,418
1,297,418
Energy Receipts Taxes
4,056,777
4,056,777
U.C.U.A. Host Community Fees
2,850,257
2,850,257
Solid Waste Fees
Rahway Housing Authority
10,401
10,401
Outside Health Services
Winfield
8,531
8,531
Hotel Fees
343,262
343,262
$
25,505
$ 15,688,060
$ 15,676,820
$
36,745
96
EXHIBIT A-12
CITY OF RAHWAY
SCHEDULE OF OTHER LIENS RECEIVABLE
Balance, December 3 1, 2023
$
130,950
Increased by:
Liens Issued
3,780
Balance, December 31, 2024
$
134,730
EXHIBIT A-13
STATEMENT OF DUE TO RAHWAY REDEVELOPMENT AGENCY
Increased by:
Current Fund Expenditures Paid by Redevelopment Agency
$
54,006
Balance, December 31, 2024
$
54,006
97
EXHIBIT A-14
Page 1
CITY OF RAHWAY
STATEMENT OF 2023 APPROPRIATION RESERVES
Balance
Cancelled
Balance
December 31,
Encumbrances
After
Balance
2023
Payable
Modification
Expended
Lapsed
General Government
Department of Administration
Salaries and Wages
$
5,014
$
5,014
$
5,014
Other Expenses
5,218
$
12,686
17,904
17,904
Mayor's Office
Salaries and Wages
4
4
4
Municipal Council
Salaries and Wages
1,181
1,181
1,181
Other Expenses
670
670
670
Environmental Commission
Salaries and Wages
322
322
322
Other Expenses
31
31
31
City Clerk
Salaries and Wages
3,482
3,482
3,482
Other Expenses
18,196
864
19,060
19,060
Department of Revenue and Finance
Salaries and Wages
596
596
596
Other Expenses
10,906
32,310
43,216
43,216
Revenue Administration
Salaries and Wages
5,769
5,769
5,769
Other Expenses
14,341
14,341
14,341
Department of Assessment
Salaries and Wages
342
342
342
Other Expenses
12,118
12,118
$
1,325
10,793
Department of Law
Salaries and Wages
819
819
819
Other Expenses
13,088
48,319
61,407
61,407
Municipal Court
Salaries and Wages
10,314
10,314
10,314
Other Expenses
7,407
3,409
10,816
10,816
Division of Engineering
Salaries and Wages
2,328
2,328
2,328
Other Expenses
20,019
5,640
25,659
25,659
Department of Building, Planning
& Economic Development
Salaries and Wages
859
859
859
Other Expenses
815
815
563
252
Planning Board
Salaries and Wages
42
42
42
Other Expenses
3,487
3,487
82
3,405
Property Maintenance
Salaries and Wages
1,028
1,028
1,028
Other Expenses
5,912
5,912
5,912
Board of Adjustment
Salaries and Wages
17
17
17
Other Expenses
2,232
2,232
1,041
1,191
Municipal A.B.C. Board
Salaries and Wages
100
100
100
Other Expenses
532
532
532
Insurance
Other Insurance
287,495
287,495
246,804
40,691
Employee Group Insurance
751,827
751,827
299,016
452,811
Health Benefit Waiver
14,348
14,348
14,348
Police Department
Salaries and Wages
72,108
72,108
72,108
Other Expenses
33,524
33,524
2,120
31,404
Office of Emergency Management
Salaries and Wages
574
574
574
Other Expenses
9,143
81
9,224
9,224
Fire Department
Salaries and Wages
22,250
22,250
22,250
Other Expenses
4,488
4,488
1,646
2,842
98
EXHIBIT A-14
Page2
CITY OF RAHWAY
STATEMENT OF 2023 APPROPRIATION RESERVES
Balance
Cancelled
Balance
December 31,
Encumbrances
After
Balance
2023
Payable
Modification
Expended
Lapsed
Department of Public Works
Salaries and Wages
$
93
$
93
$
93
Other Expenses
87,969
$
35,406
123,375
123,375
Solid Waste and Recycling
Salaries and Wages
63
63
63
Other Expenses
68,284
68,284
$
4,517
63,767
Department of Health and Welfare
Salaries and Wages
765
765
765
Other Expenses
41,705
41,705
512
41,193
Community Services - Senior Services
Salaries and Wages
2,373
2,373
2,373
Other Expenses
445
1,333
1,778
1,778
Recreation Department
Salaries and Wages
1,457
1,457
1,457
Other Expenses
17,941
3,017
20,958
20,958
Social Justice Commission
Salaries and Wages
26
26
26
Other Expenses
8,055
8,055
300
7,755
Uniform Construction Code Enforcement
Salaries and Wages
7,144
7,144
7,144
Other Expenses
10,513
110
10,623
10,623
Unclassified
Electricity
85,567
10,554
96,121
96,121
Heating Fuels
10,542
10,542
888
9,654
Telephone
10,602
9,905
20,507
20,507
Street Lighting
91,608
5,554
97,162
97,162
Statutory Expenditures
Contribution to:
Public Employee' Retirement System
12,000
12,000
12,000
Pension Adjustment Fund
20,000
20,000
20,000
Social Security System (O.A.S.I.)
56,709
56,709
56,709
DCRP
9,130
9,130
9,130
Police Dispatch 9-1-1 System
Salaries and Wages
12,053
12,053
12,053
Other Expenses
596
60
656
656
Total
$
1,898,586
$
169,248
$ 2,067,834
558,814
$
1,509,020
Cash Disbursements
$
342,387
Accounts Payable
216,427
$
558,814
99
CITY OF RAHWAY
STATEMENT OF ENCUMBRANCES PAYABLE
Balance, December 31, 2023
Increased by:
Charged to 2024 Budget Appropriations
Charged to Appropriated Grant Reserves
Decreased by:
Cash Disbursements
Cancelled and Restored to Appropriation Reserves
Balance, December 31, 2024
$
1,770,205
30,955
1,147,813
169,248
2024 Budget Appropriations
Appropriated Grant Reserves
STATEMENT OF ACCOUNTS PAYABLE AND OTHER LIABILITIES
Balance, December 31, 2023
Increased by:
Transferred from Appropriation Reserves
$
216,427
Refund of Prior Year Taxes
25,295
Transferred from Special Improvement District Payable
15,000
Decreased by:
Cash Disbursements
121,509
Transferred to Tax Overpayments
16,867
Balance, December 31, 2024
100
EXHIBIT A-15
$
1,317,061
1,801,160
3,118,221
1,317,061
$
1,801,160
$
1,770,205
30,955
$
1,801,160
EXHIBIT A-16
$
138,376
256,722
395,098
138,376
$
256,722
Balance, December 31, 2023
Increased by:
Transferred from Other Liabilities
Decreased by:
Cash Disbursements
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Collection of 2025 Taxes
Decreased by:
Applied to 2024 Taxes Receivable
Balance, December 31, 2024
CITY OF RAHWAY
STATEMENT OF TAX OVERPAYMENTS
STATEMENT OF PREPAID TAXES
101
EXHIBIT A- 17
$
$
9,940
16,867
26,807
9,940
16,867
EXHIBIT A-18
$
385,827
493,510
879,337
385,827
$
493,510
EXHIBIT A-19
CITY OF RAHWAY
STATEMENT OF RESERVE FOR FEDERAL AND STATE GRANTS - UNAPPROPRIATED
Balance,
Increased
Decreased by:
Balance,
December 31,
by
Budgeted
December 31,
2023
Receipts
Revenue
2024
Alcohol Education and Rehabilitation
$
6,879
$
6,879
Multiple Housing Inspections
11,794
$
5,857
11,794
$
5,857
Police Body Armor Grant
5,683
5,683
Recycling Tonnage Grant
29,605
19,199
29,605
19,199
Kids Recreation Grant
133,000
71,071
133,000
71,071
Stormwater Assistance
15,000
15,000
Thomas Grahill Trust
10,000
10,000
Clean Communities
60,640
68,877
60,640
68,877
Childhood Lead Exposure Program ( CLEP)
15,500
32,559
15,500
32,559
Municipal Alliance
7,424
8,321
7,424
8,321
Local Recreation Improvement Grant
70,000
70,000
Selective Enforcement Management
42,000
42,000
Emergency Management
10,000
10,000
National Opioid Settlement
7,179
64,496
7,179
64,496
State Forestry Grant
45,200
45,200
Public Health Infrastructure
194,145
194,145
Strengthening Local Health Capacity
234,936
234,936
Recreation Dog Park
375,000
375,000
Distracted Driving
2,100
2,100
Pedestrian Safety
3,500
3,500
Green the Streets
1,500
1,500
$
414,704
$
1,136,761
$
414,704
$
1,136,761
102
EXHIBIT A-20
CITY OF RAHWAY
STATEMENT OF APPROPRIATED RESERVES FOR GRANTS
Balance,
Transferred from
Balance,
December 31,
2024 Budget
December 31,
2023
A1mroI!riations
ExI!ended
Cancelled
2024
Multiple Housing Inspections
$
109,718
$
11,794
$
121,512
Clean Communities
254,209
60,640
$
31,371
283,478
Senior Services
14,227
14,227
DEP Community Base Art
712
712
Drunk Driving Enforcement Fund
30,861
30,861
Body Armor Grant
14,044
5,683
11,132
8,595
Impaired Driving Countermeasure
5,514
5,514
Public Health Priority Grant
282
$
282
RWJ Foundation - Kaboom
350
350
Municipal Alliance Program
15,786
7,424
14,501
8,709
Recycling Tonnage Grant
651
29,605
29,577
679
Safe and Secure Communities
110,355
110,355
Blue Acres
8,684
8,684
Organized Crime Task Force
2,846
2,846
Emergency Management Grant
18,712
10,000
28,712
NJACCO COVID
16,910
16,910
Infant Smoke Detector Program
432
432
Recreation Dog Park
50,000
50,000
NJ Tree Foundation
2,500
2,500
National Opioid Settlement
53,204
7,179
12,318
48,065
Local Law Enforcement Block Grant
17,548
17,548
Hazardous Discharge Site Remediation
291,946
291,946
ADA Taser Grant
11,240
11,240
Alcohol Education and Rehabilitation Fund
13,121
13,253
5,361
21,013
General Motors - DARE Programs
7,260
7,260
Merck & Co. Mini Grant
15,415
15,415
Recreation Heart Grant
4,924
4,924
Recreation History Grant
375
375
County PDA Grant
345
345
Grahill Charitable Trust
26,314
22,772
3,542
NY/NJ Snowflake Youth
5,118
5,118
Drug Free Communities
66,540
50,422
16,118
Anti Gang Strategies
75,878
75,878
Smart Growth Program
36,160
36,160
Green the Streets
79,124
79,124
Statewide Livable Communities - Library
72,396
72,396
Statewide Livable Communities - Essex St.
Local Domestic Preparedness
2,630
2,630
Union County Recreation Grant
102,075
102,075
Kids Recreation Grant
138,139
133,000
271,139
Infrastructure LPH
168,049
168,049
Pandemic Influenza Grant
9,094
9,094
NJACCO COVID
128,169
11,257
116,912
NJ Health Strengthening
68,763
74,664
25,538
117,889
Child Passenger Safety Grant
2,375
2,375
NJ Wayfinding System
75,000
75,000
NJ 911 General Assistance Grant
301
301
NJ 911 Equipment Grant
47
47
NJ DCA Brownfields
27,271
27,271
NJ Treasury Grant
37,200
37,200
Downtown Retail Study
20,000
20,000
NJ BPU Clean Energy Program
44,839
44,839
Obey the Signs
4,000
4,000
Click It or Ticket
4,406
4,406
Byrne Justice Grant
2,322
2,322
Congressional Infrastructure
2,500,000
2,500,000
Motor Vehicles
3,000
3,000
CLEP Grant
17,125
15,500
32,625
EV Grant
8,000
8,000
Stormwater Assistance
15,000
15,000
NJ County Health Grant
5,615
5,615
Strengthening Local Health Capacity
199,951
199,951
Local Recreation Improvement Grant
70,000
70,000
Selective Enforcement Management
42,000
42,000
Matching Funds for Grants
16,708
16,708
$
4,850,731
$
663,791
$
225,489
$
239,802
$
5,049,231
Cash Disbursements
$
194,534
Encumbrances Payable
30,955
$
225,489
103
Increased by:
2024 Levy
General Taxes
County Open Space Taxes
Decreased by:
Payments
Balance, December 31, 2023
Increased by:
2024 County Added Taxes
Decreased by:
Payments
Balance, December 31, 2024
Increased by:
2024 Local School Ta,'< Levy
Decreased by:
CITY OF RAHWAY
STATEMENT OF COUNTY TAXES PAYABLE
STATEMENT OF AMOUNT DUE COUNTY FOR ADDED TAXES
STATEMENT OF LOCAL DISTRICT SCHOOL TAXES PAYABLE
Payments to Local School District
104
$ 14,727,349
601,615
EXHIBIT A-21
$ 15,328,964
$ 15,328,964
EXHIBIT A-22
$
47,696
232,507
280,203
47,696
$
232,507
EXHIBIT A-23
$ 49,928,320
$ 49,928,320
CITY OF RAHWAY
STATEMENT OF SPECIAL IMPROVEMENT DISTRICT TAXES PAYABLE
Balance, December 3 1, 2023
Increased by:
2024 Levy
Decreased by:
Payments to SID District
Transferred to Other Liabilities
Balance, December 31, 2024
Balance, December 31, 2023
Balance, December 3 I, 2024
COVID-19 Revenue Losses
Terminal Pay
Terminal Pay
Terminal Pay
STATEMENT OF RESERVE FOR TAX APPEALS
STATEMENT OF DEFERRED CHARGES
Balance,
Amount
Amount
December 3 1,
Resulting
Authorized
2023
from 2024
$
1,850,000 $
1,110,000
1,500,000
1,200,000
750,000
750,000
1,270,000
$
1,270,000
$
3,060,000
$
1,270,000
105
$
418,503
15,000
Amount
Raised in
2024 Budget
$
1,110,000
1,200,000
750,000
$
3,060,000
EXHIBIT A-24
$
103,570
400,000
503,570
433,503
$
70,067
EXHIBIT A-25
$
970,418
$
970,418
EXHIBIT A-26
Balance,
December 3 1,
2024
$
1,270,000
$
1,270,000
EXHIBIT A-27
CITY OF RAHWAY
STATEMENT OF SPECIAL EMERGENCY NOTE PAYABLE
Date of
Balance
Balance
Original
Date of
Date of
Interest
December 3 1,
December 31,
Description
Issue
Issue
Maturity
Rate
2023
Increases
Decreases
2024
Terminal Pay
12/21/2023
12/21/2023
10/21/2024
5.00%
$
t200,000
$
1,200,000
106
EXHIBIT A-28
CITY OF RAHWAY
STATEMENT OF DUE FROM SPECIAL IMPROVEMENT DISTRICT
Balance, December 31, 2023
$
57,067
Increased by:
Special Improvement District Expenditures Paid by Current Fund
10,000
Balance, December 31, 2024
$
67,067
EXHIBIT A-29
STATEMENT OF RESERVE FOR MUNICIPAL RELIEF FUND AID
Balance, December 31, 2023
$
418,158
Decreased by:
Anticipated as Current Fund Budgeted Revenue
$
418,158
107
TRUST FUND
EXHIBIT B-1
CITY OF RAHWAY
TRUST FUNDS
STATEMENT OF CASH AND INVESTMENTS
Animal
Control
Community
Other Trust
Unemployment
Fund
Develogment
Fund
Insurance
Balance, December 3 I, 2023
$
28,237
$
518,572
$
5,040,064
$
35,321
Increased by Receipts:
Due State ofNew Jersey
850
Animal Control Licenses
3,772
Community Development Receipts
Grants Receivable
507,129
Deferred Loans Receivable
56,850
Program Income
27,475
Current Fund Budget Appropriation
Workers Compensation
40,000
Miscellaneous Deposits and Reserves
3,865,177
Payroll Deductions Payable
32,884,502
Reserve for Flex Spending
17,688
Receipts from Current Fund
841,777
Receipts from Other Trust Fund
53,323
Receipts from Sewer Utility Operating Fund
9,744
Unemployment Insurance Trust Fund Receipts Deposited in Other Trust Fund
43,247
Interest Earned
1,372
112,489
1,430
5,994
591,454
37,774,624
94,753
34,231
1,110,026
42,814,688
130,074
Decreased by Disbursements:
Reserve for:
Community Development Expenditures
Reserve for Expenditures
281,149
Encumbrances Payable
192,675
Miscellaneous Deposits and Reserves
3,767,628
Unemployment Claims
36,023
Workmen's Compensation Claims
26,808
Payroll Deductions Payable
32,702,066
Accrued Salaries & Wages
39,256
Other Liabilities
213,177
Reserve for Flex Spending
19,165
Due to State of New Jersey
692
Payments to Current Fund
19,379
1,073
Payments to General Capital Fund
382,017
Payments to Water Utility Operating Fund
911,024
Payments to Unemployment Insurance Trust Fund
---
53,323
20,071
855,841
J7,705,639
63,904
Balance, December 31, 2024
$
14,160
$
254,185
$
5,109,049
$
66,170
108
CITY OF RAHWAY
STATEMENT OF AMOUNT DUE TO STATE OF NEW JERSEY
ANIMAL CONTROL FUND
Balance, December 31, 2023
Increased by:
License Fees Collected
Decreased by:
Payments to State of New Jersey
Balance, December 31, 2024
EXHIBIT B-2
$
44
850
894
692
$
202
EXHIBIT B-3
STATEMENT OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
ANIMAL CONTROL FUND
Balance, December 31, 2023
Increased by:
Animal License Fees Collected
Decreased by:
Statutory Excess Due to Current Fund
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Interest Earned
Statutory Excess
Decreased by:
Payments to Current Fund
Balance, December 31, 2024
STATEMENT OF DUE TO CURRENT FUND
ANIMAL CONTROL FUND
109
$ 1,372
3,106
$
9,966
3,772
13,738
3,106
$
10,632
EXHIBIT B-4
$
18,227
$
4,478
19,379
$
3,326
EXHIBITB-5
CITY OF RAHWAY
STATEMENT OF COMMUNITY DEVELOPMENT BLOCK GRANTS RECEIVABLE
COMMUNITY DEVELOPMENT TRUST FUND
Balance,
2024
Balance,
December 31,
Grant
Cash
December 31,
2023
Awards
Receipts
2024
Program Year
2019 - Year 44
$
71
$
71
2020 - Year 45
6,041
6,041
2021 - Year 46
82,392
82,392
2022 - Year 47
5,208
5,208
2023 - Year 48
2,983
$
2,983
2024 - Year 49
759,750
504,146
255,604
2025 - Year 50
$
763,000
763,000
$
856,445
$
763,000
$
507,129
$
1,112,316
110
CITY OF RAHWAY
STATEMENT OF LOANS RECEIVABLE
COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 31, 2023
Balance, December 31, 2024
STATEMENT OF DEFERRED LOANS RECEIVABLE
COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 31, 2023
Increased by:
Loans Advanced
Decreased by:
Loan Repayments
Balance, December 31, 2024
STATEMENT OF ENCUMBRANCES PAYABLE
COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 31, 2023
Increased by:
Charged to Program Expenditures
Decreased by:
Payments
Balance, December 31, 2024
111
EXHIBITB-6
$
180,405
$
180,405
EXHIBITB-7
$
2,911,557
116,454
3,028,011
56,850
$
2,971,161
EXHIBIT B-8
$
228,368
117,950
346,318
192,675
$
153,643
Union County Projects:
2023 Projects (Year 48)
2024 Projects (Year 49)
2025 Projects (Year 50)
Program Income
CITY OF RAHWAY
STATEMENT OF RESERVE FOR COMMUNITY DEVELOPMENT EXPENDITURES
COMMUNITY DEVELOPMENT TRUST FUND
Balance,
2024
December 31,
Loan
Grants
2023
Recei12ts
Re12ayments
Authorized
Ex12enditures
$
2,983
650,965
$
272,425
$
763,000
126,674
110,684
$
27,475
$
56,850
-
$
764,632
$
27,475
$
56,850
$
763,000
$
399,099
Cash Expended
$
281,149
Due to General Capital Fund
Encumbrances Payable
117,950
$
399,099
112
EXHIBIT B-9
Balance,
December 31,
Transfer
2024
$
2,983
$
(183,562)
194,978
636,326
-
195,009
$
(183,562) $
1,029,296
$
183,562
$
183,562
CITY OF RAHWAY
STATEMENT OF RESERVE FOR WORKERS' COMPENSATION CLAIMS
UNEMPLOYMENT INSURANCE FUND
Balance, December 31, 2023
$
Increased by:
Interest Earnings
$
764
Current Fund Budget Appropriation
40,000
Decreased by:
Claims Paid
Balance, December 31, 2024
$
EXHIBIT B-10
14,892
40,764
55,656
26,808
28,848
EXHIBIT B-11
STATEMENT OF RESERVE FOR UNEMPLOYMENT COMPENSATION CLAIMS
UNEMPLOYMENT INSURANCE FUND
Balance, December 31, 2023
$
72,977
Increased by:
Employee Contributions Due from Other Trust Fund
43,247
116,224
Decreased by:
Unemployment Claims Due to State of New Jersey
72,994
Balance, December 31, 2024
$
43,230
113
Balance, December 31, 2023
Increased by:
Interest Earned
Decreased by:
Payments to Current Fund
Balance, December 31, 2024
CITY OF RAHWAY
STATEMENT OF DUE TO CURRENT FUND
UNEMPLOYMENT INSURANCE TRUST FUND
STATEMENT OF DUE TO STATE OF NEW JERSEY
UNEMPLOYMENT INSURANCE TRUST FUND
Increased by:
Unemployment Claims Due to State of New Jersey
Decreased by:
Payments to State of New Jersey
Balance, December 31, 2024
114
$
$
$
$
EXHIBIT B-12
775
666
1,441
1,073
368
EXHIBIT B-13
72,994
36,023
36,971
EXHIBIT B-14
CITY OF RAHWAY
STATEMENT OF MISCELLANEOUS DEPOSITS AND RESERVES
OTHER TRUST FUND
Balance,
Balance,
December 31,
December 31,
2023
Increases
Decreases
2024
State Fees - Building Department
$
209,595
$
114,795
$
99,383
$
225,007
County Red Light Camera Program
70,180
70,180
Street Opening Deposits
189,130
16,840
3,000
202,970
State Department of Human Services
9,751
6,434
7,679
8,506
Parking Offense Adjudication Act
40,365
3,224
43,589
Police Outside Employment
752,350
1,624,971
1,454,446
922,875
Professional Review Fees
1,003,192
91,338
209,465
885,065
Building Department Rezoning Deposits
4,054
4,054
Fire Safety Penalties
90,503
9,900
100,403
Elevator Inspections
167,161
47,669
46,640
168,190
Narcotics Investigation
8,144
1,868
5,605
4,407
Recreation Deposits
144,510
165,098
178,742
130,866
Public Defender
92,899
7,735
100,634
Tax Sale Premiums
1,558,052
948,200
937,131
1,569,121
Third Party Liens
867,064
827,105
830,152
864,017
Terminal Pay
86,982
86,982
Storm Recovery
186,150
186,150
Police Confiscated Money
11,339
11,339
Miscellaneous
3,644
3,644
Passaic Valley River Litigation
95,000
95,000
$
5,590,065
$
3,865,177
$
3,772,243
$
5,682,999
Cash Receipts
$
3,865,177
Cash Disbursements
$
3,767,628
Other Liabilities
4,615
$
3,772,243
115
Balance, December 31, 2023
Decreased by:
Interest Earnings
Receipts from Current Fund
Balance, December 31, 2024
CITY OF RAHWAY
STATEMENT OF DUE FROM CURRENT FUND
OTHER TRUST FUND
$
112,489
841,777
STATEMENT OF DUE TO WATER UTILITY OPERATING FUND
OTHER TRUST FUND
Balance, December 31, 2023
Decreased by:
Payments to Water Utility Operating Fund
Balance, December 31, 2023
Increased by:
STATEMENT OF OTHER LIABILITIES
OTHER TRUST FUND
Charges to Miscellaneous Reserves and Deposits
Decreased by:
Cash Disbursements
Balance, December 31, 2024
116
$
$
$
$
$
$
EXHIBIT B-15
2,001,879
954,266
1,047,613
EXHIBIT B-16
911,024
911,024
EXHIBIT B-17
256,621
4,615
261,236
213,177
48,059
CITY OF RAHWAY
STATEMENT OF RESERVE FOR PAYROLL DEDUCTIONS PAYABLE
OTHER TRUST FUND
Balance, December 31, 2023
Increased by:
Payroll Deposits
Decreased by:
Payroll Payments
Balance, December 31, 2024
Balance, December 31, 2023
Decreased by:
STATEMENT OF ACCRUED SALARIES AND WAGES
OTHER TRUST FUND
Accrued Salaries and Wages Paid (Net of Deposits)
Balance, December 31, 2024
· Balance, December 31, 2023
Increased by:
Cash Receipts
Decreased by:
Cash Disbursements
Balance, December 31, 2024
STATEMENT OF RESERVE FOR FLEX SPENDING
OTHER TRUST FUND
117
$
$
$
$
$
$
EXHIBIT B-18
41,492
32,884,502
32,925,994
32,702,066
223,928
EXHIBIT B-19
193,549
39,256
154,293
EXHIBIT B-20
5,613
17,688
23,301
19,165
4,136
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF DUE TO GENERAL CAPITAL FUND
COMMUNITY DEVELOPMENT TRUST FUND
CDBG Grant Proceeds Due to General Capital Fund
Decreased by:
Payments to General Capital Fund
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
STATEMENT OF DUE FROM OTHER TRUST FUND
UNEMPLOYMENT INSURANCE TRUST FUND
Unemployment Insurance Trust Fund Receipts Deposited in Other Trust Fund
Decreased by:
Payments
Balance, December 31, 2024
118
EXHIBIT B-21
$
382,017
183,562
565,579
382,017
$
183,562
EXHIBIT B-22
$
53,323
43,247
96,570
53,323
$
43,247
GENERAL CAPITAL FUND
CITY OF RAHWAY
STATEMENT OF GENERAL CAPITAL CASH - TREASURER
Balance, December 31, 2023
Increased by Receipts:
Interest Earned
Current Fund Budget Appropriation
Capital Improvement Fund
Receipts from CDBG Trust Fund
Bond Proceeds
Bond Anticipation Note Proceeds
Premium on Bond Anticipation Note
Decreased by Disbursements:
Improvement Authorizations
Contracts Payable
Bond Anticipation Notes
Payments to Current Fund
Payments to Water Utility Operating Fund
Payments to Parking Utility Operating Fund
Balance, December 31, 2024
119
$
366,744
500,000
382,017
12,000,000
1,947,000
671,582
5,043,955
2,969,344
10,747,000
2,082,388
382,285
64,969
EXHIBIT C-2
$
15,736,151
15,867,343
31,603,494
21,289,941
$
10,313,553
CITY OF RAHWAY
ANALYSIS OF GENERAL CAPITAL CASH
Fund Balance
Capital Improvement Fund
Grants Receivable
Due from Current Fund
Due from Water Operating Fund
Due from Parking Operating Fund
Contracts Payable
Reserve for Payment of Debt
Excess Note Proceeds
Ord. No.
26-17-xx-21
7-18
13-18
14-18
22-18
11-19
15-19
19-19
31-19/31-20
32-19
10-20/32-20/17-22
25-20
33-20
8-21
36-21
41-21
15-22
16-22
23-22
24-22
48-22
7-23
28-23
33-23
44-23
14-24
18-24
22-24
33-24
34-24
39-24
Description
Madden Field Improvements
2018 Road Improvements
Various Improvements
DPW, Recreation and Arts
Monroe Street Improvements
Acquisition of Fire Department Equipment
Central Business Redevelopment
Purchase of Buses for Senior Citizen Transportation
Various Capital Improvements
Acquisition of Property
Various Improvements to Brennan Field
Various 2020 Capital Acquisitions & Improvements
Purchase of Ambulance and 911 Command Center
Acquisition of Equipment, Vehicle and Fire Rescue Truck
Various Public Improvements and Acquisitions of Equipment
Replacement of HV AC Chiller Unit at City Hall
Reconstruction of Tennis Court Surfaces at Berzinec Park
2022 Road and Sidewalk Improvement Program
Various Public Improvements and Acquisitions of Equipment
Streetscape Improvements in Downtown Business District
Acquisition of New Ladder Fire Truck
Acquisition of Property
Acquisition of Property for Senior Housing
2023 Road and Sidewalk Improvement Program
Various Improvements and Acquisitions
Acquisition of Police Vehicles and Equipment
Various Capital Improvements
Acquisition of Fire Vehicles & Equipment/Computer Nenvork Upgrades
Acquisition of Ambulance
Acquisition of Fire Vehicles & Equipment
Various 2024 Capital Improvements
120
EXHIBIT C-3
Balance,
December 31,
2024
$
5,019,832
41,362
(600,000)
1,911,628
(382,285)
(64,969)
2,190,022
432,538
837,708
103,006
47,807
60,649
29,421
238,970
30,439
500,000
28,075
316,309
16,791
33,752
360,205
42,963
117,128
69,110
351
360,526
69,239
725,590
376,804
249,426
2,599,426
(2,635,838)
(79,454)
(1,044,726)
(362,696)
(1,106,403)
36,650
28,572
(354,615)
70,240
$ 10,313,553
CITY OF RAHWAY
STATEMENT OF DUE FROM/TO CURRENT FUND
Balance, December 31, 2023 (Due from)
Increased by:
General Capital Fund Grant Receipts Deposited in Current Fund
Payments to Current Fund
Decreased by:
Interest on Investments
Current Fund Anticipated Revenue
Fund Balance
Balance, December 31, 2024 (Due to)
$
431,728
2,082,388
366,744
4,060,000
EXHIBIT C-4
$
1,000
2,514,116
2,515,116
4,426,744
$
1,911,628
EXHIBIT C-5
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Balance, December 31, 2023
Increased by:
Serial Bonds Issued
Decreased by:
Current Fund Budget Appropriations:
Serial Bonds Principal Paydowns
Green Acres Loan Principal Paydowns
Balance, December 31, 2024
121
$
35,960,596
12,000,000
47,960,596
$
4,416,960
45,815
4,462,775
$
43,497,821
Ord. No.
32-19
10-20/32-20/17-22
12-20
18-20
25-20
33-20
40-20
4-21/47-21
8-21
36-21
41-21
15-22
16-22
23-22
24-22
48-22
7-23
28-23
33-23
44-23
14-24
18-24
22-24
33-24
34-24
39-24
CITY OF RAHWAY
STATEMENT OF DEFERRED CHARGES UNFUNDED
Balance
Serial
December 31,
2024
Grant
Bonds
Description
2023
Authorizations
Proceeds
Issued
Acquisition of Property
$
550,000
$
550,000
Various Improvements to Brennan Field
806,500
806,500
2020 Road Improvement Program
916,270
916,270
Improvements to Madden Field
800,000
800,000
Various 2020 Capital Acquisitions & Improvements
1,171,956
991,956
Purchase of Ambulance and 911 Command Center
714,000
714,000
Purchase and Installation of Outdoor Shelters
142,500
142,500
2021 Road and Sidewalk Improvement Program
2,759,302
2,759,302
Acquisition of Equipment, Vehicle and Fire Rescue Truck
665,000
665,000
Various Public Improvements and Acquisitions of Equipment
1,428,000
1,382,472
Replacement ofHV AC Chiller Unit at City Hall
380,000
380,000
Reconstruction ofTennis Court Surfaces at Berzinec Park
380,000
2022 Road and Sidewalk Improvement Program
2,052,000
2,052,000
Various Public Improvements and Acquisitions of Equipment
1,999,000
Streetscape Improvements in Downtown Business District
1,666,000
Acquisition of New Ladder Fire Truck
238,000
Acquisition of Property
2,470,000
Acquisition of Property for Senior Housing
2,660,000
2023 Road and Sidewalk Improvement Program
1,292,854
$
183,562
Various Improvements and Acquisitions
1,354,000
Acquisition of Police Vehicles and Equipment
$
499,998
Various Capital Improvements
5,238,095
Acquisition of Fire Vehicles & Equipment/Computer Network Upgrades
1,142,857
Acquisition of Ambulance
Acquisition of Fire Vehicles & Equipment
Various 2024 Capital Improvements
571,428
380,952
1,404,760
$
24,445,382
$ 9,238,090
Bond Sale Proceeds
Premium on Sale of Bonds
122
$
183,56£ $12,160,000
$12,000,000
160,000
$12,160,000
Analysis of Balance
Balance
Bond
December 31,
Anticipation
2024
Notes
Expended
$
180,000
$
45,528
380,000
$
380,000
1,999,000
1,999,000
1,666,000
1,666,000
238,000
238,000
2,470,000
2,470,000
2,660,000
$
2,635,838
1,109,292
1,109,292
1,354,000
1,044,726
499,998
362,696
5,238,095
1,106,403
1,142,857
571,428
380,952
354,615
1,404,760
$
21,339,2_10
$
7,862,292
$
5,504,278
$
Bond Anticipation Notes $
8,700,000
Less: Excess Proceeds
Ord. 33-23
(837,708)
$
7,862,292
Improvement Authorizations - Unfunded $
Less: Unexpended Note Proceeds
Ord. 15-22
360,526
Ord. 23-22
725,590
Ord. 24-22
376,804
Ord. 48-22
238,000
Ord. 7-23
2,470,000
Ord. 33-23
104,108
$
EXHIBITC-6
Unexpended
Improvement
Authorization
180,000
45,528
24,162
309,274
137,302
4,131,692
1,142,857
571,428
26,337
1,404,760
7,973,340
12,248,368
4~5,028
7~3,340
CITY OF RAHWAY
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2024 Authorizations
Balance,
Capital
Deferred
December 31 2023
Improvement
Charges -
Descrim.i.Qn
Ord. No.
Funded
Unfunded
Fund
Unfunded
Various Capital Improvements
9-13/38-13
$
239,565
Police Ballistic Equipment
10-13
9,677
DPW and Fire Equipment
37-13
56,631
2013 Road Improvements
44-13/12-14
80,853
Acquisition of Equipment
50-13
38,044
2014 Sidewalk Replacement Program
6-14
24,880
Rahway River Park Athletic Field Improvements
7-14
1,135,618
Various 2014 Capital Improvements
13-14
29,171
Contribution and/or Loan to the Rahway Redevelopment
Agency for the Purpose of Acquiring Real Property
26-14
750,000
2014 Road Reconstruction and Resurfacing Program
27-14
243,448
Asbestos Remediation of City Properties
30-14
6,453
Acquisition and Installation of Police Body Cameras
13-15
14,111
2015 Road Improvements
14-15
117,246
Various 2015 Improvements
19-15
61,990
Improvements to Crosswalk - East Milton and Lenox
27-15
62,136
Environmental Remediation of Various Properties
9-16
73,645
2016 Road Reconstruction and Resurfacing
18-16
25,940
Various 2016 Capital Improvements
30-16
383,075
Sidewalk Improvements
22-17
19,348
Madden Field Improvements
26-17/XX-21
132,631
2018 Road Improvements
7-18
49,246
Various Improvements
13-18
226,387
DPW, Recreation and Arts
14-18
30,123
Monroe Street Improvements
22-18
238,970
Fire Equipment
11-19
30,439
Central Business Redevelopment
15-19
500,000
Senior Busses
19-19
28,075
Various Capital Improvements
31-19/31-20
470,917
Acquisition of Property
32-19
$
16,791
Various Improvements to Brennan Field
I 0-20/32-20/17-22
33,752
Various 2020 Capital Acquisitions & Improvements
25-20
582,480
Purchase of Ambulance and 911 Command Center
33-20
42,963
Purchase and Installation of Outdoor Shelters
40-20
9,061
Acquisition of Equipment, Vehicle and Fire Rescue Truck
08-21
270
Various Public Improvements and Acquisitions of Equipment
36-21
324,417
Replacement of HV AC Chiller Unit at City Hall
41-21
351
Reconstruction of Tennis Court Surfaces at Berzinec Park
15-22
360,526
2022 Road and Sidewalk Improvement Program
16-22
35,212
Various Public Improvements and Acquisitions of Equipment
23-22
775,412
123
Cancelled
Authorizations
Expended
Contracts
Cancelled
$
239,565
9,677
56,631
80,853
38,044
24,880
1,135,618
29,171
750,000
243,448
6,453
14,111
117,246
$
2,777
59,213
62,136
73,645
25,940
383,075
19,348
29,625
1,439
165,738
702
154,608
42,275
9,061
$
I 16,858
209,779
34,027
49,822
$
Balance,
EXHIBITC-7
Page I
December 31 2024
Funded
Unfunded
103,006
47,807
60,649
29,421
238,970
30,439
500,000
28,075
316,309
16,791
33,752
360,205
$
180,000
42,963
117,128
69,110
45,528
351
360,526
69,239
725,590
CITY OF RAHWAY
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2024 Authorizations
Balance,
Capital
Deferred
December 3 I 2023
Improvement
Charges -
Descri.rui,Qn
Ord. No.
Funded
Unfunded
Fund
Unfunded
Expended
Streetscape Improvements in Downtown Business District
24-22
$
718,073
$
341,269
Acquisition ofNew Ladder Fire Truck
48-22
$
11,426
238,000
Acquisition of Property
7-23
129,426
2,470,000
Acquisition of Property for Senior Housing
28-23
2,642,711
2,618,549
2023 Road and Sidewalk Improvement Program
33-23
1,068,106
963,998
Various Improvements and Acquisitions
44-23
417,676
108,402
Acquisition of Police Vehicles and Equipment
14-24
$
25,002
$
499,998
387,698
Various Capital Improvements
18-24
261,905
5,238,095
1,368,308
Acquisition of Fire Vehicles & Equipment/Computer Network l
22-24
57,143
1,142,857
20,493
Acquisition of Ambulance
33-24
28,572
571,428
Acquisition of Fire Vehides & Equipment
34-24
19,048
380,952
373,663
Various 2024 Capital Improvements
39-24
70,240
1,404,760
$
5,219,471
$
9,735,801
$
461,910
$
9,238,090
$
6,848,206
Cash Disbursements
$
5,043,955
Contracts Payable
-~251
$
6,848,206
124
Cancelled
Authorizations
Contracts
Cancelled
$
-
$
150,885
$
3,369,054
$
Balance,
EXHIBITC-7
Page 2
December 3 I 2024
Funded
Unfunded
$
376,804
11,426
238,000
129,426
2,470,000
24,162
104,108
309,274
137,302
4,131,692
36,650
1,142,857
28,572
571,428
26,337
_
_Z0,240
1,404,760
2,340,529
$
12,248,368
Date of
Original
Purpose
Issue
Issue
2013 General Obligation Bonds
9/30/2013
7,425,000
2015 General Obligation Bonds
8/1/2015
$
9,460,000
2015 Refunding Bonds
8/28/2015
4,463,056
2016 General Obligation Bonds
8/4/2016
8,627,000
CITY OF RAHWAY
STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds
Outstanding
Balance,
December 31 2024
Interest
December 31,
Date
Amount
Rate
2023
9/15/2025
$
405,000
3.125
%
9/15/2026
420,000
3.375
9/15/2027
430,000
3.500
9/15/2028
440,000
3.750
9/15/2029
455,000
4.00
9/15/2030
475,000
4.00
9/15/2031
490,000
4.00
9/15/2032
515,000
4.00
$
4,025,000
8/1/2025
650,000
4.00
8/1/2026
680,000
3.00
8/1/2027
690,000
3.00
8/1/2028-2029
700,000
3.00
8/1/2030
700,000
3.125
8/1/2031
700,000
3.25
5,470,000
476,780
8/1/2025-2026
600,000
4.00
8/1/2027-2029
750,000
3.00
8/1/2030
755,000
3.00
8/1/2031
797,000
3.00
5,602,000
125
Increased
Decreased
EXHIBIT C-8
Page 1
Balance,
December 31,
2024
$
395,000
$
3,630,000
650,000
4,820,000
476,780
600,000
5,002,000
Date of
Original
Purpose
Issue
Issue
2016 Refunding Bonds
9/15/2016
$ 11,683,178
2019 General Obligation Bonds
7/15/2019
3,875,000
2020 General Obligation Bonds
7/15/2020
5,215,000
CITY OF RAHWAY
STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds
Outstanding
December 31 2024
Date
Amount
4/15/2025
$ 1,160,697
4/15/2026
1,131,731
4/15/2027
690,000
4/15/2028
685,000
4/15/2029
675,000
4/15/2030
670,000
7/15/2025
315,000
7/15/2026
335,000
7/15/2027
355,000
7/15/2028
375,000
7/15/2029
395,000
7/15/2030
415,000
7/15/2031
430,000
7/15/2025
515,000
7/15/2026
545,000
7/15/2027
575,000
7/15/2028
625,000
7/15/2029
645,000
7/15/2030
660,000
Interest
Rate
4.00
2.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
2.00
2.50
4.00
4.00
2.00
2.00
2.00
126
%
Balance,
December 31,
2023
$
6,182,608
2,910,000
4,050,000
Increased
Decreased
EXHIBIT C-8
Page2
Balance,
December 31,
2024
$
1,170,180
$
5,012,428
290,000
2,620,000
485,000
3,565,000
EXHIBIT C-8
Page3
CITY OF RAHWAY
STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds
Outstanding
Balance,
Balance,
Date of
Original
December 31 2024
Interest
December 31,
December 31,
Purpose
Issue
Issue
Date
Amount
Rate
2023
Increased
Decreased
2024
2022 General Obligation Bonds
7/15/2022
7,330,000
7/15/2025
$
350,000
4.00
%
7/15/2026
375,000
4.00
7/15/2027
375,000
4.00
7/15/2028
425,000
4.00
7/15/2029
425,000
4.00
7/15/2030
425,000
4.00
7/15/2031
475,000
4.00
7/15/2032
475,000
4.00
7/15/2033
475,000
4.00
7/15/2034
475,000
3.375
7/15/2035
475,000
3.50
7/15/2036
480,000
3.625
7/15/2037
500,000
4.00
7/15/2038
500,000
4.00
7/15/2039
500,000
4.00
$
7,080,000
$
350,000
$
6,730,000
2024 General Obligation Bonds
7/25/2024
12,000,000
7/15/2025
695,000
3.00
7/15/2026
785,000
3.00
7/15/2027
895,000
4.00
7/15/2028
930,000
4.00
7/15/2029
960,000
4.00
7/15/2030
995,000
4.00
7/15/2031
1,030,000
4.00
7/15/2032
1,065,000
4.00
7/15/2033
1,100,000
4.00
7/15/2034
1,140,000
4.00
7/15/2035
1,180,000
4.00
7/15/2036
1,225,000
4.00
$
12,000,000
12,000,000
35,796,388
12,000,000
4,416,960 __ ils3 79,428
Paid by Budget Appropriation
$
4,416,960
127
CITY OF RAHWAY
STATEMENT OF GRANTS RECEIVABLE
Balance,
Balance,
December 31,
December 31,
2023
2024
NJ Department of Transportation
Ord. 14-17 - 2017 Road Program
$
9,595
$
9,595
Ord. 5-19 - 2019 Road Improvements
43,759
43,759
NJ Department of Environmental Protection
Green Acres Program
Ord. 26-17 Madden Field Improvements
1,000,000
1,000,000
Ord. 18-20 Madden Field Improvements
400,000
400,000
Ord. :XX-21 Madden Field
500,000
500,000
County of Union
Ord. 3-14 - HS Park Improvements
75,950
75,950
Ord. 18-16 - 2016 Road Program
Ord 14-17 - 2017 Road Program
35,000
35,000
Recreation Trust
Ord. 17-07 - Madden Field Lighting
100,000
100,000
Ord. 3 5-09 - Madden Fieldhouse
100,000
100,000
$
2,264,304
$
2,264,304
128
EXHIBIT C-9
Pledged to:
Improvement
Reserve for
Authorization
Receivable
$
9,595
43,759
1,000,000
400,000
$
500,000
75,950
35,000
100,000
100,000
$
600,000
$
1,664,304
EXHIBIT C-10
CITY OF RAHWAY
STATEMENT OF BOND ANTICIPATION NOTES
Date of
Balance
Balance
Original
Date of
Date of
Interest
December 31,
December 31,
~ Improvement Description
~
~
Maturity
Rate
2023
Increases
Decreases
2024
32-19
Acquisition of Property
7/28/2021
7/27/2023
7/26/2024
5.00%
$
510,000
$
510,000
12-20
2020 Road Improvement Program
7/28/2021
7/27/2023
7/26/2024
5.00%
916,270
916,270
18-20
Improvements to Madden Field
7/28/2021
7/27/2023
7/26/2024
5.00%
300,000
300,000
25-20
Various 2020 Capital Acquisitions & Improvements
7/28/2021
7/27/2023
7/26/2024
5.00%
1,171,956
1,171,956
33-20
Purchase of Ambulance and 911 Command Center
7/28/2021
7/27/2023
7/26/2024
5.00%
710,000
710,000
40-20
Purchase and Installation of Outdoor Shelters
7/28/2021
7/27/2023
7/26/2024
5.00%
120,000
120,000
4-21/47-21
2021 Road and Sidewalk Improvement Program
7/28/2022
7/27/2023
7/26/2024
5.00%
2,023,044
2,023,044
7/27/2023
7/27/2023
7/26/2024
5.00%
192,730
192,730
8-21
Acquisition of Equipment, Vehicle and Fire Rescue Truck
7/28/2021
7/27/2023
7/26/2024
5.00%
442,000
442,000
7/28/2022
7/27/2023
7/26/2024
5.00%
223,000
223,000
36-21
Acquisition of Vehicles and Equipment
7/27/2023
7/27/2023
7/26/2024
5.00%
1,428,000
1,428,000
41.21
Replacement ofHV AC at City Hall
7/27/2023
7/27/2023
7/26/2024
5.00%
380,000
380,000
15-22
Tennis Court Improvements
7/27/2023
7/25/2024
7/24/2025
4.50%
$
380,000
$
380,000
7/27/2023
7/26/2024
5.00%
380,000
380,000
16-22
2022 Roads and Sidewalk Program
7/27/2023
7/27/2023
7/26/2024
5.00%
2,330,000
2,330,000
23-22
Various Improvements and Acquisitions
7/27/2023
7/25/2024
7/24/2025
4.50%
1,999,000
1,999,000
7/27/2023
7/26/2024
5.00%
1,999,000
1,999,000
24-22
Acquisition of Fire Truck and Headquarters Improvements
7/27/2023
7/25/2024
7/24/2025
4.50%
1,666,000
1,666,000
7/27/2023
7/26/2024
5.00%
1,666,000
1,666,000
48-22
Steetscape Improvements
7/27/2023
7/25/2024
7/24/2025
4.50%
238,000
238,000
7/27/2023
7/26/2024
5.00%
238,000
238,000
7-23
Acquisition of Property
7/27/2023
7/25/2024
7/24/2025
4.50%
2,470,000
2,470,000
7/27/2023
7/26/2024
5.00%
2,470,000
2,470,000
33-23
2023 Road and Sidwalk Improvement Program
7/25/2024
7/25/2024
7/24/2025
4.50%
1 947 000
1 947,000
17,500,000
$
8,700,000
$
17,500,000
$
8,700,000
Renewals
$
6,753,000
$
6,753,000
Issued for Cash
1,947,000
Paid with Bond Sale Proceeds
10,243,472
Paid with Capital Cash
225,528
Paid with Excess Proceeds
278,000
$
8,700,000
$
17,500,000
129
CITY OF RAHWAY
STATEMENT OF LOANS PAYABLE
Balance, December 31, 2023
Decreased by:
Principal Paid by Budget Appropriation
Balance, December 31, 2024
STATEMENT OF CAPITAL IMPROVEMENT FUND
Balance, December 31, 2023
Increased by:
Current Fund Budget Appropriation
Decreased by:
Appropriated to Finance Improvement Authorizations
Balance, December 31, 2024
130
EXHIBIT C-11
$
164,208
45,815
$
118,393
EXHIBIT C-12
$
3,272
500,000
503,272
461,910
$
41,362
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF CONTRACTS PAYABLE
Charged to Improvement Authorizations
Decreased by:
Cash Disbursements
Cancelled and Restored to Improvement Authorizations
Balance, December 31, 2024
STATEMENT OF RESERVE FOR PAYMENT OF DEBT
Balance, December 31, 2023
Increased by:
Grant Proceeds on Funded Improvement Authorizations - Due from Current Fund
Balance, December 31, 2024
131
$
2,969,344
150,885
EXHIBIT C-13
$ 3,506,000
1,804,251
5,310,251
3,120,229
$ 2,190,022
EXHIBIT C-14
$
810
431,728
$
432,538
CITY OF RAHWAY
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Ord.
No.
25-20
Improvement Description
Various 2020 Capital Acquisitions & Improvements
32-19
Acquisition of Property
10-20/32-20 / 17-22
Various Improvements to Brennan Field
18-20
33-20
40-20
4-21/47-21
36-21
28-23
33-23
44-23
14-24
18-24
22-24
33-24
34-24
39-24
Improvements to Madden Field
Purchase of Ambulance and 911 Command Center
Purchase and Installation of Outdoor Shelters
2021 Road and Sidewalk Improvement Program
Various Public Improvements and Acquisitions of Equipment
Acquisition of Property for Senior Housing
2023 Road and Sidewalk Improvement Program
Various Improvements and Acquisitions
Acquisition of Police Vehicles and Equipment
Various Capital Improvements
Acquisition of Fire Vehicles & Equipment/Computer Network Upgrades
Acquisition of Ambulance
Acquisition of Fire Vehicles & Equipment
Various 2024 Capital Improvements
Balance,
December 31,
2024
$
2023
Authorizations
40,000
806,500
500,000
4,000
22,500
543,528
2,660,000
1,292,854
1,354,000
$
499,998
5,238,095
1,142,857
571,428
380,952
1,404,760
$
N ates Issued
for Cash
1,292,854
$
Bond Sale
Proceeds
40,000
806,500
500,000
4,000
22,500
543,528
Notes Paid
with Capital
Cash
$
180,000
45,528
EXHIBIT C-15
Balance,
December 31,
2024
$
180,000
45,528
2,660,000
1,354,000
499,998
5,238,095
1,142,857
571,428
380,952
1,404,760
$
7,223,382
$
9,238,090
$
1,292,8~~ $
1,916,528
$
225,528
$
13,477,618
132
WATER UTILITY FUND
EXHIBITD-5
CITY OF RAHWAY
WATER UTILITY CASH
STATEMENT OF CASH - COLLECTOR/TREASURER
Operating
Capital
Balance, December 31, 2023
$
510,886
$
574,913
Increased by Receipts:
Consumer Accounts Receivable
$ 11,271,148
Water Connection Fees
47,548
Interest on Investments
255,912
$
62,540
Water Rent Overpayments
123,051
Bond Anticipation Notes
3,375,000
Premium on Notes
93,126
Receipts from Current Fund
5,018,914
Receipts from Other Trust Fund
911,024
Receipts from General Capital Fund
382,285
Receipts from Sewer Operating Fund
802,632
Receipts from Water Utility Operating Fund
662,341
18,812,514
4,193,007
19,323,400
4,767,920
Decreased by Disbursements:
2024 Budget Appropriations
7,920,529
2023 Appropriation Reserves
2,646,740
Accounts Payable and Other Liabilities
209,858
Contracts Payable
301,944
Improvement Authorizations
877,750
Bond Anticipation Notes
490,602
Accrued Interest on Bonds and Notes
344,064
Water Rent Overpayments
189,908
Payments to Water Utility Capital Fund
662,341
Payments to Sewer Utility Capital Fund
534,044
Reserve for Future Capital Improvements
1,005,021
12,507,484
2,675,317
Balance, December 31, 2024
$
6,815,916
$ 2,092,603
133
Fund Balance
CITY OF RAHWAY
WATER UTILITY CAPITAL FUND
ANALYSIS OF CASH
Capital Improvement Fund
Reserve for Future Capital Improvements
Due from Water Utility Operating Fund
Contracts Payable
Loans Receivable
Improvement Authorizations
Ord. No.
2-15/14-16
15-18
16-20
27-20
34-21
25-22
34-23
35-23
47-23
Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline
Various Improvements to Water Treatment Plant
Upgrade of Granular Activated Carbon Filter System
Various 2020 Acquisitions and Improvements
Various Improvements
Lead Water Service Pipe Replacement Project
Lead Water Service Pipe Replacement Project
Replacement of Water Mains
Replacement of Water Meters
134
EXHIBITD-6
Balance,
December 31,
2024
$ 1,421,000
106,472
703,152
66,635
653,200
(397,438)
(2,250,003)
398,852
395,437
9,426
21,461
290
34,193
430,371
499,555
$ 2,092,603
Balance, December 31, 2023
Balance, December 31, 2024
Balance, December 31, 2023
Balance, December 31, 2024
Account
CITY OF RAHWAY
STATEMENT OF CHANGE FUND
WATER UTILITY OPERATING FUND
STATEMENT OF LOANS RECEIVABLE
WATER UTILITY CAPITAL FUND
STATEMENT OF FIXED CAPITAL
WATER UTILITY CAPITAL FUND
Increased by:
Transferred from
Balance,
Fixed Capital
December 31
Authorized and
2023
Uncompleted
Filtration Plant Improvements/Upgrades
$37,234,672
$
34,901
Wells and Distribution System
10,725,791
General Equipment
573,836
Various Water System Improvements
7,544,791
239,919
Land
25,000
$56,104,090
$
274,820
135
EXHIBIT D-7
$
200
$
200
EXHIBIT D-8
$
397,438
$
397,438
EXHIBIT D-9
Balance,
December 31
2024
$ 37,269,573
10,725,791
573,836
7,784,710
25,000
$ 56,378,910
Ord.
No.
Improvement Description
30-12/23-13 Replacement of Hamilton St. Water Main
28-14
Various 2014 Water Utility Capital Improvements
2-15
Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline
10-15
Various 2015 Water Utility Improvements
28-16
Various Improvements to Water Treatment Plant
12-17
Water Main Improvements
15-18
Various Improvements to Water Treatment Plant
13-20
Various Improvements to Water Storage Tanks
16-20
GAC Filtration System
27-20
Various Acquisitions
34-21
Water Utility Repairs and Improvements
25-22
Lead Water Service Pipe Replacement Project
34-23
Lead Water Service Pipe Replacement Project
35-23
Replacement of Water Mains
46-23
Water Filtration System Upgrades
47-23
Replacement of Water Meters
17-24
Various Water Improvements
CITY OF RAHWAY
STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
WATER UTILITY CAPITAL FUND
Balance,
Increased by:
Ordinance
December 31
2024
Date
Amount
2023
Authorizations
2012
$
1,375,000
$
190,893
2014
300,000
114,306
2015
19,785,000
3,581,972
2015
925,000
212,015
2016
400,000
160,064
2017
800,000
45,119
2018
400,000
400,000
2020
525,000
525,000
2020
2,500,000
2,500,000
2020
750,000
750,000
2021
1,675,000
1,675,000
2022
775,000
775,000
2023
950,000
950,000
2023
950,000
950,000
2023
975,000
975,000
2023
500,000
500,000
2024
3,600,000
$
3 600 000
$
14,304,369
$
3,600,000
136
EXHIBIT D-10
Decreased by:
Balance,
Transferred to
Authorizations
December 31
Fixed Capital
Cancelled
2024
$
15,580
$
175,313
19,385
94,921
34,901
3,547,071
202,789
9,226
160,064
2,165
42,954
$
400,000
525,000
2,500,000
750,000
1,675,000
775,000
950,000
950,000
975,000
500,000
3,600,000
$
274,820
$
4,029,549
$
13,600,000
Balance, December 31, 2023
Increased by:
Water Rents Levied
Decreased by:
Collections
Balance, December 31, 2024
CITY OF RAHWAY
STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE
WATER UTILITY OPERATING FUND
137
EXHIBIT D-11
$ 1,576,305
11,606,429
13,182,734
11,271,148
$ 1,911,586
CITY OF RAHWAY
STATEMENT OF 2023 APPROPRIATION RESERVES
WATER UTILITY OPERA TING FUND
Balance
December 3 1,
2023
Adjusted
Encumbrances
Balance
Operating
Management Fee
Other Expenses
$
17
$
395,873
$ 395,890
$
Public and Private Programs
UCLSG-Water Infrastructure Grant
$
11,736
125,112
136,848
230,338
2,769,662
3,000,000
242,091
$
3,290,647
$3,532,738
$
Cash Disbursements
$
Accounts Payable
$
138
EXHIBIT D-12
Paid or
Charged
395,873
$
133,575
3,000,000
3,529,448
$
2,646,740
882,708
3,529,448
Balance
Lapsed
17
3,273
3,290
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF ENCUMBRANCES PAYABLE
WATER UTILITY OPERA TING FUND
Charged to 2024 Budget Appropriations
Decreased by:
Restored to Appropriation Reserves
Balance, December 31, 2024
STATEMENT OF ACCOUNTS PAYABLE AND OTHER LIABILITIES
Balance, December 31, 2023
Increased by:
Transferred from Appropriation Reserves
Decreased by:
Cash Disbursements
Balance, December 31, 2024
STATEMENT OF DUE FROM/TO WATER UTILITY CAPITAL FUND
WATER UTILITY OPERATING FUND
Balance, December 31, 2023 (Due to)
Decreased by:
Interest Earned - Water Utility Capital Fund
Payments to Water Utility Capital Fund
Balance, December 31, 2024 (Due from)
$
139
62,540
662,341
EXHIBIT D-13
$ 3,290,647
751,315
4,041,962
3,290,647
$
751,315
EXHIBIT D-14
$
209,854
882,708
1,092,562
209,858
$
882,704
EXHIBIT D-15
$
658,246
724,881
$
66,635
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF DUE FROM CURRENT FUND
WATER UTILITY OPERATING FUND
Water Utility Operating Fund Grant Proceeds Deposited in Current Fund
Decreased by:
Anticipated as Current Fund Budgeted Revenue
Current Year Operating Surplus
Operating Surplus of Prior Year
Receipts from Current Fund
Balance, December 31, 2024
$
913,933
1,295,000
5,018,914
STATEMENT OF RESERVE FOR FUTURE CAPITAL IMPROVEMENTS
WATER UTILITY CAPITAL FUND
Balance, December 31, 2023
Decreased by:
Cash Disbursements
Balance, December 31, 2024
140
EXHIBIT D-16
$ 6,565,690
2,250,000
8,815,690
$ 7,227,847
$ 1,587,843
EXHIBIT D-17
$ 1,708,173
1,005,021
$
703,152
EXHIBIT D-18
CITY OF RAHWAY
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
WATER UTILITY CAPITAL FUND
Balance,
Balance
Ordinance
December 31 2023
2024
Paid or
Authorizations
December 31 2024
Number
Improvement Description
Amount
Funded
Unfunded
Authorizations
Charged
Cancelled
Funded
Unfunded
30-12/23-13 Replacement of Hamilton St. Water Main
$
1,375,000
$
116,754
$
58,559
$
175,313
28-14
Various 2014 Water Utility Capital Improvements
300,000
94,921
94,921
2-15/14-16
Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline
19,785,000
3,547,071
3,547,071
10-15
Various 2015 Water Utility Improvements
925,000
9,226
9,226
28-16
Various Improvements to Water Treatment Plant
400,000
160,064
160,064
12-17
Water Main Improvements
800,000
42,954
42,954
15-18
Various Improvements to Water Treatment Plant
400,000
19,933
378,919
$
19,933
$
378,919
13-20
Various Improvements to Water Storage Tanks
525,000
490,602
490,602
16-20
Upgrade of Granular Activated Carbon Filter System
2,500,000
398,673
$
3,236
395,437
27-20
Various 2020 Acquisitions and Improvements
750,000
9,426
9,426
34-21
Various Improvements
1,675,000
23,853
2,392
21,461
25-22
Lead Water Service Pipe Replacement Project
775,000
290
290
34-23
Lead Water Service Pipe Replacement Project
950,000
278,307
244,114
34,193
35-23
Replacement of Water Mains
950,000
539,134
108,763
430,371
46-23
Water Filtration System Upgrades
975,000
975,000
975,000
47-23
Replacement of Water Meters
500,000
500,000
445
499,555
17-24
Meter Mains Lead
$
3,600,000
3,600,000
$
443,852
$
7,199,834
$
3,600,000
$
1,333,950
$ 4,029,549
$
19,933
$
5,860,254
Cash Disbursements
$
877,750
Contracts Payable
456,200
$
1,333,950
Water Utility Capital Fund Balance $
423,919
Debt Authorized but Not Issued ~63
0
$ 4,029,549
141
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF CONTRACTS PAYABLE
WATER UTILITY CAPITAL FUND
Charges to Improvement Authorizations
Decreased by:
Cash Disbursements
Balance, December 31, 2024
STATEMENT OF RESERVE FOR AMORTIZATION
WATER UTILITY CAPITAL FUND
Balance, December 31, 2023
Increased by:
Serial Bonds Paid by Operating Budget
$
415,000
NJ EIT Loans Paid by Operating Budget
637,898
Bond Anticipation Notes Paid by Budget Appropriation
306,398
Decreased by:
Funded Authorizations Cancelled to Fund Balance
Balance, December 31, 2024
STATEMENT OF RESERVE FOR DEFERRED AMORTIZATION
WATER UTILITY CAPITAL FUND
Balance, December 31, 2023
Balance, December 31, 2024
142
$
$
$
$
$
$
EXHIBIT D-19
498,944
456,200
955,144
301,944
653,200
EXHIBIT D-20
34,231,267
1,359,296
35,590,563
423,919
35,166,644
EXHIBIT D-21
304,208
304,208
Date of
Purpose
Issue
2018 General Obligation Bonds
6/15/2018
2019 General Obligation Bonds
7/31/2019
CITY OF RAHWAY
STATEMENT OF WATER SERIAL BONDS
WATER UTILITY CAPITAL FUND
Maturities of Bonds
Outstanding
Original
December 31, 2024
Interest
Issue
Date
Amount
Rate
4,714,000
6/15/2025
$
185,000
5.00%
6/15/2026
275,000
2.500%
6/15/2027
275,000
2.625%
6/15/2028-2031
275,000
3.000%
6/15/2032
280,000
3.000%
6/15/2033-2034
280,000
3.125%
6/15/2035-2037
280,000
3.250%
6/25/2038
279,000
3.375%
3,900,000
7/15/2025
240,000
4.00%
7/15/2026
165,000
4.00%
7/15/2027
170,000
4.00%
7/15/2028
175,000
4.00%
7/15/2029
180,000
4.00%
7/15/2030
185,000
4.00%
7/15/2031
190,000
2.00%
7/15/2032
195,000
3.00%
7/15/2033
200,000
2.50%
7/15/2034
205,000
2.50%
7/15/2035
210,000
2.50%
7/15/2036
220,000
3.00%
7/15/2037
240,000
3.00%
7/15/2038
245,000
3.00%
7/15/2039
250,000
3.00%
Balance,
December 31
2023
$
3,964,000
3,315,000
$
7,279,000
Paid by Budget Appropriation
143
EXHIBIT D-22
Balance,
December 31
Decreased
2024
$
170,000
$
3,794,000
245,000
3,070,000
$
415,000
$
6,864,000
$
415,000
EXHIBIT D-23
CITY OF RAHWAY
WATER UTILITY CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES
Date of
Balance
Balance
Original
Date of
Date of
Interest
December 31
December 31
Ord. No.
Improvement Description
Issue
Issue
Maturity
Rate
2023
Increased
Decreased
2024
15-18
Various Improvements to Water Treatment Plant
7/29/2020
7/25/2024
7/24/2025
4.50%
$
315,766
$
315,766
7/27/2023
7/26/2024
5.00%
$
378,919
$
378,919
06-19
Various Acquisitions and Improvements
7/29/2020
7/25/2024
7/24/2025
4.50%
490,067
490,067
7/27/2023
7/26/2024
5.00%
588,081
588,081
11-20
Various Acquisitions and Improvements
7/28/2021
7/25/2024
7/24/2025
4.50%
395,833
395,833
7/27/2023
7/26/2024
5.00%
475,000
475,000
16-20
Upgrade of Granular Activated Carbon Filter System
7/28/2021
7/25/2024
7/24/2025
4.50%
2,479,487
2,479,487
7/27/2023
7/26/2024
5.00%
2,500,000
2,500,000
27-20
Various 2020 Acquisitions and Improvements
7/28/2021
7/25/2024
7/24/2025
4.50%
738,847
738,847
7/27/2023
7/26/2024
5.00%
750,000
750,000
13-20
Improvements to Water Storage Plants
7/28/2022
7/27/2023
7/26/2024
5.00%
525,000
525,000
34-21
Various Acquisitions and Improvements
7/28/2022
7/25/2024
7/24/2025
4.50%
1,675,000
1,675,000
7/27/2023
7/26/2024
5.00%
1,675,000
1,675,000
25-22
Lead Water Service Pipe Replacement Project
7/27/2023
7/25/2024
7/24/2025
4.50%
775,000
775,000
7/27/2023
7/26/2024
5.00%
775,000
775,000
34-23
Lead Water Service Pipe Replacement Project
7/25/2024
7/25/2024
7/24/2025
4.50%
950,000
950,000
35-23
Replacement of Water Mains
7/25/2024
7/25/2024
7/24/2025
4.50%
950,000
950,000
46-23
Water Filtration System Upgrades
7/25/2024
7/25/2024
7/24/2025
4.50%
975,000
975,000
47-23
Replacement of Water Meters
7/25/2024
7/25/2024
7/24/2025
4.50%
_ ______iQ_Q, 000
------
500,000
$
7,667,000
$
10,245,000
$
7,667,000 L.JQ.245,000
Renewals
$
6,870,000
$
6,870,000
Issued for Cash
3,375,000
Paid with Capital Cash
490,602
Budget Appropriation
30§_,_398
$
10,245,000 L,2667,000
144
CITY OF RAHWAY
STATEMENT OF NJ EIT LOANS PAYABLE
WATER UTILITY CAPITAL FUND
2017
2018
Loan
EXHIBIT D-24
Total
Balance, December 31, 2023
$ 1,676,069
$ 10,020,282
$
11,696,351
Decreased by:
Principal Paid by Budget Appropriation
123,160
514,738
637,898
Balance, December 31, 2024
$ 1,552,909
$ 9,505,544
$
11,058,453
STATEMENT OF CAPITAL IMPROVEMENT FUND
WATER UTILITY CAPITAL FUND
Balance, December 31, 2023
Balance, December 31, 2024
$
$
EXHIBIT D-25
106,472
106,472
EXHIBIT D-26
STATEMENT OF ACCRUED INTEREST PAYABLE ON BONDS, NOTES AND LOANS
WATER UTILITY OPERATING FUND
Balance, December 31, 2023
Increased by:
Budget Appropriations
Interest on Bonds
Decreased by:
Interest Paid
Balance, December 31, 2024
Balance, December 31, 2023
Decreased by:
Due from Current Fund
Balance, December 31, 2024
STATEMENT OF GRANTS RECEIVABLE
WATER UTILITY OPERATING FUND
145
$
182,234
338,988
521,222
344,064
$
177,158
EXHIBIT D-27
$
3,000,000
2,250,000
$
750,000
CITY OF RAHWAY
STATEMENT OF DEFERRED CHARGES
WATER UTILITY OPERATING FUND
Balance,
December 31,
Resulting
2023
from 2024
Overexpenditure of Appropriations
$
27,940
Overexpenditure of Appropriation Reserves
$
26,669
$
Balance, December 31, 2023
Increased by:
Overpayments Received
Decreased by:
Cash Disbursements
Balance, December 31, 2024
$
26,669
$
27,940
$
STATEMENT OF WATER RENT OVERPAYMENTS
WATER UTILITY OPERATING FUND
2024
Budget
26,669
26,669
STATEMENT OF DUE FROM SEWER UTILITY CAPITAL FUND
WATER UTILITY OPERATING FUND
Increased by:
Payments to Sewer Utility Capital Fund
Balance, December 31, 2024
Increased by:
STATEMENT OF DUE TO GENERAL CAPITAL FUND
WATER UTILITY OPERATING FUND
Receipts from General Capital Fund
Balance, December 31, 2024
146
EXHIBIT D-28
Total
$
27,940
$
27,940
EXHIBIT D-29
$
189,908
123,051
312,959
189,908
$
123,051
EXHIBIT D-30
$
534,044
$
534,044
EXHIBIT D-31
$
382,285
$
382,285
EXHIBIT D-32
CITY OF RAHWAY
WATER UTILITY CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance,
Balance,
Ordinance
December 31,
2024
Notes Issued
Notes Paid
Cancelled
December 31,
Number
Improvement Description
2023
Authorizations
for Cash
with Capital Cash
Authorizations
2024
30-12/23-13
Replacement of Water Main on Hamilton St.
$
58,559
$
58,559
2-15/4-16
Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline
5,797,074
3,547,071
$
2,250,003
13-20
Various Improvements to Water Storage Tanks
$
490,602
490,602
34-23
Lead Water Service Pipe Replacement Project
950,000
$
950,000
35-23
Replacement of Water Mains
950,000
950,000
46-23
Water Filtration System Upgrades
975,000
975,000
47-23
Replacement of Water Meters
500,000
500,000
17-24
Various Water Improvements
$
3,600,000
3,600,000
$
9,230,633
$
3,600,000
$ 3,375,000
$
490,602
$
3,605,630
$
6,340,605
147
SEWER UTILITY FUND
EXHIBITE-5
CITY OF RAHWAY
SEWER UTILITY CASH
STATEMENT OF CASH - COLLECTOR/TREASURER
Operating
Capital
Balance, December 31, 2023
$
652,318
$ 1,668,348
Increased by Receipts:
Consumer Accounts Receivable
$
6,987,094
Industrial Sewer Flow Charges
208,212
Sewer Connection Fees
27,219
Nonbudget Revenue
18,980
Interest Earned
23,669
$
97,982
Receipts from Parking Operating Fund
1,097,000
Receipts from Water Utility Operating Fund
534,044
Receipts from Sewer Utility Capital Fund
670,523
Bond Anticipation Notes
3,535,000
Premium on Bonds
32,138
9,032,697
4,199,164
9,685,015
5,867,512
Decreased by Disbursements:
2024 Budget Appropriations
6,666,972
Improvement Authorizations
363,459
Contracts Payable
40,406
Accrued Interest on Bonds and Loans
134,154
Payments to Current Fund
160,640
Payments to Other Trust Fund
9,744
Payments to Water Utility Operating Fund
802,632
Payments to Sewer Utility Operating Fund
670,523
7,774,142
1,074,388
Balance, December 31, 2024
$
1,910,873
$ 4,793,124
148
Fund Balance
CITY OF RAHWAY
SEWER UTILITY CAPITAL FUND
ANALYSIS OF CASH
Capital Improvement Fund
Contracts Payable
Due to Water Utility Operating Fund
Due to Sewer Utility Operating Fund
Improvement Authorizations
Ord. No.
6-16/28-20
19-16/29-20
16-18
20-19/30-20
24-20
26-22
45-23
Inflow and Infiltration Project (Phase III)
Improvements to Witherspoon St Outfall and Monroe St Sewer Lines
Various Sewer Improvements
Repair of Sink Holes
Various Capital Improvements and Equipment
Various Sewer Improvements
Various Sewer Improvements
149
EXHIBITE-6
Balance,
December 31,
2024
$
819,152
374,500
546,630
534,044
(511,854)
45,474
80,457
394,882
(172,940)
309,888
158,481
2,214,410
$
4,793,124
CITY OF RAHWAY
STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE
SEWER UTILITY OPERATING FUND
Balance, December 31, 2023
Increased by:
Sewer Rents Levied
Decreased by:
Rents Received
Balance, December 31, 2024
150
EXHIBITE-7
$
663,058
7,098,468
7,761,526
6,987,094
$
774,432
Account
Various Sewer System Improvements
CITY OF RAHWAY
STATEMENT OF FIXED CAPITAL
SEWER UTILITY CAPITAL FUND
Increased by:
Transfers from
Balance,
Fixed Capital
December 3 1,
Authorized and
2023
Uncompleted
$
4,505,428
$
925,993
$
4,505,428
$
925,993
151
EXHIBITE-8
Decreased by:
Balance,
Authorizations
December 3 1,
Cancelled
2024
$
124,995
$
5,306,426
$
124,995
$
5,306,426
EXHIBITE-9
CITY OF RAHWAY
STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
SEWER UTILITY CAPITAL FUND
Balance,
Increased by:
Decreased by:
Balance,
Ord.
Ordinance
December 31,
2024
Transfers to
Authorizations
December 31,
No.
Improvement Description
Date
Amount
2023
Authorizations
Fixed Capital
Cancelled
2024
34-12
Improvements to Donald Avenue Storm Sewer
2012
$
140,000
$
140,000
$
127,972
$
12,028
36-13/25-14
Emergency Sinkhole Repair
2013
300,000
500,000
500,000
29-14
Improvement of the Storm Sewer on Kline Place
2014
350,000
350,000
189,782
160,218
6-16/28-20
Inflow and Infiltration Project (Phase III)
2016
425,000
525,000
$
525,000
19-16/29-20
Improvements to Witherspoon St Outfall and Monroe St Sewer Lines
2016
325,000
845,000
845,000
23-17
Kline/Madison Sewer Improvements
2017
200,000
200,000
108,239
91,761
16-18
Various Sewer Utility Improvements
2018
798,000
798,000
798,000
20-19/30-20
Repair of Sink Holes
2019
500,000
700,000
700,000
24-20
Various Capital Improvements and Equipment
2020
350,000
350,000
350,000
35-21
Various Sewer Improvements
2021
1,150,000
1,150,000
1,150,000
26-22
Various Sewer Improvements
2022
850,000
850,000
850,000
45-23
Various Sewer Improvements
2023
2,685,000
2,685,000
2,685,000
16-24
Various Sewer Improvements
2024
1,700,000
$
1,700,000
1,700,000
$
9,093,000
$
1,700,000
$
925,993
_$ ~-264,007
$
9,603,000
152
CITY OF RAHWAY
STATEMENT OF DUE TO CURRENT FUND
SEWER UTILITY OPERATING FUND
Balance, December 31, 2023
Increased by:
Sewer Utility Operating Fund Expenditures
Paid by Current Fund
Decreased by:
Payments to Current Fund
Balance, December 31, 2024
STATEMENT OF DUE FROM WATER UTILITY OPERATING FUND
SEWER UTILITY OPERATING FUND
Balance, December 31, 2023
Increased by:
Payments to Water Utility Operating Fund
Balance, December 31, 2024
STATEMENT OF DUE FROM/TO SEWER UTILITY OPERATING FUND
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2023 (Due to)
Increased by:
Interest Earned
Decreased by:
Payments to Sewer Utility Operating Fund
Balance, December 31, 2024 (Due from)
153
EXHIBIT E-10
$
86,438
368,021
454,459
160,640
$
293,819
EXHIBIT E-11
$
406,863
802,632
$
1,209,495
EXHIBIT E-12
$
60,687
97,982
158,669
670,523
$
511,854
EXHIBIT E-13
CITY OF RAHWAY
STATEMENT OF 2023 APPROPRIATION RESERVES
SEWER UTILITY OPERATING FUND
Balance
Balance
Paid
December 31,
Cancelled
After
or
Balance
2023
Encumbrances
Transfers
Charged
Lapsed
Operating
Salaries and Wages
$
3,718
$
3,718
$
3,718
Other Expenses
107,840
107,840
107,840
Sewer Treatment Expense
Rahway Valley Sewer Authority
34,547
34,547
34,547
Sewer Permit Fees
8,979
8,979
8,979
Statutory Expenditures
Social Security system (O.A.S.I.)
479
479
479
$
155,563
$
$ 155,563
$
$
155,563
154
Purpose
2015 Refunding Bonds
2016 Refunding Bonds
2019 General Obligation Bonds
2022 Sewer Bonds
Date of
Issue
8/28/2015
9/15/2016
7/15/2019
7/15/2022
CITY OF RAHWAY
STATEMENT OF GENERAL SERIAL BONDS
SEWER UTILITY CAP IT AL FUND
Original
Issue
76,944
Maturities of Bonds
Outstanding
December 31 2024
Date
Amount
251,822
4/15/2025
$
4/15/2026
24,303
23,269
2,275,000
7 /15/2025-26
120,000
7/15/2027-30
130,000
7/15/2031
130,000
7/15/2032
130,000
7 /15/2033-35
130,000
7/15/2036-38
130,000
1,848,000
7/15/2025
110,000
7/15/2026
125,000
7/15/2027
125,000
7/15/2028
140,000
7/15/2029
150,000
7/15/2030
150,000
7/15/2031
155,000
7/15/2032
160,000
7/15/2033
165,000
7/15/2034
170,000
7/15/2035
175,000
155
Interest
Rate
4.00
2.00
4.00
4.00
2.00
3.00
2.50
3.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
3.375
3.5
%
Balance,
December 31,
2023
$
8,220
72,392
1,920,000
1,735,000
$
3,735,612
Increased
Paid by Budget Appropriation
$
$
$
Decreased
8,220
EXHIBIT E-14
Balance,
December 31,
2024
24,820
$
47,572
120,000
1,800,000
110,000 __
1,625,000
263,040
$
3,472,572
2§)_,040
EXHIBIT E-15
CITY OF RAHWAY
STATEMENT OF ENVIRONMENTAL INFRASTRUCTURE LOAN PAY ABLE
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2023
$
80,423
Decreased by:
Principal Paid by Budget Appropriation
19,074
Balance, December 31, 2024
$
61,349
156
Ord. No.
26-22
45-23
Improvement Description
Various Sewer Improvements
Various Sewer Improvements
CITY OF RAHWAY
SEWER UTILITY CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES
Date of
Original
Date of
Balance
December 31
EXHIBIT E-16
Balance
December 31
Issue
Issue
Date of
Maturity
Interest
Rate
2023
Increased
Decreased
2024
7/25/2024
7/25/2024
7/24/2025
4.50%
$
850,000
$
850,000
7/25/2024
7/25/2024
7/24/2025
4.50%
2,685,000
2,6852000
$
$
3,535,000 =$=~== $
3,5352000
Issued for Cash
$
3,535,000
157
Ordinance
Number
Improvement Description
34-12
Improvements to Donald A venue Storm Sewer
45-13
Flood Control Mitigation Project
29-14
Improvement of the Storm Sewer on Kline Place
6-16/28-20 Inflow and Infiltration Project (Phase III)
CITY OF RAHWAY
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
SEWER UTILITY CAPITAL FUND
Amount
$
140,000
$
300,000
350,000
425,000
Balance,
December 31 2023
Funded
Unfunded
12,028
155,175
160,218
45,474
$
100,000
2024
Authorizations
19-16/29-20 Improvements to Witherspoon St Outfall and Monroe St Sewer Lines
325,000
402,786
320,000
23-17
Kline/Madison Sewer Improvements
200,000
91,761
16-18
Various Sewer Improvements
798,000
394,882
20-19/30-20 Repair of Sink Holes
500,000
27,060
24-20
Various Capital Improvements and Equipment
350,000
311,925
35-21
Various Sewer Improvements
1,150,000
1,150,000
26-22
Various Sewer Improvements
850,000
435,295
45-23
Various Sewer Improvements
2,685,000
2,685,000
16-24
Various Sewer Improvements
1,700,000
$
1,700,000
$ 1,574,249
$
4,_717,355
$
1,700,000
Cash Disbursements
Contracts Payable
158
Authorizations
Expended
Cancelled
$
12,028
$
30,180
124,995
160,218
122,329
91,761
2,037
276,814
470,590
$
901,950
$
389,002
$
363,459
~
491
$
901,950
$
EXHIBIT E-17
Balance,
December 31 2024
Funded
Unfunded
45,474
$
100,000
280,457
320,000
394,882
27,060
309,888
1,150,000
158,481
2,214,410
1,700,000
$ 1,030,701
$
5,669,951
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF CONTRACTS PAYABLE
SEWER UTILITY CAPITAL FUND
Charges to Improvement Authorizations
Decreased by:
Cash Disbursements
Balance, December 31, 2024
Balance, December 31, 2023
Balance, December 31, 2024
STATEMENT OF CAPITAL IMPROVEMENT FUND
SEWER UTILITY CAPITAL FUND
STATEMENT OF ACCRUED INTEREST ON BONDS AND LOANS
SEWER UTILITY OPERATING FUND
Balance, December 31, 2023
Increased by:
Budget Appropriations
Interest on Bonds, Notes and Loans
Decreased by:
Interest Paid
Balance, December 3 1, 2024
159
EXHIBIT E-18
$
48,545
538,491
587,036
40,406
$
546,630
EXHIBIT E-19
$
374,500
$
374,500
EXHIBIT E-20
$
60,973
138,281
199,254
134,154
$
65,100
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF RESERVE FOR AMORTIZATION
SEWER UTILITY CAPITAL FUND
Principal Paid by Budget Appropriation
Serial Bonds
Loans
Decreased by:
Authorizations Cancelled
Balance, December 3 1, 2024
$
STATEMENT OF RESERVE FOR DEFERRED AMORTIZATION
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2023
Balance, December 3 1, 2024
Balance, December 31, 2023
Decreased by
STATEMENT OF DUE TO OTHER TRUST FUND
SEWER UTILITY OPERATING FUND
Payments made to Other Trust Fund
160
263,040
19,074
EXHIBIT E-21
$
4,270,693
282,114
4,552,807
389,002
$
4,163,805
EXHIBIT E-22
$
6,700
$
6,700
EXHIBIT E-23
$
9,744
$
9,744
Ordinance
Number
20-19/30-20
28-20
29-20
35-21
26-22
45-23
16-24
CITY OF RAHWAY
SEWER UTILITY CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance,
December 3 1,
2024
Improvement Description
2023
Authorizations
Repair of Sink Holes
$
200,000
Inflow and Infiltration Project (Phase III) (Suppl. 6-16)
100,000
Improvements to Witherspoon St Outfall and Monroe St
Sewer Lines (Suppl. 19-16)
520,000
Various Sewer Improvements
1,150,000
Various Sewer Improvements
850,000
$
Various Sewer Improvements
2,685,000
Various Sewer Improvements
-
$
1,700,000
$
5,505,000
$
1,700,000
$
161
EXHIBIT E-24
Balance,
Notes Issued
December 31,
for Cash
2024
$
200,000
100,000
520,000
1,150,000
850,000
2,685,000
-
1,700,000
3,535,000
$
3,670,000
PARKING UTILITY FUND
EXHIBITF-5
CITY OF RAHWAY
PARKING UTILITY CASH
STATEMENT OF CASH - COLLECTOR/TREASURER
Operating
Capital
Balance, December 31, 2023
$
6,872,992
$
97,392
Increased by Receipts:
Parking Fees
$
1,603,288
Ground Lease
500,743
Interest Earned
212,463
$
27,257
Other
1,191
Premium on Bond Anticipation Notes
11,527
Receipts from General Capital Fund
64,969
Receipts from Parking Utility Capital Fund
652,038
2,382,654
690,822
9,255,646
788,214
Decreased by Disbursements:
2024 Budget Appropriations
1,123,047
2023 Appropriation Reserves
72,594
Encumbrances Payable
14,494
Accounts Payable
4,376
Contracts Payable
5,000
Accrued Interest on Bonds and Notes
174,994
Reserve for Security Deposits
3,265
Payments to Current Fund
650,000
Payments to Sewer Utility Operating Fund
1,097,000
Payments to Parking Utility Capital Fund
652,038
3,791,808
5,000
Balance, December 31, 2024
$
5,463,838
$
783,214
162
Fund Balance
CITY OF RAHWAY
PARKING UTILITY CAPITAL FUND
ANALYSIS OF CASH
Reserve for Future Capital Improvements
Due from Parking Utility Operating Fund
Improvement Authorizations
Ord. No.
9-19
26-20
27-22
Various Parking Capital Acquisitions and Improvements
Purchase and Acquisition of Electric Vehicles
Structural Repairs at Parking Deck
163
EXHIBITF-6
Balance,
December 31,
2024
$
73,372
186,524
(9,140)
238,643
14,554
279,261
$
783,214
Account
Land and Buildings
Parking Lots and Improvements
Machinery and Equipment
CITY OF RAHWAY
STATEMENT OF FIXED CAPITAL
PARKING UTILITY CAPITAL FUND
Balance,
December 31,
2023
$
9,679,164
970,666
540,566
$
11,190,396
164
EXHIBITF-7
Balance,
December 31,
2024
$
9,679,164
970,666
540,566
$
11,190,396
EXHIBITF-8
CITY OF RAHWAY
STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
PARKING UTILITY CAPITAL FUND
Balance,
Balance,
Ord.
Ordinance
December 31,
December 31,
No.
Improvement Description
Date
Amount
2023
2024
9-19
Various Parking Utility Capital
Acquisitions and Improvements
2019
$
750,000
$
750,000
$
750,000
26-20
Purchase and Acquisition of Electric Vehicles
2020
80,000
80,000
80,000
27-22
Parking Deck
2022
525,000
525,000
525,000
-
$
1,355,000
$
1,355,000
165
CITY OF RAHWAY
STATEMENT OF DUE TO PARKING UTILITY CAPITAL FUND
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Decreased by:
Interest Earned - Parking Utility Capital Fund
Payments to Parking Utility Capital Fund
Balance, December 31, 2024
$
27,257
652,038
STATEMENT OF DUE TO SEWER UTILITY OPERATING FUND
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Decreased by:
Payments to Sewer Utility Operating Fund
166
EXHIBITF-9
$
688,435
679,295
$
9,140
EXHIBIT F-10
$
1,097,000
$
1,097,000
Balance, December 31, 2023
Increased by:
CITY OF RAHWAY
STATEMENT OF DUE TO CURRENT FUND
PARKING UTILITY OPERA TING FUND
Current Fund Anticipated Revenue
Surplus Anticipated
$
500,000
Surplus (General Budget)
Decreased by:
Payments to Current Fund
Balance, December 31, 2024
Increased by:
STATEMENT OF DUE TO GENERAL CAPITAL FUND
PARKING UTILITY OPERA TING FUND
Receipts from General Capital Fund
Balance, December 31, 2024
1,176,000
STATEMENT OF RESERVE FOR RATE STABILIZATION
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Decreased by:
Realized as Parking Utility Operating Fund Revenue
Balance, December 31, 2024
167
EXHIBIT F-11
$
757,000
1,676,000
2,433,000
650,000
$
1,783,000
EXHIBIT F-12
$
64,969
$
64,969
EXHIBIT F-13
$
1,200,000
300,000
$
900,000
Operating
Salaries and Wages
Other Expenses
CITY OF RAHWAY
STATEMENT OF 2023 APPROPRIATION RESERVES
PARKING UTILITY OPERATING FUND
Balance
Balance
December 31,
Cancelled
After
2023
Encumbrances
Transfers
$
35,526
187,504 $
$
223,030
$
$
35,526
55,162
242,666
$
55,162
$
278,192
$
Cash Disbursements
$
Accounts Payable
$
168
EXHIBIT F-14
Paid
or
Balance
Charged
Lapsed
$
35,526
79,515
163,151
79,515
$
198,677
72,594
6,921
79,515
=====
CITY OF RAHWAY
STATEMENT OF ENCUMBRANCES PAYABLE
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Increased by:
Charges to Budget Appropriations
Decreased by:
Cancelled and Restored to Appropriation Reserves
Cash Disbursed
$
55,162
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
STATEMENT OF ACCOUNTS PAYABLE
PARKING UTILITY OPERATING FUND
Transferred from Appropriation Reserves
Decreased by:
Payments
Balance, December 31, 2024
169
14,494
EXHIBIT F-15
$
69,656
46,753
116,409
69,656
$
46,753
EXHIBIT F-16
$
$
14,006
6,921
20,927
4,376
16,551
CITY OF RAHWAY
STATEMENT OF ACCRUED INTEREST ON BONDS AND NOTES
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Increased by:
Budget Appropriations
Decreased by:
Cash Disbursements
Balance, December 31, 2024
STATEMENT OF RESERVE FOR SECURITY DEPOSITS
PARKING UTILITY OPERA TING FUND
Balance, December 31, 2023
Decreased by:
Cash Disbursements
170
EXHIBIT F-17
$
35,270
168,900
204,170
174,994
$
29,176
EXHIBIT F-18
$
3,265
$
3,265
Date of
Purpose
Issue
2018 Refunding Bonds
12/21/2018
$
CITY OF RAHWAY
STATEMENT OF GENERAL SERIAL BONDS
PARKING UTILITY CAPITAL FUND
Maturities of Bonds
Outstanding
Original
December 31. 2024
Interest
Issue
Date
Amount
Rate
3,335,000
11/15/2025
$ 210,000
4.50
11/15/2026
220,000
4.50
11/15/2027
225,000
4.50
11/15/2028
235,000
4.50
11/15/2029
245,000
4.50
11/15/2030
260,000
4.50
11/15/2031
270,000
4.50
11/15/2032
280,000
4.50
11/15/2033
300,000
4.50
%
Balance,
December 31,
2023
$
2,445,000
$
$
2,445,000
$
Decreased
EXHIBIT F-19
Balance,
December 31,
2024
200,000 t
2,245,000
200,000
$
2,245,000
Paid by Budget Appropriation $
200,000
171
EXHIBIT F-20
CITY OF RAHWAY
STATEMENT OF BOND ANTICIPATION NOTES
PARKING UTILITY CAPITAL FUND
Date of
Balance
Balance
Original
Date of
Date of
Interest
December 31,
December 31,
Ord. No.
Improvement Description
Issue
Issue
Maturity
Rate
2023
Increases
Decreases
2024
9-19
Various Parking Utility Capital
7/31/2019
7/25/2024
7/24/2025
4.50%
$
672,000
$
672,000
Acquisitions and Improvements
7/27/2023
7/26/2024
5.00%
$
698,000
$
698,000
26-20
Purchase and Acquisition of Electric Vehicles
7/28/2021
7/25/2024
7/24/2025
4.50%
71,000
71,000
7/27/2023
7/26/2024
5.00%
80,000
80,000
27-22
Structural Repairs at Parking Deck
7/27/2023
7/25/2024
7/24/2025
4.50%
525,000
525,000
7/27/2023
7/26/2024
5.00%
525,000
525,000
$
1,303,000
$
1,268,000
$
1,303,000 $
1,268,000
Renewals
$
1,268,000
$
1,268,000
Paid by Budget
___ _12,000
$
q_68,000
$
1,303,000
172
CITY OF RAHWAY
STATEMENT OF RESERVE FOR AMORTIZATION
PARKING UTILITY CAPITAL FUND
Balance, December 31, 2023
Increased by:
Bond Principal Paid by Budget Appropriation
$
200,000
Payment on Bond Anticipation Notes
35,000
Balance, December 31, 2024
EXHIBIT F-21
$
8,797,396
235,000
$
9,032,396
EXHIBIT F-22
STATEMENT OF RESERVE FOR FUTURE CAPITAL IMPROVEMENTS
PARKING UTILITY CAPITAL FUND
Balance, December 31, 2023
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
STATEMENT OF CONTRACTS PAYABLE
PARKING UTILITY CAPITAL FUND
Charged to Improvement Authorizations
Decreased by:
Cash Disbursements
173
$
186,524
$
186,524
EXHIBIT F-23
$
2,500
2,500
5,000
$
5,000
Ordinance
Number
9-19
26-20
27-22
Improvement Description
CITY OF RAHWAY
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
PARKING UTILITY CAPITAL FUND
Balance,
December 31, 2023
Amount
Funded
Unfunded
Various Parking Capital Acquisitions and Improvements
$
750,000
$
238,643
Purchase and Acquisition of Electric Vehicles
80,000
14,554
Structural Repairs at Parking Deck
525,000
281,761
$
$
$
534,958
$
Contracts Payab $
174
EXHIBIT F-24
Balance,
December 31, 2024
Expended
Funded
Unfunded
$
238,643
14,554
__ 2,500
279,261
2,500
$
$
532,458
2,500
CITY OF RAHWAY
PART II
GOVERNMENT AUDITING STANDARDS
AND SINGLE AUDIT
b I LERCH, VINCI & BLISS, LLP
B
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAUL J. LERCH, CPA, RMA, PSA
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERTW. HAAG, CPA, RMA, PSA
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHERM. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members
of the· City Council
City of Rahway
Rahway, New Jersey
INDEPENDENT AUDITOR'S REPORT
We have audited, in accordance with the auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, and audit requirements prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey, the financial statements -
regulatory basis of the City of Rahway, which comprise the balance sheets - regulatory basis of the various funds
and account group as of December 31, 2024, and the related statements of operations and changes in fund balance
- regulatory basis, statements of revenues - regulatory basis and statements of expenditures - regulatory basis of
the various funds for the year then ended and the related notes to the financial statements, and have issued our
report thereon dated August 29, 2025. Our report on the financial statements - regulatory basis indicated that the
financial statements were not prepared in accordance with accounting principles generally accepted in the United
States of America but rather prepared in accordance with the regulatory basis of accounting prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of
accounting other than accounting principles generally accepted in the United States, to meet the financial reporting
requirements of the State ofNew Jersey for municipal government entities as described in Note 1.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Rahway' s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements but not for the purpose of
expressing an opinion on the effectiveness of the City of Rahway's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City ofRahway's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the City's financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
17-17 ROUTE 208 FAIR LAWN, NJ 07410 • TELEPHONE (201) 791-7100 • FACIMILE (201) 791-3035
WWW.LVBCPA.COM
175
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given
these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. We identified a certain deficiency in internal control, described in the accompanying schedule
of findings and questioned cost as item 2024-001 that we consider to be a significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Rahway's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of
noncompliance or other matter that is required to be reported under Government Auditing Standards and audit
requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State
of New Jersey, and which is described in the accompanying schedule of findings and questioned costs as item
2024-001.
We also noted certain matters that are not required to be reported under Government Auditing Standards that we
reported to management of the City of Rahway in Part III of this report of audit entitled, "Letter of Comments and
Recommendations".
City of Rahway's Responses to Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City of Rahway's
response to the finding identified in our audit and described in the accompanying schedule of findings and
questioned costs. The City of Rahway's response was not subjected to the other auditing procedures applied in
the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City of Rahway' s internal control
or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City of Rahway's internal control and compliance. Accordingly, this communication
is not suitable for any other purpose.
Fair Lawn, New Jersey
August 29, 2025
176
I/'
C
•
1 ~
I//"'-
Li-1
RCH, VINCI
P
rtified
.
Register
";" -·• • ,n • ,..,
tants
e
. erch
Registered Munici al Accountant
RMA Number CR000398
LERCH, VINCI & BLISS, LLP
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAULJ. LERCH, CPA, RMA, PSA
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERTW. HAAG, CPA, RMA, PSA
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHER M. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON THE SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS REQUIRED BY
U.S. UNIFORM GUIDANCE
Honorable Mayor and Members
of the City Council
City of Rahway
Rahway, New Jersey
INDEPENDENT AUDITOR'S REPORT
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Rahway's compliance with the types of compliance requirements identified as
subject to audit in the U.S. Office of Management and Budget (0MB) Compliance Supplement that could have a
direct and material effect on each of the City of Rahway's major federal programs for the year ended December
31, 2024. The City of Rahway's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs.
In our opinion, the City of Rahway complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the year
ended December 31, 2024. .
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; audit requirements prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey; audit requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and U.S.
Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of
our report.
17-17 ROUTE 208 FAIR LAWN, NJ 07410 • TELEPH~ (201) 791-7100 • FACIMILE (201) 791-3035
WWW.LV&PA.COM
We are required to be independent of the City of Rahway and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of the City of Rahway' s compliance with the compliance
requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulation, rules, and provisions of contracts or grant agreements applicable to the City of Rahway' s
federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City of
Rahway' s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards, Government Auditing Standards, audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey and U.S. Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omission,
misrepresentation, or the override of internal control. Noncompliance with the compliance requirements referred
to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the City of Rahway' s
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, audit requirements prescribed by the Division of Local Government Services, Department of
Community Affairs, State ofNew Jersey and U.S. Uniform Guidance, we:
•
Exercise professional judgement and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City of Rahway' s compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
•
Obtain an understanding of the City of Rahway's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the U.S. Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of the City of Rahway's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
178
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of U.S. Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by U.S. Uniform Guidance
We have audited the financial statements - regulatory basis of the City of Rahway which comprise the balance
sheets - regulatory basis of the various funds and account group as of December 31, 2024, and the related
statements of operations and changes in fund balance - regulatory basis, statements of revenues - regulatory basis
and statements of expenditures - regulatory basis of the various funds for the year then ended and the related
notes to the financial statements and have issued our report thereon dated August 29, 2025, which contained an
unmodified opinion on those financial statements prepared in accordance with the regulatory basis of accounting
and also
contained a modified opinion on those financial statements because they were not prepared in
accordance with accounting principles generally accepted in the United States of America.
Our audit was
conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying
schedule of expenditures of federal awards as required by U.S. Uniform Guidance and schedule of expenditures
of state financial assistance are presented for purposes of additional analysis and are not a required part of the
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the
financial statements as a whole.
Fair Lawn, New Jersey
August 29, 2025
179
~~
LL~
RCH, VINCI & B
Certified Public Ace
Registered Municipa.1
D1
r
Registered Municipal Accountant
RMA Number CR000398
Schedule A
CITY OF RAHWAY
SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED DECEMBER 31, 2024
State
Original
Balance,
Balance,
Cumulative
AL
Grant
Grant
2024
December 31,
Revenue
Adjustment/
December 31,
Total
Number
Number
Award
Receipts
2023
Realized
Expenditures
Cancellation
2024
~enditures
U.S. Department of Housing and Urban
Development (Passed Through Union County
Dept. of Community Development)
14.218
Program Year 48 (Fiscal Year 2022-2023)
Roadway Resurfacing Program
$
385,000
$
2,983
$
2,983
$
2,983
Program Year 49 (Fiscal Year 2023-2024)
Senior Citizen Social Services Program
15,750
15,750
7,775
$
(3,090)
10,865
$
4,885
Home Improvement Program
255,000
174,877
154,190
154,190
255,000
Policy & Planning
110,000
110,000
110,000
110,000
110,000
Code Enforcement Program
24,000
19,957
24,000
11,325
12,675
11,325
Roadway Resurfacing Program
355,000
183,562
355,000
183,562
171,438
183,562
Program Year 50 (Fiscal Year 2024-2025)
Senior Citizen Social Services Program
16,000
$
16,000
7,573
···" I
7,573
Home Improvement Program
214,000
214,000
96,302
117,698
96,302
Policy & Planning
110,000
110,000
18,494
91,506
18,494
Code Enforcement Program
30,000
30,000
4,305
25,695
4,305
Roadway Resurfacing Program
355,000
355,000
355,000
Senior Parking Lot
38,000
38,000
38,000
Program Income
110,684
84,325
195,009
Roadway Resurfacing Program - Ordinance 33-23
382,017
I
382,017
U.S. Department of Transportation
(Passed Through New Jersey Department of Law
and Public Safety)
Drunk Driving Enforcement Fund
20.601
1160-100-057
6,702
3,848
3,848 I
2,854
Drunk Driving Enforcement Fund
20.601
1160-100-057
5,423
5,423
5,423
Drunk Driving Enforcement Fund
20.601
1160-100-057
21,590
21,590
21,590
U.S. Department of Homeland Security
(Passed Through New Jersey Department of
Law and Public Safety)
Emergency Management Program
97.042
1200-100-726
5,000
5,000
5,000
Emergency Management Program
97.042
1200-100-726
3,242
3,242
3,242
Emergency Management Program
97.042
1200-100-726
5,000
5,000
5,000
Emergency Management Program
97.042
1200-100-726
5,470
5,470
5,470
Emergency Management Program
97.042
1200-100-726
10,000
10,000
10,000
10,000
Public Assistance Grant - Hurricane Ida
97.036
1200-100-C84
421,847
421,847
421,847
I
421,847
U.S. Department of Health and Human Services
(Passed Through New Jersey Department of Health)
HlNl Public Health Emergency Response
93.069
4230-100-480
195,788
107
$
(107)
195,681
U.S. Department of Justice
(Passed Through New Jersey Department of Law
and Public Safety)
Congressional Infrastructure Grant
2,500,000
2,500,000
2,500,000
Edward Byrne Justice Grant
27,221
2,322
2,322 I
24,899
Local Law Enforcement Block Grant - FY 2004
17,548
17 548
{17,548)
3,334,182
$
1,279,172
$
1,004,508
$
{17,655) $
3,591,191
See Accompanying Notes to Schedule ofExpenditures ofFederal Awards
180
SCHEDULEB
Page 1
CITY OF RAHWAY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2024
Balance,
Balance,
Cumulative
Award
Cash
December 31,
December 31,
Total
State Grant Program
Account Number
Amount
Received
2023
Revenue
Expended
Adjustment
2024
Expenditures
Denartment of Communi!Y Affairs
Statewide Livable Communities Grant
8030-100-655
$
60,000
$
12,396
$
12,396 I $
47,604
Statewide Livable Communities Grant-Essex Street
60,000
60,000
60,000
Cooperative Housing Inspection
8010-100-023-2010
13,760
9,265
9,265 I
4,495
11,094
11,094
11,094
10,612
10,612
10,612
8,729
8,729
8,729
8,495
8,495
8,495
10,683
10,683
10,683
25,078
25,078
25,078
25,762
25,762
25,762
11,794
$
11,794
$
11,794
11,794
Clean Communities Grant
NIA
49,610
836
$
836
16,930 I
49,610
47,465
47,465
30,535
30,535
53,062
53,062
53,062
47,846
47,846
47,846
50,936
50,936
50,936
54,064
54,064
54,064
60,640
60,640
60,640
60,640
Brownfields
NIA
27,271
27,271
$
(27,271)
Local Recreation Improvement Grant
NIA
70,000
70,000
70,000
70,000
Denartment of Environmental Protection
Clean Energy Program
49,071
32,571
32,571 I
16,500
12,268
12,268
12,268
Recycling Tonnage Grant
4900-752-001
20,911
651
651
679 I
20,911
29,605
29,605
29,605
28,926
28,926
Stormwater Assistance
15,000
15,000
15,000
15,000
Green Acres Program
Madden Field Improvements (Ord. 26-17 lxx-21)
1,500,000
132,631
29,625
103,006 I
1,396,994
Department of Health
Public Health Priority Funding
4230-100-307
75,530
282
(282)
I
75,248
Economic Development Authorin::
Hazardous Discharge Site Remediation - FY 2009
313,170
10,881
10,881 I
302,289
Hazardous Discharge Site Remediation - FY 2011
284,033
281,065
281,065
2,968
Department of Law and Public Safen::
Alcohol Education and Rehabilitation
4250-760-050000-63
11,097
9,072
5,361
3,m I
7,386
1,206
1,206
1,206
2,843
2,843
2,843
13,253
13,253
13,253
13,253
Click It or Ticket Program
NIA
9,150
4,406
4,406 I
4,744
See Accompanying Notes to Schedule of Expenditures of State Financial Assistance
This schedule is not subject to Single Audit in accordance with State of NJ 0MB Circular 15-08.
181
SCHEDULEB
Page2
CITY OF RAHWAY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2024
Balance,
Balance,
Cumulative
Award
Cash
December 31,
December 31,
Total
State Grant Program
Account Number
Amount
Received
2023
Revenue
Expended
Adjustment
2024
Expenditures
DeRartment of Law and Public Safety (Continued)
Obey the Signs or Pay the Fines
NIA
$
4,000
$
4,000
$
4,000
Impaired Driving Countermeasure
NIA
5,919
5,514
5,514
Selected Enforcement Management
NIA
42,000
$
42,000
$
42,000
42,000
Police Body Armor Grant
1020-718-001
6,795
1,010
$
1,010
2,9121 $
6,795
4,920
4,920
4,920
4,920
8,114
8,114
5,202
5,202
5,683
5,683
5,683
5,683
Safe and Secure Communities
1020-100-232
174,150
54,793
s4,793 I
119,357
55,562
55,562
55,562
Drug Free Communities
NIA
125,000
66,540
50,422
16,118 I
108,882
Unclassified
NJ Child Passenger Safety
NIA
7,400
2,375
$
(2,375)
I
5,025
ADA T ASE Grant
NIA
16,320
11,240
11,240
I
16,320
NJ 911 General Assistance Grant
NIA
25,362
301
(301)
25,061
Senior Services Grant
NIA
40,523
7,371
7,371 I
33,152
15,000
1,856
1,856
13,144
5,000
5,000
5,000
Local Domestic Preparedness
NIA
25,000
2,630
(2,630)
I
22,370
Green the Streets Grant
NIA
250,000
79,124
79,1241
170,876
Smart Growth Program
NIA
36,160
36,160
(36,160)
NJ 911 Equipment Grant - FY 2008
NIA
17,637
47
(47)
I
17,590
Pandemic Influenza Grant - FY 2008
NIA
13,288
8,987
(8,987)
4,301
NJACCO - COVID
NIA
30,560
16,910
16,910
13,650
207,388
$
207,388
128,169
11,257
116,912
90,476
Strengthening Local Health Preparedness
NIA
291,042
199,951
199,951
91,091
126,074
68,763
25,538
43,225
82,849
74,664
43,976
74,664
-
71,664
$
1,720,807
$
_____]12,639
$
205,523 _$_
{78,053) ~
1,759,870
See Accompanying Notes to Schedule of Expenditures of State Financial Assistance
This schedule is not subject to Single Audit in accordance with State of NJ 0MB Circular 15-08.
182
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AW ARDS
AND STATE FINANCIAL ASSISTANCE
CITY OF RAHWAY
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AW ARDS
AND STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2024
NOTE 1 REPORTING ENTITY
The City of Rahway (the "City") received and participated in numerous Federal Award and State Financial
Assistance programs in the form of cost reimbursement grants and revenue sharing entitlements. The City is
the reporting entity for these programs. The City is defined in Note 1 (A) to the City's Financial Statements.
NOTE 2 BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal awards and state financial assistance (the "Schedules")
present the activity of all federal and state programs of the City. All federal awards received directly from
federal agencies or passed through other government agencies are included on the schedule of expenditures of
federal awards. All state awards received directly from state agencies or passed through other government
agencies are included in the schedule of expenditures of state financial assistance. The information in these
Schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principals, and audit Requirements for Federal Awards
(Uniform Guidance) and New Jersey 0MB Circular Letter 15-08 Single Audit Policy for Recipients of Federal
Grants, State Grants and State Aid.
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City conform to the accounting principles and practices prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey (the
"Division") which is a regulatory basis of accounting other than accounting principles generally accepted in the
United States of America (GAAP). Such principles and practices are designed primarily for determining
compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of
public officials with respect to public funds. Under this method of accounting, the City accounts for federal
awards and state financial assistances through separate funds and accounts which differ from those required by
accounting principles generally accepted in the United States of America. The City's summary of significant
accounting policies are described in Note 1 to the City's Financial Statements.
NOTE 4 RELATIONSHIP TO FINANCIAL STATEMENTS
Amounts reported in the accompanying schedules agree with amounts reported in the City's financial
statements.
Financial assistance revenues are reported in the City's financial statements on a basis of
accounting described above as follows:
Current Fund
Community Development Grant Fund
Total Financial A wards
Federal
$
431,847
$
847,325
$ 1,279,172
$
183
322,639
$
Total
754,486
847,325
322,639
$ 1,601,811
CITY OF RAHWAY
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AW ARDS
AND STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2024
NOTE 5 RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules may not necessarily agree with the amounts reported in the
related federal and state financial reports due to timing differences between the City's fiscal year and grant
program year.
NOTE 6 FEDERAL AND STATE LOANS OUTSTANDING
Certain federal and state loans at the beginning of the year and loans made during the year are included in The
Schedules, while others are not required to be included in The Schedules. The City's federal and state loans
outstanding at December 31, 2024, which are not required to be reported on the schedules of expenditures of
federal awards and state financial assistance, are as follows:
Loan Program
Green Acres Loan Program
Environmental Infrastructure Loans
Water Utility
Sewer Utility
NOTE 7 INDIRECT COST RATE
Amount
$
118,393
11,058,453
61,349
$ 11,238,195
The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform
Guidance.
184
CITY OF RAHWAY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2024
Part I - Summary of Auditor's Results
Financial Statement Section
Type of auditors' report issued:
Unmodified on Regulatory Basis
Internal control over financial reporting:
1) Material weakness( es) identified?
2) Were significant deficiencies identified that are
not considered to be material weaknesses?
Noncompliance material to financial
statements noted?
Federal Awards Section
_____ yes
X
no
___ x ___ yes
no
___ x ___ yes
no
Dollar threshold used to determine Type A programs:
$ 750,000
Auditee qualified as low-risk auditee?
Type of auditors' report on compliance for major
programs:
Internal Control over compliance:
1) Material weakness( es) identified?
2) Were significant deficiencies identified that are
not considered to be material weaknesses?
Any audit findings disclosed that are required to be
reported in accordance with U.S. Uniform Guidance
( section. 510( a)
Identification of major programs:
AL Number(s)
97.036
_____ yes
X
no
Unmodified
_____ yes
X
no
_____ yes
X
no
_____ yes
X
no
Name of Federal Program or Cluster
FEMA - Public Assistance Grant
185
State Awards Section
Not Applicable
CITY OF RAHWAY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2024
Part I - Summary of Auditor's Results
186
CITY OF RAHWAY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2024
Part II - Schedule of Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to
the financial statements that are required to be reported in accordance with Chapter 5 .18 of Government Auditing
Standards.
Finding 2024-001
Our audit indicated that payments were made for the acquisition of computer and networking equipment,
the cost of which exceeded the statutory threshold, without seeking bids through public advertisement.
Criterial or Specific Requirement
Local Public Contracts Law (NJSA 40A-11-let.seq.)
Condition
Equipment related to computer and networking services was acquired in excess of the bid threshold without
adherence to the Local Public Contracts Law.
Questioned Costs
Unknown.
Context
The City awarded a contract for network maintenance and management for an amount not to exceed
$42,000.
The vendor acquired equipment related to such services and included the cost on invoices
submitted for payment. Total payments made to the vendor during 2024 amounted to $722,023.
The City was not in compliance with the Local Public Contracts Law.
Recommendation
Computer networking hardware and equipment purchases that exceed the bid threshold be acquired in
accordance with the Local Public Contracts Law.
View of Responsible Officials and Planned Corrective Action
Management has reviewed this finding and has indicated that corrective action will be taken.
187
CITY OF RAHWAY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2024
Part 3 - Schedule of Federal and State Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance including
questioned costs, related to the audit of major federal and state programs, as required by U.S. Uniform Guidance and
New Jersey 0MB Circular 15-08.
FEDERAL AW ARDS
There are none.
STATE AWARDS
Not Applicable.
188
CITY OF RAHWAY
SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS
AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2024
This section identifies the status of prior-year findings related to the financial statements and federal and state awards that
are required to be reported in accordance with Chapter 6.12 of Government Auditing Standards, U.S. Uniform Guidance
and New Jersey OMB's Circular 15-08.
STATUS OF PRIOR YEAR FINDINGS
There were none.
189
CITY OF RAHWAY
PART III
SUPPORTING DATA
LETTER OF COMMENTS AND RECOMMEND A TIO NS
YEAR ENDED DECEMBER 31, 2024
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE -
CURRENT FUND
Year Ended
Year Ended
December 3 l, 2024
December 31, 2023
Amount
Percent
Amount
Percent
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated
$
3,000,000
2.11 % $
3,000,000
2.21 %
Miscellaneous - From Other Than Local
Property Tax Levies
26,276,609
18.49
26,200,298
19.30
Collection of Delinquent Taxes
and Tax Title Liens
1,457,648
1.03
1,623,793
1.20
Collection of Current Tax Levy
108,679,274
76.49
103,947,518
76.59
Other Credits to Income
2,671,435
1.88
949,633
0.70
Total Income
142,084,966
100.00 %
135,721,242
100.00 %
EXPENDITURES
Budget Expenditures
Municipal Purposes
70,286,286
50.07 %
66,037,056
50.37 %
County Taxes
15,561,471
11.08
14,701,064
11.21
Local School Taxes
49,928,320
35.57
48,913,541
37.31
Special Improvement Taxes
400,000
0.28
400,000
0.31
Other Expenditures
4,207,593
2.99
1,063,534
0.80
Total Expenditures
140,383,670
100.00 %
131,115,195
100.00 %
Less: Expenditures Included above which by
Statute are Required to be Raised in Subsequent Year's Budget
1,270,000
750,000
Adjusted Expenditures
139,113,670
130,365,195
Excess in Revenue
2,971,296
5,356,047
Fund Balance, Beginning of Year
12,116,707
9,760,660
15,088,003
15,116,707
Less Utilization as Anticipated Revenue
3,000,000
3,000,000
Fund Balance, End of Year
$
12,088,003
$
12,116,707
190
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE -
WATER UTILITY OPERATING FUND
Year Ended
Year Ended
December 31, 2024
December 31, 2023
Amount
Percent
Amount
Percent
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated
$
130,000
0.99 %
Collection of Water Rents
$
11,271,148
96.83
9,197,184
70.07
Miscellaneous - From Other Than
Water Rents
369,290
3.17
3,798,150
28.94
Total Income
11,640,438
100.00 %
13,125,334
100.00 %
EXPENDITURES
Budget Expenditures
Operating
6,930,940
76.69
%
8,450,000
78.51
%
Capital Improvements
400,000
3.72
Deferred Charges
26,669
0.30
279
0.00
Debt Service
2,080,569
23.02
1,913,000
17.77
Total Expenditures
9,038,178
100.00 %
10,763,279
100.00 %
Less: Expenditures Included above which by
Statute are Required to be Raised in Subsequent Year's Budget
27,940
Adjusted Expenditures
9,010,238
10,763,279
Excess in Revenues
2,630,200
2,362,055
Adjustments to Income Before Fund Balance
Surplus to General Budget
(913,933)
(906,721)
Statutory Excess to Fund Balance
1,716,267
1,455,334
Fund Balance, Beginning of Year
5,834,626
5,804,292
Decreased by:
7,550,893
7,259,626
Utilized as Anticipated Revenue
130,000
Utilized as Anticipated Revenue - Current Fund
1,295,000
1,295,000
Fund Balance, End of Year
$
6,255,893
$
5,834,626
191
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERA TIO NS AND CHANGES IN FUND BALANCE -
SEWER UTILITY OPERATING FUND
Year Ended
Year Ended
December 31 2 2024
December 31 2 2023
Amount
Percent
Amount
Percent
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated
$
818,000
9.82 % $
551,748
7.87 %
Rents
6,987,094
83.81
6,008,081
85.62
Miscellaneous - From Other Than Sewer Rents
376,062
4.51
291,978
4.16
Other Credits to Income
155,563
1.87
165,057
2.35
Total Income
8336)19
100.00 %
720162864
100.00 %
EXPENDITURES
Budget Expenditures
Operating
6,848,000
94.01 %
6,136,000
91.47 %
Deferred Charges and Statutory Expenditures
16,000
0.22
20,248
0.30
Debt Service
420,396
5.77
552,214
8.23
Total Expenditures
7,284,396
100.00 %
6,708,462
100.00 %
Statutory Excess to Fund Balance
1,052,323
308,402
Fund Balance, Beginning of Year
1,904,150
2,147,496
2,956,473
2,455,898
Less Utilization as Anticipated Revenue
818,000
551,748
Fund Balance, End of Year
$
2,138,473
$
1,904,150
192
CITY OF RAHWAY
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE -
PARKING UTILITY OPERATING FUND
Year Ended
Year Ended
December 31, 2024
December 31, 2023
Amount
Percent
Amount
Percent
REVENUE AND OTHER INCOME REALIZED
Surplus Anticipated
$
500,000
14.95%
$
500,000
15.09%
Parking Fees
1,603,288
47.95%
1,467,975
44.30%
Miscellaneous - Other than Parking Fees
1,041,654
31.15%
1,126,267
33.99%
Other Credits to Income
198,677
5.94%
219,262
6.62%
Total Income
3,343,619
100.00% %
3,313,504
100.00%
EXPENDITURES
Budget Expenditures
Operating
940,000
68.07%
940,000
69.98%
Deferred Charges and Statutory Expenditures
37,000
2.68%
37,000
2.75%
Debt Service
403,900
29.25%
366,309
27.27%
Total Expenditures
1,380,900
100.00%
1,343,309
100.00%
Excess in Revenue
1,962,719
1,970,195
Adjustments to Income Before Fund Balance
Surplus to General Budget
(1,176,000)
(1,097,000)
Statutory Excess to Fund Balance
786,719
873,195
Fund Balance, Beginning of Year
2,785,330
3,062,135
3,572,049
3,935,330
Less Utilization as Anticipated Revenue
500,000
500,000
Less Utilized as Anticipated Revenue - Current Fund
500,000
650,000
Fund Balance, End of Year
$
2,572,049
$
2,785,330
193
CITY OF RAHWAY
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
2024
2023
2022
Tax Rate - Calendar Year
$7.405
$7.172
$7.022
Apportionment of Tax Rate
Municipal ( 1)
2.971
2.825
2.713
County
1.041
1.002
1.009
Local School
3.393
3.345
3.300
(1)
Includes Library
Assessed Valuation
2024
$1.471.553.503
2023
$1.462.406.807
2022
$1.450.623,651
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage of current
collection could be an indication of a probable increase in future tax levies.
Percentage
of
Year
Tax Levy
Cash Collections
Collection
2024
$
111,023,338
$
108,679,274
97.89%
2023
105,625,192
103,947,518
98.41 %
2022
102,350,517
100,616,676
98.31%
2021
100,832,376
99,461,626
98.64%
2020
99,975,561
98,197,260
98.22%
194
CITY OF RAHWAY
DELINQUENT TAXES AND TAX TITLE LIENS
This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes and tax title liens, in
relation to the tax levies of the last five years.
Amount of
Amount of
Percentage
Tax Title
Delinquent
Total
of
Year
Liens
Taxes
Delinquent
Tax Levy
2024
$
700,986
$ 2,069,820
$ 2,770,806
2.50%
2023
643,253
1,624,449
2,267,702
2.15%
2022
630,679
1,566,801
2,197,480
2.15%
2021
707,235
1,277,495
1,984,730
1.97%
2020
484,349
1,981,743
2,466,092
2.47%
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens at year end on the basis of the last assessed valuation
of such properties was as follows:
Balance
Year End
2024
2023
2022
2021
2020
COMPARISON OF WATER UTILITY LEVIES
Year
.L.m
2024
$11,606,429
2023
9,334,929
2022
8,578,627
2021
9,106,437
2020
7,738,951
*Includes collection of prior year receivables
COMPARISON OF SEWER UTILITY LEVIES
Year
.L.m
2024
$7,098,468
2023
6,074,455
2022
5,429,122
2021
5,412,374
2020
5,045,543
*Includes collection of prior year receivables
195
Amount
$2,664,500
2,664,500
2,664,500
2,664,500
2,664,500
Cash
Percentage
Collections
of Collection*
$11,271,148
97.11 %
9,197,184
98.52
8,754,193
102.04
8,904,259
97.78
7,387,972
95.46
Cash
Percentage
Collections
of Collection*
$6,987,094
98.43%
6,008,081
98.91
5,583,425
102.84
5,196,576
96.01
4,996,492
99.03
CITY OF RAHWAY
COMPARATIVE SCHEDULE OF FUND BALANCE
Current Fund
Water Utility Operating Fund
Sewer Utility Operating Fund
Parking Utility Operating Fund
Year
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
Balance
Year End
$12,088,003
12,116,707
9,760,660
9,461,348
7,479,527
$6,255,893
5,834,626
5,804,292
5,334,672
3,140,749
$2,138,473
1,904,150
2,147,496
2,705,774
2,257,652
$2,572,049
2,785,330
3,062,135
3,466,964
2,621,377
Utilized in
Budget of
Succeeding
Year
$3,300,000
3,000,000
3,000,000
3,000,000
2,500,000
$1,000,000
1,295,000
1,425,000
135,022
-0-
$841,000
818,000
551,748
854,639
250,000
$750,000
1,000,000
1,150,000
500,000
337,000
Water, Sewer and Parking Utility Fund balance utilized in budget of succeeding year includes amounts that
are anticipated as revenue in the Current Fund and the Utility Operating budget.
196
CITY OF RAHWAY
OFFICIALS IN OFFICE AND SURETY BONDS
AS OF DECEMBER 31, 2024
Name
Raymond Giacobbe, Jr.
Jeffrey Brooks
Joanna Miles
Jeremy Mojica
Al Parker
Karla Timmons
Vannie Deloris Parson
David Brown
Danielle "Danni" Newbury
Joseph D. Gibilisco
Jonathan Parham
Heather Capone
Frank C. Ruggiero
Capt. Shawn Ganley
Nicholas Breiner
Michael Roberts
Frank D'Errico
Anthony Deige, Jr.
Louis N. Rainone, Esq.
Roman Montes
Marylene Shepard
Angela Vidal
Logan Ortutay
Frank Spallone
Daniel Lee
Andrea Alvare
Amount of Bond
Mayor
Councilmember-at-Large
Councilmember-at-Large
Councilmember-at-Large
Councilmember - Ward 1
Councilmember - Ward 2
Councilmember- Ward 3, Council President
Councilmember - Ward 4
Councilmember - Ward 5, Council Vice-President
Councilmember - Ward 6
Business Administrator
$50,000
City Clerk
Chief Financial Officer
50,000
Chief Law Enforcement Officer
50,000
Director of Police
50,000
Director/Fire Chief
50,000
Director of Public Works and Engineering
50,000
Director of Parks and Recreation
50,000
Director of Law
(A)
(A)
(A)
(A)
(A)
(A)
(A)
Municipal Judge
50,000 (A)
Municipal Court Administrator
100,000 (B)
Tax Collector
250,000 (A)
Deputy Tax Assessor
50,000 (A)
Construction Code Official
50,000 (A)
Director of Community Development/City Engineer
Director of Health/ Health Official
50,000 (A)
A.
Public Employee Dishonesty Blanket coverage as written by the Travelers Casualty and Surety Company of
America in the amount of $50,000.
B.
Municipal Court bond as written by the Travelers Casualty and Surety Company of America in the amount of
$100,000, Bond #105421641.
197
CITY OF RAHWAY
GENERAL COMMENTS
Current Year
Our audit indicated numerous instances when documentation to support payments to vendors was unable to be
located and provided for audit. It is recommended that, in all instances, purchase orders and vendor invoices be filed
by check number and be made readily available for audit.
Our audit indicated that unexpended balances reflected on the City's budget, capital and grant appropriation reports
were not always in agreement with amounts reported on the audit. It is recommended that internal budget and grant
appropriation reports be reconciled and adjusted to agree with the audit.
Prior Year Unresolved
With respect to the municipal court, our audit indicated that numerous old outstanding checks remain on the
reconciliations of the fines and bail bank accounts. It is recommended that old outstanding checks on the municipal
court fines and bail bank accounts be cleared of record.
With respect to the use of national cooperative purchase agreements, our audit indicated that cost savings
determinations were not prepared and advertisement of the intended contract award was not completed. It is
recommended that purchases made through the use of national cooperative purchase agreements be made in
accordance with Local Finance Notice 2012-10.
Contracts and Agreements Required to be Advertised for NJS 40A:11-4
NJS 40A: 11-4 states "Every contract or agreement, for the performance of any work or the furnishing or hiring of
any materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds not included
within the terms of Section 3 of this act, shall be made or awarded only by the Governing Body of the contracting
unit after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically
by any other law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in
the aggregate $44,000, except by contract or agreement."
The Governing Body of the City has the responsibility of determining whether the expenditures in any category will
exceed $44,000 within the fiscal year. Where question arises as to whether any contract or agreement might result in
violation of the statute, the City Council's opinion should be sought before a commitment is made.
The minutes indicate that bids were requested by public advertising for the following item:
Berzenic Park Tennis Court and Howard Field
Park Basketball Court Improvements
CDBG Year 49 - Streetscape Improvements
Madden Field Basketball Courts Improvements
Main Street Lighting and Landscaping Improvements
NJ DOT FY 2024 Street Improvements
Irving Street Temporary Parking Lot
The minutes indicate that resolutions were adopted and advertised, authorizing the awarding of contracts or
agreements for "Professional Services" per N.J.S.A. 40A: 11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation
could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut
violations existed.
198
CITY OF RAHWAY
GENERAL COMMENTS
Collection of Interest on Delinquent Taxes and Assessments
The statutes provide the method for authorizing interest and the maximum rates to be charged for the nonpayment of
taxes or assessments on or before the date when they would become delinquent.
The Governing Body on August 11, 1986 adopted the following ordinance authorizing interest to be charged on
delinquent taxes:
"NOW BE IT RESOLVED, by the Municipal Council of the City of Rahway that the Tax Collector of said City
of Rahway, is hereby authorized and directed to provide for a grace period not exceeding ten (10) calendar days
within which any installment of taxes or assessments may be hereafter received without any charge for interest
provided that such payment is received within the said ten (10) calendar day period after the date upon which
the installment becomes payable. After such date said taxes shall be considered delinquent and interest shall
run against such delinquent taxes at the rate of eight (8%) percent, on the first $1,500 of the delinquent taxes
and eighteen (18%) percent of any delinquent sum in excess of$1,500."
It appears from an examination of the Collector's records that interest was collected in accordance with the foregoing
ordinance.
Collection oflnterest on Delinquent Water and Sewer Rents
The governing body on December 28, 1981 adopted the following ordinance authorizing interest to be charged on
delinquent utility rents:
Grace Period. Bills are due upon receipt. A grace period of thirty (30) calendar days is provided within which
a payment of utility charges may be hereafter received without any charge for interest, provided that such payment is
received within said thirty calendar-day period after the billing date upon which the amount becomes payable.
Interest Rates. After the above grace period, utility charges shall be considered delinquent, and interest shall
run against such delinquent charges at the rate of eight percent (8%) on the first one thousand five hundred dollars
($1,500) of the delinquent water utility charges and eighteen percent (18%) on any delinquent sums in excess of one
thousand five hundred dollars ($1,500).
Collection oflnterest on Delinquent Water and Sewer Rents (Continued)
It appears from an examination of the Collector's records that interest was collected in accordance with the
foregoing ordinance.
The last tax sale was held on September 17, 2024 and was complete.
The following comparison is made of the number of tax title liens receivable of the last five years.
Year
2024
2023
2022
2021
2020
Number of Liens
199
8
8
12
17
9
CITY OF RAHWAY
GENERAL COMMENTS
Suggestion to Management
•
Efforts be made to collect outstanding grants receivable balances in the current and general capital funds.
•
Outstanding balances related to prior year purchase orders be reviewed for potential cancellation.
•
Interfunds between City accounts be liquidated.
•
Excess funds in the net payroll account be transferred to the Current Fund.
200
*
*
CITY OF RAHWAY
RECOMMENDATIONS
It is recommended that
1.
In all instances, purchase orders and vendor invoices be filed by check number and be made readily available
for audit.
2
Internal budget and grant appropriation reports be reconciled and adjusted to agree with the audit.
3.
Old outstanding checks on the municipal court fines and bail bank accounts be cleared of record.
4.
Computer networking hardware and equipment purchases that exceed the bid threshold be acquired in
accordance with the Local Public Contracts Law.
5.
Purchases made through the use of national cooperative purchase agreements be made in accordance with
Local Finance Notice 2012-10.
****************************************
A review was performed on all prior years' recommendations and corrective action was taken all other than the
recommendations denoted with an asterisk (*) above.
The findings noted in our audit were not of such magnitude that they would affect our ability to express an opinion
on the financial statements taken as a whole.
Should any questions arise as to our comments and recommendations, or should you desire assistance m
implementing our recommendations, please do not hesitate to call us.
201
~£~ .. ~a;J
RCH, VINCI & B 'SS, LLP
Certified Public Acc9 ntants
Registered Municipal Accountants
ublic
tant
RMA Number C
98
DRAFT
AGREEMENT OF SALE
BETWEEN
THE CITY OF RAHWAY, NEW JERSEY
AND
[BUYER]
[Date]
Table of Contents
ARTICLE I - DEFINITIONS ............................................................................................................. 1
ARTICLE II - REPRESENTATIONS AND WARRANTIES OF THE CITY ................................... 3
Section 2.1. REPRESENTATIONS AND WARRANTIES OF THE CITY ................................ 3
Section 2.2. DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES .......... 3
Section 2.3. SURVIVAL OF REPRESENTATIONS AND WARRANTIES .............................. 4
ARTICLE III - REPRESENTATIONS AND WARRANTIES OF THE BUYER ............................. 5
Section 3.1. REPRESENTATIONS AND WARRANTIES OF THE BUYER ............................ 5
Section 3.2. SURVIVAL OF REPRESENTATIONS AND WARRANTIES .............................. 6
ARTICLE IV - BASIC TRANSACTION .......................................................................................... 7
Section 4.1. PURCHASE AND SALE OF ASSETS ................................................................... 7
Section 4.2. EXCLUDED ITEMS ............................................................................................... 7
Section 4.3. PURCHASE PRICE ................................................................................................ 7
Section 4.4. CITY TRANSACTION EXPENSE ......................................................................... 7
Section 4.5. ADDITIONAL OBLIGATIONS ............................................................................. 7
Section 4.6. THE CLOSING ....................................................................................................... 8
Section 4.7. DELIVERIES AT THE CLOSING .......................................................................... 8
Section 4.8. APPORTIONMENTS .............................................................................................. 9
Section 4.9. SETTLEMENT STATEMENT ............................................................................. 10
ARTICLE V - PRE-CLOSING COVENANTS ............................................................................... 11
Section 5.1. PRE-CLOSING COVENANTS ............................................................................ 11
ARTICLE VI - TITLE AND CONDITION OF SYSTEMS ............................................................ 14
Section 6.1. TITLE .................................................................................................................... 14
Section 6.2. PROPERTY INFORMATION MATERIALS ....................................................... 15
Section 6.3. CONDITION OF THE SYSTEMS ....................................................................... 15
ARTICLE VII - CONDITIONS TO OBLIGATION TO CLOSE .................................................... 16
Section 7.1. CONDITIONS TO OBLIGATION OF THE BUYER .......................................... 16
Section 7.2. CONDITIONS TO OBLIGATION OF THE CITY ............................................... 16
Section 7.3. SCHEDULE FOR CLOSING CONDITIONS ...................................................... 17
ARTICLE VIII - POST-CLOSING OBLIGATIONS OF BUYER .................................................. 18
Section 8.1. CONTINUATION OF WATER SERVICES ......................................................... 18
Section 8.2. MAINTENANCE, REPAIRS, AND REPLACEMENT ........................................ 18
Section 8.3. RATE STABILIZATION COVENANT ................................................................ 18
Section 8.4. WATER PRESSURE ............................................................................................. 18
Section 8.5. SERVICE TO CITY FACILITIES ......................................................................... 18
ARTICLE IX - REMEDIES FOR BREACHES OF THIS AGREEMENT ..................................... 20
Section 9.1. PRE-CLOSING DEFAULT BY THE BUYER ..................................................... 20
Section 9.2. PRE-CLOSING DEFAULT BY THE CITY .......................................................... 20
Section 9.3. POST-CLOSING DEFAULTS .............................................................................. 20
ARTICLE X - ESCROW AGENT ................................................................................................... 21
Section 10.1. ESCROW ............................................................................................................. 21
ARTICLE XI - NON-BINDING MEDIATION; FORUM FOR DISPUTE RESOLUTION .......... 22
Section 11.1. RIGHTS TO REQUEST AND DECLINE NON-BINDING MEDIATION ....... 22
Section 11.2. PROCEDURE ...................................................................................................... 22
Section 11.3. NON-BINDING EFFECT ................................................................................... 22
Section 11.4. RELATION TO JUDICIAL LEGAL PROCEEDINGS ....................................... 22
Section 11.5. FORUM FOR DISPUTE RESOLUTION ........................................................... 22
ARTICLE XII - INDEMNIFICATION ............................................................................................ 23
Section 12.1. INDEMNIFICATION BY THE BUYER ............................................................ 23
Section 12.2. THIRD PARTY CLAIMS .................................................................................... 23
Section 12.3. NO OTHER DAMAGES ..................................................................................... 24
ARTICLE XIII - MISCELLANEOUS ............................................................................................. 25
Section 13.1. THIRD PARTY BENEFICIARIES ...................................................................... 25
Section 13.2. ENTIRE AGREEMENT ...................................................................................... 25
Section 13.3. SUCCESSION AND ASSIGNMENT ................................................................. 25
Section 13.4. COUNTERPARTS .............................................................................................. 25
Section 13.5. HEADINGS ......................................................................................................... 25
Section 13.6. NOTICES ............................................................................................................. 25
Section 13.7. GOVERNING LAW ............................................................................................ 26
Section 13.8. AMENDMENTS AND WAIVERS ..................................................................... 26
Section 13.9. SEVERABILITY ................................................................................................. 26
Section 13.10. EXPENSES ........................................................................................................ 26
Section 13.11. CONSTRUCTION ............................................................................................. 26
Section 13.12. VARIATIONS IN PRONOUNS ........................................................................ 27
Section 13.13. INCORPORATION OF EXHIBITS AND SCHEDULES................................. 27
Section 13.14. TRANSFER TAXES ......................................................................................... 27
Section 13.15. TIME IS OF THE ESSENCE ............................................................................ 27
Section 13.16. REVIEW OR AUDIT BY OFFICE OF THE STATE COMPTROLLER ........ 27
LIST OF EXHIBITS - TO BE DETERMINED
Exhibit A.
Description of the Water System
Exhibit B.
Form of Assignment and Assumption Agreement
Exhibit C.
Form of Bill of Sale
Exhibit D.
2025 Rates
Exhibit E.
List of Written Contracts to Which City is a Party which Relate to the Water
System
Exhibit F.
Form of Assignment and Grant of Easements, Rights of Way and other Property
Exhibit G.
Form of General Assignment
Exhibit H.
Disclosure Schedule to the Agreement of Sale
Exhibit I.
Escrow Agreement
Exhibit J.
Customer Service Standards and Customer Service Plan
AGREEMENT OF SALE
THIS AGREEMENT OF SALE (this “Agreement”), dated [Date] is made and
entered into by and between the CITY OF RAHWAY, a public body corporate and politic in
Union County in the State of New Jersey (the “City”) and [BUYER], a [
]
[Corporation] with principal corporate offices at [_] (the “Buyer”). The Buyer and the City are
referred to collectively herein as the “Parties.”
WHEREAS, the City currently owns and operates a public drinking water system
within the City consisting of a water distribution system and a water treatment plant (collectively,
the “Water System”), more particularly described herein, located in the City of Rahway, New
Jersey; and
WHEREAS, in connection with the proposed sale of its Water System, the City
prepared, advertised, and made available to all prospective buyers a Request for Bids on February
12, 2026; and
WHEREAS, on April 1, 2026, the City received bids from [_] private water utilities
in response to the RFB; and
WHEREAS, after review and clarifications of the Bid(s) received, the City
determined that the Buyer had submitted the Highest Responsible Bid; and
WHEREAS, the City and the Buyer have agreed to the terms and conditions set
forth in this Agreement, which sets forth the terms upon which sale of the City’s Water System to
the Buyer will take place, provided all conditions of the Closing are satisfied; and
WHEREAS, the City desires to sell and the Buyer desires to purchase the Water
System pursuant to the terms of the Agreement; and
NOW, THEREFORE, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, and covenants herein
contained, the Parties agree as follows:
6
ARTICLE I - DEFINITIONS
“Agreement” shall mean this Agreement of Sale of the Water System and all exhibits,
attachments, and schedules hereto, dated [
, 2026].
“Assumed Liabilities” shall have the meaning set forth in Section 4.5 below. “BPU”
means the New Jersey Board of Public Utilities or any successor agency.
“Buyer” means the entity that ultimately is successful in purchasing the water system.
“City” means the City of Rahway, New Jersey.
“City Consent” shall mean the municipal consent ordinance that is to be enacted by the City
as a condition of the Closing.
“Closing” has the meaning set forth in Section 4.6 below.
“Closing Date” shall mean the date upon which Closing takes place as more
particularly described in Section 4.6 below.
“Deposit” shall mean a payment of money equal to 10% of the Purchase Price, which is
payable to the City upon execution of this Agreement, and which shall be held by the Escrow
Agent under the Escrow Agreement attached hereto and incorporated herein by reference as
Exhibit I, and together with the earnings accrued thereon shall be the Deposit.
“Disclosure Schedule” has the meaning set forth in Section 2.1.
“Encumbrances” means any security interest, pledge, mortgage, lien (including, without
limitation, environmental and tax liens), charge, encumbrance, adverse claim or restriction on use
or transfer.
“Escrow Agent” shall be defined at a later date.
“Final Approval Order” shall mean an order of the BPU authorizing the Buyer and the City
to consummate the purchase of assets as contemplated by this Agreement; and as to which the time
for filing an appeal as of right has expired, and as to which there are no appeals, petitions for
reconsideration, petitions for re-argument, or similar petitions pending.
“Governmental Authority” means any federal, state, regional, or local legislative,
executive, judicial or other governmental board, agency, authority, commission, administration,
court or other body, or any official thereof having jurisdiction.
“Monetary Liens” shall mean (a) judgment liens and tax liens entered against the City and
encumbering any part of the Water System, and (b) mortgages, security interests and other liens
granted by the City and encumbering the Water System.
7
“NJDEP” means the New Jersey Department of Environmental Protection or any successor
agency.
“Party” shall mean either the City or the Buyer.
“Parties” shall mean the City and the Buyer.
“Permits” shall mean all permits, certificates, licenses, orders, registrations, franchises,
authorizations and other rights and approvals from any governmental authority with respect to the
Water System held by the City.
“Person” means an individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a
governmental entity (or any department, agency, or political subdivision thereof).
“Permitted Encumbrances” shall have the meaning set forth in Article VI.
“Purchase Price” has the meaning set forth in Section 4.3 below.
“RFB” means the Request for Bids for the sale of the Water System issued by the City on
February 12, 2026 and responded to by the Buyer.
“Transaction Documents” means collectively this Agreement and all agreements,
documents, and certificates required by this Agreement.
“Transaction Costs Payment” has the meaning set forth in Section 4.4 below.
8
ARTICLE II - REPRESENTATIONS AND WARRANTIES OF THE CITY
Section
2.1.
REPRESENTATIONS
AND
WARRANTIES
OF
THE
CITY. Except as set forth in the disclosure schedule accompanying this Agreement and initialed by
the Parties (the “Disclosure Schedule”), which is attached as Exhibit H, the City represents and
warrants to the Buyer that the statements contained in this Article II are correct and complete as of
the date of this Agreement. The Disclosure Schedule will be arranged in paragraphs corresponding
to the lettered paragraphs contained in this Article II.
(A)
Organization of the City. The City is a public body corporate and politic in Union
County in the State of New Jersey.
(B)
Authorization of Transaction. The City has full right and authority to execute and
deliver this Agreement and to perform its obligations hereunder.
(C)
Title. To the best of its knowledge, the City is the sole owner of all assets and each
fee parcel of real property included in the Water System, and leasehold interest,
license or easement in all other real property in the Water System.
(D)
No Litigation. To the best of the City’s knowledge, there is no litigation, either at law
or in equity, nor any proceedings before any commission or regulatory body
pending, or threatened against the City, in any way that would adversely affect its
ability to perform its obligations under the Agreement.
(E)
No Default. To the best of the City’s knowledge, the City is not in default of any
provisions of law, charter, by-laws, contract, franchise, rules or regulations of any
governmental agency or any instrument to which it is a party and which in any way
affects the Water System.
(F)
System Compliance. The Water System is in compliance with all State, federal, and
local laws and regulations.
(G)
Rates. The rates, attached as Exhibit D, represents the true rates of the Water System
as are in effect as of the Contract Date.
Section 2.2.
DISCLAIMER OF OTHER REPRESENTATIONS AND
WARRANTIES. Except for representations and warranties as expressly set forth in this Article II,
the City makes no other representation or warranty, express or implied, at law or in equity, with
respect to the Water System or operations, including with respect to merchantability or fitness for
any particular purpose and any such other representations or warranties are hereby expressly
disclaimed. The Buyer hereby acknowledges and agrees that, except for the representations and
warranties specifically set forth in this Article II, the Buyer is purchasing the Water System on an
“as-is, where-is” basis. The Buyer has satisfied itself in all aspects of the Water System, including
but not limited to all physical, economic, operational, regulatory, tax and title matters that the Buyer
deems relevant, and is not relying on any representation of the City in connection therewith except
for the representations and warranties set forth in this Agreement. The City shall not be liable for
any latent or patent defects in the Water System.
9
Section 2.3. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
of the representations and warranties made by the City are true and correct as of the date of this
Agreement and shall be true and correct and deemed repeated as of Closing, subject to the
Disclosure Statement as same may be modified by the terms of this Agreement. No claim for a
misrepresentation or breach of warranty of the City shall be actionable or payable if the breach in
question results from or is based on a condition, state of facts or other matter which was known to
the Buyer prior to the Closing. None of the representation and warranties made by the City shall
survive the Closing.
ARTICLE III - REPRESENTATIONS AND WARRANTIES OF THE BUYER
Section 3.1. REPRESENTATIONS AND WARRANTIES OF THE BUYER.
Except as set forth in the Disclosure Schedule, the Buyer represents and warrants to the City that
the statements contained in this Article III are correct and complete as of the date of this Agreement.
The Disclosure Schedule will be arranged in paragraphs corresponding to the lettered paragraphs
contained in this Article III.
(A)
Organization of Buyer. The Buyer is a corporation duly organized, validly existing
and in good standing under the law of the State of [New Jersey].
(B)
Authorization of Transaction. The Buyer has full right and authority to execute and
deliver this Agreement and to perform its obligations hereunder.
(C)
No Litigation. To the best of the Buyer’s knowledge, there is no litigation, either at
law or in equity, nor any proceedings before any commission or regulatory body
pending, or threatened against the Buyer, in any way that would affect its ability to
perform its obligations under this Agreement.
(D)
No Warranties. The Buyer is purchasing the Water System “as is”, and that the
Buyer will have no recourse against the City with respect to any condition of the
Water System that might be discovered after the Closing.
(E)
Right to Inspect. Prior to the Contract Date, the Buyer has been afforded the
opportunity to inspect and has inspected the Water System to the extent that the
Buyer deemed necessary and has made such examination of the Water System, the
operation, income and expenses thereof and all other matters affecting or relating
to this transaction as Buyer deemed necessary. In entering into this Contract, the
Buyer has not been induced by and has not relied upon any representations,
warranties or statements, whether express or implied, made by the City or any agent,
employee or other representative of the City or by any broker or any other person
representing or purporting to represent the City, which are not expressly set forth
in this Contract, whether or not any such representations, warranties or statements
were made in writing or verbally.
(F)
Other Limitations of Local, State, and Federal Laws and Regulations. The Buyer
accepts the terms of this Agreement subject to the terms and limitations of all
applicable local, State, and federal laws, statutes, rules and/or regulations.
10
(G)
Source of Funds. The funds comprising the Purchase Price to be delivered to the
City in accordance with this Contract are not derived from any illegal activity.
(H)
Not a Blocked Person. The Buyer is not a, and is not acting directly or indirectly
for or on behalf of any, person, group, entity or nation named by Executive Order
of the United States Treasury Department as a terrorist, “Specifically Designated
National and Blocked Person,” or other banned or blocked person, entity, nation or
transaction pursuant to any law, order, rule or regulation that is enforced or
administered by the Office of Foreign Assets Control and the Buyer is not engaged
in this transaction, directly or indirectly, on behalf of, or instigating or facilitating
this transaction, directly or indirectly, on behalf of any such person, group, entity or
nation.
(I)
No Obligation of City to Implement Improvements. Neither the Buyer’s bid nor the
Buyer’s obligations herein, are conditioned upon the implementation of any
improvements to be made by the City and the Buyer acknowledges and agrees that
the City has no obligation to implement any improvements nor is the City precluded
from making such improvements.
Section 3.2. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All of
the representations and warranties made by the Buyer are true and correct as of the date of this
Agreement and shall be true and correct and deemed repeated as of Closing, subject to the
Disclosure Statement as same may be modified by the terms of this Agreement.
ARTICLE IV - BASIC TRANSACTION
Section 4.1. PURCHASE AND SALE OF ASSETS. Subject to the terms and
conditions of this Agreement, at the Closing referred to in Section 4.6, the City will sell to the
Buyer, and Buyer will buy from the City, all of the City’s rights, title, and interest in the Water
System as further described in Exhibit A for the consideration specified below in Section 4.3.
Section 4.2. EXCLUDED ITEMS. Except as specifically described in Exhibit A,
in no event shall the Water System include personal property, office equipment, office supplies,
vehicles, cash, securities, and the accounts receivable of the City relating to the Water System up to
and including the Closing Date.
Section 4.3. PURCHASE PRICE. The Buyer agrees, subject to the terms and
conditions set forth in this Agreement, to pay to the City the sum of [($ )] (the “Purchase Price”).
Upon the execution of this Agreement, the Buyer shall pay the Deposit to be held by Escrow Agent
pursuant to the terms of the Escrow Agreement, with any interest or earnings to follow the Deposit,
and which Deposit shall be credited against the Purchase Price. Subject to the terms and conditions
of this Agreement, the balance of the Purchase Price less the Deposit, increased or decreased by
the items to be apportioned pursuant to Section 4.8 of this Agreement (such sum, before the
apportionments referred to herein is referred to as the “Closing Balance” and after such
apportionments is referred to as the “Adjusted Closing Balance”) shall be paid on the Closing Date
by wire transfer in federal funds to a bank account designated in writing by the City at least five
(5) business days prior to the Closing Date.
11
Section 4.4. CITY TRANSACTION EXPENSE. Notwithstanding any obligations
of the City set forth in the Agreement to solely bear its expenses and costs in connection herewith,
and in addition to the Purchase Price provided for in Section 4.3, the Buyer agrees to pay the City
$250,000 for costs and expenses incurred and reasonably anticipated to be incurred by the City in
connection with the sale of the Water System, including, but not limited to, attorney, engineering,
inspection, and other consultant costs (collectively the “Transaction Costs Payment”). The Buyer
agrees to pay the City thirty percent ($75,000) of the Transaction Costs Payment upon the passing
of the City Ordinance approving the sale of the Water System, which amount shall be non-
refundable. The Buyer agrees to pay the City the remaining seventy percent ($175,000) of the
Transaction Costs Payment upon Closing.
Section 4.5. ADDITIONAL OBLIGATIONS. In addition to the payment of the
amounts set forth in Sections 4.3 and 4.4 hereof, the Buyer agrees to:
(A)
assume responsibility for all claims and liabilities relating to the Water
System that arise subsequent to the Closing;
(B)
assume and meet all contractual commitments of the City on and after the Closing
Date in connection with the contracts set forth in Exhibit E (collectively,
(A) and (B) constitute the “Assumed Liabilities”);
(C)
comply with the Rate Stabilization Covenant set forth in Section 8.3;
(E)
provide the customers of the Water System with continuous, safe and reliable
service in accordance with applicable laws and regulations, and the Buyer’s rate as
approved by the BPU;
(F)
maintain or expand the Water System in conformance with existing City land use
and zoning ordinances, master plan, and historic district standards, as applicable; and
(G)
make application for the transfer, effective at the Closing, of all water system
permits and approvals issued to the City prior to Closing by the NJDEP or any other
local, State or federal agency.
Section 4.6. THE CLOSING. The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take place at the offices of TO BE DETERMINED forty-five
(45) days after the satisfaction of the last condition to be satisfied pursuant to Article VII herein (the
"Closing Date"). The Parties may mutually agree in writing to have the Closing at another time or
place.
Section 4.7. DELIVERIES AT THE CLOSING. At the Closing:
(A)
The City will execute, acknowledge (if appropriate), and deliver to the Buyer:
(i)
a bargain and sale deed associated with the Water System without covenant
against grantor's acts, in recordable form, duly executed by the City;
(ii)
an assignment of easements in the form attached hereto as Exhibit F, to
convey all easement rights associated with the Water System, subject to the
12
Permitted Encumbrances;
(iii)
a Bill of Sale in the form attached hereto as Exhibit C;
(iv)
an Assignment and Assumption Agreement in the form attached hereto as
Exhibit B;
(v)
a General Assignment in the form attached hereto as Exhibit G;
(vi)
a Settlement Statement;
(vii)
a certified copy of the appropriate City resolution(s) and/or ordinances
authorizing the transactions contemplated hereunder;
(viii) a signed certification by the City that
the
warranties
and
representations in Article II are true and correct as of the Closing Date;
(ix)
originals or copies of all governmental permits and licenses for the System,
or any component thereof, in the City’s possession, to the extent
transferable;
(x)
Any other tax information regarding the City that the Settlement Agent (as
that term is used in Section 6045 of the IRS Code) is required to report to the
Internal Revenue Service pursuant to the Code;
(xi)
Such other resolutions, instruments, affidavits and documents as may be
reasonably necessary to effectuate the transaction.
(B)
Buyer will execute, acknowledge (if appropriate) and deliver to City:
(i)
an assignment of easements in the form attached hereto as Exhibit F, to
convey all casement rights associated with the Water System, subject to the
Permitted Encumbrances;
(ii)
an Assignment and Assumption Agreement in the form attached hereto as
Exhibit B;
(iii)
a General Assignment in the form attached hereto as Exhibit G;
(iv)
a Settlement Statement;
(v)
Certified copy of appropriate corporate resolution(s) authorizing the
transactions contemplated hereunder;
(vi)
a signed certification by Buyer that the warranties and representations in
Article III are true and correct as of the Closing Date;
(vii)
Any tax information regarding Buyer that the Settlement Agent (as that term
is used in Section 6045 of the IRS Code) is required to report to the Internal
13
Revenue Service pursuant to the Code;
(viii) The Purchase Price;
(ix)
The balance of the Transaction Costs Payment ($175,000); and
(x)
Such other documents, resolutions, instruments, affidavits and documents
as may be reasonably necessary to effectuate the transaction.
Section 4.8. APPORTIONMENTS. At the Closing, real estate taxes, if any, for the
fee parcels constituting Water System assets to be transferred to the Buyer and all other operating
expenses for the Water System allocable to periods before and after the Closing Date, shall be
apportioned for the Water System as of 11:59 p.m. on the day preceding the Closing Date.
Section 4.9. SETTLEMENT STATEMENT. At the Closing, the parties shall jointly
execute the Settlement Statement setting forth all adjustments to the Purchase Price and the basis
for same. In the event that any adjustments or apportionment cannot be apportioned or adjusted at
the Closing by reason of the fact that final amounts have not been ascertained, or are not available
as of such date, the parties hereto agree to apportion or adjust such items on the basis of their best
estimates of the amounts known at the Closing and to re-prorate any and all of such amounts
promptly when the final amounts are ascertained, which obligation shall survive the Closing.
ARTICLE V - PRE-CLOSING COVENANTS
Section 5.1. PRE-CLOSING COVENANTS. The Parties agree as follows with
respect to the period between the execution of this Agreement and the Closing:
(A)
General. Each of the Parties will use its reasonable best efforts to take all actions
and to do all things necessary, proper, or advisable in order to consummate and make
effective the transactions contemplated by this Agreement and the Transaction
Documents.
(B)
Access to Books. Upon reasonable prior notice, the City will give the Buyer, its
accountants, engineers, counsel and other representatives full access during normal
business hours throughout the period from the date of this Agreement through the
Closing Date to all of the City’s records, books, and properties with respect to the
Water System, including, without limitation, all customer usage data and will
furnish the Buyer copies, including in electronic format reasonably acceptable to the
Buyer, at the Buyer's expense, of such documents or portions of documents related
to the ownership, operation and maintenance of the Water System as the Buyer may
reasonably request, provided such documents and electronic media are in the City’s
possession or in the possession of third parties under contract with the City.
(C)
Permits. Prior to the Closing, the Parties shall cooperate to effect the transfer of all
Permits related to the operation of the Water System which were granted to the City
by any Governmental Authority, which transfer shall be effective on or after but not
before the Closing. The City shall provide reasonable assistance to the Buyer as
reasonably requested by the Buyer with respect to such applications.
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(D)
Operation of Water System. The City will:
(i)
continue to operate and maintain the Water System;
(ii)
maintain the Water System in at least as good order and condition as existed
on the date of this Agreement, casualty and normal wear and tear;
(iii)
timely comply with the provisions of all leases, agreements, and contracts
relating to the Water System; and
(E)
BPU Approvals.
(i)
The Buyer shall as soon as reasonably practicable after the execution of this
Agreement by both Parties, at its sole cost and expense, file or cause to be
filed all necessary documentation with the BPU to obtain the approvals
required for the sale of the Water System to the Buyer.
(F)
City Consent. The Buyer shall be responsible, at its sole cost and expense, with
reasonable assistance from the City, for obtaining BPU approval of the City
Consent pursuant to N.J.S.A. 48:2-14.
(G)
Risk of Loss. The Parties agree that the City shall bear the risk of and be responsible
for loss with respect to the assets and properties constituting the Water System from
the date of this Agreement through the Closing Date. In event that the condition of
the Water System is significantly adversely changed from the date of this
Agreement to the Closing Date by virtue of fire, casualty, act of God or
condemnation, the City and the Buyer may mutually agree, in writing, to a reduction
in Purchase Price or other consideration as compensation for the significant adverse
change in the System. If the City and the Buyer cannot reach agreement within sixty
(60) days of the event despite good faith efforts, either party has the option to
terminate this Agreement upon written notice to the other Party. If the Buyer
terminates the Agreement pursuant to this section, the City shall promptly, and in no
event later than five (5) business days after such termination, repay to the Buyer,
the Deposit, and upon such termination this Agreement shall be deemed canceled,
null and void and neither Party shall have any further obligation or liability to the
other hereunder.
(H)
Customer List and Information; Final Bills. The City shall provide or cause to be
provided to the Buyer a full and complete customer list for the Water as of the date
of the execution of the Agreement by both parties, together with an electronic data
file, in a format reasonably satisfactory to the Buyer, containing such customer
information; such list and electronic file are to be updated by the City and provided
to the Buyer within 60 days before the Closing or as otherwise agreed to between
the Parties. The Parties shall agree no later than 60 days before the Closing to a
process and method for the final billing of the Water System customers and any
appropriate adjustment to the Purchase Price pursuant to Section 4.8.
(I)
Publicity. The Parties agree to cooperate on any formal public announcement or
15
statement regarding this Agreement or the transactions contemplated herein. Each
Party shall make a good faith effort to provide the other with advance notice of the
proposed content of any public announcement or statement.
(J)
Identification of Contracts to be Assigned. As set forth in Section 4.5(C), the Buyer
must assume the City’s obligations on and following the Closing Date for those
agreements set forth in Exhibit E.
(K)
Buyer Access. The City shall provide the Buyer, at the Buyer’s sole cost, reasonable
access to the Water System from the Contract Date until the Closing Date for
purposes including, but not limited to, examination of customer accounts,
ordinances, deeds, contracts, maps, and plans; inspection and tests of plant and
equipment; and surveys of the real property comprising the Water System and
easements. The Buyer hereby agrees to indemnify and hold the City harmless from
any and all claims, demands, suits, actions, damages, liabilities, or expenses with
respect to or arising from the Buyer’s access to the Water System during this period.
The Buyer’s rights under this Section shall be exercised during normal business hours, with
reasonable notice and shall not interfere with the City’s continuing operation of the Water
System. The City shall cooperate with the Buyer with respect to such access to ensure a
smooth transition in ownership of the Water System.
(L)
Confidentiality. Any information provided by the City to the Buyer regarding the
City’s customers and the Water System that is not generally available to the public
shall remain confidential.
(M)
Cooperation During Transition. Generally, the parties shall cooperate to facilitate a
smooth transition, and the Buyer shall not do anything that will interfere with the
City’s operation and administration of the Water System.
(N)
Referendum Education Campaign. The Buyer shall provide reasonable assistance
to the City in connection with its public referendum education campaign.
ARTICLE VI - TITLE AND CONDITION OF SYSTEMS
Section 6.1. TITLE. Title to the Water System shall be conveyed by the City
to the Buyer at the Closing free and clear of all Encumbrances, subject only to the Permitted
Encumbrances. “Permitted Encumbrances” means any and all:
(A)
matters disclosed by the Property Information Materials (as defined in Section 6.2
hereof);
(B)
matters that become Permitted Encumbrances in accordance with the provisions of
this Article VI;
(C)
matters that would be revealed by a physical inspection of or a complete and
accurate survey, of the real property comprising the Water System;
(D)
rights of way and easements that do not materially interfere with the existing use of
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the real property comprising the Water System;
(E)
zoning and other governmental restrictions; and
(F)
taxes, assessments and other public charges on real property comprising the Water
System not due as of the Closing Date, provided, however, in no event shall
Permitted Encumbrances include Monetary Liens. With respect to the real property
comprising the Water System, Buyer shall within five (5) business days of execution
of this Agreement apply for an owner's title insurance policy or policies from a
reputable title insurance company licensed to do business in New Jersey (the
“Commitment”). Within five (5) business days after receipt of the Commitment, the
Buyer shall notify the City of any objections, other than the Permitted
Encumbrances. Any matters set forth on the Commitment and not objected to by the
Buyer within said five (5) day period shall become Permitted Encumbrances
hereunder. The City may elect to cure any title defect by so notifying the Buyer. If the
City does not so elect within twenty (20) days after notice of the objection, or if
after so electing, the City fails to cure the defect(s) prior to the Closing, then the
Buyer's sole remedy shall be to close without any reduction in the Purchase Price or
to terminate this Agreement upon notice to the City, said notice to be delivered
within seven (7) days of the City’s failure to so elect or, if the City elects to cure but
does not, to be delivered at the Closing. If the Buyer terminates the Agreement
pursuant to this section, the City shall promptly, and in no event later than 5 business
days after such termination, repay to the Buyer the Deposit, and upon such
termination this Agreement shall be deemed canceled,
null and void and neither Party shall have any further obligation or liability to the
other hereunder.
Section
6.2.
PROPERTY
INFORMATION
MATERIALS.
The
Buyer
acknowledges that prior to the Buyer's execution of this Agreement, the City delivered or made
available to the Buyer and the Buyer reviewed the materials and information concerning the Water
System provided as part of the RFB (collectively, "Property Information Materials"). The Buyer
acknowledges and understands that the Property Information Materials may have been prepared by
parties other than the City and that the City makes no representation or warranty whatsoever,
express or implied, as to the content, completeness, or accuracy of the Property Information
Materials. The Buyer specifically releases the City from all claims, demands, causes of action,
judgments, losses, damages, liabilities, costs and expenses (including attorney’s fees whether suit
is instituted or not) – whether known or unknown, liquidated or contingent (collectively,
“Claims”), asserted against or incurred by the Buyer by reason of the information contained in, or
that should have been contained in, the Property Information Materials or any inconsistency
between such information and any representation or warranty of the City contained in this Contract.
However, the foregoing release shall not apply to any Claims resulting from any intentional
misstatements or willful misconduct on the part of the City.
Section 6.3. CONDITION OF THE SYSTEMS. Subject to the terms and conditions
of this Agreement, and the representations and warranties contained in the other Transaction
Documents, the Buyer has agreed to purchase the Water System in its "AS-IS" condition, including
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its environmental condition, operating condition, and condition of repair. The Buyer acknowledges
that the Buyer has had and/or has been given, pursuant to the RFB, an adequate opportunity to
make such legal, factual, and other inquiries and investigation as the Buyer deems necessary,
desirable, or appropriate with respect to the Water System. The Buyer has satisfied itself on all
aspects, without limitation, of the Water System and is not relying on any representation of the
City in connection therewith except for the representations and warranties contained in this
Agreement and the other Transaction Documents.
ARTICLE VII - CONDITIONS TO OBLIGATION TO CLOSE
Section 7.1. CONDITIONS TO OBLIGATION OF THE BUYER. The obligation
of the Buyer to perform its obligations in connection with the Closing is subject to the satisfaction
or waiver by the Buyer of the following conditions:
(A)
the representations and warranties set forth in Article II of this Agreement and the
other Transaction Documents shall be true and correct in all material respects as of
the Closing Date;
(B)
the City shall have performed and complied with all of its covenants hereunder in all
material respects through the Closing;
(C)
there shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this
Agreement and the Transaction Documents;
(D)
the Buyer shall have secured from the City, the BPU, NJDEP, and all other
applicable governmental and quasi-governmental entities, all authorizations and
approvals required for the transfer of the Water System to the Buyer, including but
not limited to the NJDEP Permits, if necessary (the “Approvals”). The Parties shall
use all reasonable efforts to obtain the Approvals and to do so as expeditiously as
reasonably possible. In connection with the Approvals, the Buyer shall deliver to
the City or cause to be delivered to the City, through addition(s) to the applicable
service list(s), copies of all correspondences to and from the bodies with whom the
applications have been filed or will be filed. The City covenants to cooperate with
the Buyer, at the Buyer’s cost and expense, in the Buyer's efforts to obtain the
Approvals and to promptly consent, when required by law, to all applications for
the Approvals filed by the Buyer. The Buyer shall immediately notify the City in
writing of any determinations made by any authority considering any application;
and
Section 7.2. CONDITIONS TO OBLIGATION OF THE CITY. The
obligation of the City to perform its obligations in connection with the Closing is subject to
satisfaction or waiver by the City of the following conditions:
(A)
the representations and warranties set forth in Article III of this Agreement and in
the other Transaction Documents shall be true and correct in all material respects as
of the Closing Date;
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(B)
the Buyer shall have performed and complied with all of its covenants hereunder in
all material respects through the Closing;
(C)
there shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this
Agreement or the Transaction Documents;
(D)
the Buyer shall have secured from the City, the BPU, NJDEP, and all other
applicable governmental and quasi-governmental entities, all authorizations and
approvals required for the transfer of the Water System to the Buyer, including but
not limited to the NJDEP Permits, if necessary (the “Approvals”). The Parties shall
use all reasonable efforts to obtain the Approvals and to do so as expeditiously as
reasonably possible. In connection with the Approvals, the Buyer shall deliver to
the City or cause to be delivered to the City, through addition(s) to the applicable
service list(s), copies of all correspondences to and from the bodies with whom the
applications have been filed or will be filed. The City covenants to cooperate with
the Buyer, at the Buyer’s cost and expense, in the Buyer's efforts to obtain the
Approvals and to promptly consent, when required by law, to all applications for
the Approvals filed by the Buyer. The Buyer shall immediately notify the City in
writing of any determinations made by any authority considering any application;
and
(E)
the City shall have obtained any necessary consents and releases for the assignment
and assumption of the assumed liabilities as defined in Exhibit B.
Section 7.3. SCHEDULE FOR CLOSING CONDITIONS. The Buyer
shall promptly initiate and complete its conditions of Closing set forth in Section 7.2,
provided, however, that all such conditions must be met no later than the date that is nine
(9) months following the date of this Agreement. In the event that all such Closing
conditions are not completed by such date notwithstanding the Company’s good faith
efforts, the City shall have the right to terminate this Agreement and keep the Deposit
and the $75,000 portion of the Transaction Costs Payment that had been paid to the City
upon the passing of the City Ordinance approving the sale.
ARTICLE VIII - POST-CLOSING OBLIGATIONS OF BUYER
Section 8.1. CONTINUATION OF WATER SERVICES. The Buyer shall continue
to provide services in accordance with the Customer Service Standards and the Customer Service
Plan described in Exhibit J and shall guarantee the distribution, conveyance, and treatment of
water to the customers of the Water System in a manner that meets all local, state, and federal laws
and regulations relating to the distribution, conveyance and treatment of water and shall operate
and maintain the Water System to provide safe, reliable and adequate service.
Section 8.2. MAINTENANCE, REPAIRS, AND REPLACEMENT. The Buyer
shall perform, at its own expense, all maintenance, repair, and replacement of the machinery,
equipment, structures, improvements, and all other property and components constituting the
Water System. The Buyer shall provide or make provisions for all labor, materials, supplies,
19
equipment, spare parts, and services which are necessary for the normal and ordinary maintenance
of the Water System and shall conduct predictive, preventive, and corrective maintenance of the
Water System as required by applicable law.
Section 8.3. RATE STABILIZATION COVENANT. On and after the Closing Date,
the Buyer shall adopt and charge rates and charges to City customers in accordance with the 2026
rates and charges as set forth in Exhibit D.
The 10-year binding rate schedule must reflect that rates will not be increased (0%) for Years
1 and 2 and by no more than 3% each year for the first 10-years.
Rate Schedule (Years 1 through 10)
Year
Water Rate Increase
1
0%
2
0%
3
Max 3%
4
Max 3%
5
Max 3%
6
Max 3%
7
Max 3%
8
Max 3%
9
Max 3%
10
Max 3%
The existing City rate structure includes a discount for seniors (currently 41 customers are
enrolled). The Buyer will be required to continue this senior discount program for all eligible senior
citizens who are enrolled in the program as of the close date. Senior that meets the IRS Tax savings
requirements are eligible to join the program.
Section 8.4. WATER PRESSURE. The Buyer shall maintain the water pressure
levels in the Water System at the levels existing in the Water System as of the Closing Date.
Section 8.5. SERVICE TO CITY FACILITIES. The Buyer shall provide free water
service to City offices and public and quasi-public facilities located in the service area which are
currently provided such services (as well as any future facilities), including but not limited to the
following.
Municipal Buildings:
o 1 City Hall Plaza – City Hall/Police Department
o City Hall Plaza – Library (Partial)
o City Hall Plaza – Recreation Center
o 1300 Main Street – Fire Department Headquarters
o 619 Maple Avenue – Fire Station 2
o 1306 Esterbrook Ave – Senior Citizen Center
o 125 West Milton Avenue - Senior Center
o 999 Hart Street – Public Works
o Block 227, Lot 6, Dog Park at Wheatena Park on Elizabeth
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Avenue
o All City Parks with water facilities
i. Madden Field
ii. Brennan Splash Park
iii. MLK Park – Dog Park
School Properties:
o Block 104, Lot 1; 811 St. Georges Avenue (Roosevelt)
o Block 132, Lot 33; 1012 Madison Avenue (High School)
o Block 132, Lot 34; 944 Madison Avenue (Madsion)
o Block 189, Lot 32; Kline Place (Rahway Academy)
o Block 211, Lot 1.01; 1809 St. Georges Avenue (Franklin)
o Block 369, Lot 21.01; 486 E. Milton Avenue (Grover Cleveland)
Section 8.6. ADDITIONAL CONDITIONS OF SALE. As of the Closing Date, the
Buyer shall grant the City, at no cost, a perpetual license to continue utilizing the portions of the
Water System where certain mobile carriers’ equipment is located. In addition, as of the Closing Date,
the Buyer shall grant the City, at no cost, a perpetual license to use wells 1-4 for irrigation purposes
at the City Recreation Center.
Section 8.7 SURVIVAL. The obligations set forth in this Article VIII shall survive
closing.
ARTICLE IX - REMEDIES FOR BREACHES OF THIS AGREEMENT
Section 9.1. PRE-CLOSING DEFAULT BY THE BUYER. In the event that the
Buyer materially breaches or defaults under this Agreement before the Closing hereunder, and such
material breach or default continues for ten (10) business days after written notice from the City to
the Buyer specifying such material breach or default, the City shall have the right as its sole remedy
to terminate this Agreement and retain the Deposit and the $75,000 portion of the Transaction Costs
Reimbursement paid to the City upon the passing of the Ordinance approving the sale as liquidated
damages. The City’s rights and remedies pursuant to this Section 9.1 shall survive any termination
of this Agreement by the City as a result of the Buyer's default.
Section 9.2. PRE-CLOSING DEFAULT BY THE CITY. In the event that the City
materially breaches or defaults under this Agreement before Closing and such material breach or
default continues for fifteen (15) business days after written notice from the Buyer to the City
specifying such material breach or default the Buyer shall have the right as its sole remedy to either
seek to enforce the Agreement by an action for specific performance (but not an action for
damages) or to terminate this Agreement and have the Deposit returned. The Buyer's rights and
remedies pursuant to this section shall survive any termination of this Agreement by the Buyer as a
result of the City’s default.
Section 9.3. POST-CLOSING DEFAULTS. In the event that either party materially
breaches or defaults under this Agreement or the Transaction Documents after the Closing, and
such material breach or default continues for fifteen (15) business days after written notice from
the non-defaulting party to the defaulting party specifying such material breach or default, the non-
21
defaulting party shall have the right to seek any available remedies at law or equity.
ARTICLE X - ESCROW AGENT
Section 10.1. ESCROW. The Deposit shall be held by the Escrow Agent, in trust,
for the benefit of the Parties as their interests appear hereunder under the Escrow Agreement
attached hereto and incorporated herein by reference as Exhibit I.
ARTICLE XI - NON-BINDING MEDIATION; FORUM FOR DISPUTE RESOLUTION
Section 11.1. RIGHTS TO REQUEST AND DECLINE NON-BINDING
MEDIATION. Either party may request non-binding mediation of any dispute arising under this
Agreement. The non-requesting party may decline the request in its sole discretion. If there is
concurrence that any particular matter shall be mediated, the provisions of this Article shall apply.
The costs of such non-binding mediation shall be divided equally between the City and the Buyer.
Section 11.2. PROCEDURE. The mediator shall be a professional engineer,
attorney or other professional mutually acceptable to the parties who has no current or on-going
relationship to either party. The mediator shall have full discretion as to the conduct of the
mediation. Each party shall participate in the mediator’s program to resolve the dispute until and
unless the parties reach agreement with respect to the disputed matter, or one party determines in
its sole discretion that its interests are not being served by the mediation.
Section 11.3. NON-BINDING EFFECT. Mediation is intended to assist the parties
in resolving disputes over the correct interpretation of this Agreement. No mediator shall be
empowered to render a binding decision.
Section 11.4. RELATION TO JUDICIAL LEGAL PROCEEDINGS. Nothing in
this Article shall operate to limit, interfere with, or delay the right of either party under this Article
to commence judicial legal proceedings upon a breach of this Agreement by the other party,
whether in lieu of, concurrently with, or at the conclusion of any non-binding mediation.
Section 11.5. FORUM FOR DISPUTE RESOLUTION. It is the express intention
of the parties that all legal proceedings related to this Agreement or to the Water System or to any
rights or any relationship between the parties arising therefrom shall be solely and exclusively
initiated and maintained in the applicable State courts located in Union County, New Jersey.
ARTICLE XII - INDEMNIFICATION
Section 12.1. INDEMNIFICATION BY THE BUYER. The Buyer shall indemnify,
defend and hold harmless, including paying all attorneys’ fees, the City, and its elected officials,
employees, representatives, agents, consultants and contractors (each, a “City Indemnitee”), from
and against any and all third-party claims, demands, suits, actions, damages, liabilities or expenses
arising from or alleged to arise from or in connection with: (1) any material breach of any
representation or warranty; (2) the ownership or operation of the Water System subsequent to the
Closing Date; (3) any failure by the Buyer to perform its obligations under this Agreement; and (4)
the negligent acts, errors or omissions or willful misconduct of the Buyer or any of its officers,
directors, employees, agents, representatives or subcontractors in connection with this Agreement.
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Section 12.2. THIRD PARTY CLAIMS. An Indemnitee shall give the Indemnitor notice
of any matter which an Indemnitee has determined has given or could give rise to a right of
indemnification under this Agreement (an “Indemnified Claim”) within sixty (60) days of such
determination, stating the amount of the Losses, if known, the method of computation thereof, and
containing a reference to the provisions of this Agreement from which such right of indemnification
is claimed or arises. If the Indemnitor acknowledges in writing that its obligation to indemnify the
Indemnitee hereunder against any Losses that may result from such Indemnified Claim, then the
Indemnitor shall be entitled to assume and control the defense of such Indemnified Claim at its
expense and through counsel of its choice if it gives notice of its intention to do so to the Indemnitee
within five (5) days of the receipt of such notice from the Indemnitee. In the event the Indemnitor
exercises the right to undertake any such defense against any such Indemnified Claim as provided
above, the Indemnitee shall cooperate with the Indemnitor in such defense and make available to
the Indemnitor, at the Indemnitor’s expense, all witnesses, pertinent records, materials and
information in the Indemnitee’s possession or under the Indemnitee's control relating thereto as is
reasonably required by the Indemnitor. Similarly, in the event the Indemnitee is, directly or
indirectly, conducting the defense against any such Indemnified Claim, the Indemnitor shall
cooperate with the Indemnitee in such defense and make available to the Indemnitee, at the
Indemnitor’s expense, all such witnesses, records, materials and information in the Indemnitor’s
possession or under the Indemnitor's control relating thereto as is reasonably required by the
Indemnitee. No such Indemnified Claim may be settled by the Indemnitor without the prior written
consent of the Indemnitee which shall not be unreasonably withheld. If the Indemnitor fails to
acknowledge its indemnity obligation within the time period provided above then the Indemnitee
may undertake its own defense without waiving its right to seek indemnity hereunder, including
reimbursement of any defense costs incurred.
Section 12.3. NO OTHER DAMAGES. Other than in connection with third party claims,
in no event shall either Party be liable to the other for any reason under this Agreement or any other
Transaction Document for any form of special, incidental, indirect, consequential, or punitive
damages of any kind (whether or not foreseeable), even if informed in advance of the possibility
of such damages, and whether arising in contract, tort (including negligence), or otherwise.
ARTICLE XIII - MISCELLANEOUS
Section 13.1. THIRD PARTY BENEFICIARIES. Neither this Agreement nor any
Transaction Document shall confer any rights or remedies upon any Person other than the Parties
and their respective successors and permitted assigns.
Section 13.2. ENTIRE AGREEMENT. This Agreement (including the other
Transaction Documents), constitutes the entire agreement between the Parties and supersedes any
prior understandings, agreements, or representations by or between the Parties, written or oral, to
the extent they related in any way to the subject matter of any such agreement or document.
Section 13.3. SUCCESSION AND ASSIGNMENT. This Agreement and each
Transaction Documents shall be binding upon and inure to the benefit of the Parties named herein
and their respective successors and permitted assigns. Neither party shall assign this Agreement to
any Person without the other party’s prior written consent.
23
Section 13.4. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together will constitute
one and the same instrument.
Section 13.5. HEADINGS. The article and section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.
Section 13.6. NOTICES. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given if it is sent by registered or certified mail,
return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:
If to City:
City Clerk
City of Rahway
1 City Hall Plaza
Rahway, New Jersey 07065
Copy to:
Copy ATTORNEY
ADDRESS
24
If to Buyer
[_]
Copy to:
[_]
Any Party may send any notice, request, demand, claim, or other communication hereunder to the
intended recipient at the address set forth above using any other means (including personal delivery,
expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no
such notice, request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it is actually received by the intended recipient. Any Party may change the
address to which notices, requests, demands, claims, and other communications hereunder are to
be delivered by giving the other Party notice in the manner herein set forth.
Section 13.7. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of New Jersey without giving effect
to any choice or conflict of law provision or rule (whether of the State of New Jersey or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
New Jersey.
Section 13.8. AMENDMENTS AND WAIVERS. No amendment of any provision
of this Agreement shall be valid unless the same shall be in writing and signed by the Buyer and
the City. No waiver by any Party of any default, misrepresentation, breach of warranty, or breach
of covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, breach of warranty, or breach of covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such occurrence.
Section 13.9. SEVERABILITY. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or enforceability of the
offending term or provision in any other situation or in any other jurisdiction.
Section 13.10. EXPENSES. Subject to the City’s retention of the $75,000 portion
of the Transaction Costs Payment paid to the City upon the passage of the Ordinance approving the
sale (except as provided in Section 6.1), in the event the Closing does not occur, other than by
reason of a material default by one of the Parties, each Party shall bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement and the transactions
contemplated hereby.
Section 13.11. CONSTRUCTION. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and
no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the
authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The word “including” shall mean including
without limitation.
25
Section 13.12. VARIATIONS IN PRONOUNS. All pronouns and any variations
thereof refer to the masculine, feminine or neuter, singular or plural, as the identity of the person
or persons may require.
Section 13.13. INCORPORATION OF EXHIBITS AND SCHEDULES. The
Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made
a part hereof.
Section 13.14. TRANSFER TAXES. The Buyer shall be responsible for all transfer
taxes or other taxes applicable to the transaction, if any.
Section 13.15. TIME IS OF THE ESSENCE. Time is of the essence with regard to
all dates and time periods set forth or referred to in this Agreement.
Section 13.16. REVIEW OR AUDIT BY OFFICE OF THE STATE
COMPTROLLER. In accordance with N.J.S.A. 52:15C-14(d), Buyer shall maintain all
documentation related to products, transactions or services under this Agreement for a period of
five years from the Closing Date. Such records shall be made available to the New Jersey Office
of the State Comptroller upon request.
(Signature Page Follows)
26
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement of
the date first above written.
CITY OF RAHWAY
By:
Name:
Title:
[BUYER]
By:
Name:
Title:
A-1
EXHIBIT A DESCRIPTION OF THE WATER SYSTEM
Please refer to the T&M Associates January 2026 Water System Evaluation Report which is
attached to the RFB as Appendix A.
B-1
EXHIBIT B
FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS
ASSIGNMENT
AND
ASSUMPTION
AGREEMENT
(the
“Assignment and Assumption Agreement”) is made and entered into on [_] by and
between the City of Rahway, a public body corporate and politic in Union County in the
State of New Jersey (the “Assignor”) and [_], a [New Jersey] Corporation with principal
corporate offices at [_] (the “Assignee”). Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Agreement of Sale (as defined
below).
WHEREAS, Assignor and Assignee are parties to a certain Agreement of
Sale, dated [_], 2025 (the “Agreement”), providing for the sale by the Assignor of the
assets constituting the Water System to the Assignee; and
WHEREAS, the Assignor and the Assignee have agreed that on or prior to
the Closing, the Assignor shall assign, and Assignee shall assume, the Assumed
Liabilities, as more fully described herein.
NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants contained herein, and for other good and valuable consideration, the
receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties do
hereby agree as follows:
Section 1. ASSIGNMENT AND ASSUMPTION. Subject to the terms and
conditions of the Agreement of Sale, the Assignor hereby assigns, sells, transfers, and sets
over (collectively, the “Assignment”) to the Assignee all of Assignor's rights, obligations,
and liabilities relating to the Assumed Liabilities as more particularly set forth on Schedule
I attached hereto and made a part hereof. Subject to the terms and conditions of the
Agreement, the Assignee hereby accepts the Assignment and will assume, observe, and
perform all of the duties, obligations, terms, provisions, and covenants contained therein.
The Assignee shall also pay and discharge all of the obligations and liabilities of the
Assignor to be observed, performed, paid, or discharged in connection with the Assumed
Liabilities. To the extent that the Assignment contemplated by this Section 1 constitutes or
would be deemed to constitute a grant, sale, assignment, transfer, conveyance, or delivery,
or an attempted grant, sale, assignment, transfer, conveyance, or delivery to the Assignee
of any Assumed Liabilities, and such transaction would be prohibited by any applicable
law or would require any governmental or third party authorizations, approvals,
consents, or waivers, and such authorizations, approvals, consents, or waivers have not
been obtained prior to the date hereof, this Assignment and Assumption Agreement shall
not constitute a grant, sale, assignment, transfer, conveyance, or delivery, or an attempted
grant, sale, assignment, transfer, conveyance, or delivery thereof. Following the date
hereof, the parties shall cooperate and use commercially reasonable best efforts to obtain
promptly such authorizations, approvals, consents, or waivers, and to obtain novations or
other agreements if appropriate and, after obtaining such, to complete the transactions
contemplated hereby. Pending such authorization, approval, novation, consent, or waiver,
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the parties shall cooperate with each other in any reasonable and lawful arrangement
designed to provide the economic costs and benefits of the Assumed Liabilities to the
Assignee. To the extent possible performance obligations of Assignor with respect to any
such Assumed Liabilities shall be deemed to be subcontracted to the Assignee.
Section 2. FURTHER ASSURANCES. The Assignor and the Assignee each
covenant and agree to execute and deliver, at the request and expense of the other party
hereto, such further instruments of transfer and assignment and to take such other action
as such the other party may reasonably request to more effectively consummate the
assignments and assumptions contemplated by this Assignment and Assumption
Agreement.
Section 3. MISCELLANEOUS. This Assignment and Assumption
Agreement constitutes an agreement solely among the parties hereto and is not intended
to and shall not confer any rights, remedies, obligations, or liabilities, legal or equitable,
on any person other than the parties hereto and their respective successors, assigns, and
legal representatives, nor shall person other such person otherwise constitute a third
party beneficiary under or by reason hereof. This Assignment and Assumption
Agreement may be executed in one or more counterparts, each of which shall be deemed
an original agreement, but all of which together shall constitute one and the same
instrument. This Assignment and Assumption Agreement shall be governed by and
construed in accordance with the internal laws of the State of New Jersey without
reference to choice of law principles thereof. This Assignment and Assumption
Agreement may only be amended or modified in writing, signed by the party against
whom enforcement of such amendment or modification is sought. In the event that the
Closing does not occur, this Assignment and Assumption Agreement shall become null
and void and the Assumed Liabilities shall remain the sole obligation of Assignor.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first above written.
CITY OF RAHWAY
By:
Name:
Title:
[BUYER]
By:
Name:
Title:
C-3
SCHEDULE I TO ASSIGNMENT AND ASSUMPTION AGREEMENT
All obligations relating to the Water System accruing and arising on or after
the Closing Date, including, but not limited to all obligations accruing or arising out of
the City Consent.
All contractual commitments of the City contained in the assumed contracts
listed in Exhibit E accruing and arising after the Closing Date.
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EXHIBIT C FORM OF BILL OF SALE
THIS BILL OF SALE dated as [_], 2025 from the City of Rahway, a public
body corporate and politic in Union County in the State of New Jersey (the “City”) and
[_], a [New Jersey] Corporation with principal corporate offices at [_] (the “Buyer”).
WITNESSETH
WHEREAS, by an Agreement of Sale, dated [_], 2025 (the “Agreement”),
between the City and the Buyer, the City has agreed to convey to the Buyer certain assets,
properties, and rights defined, described, and referred to in the Agreement (collectively,
the “Water System”) which include those assets listed on the document attached hereto
as Schedule I to Exhibit C, with the exception of those items expressly set forth on the
document attached hereto as Schedule II to Exhibit C; and
WHEREAS, pursuant to due authorization, the City is presently executing
and delivering this Bill of Sale to the Buyer for the purpose of selling and assigning to and
vesting in the Buyer all of the right, title, and interest currently held by the City in and to
the Water System;
NOW THEREFORE, in consideration of the purchase price provided in the
Agreement and other good and valuable consideration, and intending to be legally
bound, the City hereby grunts, sells, conveys, assigns, transfers, sets over to, and vests in
the Buyer, its successors and assigns, all of its right, title and interest, legal and equitable,
in and to the Water System.
TO HAVE AND TO HOLD the same, including the appurtenances thereof,
unto the Buyer, its successors and assigns, forever, to its and their own proper use and
behoof.
Section 1. SALE OF SYSTEMS AS IS. Except as specifically set forth in the
Agreement, the Water System is being transferred “AS IS”, “WHERE IS”, and “WITH
ALL FAULTS” as of the date of this Bill of Sale, without any representation or warranty
whatsoever as to its condition, fitness for any particular purpose merchantability or any
other warranty, express or implied. Except as specifically set forth in the Agreement, the
City specifically disclaims and Buyer waives any warranty, guaranty or representation,
oral or written, past or present, express or implied, concerning the Water System. The
Buyer is hereby thus acquiring the Water System based solely upon the Buyer’s own
independent investigations and inspections of that property and not in reliance upon any
information provided by the City or the City's agents or contractors. The City has made
no agreement to alter, repair, or improve any portion of the Water System.
Section 2. APPLICABLE LAW. This instrument shall be governed by and
enforced in accordance with the laws of the State of New Jersey.
IN WITNESS WHEREOF, the City has caused this Bill of Sale to be duly
executed as of the date first above written.
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City of Rahway, a public body corporate and
politic in Union County in the State of New
Jersey
By:
RECEIPT OF THE FOREGOING BILL
OF SALE ACKNOWLEDGED AS OF
[
], 2025.
[BUYER]
By:
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SCHEDULE I TO EXHIBIT C INCLUDED ASSETS
All assets that comprise the Water System as described in Exhibit A of the Agreement.
The Included Assets shall not include the Excluded Assets set forth in Schedule II to
Exhibit C.
SCHEDULE II TO EXHIBIT C
EXCLUDED ASSETS
Personal property
Office equipment
Office supplies
Vehicles
Cash, securities, bank accounts and the accounts receivable of the City relating to the
Water System up to and including the Closing Date.
D-1
EXHIBIT D
RATES
E-1
EXHIBIT E
LIST OF WRITTEN CONTRACTS TO WHICH CITY IS A PARTY
WHICH RELATE TO THE WATER SYSTEM
[Note to Bidders: To be identified.]
F-1
EXHIBIT F
FORM OF ASSIGNMENT AND GRANT OF EASEMENTS,
RIGHTS OF WAY, AND OTHER PROPERTY
THIS ASSIGNMENT is made this day of [_], 2025 between the CITY OF
RAHWAY, a public body corporate and politic in Union County in the State of New Jersey
(the “Grantor”), and [Buyer], a [New Jersey Corporation] (the “Grantee”), having an
address at [_].
WHEREAS, pursuant to an Agreement of Sale (the “Agreement”) dated [_],
2025 and a Bill of Sale contemporaneously herewith, the Grantor has granted, sold,
conveyed, assigned, transferred, set over, and vested in Grantee, its successors, and its
assigns, all of the Grantor's right, title, and interest in the Water System as defined in the
Agreement.
WITNESSETH, that Grantor for and in consideration of the sum of One
Dollar ($1.00) lawful money of the United States of America, and other valuable
consideration, unto it well and truly paid by Grantee at or before the sealing and delivery
of these presents, the receipt whereof is hereby acknowledged, has assigned, granted,
bargained, sold, aliened, enfeoffed, released, and confirmed, and by these presents does
assign, grant, bargain, sell, alien, enfeoff, release, and confirm unto Grantee, its successors
and assigns:
ALL Grantor's right, title and interest in and to any and all: (a) those certain
rights of way, easements, licenses, and other rights and interests created or evidenced by
those instruments listed in Schedule I to Exhibit F and made a part hereof, as well as any
and all other easements and rights of way owned by Grantor which are rights in real
property related to the provisions of water and water service (collectively, the
“Easements”); (b) any rights of way or easements that may be located in private property
without written instruments where rights may have arisen from the passage of time, the
operation of law, or otherwise; (c) all rights of Grantor to easements that may be shown
on subdivision or development plans; and (d) all rights, liberties, privileges,
hereditaments, and appurtenances whatsoever thereunto belonging, or in and otherwise
appertaining, and the reversions, remainders, rents, issues and profits thereof; and all the
estate, right, title, interest, property, claim, and demand whatsoever in and to the same
and every part thereof (all of the foregoing being herein referred to as the “Premises”);
TOGETHER WITH all of Grantor's occupancy rights and privileges to use,
maintain, replace, and repair all water mains and appurtenant facilities located in the
public rights-of-way of State highways and City’s roads.
TOGETHER WITH all of Grantor's rights of ingress, egress, and regress to
and from said Easements, mains and appurtenances, at any and all times for the purpose
of operating the Water System and laying, relaying, installing, operating, inspecting,
maintaining, repairing, altering, removing, renewing, and replacing the Water System
and its appurtenances;
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TO HAVE AND TO HOLD the Easements and Premises hereby granted,
or mentioned and intended so to be, with the appurtenances, unto the Grantee, its
successors and assigns, to and for the only proper use and behoof of the Grantee, its
successors and assigns, forever.
This Grant and all of the covenants herein contained shall inure to the
benefit of and shall be binding upon Grantor, its successors and assigns, and Grantee, its
successors or assigns.
The Grantee accepts and assumes any and all obligations under and arising
in connection with the Easements and shall indemnify the City in connection with the
Grantee’s failure or improper performance of such obligations.
IN WITNESS WHEREOF the Grantor has caused this Assignment and
Grant to be duly executed the day and year first above written.
[SEAL]
CITY OF RAHWAY, a
public body corporate and politic in
Union County in the State of New
Jersey
Attest:
By:
Name
Title:
F-3
STATE OF NEW JERSEY
)
:
SS.:
UNION
)
On this, the day of 2025, before me, a Notary Public in and for said County, personally
appeared
, who acknowledged himself to be the
of the City of Rahway, a public body corporate and politic in Union
County in the State of New Jersey, and that he, as such
, being
authorized to do so, executed the foregoing instrument for the purposes therein
contained, by signing the name of
by himself as
.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public
My Commission Expires:
[SEAL]
F-4
SCHEDULE I TO EXHIBIT F
LIST OF EASEMENTS GRANTED TO OR OBTAINED BY THE CITY
[Note to Bidders: To be identified.]
G-1
EXHIBIT G
FORM OF GENERAL ASSIGNMENT
GENERAL ASSIGNMENT
THIS GENERAL ASSIGNMENT, dated [_], 2025, by and between the CITY
OF RAHWAY, a public body corporate and politic in Union County in the State of New
Jersey (the “Assignor”) and [Buyer], a [ ] corporation having a mailing address at [_] (the
“Assignee”).
WHEREAS, Assignor and Assignee entered into an Agreement of Sale dated
[_], 2025 (the “Agreement”) for the sale and purchase of the Water System (as defined in
the Agreement); and
WHEREAS, in connection with such sale and purchase, and as provided in
the Agreement, Assignor desires to assign, transfer, set over, and deliver to Assignee all
of Assignor's right, title, and interest in and to all assignable permits, licenses, plans,
warranties, and guarantees benefiting the Water System (each issuer of any such permit,
license, plan, warranty, or guarantee is hereinafter referred to as an “Issuer”), including,
without limitation, items described on Schedule I to Exhibit G attached hereto (the
“Assigned Rights”), and
WHEREAS, Assignee desires to accept the Assigned Rights.
NOW, THEREFORE, in accordance with the Agreement and in consideration
of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties do hereby covenant
and agree as follows:
Section 1. ASSIGNMENT. Assignor does hereby assign, transfer, set over,
and deliver unto Assignee all of the Assignor’s right, title, and interest in and to the
Assigned Rights. Assignor agrees that upon Assignee’s request, it shall, without charge,
execute such further reasonable documents as any Issuer may require to evidence this
assignment, provided that no such document imposes any obligation or liability upon
Assignor for any obligations or liabilities accruing on or after the date of this Assignment.
Section 2. BINDING ASSIGNMENT. This Assignment shall be: (i) binding
upon, and inure to the benefit of the parties to this Assignment and their respective heirs,
legal representatives, successors and assigns and (ii) construed in accordance with the
laws of the State of New Jersey without regard to the application of choice of law
principles.
Section 3. COUNTERPARTS. This Assignment may be executed in
counterparts, all of which together shall constitute one agreement binding on all of the
parties hereto, notwithstanding that all such parties are not signatories to the original or
the same counterpart.
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IN WITNESS WHEREOF, this General Assignment has been signed, sealed and
delivered by the parties as of the date first above written.
WITNESS:
ASSIGNOR:
CITY OF
RAHWAY, a public body
corporate and politic in Union
County in the State of New Jersey
Accepted this
day of
, 20
.
By:
Name
Title:
WITNESS:
ASSIGNEE:
[BUYER]
By:
By:
Name
Title:
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SCHEDULE I TO EXHIBIT G LIST OF ASSIGNED RIGHTS
PERMITS:
[Note to Bidders: To be identified.]
H-1
EXHIBIT H
DISCLOSURE SCHEDULE TO THE AGREEMENT OF SALE
[NOTE: Disclosures to be reflected in this exhibit prior to execution of Agreement.]
These schedules are to be read in their entirety. Nothing in these schedules is intended
to broaden the scope of any representation or warranty contained in the Agreement of Sale
(the “Agreement”). The disclosure of any item, explanation, exception, or qualification in these
schedules is disclosure of that item for all purposes for which disclosure is required under the
Agreement, and is disclosed in all appropriate schedules irrespective of whether any cross-
reference is made or whether no schedule is provided with respect to any representation or
warranty. Capitalized terms used and not otherwise defined in these schedules shall have the
meanings ascribed to them in the Agreement.
Schedule 2.1(A)
Organization of City [_]
Schedule 2.1(B)
Authorization of Transaction
[_]
Schedule 2.1(C)
Title
[_]
Schedule 2.1(D)
Litigation
[_]
Schedule 2.1(E)
Default
[_]
H-2
Schedule 2.1(F)
Reimbursement Obligation
[_]
Schedule 2.1(G)
System Compliance
[_]
Schedule 2.1(H)
Rates
[_]
Schedule 3.1(A)
Organization of Buyer
[_]
Schedule 3.1(B)
Authorization of Transaction
[_]
Schedule 3.1(C)
Litigation
[_]
Schedule 3.1(D)
Warranties
[_]
Schedule 3.1(E)
Right to Inspect
[_]
H-3
Schedule 3.1(F)
Other Limitations of Local, State, and Federal Laws and Regulations
[_]
Schedule 3.1(G)
Source of Funds
[_]
Schedule 3.1(H)
Blocked Person
[_]
I-1
EXHIBIT I ESCROW AGREEMENT
THIS ESCROW AGREEMENT, dated as of [_] (this “Escrow Agreement”),
by and among CITY OF RAHWAY, a public body corporate and politic in Union
County in the State of New Jersey (the “City”), [BUYER], a [
]
corporation (the “Buyer”), and T O B E D E T E R M I N E D (the “Escrow Agent”).
WITNESSETH
WHEREAS, the Buyer has executed and delivered to the City an Asset
Agreement of Sale, dated as of [_] (the “Agreement”), pursuant to which the Buyer will
purchase from the City, and the City will sell to the Buyer, the Water System as defined
in the Agreement;
WHEREAS, it is contemplated under the Agreement that the Buyer will
deposit or cause to be deposited into escrow the sum of 10% of the Purchase Price (the
“Escrow Amount”) in cash upon its execution of the Agreement, to be held and disbursed
by the Escrow Agent in accordance with the terms herein; and
WHEREAS, Escrow Agent is willing to act as the Escrow Agent hereunder.
NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein and in the Agreement, and intending to be legally bound
hereby, the parties hereby agree as follows:
Section 1. APPOINTMENT AND AGREEMENT OF ESCROW AGENT. The
Buyer and the City hereby appoint the Escrow Agent to serve as, and the Escrow Agent
hereby agrees to act as the escrow agent upon the terms and conditions of this Agreement.
Section 2. ESTABLISHMENT OF THE ESCROW FUND. Pursuant to Section
4.3 of the Agreement, the Buyer shall deliver to the Escrow Agent on the date hereof the
Escrow Amount. The Escrow Agent shall hold the Escrow Amount and all interest and
other amounts earned and/or accrued thereon (the “Escrow Fund”) in escrow pursuant
to the terms of this Escrow Agreement and the Agreement.
Section 3. PURPOSE OF THE ESCROW FUND. The Escrow Amount will be
held by the Escrow Agent as a deposit made by the Buyer to be credited against the
Purchase Price to the City pursuant to Section 4.3 of the Agreement.
Section 4. PAYMENTS FROM THE ESCROW FUND.
(A) At the Closing, upon written request of the Buyer and the City, the
Escrow Agent shall pay in full to the City in immediately available funds all such amounts
in the Escrow Fund. The Buyer and City agree that such amount shall be credited against
the Purchase Price in favor of the Buyer at the Closing.
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(B)
In the event that the Agreement is terminated as described in Section
9.2 of the Agreement of Sale, the Buyer shall provide written notice to the Escrow Agent
of such termination specifying in reasonable detail the nature and basis for such
termination. The Escrow Agent shall, upon receipt of such notice, deliver a copy of such
notice to the City’s Representative. If within ten (10) Business Days after delivery of such
notice, the Escrow Agent has not received a written objection from the City or the City's
Representative, the Escrow Agent shall promptly transfer the Escrow Fund to the Buyer,
by wire transfer in immediately available funds. If the Escrow Agent has received an
objection within the stated time period, then Escrow Agent will proceed as described in
Section 5 below.
(C)
In the event that the Agreement is terminated as described in Section
9.1 of the Agreement, the City shall provide written notice to the Escrow Agent of such
termination specifying in reasonable detail the nature and basis for such termination. The
Escrow Agent shall, upon receipt of such notice, deliver a copy of such notice to the Buyer.
If within ten (10) Business Days after delivery of such notice, the Escrow Agent has not
received a written objection from the Buyer, the Escrow Agent shall promptly transfer the
Escrow Fund to the City by wire transfer in immediately available funds. If the Escrow
Agent has received an objection with the stated time period, then Escrow Agent will
proceed as described in Section 5 below.
Section 5. OBJECTION TO A TERMINATION NOTICE. Either party, after
receipt of a notice from the Escrow Agent that the other party is claiming a right to
payment of the Escrow Fund pursuant to a termination right under the Agreement, may
at any time within the fifteen (15) Business Days after receipt of said notice object by
delivering to the Escrow Agent a writing specifying in reasonable detail the nature and
basis for such objection. Upon receipt of such an objection, the Escrow Agent shall deliver
a copy of such objection to the party seeking payment of the Escrow Fund. Unless the
Escrow Agent thereafter receives, a statement from the objecting party that it is
withdrawing its objection, the Escrow Fund shall be held by the Escrow Agent and shall
not be released except in accordance with either: (i) written instructions jointly executed
by an authorized officer of the Buyer and the City's Representative or (ii) the final non-
appealable judgment of a court.
Section 6. MAINTENANCE OF THE ESCROW FUND; TERMINATION OF
THE ESCROW FUND.
(A) The Escrow Agent shall maintain the Escrow Fund in a non-interest
bearing account in [Bank] until the earlier of:
(i)
the time at which there shall be no funds in the Escrow Fund;
or
(ii)
the termination of this Escrow Agreement.
(B)
Notwithstanding any other provision of this Escrow Agreement to
the contrary, at any time prior to the termination of the Escrow Fund, the Escrow Agent
shall, if so instructed in a writing jointly signed by the Buyer and the City’s
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Representative, pay from the Escrow Fund, as instructed, to the City or the Buyer, as
directed in such writing, the amount of cash so instructed.
(C)
Escrowee shall not be responsible for any interest on the Deposit
except as is actually earned, or for the loss of any interest resulting from the withdrawal
of the Deposit prior to the date interest is posted thereon or for any loss caused by the
failure, suspension, bankruptcy or dissolution of the institution in which the Deposit is
deposited.
(D)
In the event that the Escrow Agent is uncertain as to its duties or
rights hereunder or receives instructions from any party hereto with respect to the Escrow
Fund which, in its reasonable opinion, are in conflict with any of the provisions of this
Escrow Agreement or any instructions received from one of the other parties to this
Escrow Agreement, the Escrow Agent shall be entitled to refrain from taking any action
other than to keep the Escrow Fund in question until: (i) such time as there has been a
“Final Determination” (as defined herein) with respect to the Escrow Fund or (ii) deposit
the Escrow Fund in escrow into any Court of competent jurisdiction at any time and
thereafter shall have no further obligations or liabilities to anyone under this Escrow
Agreement. For purposes of this Section, there shall be deemed to have been a "Final
Determination" of the rights of the applicable parties with respect to the Escrow Fund at
such time as any of the applicable parties shall file with the Escrow Agent: (i) an official
certified copy of a court order, together with an opinion of counsel of the party filing the
foregoing, in form and substance acceptable to the Escrow Agent and its counsel, stating
that the court order is a final determination (and not subject to appeal in a federal or state
court of competent jurisdiction) of the rights of the parties hereto with respect to the
Escrow Fund, that the time to appeal from said court order has expired, and that said
court order is binding upon the applicable parties or (ii) a fully executed agreement or
consent by and among the applicable parties which provides for disposition of the Escrow
Fund in accordance with Article XII of the Agreement.
Section 7. ASSIGNMENT OF RIGHTS TO THE ESCROW FUND;
ASSIGNMENT OF OBLIGATIONS; SUCCESSORS. This Agreement may not be assigned
by operation of law or otherwise without the express written consent of each of the parties
hereto (which consent may be granted or withheld in the sole discretion of such parties);
provided, however, that the Buyer may assign this Escrow Agreement to an Affiliate of
the Buyer without the consent of the other parties. This Agreement shall be binding upon
and inure solely to the benefit of the parties hereto and their permitted assigns.
Section 8. ESCROW AGENT.
(A)
Except as expressly contemplated by this Agreement or by joint
written instructions from the Buyer and the City, the Escrow Agent shall not sell, transfer,
or otherwise dispose of all or any portion of the Escrow Fund in any manner, except
pursuant to an order of a court of competent jurisdiction.
(B)
The duties and obligations of the Escrow Agent shall be determined
solely by this Escrow Agreement, and the Escrow Agent shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this Escrow
Agreement. In the performance of its duties hereunder, the Escrow Agent shall be entitled
I-4
to rely upon any document, instrument, or signature believed by it in good faith to be
genuine and signed by any party hereto or an authorized officer or agent thereof
(specifically including the City’s Representative), and shall not be required to investigate
the truth or accuracy of any statement contained in any such document or instrument.
The Escrow Agent may assume that any person purporting to give any notice on behalf of
a party hereto in accordance with the provisions of this Agreement has been duly
authorized to do so.
(C)
The Escrow Agent shall not be liable for any error of judgment or any
action taken, suffered, or omitted to be taken hereunder except in the case of its gross
negligence, bad faith, or willful misconduct. The Escrow Agent may consult with counsel
of its own choice and shall have full and complete authorization and protection for any
action taken or suffered by it hereunder in good faith and in accordance with the opinion
of such counsel.
(D)
The Escrow Agent shall have no duty as to the collection or
protection of the Escrow Fund or income thereon, nor to preserve any rights pertaining
thereto beyond the safe custody of any such funds actually in its possession.
(E)
As compensation for its services to be rendered under this
Agreement, Escrow Agent shall be reimbursed upon request for all expenses,
disbursements, and advances, including reasonable fees of outside counsel, if any,
incurred or made by it in connection with the preparation of this Escrow Agreement and
the carrying out of its duties under this Escrow Agreement. All such expenses shall be the
joint and several responsibility of the City and the Buyer.
(F)
The Buyer and the City shall reimburse and indemnify the Escrow
Agent for and hold it harmless against any loss, liability, or expense, including, without
limitation, reasonable attorney’s fees incurred except in connection with gross negligence,
bad faith, or willful misconduct on the part of the Escrow Agent arising out of, or in
connection with the acceptance or performance of its duties and obligations under this
Escrow Agreement.
(G)
The Escrow Agent may resign at any time by giving twenty (20)
Business Days’ prior written notice of resignation to the City’s Representative and the
Buyer. The City and the Buyer may remove the Escrow Agent at any time by jointly giving
the Escrow Agent ten (10) Business Days’ written notice signed by each of them. If the
Escrow Agent is to resign or be removed, a successor Escrow Agent shall be appointed by
the Buyer by written instrument executed by the City’s Representative and the Buyer. Such
instrument shall be delivered to the Escrow Agent and to such successor Escrow Agent
and, thereupon, the resignation or removal of the predecessor Escrow Agent shall become
effective and such successor Escrow Agent, without any further act, deed or conveyance,
shall become vested with all right, title, and interest to all cash and property held
hereunder of such predecessor Escrow Agent. Such predecessor Escrow Agent shall, on
the written request of the City's Representative, the Buyer, or the successor Escrow Agent,
execute and deliver to such successor Escrow Agent all the right, title, and interest
hereunder in and to the Escrow Fund of such predecessor Escrow Agent and all other
rights hereunder of such predecessor Escrow Agent. If no successor Escrow Agent is
appointed within twenty (20) Business Days of a notice of resignation by the Escrow
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Agent, the Escrow Agent’s sole responsibility shall thereafter be to hold the Escrow Fund
until the earlier of its receipt of designation of a successor Escrow Agent, a joint written instruction
by the City’s Representative and the Buyer, or termination of this Escrow Agreement in accordance
with its terms.
(H)
The Escrow Agent is acting as a stakeholder only with respect to the
Escrow Fund. Upon making delivery of the Escrow Fund in the manner herein provided,
the Escrow Agent shall have no further liability hereunder.
(I)
The City and the Buyer acknowledge that the Escrow Agent has
represented the City in connection with, among other things, the Agreement and the
matters giving rise to this Escrow Agreement and will continue to represent the City in
connection with such matters and any other matters. Each of the parties to this Agreement
waives any right it now has or may have in the future to any claim of conflict as a result
of the Escrow Agent’s execution, delivery, and performance of this Agreement or the
transactions contemplated hereby and the Escrow Agent’s representation of the City in
any matter including, without limitation, any action, litigation, or representation relating
to the Agreement, this Escrow Agreement, and the matters giving rise to each of them.
(J)
Escrow Agent shall not bound in any way by any contract or
understanding between the parties hereto other than this Agreement, whether or not
Escrow Agent has knowledge thereof or consents thereto unless Escrow Agent consents
to being so bound in writing.
(K)
Escrow Agent shall not have any liability or obligation for loss of all
or any portion of the Escrow Amount by reason of the insolvency or failure of the Escrow
depository, or any other occurrence or circumstance affecting the Escrow depository.
Section 9. TERMINATION. This Escrow Agreement shall terminate on the
earlier of: (i) the date on which there are no funds remaining in the Escrow Fund or (ii)
the date on which the Escrow Agreement receives a signed notice from the City and the
Buyer that the Escrow Agreement is terminated, including instruction to the Escrow
Agent on the disbursement of the Escrow Fund.
Section 10. NOTICES. All notices, requests, claims, demands, and other
communications hereunder shall be in writing and shall be given or made (and shall he
deemed to have been duly given or made upon receipt) by delivery in person, by courier
service, by cable, by telecopy, by telegram, by telex, or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the following
addresses (or at such other address for a party as shall be specified in a notice given in
accordance with this Section 10):
If to the Buyer:
[_]
With a copy to:
[_]
I-6
If to the City:
City Clerk City
1 City Hall Plaza
Rahway, New Jersey 07065
Copy to:
COPY TO ATTORNEY
ADDRESS
Section 11. GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New Jersey applicable to contracts
executed and to be performed entirely within that State.
Section 12. AMENDMENTS. This Agreement may not be amended or
modified except: (i) by an instrument in writing signed by, or on behalf of, the City, the
Buyer, and the Escrow Agent or (ii) by a waiver in accordance with this Agreement.
Section 13. WAIVER. Any party hereto may: (i) extend the time for the
performance of any obligation or other act of any other party hereto or (ii) waive
compliance with any agreement or condition contained herein. Any such extension or
waiver shall be valid only if set forth in an instrument in writing signed by the party or
parties to be bound thereby. Any waiver of any term or condition shall not be construed
as a waiver of any subsequent breach or a subsequent waiver of the same term or
condition or a waiver of any other terms or conditions of this Agreement. The failure of
any party to assert any of its rights hereunder shall not constitute a waiver of any of such
rights.
Section 14. SEVERABILITY. If any term or other provision of this Agreement
is invalid, illegal, or incapable of being enforced by any rule of law or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force
and effect as long as the economic and legal substance of the transactions contemplated
by this Escrow Agreement is not affected in any manner materially adverse to any party.
Upon such determination that any term or other provision is invalid, illegal, or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in a
mutually acceptable manner so that the transactions contemplated by this Agreement be
consummated as originally contemplated to the fullest extent possible.
Section 15. ENTIRE AGREEMENT. This Escrow Agreement and the
Agreement constitute the entire agreement of the parties hereto with respect to the subject
matter hereof and supersede all prior agreements and undertakings, both written and
I-7
oral, among the City, the Buyer, and the Escrow Agent with respect to the subject matter
hereof
Section 16. NO THIRD PARTY BENEFICIARIES. This Escrow Agreement is
for the sole benefit of the parties hereto and their permitted assigns and nothing herein,
express or implied, is intended to or shall confer upon any other person or entity any legal
or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this
Escrow Agreement.
Section 17. HEADINGS. The descriptive headings contained in this Escrow
Agreement are included for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement.
Section 18. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, and by different parties hereto in separate counterparts, each of which
when executed shall be deemed to be an original but all of which when taken together
shall constitute one and the same agreement.
Section 19. CITY’S REPRESENTATIVE. The City hereby appoints its City
Administrator as its representative (the “City's Representative”) and agrees that such
appointment give the City's Representative full legal power and authority to take any
action or decline to take any action on behalf of the City.
Section 20. DEFINITIONS. Terms defined in the Agreement and not
otherwise defined herein may be used herein as defined in the Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Escrow
Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.
CITY OF RAHWAY
[BUYER]
By:
By:
Name
Title:
Name
Title:
ESCROW AGENT - ATTORNEY.
By:
Name:
Title:
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EXHIBIT J
CUSTOMER SERVICE STANDARDS AND CUSTOMER SERVICE PLAN
1. The Buyer shall maintain the Water System services and shall undertake all
necessary capital improvements, maintenance, repairs, and replacement to the
Water System as shall be required from time to time. Such undertaking shall be
made in accordance with prudent industry standards.
2. The Buyer shall maintain buildings and property in a neat and orderly
appearance consistent with community standards and shall undertake
reasonable measures to protect the health, safety, and welfare of the public with
respect to the Water System.
3. The Buyer shall operate the Water System in a manner to minimize odors, dust,
spills, and other nuisances. The Buyer shall provide appropriate customer service
staffing and response times for any complaints about nuisances or service
problems.
4. The Buyer shall provide a qualified staff and experienced employees and third
party contractors who have direct experience in operating similar systems. The
Buyer shall maintain the necessary number of employees, staff, and third party
contractors to operate, maintain, and manage the Water System.
5. The Buyer shall implement a plan of action protocol for emergency events which
shall include notices to the City and other regulating entities having jurisdiction
and for measures which facilitate coordinated emergency response actions, as
needed. The Buyer shall maintain a toll-free 24 hour telephone number where
users of the Water System can report emergencies.
6. The Buyer will abide by New Jersey regulations in providing safe and reliable
service.
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performance bond
Evidence Detected
"...A Bid Bond in the amount of $20,000, payable to THE CITY OF RAHWAY, must accompany the Bid when submitted...."
liquidated damages
Evidence Detected
"......... 27 Section 13.14. TRANSFER TAXES ......................................................................................... 27 Section 13.15. TIME IS OF THE ESSENCE ............................................................................ 27 Section 13.16. REVIEW OR AUDIT BY OFFICE OF THE STATE COMPTROLLER ....."
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Contacts
Frank C. Ruggerio
City Qualified Purchasing Agent · City of Rahway
hidden@email.com
Unlock(***) ***-****
UnlockHeather Capone
Municipal Clerk · City of Rahway
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Timeline
First Discovered
Mar 19, 2026
Last Info Update
Apr 30, 2026
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