Ramsey
July 13, 2011 THE VILLADOM TIMES IV • Page 3
At the request of the prospective bidders, the Borough of Ramsey has moved the bid opening for the potential sale of the municipality’s water and sewer system to July 20. The opening had originally been scheduled for July 7, but Ramsey Borough Administrator Edward Sandve noted that a number of the bidders that they did not have enough time to make the early July deadline. Sandve said four prospective bidders picked up specifications. Borough officials noted that the cost of keeping up with water standards has continued to mount, and recently decided to authorize the solicitation of bids for the potential sale of Ramsey’s public water and sewer system assets. Ramsey Mayor Christopher Botta previously stated that the solicitation of bids does not assure that the assets will be sold. Voters’ approval would be required in order to effect a sale, and a November referendum would be required. Once the bids have been opened, the council and the Ramsey Board of Public Works will decide whether proceeding with the sale is a viable option for Ramsey. The winning bidder must be able to own, operate, and provide public water and public sewer service to the residents of Ramsey in
Bids for water and sewer system due next week
accordance with all state and federal regulations. Components of the bid consist of the sewer and water infrastructure, including the wells, the physical assets, and the licenses and permits that the municipality owns for the water/sewer system. Mayor Botta has said that the key vote would be the referendum, which would be held in November after a bid has been accepted and price and terms set for the sale. The question would be whether the accepted bid and the criteria associated with it are acceptable and in the best interests of the borough’s residents. Net proceeds of any potential sale would be primarily used to pay off existing municipal debt and to stabilize municipal taxes pursuant to a well-drawn plan over an extended period of time. Botta has also said that the borough seeks to avoid the cost and uncertainty of future capital expenditures and environmental unknowns, while stabilizing municipal taxes for the foreseeable future. The three borough staff members employed by the water department would reportedly be offered positions within the municipality in a similar or equivalent job if they decide not to accept employment with the potential winning bidder. The borough has also built in limits on any potential rate increases that may be imposed by a potential private owner. The sale would have to be approved by the State Board of Public Utilities, which regulates water systems and sewer systems, and the owner and the system, including rates, would continue to be regulated by the BPU after the completion of any sale. The borough retained a nationally recognized consultant to undertake a valuation study of the system assets, and to review what environmental and water supply issues exist today and what issues are on the horizon, and to answer the question as to whether the 14,500 residents of Ramsey should bear the burden of the increasing and mandated costs that are imposed by the New Jersey Department of Environmental Protection and Federal Environmental Protection Agency to maintain public water and sewer systems. Ramsey has already
borne the cost of arsenic remediation for its water supply when the EPA decided to update its standards from 50 parts per billion to 10 parts per billion, and then the NJDEP decided to further update the standards to five parts per billion. The borough was compelled to expend over $1.5 million to upgrade facilities to provide water from its wells at this reduced level, and it is now spending over $200,000 a year in operational costs to maintain the arsenic treatment system. The borough presently purchases water from a private supplier through a bulk purchase agreement, since production from Ramsey’s wells cannot meet the demand of its residents. The NJDEP has recently required the borough to expand its minimum bulk purchases above and beyond what is needed, in order to maintain a state-mandated “firm capacity.”
The Leisure Club will travel by bus to Bally’s Casino in Atlantic City on Thursday, July 28.
Leisure Club plans casino trip
The cost is $30 per person and includes $30 in slot play. For more information call Connie at (201) 327-4170.