RED BANK – The Borough Council approved the renewal of a contract to purchase water that will result in substantial savings.
Under terms of the borough’s contract with New Jersey American Water Company, the water company will supply the borough with 200 million gallons per year (mgy), down from the 283 last year.
The change will result in a savings of $87,764, according to Thomas Branch, of the Department of Public Utilities.
“We want to make sure we aren’t paying for more water than we need,” Branch said.
Councilman Edward Zipprich explained that NJAW reduced the minimum amount of water the borough is required to purchase under the contract.
“The amount that we were obligated to purchase was significantly reduced,” said Zipprich.
He added that the reduction in the amount of water municipalities are required to purchase to enter into a contract agreement is mandated by New Jersey Department of Environmental Protection (DEP).
NJAW supplies the borough’s water for six months of the year. For the other six months, the borough relies on its own wells.
“For six months out of the year we are required to let the aquifers rest.” said Councilwoman Linda Schwabenbauer.
The current contract was set to expire on June 30. The borough has been under contract with NJAW since 1991. The current contract is slated to last for another five years.
The council voted unanimously to approve of the contract renewal, except for Councilman Author Murphy who abstained from the vote.