Hoboken City Council Gives Tentative OK To Suez Water Deal

HOBOKEN, NJ — There’s just one final step before a landmark contract between Hoboken and Suez Water is official.

On Wednesday, the Hoboken City Council unanimously voted to approve two ordinances on first reading. One would authorize Mayor Ravi Bhalla to enter into a renegotiated contract with Suez for operation of Hoboken’s water system; the other would establish a new public water utility managed by the City of Hoboken.

The final vote for both the approval of the contract and the public water utility will occur on second reading at the council meeting on May 1. If approved, the revised contract and city-managed public water utility would go into effect on July 1, officials said.

• See related article: Hoboken, Suez Water Reach Deal With $33M In 'Critical Upgrades'

The new agreement with Suez comes less than a year after Bhalla threatened to launch a lawsuit against the utility provider to recoup "damages to the city" following a spate of 14 water main breaks in a 64-day period.

• See related article: Hoboken May File Suit Against Suez After 14 Water Main Breaks

Mayor Bhalla thanked the council for their unanimous support of the revised contract.

“If approved at the next meeting, Hoboken will see an unprecedented $33 million invested into our water main system over the next 15 years, an average of six times more than the current contract,” Bhalla said. “Instead of the revenue from the system going to Suez with only minimal repairs required, it would be directly invested through the city into proactive upgrades.”

According to a Thursday news release from Hoboken city officials:

“If approved by the council, the new public water utility would be managed by the city, with the majority of revenue directly invested into water main upgrades. Suez would continue to maintain and operate the water system, however all revenues generated from water bills would be invested by the city as opposed to Suez. According to the terms of the current contract, Suez is currently only required to provide $350,000 per year in repairs, which is not sufficient to even fund emergency repairs. Additionally, the contract calls for $2 million in smart technology to monitor water consumption, which would save Hoboken ratepayers from paying for costly leaks.”

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