Council reviews bulk-water contract to Piquantec; director details $3,421 per-million-gallon rate and expected volumes

The Newark Municipal Council examined agenda item 12B, a bulk-water contract authorizing sale of water from the city’s Piquantec supply system to the Township of Piquantec.

Council members asked how the per-unit price was set and what revenues the contract would generate. The director of water and sewer told the council the $3,421-per-million-gallons price reflects the city’s cost to treat water and includes capital improvement costs and debt service; those factors determine the per-unit charge. When asked about volume, the director said Piquantec typically purchases about 2 to 3 million gallons per day under the contract, and the city estimates annual collections from the contract in the range of roughly $2 million to $3 million, depending on usage and seasonal variation.

Council members discussed the mechanics of bulk-water contracts compared with earlier arrangements in other municipalities, noting that metered arrangements yield exact amounts rather than percentage-based cost-sharing used in past sewer agreements. The director confirmed that the present contract is metered and that the municipality will be billed for actual metered usage.

No formal vote on the contract was recorded at the pre-meeting; the item remained on the agenda for the council’s regular actions and final approval process.