Lawrence council unanimously consents to ELSA loan application for sewer upgrades

The Lawrence Township Council voted unanimously on June 16 to approve Resolution 18H3, giving the Euing Warren Sewer Authority (ELSA) the township's consent to apply for New Jersey Infrastructure Bank financing "not to exceed $18 million" to replace aging force mains and build a new pump station.

ELSA representative Mr. Bob Fer told the council the project will replace a 75-year-old underground force main that runs parallel to the Old Run Creek and construct a new, larger pump station on property currently occupied by an existing facility. "Portions of the existing pump station and pipeline system are aging and reach the point where replacement is necessary to ensure reliable service," he said.

Dennis Scher, ELSA's engineer, said some pipe segments were previously replaced using Parkway project funds and township CO monies; the worst sections have already been addressed. He said the project timeline anticipates force-main replacement starting in September and lasting about a year, with the pump station work taking roughly 15 months.

"The bids came in very favorably," ELSA's consultant said, reporting two successful bids in the roughly $11.5 million range and noting the earlier $18 million figure is the ceiling for the Infrastructure Bank authorization. "It's probably going to be closer to $12 million," finance adviser Chris Langar said, adding the Infrastructure Bank structure typically makes about 75% of the borrowing interest-free and the remainder at the bank's low AAA borrowing rates.

Council members asked whether Lawrence residents would shoulder the cost. ELSA representatives said the township is being asked only for consent to the financing application because the utility's board is a joint authority with members from Euing and Lawrence; project costs and debt service will be borne by the utility and allocated according to its agreements. "You won't see it in your rates in Lawrence because it's an ELSA project," Langar said.

Before the vote, a council member asked about liability; ELSA said it would manage construction, identify liabilities and obligate contractors contractually. After a motion and second, the council approved Resolution 18H3 by roll call (all voting in favor).

What happens next: ELSA will proceed with required permits, seek a construction loan from the Infrastructure Bank (a line of credit up to the authorized amount), then close and convert the financing into long-term bonds once final costs are determined. Council members said Lawrence will receive updates and retain oversight opportunities but was not being asked to provide direct funding.

Authorities and references: the council and presenters referenced the New Jersey Infrastructure Bank and the resolution identifier (18H3). The record does not indicate Lawrence Township assuming project debt at this meeting.

The council moved on to other business after the vote.