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Quinton Township weighs sale of sewer system as American Water conditions contract extension
Summary
At an April 27 special meeting, Quinton Township officials heard American Water representatives say the company would only consider extending its maintenance agreement if the township actively pursues a sale; officials were directed to consult the solicitor and CFO before deciding whether to seek an extension, municipalize, or rebid operations.
Quinton Township officials discussed whether to sell, municipalize or retain third-party maintenance for the township-owned sewer system during a special meeting April 27 after American Water representatives said they would only consider extending the current maintenance agreement if the township is actively pursuing a sale.
Mayor Joseph Hannagan opened the meeting and the committee reviewed Resolution 2025-61, which would authorize an addendum to the shared services agreement with American Water. The current contract is scheduled to expire on July 20, 2027.
Mike Gonserkevis, Senior Superintendent of Operations at American Water, and Jasmine Mungo, Senior Manager of Business Development, told the Township Committee the municipality faces three primary options after the contract expires: establish a municipal department to operate and maintain the sewer system, retain a third-party operator, or pursue sale of the utility. The company provided a presentation summarizing the two sale paths available in New Jersey — the Water Infrastructure Protection Act (WIPA) process and a traditional sale — and said both require significant preparation, roughly eight to 12 months.
American Water also indicated it would consider extending the current shared services agreement only if the township is actively pursuing a sale of the system. Committee members instructed staff to consult with the township solicitor and the chief financial officer to clarify legal, financial and procedural implications before notifying American Water of the township's intended course, including whether it will seek a contract extension while pursuing a potential sale or proceed with forming a municipal department or contracting with another operator.
The packet included educational materials titled "Water & Wastewater System Sale Considerations" outlining differences between WIPA and a traditional sale; the presentation was provided to committee members for further review. No formal action to launch a sale or to adopt an addendum was taken at the meeting.
There being no further business, Committee member James Smith moved to adjourn at 10:00 a.m.; Mayor Joseph Hannagan seconded and the motion carried (two members voting in favor, one member absent).
