Hopewell Borough’s negotiations with New Jersey American Water (NJAW) are fully underway in efforts to work out terms of a deal on a potential sale of the borough water system.
Out of three proposals, Council members selected NJAW in February.
The borough is planning to hold a March 20 regular council meeting as the likely date when Council members would enter into executive session for the governing body to ask additional questions and examine where they are in the schedule of negotiations, according to Mayor Ryan Kennedy.
“The ultimate piece of the schedule is that we expect perhaps later this spring to have the results of the negotiation as a document that can be shared both with the state and public with an eye towards this being finalized as a ballot question in early August and then on the ballot ultimately in November for the general election for the community to decide,” he said.
Borough Attorney Lisa Maddox and Borough Administrator Doug Walker added that the hope is an agreement will be presented to council on March 20 for council approval.
Should the approval be granted it would allow for the borough to send the deal agreement to the Board of Public Utilities (BPU), which oversee regulated utilities such as water, to start the process to receive state approval on the terms of the proposal for a potential sale.
“..when it goes to the BPU shortly thereafter it would become a public document,” Maddox said.
The borough is currently in the WIPA (Water Infrastructure Protection Act) process for the potential sale of its water system. Borough officials entered into the process in summer 2024.
WIPA authorizes certain owners of water or wastewater systems to enter into a long-term lease contract or sell their water or wastewater assets to a private or public entity.
To qualify for the WIPA process, Hopewell Borough needed to qualify for one of five emergent conditions.
The New Jersey Department of Environmental Protection (NJDEP) had determined in 2024 that the borough qualified with emergent condition No. 3, which states “the present deficiency or violation of the maximum containment levels established pursuant to the Safe Water Drinking Act concerning the availability or potability of water, or concerning provision of water at adequate volume of pressure.”
Residents had gathered 222 petition signatures by an Aug. 5, 2024 deadline to force a referendum vote before any potential sale.
Through the WIPA process the borough released a request for qualifications for interested potential bidders for a potential sale of the borough’s water system. Hopewell Borough accepted the qualifications of New Jersey American Water, Aqua New Jersey, and Veolia Water New Jersey, Inc.
In January, the council authorized the borough to issue RFPs (requests for proposals) to the three companies on the potential sale of the borough’s water system.
Out of the three proposals and possible terms, the borough selected to enter into negotiations with NJAW.
The council chose the NJAW proposal for several reasons: a substantial capital investment in the system, a commitment to provide ratepayers with immediate and significant rate relief, the proposal offering a competitive purchase price that enables the borough to cover a significant amount of debt, and a customer service plan that meets the needs and expectations of the borough, according to the resolution.
Council President David Mackie explained that parallel to the current negotiation process with NJAW, the borough is conducting ongoing data analysis examining the borough’s water rates historically and NJAW rates historically.
“That is sort of outside the negotiations,” he said. “It is really for us to understand as a window potentially into the future when we are looking at the pros and cons of selling.”
