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Former B.A. Fehrenbach Returns to Discuss Water and Wastewater Contract

12/11/17 Caucus 

Former Business
Administrator
Greg Fehrenbach

PERTH AMBOY – Former Business Administrator Greg Ferhenbach came to the 12/11/17 Caucus to shed some light on the Middlesex Water Company Contract. “The contract ends at the end of 2018. There are two borrowings through the MCIA (Middlesex County Improvement Authority) through the year 2034. The US-PA Service Agency expires the end of 2018 or early 2019. I was asked to be one of the advisors to be on a committee that included the C.F.O. and B.A. We went to 4 different law firms for a quote.

The one that we thought was the best, was McManimon, Scotland & Baumann. Their fee is $245/hr. with a cost not to exceed $30,000 which we can manage. The range of the quotes that we received from the 4 firms included a range from $30,000 to $75,000. McManimon, Scotland & Baumann are familiar with the City and we control their time and cost. The law prohibits a municipality to extend a contract. There are two different kinds of partnerships concerning the water/wastewater.

It will take 8 to 10 months to complete. There are competitive contracts with a maximum of 10 years. We need to have this completed by spring or early summer of next year. There needs to be a transition from a current to a new contractor. This will involve a billing and collection process. The City would take over, but they would need time to implement it into the system. Competitive contracting is most favorable. In 1998, there was third agency for financing. Costs were postponed to the year of 2007 which caused the City to borrow money. Since 2007, the City had to finance capital projects and improvements. It’s the simplest way under the law.

The process will save $150,000. These utilities are vital to the success of the City. Prior administrations used them as a cash-cow. Any savings should go to capital improvements. It’s up to responsible people in their positions to the right thing.”

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