Allendale Water Press Release - March 25, 2022
Allendale – March 25, 2022 The Borough of Allendale announced today that it approved and executed an agreement to sell the Allendale water system to SUEZ, Inc for $18 million. The agreement follows a voter referendum that took place in November 2021, in which over two-thirds of Allendale voters voted in favor of the sale. SUEZ currently operates the Allendale system through an operations and management agreement with the Borough.
“I am grateful to the voters for recognizing that selling the system to SUEZ is the best solution for our Borough,” said Liz Homan, Councilwoman and Chair of the Water, Sewer and Public Utilities Committee. “Suez has the expertise and staff to manage and improve the system.” The increasing complexity of operating the water system, increasing environmental regulations, and aging water infrastructure were cited as the reasons behind the move to sell the system to Suez, added Liz Homan.
The process of evaluating options for the water system started over three years ago, culminating with the November 2021 referendum. With execution of the contract by the Borough and Suez, the transaction is being submitted to the New Jersey Board of Public Utilities for final approval. Once BPU approval is received, a fall 2022 closing is anticipated.
As part of the acquisition agreement, SUEZ will invest more than $24 million in critical water system improvements in the next ten years. Most importantly, SUEZ has committed to providing temporary treatment for PFAS while constructing a new permanent water treatment facility that will treat 4 of the 5 Allendale wells. This upgrade is expected to cost approximately $7.2 million and should be completed within three and a half years after the close of the sale. These improvements will be provided to the Allendale system while maintaining modest rate increases over the next 10 years.
“SUEZ is looking forward to making the improvements that will ensure Allendale residents have clean water and reliable service for generations to come,” said Alan Weland, Vice President and General Manager the New Jersey Operations for the company. “We appreciate the support of the council and residents who have put their trust in our company.”
Allendale Mayor Ari Bernstein added, “The transaction with SUEZ will assure the residents of Allendale that the water they are drinking will be of the highest quality. In addition, the economic aspects of the transaction will allow the Borough to retire all of its existing water utility debt and avoid excessive future expenditures to comply with regulations and repair and rehabilitate an aging water infrastructure. The residents of Allendale clearly recognized these benefits in their overwhelming support of the referendum”.