Gloucester Township Observer – August 8th Special Meeting Recap (Edited)

We had some challenges with this video so rather than doing a complete do-over we cut it up and shortened it at the same time.  

As always, this this video and page out with your friends and neighbors.  

August 8^th Special Council Meeting Recap

Council President reads the rules for the meeting and lets us know the meeting time is unlimited.  

Timeline breakdown

• In January 2023 Gloucester Township applied to dissolve the MUA with the local finance board.
• On May 5^th, 2023, the local finance board agreed to allow the dissolution of the MUA.
  • Residents question this move and ask how much it’s going to save, if this was just a money grab and if the intention was to sell the MUA to American Water. 
• With a July 2^nd due date, the township was able to put out a request for bids to sell the Sewer Utility.
  • The claim was that the township just wanted to know the value of the asset that they controlled.
• 2 Bids were received to purchase the sewer.
  • Aqua $52,000,000
  • NJ American Water $143,000,000
• On July 8^th the 2 bids were read, and American Water and Council chose to move forward with American Water as the winning bidder. This was the first reading of the ordinance.  (If passed there would be a 2^nd reading to then vote to put it on the November 5^th
• On August 8^th a second reading and public and public hearing took place in a special meeting. If passed the following would happen. The decision to sell the sewer would be put on the November 5^th 
• If voters choose to sell the MUA, the following will take place.
  • American Water would pay Gloucester Township back up to $200,000 for legal fees involving the sale.
  • American Water would spend $90,000,000 in the first 10 years to make capital improvements to our system. $55,000,000 of that will take place in the first 7 years. 
  • Rates for the first 2 years will remain the same but move to a monthly billing system. (Roughly $15 a month.)
  • The next 3 years rates can only be increased by 9% total over those 3 years. So, by year 5 our rates in theory would be $16.71 per month.  ($200 yearly.)
  • Rate increases after year 5 will have to be approved by the NJ Board of Public Utilities. (Except in the case where the “Resiliency and Environmental System Investment Charge Program” comes into play.  NJ Bill 4971)
  • NJ American Water will hire up to 23 Sewer Utility workers from GT for at least 6 months provided they pass their screening process. (Background checks and drug testing are listed)  They will receive equal or better pay and benefits that line up with American Water’s standard plans.  (Not the same benefits they have now)
  • Seniors will still receive the same discount they had with the GTMUA.
  • Cleanouts that were performed by GTMUA in the past will not be performed by Public Works. (Orlando Mercado guarantees it.) 

Public Portion

• David Leader asked why the mayor is not present since he may benefit from the sale and why Gabrielle Mosquera is not present since she’s the director. 
• Said multiple times throughout the night, if it’s not broken dont fix it. 
• Ira Mayor involved in the dissolution, but this was a 2-step plan 
• Dena asks who was responsible for this idea to sell and Orlando takes the opportunity to throw Cardis and the bus with him not being present.
• Ira asks about the rate being protected, but what about extra fees
• Ray does math and nobody follows along. It’s an expensive flush of the toilet 
• Dennis Palmer – Post bid change. What would DCA think about a post bid change 
• Billing per gallon. Will this practice be replacing the flat rate – 
• Where is $90M in infrastructure going if our own capital projects were only $20M 
• Barry Salvitore is told the old “BPU will protect you” excuse.
• Denise Coyne drops facts of what the almighty protective BPU approved for other towns in 2024 
• Jess brings up the argument with Jim Nash where he claims that what happens in other states doesn’t matter. Why can’t we wait to see what is best for residents? 
• Few people talked about the mayor not being there and how the conflict upsets them 
• Jen asks what they are going to do differently if they pay down the debt.
• Resident are not on the Org Chart 
• Illegal meeting / Going on the ballot clip
• Terri Fretz – Ordinance states the sale is in the benefit of the residents, what are they? Orlando says the same thing 4 different ways. Like you guaranteed the cleanouts, will you guarantee you are not going to backdoor us 
• What do you tell the seniors about an increase? 
• Dena calls out Orlando for speaking to everyone with disrespect.
• Orlando then resorts to personal attacks on Ray Paladoro
• Orlando threatens that the Sewer Utility if not sold is not under the scrutiny of the BPU eluding to rate hikes if they dont get their way
• Meeting ends with Orlando not taking everyone who wants to speak even though it is unlimited time.