NJDEP Recommends New Public Entity To Operate Trenton Water Works

LAWRENCE TOWNSHIP, NJ – On Monday Commissioner Shawn M. LaTourette of the New Jersey Department of Environmental Protection (DEP) released a report that highlights specific deficiencies at Trenton Water Works. As a result, LaTourette has recommended the formation of a new public entity to operate the water utility.

This entity must be separate and independent from Trenton municipal government; hence, able to access special financing, advance capital work, be operationally efficient, attract additional talent, and remain free from political interference, the NJDEP said.

The technical, managerial, and financial assessment of Trenton Water Works (TWW) said the utility’s physical assets “suffer from mismanagement and a chronic lack on maintenance.” it noted the lack of personnel training, poor performance of critical system functions and a general disregard for recommended operations and maintenance practices.

TWW serves five Mercer County towns – Lawrence, Ewing, Hamilton, Trenton, and Hopewell. It also provides service to Bordentown on a temporary basis.

The Mayors of all five towns - W. Reed Gusciora (Trenton), Jeff Martin (Hamilton Township), Bert Steinmann (Ewing), Patricia Hendricks Farmer (Lawrence Township), and Courtney Peters-Manning (Hopewell Township) - released a joint statement and agreed with the NJDEP’s recommendations.

“We, the Mayors of TWW-serviced towns, agree that the status quo is not sustainable, and we believe that creating a new public utility, with governance that allows for greater operational independence and collaboration across municipalities, is a necessary step forward,” the joint statement said.

“It is important to note that the majority of TWW’s customers—55 percent - reside outside of Trenton, yet the other four municipalities have no formal role in TWW’s governance or authority over its operations. This disconnect between the service area’s needs and TWW management underscores the necessity of a new governance model.”

Based on the NJDEP’s independent third-party assessments, the current status quo is not an effective solution and a new utility entity could be successful if independent of Trenton’s municipal government. They also emphasize that this new entity can meet and maintain compliance with safe drinking water standards and ensure the long-term sustainability of system assets if its governance, management, and operations are fully modernized and professionalized.

“The strain on TWW’s outdated infrastructure has resulted in the need for many costly upgrades. It is important to note that New Jersey's water systems with large multi-municipality service areas like TWW have capital projects costing millions of dollars. TWW is no exception, as highlighted by its proposed $600 million capital improvement program from the early 2000’s,” the joint statement said.

“The mayors representing TWW’s service area—including Jeff Martin of Hamilton Township, Bert Steinmann of Ewing Township, Patricia Hendricks Farmer of Lawrence Township, Courtney Peters-Manning of Hopewell Township, and W. Reed Gusciora of the City of Trenton—have agreed to work together to fundamentally improve and make needed investments as part of this transformation to a new public utility entity. Our residents deserve nothing less.”

The mayors went on to highlight their key priorities for establishing a dedicated public utility entity to achieve their goal. These include:

• A complete and transparent appraisal of the new public entity-creation process.

• An accounting of the costs that will be needed to fairly compensate the City of Trenton for its asset.

• An assessment of the project’s impact on rates and fees.

• A public campaign to announce how the new structure will impact ratepayers such as the necessary capital work, including upgrades to the water filtration plant, improvements to the distribution system, and the creation of new positions with competitive salaries to attract and retain skilled professionals.

“The collaboration between mayors is already underway and will continue to accelerate over the next six months,” the statement said. “Together, we aim to restore the public's faith and confidence in this new entity.”

Here are the links to the reports released by the NJDEP:

• Technical, Managerial and Financial Report
• 360 Assessment Report
• A Summary of the Independent Assessments of TWW

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