WASTEWATER SYSTEM SALE
The Need: Similar to the water system, much of the Borough’s sewer system was constructed in the 1930s and 1940s and reaching the end of its useful life. The elected leaders in Mount Ephraim commissioned their municipal engineer to evaluate and develop a capital improvement plan for the wastewater collection system. That report confirmed the need to make significant investment – $1.5 million in the two existing pump stations alone - into the aging system or risk further deterioration or failure of the system.
The Solution: In April 2018, the Borough requested Bids for the sale of the system. New Jersey American Water bid $1.4 million and was selected as the successful bidder. A public referendum was held in November 2018, and voters overwhelmingly approved sale by a 4:1 margin. New Jersey American Water took over operations of the system in July 2019.
THE RESULTS
To date, New Jersey American Water has invested $2.2 million into the wastewater system. The investments included two sewer main replacement projects coordinated with the Borough’s road paving program, pump replacements and the purchase of emergency backup pumps, the addition of equipment to the Harding Avenue pump station to prevent sewer backups and prolong the life of the station’s pumping equipment, and the installation of control and data acquisition equipment to both pump stations. By the end of the year, New Jersey American Water will complete replacement of the Second Avenue Pump Station, investing an additional $2.3 million.
BOTTOM LINE
The Borough’s sale of the municipal water and sewer systems to New Jersey American Water resulted in much needed capital investments to upgrade the aging infrastructure. With the ability to finance necessary capital investments in the most cost effective manner, New Jersey American Water was able to make necessary improvements to the systems without significant impact to the rates of the Borough’s residents.