With less than a week before bids are due, Berkeley Heights has issued its final update on the proposed sale of the Township’s public sewer system. Addendum #5—released just days before the July 1 deadline—confirms several long-awaited details. But instead of strengthening protections for workers and residents, the final version actually pulls some key safeguards back.

At a time when the community is being asked to consider a decades-long transfer of public infrastructure to a private company, the latest changes may leave voters with more questions than answers.

Fewer Job Protections for Public Workers

One of the most significant changes is buried in a small but impactful revision: protections for current sewer employees have been cut in half.

Earlier versions of the bid documents required the winning company to guarantee jobs for sewer workers for at least two years. Now, that number is just one year.

The sewer system director still gets five years of job security—but every other position can be reevaluated or eliminated after 12 months.

That matters. Several workers are close to vesting in their pensions, and others may now be weighing whether to stay or go. With just a one-year guarantee, there’s little certainty that current staff will be able to finish their careers in Berkeley Heights—despite years of public service.

Finally A Starting Rate for Residents

Until now, there’s been a frustrating gap in the financial picture: what’s the starting point for future sewer rate increases?

Addendum #5 finally gives us an answer: the 2024 base sewer rate will be $281.45 per year. That’s the number on which all future increases will be calculated under the seven-year price cap included in the sale contract.

Here’s how the rate cap breaks down: Year 1: Max 2% increase. Years 2–5: Max 3% increase per year. Years 6–7: Max 4% increase per year.

After that, there’s no cap. Rates would be regulated by the state Board of Public Utilities (BPU)—not the Township—and could rise at the private company’s discretion, subject to state approval.

Smaller Deposit, Same Deadline

The addendum also makes a few technical adjustments. The bid deadline is still July 1, but companies will now only need to put down 5% of their proposed purchase price as an escrow deposit—down from 10%. That lowers the upfront financial burden on bidders, potentially encouraging more companies to submit proposals.

One thing that hasn’t changed: bidders must accept all terms exactly as written. If they try to change anything—whether about labor, pricing, or operations—the Township can throw their bid out.

Still No Clear Answers on Oversight or Public Benefits

Even with all five addenda released, some of the biggest public-facing questions remain unanswered.

The private company will take over billing, customer service, and emergency response—but there are no standards for how fast they must respond or how residents can escalate complaints.

The Township will have no formal power to intervene if things go wrong after the sale.

There’s no plan to use sale proceeds for schools, shared services, or even guaranteed tax relief.

Residents will not be protected from higher costs after year seven.

And despite years of service, public workers nearing pension vesting may be left in limbo.

Looking Ahead

If the Township receives qualifying bids, the next step will be to place the sale on the November 2025 ballot. From that point on, the decision will rest entirely with voters.

If the sale is approved, the system—including all infrastructure and operations—will be permanently transferred to the selected private company. There will be no option for the Township to reclaim control down the line.

What’s at Stake

This sale is being pitched as a smart financial move—one that takes risk off the Township’s shoulders and brings in upfront money that can be used for other priorities.

But the fine print tells a more complicated story.

The protections for residents and workers have been thinned out. The Township is giving up oversight. And voters are being asked to make a permanent decision based on documents that are still changing—right up to the final week.

As Berkeley Heights moves toward the July 1 deadline and the fall referendum, residents deserve time, space, and clarity to ask: Are we giving up too much control—and getting enough in return?

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