New Jersey § 58:26-15

§ 58:26-15.

Any contract for the provision of water supply services negotiated and awarded to

a vendor by a contracting unit pursuant to this act, or the “Local Public Contracts

Law,” P.L. 1971, c. 198 ( C. 40A:11-1 et seq. ), shall include, but shall not be limited to, provisions concerning: a. The allocation of the risks of financing and constructing a water supply facility

including delays in completion of the construction of the system, construction and

financing cost overruns and increased costs resulting from change orders, construction

changes required by revisions in applicable laws, rules, or regulations, failure of

the system to achieve its required operating performance or efficiency, changes in

tax benefits, and the need for equity contributions in addition to those provided

for in the contract; b. The allocation of the risks of operating and maintaining a water supply facility,

including excessive or nonscheduled periods of inoperation or technical failure, excess

labor and materials costs due to underestimation, changes in operating procedures

required by revisions in applicable laws, rules, or regulations, changes in the quantity

or composition of water delivered for filtration or treatment, excessive operation

or maintenance costs due to poor management, and increased costs of distribution of

the water resulting from costs associated with filtration or treatment; c. The allocation of the risks associated with circumstances or occurrences beyond

the control of the parties to the contract; d. The defaulting and termination of the contract; e. The periodic preparation by the vendor of an operating performance report and an

audited balance statement of the water supply facility, which shall be submitted to

the contracting unit, the department and the division; f. The intervals at which the contract shall be renegotiated; g. The employment of current employees of the contracting unit whose positions or

employment will be affected by the terms of the contract; and h. The formulas to be used to determine the charges, rates, or fees to be charged

for the water supply services, and the methodology or methodologies used to develop

these formulas.