Allendale sells its water system for $18M. Here's what residents can expect

Marsha A. Stoltz, NorthJersey.com
·2 min read

ALLENDALE — Consolidating a 20-year relationship, borough officials approved the $18 million sale of its water system to Veolia New Jersey on Wednesday.

The Hackensack-based successor to Suez/United Water serves about 75% of Bergen County and an estimated 1.6 million residents and businesses throughout New Jersey.

The sale was approved by residents in a November 2021 referendum.

Rates are not expected to increase immediately, said Alan Weland, vice president and general manager of Veolia's New Jersey operations. Residents will be billed directly for Veolia's services, he said.

Allendale Director of Operations Ron Kistner welcomes Veolia Superintendent of Operations James Fahey, and Manager of Production Joshua Engelking inside Allendale's New Street treatment plant after the transfer to Veolia.
Allendale Director of Operations Ron Kistner welcomes Veolia Superintendent of Operations James Fahey, and Manager of Production Joshua Engelking inside Allendale's New Street treatment plant after the transfer to Veolia.

“We have been expanding in New Jersey because municipalities and small independent operators are finding it increasingly difficult to maintain their facilities and meet today’s health, safety and environmental regulations,” Weland said. “They are turning to Veolia because they know the company has the expertise, the experience and the resources to transform systems and services while maintaining affordable rates."

The sale will allow the borough to "retire all our municipal debt" and provide "a very strong balance sheet going forward," said Mayor Ari Bernstein.

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"Veolia will be making much-needed investments in and improvements to our water system while maintaining low rates, and Allendale’s residents will continue to receive great service from Veolia," Bernstein said. "I am truly thankful to our Allendale Water Committee, Councilwoman Liz Homan, and our team of professionals who guided the borough through the process."

Allendale Councilwoman Liz Homan, Vice President and General Manager NJ Division Alan Weland, and Allendale Mayor Ari Bernstein at signing of water supply contract.
Allendale Councilwoman Liz Homan, Vice President and General Manager NJ Division Alan Weland, and Allendale Mayor Ari Bernstein at signing of water supply contract.

Veolia has provided half of the borough's drinking water for more than 20 years and operated its system under contract for 10 years, Homan said. However, the Water Committee began a more in-depth search for long-range solutions in 2019 when faced with aging water infrastructure, increasing complexity of regulatory compliance and water treatment protocols.

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"After considerable research and analysis, the Water Committee and Borough Council decided the best option was to have a capable, regulated utility, with water professionals and experts managing the quality, safety and distribution of our water," Homan said. "The delivery of safe drinking water has become a very regulated, technical business, and Allendale is fortunate to have Veolia provide affordable, quality water to Allendale residents for years to come."

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Council President and Mayor-elect Amy Wilczynski said the main reason for the sale was "the increase in emerging contaminants."

"We do not have the staff or expertise to handle the ever-changing regulations, and our infrastructure is very old," Wilczynski said.

This article originally appeared on NorthJersey.com: Allendale sells its water system. Here's what it means for residents