To deal with what they say are deteriorating water and sewer systems, one township is calling in a private company to make massive improvements under an $811 million deal -- but some residents say it’ll come at a big cost.

In a series of public meetings, Edison Township residents have brought up concerns about increasing rates, service quality and the township government’s transparency as it considers a 40-year concession agreement with SUEZ North America.

The deal would see the private water company leasing the town’s water and sewer systems and making major structural improvements.

“Forty years? That’s not fair to your kids or your grandkids," Edison resident and library board member Joyce Ship-Freeman remarked Tuesday afternoon. “I won’t be here unless there’s some kind of magical pill to let me live past 100. How is it fair to saddle people for 40 years?”

After a heated five-hour public hearing last Thursday, SUEZ Community Relations Manager Ghilianie Soto said the agreement finds the right balance between keeping rates reasonable and making repairs to the system.

“The foundation of the agreement between SUEZ and the township is predicated on the concept of rate stability,” Soto said. “In order to protect ratepayers while providing much-needed infrastructure improvement, the township and SUEZ negotiated an agreement that will keep rates stable for the long-term.”

Residents pack an April 2 information session with SUEZ at the Edison Senior Citizen Center. (Gianluca D'Elia | NJ Advance Media for NJ.com)

In a letter to residents, Mayor Tom Lankey said water and sewer rates would rise 4.9 percent in the first seven years and then decrease gradually to a 3.5 percent. The deal will also maintain a rate freeze program for senior citizens, according to Lankey’s letter.

The average residential bill, SUEZ said, will go up about $3.30 a month for water customers, and $1.90 a month for sewer customers, for the first seven years of the deal.

Mike Yarnell, who lives in the Clara Barton neighborhood, said he was skeptical of the agreement at a Wednesday information session, and hoped the town would consider other options.

“I think it’s going to be a problem for the township, and I think there’s other ways for them to deal with the problem, rather than having a 40-year contract,” Yarnell said. “They should float a bond, get help from the state and correct the system internally rather than privatizing.”

Though the township owns its water system, about 12,800 of Edison’s 50,000 residents are served by New Jersey American Water (NJAW), which has leased the water lines from the town for about 22 years. Another 29,000 residents are served by its sewer system. The expiration of that lease is coming up this year.

Edison has been adamant to keep its water and sewer systems publicly owned. The township started looking for other options after declining an offer from NJAW to buy Edison’s water and sewage systems.

“New Jersey American Water is proud of the water service we provided to part of Edison Twp. under a long-term operations and maintenance concession agreement for the past 22-plus years,” Denise Venuti Free, NJAW’s director of communications, said.

“We respect the town’s decision to pursue a concession agreement that encompasses both water and wastewater. New Jersey American Water did not provide a bid, as our company is focusing on other growth efforts in New Jersey.”

The Brunswick pump station in Edison is in need of repair, officials say (Courtesy of Ghilianie Soto)

The concession agreement with the Paramus utility also lets sewer department employees in the township work for SUEZ if they choose to.

The agreement includes more than $851 million in water and sewer infrastructure, as well as another $100 million for other infrastructure improvements over the next seven years. Under this deal, the township would get $105 million upfront, with $265 million in annual payments after that.

The money will help the town pay off utility debt, stabilize its budget and build a brand new community center, officials said.

At a hearing at Middlesex County College that ran past 11 p.m. last Thursday, some residents pointed to past problems with Suez in other cities — including Hoboken, which is suing SUEZ over water main breaks.

Several residents pushed for the township to put the concession agreement to a referendum so residents could vote on it in the June primary.

“Highland Park, our neighbors, managed to keep their water and sewer systems public. Why can’t Edison do this?” Bruno Corry, a retired pipe designer who has lived in Edison for 28 years, asked. “They also brought this up for referendum. We should be able to do that here too. We should be able to decide what happens to our water and sewage.”

Another resident, John Hsu, feared the agreement is moving too quickly without public input or information. A full copy of the almost 800-page agreement, was made available for the public at the clerk’s office just a couple of days before the meeting.

“When I talked to my neighbors, only one or two of them knew about this issue,” Hsu said.

Township Special Counsel Joe Baumann said the township did everything it could to get the word out, noting that the forum was being streamed live for Edison’s TV channel and that there would be “numerous opportunities” for discussion.

For the deal to go through, the township council must approve it first, as well as the Board of Public Utilities, the Department of Environmental Protection and the Department of Consumer Affairs.

Food & Water Watch organizer Junior Romero said he hopes the town pushes a vote on the deal until after the next election, so the public has an opportunity to vote on it in November. A petition to the town council to reject the deal has gained 300 signatures so far, he said.

“This is a multigenerational decision affecting the lives of residents, their children, and their grandchildren,” Romero said.

“It requires strong public input and thorough scrutiny. Edison must host additional public meetings and set up a public review committee before agreeing to trap the township into this 40-year contract.”

In a fact sheet sent to residents, the township said it will establish a committee with residents and SUEZ representatives to “keep the line of communications open and clear.”

Update: The concession agreement is no longer being presented to the township council at an April 10 meeting.

Read more of NJ.com’s coverage of New Jersey water issues here.

Gianluca D’Elia may be reached at gdelia@njadvancemedia.com. Follow him on Twitter @gianluca_delia. Find NJ.com on Facebook.

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