Vineland awards $1.36M radium removal contract, advances dynamic utility rate recovery clause

Vineland awards $1.36M radium removal contract, advances dynamic utility rate recovery clauseThe New Jersey municipality approved a sole-source bid for Z-88 media replacement at Wells 5 and 12, and introduced an ordinance to pass fluctuating energy and chemical treatment costs directly to ratepayers.

City Council approved a $1,363,550 contract to Colorado-based Water Remediation Technology, LLC for radium removal media replacement.

The vendor was the sole bidder for the Z-88 media replacement project at municipal Wells 5 and 12.

Council advanced Ordinance 2026-42 on first reading, which removes a static $0.437 per 1,000 gallons surcharge in favor of a dynamic recovery cost clause.

The new rate mechanism will adjust billings upward or downward based on the utility's actual energy, chemical, and equipment costs compared to budgeted funds.

The Vineland City Council in New Jersey has greenlit a $1.36 million capital investment to maintain water quality at two municipal groundwater sources, while simultaneously moving to restructure how the utility recovers operational costs. During the June 9 meeting, the council unanimously approved a $1,363,550 contract to Westminster, Colorado-based Water Remediation Technology, LLC. The contract covers the replacement of Z-88 radium removal media at the city's Well No. 5 and Well No. 12. According to municipal documents, Water Remediation Technology was the sole bidder for the project, which was recommended for approval by the Business Administrator. The item was passed without discussion as part of the council's consent agenda. In parallel, the council passed the first reading of Ordinance 2026-42, which alters the Vineland Water-Sewer Utility's rate structure. The ordinance eliminates a previously fixed escalation calculator of $0.4370250 per 1,000 gallons. In its place, the city is implementing a dynamic Recovery Cost Clause. This new mechanism will allow the utility to adjust customer billings either upward or downward based on real-time fluctuations in energy prices for pump stations and tanks, as well as the costs of treatment chemicals, process equipment, and material replacement. The utility will calculate the difference between anticipated budgeted funds and actual costs monthly, banking the differences to net out over or under recoveries. The utility retains the authority to defer pass-throughs to subsequent periods if necessary to avoid undue price volatility for customers. A final public hearing on the rate ordinance is scheduled for June 23.