The Town of Guttenberg is suing the Township of North Bergen in an effort to halt a $38 million lease deal with the township’s municipal utilities authority (MUA) that both municipalities utilize.
The four-count lawsuit, filed in Hudson County Superior Court one week ago, alleges that the ordinance adopted by the North Bergen Board of Commissioners on August 12th is “arbitrary and capricious” and also violates a 1989 service agreement with the NBMUA.
“The Ordinance violates Guttenberg’s right … to consent to the construction or acquisition of any facilities or equipment constituting a part of the ‘Sewerage System’ utilized for the provision of service to Guttenberg because the Ordinance authorizes entry into and execution of the Lease Agreement enable NBMUA to acquire the North Bergen sewer system,” writes Guttenberg counsel in the matter John Stone, a partner at DeCoitiis Doyle.
He also contends that Guttenberg has not consented, nor were they even consulted, on the lease agreement, which could increase rates for Guttenberg residents without providing any additional benefits – all in breach of the 37-year-old agreement…