A key topic was the lead service line replacement program, introduced by New Jersey American Water. This initiative is driven by a 2021 law requiring the replacement of all lead and galvanized service lines by 2031. Chelsea Culp, from New Jersey American Water, explained the utility’s responsibility for lines from the water main to the curb, while homeowners are responsible for lines from the curb into their homes. The challenge of identifying customer-owned portions of the lines was underscored, as utilities have not historically tracked this information. Culp emphasized the importance of resident participation, stating, “The more we know, the better organization we can have,” and highlighted efforts such as door-to-door canvassing and self-identification options for residents.

Christine Ballard from CDM Smith elaborated on communication strategies, which include postcards and door hangers left for residents not home during visits. The presentation revealed that Dunellen has 1,600 customers with unknown service line material, and 30 identified as having lead or galvanized lines. Culp reassured that line replacements would incur no out-of-pocket costs for residents, as they are covered by existing utility rates. The discussion included council inquiries about the safety of newly installed services, with positive assurances provided.

The meeting also focused on PILOT agreements for redevelopment projects at 440 and North Avenue. These agreements aim to facilitate financing for multi-dwelling rental projects, including affordable housing and commercial space. The projects are expected to cost approximately $18.75 million and include community benefits, such as enhancing pedestrian safety and streetscape improvements.

The 30-year PILOT agreement structure was detailed, with initial payments set at 10% of gross revenue for the first decade, increasing incrementally. Current tax revenues from the properties are approximately $46,000, but projections under the PILOT suggest the borough could receive around $7.28 million over the agreement’s duration. The necessity of the PILOT for project viability was emphasized, with metrics such as the internal rate of return (IRR) and debt service coverage ratio being crucial for financing. The borough’s projected net benefit in the second year, after accounting for costs associated with new residents and school children, is approximately $132,000.

Public comments included concerns about the impact of PILOT agreements on taxpayers and the distribution of unit types in the redevelopment projects. The preference for smaller units, such as studios and one-bedrooms, aligns with market trends and considerations regarding school-age populations and vehicle numbers.

The council also addressed emergency responses to recent storms, with significant gratitude expressed to community volunteers and emergency services. The fire department’s commendable response to a second alarm warehouse fire and their participation in training and community events were highlighted. Efforts to recruit new fire department members were discussed, with opportunities for junior and full members.

In addition to these major topics, the council handled routine matters, including ordinance introductions, resolutions for bill payments, and personnel changes. Notably, the resignation of Maria J. Santos as assistant tax collector and the appointment of Charles Lopez as deputy emergency management coordinator were approved. The meeting concluded with a transition to an executive session to discuss litigation matters, with the next council meeting scheduled for September 2nd.