SENATE, No. 2833

STATE OF NEW JERSEY

213th LEGISLATURE

 

INTRODUCED MAY 18, 2009

 


 

Sponsored by:

Senator FRED H. MADDEN, JR.

District 4 (Camden and Gloucester)

 

 

 

 

SYNOPSIS

     Permits price adjustments in local public contracts for asphalt cement and fuel.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning certain price adjustments in local public contracts and supplementing P.L.1971, c.198 (C.40A:11-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Any contract entered into pursuant to section 16 of P.L.1971, c.198 (C.40A:11-16), which includes the use of asphalt, shall include an adjustment clause for changes in the cost of asphalt cement.  The adjustment clause shall be expressed by the following formula: A=(MA-BA) x T, where:

 

     A= Asphalt Price Adjustment;

     MA= Monthly Asphalt Price Index, determined by the New Jersey   Department of Transportation each month;

     BA= Basic Asphalt Price Index in effect at the time of the bid, as      published by the New Jersey Department of Transportation in its

     "Standard Specifications for Road and Bridge Construction," as

     revised by the "Standard Inputs" periodically issued by the

     department; and

     T= Tons of New Asphalt Binder, determined by multiplying the

     percentage of new asphalt binder in the approved job mix formula

     by the weight of hot mix asphalt.

 

     b.    Adjustments made in accordance with the provisions of this section shall be paid on a lump sum basis and shall be made monthly.

 

     2.    a.  Every contract entered into pursuant to section 16 of P.L.1971, c.198 (C.40A:11-16) shall include a provision for a fuel price adjustment.  Fuel eligible for fuel price adjustment shall be the sum of the quantities of the eligible pay items in the contract multiplied by the fuel usage factor, as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the Department.  Fuel Price Adjustment shall be determined on a monthly basis by a the formula: F= (MF-BF) x G, where:

 

     F= Fuel Price Adjustment;

     MF= Monthly Fuel Price Index, determined by the New Jersey

     Department of Transportation each month;

     BF= Basic Fuel Price Index in effect at the time of bid, as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the Department; and

     G= Gallons of Fuel Available for Price Adjustment.

 

     b.    Adjustments made in accordance with the provisions of this section shall be paid on a lump sum basis and shall be made monthly.

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would require that every contract entered into pursuant to section 16 of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-16) shall include an adjustment clause for changes in the cost of asphalt cement and a provision for a fuel price adjustment. This bill will take effect immediately, bearing in mind the ability of the Local Finance Board to grant exceptions for "extraordinary circumstances" to the limit on final appropriations for any budget year, as set forth in N.J.S.A.40A:4-45.3d.