ASSEMBLY, No. 831
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman ARNONE and Assemblywoman FARRAGHER
An Act concerning public contracts, and amending parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1981, c.447 (C.5:10-21.3) is amended to read as follows:
3. Any purchase, contract, or agreement may be made, negotiated, or awarded pursuant to section 2 of [this act] P.L.1981, c.447 (C.5:10-21.2) when the subject matter consists of:
a. Services which are professional or technical in nature or services which are original and creative in character in a recognized field of artistic endeavor;
b. Items which are perishable or subsistence supplies;
c. Items which are specialized equipment or specialized machinery necessary to the conduct of authority business;
d. Items or services supplied by a public utility subject to the jurisdiction of the Board of Public Utilities, and tariffs and schedules of the charges made, charged or exacted by the public utility for those items or services which are filed with the board;
e. Items which are styled or seasonal wearing apparel;
f. Items or services which, in order to compete successfully with other sports and entertainment facilities, the authority deems necessary to provide quality athletic contests, horse racing, or other spectator sporting events and trade shows, expositions, concerts, and other public events. These items and services shall include but not be limited to: food concessions; playing surfaces for football, soccer, tennis, or other athletic contests; indoor foot racing tracks; ice making and resurfacing equipment and services; matrix and scoreboard systems; ticket printing and ticket selling services; materials, supplies, equipment and services for preparation and maintenance of horse racing or horse showing surfaces; horse race starting gates and equipment; program printing; pari-mutuel computer or totalisator equipment or services; horse racing teletimer equipment or services; horse racing photo finish equipment or services; and items or services which are part of or related to promotional or advertising efforts;
g. The lease of such office space, office machinery, specialized equipment, buildings or real property as may be required for the conduct of authority business; [or]
h. The sale or licensing of advertising rights;
i. The performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the authority, the entire price of which shall be established as a percentage of the resultant savings in energy costs; provided, however, that such contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings, and shall conform in all respects to the requirements of subsection y. of section 5 of P.L.1971, c.137 (C.5:10-5); or
j. The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the authority. Any agreement providing for such purchase or acquisition may provide for payments due from the authority to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the authority fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the authority its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the authority.
(cf: P.L.1981, c.447, s.3)
2. Section 5 of P.L. 1971, c.137 (C.5:10-5) is amended to read as follows:
5. Except as otherwise limited by the act, the authority shall have power:
a. To sue and be sued;
b. To have an official seal and alter the same at pleasure;
c. To make and alter bylaws for its organization and internal management and for the conduct of its affairs and business;
d. To maintain an office at such place or places within the State as it may determine;
e. To acquire, hold, use and dispose of its income, revenues, funds and moneys;
f. To acquire, lease as lessee or lessor, rent, lease, hold, use and dispose of real or personal property for its purposes;
g. To borrow money and to issue its negotiable bonds or notes and to secure the same by a mortgage on its property or any part thereof, and to enter into any credit agreement, and otherwise to provide for and secure the payment of its bonds and notes and to provide for the rights of the holders thereof;
h. To make and enter into all contracts, leases, and agreements for the use or occupancy of its projects or any part thereof or which are necessary or incidental to the performance of its duties and the exercise of its powers under the act;
i. To make surveys, maps, plans for, and estimates of the cost of its projects;
j. To establish, acquire, construct, lease the right to construct, rehabilitate, repair, improve, own, operate, and maintain its projects, and let, award and enter into construction contracts, purchase orders and other contracts with respect thereto in such manner as the authority shall determine, subject only to the provisions of sections 1 through 3 of P.L.1981, c.447 (C.5:10-21.1 through 5:10-21.3) and section 3 of P.L.1987, c.318 (C.5:10-21.1a);
k. To fix and revise from time to time and charge and collect rents, tolls, fees and charges for the use, occupancy or services of its projects or any part thereof or for admission thereto, and for the grant of concessions therein and for things furnished or services rendered by the authority;
l. To establish and enforce rules and regulations for the use or operation of its projects or the conduct of its activities, and provide for the policing and the security of its projects;
m. To acquire in the name of the authority by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or, except with respect to the State, by the exercise of the power of eminent domain, any land and other property, including land under water, meadowlands, and riparian rights, which it may determine is reasonably necessary for any of its projects or for the relocation or reconstruction of any highway by the authority and any and all rights, title and interest in such land and other property, including public lands, reservations, highways or parkways, owned by or in which the State or any county, city, borough, town, township, village, public corporation, or other political subdivision of the State has any right, title or interest, or parts thereof or rights therein and any fee simple absolute or any lesser interest in private property, and any fee simple absolute in, easements upon or the benefit of restrictions upon abutting property, to preserve and protect any project, except that the authority shall not have the right to exercise the power of eminent domain in connection with projects authorized under paragraphs (5), (6), and (7) of subsection a. of section 6 of P.L.1971, c.137 (C.5:10-6);
n. To provide through its employees, or by the grant of one or more concessions, or in part through its employees and in part by grant of one or more concessions, for the furnishing of services and things for the accommodation of persons admitted to or using its projects or any part thereof;
o. To hold and conduct horse race meetings for stake, purse or reward and to provide and operate a parimutuel system of wagering at such meetings, but subject only to the provisions of section 7 of the act;
p. To acquire, construct, operate, maintain, improve, and make capital contributions to others for transportation and other facilities, services and accommodations for the public's use of its projects and to lease or otherwise contract for the operation thereof;
q. Subject to any agreement with bondholders or noteholders, to invest moneys of the authority not required for immediate use, including proceeds from the sale of any bonds or notes, in such obligations, securities and other investments as the authority shall deem prudent;
r. To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality or political subdivision thereof, or from any other source and to comply, subject to the provisions of the act, with the terms and conditions thereof;
s. Subject to any agreements with bondholders or noteholders, to purchase bonds or notes of the authority out of any funds or money of the authority available therefor, and to hold, cancel or resell such bonds or notes;
t. To appoint and employ a president, who shall be the chief executive officer, and such additional officers, who need not be members of the authority, and accountants, attorneys, financial advisors or experts and all such other or different officers, agents and employees as it may require and to determine their qualifications, terms of office, duties and compensation, all without regard to the provisions of Title 11A of the New Jersey Statutes; provided that it is the express intent of the Legislature that the authority within its sole discretion shall utilize, to the fullest extent feasible, the services of the officers, personnel and consultants of the Meadowlands Commission, in connection with its project in the Meadowlands complex;
u. To do and perform any acts and things authorized by the act, under, through, or by means of its officers, agents or employees or by contract with any person, firm or corporation;
v. To procure insurance against any losses in connection with its property, operations or assets, in such amounts and from such insurers as it deems desirable;
w. To do any and all things, including, but not limited to, the creation or formation of profit or not-for-profit corporations, necessary or convenient to carry out its purposes and exercise the powers given and granted in the act; [and]
x. To determine the location, type and character of a project or any part thereof and all other matters in connection with all or any part of a project, notwithstanding any land use plan, zoning regulation, building code or similar regulation heretofore or hereafter adopted by the State, any municipality, county, public body politic and corporate, including but not limited to the Meadowlands Commission, or any other political subdivision of the State, except that all projects constructed after the effective date of this 1987 amendatory and supplementary act shall conform to the Barrier-Free Sub-Code promulgated as part of the State Uniform Construction Code pursuant to P.L.1975, c.217 (C.52:27D-119 et seq.) and further excepted that the authority shall consult with the Meadowlands Commission before making any determination as to the location, type and character of any project under the jurisdiction of the Meadowlands Commission;
y. To enter into contracts to provide for the performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the authority, the entire price of which shall be established as a percentage of the resultant savings in energy costs, such contracts to have a term not to exceed 15 years from the date of completion of the energy conservation project; provided, however, that these contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings. Any determination of energy cost savings shall take into account any amounts received by the authority from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual energy cost savings is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the authority shall continue to be obligated to pay such price, but the contractor shall reimburse the authority for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract. The payment obligations of the authority under any such contract may be made expressly subject to the prior payment of other creditors of the authority; and
z. The purchase or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the authority, such contracts to have a term not to exceed 15 years from the date of completion of the energy conservation project. Any agreement providing for such purchase or acquisition may provide for payments due from the authority to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the authority fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the authority its financial capability and resources to ensure the performance of the energy savings equipment and renovations that are installed in or made to buildings owned or leased by the authority.
(cf: P.L.1987, c.318,s .1)
3. N.J.S.18A:18A-5 is amended to read as follows:
18A:18A-5. Exceptions to requirement for advertising. Any purchase, contract or agreement of the character described in N.J.S.18A:18A-4 may be made, negotiated or awarded by the board of education by resolution at a public meeting without public advertising for bids and bidding therefor if
a. The subject matter thereof consists of:
(1) Professional services;
(2) Extraordinary unspecifiable services which cannot reasonably be described by written specifications, which exception as to extraordinary unspecifiable services shall be construed narrowly in favor of open competitive bidding where possible and the State Board of Education is authorized to establish rules and regulations limiting its use in accordance with the intention herein expressed; and the board of education shall in each instance state supporting reasons for its action in the resolution awarding the contract for extraordinary unspecifiable services;
(3) The doing of any work by employees of the contracting unit;
(4) The printing of all legal notices; and legal briefs, records and appendices to be used in any legal proceeding in which the contracting party may be a party;
(5) Textbooks, copyrighted materials, kindergarten supplies, and student produced publications and services incidental thereto;
(6) Food services and supplies, including food supplies for home economics classes, when purchased pursuant to rules and regulations of the State board and in accordance with the provisions of N.J.S.18A:18A-6;
(7) The supplying of any product or the rendering of any service by a public utility, which is subject to the jurisdiction of the Board of Public Utilities, in accordance with the tariffs and schedules of charges made, charged and exacted, filed with [said] the board;
(8) The printing of bonds and documents necessary to the issuance and sale thereof by a board of education;
(9) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with such services;
(10) Insurance, including the purchase of insurance coverage and consultant services;
(11) Publishing of legal notices in newspapers as required by law;
(12) The acquisition of artifacts or other items of unique intrinsic, artistic or historic character;
(13) Election expenses, including advertising expenses incidental thereto;
(14) Electronic data processing service obtained from another board of education;
(15) Driver education courses provided by licensed driver education schools;
(16) Performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, any [local] board of education, the entire price of which shall be established as a percentage of the resultant savings in energy costs; provided, however, that these contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings, and shall conform in all respects to the requirements of subsection j. of N.J.S.18A:18A-42; or
(17) The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the board of education. Any agreement providing for such purchase or acquisition may provide for payments due from the board of education to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the board of education fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the board of education its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the board of education.
b. It is to be made or entered into with the United States of America, the State of New Jersey, county or municipality or any board, body, officer, agency or authority or any other state or subdivision thereof.
c. The board of education has advertised for bids pursuant to N.J.S.18A:18A-4 on two occasions and has received no bids in response to its advertisement and, after reasonable inquiry, it is determined that no board, body, officer, agency or authority of the United States, or of the State of New Jersey or of any county or municipality in which the board of education is located is willing and able to perform any work or furnish or hire any materials or supplies in conformity with the specifications of the board of education. Any such contract or agreement entered into pursuant to this subsection c. may be made, negotiated or awarded only upon adoption of a resolution by the affirmative vote of two-thirds of the full membership of the board of education at a meeting thereof authorizing such a contract or agreement. Any amendment or modification of the terms, conditions, restrictions and specifications which were the subject of the competitive bidding pursuant to N.J.S.18A:18A-4 shall be stated in the resolution awarding the contract.
d. The board of education has advertised for bids pursuant to N.J.S.18A:18A-4 on two occasions and has rejected such bids on each occasion because the board of education has determined that they are not reasonable as to price on the basis of cost estimates prepared for the board of education prior to the advertising therefor or have not been independently arrived at in open competition, but no such contract or agreement may be entered into after such rejection of bids, unless:
(1) Notification of the intention to negotiate and a reasonable opportunity to negotiate shall have been given by the board of education to each responsible bidder;
(2) The negotiated price is lower than the lowest rejected bid price of a responsible bidder who bid thereon and is the lowest negotiated price offered by any responsible supplier and is a reasonable price for such work, materials, supplies or services;
(3) Any amendment or modification of the terms, conditions, restrictions and specifications which were the subject of competitive bidding pursuant to N.J.S.18A:18A-4 shall be stated in the resolution awarding the contract; and
(4) The negotiated price is lower than the price of the same or equivalent materials or supplies available from the State, county or municipality in which the board of education is located.
Whenever a board of education shall determine that a bid was not arrived at independently in open competition pursuant to this subsection d. of N.J.S.18A:18A-5, it shall thereupon notify the county prosecutor of the county in which the board of education is located and the Attorney General of the facts upon which its determination is based, and when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.
e. The board of education has solicited and received at least three quotations on materials, supplies or equipment for which a State contract has been issued pursuant to N.J.S.18A:18A-10, and the lowest responsible quotation is at least 10% less than the price the board would be charged for the identical materials, supplies or equipment, in the same quantities, under the State contract. Any such contract or agreement entered into pursuant to subsection d. or subsection e. may be made, negotiated or awarded only upon adoption of a resolution by the affirmative vote of two-thirds of the full membership of the board of education at a meeting thereof authorizing such a contract or agreement.
(cf: P.L.1985, c.527, s.1)
4. N.J.S.18A:18A-42 is amended to read as follows:
18A:18A-42. Any board of education may enter into a contract exceeding the fiscal year for the:
a. Supplying of:
(1) Fuel for heating purposes, for any term not exceeding in the aggregate, three years;
(2) Fuel or oil for use of automobiles, autobuses, motor vehicles or equipment, for any term not exceeding in the aggregate, three years;
(3) Thermal energy produced by a cogeneration facility, for use for heating or air conditioning or both, for any term not exceeding 20 years, when the contract is approved by the Board of Public Utilities. For the purposes of this paragraph, "cogeneration" means the simultaneous production in one facility of electric power and other forms of useful energy such as heating or process steam; or
b. Plowing and removal of snow and ice, for any term not exceeding in the aggregate, three years; or
c. Collection and disposal of [garbage and refuse] solid waste, for any term not exceeding in the aggregate, three years; or
d. Data processing service, for any term of not more than five years; or
e. Insurance, including the purchase of insurance coverages, insurance consultant or administrative services, and including participation in a joint self-insurance fund, risk management program or related services provide d by a school board insurance group, or participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6, or a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), for any term of not more than three years; or
f. Leasing or servicing of automobiles, motor vehicles, electronic communications equipment, machinery and equipment of every nature and kind, for any term not exceeding in the aggregate, five years; provided, however, such contracts shall be entered into only subject to and in accordance with rules and regulations promulgated by the State Board of Education; or
g. Supplying of any product or the rendering of any service by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, for a term not exceeding five years; or
h. Materials, supplies or services that are required on a recurring basis from year to year, for any term not exceeding in the aggregate, two years; however, such contract may be renewed yearly for a period not exceeding three additional years without any further solicitation for bids or bidding upon a finding by the board that the services are being performed in an effective and efficient manner, or that the materials and supplies continue to meet the original specifications. If a board of education elects to renew an existing contract, the terms and conditions of the existing contract shall remain substantially unchanged and any increase in the contract cost over the three year period shall be no greater than a total of 20% over the initial cost; or
i. Driver education instruction conducted by private, licensed driver education schools, for any term not exceeding in the aggregate, three years; [or]
j. Performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in the buildings owned or leased by, or operations conducted by, any [local] board of education, the entire price of which shall be established as a percentage of the resultant savings in energy costs, for a term not to exceed [10] 15 years from the date of completion of such energy conservation project; [except] provided, however, that these contracts shall be entered into only subject to and in accordance with rules [and], regulations [promulgated] or orders adopted by the [Department of Commerce, Energy and Economic Development pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),] Board of Public Utilities establishing a methodology for computing energy [costs] savings. Any determination of energy cost savings shall take into account any amounts received by the board of education from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual savings in energy costs is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the board of education shall continue to be obligated to pay such price, but the contractor shall reimburse the board of education for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract; or
k. Purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the board of education, for a term not to exceed 15 years from the date of completion of such energy conservation project. Any agreement providing for such purchase or acquisition may provide for payments due from the board of education to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the board of education fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the board of education its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the board of education.
All multiyear leases and contracts entered into pursuant to this section 18A:18A-42, except contracts for the leasing or servicing of equipment supplied by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, contracts for insurance coverages, insurance consultant or administrative services, participation or membership in a joint self- insurance fund, risk management programs or related services of a school board insurance group, contracts for participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6 [or], contracts for thermal energy authorized pursuant to subsection a. above, and contracts for the performance of work or services or the furnishing of materials, supplies or equipment to promote energy conservation authorized pursuant to subsection j. of this section, or contracts for the purchase or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project authorized pursuant to subsection k. of this section, shall contain a clause making them subject to the availability and appropriation annually of sufficient funds as may be required to meet the extended obligation, or contain an annual cancellation clause.
(cf: P.L.1988, c.143, s.4)
5. Section 5 of P.L.1986, c.43 (C.18A:64-56) is amended to read as follows:
5. Any purchase, contract or agreement of the character described in section 4 of P.L.1986, c.43 (C.18A:64-55) may be made, negotiated or awarded by the State college by resolution at a public meeting of its board of trustees without public advertising for bids or bidding therefor if:
a. The subject matter thereof consists of:
(1) Professional services; or
(2) Extraordinary unspecifiable services and products which cannot reasonably be described by written specifications, subject, however, to procedures consistent with open public bidding whenever possible; or
(3) Materials or supplies which are not available from more than one potential bidder, including without limitation materials or supplies which are patented or copyrighted; or
(4) The doing of any work by employees of the State college; or
(5) The printing of all legal notices and legal briefs, records and appendices to be used in any legal proceeding to which the State college may be a party; or
(6) Textbooks, copyrighted materials, student produced publications and services incidental thereto, library materials including without limitation books, periodicals, newspapers, documents, pamphlets, photographs, reproductions, microfilms, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, slides, films, filmstrips, video and magnetic tapes, other printed or published matter and audiovisual and other materials of a similar nature, necessary binding or rebinding of library materials and specialized library services; or
(7) Food supplies and services, including food supplies and management contracts for student centers, dining rooms and cafeterias; or
(8) The supplying of any product or the rendering of any service by [the] a public utility which is subject to the jurisdiction of the Board of Public Utilities, in accordance with the tariffs and schedules of charges made, charged and exacted, filed with [that] the board; or
(9) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with the services; or
(10) Specialized machinery or equipment of a technical nature which will not reasonably permit the drawing of specifications, and the procurement thereof without advertising is in the public interest; or
(11) Insurance, including the purchase of insurance coverage and consulting services, which exceptions shall be in accordance with the requirements for extraordinary unspecifiable services; or
(12) Publishing of legal notices in newspapers as required by law; or
(13) The acquisition of artifacts or other items of unique intrinsic, artistic or historic character; or
(14) The collection of amounts due on student loans, including without limitation loans guaranteed by or made with funds of the United States of America; or
(15) Professional consulting services; or
(16) Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions; or
(17) Contracts employing funds created by student activities fees charged to students or otherwise raised by students, not under the direct control of the college and expended by student organizations; or
(18) Printing, including without limitation catalogs, yearbooks and course announcements; or
(19) Data processing software programs, systems and service and the rental or lease of data processing equipment; or
(20) Personnel recruitment and advertising, including without limitation advertising seeking student enrollment; or
(21) Educational supplies, books, articles of clothing and other miscellaneous articles purchased by a State college bookstore for resale to college students and employees; or
(22) Purchase or rental of graduation caps and gowns and award certificates or plaques; or
(23) The performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the State college, the entire price of which shall be established as a percentage of the resultant savings in energy costs; provided, however, that such contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings, and shall conform in all respects to the requirements of subsection i. of section 28 of P.L.1986, c.43 (C.18A:64-79); or
(24) The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the State college. Any agreement providing for such purchase or acquisition may provide for payments due from the State college to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the State college fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the State college its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the State college.
b. It is to be made or entered into with the United States of America, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof.
c. The State college has advertised for bids pursuant to section 4 of P.L.1986, c.43 (C.18A:64-55) on two occasions and (i) has received no bids on both occasions in response to its advertisement, or (ii) has rejected the bids on two occasions because the State college has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the State college prior to the advertising therefor, or have not been independently arrived at in open competition, or (iii) on one occasion no bids were received pursuant to (i) and on one occasion all bids were rejected pursuant to (ii), in whatever sequence; any contract or agreement may then be negotiated by a two-thirds affirmative vote of the authorized membership of the board of trustees authorizing the contract or agreement; provided that:
(1) A reasonable effort is just made by the contracting agent to determine that the same or equivalent materials or supplies at a cost which is lower than the negotiated price are not available from any agency or authority of the United States, the State of New Jersey or of the county in which the State college is located, or any municipality in close proximity to the State college;
(2) The terms, conditions, restrictions and specifications set forth in the negotiated contract or agreement are not substantially different from those which were the subject of competitive bidding pursuant to section 4 of this article; and
(3) Any minor amendment or modification of any of the terms, conditions, restrictions and specifications, which were the subject of competitive bidding pursuant to section 4 of P.L.1986, c.43 (C.18A:64-55), shall be stated in the resolution awarding the contract or agreement; except that if on the second occasion the bids received are rejected as unreasonable as to price, the State college shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate and afford each bidder a reasonable opportunity to negotiate, but the State college shall not award the contract or agreement unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder, is the lowest negotiated price offered by any reasonable vendor, and is a reasonable price for the work, materials, supplies or services. Whenever a State college shall determine that a bid was not arrived at independently in open competition pursuant to subsection c. (ii) of this section, it shall thereupon notify the Attorney General of the facts upon which its determination is based and, when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust
law or laws relating to the unlawful restraint of trade.
(cf: P.L. 1994, c.48, s.111)
6. Section 28 of P.L.1986, c.43 (C.18A:64-79) is amended to read as follows:
28. A State college may only enter a contract exceeding 12 consecutive months for the:
a. Supplying of
(1) Fuel for heating purposes for any term not exceeding in the aggregate three years; or
(2) Fuel or oil for use in automobiles, autobuses, motor vehicles or equipment for any term not exceeding in the aggregate three years; or
b. Plowing and removal of snow and ice for any term not exceeding in the aggregate three years; or
c. Collection and disposal of [garbage and refuse] solid waste for any term not exceeding in the aggregate three years; or
d. Data processing programs, systems and services or rental or lease of data processing equipment for any term of not more than five years; or
e. Insurance for any term of not more than three years; or
f. Leasing or service of automobiles, motor vehicles, electronic communications equipment, machinery and equipment of every nature and kind for any term not exceeding in the aggregate five years; or
g. Supplying of any product or rendering of any service by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, for a term not exceeding five years; or
h. Providing of food supplies and services, including food supplies and management contracts for student centers, dining rooms and cafeterias, for a term not exceeding three years; or
i. Performance of work or services or the furnishing of materials or supplies for the purpose of conserving energy in buildings owned by, or operations conducted by, the contracting unit, the entire price of which is to be established as a percentage of the resultant savings in energy costs, for a term not exceeding [10] 15 years from the date of completion of the energy conservation project; provided, however, that [a contract is] these contracts shall be entered into only subject to and in accordance with rules [and], regulations or orders adopted by the [Department of Energy] Board of Public Utilities establishing a methodology for computing energy [cost] savings. Any determination of energy cost savings shall take into account any amounts received by the State college from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual energy cost savings is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the State college shall continue to be obligated to pay such price, but the contractor shall reimburse the State college for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract; or
j. Any single project for the construction, reconstruction or rehabilitation of a public building, structure or facility, or a public works project, including the retention of the services of an architect or engineer in connection with the project, for the length of time necessary for the completion of the actual construction; or
k. The management and operation of bookstores for a term not exceeding five years; or
l. Purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the State college, for a term not to exceed 15 years from the date of completion of such energy conservation project. Any agreement providing for such purchase or acquisition may provide for payments due from the State college to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the State college fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the State college its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the State college.
All multiyear leases and contracts entered into pursuant to this section, except contracts for the leasing or servicing of equipment supplied by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, or contracts and agreements for the provision of work or the supplying of equipment to promote energy conservation [and] authorized pursuant to subsection i. of this section, or contracts for the purchase or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project authorized pursuant to subsection l. of this section, shall contain a clause making them subject to the availability and appropriation annually of sufficient funds to meet the extended obligation or contain an annual cancellation clause.
(cf: P.L. 1994, c.48, s.117)
7. Section 5 of P.L. 1982, c.189 (C.18A:64A-25.5) is amended to read as follows:
5. Any purchase, contract or agreement of the character described in section 4 of P.L.1982, c.189 (C.18A:64A-25.4) may be made, negotiated or awarded by the county college by resolution at a public meeting of its board of trustees without public advertising for bids or bidding therefor if:
a. The subject matter thereof consists of:
(1) Professional services; or
(2) Extraordinary unspecifiable services and products which cannot reasonably be described by written specifications, subject however, to procedures consistent with open public bidding whenever possible; or
(3) Materials or supplies which are not available from more than one potential bidder, including without limitation materials or supplies which are patented or copyrighted; or
(4) The doing of any work by employees of the county college; or
(5) The printing of all legal notices and legal briefs, records and appendices to be used in any legal proceeding to which the county college may be a party; or
(6) Textbooks, copyrighted materials, student produced publications and services incidental thereto, library materials including without limitation books, periodicals, newspapers, documents, pamphlets, photographs, reproductions, microfilms, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, slides, films, filmstrips, video and magnetic tapes, other printed or published matter and audiovisual and other materials of a similar nature, necessary binding or rebinding of library materials and specialized library services; or
(7) Food supplies and services including food supplies and management contracts for student centers, dining rooms and cafeterias; or
(8) The supplying of any product or the rendering of any service by the public utility which is subject to the jurisdiction of the Board of Public Utilities, in accordance with tariffs and schedules of charges made, charged and exacted, filed with [said] the board; or
(9) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with such services; or
(10) Specialized machinery or equipment of a technical nature which will not reasonably permit the drawing of specifications, and the procurement thereof without advertising is in the public interest; or
(11) Insurance, including the purchase of insurance coverage and consulting services, which exceptions shall be in accordance with the requirements for extraordinary unspecifiable services; or
(12) Publishing of legal notices in newspapers, as required by law; or
(13) The acquisition of artifacts or other items of unique intrinsic, artistic or historic character; or
(14) The collection of amounts due on student loans, including without limitation loans guaranteed by or made with funds of the United States of America; or
(15) Professional consulting services; or
(16) Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions; or
(17) Contracts employing funds created by student activities fees charged to students or otherwise raised by students, not under the direct control of the college and expended by student organizations; or
(18) Printing, including without limitation catalogs, yearbooks and course announcements; or
(19) Data processing, software programs, systems and service and the rental or lease of data processing equipment; or
(20) Personnel recruitment and advertising, including without limitation advertising seeking student enrollment; or
(21) Educational supplies, books, articles of clothing and other miscellaneous articles purchased by a county college bookstore, or by a service or management company under contract with a county college to operate a county college book store for resale to college students and employees; or
(22) Purchase or rental of graduation caps and gowns and award certificates or plaques; or
(23) The performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the county college, the entire price of which shall be established as a percentage of the resultant savings in energy costs; provided, however, that such contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings, and shall conform in all respects to the requirements of subsection i. of section 28 of P.L.1982, c.189 (C.18A:64A-25.28); or
(24) The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the county college. Any agreement providing for such purchase or acquisition may provide for payments due from the county college to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the county college fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the county college its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the county college.
b. It is to be made or entered into with the United States of America, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof.
c. The county college has advertised for bids pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4) on two occasions and (i) has received no bids on both occasions in response to its advertisement, or (ii) has rejected such bids on two occasions because the county college has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the county college prior to the advertising therefor, or have not been independently arrived at in open competition, or (iii) on one occasion no bids were received pursuant to (i) and on one occasion all bids were rejected pursuant to (ii), in whatever sequence; any such contract or agreement may then be negotiated by a two-thirds affirmative vote of the authorized membership of the board of trustees authorizing such contract or agreement; provided, however, that:
(1) A reasonable effort is just made by the contracting agent to determine that the same or equivalent materials or supplies at a cost which is lower than the negotiated price are not available from any agency or authority of the United States, the State of New Jersey or of the county in which the county college is located, or any municipality in close proximity to the county college;
(2) The terms, conditions, restrictions and specifications set forth in the negotiated contract or agreement are not substantially different from those which were the subject of competitive bidding pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4); and
(3) Any minor amendment or modification of any of the terms, conditions, restrictions and specifications, which were the subject of competitive bidding pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4), shall be stated in the resolution awarding such contract or agreement; provided, further, however, that if on the second occasion the bids received are rejected as unreasonable as to price, the county college shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate and afford each such bidder a reasonable opportunity to negotiate, but the county college shall not award such contract or agreement unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder is the lowest negotiated price offered by any responsible vendor, and is a reasonable price for such work, materials, supplies or services.
Whenever a county college shall determine that a bid was not arrived at independently in open competition pursuant to subsection c. (ii) of this section, it shall thereupon notify the county prosecutor of the county in which the county college is located and the Attorney General of the facts upon which its determination is based and, when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.
(cf: P.L.1994, c.48, s.142)
8. Section 28 of P.L.1982, c.189 (C.18A:64A-25.28) is amended to read as follows:
28. Duration of certain contracts. A county college may only enter into a contract exceeding 12 consecutive months for the:
a. Supplying of:
(1) Fuel for heating purposes for any term not exceeding in the aggregate three years; or
(2) Fuel or oil for use in automobiles, autobuses, motor vehicles or equipment for any term not exceeding in the aggregate three years; or
b. Plowing and removal of snow and ice for any term not exceeding in the aggregate three years; or
c. Collection and disposal of [garbage and refuse] solid waste for any term not exceeding in the aggregate three years; or
d. Data processing programs, systems and services or rental or lease of data processing equipment for any term of not more than five years; or
e. Insurance, including the purchase of insurance coverages, insurance consultant or administrative services, and including participation in a joint self-insurance fund, risk management programs or related services provided by a county college insurance group, or participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6, for any term of not more than three years; or
f. Leasing or service of automobiles, motor vehicles, electronic communications equipment, machinery and equipment of every nature and kind for any term not exceeding in the aggregate five years; or
g. Supplying of any product or rendering of any service by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, for a term not exceeding five years; or
h. The providing of food supplies and services, including food supplies and management contracts for student centers, dining rooms and cafeterias, for a term not exceeding three years; or
i. The performance of work or services or the furnishing of materials or supplies for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the contracting unit, the entire price of which is to be established as a percentage of the resultant savings in energy costs, for a term not exceeding [10] 15 years from the date of completion of such energy conservation project; provided, however, that [a contract is] these contracts shall be entered into only subject to and in accordance with rules [and], regulations or orders adopted by the [Department of Commerce, Energy and Economic Development] Board of Public Utilities establishing a methodology for computing energy [cost] savings. Any determination of energy cost savings shall take into account any amounts received by the county college from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual energy cost savings is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the county college shall continue to be obligated to pay such price, but the contractor shall reimburse the county college for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract; or
j. Any single project for the construction, reconstruction or rehabilitation of a public building, structure or facility, or a public works project including the retention of the services of an architect or engineer in connection with the project, for the length of time necessary for the completion of the actual construction; or
k. The management and operation of bookstores for a term not exceeding five years; or
l. Custodial or janitorial services for any term not exceeding in the aggregate three years; or
m. Purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the county college, for a term not to exceed 15 years from the date of completion of such energy conservation project. Any agreement providing for such purchase or acquisition may provide for payments due from the county college to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the county college fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the county college its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the county college.
All multi-year leases and contracts entered into pursuant to this section, except contracts for the leasing or servicing of equipment supplied by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, or contracts and agreements for the provision of work or the supplying of equipment to promote energy conservation and authorized pursuant to subsection i. of this section, or contracts for the purchase or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project authorized pursuant to subsection m. of this section,and except contracts for insurance coverages, insurance consultant or administrative services, participation or membership in a joint self-insurance fund, risk management programs or related services of a county college insurance group, and participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6 or a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), shall contain a clause making them subject to the availability and appropriation annually of sufficient funds to meet
the extended obligation or contain an annual cancellation clause.
(cf: P.L.1994, c.48, s.144)
9. Section 5 of P.L. 1971, c.198 (C.40A:11-5) is amended to read as follows:
5. Exceptions. Any purchase, contract or agreement of the character described in section 4 of P.L.1971, c.198 (C.40A:11-4) may be made, negotiated or awarded by the governing body without public advertising for bids and bidding therefor if:
(1) The subject matter thereof consists of:
(a) (i) Professional services. The governing body shall in each instance state supporting reasons for its action in the resolution awarding each contract and shall forthwith cause to be printed once, in a newspaper authorized by law to publish its legal advertisements, a brief notice stating the nature, duration, service and amount of the contract, and that the resolution and contract are on file and available for public inspection in the office of the clerk of the county or municipality, or, in the case of a contracting unit created by more than one county or municipality, of the counties or municipalities creating such contracting unit; or (ii) Extraordinary unspecifiable services. The application of this exception shall be construed narrowly in favor of open competitive bidding, where possible, and the Division of Local Government Services is authorized to adopt and promulgate rules and regulations limiting the use of this exception in accordance with the intention herein expressed. The governing body shall in each instance state supporting reasons for its action in the resolution awarding each contract and shall forthwith cause to be printed, in the manner set forth in subsection (1)(a)(i) of this section, a brief notice of the award of such contract;
(b) The doing of any work by employees of the contracting unit;
(c) The printing of legal briefs, records and appendices to be used in any legal proceeding in which the contracting party may be a party;
(d) The furnishing of a tax map or maps for the contracting party;
(e) The purchase of perishable foods as a subsistence supply;
(f) The supplying of any product or the rendering of any service by a public utility, which is subject to the jurisdiction of the Board of [Regulatory Commissioners] Public Utilities or the U.S. Federal Energy Regulatory Commission or its successor, in accordance with tariffs and schedules of charges made, charged or exacted, filed with the board or commission;
(g) The acquisition, subject to prior approval of the Attorney General, of special equipment for confidential investigation;
(h) The printing of bonds and documents necessary to the issuance and sale thereof by a contracting unit;
(i) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with such service, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
(j) The publishing of legal notices in newspapers as required by law;
(k) The acquisition of artifacts or other items of unique intrinsic, artistic or historical character;
(l) Election expenses;
(m) Insurance, including the purchase of insurance coverage and consultant services, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
(n) The doing of any work by handicapped persons employed by a sheltered workshop;
(o) The provision of any service or the furnishing of materials including those of a commercial nature, attendant upon the operation of a restaurant by any nonprofit, duly incorporated, historical society at or on any historical preservation site;
(p) Homemaker--home health services performed by voluntary, nonprofit agencies;
(q) The purchase of materials and services for a law library established pursuant to R.S.40:33-14, including books, periodicals, newspapers, documents, pamphlets, photographs, reproductions, microforms, pictorial or graphic works, copyright and patent materials, maps, charts, globes, sound recordings, slides, films, filmscripts, video and magnetic tapes, and other audiovisual, printed, or published material of a similar nature; necessary binding or rebinding of law library materials; and specialized library services;
(r) On-site inspections undertaken by private agencies pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) and the regulations adopted pursuant thereto;
(s) The marketing of recyclable materials recovered through a recycling program, or the marketing of any product intentionally produced or derived from solid waste received at a resource recovery facility or recovered through a resource recovery program, including, but not limited to, refuse-derived fuel, compost materials, methane gas, and other similar products;
(t) Emergency medical services provided by a hospital to the residents of a municipality or county, provided that: (a) such exception be allowed only after the governing body determines that the emergency services are available only from one provider; and (b) if the contract is awarded without advertising for bids or bidding the governing body shall in each instance state supporting reasons for its action in a resolution awarding the contract and cause to be printed once in a newspaper authorized by law to publish its legal advertisements a brief notice stating the nature, duration, service, and amount of the contract; and (c) the contract shall be kept on file for public inspection in the office of the clerk of the municipality;
(u) Contracting unit towing and storage contracts, provided that all such contracts shall be pursuant to reasonable non-exclusionary and non-discriminatory terms and conditions, which may include the provision of such services on a rotating basis, at the rates and charges set by the municipality pursuant to section 1 of P.L.1979, c.101 (C.40:48-2.49). All contracting unit towing and storage contracts for services to be provided at rates and charges other than those established pursuant to the terms of this paragraph shall only be awarded to the lowest responsible bidder in accordance with the provision of the "Local Public Contracts Law" and without regard for the value of the contract therefor. Each of the aforementioned means of contracting shall be subject to any regulations adopted by the Commissioner of Insurance pursuant to section 60 of P.L.1990, c.8 (C.17:33B-47);
(v) The purchase of steam or electricity from, or the rendering of services directly related to the purchase of such steam or electricity from a qualifying small power production facility or a qualifying cogeneration facility as defined pursuant to 16 U.S.C. §796;
(w) The purchase of electricity or administrative or dispatching services directly related to the transmission of such purchased electricity by a contracting unit engaged in the generation of electricity;
(x) The printing of municipal ordinances or other services necessarily incurred in connection with the revision and codification of municipal ordinances; or
(y) An agreement for the purchase of an equitable interest in a water supply facility or for the provision of water supply services entered into pursuant to section 2 of P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to P.L.1989, c.109 (N.J.S.40A:31-1 et al.), so long as such agreement is entered into no later than [six months after the effective date of this act] July 11, 1994;
(z) The performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the contracting unit, the entire price of which shall be established as a percentage of the resultant savings in energy costs; provided, however, that such contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings, and shall conform in all respects to the requirements of subsection (12) of section 15 of P.L. 1971, c.198 (C.40A:11-15). Such contracts shall be approved by the contracting unit by a resolution or ordinance, as appropriate, adopted at a public meeting, provided that the contracting unit shall provide for public notice at least 20 days prior to the public meeting, at which final action shall be taken. Such public notice shall be published in a newspaper printed in the English language and circulated in the district over which the contracting unit has jurisdiction; or
(aa) The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the contracting unit. Any agreement providing for such purchase or acquisition may provide for payments due from the contracting unit to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the contracting unit fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project. Such agreement shall be approved by the contracting unit by a resolution or ordinance, as appropriate, adopted at a public meeting, provided that the contracting unit shall provide for public notice at least 20 days prior to the public meeting, at which final action shall be taken. Such public notice shall be published in a newspaper printed in the English language and circulated in the district over which the contracting unit has jurisdiction.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the contracting unit its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the contracting unit.
(2) It is to be made or entered into with the United States of America, the State of New Jersey, county or municipality or any board, body, officer, agency or authority thereof and any other state or subdivision thereof.
(3) The contracting agent has advertised for bids pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4) on two occasions and (a) has received no bids on both occasions in response to its advertisement, or (b) the governing body has rejected such bids on two occasions because the contracting agent has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the contracting agent prior to the advertising therefor, or have not been independently arrived at in open competition, or (c) on one occasion no bids were received pursuant to (a) and on one occasion all bids were rejected pursuant to (b), in whatever sequence; any such contract or agreement may then be negotiated and may be awarded upon adoption of a resolution by a two-thirds affirmative vote of the authorized membership of the governing body authorizing such contract or agreement; provided, however, that:
(i) A reasonable effort is first made by the contracting agent to determine that the same or equivalent materials or supplies, at a cost which is lower than the negotiated price, are not available from an agency or authority of the United States, the State of New Jersey or of the county in which the contracting unit is located, or any municipality in close proximity to the contracting unit;
(ii) The terms, conditions, restrictions and specifications set forth in the negotiated contract or agreement are not substantially different from those which were the subject of competitive bidding pursuant to section 4 of [this act] of P.L.1971, c.198 (C.40A:11-4); and
(iii) Any minor amendment or modification of any of the terms, conditions, restrictions and specifications, which were the subject of competitive bidding pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4), shall be stated in the resolution awarding such contract or agreement; provided further, however, that if on the second occasion the bids received are rejected as unreasonable as to price, the contracting agent shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate, and afford each bidder a reasonable opportunity to negotiate, but the governing body shall not award such contract or agreement unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder, is the lowest negotiated price offered by any responsible supplier, and is a reasonable price for such work, materials, supplies or services.
Whenever a contracting unit shall determine that a bid was not arrived at independently in open competition pursuant to subsection (3) of this section it shall thereupon notify the county prosecutor of the county in which the contracting unit is located and the Attorney General of the facts upon which its determination is based, and when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.
(cf: P.L.1993, c.381, s.4)
10. Section 15 of P.L.1971, c.198 (C.40A:11-15) is amended to read as follows:
15. All purchases, contracts or agreements for the performing of work or the furnishing of materials, supplies or services shall be made for a period not to exceed 12 consecutive months, except that contracts or agreements may be entered into for longer periods of time as follows:
(1) Supplying of:
(a) Fuel for heating purposes, for any term not exceeding in the aggregate, two years;
(b) Fuel or oil for use of airplanes, automobiles, motor vehicles or equipment for any term not exceeding in the aggregate, two years;
(c) Thermal energy produced by a cogeneration facility, for use for heating or air conditioning or both, for any term not exceeding 40 years, when the contract is approved by the Board of Public Utilities. For the purposes of this paragraph, "cogeneration" means the simultaneous production in one facility of electric power and other forms of useful energy such as heating or process steam;
(2) (Deleted by amendment, P.L.1977, c.53.)
(3) The collection and disposal of municipal solid waste, the collection and disposition of recyclable material, or the disposal of sewage sludge, for any term not exceeding in the aggregate, five years;
(4) The collection and recycling of methane gas from a sanitary landfill facility, for any term not exceeding 25 years, when such contract is in conformance with a district solid waste management plan approved pursuant to P.L.1970, c.39 (C.13:1E-1 et seq.), and with the approval of the Division of Local Government Services in the Department of Community Affairs and the Department of Environmental Protection. The contracting unit shall award the contract to the highest responsible bidder, notwithstanding that the contract price may be in excess of the amount of any necessarily related administrative expenses; except that if the contract requires the contracting unit to expend funds only, the contracting unit shall award the contract to the lowest responsible bidder. The approval by the Division of Local Government Services of public bidding requirements shall not be required for those contracts exempted therefrom pursuant to section 5 of P.L.1971, c.198 (C.40A:11-5);
(5) Data processing service, for any term of not more than three years;
(6) Insurance, for any term of not more than three years;
(7) Leasing or servicing of automobiles, motor vehicles, machinery and equipment of every nature and kind, for a period not to exceed three years; provided, however, such contracts shall be entered into only subject to and in accordance with the rules and regulations promulgated by the Director of the Division of Local Government Services of the Department of Community Affairs;
(8) The supplying of any product or the rendering of any service by a telephone company which is subject to the jurisdiction of the Board of Public Utilities for a term not exceeding five years;
(9) Any single project for the construction, reconstruction or rehabilitation of any public building, structure or facility, or any public works project, including the retention of the services of any architect or engineer in connection therewith, for the length of time authorized and necessary for the completion of the actual construction;
(10) The providing of food services for any term not exceeding three years;
(11) On-site inspections undertaken by private agencies pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) for any term of not more than three years;
(12) The performance of work or services or the furnishing of materials or supplies for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the contracting unit, the entire price of which [to] shall be established as a percentage of the resultant savings in energy costs, for a term not to exceed [10] 15 years from the date of completion of such energy project; provided, however, that [such] these contracts shall be entered into only subject to and in accordance with rules [and], regulations [promulgated] or orders adopted by the [Department of Environmental Protection] Board of Public Utilities establishing a methodology for computing energy [cost] savings. Any determination of energy cost savings shall take into account any amounts received by the contracting unit from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual energy cost savings is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the contracting unit shall continue to be obligated to pay such price, but the contractor shall reimburse the contracting unit for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract;
(13) The performance of work or services or the furnishing of materials or supplies for the purpose of elevator maintenance for any term not exceeding three years;
(14) Leasing or servicing of electronic communications equipment for a period not to exceed five years; provided, however, such contract shall be entered into only subject to and in accordance with the rules and regulations promulgated by the Director of the Division of Local Government Services of the Department of Community Affairs;
(15) Leasing of motor vehicles, machinery and other equipment primarily used to fight fires, for a term not to exceed seven years, when the contract includes an option to purchase, subject to and in accordance with rules and regulations promulgated by the Director of the Division of Local Government Services of the Department of Community Affairs;
(16) The provision of water supply services or the designing, financing, construction, operation, or maintenance, or any combination thereof, of a water supply facility, or any component part or parts thereof, including a water filtration system, for a period not to exceed 40 years, when the contract for these services is approved by the Division of Local Government Services in the Department of Community Affairs, the Board of Public Utilities, and the Department of Environmental Protection pursuant to P.L.1985, c.37 (C.58:26-1 et al.), except for those contracts otherwise exempted pursuant to subsection (30) or (31) of this section. For the purposes of this subsection, "water supply services" means any service provided by a water supply facility; "water filtration system" means any equipment, plants, structures, machinery, apparatus, or land, or any combination thereof, acquired, used, constructed, rehabilitated, or operated for the collection, impoundment, storage, improvement, filtration, or other treatment of drinking water for the purposes of purifying and enhancing water quality and insuring its potability prior to the distribution of the drinking water to the general public for human consumption, including plants and works, and other personal property and appurtenances necessary for their use or operation; and "water supply facility" means and refers to the real property and the plants, structures, interconnections between existing water supply facilities, machinery and equipment and other property, real, personal and mixed, acquired, constructed or operated, or to be acquired, constructed or operated, in whole or in part by or on behalf of a political subdivision of the State or any agency thereof, for the purpose of augmenting the natural water resources of the State and making available an increased supply of water for all uses, or of conserving existing water resources, and any and all appurtenances necessary, useful or convenient for the collecting, impounding, storing, improving, treating, filtering, conserving or transmitting of water and for the preservation and protection of these resources and facilities and providing for the conservation and development of future water supply resources;
(17) The provision of [solid waste disposal] resource recovery services by a resource recovery facility, the furnishing of products of a resource recovery facility, the disposal of the solid waste delivered for disposal which cannot be processed by a resource recovery facility or the [waste products resulting from the operation of] residual ash generated at a resource recovery facility, including hazardous waste and recovered metals and other materials for reuse, or the design, financing, construction, operation or maintenance of a resource recovery facility for a period not to exceed 40 years when the contract is approved by the Division of Local Government Services in the Department of Community Affairs, [the Board of Public Utilities,]and the Department of Environmental Protection; and when the resource recovery facility is in conformance with a district solid waste management plan approved pursuant to P.L.1970, c.39 (C.13:1E-1 et seq.). For the purposes of this subsection, "resource recovery facility" means a solid waste facility constructed and operated for the incineration of solid waste for energy production and the recovery of metals and other materials for reuse; or a mechanized composting facility, or any other [solid waste] facility constructed or operated for the collection, separation, recycling, and recovery of metals, glass, paper, and other materials for reuse or for energy production;
(18) The sale of electricity or thermal energy, or both, produced by a resource recovery facility for a period not to exceed 40 years when the contract is approved by the Board of Public Utilities, and when the resource recovery facility is in conformance with a district solid waste management plan approved pursuant to P.L.1970, c.39 (C.13:1E-1 et seq.). For the purposes of this subsection, "resource recovery facility" means a solid waste facility constructed and operated for the incineration of solid waste for energy production and the recovery of metals and other materials for reuse; or a mechanized composting facility, or any other solid waste facility constructed or operated for the collection, separation, recycling, and recovery of metals, glass, paper, and other materials for reuse or for energy production;
(19) The provision of wastewater treatment services or the designing, financing, construction, operation, or maintenance, or any combination thereof, of a wastewater treatment system, or any component part or parts thereof, for a period not to exceed 40 years, when the contract for these services is approved by the Division of Local Government Services in the Department of Community Affairs and the Department of Environmental Protection pursuant to P.L.1985, c.72 (C.58:27-1 et al.). For the purposes of this subsection, "wastewater treatment services" means any services provided by a wastewater treatment system, and "wastewater treatment system" means equipment, plants, structures, machinery, apparatus, or land, or any combination thereof, acquired, used, constructed, or operated for the storage, collection, reduction, recycling, reclamation, disposal, separation, or other treatment of wastewater or sewage sludge, or for the final disposal of residues resulting from the treatment of wastewater, including, but not limited to, pumping and ventilating stations, facilities, plants and works, connections, outfall sewers, interceptors, trunk lines, and other personal property and appurtenances necessary for their operation;
(20) The supplying of materials or services for the purpose of lighting public streets, for a term not to exceed five years, provided that the rates, fares, tariffs or charges for the supplying of electricity for that purpose are approved by the Board of Public Utilities;
(21) In the case of a contracting unit which is a county or municipality, the provision of emergency medical services by a hospital to residents of a municipality or county as appropriate for a term not to exceed five years;
(22) Towing and storage contracts, awarded pursuant to paragraph u. of subsection (1) of section 5 of P.L.1971, c.198 (C.40A:11-5) for any term not exceeding three years;
(23) Fuel for the purpose of generating electricity for a term not to exceed eight years;
(24) The purchase of electricity or administrative or dispatching services related to the transmission of such electricity, from a public utility company subject to the jurisdiction of the Board of Public Utilities, a similar regulatory body of another state, or a federal regulatory agency, or from a qualifying small power producing facility or qualifying cogeneration facility, as defined by 16 U.S.C. §796, by a contracting unit engaged in the generation of electricity for retail sale, as of [the date of this amendatory act] May 24, 1991, for a term not to exceed 40 years;
(25) Basic life support services, for a period not to exceed five years. For the purposes of this subsection, "basic life support" means a basic level of prehospital care, which includes but need not be limited to patient stabilization, airway clearance, cardiopulmonary resuscitation, hemorrhage control, initial wound care and fracture stabilization;
(26) Claims administration services, for any term not to exceed three years;
(27) The provision of transportation services to elderly, disabled or indigent persons for any term of not more than three years. For the purposes of this subsection, "elderly persons" means persons who are 60 years of age or older. "Disabled persons" means persons of any age who, by reason of illness, injury, age, congenital malfunction, or other permanent or temporary incapacity or disability, are unable, without special facilities or special planning or design to utilize mass transportation facilities and services as effectively as persons who are not so affected. "Indigent persons" means persons of any age whose income does not exceed 100 percent of the poverty level, adjusted for family size, established and adjusted under section 673(2) of subtitle B, the "Community Services Block Grant Act," Pub.L. 97-35 (42 U.S.C. §9902 (2));
(28) The supplying of liquid oxygen or other chemicals, for a term not to exceed five years, when the contract includes the installation of tanks or other storage facilities by the supplier, on or near the premises of the contracting unit; [and]
(29) The performance of patient care services by contracted medical staff at county hospitals, correction facilities and long term care facilities, for any term of not more than three years;
(30) The acquisition of an equitable interest in a water supply facility pursuant to section 2 of P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to the "County and Municipal Water Supply Act," N.J.S.40A:31-1 et seq., if the agreement is entered into no more than six months after the effective date of this amendatory act, P.L.1994, c.71, for any term of not more than 40 years;
(31) The provision of water supply services or the financing, construction, operation or maintenance or any combination thereof, of a water supply facility or any component part or parts thereof, by a partnership or copartnership established pursuant to a contract authorized under section 2 of P.L.1993, c.381 (C.58:28-2) for a period not to exceed 40 years; [and]
(32) Laundry service and the rental, supply and cleaning of uniforms for any term of not more than three years; [and]
(33) The supplying of any product or the rendering of any service, including consulting services, by a cemetery management company for the maintenance and preservation of a municipal cemetery operating pursuant to the "New Jersey Cemetery Act," N.J.S.8A:1-1 et seq., for a term not exceeding 15 years; and
(34) The purchase, or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the contracting unit, for a term not to exceed 15 years from the date of completion of such energy conservation project. Any agreement providing for such purchase or acquisition may provide for payments due from the contracting unit to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the contracting unit fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the contracting unit its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the contracting unit.
All multiyear leases and contracts entered into pursuant to this section, except contracts for the leasing or servicing of equipment supplied by a telephone company which is subject to the jurisdiction of the Board of Public Utilities, contracts involving the supplying of electricity for the purpose of lighting public streets and contracts for thermal energy authorized pursuant to subsection (1) above, construction contracts authorized pursuant to subsection (9) above, contracts and agreements for the provision of work or the supplying of equipment to promote energy conservation authorized pursuant to subsection (12) above, contracts for water supply services or for a water supply facility, or any component part or parts thereof authorized pursuant to subsection (16) above, contracts for resource recovery services or a resource recovery facility authorized pursuant to subsection (17) above, contracts for the sale of energy produced by a resource recovery facility authorized pursuant to subsection (18) above, contracts for wastewater treatment services or for a wastewater treatment system or any component part or parts thereof authorized pursuant to subsection (19) above, and contracts for the purchase of electricity or administrative or dispatching services related to the transmission of such electricity authorized pursuant to subsection (24) above, and contracts for the purchase of verified energy savings generated by an energy conservation project authorized pursuant to subsection (33) above, shall contain a clause making them subject to the availability and appropriation annually of sufficient funds as may be required to meet the extended obligation, or contain an annual cancellation clause.
The Division of Local Government Services shall adopt and promulgate rules and regulations concerning the methods of accounting for all contracts that do not coincide with the fiscal year.
(cf: P.L.1995, c.4, s.2)
11. Section 4 of P.L.1954, c.48 (C.52:34-9) is amended to read as follows:
4. Any [such] purchase, contract or agreement may be made, negotiated or awarded pursuant to section 3 of [this act] P.L.1954, c.48 (C.52:34-8) when the subject matter thereof consists of:
[(a)]a. services to be performed by the contractor personally which are[(a)](1) of a technical and professional nature, or[(b)](2) to be performed under the supervision of the Director of the Division of Purchase and Property and paid for on a time basis; or
[(b)]b. the purchase of perishable foods or subsistence supplies; or
[(c)]c. the lease of such office space, office machinery, specialized equipment, buildings or real property as may be required for the conduct of the State's business; or
[(d)]d. the acquisition of any real property by gift, grant, purchase or any other lawful manner in the name of and for the use of the State for the purpose of the administration of the State's business in accordance with appropriations made therefor when moneys are required for the acquisition; or
e. the performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by, or operations conducted by, the State, the entire price of which is to be established as a percentage of the resultant savings in energy costs; provided, however, that these contracts shall be entered into only subject to and in accordance with rules, regulations or orders adopted by the Board of Public Utilities establishing a methodology for computing energy savings. Any determination of energy cost savings shall take into account any amounts received by the State from a public utility, a subsidiary of a public utility or an energy services company under an agreement with the public utility or subsidiary pursuant to an energy savings purchase contract and shall treat such amounts to be so paid as energy cost savings. Where the actual energy cost savings is less than the entire price of the performance of work or services or the furnishing of materials or supplies, the State shall continue to be obligated to pay such price, but the contractor shall reimburse the State for any shortfall in guaranteed energy savings projected in the contract and shall provide a sufficient bond or other guarantee for the installation and the faithful performance of all the measures and obligations included in the contract; or
f. the purchase or acquisition, through rebates or other utility energy conservation programs approved by the Board of Public Utilities, by a public utility or a subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, pursuant to the provisions of a public utility demand side management plan approved by the Board of Public Utilities, of verified energy savings generated by an energy conservation project installed in buildings owned or leased by, or operations conducted by, the State. Any agreement providing for such purchase or acquisition may provide for payments due from the State to the public utility or subsidiary of a public utility, directly or from an energy services company under an agreement with the public utility or subsidiary, in the event that the State fails to comply with conditions stipulated in the agreement relating to the operation and maintenance of any such energy conservation project; or
[(e)]g. supplies or services as to which the bid prices after advertising therefor are not reasonable or have not been independently arrived at in open competition; provided, that no negotiated purchase, contract or agreement may be entered into under this paragraph after the rejection of all bids received unless[(a)](1) notification of the intention to negotiate and reasonable opportunity to negotiate shall have been given by the Director of the Division of Purchase and Property to each responsible bidder,[(b)](2) the negotiated price is lower than the lowest rejected bid price of a responsible bidder, and[(c) such] (3) the negotiated price is the lowest negotiated price offered by any responsible supplier.
For the purposes of this section, "energy services company" means a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary, and a business that has demonstrated to the satisfaction of the State its financial capability and resources to ensure the performance of the energy savings equipment or renovations that are installed in or made to buildings owned or leased by the State.
(cf: P.L.1954, c.48, s.4)
12. This act shall take effect immediately.
STATEMENT
This bill would permit the New Jersey Sports and Exposition Authority, boards of education and other contracting units, as defined under the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), to enter into guaranteed energy savings contracts with a public utility or an energy savings company. The committee substitute defines "energy services company" as a business engaged in the design, installation, measurement, finance and maintenance of energy savings equipment or renovations for which payment is derived, in whole or in part, from the sale of verified energy savings over the term of an agreement with a public utility or subsidiary. The Board of Public Utilities would be required to adopt rules and regulations establishing a methodology for computing energy savings. The contracting unit would be permitted to enter into contracts, for 15 years or less, to provide for the performance of work or services or the furnishing of materials, supplies or equipment for the purpose of conserving energy in buildings owned or leased by the contracting unit.
Excepts from bidding requirements certain public contracts involving energy conservation.