Any contract for the provision of water supply services negotiated and awarded to a vendor by a contracting unit pursuant to this act, or the “Local Public Contracts Law,” P.L. 1971, c. 198 (C. 40A:11-1 et seq.), shall include, but shall not be limited to, provisions concerning:

a. The allocation of the risks of financing and constructing a water supply facility including delays in completion of the construction of the system, construction and financing cost overruns and increased costs resulting from change orders, construction changes required by revisions in applicable laws, rules, or regulations, failure of the system to achieve its required operating performance or efficiency, changes in tax benefits, and the need for equity contributions in addition to those provided for in the contract;

b. The allocation of the risks of operating and maintaining a water supply facility, including excessive or nonscheduled periods of inoperation or technical failure, excess labor and materials costs due to underestimation, changes in operating procedures required by revisions in applicable laws, rules, or regulations, changes in the quantity or composition of water delivered for filtration or treatment, excessive operation or maintenance costs due to poor management, and increased costs of distribution of the water resulting from costs associated with filtration or treatment;

c. The allocation of the risks associated with circumstances or occurrences beyond the control of the parties to the contract;

d. The defaulting and termination of the contract;

e. The periodic preparation by the vendor of an operating performance report and an audited balance statement of the water supply facility, which shall be submitted to the contracting unit, the department and the division;

f. The intervals at which the contract shall be renegotiated;

g. The employment of current employees of the contracting unit whose positions or employment will be affected by the terms of the contract; and

h. The formulas to be used to determine the charges, rates, or fees to be charged for the water supply services, and the methodology or methodologies used to develop these formulas.

L. 1985, c. 37, s. 15, eff. Feb. 1, 1985.