March 14, 2005

Mr. David Ern

Vice President

Parkway Water Company

475 County Road 520

Marlboro, NJ 07746

Dear Mr. Ern:

I read with dissatisfaction comments attributed to you in the Asbury Park Press related to your criticism of the governing body and our continued testing of the quality of water (and the implications) that had been provided by your company. You’ll recall that concerns were raised with your company once it was finally disclosed that higher that normal levels of radium 226 and radium 228 were detected in water supplied by your company to approximately 1,800 homes in the Ramtown section of Howell.  Although the radium levels were above normal, you personally assured the public and the governing body that the water was within acceptable limits and safe for use and consumption. Later, officials from the Bureau of Safe Drinking Water at the NJ DEP gave similar assurances.

We took at face value representations based on your expertise. We also took at face value your representations that Parkway Water was a small family owned business honestly trying to fix the problem with the water being distributed. Frankly, I now question having believed all this.

Over the past several months the governing body has professionally acted on its sworn obligation to protect the health and safety of our residents. The township has a responsibility to understand the implications of Parkway’s inability to remedy the higher that normal levels of radium that existed in the water. While we have absolutely no control or regulatory oversight over your firm, we felt we had an obligation to do all we could within the law, to understand the facts and share such facts with our residents. We have worked hard to compel you and state officials charged with overseeing your company to take all necessary actions necessary to ensure our residents were receiving safe water. 

Our actions have been balanced and responsible. We hired scientific experts to test the water and the pipes. We met with you and state officials to calm public concerns and I have spoken favorably about the acquisition of your firm by the Brick Township Municipal Authorities (BTMUA). Needless to say, I was shocked when I received your recent letter with its veiled threats and unfounded accusations. However, I opted to take the high road. I felt we needed to wait and let the scientific results prevail. While I saw no useful purpose in replying to your letter, it did begin to raise several concerns in my mind.

So, your recent comments, on the heels of your letter, have finally led me to question your real intentions.  Based on your firm’s recent actions and behaviors, I will no longer allow you to misrepresent the facts and our position.  This letter will address these issues.

First, you questioned the township’s intentions with respect to why we have continued to test the pipes of some homeowners. You also questioned why we were testing now.  Your letter and recent comments imply that the township has intentionally or unintentionally tried to block the sale of your company to the Brick Township Municipal Utilities Authority (BTMUA). Nothing could be further from the truth.

The township council and I have an obligation to protect the health, safety and welfare of our residents. We work for the people of Howell, not for you. Your profitability or lack thereof is not of our concern. Moreover, your use of “scare” tactics will not deter us or our residents from understanding the issues and ensuring we can protect our community. Your threats of enormous rate increases in the event you do not sell your company are outright bullying tactics. All I can say is, how dare you. I am certain that the Board of Public Utilities will not find these veiled threats favorable or acceptable.

The fact of the matter is the township has been testing for some time. In fact, we hired our own scientists on March 3, 2004. By no means did our testing just begin. It takes time to perform the tests. It also takes time for the samples to scientifically procure in acceptable ways.  To suggest that we have only recently begun testing is revisionist history on the part of Parkway Water, perhaps to create controversy around the testing. Also, it creates the appearance that Parkway Water would prefer the township to “bury its head in the sand” and look the other way rather than perform its due diligence to protect Howell families.

Further, certain actions and inactions recently brought to light should be explained by you.

First, on May 17^th 2004 you arranged for Parkway Water to have the BTMUA supply water to your Ramtown rate payers.  Thankfully, the BTMUA was and is able to distribute water at acceptable quality levels. The very next day, a company you hired, Water Remediation Technology, LLC, a Colorado water treatment firm, issued results of a pilot study they performed for your company to treat radium. The results are available at the Water Remediation Technology web site.

According to the Water Remediation Technology published report, they installed a treatment system on a pilot basis on October 30, 2003. According to their published results, “their pilot unit successfully met radium compliance at all times during the 90 day study. In light of these positive results, why did you not notify the township or your customers that a way to treat the water was discovered? Did you notify the State DEP? Did you legitimately consider the purchase of the system to treat the water in Howell?

Systems like the one from Water Remediation Technology would certainly come with new costs. However, according to the United States EPS Ground Water & Drinking Water home page (http://www.epa.gov/safewater/rads/technicalfacts.html), “since 1996 the Drinking Water State Revolving Loan Fund has made over $3.6 billion available for loans to help water systems improve their infrastructure. This program has now made over 1,000 loans.” The EPA goes on to say that “other federal funds are available through Housing and Urban Development’s Community Development Block Grant Program, and the Rural Utilities Service of the US Department of Agriculture.” It would appear that a treatment system could have been installed with the help of public funds, thus avoiding large increases to rate payers.

In the event such loans or funding may have only been available to public entities and not private water companies Parkway could have approached the state or the township for assistance. Did Parkway consider these opportunities and did they consider these funds to pay for remediation systems?

It strikes me that Parkway Water should have disclosed the fact that they performed a pilot study that revealed the water could be treated.  Plus, their representations of large scale rate increases are perhaps unfounded in light of the significant federal aid readily available.

Needless to say, you owe the township and the people of Ramtown explanations based on the discovery of these matters.  The fact that these issues were not disclosed questions your credibility, your intentions and your integrity. I am only grateful that the BTMUA is seriously considering acquiring your firm.  The people of our community deserve a company like the BTMUA that is serious about delivering high quality water, and not hiding behind the law.

For decades your firm made a reasonable profit from your Howell business. Therefore, in light of the above and these decades of profit making, I believe you have an obligation to share the proceeds of your multi million dollar sale and ultimate “cash out” with your Ramtown customers. Specifically, I believe that you should set aside $1,000 per household to assist in paying for possible remedies that may be necessary to remove scale in their pipes caused by the radium.  Only further testing will determine if homeowners may need to have their pipes cleaned or treated. However, in the event that as a result of your distributing water higher in radium than was called for, sharing in the remediation costs is the least you can do.

In the interim, the township will continue to due its due diligence and we will not be scared by your threats.

I support the sale of your company to the MTMUA and I now also anxiously await your reply to the above. While this letter reflects my positions and does not reflect the official position of the township or other members of the governing body, I’ll bet the people of Ramtown will agree that you have a lot of explaining to do.

I’d prefer that you reply to these issues in person by attending the next public meeting of the Mayor and Council (Tuesday, March 15, 2005) so that the members of the public can hear your comments.  Only a public appearance on your part, addressing these issues head on will clear up any doubt or questions related to your intentions. Thank you.

Sincerely,

Joseph M. DiBella

Mayor

Township of Howell

Copy:             Township Council

                        The people of Ramtown