40:66A-20 - Contracts - New Jersey Statutes

40:66A-20.  Contracts
    Any incinerator authority and any municipality within the district by ordinance of its governing body may enter into a contract or contracts providing for or relating to the collection, treatment and disposal of garbage and refuse originating in the district or in such municipality by means of the garbage disposal system, and the cost and expense of such collection, treatment  and disposal.  Such contract or contracts may provide for the payment to the  incinerator authority by such municipality annually or otherwise of such sum or  sums of money, computed at fixed amounts or by a formula based on any factors  or other matters described in subsection (b) of section 8 of this act or in any  other manner, as said contract or contracts may provide, and the sum or sums so  payable may include provision for all or any part or a share of the amounts  necessary (1) to pay or provide for the expenses of operation and maintenance  of the garbage disposal system, including without limitation insurance,  extensions, betterments and replacements and the principal of and interest on  any bonds, and (2) to provide for any deficits resulting from failure to receive sums payable to the incinerator authority by such municipality, any other municipality, or any person, or from any other cause, and (3) to maintain  such reserves or sinking funds for any of the foregoing as may be required by  the terms of any contract of the incinerator authority or as may be deemed  necessary or desirable by the incinerator authority.  Any such contract may  provide that the sum or sums so payable to the incinerator authority shall be  in lieu of all or any part of the service charges which would otherwise be  charged and collected by the incinerator authority with regard to persons or  real property within such municipality. Such contract or contracts may also contain provisions as to the financing and payment of expenses to be incurred by the incinerator authority and determined by it to be necessary for its purposes prior to the placing in operation of the garbage disposal system and may provide for the payment by such municipality to the incinerator authority for application to such expenses or indebtedness therefor such sum or sums of money, not in the aggregate exceeding an amount stated or otherwise limited in said contract or contracts plus interest thereon, as said contract or contracts  may provide and as the governing body of said municipality shall, by virtue of its authorization of and entry into said contract or contracts, determine to be  necessary for the purposes of the incinerator authority.  Any such contract may  be made with or without consideration and for a specified or an unlimited time  and on any terms and conditions which may be approved by such municipality and  which may be agreed to by the incinerator authority in conformity with its  contracts with the holders of any bonds, and shall be valid whether or not an  appropriation with respect thereto is made by such municipality prior to  authorization or execution thereof.  Subject to any such contracts with the  holders of bonds, such municipality is hereby authorized and directed to do and  perform any and all acts or things necessary, convenient or desirable to carry  out and perform every such contract and to provide for the payment or discharge  of any obligation thereunder in the same manner as other obligations of such  municipality and, in accordance with any such contract, to waive, modify,  suspend or reduce the service charges which would otherwise be charged and  collected by the incinerator authority with regard to persons or real property  within such municipality.  Nothing in this section, however, shall prevent the incinerator authority from collecting additional fees and charges from the owners or occupants of all parcels of real estate served by it within such municipality if for any reason such additional fees or charges shall be necessary in order for the incinerator authority to pay all operating expenses,  debt service and other payments required pursuant to contracts with  bondholders;  and notwithstanding such contracts with such municipalities, the  incinerator authority shall at all times have power and be obligated to collect sufficient additional fees and charges whenever necessary to pay all operating costs, debt service and all other payments required by contracts with bondholders.

     L.1948, c. 348, p. 1374, s. 20.  Amended by L.1954, c. 185, p. 709, s. 1, eff.  July 22, 1954.