Bid to Purchase

the

East Derby Waterworks

From the City of DerbY, Connecticut

Bids due on December
Submitted bv:

20,20t2

South Central Connecticut Regional Water Authority

90 Sargent Drive

New Haven,

CT

06511-5956

203-562-4020

Attention:
Ms. Sheila O'Malley

Mayor's Office
City of Derby
1 Elizabeth Street, DerbY, CT 05418

Table of Contents

Proposer's Qualification Statement Cover Letter

Submittal Cover Sheet

Previous Experience

Statement of Ability
SCCRWA Bid Proposal

ru
South Centra! Connecticut Regional Water Authority 90 Sargent Drive, New Haven, Connecticut 06511-5966 203'562'4020 http / /www. nw ater. com
:

Reg ional i*{*iir.::ir Auth o r iiy

December 20,2012 The Honorable AnthonY Staffieri Mayor of the CitY of DerbY 1 Elizabeth Street Derby, CT 06418

Re:

South Central Connecticut Regional Water Authority

Bid for the East DerbY Waterworks

Dear Mayor Staffieri,

(sccRWA) is pleased to submit a bid for the The south central connecticut Regional water Authority that was created by the purchase of the East Derby waterworks. sccRWA is a public corporation Company' SCCRWA's predecessor' was Connecticut General Assembly in 1977. The New Haven Water serves approximately 118,000 customers in sixteen towns'

created in 1849. SCCRWA currently distribution system with 36 sccRWA,s experienced employees maintain and operate a combined tanks' pressure zones, 1,728 miles of main, 37 pumping stations and 35 storage the East Derby waterworl<s and we sccRWA currently provides water to, and operates and maintains, your system. lf the successful bidder' sccRWA are very familiar with the operation and future needs of Waterworl<s distribution system is prepared to make significant capital investments in the East Derby
and facilities to meet the Connecticut Department improve service and reliability to customers'

of Public Health recommendations' as well

as

A more detailed description of

SCCRWA's previous experience and our statement provide service to the customers of the East Derby Waterworks are attached' prease

of our ability to

contact our office is rocated at g0 sargent Drive in New Haven, CT. you may have regarding SCCRWA's bid or to set up an operations & Engineering, with any questions follows: interview for further discussion. Ted's contact information is as
Edward O. (Ted) Norris lll, P'E' Vice President Operations & Engineering Office: 203-401,-2673

Mr. Ted Norris, Vice President

Fax:

203-603-4922 E-mail: tnorris@rwater,com

of the amount of our bid' We assume its obligations under the that this deposit will be subject to forfeiture only if the Buyer breaches

The City's form of asset Sale Agreement specifies a deposit

of

1O%

Page 1 of 8

a deposit in accordance with the city's agreement. with that understanding, we will deliver such ,,Request for Offer to Purchase Water System Owned by the City of Derby" ("Request for Offer")'

in an expeditious manner after we stand ready to execute a sale agreement with the city of Derby of section 19 of special Act 77-98' the enabling acceptance of our bid. However, under the terms the purchase of
Policy Board (RPB) must approve legislation which created sccRwA, our Representative we therefore request an exception to section c any water system or part thereof after a public hearing' our ,,Request for offer" requiring execution of a sale agreement within 45 days of acceptance of of the your within approximately 1-20 days of

anticipate that RPB approval could be obtained days if 45-day requirement be extended to a total of 120 acceptance of our bid, and we request that the our bid is accePted.

bid. we

proposed sale Agreement' the sale of the city's ln addition to the above, and as discussed in the city's

watersystemassetsmayrequiretheApprovaloftheConnecticutDepartmentofEnergyand we do not believe such Public Utilities Regulatory Authority ("PURA")'

Environmental Protection's However, if such approval is required for the city' approvalwould be required for sCCRWA to proceed' or authority' such approval(s) may impact or any other approval is required from a regulatory agency the control of the sccRWA' lf either sccRwA the timing of the execution of the sale Agreement beyond regulatory approvals, then sccRWA's offer to or the city applies for and fails to obtain the necessary city of Derby is null and void' purchase the assets of the water system owned by the
you to keep in mind the long term rate impact on the Finally, as you evaluate the bids, we encourage will event that RwA is the selected acquirer' there customers served by the East Derby system. ln the

benoadverseimpactonthosecustomers,sincetheyarecurrentlyservedunderourretailratesas voice a representative on our RPB and thus has a direct revised from time to time. The city of Derby has acquires the assets' rate company in our rate setting process. ln the event that an investor-owned we can also promise a seamless transition in control will revert to pURA, as was the case pre-2008. ownership.Unlikeanyotherpotentialbuyer,RwAwillnotneedtonegotiateanewwholesalewater approvals from the Department of Public supply agreement and obtain the required state regulatory
HealthandtheDepartmentofEnergyandEnvironmentalProtection.

we

acknowledge receipt December 20,2OI2.

bid date to of Bid Addendum #1 dated December 7, 2OI7 extending the

on accurate assumptions' I note the following so that the city and other stal<eholders can be operating the "Request for offer to Purchase water system corrections in the information provided to bidders in Owned bY the CitY of DerbY":

1.

(not assets) of The SCCRWA purchased the stock Section A; second paragraph, fourth sentence: (not 2005)' the Birmingham Water Co''s parent company in 2008

2.SectionA;secondparagraph,fifthsentence:AsstatedpreviouslyinalettertoMayorStaffieri datedJune2l,zlt2fromLarryL.Bingaman,PresidentandcEoofthesccRwA'perour1971 capital improvements in the East Derby agreement, the city is responsible for completing
Waterworks'

Page 2 of 8

'
3.

# Reg

ionals{q, Re*sAut h o r ty
i

Section A; second paragraph, sixth sentence: The City of Derby terminated the 1988 agreement, which leaves the 1971 agreement as the only agreement in place between the SCCRWA and the City of Derby. A; second paragraph, seventh sentence: As of July 25,2012, the SCCRWA has not used the City of Derby's water system to serve any SCCRWA customers in Orange.

4. Section

Thank you for this opportunity to serve the customers of the East Derby Waterworks and the City of Derby. We look forward to hearing from you soon regarding this important decision.
Very truly yours,
REGIONAL WATER AUTHORITY

Larry Binga President and Chief Executive Officer

LLB/lg

Page 3 of 8

ryReg

ion al ?.s,,.sa* ftqi,i.A ut h o r

ty

South Central Connecticut Regional Water Authority Previous ExPerience

South Central Connecticut Regional Water Authority The South Central Connecticut Regional Water Authority (SCCRWA) is a public corporation that created by the Connecticut General Assembly under Connecticut Special Act No. 77-98 as amended ("the Act"), as a public instrumentality and subdivision of the State of Connecticut. SCCRWA was of pure established for the primary and public purpose of "assuring the provision of an adequate supply
was

water at reasonable cost within the District and, to the degree consistent with the foregoing, of day-toadvancing the conservation and compatible recreational use of land held by the Authority'" The currently day management of water system operations is conducted by our operating staff, which
numbers 263.

A Representative policy Board (RpB) of the South Central Connecticut Regional Water District

was

who is established by the Act and consists of one member from each city and town within the District body, and appointed by the chief elected official of such city or town, with the approval of its legislative RPB one member who is appointed by the governor. RPB members serve for a term of three years. The of any existing water system or is empowered, among other things, to approve (i) the acquisition wastewater system, (ii) the repair, improvement, construction, reconstruction, enlargement or (iii) the water extension of any of the Authority's properties or systems costing more than 52,000,000, to the terms of rates and charges established by the Authority and (iv)the issuance of bonds. Pursuant the Act, the RpB has established an office of consumer Affairs to act as the advocate for consumer interests with regard to matters such as rates, water quality and supply'
Service Area

As of May 3!, 201,2, SCCRWA serves approximately 1,18,264 customers, representing approximately 427,g64 individuals in sixteen municipalities in the south central region of the State. The SCCRWA service area includes all or portions of Ansonia, Bethany, Branford, Cheshire, Derby, East Haven, Hamden, Milford, New Haven, North Branford, North Haven, Orange, Seymour, West Haven and Woodbridge, which have an aggregate population of approximately 500,525 persons. ln addition, the Authority provides water to approximately 133 customers in the Town of Wolcott. The Authority also owns land in the District towns of Beacon Falls, Guilford, Killingworth, Madison and Prospect, but serves no customers in those municipalities. The Authority owns land in Durham and Haddam, as well'
most On January 16, ZOO8, the SCCRWA acquired the Valley Division of Birmingham Utilities, lnc., serving of Ansonia, Derby and a portion of Seymour, Connecticut.
Supply and Facilities
SCCRWA,s

water supply is obtained from watersheds that lie between the Housatonic River and the Connecticut River and extend from close to Long lsland Sound to about 20 miles inland.

The total Safe yield (the yield which can be reasonably expected in 99 out of 100 years) of all of Water, which is SCCRWA,s active sources is 79.3 million gallons per day ("MGD"). The total Available of water that can defined by the Connecticut Department of Public Health ("DPH") as the amount
Page 5

of8

@RegLqrral q&mrAuthority
Yield, is 76'7 MGD' SCCRWA's Available dependably be supplied, taking into account limitations on safe annual average daily draft of 60'9 water is approximately 15.g MGD greaterthan our highest historical surface water supply systems, which MGD in 19gg. The water supply is obtained from four active provide approximately 85%of the Available water, and six wellfields.

pumping stations' storage tanks and Treated water is delivered to customers through a system of into 36 distribution pressure systems' As of connecting transmission and distribution mains, separated facilities included the following: 37 facilities with May 31-, 2012, SccRWA,s distribution and transmission

pumpingequipment,35storagetanksincludingacoveredreservoirandl-,T28milesofdistribution
mains.

Page 6 of 8

South Central Connecticut Regional Water Authority Statement of AbilitY

provides all of the potable The South CentralConnecticut Regional WaterAuthority (SCCRWA) currently purchase of the East Derby the East Derby Waterworks. After

water supplying the customers of and current staffing' waterworks, sccRWA intends to continue to provide service using existing facilities would continue to be managed from our operation and maintenance of the East Derby waterworl<s
office at 90 Sargent Drive in New Haven, CT'
Pla

n of Approach

SCCRWA is aware

which of the need for significant capital improvements in the East Derby Waterworks plan for the East are the responsibility of the City. SCCRWA has developed a five year improvement This plan Derby Waterworks that addresses customers' needs and the CTDPH's recommendations' tank, replacement of includes upgrades at all of the facilities, repainting of the Strang Road storage is the successful outdated pumps, motors and generators and various SCADA upgrades. lf SCCRWA 2018. Completing this work will improve bidder, this work will be staged and occur between 2013 and the need for service and reliability to the customers of the East Derby Waterworks and reduce emergency repairs under normal operating conditions'

Page 7

of 8

Regional';'

'.:,'

: : :,:,. Authority

South Central Connecticut Regional Water Authority Bid Proposal

December 20,2012

one-million-oneThe south central connecticut Regional water Authority bids 51,100,000; in words: owned by the City hundred-thousand dollars, for the purchase of all of the assets of the Water System capital of Derby in the city of Derby. This bid takes into consideration the over s500,000 in system the next year to comply with the improvements the City of Derby would be required to make within on March results of the State of Connecticut Department of Public Health's Sanitary Survey conducted 27,2012, should the City retain ownership.

t-ar?yL Bffig{man
President and Chief Executive Officer South Central Connecticut Regional Water Authority

STATE OF CONNECTICUT

rr.OecoHc1ue0
COUNTY OF NEW HAVEN

E:le

,zorz

REGIoNAL WATER of signer and sealer AUTHORITy, a public -rporation and politicalsubdivision of the State of Connecticut, his/herfree act and deed as such officer of the foregoing instrument, and acknowledged the same to be me' and the free act and deed of that public corporation and political subdivision, before

S'rdelr \- crnA CLO

Personallv

appeared Lctr

Ernq clvncavr 'l L 'CENTRAL CONNECTICUT SoUTH

Commissioner of the Superior Court Notary Public My Commission ExPires:

JUDITH SODA
NOTARY PUBLIC
MY COMMISSION EXPIRES JAN.31,2016

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