Proposals from Aqua Virginia and Virginia American Water have been received to acquire Cape Charles water and wastewater utilities under the Public-Private Education Facilities and Infrastructure Act (PPEA). Town Council approved a motion to move the proposals onto the next stage, which is to have an independent evaluation of each proposal.
The Town may charge up to $50,000 to each offeror to evaluate their proposal.
The Town Council voted to use NewGen Strategies & Solutions. They are offering a fixed fee of $92,120 to perform the following:
A. Conduct background research on these private utility companies regarding similar sized systems.
B. Advise on acceptable processes and procedures associated with the PPEA, the VA Fair Market Value legislation, and the VA State Corporation Commission.
C. Conduct on-site inspection of Town water and wastewater facilities and review data provided by the Town to develop detailed asset lists and determine the current appraised value for the assets/property to be acquired. Evaluate proposed conceptual and detailed fiscal terms against the current value and the fair market value provisions of Virginia state law.
D. Develop a nominal municipal utility rate forecast/capital investment strategy for the next ten years (a the baseline for comparison should the Town reject all proposals and continue to own/operate these utilities). Compare the proposed rate forecasts/capital investment strategies to this municipal baseline projection
E. Provide the criteria/performance metrics used during evaluations, as well as recommended metrics the Town could employ in monitoring provisions under any eventual contract.