Allentown Water & Sewer System Request For

98 Pages·2012·2 MB·English

Statement of Qualifications
in response to
Allentown Water & Sewer System
Request For Qualifications
For Water & Sewer Concession
Submitted by:
Lehigh County Authority
Allentown, PA 18106
August 17, 2012
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STATEMENT OF QUALIFICATIONS

in response to

ALLENTOWN WATER & SEWER SYSTEM REQUEST FOR
QUALIFICATIONS FOR WATER AND SEWER CONCESSION

Submitted by:

LEHIGH COUNTY AUTHORITY
1053 Spruce Street
PO Box 3348
Allentown, PA 18106

Aurel Arndt, General Manager

August 17, 2012
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LEHIGH COUNTY AUTHORITY 1053 SPRUCE STREET * P.O. BOX 3348 * ALLENTOWN, PA 18106-0348
610-398-2503 * FAX [phone]
email: [email protected]

August 17, 2012

Mayor Ed Pawlowski
City of Allentown
c/o Public Financial Management, Inc.
One Keystone Plaza
Suite 300
North Front & Market Streets
Harrisburg, PA 17101-2044

Dear Mayor Pawlowski,

Lehigh County Authority (LCA) thanks the City of Allentown for the opportunity to submit a
Statement of Qualifications (SOQ) in response to the City’s Request for Qualifications for Water
and Sewer Concession.

As detailed in the attached SOQ, we believe LCA is uniquely and highly qualified to fulfill the
City’s expectations and meet Allentown customers’ needs over the next 50 years.

We look forward to discussing our credentials with you and working with you to implement a
concession arrangement. LCA’s first priority in these discussions is to ensure the continuation of
high quality, reliable and affordable water and wastewater services, which the City of Allentown
has provided to its citizens for many decades.

Sincerely,

Aurel M. Arndt
General Manager

Every drop matters. Every customer counts.
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TABLE OF CONTENTS

TAB DIVIDER – PLACEHOLDER PAGE
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TABLE OF CONTENTS

Executive Summary ......................................................................................... 1

Proposer Information ...................................................................................... 5

Description of Prospective Proposer 5

Roles of Team Members & Key Personnel 6

Operator 9

Contact Person 10

Controlling Interest 10

Expected Advisors 11

Comparable Projects 11

References 13

Technical Capability ....................................................................................... 15

Operations & Maintenance Expertise 16

Customer Service 23

Safety & Security 28

Capital Improvements 31

Financial Capability ....................................................................................... 39

Financial Capacity 39

Ability to Raise Financing 41

Confidentiality & Data Room Usage Agreement ............................................. 45
Appendix:

1 Resumes of Key Personnel

2 Overview of LCA Service Areas

3 Other Available Information

Figures:

Figure # Title/Description Page
1 LCA Organization Chart 9
2 LCA Benchmark – Budgeted Water Charges 12
3 LCA Benchmark – Actual Wastewater Costs 13
4 Spotlight on LCA WTP Operations 16
5 LCA Benchmark – Unaccounted for Water 19
6 LCA Benchmark – Water Service Outages 20
7 LCA Efficiency & Growth Comparison 21
8 LCA Benchmark – Customer Service Satisfaction 25
9 LCA Benchmark – Employee Safety 30
10 LCA Safety Performance Comparative 31
11 LCA Benchmark – Capital Project Execution 33
12 Completed and Ongoing LCA Capital Projects 34
13 Spotlight on LCA I&I Program 36
14 Recently Awarded Capital Project Funding 37
15 LCA Benchmark – Water System Bond Coverage 40
16 LCA Benchmark – Overhead Costs 40
17 Summary of Issued Debt – LCA Water Fund 41
18 Summary of Issued Debt – LCA Wastewater Fund 42