City of Birmingham

The City of Birmingham is seeking to privatize its water and wastewater system in a manner that will provide the greatest financial and other benefits to the City, the existing employees, and the customers, resulting in quality service, and ensuring environmental stewardship. To this end, this Revised Request for Proposal (RRFP) is issued by the City requesting approaches for the Privatization of the System or parts thereof. For the purposes of this RRFP and all resulting Proposals, the term "Privatization" should be interpreted broadly to include any Privatization alternatives consistent with the scope of Privatization of the RRFP.

The City is asking Proposers to be expansive and creative in the development of their respective proposals. In addition to any other proposed services, each Proposal should provide for the operation and maintenance (O&M) of the following facilities (herein referred to as the "Major System Facilities"):

1) the Water Treatment Facilities (the Shades Mountain, HY Carson, Putnam, and Western water treatment plants [also referred to as "filter plants"] and associated solids disposal plants, and

2) the Wastewater Treatment Facilities (the Riverview and Moody wastewater treatment plants.

To be considered by the City, the Proposal must clearly demonstrate that the proposed Privatization Approach meets the following objectives ("the Objectives");

Maximize benefits to the residential, commercial, wholesale, and industrial customers, the Existing Employees, the communities served by the System, and the City;

Provide Enhanced Treated Water, meet all Effluent Standards, and provide high-quality service for all other areas of service that are proposed;

Sustain the high-level of environmental stewardship currently provided by the Birmingham Water Works and Sewer Board (BWWSB) so that the continued health and welfare of the citizens and the environment is ensured; and

Provide substantial financial benefits to the City.

Among other things, the Proposals will be evaluated based on satisfaction of the Objectives, the Proposer’s operating plan, and its demonstrated experience (both operational and financial). After evaluating the Proposals, the City may begin negotiating the terms of an agreement that best meets the Objectives of the City. The City will have complete discretion in determining whether to enter into a Definitive Agreement with one of the Proposers or some other entity and with respect to the terms of such agreement. The Definitive Agreement may incorporate elements and terms other than those set forth n the Proposals. The City may, at its sole discretion, choose not to enter into an agreement as a result of this procurement.

A single Proposal (with separate components for technical aspects, price, and the Proposed Agreement) is sought from each Proposer. The technical component and the price component should address O&M of Major System Facilities as a particular component of the Proposer’s Privatization Approach in order to assist the City in evaluation of the technical, contractual, and price components of the Proposal. Schedules 1 and 2 in Appendix C describe the performance and O&M standards for the Major System Facilities. The Proposer should include these performance and O&M standards in a Proposed Agreement reflecting the proposed Privatization Approach.

This RRFP is issued to those entities that were selected based on their response to the requirements that were outlined in the Request for Qualifications (RFQ). dated September 1, 1998. It supersedes the Original RFP issued on September 29,1999, that requested proposals for the purchase of the System.

The Proposals are due March 19, 1999.

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