The Village of Sea Cliff retained Walden to determine the value, feasibility, process and cost of extending their district to include the Sea Cliff Water District (SCW) service area of New York American Water (NYAW). The Walden services also included the development of Rates and Fees for the resulting public utility. The Village’s interest in the system included the 4,500 customers, groundwater wells and production facilities, metering stations, above-ground storage tanks, fire hydrants and below-ground supply/transmission lines, water mains, and other underground piping and service line connections. The engineering and water system assessment included feasibility investigations regarding the regionalization with nearby communities and provided utility service and long-term water quality planning. The Water System Valuation and Appraisal process included four (4) different methods: Asset (Cost) Method; Income Method; Market (Comparative Sales) Method; and Rate Base Method. The Asset (Cost) Method utilizes Original and Replacement Cost information and the determination of Replacement Cost New Less Depreciation (RCNLD) values for the assets. The feasibility of the acquisition was based on a Public Service Commission criterion of ‘public benefit’ and modeled side-by-side test year and rate results under public or private ownership. The Village has concluded that public ownership of the water utility assets can result in lower cost, better water quality and better resiliency for the community.
Water System Valuation of American Water (New York) for the Service Area of Sea Cliff for the Village of Sea Cliff (2021)
