Lower Southampton Township authorized Keystone Alliance Consulting to prepare a Sewer System Valuation. The goal of the study was to provide the Township with an independent fair market value as the basis for discussions with two private firms and a regional authority considering the purchase of the system. A sewer system valuation study was conducted using the asset and income based methodologies. The income-based valuation was completed using different operating assumption for each possible purchaser of the system. Additional assistance was provided to the Township in the initial phase of the negotiating process.

Keystone performed the following services in connection with the valuation study:

• Compiled an asset inventory for all system components.
• Visited the aboveground facilities of the sewer system to verify the remaining useful life.
• Determined the estimated replacement cost of each component.
• Reviewed available operating and financial data.
• Developed a cash flow analysis for a 20-year period under various ownership scenarios.