Rahway Civicplus #2

Sale and Transfer of City of Rahway Water System and Utility Operations

The City of Rahway, New Jersey is seeking bids for the sale and transfer of its entire municipal Water System. - Government Buyer: - City of Rahway, Water Department, Municipal Clerk's Office - Scope of Sale: - All water utility assets, infrastructure, real property, and equipment - Water treatment plant (7.7 million gallons per day capacity) - 96 miles of water mains, 769 fire hydrants - Two elevated storage tanks (1045 Westfield Avenue, 999 Hart Street), one ground storage tank (Rahway River Park) - Interconnections with Middlesex Water Company and New Jersey American Water - Bid Options: - Base Bid: Includes water treatment plant - Alternate Bid: Excludes water treatment plant - Current Operations & Agreements: - System operated and maintained by Veolia Water New Jersey (formerly SUEZ Water) under a 20-year contract (may terminate upon sale) - Bulk water purchase agreement with Middlesex Water Company (minimum 200,000 gallons/day) - Cell tower leases on storage tanks with Verizon, Sprint, AT&T, and T-Mobile - Buyer Responsibilities: - Assume ownership, operations, maintenance, and management of the system - Comply with all regulatory standards (NJ Board of Public Utilities, Department of Community Affairs, Department of Environmental Protection) - Maintain water pressure, quality, and service continuity - Honor existing easements, agreements, and cell tower leases - Continue senior discounts and free municipal water service - Address identified maintenance and rehabilitation needs (e.g., tank repairs, coating replacements) - Financial & Rate Requirements: - 10-year rate plan: No increases for first 2 years, then capped at 3% annually - City aims to maximize sale value, minimize rate volatility, pay off debts, and transfer environmental/financial risks - No specific OEMs or product part numbers are mentioned; the opportunity is for acquisition and operation of the entire water utility system. - Notable Vendors/Entities Mentioned: - Veolia Water New Jersey (current operator) - Suez Water Environmental Services Inc. (services agreement) - Middlesex Water Company (bulk water supplier) - New Jersey American Water (interconnection) - Verizon, Sprint, AT&T, T-Mobile (cell tower lessees) - Place of Performance/Assets: - City of Rahway, NJ (1 City Hall Plaza) - Water Treatment Plant (1045 Westfield Avenue) - Storage tanks (1045 Westfield Avenue, 999 Hart Street, Rahway River Park) - Middlesex Water Company, New Jersey American Water Company (interconnections) - Unique Requirements: - Coordination with cellular providers during tank rehabilitation - Compliance with all regulatory approvals and continuation of public service commitments

Description

The City of Rahway, New Jersey, issued a Request for Bids (RFB) for the sale of its Water System. The procurement seeks qualified and experienced companies interested in purchasing the City's water utility assets, including infrastructure, equipment, and potentially the water treatment plant. The City aims to obtain the highest value for the system, pay off debts, minimize rate volatility for customers, and transfer regulatory responsibilities to the buyer. Bids were due by April 1, 2026, with a site visit scheduled for February 25, 2026.

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