The Scranton Sewer Authority selected a firm to conduct a market valuation to determine what the authority would be worth in a potential sale, SSA Executive Director Gene Barrett said Wednesday.
The authority's 25 million-gallons-per-day wastewater treatment plant serves some 87,000 people in Scranton and Dunmore. A sale of the authority is being considered by financially strapped Scranton as a way to raise cash to meet various financial obligations.
A first step toward a possible sale is determining the authority's monetary value. To that end, a valuation study will assess the authority's financial and operating history, condition and value of assets and other considerations.
The authority last month received qualifications from five firms considering performing a market valuation. Those firms were: MR Valuation Consulting LLC of Colts Neck, N.J.; CaseCon Capital Inc. of Scranton; Reinsel Kuntz Lesher LLP of Reading; Gannett Fleming Inc. of Harrisburg; and Griffin Financial Group of Reading.
The authority reviewed the qualifications, and on Tuesday voted 4-0 to hire Reinsel Kuntz Lesher to undertake the valuation at a cost not to exceed $12,000, Mr. Barrett said.
A study probably would not begin for another week or two, and then would take around six weeks to complete, he said.
The recommendation to choose the firm of Reinsel Kuntz Lesher came from authority Chief Financial Officer Ray Alunni and solicitor Carl Greco, who reviewed the submissions for compliance with specifications, Mr. Barrett said.
With SSA board member Elizabeth Randol absent, board members Thomas Stone, who is SSA chairman, Joseph Garvey, Stu Renda and Leonard Verrastro voted in favor of hiring Reinsel Kuntz Lesher to do the market valuation, Mr. Barrett said.
Asked what would happen once a market valuation study is completed, Mr. Barrett said, "We'll see. We're taking it one step at a time."
Though established by Scranton and Dunmore, the authority is a separate, distinct entity with four representatives from Scranton and one Dunmore member, Mr. Verrastro.
If the SSA and the municipalities decide to pursue a sale, the SSA would dissolve and its functions, debt and assets would revert to the municipalities. They then would sell the SSA to a private firm. The proceeds would be used to liquidate debt, and whatever is left over would be shared by the municipalities.
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