Muncie Sanitary District approves engineering, bond-counsel and advisory agreements to address combined sewer overflows

The Muncie Sanitary District board on March 19 unanimously approved a set of professional services agreements and financial-advisory steps intended to advance the district’s long-term control plan to address combined sewer overflows (CSOs).

The board approved contracts with Lochmueller Group, Inc.; American StructurePoint, Inc.; Ice Miller LLP as bond counsel; and Baker Tilly as municipal advisor. The contracts, described at the meeting as part of the multi-year CSO separation program, carry preliminary engineering estimates of about $4.72 million for the Lochmueller Kilgore interceptor work and $2.5 million for two CSO separations by American StructurePoint (an estimated $1 million for CSO 23 and $1.5 million for CSO 7). District staff said the combined estimated cost across engineering firms and related work is roughly $11 million.

"This is all part of what the district is calling our long term control plan to address combined sewer overflows. This is the federally mandated but unfunded project," District Administrator Rick Conrad said. "The anticipated amount for the work is $4,720,000 — not approving any payments today — just accepting the agreement to work with Lochmueller on this long term control plan project."

Why it matters: federal requirements and an EPA order were cited by staff as driving the separation work; the board’s approvals are intended to let engineering design, bond counseling and municipal advising move forward so the district can secure financing, including bond anticipation notes, for construction.

Board members asked about the stage of design work and alternatives. "Very preliminary," a Lochmueller representative said when asked whether open-cut or bore construction would be required; staff said a specific design likely would not be ready until late in the year. The board also heard that the district will pursue bond financing and that Ice Miller will serve as bond counsel to support preparation of bond documents and the bond anticipation note. Baker Tilly will continue municipal-advisory work under a standard hourly-rate scope; no total fee was given for that agreement.

Votes at a glance - Approval of professional services agreement with Lochmueller Group, Inc. for Kilgore interceptor (estimate $4,720,000): motion passed 4-0. The board accepted the agreement to proceed with planning; staff said no payments were approved at the meeting. - Approval of professional services agreement with American StructurePoint, Inc. for CSO 23 and CSO 7 (estimate $2,500,000 total): motion passed 4-0. - Approval of engagement of Ice Miller LLP as bond counsel: motion passed 4-0. - Approval of scope agreement with Baker Tilly Municipal Advisors (hourly-rate scope; no total amount specified): motion passed 4-0.

All votes recorded at the meeting were unanimous among members present; the board president, Adam Leach, was reported as excused and on training out of town.

Discussion and next steps District staff said the CSO work is expected to be a multi-year effort and called it the first of several projects tied to the long-term control plan. Staff noted the district must coordinate with the U.S. Army Corps of Engineers on related levee work elsewhere on the system and that design work for specific construction approaches would continue through the year. Board members emphasized the need to compare alternatives and obtain cost estimates before construction decisions.

The board did not vote on bond issuance at the meeting; board members approved engaging bond counsel and municipal advisor to prepare legal and financial work needed to pursue bond financing.

The district did not provide a construction start date for the CSO projects at the meeting and did not approve construction budgets or payments; the approvals were limited to professional services agreements and advisory scopes to advance design and financing work.

Ending District staff said they would return with more detailed designs and cost estimates as engineering work advances and financing options develop. The board chair was excused from the meeting.