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Board approves $725,000 utilities asset-management study after state code change
Summary
The Carmel Board of Public Works and Safety approved a $725,000 contract with Arcadis US Inc. to develop a long-term water and wastewater asset-management plan required by a recent amendment to Indiana law.
The Carmel Board of Public Works and Safety on Aug. 6 approved a $725,000 contract with Arcadis US Inc. to perform a comprehensive asset-management study of the city’s water and wastewater systems, a step board members said is now required by recent changes to state law. "This is a very important contract for us and recommend approval," Carmel Utilities Director Lane Young said during the meeting.
City officials said the study will inventory and assess the condition of utility assets, estimate replacement costs and help set long-term capital and rate plans. The board and staff said the new work follows an amendment to Indiana Code 5-1.2-10-16 requiring municipalities to implement long-term asset-management plans.
Lane Young told the board the study will examine every asset the utility owns — from treatment plants and booster stations to more than 500 miles of water mains and almost 300 miles of sewer mains — and will estimate lifecycle, likelihood of failure and consequence of failure to build a prioritized replacement plan. Young said the city’s replacement cost for those assets is roughly $750 million.
The board discussed whether any prior, smaller assessments had been done and Young said the city had not done an in-depth, systemwide condition assessment like this. He said the work will be used to prioritize replacements and to inform rate-setting. During discussion, a board member asked whether the city’s water-softening process affects asset longevity; Young said staff would ask treatment personnel to look into that.
The motion to approve the standard agreement for professional services with Arcadis US Inc. was moved and seconded and carried on a voice vote. The action funds a phased study of water and wastewater assets and will produce a master replacement plan intended to guide budgeting and capital decisions going forward.
Board members and staff framed the vote as a planning and asset-management step rather than an immediate engineering project: the study will recommend prioritized capital work and timing but does not itself authorize construction contracts or rate changes. Implementation will require follow-up decisions, budgeting and, where applicable, construction contracts or regulatory approvals.
The contract and related materials are available through the city; staff said the study will take place in phases beginning with condition assessments and will continue into the next year.
