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Frostburg to hire bond counsel for CSO projects; engagement cap proposed at $50,000
Summary
Staff recommended engaging McGuire Woods as bond counsel for two combined-sewer-overflow projects (CSO 10b and 10c); cost estimates rose to $10,000–$20,000 per loan and staff proposed a conservative $50,000 not-to-exceed cap for both agreements.
City staff asked the council to approve a bond-counsel engagement to support two planned combined-sewer-overflow projects, CSO 10b and 10c, saying about half of the projects’ funding will be debt and loan forgiveness that requires third‑party counsel.
Elaine, the city’s finance director, briefed commissioners on discussions with McGuire Woods. She said the firm advised that recent bond-counsel work for the city historically cost $6,000 to $10,000 per agreement but that market rates have increased; current estimates are about $10,000 to $20,000 per loan. Because the city will need two separate loan agreements (one for 10b and one for 10c), staff recommended approving an engagement letter set as a “not to exceed” amount of $50,000 to cover anticipated fees and uncertainty.
Elaine said McGuire Woods offered a 15% discount on billing rates for the city. Staff described bond counsel as necessary to execute the loan documents and to enable the city to access loan and loan-forgiveness financing administered through state programs. Staff noted additional city legal review would be required and that the proposed timeline is tight: counsel work would begin immediately to meet an anticipated July loan closing and to allow the Maryland Department of the Environment to complete approvals and the project to go to bid.
Councilmembers indicated support for moving forward. Staff said they would present the engagement letter for approval at next week’s meeting.
