Litchfield OKs $10,000 Advisory Deal for $27M Sewer Plant Project

Article Summary: The Litchfield City Council approved a proposal from Baker Tilly Advisory Group for advisory services on funding options for a wastewater treatment facility rehabilitation the city estimates at $27 million. The work is capped at $10,000 and will be paid from the sewer enterprise fund.

Wastewater Funding Study Key Points:

The council approved advisory services “for an amount not to exceed $10,000,” with money available in the sewer enterprise fund, according to the staff memo in the agenda packet.

The underlying wastewater treatment facility rehabilitation project is estimated at $27 million, and the city “must explore funding options,” the memo states.

The scope document attached to the packet is captioned “Debt Issuance – 2026 Sewer Bonds – Planning” and is dated Aug. 5, 2026.

Hourly rates in the attachment run from $115 for a consultant to $350 for a principal, plus a 5% fee for software, technology and data security tied to municipal securities issuance.

LITCHFIELD — The Litchfield City Council on Thursday, Sept. 17, 2026, approved a proposal from Baker Tilly Advisory Group to advise the city on how to pay for a rehabilitation of its wastewater treatment facility — a project the city puts at $27 million — for an amount not to exceed $10,000.

The motion was read from the floor at the request of the alderperson presiding as mayor pro tem, and passed on a roll-call vote in which every audible response in the meeting recording was an aye. No dissent was recorded.

The agenda listed the item under the heading “Wastewater – Bob Garcia,” identifying Alderperson Bob Garcia as the council liaison for the item. The motion itself was read by Alderperson Josh Hughes.

A $27 Million Question

The staff memo in the agenda packet lays out the reason for the hire in four sentences. “The City of Litchfield is working with CMT on a wastewater treatment facility rehabilitation project,” it reads. “The project is estimated at $27M and the City must explore funding options.” CMT, the project engineer, “has recommended that the City contract Baker Tilly for this service, as they recently assisted with utility rate restructuring and are familiar with both the proposed project and our enterprise funds.”

The memo lists four recommenders behind the motion: the city administrator, the director of public works, the project engineer and the alderman liaison.

Presiding over the item, the chair told the room the vote was a first step rather than a construction decision. “I think that this particular thing, just so we know, has to do with the work that needs to be done on the sewer plant,” he said. “We know that we have a very big project coming up for that.” He said the council was beginning to look at addressing the need. No other alderperson spoke on the item, and the roll was called immediately afterward.

What the City Is Buying

The packet includes a three-page “Scope Appendix” attached by reference to an engagement letter dated Sept. 26, 2025, between the city and the firm — indicating the city already had a standing advisory engagement in place before Thursday’s vote. The appendix is dated Aug. 5, 2026, and is captioned “RE: Debt Issuance – 2026 Sewer Bonds – Planning.”

The scope is written broadly. Under “General Municipal Advisory Services,” the firm agrees to provide general financial advice on a project, survey available resources to determine financial feasibility, assist in developing a plan including alternative approaches, assist the city in selecting an approach, advise on current market conditions and the financial impacts of federal, state or other laws, help identify other professional services that may be necessary, help coordinate the working group, review relevant documents and assist with other components as requested.

Fees are billed at standard hourly rates based on actual time and expenses incurred “and will not exceed Ten Thousand Dollars ($10,000) without further authorization from the Client.” The rate schedule, effective Jan. 1, 2026, lists a principal at $350 per hour, a project manager at $250, an assistant project manager at $195 and a consultant at $115. Rates are subject to change on 30 days’ notice, and if the city does not dispute a change within that window it “will be deemed to have accepted such change.”

The quoted fees include the firm’s own expenses but exclude direct, project-related costs — travel, and charges of other entities such as rating agencies, bond and official statement printers, couriers, newspapers, bond insurance companies, bond counsel and local counsel, and electronic bidding services. Invoices also carry “a 5% fee for software, technology, and data security specifically related to the issuance of municipal securities.” The city is to receive a monthly statement, with the balance due on receipt.

The appendix also sets out the city’s obligations around what the firm calls nonattest services: the city continues to make all management decisions, must designate an employee with suitable skill, knowledge or experience — “preferably within senior management” — to oversee the work, must evaluate the adequacy and results of the services, accept responsibility for them, and establish and maintain internal controls.

The copy in the packet carries a signature for the firm. The client signature block — name, title and date — is blank.