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There are a number of professionals who may be needed to provide assistance with district formation. These are: engineers, certified public accountants (CPAs), attorneys, bond attorneys, and operators.
For all public funding sources (including Rural Development (RD), State Revolving Fund (SRF), and the Office of Community and Rural Affairs (OCRA), the community may need the services of the following consultants:
All consultants whose costs will be paid out of OCRA money will need to be procured according to OCRA requirements (including legal advertisement, certified mailings, and scoring by a selection committee designated by the applicant). Grant administrators must be paid using OCRA funding, so they must be properly procured as well. Rate consultants and bond council are needed to close loans from the State Revolving Fund (SRF) and the United States Department of Agriculture (USDA). Please note that some financing institutions will not cover work performed before the district has been formed. Action made after that point may be covered by loan financing.
The process for hiring engineers is called the QBS or Qualifications Based Selection. The guide is entitled QBS User's Guide: The Process for Selection of Professional Services. The guide includes sample requests for proposals and qualifications.
Generally, the district will provide engineering firms with a detailed scope of services and then request qualifications. After reviewing these initial qualification packages, the district may elect to develop a short list of engineers to be interviewed and evaluated in person. All applicants must be notified of the results. The selected engineer is then asked for a proposal to help define contract terms, fees, and other details.
When setting criteria for using in hiring an engineer, the statement of qualifications evaluation form [PDF] may be helpful.
Below are some points to keep in mind when working with an engineer:
Rate Consultants can provide the cost of their services. It is important in the job description [PDF] to include a scope of services. These are services the consultant will provide regardless of how long your start-up process takes.
You can contact an association or another district to verify if the amount you are paying is reasonable. Examples of associations which help RSDs and RWDs are the Indiana Regional Sewer District Association, Rural Community Assistance Program and the Alliance of Indiana Rural Water.
After advertising and receiving proposals, your hiring committee or board can use the statement of qualifications evaluation sheet [PDF] to rate the various applicants in order to choose the best one. This scoring sheet can also be used to establish criteria to include in the job description.
When hiring someone to construct rates it is important to consider the need for a Certified Public Accountant (CPA). A CPA must follow a professional code of ethics and must meet specific standards for experience and education.
This professional should be familiar with the State Board of Accounts (SBOA) manuals related to your district.
Seek recommendations from the County Council, Town Council, or Chamber of Commerce. Another good source for referrals is local Regional Sewer Districts and Regional Water Districts. More contact information for the Indiana CPA Society can be found in the association list.
A bond attorney is needed on a revenue bond or other types of bonds. Bond attorneys can assemble materials and explain the districts ability to pay back the bonds. The lenders and the district have vested interests in having a bond counsel present. During the loan closing, counsel will explain the process as it proceeds and ensure it is done correctly. At the end they will be able to provide the district their opinion of the closing. Overall, counsel is also present for the lender to know that the bonds will be established correctly.
A revenue bond is a common type of bond, and is issued to fund public works projects, or utilities. It is supported by the money received from the rates collected. There are many other types of bonds.
Major lenders may have lists of "acceptable" bond counsel. The rate consultant who is hired may also be able to suggest potential bond counsel. U.S. Department of Agriculture Rural Development (USDA-RD) is one major lender who has lists of bond counsel which the district may use. However, the district may also use another attorney if they meet the qualifications and requirements in order to serve in such a role. Another major lender, State Revolving Loan Fund (SRF), does not have a list of counsel. Instead, SRF requires that your district have a nationally recognized bond counsel in order to close the loan. They will not provide a list of accepted or previously used counsel.
An example of materials which may be collected together by the bond counsel may include but is not limited to the following: ordinances, rate reports, letters required, letters of intent to meet conditions, the ability to build on private property granted by the counsel, other financial information about monies available so that projects may proceed, bond sales certificates, certificates related to bonds, taxes and certification and letters from counsel.
For tips on how to hire a bond counsel please see the section on Suggestions for working with an attorney. In addition, please be sure to verify with your lender that you need bond counsel. If you do not need one, you may want to talk with your current attorney and rate consultant to determine if it is necessary for you to have a bond counsel present.