The Circle City’s Updated Method to Determining Sewer Service for New Developments

Before 1989, the City of Indianapolis frequently issued construction permits to developers for sanitary lift stations and associated infrastructure that became a part of the Department of Public Works (DPW) responsibility to operate and maintain. Due to funding needs created by the large number of lift stations, the City amended their ordinance requiring a standardized 50-year life cycle cost analysis justifying a lift station system over a gravity system be completed prior to issuing a construction permit. At that time, DPW developed and implemented a methodology to compare the life cycle costs of these two sewer types. In use for over 20 years, DPW implemented a project in 2011 to update this original methodology, incorporated low-pressure sewer systems in the evaluation, and modernized report development. The revised analysis included updating construction costs, labor costs, maintenance costs (including parts replacement), operation and maintenance costs (costs of daily operation), and rehabilitation costs. In addition, this updated analysis takes into consideration inflation rates over time. Although this document was developed to analyze 20-year life cycle costs of new development driven sanitary infrastructure, its methodology could be used to evaluate other infrastructure projects as well. Since its original development, the wastewater infrastructure assets originally owned by the City of Indianapolis were purchased by Citizens Energy Group. The revised document, entitled “20-Year Life Cycle Cost Evaluation: Level 3 Lift Stations, Gravity Sanitary Sewers, Low Pressure Sewer Systems” (henceforth referred to as Document), was completed in October 2011 and has been implemented after review and acceptance by the current sewer utility owner, Citizens Water (a member of Citizens Energy Group).