Waukon City Council moves forward with NW Utilities Improvement Project, although not unanimously; Update provided on JCPenney/Tierney building

by Joe Moses

The Waukon City Council met in regular session Tuesday, September 7 following the Monday, September 6 closure of Waukon City Hall in observance of the Labor Day holiday. The council addressed a full agenda of items including an update relating to the former JCPenney/Tierney building and the Resolution Ordering Detailed Plans and Specifications, Notice of Hearing, Notice to Bidders and Form of Contract for the NW Utility Improvements Project.

There was no Public Comment made and the meeting moved into Department Reports with City Clerk Sarah Snitker providing Park, Rec and Wellness Director Jeremy Strub’s report in his absence. Strub’s report indicated that the State of Iowa is offering a Fitness Center Relief Grant to benefit centers experiencing a 15 percent or more decrease in revenue from 2019 to 2020. Strub’s report noted that an application for this grant has been made.

The report also said that fall youth activities have begun with 197 kids signed up for the NFL Flag Football program, with youth volleyball to begin Saturday, September 11 and adult kickball having already begun the previous week. Strub’s report noted that the Jaycee’s shelter in the Waukon City Park has been taken down due to its condition. An update on the tree replacement program was also provided with 46 of the 60 trees having been claimed and residents still being able to contact Strub regarding the remaining trees that are available.

Water and Sewer Superintendent Jim Cooper provided an update relating to the new wastewater treatment facility, which he noted is operating under an extension of the National Pollutant Discharge Elimination System (NPDES) permit. Cooper said that this six-month extension will lead into a six-month testing period prior to the new NPDES agreement going into effect and will allow the current treatment agreements with Aveka Nutra Processing and WW Homestead Dairy to continue.

Cooper advised that a refurbished 60,000 gallon chemical contact tank at the wastewater treatment plant is currently only able to handle 40,000 gallons due to pressure issues beyond that amount. Cooper said that Senior Project Engineer Lucas Elsbernd of Fehr Graham Engineering is working on a solution to resolve this issue.

Street Superintendent Keith Burrett advised that street patching is ongoing with crack filling having been completed. Burrett noted that tree trimming continues, with line painting on streets to take place following completion of the current street project on Second Street SW.

Police Chief Paul Wagner provided an update relating to USDA grant funding that will go toward the purchase of a new Chevrolet Tahoe to be used as a patrol vehicle. Wagner said that the law enforcement agency that is purchasing the Dodge Durango from the Waukon Police Department was awarded a similar grant through the USDA. Wagner updated the council about the crosswalk at 9th Street and 3rd Avenue NW, noting that the poles from the manufacturer have been lost in shipping with an alternative being discussed with a local contractor.

Chief Wagner also noted that a department officer has resigned and provided a one-month notice but has indicated a willingness to work on a part-time basis as much as his schedule allows. The council discussed staffing for the Police Department, with City Manager Gary Boden advising that six officers and an administrative assistant would be considered full staffing. Council member John Ellingson recommended using a rolling eligibility list as practiced by some police departments as an alternative to waiting for vacancies and then proceeding with the hiring process. Ellingson provided statistics relating to police officer turnover in Iowa and recommended a staffing strategy allowing the Waukon Police Department to be more aggressive in filling vacant positions.

During the City Attorney Report, Assistant City Attorney Kevin Stinn responded to a question from Mayor Pat Stone relating to Town & Country Sanitation’s request for an extra assessment of $60 per ton for the disposal of recyclables, a surcharge not currently part of their contract with the City of Waukon.

Stinn advised that several inquiries have taken place by letter and email with Town & Country not providing a response. He said the City is not currently paying this assessment.

As part of his City Manager’s Report, Boden indicated that meetings and planning will be taking place with hospital administrators and ambulance services within the county following changes at the state level relating to emergency medical services (EMS) now being designated an essential service. Boden said that EMS districts may continue along fire district boundaries as they currently are or other options may be discussed. Boden further discussed the role of Waukon’s ambulance service in providing 24-hour/seven days per week service to the Waukon area and providing back-up service to other districts in the county as needed. He advised that the relationship between the Waukon ambulance service and other districts would likely need to be formalized in a 28E agreement outlining reasonable compensation for this back-up service. Boden further discussed the training and time commitment required of volunteer EMTs with the number of these volunteers decreasing, which has created some staffing issues for ambulance services.

Mayor Pat Stone discussed positive feedback he has received relating to the tree replacement program, the Waukon Municipal Airport and the community, in general.

For the Council Report, council member Arvid Hatlan discussed a curb stop repair or replacement request, with Superintendent Burrett reporting that he has been in contact with the property owner regarding the matter. Hatlan recommended these requests should be brought before the council for approval.

Hatlan also discussed concerns relating to the current Second Street SW project and engineering-related matters in need of improvement. Senior Project Manager Lyle TeKippe of Fehr Graham Engineering recommended meeting with Hatlan later in the week to review several matters, with Hatlan agreeing to do so.

NW UTILITY IMPROVEMENTS
The council moved into the Resolution Ordering Detailed Plans and Specifications, Notice of Hearing, Notice to Bidders and Form of Contract for the NW Utility Improvements Project. Council member Gayle Decker said that he requested this matter be moved from the Consent Agenda to allow further discussion to take place relating to the former Bresnahan property.

Boden noted that bids will be in for review at the next council meeting. Decker said that he would like more discussion to take place, with other potential infrastructure work elsewhere in the city potentially being a more timely and larger project. Ellingson recommended moving forward with the NW Utility Improvements Project.

Ellingson stated, “My position is we go forward with this immediately. We have already delayed this six months because of the COVID issues and rising construction costs. Opening that property with these utilities is paramount to expanding our housing in Waukon. This property has sat for eight to 10 years without development with the City owning it five to seven years. I’ve personally talked to two developers that are anxious for us to open the water and sewer so they can make propositions to the City relating to construction agreements and development agreements, which would be separate from the other project you (Decker) are alluding to.” “In the history of Waukon, we have been very one-faceted, looking at one new project and forgetting about next year’s project or three to five years down the road,” Ellingson continued.” Opening the Bresnahan property could give us upwards of the next 10-15 years of housing development in the city. This money to be expended will also come out of the TIF account, which we are well funded in that area. It does not affect our General Fund. If we need to do both projects at the same time, and I hope we do and I hope we are that lucky, we have the funds available and the City can handle that without taking on any real debt without affecting any City programs.”

Hatlan and Ellingson discussed new information relating to interest from a developer regarding the former Bresnahan property. Decker advised that Waukon has gotten where it is by being conservative with his request for discussion being an effort to make sure City funds are being spent judiciously and that he does not want to stop any residential development or economic development.

Decker further commented, “If we actually have somebody who wants to develop it, I’m 100 percent behind it.” Ellingson responded, “Economic development is for my grandkids. It’s for the long-term viability of the city. A dollar spent today will save you 10 dollars 20 years from now.”

Ellingson further discussed that much attention may be focused on the larger project Decker referred to earlier in the meeting, but it is still important to open up the former Bresnahan property for development. Council member Ben Rausch motioned to order the preparation of Detailed Plans and Specifications, Notice of Hearing, Notice to Bidders and Form of Contract for the Bresnahan or NW Utility Improvements Project. The matter was approved with Decker voting against the motion.

The council moved into the Resolution Approving Detailed Plans and Specifications, Notice of Hearing, Notice to Bidders and Form of Contract for the NW Utility Improvements Project with a Public Hearing to be held September 20, 2021 at 7 p.m. The matter was approved by a unanimous vote from the council.

OTHER MATTERS
The council moved into the next matter, originally included in the consent agenda, setting a date for a public hearing on a proposal to enter into a General Obligation Street Improvement and Refunding Loan Agreement and to borrow money thereunder. Boden explained that this proposal includes the refinancing of $63,000 of debt related to 2016/2017 tax increment financing (TIF) and provided further details on the matter relating to how this refinancing will save the City money. The council approved setting this Public Hearing for September 20, 2021 at 7 p.m. as well.

An update relating to the former JCPenney/Tierney building was provided by Snitker with the council discussing south wall foundation issues. Snitker discussed a recent conference call with the Iowa Economic Development Authority (IEDA) relating to grant guidelines. Stinn provided feedback on legal documentation, noting that a purchase agreement relating to the transfer of ownership and a development agreement relating to the City’s obligations and funding methods will both be necessary.

Plans are in place for the former JCPenney/Tierney building to be renovated for use as a steakhouse restaurant. The IEDA Community Catalyst Building Remediation Grant will be awarded in the amount of $100,000 with a contribution of $200,000 from Fiesta Vallarta business owners Arturro Barreda and Jose Velarde and a $100,000 contribution also coming  from the City of Waukon. Snitker noted that a $3,908 bid for the south wall foundation repair work was received. Asbestos removal was also discussed. The council approved to move forward with the south wall foundation repair bid.

Prior to adjournment, the council moved into Closed Session: Per Iowa Code Chapter 21.5 (1)(j) to discuss the purchase or sale of particular real estate only where premature disclosure could be reasonably expected to increase the price the governmental body would have to pay for that property or reduce the price the governmental body would receive for that property.