City Council discusses financing for wastewater treatment facility, grant for former Tierney building

by Joe Moses

The Waukon City Council met in regular session Monday, February 5 to address a full agenda of items including the former Tierney Building grant application, the Waste Water Treatment Facility financing and repairs to the Waukon Wellness Center heating system.

Mayor Pat Stone called the meeting to order with Council member Gayle Decker motioning to approve the consent agenda with a change to the January 15 meeting minutes to reflect that Decker voted against moving forward with the pre-grant application for the former Tierney building. There was no public comment.

Under Departmental Reports, Water and Sewer Superintendent Bob Campbell discussed the compliance schedule for copper testing that takes place before and after the waste water treatment facility. Park and Rec Wellness Director Jeremy Strub discussed youth basketball, the engineer’s estimate of $146,000 being received for the tennis court project with several grant opportunities available, and that the Waukon Wellness Center has been busy in January.

Under the City Manager’s Report, City Manager Dean Hilgerson discussed that Bieber Insurance will be conducting a review of the City’s general insurance and that the Walk-On Waukon group has asked for a  letter of support for its efforts toward grant opportunities.

The Council moved into Regular Business with an overview of the City’s Audit Report by Hacker Nelson. Certified Public Accountant (CPA) Neil Schraeder and CPA Jenny Hennessy discussed the financial highlights of the report including revenue, debt and tax increment financing (TIF). The Audit Report was accepted by the Council.

The City Council discussed the next agenda item involving Managing Director Travis Squires of Piper Jaffary. Squires was not in attendance due to weather-related travel conditions in the Des Moines area but is expected to be in attendance at the February 19 Council meeting to discuss Piper Jaffary’s  financial services agreement.

Hilgerson advised that having a third party analysis of expenses and recommendation regarding water rate increases will show that there is no bias involved in this decision. The Council discussed monthly versus quarterly billing for water usage and that monthly would allow customers to better budget rate increases while providing greater control over water leaks not caught as quickly through quarterly billing. Campbell discussed costs related to the purchase and installation of radio-read water meters.

Hilgerson discussed the Waste Water Treatment Facility financing and the Request for Proposal (RFP) for the process of applying for a $600,000 Community Development Block Grant (CDBG) as a low to moderate income (LMI) community. Hilgerson indicated that a community household income survey will need to be conducted with this grant writing process, which the Council approved to proceed with.

Hilgerson also discussed the State Revolving Fund (SRF) special project indicating that a meeting is scheduled for February 15 to include representatives from Fehr-Graham Engineering, Soil Conservation and Northeast Iowa Resource Conservation and Development (RC&D), who have assisted in gathering information regarding the feasibility of potential projects. Hilgerson discussed that the SRF program would allow up to 10% of the Waste Water Treatment Facility cost, approximately $800,000, to be available for another project with a grant application to be submitted by March 1 with RC&D handling the grant writing.

The Council moved into a lengthy discussion of the former Tierney building grant application. Hilgerson indicated that the pre-application process was completed and that a final grant application is due March 1. Council member Dwight Jones indicated that he is against tearing down the former Tierney building, with Decker going on record that he is for tearing down the building with funds needed elsewhere for a new Police Station and Street Department building. Council member Arvid Hatlan and Decker discussed concerns with the former Tierney building’s south wall, roof and general structural integrity.

Hilgerson discussed the possibility of using the former Tierney building for the Waukon Chamber and Economic Development Office and using that current building as a location for the Waukon Police Station if a business did not locate within the former Tierney building following the grant funding and City investment. Hilgerson recommended moving forward with the grant process with very little downside to rejecting the funds if there is justification to do so if the building is found to not be feasible to restore.

Coordinator Ardie Kuhse with Waukon Economic Development Corporation (WEDC) discussed preliminary conversations with an investor and contractor that sees potential in the former Tierney building. The Council approved an amount not to exceed $5,000 to have an architect or structural engineer provide a structural analysis of the former Tierney building, which will assist the Council in determining the future of the project. The Council approved to continue with the grant application, with Decker voting against the measure.

Kuhse provided an update about WEDC’s Industrial Lot Development Proposal, indicating that there has been recent interest including the potential to sell an industrial lot for use as a location for the USDA/FSA Office.
Campbell discussed the Water Department vacancy providing his recommendation to hire Mark Benda at $13 per hour with a February 12 start date, which was approved by the Council.

Waukon Police Chief Phil Young discussed the Police Department applications, indicating that three applications have been received with only one candidate being certified. Young indicated that this candidate has two-and-a-half years of experience. Young provided his recommendation to hire Lucas Inglett at $19.90 per hour with a start date of February 19, which the Council approved.

The Council approved setting the Public Hearing for the Fiscal-Year 2019 Budget for March 5.

Strub provided an update on the Waukon Wellness Center’s heating unit which will require the replacement of eight heat exchangers. Strub indicated that the repair work would likely need to take place in April or May due to the heat needing to be shut off during repairs. The Council agreed that additional bids on the repair work should be sought and no action was taken at this time.

The Council discussed the Notice of Interest (NOI) for a Storm/Sanitary Sewer Project which Hilgerson will be filing. The Council approved to proceed.

Vacancies on the Planning and Zoning Board were discussed with the seven-member board currently having two vacancies. The Council approved to advertise the two vacancies. An appointment to the Board of Adjustment was discussed, with the reappointment of Kate Wooden being approved.

Hilgerson and City Clerk Allen Lyon discussed the Zoning Administrator position and duties involved. The Council agreed to have this matter added to the February 19 meeting agenda.

The Council approved Thursday, March 8 from 5-6:30 p.m. for the informational meeting relating to the 2019 Iowa Department of Transportation (IDOT) Street Project. Hilgerson indicated that the meeting will be held at the Wellness Center Senior Citizens Room and will involve displays and information on a projection screen relating to the street and sidewalk project. Hilgerson said that affected property and business owners will be receiving information by mail regarding this meeting.

Under Other Matters, Hatlan and Decker discussed a recent update from General Manager John Anderson of the Aveka Nutra Processing facility. Anderson has indicated that the silencer portion of the smokestack is being rebuilt and reinforced and will be installed likely before the next Council meeting, weather permitting. Anderson also indicated that a new stainless steel bag house has been purchased for $75,000 and will better take care of the particulate matter, decreasing odor, and that two exhaust areas have been redirected to decrease noise.

Prior to adjournment, Mayor Stone briefly discussed parliamentary procedure and the importance of allowing one Council member to speak at a time.