Waukon City Council discusses sewer rate increases, council member resignation at special session; decides against using TIF for new sewer plant, will accept council candidate interest inquiries until April 13
by Joe Moses
The Waukon City Council met in a pair of sessions this past week, including a Wednesday, March 28 special session and its regular Monday, April 2 session. Coverage of both meetings appears below.
- MARCH 28 SPECIAL -
The Waukon City Council met in special session Wednesday evening, March 28 to discuss sewer rate increases, clarification of City duties and a city council member’s resignation. Mayor Pat Stone called the meeting to order with a capacity crowd in attendance in the City Council Chambers of Waukon City Hall.
City Clerk Al Lyon provided an overview of three different scenarios on sewer rate increases in regard to helping finance a new wastewater treatment plant in Waukon and how each would affect a sampling of residential, commercial and industrial customers. Lyon used a projector to display information from his laptop computer to a screen in the corner of the council room.
The scenarios discussed included a percentage increase using tax increment financing (TIF); a percentage increase without using TIF; and a percentage increase with a flat monthly sewer fee increase ($3 for residential properties and $10 for commercial properties) with TIF. Lyon explained that the new wastewater treatment facility has an estimated cost of $8,830,000 and will require a $549,000 annual loan payment over a 20-year period and that with current annual sewer revenue for the City at approximately $450,000, a sewer rate increase will be necessary to cover the payment and operational costs for the wastewater facility.
Resident Jim Ryan questioned the council about whether or not monthly billing is being considered in place of quarterly billing in light of the rate increase. Council member Gayle Decker indicated that the City is currently undecided on whether to change the quarterly billing cycle that is currently in place for residential customers. Lyon further addressed the issue, indicating that monthly billing would require existing meters to be replaced with radio-read meters at an approximate cost of $450,000, allowing for meter reading to be done quickly using a monthly billing cycle.
Resident Gregg Jones questioned the council, “If we use TIF dollars, taking that money away from street projects, do we have a five-, 10-, 15-year plan for streets?” Lyon indicated that he and City Attorney Jim Garrett have discussed the possible use of TIF funds for street projects, but restrictions on TIF funding require its use for blighted areas and will not allow for that particular use in regard to streets. Lyon further explained that TIF has an immediate negative impact on the City’s general fund, with the Police Department, Parks and Recreation, pool and similar areas being directly affected. Lyon continued his explanation, pointing out that every $100,000 of TIF funding takes approximately $30,000 out of the general fund, which impacts other areas of City operations needing funding.
Later in the meeting, City Manager Dean Hilgerson further addressed the multi-year plan for street projects, indicating that every three years a street project would be scheduled, with street maintenance projects accomplished on an annual basis. Hilgerson commented that this is not a formalized plan but puts a structure in place for street projects and maintenance and allows for a more disciplined approach by the City and allows citizens to hold the City accountable.
Decker questioned whether there are any other options for financing a project such as the treatment facility other than TIF or the State Revolving Fund (SRF). Hilgerson indicated that a property tax levy for debt could be considered, but also said that in discussions last fall with the council and Managing Director Travis Squires of Piper Jaffray, there was sentiment - but not necessarily a consensus - to not raise property taxes.
Hilgerson indicated that a franchise fee could be utilized, with early discussions of the wastewater treatment facility centering around making it self-sustainable. Stone summarized that annual payments will be the same under all scenarios being discussed, with variables being considered including whether to self-fund the project through an increase in sewer rates or to use TIF funding, which would ultimately reduce the required increase in sewer rates but also reduce the amount of funds available in the City’s general fund for other operations.
Hilgerson discussed that in conversations with Squires and Area Director Doug Moss of the USDA, that even with the rate increases discussed in association with the new wastewater treatment facility, Waukon is still below the average for sewer rates across the state of Iowa. Later in the meeting, Decker discussed that previous councils are not being blamed, but sewer rates have not kept pace with expenses or allowed for the creation of a reserve to offset the cost of necessary wastewater treatment facility upgrades or replacement.
CLARIFICATION OF DUTIES
The council moved into the next agenda item relating to the clarification of City duties. City Attorney Jim Garrett provided an overview of the mayor and city council roles, according to City code, indicating that Waukon has a weak mayor and strong city council form of government. Garrett explained that some supervisory duties have been given to the city manager, with duties and power also being given to administrative agencies and specific boards. Garrett discussed that the mayor is the presiding officer of the city council and is responsible for decisions relating to supervision of department heads.
Stone asked for specifics relating to areas where he has over-stepped his duties as mayor, and said that he would like to address those issues - one of the reasons for the special session. Decker indicated that a closure of a portion of the initial block of West Street in downtown Waukon for St. Patrick’s Day was one such issue.
Stone indicated that he polled city council members before making the decision, with Decker questioning whether or not this was a violation of open meeting laws. Stone did not believe that was in violation. Garrett indicated that in this circumstance, he had recommended Stone issue the street closure since there was not enough time to call a council meeting on the matter. Garrett described this instance as a common sense decision and that if it had been a more important matter, he would have advised Stone to not poll the council or close the street without approval at a council meeting.
Council member Arvid Hatlan discussed concerns that policy and procedure were not being followed by the mayor in closing a street and in ordering the police chief to not fully enforce the open container ordinance during the recent St. Patrick’s Day celebration in Waukon. Council member John Lydon offered that this has been a learning experience for all involved, noting that communication is important and that the council must move forward. Hatlan agreed with Lydon’s comments and added that there are $10-$12 million in major projects taking place in the next couple years and that policy and procedure need to be followed.
Lyon discussed nuisance abatement with Garrett, indicating that there is some conflict within City code relating to the duties assigned to the mayor and city manager. Garrett explained that nuisance matters are the responsibility of the mayor or authorized officer and that the city attorney is contacted and, in turn, files a citation against the property owner.
RESIGNATION OF COUNCILMAN JONES
The council then moved into discussion of the resignation of council member Dwight Jones from his At-Large council seat. (Although not discussed during the meeting, follow-up by The Standard in regard to Jones’ resignation letter and further explanation also appear on this same page in a shaded box in the print and e-editon of The Standard).
Garrett indicated that there are two choices to fill the vacancy created by the resignation, which include an appointment to fill the vacancy or conducting a special election. Jones’ current term on the council is schedule to expire at the end of December in 2019. Following discussion, the Council approved to fill the vacancy by appointment (the public notice of which appears on Page 5B in this same issue of The Standard). The council collectively thanked Jones for his service to the City of Waukon.
- APRIL 2 REGULAR -
Mayor Pat Stone called the Monday, April 2 regular meeting to order with approval of the current agenda and March 19 regular session and March 28 special session meeting minutes. There was no Public Comment.
Under Departmental Reports, Street Superintendent Keith Burrett discussed ongoing storm sewer repairs, a recent inspection of First Avenue SW with a representative of River City Paving and that the Street Department has begun 10-hour, four-day work weeks. Water and Sewer Superintendent Bob Campbell discussed the flow study scheduled for the week of April 16 with measurements to be taken at various arteries of the storm sewer during a rainfall.
Park and Rec Wellness Director Jeremy Strub advised that the clean-up taking place in the City Park will be temporarily placed on hold due to forecasted weather conditions and that youth soccer practice is scheduled to start this week, weather permitting. City Manager Dean Hilgerson discussed the contract with Northeast Iowa Resource Conservation and Development (RC&D) to conduct a low-and-moderate income (LMI) survey to determine eligibility for a Community Development Block Grant (CDBG). Hilgerson also provided an update on meetings involving the 2019 Iowa Department of Transportation (DOT) street project, sidewalk extensions and street lighting.
Hilgerson recommended adding a Personnel Committee agenda item to an upcoming city council agenda to assist in the hiring process in the future.
Under Regular Business, Police Chief Phil Young discussed the two vacancies in the Waukon Police Department with testing to take place Saturday with several candidates. Council member Ben Rausch discussed the interview process timeframe recommending that this be accomplished within two weeks since the Police Department has two officer vacancies. Young discussed the possibility of evening and weekend interviews, with Mayor Stone and city council members as part of the interview committee.
Stone and council member Gayle Decker discussed the city council vacancy with the resignation of Dwight Jones and that several phone calls and emails have been received from individuals interested in the appointment to the council. Following discussion, the city council agreed that anyone interested in being appointed to the council vacancy should contact City Clerk Al Lyon by email at cityclerkwaukon@neitel.net by Friday, April 13 at 3 p.m. Candidates are encouraged to provide background information relating to community involvement, boards and committees that they have served on, professional experience and why they would like to serve on the city council.
Hilgerson discussed the 2019 Iowa DOT sidewalk easements and recommended that the City accept the funds, which the council approved.
The council moved into the Trees Forever planting project presentation, with Joe Cunningham providing an overview of the Trees Forever Committee’s history and activities. Cunningham discussed two grants, one with Alliant Energy to plant trees in boulevards and the other with Black Hills Energy to plant trees in the City Park and elsewhere within Waukon. Council member Arvid Hatlan discussed concerns with trees planted in boulevards interfering with utilities. Decker recommended tabling this agenda item and taking a visual survey around Waukon to determine problems with tree roots and sidewalks. Cunningham discussed the replacement of dead trees and wind-stressed trees in various locations. The council agreed to table this agenda item for further discussion at the next council meeting.
Strub conducted a Park, Recreation and Wellness Board presentation providing an overview of youth activities including soccer, baseball, swimming, archery, flag football and volleyball, as well as adult activities including co-ed softball, sand volleyball, kickball and indoor volleyball. Strub talked about the Waukon Aquatic Center, City Park, Softball Complex, Sports Fields and the Waukon Wellness Center, which has 1,170 full-time memberships. Strub also discussed the Wellness Center’s usage, with 5,383 check-ins during January and a highly used Community/Senior Room.
Strub discussed the possibility of converting a seasonal part-time position at the Wellness Center to a full-time position to include wintertime snow removal, floor cleaning and general maintenance. Strub discussed interest from the part-time employee to move to full-time year round. The council approved to move forward by posting a notice for the full-time position at the Wellness Center and City Hall for ten days and adding that item to the next meeting agenda.
Young discussed the Mock Accident Drill to take place April 18 from 12-3:15 p.m. at Eleventh Street and Third Avenue NW, with both streets shut down for the exercise. The council approved the closing of both streets for the Mock Accident Drill being conducted prior to Waukon High School’s Prom weekend.
The council discussed whether to lower or keep sidewalk snow removal fines the same. Council members were in agreement that the $200 fine should continue and that the mayor was within his authority to have the Street Department clear sidewalks several days after the end of the last snowfall. The council will publicize the ordinance again next fall.
Jim Bieber with Bieber Insurance discussed an insurance reclassification for a portion of the City of Waukon’s inland marine insurance to property coverage. Bieber indicated that the reclassification will result in the savings of $1,500 per year. The council approved the insurance reclassification.
The council combined the next two agenda items involving a Street Department truck lease and a Street Department asphalt machine for discussion. Hilgerson indicated that the dump truck would need to be ordered soon with the lease schedule and a November 2018 delivery. Hilgerson recommended that an onsite demonstration take place before purchasing an asphalt machine for street repairs. Burrett discussed the process involving infrared asphalt repairs, and Rausch and Decker discussed the price range and capabilities of different types of asphalt machines. The council tabled the matter until the May 7 city council meeting, allowing more time to research asphalt machines.
Hilgerson discussed the State Revolving Fund (SRF) Loan status, indicating that Waukon is on the approved list for the wastewater treatment facility loan and that an application has been submitted for the planning and design loan, which Hilgerson anticipates will also be approved. Hilgerson indicated that he anticipates preliminary plans will be completed by Fehr-Graham Engineering by June 22.
The council discussed sewer rates, with Stone indicating that most of the feedback he has received from residents has been to not use tax increment financing (TIF) and, in turn, keep more funds available in the general fund for street projects. Hatlan discussed that the feedback he has received from residents indicates that sewer rates should pay for the new wastewater treatment facility. The council approved to not use TIF and following additional discussion, approved to not use a graduated sewer rate.
Hilgerson and the council discussed water and sewer bill adjustments and various scenarios involving water leaks. Hilgerson discussed reviewing the ordinance and indicated that a standard bill forgiveness formula is likely not possible with various scenarios and being equitable to those involved. Hilgerson discussed that the City has allowed payments over time for excessive water bills and in some instances allowing for penalty forgiveness. The council approved to leave the penalties the same as they have been.
The council moved into discussion of the First Street SW asphalting of a portion of a cul-de-sac. Hilgerson indicated that the cul-de-sac was part of a development agreement from several years ago. The council accepted the bid from River City Paving of Decorah for four-inch hot-mix asphalt and associated costs at a total of $9,601.50.
Lyon discussed the Resolution for the Greg and Marlene Palmer Plat of Survey for property which is within two miles of Waukon. Lyon indicated that Planning and Zoning recommended waiving the right to review. The council accepted the plat request.
Lyon discussed the Resolution for the Aveka Plat of Survey involving two small lots at 3,200 square feet, which Planning and Zoning recommended approval. The council accepted the plat. Lyon also discussed the Resolution for the Fareway Plat of Survey with Planning and Zoning recommending denial due to a lot not meeting a necessary width. The council did not approve the request. No action was taken following a recommendation by City Attorney Jim Garrett on a plat request for Justin Sweeney.
The next three agenda items were combined into one vote for approval. The economic agreement between the City of Waukon and WEDC for $21,877 for administrative services, the economic development grant to WEDC for $16,123 for general administrative purposes and the economic development grant to ACED for $12,394 for general administrative purposes, all for Fiscal-Year 2018-2019, were approved.
The Ordinance amending duties was tabled for discussion at a future meeting. Under Other Matters, Rausch discussed ongoing research into broadband internet options.
