Jeff council saves money with water treatment hire, bond issue, insurance premiums

The city of Jefferson scored a win with the hiring of Marty Murphy to operate the water treatment plant after the retirement of current operator Tom Schilling.

Approval of Murphy’s hiring was on the city council’s Dec. 8 agenda. He will start Dec. 29 at an annual salary of $62,000.

Also on the agenda was consideration of a professional services agreement with Bolton & Menk to operate the treatment plant during the transition to a new operator. The agreement was dated Nov. 20, while the city was still in the process of advertising the vacancy. The agreement could have cost the city as much as $57,800 if the transition took six months.

However, Murphy is already a Grade 3 operator, meaning he has completed the necessary training to meet state requirements. City administrator Mike Palmer called Murphy “a good find” because of the short transition needed.

Murphy worked at the Jefferson water plant previously and is now working at the Fort Dodge water plant.

He will need to upgrade his water distribution credential from Grade 1 to Grade 2, a task city public works director Dave Teeples thinks he can accomplish in the first month.

The council later approved the professional services agreement with Bolton & Menk, but Teeples said that within a month, Murphy will be able to run the water plant. The agreement has no minimum payment each month; the city will pay only for services used during that transition.

Palmer recognized Schilling for his 20 years of employment with the city. He’s been the Grade 3 operator at the water plant since 2008. Schilling thanked the council and his coworkers for the opportunity to work for the city. He also recognized his wife for putting up with middle of the night and weekend alarms and phone calls. He reminded the council that all city employees deal with that as they’re on the “front line” dealing with problems.

The city council approved an engagement letter with Piper/Sandler to handle issuing general obligation bonds for a 2022-24 capital improvement program. Piper/Sandler will be paid a minimum of $12,500, plus 1 percent of the gross proceeds of the bonds sold. The bond issue will allow the city to recover the cost of downtown improvements using tax increment financing (TIF) funds. The issue will include funds to refinance existing bond indebtedness at a lower interest rate at an estimated savings of $284,000.

The city also will save an estimated $40,000 on health insurance premiums in the coming year. The council approved continuing the current health benefit plan for the coming year. Palmer reported the savings will come from a 7 percent reduction in the premium. Still, the city will pay approximately $500,000 in premiums.

The council approved a 5-year capital improvement plan and match funding for an airport improvement project. The council has approved similar plans the last several years, city engineer Jim Leiding said. The plan is a step in the funding process. It names a 100’ X 100’ hangar as the priority for fiscal year 2022, fueling system improvements funded by the Iowa DOT in FY 2023, and new vault and electrical equipment in FY 2025.

Estimated cost of the hangar is $958,900, with the Federal Aviation Administration paying $600,000 of that.

“This isn’t a commitment to do anything. It’s a notification to the FAA that this is what’s on the list and what they’re (the airport commission) is working towards. If it does move to an individual project, there would be grant agreements and things of that nature,” Leiding explained.

The council approved the third reading of an ordinance providing for commercial cardboard collection fees. The ordinance goes into effect after it’s posted as a legal notice in the city’s official newspaper.

At the close of the meeting Palmer recognized city attorney Bob Schwarzkopf, who is leaving the position effective Dec. 31. He’s been city attorney for 29 years. Palmer said Schwarzkopf has been “quite a community guy” and mentioned his involvement with the Jefferson Kiwanis Club and the Bell Tower Community Foundation. Palmer said Schwarzkopf was “the mover and shaker” in getting historic district designation for Jefferson’s downtown square. “It’s a gift that keeps giving. We wouldn’t have all this downtown renovation if it wasn’t for that step that Bob encouraged the council to take,” Palmer said about the designation.

The council canceled its regular meeting on the fourth Tuesday of the month, Dec. 29. The next council meeting will be Tuesday, Jan. 12.

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