Bid awarded for wastewater treatment plant improvement project
The increased cost of construction will cause Jefferson residents and businesses to figuratively flush money down the toilet for the next five years.
The Jefferson city council plans at its Dec. 13 meeting to increase sewer rates another 4 percent effective with the January billing, added to the 11 percent increase that was approved in September, making a 15 percent increase. Sewer rates will continue to increase 15 percent for each of the next four fiscal years as well, equating to a 67.6 percent increase over five years.
The increase is due to the cost of wastewater treatment facility improvements being more than anticipated. In September Bolton & Menk engineers estimated cost of the project at $13.6 million. The 11 percent rate increase in water and sewer rates was to raise the amount needed to pay for the project, assuring the city’s ability to borrow from the state Revolving Loan Fund (RLF) for the project.
However, only one bid was received for the project, a base bid of $17,426,100 from Shank Constructors, Inc of Brooklyn Park, MN. An alternate ultraviolent disinfection system was added to the project for a total of $17,504,700. Bolton and Menk engineers Jim Leiding and Kathryn Sterk recommended accepting the bid.
Council member Darren Jackson asked Leiding to explain for the public why he recommended accepting the bid.
Leiding said the last couple of years have been “a very interesting bidding climate for a lot of these projects.” He said there has been constantly changing pricing for supplies and equipment.
“It’s difficult to say if moving forward would have an option or a benefit of seeing lower costs come in… Historically speaking, when we re-bid a project we do not see any significant reduction in costs…. The main part is that I don’t know that we’d have the opportunity for it to be much less,” he said.
Sterk said she talked with the contractor about the bid. He told her the HVAC and electrical control subcontractors both submitted higher costs than he expected. The project being on a “tight site” – a relatively small space – presents issues with staging the project to keep the system operating and challenges in excavating near structures. That also added to the cost.
The improvements to the facility are needed to bring discharge within the National Pollutant Discharge Elimination System (NPDES) permitted levels, and, according to Leiding, because the 20-year-old plant is close the end of its functionality.
Along with the bad news about the increased cost of the project, Sterk shared good news. Iowa is using some of its share of federal infrastructure improvement funds for forgiveness of loans from the Revolving Loan Fund. She said Jefferson would be eligible for some loan forgiveness, “but only if your ducks are in a row.” The city needs to execute the loan agreement with the RLF before the funds available for forgiveness are used by other entities.
The council passed a resolution awarding the contract for the wastewater treatment plant improvements to Shank Constructors, and then set a public hearing for Dec. 13 on a proposal to enter into a sewer revenue loan and disbursement agreement to borrow up to $21 million for the project.
The additional increase in sewer rates will be acted upon at the same meeting.
The council also awarded a contract for a sanitary sewer cured-in-place pipe (CIPP) lining to AccuJet LLC of Perry. AccuJet was the low bidder with bids ranging from $241,105 to $399,360. The project will be done from Lincoln Way south to Russell St between Cedar St on the east and Wilson Ave on the west. It will be paid for with $306,00 of American Rescue Program Act (Covid relief) funds and local option sales tax funds.
Leiding reported the water main project on W. Russell St west of Elm St is completed, but the early cold weather stopped progress on repairing the street and reseeding. Gravel was put down where needed on the street for the short term. Street repair and seeding will be done in the spring, Leiding said.
In other business, the council approved a new policy allowing employees to donate unused sick, vacation, and/or compensatory time into a Leave Bank for the use of other employees who may have a family or personal serious health condition resulting in a need for time off in excess of their available sick, vacation, or compensatory time.
The council approved appropriating funds for rebate payments for development agreements as follows: Lincoln Ridge Estates, $34,000; Briarwood, $6,200; Jefferson Hotel Group, $101,200; Michael and Miranda Wahl (Wahl-McAtee Tire), $19,000; and Jefferson Veterinary Clinic, $14,600.
Mayor Matt Gordon appointed council members Jackson and Matt Wetrick to the animal shelter committee. That committee includes representatives of People for Animal Welfare Society (PAWS), the police department and city staff, and has already had a kick-off meeting. The group received an overview of the current operation of the animal shelter and discussed the budget, collection of fees, and creating a board to operating the shelter. “We’re off to a real good start on it,” city administrator Mike Palmer said.
According to building/zoning officer Chad Stevens, essential completion of the animal shelter is expected next week.
Resident Tim Pound spoke during open forum to encourage the council to amend the city ordinance pertaining to ATVs on city streets to match the state law that went into effect July 1. Pound said he had spoken individually with each council member, but he went to the council meeting to ask for vote of the full council on the matter. “That way due process will be done. The citizens of Jefferson have spoken against it or for it. Let the council decide how we should go forward with this,” he said.
Council member Darren Jackson asked Pound to explain why he is in favor of the new law. Pound answered that the state has done due diligence with the law, that persons driving ATVs on roadways must be 18 years of age or older and have a driver’s license, proof of insurance and registration for the vehicle. The vehicle must also have headlights, taillights and a horn.
He said he respects the safety concerns of chief of police Mark Clouse, but that he doesn’t see the risk of having ATVs on streets as different than the risk with motorcycles and golf carts.
