Madison Street project options reviewed
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The Mount Ayr city council approved covering 100% of city employees health insurance, the rental housing ordinance and heard from V&K Engineering firm about possible solutions to the Madison Street project, at their regular meeting Wednesday, December 18.
Health Insurance
Trevor Bingham, one of the city’s insurance representatives, virtually presented options for 2025 employee health insurance coverage. Bingham noted that rates would be increasing on all plans, regardless of which options the city moved forward with.
He reviewed the two Wellmark Insurance plans currently selected for city employees, and mentioned that he could look into other options if the city wanted to go that route.
Wise communicated that staff members expressed they would like to stay on the same plans they have now.
Bingham noted all plan deductibles reset as of January 1, 2025, and employees would need to open an HSA account prior to filing any claims, if they select the high deductible health savings plan. He recommended starting to put money into the account starting January 1, as employees can set aside up to $8,050 tax-free dollars in 2025.
Bingham also reviewed changes to the United Healthcare dental plans, noting a 5% increase in rates for 2025.
Wise had previously presented council members with a spreadsheet detailing the cost to the city at different percentages if they paid 70%, 60% or 50% of the insurance plan cost at a Monday, December 16 work session.
Currently, the city covers 72% of the insurance plan cost, and employees pay the remaining 28% of the plan cost. Council member Mack Greene and Wise commented that it has been that way for roughly the last 12 years. Mack Greene remembered a time when the city did cover 100% of the cost.
“Is there something we could offer [employees] that is not much more cost, that would strengthen our opportunity to retain the folks we have,” Wise stated at the work session.
Wise noted that if the city were to cover 100% of the insurance plan cost for all employees, the increase would equate to roughly a 3-4% increase in wages.
Council member Chandra Poore asked if Wise had discussed the insurance plan alternative with employees.
Council members discussed whether to offer employees a pay raise or increase the percentage the city pays for insurance plan coverage.
Mike Wik made a motion to approve the same two insurance plans, and cover 100% of insurance plan costs for all city employees. After some consideration, Poore seconded the motion, and the council unanimously agreed to cover 100% of employees insurance plans [not included spouses or children].
Engineering Presentation
Greg Roth with V&K Engineering firm was present to discuss various options to resolve the Madison Street project going forward.
Wise had asked him to come up with at least three options, including one keeping the gravity sewer as part of the plan.
“The one part that I’ll let you know is, if we are replacing concrete, those figures aren’t in there,” Wise noted. “So if we tear it out and put it back in, we would have the option to replace it with concrete or asphalt.”
Roth presented six total options to council members, although some of the options were slight variations of one another.
Option one was a full gravity sewer going from where it’s stopped today and going all the way back to the manhole that’s in the middle of the alley to the south of Madison. This option was estimated to cost $56,754 plus the cost of additional pavement to replace the concrete that was previously poured.
“You’d remove the concrete, remove all the sewer that’s in place, you’d connect back to the manhole,” said Roth, “You’d replace the manhole that’s at the alley approach, and then you’d lay new sewer all the way up.”
Option two was similar to option one, as a full gravity replacement to 50 feet north of existing manhole to save some concrete. The estimated cost for this option was $46,600.
The third option would leave the sewer in the south alley and place a lift station at the alley approach, and replace the sewer to the west. Cost for option three was estimated at $40,800.
Option four was similar to three, but would utilize the older sewer to the west at an estimated cost of $33,200.
A fifth option would leave all constructed sewer in place, and place a new lift station at the end of the pipe and build a new sewer west. Estimated cost for this option is $32,400.
The sixth option would leave all constructed sewer in place, with a new lift station at the end of the pipe and utilize the old sewer west. This option had the lowest estimated cost of $27,400.
“This does not include electrical costs for hookup, etc, that would be an additive to these, but these are all relative costs,” explained Roth. “We do have a application into Alliant for that, but they got a hold of me today and there’s a few questions that we need to learn, like how and where can we place the meter.”
Roth then summarized the options for the council.
“Those are the options, no electrical but it’s all gravity in options one and two and then on options three, four, five and six, you’re not replacing any of the laterals. Any of the work that’s on four and five or five and six, you’re not replacing any of the work that’s done,” stated Roth. “So that would probably be the fastest as far as getting it completed so that the remainder of the work could take place.”
Council member Matt Henle questioned why they are having to re-do part of the project and expressed concern over who would take responsibility.
“These numbers are on top of what the original bid was,” stated Henle. “Okay, so my question is how did we get to this point to begin with?”
Roth replied a number of things likely contributed to the sewer line not being set at the correct grade.
“One of the requirements in the contract was to expose the sewer service,” said Roth, “They went down, got to the first pipe, that was what was shot.”
“Two things from there they could have gone out farther away from that wall. I think Brent said that he knew that the line was like four or five feet out there,” Roth stated. “Brent wasn’t available that day, so the shot was taken and that set the grade for the sewer coming up.”
“Everyone thought they were on the correct grade, and as they dug up with the new sewer they found that service was out away from the wall and that’s where we’re at,” said Roth.
“These are the six options being proposed there isn’t any of them unreasonable,” said Wise. “The most important thing is when you compare a higher cost on the gravity you don’t have any maintenance when it comes to electrical fees. I don’t know what a minimum major fee would be, I’m just going to guess $35, but I don’t know. You know you’re going to have pump replacement pump repairs, so I’m not suggesting that that’s the one we do, I just think that those are things that we need to consider when we go to do this,” said Wise.
“The fastest way to do it is dump in this lift station type deal and no tearing up and that sort of thing,” noted Wise, “so really, we want to try to figure out the best path with the least resistance.”
Roth noted that neither Caliber Construction or V&K Engineering expect the city to pay for the fumble.
“I think like Brent said, it’ll be a resolution that comes at some point,” said Roth. “By no means is it viewed as the city’s taking this full boar.”
“We want to continue working with the city,” said Roth. “We don’t view any relationship like that as a disposable relationship. We’re always in it for the long haul.”
While the council did not make any decisions on which option to move forward with, they did discuss going to the project site in the next few weeks, to better understand what the options entail.
The council then moved on to discussing possible storm water projects with Roth.
Wise and Roth looked at three different areas where drainage improvements are needed, and a fourth site was also identified where more work is needed.
The council ultimately approved an amendment to the current storm water agreement with V&K to complete a survey of the Jackson and Taylor Street intersection and surrounding area. They will provide preliminary conceptual design and cost estimating for drainage improvements for this intersection in addition to the three other areas. The fourth storm water project changed the amount paid to V&K, adding an additional $4,200 to the original agreement.
Rental Housing Ordinance
The council approved the third reading of the new Rental Housing Code, and formally adopted the new ordinance. Council member Jessica Murphy asked what next steps look like, and how soon they would be moving forward.
More information about the new rental housing ordinance will be detailed in the next issue of the Mount Ayr Record News, January 2, 2025.
Other business
In other regular business, the council approved:
a Cat Grant Resolution 2024-873, authorizing Brent Wise and Steve Fetty to execute the CAT grant agreement and utilize funds for the Judge Lewis Pool project..
Resolution 2024-872 for tax abatement as requested by Ed Minnick under the City of Mount Ayr urban revitalization plan.
an agreement to pay Lamson Dugan & Murray LLP law firm a higher rate to retain their services; Partner fees are increasing $10 per hour, Associate fees are increasing $15 an hour, and Paralegal fees will be $5 more per hour.
an agreement with the Sesquicentennial Planning Committee to officially serve as the fiscal agent and manage the budget for the 2025 event.
a one-time employee pay adjustment, providing each city employee with an end of year “bonus” in the amount of $200.
an agreement with Amanda Risius to temporarily help complete utility billing and train city office staff.
Administrator Update
Administrator Wise reported that the city was approached by property owners about gifting the now vacant lot at 204 East Madison Street. The council discussed the property, asking several questions about the cost of cleaning up the remainder of the property, and who would be responsible for related costs.
Wise also asked the council whether the city should make any changes to recycling services now that the recycling survey was completed and reviewed. The council felt that the survey indicated the majority of residents are happy with the current level of service.
