Bettendorf council approves $25,000 sewer rate study as annexation questions loom

The Bettendorf City Council on June 3 authorized a contract not to exceed $25,000 with Baker Tilly to complete an across-the-board sanitary sewer rate study for the city's sewer enterprise fund.

City Administrator Decker Plain told the council the study is needed both to evaluate long‑term capital needs at the Davenport Wastewater Treatment Plant and to assess whether a proposed voluntary annexation on the city’s east side should require developers or property owners to pay all or part of sewer costs. "We need to understand before we do that annexation what those sewer rates are likely to be and whether we're going to be expecting the owners and or developers to pay 100%, 75%, 50%, or whatever those costs are," Plain said.

Director of Finance Jason Chat said the proposed work expands a budgeted $15,000 scope to a more detailed review tied to the annexation and current plant projects. "Baker Tilly proposed a cost of $25,000 which is before you for approval tonight," Chat said, adding that the firm can analyze alternative user rates, connection fees and special assessments.

Council members pressed staff on timing, cost control and next steps. Council member Greg Jaeger asked whether the work could be postponed until the next budget cycle and questioned tapping reserves for an unanticipated expenditure. Jaeger also said he had received a memorandum showing a higher potential cost. Chat and Plain said the contract would be written as not-to-exceed and that staff would return to council if the work was likely to exceed the $25,000 cap. Plain said the city expects near-term plant projects to begin within 12–18 months, making sooner analysis useful for decision-making.

Council discussion also centered on how annexation would be handled if the study shows significant city investment would be required. City Attorney Mark (identified in the meeting as the city attorney) said development in the area is likely regardless of city action and that voluntary annexation gives the city an opportunity to set standards and control infrastructure. Council members and staff noted examples of past development that required the city to intervene when septic systems failed.

The resolution authorizing the director of finance to issue a purchase order and enter into a contract with Baker Tilly passed 5–1 (Jaeger opposed). Roll call recorded Baden, Palczynski, Adamson, Nauman and Sechser voting yes; Jaeger voting no. The motion carried.

What the study covers: staff told the council the work will update a 2022 study and will reflect changes including an increase in Bettendorf’s share of the Davenport plant costs from 19.95% (2022) to 21.88% (present), an estimated annual operations increase of about $500,000 (excluding CIP), and a jump in plant capital projects falling to the city from about $778,000 in the 2022 study to roughly $7.9 million under current plans. Staff also said prior estimates for the Spencer Creek lift station were about $2.5 million higher than earlier figures and that an east-side annexation could require up to about $14 million in sewer improvements.

The council directed staff to proceed under the not-to-exceed contract and to notify the council if additional funding will be required. The study will inform whether the city pursues voluntary annexation or negotiates different cost-sharing with developers.

The resolution and related discussion occurred during the regular agenda; public comment on the item was not recorded. The study contract is expected to be executed under the authority of the director of finance upon completion of contract documents.