Keokuk council approves Bel Air engineering contract, weighs SRF loan and sales-tax dollars to plug street funding gap

Keokuk’s City Council approved an engineering services agreement for the Bel Air Street reconstruction and moved forward with applying for state revolving fund (SRF) assistance for the larger Timia Street project, even as staff warned that rising engineer estimates and high contingencies leave the city with a potential funding gap.

City Administrator Jim Furno told the council the city began the fiscal year with roughly $4.5 million in bond carryover and about $960,000 in HUD grants brought in this year, but noted engineering and construction costs are spread across multiple projects. “We started this year with $4,500,000 on hand,” Furno said, and later warned that a recent engineer estimate for Timia had risen into the $6.9 million range after a 20% contingency was added.

Public Works Director Brian Carroll said the initial $3.7–$4.0 million planning numbers increased once sewer separation and additional scopes were added, but he expects local bid prices to come in lower than statewide averages. Carroll told the council those statewide estimates include metro markets and that "we won't get prices that high" locally but recommended moving through design to narrow costs.

Council members and staff discussed options to close an estimated shortfall of roughly $400,000 if engineer estimates hold. Furno proposed using the infrastructure portion of the local option sales tax — about $600,000 annually — across two budget cycles to prioritize street work. He warned, however, that the city had been tracking some LOT receipts in the general fund and said the accounting will need correction to ensure uses are lawful and properly justified.

On the Bel Air project the council approved a $166,000 design contract with Bolton & Mink for reconstruction from Orleans Avenue to 7th Street. Carroll highlighted an aging sanitary sewer in the middle of the street that will need replacement as part of the reconstruction and said the design phase will include a cost-benefit analysis of storm inlets and whether to restore the ad-hoc parking panels many residents currently use.

David Milmyer of Bolton & Mink said survey and early design work will quickly clarify the project limits and where cost-saving measures can be applied. “Once the survey is completed, we can get a really good idea pretty early on in the design process,” he said.

Separately, the council approved a resolution authorizing submittal of an SRF loan application to help finance the Timia Street work. Staff said the combined project — which adds storm diversion and sewer work while also reconstructing nearby blocks — could total about $8 million, with the sewer portion estimated at roughly $4.7 million. The city plans to apply for a $500,000 CDBG grant to reduce the loan and said it will pursue possible federal reimbursement programs that could cover an additional share, but cautioned those awards are not guaranteed.

Votes at a glance: - Bolton & Mink engineering agreement (Bel Air), $166,000 — approved by voice vote. - Resolution authorizing SRF application for Timia Street — approved. - Other consent items (bills/transfers, appointments) and routine resolutions referenced above — approved.

What’s next: the council authorized moving ahead with design work; if early design and surveying confirm costs within budget, the city plans to bid the project in spring with construction to begin in late spring/summer. If bids come in significantly above estimates, staff said the council could reduce scope (for example, eliminating the lowest portion of Bel Air) to keep the program affordable.

Attribution note: quotes and technical details in this article come from City Administrator Jim Furno (City Administrator), Public Works Director Brian Carroll (Public Works Director), and David Milmyer (Bolton & Mink), all of whom spoke during the workshop and the council meeting.