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Council approves $16M SRF loan authorization and CSO plan update; OKs concrete repairs and change order for sewer separation
Summary
Council authorized a $16 million SRF loan for sewer separation, approved a long‑term control plan update with consultants, passed a negative change order that reduced a Phase 8 contract by $426,490, and authorized professional services for concrete repairs at the wastewater plant.
The City Council approved multiple actions related to the sewer separation program and wastewater infrastructure during Tuesday’s meeting, including financing, planning and repair contracts.
Loan authorization: Finance staff presented and council passed a resolution authorizing a loan and disbursement agreement with the Iowa Finance Authority for up to $16 million of sewer revenue capital loan notes (Series 2025A). The notes will finance Division 8 Phase 3 of the sewer separation program; the term is 20 years with an interest rate presented at about 2.84 percent, and repayment will come from sewer base and user fees.
CSO long‑term control plan update: Council approved a professional‑services agreement with Beans & Kim to update the combined‑sewer‑overflow (CSO) long‑term control plan required by the Iowa DNR. Consultants reviewed the program history (phases 1–10), noted approximately $97 million of project costs to date with about $30 million obtained in grants, and explained that the updated plan will seek a timeline and phasing that aligns with the city’s financial capacity and disadvantaged‑community status.
Contract change order and repairs: Staff presented Change Order No. 1 for the Blakes Branch Sewer Separation Phase 8 Division 3 project. The change reduces scope of trenchless installation by 100 linear feet (replacing it with an open trench installation) and adds zinc coating to ductile iron water mains; the net effect was a negative change order of $426,489.67, lowering the contract sum to about $14.28 million — still under the $16 million budget.
Wastewater plant concrete repairs: Council also approved a professional services agreement with French Renker (design and construction‑phase services) for concrete repair work at the water pollution control facility and at three pump stations. Design services were quoted as a $40,000 lump sum with estimated construction services around $36,000; staff said $350,000 is targeted for construction from existing FY25 concrete‑repair funds.
Why it matters: The sewer separation program is a long‑running, multi‑phase effort required by the DNR to reduce overflows to local waterways; funding and schedule decisions drive rate pressure for sewer customers and the city’s ability to secure grants and SRF low‑interest financing.
Next steps: Staff will manage SRF drawdowns as project expenses occur, continue negotiations with DNR on an updated schedule, issue construction notices for the Phase 8 contract changes, and advertise the concrete repairs work for a construction bid process.
