Pella council approves $7.8 million debt authorization, multiple construction contracts and policy changes

Pella City Council on April 7 adopted a package of resolutions to advance several city infrastructure projects, authorize construction contracts and adjust project oversight.

Council approved Resolution No. 7038, authorizing the issuance of $7,800,000 in General Obligation Capital Loan Notes, Series 2026B, and establishing the authority to levy a debt service tax to repay the notes. The bonds are intended to fund the University Street and Baseline Drive extension and sanitary sewer work for the Pella Recreation Center. Council also instituted proceedings for two preliminary note issues (Resolutions No. 7036 and 7037) covering not-to-exceed amounts of $6,550,000 (urban renewal portion) and $1,250,000 (essential corporate purpose) to begin the sale timetable.

The council approved construction contracts and bonds for two TK Concrete projects: Resolution No. 7034 for apron expansion paving at Pella Municipal Airport (contract previously awarded at $445,930) and Resolution No. 7035 for the University Street and Baseline Drive extension (contract previously awarded at $4,086,920). Staff noted the City Attorney reviewed the contract documents.

The council amended the Project Administration Policy for the Indoor Recreation & Aquatics Center (Resolution No. 7040) to raise the Project Management Committee’s cumulative change order authority by $100,000 to $300,000, while maintaining a $20,000 individual change-order approval threshold for the PMC. Council stated the increase is intended to help complete the project without repeated Council action on smaller change orders.

Other business approved in consent or resolution included a three-year audit services contract with Bergan KDV, permit fee rules for mobile food units (10% of gross sales and a refundable deposit of at least $150), a three-year farm lease for acreage adjacent to the airport, and owner’s-representative and consulting agreements for capital projects.

Votes at a glance

- RES 7036 (institute proceedings, up to $6,550,000 GO Capital Loan Notes): Approved (AYES: 5; Bandstra, Van Stryland, Branderhorst, Dr. Carlstone, Butler) - RES 7037 (institute proceedings, up to $1,250,000 GO Capital Loan Notes): Approved (AYES: 5) - RES 7038 (authorize issuance of $7,800,000 GO Capital Loan Notes; levy tax): Approved (AYES: 5) - RES 7034 (airport apron expansion contract and bond with TK Concrete): Approved (AYES: 5) - RES 7035 (University Street and Baseline Drive extension contract and bond with TK Concrete): Approved (AYES: 5) - RES 7040 (increase PMC cumulative CO authority to $300,000): Approved (AYES: 5) - RES 7042 (three-year audit contract with Bergan KDV): Approved (AYES: 5) - RES 7039 (mobile food unit permit fee policy): Approved (AYES: 5) - RES 7045 (three-year farm lease award to Dan Terpstra): Approved (AYES: 5) - RES 7046 (Greenwood Consulting owner’s representative for Community Center): Approved (AYES: 5)

What happens next

The financing timetable calls for Council to approve a Preliminary Official Statement on April 17, a Note Purchase Agreement on May 5 to lock the interest rate, authorize issuance and legal documents on May 19, and close on June 4. Multiple public hearings and bid lettings for construction projects are scheduled in May; staff will return with contract documents, bid results and related reporting as required.

Council convened two closed sessions under Iowa code for litigation strategy and real estate negotiations and reconvened without taking action. The meeting adjourned at 7:48 p.m.