Kalona council awards contract, authorizes up to $7.3 million loan for wastewater upgrades

The Kalona City Council on June 15 awarded the Wastewater Treatment Facility Improvements Project contract to J.B. Holland and approved action authorizing a sewer revenue loan proposal of up to $7.3 million to fund conversion of the city’s existing lagoon to a three-cell aerated lagoon with a subsurface aerobic gravel reactor (SAGR) unit. Mayor Mark Robe opened public hearings on the State Revolving Fund application and the loan proposal; staff reported no oral or written comments during the hearings.

The council adopted Resolution No. 2026-N to approve the contract and require performance and payment bonds for the project. Council member Bender moved to authorize the mayor and city clerk to sign the contract and bonds; Council member Beran seconded the motion. The council then adopted Resolution No. 2026-O to take additional action on the sewer revenue loan and disbursement agreement, which was described in the resolution as not to exceed $7,300,000 to cover planning, design and construction costs for converting the lagoon and installing the SAGR unit. Council member J Schmidt moved to authorize executing the loan documents; Council member Beran seconded. The council polled and each member voted yes on both resolutions.

City officials said the SRF application and environmental information documents are available for public review as required and staff concluded the project’s overall environmental impacts will be net positive once complete. The contract is signed by the contractor and the mayor as recorded in the council action.

Next steps include executing the loan and bond documents and proceeding with project planning and construction per the signed contract and SRF requirements. The council provided no public objections at the hearings, and the motions to authorize contract execution and loan action passed unanimously.