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Keokuk secures $1.2M SRF principal forgiveness for Timmy Street sewer work; council approves related project amendments and staffing updates

Keokuk City Council · July 2, 2026
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Summary

City staff said Keokuk received $1.2 million in SRF principal forgiveness for the Timmy Street sewer portion, council approved a $9,900 geotechnical amendment and several funding allocations, and staff reported a wastewater plant operator resignation that will affect operations and certification planning.

Keokuk City staff reported a $1.2 million award from the Clean Water State Revolving Fund (SRF) that will be applied to the sewer portion of the Timmy Street reconstruction project and said the council approved several project and budget actions to move work forward.

Staff described the SRF award as principal forgiveness for up to $1.2 million of sewer costs; overall project estimates remain preliminary and were described in the meeting as in the $6'7 million range pending updated engineering cost estimates. City staff also said the city will apply for a $500,000 Community Development Block Grant (CDBG) to support the same project, with final CDBG decisions expected later this year. Staff said bidding likely will wait until the CDBG decision and other funding confirmations are complete, with construction aimed to begin in March or April of the following year.

On project design, the council approved amendment number three to the professional-services agreement with Bolton & Menk to add geotechnical investigations performed by Terracon. The amendment includes soil borings, laboratory testing and a geotechnical report with design and construction recommendations at a not-to-exceed cost of $9,900, which staff said is needed because deeper storm-sewer work may encounter bedrock and will affect constructability and cost estimates.

Separately, the council approved multiple funding agreements and allocations tied to economic development and tourism: a $40,000 pledge to Main Street Keokuk Inc. (reduced from prior years), a $70,000 allocation to the Keokuk Area Convention and Tourism Bureau for FY2027 funded by hotel/motel tax collections, and economic-development payments including $26,500 to the Lee County Economic Development Group and $3,500 to SERPA.

On city operations, staff announced that Ryan Bell, a grade-four operator at the wastewater plant, submitted two weeks' notice and will take employment elsewhere. Staff said the city will reassign maintenance personnel temporarily and must consider succession planning and certification training for long-term plant operation to meet EPA consent-decree obligations.

The council also approved a capital purchase for the police department'a 2026 Chevrolet Tahoe and upfitting at an approximate cost of $71,000 (budgeted at $75,000) and approved a standard officer training reimbursement agreement requiring a five-year employment term with prorated training cost repayment if the officer leaves within four years.