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Council hears estimate for fixing failed manhole chimney seals; insurance coverage uncertain

Montrose City Council · January 13, 2026
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Summary

Engineers told Montrose City Council that replacing seals on 50 manholes will likely cost $40,000–$45,000. Halme reported $13,842.50 in removal costs and said an insurer signaled it would pay removal but not re‑installation; council asked staff to pursue documentation and possible legal involvement.

Montrose City Council on Jan. 13 heard detailed updates about failing manhole chimney seals installed during the 2020–2025 sewer grant. Riley Rinehart of DGR told council the city and contractors have identified continuing failures and that Halme Construction reported $13,842.50 in staff-hours and equipment costs related to removing the failing seals.

Rinehart said DGR contacted regional installers and received preliminary estimates of roughly $40,000–$45,000 to install new seals on all 50 affected manholes, which equates to about $800–$900 per manhole and includes sandblasting and sealant installation. Council member Nick Vogel cautioned the insurer and contractor paths were not settled: “the subcontractor liability falls under the general contractor,” Vogel said, emphasizing the city would press for insurer documentation. Maintenance Hanisch warned of progressive deterioration: “eventually chimney rot will occur, so the sooner we can move on the repairs, the better.”

Council directed Finance Officer Nicole Siemonsma to request detailed insurance documentation and to have Halme and DGR produce consolidated expense summaries the city could submit to insurers. Council Binder indicated city‑attorney involvement may be necessary as claims proceed. Riley Rinehart will return to a future meeting with any insurance responses and refined contractor quotes.

This item remains in the investigatory stage: no repair contract was approved and council did not vote to fund a replacement program pending insurer responses and cost verification.