Council gets consultant cost estimate for Community Center, approves 2006-07 audit report

By Mary Zielinski
Consultant fees for the Kalona Community Center concept drawings that would take the city all the way to a bond referendum range from $108,099 to $112,523 the Kalona council learned at its meeting Monday.
The fees, provided by Ament Inc. of Cedar Rapids, would be for plans with “real costs,” said City Administrator Doug Morgan.
The fees are based on a percentage of the total project cost with the lowest cost, $1,237,852 (for Option A that would remodel existing space) having a 10 percent fee ($112,532). The fee for Option B, $1,438,830 is eight percent or $106,580 and the fee for Option C, $1,801,650 is six percent, $108,099.
Option C would see both the 1914 high school and parts of the 1980s additions razed and replaced. Option B would remove only the 1914 segment.
Morgan explained that the council does not have to continue with Ament who did the initial space analysis and rough facilities plan.
“It can be bid out,” he noted, adding that the council needs to pick a design before proceeding any further.
Council member Steve Lafaurie said the city needs to have a “definite plan,” and possibly seek requests for proposals about it.
Council member Ken Herington asked that the council keep in mind that the city is completing a comprehensive plan with numerous suggestions.
“All are high dollar projects,” he said, including the Community Center one and the restroom shower facility for the city park campground. In fact, he stressed that the campground project has been considered for a decade.
Morgan said a decision did not have to be imminent, that the project can continued to be discussed and remain an agenda item. The council agreed, asking that the Buildings and Grounds Committee continue reviewing the issue.
The council approved the 2006-07 audit from Gronewold, Bell, Kyhnn & Company, of Atlantic, showing city revenues increased by 26 percent, but disbursement went up by 35 percent.
The revenues reflect increases in local option sales tax funds of $71,868, water revenue increase of $98,520 because of more homes and water usage, sewer utility increase of $22,488 because of an increase number of homes, and $161,306 from Washington County Riverboat Casino allocations and a WCRF grant to the public library.
In addition, the report shows tax increment financing fund revenues increased by $48,517, attributed to additional increment financing available to pay towards development agreements formed with the city.
When it came to long-term debt, as of June 30, Kalona has $2,996,000 down from last year’s $3,163,000. The largest part of the city’s long-term debt is the 2004 bond issue (originally $1.4 million) for $1,235,000 for the new library. The remaining debt is for water and sewer projects dating from 1995 to 2003.
As for any “significant deficiencies,” the report again refers to segregation of duties, but also acknowledges that the staff is limited.
There also was a finding that minutes were not published timely as required by Iowa code. The city noted that the official publication newspapers as for all such items to be emailed for their convenience. All were emailed for timely publishing, but “if they do not have room then they set them off to the next week, when they have room.” The response was accepted.
In other business, the council:
•heard from resident Barbara Christenson who raised questions about the city spending in excess of $100,000 for municipalization legal fees. She said she had raised questions in a letter to the editor, but came to the council Monday when they made no response to her letter. She objected that increased costs appear to be a “blank check” which she said residents did not intend when they approved the move a few years ago to try to municipalize the electric utility. She also questioned a recent council agenda that had a closed session (to discuss litigation about the municipalization move) but did not note that any council action may be taken. The council approved additional expenditures when it returned to open session, but such expenses were on the agenda for the next council meeting;
•learned that the city attorney is still reviewing the proposed new building code with a view of it being a new chapter rather than rewrite (and have to publish) the entire ordinance. Publication of the chapter would be less costly;
•learned that Morgan will testify at the Iowa Utilities Board (IUB) hearings about the municipalization move next week. Hearings start Monday and may continue through Thursday, said Morgan who expects to testify Tuesday. He suggested that as many residents who could try to attend the session. For details about possible car pooling, call the city hall, 656-2310. Wellman is also one of the seven towns involved in the move and Mayor Ryan Miller will testify. No IUB decision is expected before March;
•approved a change order for the C Avenue project for a $641.22 increase for storm sewer pipe;
•approved payment number 2 to All-American Concrete of $126,051.26 for the C Avenue project; and
•approved a resolution for street lights in Valley Industrial Park Part 1.