T-R PHOTO BY LANA BRADSTREAM On Tuesday afternoon, construction crew members placed bricks on Center and Main streets during the streetscape project. The Marshalltown city council is discussing costs some business owners are having to cover as a result of the extensive project.

Marshalltown City Council members discussed vault removal and private utility relocation costs of the downtown streetscape project during Monday night’s meeting.

City Administrator Carol Webb said the agenda item was a follow-up to a July 14 discussion, during which city staff were asked to look into costs and budget impacts of a 50/50 cost share with property owners with utilities located in under-sidewalk vaults. Staff were asked to identify the associated costs and find out what was done about vault removal.

“It has proven difficult to get that kind of documentation after the fact,” she said, adding that staff had outlined the challenges facing property owners. “We’re looking for some direction from council on how you want us to proceed, given that particular situation. . . . Staff might recommend we provide a maximum amount, like a flat amount we would give to a property owner for relocating their utilities from the vault. That might be one option council could consider. There may be others, as well.”

Councilor Mike Ladehoff said he did a lot of thinking after the last discussion.

“For us to turn around and OK Clapsaddle Garber’s request for even half the funding, I kind of got cold feet on it,” he said. “It comes down to just a pretty simple thing, and that is we’re spending public tax dollars, and how does this help the public?”

Ladehoff said one business is gaining from the city providing some funding, but others have done what was necessary.

“After the fact, we turn around, come back and go, ‘Oh wait. We might have made a deal with Clapsaddle Garber,'” he said.

Ladehoff said the city does have contingency funds, but with the project taking a long time, the city should not peel away those funds. Otherwise, there might be a financial short.

“Plus, it sets a bad example if our department heads or city administrator or anybody says ‘No.’ That’s what the council decided. These are the rules we’re going to follow, so take your choice,'” he said. “Clapsaddle Garber could take a cheaper route on this, but they chose not to.”

According to Ladehoff, he has changed his position on the matter. He intends to vote against the city paying 50 percent of the cost of relocating private utilities, such as electrical panels or fire suppression systems. He said it would not serve a public purpose. Plus, the businesses knew three years ahead of time this was going to occur.

Seeking ‘happy medium’

Councilor Barry Kell said the public good is removing the vaults and future liability.

“I think that’s clear to everyone, and that’s the city’s preference to not have to dig up sidewalks or streets in the future to address something,” he said.

Kell said the council unanimously decided on June 12, 2023 to remove the vaults and tell property owners it was their responsibility to move the utilities. He watched the video of the meeting and said the dollar amount was not shared, but it was obvious the cost was going to be expensive.

“From my perspective, finding out about the reality of what some of these expenses are two years after making the decision – I think that’s exactly why we’re here,” Kell said, adding that the council needs to review matters and ensure the city’s intentions align with project realities.

He said he appreciates impacted business owners coming forward, telling the city the situation is not right and seeking better solutions.

Regarding contingency funds, Kell said it is an opportunity for a council-approved amount to come from local option sales taxes. That way, it would not impact the project in the future, because the city will encounter more of the same issues as construction moves west on Main Street.

“I don’t think this is a closed topic,” he said. “I like the right to revisit this.”

Councilor Garry Thompson said he is in the same camp as Kell. During the 2023 meeting, money was not discussed.

“[It was] never my intent to put any financial harm on business owners,” Thompson said. “Hindsight is 20/20. We made a mistake that night, because the business owners didn’t ask to have the street redone, the sidewalks torn up and the vaults removed. Everything was fine. I feel we should do something.”

Thompson asked if a specific percentage is being considered. Webb told him no, but the city is considering a maximum reimbursement based on receipts a business provides. Using $10,000 as an example, she said if a business has receipts totaling that, the city could reimburse them for some project costs. Webb stressed that she was not sure if $10,000 was the right number, but it is the methodology being discussed.

Ladehoff said some of the impacted business owners, such as Zamora’s, have already completed the work but did not have the necessary receipts. Webb said that is a problem, as owners might not have documented everything because they were not aware of possible reimbursement. She added the owners could have also had friends complete the work.

As a former business owner, Thompson said he did not understand how some did not keep receipts. If owners had friends complete the work, that would mean unlicensed contractors were doing contract work, he added.

“I got to believe there’s a happy medium here, that we can somehow split the difference if we’re not willing to pay for all of it,” Thompson said.

In the agenda document, city staff wrote four property owners are impacted by the council’s vault policy — Zamora’s, BDH Technologies building, the Bowman building and Deimerly.

The owners of BDH Technologies had all of the work completed by Hardon’s before the July 14 Marshalltown City Council meeting. Hardon’s has not sent a bill to the owners yet.

The owner of the Bowman building hired Blackhawk Sprinklers in September 2023 to relocate the system and the property owners have paid two invoices thus far.

The streetscape construction project will reach the Deimerly building in 2026. The owner has not yet arranged for the work to be done.

The council did approve a 50/50 split up to $25,000 by a 5-2 tally. Ladehoff and Councilor Melisa Fonseca voted against it.

——–

Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com.