Jefferson city administrator nearing retirement, council hires search firm

By Rick Morain
Jefferson Herald

The Jefferson City Council on Dec. 13 approved an agreement with search firm Midwest Municipal Consulting LLC of Ankeny to handle the recruitment of a new city administrator.

Jefferson city administrator Mike Palmer has announced his intention to retire next July after 14 years in that position. Midwest Municipal Consulting, led by Elizabeth A. Hansen, will handle the search process, from interviews of local leaders concerning the city’s needs, on through publicizing the vacancy, screening and evaluating applicants, performing background checks, narrowing the applicant group down to three to five finalists, and helping to structure an offer to the selected applicant.

The firm expects to offer a contract to the administrator selectee in March, to give the selectee’s current employer time to fill that vacancy. The selectee would step into the position immediately upon Palmer’s retirement next July.
Hansen was Palmer’s immediate predecessor as Jefferson city administrator. At that time she was Elizabeth Hailey.
Midwest Municipal Consulting LLC was hired under the agreement for a total of $10,700, which includes $1,500 for expenses. The firm will start the Jefferson search immediately. Bids from other search firms included Theia Management Consulting with a bid of $10,500 and Hinson Consulting LLC for $16,500. All three bidding firms are Iowa-based.

LOAN APPROVED FOR SEWER BOND

The council authorized and approved a loan and disbursement agreement through which the council will issue $19.75 million worth of sewer revenue bonds for improvement of the city’s wastewater plant. The project is necessary because of higher Iowa standards for sewer plant operations. The sale will be handled by Dorsey & Whitney LLP of Des Moines, the city’s financial consulting firm.
The approval followed a public hearing on the agreement, with no written or oral comments received from the public.
When the city started planning for the project two years ago, the estimated cost was $8 million to $12 million. But when the city advertised for bids several weeks ago, it received only one bid. Council action has authorized up to $21 million for the project in case additional cost items develop.

As part of the financing plan, the council approved a loan agreement with the Iowa Finance Authority for the project’s $19.75 million cost. The loan will bear an interest rate of 1.75 percent. The bonds will be redeemed over a period of 20 years, until 2043.

To fund the loan for the bonds, the council placed on first reading an ordinance to increase sewer rates in the city. The ordinance would provide a 15 percent increase in sewer rates each year for the next five years. Because the bid for the sewer plant improvements came in higher than expected, the council is proposing to boost its sewer rate increase from the previous 11 percent each year for five years to 15 percent each year for the next five years.
After the five-year period, sewer rates would increase by the inflation rate each year.

The monthly flat rate increase for the first year, starting July 1, 2023, would be $2.24, from $14.90 per month to $17.14. The price per 100 cubic feet would increase by 94 cents, from $6.29 to $7.23. The city estimates that a household of one generates about 270 cubic feet of wastewater per month, while a household of four generates an estimated 1,080 cubic feet.
In the first year a household that uses 300 cubic feet would see an increase of $5.06 per month. A household that uses 1,000 cubic feet would see an increase of $11.64 per month.
At the end of the five-year period, in 2026-27, the flat rate user charge per month would be $29.98, compared to the current $14.90. The user charge rate per 100 cubic feet would be $12.64, compared to the current $6.29.
City ordinances must be read at three successive council meetings, unless the council waives the second or third readings.

NOTABLE ACTION

• The council approved its annual five-year capital improvement plan and match funding for the Jefferson municipal airport. The plan is necessary to qualify the city for Federal Aviation Administration (FAA) funding. Proposed projects include improvements to the airport’s fuel system (including jet fuel), a new vault and electrical equipment, runway crack and joint sealing, and a new six-unit hangar.

• The council approved a write-off for uncollectable debt from 2015-16 totaling $16,194.04. The action brings the write-offs up to date, using the practice of trying to collect debt for about five years before writing it off.

• A procurement policy as it relates to Iowa Community Development Block Grant (CDBG) work was updated. The original policy dates from March 2021. The update changes some procurement limits and adds provisions regarding recycling.

• A health insurance plan for city employees was also approved. The finance committee and its broker recommended continuing with Wellmark, the current provider. Total amount of the annual premium for health insurance increases 6.2 percent, to a total premium of $563,913.

• The council approved execution of an agreement with James and Jacquelyn Andrew for a permanent public utility easement. The easement is necessary to install a short section of the new Russell Street water main replacement.

• Iowa Department of Transportation funding for replacement of Jackson Bridge on South Grimmell Road across the Raccoon River at the southwest corner of the city was accepted. The city’s street committee is working with Greene County engineer Wade Weiss to secure additional funding.

• The council approved a number of pay estimates for city projects:
    - Pay estimate No. 4 of $38,587.86 to Morris Enterprises Inc. for the Russell Street water main project.
    - Pay estimate No. 13 of $2,188 of CDBG funds for the upstairs apartment project at 200 East State.
    - Pay estimate No. 3 of $64,954 of CDBG funds for improvements to 123 North Chestnut.
    - Pay estimate No. 8 of $126,829.22 to Jensen Builders Ltd. for the Greene County animal shelter.
    - Pay estimate No. 1 of $20,235 to Westbrooke Construction Company for remodeling of the municipal swimming pool restrooms.
The council adjusted $84.10 in sewer charges for the property at 803 West Washington.

Councilmember Matt Wetrich, who is also executive director of Jefferson Chamber of Commerce/Main Street, presented the quarterly report of that organization.
The council canceled its regular council meeting of Dec. 27.

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Address: 200 N. Wilson St.
Jefferson, IA 50129

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