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HomeMy WebLinkAbout06.01.2026_Council_Regular_Session_MinutesDocusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D June 1, 2026 The City Council of the City of Waterloo, Iowa, met in Regular Session at Harold E. Getty Council Chambers, Waterloo, Iowa, at 5:30 PM, on Monday, June 1, 2026. Pre -Meeting Items Roll Call. Mayor Dave Boesen in the Chair. Mr. Schmitt, Mr. Morrow, Ms. Berry, Mr. Salamanca, Mr. Martin and Mr. Simon. Ms. Creighton -Smith was absent. Prayer or Moment of Silence. Pledge of Allegiance, Kelley Felchle, City Clerk. Approval of Agenda as proposed or amended. Simon/Martin that the agenda as amended, by removing Resolution #11, be approved. Voice vote -Ayes: Six. Motion carried. Approval of Minutes of the May 18, 2026, Council Regular Session as proposed or amended. that the minutes of the May 18, 2026, Regular Council Session be approved as presented. Voice vote -Ayes: Six. Motion carried. CONSENT AGENDA Simon/Salamanca that the following items on the consent agenda be received and placed on file, including the payment of bills for May 26, 2026, in the amount of $20,847,501.86and June 1, 2026, in the amount of $3,911,417.45, be received and placed on file. Roll Call vote -Ayes: Six. Motion carried. Bills Payment, Finance Committee Invoice Summary Report, a copy of which is on file in the office of the City Clerk. Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-292. Resolution approving the request of Dan Holschlag for a waiver for a concrete driveway, located at 1103 Upton Avenue (approach on Aladdin Street), with the elimination of the sidewalk section due to inability to meet grade requirements. Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-293. Page 1 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D Resolution approving preliminary plans, specifications, form of contract, etc., setting date of bid opening as June 25, 2026, and date of public hearing as July 20, 2026, in conjunction with Asbestos Abatement Services, Contract AB-2026-06-01 P (1442 Sycamore Street, former Rath buildings), and instruct the City Clerk to publish notice. Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-294. Resolution setting the date of public hearing as July 6, 2026, to approve the final selection of route and authorizing to acquire or condemn necessary property for right-of-way, permanent easements, and temporary easements related to the Katoski Drive/Huntington Road reconstruction, generally located east and south of 1350 Katoski Drive, extending to the west city limits line, and instruct the City Clerk to publish public notice. Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-295. Resolution approving award of hotel/motel tax council discretionary funds to the Americans for Independent Living, in the amount of $20,000.00, for the Field of Honor Project, commemorating America's 250th Anniversary and honoring veterans, active military personnel, and those who have served our nation. Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-296. Motion to approve Change Order No. 01 with K and W Electric, Inc., of lump sum modification, for a net increase of $38,822.50, in conjunction with Broadway Traffic Adaptive Project, Contract No. 785, and authorizing the Mayor and City Clerk to execute said document. Communication from the Street Department on the notice of the conclusion of employment of Haris Tricic, Equipment Operator II, effective May 1, 2026, with recommendation of approval of payout of $4,279.22 for unused benefits. Motion to receive and file Leisure Services Commission Board minutes of April 14, 2026. Motion to receive and file Airport Board minutes of April 13, 2026. Sara Varda, Board/Commission: Civil Service Commission, Expiration Date: June 1, 2032, New appointment. Emily Hanson, Board/Commission: Waterloo Convention and Visitors Bureau, Expiration Date: June 1, 2029, New appointment. Page 2 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D Liquor Licenses American Legion, 728 Commercial Street, Class C w/Sunday Sales, (Ownership Update) Exp:06/14/2026. CVS Pharmacy 8544, 1825 E. San Marnan Drive, Class E w/Sunday Sales (Renewal) Exp:05/31 /2027. Edo's Sports Bar, 110 E. 11th Street, Class C w/Sunday Sales, (Renewal) Exp:05/07/2027. Fraternal Order of Eagles No. 764, 202E 1st Street Class F w/Sunday Sales (Ownership Update) Exp:07/14/2026. Hickory House, 315 Park Road, Class C w/Sunday Sales (Ownership Updates) Exp:05/23/2027. Metro Mart 1, 3201 W. 4th Street, Class B w/Sunday Sales (Renewal) Exp:07/06/2027. Metro Mart 4, 2332 Falls Avenue, Class E w/Sunday Sales (Renewal) Exp:06/30/2027. National Cigar Store/Sycamore Convenience, 617-619 Sycamore Street, Class E w/Sunday Sales, (Renewal) Exp:03/11/2027. Walgreens 10855, 1850 Logan Avenue, Class E w/ Sunday Sales (Renewal) Exp:06/16/2027. Wal-Mart Supercenter 1496, 1335 Flammang Drive, Class E w/Sunday Sales (Premises Update) Exp:09/30/2026. Cigarette/Tobacco/Nicotine/Vapor Permits BJ's Sports Bar and Billiards, 110 IDA Street (Retail Tobacco) Club Ambassador, 313 W. 5th Street (Machine) K-ZAR, 1761 Independence Avenue, (Retail Tobacco) Logan Avenue Convenience Store, 735 Logan Avenue (Retail Tobacco) Logan Avenue Convenience Store, 735 Logan Avenue (Device Permit) Ray's Supermarket, 1975 Franklin Street (Retail Tobacco) Smoke.O.S., 1509 Flammang Drive (Retail Tobacco) Walgreens No. 10855, 1850 Logan Avenue (Retail Permit) Walgreens No. 3590, 3910 University Avenue (Retail Permit) RESOLUTIONS Resolution approving an Employment Agreement with Rob Duncan for the position of Police Chief, and authorizing the Mayor to execute said document. Schmitt/Simon Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-297. Resolution approving a Cost Optimization Engagement Agreement with Merchant Cost Consulting LLC, for analyzing merchant services accounts and provide comprehensive cost optimization, advisory, audit, negotiation, and vendor management services across our merchant services, and authorizing the Mayor to execute said document. Schmitt/Simon Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-298. Page 3 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D Mr. Morrow requested an overview of the item. Bridgett Wood, Finance Director, provided an explanation of the agreement. Resolution approving an Educational Services Contract with Grout Museum, Inc., in the amount of $625,000.00, to provide educational services and enhance the quality of life for the residents of Waterloo, Iowa, from July 1, 2026 - June 30, 2027, and authorizing the Mayor to execute said document. Schmitt/Simon Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-299. Mr. Salamanca requested an overview of the agreement. Bridgett Wood, Finance Director, explained that the purpose of the agreement is to define the public purpose of funding the Grout Musueum. Resolution approving award of Parking Operations and Management Services RFP to PCI Municipal Services LLC, and approving an agreement for parking operations management with said company with a start date of July 1, 2026, with a five year term and renewal options as listed in said agreement, and authorizing Mayor and City Clerk to execute said document. Berry/Morrow Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-300. Mr. Morrow thanked the Mayor for allowing him to participate in the parking discussion and shared some benefits of the new agreement. Mayor Boesen commented that we will be getting more services than we have been receiving. Mr. Schmitt questioned if the parking conversation is dead or would we have an opportunity to continue conversations. Mayor Boesen commented that we can always revisit it, but there is not a current conversation that he is aware of. Resolution approving a Second Amendment and Collateral Assignment of the Development Agreement with BKKS Holdings, LLC and Farmers State Bank, and authorizing the Mayor to execute said document. Berry/Morrow Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-301. Resolution approving First Amendment to the Development Agreement with Perry and Michelle Gamblin, originally executed June 3, 2024, extending the timeline by twelve months for the construction of a minimum twenty -four -foot by twenty -four -foot accessory structure, and authorizing the Mayor and City Clerk to execute said document. Page 4 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D Berry/Morrow Mr. Salamanca requested an update on the need for the extension. Noel Anderson, Community Planning and Development Director, provided an overview of the agenda item. Ms. Berry explained that she had a conversation with the homeowner today and shared that they really need this garage to safely store their items. She commented that they are in the audience and are willing to discuss their request. Mr. and Mrs. Gamblin, 127 Conger, explained that the purpose of the project is to create a larger garage for their property for necessary storage. He explained that they currently have to park on the street and want to safely store them in a garage. They explained why there was a delay in the original timeline. Mr. Gamblin asked if they could purchase the property outright at a low price in case they are not able to complete the development in the new timeline, should it be approved. Mayor Boesen shared that they would need to discuss this with Noel Anderson, and if an agreement is reached, we would need to rescind this development agreement and present a new one for the sale and conveyance of the lot. Martin/Morrow to table indefinitely. Roll Call vote -Ayes: Six. Motion carried. Resolution approving a Development and Minimum Assessment Agreement with Black River Bells, LLC, for the construction of an approximately 2,000 square -foot commercial building with a minimum assessed value of $1,045,000.00, including CURA tax abatement, located at 2065 Logan Avenue, and authorizing the Mayor and City Clerk to execute said document. Salamanca/Schmitt Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-302. Resolution approving a Development and Minimum Assessment Agreement with Highlands Enterprises, LLC, for the renovation of property located at 4000 University, including fifteen years at fifty percent rebates and a minimum assessed value of $5,500,000.00, and authorizing the Mayor and City Clerk to execute said documents. Salamanca/Schmitt Roll Call vote -Ayes: Four. Nays: Two (Berry, Simon). Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-303. Forest Dillavou, 1725 Huntington Road, shared that the building is already gutted and doesn't understand why the council is needed as the department heads are making decisions. Noel Anderson, Community Planning and Development Director, provided an overview of the item. Chris Williams, Highlands Enterprises, LLC, 12911 W. 105th Terrace, Overland Park, KS, shared that they are in the process of updating the former Hy-Vee and said that the V.A. is Page 5 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D occupying a portion of the building to expand their services to the local veterans with a clinic. They are currently cleaning out the remaining 44,000 vacant square feet and have been dealing with a problem with the waterline. He described the various issues they have been working through and explained that there have been four waterline breaks in the last five months and each time the clinic must shut down, and that part of this is to help offset some of those unanticipated costs. Mr. Salamanca requested an update of what is happening at the building currently. Chris Williams shared that they are working to clean out the coolers left behind by Hy-Vee and clear everything out because there is no likely any use for those with future tenants. Mr. Salamanca clarified that what the developer is doing now is separate from what people are assuming is happening. Chris Williams shared that they are in the demolition phase of the project. Mr. Martin asked if there were potential tenants they have been talking to. Chris Williams confirmed and further explained that they are not currently in Waterloo, so this would be a new location for them. Ms. Berry asked if Mr. Williams could identify who that potential client might be. He shared that he would not be able to do so at this time. Resolution approving a Contract with Midwest Cleaning Pros, of Waverly, Iowa, in the amount of $103,848.00 annually, in conjunction with the cleaning of City Hall, Carnegie Annex, Waterloo Police Training Center, Veteran's Memorial Hall, and Parking Ramp attached to the Waterloo Building, and authorizing the Mayor and City Clerk to execute said document. Salamanca/Schmitt Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-304. Resolution approving an Acquisition Contract and accepting a deed to sell real property to the City of Waterloo, from Jonathan Swarts a/k/a Jonathon Swartz, in the amount of $60,000.00, for property located at 1708 and 1716 Lafayette Street and the lot between, and authorizing the Mayor and City Clerk to execute said documents. Morrow/Schmitt Roll Call vote -Ayes: One. Nays: Five (Morrow, Berry, Salamanca, Martin, Simon). Motion failed. Resolution No. 2026-305. Mr. Martin questioned who would be responsible for the abatement and demolition. Noel Anderson, Community Planning and Development Director, commented that the city would be responsible and provided the benefit the city would see with this project. Mr. Simon requested clarification of the properties and questioned the return value to the city. Page 6 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D Noel Anderson provided clarification. Mr. Schmitt commented that he would like to see something new done to this area. Mr. Salamanca asked why there was such a gap between the value of what Beacon shows and what we are asking. Noel Anderson provided an explanation. Forest Dillavou, 1725 Huntington Road, commented that his problem with this is that these properties are located in TIF districts, and it does nothing to help the community. Megan Butler, 818 Clough Street, commented that we should be helping people get rid of properties they have inherited and where they had nothing to do with the dilapidation. Noel Anderson commented on the TIF district. Mr. Morrow asked if there was an expectation of when this might be developed. Noel Anderson said that there are always interested parties, and it just takes time to get through the process. Mr. Simon commented that he is not opposed to buying a property from an individual, but his concern is the slow process of the 657A process for surrounding properties. Resolution approving a Permanent Easement Agreement with Love's Travel & Country Stores, Inc., to serve as a drainage easement, in conjunction with the FY 2024 Sergeant Road Trail Repairs, and authorizing Mayor and City Clerk to execute said document. This item was removed by amendment. Resolution approving an Exchange Agreement with Peterson Contractors, Inc., of Reinbeck, Iowa, to allow the exchange of topsoil for fill material in the WARP subdivision, and authorizing the Mayor to execute said document. Morrow/Schmitt Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-306. Mr. Morrow provided an overview of his understanding of the agreement and requested clarification if the city is getting a 2-1 ratio of topsoil. Mr. Knutson shared that it was a large stockpile of topsoil, but explained that it was actually mostly sand with very little value. He explained that we would be paying trucking costs to bring that in and this would save the City from those costs. Mr. Morrow requested clarificaton that the topsoil is not quality topsoil. Mr. Knutson confirmed that it is not. Resolution approving Supplemental Agreement No. 1 with AECOM, of Waterloo, Iowa, in the Page 7 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D amount of $54,200.00, in conjunction with the FY 2025 Biennial Bridge Review Program, and authorizing the Mayor to execute said document. Morrow/Schmitt Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-307. Resolution approving a Cooperative Agreement with the Iowa Department of Transportation, in the amount of $710,000.00, in conjunction with the FY 2027 Edwards Street Stormwater Lift Station Upgrades, Contract No. 1158, and authorizing the Mayor and City Clerk to execute said document. Schmitt/Salamanca Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-308. Mr. Salamanca requested an overview of the agenda item. Jamie Knutson, City Engineer, provided an overview of the project and the funding agreement. Resolution approving Professional Services Agreement with Strand Associates, Inc., of Madison, Wisconsin, in an amount not to exceed $128,000.00, for Design Services, Bidding - Related Services, and Construction -Related Services, in conjunction with final Effluent Building Electrical Updates at the Wastewater Treatment Plant, and authorizing the Mayor to execute said documents. Schmitt/Salamanca Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-309. Resolution approving a Construction -Related Services Agreement with AECOM Technical Services, Inc., of Waterloo, Iowa, in the amount of $385,800.00, in conjunction with the Rehabilitate Runway 18/36 Outside of Runway 12/30 Safety Area, FAA AIP Project No. 3-19- 0094-060, and authorizing the Mayor to execute said document. Morrow/Simon Roll Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-310. Resolution approving a Professional Services Agreement with HDR Engineering, Inc., of Cedar Ra•ds, Iowa, in the amount of $13,525.00, for a concept statement in conjunction with the Ridgeway Avenue and Hammond Avenue Roundabout, and authorizing the Mayor and City Clerk to execute said document. Morrow/Simon Call vote -Ayes: Six. Motion carried. Resolution adopted and upon approval by Mayor assigned No. 2026-311. Mr. Morrow questioned if we have the expertise in-house to do this work. Safia Elahi, Traffic Operations Director, shared that there are no full-time staff currently available to allocate to this project. She further shared that there are three grants for this Page 8 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D project, so there is a timeline. ORDINANCES An ordinance amending the City of Waterloo Traffic Code by amending subsection (88) Kimball Avenue, of section 543, thru streets. Martin/Salamanca to receive, file, consider, and pass for the first time an ordinance amending the City of Waterloo Code of Ordinances Section 543 (88). Roll Call vote -Ayes: Six. Motion carried. Safia Elahi, Traffic Operations Director, provided an overview of the ordinance change for both items 1 and 2. Martin/Salamanca to suspend the rules. Roll Call vote -Ayes: Six. Motion carried. Martin/Salamanca to consider and pass for the second and third times and adopt said ordinance. Roll Call vote - Ayes: Six. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5838. An ordinance amending the City of Waterloo Traffic Code by amending subsection (29) Kimball Avenue and Mitchell Avenue, of section 544 All -way stop intersection. Morrow/Schmitt to receive, file, consider, and pass for the first time an ordinance amending the City of Waterloo Code of Ordinances Section 544 (29). Roll Call vote -Ayes: Six. Motion carried. Mike Henning, 138 Sidehill Drive, commented that he does not see a need for a stop sign on Kimball, but said there is a need for better safety at Shaulis and Kimball. Safia Elahi, Traffic Operations Director, provided an overview of the traffic studies that were done at this location and the results showed that a stop sign is the quickest way to address the safety issue and noted that they will continue to work on a long-term solution. Eileen McFee, 204 Lichty, explained that she was involved in an accident there a few months ago. She would like to see continuity at all the intersections, including Shaulis. She provided a number of suggestions. Barbara Henning, 138 Sidehill Drive, questioned when the traffic study was conducted. Ms. Berry questioned if lights on the stop sign would help make people slow down. Safia Elahi explained that the crash data shows people are stopping and that some drivers assumed it was a 4-way stop, others misjudged the gap between cars after stopping and traveling forward. Of the eleven crashes, only one involved someone running the stop sign. Mr. Morrow commented that there were extensive discussions on this matter at his ward meeting and asked if we could consider making changes in steps and if there will be another Page 9 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D traffic study after the stop signs are in place. Mr. Simon asked if we could install signs for drivers who do not need to stop warning them to watch for turning traffic. Mr. Schmitt commented that he travels through this intersection on a daily basis and noted that the dip in the road does inhibit drivers' ability to see what is ahead. He concurred with Mr. Simon about adding signage. Safia Elahi commented that after we make changes to traffic flow, we follow up with another study to see if any changes need to be made. Ms. Berry questioned if the study showed the age of the drivers involved in the accidents. Safia Elahi explained the study included all ages and all times of day. Mayor Boesen shared from experience that crossing Kimball is nearly impossible at certain times of the day. Morrow/Schmitt to suspend the rules. Roll Call vote -Ayes: Six. Motion carried. Morrow/Schmitt to consider and pass for the second and third times and adopt said ordinance. Roll Call vote -Ayes: Six. Motion carried. Ordinance adopted and upon approval by Mayor assigned No. 5839. PUBLIC COMMENTS Mayor Boesen provided comments on the data center project process and invited all interested parties to attend the planning and zoning meetings and express their opinions, either positive or negative. He further read the Rules for Public Comments. Andrew Glasrud, 1121 Midland / Karla Elfritz, 2518 Morrow Street / Judy Miller, At Large Board Member of Main Street Waterloo, 512 Mulberry Street / Blake Smith, 221 Gilbert Street / Jim O'Reagan, 607 Sycamore / Kyle Squires, 625 Sheridan Road / Don Styles 1657 Golden Valley / Jonathan Grieder, 2719 Edgemont Avenue / LA Jefferson, Jr., 733 1/2 W. 3rd Street / Andrew Ott, 344 Maryland / Megan Butler, 818 Clough Street / Jay Groute, 2229 Edgemont Ave. / Aaron Stacey Roberts, 411 Almond / Melissa Hind, 604 Kirkwood / Kendall Fuller, 2303 Olive Street, Cedar Falls / Melissa Denning, 1007 Baltimore Street / Elsie Kent, 820 Knoll Avenue / Phyllis Osterling, 4342 Ansborough / Samuel Gomez, 2122 W. 7th Street / Chrisita Young, 1821 E. 4th Street / Carol Tjaden, 147 Summit Avenue / Amy Ellingson, 810 Conger Street /Blair Boynton, 6236 Kimball / Marla Fagen, 1146 Ackermant / Renae Carson, 1108 Vine Street Simon/Martin to close public comment. Voice vote -Ayes: Six. Motion carried. Mr. Morrow read a prepared statement regarding the cost of moving City Hall to a new location. Mr. Schmitt commented that he and many other council members were caught off guard and unaware of the data center until a short time ago. He shared that there would be future Page 10 of 11 Docusign Envelope ID: 0C676AAC-5407-8CF8-808C-E4E04747B93D conversations and meetings to allow the public to express their opinions. He further spoke about the dilapidated housing and buildings all over the city, and said he will be making an effort to make changes and improve our city. Ms. Berry shared that she appreciates all the comments made tonight and commented that she too knows very little about this data center and asked the public to show grace and understanding as the council learns more about the project. Mr. Simon thanked those people who had reached out to him and said he appreciated the information he was getting so he could make educated decisions. Mayor Boesen also thanked everyone for their opinions and encouraged everyone to attend the planning and zoning meetings. Simon/Martin to close public comments. Voice vote -Ayes: Six. Motion carried. ADJOURNMENT Schmitt/Simon that the council adjourn at 7:53 p.m. Voice vote -Ayes: Six. Motion carried. Signed by: f ‘..—F6OBCOFFBC6IAB... Kelley Felchle City Clerk Page 11 of 11