Union Drive reconstruction approved for $4.2M, but it could be vetoed

Newton residents living along Union Drive may finally get their wish after city council approved a more than $4.2 million bid to completely reconstruct the aged roadway. But mayor Mike Hansen disagreed with the price, and at the June 6 council meeting suggested he might veto the action, pending further information.

“Obviously, I don’t have a vote,” Hansen said. “But I do have other measures I may consider.”

Hansen disagreed with some council members who felt the bid would only get more expensive the longer the city waited. The mayor claimed construction products are trending downward. He also noted there were no local contractors who bid on the project, which could lower the overall price.

The winning bidder, Reilly Construction Co., Inc. of Ossian, is from northeast Iowa, and Hansen argued the reason why local companies didn’t bid is because they have other projects. Newton Public Works Director Jody Rhone later said he was surprised some local contractors did not bid on the project.

Other bidding companies — Absolute Concrete Construction, Inc. bid more than $4.25 million and Hawkeye Paving Corporation bid more than $5.2 million — were from Slater and Davenport, respectively. Of the three bidders, the contractor from Slater is the closest geographically, being 51 miles away from Newton.

Engineers originally estimated the construction costs of the Union Drive project to be almost $3.4 million. The 33 percent increase in the total cost of the project “is horrendous,” Hansen said. He recommended council members seriously consider the possibility of rebidding the project.

“I’m of the opinion we should rebid this. Maybe some local contractors may be interested as their work goes away. Almost a 33 percent increase in cost of this project is alarming,” Hansen said. “If we did not see any trend of other construction products going the other way, then I think I would join you.”

Newton City Council awarded the contract in a 4-1 vote. Council member Craig Trotter was absent from the meeting and could not cast a vote.

CITIZENS SAY RECONSTRUCTION IS NEEDED

Residents said at the public hearing the reconstruction is long overdue, and they encouraged council to vote in favor of the bid. The original pavement was constructed as Iowa Highway 14 around 1942, and a majority of that pavement remains in place beneath an asphalt overlay in 1983.

Skylar Smith said everyone knows the condition of the road, calling it dangerous. If the city waits any longer, it is going to get more expensive, he said. Tracy Kleinschrodt lives across the street from the nearby Union Cemetery, and she, too, said it is a “much-needed” project.

“My drive washes out and down the road, and the mail truck can’t get a long our curve because it’s all washed out and gets stuck in it. So there are times we don’t get our mail,” Kleinschrodt said. “Speeders, they go flying by 45-55 mph. Maybe need something to slow them down.”

If anyone has driven down the street lately should notice the bumps, Kleinschrodtadded. John Payne said the road is way overdue and suggested a reconstruction project years ago got passed over for a road near “the Iowa Speedway area.” Hansen later told Payne that was false information.

“But it’s way overdue,” Payne said. “It needs to be passed.”

Other council members felt the same way. Council member Evelyn George agreed the conditions of the road are “so bad” and that the project has been discussed for a long time. It is an expensive project, she noted. George affirmed the project would not get less expensive.

Council member Randy Ervin drove through Union Drive a few days before the meeting and found it ridden with potholes. However, Ervin later voted against the bid. Ervin later told Newton News he worried about the tax costs to the community, and he felt forcing the project through was not the right thing to do.

Ervin also worried passing the project would raise the tax levy, an action that would potentially upset several taxpayers in Newton.

“You’re really taking funds from the future to guarantee that this happens,” Ervin said. “Not that I’m against the project, because I’m not. I would love to do it. But not at that cost. When you start talking about raising tax levies, any time you raise the tax levy you have to be really considerate of where you’re going.”

CITY LAYS OUT OPTIONS FOR COUNCIL

In July 2020, the council approved a resolution authorizing the City of Newton to enter into a funding agreement administered by the Iowa Department of Transportation for the reconstruction of Union Drive. The agreement allows the city to use $2.8 million in federal funds to pay for a portion of the project.

City staff submitted plans of the project to the IDOT, which placed the project out for bid in mid-May 2022. With the lowest bid set at $4.2 million, staff developed five options in which the city could pay for the project.

The council ultimately settled on the fifth option to accept the bid and reallocate $950,000 of 2022A bonds towards the project. Those bonds were proceeds dedicated to Arbor Estates Phase 2. The city said this option does not undermine future housing development, assumed to resume when the economy heals.

However, as a result of this reallocation, the council will need to bond additionally for housing in the near future.

Other options included: to reject all bids and ask IDOT to rebid the project, reject all bids and wait for the economy to respond, accept low bid and use ARPA funds designated to Arbor Estates Phase 2 or accept low bid and use ARPA funds designated for the West Fourth Street South and Road Use Tax fund balance.

Newton City Administrator Matt Muckler said what he is hearing from residents and from council members through goal setting sessions and their approval of the capital improvement plan is that the city needs to fix its streets. There is an expectation to use general fund bonding money for future street projects.

Even though the mayor already hinted he might veto the action, Hansen said if council wishes to fund the project he would strongly recommend the fifth option.

“I want the general public to know I’m not against this project. I’m against the costs,” Hansen said. “…If it gets delayed and gets rebid, it doesn’t mean it gets taken off the table. It just means we want to take an opportunity to see if there is enough of a possibility if a better price.”

Council member Mark Hallam ended the discussion by saying he does not like the idea of paying one-third more than what the city engineer estimated.

“What I like even less is all the uncertainties involved with delaying this Union Drive reconstruction project,” Hallam said.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com