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Council terminates service agreement, plans to sign again

Published: Tuesday, Aug. 13, 2013 3:17 p.m. CDT • Updated: Tuesday, Aug. 13, 2013 3:18 p.m. CDT

Osceola City Council met Tuesday for the regularly scheduled meeting, and during the meeting voted to terminate an engineering services agreement with engineering company Veenstra and Kim in order for a community development block grant to pay for any costs the engineering company incurred.

Grant

The city of Osceola has a consent order from Department of Natural Resources to set up improvement projects in the city. One project is to replace the pumps at the lift station, which is an old sewer plant, as well as the main running from it to the new plant.

The city applied for the CDBG of $600,000, but did not receive it. The council went on to approve an engineering services agreement with Veenstra and Kim.

“However, we were awarded through a second review process,” said Ty Wheeler, Osceola city administrator and clerk. “We had already entered into our service agreement with V and K for this project. So, as it stands now, those costs from that service agreement are not grant-eligible.”

Costs

Wheeler went on to say even though the city of Osceola hasn’t had any costs yet for the project, Southern Iowa Council of Governments (SICOG) wants the city to use up the grant.

“SICOG has said, ‘You know, as our grant administrator, this is a fairly large CDBG grant, the largest we’ve had in the last several years. And, we want to make sure that you actually incur enough costs to use it up,’” Wheeler said.

Wheeler suggested to the city council to start over. This meant terminating the agreement and creating a new one. According to Wheeler, Veenstra and Kim is already in the process of creating a new agreement that includes the same details as before, but has new additions relating to the CDBG.

“The request I have for the council would be to go ahead and terminate the agreement with V and K that we entered into on Oct. 16,” said Wheeler, “and authorize and execute the new agreement.”

The city council unanimously passed a motion to terminate the current agreement and authorize the new one in the future. There will be no penalties for the termination.

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