Sioux City Council Meeting: Stormwater Rate Debate, Police Updates, and Approvals - August 24, 2026

This regular Sioux City Council meeting on August 24, 2026 covered a routine consent agenda, multiple public hearings on property transactions, an update on the building permit software transition, a presentation on the civil service hiring process, a police department report on homeless outreach, and concluded with an extended public hearing and discussion on stormwater utility rates. Mayor and council members present included Bertrand, Rayford, Scott, and Barenstein (also referred to as Bernstein).

Consent Calendar

• Items 2 through 12D were approved unanimously by the consent agenda with several items discussed individually.
• Section 8 Housing Voucher: Resolution scheduling a public hearing on revisions to the administrative plan for the Section 8 housing choice voucher program.
• Grants: Resolutions authorizing a healthy homes production grant application, accepting a MERD economic development grant for rehabilitation of 525 14th Street into 24 permanent supportive housing units, and a grant application for 115 replacement lids for downtown trash receptacles.
• Contracts and agreements: Permits for Metro Fiber Net (underground fiber at 5101 Sargent Road); RP Constructors contract for Bridgeport West Lift Station Emergency Repair (Public Works Director Tom Pingle noted six to eight more weeks of work and projected costs could be 200% more than the initial emergency contract); Amendment 3 to Master Services Agreement with Paymentus Corporation; CW Suter and Son for Art Center Water Softener; contract termination agreement with Iowa Economic Development Authority and Car Guild (Business Development Coordinator Chris Myers confirmed funds cannot be redirected once returned); Amendment 1 with Quality Striping for airfield painting (a 63% increase due to deferred runway painting); printer agreements with Access Systems, Visual Edge IT, and Century Business Products; and the Knife River Midwest contract for Hamilton Boulevard resurfacing—pulled for a separate roll call vote and passed with ayes from Bertrand, Rayford, and Scott.
• Personnel: Resolution updating the gardener job description; adding underground utility supervisor position and reclassifying four labor supervisors.
• Finance: July 2026 fund transfers and claims list approved.
• Properties: Six-month seasonal lease to Sky West Airlines for storage shed at 2403 Aviation Boulevard (donor park area); residential purchase agreement from Ada Thill for property at 3530 West 19th Street; hearing scheduled on urban renewal plan amendment for properties along Pierce and Iowa Streets (Economic Development Manager Renee Bellings noted project details will come with the development agreement); purchase orders for two Ford F-150 4x4 trucks and fire hydrants from Dakota Supply Group.
• Liquor License: A Class C retail alcohol license for "work and church" was added to the agenda at the last minute (applied that morning for a Saturday event) and approved unanimously.
• Boards and Commissions: Minutes and Board of Adjustment actions from August 11, 2026 acknowledged.

Public Hearings (Property Transactions)

• Midtown Terrace Project: Plans and specs approved. Neighborhood Services Manager Jill Waterside said bids open September 1; funding sources include National Housing Trust Fund and City HOME dollars, with a Federal Home Loan Bank forgivable loan application pending.
• Sale of vacated south half of 1904 South Russin Street to Roger and Jacqueline Edwards—approved 4-0.
• Sale of vacated East West Alley adjacent to 1213 Grandview Boulevard to Bishop Heelan Catholic Schools—approved 4-0.
• Sale of vacated portions of West 19th Street to Ada Thill for $1. Councilman Bertrand questioned the $1 price; it was explained the sale is part of a 30-year project to resolve platting errors (Burton Street was platted incorrectly for roughly 100 years). Approved 4-0.

Building Permit System Update

• Darrell Willark, Inspection Services Manager, reported on the software transition. A meeting with the software company was very positive, and the department saved several hours of training cost by doing additional work in-house.
• The Utilities Department will take over their own permitting portion; they remain tied to inspections until they are up to speed.
• Discussion covered setting submittal requirements (including potentially requiring 100% complete submissions), automated simultaneous email notifications to all responsible departments, and the topic of stamped engineer plans and contractor licensing. Willark noted that while contractor licensing could improve submission quality, he does not recommend it.

Civil Service Hiring Process Presentation

• Janelle Bertrand, Human Resources Director, presented on the civil service hiring process governed by Iowa Code Chapter 400, established in the 1930s to ensure merit-based hiring.
• The Civil Service Commission consists of five citizen volunteers appointed by the city council; they review and certify eligibility lists.
• Examinations include oral exams, performance tests, and physical agility tests; passing scores are typically 70, though rules vary.
• Discussion focused on the recent police chief hiring: 19 applicants met minimum qualifications, narrowed to 9 via screening criteria (education, experience, certifications) for a two-and-a-half-hour assessment center. The assessment panel included the recruiter, two department heads, and a West Des Moines police chief. The commission was offered the opportunity to participate but no commissioner chose to sit.
• Chapter 400 waivers allow the eligibility list to be certified by the commission to be bypassed for a maximum of one year; the council previously approved such a waiver in July 2026 for the police chief process.
• Councilman Barenstein pressed on how the 19 candidates were screened to 9 without civil service commission involvement; Bertrand and city staff explained the screening criteria are standard HR practice.

Police Department Homeless Outreach Update

• Uniform Patrol Captain Bertrand, Officer Heather Lewis, and Officer Sassman presented on ongoing homeless outreach efforts.
• Statistics shared: 37 individuals currently refuse services, of which 12 are in jail; 211 bus tickets have been purchased to support people relocating to support networks; 3 of the 37 refusals are currently in inpatient treatment.
• Officers stated homelessness encampments on city property have decreased significantly, with only one known actively on city property; private property encampments remain a challenge, and the lieutenant is working with city legal to update ordinances addressing illegal activity in parks and on parkways.
• A ride-along with Council Bluffs' homeless outreach program (HOP) was described; Council Bluffs has designated city-owned riverfront areas for tent camping and brings services to those areas.
• Officers noted Sioux City's tiered warming shelter system impressed Council Bluffs, who plan a return ride-along.
• Officers requested help with public restrooms downtown; a previous attempt failed because the waste hauler did not maintain the unit. Mayor directed downtown partners to collaborate on this.

Stormwater Rate Discussion and Public Comments

• Teresa Fitch, Assistant City Manager, presented the stormwater rate structure. A 300% increase was implemented July 1, 2026, following council approval during the February budget hearings. Three options had been considered:
  • Option 1 (300% immediate increase): Covers all CIP projects, the $40 million Bacon Creek culvert, and stormwater master plan—selected and implemented.
  • Option 2 (150% increase): Covers current CIP and Bacon Creek culvert, not master plan—staff recommendation.
  • Option 3 (30% increase): Covers only current CIP.
• Phase-in analyses: Option 1 phased would reach $17.24/month by FY31; the immediate option costs homeowners $9.09/month.
• Fitch noted over $70 million in stormwater expenses over the next five years, including $25 million in each of FY29 and FY30. Bacon Creek culvert is the largest single project ($40 million); if not funded by stormwater rates, it would require general obligation bonds funded by property taxes, reducing bonding capacity for other projects.
• An appeal process exists for incorrect property classifications; an assistance credit of up to $120/year is available to those approved for the county elderly/disabled credit (about 10 applications received). Runoff factors: 7.5 for properties under 30,000 square feet, 2.5 for those above; tiers beyond that at 1.0 and 0.25. Billing is generated from county classifications.
• A sample bill was distributed; Fitch noted the e-bill opt-out fee explanation will appear on bills once a year's supply of pre-printed paper is exhausted.

Public Comments on Stormwater Rates:

• Mike Hendrickson (Sioux City Schools): Monthly storm sewer bill rose from $4,030 to $16,300 (annual from $48,000 to $195,000—a 305% increase). Schools face $3.5 million in capital improvements, outdated HVAC systems, and an unsafe $1 million heating plant replacement; some costs may be billed to the museum tenant.
• Nancy Schulenberger (acreage owner): Called the 300% increase "misleading" and criticized lack of public education, noting Des Moines' increase was 6%. She stated her impervious surface is minimal with 50% native prairie absorbing runoff, yet she has paid 671% more than in-town neighbors for years. She questioned how prior stormwater fees were spent and estimated revenue of roughly $218,000/month from homeowners and businesses alone.
• Dan Elliott (Memorial Drive resident): Noted no city water or sewer services on his road, a dangerous ditch his family maintains, and questioned billing based on total square footage rather than runoff contribution. He requested ditch maintenance and reconsideration for acreage properties.
• John Schulenberger: Called the increase "ludicrous and totally unjustified."
• Tina Hall (Buckwalter Drive acreage): Rate rising from $134 per quarter to almost $600 per quarter ($1,600 more annually); objected to lack of notice.
• Doug Palmer (Tegra Corporation/Big Sioux Terminal and Palmer Candy): Increases of $57,500/year and $16,300/year respectively; stated they maintain their own sewer system with DNR permits and may appeal. Asked whether the rate includes a sunset.
• Chris McGowan (Siouxland Chamber of Commerce): Reported many calls from businesses, asked for comprehensive communication, slower implementation, and more time to budget.
• Scott Eldridge (business owner, 2827 Memorial Drive home): Combined increase of $8,400/year; stated he has been approached seven times in two years by out-of-town private equity firms seeking to buy his businesses. He called the increase burdensome and noted he lacks city water, sewer, and hydrants.
• Kevin Small (property owner at 2210 US Business 75): Has over 40% pervious soil; said businesses cannot mark up prices 300% and leases cannot absorb these costs. Asked for a sunset date.
• Brett Watchhorn: Demanded a definitive end date for both the rate and any property tax increase; described utility charges as extortive and said the city "clearly spends more than it takes in" and needs rebalancing.
• Karen Quirk (acreage owner near Stone Park): Supported prior speakers' concerns, noting the increase disproportionately impacts large property owners and businesses, and said this hurts the community's economic vitality.
• Don Van Rukel (4201 41st Street): Noted his building's drainage ditch has never been cleaned in 40 years, filled with fallen trees from street construction, creating flood risk for his property and Jolly Time.

Key Outcomes

• Consent agenda approved (items 2-12D), including Hamilton Boulevard resurfacing contract after a separate roll call vote.
• Liquor license for "work and church" approved.
• All property transaction hearings (Midtown Terrace, Russin Street, East West Alley, West 19th Street) approved 4-0.
• Notably voted that staff will bring back revised stormwater rate options: (1) a phased approach starting with a 100% immediate increase (not the full 300%), phasing in over five years to achieve Option 2 funding levels (Bacon Creek culvert + current CIP) by FY31; and (2) an Option 3 analysis showing the property tax increase that would be required to cover the unfunded projects. Staff was directed to prepare memos and present at a future council meeting, with materials released to the public in advance.
• Police asked to continue homeless outreach and enforcement coordination; downtown partners will be engaged on public restroom facilities.
• The next presentation on stormwater alternatives is expected at a subsequent council meeting; no formal rate change was voted on at this meeting.