City of Sioux City Council Meeting - February 2 2026

Developers Getting City-Funded Infrastructure — Without Open Bidding

Council approved a $2.87 million development agreement with WB Land and Development for infrastructure at 3000 Outer Drive, but not before serious questions were raised about how the city's money will actually be spent.

Here's the situation: The city is kicking in nearly $3 million for roads, sewers, and utilities to support development of a gas station and other commercial properties. But the developer gets to control the bidding process for that work — meaning they decide who gets invited to bid, and the city doesn't require them to publicly advertise the work.

Councilmember Paul Koscuch, who's a developer himself, called out the inconsistency. "If I don't want to get beat, wouldn't I just send it to multiple companies outside of this town that probably aren't real hungry for work in Sioux City to make sure that I get low bid?" he asked. Fair question.

Mayor Scott agreed. "What assurances do we have that he's making that a public bid?" he asked city attorney Nicole Esbrook. The answer: not much. The developer is required to hold a "competitive bidding process," but there's no requirement to advertise publicly or send bid packages to all qualified contractors. They can pick and choose who gets to bid.

The mayor pushed back hard: "So you go get one bid. That's all you gotta do." Developer Will Barker responded that they'd follow the agreement — which, as written, doesn't actually require more than one bid.

This is a bigger problem than one project. Koscuch pointed out that a similar deal was already approved for the Lieber Heights project, and now it's happening again. "This is the consistency I'm asking for," he said. "Because what this council or previous council agreed to on the Lieber project set the table."

The issue came to a head when Councilmember Craig Berenstein moved to defer the item to get clarity on the bidding process and the city's total contribution (which works out to roughly 35% of the project cost — way above the typical 10-15% benchmark). The deferral failed 3-2, and the agreement passed.

Why does this matter? Because it sets a precedent. If developers can control who bids on city-funded infrastructure, there's no guarantee taxpayers are getting the best price. And if every project moving forward gets 35% in city support, that's a lot of public money with very little accountability.

City staff said they'd work with the developer to tighten up the bidding language. We'll see if that actually happens.

License Plate Readers: Privacy Concerns vs. Crime-Fighting

The council also voted 4-1 to apply for a federal JAG grant to expand the police department's Flock Safety License Plate Reader (LPR) camera system. Mayor Scott cast the lone no vote, citing privacy concerns and cost.

"My friends on the very right and my friends on the very left both have a problem with this technology," Scott said. "I can't ignore that." He also raised concerns about hacking ("anybody can get into a computer system") and the fact that the city will be on the hook for $77,000 annually after the first year.

Police Captain Ryan Bertrand defended the system, noting that every search is logged with the officer's name, the criminal code justifying the search, and the date and time. "It's a class one violation — our absolute highest violation — to misuse the system," he said.

Chief Rex Mueller emphasized that the cameras have already proven valuable in solving serious crimes, including a murder case in South Sioux City and a child trafficking case in Sioux City. "This is meaningful work we want to do," Bertrand said.

Councilmember Dan Schaner asked about auditing: "Can you pull a report of searches?" Bertrand confirmed they can, but they don't do it routinely unless there's an allegation of misuse.

The mayor's concerns aren't without merit. LPR systems do raise legitimate privacy questions, and the cost — nearly $80,000 a year — adds up. But the police made a strong case that the technology works. Whether the safeguards are strong enough is the real question.

Wastewater Plant Budget Spiraling — And No Hard Number Yet

Public Works Director Tom Pingle gave the council an update on the wastewater treatment plant project, and it's not great news. The original budget was $275 million. The latest estimate? $360-440 million.

And here's the kicker: The city won't get a guaranteed maximum price (GMP) from Kiewit, the construction manager at risk, until early June. That means the council is still flying blind on what this thing will actually cost.

Councilmember Rick Rayford didn't hold back. "We paid them $3.2 million and $22 million in engineering to give us an estimate that was gonna get to it, and they had 22 million they put into engineering," he said. "Did they make the 275 or not?"

Pingle explained that the $275 million estimate came from the engineer in 2022, not from Kiewit. Kiewit's job is to refine the design and get competitive bids, then provide a GMP. But Rayford's point stands: The city has already spent $25 million on design and estimates, and the number keeps going up.

The council was also concerned about the bidding process. Rayford asked if the city would have a chance to review the bid packages before they go out. Pingle confirmed they would, and that staff has already pushed Kiewit to break up large packages (like $100 million concrete bids) to encourage more competition.

But the real issue is this: The city's rate projections are based on the old $275 million budget. If the project comes in at $360 million or more, rates will have to go up significantly — and residents haven't been told that yet.

Berenstein asked if the city should update its rate projections now, based on the higher estimates. Pingle said they'd wait for the GMP. But Rayford pushed back: "We already know they're gonna come in at 360. I mean, I don't think it's gonna come in under 360, and neither do you."

Pingle didn't disagree.

The council has one last off-ramp: If they don't like the GMP in June, they can reject it and re-bid the project themselves. But that would delay construction by several months — and the city is already up against a deadline from the Iowa DNR and the EPA.

This is the unglamorous work that keeps basements from flooding and the Missouri River clean. But it's also a massive financial commitment that's getting more expensive by the day. Expect a lot more discussion when that GMP comes back in June.

Other Business

• Board appointments: The council interviewed Aaron Whitmer (Active Transportation Advisory Committee), Stacy Alex (Museum Board), and Nikki McLoughlin (Parking and Skywalk Board). All were appointed.
• Alley vacation: A resident asked to vacate a dead-end alley so he could build a carport. Council directed him to file an application with Planning and Zoning.
• Art Center update: Director Todd Behrens presented on the Art Center's programs, including the 100th anniversary of Grant Wood's Corner Room mural and a $5 million endowment campaign.
• Building permits: Director Daryl Bolla reported that the department has been turning around residential permits in 1-2 days. Councilmember Rayford called it "momentum."

— SUX