Watertown City Council Delays Fifth Avenue Sidewalk Assessments After Residents Raise Concerns Over Costs, Damage and Contractor Work

Northeast Radio SD News – Watertown, SD - A room of Fifth Avenue residents confronted the Watertown City Council Monday night over sidewalk assessments tied to the 2026 neighborhood street reconstruction project, citing unexpected cost increases, workmanship concerns, and damage to private property. City officials acknowledged widespread problems with the contractor and signaled the city may defer action on the assessments until those issues are addressed.

The resolution before the council would levy sidewalk assessments for properties along Fifth Avenue and adjoining streets. But City Manager Alan Stager opened the discussion with a blunt assessment of the contractor’s performance.

“I am very disappointed with the performance of this contractor,” Stager said. “We have had an extreme amount of staff time invested this year in managing issues with this contractor and subcontractors.”

Stager said the city has paid $1.7 million of the $2.9 million contract to date, giving the city “leverage financially” to ensure the project is completed correctly.

“Before we sign off on this project, we will walk your neighborhood with you,” he told residents. “We will ensure that issues have either been resolved to your satisfaction or we might have to agree to alternative actions.”

City Engineer: Assessments based on final quantities, some higher and some lower

City Engineer Justin Petersen said the sidewalk assessment amounts were originally estimated in the spring and have now been updated to reflect the final installed quantities.

“Most of them stayed the same. There were a few that increased, and there were also a few that decreased,” Petersen said.

Residents will have 30 days to pay the assessment once it is approved; unpaid balances will be added to the property tax rolls over 10 years.

Public Hearing: Residents describe damage, cost increases, and poor workmanship

The public hearing lasted nearly an hour as residents detailed concerns ranging from unexpected assessment increases to cracked sidewalks, damaged driveways, debris buried under topsoil, and workmanship they described as “crappy,” “unsightly,” and “not up to standard.”

Amy Obenauer: Cement bid came in lower — why didn’t my assessment drop?

Amy Obenauer, of 425 2nd Street NW, said her initial estimate was based on higher cement prices, and she expected her assessment to decrease after learning the bid came in lower.

“Are you going to be changing the amount we have to pay since the price they bid was lower?” she asked.

Petersen confirmed the final assessment reflects the lower bid price.

“It’s down below $10 per linear foot,” he said.

Obenauer said she saw “very little movement” between the first and second assessments and wanted reassurance the numbers were updated.

Selena Urban: Assessment jumped from $300 to over $700

Selena Urban, of 205 Fifth Avenue NE, said her estimate more than doubled.

“The first estimate was about $300… the most recent was over $700,” Urban said. “I was never given the opportunity to review my own sidewalk.”

Urban said some sidewalk sections were replaced during ADA ramp work 10–12 years ago and questioned why she was being charged for sections the city previously installed.

She also described damage to her private walkway and driveway during construction.

“They dinged up our driveway, they dinged up the walkway… the quality is not to standard,” she said. “I don’t feel like I should be responsible for paying for things that were ill done.”

Urban asked for a map showing exactly which sidewalk sections were included in her assessment.

Brenda Owens: Damage to historic sidewalk and reinforced driveway

Brenda Owens, of 501 North Maple, said her assessment increased from 155 linear feet to 174, and she was told the city added sidewalk along Maple Street that was not originally anticipated.

Owens said the contractor damaged her historic sidewalk and her reinforced concrete driveway.

“I wasn’t given back what I already paid for,” Owens said. “I expect to be whole — not just pieced in here and there.”

She also described gaps between the new sidewalk and the foundation of her rental property at 15 Fifth Avenue, and said she was told to “just put spray foam in it.”

“That’s not acceptable,” Owens said. “I would have to hire a contractor to fix that.”

Rita Ralph: Driveway rebar missing, debris left in yard, seed sprayed onto house

Rita Ralph, of 16 Fifth Avenue NE, said her reinforced driveway was cut and patched without rebar.

“There is no rebar in that three‑foot piece,” Ralph said. “If that thing cracks, we’re going to wind up having to replace it ourselves.”

She also described debris left in her yard — clay pipe fragments, roots, branches, glass — and said she had to clean it herself.

“They sprayed my rocks, my plants, my pots, halfway up my house,” Ralph said. “I had to clean it off myself.”

Mayor Ried Holien reminded residents that some issues were not directly tied to sidewalk assessments but would be addressed later in the meeting.

Council considers deferring the assessment vote

After hearing testimony, Mayor Holien said he was inclined to defer action on the sidewalk assessments.

“It’s hard to approve this tonight when we do not know for certain if the concerns raised are going to be addressed,” Holien said.

Stager confirmed the city must finalize assessments by November 1, leaving time for a deferral.

Council members express frustration with contractor and assessment policy

Councilman Peters: “I cannot understand the logic”

Councilman Peters said he struggled with the idea of charging residents for sidewalks the city chose to replace.

“We’re ripping out current sidewalks, replacing them with new ones, and asking our citizens to pay for those,” Peters said. “I just cannot understand the logic behind that.”

He said the city should explore covering more of the cost.

Councilman Allen: City paying most of the project

Councilman Allen noted the sidewalk assessments total $27,000 on a $2.9 million project.

“The sidewalk assessment is a very minor portion,” Allen said. “I certainly would entertain looking at the city picking up a greater share.”

Councilman Jurrens: “Absolute stupidity” from contractor

Councilman Lynn Jurrens said his opinion shifted dramatically after hearing residents’ testimony.

“It’s amazing how the tide can turn,” Jurrens said. “The absolute stupidity they have used in their decision‑making on this project.”

He praised Stager’s commitment to resolving issues.

“When he says things are going to get done differently, they’re probably going to be done differently.”

Councilman Heuer and Councilman Schutte also expressed support for deferring action and addressing resident concerns.

The council did not vote on the assessment resolution Monday night. A formal motion to defer was approved unanimously.

City staff will continue updating the punch list, meeting with residents, and determining which damages and workmanship issues fall under the contractor’s responsibility.