Bee Branch Stormwater Pumping Station Project (Phase 5 of the BeeCity of Dubuque
City Council Meeting
Consent Items # 06.
Copyrighted
December 5, 2022
ITEM TITLE: Bee Branch Stormwater Pumping Station Project (Phase 5 of the Bee
Branch Watershed Flood Mitigation Project) U.S. Economic
Development Administration (EDA) Grant Agreement Amendment
Request
SUMMARY: City Manager recommending City Council adopt a resolution reasserting
the City's support for the Bee Branch Stormwater Pumping Project and
authorizing the Mayor to sign and send the attached letter to the EDA
seeking an amendment to the Grant Agreement that would adjust the
schedule in order to ensure the City's use of the $2,500,000 in grant
funding for the Bee Branch Stormwater Pumping Project.
RESOLUTION Approving a request to amend the US Economic
Development Administration Disaster Relief Opportunity Grant
Agreement and pledging continued support for the City of Dubuque 16th
Street Detention Basin Flood Gates Project
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Bee Branch Stormwater Pumping Station EDA Grant City Manager Memo
Extension Request-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Letter Supporting Documentation
THE CITY
DUOF
B TEE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
Dubuque
All -America City
IN
2007.2012.2013
2017*2019
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bee Branch Stormwater Pumping Station Project (Phase 5 of the Bee
Branch Watershed Flood Mitigation Project)
EDA Grant Agreement Amendment Request
DATE: November 30, 2022
City Engineer Gus Psihoyos is recommending City Council adopt a resolution
reasserting the City's support for the Bee Branch Stormwater Pumping Project and
authorizing the Mayor to sign and send the attached letter to the EDA seeking an
amendment to the Grant Agreement that would adjust the schedule in order to ensure
the City's use of the $2,500,000 in grant funding for the Bee Branch Stormwater
Pumping Project.
In June of 2022, the City Council rejected bids for the project that were more than 50%
over the engineer's estimate. The low bid was $24,650,000 (56% over the engineer's
estimate), nearly $9 million more than the revised project budget.
To arrive at a more affordable approach, a different design approach should be
considered. (For example, a design using less steel and concrete two materials that
have drastically increased over the past 18 months would lower the project cost.)
To move the project forward using the EDA funding, more time is needed that what is
spelled out in the Grant Agreement. The anticipated project milestones are as follows:
Complete redesign: November 2023
Obtain USACE permit: January 2024
Start Construction: June 2024
Complete Construction: December 2025
Complete project closeout: April 2026
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Deron Muehring, Civil Engineer
Dubuque
THE C
DUUB__&___FE,��rn
All-Am riea Cif
Masterpiece on the Mississippi
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TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Bee Branch Stormwater Pumping Station Project (Phase 5 of the Bee
Branch Watershed Flood Mitigation Project)
EDA Grant Agreement Amendment Request
DATE: November 28, 2022
INTRODUCTION
The purpose of this memorandum is to request approval to seek an amendment to the
Financial Assistance Award agreement (Grant Agreement) with the U. S. Economic
Development Administration (EDA) for the City's use of $2,500,000.00 in grant funding
for the Bee Branch Stormwater Pumping Station Project (Phase 5 of the Bee Branch
Watershed Flood Mitigation Project).
BACKGROUND
Between 1999 and 2011, there have been six Presidential Disaster Declarations which
impacted the Bee Branch Creek Watershed. The Drainage Basin Master Plan was
completed and adopted by the City Council in 2001. It identified a flood -prone area with
over 1,000 properties. And according to a subsequent study in 2009 by the Federal
Emergency Management Agency (FEMA), there are 1,373 properties in the flood prone,
at -risk area. In addition to homes, there are over 70 businesses in the at -risk area
with over $500 million in annual sales. The flood prone area in the Bee Branch
Watershed encompasses historic neighborhoods offering some of the community's most
affordable workforce housing. Most residents are working families, many are elderly --
those least likely to recover from repetitive flood loss. Repetitive flood damage leads to
disinvestment: from 2004 to 2009, while commercial property values grew by 39%
citywide, they fell by 6% in the Bee Branch Watershed flood prone area.
Since 2001, the City has implemented many of the improvements outlined in the
Drainage Basin Master Plan. But since 2001 several intense, storm events have
occurred in the Dubuque metropolitan area so that revisiting the predicted hydrology
and hydraulic behavior of the Bee Branch Watershed was appropriate. Over a twelve-
year period (starting in 1999), there have been several statistically rare rainstorms:
three 100-year storms, two 50-year storms, one 25-year storm, and one 10-year storm.
This prompted the City to update/amend the Drainage Basin Master Plan for the Bee
Branch Watershed.
In November of 2013, the City Council passed Resolution 335-13 adopting the 2013
Drainage Basin Master Plan Amendment. The amended Drainage Basin Master Plan
outlined several improvements throughout the Bee Branch watershed to mitigate the
effects of future flooding and disasters. Collectively, the improvements form the basis of
the multi -phase Bee Branch Watershed Flood Mitigation Project.
On December 4, 2013, the Iowa Flood Mitigation Board voted to approve the City's use
of $98,494,178 for the Bee Branch Watershed Flood Mitigation Project. On February 3,
2014 the City Council adopted Resolution 31-14 authorizing the execution of an
agreement with the State of Iowa Flood Mitigation Board and authorizing the City's use
of sales tax increment funding for the Bee Branch Watershed Flood Mitigation Project.
A great deal of the debt the City of Dubuque has incurred is for implementation of this
flood mitigation plan. The state grant funding and the subsequent debt issuances allow
much of the protection to be provided as soon as reasonably possible instead delaying
the benefits for 20 years or more. With a total estimated cost of $250 million, the Bee
Branch Watershed Flood Mitigation Project will prevent an estimated $582 million in
damages over the 100-year design life of the project. With more than $163 million in
funding assistance, for every dollar invested by Dubuque citizens it will prevent almost
seven dollars in flood damage.
On March 5, 2014 the City Council passed Ordinance 16-14 establishing the stormwater
utility fee rate structure necessary to fund the various phases and improvements
associated with the Bee Branch Watershed Flood Mitigation Project. The result was that
the lowering of rates previously for Fiscal Years 2015, 2016, 2017, 2018, 2019, 2020,
and 2021.
The City has been able to provide stormwater management services within the rate
structure established by Ordinance 16-14 which reflected that the billing rate for the
average homeowner was to increase by 6.76% in FY21 (from $8.29 per month to $8.85
per month). However, due to the uncertain economic impacts of the current COVID-19
pandemic, the rate structure was reconsidered for Fiscal Year 2021. With minor
adjustments to planned Capital Improvement Program projects, reducing some budgets
and delaying a few others, that the City was able to delay the 6.76% increased planned
for FY21 until FY22. With the adoption of Ordinance 21-20, the rate for the average
homeowner remained at $8.29 for FY21. With the adoption of Ordinance 10-21, the fee
increased in FY22 to $8.85 per month.
The original scope of the Flood Mitigation Gate Replacement improvements involved
replacing the gate structure associated with the pumping facility on Kerper Boulevard
just south of 16t" Street that functions as part of the floodwall/levee system. And the
FY15 and FY16 CIP budgets identified $2,100,000 to replace the flood gates.
In December of 2015, the City Council authorized the hiring of IIW, P.C. (now Origin
Design) for design and engineering services for the project. In addition, Origin Design
was to include improvements to the electrical system that energizes the pump station.
Finally, Origin Design was to identify and investigate possible modifications to the
existing 16t" infrastructure that would "provide additional means for releasing water from
the Bee Branch retention under various circumstances such as when the gates are
open, when they are closed, and depending on the river stage."
In April of 2017, Origin Design presented a series of possible enhancements that
improved access to the facility; an updated, more reliable electrical service; and
provided space for the use of additional, temporary pumps to augment the existing,
permanent pumps. The estimated cost for the improvements exceeded $3.3 million,
considerably more than the budget. Due to the record rainfalls in 2010 and 2011 that
have impacted the Bee Branch Watershed, it was prudent to consider if even the
modest improvements were sufficient. Moreover, some of the facility elements (i.e., the
two 90,000 gallon per minute pumps) pre -date the construction of the floodwall/levee
system completed circa 1974. Therefore, staff from the Public Works and Engineering
Departments worked with Origin Design to further develop improvements to the facility
that would indeed improve drainage when the gates are open and when operating
under Mississippi "flood" conditions when the gates are closed.
Of the five alternatives analyzed, the improvements associated with the preferred
alternative, now referred to as the Bee Branch Gate & Pump Station Project, was
selected because it would best handle the severe flooding that has been occurring since
1999 and, in concert with the Bee Branch Creek Restoration Project (including the Bee
Branch Railroad Culverts Project), would provide flood protection for the 500-year
rainstorm. The cost to build a new flood pumping station capable of handling flows from
the Bee Branch Creek was initially estimated to cost approximately $10 million. To
better afford the project improvements associated with all the phases of the Bee Branch
Watershed Flood Mitigation Project, and in particular the increased costs associated
with the Bee Branch Gate & Pump Station Project, the City sought additional financial
assistance.
In December of 2018, the City Council adopted Resolution 368-18, approving an
application for $4,000,000.00 in U. S. Economic Development Administration (EDA)
grant funding for the 16th Street Detention Basin Flood Gates Project, otherwise known
as the Bee Branch Stormwater Pumping Station Project. The City was subsequently
awarded a $2,500,000.00 in EDA grant.
In May of 2019, the City Council adopted Resolution 152-19, authorizing entering into a
Grant Agreement with EDA as necessary for the City's use of $2,500,000 in EDA grant
funding for the Project. The City Council also pledged "the amount of $6,635,000.00
from state sales tax increment or local stormwater utility proceeds...." Per the
Agreement, the project must be complete by April 11, 2024.
With the adoption of the FY23 CIP Budget, the City Council established a total of $18.9
million for the Project, necessitating an increase to the Stormwater Utility rate to $9.00
in FY23 and to $9.45 in FY24. Table 1 compares the rates established through
ordinances adopted in 2012, 2014, 2020, 2021, and 2022.
3
Table 1.
FY 17 FY 18 FY 19 FY 20
FY 21
FY 22
FY 23
FY24
Ordinance $9.00 $9.00 $9.00 $9.00
$9.00
$9.00
$9.00
$9.00
21-12
Ordinance $6.81 $7.27 $7.76 $8.29
$8.85
$9.00
$9.00
$9.00
16-14
Ordinance
$8.29
$8.29
$8.29
$8.29
21-20
Ordinance
$8.85
$8.85
$8.85
10-21
Ordinance
$9.00
$9.00
13-22
Expected
$9.45*
FY24*
*A rate increase of at least $9.45 is anticipated for FY24. Actual
increase
will be based on the FY24
budget recommendation
In April of 2022, the City Council authorized the public bidding process for the Bee
Branch Stormwater Pumping Station Project.
In June of 2022, the City Council rejected bids for the project that were more than 50%
over the engineer's estimate. The low bid was $24,650,000 (56% over the engineer's
estimate), nearly $9 million more than the revised project budget.
DISCUSSION
The estimated construction cost at the time of the City's EDA application in late 2018
was $9,135,000.00. With the EDA grant award of $2.5 million, the City's share was to
be $6,635,000. Including the estimated $1.3 million in engineering fees, the cost to the
City was thought to be $7,935,000. But issues were identified while developing the final
project design. For example, the existing electrical service would need to be upgraded
to accommodate the demand of the increased pumping capacity and additional
foundation pilings would be necessary. As a result, the estimated construction cost
increased significantly to $15,300,000. With engineering costs, the estimated project
cost rose to $16.9 million with the City's share totaling $14.4 million. Finally, just prior to
bidding, the estimate was updated once again by the engineer of record; it climbed to
$18.9 million. With the adoption of the FY23 CIP Budget, the City Council established
the funding to move forward with the project, allocating $8.5 million more for the
improvements than what was anticipated in 2018. So when the low bid received was
$24,650,000, the City was in no position to award the project.
There are several possible factors that may have contributed to higher than expected
construction costs. Some possible reasons are as follows:
Timing of letting. Bidding work for the upcoming construction season is typically
better done in the preceding fall or winter. With a letting in the spring, contractors
are more likely to have their work lined up for the coming construction season.
12
Contractor backlog. It is currently difficult to find available contractors (and
subcontractors) resulting in a "bidders' market".
Construction time frame. The EDA grant required completion of the work by April
of 2024. Condensing the construction schedule can lead to higher costs.
Availability of construction materials. For a myriad of reasons, labor and material
prices have been on the rise since 2018. The price of steel had increased by
100% from May 2018 to May of 2022. At one point, it increasing by 18% over a
two -month period. Raw materials have been so volatile that suppliers are not
guaranteeing their prices at the time of the bid letting. The price isn't locked in
until the supplier begins manufacturing the contractor's order. As a result,
contractors must hedge against material inflation costs which is typically results
in higher bids.
The two bids received were within 1.4% of each other, suggesting that the bids reflect
the true cost of the project at the time of bidding, that rebidding the project with the
same design would likely result in a similar result. To arrive at a more affordable
approach, a different design approach should be considered. (For example, a design
using less steel and concrete two materials that have drastically increased over the past
18 months would lower the project cost.)
Having taken some time to consult with the engineering design team, an alternative
approach has been identified. Instead of replacing the existing pumping station with a
new station to double the pumping capacity, a new pumping station would be
constructed to work in tandem with the existing pump station. Working together they
would double the pumping capacity. This would allow the system to provide the flood
protection benefits outlined in the City's original application. The City would then budget
additional funds to replace the existing, aging pump station in the next ten to fifteen
years when needed. To proceed with this, or any approach at this point, it will take
additional time to redesign the new pump station near the existing pump station.
To move the project forward using the EDA funding, more time is needed that what is
spelled out in the Grant Agreement. The anticipated project milestones are as follows:
Complete redesign: November 2023
Obtain USACE permit: January 2024
Start Construction: June 2024
Complete Construction: December 2025
Complete project closeout: April 2026
RECOMMENDATION
I recommend that the City send the attached letter to the U. S. Economic Development
Administration (EDA) seeking an amendment to the Grant Agreement that would adjust
the schedule to the milestones outlined above in order to ensure the City's use of the
$2,500,000 in grant funding for the Bee Branch Stormwater Pumping Project.
5
REQUESTED ACTION
I respectfully request adoption of the attached resolution reasserting the City's support
for the Bee Branch Stormwater Pumping Project and authorizing the Mayor to sign and
send the attached letter to the EDA seeking an amendment to the Grant Agreement that
would adjust the schedule in order to ensure the City's use of the $2,500,000 in grant
funding for the Bee Branch Stormwater Pumping Project.
Attach.
Prepared by Deron Muehring
Cc:
Crenna Brumwell, City Attorney
John Klostermann, Public Works Director
Teri Goodmann, Director of Strategic Partnerships
Deron Muehring, Civil Engineer
X
Prepared by Deron Muehring Civil Engineer. 50 W. 1P St Dubuque IA 52001 (563) 589-4276
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 367-22
RESOLUTION APPROVING A REQUEST TO AMEND THE US ECONOMIC
DEVELOPMENT ADMINISTRATION DISASTER RELIEF OPPORTUNITY GRANT
AGREEMENT AND PLEDGING CONTINUED SUPPORT FOR THE CITY OF
DUBUQUE 16TH STREET DETENTION BASIN FLOOD GATES PROJECT
Whereas, the City Council of the City of Dubuque, Iowa was awarded $2,500,000
in an U.S. Economic Development Administration (EDA), U.S. Department of Commerce
FY2018 Disaster Relief Opportunity grant for the City of Dubuque 16th Street Detention
Basin Flood Gates Project (Project), also known as the Bee Branch Stormwater Pumping
Station Project; and
Whereas, the City Council, passed Resolution 152-19 authorizing the Mayor to sign
the Financial Assistance award agreement (Grant Agreement) and pledging $6,635,000
in local matching funds for the Project; and
Whereas, the City allocated $16.4 million in local funds for the Project with the
adoption of the Fiscal Year 2023 Capital Improvement Program Budget; and
Whereas, the City received and rejected bids for the Project that were $8,860,000
over the Project budget; and
Whereas, the City will be unable to complete the Project in accordance with the
schedule stipulated in the Grant Agreement; and
Whereas, it is in the City's best interest to seek an amendment to the Grant
Agreement to adjust the schedule in order for the City to receive the $2,500,000.00 in
EDA grant funding for the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City remains committed to providing the flood protection benefits
outlined in its 2018 application for EDA FY2018 Disaster Relief Opportunity grant funding.
Section 2. The Mayor is hereby authorized to sign the letter to the EDA seeking
an amendment to the Grant Agreement that would adjust the schedule to the milestones
outlined above in order to ensure the City's use of the $2,500,000 in grant funding for the
Bee Branch Stormwater Pumping Project.
Passed, approved, and adopted this 5th day of December 2022
awl
Attest:
Adrienne Breitfelder, City Clerk
THE CITY OF
DUB E
Masterpiece on the Mississippi
November 28, 2022
Kelley Neumann, Project Engineer
U.S. Department of Commerce
Economic Development Administration
1244 Speer Boulevard, Suite 431
Denver, CO 80204
Dubuque
Office of the Mayor
LFA®eHsr Cp
City Hall
50 West 13" Street
�I II
Dubuque, IA 52001-4864
I I
w .cityofdubuque.org
2007-2012-2013
2017*2019
Re: EDA Award Number: 05-01-04941
Dubuque, Iowa
Subject: Start of Construction and Completion Date Revisions
Dear Ms. Neumann:
The City of Dubuque respectfully requests adjusting the Project Development Time Schedule —
start of construction date, construction completion date, and award end date for the City of
Dubuque 16th Street Detention Basin Flood Gates Project (a.k.a. the Bee Branch Stormwater
Pumping Station Project). At the heart of our request is the cost of the proposed improvements
project cost as currently designed.
As outlined in the 2018 application for EDA funding, the City has been systematically working to
improve its stormwater management system to mitigate repetitive floods that have resulted in
eight presidentially declared Disaster Declarations since 1999. As of the fall of 2022, the City
has expended over $70 million in local funds to implement various phases of the Bee Branch
Watershed Flood Mitigation Project. Even with the support of other local, state, and federal
funding partners such as EDA, the citizens of Dubuque pay the second highest stormwater
utilityfees in the state.
The estimated construction cost at the time of the City's application in late 2018 was
$9,135,000.00. With the generous U.S. Department of Commerce Economic Development
Administration (EDA) grant award of $2.5 million, the City's share was to be $6,635,000.
Including the estimated $1.3 million in engineering fees, the cost to the City was thought to be
$7,935,000. But issues were identified while developing the final project design. For example,
the existing electrical service would need to be upgraded to accommodate the demand of the
increased pumping capacity and additional foundation pilings would be necessary. As a result,
the estimated construction cost increased significantly to $15,300,000. With engineering costs,
the estimated project cost rose to $16.9 million with the City's share totaling $14.4 million.
Finally, just prior to bidding, the estimate was updated once again by the engineer of record; it
climbed to $18.9 million. In evidence of its support for the project, the City Council established
additional funding as part of the FY23 budget process to be able to fund the improvements.
When the City initiated the public bidding process in the spring of 2022, it had allocated $16.4
million for the project, or $8.5 million more than anticipated at the outset. But when the low bid
received was $24,650,000, the City was in no position to award the project.
There are several possible factors that may have contributed to higher than expected
construction costs. Some possible reasons are as follows:
• Timing of letting. Bidding work for the upcoming construction season is typically better
done in the preceding fall or winter. With a letting in the spring, contractors are more
likely to have their work lined up for the coming construction season.
• Contractor backlog. It is currently difficult to find available contractors (and
subcontractors) resulting in a "bidders' market".
• Construction time frame. The EDA grant required completion of the work by April of
2024. Condensing the construction schedule can lead to higher costs.
• Availability of construction materials. For a myriad of reasons, labor and material prices
have been on the rise since 2018. The price of steel had increased by 100% from May
2018 to May of 2022. At one point, it increased by 18% over a two-month period. Raw
materials have been so volatile that suppliers are not guaranteeing their prices at the
time of bids. The price isn’t locked in until the supplier begins manufacturing the
contractor’s order. As a result, contractors must hedge against material inflation costs
which is typically results in higher bids.
The two bids received were within 1.4% of each other, suggesting that the bids reflect the true
cost of the project at the time of bidding, that rebidding the project with the same design would
likely result in a similar result. To arrive at a more affordable approach, a different design
approach is necessary. For example, a design using less steel and concrete (two materials that
have drastically increased over the past 18 months) would lower the project cost.
Having taken some time to consult with the engineering design team, an alternative approach
has been identified. Instead of replacing the existing pumping station with a new station to
double the pumping capacity, a new pumping station would be constructed to work in tandem
with the existing pump station. Working together they would double the pumping capacity. This
would allow the system to provide the flood protection benefits outlined in the City’s original
grant application. The City would then budget additional funds to replace the existing, aging
pump station in the next ten to fifteen years when needed. To proceed with this, or any
approach at this point, it will take additional time to design the new pump station near the
existing pump station.
In order to move the project forward and ultimately proved the flood protections it will avail, we
respectfully ask to amend the grant agreement to reflect the anticipated project development
milestones as follows:
Complete redesign: November 2023
Obtain USACE permit: January 2024
Start Construction: June 2024
Complete Construction: December 2025
Complete project closeout: April 2026
Again, the City appreciates the generous EDA contribution to a project that remains important to
the City of Dubuque City Council, the citizens of Dubuque, and multiple businesses directly
impacted by previous flooding. And we hope that the project approach, and schedule outlined
herein is determined to be acceptable as the City continues to take steps to make it a reality.
Should you require additional information, please contact Civil Engineer II Deron Muehring at
563-589-4276.
Sincerely,
06 nagh
Mayor
CC: City staff
ECIA staff
Origin PC staff