Funding Agreement Between City and American Marine 2023 Maintenance Dredging Project Copyrighted
September 5, 2023
City of Dubuque Consent Items # 020.
City Council Meeting
ITEM TITLE: Funding Agreement Between City and American Marine 2023
Maintenance Dredging Project
SUM MARY: City Manager recommending City Council approve the Funding
Agreement between the City and American Marine for the partnership
agreement to complete the 2023 Maintenance Dredging Project, and
hereby authorize the City Manager to execute said agreement, through
adoption of the attached resolution.
RESOLUTION Approving the Funding Agreement between the City of
Dubuque and American Marine for the 2023 Maintenance Dredging
Project
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Funding Agreement Supporting Documentation
Dubuque
THE CITY QF �
All-Meriea Ciry
DLT B E ; . � . �
�� � �
MaSt� Z�C� aYd t�Q Mt55ZSSZ Z zoa�•zoiz•�ai3
YP pp za��*zai�
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Funding Agreement Between City and American Marine
2023 Maintenance Dredging Project
DATE: August 30, 2023
Assistant City Engineer Robert Schiesl is recommending City Council approve the
Funding Agreement between the City and American Marine for the partnership
agreement to complete the 2023 Maintenance Dredging Project, and hereby authorize
the City Manager to execute said agreement, through adoption of the attached
resolution.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Robert Schiesl, Assistant City Engineer
Dubuque
THE CITY OF �
All•Ameriea Cii�
DU B E ;.. . ,
� � � �
Masterpiece on the Mississippi 2oi�*zoi19
TO: Michael C. Van Milligen, City Manager
Gus Psihoyos, City Engineer
FROM: Robert Schiesl, Assistant City Engineer
DATE: August 29, 2023
RE: Funding Agreement Between City and American Marine
2023 Maintenance Dredging Project
INTRODUCTION
The purpose of this memorandum is to provide the City Council with information related
to the recommendation for approval of the Funding Agreement between City and
American Marine for the partnership agreement to complete the 2023 Maintenance
Dredging Project.
BACKGROUND
The City has a contractual obligation to maintain city-owned and leased property under
current lease terms to perForm maintenance dredging at American Marine — Dubuque
Yacht Basin to maintain adequate harbor depth for recreational and transient boat
navigational access.
For the Dubuque Yacht Basin Lease dated February 5, 1974, the City is only
responsible for perForming maintenance dredging of Schmitt Harbor to a usable depth
for such purposes as are permitted by the Lease. Figure 1 shows the Dubuque Yacht
Basin site and the location of Schmitt Harbor.
: � ' -
�
►� . � ,� ., ,
_ � - - � ,.► . F.�w� , , .,� y x
4 - .� � — -_- _ _ ,, :s s .`
: � � *J �+\ �� �;, - '� . S �
ul_':^ ` '�.�.` y �c+ �� .�� .
� _-� ;�. �'� � � �
,,, ''��.�,e,r M, �� '��y •��� , ��_ .;,�.�:..� .
� w+�" '�', ���s
��r� . • �#+ �.'_+� � . �'+.
'—`'`� � � - I.` `t� �
_ � � i`'` __ -- _ y ���
�
- �
�'� �[
���q.'�--. _ � � �•'°'� .y �
� J� �w�.� � M ,�.
�.�'r�. - � .- _� .
'� �y�y�r 5CH1�",i� i "`, ,, ��.-�.-�'a�±; q 4
^��'� HARBCJFt T! � �;3 - :��
',I _'?' .'� i',�,�`'� . �
a,� , 'i•
,r��..'-
!J�'- :
� , FIGURE 1
DISCUSSION
City staff inet with American Marine to review the river bottom bathometric survey
contour maps, evaluate maintenance dredging needs, and prioritize maintenance
dredging locations based on current operational challenges for safe harbor access for
recreational and transient boat navigational access.
American Marine - Dubuque Yacht Basin identified and requested the location shown in
Figure 2 as their #1 priority to be dredged as part of the 2023 Maintenance Dredging
Project.
. ,
LEGEN� •
A1 7A0'River Stage �,
� A6ove Water
y
� P'-T oeep ' 4.
� �
1'-2' Deep
�
� 2'-3' Ueep
� � /
3'-4' �eep
� �l � y -
1
4'-5' Ueep �
� ��'h�"� �� j�A � .
�� , a ' �
► �`/�ri#.
bl� �
.q
� FALL 2023
DREDGING AREA P� ��
I� � (MAINTENANCE
;�►..r � DRE�GE) � '
' � �,
� .��,
0
� � �:F`
� �
'.1:
� T��
` �
1 , �
I � + �,;;
� i�
� �� `
Figure 2: American Marine - Yacht Basin - Dredging Area
2
Although the requested dredge area is outside the Schmitt Harbor location referenced
per the Lease, and outside the City's obligation to maintain, staff believes it is in the
public best interests to perform maintenance dredging to create a safe open waterway
for navigating vessels from the Peosta Channel to and from the marina harbor and
transient docks.
The 2023 Maintenance Dredging Project will provide adequate depth and improved
open waterway for safely navigating recreational and transient boat navigational access.
By dredging the additional areas outside the City's obligation to maintain and creating
the open waterways from the Peosta Channel to the marina harbors, this will create
improved water flow and water circulation which will reduce the potential for future
sediment siltation within the proposed dredge locations. The proposed dredged open
waterways will be more sustainable long-term and will maximize the return on the
investment of City and private funding with a long-term solution in providing safe harbor
access.
AMERICAN MARINE FUNDING AGREEMENT
American Marine has provided a letter of support dated August 1, 2023, for the 2023
Maintenance Dredging Project, and has agreed to provide $100,000 toward dredging at
the Yacht Basin.
City staff has worked with the Legal Department to develop a project Funding
Agreement between the City and American Marine for providing the private participation
funding for the 2023 Maintenance Dredging Project.
This mutual partnership between the City and American Marine to dredge the requested
areas outside the City's Lease obligation to maintain, does not obligate the City to
maintain said areas in the future, although future partnerships can be considered.
RECOMMENDATION
I recommend that the City Council approve the Funding Agreement between the City
and American Marine for the partnership agreement to complete the 2023 Maintenance
Dredging Project.
PROJECT FUNDING
The City received one (1) bid on August 24, 2023, for the 2023 Maintenance Dredging
Project. Newt Marine Service, of Dubuque, IA submitted the only bid in the amount of
$493,840.00.
The estimate of probable cost for the 2023 Maintenance Dredging Project is
summarized in the following table:
Description Cost Estimate Award
Dredge Construction - Dubuque Marina $ 200,000.00 $ 202,910.00
Dredge Construction - American Marine Yacht Basin 300,000.00 290,930.00
Contingency 25,000.00 25,000.00
Engineering Design and Administration 15,000.00 15,000.00
Total Construction Cost Estimate $ 540,000.00 $ 533,840.00
3
The proposed project funding is summarized as follows:
Project Number Fund Description Fund Amount
5546000001-304-67990 City - Harbor Area Dredging Funds $ 433,840.00
Private Participation - American Marine 100,000.00
Total Project Funding $ 533,840.00
The estimated cost and funding to dredge the priority #1 location at Dubuque Yacht
Basin as identified and requested by American Marine is summarized as follows:
Project Number Fund Description Fund Amount
5546000001-304-67990 City - Harbor Area Dredging Funds $ 190,930.00
Private Participation - American Marine 100,000.00
Total Project Funding $ 290,930.00
REQUESTED ACTION
I respectFully request that the City Council approve the Funding Agreement between the
City and American Marine for the partnership agreement to complete the 2023
Maintenance Dredging Project, and hereby authorize the City Manager to execute said
agreement, through adoption of the attached resolution.
cc: Jenny Larson, Chief Financial Officer
Nathan Steffen, Civil Engineer
American Marine
F:\PROJECTS\DREDGING PROJECTS\2023 Maintenance Dredge\Funding Agreement-American Marine
4
Prepared by Robert Schiesl City of Dubuque Engineering 50 W. 13th St. Dubuque, IA 52001 (563)589-4270
Return to Adrienne N. Breitfelder City Clerk City of Dubuque, 50 W. 13'h St.Dubuque, 1A 52001 (563)589-4100
RESOLUTION NO. 287-23
APPROVING THE FUNDING AGREEMENT BETWEENTHE CITY OF DUBUQUE AND
AMERICAN MARINE FOR THE 2023 MAINTENANCE DREDGING PROJECT
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
WHEREAS, city staff met with American Marine to review the river bottom
bathometric survey contour maps, evaluate maintenance dredging needs, and prioritize
maintenance dredging locations based on current operational challenges for safe harbor
access for recreational and transient boat navigational access; and
WHEREAS, American Marine - Dubuque Yacht Basin requested and identified the
location to be dredged as part of the 2023 Maintenance Dredging Project; and
WHEREAS, per the Dubuque Yacht Basin Lease dated February 5, 1974, the City
is only responsible for performing maintenance dredging of Schmitt Harbor to a usable
depth for such purposes as are permitted by the Lease; and
WHEREAS, although the requested dredge area is outside the Schmitt Harbor
location referenced per the Lease, and outside the City's obligation to maintain, staff
believes it is in the public best interests to perform maintenance dredging to create a safe
open waterway for navigating vessels from the Peosta Channel to and from the marina
harbor and transient docks; and
WHEREAS, American Marine has provided a letter of support dated August 1,
2023, for the 2023 Maintenance Dredging Project, and has agreed to provide $100,000
towards dredging at the Yacht Basin; and
WHEREAS, City and American Marine now desire to enter into a Funding
Agreement to perform maintenance dredging at the Dubuque Yacht Basin.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
SECTION 1 . That said Funding Agreement between City and American Marine for
the partnership agreement to complete the 2023 Maintenance Dredging Project is hereby
approved.
SECTION 2, That the City Manager be authorized and directed to execute said
Funding Agreement between City and American Marine for the partnership agreement to
complete the 2023 Maintenance Dredging Project.
Passed, adopted, and approved this 5th day of September 2023.
dnagh, Mayor '
Attest:
Trish L. Gleason, Assistant City Clerk
FUNDING AGREEMENT
BETWEENTHE
CITY OF DUBUQUE, IOWA
AND
AMERICAN MARINE
FOR THE
2023 MAINTENANCE DREDGING PROJECT
This Funding Agreement (this Agreement), dated for reference purposes the 5tn
day of September 2023, is made and entered into by and between the City of Dubuque,
lowa (City) and American Marine.
WHEREAS, city staff met with American Marine to review the river bottom
bathometric survey contour maps, evaluate maintenance dredging needs, and prioritize
maintenance dredging locations based on current operational challenges for safe harbor
access for recreational and transient boat navigational access; and
WHEREAS, American Marine - Dubuque Yacht Basin identified the location shown
in Figure 2 as their #1 priority to be dredged as part of the 2023 Maintenance Dredging
Project; and
�.
LEGENU
At 7.00'River Stage
�� Ybeve Wa1er
M
� o•-r oeep
� � i
1•-2• oeep
I
� x•-3• oaep
� � �
a•-a• oaep
'� �.�y �. r� �.
. a•-r o.ep '�''��'
I �FY'�' q .-�..
�l� �� 4• .
���� � FALL 2023 p,
��DREDGING AREA
(MAINTENANCE
',�,�u.r- ❑REDGE) • �
�
. ' �.
r *
4
1 � �
�r
M , 1 ��J
l
- � I � �:
� i�
4 �� I
Figure 2: American Marine - Yacht Basin - �redging Area
WHEREAS, per the Dubuque Yacht Basin Lease dated February 5, 1974, the City
is only responsible for perForming maintenance dredging of Schmitt Harbor to a usable
depth for such purposes as are permitted by the Lease; and
WHEREAS, although the requested dredge area is outside the Schmitt Harbor
location referenced per the Lease, and outside the City's obligation to maintain, staff
believes it is in the public best interests to perform maintenance dredging to create a safe
open waterway for navigating vessels from the Peosta Channel to and from the marina
harbor and transient docks; and
WHEREAS, American Marine has provided a letter of support dated August 1,
2023, for the 2023 Maintenance Dredging Project, and has agreed to provide $100,000
toward dredging at the Yacht Basin; and
WHEREAS, City and American Marine now desire to enter into a Funding
Agreement to perform maintenance dredging at the Yacht Basin.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN CITY AND DUBUQUE
MARINA, INC. AS FOLLOWS:
SECTION 1. AGREEMENT SUBJECT TO CONTRACT AWARD. This Agreement
shall be subject to the City awarding a Public Improvement Construction Contract for the
2023 Maintenance Dredging Project.
SECTION 2. CITY AS LEAD AGENCY. City shall assume the lead agency for
administration of the 2023 Maintenance Dredging Project.
SECTION 3. DREDGING RESPONSIBILITY. City shall perform the dredging
described in the 2023 Maintenance Dredging Project (the Dredging Work) incorporated
herein by this reference. American Marine shall cooperate with City but shall have no
responsibility for any of the Dredging Work.
SECTION 4. ESCROW ACCOUNT. In consideration for City assuming the lead
agency and perForming the Dredging Work, American Marine agrees to contribute One
Hundred Thousand Dollars ($100,000.00) to City as follows:
A. Appointment of Escrow Agent. City is hereby appointed to act as Escrow
Agent hereunder and agrees to act as such.
B. Escrowed Funds and Account.
a. Escrowed Funds. American Marine agrees to deliver to City the sum of
One Hundred Thousand Dollars ($100,000.00) (Escrowed Funds) within
seven (7) days after delivery to American Marine City's notice to
American Marine that City has executed a Public Improvement
Construction Contract for the 2023 Maintenance Dredging Project.
b. Account. City shall establish a segregated account for the Escrowed
Funds.
c. Disbursements. Funds in the Escrow Account will be available to City
any time City in its sole discretion deems necessary to pay for the
Dredging Work. City, as Escrow Agent, is authorized to disburse
consistent with this Agreement cash comprising all or part of the
Escrowed Funds to provide for any payments required to be made
pursuant to this Agreement. Any Escrow Amount in the Account
remaining after the payment of all costs of the Dredging Work shall he
promptly refunded to American Marine.
D. Term and Termination. The Account shall be closed on that date upon
which all Escrowed Funds have been disbursed.
CITY OF DUBUQUE, IOWA
By:.
Michael C. Van Miitigen
City Manager
AMERICAN MARINE
By: Lie'
Chris McGrane
General Manager