Bee Branch Stormwater Pumping Station - Phase IV of the Bee Branch Watershed Flood Mitigation Project Copyrighted
September 5, 2023
City of Dubuque Action Items # 09.
City Council Meeting
ITEM TITLE: Bee Branch Stormwater Pumping Station - Phase IV of the Bee Branch
Watershed Flood Mitigation Project
SUM MARY: City Manager recommending City Council adoption of the attached
resolution pledging local, matching funds in the amount of$19,012,000
for improvements associated with the Bee Branch Stormwater Pumping
Station Project (Phase V of the Bee Branch Watershed Flood Mitigation
Project).
RESOLUTION Pledging the Local Match in the Amount of$19,012,000
Using $16,412,000 in General Obligation Bonds and $2,600,000 in SRF
Loan Proceeds for Construction of a New Stormwater Pumping Station
at the 16th Street Detention Basin
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bee Branch Stormwater Pumping Station (Phase IV of the Bee Branch
Watershed Flood Mitigation Project) Project #5586500007
DATE: August 29, 2023
Civil Engineer Deron Muehring is recommending City Council adoption of the attached
resolution pledging local, matching funds in the amount of$19,012,000 for
improvements associated with the Bee Branch Stormwater Pumping Station Project
(Phase V of the Bee Branch Watershed Flood Mitigation Project).
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
Deron Muehring, Civil Engineer
Jenny Larson, Chief Financial Officer
John Klosterman, Public Works Director
Arielle Swift, Assistant Public Works Director
Teri Goodmann, Director of Strategic Partnerships
Dubuque
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TO: Michael C. Van Milligen, City Manager
Gus Psihoyos, City Engineer
FROM: Deron Muehring, Civil Engineer
SUBJECT: Bee Branch Stormwater Pumping Station (Phase IV of the Bee Branch
Watershed Flood Mitigation Project) Project #5586500007
DATE: August 28, 2023
INTRODUCTION
The purpose of this memorandum is to specify the source of the local matching funds for the
Economic Development Disaster Recovery Grant from the U. S. Economic Development
Administration (EDA) in the amount of$7,700,000.00 for the Bee Branch Gate Replacement/
Pumping Station Project (Phase V of the Bee Branch Watershed Flood Mitigation Project).
BACKGROUND
In November of 2013, the City Council passed Resolution 335-13 adopting the 2013
Drainage Basin Master Plan Amendment that 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 outlined below.
Table 1. Twelve phases of the Bee Branch Watershed Flood Mitigation Project
Phase Description Status
1 Carter Road Detention Basin Complete
2 West 32"d Street Detention Basin Complete
3 Historic Millwork District Complete
4 Lower Bee Branch Creek Restoration Complete
5 Flood Mitigation Gate Replacement Designed
6 Impervious Surface Reduction (Green Alleys) Initiated
7 Upper Bee Branch Creek Restoration Complete
g 22nd Street Storm Sewer Improvements Complete to N. Main St.
9 Flood Mitigation Maintenance Facility Initiated
10 North End Storm Sewer Improvements
11 Water Plant Flood Protection
12 17t" Street Storm Sewer Improvements Complete to Heeb St.
On December 4, 2013, the lowa Flood Mitigation Board voted to award the City$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 lowa Flood Mitigation Board and authorizing the City's use of sales tax increment funding
for the Bee Branch Watershed Flood Mitigation Project.
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The City has used a combination of stormwater utility revenue; local, state, and federal grant
funding; and debt in order to construct the improvements associated with the flood mitigation
plan. The state grant funding and the subsequent debt issuances allowed for much of the
protection to be provided sooner than otherwise possible. 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.
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 16th Street, that functions as part of the floodwall/levee system. 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.
Due to the record rainfalls in 2010 and 2011 that resulted in flooding within the Bee Branch
Watershed, as part of the design process Origin Design was asked to investigate more
significant modifications to the existing 16th pump station infrastructure. Considering that
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, 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 replacement of the existing facility with a new stormwater pumping
station was selected. This Bee Branch Stormwater Pumping Station Project alternative was
selected because it would best handle the more recent severe flooding that occurred
between 1999 and 2011. And, in concert with the Bee Branch Creek Restoration Project
(including the Bee Branch Railroad Culverts Project), it 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 EDA
grant funding for the new stormwater pumping station project. The City was subsequently
awarded $2,500,000.00 in EDA grant funding. In May of 2019, the City Council adopted
Resolution 152-19, authorizing entering into a Financial Assistance Award Agreement with
EDA as necessary for the City's use of $2,500,000 in EDA grant funding for the pumping
station 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 was
required to complete the improvements by April 11, 2024.
In May of 2022, the City Council adopted Resolution 177-22, approving the plans,
specifications, form of contract, and estimated cost for the Bee Branch Stormwater Pumping
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Station Project, in the estimated amount of$15,790,000.00. The estimate of probable costs
for the Project is as follows:
Construction Contract $15,790,000
Contingency 720,000
Engineering 2,400,000
Total Project Cost $18,910,000
The funding plan for the improvements was as follows:
State Sales Tax Increment Proceeds $9,614,000
Stormwater Utility Construction Funds 2,796,000
US EPA State Revolving Fund (SRF) Loan 2,600,000
US EDA Disaster Grant 2,500,000
DRA Distribution 1,400,000
TOTAL $18,910,000
In May of 2022, the City received two bids for the Bee Branch Stormwater Pumping Station
Project (the "Project"). The low bid was $24,650,000, which was 56.1% over the Engineer's
Estimate. The two bids were within 1.4% of each other, suggesting that the bids reflect the
true cost of the project such that rebidding the project with the same design would likely
result in similar results. Due to funding limitations, the City Council adopted Resolution 222-
22 rejecting the bids for the Project.
The City was aware that rejecting the bids would likely preclude the City's ability to fund the
project using the $2.5 million in EDA grant funding. The City did discuss the possibility of
EDA providing additional time to complete the project. However, EDA representatives
indicated that the April 2024 deadline was a hard deadline, and the City was forced to send
a letter in June of 2023 to EDA rescinding the $2.5 million EDA grant for the Bee Branch
Stormwater Pumping Station Project.
EDA representatives reiterated their desire to assist the City with the Project and invited the
City to reapply for EDA grant funding for the project. As directed by EDA, working with ECIA
with support from others such as the Greater Dubuque Development Corporation, a new
preliminary application was prepared and submitted by the July 28, 2023, EDA deadline. To
complete a full application, the City must pledge to provide the necessary local matching
funds should the grant be awarded.
In August of 2023, the City Council adopted Resolution 260-23 approving the City's
application for $7.7 million in EDA Disaster Relief Opportunity grant funding and pledged
providing the required local matching funds in the amount of $19, 012, 000.00 from GO
Bonds or a State Revolving Fund loan.
DISCUSSION
In response to the City's preliminary application, EDA has asked the City to provide a more
detailed breakdown of the source of local matching funds. As outlined in Resolution 260-23,
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the City pledged local matching funds in the amount of $19,012,000 "from GO Bonds or a
State Revolving Fund loan."
Ultimately, the City will likely maximize the use of a State Revolving Funds (SRF) loan and
avoid, if possible, the issuance of General Obligation (GO) debt. But because the City only
anticipated the need for $2.6 million in SRF, the current State of lowa Clean Water State
Revolving Fund (CWSRF) Intended Use Plan (IUP) only reflects $2.6 million for the project.
And while the City can amend the IUP request (increase the amount of SRF for the project
as needed), it cannot be done in time for the EDA application. Therefore, remaining
consistent with Resolution 260-23 and recognizing the amount of SRF currently on the IUP,
the City would fund the local match using the $2.6 million in SRF and the remaining
$16,412,000 in GO debt as follows:
SRF $2,600,000
GO Debt $16,412,000
TOTAL MATCH $19,012,000
According to EDA, if the City chooses later to fund a portion of the local match using other
local funds to reduce debt to fund the local match, despite that the initial pledge was to fund
it entirely with debt.
As presented previously, the City will know if its application for EDA funding is successful in
the fall of 2023 so that the City will be able to consider how to best provide the local match
as part of the Fiscal Year 2025 budget process. And there will be multiple options to
consider.
RECOMMENDATION
I recommend that the City pledge local, matching funds in the amount of $19,012,000 for
improvements associated with the Bee Branch Stormwater Pumping Station Project.
BUDGET IMPACT
Because the EDA grant is only related to construction costs, the City's match for the grant
is $19,012,000 calculated as follows:
Construction Contract $25,440,000
Contingency (5%) 1,272,000
Total Project Cost $26,712,000
EDA Grant $7,700,000
Grant Required City Cost Share $19,012,000
Project Grant Total $26,712,000
4
ACTION TO BE TAKEN
I respectfully request adoption of the attached resolution pledging local, matching funds in
the amount of $19,012,000 for improvements associated with the Bee Branch Stormwater
Pumping Station Project (Phase V of the Bee Branch Watershed Flood Mitigation Project).
Attach.
cc: Crenna Brumwell, City Attorney
Jenny Larson, Chief Financial Officer
John Klosterman, Public Works Director
Arielle Swift, Assistant Public Works Director
Teri Goodmann, Director of Strategic Partnerships
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Prepared by Deron Muehring, 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. 13th St. Dubuque, IA 52001 (563)589-4100
RESOLUTION NO. 298-23
RESOLUTION PLEDGING THE LOCAL MATCH IN THE AMOUNT OF $19,012,000
USING $16,412,000 IN GENERAL OBLIGATION BONDS AND $2,600,000 IN SRF
LOAN PROCEEDS FOR CONSTRUCTION OF A NEW STORMWATER PUMPING
STATION AT THE 16TH STREET DETENTION BASIN
WHEREAS, the City Council of the City of Dubuque, Iowa wishes to apply through
the Economic Development Administration (EDA), U. S. Department of Commerce for a
Fiscal Year 2018 Disaster Supplemental grant for the construction of a new stormwater
pumping station at the 16th Street Detention Basin, and
WHEREAS, the City Council, in support of the application for $7,700,000.00 in
grant funding, adopted Resolution 260-23 pledging a local match estimated at
$19,012,000.00 toward the activity as identified in the application using General
Obligation bonds or a State Revolving Fund loan as the source for the expenditure, and
WHEREAS, the grant application requires further specifying the breakdown of debt
funding between General Obligation bonds and the State Revolving Fund loan.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
SECTION 1 . Pledges the amount of$19,012,000.00 with $16,412,000.00 from GO
Bonds and $2,600,000.00 from a State Revolving Fund loan, if in fact, the Disaster Relief
Opportunity grant is awarded by the Economic Development Administration.
SECTION 2. Authorizes the City Manager to act as an authorized representative
on the City's Economic Development Administration Fiscal Year 2018 Disaster
Supplemental grant application and may execute any documents as the Economic
Development Administration may reasonably request.
Passed, adopted, and approved this 5th day of September 2023.
Brad M. .y..,argh, Mayor
Attest:
Trish L. Gleason, Assistant City Clerk