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Track Line Sanitary Sewer Reconstruction Project - State Revolving Fund Planning & Design Loan Copyrighted April 3, 2025 City of Dubuque CONSENT ITEMS # 3. City Council ITEM TITLE: Track Line Sanitary Sewer Reconstruction Project - State Revolving Fund Planning & Design Loan SUMMARY: City Manager recommending City Council approval of applications for State Revolving Fund (SRF) Planning & Design (P&D) Loans to be considered for inclusion on the State’s Intended Use Plan in June of 2025. SUGGUESTED DISPOSITION: Receive and File; Approve ATTACHMENTS: 1. MVM Memo 2. 2025-03-31_TrackLineSewerRelocate_SRF-P&D-Authorization_StaffMemo 3. P&DLoanApp_TrackLineSewerRelocate Page 385 of 706 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Track Line Sanitary Sewer Reconstruction Project; State Revolving Fund Planning & Design Loan DATE:March 31, 2025 Assistant City Engineer Bob Schiesl is recommending City Council approval of applications for State Revolving Fund (SRF) Planning & Design (P&D) Loans to be considered for inclusion on the State’s Intended Use Plan in June of 2025. This project provides for the phased relocation of 5,150 feet of the 12-inch diameter sanitary sewer that runs along the railroad tracks from Hawthorne Street to Fengler Street. The existing clay tile sewer that was installed in the 1920's still functions; however, the influx of sand and proximity of the adjacent railroad tracks has increasingly made the sewer difficult to maintain and indicates that groundwater is infiltrating into the pipe. The sewer has multiple failing sections and is undersized from hydraulic modeling results. Proximity to the adjacent railroad prohibits access for maintenance or rehabilitation activities. The sewer requires relocation to City right of way, with redirection of private laterals. The project is located adjacent to Consent Decree Sewershed 10. The funding request will provide for the initial phase design, permitting, and easement acquisition for the relocation of the track line sewer located between Hawthorne St and Roosevelt St. Page 386 of 706 2 I concur with the recommendation and respectfully request Mayor and City Council approval. _____________________________________ Michael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Bob Schiesl, Assistant City Engineer Maxwell O’Brien, Civil Engineer Jennifer Larson, Chief Financial Officer Todd Irwin, Water Resources Project Supervisor Page 387 of 706 TO: Michael C. Van Milligen, City Manager FROM: Bob Schiesl, Assistant City Engineer DATE: March 31, 2025 SUBJECT: Track Line Sanitary Sewer Reconstruction Project; State Revolving Fund Planning & Design Loan INTRODUCTION The purpose of this memorandum is to present for consideration the submittal of applications for State Revolving Fund (SRF) Planning & Design (P&D) Loans by the April 7, 2025 deadline so that they might be considered for inclusion on the State’s Intended Use Plan in June of 2025. BACKGROUND The proposed FY26 CIP budget includes funds to begin the design of this project utilizing SRF funds. In order for a project to be financed using an SRF loan, it must be approved and listed by the State on the SRF Intended Use Plan (IUP). The next SRF P&D loan application deadline is April 7, 2025 in order for a project to be placed on the IUP, which is updated quarterly: in March, June, September, and December. If approved, the project would be placed on the IUP in June 2025. Approved P&D loans are 0% interest for up to three years to cover the costs of engineering to prepare facility plans and project plans & specifications. The loans are then typically rolled into a SRF construction loan or repaid by another source of permanent financing. Being listed on the State IUP does not automatically obligate the City to issue debt or incur costs related to the projec t. If the City chose not to move ahead with the project, or to fund it through alternate means, the City could request to be removed from the IUP. It is important to note that any costs incurred under the P&D loan from the time the project was added to the IUP and the request to be removed would require repayment to the State at the time of request to be removed from the IUP. If approved to submit the P&D loan application for the April 7, 2025 deadline to be placed on the SRF IUP in June 2025, the City will then have the ability to proceed with this project design process in early FY26, facilitating the correction of the existing system deficiencies and allowing for capacity for future development in the City. Page 388 of 706 2 DISCUSSION This project provides for the phased relocation of 5,150 feet of the 12 -inch diameter sanitary sewer that runs along the railroad tracks from Hawthorne Street to Fengler Street. The existing clay tile sewer that was installed in the 1920's still functions; however, the influx of sand and proximity of the adjacent railroad tracks has increasingly made the sewer difficult to maintain and indicates that groundwater is infiltrating into the pipe. The sewer has multiple failing sections and is undersized from hydraulic modeling results. Proximity to the adjacent railroad prohibits access for maintenance or rehabilitation activities. The sewer requires relocation to City right of way, with redirection of private laterals. The project is located adjacent to Consent Decree Sewershed 10. The funding request will provide for the initial phase design, permitting, and easement acquisition for the relocation of the track line sewer located between Hawthorne St and Roosevelt St. The desired project schedule for the initial phase is as follows: City Council Authorization April 3, 2025 P&D Loan Application April 7, 2025 SRF IUP June 2025 City Council RFQ Initiate August 4, 2025 Design Service RFQ Advertise: August 8, 2025 Questions Due: September 9, 2025 Response Addendum Due: September 11, 2025 Qualifications Due: September 18, 2025 Committee Review & Shortlist: September 22, 2025 thru September 26, 2025 Shortlist Interviews: September 29, 2025 thru October 3, 2025 Recommendation to City Manager: October 14, 2025 City Council Award: October 20, 2025 Contract Scope Submittal: November 14, 2025 Recommendation to City Manager: November 25, 2025 City Council Approval: December 1, 2025 SRF Facility Plan Submittal Due: February 27, 2026 Final Contract Documents Complete: October 26, 2026 All Permits Acquired: October 26, 2026 Council Initiate: November 2, 2026 Bid Advertisement: November 6, 2026 Council set Public Hearing: November 16, 2026 Council Advertise for Public Hearing: November 20, 2026 Public Hearing: December 7, 2026 Bid Opening: December 10, 2026 Council Bid Award: December 21, 2026 Construction/Contract Start: January 1, 2027 Construction End: December 31, 2028 Page 389 of 706 3 BUDGET IMPACT The total P&D loan request is summarized as follows: Description Estimate Administrative, Financial & Legal expenses $ 20,000 Engineering Planning & Design expenses $ 360,000 Land (only after Environmental Review Clears) $ 100,000 Equipment $ 20,000 Total Planning & Design Loan Request $ 500,000 The total project funding requested in the FY26 CIP budget is summarized as follows: Track Line Sanitary Sewer Reconstruction Project Funding Fund Source FY26 FY27 FY28 FY29 FY30 SRF Loan $ 500,00 $1,000,000 $1,500,000 $1,000,000 $1,000,000 The attached P&D Loan application have been reviewed and approved by Director of Finance and Budget Jenny Larson and Bond Counsel (Dorsey & Whitney LLP). ACTION TO BE TAKEN I respectfully request review of the attached SRF P&D loan applications. If acceptable, please sign and return to Engineering so the applications can be submitted by the April 7, 2025 P&D loan application deadline so that they might be considered for inclusion on the State’s Intended Use Plan in June of 2025 Prepared by Maxwell O’Brien, Civil Engineer cc: Jenny Larson, Chief Financial Officer Todd Irwin, Water Resources Project Supervisor Maxwell O’Brien, Civil Engineer Gus Psihoyos, City Engineer Page 390 of 706 4/21/21 Iowa Finance Authority, 1963 Bell Ave, Suite 200, Des Moines, IA 50315 Planning and Design Loan Application Applicant Information Applicant: Tax ID Number: Contact Person and Title: Street Address: State: City: Zip Code: Telephone Number: County: E-Mail: Project and System Information Clean Water SRF NPDES Number: Drinking Water SRF PWSID Number: Please write a brief description of the proposed project: Is the system under any regulatory compliance order? Yes No Anticipated Construction Start Date: Anticipated Completion Date: How many people are served by the system: System Utilization for the most recent year: Number of Connections Annual Revenue Percentage of System Annual Usage Residential Commercial Industrial Other Unmetered Total Page 391 of 706 4/21/21 Iowa Finance Authority, 1963 Bell Ave, Suite 200, Des Moines, IA 50315 Anticipated Funding Information SRF construction loan? Yes No Community Development Block Grant (CDBG)? Yes No USDA-Rural Development (RD) Grant or Loan? Yes No Other Professional Consultants Project Engineer Firm: Name of Contact: Email: Phone: Bond Counsel: Name of Contact: Email: Phone: Municipal Advisor: Name of Contact: Email: Phone: This application must be accompanied by the applicants most recent financial statement. If your financial information is available online, you may just provide a link: The undersigned is duly authorized to request this loan on behalf of the Applicant. The Applicant declares under penalty of law that all facts given, and information attached are true and correct. The Applicant authorizes IFA to verify all information. Authorized Signature Date Typed Name and Title Completed application can be emailed to Iowa Finance Authority SRF Program Staff: waterquality@iowafinance.com 515 452-0400 Administrative, Financial & Legal expenses $ Engineering Planning & Design expenses $ Land (only after Environmental Review Clears) $ Archaeological/Environmental $ Equipment $ Other- $ Other- $ Total Planning and Design Costs $ Planning and Design Loan Request $ 20,000 360,000 100,000 - 20,000 - - 500,000 500,000 City of Dubuque, Engineering Department Maxwell O'Brien mobrien@cityofdubuque.org 563-589-4270 Dorsey & Whitney LLP Emily Hammond hammond.emily@dorsey.com 515-697-3636 Independent Public Advisors Tionna Pooler tpooler@independentpublicadvisors.com 515-259-8193 04/04/2025 Mike Van Milligen, City Manager