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Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project - (Catfish Creek Middle Fork) Consulting Engineering Services Contract Execution TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) [CIP #5581500053] Consulting Engineering Services Contract Execution DATE: September 22, 2025 City Engineer Gus Psihoyos is recommending City Council execution the negotiated contract with HDR Engineering for engineering services for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). On August 4, 2025, The Engineering Department requested authorization to negotiate an engineering services contract with HDR Engineering to provide for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). The Engineering Department has successfully negotiated a scope of services and fees, with HDR Engineering, for engineering services that will provide for the City’s overall project objectives and long-term goals of the sanitary sewer system. The project design will be funded with revenue from a State Revolving Fund (SRF) Planning and Design (P&D) Loan in the amount of $3,600,000 for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) [CIP# 5581500053]. The specific design fee will be negotiated. 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 Page 3 of 701 2 Gus Psihoyos, City Engineer Jenny Larson, Chief Financial Officer Laura Bendorf, Budget Manager Todd Irwin, Water Resources Project Supervisor Maxwell O’Brien, Civil Engineer Page 4 of 701 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer DATE: September 22, 2025 SUBJECT: Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) [CIP #5581500053] Consulting Engineering Services Contract Execution INTRODUCTION The purpose of this memo is to seek execution of the negotiated design contract with HDR Engineering to provide engineering services for the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). BACKGROUND The Fiscal Year 2026 proposed CIP Catfish Creek Sewershed Interceptor Sewer Improvements – Middle Fork (now referred to as “Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork)”) [CIP# 5581500053] budget includes a total budget $23,800,00.00 for the project design and construction, with revenue from State Revolving Fund Loans and Sanitary Sewer Construction Funds. The initial project efforts in FY26 will be for the design and permitting of the project. This project provides for systematic upgrades to the Catfish Creek Sanitary Interceptor Sewer system which branches out along the Middle Fork Catfish creek. The system will also be upsized along the Middle Fork Catfish Creek from Old Mill Road 9.9 miles to the Dubuque Industrial Center West. The Catfish Creek Interceptor Sewer was constructed circa 1960. Extending westward from the Water & Resource Recovery Center, it has allowed for the development of nearly 2,500 acres over the last two decades which includes residential subdivisions, the Dubuque Industrial Center West, and service to the Dubuque Metro Solid Waste Agency. The existing sanitary sewer was identified as being at or exceeding capacity. The funding request will provide for the design, permitting, and easement acquisition for sewer upsizing along the Middle Fork interceptor from Old Mill Road to Brunskill Road. On June 6, 2025, the City advertised a Request for Qualifications (RFQ) to retain a professional service consultant to aid the to assist with the development of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). Page 5 of 701 2 On August 4, 2025, The Engineering Department requested authorization to negotiate an engineering services contract with HDR Engineering to provide for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). DISCUSSION The Engineering Department has successfully negotiated a scope of services and fees, with HDR Engineering, for engineering services that will provide for the City’s overall project objectives and long-term goals of the sanitary sewer system. The City has received and reviewed the attached Scope of Services from HDR Engineering. The attachments provided describe each task series below in more detail: - Task Series 100: Project Management - Task Series 200: SRF Program & Facility Plan - Task Series 300: Topographic Survey - Task Series 400: Design Phase Services - Task Series 500: Easement & Property Acquisition - Task Series 600: Bidding Phase Services - (As Authorized Services) Task Series 700: Construction Phase Services RECOMMENDATION I recommend that the execution of this contract be placed on the soonest available City Council meeting agenda in order to support the accelerated schedule of this project. I further recommend that the City enter into the engineering services contract with HDR Engineering for engineering services for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). BUDGET IMPACT The project design will be funded with revenue from a State Revolving Fund (SRF) Planning and Design (P&D) Loan in the amount of $3,600,000 for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) [CIP# 5581500053]. The specific design fee will be negotiated. Page 6 of 701 3 The total SRF Planning and Design loan request that was approved by Council during the April 7, 2025 meeting is summarized as follows: Description Estimate Administrative, Financial & Legal expenses $ 100,000 Engineering Planning & Design expenses $ 2,650,000 Land (only after Environmental Review Clears) $ 500,000 Archaeological/Environmental $ 300,000 Equipment $ 50,000 Total Planning & Design Loan Request $ 3,600,000 The total project funding adopted in the FY26 CIP budget is summarized as follows: Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) Funding Fund Source FY26 FY27 FY28 FY29 TOTAL Sanitary Sewer Construction Fund $ 250,000 $ 250,000 $ 0 $ 0 $ 500,000 *SRF Loan Engineering & Design $ 500,000 $1,500,000 $1,300,000 $ 300,000 $23,300,000 *SRF Loan Construction $ 500,000 $4,650,000 $5,950,000 $8,200,000 *SRF Loan Easement & Land Acquisition $ 0 $ 400,000 $ 0 $ 0 $ 400,000 TOTAL $1,250,000 $6,550,000 $7,500,000 $8,500,000 $23,800,000 *Note: The SRF Loan amount shown in the CIP budget reflects both the SRF Planning & Design Loan already acquired in April 2025 as well as the separate SRF Construction Loan to be acquired in the future through the design process, anticipated to be obtained during FY27. Page 7 of 701 4 The estimated fee for each of the identified task series described in the attachments are as follows: Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) Estimated Fee by Task Series and Expenditures by Fiscal Year Task Series Description FY26 FY27 FY28 FY29 Total Fee (Not to Exceed) Task Series 100: $81,876 $71,642 $30,703 $20,469 $204,690 Task Series 200: $153,487 $- $- $- $153,487 Task Series 300: $184,837 $- $- $- $184,837 Task Series 400: $955,837 $514,681 $- $- $1,470,518 Task Series 500: $4,163 $16,652 $- $- $20,815 *Task Series 600: $- $45,567 $- $- $45,567 **Task Series 700: $- $437,580 $729,301 $291,720 $1,458,601 Total Expenditures (Not to Exceed) $1,380,200 $1,086,122 $760,004 $312,189 $3,538,515 *Note: There is a potential that the project will be split into multiple bid packages due to funding or property acquisition schedule. If this occurs, the bidding (task 600) and construction (task 700) fees would increase by ~$50,000 and $500,000 respectively. **Note: Task 700 includes on site construction inspection services by HDR Engineering totaling ~$772,000; this fee will only be awarded as authorized by the City at the time the project is bid for construction. Costs incurred by task series 700 will be paid for under a separate SRF Construction Loan to be acquired in the future through the design process. Page 8 of 701 5 BUDGET COMMITTMENT Due to the magnitude of anticipated costs for this project, and in an effort to keep sanitary sewer utility rates low, the project was funded through multiple fiscal years (FY26-29). The FY26 CIP budget was initially estimated and submitted in late 2024, well prior to the application deadline for the SRF Planning & Design Loan (P&D Loan) on April 1, 2025. The submitted FY26 CIP budget was used as support documentation for the P&D Loan, which was closed in July 2025, with the full amount currently available for the City to utilize for the design of this project. SRF Planning & Design loans are interest free and do not require payments or repayment of the loan amount for up to three years. At the end of the three year period, the P&D Loan must be rolled into the SRF construction loan for the project being designed, or be repaid to the SRF Program. The tables above identify the SRF P&D Loan amount of $3,600,000, of which a portion is intended to fund the HDR design contract Tasks 100 through 600 in the amount of $2,079,914. The remaining balance of the SRF P&D Loan will be utilized to pay for other design related services outside of the HDR Engineering contract, such as staff time and geotechnical investigations. It is important to note that the City Council has already authorized encumbering future fiscal year budgets, for this project, (April 7, 2025 City Council meeting) by authorizing the P&D loan application submittal and closing on the SRF P&D loan. The City Council’s action committed the City to encumbering the future FY26 budget amount and a portion of the future FY27 budget amount for the repayment of the P&D loan. Typically, the repayment amount, of the P&D loan, will be included as part of the SRF construction loan amount. The funding to construct this infrastructure project is currently budgeted for FY27 through FY29. Page 9 of 701 6 BUDGET CORRECTION As shown in the Budget Impact portion of this memo, the anticipated yearly expenditures identified for FY26 will exceed the approved FY26 CIP funding. - Approved FY26 SRF Funding: $1,000,000 - Anticipated FY26 SRF Expenditures for Design: $1,380,200 Since the initial FY26 budget submittal, staff have identified that the FY26 budget expenditure showed $500,000 of Engineering & Design and $500,000 of construction. Construction for this project is not anticipated to begin until at least FY27, so the full $1,000,000 of identified SRF expenditures for this project will be identified for Engineering & Design and not for construction. Again, it is important to note that the P&D Loan was closed in July 2025, with the full amount currently available for the City to utilize for design of this project. The fees for the HDR Engineering contract are within the total amount of the executed P&D Loan. Engineering will be adjusting the requested CIP funding for this project through the FY27 budget request process to include all funding for construction in FY27 so that all budgeted funding is available to support the SRF Construction loan application, and to open a purchase order for the full amount of the construction contract. The table “Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) Funding” under the Budget Impact portion of this memo summarizes the current funding allocations per fiscal year for this project. ACTION TO BE TAKEN I respectfully request execution the negotiated contract with HDR Engineering for engineering services for the design of the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork). Prepared by Maxwell O’Brien, Civil Engineer cc: Jenny Larson, Chief Financial Officer Laura Bendorf, Budget Manager Todd Irwin, Water Resources Project Supervisor Maxwell O’Brien, Civil Engineer Page 10 of 701 Prepared by Gus Psihovos City of Dubuque Engineering 50 W. 1311 St. Dubuque IA 52001 (563) 589-4270 Return to Adrienne N, Breitfelder City Clerk City of Dubuque, 50 W. 13`" St. Dubuque, IA 52001 (563) 589-4100 RESOLUTION NO. 309 - 25 RESOLUTION EXECUTING PROFESSIONAL DESIGN SERVICES CONSULTANT CONTRACT WITH HDR ENGINEERING TO COMPLETE THE OLD MILL ROAD LIFT STATION PHASE 3 SANITARY INTERCEPTOR PROJECT (CATFISH CREEK MIDDLE FORK) WHEREAS, the City in collaboration with HDR Engineering, developed a consultant scope of work and a negotiated fee for design services in the amount of $2,079,914 for Professional Consultant Services to complete the Old Mill Road Lift Station Phase 3 Sanitary Interceptor Project (Catfish Creek Middle Fork) project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, THAT: SECTION 1. The City Manager is authorized and directed to execute the Professional Design Services Consultant Contract with HDR Engineering. Passed, approved, and adopted this 23rd day of September 2025. Attest: Adrienne N. Breitfelder, City Clerk Brad M. Ca ugh, Mayor Page 51 of 701 Page 52 of 701 SECTION VI. SPECIAL PROVISIONS IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. City of Dubuque, Iowa "OWNER" NAME: Mike Van Milligen TITLE: City Manager ADDRESS: 50 West 13th Street Dubuque, IA 52001 HDR ENGINEERING, INC. "ENGINEER" BY: NAME: Ann Williams TITLE: Senior Vice President ADDRESS: 1917 South 67th Street Omaha, NE 68106-2973 Page 54 of 701 Page 55 of 701 Page 56 of 701 Page 57 of 701 Page 58 of 701 Page 59 of 701 Page 60 of 701 Page 61 of 701 Page 62 of 701 Page 63 of 701 Page 64 of 701 Page 65 of 701 Page 66 of 701 Page 67 of 701 Page 68 of 701 Page 69 of 701 Page 70 of 701 Page 71 of 701 Page 72 of 701 Page 73 of 701 Page 74 of 701 Page 75 of 701 Page 76 of 701 Page 77 of 701 Page 78 of 701 Page 79 of 701 Page 80 of 701 Page 81 of 701 Page 82 of 701 Page 83 of 701 Page 84 of 701 Page 85 of 701 Page 86 of 701 Page 87 of 701 Page 88 of 701 Page 89 of 701