FY26 Budget Amendment No. 2 Request, Reallocation of Sanitary Construction Funds to support Various Sanitary Sewer Fund Projects Identified as High PriorityCity of Dubuque
City Council
CONSENT ITEMS # 17.
Copyrighted
March 2, 2026
ITEM TITLE: FY26 Budget Amendment No. 2 Request, Reallocation of
Sanitary Construction Funds to support Various Sanitary
Sewer Fund Projects Identified as High Priority
SUMMARY: City Manager recommending approval to reallocate sanitary
sewer funding from Schmitt Island Sanitary Improvements
(Project CIP # 5581500049) to the following sanitary sewer
fund projects that have been identified as high priority due to
prioritization of sewer system needs or to meet anticipated
development schedules: $700,000 to Brunskill Rd Collector
Sewer Recon (Project CIP #5581500045) and $900,000 to
Greeley St Sewer Recon (Project CIP # to be determined).
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
Page 434 of 939
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: FY26 Budget Amendment No. 2 Request, Reallocation of Sanitary
Construction Funds to support Various Sanitary Sewer Fund Projects
Identified as High Priority
DATE: February 26, 2026
Assistant Public Works Director - Project Manager Maxwell O'Brien is recommending
City Council approval to reallocate sanitary sewer funding from Schmitt Island Sanitary
Improvements (Project CIP # 5581500049) to the following sanitary sewer fund projects
listed below that have been identified as high priority due to prioritization of sewer
system needs or to meet anticipated development schedules:
- $700,000 from Schmitt Island Sanitary Improvements (Project CIP
#5581500049) to Brunskill Rd Collector Sewer Recon (Project CIP
#5581500045)
$900,000 from Schmitt Island Sanitary Improvements (Project CIP
#5581500049) to Greeley St Sewer Recon (Project CIP # to be determined)
Reallocating the sanitary sewer construction funding from the Schmitt Island Sanitary
Improvement Project to the above listed high priority sanitary fund projects (2 total) will
facilitate the accelerated schedules required for each project to address known
maintenance and I&I concerns throughout the City.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
S4-zn,-
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Arielle Swift, Public Works Director
Maxwell O'Brien, Assistant Public Works Director - Project Manager
Jenny Larson, Chief Financial Officer
Page 435 of 939
Laura Bendorf, Budget Manager
Arielle Swift, Public Works Director
Gus Psihoyos, City Engineer
Todd Irwin, Water Resources Project Supervisor
Chris Lester, Water Department Director
Eldon Schneider, Water Project Supervisor
2
Page 436 of 939
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Maxwell O'Brien, Assistant Public Works Director — Project Manager
SUBJECT: FY26 Budget Amendment No. 2 Request, Reallocation of Sanitary
Construction Funds to support Various Sanitary Sewer Fund Projects
Identified as High Priority
DATE: February 26, 2026
INTRODUCTION
The purpose of this memo is to seek approval to reallocate sanitary sewer funding from
Schmitt Island Sanitary Improvements (Project CIP # 5581500049) to the following sanitary
sewer fund projects listed below that have been identified as high priority due to prioritization
of sewer system needs or to meet anticipated development schedules:
o Brunskill Rd Collector Sewer Recon (Project CIP # 5581500035)
o Greeley Street Sewer Recon (Project CIP # to be determined)
BACKGROUND
The Schmitt Island Sanitary Improvements Project had an original CIP allocation of
$2,640,000 in sanitary sewer construction funding, as well as $218,380 in ARPA funding, to
design and to construct the sanitary sewer improvements for the north half of Schitt Island.
On May 7, 2024, the City advertised a Request for Qualifications (RFQ) to retain a
professional service consultant to aid the City in further evaluating the existing collection and
pumping systems that transport sanitary sewage in the Dog Track Lift Station sewer service
area, develop a facility plan with phased improvements to address identified high risk
infrastructure within the sewer service area, and to design and construct the recommended
improvements. Due to the complexity of this project, it was determined that the project will
be split into multiple task orders, with the initial task order encompassing data collection,
alternatives analysis, and the stakeholder engagement process. Results of the initial task
order will determine the additional design and construction related task orders required to
complete the project. On December 18, 2024, the City entered into the second task order
for the detailed design and bidding services phase of the project.
The detailed design progressed and was nearing advertisement for construction. In October
2025, the project was presented to the Schmitt Island Design Review Committee for final
approval, however it was determined by the representatives from the Dubuque Racing
Association (DRA) that the proposed lift station location was no longer acceptable. Staff met
with members of the DRA and it was determined in November 2025 that the lift station would
be relocated and the system improvements would be redesigned to accommodate the new
lift station location. Staff has identified an alternate less expensive interim design that will
only need some of the funds and will most certainly last for years. This includes installation
of a series of grinder e-one pumps and small diameter force mains that would allow the City
Page 437 of 939
to abandon the existing casino lift station that has history of significant maintenance and
odor issues. Staff preliminarily estimates that this additional work to abandon the existing lift
station can be completed for approximately $300,000, possibly ahead of the amphitheater
project grand opening in June 2026.
There are approximately $2.2M of sanitary sewer construction funds available within the
project that will not be able to be fully encumbered before the end of the fiscal year. Staff
are recommending that approximately $500,000 of those funds remain with the project to
account for the above described ongoing efforts, but the remaining approximately $1.7M of
funds be reallocated to other high risk sewer projects identified by staff.
DISCUSSION
The first project identified is the Brunskill Rd Collector Sewer Recon (CIP 5581500045). This
project provides for the reconstruction of the sanitary sewer collector located just north of
Brunskill Road from the Brunskill Road Bridge 800 feet to the East. This will address the
maintenance concerns regarding root intrusion and reduce the inflow and infiltration
identified in this portion of the sanitary sewer system. This project will also stabilize and
protect the sanitary sewer from creek flows. Currently, segments of the sewer are exposed
within the creek embankments. The project was previously funded, however funds were
utilized to in 2024 to repay expired SRF loans for other sanitary sewer project.
Funds for this project have been requested in FY26 and FY27, however it has remained
below the line in overall priorities. Completion of this project will address major maintenance
concerns and help to reduce inflow and infiltration (W) within the North Fork Catfish Creek
sewer basin, which is currently exceeding capacity and limiting the City's ability to accept
flows from new developments within the basin. Reallocation of the existing FY26 funds from
the Schmitt Island Sanitary project to this project would allow the removal of the FY27 CIP
request.
The second project identified is the Greeley St Sewer Recon (CIP to be determined). This
project provides for the reconstruction of approximately 650 feet (existing alignment) of 6-
inch diameter vitrified clay sanitary sewer along Broadway Street and south of Broadway
Street. The existing 6-inch sewer will be replaced with 8-inch diameter PVC sanitary sewer.
The existing 6-inch diameter vitrified clay sanitary sewer has been identified as failed and
causing undermines in the roadway. The extent of failure to the sanitary sewer prevents
singular point repairs and requires full replacement, which will also require relocation of the
water main to provide for compliant separation distances from the sanitary sewer. This
roadway was identified in the mill and overlay program, however utility replacements will be
necessary prior to resurfacing or reconstruction of the roadway. Since the initial FY27 CIP
request submittal, the sewer has further deteriorated and additional undermines have
opened in the roadway, causing safety concerns to the traveling public and adjacent
residents. Reallocation of the existing FY26 funds from the Schmitt Island Sanitary project
to this project would allow the removal of the FY27 CIP request.
This request was originally submitted January 26, 2026. A meeting to discuss was requested
by the City Manager's Office, which was scheduled and held on February 3, 2026. After this
meeting, this item was also discussed in sanitary sewer budget review meetings and related
discussions on February 6, 2026 and February 17, 2026. During the discussion on February
Page 438 of 939
17, 2026, this proposal was verbally accepted and direction was provided to move forward.
The original January 26, 2026 memorandum has been updated to note the dates of the
follow up discussions.
RECOMMENDATION
I recommend reallocating the following sanitary sewer construction funding amounts-
- $700,000 from Schmitt Island Sanitary Improvements (Project CIP #5581500049) to
Brunskill Rd Collector Sewer Recon (Project CIP #5581500045)
- $900,000 from Schmitt Island Sanitary Improvements (Project CIP #5581500049) to
Greeley St Sewer Recon (Project CIP # to be determined)
BUDGETIMPACT
If approved, the FY26 Budget Amendment No. 2 would reflect reallocating the funding
amounts summarized by funding source in the table below:
CIP
Project
Fund
Balance as of
Proposed
Amendment
Source
January 21, 2026
Amendment
#2 Balance
Schmitt Island
Sanitary
5581500049
SanitarySewer
Construction
$2,176,918.42
($1,600,000)
$576,918.42
Improvements
Funds 611
Brunskill Rd
Sanitary
5581500045
Collector Sewer
Sewer
Construction
$0
$700,000.00
$700,000.00
Recon
Funds 611
Sanitary
TBD
Greeley St Sewer
Sewer
$0
$900,000.00
$900,000.00
Recon
Construction
Funds (611)
Reallocating the sanitary sewer construction funding from the Schmitt Island Sanitary
Improvement Project to the above listed high priority sanitary fund projects (2 total) will
facilitate the accelerated schedules required for each project to address known maintenance
and I&I concerns throughout the City.
Page 439 of 939
ACTION TO BE TAKEN
I respectfully request approval to reallocate funding amounts as described above as part of
the upcoming FY26 Budget Amendment #2 and to assign a new CIP # for the Greeley St
Sewer Recon project.
Prepared by Maxwell O'Brien
cc: Jenny Larson, Chief Financial Officer
Laura Berndorf, Budget Manager
Arielle Swift, Public Works Director
Gus Psihoyos, City Engineer
Todd Irwin, Water Resources Project Supervisor
Chris Lester, Water Department Director
Eldon Schneider, Water Project Supervisor
Page 440 of 939