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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 THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 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 THE CITY OF DUBQTE����� *Aoeriea Gih II Masterpiece on the Mississippi P pp 2°°2 -2013 zo1�*7*Z019i9 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