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Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Watershed Flood Mitigation Project Copyrighted April 20, 2026 City of Dubuque ACTION ITEMS # 3. City Council ITEM TITLE: Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Watershed Flood Mitigation Project SUMMARY: City Manager recommending approval to hire engineering consultants, as necessary, to prepare a Benefit-Cost Analysis (BCA), advance the engineering design of the proposed improvements to the 90 percent level, and develop a Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Flood Mitigation Project, specifically for the 17th Street/West Locust Street and Kaufmann Avenue storm sewer improvements, including the $440,000 to complete the application. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo, BRIC Grant, Bee Branch 17th-WLocust & Kaufmann, 4-2026 Page 751 of 901 Dubuque THE CITY OF � uhA�eMa cin DuB E ; . � , I � � I. Maste iece on the Mississi t 2oo�•zoiz•zois �P Pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Watershed Flood Mitigation Project DATE: April 16, 2026 City Engineer Gus Psihoyos and Water & Resource Recovery Center Director Deron Muehring are recommending City Council authorization to proceed with hiring engineering consultants to advance design and complete required analyses in support of a Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Watershed Flood Mitigation Project. In addition, approve $440,000 to complete the required elements of the grant application. The City submitted a Notice of Interest (NOI) to the lowa Homeland Security and Emergency Management by the April 10 deadline for the 2024 and 2025 Federal Emergency Management Agency Building Resilience Infrastructure and Communities (BRIC) program. The Notice of Interest proposed the Bee Branch Creek Watershed Flood Mitigation Project, which includes storm sewer capacity improvements along 17th Street, West Locust Street, and Kaufmann Avenue. The City has since received notification that the project has been advanced and is invited to submit a full Project Application. Advancement to this stage reflects that the project meets initial program eligibility requirements and is considered competitive for further evaluation. As part of the Notice of Interest, the City requested the maximum federal share of $20,000,000. Under Building Resilience Infrastructure and Communities program requirements, this level of federal participation requires a 10 percent state contribution, or $2,000,000. In addition, the program requires a minimum local cost share of 15 percent of the federal request, which in this case would be $3,000,000. The City's Notice of Interest reflected a local match of$12,275,000 which reflects the planned FY27—FY31 Capital Improvement Program (CIP) funding for storm sewer improvements along the 17th Street and West Locust Street corridors. Inclusion of this funding was intended to demonstrate local commitment and strengthen the competitiveness of the grant request. Based on these components, the total project cost submitted with the Notice of Interest was $34,300,000. However, the final scope of the project—and Page 752 of 901 corresponding local match—will be determined based on the results of the Benefit-Cost Analysis. A key requirement of the Building Resilience Infrastructure and Communities application is the preparation of a Benefit-Cost Analysis (BCA) in accordance with Federal Emergency Management Agency guidelines. To be eligible for funding, the project must demonstrate a benefit-cost ratio (BCR) of at least 1.0. This analysis quantifies anticipated benefits such as avoided flood damages, reduced emergency response costs, and protection of infrastructure relative to the cost of the proposed improvements. It is important to note that achieving a benefit-cost ratio of 1.0 or greater is not guaranteed. Benefit-Cost Analysis methodologies vary by federal agency and grant program, and results are highly dependent on the specific assumptions and evaluation criteria required. For example, the City previously completed a Benefit-Cost Analysis in support of a U.S. Department of Transportation grant application, which demonstrated a benefit-cost ratio exceeding 2.0 for improvements along 17th Street and West Locust Street; however, that same analysis did not support inclusion of the Kaufmann Avenue improvements under that program's methodology. The Federal Emergency Management Agency Building Resilience Infrastructure and Communities program utilizes a different methodology, and results may vary accordingly. As such, the outcome of the Benefit-Cost Analysis will directly determine which project components, if any, can be competitively advanced within the application. The project scope to be included in the Building Resilience Infrastructure and Communities application will therefore be developed through a combination of identified system needs and the results of the Benefit-Cost Analysis. At this time, the City anticipates evaluating a series of improvement segments, including: (1) storm sewer improvements along 17th Street at the downstream end near Bee Branch Creek, including conveyance beneath the railroad corridor; (2) storm sewer improvements along 17th Street from Heeb Street west to West Locust Street; (3) storm sewer improvements along West Locust Street extending northwest, with potential termini at Angela Street, Kirkwood Street, or Rosedale Avenue; and (4) storm sewer improvements along Kaufmann Avenue from Klein Street west to Kane Street. Each of these segments represents a definable increment of flood mitigation benefit and carries an associated capital cost. The estimated construction costs for each of the identified improvement segments are summarized in the table below. These costs represent planning-level estimates and will be refined as design advances. Est. Project Segment Description Construction Cost 17th Street— Storm sewer improvements at the downstream Downstream (Creek end of 17th Street, including conveyance $5,500,000 Crossing) beneath the railroad corridor to Bee Branch Creek 2 Page 753 of 901 Est. Project Segment Description Construction Cost 17th Street — Heeb Storm sewer improvements extending west Street to W. Locust from Heeb Street to West Locust Street $10,500,000 Street W. Locust Street — Storm sewer improvements along West Locust �5,800,000 Heeb to Angela Street from Heeb Street to Angela Street W. Locust Street — Storm sewer improvements along West Locust �5,600,000 Angela to Kirkwood Street from Heeb Street to Kirkwood Street W. Locust Street— Storm sewer improvements along West Locust Kirkwood to Rosedale Street from Heeb Street to Rosedale Avenue $11,300,000 (full buildout option) Kaufmann Ave — Storm sewer improvements along Kaufmann �15,800,000 Klein to Kane Avenue from Klein Street to Kane Street TOTAL $54,500,000 The Benefit-Cost Analysis will be used to evaluate which improvement segments, or combinations of segments, can be supported under Federal Emergency Management Agency's methodology and competitively advanced through the Building Resilience Infrastructure and Communities application process. As a result, the final scope of improvements included in the application will be informed by both system needs and the outcome of the Benefit-Cost Analysis. The City must also coordinate closely with lowa Homeland Security and Emergency Management, which serves as the State's administrator for the Building Resilience Infrastructure and Communities program. lowa Homeland Security and Emergency Management provides technical guidance and review throughout the application process to ensure submissions meet Federal Emergency Management Agency requirements prior to advancement. This coordination is critical, as applications submitted through lowa Homeland Security and Emergency Management are expected to be complete and technically sound, allowing Federal Emergency Management Agency to focus on scoring and ranking rather than resolving deficiencies. lowa Homeland Security and Emergency Management has established a deadline of May 22, 2026, for completion of the Benefit-Cost Analysis and Cost Effectiveness Determination (Go/No-Go decision). This provides the City with approximately 30 days to complete a Benefit-Cost Analysis in accordance with Federal Emergency Management Agency methodology and determine whether the project can advance to full application. Given this compressed timeline, immediate action is required to procure engineering services. Based on similar efforts and the accelerated schedule required, the estimated cost to complete the Benefit-Cost Analysis, including evaluation of multiple project scenarios, is approximately $100,000. In addition, engineering consultants will be asked to advance the project plans to the 90 percent design level by July 15, 2026, which is the deadline for submission of the competitive final draft to Federal Emergency Management Agency. Based on 3 Page 754 of 901 coordination with engineering firms, the estimated cost to complete this level of design is approximately $340,000. Even if this grant application is not successful the city will be able to use these designs when funding is identified to complete these projects. To support this effort, it is proposed that funding be provided through Downtown Tax Increment Financing (TIF) internal loan funding. Specifically, approximately $1.7 million in FY27 Downtown TIF internal loan funding had previously been proposed for deferral to FY28 in anticipation of potential property tax reform impacts. Given the time-sensitive nature of this opportunity, a portion of these funds could be utilized to support the required engineering services. This approach allows the City to advance a competitive federal grant application while leveraging existing planned resources and maintaining flexibility for future funding decisions. Advancing the design to the 90 percent level not only strengthens the grant application by improving cost certainty and clearly defining project scope but also provides lasting value to the City independent of the grant outcome by positioning the project to move more efficiently toward bidding once a viable funding strategy is assembled. They recommend that the City proceed with hiring engineering consultants to develop a Benefit-Cost Analysis (BCA) in accordance with Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) program requirements and to advance the engineering design of the proposed improvements to the 90 percent level. These efforts are necessary to determine project eligibility, support a competitive grant application, and position the project for timely implementation upon identification of a viable funding strategy. I concur with the recommendation and respectfully recommend approval to hire engineering consultants, as necessary, to prepare a Benefit-Cost Analysis (BCA), advance the engineering design of the proposed improvements to the 90 percent level, and develop a Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Flood Mitigation Project, specifically for the 17th Street/West Locust Street and Kaufmann Avenue storm sewer improvements, including the $440,000 to complete the application. 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, Water & Resource Recovery Center Director Jenny Larson, Chief Financial Officer Laura BendorF, Budget Manager Anderson Sainci, Director of Strategic Partnerships 4 Page 755 of 901 Arielle Swift, Public Works Director Christopher Lester, Water Department Director Teri Goodmann, Consultant 5 Page 756 of 901 Dubuque THE CITY OF � All•A�eriea Cil� D B E .�����,��n� , U ' I I��� � � Maste iece on the Mississi i zao�.zoiz�zoi3 �P pp zoi��zoi9 TO: Michael Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer Deron Muehring, Water & Resource Recovery Center Director SUBJECT: Authorization to Proceed with Engineering Services for Bee Branch Creek Flood Mitigation Project FEMA Grant Application DATE: April 16, 2026 INTRODUCTION The purpose of this memo is to request authorization to proceed with hiring engineering consultants to advance design and complete required analyses in support of a Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Watershed Flood Mitigation Project. BACKGROUND Between 1999 and 2011, there were six Presidential Disaster Declarations which impacted the Bee Branch Creek Watershed. The Drainage Basin Master Plan was completed and adopted by the City Council in 2001. It identified a flood-prone area with over 1,000 properties. And according to a subsequent study in 2009 by the Federal Emergency Management Agency (FEMA), there are 1,373 properties in the flood prone, at-risk area. In addition to homes, there are over 70 businesses in the at-risk area with over $500 million in annual sales. The flood prone area in the Bee Branch Watershed encompasses historic neighborhoods offering some of the community's most affordable workforce housing. Most residents are working families, many are elderly --those least likely to recover from repetitive flood loss. Repetitive flood damage leads to disinvestment: from 2004 to 2009, while commercial property values grew by 39% citywide, they fell by 6% in the Bee Branch Watershed flood prone area. Since 2001, the City has been working to implement the improvements outlined in the Drainage Basin Master Plan. In November of 2013, the City Council passed Resolution 335-13 adopting the 2013 Drainage Basin Master Plan Amendment. The amended Drainage Basin Master Plan 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. Page 757 of 901 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) 1/3 of alleys converted to "Green Alleys" 7 Upper Bee Branch Creek Restoration Complete g 22�d Street Storm Sewer Improvements Complete to west of N. Main St. 9 Flood Mitigation Maintenance Facility Cleanup Initiated 10 North End Storm Sewer Improvements Funding scheduled for FY28 11 Water Plant Flood Protection Funding for design available in FY26 12 17'h Street Storm Sewer Improvements Complete from Elm St. to Heeb St. The multi-phased Bee Branch Watershed Flood Mitigation Project represents a fiscally responsible investment that reflects a holistic approach to mitigate flooding: improving water quality, stimulating investment, and enhancing the quality of life of watershed residents. On December 4, 2013, the lowa Flood Mitigation Board voted to approve the City's use of$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. With a total estimated cost of $250 million, the Bee Branch Watershed Flood Mitigation Project will prevent an estimated $582 million in damage over the 100-year design life of the project. With more than $163 million in state and federal funding assistance, every dollar invested by Dubuque citizens will prevent nearly seven dollars in flood damage. DISCUSSION The City submitted a Notice of Interest (NOI) to the lowa Homeland Security and Emergency Management by the April 10 deadline for the 2024 and 2025 Federal Emergency Management Agency Building Resilience Infrastructure and Communities (BRIC) program. The NOI proposed the Bee Branch Creek Watershed Flood Mitigation Project, which includes storm sewer capacity improvements along 17th Street, West Locust Street, and Kaufmann Avenue. The City has since received notification that the project has been advanced and is invited to submit a full Project Application. Advancement to this stage reflects that the project meets initial program eligibility requirements and is considered competitive for further evaluation. As part of the NOI, the City requested the maximum federal share of$20,000,000. Under BRIC program requirements, this level of federal participation requires a 10 percent state contribution, or$2,000,000. In addition, the program requires a minimum local cost share of 15 percent of the federal request, which in this case would be $3,000,000. The City's NOI reflected a local match of $12,275,000 which reflects the planned FY27— Page 758 of 901 FY31 Capital Improvement Program (CIP) funding for storm sewer improvements along the 17th Street and West Locust Street corridors. Inclusion of this funding was intended to demonstrate local commitment and strengthen the competitiveness of the grant request. Based on these components, the total project cost submitted with the NOI was $34,300,000. However, the final scope of the project—and corresponding local match— will be determined based on the results of the Benefit-Cost Analysis. A key requirement of the BRIC application is the preparation of a Benefit-Cost Analysis (BCA) in accordance with FEMA guidelines. To be eligible for funding, the project must demonstrate a benefit-cost ratio (BCR) of at least 1.0. This analysis quantifies anticipated benefits such as avoided flood damages, reduced emergency response costs, and protection of infrastructure relative to the cost of the proposed improvements. It is important to note that achieving a BCR of 1.0 or greater is not guaranteed. Benefit- Cost Analysis methodologies vary by federal agency and grant program, and results are highly dependent on the specific assumptions and evaluation criteria required. For example, the City previously completed a BCA in support of a U.S. Department of Transportation grant application, which demonstrated a BCR exceeding 2.0 for improvements along 17th Street and West Locust Street; however, that same analysis did not support inclusion of the Kaufmann Avenue improvements under that program's methodology. The FEMA BRIC program utilizes a different methodology, and results may vary accordingly. As such, the outcome of the BCA will directly determine which project components, if any, can be competitively advanced within the application. The project scope to be included in the BRIC application will therefore be developed through a combination of identified system needs and the results of the Benefit-Cost Analysis. At this time, the City anticipates evaluating a series of improvement segments, including: (1) storm sewer improvements along 17th Street at the downstream end near Bee Branch Creek, including conveyance beneath the railroad corridor; (2) storm sewer improvements along 17th Street from Heeb Street west to West Locust Street; (3) storm sewer improvements along West Locust Street extending northwest, with potential termini at Angela Street, Kirkwood Street, or Rosedale Avenue; and (4) storm sewer improvements along Kaufmann Avenue from Klein Street west to Kane Street. Each of these segments represents a definable increment of flood mitigation benefit and carries an associated capital cost. The estimated construction costs for each of the identified improvement segments are summarized in the table below. These costs represent planning-level estimates and will be refined as design advances. Est. Project Segment Description Construction Cost 17th Street— Storm sewer improvements at the downstream end of 17th Downstream (Creek Street, including conveyance beneath the railroad corridor $5,500,000 Crossing) to Bee Branch Creek 17th Street— Heeb Storm sewer improvements extending west from Heeb Street to W. Locust Street to West Locust Street $10,500,000 Street Page 759 of 901 Est. Project Segment Description Construction Cost W. Locust Street— Storm sewer improvements along West Locust Street from $5,800,000 Heeb to Angela Heeb Street to Angela Street W. Locust Street— Storm sewer improvements along West Locust Street from $5,600,000 Angela to Kirkwood Heeb Street to Kirkwood Street W. Locust Street— Storm sewer improvements along West Locust Street from �11,300,000 Kirkwood to Rosedale Heeb Street to Rosedale Avenue (full buildout option) Kaufmann Ave— Klein Storm sewer improvements along Kaufmann Avenue from $15,800,000 to Kane Klein Street to Kane Street TOTAL $54,500,000 The Benefit-Cost Analysis will be used to evaluate which improvement segments, or combinations of segments, can be supported under FEMA's methodology and competitively advanced through the BRIC application process. As a result, the final scope of improvements included in the application will be informed by both system needs and the outcome of the BCA. The City must also coordinate closely with lowa Homeland Security and Emergency Management, which serves as the State's administrator for the BRIC program. IHSEM provides technical guidance and review throughout the application process to ensure submissions meet FEMA requirements prior to advancement. This coordination is critical, as applications submitted through IHSEM are expected to be complete and technically sound, allowing FEMA to focus on scoring and ranking rather than resolving deficiencies. IHSEM has established a deadline of May 22, 2026, for completion of the Benefit-Cost Analysis and Cost Effectiveness Determination (Go/No-Go decision). This provides the City with approximately 30 days to complete a BCA in accordance with FEMA methodology and determine whether the project can advance to full application. Given this compressed timeline, immediate action is required to procure engineering services. Based on similar efforts and the accelerated schedule required, the estimated cost to complete the BCA, including evaluation of multiple project scenarios, is approximately $100,000. In addition, engineering consultants will be asked to advance the project plans to the 90 percent design level by July 15, 2026, which is the deadline for submission of the competitive final draft to FEMA. Based on coordination with engineering firms, the estimated cost to complete this level of design is approximately $340,000. To support this effort, it is proposed that funding be provided through Downtown Tax Increment Financing (TIF) internal loan funding. Specifically, approximately $1.7 million in FY27 Downtown TIF internal loan funding had previously been proposed for deferral to FY28 in anticipation of potential property tax reform impacts. Given the time-sensitive nature of this opportunity, a portion of these funds could be utilized to support the required engineering services. This approach allows the City to advance a competitive Page 760 of 901 federal grant application while leveraging existing planned resources and maintaining flexibility for future funding decisions. Advancing the design to the 90 percent level not only strengthens the grant application by improving cost certainty and clearly defining project scope but also provides lasting value to the City independent of the grant outcome by positioning the project to move more efficiently toward bidding once a viable funding strategy is assembled. BUDGET IMPACT The estimated cost to complete the required engineering services includes approximately $100,000 for preparation of the Benefit-Cost Analysis (BCA) and approximately $340,000 to advance project design to the 90 percent level, for a total estimated cost of$440,000. To proceed with this effort, funding would come from the Downtown Tax Increment Financing (TIF) internal loan funding. Specifically, there is approximately $1.7 million in FY27 Downtown TIF internal loan funding that was proposed to roll into FY28 in anticipation of potential property tax reform impacts. A portion of these funds be utilized to fund the engineering services to develop the FEMA BRIC grant BCA and advance the design plans to 90%. RECOMMENDATION We recommend that the City proceed with hiring engineering consultants to develop a Benefit-Cost Analysis (BCA) in accordance with Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) program requirements and to advance the engineering design of the proposed improvements to the 90 percent level. These efforts are necessary to determine project eligibility, support a competitive grant application, and position the project for timely implementation upon identification of a viable funding strategy. ACTION REQUESTED We respectfully request authorization to hire engineering consultants, as necessary, to prepare a Benefit-Cost Analysis (BCA), advance the engineering design of the proposed improvements to the 90 percent level, and develop a Federal Emergency Management Agency (FEMA) Building Resilience Infrastructure and Communities (BRIC) grant application for the Bee Branch Creek Flood Mitigation Project, specifically for the 17th Street/West Locust Street and Kaufmann Avenue storm sewer improvements. We further request authorization to utilize Downtown Tax Increment Financing (TIF) internal loan funding, specifically a portion of the approximately $1.7 million in FY27 funding previously proposed for deferral to FY28, to support these efforts. CC: Jenny Larson, Chief Financial Officer Anderson Sainci, Director of Strategic Partnerships Bob Schiesl, Assistant City Engineer Page 761 of 901