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Flexsteel Drainage Improvement Agreement_Second Amendment D~~~E ~c/N.-~ MEMORANDUM --, September 25, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager '. .~. SUBJECT: Flexsteel Drainage Improvement Agreement City Engineer Gus Psihoyos is recommending modification to the terms of the operation and maintenance agreement for the Flexsteel flood control system established in 1992 between Flexsteellndustries, Dubuque County, and the City of Dubuque. Flexsteel Senior Vice President and General Manager Patrick M. Crahan has agreed to these changes and signed the Second Amendment to Flexsteel Drainage Improvement Agreement. I concur with the recommendation and respectfully request Mayor and City Council approval. (IlL! ~ 4{ MiChael c. Van Milligen MCVM/ksf Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer ! DU~~E ~~~ MEMORANDUM September 20, 2006 FROM: Michael C. Van Milligen, City Manageor Gus Psi hoyos, City Engineer ~_ Flexsteel Drainage Improvement Agreement TO: SUBJECT: INTRODUCTION The purpose of this memo is to present Engineering's recommendation to modify the terms of the operation and maintenance agreement for the Flexsteel flood control system established in 1993 between Flexsteellndustries, Dubuque County, and the City of Dubuque. BACKGROUND In the fall of 1993, Flexsteel Industries, Dubuque County, and the City of Dubuque officially formed a partnership to address the drainage in the vicinity of Flexsteel. The City and County each committed to funding an equal third, up to $100,000, for the improvement project that was designed by IIW Engineers. The project was completed in the winter of 1995 for $301 ,672.99. The jointly funded project included sewers to convey stormwater from Olympic Heights, Highway US52, and Jackson Street to the area north of Flexsteel. It also included a levee, detention area, and pump station to prevent flooding from the Sageville drainage ditch. The pumping station consisted of a single 12,000 gallon per minute pump. In 1998, the City discovered that debris had filled the storm sewers that convey stormwater from Olympic Heights and US52. While storm sewers are typically designed to pass sediment that naturally passes through a watershed, the gradient, or slope, of the existing storm sewers from Olympic Heights and US52 makes them susceptible to the buildup of debris. Because of the age and location of the storm sewers, and because the cost of cleaning approaches reconstruction, reconstruction was chosen over cleaning. In 1999, the City budgeted $338,000 to reconstruct the storm sewers that serve Olympic Heights, US52, and Jackson Street. BUDGET IMPACT The City currently pays approximately $1,000 in electrical charges annually for the pump station. Silt removal may be necessary in the next ten years and will likely average out to be less than the annual electrical cost. The annual Detention Basin Silt Removal CIP (7201375) would be adjusted accordingly to cover the cost. ACTION TO BE TAKEN I respectfully request adoption of the attached resolution amending the terms of the Flexsteel Drainage Improvement Agreement for the Flexsteel flood control system established in 1993 between Flexsteel Industries, Dubuque County, and the City of Dubuque through the execution of the attached Second Amendment to Flexsteel Drainage Improvement Agreement. If the City Council executes the Second Amendment to Flexsteel Drainage Improvement Agreement, it will be presented to the Dubuque County Board of Supervisors. Prepared by Deron Muehring cc: Cindy Steinhauser, Assistant City Manager Barry Lindahl, City Attorney Don Vogt, Public Works Director Deron Muehring, Civil Engineer II Prepared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 RESOLUTION NO. 462-06 APPROVING THE SECOND AMENDMENT TO THE FLEXSTEEL DRAINAGE IMPROVEMENT AGREEMENT Whereas, on September 10, 1993, the City of Dubuque, Iowa (City), the County of Dubuque, Iowa (County), and Flexsteel Industries Incorporated (Flexsteel) entered into the Flexsteel Drainage Improvement Agreement providing for a drainage improvement on Flexsteel property; and Whereas, City, County and Flexsteel now desire to further amend the Agreement as set forth in the Second Amendment attached hereto. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Second Amendment to the Flexsteel Drainage Improvement Agreement, attached hereto, is hereby approved, and the Mayor is hereby authorized and directed to sign the Second Amendment on behalf of the City of Dubuque. Passed, adopted and approved this 2nd Attest: eanne F. Schneider, CMC, City Clerk day of October , 2006. v fRoy D. Buol, Mayor RESOLUTION NUMBER Q 6) Z-�-b WHEREAS, Dubuque County has been presented with a Second Amendment to the Flexsteel Drainage Improvement Agreement which outlines changes to include that the City of Dubuque covers two thirds of any future silt removal costs, that the City of Dubuque will absorb the costs of electrical service associated with the entire pump station and that any future cost to replace the second pump installed by the City of Dubuque in 2002 be the sole responsibility of the City of Dubuque NOW, THE.RF.FORE BE IT RESOLVED to nnnrnye and aiitbori?e the Chairperson to sign the Second Amendment to the Flexsteel Drainage Improvement Agreement. Resolution adopted this 6th day of November, 2006 Wayne sd emmer, Chairperson Attest: Denise M. Dolan, County Auditor SECOND AMENDMENT TO FLEXSTEEL DRAINAGE IMPROVEMENT AGREEMENT The Second Amendment to Flexsteel Drainage Improvement District is dated for reference purposes this 0 day of &1016br , 200,6 . Whereas, on September 10, 1993, the City of Dubuque, Iowa (City), the County of Dubuque, Iowa (County), and Flexsteel Industries Incorporated (Flexsteel) entered into the Flexsteel Drainage Improvement Agreement providing for a drainage improvement on Flexsteel property; and Whereas, City, County and Flexsteel now desire to further amend the Agreement as set forth herein. NOW, THEREFORE, IT AGREED BY AND AMONG THE PARTIES AS FOLLOWS: The Flexsteel Drainage Improvement Agreement, dated September 10th, 1993, and amended on December 6, 1993, is hereby amended as follows: 1. Paragraph 3 thereof is deleted and the following new Paragraph 3 is hereby substituted in lieu thereof: 3. City, County and Flexsteel further agree to share on an equal basis the costs of the long-term maintenance of the Improvement that City and County determine to be necessary, including but not limited to the replacement of the pump funded by the City, County and Flexsteel in 1994. However, City shall be responsible for two thirds of the cost and County shall be responsible for one third of the cost of silt removal from the Flexsteel Detention Basin. It is the intention of the parties under this Paragraph 3 that any such costs shall relate solely to the Improvement and not to any other work within the Couler Valley Urban Drainage District unless otherwise agreed to in writing by the parties. 2. Paragraph 4 thereof is deleted and the following new Paragraph 4 is hereby substituted in lieu thereof: 4. Flexsteel shall be fully and solely responsible for the day-to-day operation of and the expenses for its facility and the Improvement, including but not limited to, maintenance of grass and personnel costs for opening and closing valves, oiling and exercising the pumps, all as may be required to ensure the proper functioning of the Improvement. City shall be responsible for the electric charges for the pumps. CITY OF DUBUQUE, IOWA, Am - Roy D. Buo� Mayor City of Dub que COUNTY OF DUBUQUE, IOWA, by: W,,,�,, Wayne Demmer, Chairperson Board bf Supervisors FLEXSTEEL INDUSTRIES INCORPORATED By. Patrick M. Crah Senior Vice President & General Manager FLEXSTEEL DHAINAGE IMPROVEMENT AGREEMENT WHEREAS, Dubuque, Iotva Establishment the City of Dubuque, Iowa (City), and the County of (County), have entered into an Agreement for the of the Couler Valley Urban Drainage District; and WHEREAS, said Agreement provides for cooperation between the Ci ty and County for the identification and construction, improvement or repair of certain drainage improvements that the County and City determine benefit the property within the Couler Valley Urban Drainage District; and WHEREAS, City and County have determined that it is a benefit to the property within the COUler Valley Urban Drainage District to prOvide for a drainage improvement for Flexsteel Industries Incorporated (Flexsteel), property which is located in both the City of DUbuque and in DUbuque County; and WHEREA~" Flexsteel desires to enter into an agreement with City and County for the development of such drainage improvement; It is t.herefore agreed by and among City, County and Flexsteel as follows: 1. Ci ty, County and Flexsteel agree to cooperate to implement the reconunendation set forth in the May 25, 1993, report of IIW Engineers and Surveyors, p. C. , re: Drainage at Flexsteel Industries, to be referred to as the F1exsteel Drainage Improvement (Improvement) . A written construction plan for the Improvement shall be agreed to by City, County and Flexsteel before beginning final design of the Improvement. 2. The parties agree to contribute to the cost of the Improvement in equal shares, but the share of the County and the share of the City shall not exceed $100,000 each. 3. City, County and Flexsteel further agree to share on an equal basis the long-term maintenance costs of the improvement, which City and County determine to be necessary, including but not limited to, the removal of silt from the Flexsteel Detention Basin and the replacement of pumps. 4. Flexsteel agrees that it will be fully and Solely responsible for the day-to-day operation of and the expenses for its facility and the Improvement, including but not limited to, electric charges for PUmping, maintenance of grass, and personnel costs for opening and clOsing valves as is required to ensure the proper functionins of the Improvement. -2- 5. City, efforts to 1994. County and F1exsteel agree to exercise their best complete construction of the Improvement by Spring, Dated this lOth day of September , 1993. CITY OF DUBUQUE, IOWA, COUNTY OF DUBUQUE, IOWA, / by: ,( "'" " '1' ~ l ... ,0 -/ ! .-/' --:7\ ',-ij.)" c-< , . FLEXSTEEL INDUSTRIES INCORPORATED by, Wl-J~.1~ -v~R-.w< FIRST ANENDMENT TO FLEXSTEEL DRAINAGE IMPROVEMENT AGREEMENT The Flexsteel Drainage Improvement Agreement, dated September 10th, 1993, is hereby amended as follows: 1. Paragraph 3 thereof is deleted and the fOllowing new Paragraph 3 is hereby substituted in lieu thereof: 3. City, County and Flexsteel further agree to share on an equal basis the long-term maintenance costs of the Improvement, which City and County determine to be necessary, including but not limited to, the removal of silt from the Flexsteel Detention Basin and the replacement of pumps. It is the intention of the parties under this Paragraph 3 that any such costs shall relate Solely to the Improvement and not to any other work within the Couler Valley Urban Drainage District unless otherwise agreed to in writing by the parties. 6th day of Decemter Dated this , 1993. CITY OF DUBUQUE, IOWA, a ~ COUNTY OF DUBUQUE, IOWA, by: mes E. Brady, City of Dubuque or t~\ --./ / (, by: i '; ,/,-:..f -,/ V;", /~ Donna Smlth, Chalrperson Board of SUpervisors by: FLEXSTEEL IN~T @~;/ Patrick . Crahan vice President & General INCORPORATED ) /' /c..~I:;~ ~ Manager - Patric/, M. Crahan Vice Prcsidtnt & General Manager FLEXSTEEL INDUSTRIES Il'<cORPORATED POST OFFICE Box 877 . DUBUQUE, IOWA 52004-0877 563.556 773o/TELEPHONE . 56}. 556, 8345/FAX August 18, 2006 Mr. Deron Muehring, Civil Engineer City of Dubuque 50 W 13th St Dubuque IA 52001 Dear Mr. Muehring: Thank you very much for your correspondence of August 7, 2006 regarding the Flexsteel drainage improvement agreement. We at Flexsteel greatly appreciate your support in modifying this agreement to maintain the flood controls that were implemented in 1993. I have enclosed a signed copy of the Second Amendment to Flexsteel Drainage Improvement Agreement. PMC: cmm Ene!. - Patrick M. Crahan Vice President & General Manager FLEXSTEEL INDUSTRIES INCORPORATED POST OFFICE Box 877 . DUBUQUE, IOWA 52004-0877 56) .556. 7730ITELEPHONE . 563 .556. 8345/FAX October 26, 2005 Mr. Deran Muehring, Civil Engineer City of Dubuque Engineering 50 W 13th St Dubuque IA 52001 Dear Mr. Muehring: Thank you for your letter of October 10, 2005 regarding the Flexsteel Drainage Improvement Agreement. After reviewing the proposed recommendations to the City Council to amend the Flexsteel Drainage Improvement Agreement, Flexsteel agrees with your suggestions. We greatly appreciate the support the City has shown in minimizing the risk of water damage and prudent cost containment. J:J'Ck Patrick M. Crahan Sr. VP & General Manager PMC: cmm cc: Gus Psihoyos, City Engineer Steve Goffinet, Maint. Mgr. Flexsteel Di;~~E ~ck~ City of Dubuque Engineering 50. W. 13'h Street Dubuque, IA 52001 (563) 589-4270 Patrick M. Crahan Sr. VP & General Manager Flexsteellndustries, Inc. Post Office Box 877 Dubuque, IA 52004-0877 October 10, 2005 RE: Flexsteel Drainage Improvement Agreement Dear Mr. Crahan: This letter is in response to your letter of April 5, 2005 proposing changes to the "Flexsteel Drainage Improvement Agreement" between Flexsteel, Dubuque County, and the City of Dubuque established in 1993. The long-term maintenance costs associated with the pump station and detention area are: 1. Silt removal; 2. Pump replacement; and 3. Pump station repairs. Under the current agreement, all three would be funded equally between Flexsteel, the County, and the City with one exception. The replacement of the second pump that was funded entirely by the City was not included in the original project or original agreement. While it will be at the discretion of the City Council, City staff is prepared to recommend at this time that the City assume two thirds of the cost of silt removal with the County responsible for the originally agreed upon third. While it is reasonable to consider sharing future replacement costs associated with the second pump funded entirely by the City, City staff recommends that its replacement cost remain the responsibility of the City. The day-to-day operations include: 1. Pump electrical costs; 2. Oiling and exercising the pumps; 3. Mowing the detention area; and 4. Observation to ensure that the pumps are operational. As you mentioned, the City is already paying for the electrical costs associated with both pumps, a change from the original agreement as Flexsteel once covered this cost. Crahan Page 2 of 2 The change arose in conjunction with the installation of the second pump. Although there was only one pump at the time of the original agreement, the new pump does the majority of the pumping. Therefore, it may seem reasonable for Flexsteel to assume the electrical costs associated with both pumps. But City staff recommends that the City continue to pay the electrical charges associated with the entire pump station. We feel that Flexsteel should remain a partner with regard to pump station repair and maintenance/replacement costs associated with the original pump. Moreover, we believe that it is more practical for Flexsteel to continue to oil and exercise the pumps, continue to mow the detention area, and observe the functionality of the pump station. To help augment observation of the pump station operation, the City has the capability (for approximately $3,000) to add the pump station to the supervisory control and data acquisition (SCADA) system under development for the City of Dubuque Water Pollution Control Department. It would allow an operator at the City wastewater treatment plant to observe (in real time) the operation of the pump station _ verify that the pumps are on and pumping water. We are prepared to recommend this option, all at the City's cost, to serve as a backup to the observation of the pump station by Flexsteel personnel. I appreciate the effective working relationship between Flexsteel and the City with regard to this matter, a relationship that you helped cultivate back in the early 90's when the issue of stormwater management in the vicinity of Flexsteel was brought to the forefront. I would appreciate your position with regard to our proposed recommendations. Pending your response we will present them to the City Council. I will contact you the week of October 1 yth to verify that you are in receipt of this letter. Sincerely, " ~.[JuI11;f[//) Deron L. Muehring, Civil Engineer City of DUbuque (IA) attachments Cc: Gus PSihoyos, City Engineer '8 Patrick M. Crahan Vice President & General Mana!!;er FLFX~TEEL INDUSTRIES INCORPORATfD POST OffICE Box 877 . DUBUQUE, !UWA 52004-0877 56} 556 773o/TfLFI'HONE . 56, 556 8.345/FAX Aprils, 2005 Mr. Deron Muehring, Civil Engineer City of Dubuque 50 W 13th St Dubuque IA 52001 Dear Deron: Thank you for your March 21't explanation regarding the City of Dubuque's goal of reconstructing the storm sewer from US 52 and Olympic Heights run off into the "Flcxsteel drainage improvement". I am proposing an amendment to the Flexsteel Drainage Improvement Agreement that would include the following: 1. Long-term maintenance costs will be the responsibility of the City of Dubuque. 2. The City of Dubuque will assume the responsibility for the day-to-day operational costs. Please note that with the installation of a second pump and a direct power line by the City of Dubuque, this is in affect already. Thank you for your consideration in this matter. ~ )(it . Patrick M. Crahan Sr. VP & General Manager F1exsteel Industries, Inc. PMC: cmm cc: Michael C. VanMilligen - City Manager Cindy Steinhauser - Asst. City Manager Gus Psihoyos - City Engineer