English Mill Road Water Main Extension Project (Action Tabled)
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
English Mill Road Pumping Facility Project (Public Hearing No. 2)
English Mill Road Water Main Extension Project (Public Hearing No. 3)
DATE:
September 15, 2014
Public Hearings No. 2 and 3 on tonight’s agenda relate to City of Dubuque water service
for the English Mill Road area.
Assistant City Attorney Maureen Quann has received a letter from Attorney Frank Smith
on behalf of his client, Central Iowa Water Association, relating to water service territory
matters, which would include these two agenda items. The letter will be provided to you
at tonight’s City Council meeting.
Among other things, the letter suggests “legal action to protects its service territory
rights” if the City “persists with its present course of action.”
I take serious exception to Mr. Smith’s entire letter. However, I have asked our City
Attorney’s Office to research further the claims made in the letter.
I am requesting that the City Council hold the public hearings tonight on the plans and
specifications for the projects but table any action on the plans and specifications to the
City Council meeting of October 6, 2014.
_____________________________________
Michael C. Van Milligen
MCVM:jh
cc: Barry A. Lindahl, City Attorney
Maureen A. Quann, Assistant City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Robert Green, Water Department Manager
Gus Psihoyos, City Engineer
Maureen A. Quann, Esq.
Assistant City Attorney
Suite 330, Harbor View Place
300 Main Street
Dubuque, Iowa 52001-6944
(563) 589-4381 office
(563) 583-1040 fax
mquann@cityofdubuque.org
Frank M. Smith
Frank Smith Law Office
4215 Hubbell Avenue
Des Moines, IA 50317
RE: Water Service Territory Matters
Dear Frank:
Dubuque
All -America
11111
2007
THE CITY OF
DUB
Masterpiece on the Mississippi
September 15, 2014
I received your letter dated September 12, 2014 and find it is a gross misrepresentation
of the facts and the City of Dubuque's (City) legitimate efforts to work with your client,
the Central Iowa Water Association (CIWA) that began as early as the summer of 2013.
Contrary to your assertions, CIWA, not the City, failed to negotiate in good faith.
This issue is of utmost importance to the City. Your letter states that with investment
and expansion, CIWA would be capable of providing "most rural Dubuque County
residents with safe potable water — and many of them at fire flow pressures." High
water quality and fire protection for all City and Dubuque County residents is a top
priority — many and most is not enough.
The City has consistently provided CIWA with information in an attempt to establish
mutually agreeable water service territories. As your letter acknowledges, the City sent
a letter to CIWA clearly stating that the City "had plans to annex parts of rural Dubuque
County" and in the course of such annexations would provide utilities to properties in the
Vernon, Table Mound and Mosalem townships. The City then accepted CIWA's
invitation to meet and discuss mutually agreeable service territory areas and provided
CIWA with maps of its intended annexation and service areas.
Despite the City's one-sided information sharing, the City continued to meet with CIWA.
CIWA suggested, and the City and CIWA mutually agreed, that both parties would notify
each other when speaking with any potential customers so neither party would provide
service without consulting the other and establishing a service territory agreement.
CIWA never notified the City that it spoke to anyone. The City was surprised and
disappointed when it was informed by two entities that CIWA had not only contacted
them, but had entered into service agreements with these two entities without notifying
the City as promised. Your letter confirms that CIWA's undisclosed efforts were more
extensive than initially suspected. Your letter discloses that without notification to the
City as promised, CIWA has entered into agreements with not two but six entities.
Additionally, the City agreed to consider a service territory agreement at our meetings
during the summer of 2013. Although CIWA offered to produce a draft of such an
agreement for the City's review, no draft was ever produced, in spite of the City's
repeated requests for a draft of such an agreement in meetings and via e-mail
communications.
Meetings and negotiations came to a halt when CIWA canceled our last scheduled
meeting which was to be held on April 14, 2014. In an e-mail from you dated April 10,
2014 at 10:40 a.m., you requested that I "remove the meeting from everyone's calendar
for April 14." You further stated: "I will contact you about re -scheduling." No further
attempt to reschedule was ever attempted by CIWA.
Even after CIWA canceled the April 14, 2014 meeting between the City and CIWA, the
City continued its attempts to work with CIWA. In an e-mail response to you sent on
April 10, 2014 at 11:55 a.m., the City once again requested a draft of a water service
territory agreement and also returned revisions to a joint questionnaire CIWA proposed
would be sent to potential customers before contracts were entered into. CIWA never
responded to this request or the revised documents.
Moreover, the communications between you and me, as attorneys for the City and
CIWA, were considered by me to be confidential negotiations. Your requested inclusion
of such communications in a public forum, on a City Council agenda, further
demonstrates that CIWA is not negotiating in good faith but merely attempting to create
public controversy.
The City remains willing to meet with CIWA, if the meetings involve honest, good faith
negotiation by both parties. To resume that process, please address the questions
posed in my August 28, 2014 correspondence. The City requested permission to obtain
an appraisal of the CIWA water system at the Vernon location and asked whether CIWA
would be interested in selling the system to the City. Please advise whether CIWA will
allow such an appraisal and whether CIWA has interest in selling.
If CIWA is not interested in selling the Vernon Water System and its component parts,
please provide a draft of the water service territory agreement that the City has
requested previously and as recently as April 10, 2014. Additionally, please provide an
accurate map of your actual current service territory as defined by federal case law, i.e.,
where CIWA has pipes in the ground that provide or are capable of providing service:
"This Court must conclude that not only must a line be in place, but also that line must
be capable of delivering water in sufficient quantities to service the disputed territory."
Rural Water System # 1 v. City of Sioux Center, Iowa, 29 F.Supp.2d 975, N.D. Iowa
2
(Nov. 12, 1998) at 994. The map you provided in your recent letter is indecipherable
where it provides no legend and appears to contain an overbroad service area.
Thank you for your attention to this matter.
Sincerely yours,
Maureen A. Quann
Assistant City Attorney
MAQ/tls
cc: Michael Van Milligen, City Manager
Barry Lindahl, City Attorney
Laura Carstens, City Planner
Bob Green, Water Department Manager
Gus Psihoyos, City Engineer
3
Page of
>>
Kevin Firnstahl Public Hearing Comment
?
From:Frank Smith <franksmith@franksmithlawoffice.com>
To:"kfirnsta@cityofdubuque.org" <kfirnsta@cityofdubuque.org>
Date:9/15/2014 1:27 PM
Subject:Public Hearing Comment
CC:Tracey Stecklein <Tsteckle@cityofdubuque.org>, Barry Lindahl
<balesq@cit...
Attachments:140912 L FMS to Maureen re service territory matters.pdf
>
ear Mr. Firnstahl:
?
Please make the attached letter a part of the public comment and record regarding
each of the public hearings set for this evening September 15, 2014, identified as
the agenda items denominated as:
\[a\] the English Mill Road Pumping Facility Project and
\[b\] the English Mill Road Water Main Extension Project.
Should you have any questions, please contact me.
Thank you for your cooperation.
Frank M. Smith
Frank Smith Law Office
4215 Hubbell Avenue
Des Moines, IA 50317
Phone: (515)2656210
?
Fax: (515)2654584
?
Confidentiality Notice:
THE EMAIL AND ANY ATTACHED DOCUMENTS CONTAIN INFORMATION FROM THE FRANK
SMITH LAW OFFICE WHICH MAY BE CONFIDENTIAL AND/OR LEGALLY PRIVILEGED. THESE MATERIALS ARE
INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE ADDRESSEE IDENTIFIED ABOVE. IF YOU ARE
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RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY REVIEW, DISCLOSURE, COPYING, DISTRIBUTION OR THE TAKING
OF ANY ACTION IN RELIANCE ON THE CONTENTS OF THIS TRANSMITTED INFORMATION IS STRICTLY PROHIBITED. IF
YOU HAVE RECEIVED THIS EMAIL IN ERROR, PLEASE IMMEDIATELY NOTIFY THE SENDER OF THIS MESSAGE. THANK
YOU.
Click here to report this email as spam.
file:///C:/Users/kfirnsta/AppData/Local/Temp/XPgrpwise/5416E931DBQ_...9/16/2014
FRANK SMITH LAW OFFICE
4215 Hubbell Avenue
Des Moines, Iowa 50317
Phone: (515) 265-6210
Fax: (515)265-4584
Email: franksmith@franksmithlawoflice.com
franksmithlawoffice.com
September 12, 2014
Ms. Maureen A. Quann
Assistant City Attorney
Harbor View Place
300 Main Street, Suite 330
Dubuque, IA 52001
Re: Water Service Territory Matters
Dear Maureen:
Frank Murray Smith
Attorney and Counselor al Law
I am writing in response to your letter of August 28, 2014, and information I have
received that Dubuque has announced plans to extend public water supply services
outside its corporate limits to English Mill Road.
Historical Backiround
In 2011, Vernon Water Company L.L.C., the supplier of potable water to Dubuque
County residents in Vernon and Table Mound townships, had significant problems with
its public water supply system. CIWA was contacted by the Iowa Department of Natural
Resources (IDNR) and asked to assist.
In December of 2011 CIWA acquired the assets and customers of Vernon Water
Company L.L.C. and set about bringing this public water supply system into compliance
with IDNR regulations.
Before making a substantial capital infrastructure investment, CIWA approached
Dubuque in 2012 (through its consultant Dr. L.D. McMullen of Snyder & Associates and
former general manager of the Des Moines Waterworks) and asked if Dubuque would
cooperate by selling CIWA up to 500,000 gallons of water daily at an initial rate of $2.11
per thousand gallons ($1,055 daily / $31,650 monthly). In addition CIWA offered to pay
Dubuque a $500,000 connection fee. Despite having more than ample capacity, Dubuque
city manager Michael Van Milligen rejected this proposal and offered no counter
proposal.
Consequently, CIWA invested $1,000,000 developing the infrastructure initially needed
to serve rural Dubuque County residents.
Nothing further was heard from Dubuque until the summer of 2013 when you sent
correspondence to CIWA stating Dubuque [a] had plans to annex parts of rural Dubuque
County, [b] was claiming "fringe area" rights beyond those accorded it by Iowa law and
[c] was providing utility services in the Vernon Center, Table Mound and Mosalem
townships in Dubuque County.
CIWA responded that this was the first time Dubuque had notified CIWA of such and
CIWA stated in its response to Dubuque:
As noted previously, the whole purpose of CIWA 's outreach to Dubuque
was to develop a collaborative relationship. Nothing precluded Dubuque
from sharing the foregoing information previously and CIWA questions
why this information was not shared. Certainly Dubuque never told CIWA
that it was providing water services to any of the townships mentioned
outside its corporate limits.
Moreover, it is disingenuous to suggest that Dubuque was unaware that
CIWA would independently develop infrastructure to meet the demand in
the area — particularly since [a] Dubuque knew CIWA had acquired the
Vernon Water System, (b] Dubuque declined to meet the public's needs in
the area and [c] Dubuque refused to sell water to CIWA so CIWA could
meet the public demand for safe potable water without the capital expense
of new infrastructure.
In summary, before doing anything in Dubuque County, CIWA went to
Dubuque and sought its cooperation and collaboration. Dubuque refused
and elected not to work with CIWA to address the most important factor in
the equation - - that of meeting the needs of the businesses and residents in
the area not presently served by a public water supply system that want
quality potable water.
CIWA does not want a "tw f war" with Dubuque and remains committed to
working with Dubuque to avoid duplication and inefficient use of each
other's resources in meeting the public need for safe potable water. To that
end, CIWA suggests meeting again with Dubuque officials to develop a
plan acceptable to each for the provisions of public water supply services
in the area. Maps of current facilities can be exchanged at the meeting to
facilitate discussion.
Finally, CIWA is fundamentally committed to business growth and
development and job creation.
CIWA was pleased that Dubuque agreed to meet and two meetings were held for (from
CIWA's perspective) purposes of:
[a] identifying CIWA's and Dubuque's perspectives on public water supply
issues (e.g. defining service territory boundaries and exploring
collaborative ways to share infrastructure and capacity to efficiently and
cost effectively meet the public's needs);
[b] developing the process to resolve the issues (i.e. fact gathering,
surveying, sharing information regarding infrastructure and capacity,
exploring partnering options, determining public need, etc.); and
[c] utilizing this information and (considering the economies of scale,
economic viability, and the public interest), determining what water service
territory boundaries between CIWA and Dubuque are in the best interests
of rural Dubuque County residents.
CIWA shared information about:
[a] CIWA's infrastructure investments in Dubuque County,
[b] CIWA's July, 2013, contractual obligation to serve the Kane
property on Highway 20,
[c] CIWA's plans to serve other properties in Dubuque County
necessary to assure its (CIWA's) infrastructure investments met the public
water supply needs of Dubuque County residents,
[d] CIWA's willingness to provide water for fire suppression in areas of
Dubuque where Dubuque did not have the present ability to provide such
services and
[e] CIWA's desire to avoid needless turf wars and territory disputes
with Dubuque.
3
CIWA presented a proposed survey it had developed to gauge public interest. Dubuque
asked that it have input before any survey was conducted and it was agreed a joint
informational flyer and mutual survey of rural Dubuque County residents regarding the
public water supply services available from Dubuque and from CIWA would be
developed.
A third meeting was scheduled for early April but postponed to allow CIWA the
opportunity to assess the impact of legislation, supported by Dubuque and other
municipal public water supply systems, which restricts the ability of rural water
associations to provide public water supply services within two (2) miles of a
municipality's city limits.
Recent Events.
During that evaluation process, CIWA learned that rather than use the information CIWA
shared with Dubuque to move forward in a cooperative and collaborative manner,
Dubuque used such information to undermine and disrupt CIWA's efforts to achieve a
necessary customer base to support its (CIWA's) infrastructure investments in Dubuque
County. As an example, CIWA has confirmed that you and other Dubuque officials met
in late April with CIWA customer Tom Kane to discuss provision of water to his
business on Highway 20 and whether he could "break" his agreement with CIWA. Such
predatory action is counterproductive, does nothing to promote efficient extension of
public water supply system services, was an intentional interference with CIWA's
contractual relationship with Mr. Kane and also a violation of federal law — most
particularly 7 U.S.C. §1926(b).
More recently, Dubuque sent a survey to residents in the Highway 20 corridor area
soliciting them as Dubuque water customers.
On September 2, the Dubuque City Council set a public hearing for September 15, 2014,
regarding expending $1,525,000 to construct a pumping station and extend a water main
to English Mill Road — albeit there is no publicly available information that anyone has
signed an agreement to purchase water from Dubuque to pay for this $1,525,000
expenditure.
After learning that Dubuque — without so much as the courtesy of any notice to CIWA —
met with a CIWA customer to review his CIWA contract to see if it could be "broken", it
became apparent to CIWA that Dubuque had no consideration for the public interest of
rural Dubuque County residents, much less to say any interest in dealing with CIWA
4
openly and honestly, and that Dubuque was only interested in imperialistically advancing
its self-interest.
Accordingly CIWA moved forward with its plans to serve Mr. Kane and other rural
Dubuque County residents who have asked CIWA for water services. In June CIWA
filed facilities plan documents with IDNR for a $2,153,000 upgrade to its (CIWA's)
initial $1,000,000 investment in Dubuque County giving CIWA the capability of
providing most rural Dubuque County residents with safe potable water — and many of
them water at fire flow pressures which will help significantly reduce their homeowners'
insurance rates and improve public safety.
During this process it has come to CIWA's attention that Dubuque may be attempting to
influence Dubuque County and Iowa Department of Transportation officials regarding
CIWA's efforts to meet the water needs of rural Dubuque County residents. Dubuque is
hereby notified that it should preserve all electronically stored information, as that term is
defined by the Iowa and Federal Rules of Civil Procedure, regarding CIWA's efforts to
obtain the necessary right of way permits (and Dubuque's resistances and comments
thereto) for installation of the infrastructure necessary to meet its customers' needs
including, but not limited to, all communications such as emails with Dubuque County
and Iowa Department of Transportation officials.
CIWA Service Territory.
So there is no misunderstanding, enclosed is a map showing the area in Dubuque County
CIWA is capable of serving upon completion of its facilities upgrade.
Furthermore, CIWA has pre -July 1, 2014, signed agreements with the following Dubuque
County property owners / entities to provide them with public water supply services, to
wit:
1. English Mills Properties, L.L.C.;
2. Sara Dalsing;
3, Todd Dalsing;
4. Megan Dalsing Horstman; and
5. Barrington Lakes Property Owners' Association.
These properties are identified on the enclosed map marked Exhibit 1.
5
CIWA is also informed that Dubuque may be attempting to influence property owners in
the Barrington Lakes subdivision regarding the provision of public water supply services
by CIWA. It is assumed such actions by Dubuque have been undertaken without
Dubuque knowing the extent and scope of CIWA's service area.
By the information in this correspondence, however, Dubuque now knows the extent and
scope of CIWA's service area and should cease all communications with property owners
in the Barrington Lakes subdivision regarding the provision of public water supply
services by CIWA. Dubuque is further notified that it should preserve all electronically
stored information, as that term is defined by the Iowa and Federal Rules of Civil
Procedure, regarding CIWA's provision of public water supply services to the Barrington
Lakes' subdivision including, but not limited to, all communications such as emails with
all persons regarding same.
CIWA's Legal Obligations To Its Lenders And Fiduciary ObliRations To Its Members.
CIWA is a federally indebted rural water association and its stream of income from all
customers and potential customers in its service territory is pledged as collateral for
repayment of its federal indebtedness. It has a legal obligation to its lenders and a
fiduciary obligation to its members to assure that nothing jeopardizes this stream of
income or its customer base or otherwise curtails its ability to provide public water
supply services to its customers — present and future - in its service territory.
In summary, Dubuque should [a] immediately rescind all customer solicitations
within CIWA's water service territory, [b] make no further solicitations, [c] stop
interfering with CIWA's efforts to obtain right of way permitting, Id] not install any
public water supply system infrastructure in CIWA's service territory and [e] take
no other actions which attempt to curtail CIWA's provision of public water supply
services to CIWA customers or potential customers within CIWA's service
territory.
Any actions to the contrary will be deemed an effort by Dubuque [a] to curtail CIWA's
customer base and [b] to curtail CIWA's provision of public water supply services within
its (CIWA's) service territory — which actions by Dubuque are prohibited by 7 U.S.C.
§ 1926(b). See Pittsburg County Rural Water District No. 7 v. City of McAlester, 358
F.3d 694, 715-719 (10th Cir) 2004 holding that, to the extent the city of McAlester
invested in infrastructure on the assumption that 7 U.S.C. §1926(b) did not apply, such
assumption was unreasonable.
6
Furthermore, Dubuque is cautioned before it approves and moves ahead with expending
$1,525,000 to construct a pumping station and transmission line to and along English
Mills Road, [a] that this area is part of CIWA's service territory, [b] that Dubuque does
not have the legal right to serve property owners in this area, [c] that CIWA does not
consent to Dubuque encroaching in this - or any other area - of its service territory and
[d] that this expenditure is unnecessary, will serve no public purpose and is a complete
waste of public tax dollars.
Dubuque is further cautioned to make no slanderous, libelous or other disparaging
remarks about CIWA. CIWA is a regional public water supply system serving 50,000
Iowa residents and many small cities in central and northeastern Iowa with safe potable
water - and where necessary, water for fire suppression. CIWA's public water supply
system is subject to the same state laws and IDNR regulations, standards and scrutiny as
Dubuque's public water supply system. Indeed there is no substantive legal, regulatory
or administrative distinction between them whatsoever.
Further Offer To Collaborate.
CIWA's public water supply system is an economic development catalyst throughout its
service territory. CIWA has a long and successful track record of working closely with
developers and public officials when economic development opportunities arise to assure
those developers' public water supply needs are met cost effectively at competitive
prices.
Hopefully Dubuque policy makers can step back and see that its predatory extra-
territorial water practices — and the concomitant litigation, lawyer fees and expenses -
serve no legitimate public interest or purpose. Neither side benefits. And when a rural
water association is forced to successfully protect its territorial rights in court, the city has
to pay the rural water association's attorney fees. See Rural Water System No. 1 v. Sioux
Center, 202 F.3d 135 (8th Cir. 2000).
I note from a February 17, 2014, article in the Des Moines Register that Dubuque had a
projected shortfall of $1.43 million in its operating fund and a deficit of $1.47 million in
its capital improvement fund for 2014 which required amendments to Dubuque's budget.
From that one would assume that Dubuque policy makers must be very judicious in
spending Dubuque taxpayer dollars.
Furthermore it would not seem prudent for Dubuque to spend $1,525,000 to construct
water service outside its city limits to nowhere — with no assured customers and invading
CIWA's service territory thereby inviting litigation — and have a situation similar to the
bridge in Alaska that connects nothing and is of no public benefit.
Although CIWA has never in its history had to file legal action to protect its service
territory rights and much prefers to amicably resolve differences through negotiation —
and remains willing to do so here - CIWA will have no alternative if Dubuque persists
with its present course of action.
Economic development occurs when utilities and governmental entities work
collaboratively with developers. Dubuque does not have to be the public water supply
provider in all situations — particularly outside of its city limits - when a viable alternative
that is equally, or even better, able to provide such services is available any more than it
needs to be the provider of other utility services such as gas, electricity or
communications services for development to occur.
To that point (and in response to your August 28, 2014, letter postmarked September 2,
2014 and which I received September 4, 2014), CIWA remains willing to collaborate
with Dubuque should it:
[a] want to establish emergency connections with CIWA's public water
supply system,
[b] want the benefit of CIWA's water for fire suppression in areas which
Dubuque cannot otherwise economically or feasibly afford to serve,
[c] want to consider reasonable adjustments in each other's respective water
service territories,
[d] want to discuss other matters necessary to assure that the public
interests of all Dubuque County residents are best served.
Such discussions, however, must be undertaken in good faith and the information gleaned
from such meetings not used by Dubuque to engage in an unnecessary turf war. If
Dubuque, would like to proceed in this manner, then please advise of the following:
[a] Does Dubuque want to establish emergency connections with CIWA's
public water supply system (and if so where)?
[b] Does Dubuque want the benefit of CIWA's water for fire suppression in
areas which Dubuque cannot otherwise economically or feasibly afford to
serve?
8
[c] Does Dubuque want to consider reasonable adjustments in each other's
respective water service territories (other than those CIWA is contractually
obligated to serve) - and i f so, what adjustments does Dubuque propose?
[d] Does Dubuque want to discuss other matters necessary to assure that the
public interests of all Dubuque County rural residents are best served — and
if so, what matters does Dubuque believe should be discussed?
[e] Is Dubuque willing to share equally in the cost of retaining the services
of a qualified third party, or panel of three (3) persons, to independently
evaluate the matters at issue and make recommendations to both CIWA and
Dubuque for resolution of such issues?
PMS\fms
Enclosures
cc: CIWA
Sent via email and first class mail.
9
CIWA - DUBUQUE SERVICE AREA
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THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approval of Plans and Specifications for the English Mill Water Main
Extension Project
DATE: September 8, 2014
Water Department Manager Bob Green recommends City Council approval of the
plans, specifications, form of contract and estimated cost of $796,800 for the English
Mill Water Main Extension Project.
The City commissioned an annexation study in 2006. This area was identified as a
future area for community expansion and annexation.
In 2014, letters were sent to 3,086 residents in Dubuque County within two miles of
Dubuque City limits requesting their opinions of City services including water service.
The results of the survey are as follows:
o 3,086 surveys mailed
o 1,200 responded
o 239 in support of receiving City of Dubuque water service
This project will provide water service to those requesting it along English Mill Road and
eventually along North Cascade Road and Highway 20. This is the initial phase of a
multi -phase project that will create a looped water system from the English Mill Road
entrance of Stone Valley Drive to North Cascade Road to Highway 20 back to Stone
Valley Drive.
In 2014, East Central Intergovernmental Association Director of Transportation Chandra
Ravada completed an Economic Impact Study of the Southwest Arterial Corridor.
The Southwest Arterial is scheduled for completion in 2019. For the first 10 years after
project completion, there is the potential to generate $80 million in property tax
revenues, $1.7 billion in economic output, $650 million in labor income, and $1 billion in
value added. For those first 10 years the Southwest Arterial is also projected to
generate $135 million in state and local taxes and $130 million in federal tax from new
economic development, as well as save $30 million because of safety improvements.
From 2030 and beyond, this project will also annually generate $15 million in property
tax, $304 million in economic output, $24 million in state and local taxes, and $23 million
in federal taxes due to economic development, in addition to $3 million in safety
savings.
The City finds itself in a similar situation as existed in the 1990's when the City was
creating 950 acres of industrial parks. The City expended over $20 million to build the
industrial parks, including extending utilities to the industrial parks. These utility
extensions opened up almost 7,000 acres of land for private development.
The extension of these utilities almost 20 years ago has had huge benefits that will pale
in comparison to the benefits of the Southwest Arterial area benefits that will be
produced. The utility extensions in the 1990's resulted in the creation of over 6,400
jobs, the expansion of 46 local businesses, the attraction of 8 new businesses, and the
voluntary annexation of approximately 4,400 acres of property, expanding the
geographic size of Dubuque by 28%.
From the industrial parks alone, beginning in 2019, taxing bodies will see the inflow of
$2 million of property tax revenues per year.
The City's commitment to providing utilities to the Southwest Arterial corridor to spur
future development is made even more urgent by the recent arrival of the Central Iowa
Water Association, who has built a water tower at Swiss Valley Road and Highway 20,
with the intent of laying claim to a service territory that includes the Highway 20 and
Southwest Arterial Corridor.
The Central Iowa Water Association business model includes claiming territory by
providing water service, but not always providing sufficient water volume or water
pressure to charge all of the fire hydrants or commercial and industrial sprinkler systems
in their territory. Therefore, homeowners and businesses may go without adequate fire
protection. This limits the amount of development in an area, and what development
that does occur may be much more expensive because businesses need to go through
the added expense of dry fire suppression systems or they need to boost the water
volume and water pressure to serve their sprinkler systems at great extra expense.
An example of how the Central Iowa Water Association business model works can be
seen north of Ames, Iowa, where the Xenia Rural Water System claimed a territory and
the developer had to agree to pay almost $3 million to Xenia in order to be allowed to
access the higher quality water services from Ames. These rural water systems can
command such high buyout prices because their territories, once they claim the area by
running a water line, are federally protected.
The only two ways the City of Dubuque can protect the development potential of the
Southwest Arterial corridor and the Highway 20 corridor, and the value of the land for
the private property owners, is by either annexing the area or by extending City utilities
to the area before Central Iowa Water Association.
2
With the second lowest water rates of the 10 largest cities in the State of Iowa, the City
of Dubuque is well positioned to implement these water extensions.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Bob Green, Water Department Manager
3
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
bitetd
All -America City
1 r
2007 • 2012 • 2013
TO: Michael C. Van Milligen, City Manager
FROM: Bob Green, Water Department Manager
SUBJECT: Approval of plans and specification for the English Mill Water Main
Extension Project
DATE: September 8, 2014
INTRODUCTION
The attached Resolution is to approve the plans, specifications, form of contract and
estimated cost for the English Mill Water Main Extension Project.
DISCUSSION
The extent of the work involved in the City of Dubuque, Iowa English Mill Road Water
Main Extension 2014 project consists of the construction of a 12 inch water main from
the intersection of Stone Valley Drive and English Mill Road to North Cascade Road
along English Mill Road. The water main along with the proposed booster station will
create a new pressure zone (Zone 7) in the City of Dubuque distribution system. The
project consists of approximately 6,400 LF of 12 inch water main, including 865 LF of 12
inch DIP and 5,500 LF of 12 inch PVC water main. The project also includes various
water main appurtenances including: fittings, resilient seat gate valves, fire hydrants,
mechanical and push -on joint restraints, etc. Rock excavation is anticipated to be
encountered for the water main installation. Erosion control including silt fence, rolled
erosion control product, topsoil removal and replacement, and seeding. Traffic control is
included in the project to maintain a safe work site for both the Contractor and the
public. Coordination with two other projects in the same general area associated with
the project will be required.
Engineer's opinion of Probable Cost: $595,000
BACKGROUND
As part of the City's Master Plan for growth, the ability and costs to extend city services
to properties currently in unincorporated areas of Dubuque County need to be
evaluated. To assist in this process, public input was sought. Letters were sent to
3,086 residents in Dubuque County requesting their opinions of city services including
water service.
The results of the city service survey are as follows:
o 3,086 surveys mailed
o 1,200 responded
o 239 in support of water service
In review of these survey results, the city should proceed to provide water service to
those requesting it along English Mill Road, Cascade Road and eventually along
Highway 20. This is the initial phase of a multi -phase project that will create a looped
water system from the Highway 20 entrance of Stone Valley Drive to English Mill Road
to Cascade Road to Highway 20 back to Stone Valley Drive.
In discussions with Public Works Director, Don Vogt we determined that as part of the
proposed Dubuque Landfill Facility improvements to take place in the near future, we
should provide the new facility with city water. The English Mill improvement requests
will support the current and future water service needs to this area.
I have provided a map as an attachment for your review showing this proposed
improvement and future improvements in this area.
PROJECT SCHEDULE
The schedule for the project is as follows:
Initiate Public Bidding Process
Publish Notice to Bidders, Advertise for Bids
Notice of Public Hearing on Plans & Specifications
Public Hearing on Plans & Specifications
Receipt of Bid Proposals (Bid Letting)
Award Construction Contract
Completion Date
September 2, 2014
September 5, 2014
September 5, 2014
September 15, 2014
September 25, 2014
October 6, 2014
June 1, 2015
RECOMMENDATION
It is recommended that the City Council give approval to the plans, specifications and
form of contract for the English Mill Water Main Extension Project.
BUDGET IMPACT
The estimate of probable cost for English Mill Water Main Extension Project is as
follows:
Estimated Construction Cost
Contingency (15%)
Engineering Design & Inspection Fees
Total Estimated Project Cost
The project funding summary is as follows:
$ 595,000.00
$ 89,250.00
$ 112,550.00
$ 796,800.00
CIP NO. FUND DESCRIPTION FUND AMOUNT BUDGETED
740-2504 English Mill Road Project $2,150,000.00
ENGLISH MILL PUMP STATION
$1,232.050.00
BUDGET SURPLUS
$ 121,150.00
ACTION TO BE TAKEN
The City Council is requested to approve the plans, specifications, form of contract and
estimated cost for the English Mill Water Main Extension Project through the adoption of
the attached Resolution.
BG:jj
Attachments
cc: Jenny Larson, Budget Director
Kevin Firnstahl, City Clerk
Jacqueline Johnson, Water Plant Manager
File
Planned Expansion of Water Main
English Mill Rd Project
IN CLAIN LN
z
x
3
Landfill Property
BRIARWOOD DR
Legend
• yes To City Water selection
Water Main Routes
:urrerd Project
English Ridge Partnership Agreement
Future Phases
■ English Mill Rd Pump Station
Landfill Property
269/4,„-/c/
RESOLUTION NO.2• -1.4
CITY OF DUBUQUE, IOWA WATER DEPARTMENT
ENGLISH MILL WATER MAIN EXTENSION PROJECT
APPROVAL OF SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATED COST
FOR THE ENGLISH MILL WATER MAIN EXTENSION PROJECT.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
That the proposed plans, specifications, and form of contract now on file with the
office of City Clerk and estimated cost for the English Mill Water Main Extension Project,
in the amount of $796,800.00, are hereby approved.
Passed, adopted and approved this 4 -5t -h— tay-ef-Septe er-,--2044.
Roy D. Buol, Mayor
Attest:
Kevin Firnstahl, City Clerk
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
1, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper
on the following dates: September 05, 2014, and for which the charge is $86.13.
Subscribed to before me, a tary Public in nd for Dubuque County, Iowa,
this ?1%9 day o J , 20 .
Notary Public in and for Dub quo County, Iowa.
ARY K. WESTERMEYER
Commission Number 154885
My Comm. Exp, FES. 1, 2017
approximately`6,400 LF ceed has been issued
of 12inchwater main, and shall be fully com-
including 865 LF ,of 12 pleted by June 1, 2015.
inch DJP. and 5,500 LF of Bid Security. Each
12 irioh PVC --water ;bidder shall accompa-
mam :The project. also ny its. bid•_with a bid se -
includes various water •'curlty•. as security ,that
main appurtenances the ;successful "'hidder
mclud,pg; fittings, re- will enter, into a con-
silientseatgatevalves, tract for the work bid
fire hydrants, mechani- •upon and will furnish
cal and push -on joint after the award of con -
restraints, etc. Rock :tract a corporate sure-
excayation is anticipat- ty bond,. acceptable...=to
ed to be encountered` the goVernmental enti-
for the water main in- ty, for the faithful per-
stallation. Erosion con- formance of the con-
trol including silt.fence, tract, in an amount
rolled erosion control • equal to one hundred
product, topsoil:remov- percent of the amount
aI and replacement :'of ,the contract, The bid -
and. seeding. ,Traffic security shall be in the
control, is inCluded in : • amount pf ten' percent
the project to maintain. (10%) of the amount of
• a safe work site for the, contract,' and shall
both, .the Contractor be -in the form of a
• and the. public. Coordi- cashier'scheck or cer
nation With', two other ,tified check drawn on a_.
projects rin, the same .state -chartered Or fed -
general' area .associat- • erally, charteredbank,
edwith ;the -project will or a certified" .share
be required. Copies of draft drawn on a state-
supporting,.documents chartered or federally
for the public hearing chartered credit union,
are on ,file' in the City ; Or the governmental
••Clerk's Office.; and; may entity may provide for
be viewed during ;nor- a' bidder's;; bond with
mal working. hours. corporate suretysatis-
Written comments "re-, factory to the .govern
garding the above pub- mental entity. The, bid
lic hearing may be sub-, bond shall :contain' no
mitted to the City conditions ;excepted. as
Clerk's Office on or be-, provided in. this sec
fore said time of public tion.
hearing; Contract- Docu
Any visual or hearing- ments. Copies of the
impaired • persons plans and • specifica
needing special assis- -tions prepared by Iiw,
tanceor 'person$ With P.C. may.: be, obtained
special', accessibility from, Tri-State. Blue -
needs should,' contact print, 696°;`Central, Ave -:f
the City Clerk's office nue, Dubuque, , Iowa`
at (583) 589-4120 or 52001, :phone 563 -556 -
TDD at '(563) 556-9948 .3030. No deposit is
at least 48 hours prior squired.
to the meeting. Preference for Iowa
Published by order of, Products and Labor.
a
CITY OF DUBUQUE _the City Council given By virtue of statutory,
OFFICIAL NOTICE on the 5th day of Sep- authority,, _ preference
NOTICE OF PUBLIC tember,f2014. will bp. given to prod -
HEARING OF THE Trish Gleason, ucts and provisions
CITY COUNCIL OF DU- Assistant City Clerk grown and coal pro
BUQUE, IOWA, ,.ON N.OTICETO BIDDERS , duped within the State
THE >MATTER`OF THE : CITY ,OFDUBUQUE of Iowa, and. to Iowa
SPECIFICATIONS, , ,PUBLIC domestic. labor,•to the
FORM OF CONTRACT, IMPROVEMENT extent lawfully, :re-
AND ESTIMATED PROJECT quired under lovva•stat-'
1 COST FOR THE EN.G.i WVATER SYSTEM utes.
LISH: MILL ROAD WA- : IMPROVEMENTS Sales'Tax. The bidder
TER MAIN EXTEN- ENGLISH MILL ROAD should, not .� include
SION.PROJECT ' WATERMAIN'` ,. sales fax in its. bid. A
,NOTICE IS" HEREBY"• EXTENSION 2014. sales tax s' exemption
GIVEN The City Coun Time ;and Placelor certificate will be;avail-
cil of the City.of•Dubu-, Fdrng Sealed Propos-- able 'for alln;laterial
que,;:Iowa will hold a ' als Sealed bids for the_ purchased:foi incorpo-
public hearing on; the wprk'comprising each r 'ration in the project. •
proposed �specifica- ;• improvement as stated, General Nature;".of
tions, form of contract ,below must be filed be- Public-IrmProvement.
and estimated'` cost for fore 2;00 p.m: ori. the The extent of the work
the' English Mill Road; 25th, day of September, involved in the City of
Water Main Extension, 2014; in the Office of Dubuque, Iowa; Water •
Project, ihaccordance the, City Clerk, City Hall System, Improvements
with the provisions of - First Floor, 50 West English Mill; Road Wa-
Chapter 26, code of lo- 13th Street, Dubuque, , ter Man Extension
wa, at 6:30 p:m on the Iowa. 2014-projecticonsists of .1
15th day of September,; Time and Place the construction of.; a
2014, in' the;;Historic Sealed Proposals 12' inch water main
Federal Building'Coun- "3Will 'be ; Opened and : from, the intersection I
cil Chambers :(Second Considered. Sealed of Stone Valley Drive
Floor) 350 West th • proposals will : be and English. Mill Road
Street, Dubuque Iowa. opened and bids tabu- - to North Cascade Road '
The scope ofthe•Proj- lated at 2:00 p.m. on along English Mill
ect is as follovys September 25, 2014, at Road. The water main
The' English Mill -Road City Hall.- Conference along with the .pro
Water Main Extension Room A, 50 West; 13th posed booster station
Proje'ct consists bf`,the Street, Dubuque, Iowa, will create a new Pres -
construction of a 12 for consideration by sure zone (Zone 7) in
inch"water main -from the City Council (Coun- the City of Dubuque
the intersection °of cil) at its meeting on distribution system.
Stohe Valley Drive and October 6, 2014. The The project consists of
English Mill :Road to City of Dubuque, Iowa, approximately 6,400 LF
North Cascade Road reserves the right . to of 12 inch water main,
along;, English ,Milk rejectany all bids. including 865 LF of 12
goad. ',The water main Time ` for „Com- inch DIP and 5,500 LF of
along 4 -With the. ••pro- mericement • and ; 12` inch PVC water
posed ✓booster':'station Completion of Work.iI main. The project also
will create a new Pres- • Work on each improve- includes various water
sure zone (Zone 7) in "merit shall be .corn- main appurtenances
the; City ,of ,'Dubuque, menced within 10 days including: fittings, : re-
distribution system. after the Notice to Pro- : silient seat gate valves,
The project consists of
fire hydrants, mechani-
cal and push -on joint
restraints, etc. Rock
excavation is anticipat-
ed to be encountered
for the water,main in-
stallation. Erosion con-
trol including silt fence,
rolled erosion, control
product, topsoil remov-
al and replacement, l
and seeding. Traffic
control ;,iS included in i
the: project to; maintain
a safe work site for
both the Contractor?.
and the public. Coordi-
nation with two other
projects in the same
general area `associat- 1
ed with°the project will
be required.
1t 9/5