Water Infrastructure Resiliency Finance Center_EPA Copyright 2014
City of Dubuque Consent Items # 18.
ITEM TITLE: Water Infrastructure Resiliency Finance Center
SUMMARY: City Manager transmitting correspondence to the Iowa
Department of Natural Resources regarding Dubuque
volunteering to participate in the EPA-Funded Water
Infrastructure Resiliency Finance Center pilot program.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Letter to Patti Cale-Finnegan Supporting Documentation
Letter from EPA Supporting Documentation
Dubuque City Manager's office
THE crry OF City Hair
DLTB E NI#m nw CM So Wes ,IA Street
5200
Dubuque,IA 52001-0805
Office(563)589-4110
Fax(563)5894149
Masterpiece onthe Mississippi ym.y�,,.,a„ =(563)690-66]8
ctymgr@cilyofilabuqueorg
www.cityofrWbuque.org
December 4, 2015
VIAEMAILTO: patti.cale-Finnegan@dnr.iowa.gov
Patti Cale-Finnegan, SRF Coordinator
Iowa Department of Natural Resources
502 E. 9th Street
Des Moines, IA 50319-0034
Dear Patti,
Thank you for alerting the City of Dubuque to the opportunity to volunteer to serve as a pilot for
the new EPA-funded Water Infrastructure Resiliency Finance Center(WIRFC) program. We
believe the City of Dubuque would be an excellent candidate given our significant water
infrastructure projects in the queue and our experience in producing regionally and nationally
recognized pilot projects around water conservation and water infrastructure.
We would welcome the services described for pilot projects to be provided by WIRFC including
alternatives analysis, asset management practices, financing and funding options including
identification of alternative revenue sources and understanding of WIFIA and other programs
that would complement and supplement SRF funding.
Dubuque is willing to use the assistance offered to finance a future infrastructure project.
Projects in the queue include both drinking water and waste water infrastructure projects and
are not yet to the funding pipeline. Dubuque has received technical assistance on water
projects in the past and we have found technical assistance to very valuable to not only projects
but to increasing competency and knowledge of city staff. We are eager to receive input and
assistance that will build financial capacity during the predevelopment stages of these projects.
Perhaps one of Dubuque's greatest strengths is implementing and sharing success stories
around water infrastructure. Examples of these successes include:
• Green Alley Project - In the fall of 2012, the City of Dubuque closed on an agreement
with the Iowa Department of Natural Resources to use SRF funds to reconstruct 73
alleys in the Bee Branch watershed. These alleys were to utilize permeable pavement so
as to improve the water quality of the watershed and reduce flooding. The agreement
allowed the City to restructure its loan with the Iowa Finance Authority to reconstruct the
Water Resource and Recovery Center. Utilizing an innovative funding approach, the City
was able to leverage $9.4 million that normally would have been paid as interest to
reconstruct the alleys. The City utilized this funding as a pilot project in cooperation with
Service People Ivtegity keryonsibility I-o-oon Te—woek
the Iowa Finance Authority, IDNR and EPA. Essentially the City got two projects for the
price of one.
Beginning in 2014, the City began to reconstruct alleys using SRF funds. To date
approximately 52 alleys have been completed. The City anticipates completing an
additional 28 alleys before the SRF funds are exhausted. This project has revitalized
neighborhoods by improving the pavement, improving water quality and reducing
flooding. The alleys improve water quality for the Mississippi River by greatly reducing
total suspended solids and nitrates and phosphates that reach the river. The
reconstructed alleys also reduce flooding in flood prone areas by intercepting stormwater
before it reaches the storm sewer network. Dubuque has suffered through major flooding
events in recent years. There are over 240 alleys within the Bee Branch watershed
where approximately 50% of the population resides. The partnership the City has with
our funding partners has been highly successful in addressing over a third of the alleys
in the Bee Branch watershed.
• Water & Resource Recovery Center - has recently completed an approximately$68-
million-dollar upgrade to its wastewater treatment system. Included in these upgrades is
the ability to generate 70 to 85 percent of the electricity needed to operate the center by
utilizing digester gas from its process to power three 200KW turbines. Appropriate Asset
Management is required to protect the City of Dubuque's investment and assure
environmental compliance for the decades to come.
Upcoming projects will be the reduction in Total Nitrogen and Total Phosphorous in the
W&RRC effluent. It is estimated to cost $11.7 million dollars and be completed over a
15-year period. If alternate funding could be discovered to allow this project to move
forward quicker without seriously impacting sewer use rates there would be a significant
environmental benefit and once again show the City of Dubuque's commitment to the
protection of the environment.
• Bee Branch Flood Mitigation Proiect -While not considered a pilot project at the local,
municipal level, the City of Dubuque's Bee Branch Watershed Project can serve as a
pilot for other, larger watersheds throughout the country. In most cases, watershed
boundaries extend beyond jurisdictional boundaries, limiting each jurisdiction's ability to
effect positive change in either flooding or water quality within the watershed. The Bee
Branch watershed is entirely within the city limits. As a result, the City of Dubuque was
able to develop a comprehensive, holistic approach to addressing both flooding and
water quality concerns.
There are 12 phases of the $200 million Bee Branch Watershed Project that combined:
reduce the volume of runoff (reconstruct 240 alleys with pervious pavement systems to
infiltrate it into the ground), effect the timing of the runoff (build upstream, natural
detention areas to slow its movement through the watershed), and increase the
conveyance through flood-prone areas (day-light a creek and re-establish the flood plain
and greenway to slowly and safely move runoff).The City has completed 25% of the
pervious alleys; two large scale, natural detention basis; and 50% of the mile-long creek
to be day-lighted. For affordability reasons, all of the improvements are to be done in the
next 20-25 years.
Service People Integrity Responsibility Innovation Teamwork
• Smarter Water Research Project - The City of Dubuque has established itself as a
leader in utilizing technology to meet our sustainability goals, and has created a
replicable model for small to medium-sized communities to reach those goals through
our Smarter, Sustainable Dubuque partnership with IBM Watson Research. In 2009,
City and IBM announced their intentions to make Dubuque one of the first "smarter"
sustainable cities in the U.S. Through this partnership they have coupled smarter meter
technologies with community outreach and education in order to create more resource-
efficient ways to operate municipal services, decrease carbon emissions, increase
financial savings, conserve resources, and contribute to a higher quality of life for
residents. The first pilot, the Smarter Water project, engaged 300 volunteer households
in a 12-month study to reduce consumption and decrease leaks. Residents were
provided access to personalized, real-time dashboards and engaged in a competition to
reduce water usage. During the pilot, residents decreased water utilization by 6.6%,
fixed leaks eight times more often than their counterparts, and 61% cited that they made
a change in the way they used water. The pilot results led to the introduction of DBQ IQ,
an online dashboard now available to all residential and commercial water customers.
Funding for the project was through SRF.
• Nutrient Reduction Offset Program -The City of Dubuque continually looks to achieve
success through many means when it comes to the environment and its protection. Most
recently, working with its partner the Iowa League of Cities (the League) it has embarked
on a pilot joint venture with several entities to investigate the feasibility of a nutrient
reduction strategy which could extend to a nutrient offset or exchange program. Lead by
the Iowa League of Cities, it was successful in obtaining a USDA-NRCS, Conservation
Innovation Grant in the amount of$700,000 over 3 years to develop a science-based
water quality offset program in Iowa under the framework outlined in the Iowa Nutrient
Reduction Strategy. The grant was sought after with support from the Iowa Department
of Natural Resources (IDNR), Iowa Department of Agriculture, the Nutrient Research
Center at Iowa State University, Iowa Hydraulics Laboratory (Univ. of Iowa), the City of
Dubuque, the City of Storm Lake, the Iowa Soybean Association, the Iowa Agriculture
Water Alliance, Troutman Sanders, LLP, Kieser& Associates, LLC, and U.S. Water
Alliance. The League will use the grant to assist cities such as Dubuque and Storm Lake
in developing a statewide program rather than pursuing individual strategies. The
ultimate goal of the offset program is to generate the same or increased nutrient
reduction at a reduced cost to municipalities and their ratepayers, while increasing a
municipality's flexibility to meet future nutrient reduction needs and improving
partnerships throughout its watershed. The City of Dubuque maintains its commitment
to sustainable and resilient practices where point-source discharge of nutrients can be
reduced beyond traditional methods at its wastewater treatment plant (now known as its
Water & Resource Recovery Center), by partnering with the Iowa League of Cities as
the League works toward a watershed reduction of nutrients. The City of Dubuque and
its surrounding communities both rural and urban can realize a greater benefit with a
watershed approach to nutrient reduction as both point and non-point sources can be
improved through a water quality offset program.
In addition to these successful "pilots" and innovative approaches to water infrastructure issues
which we hope demonstrate our readiness for selection for the WIRFC opportunity, the City
Water Department completes the Drinking Water Infrastructure Needs Survey and Assessment
information every 3 to 5 years for the U.S Environmental Protection Agency through the
Iowa Department of Natural Resources. The survey provides an outline of current and future
projects with the estimated cost required for each of the projects in hopes that the State
Service People Integrity Responsibility Innovation Teamwork
Revolving Loan Fund program will be a resource for our funding needs. Please let us know if
you would like us to forward an additional copy of the completed survey for the purpose of this
volunteer proposal.
The City of Dubuque is poised to volunteer to participate in the WIRFC program as a strong
pilot. We are eager to continue our record of success in innovation and in providing practical,
affordable and essential waste water and drinking water infrastructure models for other
communities with populations up to 100,000.
We thank you for your consideration of our offer. Please feel free to contact me at
563.589.4110 if you have any questions.
Sincerely,
Teri Hawks Goodmann
Assistant City Manager
Service People Integrity Responsibility Innovation Teamwork
Aft (" UNITED STASES ENVIRONMENTAL PRfiECTIAGENCY
WASHINGTON, 20 460
0
4,
JUN 0 2015OFFICE OF
Dear Water System Professional:
In partnership with the states, Puerto Rico, the District of Columbia and the U.S.
territories(Guam, U.S. Virgin Islands,Northern Mariana Islands and American Samoa),
we are conducting the sixth nationwide survey of drinking water systems' capital
investment needs,
Your water system is one of approximately `,800 systems across the country that
we have selected to participate in the 2015 Drinking Fater In rastructure steeds Survey
and.Assessment. Although participation is voluntary, year response will determine ine th
amount of money your state or EPA Region receives under the Drinking in ate
State:Revol in "und , S ), which enables states and EPA Regions to provide low
interest leans and other forms of'financial assistance to water systems. Your participation
is critical to the success ofthe drinking'water'pro rain in your state and EPA Rion,
Please work with your state or, if a US Territory, EPA Regional Office to till out
the enclosed questionnaire and provide the needed supporting documentation. You can
also contact the Needs Survey contractor at 1-4{16-443-9194 if you have questions
Thank you in advance t`tjr your help with the 2015 Assessment.
Sincerely Yours,
Robert Barle}s,National Project Manager
2015 Drinking Water Infrastructure Needs Survey
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