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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 tarp t#?f't ; frr�1Nnt,Y,l m1h,VegotaWx(10 B l,,et3(=",or,r,3011S Pr cvs,s chlonne Ret: Yskkd Paper