Loading...
First Amendment to Community Development Block Grant (CDBG) Subrecipient Agreement with Dubuque Community SchoolsCity of Dubuque City Council Meeting Consent Items # 07. Copyrighted November 20, 2023 ITEM TITLE: First Amendment to Community Development Block Grant (CDBG) Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools SUMMARY: City Manager recommending City Council First Amendment to CDBG Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools. RESOLUTION Authorizing the First Amendment to the CDBG Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: FIN ik[91:ILy,I=11ZINI+13 Description Type MVM Memo City Manager Memo Amendment #1 DCSD Lincoln Wellness Project- Staff Memo Memo Amendment #1 DCSD Lincoln Wellness- Resolution Resolutions Amendment 1 DCSD Lincoln Wellness- Signed Supporting Documentation Insurance Schedule G Insurance Schedule F Supporting Documentation Supporting Documentation City of Dubuque AP 3.02 Public Improvement Supporting Documentation Contracts and Goods and Services Purchasing Policy THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendment to CDBG Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools DATE: November 15, 2023 Housing & Community Development Director Alexis Steger is recommending City Council First Amendment to CDBG Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools. The City of Dubuque entered into a Community Development Block Grant (CDBG) Subrecipient Agreement with Dubuque Community Schools on September 18, 2023, to assist with a complete site redesign at Lincoln Elementary to improve the use of space in a low -mod area. To fully process the Subrecipient Agreement, the City of Dubuque staff requested Insurance Schedule F from Dubuque Community Schools. After much discussion and consultation with Dubuque Community Schools, City of Dubuque staff, and insurance partners, the original Subrecipient Agreement must be amended to reflect the accurate Insurance Schedule for Subrecipients, Contractors, and Subcontractors. Therefore, this memorandum transmits a resolution to amend the Subrecipient Agreement to the accurate language regarding insurance and bonding. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE CITY OF DUB E Masterpiece on the Mississippi To: Michael C. Van Milligen, City Manager From: Alexis M. Steger, Housing & Community Development Director Date: November 14, 2023 Dubuque MI-Aneriea City 2007-2012.2013 2017*2019 Subject: First Amendment to CDBG Subrecipient Agreement between the City of Dubuque and Dubuque Community Schools BACKGROUND The City of Dubuque entered into a Community Development Block Grant (CDBG) Subrecipient Agreement with Dubuque Community Schools on September 18, 2023, to assist with a complete site redesign at Lincoln Elementary to improve the use of space in a low -mod area. To fully process the Subrecipient Agreement, the City of Dubuque staff requested Insurance Schedule F from Dubuque Community Schools. After much discussion and consultation with Dubuque Community Schools, City of Dubuque staff, and insurance partners, the original Subrecipient Agreement must be amended to reflect the accurate Insurance Schedule for Subrecipients, Contractors, and Subcontractors. Therefore, this memorandum transmits a resolution to amend the Subrecipient Agreement to the accurate language regarding insurance and bonding. DISCUSSION The original Subrecipient Agreement stated, "Subrecipient shall meet the strictest standard for bonding and insurance coverage." When the City of Dubuque requested the strictest insurance, Insurance Schedule F, from Dubuque Community Schools, Dubuque Community Schools and their insurance agents questioned if this was the appropriate Insurance Schedule. From there, City of Dubuque staff including Finance, Legal, Housing and Community Development as well as insurance partners reviewed the original Subrecipient Agreement language provided for Insurance and Bonding as well as the City's Insurance Schedules. After much discussion and input from all parties, it was determined that Subrecipients do not need to carry the strictest insurance. Therefore, we are amending our Agreement to reflect the appropriate Insurance Schedules for all community partners. Specifically, our Insurance and Bonding section now states Subrecipients must submit Insurance Schedule G and the Subrecipient's contractors and subcontractors must submit Insurance Schedule F. The Amendment language regarding Insurance and Bonding reflects input from community partners and is much clearer for community partners as well. RECOMMENDATION I respectfully request the City Council approve the first amendment to the Subrecipient Agreement with Dubuque Community Schools and authorize the Mayor to execute the amendment on behalf of the City. Prepared by: Mary Bridget Corken-Deutsch, Community Development Specialist Prepared by Macy Bridget Corken Deutsch Housing & Community Devel., 350 W. 6th St., Suite 312 563 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 130 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 375-23 RESOLUTION AUTHORIZING THE FIRST AMENDMENT TO THE CDBG SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND DUBUQUE COMMUNITY SCHOOLS Whereas, the City of Dubuque and Dubuque Community Schools entered into a CDBG Subreciplent Agreement dated September 18, 2023 with respect to improve the quality of a public facility at 555 Nevada Street, Lincoln Elementary School; and Whereas, the parties desire to modify the Subrecipient Agreement as set out in the First Amendment to the Subrecipient Agreement attached hereto; and Whereas, the Dubuque Community Schools services provided will be to a minimum of 51 % low moderate income area, meeting the CDBG National Objective of Low/Mod-Income Housing benefit, and eligible activity of 03F: Parks, Recreational Facilities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment to the CDBG Subrecipient Agreement be approved. Section 2. That the Mayor of the City of Dubuque is hereby authorized to execute the First Amendment to the CDBG Subrecipient Agreement. Section 3. That the Mayor of the City of Dubuque is hereby authorized and directed to designate the City Manager or the Housing and Community Development Department Director to execute all related documents on behalf of the City of Dubuque, Iowa. Passed, approved, and adopted this 20th day of November 2023. Attest c_:�_;rad N-Cav .a g , ayor Aes12 4�111 Adrienne Breitfelder, City Clerk FIRST AMENDMENT TO SUBRECIPEINT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND DUBUQUE COMMUNITY SCHOOLS This First Amendment to Subrecipient Agreement, dated for reference purposes the 20th day of November , 2023, is made and entered into by the City of Dubuque, Iowa, a Responsible Entity administering Community Development Block Grant funds (City), and Dubuque Community Schools (Subrecipient). WHEREAS, City and Subrecipient entered into a Subrecipient Agreement dated September 18, 2023 (the Subrecipient Agreement); and WHEREAS, City and Subrecipient desire to amend the Subrecipient Agreement as set forth herein. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND COVENANTS CONTAINED HEREIN, CITY AND SUBRECIPIENT AGREE AS FOLLOWS: Section 1, Section E.5 of the Subrecipient Agreement is hereby amended to read as follows: E.5 Insurance and Bondin The Subrecipient shall comply with the bonding and insurance requirements of 2 CFR 200 and any applicable state and local requirements for insurance and bonding. The Subrecipient must carry Insurance Schedule G. The Subrecipient's contractors and subcontractors must carry Insurance Schedule F and list the City of Dubuque and Subrecipient as additional insureds. The Subrecipient is responsible for providing the Certificate of Insurance with all required endorsements for all contractors and subcontractors to the City of Dubuque upon request. For construction or facility improvement contracts or subcontracts entered by the Subrecipient for the purpose of executing the scope of work in Exhibit A, the City may accept the bonding policy and requirements of the Subrecipient provided that the City has made a determination that the City's interest is adequately protected. If such a determination has not been made, the minimum requirements must be as outlined in the City of Dubuque's Administrative Policy 3.02 Public Improvement Contracts and Goods and Services Purchasing Policy— Procedure V. A-D. Section 2. List of Exhibits of the Subrecipient Agreement is hereby amended to read as follows: Exhibit E Insurance Schedule G Exhibit F Insurance Schedule F Exhibit G City of Dubuque Administrative Policy 3.02 Public Improvement Contracts and Goods and Services Purchasing Policy Section 3. Except as modified herein, the Subrecipient Agreement shall remain in full force and effect. CITY OF DUBUQUE, IOWA By: Brad M.Cavanag , yor Dubuque Community Schools By: Kate Parks, Board President City of Dubuque Insurance Requirements for Vendors (Suppliers, Service Providers) INSURANCE SCHEDULE G 1. Dubuque Community Schools shall furnish a signed certificate of insurance to the City of Dubuque, Iowa for the coverage required in Exhibit I prior to the contract commencement. Each certificate shall be prepared on the most current ACORD form approved by the Iowa Insurance Division or an equivalent. Each certificate shall include a statement under Description of Operations as to why the certificate was issued. Eg: Project # or purchase agreement 2. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa and all insurers shall have a rating of A or better in the current A.M. Best's Rating Guide. 3. Each certificate shall be furnished to the Finance Department of the City of Dubuque. 4. The service provider shall be required to carry the minimum coverage/limits, or greater if required by law or other legal agreement, in Exhibit I. Failure to provide the required minimum coverage shall not be deemed a waiver of such requirements by the City of Dubuque. 5. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. All required endorsements shall be attached to certificate. 7. Whenever a specific ISO form is referenced the current edition of the form must be used unless an equivalent form is approved by the Director of Finance and Budget. The service provider must identify or list in writing all deviations and exclusions from the ISO form. 8. If vendor's limits of liability are higher than the required minimum limits then the vendor's limits shall be this agreement's required limits. 9. Vendor shall require all subcontractors and sub -subcontractors to obtain and maintain during the performance of work insurance for the coverages described in this Insurance Schedule and shall obtain certificates of insurance from all such subcontractors and sub -subcontractors. Vendor agrees that it shall be liable for the failure of a subcontractor and sub -subcontractor to obtain and maintain such coverage. The City may request a copy of such certificates from the Vendor. 10. Vendor shall be responsible for deductibles/self-insured retention for payment of all policy premiums and other costs associated with the insurance policies required below. 11. All certificates of insurance must include agents name, phone number, and email address. 12. The City of Dubuque reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by this Schedule at any time. 13. The City of Dubuque reserves the right to modify these requirements, including limits, based on changes in the risk or other special circumstances during the term of the agreement, subject to mutual agreement of the parties. Page 1 of 4 Schedule G Vendors April 2021 City of Dubuque Insurance Requirements for Vendors (Suppliers, Service Providers) INSURANCE SCHEDULE G (continued) EXHIBIT I A) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products -Completed Operations Aggregate Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 Each Occurrence $1,000,000 Fire Damage Limit (any one occurrence) $50,000 Medical Payments $5,000 1) Coverage shall be written on an occurrence, not claims made, form. The general liability coverage shall be written in accord with ISO form CG 00 01 or business owners form BP 00 02. All deviations from the standard ISO commercial general liability form CG 00 01, or Business owners form BP 00 02, shall be clearly identified. 2) Include ISO endorsement form CG 25 04 "Designated Location(s) General Aggregate Limit." 3) Include endorsement indicating that coverage is primary and non-contributory. 4) Include Preservation of Governmental Immunities Endorsement (Sample attached). 5) Include additional insured endorsement for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10 (Ongoing operations) or its equivalent. 6) Policy shall include Waiver of Right to Recover from Others endorsement. B) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter 85. Coverage A Statutory —State of Iowa Coverage B Employers Liability Each Accident $100,000 Each Employee -Disease $100,000 Policy Limit -Disease $500,000 Policy shall include Waiver of Right to Recover from Others endorsement. Coverage B limits shall be greater if required by the umbrella/excess insurer. OR If, by Iowa Code Section 85.1A, the Vendor is not required to purchase Workers' Compensation Insurance, the Vendor shall have a copy of the State's Nonelection of Workers' Compensation or Employers' Liability Coverage form on file with the Iowa Workers' Compensation Insurance Commissioner, as required by Iowa Code Section 87.22. Completed form must be attached. Page 2 of 4 Schedule G Vendors April 2021 City of Dubuque Insurance Requirements for Vendors (Suppliers, Service Providers) INSURANCE SCHEDULE G (continued) C) POLLUTION LIABILITY Coverage required: —Yes X No Pollution liability coverage shall be required if the lessee, contracting party, or permittee has any pollution exposure for abatement of hazardous or contaminated materials including, but not limited to, petroleum products, the removal of lead, asbestos, or PCBs. Pollution product and completed operations coverage shall also be covered. Each Occurrence $2,000,000 Policy Aggregate $4,000,000 1) Policy to include job site and transportation coverage. 2) Include additional insured for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10. (Ongoing operations) or its equivalent and CG 20 37(competed operations). 3) Include Preservation of Governmental Immunities Endorsement. 4) Provide evidence of coverage for 5 years after completion of project. D) PROFESSIONAL LIABILITY $1,000,000 Coverage required: —Yes X No If the required policy provides claims -made coverage: 1) The Retroactive Date must be shown and must be before the date of the agreement. 2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the work or services. 3) If coverage is canceled or non -renewed and not replaced with another claims - made policy form with a Retroactive Date prior to the date of the agreement, the contractor must provide "extended reporting" coverage for a minimum of five (5) years after completion of the work or services. E) CYBER LIABILITY/BREACH $1,000,000 Coverage required: Yes X No Coverage for First and Third Party liability including but not limited to lost data and restoration, loss of income and cyber breach of information. F) UMBRELLA/EXCESS $1,000,000 Coverage required: X Yes _ No The General Liability, Automobile Liability and Workers Compensation Insurance requirements may be satisfied with a combination of primary and Umbrella or Excess Liability Insurance. If the Umbrella or Excess Insurance policy does not follow the form of the primary policies, it shall include the same endorsements as required of the primary policies including Waiver of Subrogation and Primary and Non-contributory in favor of the City. Page 3 of 4 Schedule G Vendors April 2021 City of Dubuque Insurance Requirements for Vendors (Suppliers, Service Providers) Please be aware that naming the City of Dubuque as an additional insured as is required by this Insurance Schedule may result in the waiver of the City's governmental immunities provided in Iowa Code sec. 670.4. If you would like to preserve those immunities, please use this endorsement or an equivalent form. PRESERVATION OF GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurer expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurer further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurer. 4. Non -Denial of Coverage. The insurer shall not deny coverage under this policy and the insurer shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN (DEPARTMENT MANAGER: FILL IN ALL BLANKS AND CHECK BOXES) Page 4 of 4 Schedule G Vendors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub -Subcontractors Class A: Class B: Class C: INSURANCE SCHEDULE F Asbestos Removal Fiber Optics Sanitary Sewers Asphalt Paving Fire Protection Sheet Metal Concrete Fireproofing Site Utilities Construction Managers General Contractors Shoring Cranes HVAC Special construction Culverts Mechanical Steel Decking Paving & Surfacing Storm sewers Demolition Piles & Caissons Structural Steel Deconstruction Plumbing Trails Earthwork Retaining Walls Tunneling Electrical Reinforcement Water main Elevators Roofing Chemical Spraying Landscaping Rough Carpentry Doors, Window & Masonry Stump Grinding Glazing Vehicular Snow Removal Tank Coating Drywall Systems Painting & Wall Covering Tree Removal Fertilizer Application Pest Control Tree Trimming Geotech Boring Scaffolding Tuckpointing Insulation Sidewalks Waterproofing Finish Carpentry Plastering Well Drilling Carpet Cleaning General Cleaning Power Washing Carpet & Resilient Grass Cutting Tile & Terrazzo Flooring Flooring Janitorial Window Washing Caulking & Sealants Non Vehicular Snow & Acoustical Ceiling Ice Removal Filter Cleaning Office Furnishings Page 1 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors INSURANCE SCHEDULE F (continued) Contractor shall furnish a signed certificate of insurance to the department responsible for the contract for the coverage required in Exhibit I prior to commencing work and at the end of the project if the term of work is longer than 60 days. Contractors presenting annual certificates shall present a certificate at the end of each project with the final billing. Each certificate shall be prepared on the most current ACORD form approved by the Iowa Department of Insurance or an equivalent approved by the Director of Finance and Budget or Designee. The certificate must clearly indicate the project number, project name, or project description for which it is being provided Eg: Project # Project name: or Project Location at or construction of 2. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa and all insurers shall have a rating of A or better in the current A.M. Best's Rating Guide. 3. Each Certificate required shall be furnished to the Department of the City of Dubuque. 4. Failure to provide the coverages described in this Insurance Schedule shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this contract. 5. Contractor shall require all subcontractors and sub -subcontractors to obtain and maintain during the performance of work insurance for the coverages described in this Insurance Schedule and shall obtain certificates of insurance from all such subcontractors and sub -subcontractors. Contractor agrees that it shall be liable for the failure of a subcontractor and sub -subcontractor to obtain and maintain such coverage. The City may request a copy of such certificates from the Contractor. 6. All required endorsements to various policies shall be attached to the certificate of insurance. 7. Whenever an ISO form is referenced the current edition must be provided. 8. Contractor shall be required to carry the minimum coverage/limit, or greater if required by law or other legal agreement, in Exhibit I - Insurance Schedule F. If the contractor's limits of liability are higher than the required minimum limit, then the contractor's limits shall be this agreement's required limits. 9. Contractor shall be responsible for deductibles and self -insured retention for payment of all policy premiums and other cost associated with the insurance policies required below. 10. All certificates of insurance must include agents name, phone number, and email address. 11. The City of Dubuque reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by this Schedule at any time. 12. The City of Dubuque reserves the right to modify these requirements, including limits, based on changes in the risk or other special circumstances during the term of the contract, subject to mutual agreement of the parties. Page 2 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors INSURANCE SCHEDULE F (continued) EXHIBIT I A) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products -Completed Operations Aggregate Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Each Occurrence $1,000,000 Fire Damage Limit (any one occurrence) $50,000 Medical Payments $5,000 1) Coverage shall be written on an occurrence, not claims made, form. The general liability coverage shall be written in accord with ISO form CG 00 01 or business owners form BP 00 02. All deviations from the standard ISO commercial general liability form CG 00 01 or business owners form BP 00 02 shall be clearly identified. 2) Include ISO endorsement form CG 25 04 "Designated Location(s) General Aggregate Limit" or CG 25 03 "Designated Construction Project(s) General Aggregate Limit" as appropriate. 3) Include endorsement indicating that coverage is primary and non-contributory. 4) Include Preservation of Governmental Immunities Endorsement. (Sample attached). 5) Include additional insured endorsement for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10 (Ongoing operations). 6) The additional insured endorsement shall include completed operations under ISO form CG 20 37 during the project term and for a period of two years after the completion of the project. 7) Policy shall include Waiver of Right to Recover from Others endorsement. B) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter 85. Coverage A Statutory —State of Iowa Coverage B Employers Liability Each Accident $100,000 Each Employee -Disease $100,000 Policy Limit -Disease $500,000 Policy shall include Waiver of Right to Recover from Others endorsement. Coverage B limits shall be greater if required by the umbrella/excess insurer OR If, by Iowa Code Section 85.1A, the Contractor is not required to purchase Workers' Compensation Insurance, the Contractor shall have a copy of the State's Nonelection of Workers' Compensation or Employers' Liability Coverage form on file with the Iowa Page 3 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors C) D) E) INSURANCE SCHEDULE F (continued) Workers' Compensation Insurance Commissioner, as required by Iowa Code Section 87.22. Completed form must be attached. AUTOMOBILE LIABILITY Combined Single Limit $1,000,000 Coverage shall include all owned, non -owned, and hired vehicles. If the Contractor's business does not own any vehicles, coverage is required on non -owned and hired vehicles. 1) Policy shall include Waiver of Right to Recover from Others endorsement. UMBRELLA/EXCESS LIABILITY The General Liability, Automobile Liability and Workers Compensation Insurance requirements may be satisfied with a combination of primary and Umbrella or Excess Liability Insurance. If the Umbrella or Excess Insurance policy does not follow the form of the primary policies, it shall include the same endorsements as required of the primary policies including Waiver of Subrogation and Primary and Non-contributory in favor of the City. All Class A contractors with contract values in excess of $10,000,000 must have umbrella/excess liability coverage of $10,000,000. All Class A and Class B contractors with contract values between $500,000 and $10,000,000 must have umbrella/excess liability coverage of $3,000,000. All Class A and B contractors with contract values less than $500,000 must have umbrella/excess liability coverage of $1,000,000. All Class C contractors are not required to have umbrella/excess liability coverage. All contractors performing earth work must have a minimum of $3,000,000 umbrella regardless of the contract value. POLLUTION LIABILITY Coverage required: —Yes _ No Pollution liability coverage shall be required if project involves any pollution exposure for hazardous or contaminated materials including, but not limited to, the removal of lead, asbestos, or PCB's. Pollution product and complete operations coverage shall also be covered. Each Occurrence $2,000,000 Policy Aggregate $4,000,000 1) Policy to include job site and transportation coverage. Page 4 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors INSURANCE SCHEDULE F (continued) 2) Include additional insured for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10. (Ongoing operations) or its equivalent and CG 20 37 (completed operations) or its equivalent. 3) Include Preservation of Governmental Immunities Endorsement. 4) Provide evidence of coverage for 5 years after completion of project. F) RAILROAD PROTECTIVE LIABILITY Coverage required: —Yes _ No Any contract for construction or demolition work on or within fifty feet (50') from the edge of the tracks of a railroad and affecting any railroad bridge, trestle, tracks, roadbeds, tunnel, underpass, or crossing, for which an easement, license or indemnification of the railroad is required, shall require evidence of the following additional coverages. Railroad Protective Liability: $ each occurrence (per limits required by Railroad) $ policy aggregate (per limits required by Railroad) OR An endorsement to the Commercial General Liability policy equal to ISO CG 24 17 (Contractual Liability -Railroads). A copy of this endorsement shall be attached to the certificate of insurance. Page 5 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 City of Dubuque Insurance Requirements for General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors Please be aware that naming the City of Dubuque as an additional insured as is required by this Insurance Schedule may result in the waiver of the City's governmental immunities provided in Iowa Code sec. 670.4. If you would like to preserve those immunities, please use this endorsement or an equivalent form. PRESERVATION OF GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurer expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurer further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurer. 4. Non -Denial of Coverage. The insurer shall not deny coverage under this policy and the insurer shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN (DEPARTMENT MANAGER: FILL IN ALL BLANKS AND CHECK BOXES) Page 6 of 6 Schedule F, General, Artisan or Trade Contractors, Subcontractors or Sub Subcontractors April 2021 CITY OF DUBUQUE ADMINISTRATIVE POLICY POLICY NUMBER: 3.02 SUBJECT: PUBLIC IMPROVEMENT CONTRACTS AND GOODS AND SERVICES PURCHASING POLICY APPROVED BY: CITY MANAGER EDIT RESPONSIBILITY: FINANCE EFFECTIVE DATE: OCTOBER 1, 1979 REVISED JULY 1, 2022 01:716b94 The purpose of this Administrative Policy (AP) is to state the City's policy on public improvement contracts and purchases of goods and services and to provide standard procedures for public improvement contracts and the purchase of goods and services for the City. SCOPE This AP establishes a policy for public improvement contracts and purchasing goods and services and describes procedures for the preparation, processing, authorization and approval of all purchases for the City. POLICY RESPONSIBILITY The Director of Finance and Budget is responsible for the establishment and administration of an orderly process of public improvement contracts and purchasing materials and services for the City. Purchases for which the City will be expected to make payment or reimbursement shall be completed in accordance with the provisions of this AP. The City uses a de -centralized purchasing system. Within the limitations of this Administrative Policy, Department/Division Managers are responsible for the dissemination and monitoring of the requirements of this AP for all personnel under their jurisdiction. Department Managers and their designees are responsible for preparing specifications, soliciting bids, reviewing bids, seeking City Council approval through the City Manager when necessary, and preparing purchase requisitions. Department/Division Managers are solely responsible for any funding source (e.g. grants) requirements for purchases before contracting with vendors. Employees are expected to participate in training offered by the Finance Department. Training can be scheduled anytime by contacting the Finance Department. Department Managers shall be responsible for monitoring the training needs of those employees. Exemptions to Purchasing Authority: 1. Organizational units that are exempt from the requirements of this AP by state law and City ordinances are: (a) Airport Commission. (b) Board of Trustees of the Carnegie -Stout Public Library. (c) Dubuque Metropolitan Area Solid Waste Agency (DMASWA). 2. Organizational units exempt from purchasing authority are not exempt from other City purchasing policies and are invited to adopt all other components of this Administrative Policy. PRINCIPLES OF PURCHASING AND CONTRACTING The principles of purchasing and contracting in the City of Dubuque are as follows: 1. Consider the best interests of the City in all transactions and to carry out its established policies. 2. Purchase without prejudice, seeking to obtain the maximum value for each dollar of expenditure. 3. Work consistently to become knowledgeable of the equipment, materials, supplies, services and construction work required for use by the City and establish practical purchasing procedures for obtaining them. 4. Avoid all unethical practices and the appearances of the same. 5. Subscribe to and work for honesty and truth in buying and refrain from all forms of conflict of interest. 6. Develop and maintain goodwill between the City and its suppliers and its vendors. 7. Be familiar with federal and state regulations governing purchasing and contracting activities or seek assistance when necessary. PROCEDURE The following procedure shall be followed for the purchase of all goods and services, including all types of bid contracts and lease or lease purchase agreements for all departments of the City. Vendor Set -Up A Vendor Set -Up Sheet along with a W-9 form shall be forwarded to the Finance Department prior to issuing the first payment to a new vendor through secure methods. II. Insurance Requirements Construction/Equipment/Maintenance/Service contracts and procurements with the City require a certificate of insurance. Standard insurance requirements have been established, which may be found on CODI and shall be stated in every RFQ, RFP and contract issued by the City. Coverage limits are set by the City's Finance Department and City Attorney's Office and should not be changed without Finance Department approval. Insurance certificates and endorsements, including renewal certificates, are required to be reviewed and approved by the Finance Department. (See AP 3.26) III. Local Purchasing Preference As required by Iowa Code § 23A.3, it shall be City policy to consider purchasing equipment, materials, supplies and services from locally owned businesses located within the City of Dubuque when the cost and other considerations are relatively equal. The City allows locally owned -businesses located within the City of Dubuque corporate limits a ten (10) percent preference on purchases up to $500, and a five (5) percent preference on purchases of $500 or more. Purchases which are made through the formal bid process (i.e., public improvement projects) must be awarded to the lowest responsive, responsible bidder as required by Iowa Code chapter 26. If the purchase is subject to federal, state or county grant requirements, the applicable provisions of the grant supersede the City's local purchasing preference. IV. Specifications The development of bid specifications is the responsibility of the issuing department. Specifications shall be detailed to the extent that they assist the purchaser in obtaining the best value, provide a basis for full and fair competitive bidding upon a common standard, and should be free from any restrictions which would have the effect of restricting competition. When an outside vendor develops the specifications or statement of work, that vendor is excluded from competing since the terms created and inside knowledge gained in the process may give the vendor an unfair competitive advantage. V. Bond Bonds offer tangible protection in the form of monetary assurances that the bidder will meet the bidder's obligations. Bonds must be secured by the bidder at the bidder's own cost if required in the specifications. A bid bond is an agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid, that the bidder will furnish other bonds as required, and that if the contract is awarded to the bonded (insured) bidder, the bidder will accept the contract and perform the work as bid or else the surety will pay a specified amount if the bidder refuses to sign the contract. Bid bonds protect the City from erroneous or deliberate low bids which the vendor has no intention of honoring. Should the vendor fail to enter into a contract, the bid bond is forfeited. Bid bonds must be submitted with the bid. Bid bonds are required for public improvement projects and repair and maintenance of public improvements, the minimum amount of which will be in accordance with the Iowa Code. Other bids may require bid bonds as determined to be in the City's best interest. B. Performance Bond This bond is a surety instrument guaranteeing that the vendor will perform per the terms of the contract and is generally in an amount of 100% of the bid. This bond affords protection from non-performance and non -completion of major contracts, the efforts of which would result in considerable injury to the City. Should the vendor default, the bond is cashed and the City may then utilize the funds to complete the contract with another vendor. Performance bonds must be submitted within the required time after the contract is awarded. Performance Bonds are required for public improvement projects, the minimum amount of which will be in accordance with the Iowa Code. Other bids may require performance bonds as determined to be in the City's best interest. C. Payment Bond A payment bond, generally in the amount of 100% of the bid, guarantees payment, as required by law, to all sub -contractors and suppliers providing goods and services to the general contractor, who is under contract to the City. The payment bond relieves the City of financial liens against a project should the general contractor fail to pay suppliers and sub -contractors. These creditors will look to the bond for payment. Payment bonds must be submitted within the requirement time after the contract is awarded. Payment bonds are required for public improvement projects. The amount of the bond must be in accordance with the Iowa Code. Other bids may require payment bonds as determined to be in the City's best interest. D. Maintenance Bond The maintenance bond protects the City's completed construction project for a specified time period against defects and faults in materials, workmanship and design that could arise later if the project was done incorrectly. The bond functions as an insurance policy on the construction project to make sure the contractor will either correct any defects that arise or that the City is compensated for those defects. Maintenance bonds are not required by state law but is City policy to require maintenance bonds public improvement projects. VI. Bids The City of Dubuque requires fair and open competition. Where purchases are made under a bid process, the name of vendors submitting quotations and the bid amounts shall be listed and attached with the purchase order and also with the payment request on either the Quote Procurement Form or the Sole Source Procurement Justification Form. In the event the lowest bid was not honored, for example, the formal bid process does not apply, an explanation shall be attached before it will be accepted for processing by the Finance Department. The Department Manager or Department Manager's designee may begin the bid process with a Request for Qualifications (RFQ) or a Request for Information (RFI) to pre -qualify firms or to obtain sufficient information from potential providers to prepare a more detailed solicitation. A. Equipment/Materials and Supplies Bidding Procedures The Department Manager or the Department Manager's designee is responsible for the following when contracting for the purchase of equipment, materials, and supplies: • Ensuring funding is available and identifying the funding source • Preparing specifications. • Soliciting bids • Reviewing bids • Awarding or recommending the supplier based on the amount of the bid. If the purchase is subject to the conditions of federal, state or county grant requirements, the applicable provisions of the grant will determine the method of bid solicitation and award. • Seeking City Manager and/or City Council approval when necessary. • Preparing the purchase requisition. 1) Purchase Approval Authority and Limitations Purchases of equipment, materials, and supplies which have been budgeted shall be approved in the following manner: a) Purchases under $1,000 shall be approved by the Department Manager or their designee. b) Purchases of $1,000 or more shall be approved by the Department/Division Manager and the Director of Finance and Budget or their designee by the purchase order approval process. c) Purchases of $10,000 or more of equipment and vehicles require a memo from the Department Manager to the City Manager. 2) Purchases of equipment, materials, and supplies which have NOT been budgeted, shall be approved in the following manner: a) Purchases under $1,000 shall be approved by the Department/Division Manager or the Department/Division Manager's designee. b) Purchases of $1,000 or more Department Managers shall obtain approval from the Director of Finance and Budget and City Manager prior to ordering, negotiating, receiving, or processing payment for this type of purchase. Approval must be obtained through a memo to the City Manager, which includes the funding source. 3) Competitive Bidding Procedures for Equipment, Material and Supplies a) Purchase price less than $3,000 competitive pricing is encouraged. b) Purchase price between $3,000 and $25,000 at least three competitive written bids are required. c) Purchase price $25,000 or more departments shall utilize a formal Request for Quote (RFQ) process for the competitive pricing of equipment, materials, and supplies. d) Posting bids under "Doing Business" on the City's Website is recommended. B. Service Bidding Procedures 1) Responsibilities of Departments Contracting for Services The Department Manager or the Department Manager's designees are responsible for the following when contracting for services: a) Ensuring funding is available for the project and identifying the funding source. b) Determining if the Request for Proposal (RFP) process should be used to solicit proposals (see AP 3.17), including the use of the RFP review committee process. c) Preparing a clearly written Scope of Services. d) Soliciting bids or following the RFP process. e) Reviewing proposals. f) Recommending the award of the contract or awarding the contract based on the total cost of the contract. If the purchase is subject to the conditions of federal, state or county grant requirements, the applicable provisions of the grant will determine the method of bid solicitation and award. Certain Grant funded contracts for services must be competitively bid every three years to avoid running into "retainer" status and must be terminated after the period of three years. g) Seek City Manager or City Council approval to award a contract for services, when required. 2) Purchase Approval Authority and Limitations Procurement of services which have been budgeted, shall be approved in the following manner: a) Purchases under $1,000 shall be approved by the Department Manager or their designee. b) Purchase price between $1,000 and $25,000 shall be approved by the Department Manager and the Director of Finance and Budget or their designee by the purchase order approval process. c) Purchases with costs of $25,000 or more require prior approval by the Director of Finance and Budget and City Manager. Approval shall be obtained through a memo that explains the reason for the purchase and identifies the funding source that will be used to cover the cost of the purchase. d) Posting bids under "Doing Business" on the City's Website is recommended. 3) Purchases of services which have NOT been budgeted, shall be approved in the following manner: a) Unbudgeted Services for less than $1,000 shall be approved by the Department/Division Manager or their designee. b) Unbudgeted Services $1,000 or more Department Managers shall obtain approval from the Director of Finance and Budget and City Manager prior to ordering, negotiating, receiving, or processing payment for this type of purchase. Approval shall be obtained through a memo to the City Manager, which includes the funding source. C) Construction Bidding Procedures 1) Overview of Iowa Construction Bidding Procedures Act Public Construction Bidding Procedures: Iowa Code Chapter 26 establishes three procedures for bidding public construction: • The Competitive Bidding Process; • The Competitive Quotation Process; and • The Informal Contracting Process. A. The Competitive Bidding Process The formal competitive bidding procedure is applicable to the following public improvements: TABLE 1 Year Threshold Horizontal Vertical Effective Infrastructure Infrastructure Competitive Bid $77,000 $139,000 2022 Competitive N/A $77,000 Quote The above rates are updated annually. For current rates visit: https://iowadot.gov/local_systems/publications/bid-and-quote-thresholds. Table 1 Notes: • The thresholds shown above apply to construction, reconstruction, or improvement projects. Repair or maintenance projects are not subject to these thresholds. • Horizontal Infrastructure are publicly owned roads, bridges or culverts. • Vertical Infrastructure are buildings, all appurtenant structures, utilities, incidental street improvements including sidewalks, site development features, recreational trails and parking facilities. • Competitive quote procedures are not required for horizontal infrastructure. • Refer to Addendum 2 for definitions. Background Iowa Code Section 314.1 B establishes horizontal and vertical bid threshold subcommittees that meet at least every other year to adjust the bid and quote thresholds for city and county projects. These thresholds become effective on Jan. 1 of the year following the year in which the adjustment is made. If the estimated total cost of a public improvement exceeds the competitive bid threshold in section 38.3 of Iowa Code, or as adjusted in section 314.1 B in Iowa Code, the governmental entity shall not enter into a contract for the public improvement until the governmental entity has held a public hearing and has approved the proposed plans, specifications, and form of contract, and estimated total cost of the public improvement. Notice of the hearing must be published as provided in section 362.3 of Iowa Code. B. Competitive Quotation Process The competitive quotation procedure, found in Iowa Code § 26.14, applies to projects involving the construction of public improvements having an estimated total cost less than the competitive bid limit. The lower threshold for competitive quotations is subject to periodic adjustment and those adjustments are tied to adjustments which are periodically made for the competitive bid thresholds that apply to highway, bridge or culvert work. The City of Dubuque uses the competitive quotation procedure for public improvements having an estimated total cost less than the competitive bid limit, but more than $25,000. C. Informal Contracting Process a) The contracting procedure for work with an estimated cost less than $25,000 is the same as the competition quotation procedure, except that City Council approval is not required. b) A public improvement project with an estimated cost less than $25,000 does not require a performance, payment and maintenance bond. See Iowa Code § 573.2. c) The City has a separate Short Form Public Improvement Contract Document that may be used for projects with an estimated value less than $25,000. 2) Establishment of Purchasing Functions Purchasing Authority Iowa Code § 372.8 provides that the City Manager, as Chief Administrative Officer, shall supervise the performance of all contracts for work to be done for the City, make all purchases of material and supplies, and see that such material and supplies are received, and are of the quality and character called for by the contract. City Council Resolution No. 307-07 delegates the following authority to the City Manager: Section 1. Resolution No. 183-06 is rescinded. Section 2. The City Manager shall have the authority to award and execute contracts, to authorize work to proceed under contracts, and to approve the vendor's performance and payment bonds, and to make purchases on behalf of the City as follows: • Leases for a term of three years or less; • Insurance contract renewals. The City Manager shall submit a report to the City Council of all such contracts or purchases in excess of $ 100,000, leases and insurance contract renewals at the first regular City Council meeting of each month. Section 2. The City Manager may delegate the authority granted herein provided such delegation is in writing. Iowa Code § 380.4 provides that a resolution must be passed to accept public improvements and facilities upon their completion. 3) Highway, Bridge or Culvert Projects a) Competitive bidding for construction, reconstruction or improvement of highways, bridges or culverts. The law requires that all "new construction"; "reconstruction" or "improvement" of highway, bridge or culvert infrastructure shall be advertised and let for bid if it exceeds the applicable bid thresholds for the City, unless it involves emergency work which is covered by a separate procedure. The City may reject all the bids. The City may also re -advertise and re -let the project without an additional public hearing if no substantial changes are made to the project's plans or specifications. b) Repair or maintenance of highway, bridge or culvert improvements. The City may self -perform, with employees of the City, any and all "repair or maintenance" work relating to highway, bridge or culvert work, or may enter into a contract for "repair or maintenance work." The definition of "public improvement" specifically excludes "repair or maintenance work performed by employees of a city". The effect of that provision is that neither the competitive bid nor the competitive quotation provisions of Iowa Code Chapter 26 apply to repair or maintenance work performed on facilities owned by the City when that work is being performed by City employees, and the City may use its own employees to perform that work without limitation as to its dollar value (IAC 761-180.4(2)). However, if the City wishes to have such repair or maintenance work performed by a private vendor, the exception would no longer apply, because the work would not be performed by employees of the City, and if the estimated cost of that work exceeds the competitive bid or competitive quotation threshold, the City will then have to obtain competitive bids or competitive quotations for that work. c) The Iowa Department of Transportation has established by administrative rule definitions for "new construction", "reconstruction", "improvement", and "repair or maintenance". The rules include provisions relating to the statutory requirement for detailed cost accounting by governmental entities for contract work or self -performed projects, and for annual reporting of such costs to the Department. These rules were developed with the assistance of an advisory committee of public and private sector organizations. 4) Independent Estimate The Department Manager or designee will establish the written independent estimate (i.e. architect's or engineer's estimate) for the construction contract. The independent estimate is to be determined prior to bid initiation. The Independent Estimate shall be provided to the City Council when requesting permission to initiate bidding on the project. The Department Manager or designee must ensure that the contract scope is not reduced without disclosure to compensate for an incorrect estimate. 5) Award and Notice to Proceed Based on the estimated cost of the project, contracts will be awarded by the City Council and signed by the Mayor unless that authority has been clearly delegated and authorized to others by the City Council. After the contract has been signed by the required parties, a notice to proceed with construction will be issued by the City. Prior to issuance of a notice to proceed, the vendor's contract, bond(s), notice of award, notice to proceed and certificate(s) of insurance and sales tax exemption form must be provided to the City consistent with the terms of the contract documents. 6) Contract Change Orders Resolution No. 389-05 authorizes the City Manager to approve change orders. a) After award of a public improvement contract by the City Council, the City Manager or the City Manager's designee may approve change orders subject to the following procedure. All change orders shall be monitored by the City Manager. When the total for all change orders exceeds 10% of the contract amount budgeted project contingency amount that was approved by the City Council for the project, for all subsequent change orders the City Manager shall provide an informational memorandum to the City Council containing an explanation of each change order and the status of the project and all change orders issued to date at the next regularly scheduled City Council meeting. Work on a project shall be allowed to continue during the time the informational memorandum is being prepared for the City Council. b) The foregoing procedure shall also apply to unit priced contracts when there will be a change in the number of units that will have the effect of increasing the total contract amount in excess of 10% of the budgeted amount approved by the City Council for the project or $100,000, whichever amount is greater. c) Notwithstanding the foregoing, a change order shall be submitted to the City Council for approval when it involves a material change in the quantity or type of work to be done under the contract. 7) Retainage a) Public improvement contracts must include retainage, the minimum amount and terms of which will be in accordance with the Iowa Code 573. b) Release of retained funds on public projects and repair and maintenance of public improvements shall be in accordance with the Iowa Code 573. c) Other types of contracts may include a retainage requirement if it is determined to be in the City's best interest. 8) Contract Closeout All contracts will be formally closed out by the overseeing department. Each department will be responsible for contract closeout procedures, which should include at a minimum: a) Ensuring the contract file includes original copies of all essentials. b) Including contracts and contract procurement information. c) Ensuring any encumbered contract money is released once all claims are resolved. d) Ensuring as -built information is recorded and submitted to the responsible department for achieving. e) Including formal record series based on each department's formats and formal requirements. f) Ensuring all releases of claims are signed and filed in the contract file. g) Project Acceptance. All public improvements, regardless of cost must be accepted by the City Council per Iowa Code. D. Addendums to Invitations for Bid An addendum to an invitation for bids shall be issued if necessary to: a) Make changes in the Invitation for bids. b) Correct defects or ambiguities. c) Add supplemental information needed by the bidders. d) Revise information provided in the issued bid documents. 2. An addendum shall be: a) Identified and made available to all prospective bidders. b) Acknowledged by perspective bidders on their submitted bid form c) Issued within a reasonable time before bid closing to allow prospective bidders to consider them in preparing their bids. If the time and date set for bid closing does not permit sufficient time for bid preparation, the time and date for bid closing shall be extended by an addendum. E. Bid Receipt/Opening The City Clerk, or other authorized City representative, shall ensure each bid is brought to the location of the "opening" with date and time of receipt noted. The City representative shall state that this is the bid opening for " " bid. The City representative should state that the opening and reading of the bids shall not be interpreted by those in attendance as to whether the bids are being accepted or rejected by the City. Bids shall be received and opened only under these circumstances: a) When bids are received prior to due date and time stated in the solicitation. b) When the bids, on the outside, are clearly marked as required by the solicitation. c) When the bidder attended the mandatory pre -bid conference and/or tour, if applicable. If a bid is received after the due date, or the vendor did not attend a mandatory pre -bid conference (if required), the City shall return the unopened bid to the submitting representative. If the bid is returned unopened, a letter shall be sent to the firm explaining the reason the bid was returned. Upon opening the bids, when applicable, the City representative shall announce in alphabetical order the name of the firm that has submitted the bid and then read the dollar amount offered. Upon reading all of the bids received, the City representative shall announce that the bid opening is closed and all bids are under evaluation to determine the lowest cost, responsive, responsible bid. Any reference to the low bid or bidder should be as the "apparent" low bid or bidder until all bids and supporting documentation have been reviewed and verified as complete and responsive. Bids should not be reviewed in the presence of the bidders. Rather, the review will be conducted in a controlled environment in the presence of at least one witness immediately after the formal bid opening is concluded. The City may waive minor or immaterial irregularities in a bid if allowed under Iowa law. The bid tabulation shall be completed by the Department Manager or designee. The addendum(s) issued should be included on the bid tabulation. Bids will be held until the contract is awarded by the City. Any inquiries regarding the outcome of the solicitation opening and/or potential contract award will be directed to the Department Manager or the Department Manager's designee. During the procurement and before the award, all bid submittals should be kept until the execution of the contract signing. After execution of the bid documents, bid bonds of non -successful bidders shall be returned. The Department Manager or the Department Manager's designee shall keep all bids during the project but the non -awarded bids should be discarded when the contract file is closed and sent to storage. F. Mistakes in Bids The following guidance is provided: a) A bidder may modify, withdraw, or resubmit its bid at any time before the bid opening if the modification or withdrawal is received before the time and date set for bid opening and at the location designated in the bid solicitation. b) All documents concerning a modification or withdrawal of a bid will be retained in the project file. c) After bid opening, a bid mistake based on any type of error may not be corrected. d) When a mistake in the bid or other irregularity is suspected, as in situations where the bid is extremely low in comparison with the other bids, the City may contact the bidder and request written confirmation of the bid or any other documents that are submitted with the bid, associated with the bid, or required to determine that the apparent low bidder is responsive and responsible. For public improvement contracts, unbalanced bids will be considered grounds for finding the bid nonresponsive. Nothing in the review procedure shall permit revision of the total amount of the base bid. e) Nothing contained in this procedure can be used to improve a non -responsive bid to make it become responsive. f) Review by the City Attorney's Office will be made prior to contract award. G. Responsibility Criteria a) The City shall determine that a bidder is responsible before awarding a contract to the apparent low bidder. b) Bids will be reviewed by engineers and/or City departments administrating the projects for accuracy and inclusion of all required documents. c) In addition to the criteria set forth in this article, the City of Dubuque may establish specific responsibility or qualification criteria for a particular project. Any specific responsibility criteria shall be set forth in the signed agreement. d) Factors to be considered in determining that an apparent low bidder is not responsible include, but are not limited to: • Bidder has previously breached a contract with the City, including unexcused failure to meet scheduled milestones and/or failure to honor a defend clause. • Bidder has failed to perform or has not performed in a satisfactory manner in accordance with the terms of one or more contracts with the City, except that failure to perform or unsatisfactory performance caused by acts beyond the control of the vendor shall not be considered. • Bidder has a record of unsatisfactory integrity • Bidder has failed to deal in good faith with the City on previous contracts. • Bidders' financial, material, personnel or other resources, including subcontractors, are insufficient. • Bidder has a record of unsatisfactory performance • Bidder is not legally qualified to contract with the City. e) A written determination of non -responsibility of a bidder shall be made by the City Manager. A finding of non - responsibility shall not be construed as a violation of the rights of any person. Information furnished by a bidder shall not be disclosed to third parties without prior written consent by the bidder except to law enforcement agencies or as otherwise required by law. f) If an apparent low bidder is determined to be "not responsible", notice of the determination shall be given to the apparent low bidder by certified mail return receipt requested. Within three (3) business days of receipt of the notice, the apparent low bidder may request an informal meeting with the Department Manager, or, at their option, may request a meeting with the City Manager. At that meeting the apparent low bidder may bring counsel and submit evidence to support their position. g) The contract will then be awarded to the next lowest bidder. H. Protest by Bidders 1. Right to Protest: Any actual or prospective bidder who disagrees with the solicitation or recommended award of a contract may protest to the City Manager. The protest must be submitted in writing within three business days after all bidders have been notified of the bid award recommendation. 2. Authority to Resolve Protests: The City Manager shall have the authority to settle and resolve a protest of a bidder involving the bid solicitation or award of a contract. VII. Collusion Amona Bidders Collusion among bidders is prohibited. Any agreement or collusion among bidders impeding the freedom of competition by mutually agreeing to fix a price shall render such bids or proposals void. Complaints Against Vendors All complaints concerning vendor performance shall be directed to the Finance Department. The Finance Department along with the department administrating the contract will investigate any issues against a vendor and with the City Attorney's Office shall take whatever action is warranted to resolve the issue. It is the responsibility of the ordering department/division to follow up on materials and services that are not received in a reasonable time. II. Emergency/Urgent Purchases A. During normal business hours departments should obtain the necessary goods or services as required. Complete a purchase order online or use P- Card for payment. Emergency purchases which exceed the budget appropriation are subject to the approval procedures set out in this policy. B. If the emergency purchase occurs after working hours, obtain the necessary item or service. On the next working day complete the purchase order online. The frequent occurrence of emergency purchases is to be avoided and authority to purchase in this manner may be withdrawn if such purchases indicate a lack of foresight. C. When emergency repair of a public improvement is necessary and the delay of advertising and a public letting might cause serious loss or injury to the City, the Mayor shall make a finding of the necessity to institute emergency proceedings under this section and shall procure a certificate from a competent licensed professional engineer or registered architect, certifying that emergency repairs are necessary. For significant events the Emergency Operations Center shall be established and purchases shall be authorized through the established protocols of the City's Emergency Operations Plan. III. Department/Division Authorization Request for payments for $1,000 or more shall be digitally approved through the purchase order process by the department/division/assistant manager/leadership team member. All other purchases may be digitally approved through the purchase order process by a designated representative. A list of such authorized persons is digitally stored within the purchase order approval process. When submitted to Finance Department, payment request shall have supporting documentation. Payment request approved by an unauthorized person will be returned. A. Purchases under $1,000 and having sufficient funding will be processed by the Finance Department. B. Purchases over $1,000 will be processed after approval by the City Manager or designee. C. Payments will only be made from detailed invoices. D. Payments cannot be made from quotes, proposals or statements. E. If invoice indicates paying for goods or services from a quote, quote needs to be attached to invoice. IV. Council approval of expense payments Pursuant to Iowa Code §372.13A Payments without prior authorization of council, all expenses are submitted to City Council for approval before payment, except if approved by prior City Council action or are exempt under City Council resolution 142.18. V. Methods of Purchasing City departments and City employees shall not have a store card, major credit card or open store account in the City of Dubuque's name. Care should be taken that sales tax is not applied to purchases, as the City of Dubuque is sales tax exempt by State statue. A. Purchase Orders a) A purchase order is a contract between the City and the vendor wherein the City agrees to purchase and the vendor agrees to furnish goods and/or services as described in the purchase order together with, when necessary, a separate document which describes in detail the terms and conditions of the transaction. Such additional documentation shall be provided with the purchase order to the Finance Department. b) The invoices shall contain any notations that will assist the Finance Department in processing invoices for payment. Time and material jobs shall have invoices broken down in detail by significant categories. Purchase orders shall be promptly digitally approved and sent to the Finance Department so that the vendors may be promptly paid, and discounts can be applied. c) Purchase order adjustments shall be provided to the Finance Department via digital process or on a PURCHASE ORDER ADJUSTMENT AND CANCELLATIONS form (see addendum 4) if adjusting funding sources on the purchase order. All adjustments, regardless of dollar value, require department/division manager approval. Purchase order adjustments greater than $1,000 must be forwarded to the City Manager or designee for approval before submitting to the Finance Department. An adjustment is required if total payment on the purchase order exceeds 10% of total purchase order amount. d) Whenever a service or material purchase is canceled, a digital Purchase Order Closure request must be submitted so that the encumbrance against the purchase order may be released. e) Outstanding purchase orders shall be reviewed periodically, and discrepancies immediately reported to the Finance Department. f) At the end of each fiscal year, all outstanding purchase orders will be reviewed by the Budget Director to ascertain whether such orders shall be carried over to the next fiscal year or canceled. g) It is against internal control procedures for employees to share their FinancePlus login password with other employees. B. Purchase Cards The intent of the City of Dubuque's Purchasing Card (P-card) program is to provide employees with an easy and efficient method to make purchases and expedite payments to vendors. Any City employee who has a City P-card shall use their City P-card for City purchases when applicable and not to use their personal credit card. The P-card policies and procedures document is provided to all City employees who receive a City P-card. P-cards can be obtained by filling out the P-card application located on CODI. C. Petty Cash a) Minor purchases (under $25) may be made without a purchase order providing that prior approval by the Department Manager or designated representative(s) is received. A properly coded and signed invoice/receipt with descriptive evidence of the item and amount of purchase is necessary and must be presented to the Finance Department for reimbursement out of petty cash. Petty cash shall not be used to cash personal checks or to provide advances for personal expenditures. b) Petty cash accounts may be established at the department/division level with prior approval of the Finance Director. Expenditures from petty cash are limited to minor miscellaneous items costing less than $25 for which a purchase order may not be warranted or when a purchase card is unavailable. Examples of such expenditures include postage and parking meters. c) Petty cash accounts shall be balanced with reimbursement requests and are subject to audit without notice by the Finance Director or designated representative. Requests for replenishment of department/division petty cash accounts should be done at least twice per fiscal year. VI. Pavment of Invoices All invoices will be digitally processed by the ordering department/division after verifying the data on the invoice. Digitally process a copy of a detailed invoice and packing slip (when provided), and quote (when provided) to the Finance Department for payment. Invoices entered in the check run batch by 11:59 p.m. Wednesday will have checks dated/mailed on the following Wednesday. Requests for manual checks must be accompanied by written explanation to Director of Finance and Budget from the Department Manager of the requesting department. These items must have prior approval from council or be an exception to pre -approval. Manual checks should only be used in special situations. All efforts shall be made to request checks through normal accounts payable check run. Repeated requests for manual checks indicate a lack of foresight. The Director of Finance and Budget may decline manual check requests if doing so does not result in harm to the City or the vendor. VII. Unsolicited Orders Any items shipped to the City of Dubuque without City authorization can be rejected and payment of invoice denied. The City's responsibility is to notify the shipper in writing that they are to remove the goods within a specified period of time and at their expense. VIII. Record Retention The responsibility for the development, maintenance and implementation of a records management program is specifically assigned to the manager of each City department. Bids or proposals for goods or services using grant funds shall be retained in strict accordance with the terms of the grant. Generally, grants contain a "Retention of Records" section stating the required retention period. Grant retention terms supersede the City's retention policy. IX. Gifts/Conflict of Interest No City official or City employee shall be financially interested, directly or indirectly, when negotiating any purchase or contract. Further clarification may be obtained from the City Attorney's Office. City officials and City employees are expressly prohibited from accepting, directly or indirectly, any rebate, money or gift of value. See AP 4.10. Any personal use of City earned rebates is not allowed and could be subjected to employee discipline, up to or including termination. Business transactions between the City and City officials or employees and related parties are required to be disclosed in the City's Comprehensive Annual Financial Report. Related party vendors are businesses with more than 5% ownership by city officials, employees, or the spouse or unemancipated minor child of city employees or officials. Purchases of services or materials from a related party vendor must be bid using formal or informal bidding procedures contingent upon the cost of the services or materials. Any contract or agreement with a related party vendor shall immediately be reported to the Finance Department. X. Sustainable Purchasina Practices When bidding and purchasing products and/or services, departments are encouraged to incorporate sustainable purchasing practices, including environmentally preferable and socially responsible purchasing. Recognizing the cities impact as a significant purchaser of goods and services, the City of Dubuque's goal is to consider products whose sustainability, function and quality are equal or superior to more traditional products and whose cost is equal or less. This could include but is not limited to source of material and life cycle cost considerations. This will: a) Create a model for successfully purchasing environmentally preferable and socially responsible products while maintaining fiscal responsibility, quality, and compliance with applicable laws and regulations. b) Conserve natural resources. c) Minimize pollution. d) Reduce the use of water, energy and nonrenewable resources. e) Reduce operational, repair and replacement cost. f) Reduce or eliminate environmental health hazards in the facilities and in the community. g) Reduce materials sent to landfills. h) Increase the use and availability of environmentally preferable products. i) Encourage suppliers to reduce environmental impacts within the supply chain. j) Support locally produced goods and services. Departments shall consider products with nationally -recognized certifications such as EnergyStar or Green Seal. Other key considerations may include minimizing purchase of disposable products and product packaging, whether the product is less hazardous than its traditional counterpart, whether it is more durable or made from recycled materials, whether the product requires special disposal, whether it conserves energy or water, or whether it is produced locally. Language indicating the City's Sustainable Purchasing Practices should be included, where applicable, in RFPs. XI. Technology Purchases Technology supported by the Information Services Department cannot be purchased without prior approval from the Information Services Manager (See AP 2.06). XII. Bid Exceptions Competitively bid federal, state and other public entity cooperative purchasing contracts in which the City qualifies to participate may be utilized in lieu of soliciting written bids or verbal quotations for the purchase of equipment, supplies and/or services when approved by the City Manager. When trading in equipment, and utilizing competitive pricing, i.e. government pricing, two quotes must be obtained. If the purchase is subject to the conditions of federal, state or county grant requirements, the applicable provisions of said grant supersede bid exceptions. XIII. Sole Source Sole source justification may be used if the products or services are being purchased to directly interface with or attach to equipment of the same manufacturer, and no other manufacturer's products will correctly interface with existing equipment. It may also be utilized when required to match pre-existing materials, equipment or systems via an expansion or modification if such purchase would produce architectural uniformity, ease and maintenance cost savings or improved productivity through uniform utilization. In rare cases, only one supplier may exist to provide a particular product or service. When providing a justification based on the availability of one supplier, the product or service shall be defined in generic terms. The City Manager or the City Manager's designee approval is needed for sole source purchasing. Justifications can be accepted more readily by providing information regarding attempts to locate other suppliers, such as letters, informal quotations, or telephone contacts. Sole source purchases must be accompanied with a Sole Source Procurement Justification Form. If sole source justification is to be used for grant funded purchases, departments should contact funding agency for prior approval. XIV. Leasing Lease purchases or installment agreements shall not be processed without the prior approval of the City Manager or the City Manager's designee. Departments, when applicable, shall provide documentation that the life cycle cost of the lease agreement is less than the life cycle cost of the purchase, or that other compelling reasoning exist XV. Tie Bid Procedures A. If the goods or services to be purchased are subject to the conditions of Federal or State grant requirements, the applicable provisions of said grant will determine the method of award. B. If no Federal or State grant provisions apply, the City's Local Purchasing Preference will be applied to all bids. C. If the award cannot be determined by grant provisions or local purchasing preference policy the award will be made to the tie bidder whose bid was received (date and time -stamped) first. XVI. Grant Funded Projects The procurement policies stated in herein or other City administrative policies related to purchasing and contracting are not preempted by the requirements for state and federal grants unless the City requirement is inconsistent with the state or federal grant requirements, in which case departments shall follow the strictest of any applicable policy. City departments shall adhere to the City's procurement policies and all state and federal requirements. In addition, all applicable conditions of state or federal funding must be included in bid and proposal solicitations and contracts. Purchases made with federal, state, or local grant funds shall comply with the requirements of the applicable federal and state grants. Care must be taken to review the procurement policy provisions of every grant award package to ensure that all restrictions and special purchase requirements are understood and addressed. The employee who is administering the grant is responsible for ensuring that purchases are allowable under the grant agreement and are in accordance with this policy. All procurement documentation shall be kept in a separate file for audit purposes. Departments must ensure that small, minority and women's enterprises, are notified of opportunities to bid projects that are partially or fully grant funded. Refer to the six affirmative steps under the Code of Federal Regulation 2 CFR 200.321 and document the process taken. Two websites available to identify disadvantaged businesses are Iowa Economic Development www.iowaeconomicdevelopment.com/tsb and Iowa Department of Transportation https://secure.iowadot.gov/DBE/Home. Other sources may be available as well. The grant document shall be read carefully, the agency awarding the grant shall be identified and all references to Office of Management Budget (OMB) Circulars, the Code of Federal Regulation (CFR) or other documents that are referred to shall be reviewed and the required terms and conditions included in the solicitation documents (RFB, RFP or RFQ) and in the resulting contract. Purchases made with Federal funds, require proof that the awarded vendor is not suspended or debarred. Check vendor name against the System for Award Management (SAM) website https://sam.gov/content/home. Enter the vendor name and print the search results page. This page must be kept in the procurement file. Equipment/supplies acquired partially or fully with grant funds may have procedures for managing and disposal of such equipment. Documentation is required to be maintained by departments obtaining/administrating the grants in the grant files per the terms of the grant. Fixed or Capital assets with a value over $10,000 that have grant restrictions on disposal should be identified by departments and flagged in the City's Fixed Asset Data Base by notifying the Finance Department at the time of purchase. Mic ael C. Van Milligan City Manager PURCHASE ORDER FLOW CHART Approval to initiate purchase order obtained at department level Purchase Order initiated at YES department level Full approval at department level $1,000 or more — Less than Dept./Div./Assistant $1,000- Manager/Leadership Dept. team member Manager or approval required designee Addendum 1 Quotes received by dept. and vendor selected Vendor currently listed in FinancePlus NO Vendor submits completed W-9 to department Dept. completes vendor set-up form, submits W-9 and vendor form to Finance Dept. Vendor is added to FinancePlus by Finance Fully approved purchase orders are downloaded by Purchasing Coordinator Greater than $1,000 Less than $1,000 approved approved by Director of by Purchase and Risk Finance and Budqet Manager Purchase order encumbered Purchase orders available G Vendor provides invoices. Dept. matches invoices and packing slip when available to purchase orders, completes payment information, signs and dates purchase order. Dept. forwards to Finance for payment 1 Check issued and mailed by Finance to the vendor remit to address Me Addendum 2 Definitions "Collusion" the secret combination, conspiracy, or concert of action between two or more persons for fraudulent or deceitful purpose. "Competitive Bid Threshold" the maximum estimated total cost of a road, bridge, culvert, or other public improvement project for which a public advertisement and bid letting is not required. "Competitive Quote Threshold" the maximum estimated total cost of a public improvement project, other than a road, bridge or culvert project, for which the competitive quotation process is not required. The competitive quotation process is prescribed by 761 Iowa Administrative Code Chapter 180. "Contractor" any person or business having a contract with the City. "Direct Pay" a payment made straight to the actual payee, without sending it through an intermediary or a third party, or online purchase requisition process. "Emergency Purchase" a purchase made to alleviate a situation in which there is a threat to health, welfare, or safety under certain conditions defined as an emergency by the jurisdiction, that does not allow time for normal, competitive purchasing procedures. "Governmental Entity" state, political subdivisions of the state, public school, corporations, and all officers, boards, or commissions empowered by law to enter into contracts for the construction of public improvements, excluding the state board of regents and the state department of transportation. As defined in 761 Iowa Administrative Code Chagter 180. "Horizontal Infrastructure" any public own road, bridge or culvert. As defined in 761 Iowa Administrative Code Chagter 178. "Public Improvement" a public improvement involves new construction, reconstruction, or an improvement that results in betterment to a facility by improving either the original design of the facility or the function of the facility. As defined in 761 Iowa Administrative Code Chapter 180. "Purchase Order (PO)" a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. Acceptance of a purchase order by a seller forms a contract between the buyer and seller, so no contract exists until the purchase order is accepted. It is used to control the purchasing of products and services from external suppliers- Creating a purchase order is typically the first step of the purchase to pay process in an ERP system. It is originated within the department and approved by department/division manager or designee signifying adherence to all purchasing policies. It contains a description and M quantity of the goods or services to be purchased, vendor selection, a required delivery date (if applicable), valid accounting, and the amount. "Purchase Card" a VISA Credit Card issued by US Bank for the City of Dubuque. The purchasing card can be used with any vendor that accepts VISA as a form of payment. It is a convenient, flexible purchasing tool, which offers an alternative to the existing purchasing processes and provides an extremely efficient and effective method for purchasing and payment. "Related Parties" means City transactions between the City and a business owned by an employee, the spouse of an employee, or the unemancipated child of an employee. "Repair or Maintenance Work" means the preservation of a road, street, bridge, culvert, storm sewer, sanitary sewer, or other public facility (vertical infrastructure) so that it remains in sound or proper condition, including minor replacements and additions as necessary to restore the public facility to its original condition with the same design. As defined in 761 Iowa Administrative Code Chapter 189. "Sole Source" an original equipment manufacturer for an item that is the only item that can perform the intended function and there are no distributors; or the only supplier in the marketplace that can provide a product or service. "Urgent Purchase"any unforeseen adverse event, occurrence, or condition that, if not immediately corrected, will have a significant and immediate articulable negative impact upon the operations of the department, and that will require immediate action or attention to prevent, diminish, or repair the damage or loss of City property, the impairment of departmental functionality, or the interruption of essential services. "Vendor" a qualified individual or business, meeting standards of business competence and abilities established by the City, who conducts business or seeks to do business with the City. "Vertical Infrastructure" buildings, all appurtenant structures, utilities, incidental street improvements including sidewalks, site development features, recreational trails, and parking facilities. Vertical infrastructure does not include any work constructed in conjunction with or ancillary to highway, street, bridge or culvert projects, including but not limited to utilities and sidewalks. As defined in 761 Iowa Administrative Code Chapter 18. 0:3 Quote Procurement Form (Must be attached to Purchase Order in Finance Plus and Final Purchase Order paperwork for Payment) This form shall be used to document quotes for goods costing $3,000 or more and services costing $10,000 or more. A minimum of three quotes shall be obtained. Prepared by: Department: Item Description: Contract Duration (when applicable) from: ❑Goods or ❑ Service to: Title: Date: Vendor 1 Vendor 2 Vendor 3 Company Name Street Address City, St, ZIP Person providing Quote Phone Number Meets Specification Criteria ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No Proposed Cost If fewer than three quotes are reasonably available, explain why and what steps were taken to assure the above quotes are reasonable. This cannot be a related party vendor: After evaluating the above information, please make your recommendation: Recommended Vendor: Signature: Date: If this purchase is believed to fall under the Sole Source provisions, please complete a Sole Source Justification Form K Sole Source Procurement Justification Form (Must be attached to Purchase Order in Finance Plus and Final Purchase Order for Payment) A sole source procurement shall be avoided unless clearly necessary and justifiable. The City Manager or designee may exempt the purchase of goods or services from competitive selection processes when the purchase qualifies as a sole source procurement because of the following circumstances: 1. One vendor is the only one qualified or eligible or is quite obviously the most qualified or eligible to provide the good or service; or 2. The procurement is of such a specialized nature or related to a specific geographic location that only a single source, by virtue of experience, expertise, proximity, or ownership of intellectual property rights, could most satisfactorily provide the good or service; or 3. Applicable law requires, provides for, or permits use of a sole source procurement; or 4. The federal government or other provider of funds for the goods or service being purchased has imposed clear and specific restrictions on the use of the funds in a way that restricts the procurement to only one vendor; or 5. The procurement is a technology device that is systems software or an upgrade, or compatibility is the overriding consideration, or the procurement would prevent voidance or termination of a warranty, or the procurement would prevent default under a contract or other obligation. Department Contact Name Vendor Amount $ Department Approval Date City Manager or Designee Approval Date Please complete the following with all sole source request: 1) Is the vendor a known related party vendor to the City of Dubuque? ❑ Yes ❑ NO If yes relationship 2) What is the item/service, and what functions do they serve? 3) Explain why the recommended vendor is the only one qualified to provide the requested item(s) at the exclusion of all others, i.e. what makes this vendor uniquely qualified? 4) Describe the research that has been completed to ensure that no other competition exists. Provide names of vendors contacted who are unable to provide the item(s) or perform the service. 5) How did you determine that the vendor's price was reasonable? 3 0 0 O City of Dubuque Vendor Set -Up Sheet A W-9 form must be completed, signed by a vendor representative and submitted with this sheet. Business Name: Remit to Address: (Pleuse complete even if it is the sane ns on the W-9) (include 4-digit zip code) SS or Tax ID # Contact Name: Telephone Number: Fax Number: Email: Is anyone inthecompany a related party to a City of Dubuque Employee? Related Parry* ONo Oyes -Relationship: " A related party is a vendor with more than 50/oownership by a City employee, their spouse, children/children-in-law, siblings/siblings-in-law, and/or parent/parent in-law Is the company a Minority/Woman owned company? FINo Yes Authorization for ACH direct deposit for payment of invoices Financial Name Transit/ABA# Ace ount# andType Institution on account (9digits) of Account(checking/savings) Email address for ACH payment confirmation: Contact Name and Title: I authorize the City of Dubuque to initiate credit entries (deposits) to the account at the financial institution indicated above. Signature: Date: Printed Name: Title: For more information on ACH payments from the City of Dubuque please contact the Finance Department 563-589-4135 or accounts payable@cityofdubuque.org For City of Dubuque use only Vendor # Date Bet -up: Set-up by: Dept. requesting: