Improvement Contracts with Performance, Payment, and Maintenance BondsCity of Dubuque
City Council
ITEM TITLE:
SUMMARY:
SUGGUESTED
DISPOSITION:
ATTACHMENTS:
Copyrighted
March 16, 2026
CONSENT ITEMS # 16.
Improvement Contracts with Performance, Payment, and
Maintenance Bonds
Portzen Construction, Inc. for the 7800 Chavenelle Building
Remodel Project.
Receive and File; Approve
1. 7800 Chavenelle Building Remodel Project Contracts (002)
Page 435 of 811
SECTION 00500
Page 1 of 5
PUBLIC IMPROVEMENT CONTRACT
SECTION 00500
THIS IMPROVEMENT CONTRACT (the Contract), dated for references purposes the 6t" day of
March, 2026 between the City of Dubuque, Iowa, by its City Manager, through authority conferred
upon the City Manager by its City Council (City), and Portzen Construction, Inc. (Contractor).
For and in consideration of the mutual covenants herein contained, the parties hereto agree
as follows:
CONTRACTOR AGREES:
1. To furnish all material and equipment and to perform all labor necessary for the 7800
CHAVENELLE BUILDING REMODEL PROJECT (Project).
2. CONTRACT DOCUMENTS
A. The Contract Documents consist of the following:
1. Project Title Page (Section 00100).
2. Project Directory Page (Section 00101).
3. This Public Improvement Contract (Section 00500).
4. Performance, Payment, and Maintenance Bond (Section 00600).
5. Out -of -State Contractor Bond (Section 00610).
6. Other Bonds:
a. (Bond Name) (pages _ to _ , inclusive).
b. (Bond Name) (pages —to _ , inclusive).
C. (Bond Name) (pages —to—, inclusive).
7. The Iowa Statewide Urban Design And Specifications (SUDAS) 2023 Edition.
8. CITY OF DUBUQUE Supplemental Specifications 2023 Edition.
9, Other Standard and Supplementary Specifications as listed on the Title Page of the
Contract Document Manual.
10. Special Provisions included in the project Contract Document Manual.
11. Drawings - Sheet No. CS through No. E802 (18 pages) or drawings consisting of
sheets bearing the following general title:
12.Addenda (numbers 1 to 1 , inclusive).
13. Insurance Provisions and Requirements (Section 00700).
14. Sales Tax Exemption Certificate (Section 00750).
15. Site Condition Information (Section 00775).
16. Construction Schedule and Agreed Cost of Delay (Section 00800).
17. Erosion Control Certificate (Section 00900).
Page 436 of 811
SECTION 00500
Page 2 of 5
18. Consent Decree (Section 01000).
19.Other Project Information and Permits (Sections 00000 - 00000).
20. Exhibits to this Contract (enumerated as follows):
a. Contractor's Bid (pages to inclusive).
b. Bidder Status Form (Section 00460).
c. The following documentation that must be submitted by Contractor prior to Notice
of Award.
i. Contractor Background Information Form (Section 00470/00471)
ii.
iii.
21. The following which may be delivered or issued on or after the Effective Date of the
Agreement:
a. Notice to Proceed (Section 00850).
b. Project Certification Page (Section 00102).
c. Change Orders (Not attached to this agreement).
22. Authorization Resolution:
a. Resolution No. 286-17 Authorizing City Manager to Execute Contracts and
Leases (Exhibit C), or
b. Project Specific Resolution (Resolution No. 74-26).
There are no other Contract Documents. The Contract Documents may only be amended,
modified, or supplemented as provided in this Contract.
3. All materials used by the Contractor in the Project must be of the quality required by the
Contract Documents and must be installed in accordance with the Contract Documents.
4. The Contractor must remove any materials rejected by the City as defective or improper, or
any of said work condemned as unsuitable or defective, and the same must be replaced or
redone to the satisfaction of the City at the sole cost and expense of the Contractor.
5. Five percent (5%) of the Contract price will be retained by the City for a period of thirty (30)
days after final completion and acceptance of the Project by the City Council to pay any claim
by any party that may be filed for labor and materials done and furnished in connection with
the performance of this Contract and for a longer period if such claims are not adjusted within
that thirty (30) day period, as provided in Iowa Code Chapter 573 or Iowa Code Chapter 26.
The City will also retain additional sums to protect itself against any claim that has been filed
against it for damages to persons or property arising through the prosecution of the work and
such sums will be held by the City until such claims have been settled, adjudicated or
otherwise disposed of.
6. The Contractor has read and understands the Contract Documents herein referred to and
agrees not to plead misunderstanding or deception related to estimates of quantity,
character, location or other conditions for the Project.
7. In addition -to any warranty provided for in the specifications, the Contractor must also fix any
other defect in any part of the Project, even if the Project has been accepted and fully paid
for by the City. The Contractor's maintenance bond will be security for a period of two years
after the issuance of the Certificate of Substantial Completion.
Page 437 of 811
SECTION 00500
Page 5 of 5
8. The Contractor must fully complete the Project under this Contract on or before the date
indicated in the Construction Schedule and Agreed Cost of Delay Section of the Contract
Documents.
9. Indemnification; Liability for City Damage
a. To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless
the City from and against all claims, damages, losses and expenses, including but not
limited to attorneys' fees, arising out of or resulting from performance of the Contract,
provided that such claim, damages, loss or expense is attributable to bodily injury,
sickness, disease or death, or injury to or destruction of property (other than the Project
itself) including loss of use resulting therefrom, but only to the extent caused in whole or
in part by negligent acts or omissions of the Contractor, the Contractor's subcontractor,
or anyone directly or indirectly employed by the Contractor or the Contractor's
subcontractor or anyone for whose acts the Contractor or the Contractor's subcontractor
may be liable, regardless of whether or not such claim, damage, loss or expense is
caused in part by a party indemnified hereunder.
b. The Contractor shall also be liable to the City for any damage to City property arising out
of or related to the Contractor's negligent performance of the Contract.
10. The Contractor hereby represents and guarantees that it has not, nor has any other person
for or in its behalf, directly or indirectly, entered into any arrangement or Contract with any
other Bidder, or with any public officer, whereby it has paid or is to pay any other Bidder or
public officer any sum of money or anything of value whatever in order to obtain this Contract;
and it has not, nor has another person for or in its behalf directly or indirectly, entered into
any Contractor arrangement with any other person, firm, corporation or association which
tends to or does lessen or destroy free competition in the award of this Contract and agrees
that in case it hereafter be established that such representations or guarantees, or any of
them are false, it will forfeit and pay not less than ten percent (10%) of the Contract price but
in no event less than $2,000.00 (Two Thousand Dollars) to the City as agreed upon
damages.
11. The surety on the Bond furnished for this Contract must, in addition to all other provisions,
be obligated to the extent provided for by Iowa Code 573.6 relating to this Contract.
12. The Contractor agrees, and its Bond is surety therefore, that after the Certificate of
Substantial Completion has been issued by the City, it will keep and maintain the Project in
good repair for a period of two (2) years.
13. The City may terminate this Contract with orwithout cause upon sixty (60) days' written notice
delivered to the Contractor.
14. This Contract shall be governed by the laws of the State of Iowa and exclusive jurisdiction
and venue for any action arising out of or related to this Contract shall be in the Iowa District
Court for Dubuque County.
15. Counterparts and Electronic Signatures. This Contract may be executed in counterparts,
each of which shall constitute an original, and all of which together shall constitute one and
the same document. This Contract may be executed by the parties and transmitted by
SECTION 00500 electronic transmission, and if so executed and transmitted, shall be
effective as if the parties had delivered an executed original of this Contract.
Page 438 of 811
SECTION 00500
Page 4 of 5
16. Currency. All prices and financial terms referenced herein are intended to be in U.S. dollar
and shall remain in U.S. dollars despite any exchange rate.
17. Conflict in Terms. In the event of a conflict between the terms of this Contract and the terms
of any of the Contract Documents, the terms of this Contract shall prevail.
18. Legal Compliance.
a. The Contractor is responsible for compliance with all applicable laws, statutes, rules,
regulations, and ordinances which may apply to the performance of Contractor's
obligations under this Contract, including but not limited to the laws outlined in Exhibit D,
and hereby represents and warrants that Contractor is in compliance with the same as of
the Effective date and further represents that during the Term Contractor will remain in
compliance. Contractor shall require all contractors and subcontractors providing
services under this Contract shall also certify compliance with this Section.
b. When Applicable:
Contractor further represents and warrants that Contractor has obtained all necessary
business permits and licenses that may be required to carry out the obligations pursuant
to this Contract, including any permits and licenses that might be required b the state or
locality in which Contractor performs the Services, and Contractor agrees to maintain, at
Contractor's sole expense, such required permits and licenses for the duration of the
term(s) of this Contract.
19. Federally Assisted Project.
Is this project funded fully or in part with federal funds?
❑ Yes (if yes, provision a. and b. below apply)
x No
a. The City and the Contractor agree to comply with all provisions of the Davis -Bacon
Federal Prevailing Wage Act, related labor requirements and regulations and the
Federal Wage Determination for this Project.
b. Equipment or products authorized to be purchased with federal funding awarded for this
Contract must be American made to the maximum extent feasible, in accordance with
Public Law 103-121, Sections 606(a) and (b).
THE CITY AGREES:
The City agrees to pay the Contractor for the work actually performed under this Contract, up to
the amount stated below, less any damages provided for in the Contract Documents.
CONTRACT AMOUNT $ 441,000.00
Page 439 of 811
CITY OF DUBUQUE, IOWA:
City Manager's Office
Dep nt
By: 41LA-M
Signafture
Michael C. Van Milliqan
Printed Name
City Manager's Office
Title
03/09/2026
Date
CONTRACTOR:
Portzen Construction, Inc.
Contraclor
Signature
Michael J..Portzen
Printed Name
President
Title
03-06-26
Date
___= END OF SECTION 00500 ==__
SECTION 00500
Page 5 of 5
Page 440 of 811
SECTION 00600
Page 1 of 4
PERFORMANCE PAYMENT AND MAINTENANCE BOND
SECTION 00600
KNOW ALL BY THESE PRESENTS: Bond54268925
That we, Portzen Construction Inc., as Principal (hereinafter the "Contractor" or "Principal")
and Tinited Fire & Casualty Company
are held and firmly bound unto the City of Dubuque, Iowa, as Obligee (hereinafter referred to as
"Owner"), and to all persons who may be injured by any breach of any of the conditions of this Bond
in the penal sum of four hundred fort -one thousand dollars and zero cents ($441,000.00), lawful
money of the United States, for the payment of which sum, well and truly to be made, we bind
ourselves, our heirs, legal representatives and assigns, jointly or severally, firmly by these presents.
The conditions of the above obligations are such that whereas said Contractor entered into a contract
with the Owner, bearing date the 6th day of March, 2026, (hereinafter the "Contract") wherein said
Contractor undertakes and agrees to construct the following project in accordance with the Contract
Documents, and to faithfully perform all the terms and requirements of said Contract within the time
therein specified, in a good and workmanlike manner, and in accordance with the Contract
Documents. The Contract Documents for 7800 CHAVENELLE BUILDING REMODEL PROJECT
detail the following described improvements:
The scope of the Project is as follows: Removal and replacement of carpeting,
modifications to the HVAC mechanical system, electrical work, installing new
doors, add hallway storage, modifications to existing conference rooms, modifying
workstation cubicles, and expanding the security access control system.
It is expressly understood and agreed by the Contractor and Surety in this Bond that the following
provisions are a part of this Bond and are binding upon said Contractor and Surety, to -wit:
• PERFORMANCE: The Contractor shall well and faithfully observe, perform, fulfill, and abide
by each and every covenant, condition, and part of said Contract and Contract Documents,
by reference made a part hereof, for the project, and shall indemnify and save harmless the
Owner from all outlay and expense incurred by the Owner by reason of the Contractor's
default of failure to perform as required. The Contractor shall also be responsible for the
default or failure to perform as required under the Contract and Contract Documents by all
its subcontractors, suppliers, agents, or employees furnishing materials or providing labor in
the performance of the Contract.
2. PAYMENT: The Contractor and the Surety on this Bond hereby agreed to pay all just claims
submitted by persons, firms, subcontractors, and corporations furnishing materials for or
performing labor in the performance of the Contract on account of which this Bond is given,
including but not limited to claims for all amounts due for labor, materials, lubricants, oil,
gasoline, repairs on machinery, equipment, and tools, consumed or used by the Contractor
or any subcontractor, wherein the same are not satisfied out of the portion of the contract
price the Owner is required to retain until completion of the improvement, but the Contractor
and Surety shall not be liable to said persons, firms, or corporations unless the claims of said
claimants against said portion of the contract price shall have been established as provided
Page 441 of 811
SECTION 00600
Page 2 of 4
by law. The Contractor and Surety hereby bind themselves to the obligations and conditions
set forth in Chapter 573 of the Iowa Code, which by this reference is made a part hereof as
though fully set out herein.
3. MAINTENANCE: The Contractor and the Surety on this Bond hereby agree, at their own
expense:
A. To remedy any and all defects that may develop in or result from work to be performed
under the Contract Documents within the period of two (2) year(s) from the date of
acceptance of the work under the Contract, by reason of defects in workmanship,
equipment installed, or materials used in construction of said work;
B. To keep all work in continuous good repair; and
C. To pay the Owner's reasonable costs of monitoring and inspection to assure that any
defects are remedied, and to repay the Owner all outlay and expense incurred as a
result of Contractor's and Surety's failure to remedy any defect as required by this
section.
Contractor's and Surety's Contract herein made extends to defects in workmanship or
materials not discovered or known to the Owner at the time such work was accepted.
4. GENERAL: Every Surety on this Bond shall be deemed and held bound, any contract to the
contrary notwithstanding, to the following provisions:
A. To consent without notice to any extension of time authorized in approved change
orders to the Contractor in which to perform the Contract.
B. To consent without notice to any change in the Contract or Contract Documents,
authorized in approved change orders which thereby increases the total contract price
and the penal sum of this Bond, provided that all such changes do not, in the aggregate,
involve an increase of more than twenty percent (20%) of the total contract price, and
that this Bond shall then be released as to such excess increase.
C. To consent without notice that this Bond shall remain in full force and effect until the
Contract is completed, whether completed within the specified contract period, within
an extension thereof, or within a period of time after the contract period has elapsed
and the liquidated damage penalty is being charged against the Contractor.
The Contractor and every Surety on the Bond shall be deemed and held bound, any contract to the
contrary notwithstanding, to the following provisions:
D. That no provision of this Bond or of any other contract shall be valid that limits to less
than five (5) years after the acceptance of the work under the Contract the right to sue
on this Bond.
Page 442 of 811
SECTION 00600
Page 3 of 4
E. That as used herein, the phrase "all outlay and expense" is not to be limited in any way
but shall include the actual and reasonable costs and expenses incurred by the Owner
including interest, benefits, and overhead where applicable. Accordingly, "all outlay and
expense" would include but not be limited to all contract or employee expense, all
equipment usage or rental, materials, testing, outside experts, attorney's fees (including
overhead expenses of the Owner's staff attorneys), and all costs and expenses of
litigation as they are incurred by the Owner, It is intended the Contractor and Surety
will defend and indemnify the Owner on all claims made against the Owner on account
of Contractor's failure to perform as required in the Contract and Contract Documents,
that all agreements and promises set forth in the Contract and Contract Documents, in
approved change order;, and in this Bond will be fulfilled, and that the Owner will be
fully indemnified so that it will be put into the position it would have been in had the
Contract been performed in the first instance as required.
In the event the Owner incurs any "outlay and expense" in defending itself against any claim as to
which the Contractor or Surety should have provided the defense, or in the enforcement of the
Promises given by the Contractor in the Contract, Contract Documents, or approved change orders,
or in the enforcement of the promises given by the Contractor and Surety in this Bond, the
Contractor and Surety agree that they will make the Owner whole for all such outlay and expense,
provided that the Surety's obligation under this Bond shall not exceed one hundred -twenty-five
percent (125%) of the penal sum of this Bond.
In the event that any actions or proceedings are initiated regarding this Bond, the parties agree that
the venue thereof shall be Dubuque County, State of Iowa. If legal action is required by the Owner
to enforce the provisions of this Bond or to collect the monetary obligation incurring to the benefit of
the Owner, the Contractor and the Surety agree, jointly, and severally, to pay the Owner all outlay
and expense incurred therefor by the Owner. All rights, powers, and remedies of the Owner
hereunder shall be cumulative and not alternative and shall be in addition to all rights, powers, and
remedies given to the Owner, by law. The Owner may proceed against surety for any amount
guaranteed hereunder whether action is brought against the Contractor or whether Contractor is
joined in any such action(s) or not.
NOW THEREFORE, the condition of this obligation is such that if said Principal shall faithfully perform
all the promises of the Principal, as set forth and provided in the Contract, in the Contract Documents,
and in this Bond, then this obligation shall be null and void, otherwise it shall remain in full force and
effect.
When a work, term, or phrase is used in this Bond, it shall be interpreted or construed first as defined
in this Bond, the Contract, or the Contract Documents; second, if not defined in the Bond, Contract,
or Contract Documents, it shall be interpreted or construed as defined in applicable provisions of the
Iowa Code; third, if not defined in the Iowa Code, it shall be interpreted or construed according to its
generally accepted meaning in the construction industry; and fourth, if it has no generally accepted
meaning in the construction industry, it shall be interpreted or construed according to its common or
customary usage.
Failure to specify or particularize shall not exclude terms or provisions not mentioned and shall not
limit liability hereunder. The Contract and Contract Documents are hereby made a part of this Bond.
___ _ Page o
SECTION 00600
Page 4 of 4
Project: 7800 Chavenelle Building Remodel Project
Location: 7800 Chavnelle Drive, Dubuque, Iowa
Project Number: 7462000003
Witness our hands, in triplicate, this 6th day of March , 2026.
SURETY COUNTERSIGNED BY: Title
j F APPROVER BY;
.P,m
S' ature of Agent !/
Jena Wilwert a esentativeforowner
Printed Name of Agent
501 Bell Street
Company Address
Dubuque, Iowa 52001
City, State, Zip Code
563-556-0272
Company Telephone Number
PRINCIPAL:
Portzen Construction Inc
Contractor
By: - u
Signature
Michael J Portzen
Printed Name
NOTE:
SURETY:
United Fire & Casualty Company
Surety Company
By:�
Signature Attorney -in -Fact Officer
Eric DeSousa
Printed Name of Attorney -in -Fact Officer
AssuredPartners, a Gallagher Company
Company Name
501 Bell Street
Company Address
Dubuque, Iowa 52001
City, State, zip Code
563-556-0272
Company Telephone Number
I. All signatures on this performance, payment, and maintenance Bond must be
original signatures in ink; copies, facsimile, or electronic signatures will not be
accepted.
2. This Bond must be sealed with the Surety's raised, embossing seat.
3. The name and signature of the Surety's Attorney-in-Fact/Officer entered on this
Bond must be exactly as listed on the Certificate or Power of Attorney
accompanying this Bond.
==== END OF SECTION 00600 ====
Page 444 of 811
UNITED FIRE & CASUALTY COMPANY, CEDAR RAPIDS, IA Inquiries: Surety Department
UNITED FIRE & INDEMNITY COMPANY, WEBSTER, TX 118 Second Ave SE
ufg FINANCIAL PACIFIC INSURANCE COMPANY, LOS ANGELES, CA Cedar Rapids, IA .52401
CERTIFIED COPY OF POWER OF ATTORNEY
INSURANCE (original on file at Home Office of Company — See Certification)
KNOW ALL PERSONS BY THESE PRESENTS, That United Fire & Casualty Company, a corporation duly organized and existing under the laws
of the State of Iowa; United Fire & Indemnity Company, a corporation duly organized and existing under the laws of the State of Texas-, and
Financial Pacific Insurance Company, a corporation duly organized and existing under the laws of the State of California (herein collectively called
the Companies), and having their corporate headquarters in Cedar Rapids, State of Iowa, does make, constitute and appoint
MARK J. PHALEN, DAN WELLIK, ERIC DESOUSA, LAUREN MOSER, JENA WILWERT, ZACH KEMP, PAULA FITZGERALD,
EACH INDIVIDUALLY
their true and lawful Attomey(s)-in-Fact with power and authority hereby conferred to sign, seal and execute in its behalf all lawful bonds,
undertakings and other obligatory instruments of similar nature provided that no single obligation shall exceed $50 , 000 , 000.00
and to bind the Companies thereby as fully and to the same extent as if such instruments were signed by the duly authorized officers of the Companies
and all of the acts of said Attorney, pursuant to the authority hereby given and hereby ratified and confirmed.
The Authority hereby granted is continuous and shall remain in full force and effect until revoked by United Fire & Casualty Company, United Fire &
Indemnity Company, and Financial Pacific Insurance Company.
This Power of Attorney is made and executed pursuant to and by authority of the following bylaw duly adopted by the Boards of Directors of United
Fire & Casualty Company, United Fire & Indemnity Company, and Financial Pacific Insurance Company.
"Article VI — Surety Bonds and Undertakings"
Section 2, Appointment of Attorney -in -Fact. "The President or any Vice President, or any other officer of the Companies may, from time to time, appoint by written
certificates allomeys-in-fact to act in behalf of the Companies in the execution of policies of insurance, bonds, undertakings and other obligatory instruments of like nature.
The signature of any officer authorized hereby, and the Corporate seal, may be affixed by facsimile to any power of attomey or special power of attomey or certification of
either authorized hereby; such signature and seal, when so used, being adopted by the Companies as the original signature of such officer and the original seal of the
Companies, to be valid and binding upon the Companies with the same force and effect as though manually affixed. Such attorneys -in -fact, subject to the limitations set of
forth in their respective certificates of authority shall have full power to bind the Companies by their signature and execution of any such instruments and to attach the seal
the Companies thereto. The President or any Vice President, the Board of Directors or any other officer of the Companies may at any time revoke all power and authority
previously given to any attorney -in -fact.
IN WITNESS WHEREOF, the COMPANIES have each caused these presents to be signed by its
i
i'NDSyN�i,,� vice resident and its corporate seal to be hereto affixed this 17th day of October, 2024
�, "�,�� ;`4e ,a `F�G••... gq,, p rl�
=rY CORPORATE Y =w CORPORATE y= _ ¢,'=4�ULY Fo,_ o UNITED FIRE & CASUALTY COMPANY
c zC4 = Z u 'm= UNITED FIRE &INDEMNITY COMPANY
�z
SEAL \off kE SEAL 'e,;'c4 186E $; FINANCIAL PACIFIC INSURANCE COMPANY
.. UFOP... / BY sus—/L
State of Iowa, County of Linn, ss: Vice President
On 17th day of October, 2024, before me personally came Kyanna M. Saylor
to me known, who being by me duly sworn, did depose and say; that she resides in Cedar Rapids, State of Iowa; that she is a Vice President of United
Fire & Casualty Company, a Vice President of United Fire & Indemnity Company, and a Vice President of Financial Pacific Insurance Company the
corporations described in and which executed the above instrument; that she knows the seal of said corporations; that the seal affixed to the said
instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporations and that she signed her
name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporations.
p,ae� Judith A. Jones
Iowa Notarial Seal
S Commission number 173041 Notary Public
r My Commission Expires 04/23/2027 My commission expires: 04/23/2027
I, Mary A. Bertsch, Assistant Secretary of United Fire & Casualty Company and Assistant Secretary of United Fire & Indemnity Company, and Assistant
Secretary of Financial Pacific Insurance Company, do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and
the copy of the Section of the bylaws and resolutions of said Corporations as set forth in said Power of Attorney, with the ORIGINALS ON FILE IN THE
HOME OFFICE OF SAID CORPORATIONS, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said
Power of Attomey has not been revoked and is now in full force and effect.
In testimony whereof I have hereunto subscribed my name and affixed the corporate seal of the said Corporations
this 6th day of March 12026
`�puun,n,ry `pNuv,U,i o� p INSt/ �
CORPORArECORPORATE �y. 'U•=G DULY 2Z By:
SEAL
's `a -' sEnL �. %$' \!:'2 Assistant Secretary
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