City Manager Authority to Execute Contracts and Leases Copyrighted
August 7, 2017
City of Dubuque Action Items # 7.
ITEM TITLE: City Manager Authority to Execute Contracts and Leases
SUMMARY: City Manager recommending approval of a resolution that
would increase the City Manager's authority to execute
public improvement contracts to limits provided in Iowa Law
and change the reporting requirement to City Council for
such contracts, purchases, leases and insurance contract
renewals to the to any regular meeting of the City Council.
RESOLUTION Authorizing the City Manager to execute
contracts and leases on behalf of the City of Dubuque
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
City Manager Authority to Eyecute Contracts and City Manager Memo
Leases-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
THE COF Dubuque
DtUB
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City
Masterpiece on the Mississippi 1 1 1 1"
2009•2012•2013•2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City Manager Authority to Execute Contracts and Leases
DATE: July 27, 2017
City of Dubuque Resolution 307-07 was adopted on May 21, 2007, providing the City
Manager with the following authority:
"The City Manager shall have the authority to award and execute contracts, to
authorize work to proceed under contracts, and to approve the contractor's
performance and payment bonds and to make purchases on behalf of the city as
follows:
(a) Public improvement contracts for $100,000 or less;
(b) All purchases of equipment, materials, and supplies;
(c) Contracts for services for $500,000 or less;
(c) Leases for a term of three years or less;
(d) 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."
City Attorney Crenna Brumwell recommends City Council approval of a resolution that
would increase the City Manager's authority to execute public improvement contracts up
to $134,999, since Iowa Law, Chapter 26 does not require formal competitive bidding
until a project's costs are estimated at $135,000 or higher. Crenna Brumwell also
recommends that the reporting requirement to the City Council be changed from the first
regular City Council meeting of each month to reporting at any regular meeting of the
City Council.
I concur with the recommendation and respectfully request Mayor and City Council
approval. J
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Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
2
THE CITY OF Dubuque
DUB E ii� MEMORANDUM
Masterpiece on the Mississippi
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CRENNA M . BRUMWELL , ESQ.
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
DATE: July 27, 2017
RE: City Manager Authority to Execute Contracts and Leases
City of Dubuque Resolution 307-07 was adopted on May 21 , 2007 providing the City
Manager with the following authority:
"The City Manager shall have the authority to award and execute contracts, to
authorize work to proceed under contracts, and to approve the contractor's
performance and payment bonds and to make purchases on behalf of the city as
follows:
(a) Public improvement contracts for $100,000 or less;
(b) All purchases of equipment, materials, and supplies;
(c) Contracts for services for $500,000 or less;
(c) Leases for a term of three years or less;
(d) 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."
There are two (2) areas where I would suggest the resolution be updated to facilitate
city operations without undue delay:
1 . Public improvement contracts; and
2. Reporting to the City Council.
First, Iowa Law, Chapter 26 does not require formal competitive bidding until a project's
costs are estimated at $135,000 or higher. For City projects falling within the $100,000
to $134,999 range City staff must take the projects to the City Council for approval and
authorization as the projects are beyond the City Manager's public improvement
contract authority. Many departments have projects which fall in this range, including:
• Engineering;
• Public Works;
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)589-4381 /FAx (563) 583-1040/EMAIL cbrumwel@cityofdubuque.org
• Water;
• Water Resource and Recovery; and
• Housing.
This can cause a delay in projects which can be easily remedied by increasing the City
Manager's public improvement contract authority up to the threshold for formal
competitive bidding contained within Iowa Code, Chapter 26.
Second, it would be my suggestion to remove the reporting requirement from
specifically requiring the report at the first city council meeting of the month and to
modify this to allow reporting at any regular meeting of the City Council.
Attached is a draft resolution which rescinds Resolution 307-07, modifies the public
improvement contract threshold, and adjusts the reporting requirement. Please review
for sharing with the City Council for consideration.
cc: Kevin Firnstahl, City Clerk
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)589-4381 /FAx (563) 583-1040/EMAIL cbrumwel@cityofdubuque.org
Prepared by: Crenna M. Brumwell, 300 Main Street, Suite 330, Dubuque, IA 52001 (563) 589-4381
RESOLUTION NO. 286-17
AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACTS AND LEASES ON
BEHALF OF THE CITY OF DUBUQUE
Whereas, the City Council adopted Resolution No. 307-07 Authorizing The City
Manager To Execute Contracts And Leases On Behalf Of The City Of Dubuque; and
Whereas, City Council now desires to rescind Resolution No. 307-07.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. Resolution No. 307-07 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 contractor's
performance and payment bonds and to make purchases on behalf of the City as
follows:
(a) Public improvement contracts up to the Iowa Code Chapter 26 threshold
for competitive bidding;
(b) All purchases of equipment, materials, and supplies;
(c) Contracts for services for $500,000 or less;
(d) Leases for a term of three (3) years or less;
(e) Insurance contract renewals.
The City Manager shall submit a report to the City Council of all such contracts or
purchases less than the Iowa Code Chapter 26 threshold for competitive bidding, and
leases and insurance contract renewals at any regular city council meeting.
Section 3. The City Manager may delegate the authority granted herein provided
such delegation is in writing.
Passed, approved and adopted this 7th day of Aug} st, 2017.
4-1 "C./-4-,
Roy D. Buol, Moor
Attest:
Kevin CS. Firnstahl,`tity Clerk