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Cottingham & Butler Amendment to IEDA Contract Amendment 1 Copyrighted December 17, 2018 City of Dubuque Consent Items # 10. ITEM TITLE: Cotthingham & ButlerAmendment to IEDA Contract SUMMARY: City Manager recommending approval of a resolution authorizing an amendment to Contract 18-DF-TC-020 by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority (I EDA). RESOLUTION Approving an Amendment to the Economic Development Financial Assistant Contract by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, lowa and the lowa Economic Development Authority SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type C&B Amendment to IEDA Contract-NNM Memo City Manager Memo Staff Memo Staff Memo Letter from C&B Supporting Documentation ContractAmendment Supporting Documentation Resolution of Approval Resolutions THE CITY OF Dubuque �" D� L L ulner�oCmi ,�I���O� Masterpiece on the Mississippi Z°°' Z°'Z zoia�zov TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to State of lowa Direct Financial Assistance Contract by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque and the lowa Economic Development Authority DATE: December 13, 2018 Economic Development Director Maurice Jones is recommending approval of a resolution authorizing an amendment to Contract 18-DF-TC-020 by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� ��� Mic ael C. Van Milligen �� � MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Maurice Jones, Economic Development Director Dubuque Economic Development Department THE CITY OF �,.,/�,.,� SO West 13�h Street fi.i.ii� Dubuque, lowa 52001-4864 DuB E �'�'�c�" 1 I I I I I Office(563)589-4393 TTY(563)690-6678 MCiSt21'�JlECE OYL t�1E M1551551�1�11 http://www.cityofdubuque.org 200]•2012•2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Amendment to State of lowa Direct Financial Assistance Contract by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority DATE: December 13, 2018 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing an amendment to Contract 18-DF-TC-020 by and among Cottingham & Butler Insurance Services, Inc. (C&B), the City of Dubuque, andthe lowa Economic DevelopmentAuthority (IEDA). BACKGROUND Beginning in 2015 C&B established a plan to increase employment in lowa by 90 positions, to be predominantly located in Dubuque. In 2016, the company again applied to the IEDA for state incentives through the High Quality Jobs Program to create additional jobs in Dubuque. DISCUSSION In 2018, the company began its third expansion in as many years. Each expansion has been supported by a contract with the IEDA. The IEDA supported this expansion through Contract 18-DF-TC-020. During the completion of the first annual report, C&B identified an error on the contract. The employment base listed in the agreement (386 employees), was not the same as what had been submitted in the original documentation (312 employees). The IEDA reviewed their documentation and recorded the correction through the attached amendment. The amendment requires signature by the City. RECOMMENDATION I recommend the City Council adopt the attached resolution, approving the financial assistance contract amendment Contract 18-DF-TC-020 by and among Cottingham & Butler, Inc., the City of Dubuque, and the IEDA. Cottingham � Butler ' 80Q Main 5kreet � I�ubuque,IA 52001 ' 1,800.7a3.S23S � www.Cottinghar�Butler.com '�, December 11, 2018 Ma or Ro D I y y . Buol City of Dubuque : 50 W. 13�' Street Dubuque, IA 52001 ; Dear Mayor Buol Please find enclosed a contract amendment which was necessary due to an error noted when completing the first annual report. The employment base listed in the agreement was not the same as what was submitted in the original documentation. The IEDA reviewed their documentation and recorded the correction through this amendment. The amendment requires your signature and then should be returned to the IEDA to the attention of Benton Quade. Thank you for your assistance with this matter. If you have ' any questions, please feel free to contact me at 563.587.5301. � i , � ; Sincerely ; ; �" �-�---� � Timothy L, erns Vice President and CFO ; I � I � � � ,! L",�3 Y �'����^ f"�7 �� � � C� � �� � s.:_ e�� � �"j �� � r_ ��,- !�'f:l ~� � "~��. � � _�,. �.'.(—.� .=� c� ' n � � C � Prepared by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 372-18 APPROVING AN AMENDMENT TO THE ECONOMIC DEVELOPMENT FINANCIAL ASSISTANCE CONTRACT BY AND AMONG COTTINGHAM & BUTLER INSURANCE SERVICES, INC., THE CITY OF DUBUQUE, IOWA, AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY Whereas, Cottingham & Butler Insurance Services, Inc. (Cottingham & Butler) and the City of Dubuque (City) entered into an Economic Development Financial Assistance Contract (the Contract) with the Iowa Economic Development Authority (IEDA) to facilitate the creation of twenty (20) full-time jobs in the City; and Whereas, Cottingham & Butler identified an error on the Contract; and Whereas, the IEDA recorded the correction through this amendment; and Whereas, the parties now desire to amend the Contract as set forth in the attached Contract Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Contract Amendment is hereby approved. Section 2. The Mayor is hereby authorized and directed to execute, and the City Manager is hereby directed to submit the Contract Amendment to the Iowa Economic Development Authority together with such other documents as may be required. Passed, approved, and adopted this 17th day of Decembef2018. Attest: Keviryt. Firnstahl, City Clerk Roy D. Buol, Mayor CONTRACT AMENDMENT RECIPIENT: MASTER CONTRACT #: AMENDMENT#: EFFECTIVE DATE:August 28, 2018 Cottingham & Butler Insurance Services, Inc. 18-DF/TC-020 THIS CONTRACT AMENDMENT is made by and among the IOWA ECONOMIC DEVELOPMENT AUTHORITY, (hereafter "IEDA"), 200 East Grand Avenue, Des Moines, Iowa 50309, an agency of the State of Iowa, Cottingham & Butler Insurance Services, Inc. (“Recipient"), 800 Main Street, Dubuque, IA 52001, and City of Dubuque (“Community”), 50 W. 13,h Street, Dubuque, IA 52001. WHEREAS, there was an error in the original job obligations, and NOW, THEREFORE, the Contract referenced above is amended as follows: 1. REVISION OF EXHIBIT D: “JOB OBLIGATIONS.” Exhibit D is amended to correct the HQJP Job Obligations figures. Details of this change are reflected in the attached Revised Exhibit D which hereby incorporated by this reference and made a part of this Contract Amendment. PRINT/TYPE NAME, TITLE Date Roy D. Buol/ Mayor PRINT/TYPE NAME, TITLE December 17/ 2018 Date EXHIBIT D - JOB OBLIGATIONS Revised on 8/28/2018 Recipient: Cottingham & Butler Insurance Services, Inc. Community: City of Dubuque Contract Number: 18-DF/TC-020 This Pioject has been awaided Pioject Completion Assistance and Tax Incentives from the High Quality Jobs Progiam (HQJP) - Tax Ciedit Component, High Quality Jobs Piogram (HQJP) - Financial Assistance Component The chait below outline the contiactual job obligations related to this Project Data in the “Employment Base” column has been veiified by IEDA and leflects the employment characteiistics of the facility leceivmg funding before this award was made. Jobs to be retained as a pait of this Pioject must be included in these calculations. Data in the “Jobs To Be Created” column outlines the new full-time jobs (including their wage characteristics) that must be added to the employment base and, if applicable, statewide employment base as a lesult of this awaid At the Pioject Completion Date and through the Maintenance Period Completion Date, the Recipient must achieve, at a minimum, the numbeis found in the “Total Job Obligations” column. HQJP JOB OBLIGATIONS Project Completion Date: " , t . October 31,2020 Maintenance Period Completion Date: October 31, 2022? Employment Base ' Jobs To Be Created Total Job Obligations Total employment at project location 620 20 640 Average wage of total employment at project location $32.66 ' Qualifying Laborshed Wage threshold requirement (per hr)$22.37 . *- ; » ~ * ’ .ifiCV if - - '-- Number of jobs at or above qualifying wage 3SS312 20 40© 332 Average Wage of jobs at or above qualifying wage $47.53 '■ ^ ' Notes re: Job Obligations 1. When determining the number of jobs at or above the qualifying wage, wages will include only the legular houi ly late that serves as the base level of compensation. The wage will not include nomegular forms of compensation such as bonuses, unusual overtime pay, commissions, stock options, pension, letirement or death benefits, unemployment benefits or othei insurance, or other fringe benefits. 2. Employment Base includes 0 “Retained Jobs”. If the Recipient uses or proposes to use a non-standaid work week (8 houis a day, 5 days a week, 52 weeks a yeai including holidays, vacation and other paid leave), check the box below and describe that altei native schedule The alternative schedule must meet the lequuements of 261IAC 173 2.) If the box is not checked or if no alternative schedule is piovided, IEDA will consider “Full-time Equivalent (FTE) Job” to mean the employment of one pet son for 8 houis pei day for a 5-day, 40-houi workweek foi 52 weeks per year, including paid holidays, vacations and other paid leave. □ The Recipient shall use an alternative work week for purposes of its employees descnbed in the Conti act. The alternative work week is as follows' [desciiption] Sufficient Benefits Deductible Requiiements Recipient shall piovide Sufficient Benefits with a maximum deductible of $1,250 for single coverage oi $2,500 foi family covei age m o> 0 o O > om RECEIVEDDEC 2 S 2018