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Small Business Construction-Impacted MicroloanCopyrighted May 18, 2020 City of Dubuque Action Items # 4. ITEM TITLE: Small Business Construction -Impacted Microloan SUMMARY: City Manager recommending approval of a resolution approving a Contract for Services by and among the City of Dubuque, Dubuque Initiatives and East Central Intergovernmental Association for the administration of a microloan program to assist downtown businesses adversely affected by lengthy City construction projects. SUGGESTED DISPOSITION: RESOLUTION Authorizing the execution of a Contract for Services by and among East Central Intergovernmental Association, Dubuque Initiatives, and the City of Dubuque, Iowa Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Construction -Impacted Microloan-MVM Memo City Manager Memo Staff Memo Staff Memo Resolution of Approval Resolutions Masterpiece on the Mississippi Dubuque bitil All-A.aia City 111111 2007.2012.2013 2017*2019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Construction -Impacted Microloan-Agreement Among the City of Dubuque, Dubuque Initiatives and East Central Intergovernmental Association DATE: May 13, 2020 Economic Development Director Jill Connors recommends City Council approval of a resolution approving a Contract for Services by and among the City of Dubuque, Dubuque Initiatives and East Central intergovernmental Association for the administration of a microloan program to assist downtown businesses adversely affected by lengthy City construction projects. On April 6, 2020, the City Council directed City staff to develop a loan program that could be used to assist small downtown businesses experiencing financial hardship due to City construction projects. The initial capital in the loan fund will be provided by Dubuque Initiatives, in an amount of $100,000. The City has the option to also contribute capital to the loan if needed and as City funding becomes available. I concur with the recommendation and respectfully request Mayor and City Council approval. 7'- Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director Masterpiece on the Mississippi Dubuque battEl AII•America City N• IK: '.I i]7(: I liM7Lil` 1 1p 2007*2012*2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Construction -Impacted Microloan — Agreement Among the City of Dubuque, Dubuque Initiatives, and East Central Intergovernmental Association DATE: May 10, 2020 INTRODUCTION This memorandum presents a proposed Contract for Services among the City of Dubuque, Dubuque Initiatives (DI), and East Central Intergovernmental Association (ECIA) for the administration of a microloan program to assist businesses affected by downtown City construction projects. BACKGROUND In the past several years, the City has undertaken multiple construction projects in the downtown area that are key to the overall Bee Branch project, as well as improvements along Central Avenue in anticipation of the City having jurisdiction over this street once the Southwest Arterial opens to traffic. DISCUSSION During conversations with several downtown business owners, it has become clear that lengthy City construction projects have caused financial hardship for some of these businesses. On April 6, 2020, the City Council directed City staff to develop a loan program that could be used to assist small downtown businesses experiencing financial hardship due to City construction projects. Eligible businesses are those meeting specified employee numbers, specified annual revenue, and experiencing financial hardship in relation to City construction project(s). Eligibility will be verified based on business records, City construction project schedules, and the eligible location map (attached). Loan applications will be reviewed by a loan committee consisting of three (3) City of Dubuque staff and two (2) ECIA loan staff. The low -interest loans ranging from $2,500 to $25,000 will be available from a revolving loan fund. Funds will be restricted to operating expenses resulting from loss of income due to City construction projects. These expenses include payroll, rent, mortgage, utilities, and other ongoing expenses (including license and permit fees). In order to assist the businesses on the front end of the process, the City will cover the $50 processing fee and the $200 closing fee. ECIA will bill the City monthly for loan administration services. Total payment will be $20,500 annually for staff time spent administering the loan program and outreach, plus $2,000 in the first year for program set-up. The initial capital in the loan fund will be provided by Dubuque Initiatives, in an amount of $100,000. The City has the option to also contribute capital to the loan if needed and as City funding becomes available. The attached agreement contracts ECIA to administer the program and commits the aforementioned City funds for that service. I would recommend that we use the $50,000 from CIP 360-2679 for the purpose of paying for loan administration. This downtown construction -impacted business loan program serves essentially the same purpose as that stated in the CIP 360-2679 request, which is to support downtown businesses in need of small loans. In addition to administration of the loan program, ECIA staff will complete quarterly and annual reports for review, approval, signature and submittal to the City of Dubuque. At minimum ECIA staff will track the following: • Loans made to veterans, minority -owned business, female -owned business • Number of FTE's • Type of business (NAICS code) • Location of Business Impacted • Construction Timeline • Monthly Sales before Construction • Hardship imposed by the construction • Delinquencies (30+ days past due) 2 RECOMMENDATION/ ACTION STEP In order to maintain our downtown economic development strategy of supporting the success of small businesses, I respectfully request City Council approval of the attached resolution approving a Contract for Services among the City, DI, and ECIA for the administration of a microloan program to assist downtown businesses adversely affected by lengthy City construction projects. 3 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. 160-20 AUTHORIZING THE EXECUTION OF A CONTRACT FOR SERVICES BY AND AMONG EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION, DUBUQUE INITIATIVES, AND THE CITY OF DUBUQUE, IOWA WHEREAS, the City of Dubuque has proposed creating a loan program to assist downtown small businesses impacted by City construction projects (the Program); and WHEREAS, the City Council of the City of Dubuque, Iowa has considered the proposal and has determined that the Program will contribute to the local economy; and WHEREAS, Dubuque Initiatives and East Central Intergovernmental Association have requested execution of a Contract for Services in order to finalize associated terms for capitalization and administration of the Program; and WHEREAS, the City Council finds that approval of the Contract for Services is in the best interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Contract For Services by and among East Central Intergovernmental Association, Dubuque Initiatives, and the City Of Dubuque, Iowa, a copy of which is attached hereto, is hereby approved. Section 2. The Mayor is hereby authorized and directed to execute the Contract for Services on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. The City Manager is authorized to take such actions as are necessary to comply with the terms of the Contract for Services as herein approved. Passed, approved, and adopted this 18th day of May 2020. Roy Duol, Mayor Attest: K ev(n'S. Firnstahl, City Clerk CONTRACT FOR SERVICES BY AND AMONG EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION, THE CITY OF DUBUQUE, IOWA, AND DUBUQUE INITIATIVES THIS CONTRACT, entered into by and among East Central Intergovernmental Association ("ECIA"), the City of Dubuque, Iowa ("City") Dubuque Initiatives ("DI") under a passed and approved resolution of the City Council requesting ECIA's assistance in carrying out this Contract and attached Scope of Services, and approved by ECIA on th £ day of , 2020. SECTION 1. SCOPE OF SERVICES. ECIA shall provide and perform the necessary services required to carry out City's microloan program for businesses experiencing negative impacts from construction (the "Program") described in the Scope of Services, Attachment A. ECIA will provide overall Program management and fund administration. Should the scope of the Program go beyond that described in Attachment A due to changes in the requirements of City, or for any other reason, it may be necessary to adjust the Program costs by mutual agreement of ECIA and City. SECTION 2. DUBUQUE INITIATIVE'S AND CITY'S FINANCIAL PARTICIPATION. 1. DI's sole and exclusive participation in the Program shall be a grant of $100,000.00 (the "DI Funds"), which funds shall be paid by DI directly to ECIA within ten (10) days of execution of this agreement by all parties. The DI Funds shall be deposited by ECIA in an account created for the purposes of administering the Program. As long as the DI Funds are used for the purposes of the Program as defined herein the funds shall be deemed a grant and need not be repaid to DI. However, in the event the DI Funds are not used for the purposes of the Program for any reason, or this Contract is terminated, the portion of the DI Funds not so used shall be returned to DI by ECIA. 2. City may contribute funds to ECIA for purposes of this Contract (the "City Funds"). The City Funds shall be deposited by ECIA in an account created for the purposes of administering the Program. In the event the City Funds are not used for the purposes of the Program for any reason, or this Contract is terminated, the portion of the City Funds not so used shall be returned to City by ECIA. SECTION 3. TIME OF PERFORMANCE. The services of ECIA shall commence as described in the Scopes of Services, beginning June 1, 2020 by mutual agreement of City and ECIA The Contract will remain in effect until either party terminates the Contract as provided in Sections 6 and 7. SECTION 4. METHOD OF PAYMENT. Payment for ECIA staffing services shall be due upon receipt of a monthly bill for services by City. Total payment shall be $20,500 annually for staff time spent administering the Program and outreach plus $2,000 in the first year for Program set-up as described in 050620ba1 Attachment A. SECTION 5. PERSONNEL. ECIA represents that it has, or will acquire, all personnel necessary to perform the services under this Contract and will act as the Micro Revolving Loan Fund Manager. SECTION 6. PROPERTY. ECIA shall be free to acquire or use existing property, real or personal, as it deems necessary in the performance of work under this Contract. SECTION 7. TERMINATION BY THE CITY OF DUBUQUE. 1. City may, by thirty days (30) written notice delivered to ECIA, terminate this Contract in whole or in part at any time either for City's convenience or because of the failure of ECIA to fulfill its obligations under the Contract. Upon receipt of such notice, ECIA shall (1) immediately discontinue all services affected, unless the notice directs otherwise, and (2) deliver to City all data, drawings, specifications, as may have been accumulated by the ECIA in perfoiining this Contract, whether completed or in process. 2. Notwithstanding Section 6(1), ECIA shall not be relieved of liability to City for damages sustained by City by virtue of any breach of the Contract by ECIA. City may withhold any and all payments to ECIA for the purpose of set-off until such time as the exact amount of damages due City from ECIA is determined. 3. If the tennination is for the convenience of City, ECIA shall be entitled to compensation determined in accordance with Section 3. 4. If the termination is because of the failure of a subcontractor to fulfill its obligations to ECIA, ECIA shall have five business days to cure such breach after receiving written notice from City of its intent to terminate the Contract. SECTION 8. TERMINATION BY ECIA. ECIA may terminate this Contract by thirty (30) days written notice delivered to City for any of the following reasons: (1) Both parties agree a continuation of the Contract will not be in the best interests of the City of Dubuque; (2) ECIA ceases to exist or it is restricted or prohibited by its governmental authorities from continuing to provide services under this Contract; or (3) ECIA is unable to obtain the necessary professional services required to complete the Contract through the use of subcontractors. SECTION 9. POLITICAL ACTIVITY. No portion of the Contract compensation shall be used for any partisan political activity or to further the election or defeat of any candidate for public office. SECTION 10. INDEMNIFICATION/HOLD HARMLESS. 1. ECIA agrees to indemnify and hold harmless City and DI, and their respective officers and employees from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of or resulting from perfoiinance of this Contract, provided that such claim, damages, loss or expense is attributable to financial loss or damage, bodily injury, sickness, disease or death, or injury to or destruction of property including loss of use resulting therefrom, but only to the extent caused in whole or in part by negligent acts or omissions of ECIA, ECIA' s employees or subcontractors, or anyone whose acts for which ECIA or ECIA's subcontractors may be liable. 2. City agrees to indemnify and hold harmless ECIA from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of or resulting from performance of this 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 including loss of use resulting therefrom, but only to the extent caused in whole or in part by negligent acts or omissions of the City, its officers or employees. SECTION 11. ECIA shall provide at all times during the performance of this Contract insurance as described in the attached Insurance Schedule as such Insurance Schedule may from time to time be revised by City. CITY OF DUBUQUE, IOWA By: r Roy D(/Buol, Mayor ATTEST: By: Ize� n°S. Firnstahl, City Clerk EAST CENTRAL INTERGOVERNMENTAL ASSOC. By: erkri 1 uthorized epresentative 7 John "Jack" Willey, Chairperson Printed Name and Title Date 5— ?0 — c2.6)00 Date ATTEST: By: l J�"s Kelley H. H. Deutmeyer, Executive Director, ECIA Printed Name and Title DUBUQUE INITIATIVES By: Its Preside Kevin J. Lynch Printed Name Date 4 Attachment A SCOPE OF SERVICES East Central Intergovernmental Association (ECIA) shall assist in compliance with requirements set forth by the City of Dubuque for maintenance of required records and documents and other required actions not specifically listed, but requested by the City of Dubuque including, but not limited to the following activities: GENERAL ACTIVITIES — City of Dubuque and ECIA The City of Dubuque is creating a micro loan fund made available to local small businesses impacted by city infrastructure and street construction projects. This fund is initially designed to provide a loan in the amount of $2,500 to $25,000 to qualifying local small businesses located in the downtown area of the City of Dubuque defined in the map in Attachment A. II. PROGRAM SETUP, ADMINISTRATION AND OPERATION — City and ECIA Administration — ECIA staff will administer the Program including assisting the City with promoting the program, accepting and processing applications, underwriting and recommending approval of loans, referring borrowers to Small Business Development Center (SBDC) for training, managing loan committee meetings, loan packaging and closing documents, maintaining loan files, servicing and reviewing loans, annual borrower loan review, meeting with borrowers if necessary, and annual reporting. Capitalization - $100,000 as initial pilot revolving loan fund to assist businesses located in the City of Dubuque only and for businesses negatively impacted by City construction projects in a targeted downtown area. Fund Manager — ECIA Loan Committee — Two ECIA staff and three City staff as appointed by the City will comprise the Loan Committee. A loan must be approved by a majority vote of the Loan Committee. All loan exceptions or deferments must be approved by the Loan Committee with the City staff having final deteumination in situations where a vote of the Loan Committee is split. Maximum Loan - $25,000 maximum with a minimum loan amount of $2,500 per business entity. Loan Volume — Anticipate an average of 6 loans in first 18 months. Interest Rate — The interest rate shall be fixed at the time of funding at the current five- year Treasury rate plus 0.25% for the tern of the loan. For example, today's Treasury rate is 1.75% and adding 0.25% percentage point would make the rate 2.00%. Interest earned will be returned back into the fund to grow the loan fund. Loan Terms — Amortized over a 60-month period with monthly principal and interest payments deferred for 3 to 6 months as requested by the borrower and approved by the loan committee at the time of loan approval. Loan deferment for business owners impacted by road construction may request a microloan based on the construction timeline which could exceed the average 6-month deferment. Eligible Borrower - Small businesses negatively impacted by City construction projects located in a targeted downtown area, as identified in Attachment A. Borrower Credit Score — Minimum credit score of 550 with exceptions on a case -by -case basis with explanation. If no credit score is available, additional documentation may be required to verify borrower is credit worthy. Definition of Small Business — At the time of microloan application, applicant revenue under $500,000 for fiscal year and less than 15 full-time equivalent employees. For startup or businesses with less than a year in operation revenue is year-to-date revenue amount or $0 in case of startup. Borrower Down Payment — 10% down payment of total project cost which can include cash, in -kind or equity. Business Owner and/or Signer Identification Requirements — Photo ID including borrower's name, date of birth, street address, social security number and phone number. For non -US citizens the identification must contain taxpayer ID number, passport number with country of issuance, alien ID card number or another foreign -issued picture ID. Required Application Documents — Completion of microloan program application; business plan with budget and proforma; borrower and/or identification documentation and entity documentation; completion of SBDC small business courses/training; and receipt of two years of owner's signed/dated personal tax returns. Tenants must provide a copy of lease agreement. For existing business, two years of signed/dated tax returns. Collateral — Vehicle title, security agreement if applicable. Guarantee - All individual borrowers and/or business owners must sign an unlimited personal guarantee. Insurance — Proof of business insurance is required. Loan Documents — Promissory note. Fees - Loan processing fee: $50 to be paid by the City regardless if loan closes or not; Loan closing/Documentation fee of $200 to be paid by the City once loan closes; The application and documentation fees will cover all hard cost fees and UCC filing, lien notation, certificate of good standing, credit bureau reports, etc. These fees are per loan to cover origination costs and are in addition to the ECIA's administration fees. Administrative Costs/Budget — Estimate six loans annually. First year budget includes a program set up fee including the operational plan, program guidelines and procedures, and all required fonns and documents. Fee to establish the program and documents is $2000 billed after all program documents and procedures are established and adopted by the loan committee. Program oversight and administration fee will not exceed $18,000 and will be billed monthly based on actual time at ECIA's Board approved billable hourly rates. Loan Committee meetings are included in the per loan fee. ECIA will bill up to $2500 for marketing and outreach of the loan program. City will assist in the program marketing and outreach efforts including establishing a web page for program infoilnation; downloading program information and forms; and the ability for the borrow to access an application foiiii online. Legal fees for each loan will be billed separately and are not included in the total administrative fees. ECIA staff will work with the City legal department for loan review and filing. Budget — Year 1 — Initial Set up Year Developing program guidelines/procedures/operational plan/documents $2,000 6 loans @ $3,000/loan estimate (will track real time spent on each loan) $18,000 Outreach and Marketing $2,500 Legal Fees — City Legal $0 Total Year One Administrative Fees $22,500 Total Year Two Administrative Fees $20,500 III. RECORD KEEPING AND REPORTING Loan Tracking/Reporting — ECIA staff will track at a minimum the following: loans made to veterans, minority -owned business, female -owned business; number of FTE's created; total investment; delinquencies, community impact, and will review financials quarterly during the deferment period and in addition, will require financials annually. ECIA staff will track the construction -related loans for those businesses impacted by road construction separately and will track the following: the type and location of the business impacted; location of construction; construction timeline; monthly sales before construction; hardship imposed by construction; and will review financial statements quarterly during the deferment period and in addition, will require financials annually. ECIA will provide a loan status report to the City staff quarterly. Borrower File - Establish and maintain a borrower file to include credit approval memo, file checklist, promissory note, loan application, IRS W-9, ACH Form, business tax returns or financials and the following documents if applicable: personal financial statement of owner(s) & guarantor(s), business entity documentation including borrowing resolution, and draw tracking fonn. Deposit Account - Maintain the microloan deposit account and accept repayments into the deposit account from participating businesses. Track loan repayments from businesses and provide a monthly report of loan status with a current loan fund balance to the City Economic Development Director. Loans in Default — The City Attorney will assist with collections of loans in default or the City will reimburse ECIA for private attorney cost associated with collection. 9 CITY OF DUBUQUE INSURANCE SCHEDULE 10 City of Dubuque Insurance Requirements for Professional Services INSURANCE SCHEDULE J 1. East Central Intergovernmental Association shall furnish a signed certificate of insurance to the City of Dubuque, Iowa for the coverage required in Exhibit f 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. Each certificate shall include a statement under Description of Operations as to why the certificate was issued. Eg: Contract for Services dated 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. Bests Rating Guide. Each certificate shall be furnished to the Finance Department of the City of Dubuque. 4. Failure to provide coverage required by thisInsuranceSchedule 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 agreement. Contractors shall require all subconsultants and sub-subconsultants.to obtain and maintain during the performance of work insurance for the coverages described in this Insurance Schedule and shall obtain certificates of insurances from all such subconsultants and sub-subconsultants. Contractors agree that they shall be liable for the failure of a subconsultant and sub subconsultant to obtain and maintain such coverages: The City may request a copy of such certificates from the Contractor: All required endorsements shall be attached to certificate of insurance. Whenever a specific ISO form is listed, required the current edition of the form must be used, or an equivalent form may be substituted if approved by the Director of Finance and Budget and subject to the contractor identifying and listing in writing all deviations and exclusions from the ISO form. Contractors shall be required to carry the minimum coverage/limits, or greater if required by law or other legal agreement, in Exhibit I. If the contractor's limits, of liability are higher than the required minimum limits then the provider's limits shall be this agreement s required limits. Contractor shall be responsible for deductibles and self insured retention. Page 1 of 4 Schedule J Professional Services May 2019 City of Dubuque Insurance Requirements for Professional Services INSURANCE SCHEDULE J (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" 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 26. 6) Policy shall include Waiver of Right to Recover from Others endorsement. AUTOMOBILE LIABILITY Combined Single Limit $1,000,000 WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter85. Coverage A Coverage B Statutory —State of Iowa 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 Nonelection of Workers' Compensation or Employers' Liability Coverage under Iowa Code sec. 87.22. Completed form must be attached. Page 2 of 4 Schedule J Professional Services May 2019 12 City of Dubuque Insurance Requirements for Professional Services INSURANCE SCHEDULE J (continued) UMBRELLA/EXCESS LIABILITY $1,000,000 Umbrella/excess liability coverage must be at least following form with the underlying policies included herein (General Liability, Automobile, Workers Compensation). E) PROFESSIONAL LIABILITY $1,000,000 Provide evidence ofcoverage for 5 years after completion of project. F) CYBER LIABILITY $1,000,000 X yes 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. BOND Crime/Fidelity Bond: $100,000 Include: Loss Payable endorsement - City of Dubuque, 50 W 131" St., Dubuque, IA 52001 Dubuque Initiatives, 50 W. 131" St., Dubuque, IA 52001 Upon receipt of funds from the City of Dubuque Crime/Fidelity Bond: $200,000 Include Joint Loss Payable. endorsement City of Dubuque, 50 W. 131" St , Dubuque, IA 52001 Dubuque Initiatives, 50 W. 131" St., Dubuque, IA 52001 The amount of the bond shall at all times be not less than the total contribution of Dubuque Initiatives and the City of Dubuque Page 3 of 4 Schedule J Professional Services May 2019 13 City of Dubuque Insurance Requirements for Professional Services PRESERVATION OF GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. Theinsurer 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 lowa 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 underthe policy. SPECIMEN (DEPARTMENT MANAGER: FILL IN ALL BLANKS AND CHECK BOXES) Page 4 of 4 Schedule J Professional Services May 2019 14