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Communications Utility, City, RFP's D~B~E ~<k~ MEMORANDUM r--, -..:.. ,I March 15, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager 1...-/ SUBJECT: Municipal Communications Utility Our economy and its underlying technology make access to communications services an economic development issue for Dubuque. We have learned firsthand the value of competition in providing communications services. In the 1990's, the City of Dubuque was one of the few major cities in the country not to have a digital telephone switch. After the City worked with a Qwest competitor to bring in a digital telephone switch, Qwest also installed a new state-of-the-art digital telephone switch. We know what it means to be a captive market, only able to obtain telephone or cable service from a single monopoly provider, or not at all. Broadband, or high-speed Internet access, is essential for business and is quickly becoming essential at home as well. New technologies, new players in communications services, the bundling of services, the aggregation of demand, cost, and the measuring of constituent needs are just a few of the issues at the forefront of the broadband debate. Like many cities, Dubuque is grappling with the challenges of assuring reasonably priced state-of-the-art communications services for our businesses and homes. Across the country, local governments offer a wide variety of utility services such as water, sewer, electricity, gas, telephone, and most recently cable television. Should local governments build communications infrastructures as they do other utilities? Or should communications infrastructure be built and operated only by private for-profit companies? This debate is currently under way in the Iowa legislature, and in many other state legislatures, as lobbyists for existing monopolies attempt to block communities from developing municipal broadband utilities which would provide the infrastructure for private companies to offer high-speed Internet, cable television, and telephone services in a highly competitive environment benefiting all the companies, except maybe the existing monopolies, as well as the customers. Promoting the universal availability of a range of competitively priced state-of-the-art broadband services for residences, industry and businesses of all sizes, educational, health care, and government agencies and community organizations in newly developed areas as well as long-established neighborhoods and districts will continue to be a major initiative for Dubuque. The City Council has made the investigation of new approaches a priority, including public/private partnerships and municipally provided utility infrastructure. The City will stay abreast of broadband developments and solutions for essential services, economic development, education, and overall quality of life. The City of Dubuque is currently negotiating with Mediacom to extend its non-exclusive franchise to provide cable television services in Dubuque. As with most negotiations, the City will not get everything that it has proposed. No matter what the final results of these negotiations are, it is important to remember that it will only be a cable television franchise. While Mediacom seems willing to meet some non-cable T.V. needs, the City cannot necessarily ensure that Mediacom will meet all the communications needs of businesses and homes, including Internet access and telephone service, through the franchise negotiation process. While Mediacom has begun to offer limited levels of cable modem service and has suggested that other new services may follow, it will not be delivering the full spectrum of affordable, universally available state-of-the-art communication services in a competitive environment that our community needs. Without rate regulation or real competition, even the basic cable service package that Mediacom is currently offering is too expensive for many families. In Dubuque, as across the country, cable rate increases continue to significantly exceed the rate of inflation. Furthermore, Mediacom and its predecessors have withheld from Dubuque subscribers the option of a smaller, lower-price broadcast basic tier which the company readily provides in other communities. The average Dubuque homeowner currently pays $493 in annual city property tax while paying $546 for annual basic cable service. The growth in the charge for cable service in Dubuque has far outpaced inflation. The monthly cable bill in 1984 was $11.52. The 2005 monthly cable bill is $45.50. The following graph shows what the difference would be if cable service charges had risen by the rate of inflation instead of an average of 6.61 % each year as they have in Dubuque. $50.00 $46.00 $42.00 $38.00 $34.00 $30.00 $26.00 $22.00 $18.00 $14.00 $10.00 $6.00 $2.00 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 --+- Cable Rate adusted for inflation - Actual Cable Rate The four-lane highways our community has worked hard to get over the years connect the tri-state area to the rest of the world. But the future four-lane highway is bandwidth. Without it, Dubuque will once again become isolated and begin to decline economically, with the resulting loss of jobs and investment. Let us not allow a repeat of the early 1980's because of the insufficient commitment of local cable and telephone monopolies and the absence of a competitive market for affordable, universally available state-of- the-art communication services. I respectfully request Mayor and City Council approval of the issuance of a Request for Proposals to provide additional information as the City considers the feasibility of a municipal communications utility. (11) k; I}Al~ M(chael c. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Merrill Crawford, Cable Franchise Administrator CITY OF DUBUQUE, IOWA REQUEST FOR PROPOSALS MUNICIPAL COMMUNICATIONS UTILITY FEASIBILITY STUDY The City of Dubuque, Iowa requests proposals from interested vendors to conduct a market and technology feasibility study of the creation of a municipal communications utility which could include a municipally-owned or supported Fiber-To-The-Premises (F.T.T.P.) telecommunications infrastructure throughout the City of Dubuque or other appropriate technology to universally meet the communication needs of Dubuque residents and businesses. The selected contractor will work with designated City staff and other resources to conduct a feasibility study with recommendations as to whether and how the City might enhance the availability of advanced high-speed, high-quality, competitively priced communications services to Dubuque businesses, institutions and residences through the construction and operation of a system connecting virtually all homes, businesses and institutions within the City limits. The study and recommendations shall address such options as City partnering or sole construction and ownership of communication infrastructure and the leasing of City-owned infrastructure, components or bandwidth to multiple voice, video and data service providers for delivery to consumers. For the purposes of this RFP, the terms "vendor", "proposer", and "contractor" refer to the same party at subsequent stages of the process. A "proposer" is considered to be a "vendor" who is responding to this RFP. The "contractor" is the "vendor" whose proposal has been selected and with whom a contract has been established. COMMUNITY PROFILE The City of Dubuque is located on the Mississippi River in northeastern Iowa, bordering Illinois and Wisconsin. The City occupies approximately 25 square miles with a population approaching 60,000, and is the major retail, medical, educational and employment center of a tri-state market. The community has a stable and diversified manufacturing base and a growing service sector. Tourism continues to be a significant economic force and is growing markedly with the recent opening of the $200 million first phase of the America's River Project. 1 EXISTING TELECOMMUNICATIONS & CABLE SERVICES Dubuque receives local telephone service from Qwest (ILEC) and from McLeod USA (CLEC). Cellular/PCS service providers actively serving the community include US Cellular, Verizon, IWireless, Illinois PCS, Nextel Partners, and AT&T Wireless (Telecorp). The lone franchised cable operator is Mediacom. Traditional long distance telephone service and dial-up Internet access are available from multiple vendors providers. Several varieties of DSL service have been introduced by Qwest and McLeodUSA within the past year, but availability is technically uncertain in some areas. One or more additional CLEC DSL service providers have entered the market. One new wireless ISP, You- Squared, also operates in the market. The state-owned Iowa Communications Network provides live video distance learning, voice and Internet access to qualifying schools, colleges, libraries, state and federal government offices, but does not serve local government, or business or residential customers. With regard to the reception of land-based over-the-air broadcast signals, Dubuque is a "terrain-captive" market, due to its geographic location and its lead- lined Mississippi River bluffs. Mediacom and its eight predecessors have enjoyed a phenomenal 88-92% penetration rate for Basic Cable Service. Since February, 2003, however, cable subscription has begun to decline due to the inclusion of area broadcast TV signals in the Direct Broadcast Satellite (DBS) options of the Dish Network, and more recently, of DirecTV. The present Mediacom cable system in Dubuque is 750 MHz hybrid fiber/coax (HFC). A separate two-way coaxial cable institutional network (I-Net) connects most school, college, hospital and government buildings. Mediacom offers asymmetrical cable modem service to residents and small businesses, and offers levels of measured broadband service for larger businesses. Mediacom is presently in negotiations with the City of Dubuque regarding terms of renewal of its cable franchise, which has been temporarily extended from its 9/30/01 expiration. The company's Dubuque operation is the business center and technical hub of a larger tri-state cluster of cable systems serving smaller communities. Even with recent improvements in telecommunications infrastructure, business and institutional consumers in Dubuque report ordering delays, high prices, and in some cases uncertain availability of higher speed, higher capacity connections such as T-1 lines or optical fiber options. New concerns and local government obligations regarding homeland security have brought sharper focus to the need for redundant, robust, self-healing interconnected networks and diverse back-up communication throughout the Tri-State Area. As a mid-sized community with many treasures, Dubuque hopes to add universal, competitive state-of-the-art telecommunications infrastructure and services to its significant economic development and quality of life assets. 2 EXISTING MUNICIPAL UTILITIES The City of Dubuque presently operates municipal water, wastewater, refuse collection and stormwater management utilities. The City does not own or operate gas, electric, phone, telecommunications or cable utilities. Aquila (Utilicorp) provides natural gas service and Alliant Energy provides electricity throughout the community. The Maquoketa Valley REC also serves a small number of electricity customers within the Dubuque city limits. The City does own and operate its own fiber optic institutional network carrying data and telephone traffic among City and county buildings in the downtown area but does not presently offer services or infrastructure to non-government entities via this network. The City continues to expand its own fiber net to additional government facilities and includes new telecommunications conduit and innerduct in most major street construction projects. IMPORTANT DATES Proposal Due Date: Monday, April 25, 2005, 2:00 p.m. Central Time Proposal award: Anticipated within 30 days of the Proposal Due Date. Commencement of Work: Upon receipt of signed contract accompanied by written notice to proceed. Study Completed, Final Report Delivered: Friday, August 26,2005,2:00 p.m. Central Time. PROPOSAL RESPONSE FORMAT Each proposer must respond with a proposal organized as follows: Section 1 - Reauired Documents a. Letter of Transmittal The proposal shall be accompanied by a letter of transmittal briefly outlining the firm's understanding of the work and a one-page Executive Summary of the proposal. b. Profile of the Firm The proposal shall be accompanied by a profile including general information about the firm, its official name, address and principal officers, and the firm's particular areas of expertise regarding this RFP. 3 c. Qualifications The proposal shall contain a listing of past clients and such additional information as demonstrates its qualifications and successful experience in the design, implementation and analysis of feasibility studies comparable to that proposed in response to this RFP. d. Project Personnel The proposal shall contain a list of names and background and qualifications of personnel and subcontractors who will be working on the proposed project. e. Fees and Compensation Accompanying the proposal, in a separate, sealed envelope, shall be a detailed description of proposed fees and compensation to the contractor for providing all services and tangible work products included in the project. f. References The proposer shall provide three or more specific municipal client references, including a contact person and telephone number, for feasibility studies the firm and/or its subcontractors or team partners have performed similar to the study proposed in response to this RFP. Section 2 - Overview a. Scope of Services and Project Schedule The proposal shall contain a summary of the scope of services and implementation schedule for the proposed project, and shall be founded upon the following requirements: 1. Study Committee Contractor shall meet with a municipal communications utility feasibility study committee comprising City staff and community representatives regarding design and implementation of the feasibility study. Follow-up meetings will be scheduled as needed to review progress and discuss recommended options. 2. Information Gathering While the City will make available the results of any prior surveys, reports and other information as might be beneficial in this project, and can assist to a reasonable degree in identifying other likely sources of information, the contractor shall be 4 responsible for gathering and verifying the accuracy of data upon which the conclusions and recommendations of the feasibility study are founded. 3. Role of City Employees The proposal must detail the proposed role and obligations, if any, of City of Dubuque employees during design and implementation of the feasibility study or any of its research or analysis components. As options or alternates, the proposer may choose to indicate specific supplementary services or tasks, which, if performed by City of Dubuque employees, would reduce the cost of design and implementation. The associated cost reductions should be specifically stated for each such service or task. 4. Tasks The study must include, but is not limited to, the following: a) Primary and secondary market research to identify needs and gauge support of potential residential, commercial, institutional, industrial and governmental customers. The sample size and methodology should reflect a 95% or better confidence level. b) An analysis of the existing service providers, including current corporate strategies, system evaluation, service offerings, pricing, customer satisfaction, and a competitive assessment. c) An assessment and recommendation as to design standards of a universal communication infrastructure, if any, to be constructed and operated by the City, offering open access to multiple providers of telephone, cable, telecommunication and other services. If more than one technology for such a system is feasible, each one must be assessed and recommendations offered. d) Any contractor recommendations in favor of a City-owned broadband infrastructure with bandwidth capable of providing telephony, CATV, high-speed Internet, network and/or other services shall include a conceptual design, map and projected cost estimates. e) An economic feasibility assessment of public financing and operation of a City-owned communications network where services are offered by multiple competing providers. 5 Revenue projections should include market penetration and price sensitivity. If more than one technology for this system is feasible, each one must be reviewed. At a minimum, the economic assessment should include: 1) Cash flows over a ten-year period 2) Present value analysis over a fifteen-year period 3) Capital cost projection 4) Estimated working capital requirements 5) Market penetration analysis 6) Estimated operating costs for staff, operations and maintenance 7) Projected sources of revenue and variable costs of services f) A business plan which includes the total cost to construct, operate and maintain the infrastructure. The plan shall include but not be limited to: 1) Staffing requirements and job descriptions for each job 2) Phased build-out plan, including schedule for completion of each section of the system. 5. "Go I No-Go" Decision Points and "Dead-end Tracks" While a considerable amount of foundation research and analysis will be required before even preliminary conclusions can be offered, the feasibility study methodology shall be designed and applied in such a manner as to maximize efficiency of contractor time and resources and to minimize the inclusion of generic or "boilerplate" information which is not applicable to the specific Dubuque situation. If in the gathering and analysis of information, the contractor concludes with reasonable certainty at a preliminary stage that a public communication utility is not feasible for the City of Dubuque, the contractor shall at such point consult with the City as to whether further investigation of another financing or ownership option for a city-wide network is warranted in the course of the feasibility study. Consequently, to the extent practicable in achieving accurate data and solid conclusions, the expenditure of resources in studying a "dead-end track" should be suspended. The ongoing focus of the study should follow only those feasible or promising tracks or options which survive, or emerge from, earlier stages of information gathering and analysis. 6 In the event a point is reached during the study where every studied option is deemed not feasible, the contractor shall so inform the City. In such case, the City shall have the option of a) continuing the study of one or more selected options to determine what factors, if altered, would lead to a positive feasibility recommendation, or b) truncating the study, authorizing a final report, and compensating the contractor for all work and expenses incurred to that point, whereupon the parties will consider the contract fulfilled. 6. Implementation Schedule The implementation schedule shall include timetable(s) for design, information-gathering, information processing and analysis, and any other major stages or components of the proposal. b. Methodology Overview A brief summary of methodology, tools, processes and standards to be used in conducting the study and forming conclusions and recommendations shall be given in the Methodology Overview component of the proposal. Section 3 - Main Bodv of Response The main body of the proposer's response to this RFP shall contain such a detailed narrative explanation and rationale as the proposer deems appropriate to clearly and completely communicate the proposal, terms of service, methodology and the form and content of the interim and final work products to be delivered to the City. Technical or ambiguous terms, abbreviations and acronyms must be defined. Unless clearly established elsewhere in the proposal, this section must include descriptions as to how the proposal addresses and meets or exceeds the requirements of the City's RFP. Section 4 - Additional Contract ReQuirements a. Exceptions The proposer agrees that it accepts all conditions and considerations as outlined within this document unless specifically noted in the Exceptions section of the proposal. Exceptions to any part of the requirements stated in this request must be clearly identified as such. Alternatives must be stated at that point in the response or on a separate attachment labeled "EXCEPTIONS". 7 b. Compliance with Laws/Standards The contractor shall abide by all federal, state and local laws, statutes, ordinances, rules and regulations now in effect or hereinafter adopted pertaining to this contract or to the facilities, programs, and staff for which the contractor is responsible. The successful proposer shall procure all licenses, permits, or other rights necessary for the fulfillment of its obligation under this contract. c. Proof of Required Insurance The contractor shall provide certificates of insurance coverage meeting or exceeding the required minimums detailed in Attachment A of this RFP. d. Indemnification Any and all claims that arise or may arise against the Contractor, its agents, servants or employees as a consequence of any act or omission on the part of the contractor or its agents, servants, employees while engaged in the performance of the contract shall in no way be the obligation or responsibility of the City. The contractor shall agree to indemnify, hold harmless and defend the City, its officers and employees against any and all liability, loss costs, damages, expenses, claims or actions, including attorney's fees which the City, its officers or employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any act or omission of the Contractor, its agents, servants or employees, in the execution, performance or failure to adequately perform the contractor's or its agent's, servant's or employee's obligations pursuant to the Contract. The City shall also be indemnified for any attorney's fees it incurs in enforcing the indemnification provision or any other indemnification provision in the contract. e. Default Force Maieure: The parties agree that neither party shall be held responsible for delay or failure to perform when such delay or failure is due to any of the following unless the act or occurrence could have been foreseen and reasonable action would have been taken to prevent the delay or failure: fire, flood, epidemic, strikes, wars, acts of God, unusually severe weather, acts of public authorities, or delays or defaults caused by public carriers, provided the defaulting party gives notice as soon as possible to the other party of the inability to perform. 8 Inabilitv to Perform: The contractor shall agree to make every reasonable effort to maintain staff, facilities, and equipment to deliver the services to be purchased by the City. The contractor shall agree to immediately notify the City in writing whenever it is unable to; or reasonably believes it is going to be unable to provide the agreed upon quality and quantity of services. Upon such notification, the City shall determine whether such inability requires a modification or cancellation of this Contract. Duties to Mitiqate: Both parties shall agree to use their best efforts to mitigate any damages which might be suffered by reason of any event giving rise to a remedy hereunder. In the event the City terminates the contract in whole or in part as provided above, the City may procure, upon such terms and in such manner as the City may deem appropriate, services similar to those so terminated, and the contractor shall agree to be liable to City for any excess costs for such similar services. The contractor shall agree to continue the performance of the contract to the extent not terminated under the provisions of the contract. The rights and remedies of the City provided in the contract shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract. f. Non-Discrimination During the performance of the contract, the contractor shall agree to not unlawfully discriminate against any employee or applicant for employment because of race, creed, religion, sex, national origin, disability, age, marital status, or public assistance status. The contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment, without unlawful discrimination because of their race, color, creed, religion, sex, national origin, disability, age, marital status, or public assistance status. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The contractor shall agree, in all solicitations or advertisements for employees placed by or on behalf of contractor, to state that all qualified applications will receive consideration for employment 9 without regard to race, creed, color, religion, sex, national origin, disability, marital status, or public assistance status. g. Payment Terms There will be no down payment issued to the contractor at contract signing, nor in advance of services provided. Proposals may include a payment schedule tied to the phased or modular completion of the feasibility study, set by clearly measurable performance benchmarks, or a calendar-based payment schedule of amounts from hourly fees for work actually performed. If the proposer anticipates and requests the City to pay some earlier specific fees to a third-party directly or as a pass-through, other than via the payment schedule above, such circumstances must be clearly identified in the proposal and stipulated in the contract prior to signing. h. Independent Contractors The contractor, subcontractors and all of their employees shall not be considered employees of the City of Dubuque while engaged in the performance of any work or services required herein, and shall be independent contractors. Any and all claims that may arise under the Workers Compensation Act of Iowa on behalf of said employees, and any and all claims made by any third party as a consequence of any act of omission on the part of the work or service provided to be rendered herein shall in no way be the obligation or responsibility of the City. i. Contractor Contact/Questions About the RFP This RFP was a joint effort of City employees who are members of the Municipal Communications Utility Feasibility Study Committee. Proposer communications shall be limited to contacts defined herein. Failure to comply with this provision may result in disqualification or evaluation penalty. It shall be the proposer's responsibility to learn all aspects of the RFP requirements. Should any details necessary for a clear and comprehensive understanding be omitted or any error appear in the RFP documents, or should the proposer note facts or conditions which, in any way, conflict with the letter or spirit of the RFP documents, it shall be the responsibility of the proposer to obtain clarification before submitting a proposal. 10 Questions concerning this document should be directed in writing or via fax or email only (no questions will be answered via oral communications) to: City of Dubuque Attn: Merrill Crawford City Hall Annex, 1300 Main Street Dubuque, IA 52001-4732 Fax: (563) 589-4299 Email: catv@cityofdubuque.org Questions may be submitted until five (5) business days before the due date. After that time, no further questions will be accepted. j. Incurring Costs The City of Dubuque is not liable for any costs incurred by any proposer in replying to this Request for Proposals (RFP). k. Alternate Proposals Proposers who wish to submit an alternate proposal may do so. If more than one proposal is submitted, each must be complete and must comply with the instructions set forth in this RFP. Vendors may submit joint proposals in partnership with other vendors, in which case the contractual relationship of the parties in the proposal shall be clearly explained. I. Permission to Proceed The contractor must obtain the City of Dubuque's written permission before commencing any work or procuring any equipment required by this project. m. Project Manager The contractor shall designate and assign to the project a project manager with overall responsibility for services to be rendered under this proposal. The Contractor's project manager shall coordinate all activities in the design, implementation, and reporting of the feasibility study with designated representatives of the City of Dubuque. n.Addenda Addenda are any graphic or written instruments issued by the City of Dubuque prior to the date for receipt of proposals, which modify or interpret the document by additions, deletions, clarifications, or corrections. Addenda will be mailed to all persons or firms who are known by the committee to have received proposal documents. 11 The original RFP and all addenda will also be posted to the official City of Dubuque website, www.cityofdubuque.org. No addenda will be mailed later than 72 hours, nor posted to the website later than 48 hours prior to the time and date for receipt of proposals except an addendum postponing or withdrawing the Request for Proposals. o. Proposal Response The proposal, appropriate proposal forms, and any other documents submitted with the proposal shall be mailed or submitted as one (1) unbound original plus eight (8) bound copies, plus one (1) sealed envelope containing project pricing, fees and compensation information to: City Clerk City of Dubuque 50 W. 13th Street Dubuque, IA 52001 All proposal responses must be filed in the Office of the City Clerk no later than 2:00 p.m. Central Standard Time, Monday, April 25, 2005 and must be labeled: "Municipal Communications Utility Feasibility Study Proposal". p. Proposal Opening Only properly identified proposals which have been received on time will be considered. Proposals received prior to the time of opening will be kept secure and unopened. The City Clerk shall determine when the specified time has arrived. No proposal received thereafter will be considered. No responsibility will attach to the City for premature opening of a proposal not properly addressed and identified. Proposers are not required to be present at the proposal opening. q. Proposal Clarification Questions and Interview After reviewing all proposals received in response to this RFP, the City may develop a list of clarification questions to be addressed by the proposer. The City will send these questions to the proposer for clarification. The proposer shall provide a response within ten (10) working days following the inquiry. The City may also require that a representative of the proposer meet with the proposal review committee in Dubuque to discuss or demonstrate aspects of the proposal. 12 r. Evaluation Criteria Proposals will be evaluated by the committee based upon the degree and relevance of the proposer's prior experience, compliance with and responsiveness to the requirements of this RFP, the proposed methodology and implementation plan, the end product of the proposal, and the cost of the proposal. s. Final Selection The Dubuque City Council will select a vendor, taking into account the recommendations of the proposal review committee and the City Manager. t. Confidentiality of Information Any submitted information considered trade secret or confidential to the proposer must be so labeled and enclosed separately. To the extent permitted by law, the City and its agents will hold the submitted proposal and any related materials in confidence if so requested by the proposer, throughout the evaluation process. However, after the award, all contents of the selected proposal will be considered public information. All proposal material supplied, including supporting material and information disclosed during the proposal process will become the property of the City and will be retained for internal use. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the proposer of the conditions contained in this request for proposals. Once under contract, the contractor may be given access to information that is confidential by law. The contractor will be required to maintain that confidentiality under the terms of its contract with the City. 13 ATTACHMENT A INSURANCE SCHEDULE C INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A or better in the current A.M. Best Rating Guide. 2. All policies of insurance required hereunder shall be endorsed to provide a thirty (30) day advance notice to the City of Dubuque of any cancellation of the policy prior to its expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. shall furnish Certificates of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 7. Such certificates shall include copies of the endorsements set forth in Paragraphs 2 and 5 to evidence inclusion in the policy. shall also be required to provide Certificates of Insurance of all subcontractors who perform work or services pursuant to the provisions of this contract. Said certificates shall meet the same insurance requirements as are required of 4. Each Certificate of Insurance shall be submitted to the contracting department of the City of Dubuque, Iowa prior to commencement of work/service. (The contracting department shall submit the certificates to the Finance Director.) 5. All policies of insurance required in Paragraph 7, except Professional Liability, shall include the City of Dubuque, Iowa under the attached Additional Insured Endorsement (CG2026) and the attached Governmental Immunities Endorsement. 6. Failure to provide evidence of minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the insurance required herein shall be considered a material breach of this agreement. 7. , and all subcontractors shall be required to carry the following minimum insurance coverage or greater if required by law or other legal agreement: 14 PROFESSIONAL LIABILITY: $1,000,000 COMMERCIAL GENERAL LIABILITY: General Aggregate Limit Products-Completed Operation Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 Commercial general liability shall be written on an occurrence form, not a claims made form. Coverage to include premises-operations-products-completed operations, independent contractors coverage, contractual liability, broad form property damage, and personal injury. UMBRELLA OR EXCESS LIABILITY: $1,000,000 15 *Revised January, 2002 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurance carrier 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 form time to time. 2. Claims Coveraqe. The insurance carrier 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 insurance carrier. 4. Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this policy and the insurance carrier 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 Chanqe in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. 16 POLICY NUMBER COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULL Y. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person Or Organization: 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. (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. Copyrioht. Insurance Services Office. Inc. 1994 CG 20 26 11 85 17 ( END OF REQUEST FOR PROPOSALS: MUNICIPAL "FIBER TO THE PREMISES" FEASIBILITY STUDY) CITY OF DUBUQUE, IOWA 18