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Contract AuthorityTHE CTTY of C ~,. DUB UE .Masterpiece ~n the Mississippi MEMORANDUM May 16, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Contract Authority Governor Chet Culver has signed House File 830 which eliminates the requirement in the Iowa Code for a City Council resolution to authorize all expenditures in excess of $25,000. The State Statute now requires a City Council resolution only for expenditures for public improvements in excess of $100,000. City Attorney Barry Lindahl is recommending amendment to the City Ordinance giving the City Manager the authority to award and execute contracts, to authorize work to proceed under contracts, and to approve the contractors' 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 purchase of equipment, materials and supplies; (c) Contracts for services for $500,000 or less; (d) Leases for a term of three years or less; (e) Insurance contract renewals. I concur with the recommendation and respectfully request Mayor and City Council approval. (~~ti2'" L Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager THE CITY OF DUB ~ CJE Masterpiece on the Mississippi BARRY LINDAHL CITY ATTORNEY MEMORANDUM To: Michael C. Van Milligen City Manager DATE: May 15, 2007 RE: Contract Authority The Governor has signed HF 830 which eliminates the requirement in Iowa Code § 380.4 for a city council resolution to authorize all expenditures in excess of $25,000. The statute now requires a resolution only for expenditures for public improvements in excess of $100,000. A City of Dubuque City Council resolution authorizes the City Manager to sign the following without City Council approval: (a) Public improvement contracts for $25,000 or less; (b) Contracts for the purchase of equipment, materials or services for $50,000 or less; (c) Leases for a term of three years or less; (d) Insurance renewal contracts. All other contracts and purchases require City Council approval. I am recommending that the City Manager's authority be increased as follows: 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; OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org (b) All purchases of equipment, materials, and supplies; (c) Contracts for services for $500,000 or less; (d) Leases for a term of three years or less; (e) Insurance contract renewals. The proposed purchasing policy manual which is being drafted by a committee will cover the procedure for all contracts and purchases. Preparers Barry A. Lindahl,~aq. Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 (963)~583~113 RESOLUTION NO. 307-07 AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACTS AND LEASES ON BEHALF OF THE CITY OF DUBUQUE Whereas, the City Council adopted Resolution No. 183-06 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. 183-06. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Resolution No. 183-06 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 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. Section 2. The City Manager may delegate the authority granted herein provided such delegation is in writing. Passed, approved and adopted this 21st day of May, 2007. Buol, Mayor Attest: Kevin S. Firnstahl, Asst. City Clerk