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Home My WebLink About2020-08-04 ResolutionItem Number: 5.e. r � � At + at1Mw��al +•ate_ CITY OF IOWA CITY www.icgov.org August 4, 2020 Resolution to issue a New Cigarette Permit to the following: 1. Iowa 76 LLC dba Downtown Liquor, 315 S. Gilbert St. ATTACHMENTS: Description Cigarette Resolution Prepared by: City Clerk's Office, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5043 Resolution Number: 20-178 Resolution to Issue Cigarette Permits Whereas, the following firms and persons have made an application and paid the taxes required by law for the sale of cigarettes, tobacco, nicotine and vapor products. Now, Therefore, be it Resolved by The City Council of Iowa City, Iowa, That: the applications be granted and the City Clerk is hereby directed to issue a permit to the following named persons and firms to sell cigarettes, tobacco, nicotine and vapor products: Downtown Liquor - 315 S. Gilbert St. Passed and approved this 4th day of August 2020 � r— Mdydr i pproved by Attest: - City Clerk City Attorney's Office It was moved by Salih and seconded by Weiner Resolution be adopted, and upon roll call there were: Ayes: x Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner 5.e - Item Number: 6.a. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT August 4, 2020 Resolution Approving and Adopting the new Purchasing Manual for City Procurement. Prepared By: Dennis Bockenstedt, Finance Director Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: No impact Recommendations: Staff: Approval C • 1 u . " ► /G1 Attachments: Resolution Purchasing Manual Executive Summary: This resolution amends the City's Purchasing Manual to add three major provisions as well as many other minor language clarifications. The three major provisions being added to the Manual are a new Minimum Wage Preference provision, a new procurement method for professional and consulting services (Request for Qualifications), and an appendix with the federal grant purchasing requirements which complies with an Iowa Homeland Security request. Background /Analysis: There are three major provisions being added to the latest version of the City's purchasing manual. They are a Minimum Wage Preference provision, a new procurement method for professional and consulting services (Request for Qualifications), and an appendix with the federal grant purchasing requirements which complies with an Iowa Homeland Security request. The first major new provision being added to the Purchasing Manual is a Minimum Wage Preference which mirrors that of the Local Preference provision. It is as follows: E. Minimum Wage Preference Preference may be given to businesses or vendors that have a certified minimum wage at or above the Johnson County recommended minimum wage. This includes branch operations and franchises. Cost and other considerations being equal, businesses that have a certified minimum wage at or above the Johnson County recommended minimum wage shall be given first consideration for the purchase of goods or services. A business or vendor that has a certified minimum wage at or above the Johnson County recommended minimum wage that submits a quote or bid by the established deadline falling within 5% of the lowest bid will have the opportunity to match the lowest price submitted, but only if that price was submitted by a vendor that has not certified that they pay a minimum wage at or above the Johnson County recommended minimum wage. In this instance, the City representative responsible for issuing the solicitation will contact the vendor/business that has fallen within the 5% threshold to request a price match. The business/vendor will have a twenty-four hour period to submit a written price match to the City representative. If more than one business/vendor meets the criteria above, each vendor will be given forty-eight hours to submit a lower bid in writing. All revised bids must be at or lower than the original lowest bid. At the close of the forty-eight hour period, the contract will be awarded to the lowest bidder, regardless of minimum wage. In the event of a tie, the vendor with the highest minimum wage will be awarded the contract. If two or more vendors tie, the award will be determined by coin flip. The local preference policy does not apply to Public Improvement projects, goods and services acquired through the Request for Proposal or Qualifications process, or purchases utilizing Federal Transit funds or Federal funding. The second major new provision added to the Purchasing Manual is a procurement method for professional and consulting services which is called a Request for Qualifications. The new language in the purchasing manual is as follows: Request for Qualifications (RFQLJ A Request for Qualifications is a formal method used to solicit competitive sealed proposals for the procurement of professional or consulting services that awards the purchase to the firm(s) based upon the firm's expertise and past performance. All Request for Qualifications will be conducted by the Purchasing Division, Engineering Division, or Equipment Division. This form of solicitation is evaluated on criteria including, but not limited to: the company responsibility and history, references, financial stability, technical expertise, experience, project approach, and cost. The criteria used and the value placed on the criteria will depend on the professional or consulting services solicited. Qualifications are received as outlined in the proposal document; qualifications may be allowed by paper or electronic means. Paper qualifications are received by the City Clerk's office and electronic submissions are received by electronic bidding software. Qualifications received after the due date and time may be rejected. The Purchasing Division, Engineering Division, or the Equipment Division reviews the submitted qualifications to make sure that they are complete. The Purchasing Division, Engineering Division, and Equipment Division reserve the right, but are not required, to seek additional information from a proposer or proposers during the review process to ensure their qualification(s) are complete. Only those qualifications that are considered complete, otherwise known as responsive, are dispersed to an evaluation committee. The evaluation committee, which will consist of representatives from the department making the purchase, and other representatives appointed by the Purchasing Division, Engineering Division, or the Equipment Division in cooperation with the department, will receive the complete qualifications with instructions from the Purchasing Division, Engineering Division, or the Equipment Division regarding the evaluation process. The evaluation committee shall sign and adhere to the instructions. Once the evaluation committee has reviewed and scored the qualifications, the evaluation committee may meet to discuss the qualifications and the evaluations. During this time, items in question will be discussed. Such discussion may result in final ranking that differs from the original individual scores of evaluators. The evaluation committee may decide to make an award or elect to request clarification on the qualifications. The evaluation committee may also request an oral presentation to assist with the final decision to award. During this time, all contact with the vendor will be conducted solely through the Purchasing Division, Engineering Division, or the Equipment Division's point of contact, and responses will be presented in writing to the committee. The last major addition to the Purchasing Manual is a new appendix which adds the Federal purchasing requirements for Federal grants. Iowa Homeland Security is requiring the addition of this language to the Purchasing Manual in order for the City to qualify for Federal Emergency Management Agency assistance. ATTACHMENTS: Description Resolution Purchasing Manual Dennis Bockenstedt, Finance Director, 410 E. Washington, Iowa City, IA 52240,(319)356-5078 RESOLUTION NO. 20-179 Resolution Approving and Adopting the new Purchasing Manual for City Procurement WHEREAS, the Iowa City Purchasing Manual was last updated April 2, 2018; and WHEREAS, personnel from the City's Finance, Public Works, Parks & Recreation, City Attorney, and City Manager departments have worked together to revise the Purchasing Manual, which staff believes will create a more concise document, while ensuring a competitive and fair environment for all parties, as well as appropriate accountability and minimizing of future procurement risk for the City; and WHEREAS, the City Council desires that preference may be given to businesses or vendors that have a certified minimum wage at or above the Johnson County recommended minimum wage; and WHEREAS, a new procurement method for professional and consulting services which is called a Request for Qualifications has been added to the Purchasing Manual; and WHEREAS, Iowa Homeland Security is requiring the addition of language that incorporates the Federal purchasing requirements for Federal grants. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the attached new Purchasing Manual is hereby approved and adopted. 2. The City Manager is authorized to approve non -substantive changes to the Purchasing Manual in writing. Passed and approved this 4th day of August , 2020. proved ity by� CAttorney's Office - 7/29/2020 Resolution No. 20-179 Page 2 It was moved by salih and seconded by Weiner the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: % Bergus % Mims x Salih % Taylor x Teague x Thomas % Weiner PURCHASING POLICY MANUAL � r 1 ®1■� CITY OF IOWA CITY Last revised: August 2020 TABLE OF CONTENTS SECTION I INTRODUCTION Purpose Page 2 Authority to Purchase Page 2-3 Employee Responsibility Page 3 SECTION II STANDARD PROCUREMENT PROCEDURES Page 8 Minimum Solicitation Requirements Page 4 Limits Page 4-5 Methods Page 5-7 Advertising Public Bids and Request for Proposals _Page 7 Contract Negotiation and Approval Page 7 64x9jI[oleo MM *Kel04yY113ek lI1031/:11117:1;709:1119il1;7DluID&II" PROCEDURES Public Improvements Page 8 Professional and Consulting Services Page 8 Lease of Real Property or Rental of Equipment from Another Party for More than One Year Page 8-9 Information Technology Purchase Procedures Page 9 Department of Transportation Rock Salt Contract Page 9 Travel and Training Page 10 Economic Development Grants/Aid to Agencies Page 10 Emergency Purchases Page 10 Sole Source Page 10 Cooperative Purchasing Page 11 Non -Profit Job Training Page 11 Contracts with Other Government Entities Page 11 SECTION IV LEGAL REQUIREMENTS Gratuities/Gift Law Page 12 Prohibited Interest in Public Contracts Policy Page 12 Wage Theft Policy Page 12 Local Preference Page 12-13 Minimum Wage Preference Page 13 State and Federal Funding Page 13 Donated Funds Page 14 Professional and Consulting Service Contracts Page 14 Record Retention Page 14 Public Record Page 14 Surplus Equipment Transfer/Disposal Page 14 Shipping Terms Page 14-15 Payment Terms Page 15 SECTION V PUBLIC IMPROVEMENT POLICY General Policies Page 16 Competitive Bid Process Pages 16 - 18 Competitive Quotation Process Pages 18 - 19 Contract Administration Pages 20 - 21 Emergency Repairs Page 21 APPENDIX I PURCHASING TERMS AND DEFINITIONS Pages 22 - 24 APPENDIX II PURCHASING UNDER FEDERAL AWARDS Pages 25 - 27 SECTION I. INTRODUCTION A. Purpose The purpose of this manual is to define the City of Iowa City's purchasing policies, for both goods and services and public improvements, in order to establish uniform purchasing practices throughout the City's departments and divisions. The policies in this manual encourage competition while promoting fair and equitable treatment of individuals who participate in the procurement process. In the event there is a separate funding authority with its own procurement policy, departments and divisions shall follow both the funding authority's rules, as well as the City's purchasing policies. If they conflict, the more stringent policy shall prevail. The Iowa City Public Library and Iowa City Airport are managed by their own separate governing bodies and adopt their own purchasing policies. All other City entities are governed by this Purchasing Manual. B. Authority to Purchase City Council Any spending authority not delegated by City Council is retained by City Council. The City Council determines expenditure levels through the formulation and approval of an Annual Operating Budget and Capital Improvements Program. In performing this policy-making function, the City Council establishes a set of goals, priorities, and performance standards which the City organization directs its collective efforts toward accomplishing. The adoption of the Annual Operating Budget is the approval of a level of expenditures necessary to accomplish the goals and objectives that have been established by each City program. With the exception of specific statutory requirements for Public Improvements, and subject to the limitations imposed by Council resolution on City Manager spending authority, no further Council action is required to initiate purchases within the budget (See Section III (A) of the Purchasing Policy Manual for more on Public Improvements). City Manager The City Manager is delegated the responsibility by the City Council to carry out the policy, direction, and goals of the City Council. It is the City Manager's responsibility to manage the Annual Operating Budget in such a way that the goals and priorities of the City Council are accomplished. All recommendations for changes in the City's general purchasing policy will be made with the prior approval of the City Manager. The City Manager may, for good reason consistent with the purposes of these policies, give written permission to the Purchasing Agent to allow a purchase that is not in compliance with these policies, if the waiver is not inconsistent with applicable law. The City Manager or designee may amend this Purchasing Manual to reflect City Council action. Any other change to the manual must be approved by the City Council. The Purchasing Agent, City Engineer, and the Equipment Superintendent have been designated by the City Manager to carry out the policies and procedures of the Purchasing Manual. Each of these positions, and their respective divisions, is responsible for implementing and ensuring compliance with the City's procurement requirements. The Purchasing Agent assists City departments with the procurement of goods, services, and professional and consulting services. The Equipment Superintendent assists with the acquisition of equipment, vehicles, and fuel, while the City Engineer is responsible for the procurement of Public Improvements and related consultant services. Departments City Departments are responsible for meeting the goals and objectives established by City Council and the City Manager and are provided budget funds to meet these goals. For proper management control, it is necessary that Departments have budget authority prior to making a purchase. Note: Budget authorization for the expenditure of funds does not negate a department's responsibility to follow the City's purchasing policies and bid thresholds stated within this manual. C. Employee Responsibility It is the individual responsibility of each employee involved in the procurement process to understand the intent and the meaning of the policies and the procedures stated in this manual. If there is any question or concern relative to either the policies or procedures, or the ability of the employee to respond effectively to the requirements of the procedures, then it is the responsibility of the employee to bring it to the attention of the Purchasing Agent immediately. Employees failing to follow the purchasing policies may be subject to discipline. SECTION IL STANDARD PROCUREMENT PROCEDURES A. Minimum Solicitation Requirements The method of procurement for City departments shall be in accordance with the Purchasing Manual and shall consider the nature and circumstances of the specific procurement. The minimum standard methods of procurement are listed below. Exceptions and additional requirements to the below methods are listed in Section III. Departments should also inquire with the Purchasing Division whether the City already has a contract for whatever goods or services are being sought. If City Attorney's Office approval/signature is required in Section B., the City Attorney's Office approval/signature must be obtained prior to being signed by the individual with the authority to make the purchase. Note: Freight, handling, and installation costs are included in all dollar limits stated below. City departments are strictly prohibited from dividing purchases into multiple transactions in order to avoid the bid threshold requirements. Similar purchases across departments may be combined at the Purchasing Division's discretion to obtain better pricing, service, efficiency, or other purposes that are beneficial to the City. All consultants hired to assist with the development of specifications for a purchase shall be excluded from competing in the procurement process for the award of a contract for that particular purchase. B. Limits/Signatures Required NOTE: The thresholds identified below are based on the cost of the initial term of the contract without considering future extensions. NOTE: Public improvement purchases that are less than $25,000 shall follow the methods below in subsections (1) and (2). For public improvement purchases of $25,000 or more please see Section V. 1.) $10,000 or less (Informal Quotation Process): Procurement Procedure: No set procedure. Pricing obtained must be reasonable. Quotes are recommended. Type of Purchase: All purchases unless exception listed in Section III. Signature Required: Department Director or designee City Attorney Signature: Only on contracts for professional or consulting services 2.) $10,001 to $24,999 (Informal Competitive Process): Procurement Procedure: Request for Quote (RFQ) required. Munis: Purchase Order or Contract required; quotes supporting the procurement method must be stored in the Purchase Order or Contracts Module. Type of Purchase: All purchases unless listed as an exclusion in Section III. Signature Required: Department Director City Attorney Signature: Only on contracts for professional or consulting services 3.) $25,000 and higher (Formal Competitive Process): Type of Purchase: Professional and Consulting Services (See Section III.B.) Signatures Required: $25,000 to $60,000 Department Director and City Manager >$60,000 Department Director, City Manager, and City Council City Attorney Signature: All purchases Type of Purchase: All others unless listed as an exclusion in Section III. Signatures Required: $25,000 to $150,000 Department Director and City Manager >$150,000 Department Director, City Manager, and City Council City Attorney Signature: All purchases Munis: Purchase Order or Contract required; proposals or bids supporting the procurement method must be stored in the Purchase Order or Contracts Module. C. Methods Request for Quote (RFQ) The buyer will seek a minimum of three written quotations and an award will be made to the vendor who provides the quote with the best combination of cost and quality for the specified good or service. The written quotes must include the date, name of the company, name of the company representative, a description of the goods and/or service (manufacturer, model #, dimensions, etc.), delivery date, freight, terms, and dollar amount. Requests for quotes are managed by each department unless assistance is requested from the Purchasing or Engineering Division. Request for Bid (RFB) A Request for Bid is a formal method used to solicit competitive sealed bids. All Request for Bids will be conducted by the Purchasing Division, Engineering Division, or Equipment Division. A bid is submitted to the City Clerk's office in a sealed envelope and is not opened until a specified time and date, otherwise known as a public bid opening. Award of the bid is made to the lowest responsible and responsive bidder meeting the standards, specifications, and the General Terms and Conditions contained within the solicitation. Bids not received by the stated due date and time will be rejected. Request for Proposal (RFP) A Request for Proposal is a formal method used to solicit competitive sealed proposals that includes all of the information contained within a bid as well as other criteria for evaluation. All Request for Proposals will be conducted by the Purchasing Division, Engineering Division, or Equipment Division. This form of solicitation is not evaluated on price alone; criteria including, but not limited to, the following may be used in evaluating proposals: the quality of the product or service, company responsibility and history, references, financial stability, technical expertise, warranties and guarantees, price, compliance with the specifications, management/customer service, and General Terms and Conditions. The criteria used and the value placed on the criteria will depend on the goods and/or the services solicited. Proposals are received as outlined in the proposal document; proposals may be allowed by paper or electronic means. Paper proposals are received by the City Clerk's office and electronic submissions are received by electronic bidding software. Proposals received after the due date and time may be rejected. The Purchasing Division, Engineering Division, or the Equipment Division reviews the submitted proposals to make sure that they are complete. The Purchasing Division, Engineering Division, and Equipment Division reserve the right, but are not required, to seek additional information from a proposer or proposers during the review process to ensure their proposal(s) are complete. Only those proposals that are considered complete, otherwise known as responsive, are dispersed to an evaluation committee. The evaluation committee will consist of representatives from the department making the purchase, and other representatives appointed by the Purchasing Division, Engineering Division, or the Equipment Division in cooperation with the department. The committee will receive the complete proposals with instructions from the Purchasing Division, Engineering Division, or the Equipment Division regarding the evaluation process. The evaluation committee shall sign and adhere to the instructions. Once the evaluation committee has reviewed and scored the proposals, the evaluation committee may meet to discuss the proposals and the evaluations. Such discussion may result in final ranking that differs from the original individual scores of evaluators. During this time, items in question will be discussed. The evaluation committee may decide to make an award, elect to request clarification on the proposals, or request a best and final offer from one or more proposers. The evaluation committee may also request an oral presentation to assist with the final decision to award. During this time, all contact with the vendor will be conducted solely through the Purchasing Division, Engineering Division, or the Equipment Division's point of contact, and responses will be presented in writing to the committee. Request for Qualifications (RFOL) A Request for Qualifications is a formal method used to solicit competitive sealed proposals for the procurement of professional or consulting services that awards the purchase to the firm(s) based upon the firm's expertise and past performance. All Request for Qualifications will be conducted by the Purchasing Division, Engineering Division, or Equipment Division. This form of solicitation is evaluated on criteria including, but not limited to: the company responsibility and history, references, financial stability, technical expertise, experience, project approach, and cost. The criteria used and the value placed on the criteria will depend on the professional or consulting services solicited. Qualifications are received as outlined in the proposal document; qualifications may be allowed by paper or electronic means. Paper qualifications are received by the City Clerk's office and electronic submissions are received by electronic bidding software. Qualifications received after the due date and time may be rejected. The Purchasing Division, Engineering Division, or the Equipment Division reviews the submitted qualifications to make sure that they are complete. The Purchasing Division, Engineering Division, and Equipment Division reserve the right, but are not required, to seek additional information from a proposer or proposers during the review process to ensure their qualification(s) are complete. Only those qualifications that are considered complete, otherwise known as responsive, are dispersed to an evaluation committee. The evaluation committee, which will consist of representatives from the department making the purchase, and other representatives appointed by the Purchasing Division, Engineering Division, or the Equipment Division in cooperation with the department, will receive the complete qualifications with instructions from the Purchasing Division, Engineering Division, or the Equipment Division regarding the evaluation process. The evaluation committee shall sign and adhere to the instructions. Once the evaluation committee has reviewed and scored the qualifications, the evaluation committee may meet to discuss the qualifications and the evaluations. During this time, items in question will be discussed. Such discussion may result in final ranking that differs from the original individual scores of evaluators. The evaluation committee may decide to make an award or elect to request clarification on the qualifications. The evaluation committee may also request an oral presentation to assist with the final decision to award. During this time, all contact with the vendor will be conducted solely through the Purchasing Division, Engineering Division, or the Equipment Division's point of contact, and responses will be presented in writing to the committee. A Advertising Public Bids, Request for Proposals, and Request for Qualifications - City of Iowa City Website With the emergence of electronic procurement, the City of Iowa City's public website has become one of the main advertising resources for formal Request for Bid, Request for Proposal, and Request for Qualifications solicitations. The Purchasing Division, Engineering Division, and the Equipment Division must post Request for Proposals, Request for Bids, Request for Qualifications, addendums, and bid results to the City's website. The Purchasing Division, Engineering Division, and the Equipment Division in cooperation with the department will use their discretion in determining other appropriate methods of advertising bid and proposal solicitations. E. Contract Negotiation and Approval Contract negotiations with a proposer or bidder will be a collaborative process between the Purchasing, Engineering, or Equipment divisions, the City Attorney's Office, and the department making the purchase. In order to ensure all of the needs of the City are met, the office (of those mentioned above) with greatest knowledge, experience, and resources pertaining to the good or service being acquired will take the lead on the negotiation; however, all involved City divisions will take a participatory role. The department making the purchase shall be responsible for approving the final contract. The Purchasing, Engineering, or Equipment divisions will be responsible for preparing the contract for final approval and signature. SECTION III. EXCEPTIONS/MODIFICATIONS TO STANDARD PROCUREMENT PROCEDURES Unless noted below, all purchases in this section must follow the City's bidding procedures, with respect to the dollar limits listed in Section II. Standard Procurement Procedures, B. Limits. In addition, the contract entry or purchase order entry procedures listed in Section II apply to the following procurements. A. Public Improvements of $25,000 and Higher Public improvement projects differ significantly from the procedures used to procure goods and/or services, and the procurement for this work must be done in accordance with Iowa Code. Section V of this manual sets forth City policies for public improvement procurements of $25,000 and higher. Whether a project is a public improvement is controlled by Iowa Code Chapter 26, Public Construction Bidding, which currently defines a public improvement as outlined in Appendix I, Public Improvement. If the procurement meets the definition of a public improvement project, or there is a question whether the project qualifies as a public improvement project under Iowa law, acquiring departments should consult with the City Attorney's Office for direction. All Public Improvement projects and competitive bid processes of $25,000 and higher will be managed by the City's Engineering Division (see Section V. of the Purchasing Manual for policies and procedures for Public Improvements). B. Professional and Consulting Services Professional and Consulting Services include services provided by consultants or individuals or organizations possessing a high degree of education and training, such as lawyers, physicians, architects, planners, and engineers. The requested services may include information, professional advice, training, or direct assistance. Contractors working within other skilled or technical trades, such as construction, mechanical plumbing, electrical services, etc. are considered as providing Operational Services, not Professional and Consulting Services. It is the responsibility of the requesting department to confirm that the contractor possesses the skills required to perform the job. Cost remains an important consideration in securing Professional and Consulting Services. The requestor from the department must confirm that the service provider does not appear on the Prohibited Interest List, maintained by the Finance Department. Written contracts should contain the Prohibited Interest in Public Contracts Policy language, found in Section IV B. C. Lease of Real Property or Rental of Equipment from Another Party for More than One Year City Council signature approval is required for any lease of real property from another party for a term of 3 years or more (including all optional renewals). City Manager signature approval and Department Director approval is required for the leasing or rental of equipment for more than one year. All written lease contracts for real property or rental of equipment from another party must be reviewed and approved by the City Attorney's Office. For any lease longer than one year for either real property or equipment rental, a copy of the signed lease should be forwarded to the Accounting division. The City allows the leasing or rental of equipment or building(s) if all of the following requirements are met: 1. Funds are budgeted and available to the requesting department; and 2. The period of time involved does not extend beyond fund availability; and 3. It is not the intent of the initial rental to transition into a lease/purchase option except for eligible purposes as listed in the City Debt Management Policy. D. Information Technology Purchase Procedures ITS approval is required for any Information Technology procurement. 1.) Hardware and Software Purchases and Related Maintenance Agreements The department initiating the procurement of information technology goods and services, shall submit a "Hardware/Software Recommendation" form to the Information Technology Services (ITS) Help Desk for evaluation and assistance and approval. In the case of information technology goods and services which are not linked to the City's computer network, and which are not supported by ITS, the initiating Department may inform ITS of its intended procurement via e-mail or memo, rather than by submitting a Hardware/Software Recommendation form. (ITS may request additional information from the initiating department if the intended procurement raises concerns as to connectivity, security, alternative procurement that may be less expensive or more efficient, or other issues of concern to ITS). ITS shall provide assistance in the development of specifications for hardware and software needs and related maintenance agreements and development of a Scope of Work ("SOW") to ensure compatibility with existing city hardware and software. 2.) IT Consulting Services ITS will assist the initiating department in the development of the SOW. A preliminary SOW will be submitted to ITS for approval, and ITS will either recommend the SOW be accomplished with in-house resources, or the procurement of an outside source. If outsource procurement is required, ITS will assist the initiating department in defining outsource requirements. 4.) Departments will submit computer-related requests through ITS for review and approval prior to P -Card purchases. ITS will submit requests to the Purchasing Division to issue of any necessary purchase orders or requisitions. ITS will review the computer-related requests and either return it to the initiating department with comments and/or recommendations or forward the completed request to the Purchasing Division. 5.) Unless otherwise specified by ITS, all IT equipment will be delivered to ITS, and ITS will be responsible to track and verify satisfactory receipt of equipment. If the delivery is made directly to the initiating department, the department will immediately alert ITS of the equipment's arrival for inventory tracking purposes. E. Department of Transportation Rock Salt Contract The City of Iowa City piggybacks onto the Iowa Department of Transportation's Request for Bid on a yearly basis. Although expenditures for this contract can be over $150,000, City Council approval is not required due to state procurement requirements. F. Insurance Coverage Insurance premium payments are approved through the City Council as part of the budget process. Contracts and other documents relating to procurement and management of insurance coverage over $150,000 need not be approved by the City Council. The City Council has delegated the City Manager to initiate and execute these contracts and related documents. The City Attorney will review any contract if requested by Finance or the City Manager. G. Travel and Training The City's Travel and Training policy is located on the intranet under Employee Information > Other City Policies/Guidelines. H. Bulk/Pooled Purchasing Where departments purchase similar goods and services and it is in the best interest of the City, these purchases should be pooled together for bidding purposes. A list of commonly used and shared goods and services shall be maintained by the Purchasing Division in the Finance Department. I. Emergency Purchases An emergency purchase may be exempt from the competitive bidding process when the purchase is made due to an unexpected and urgent need, where health and safety or the conservation of public resources is at risk. The use of this process is greatly discouraged and should be utilized only when absolutely necessary. Emergency purchases that are considered public improvements under Iowa Code Section 26.2 (3), must follow the emergency bidding requirements set by state code (see Section V. of the Purchasing Manual for policies and procedures for Public Improvements). Before proceeding with an emergency purchase, the department requiring the commodity or service must receive written approval from the City Manager or designee. Within two (2) weeks following the emergency purchase, the department making the purchase must complete an "Emergency Purchase Form" available from the Purchasing Division and return it to the Purchasing Division. The form will be filed with the purchase in the City's financial ERP system. J. Sole Source In general, all purchases shall be made on a competitive basis. However, there may be a reason to request a Sole Source purchase. This means that there must be only one product or service that meets the department's needs, and there is only one vendor through whom the product or service can be procured. In this situation, the individual requesting the purchase must complete a Sole Source Procurement Request form and receive the required signatures; including, but not limited to, the Purchasing Agent, City Manager or designee and the City Attorney's Office. Sole Source is not appropriate for use when the department has picked a preferred vendor or product among other available vendors or products. A sole source procurement, once approved, is effective for a period of five (5) years. Examples of a Sole Source procurement include: 1.) Items which must be compatible with existing equipment or systems and are available only from the original manufacturer or an exclusive distributor. 2.) Services that can be provided by only one source due to nature of the equipment requiring service (proprietary equipment features). 3.) Items that have specific features or are related to a specific geographic location that are available from only one source, by virtue of experience, expertise, proximity, or ownership of intellectual property rights. 4.) Items or services of information technology for which there are compatibility considerations, or the purchase would prevent voidance or termination of a warranty, or the purchase would prevent default under contract or other obligations. 5.) The Federal government or other government provider of funds for the items or services being purchased has imposed clear and specific restrictions on the use of the funds in a way that restricts the procurement to only one vendor. 6.) Professional and Consulting Services when it is in the City's best interest to use the services of a particular provider due to expertise, experience or knowledge of City operations if the City Manager has authorized use of this sole source criteria prior to submission of the Sole Source procurement Request form. 10 K. Cooperative Purchasing "Piggybacking", a form of cooperative purchasing, allows government and government -related agencies to utilize existing purchasing contracts or agreements from other government entities. This type of purchasing is a competitive form of procurement that combines the requirements of two or more agencies in order to reduce administrative expenses and obtain better pricing based on volume discounts. City Attorney approval of cooperative purchase contracts is not required, but review by the City Attorney may be requested. In order for a government agency to participate in this form of cooperative purchasing, the following criteria must exist: 1.) The purchasing contract must be current. 2.) The purchasing contract must be the result of a formal competitive process. 3.) The government agency administering the contract must be willing to allow participation on behalf of other government agencies (note: participation may be limited to specific government agencies based on location, etc.). 4.) The government agency taking advantage of the existing contract must purchase the same products identified in the contract. 5.) If the cooperative purchasing contract is a regional contract, the state or the government agency requesting participation must have signed a contract to participate. L. Non -Profit Job Training Contracts with non-profit entities for goods or services provided by those receiving job training from the non-profit entity shall be excluded from this manual's competitive procurement requirements. All signature authority requirements remain in place with the exception that Council approval is not required as the Council has given the City Manager authority to approve all such contracts without regard to price. M. Contracts with Other Governmental Entities Contracts with other governmental entities for goods or services shall be excluded from this manual's competitive procurement requirements. All signature authority requirements remain in place with the exception that Council approval is not required as the Council has given the City Manager authority to approve all such contracts without regard to price. 11 SECTION IV. LEGAL/CONTRACTUAL REQUIREMENTS A. Gratuities/ Gift Law As stated in Iowa Code section 68B.22, as amended, the "Gift Law" prohibits officials, employees, candidates, or their immediate family members from receiving or soliciting gifts from a person who is or is seeking to be a party to a sale, purchase, lease, or contract with the City. Gifts from such restricted donors may be accepted only if they are worth $3.00 or less. Additional exceptions can be found in Iowa Code Section 68B.22(4), as amended, but should not be relied on without the approval of the City Attorney's Office. B. Prohibited Interest in Public Contracts Policy Pursuant to Iowa Code section 362.5 says that City employees shall not have a direct or indirect interest in any contract, job, or sale that is entered into, or services that are performed, for the City. Contracts made in violation of this prohibition are void unless certain exceptions apply. See "Prohibited Contracts" Administrative (City Manager) Regulation Policy for additional detail. Before proceeding with a purchase, the department procuring the goods or services must confirm the vendor is not on the Prohibited Vendor list, that is available on the City's Intranet. Some exceptions apply, but no procurement may be made from a Prohibited Vendor without the written approval of the City Attorney's Office. Procurements made in violation of this policy may result in disciplinary action and/or criminal charges under Iowa Code Section 362.5. C. Wage Theft Policy All City contractors with contracts of $25,000 or more must abide by the requirements of the City's Wage Theft Policy. Pursuant to the Wage Theft Policy, the City will not enter into certain contracts with, or provide discretionary economic development assistance to, any person or entity (including an owner of more than 25% of the entity) who has admitted guilt or liability or been adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation of the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act or any comparable state statute or local ordinance, which governs the payment of wages, for a period of five (5) years from the date of the last conviction, entry of plea, administrative finding or admission of guilt. The Wage Theft Policy does not apply to emergency purchases of goods and services, emergency construction or public improvement work, sole source contracts excepted by the City's purchasing manual, cooperative/piggyback purchasing or contracts with other governmental entities. For all other applicable contracts, the City's Wage Theft Policy must be included in the City's solicitation/bid package. D. Local Preference Preference may be given to local businesses or vendors that have a business located within Johnson County. This includes branch operations and franchises. Cost and other considerations being equal, local businesses shall be given first consideration for the purchase of goods or services. A local business or vendor that submits a quote or bid by the established deadline falling within 5% of the lowest bid will have the opportunity to match the lowest price submitted, but only if that price was submitted by a non -local vendor. In this instance, the City representative responsible for issuing the solicitation will contact the local vendor/business that has fallen within the 5% threshold to request a price match. The business/vendor will have a twenty-four (24) hour period to submit a written price match to the City representative. If more than one local business/vendor meets the criteria above, each local vendor will be given forty-eight hours to submit a lower bid in writing. All revised bids must be at or lower than the original lowest bid. At the close of the forty-eight (48) hour period, the 12 contract will be awarded to the lowest bidder, local or otherwise. In the event of a tie, the local vendor will be awarded the contract. If two or more local vendors tie, the award will be determined by coin flip. The local preference policy does not apply to Public Improvement projects, goods and services acquired through the Request for Proposal or Request for Qualifications process, or purchases utilizing Federal Transit funds or Federal funding. E. Minimum Wage Preference Preference may be given to businesses or vendors that have a certified minimum wage at or above the Johnson County recommended minimum wage. This includes branch operations and franchises. Cost and other considerations being equal, businesses that have a certified minimum wage at or above the Johnson County recommended minimum wage shall be given first consideration for the purchase of goods or services. A business or vendor that has a certified minimum wage at or above the Johnson County recommended minimum wage that submits a quote or bid by the established deadline falling within 5% of the lowest bid will have the opportunity to match the lowest price submitted, but only if that price was submitted by a vendor that has not certified that they pay a minimum wage at or above the Johnson County recommended minimum wage. In this instance, the City representative responsible for issuing the solicitation will contact the vendor/business that has fallen within the 5% threshold to request a price match. The business/vendor will have a twenty-four hour period to submit a written price match to the City representative. If more than one business/vendor meets the criteria above, each vendor will be given forty-eight hours to submit a lower bid in writing. All revised bids must be at or lower than the original lowest bid. At the close of the forty-eight hour period, the contract will be awarded to the lowest bidder, regardless of minimum wage. In the event of a tie, the vendor with the highest minimum wage will be awarded the contract. If two or more vendors tie, the award will be determined by coin flip. The local preference policy does not apply to Public Improvement projects, goods and services acquired through the Request for Proposal or Qualifications process, or purchases utilizing Federal Transit funds or Federal funding. F. State and Federal Funding The purchasing policies stated in this manual are not preempted by the requirements for state and federal grants unless the city requirement is inconsistent with the state or federal grant requirements, in which case departments shall follow the strictest of any applicable policy. Departments shall adhere to the City's purchasing policies and all state and federal requirements, including completion of all required documents. In addition, all applicable conditions of state or federal funding must be included in bid and proposal solicitations. Transit procurements conducted with funds administered by the Federal Transit Administration directly or through the Iowa Department of Transportation must follow all federal requirements. As these requirements differ from those outlined in the City of Iowa City Purchasing Manual, FTA regulations shall take precedence. The City of Iowa City Transportation Services Director shall provide documentation of the processes when federally funded procurements occur. See APPENDIX II for additional requirements for purchasing under Federal awards. 13 G. Donated Funds Departments are required to follow the bidding policies stated in this manual unless all of the following is true: 1.) Private funds are offered to the City for procurement of good or services. 2.) The City does not contribute any funds to the procurement. H. Record Retention The Purchasing Division and Public Works Department, who are responsible for the procurement of goods, services, and equipment, are required to retain all written contracts, including bid and request for proposal documents, the awarded vendor's bid or proposal, and the purchase order for a period of ten (10) years after expiration of the contract. Departments procuring goods, services, and equipment through the informal quotation process, where assistance is not provided by Purchasing, are responsible for retaining documentation (including all quotes received) for a period of ten (10) years after expiration of the contract. I. Public Record Procurement information shall be recognized as public record to the extent provided by law and as set by Council Resolution 07-260, passed August 21St, 2007. However, the identity of any vendor submitting a quote, bid, proposal, or qualifications and documents submitted may only be released to City staff prior to award of the contract, without approval of the City Attorney's Office. All details of contract quotes, bids, proposals, and qualifications shall be kept confidential until final award of the contract. Details of contracts requiring Council approval may be disclosed as part of the Council approval process. In that event, disclosures should be limited as much as possible in order to best preserve the integrity of the procurement process. Questions regarding the potential confidentiality of documents should be directed to the City Attorney's Office. J. Surplus Equipment Transfer/Disposal If a department no longer has a use for surplus vehicles and equipment, including, but not limited to, office furniture, heavy equipment, and computer equipment, the department should contact the Purchasing Division to assist with transfer or disposal. The Purchasing Division may contact other City divisions to determine whether they may have use for the surplus equipment. If no City department has use for the item, the Purchasing Division may dispose of it through public bidding (online), sealed bidding, the sale or transfer to other governmental agencies, or through donation or sale to a non-profit organization. The department requesting the transfer/disposal of the equipment shall provide the Purchasing Division with a description of the item (color, measurements), make, model, serial number, condition of the item, and any other pertinent information required to assist with transfer/disposal. K. Shipping Terms When purchasing goods from a vendor it is important that the department understands and designates the appropriate shipping terms. The shipping terms not only determine who has the legal right to specify the carrier and the routing of any goods purchased, but they also define the point at which the City takes title of the goods, otherwise known as "free on board" (F.O.B.), and thus who takes the risk of damage during transit. The most common freight terms are F.O.B. destination and F.O.B. point of origin. F.O.B. destination (City of Iowa City Address) — title/ownership of the goods passes to the department when the goods have been delivered to the City. The cost of shipping and the risk of loss are borne by the vendor. The vendor is responsible for the goods until they are delivered. 14 F.O.B. point of origin (vendor's facility) — title/ownership of the goods passes to the department at the vendor's facility. The department or division owns the goods in transit and files any claims. The department or division is responsible for the goods at the origin of shipment. Note: F.O.B. destination (City of Iowa City Address) is the City's preferred method of shipping since the seller maintains ownership of the goods until they are delivered. The cost of shipping (activities performed in preparation of the outgoing shipment of goods, which may include packaging, weighing, marking, loading, etc.) and the risk of loss are borne by the seller. L. Payment Terms Before a department signs a contract for the procurement of goods or services the payment terms must be carefully reviewed. Unless otherwise specified, the City's standard payment terms designate that payment to the vendor may be made only after inspection, approval, and final acceptance of the goods or services. Procurements for construction, capital equipment, professional services and other labor intensive and/or capital -intensive projects may require interim payments. Interim payments or milestone payments must be clearly defined in written form in order to eliminate confusion between the City and the vendor. Whether the City makes interim payments or makes a single payment, it is important that the department not only receives the goods or services, but performs a complete inspection and confirms that the products received or the services performed are acceptable before payment to the vendor is made. Payment in advance is strongly discouraged. The City's ability to remedy a problem is severely hampered if we have already paid the vendor for the good or services. Advance payment or prepayment for products or services is strongly discouraged (exclusions: subscriptions, memberships). 15 SECTION V. PUBLIC IMPROVEMENTS I. General Policies A. The purpose of this section is to procure the services of contractors by competition in a manner that will lead to the best results at the lowest price and to forestall fraud, favoritism and corruption in the making of contracts. B. These policies and procedures shall be maintained to be in conformance with the laws of the State of Iowa and shall be administered by the City Engineer, with assistance from the Public Works Director, City Attorney, Finance Director, and City Manager. In the event of a conflict between these policies and state law, state law shall apply. C. The public improvements procurement process is not required for soliciting and contracting for architectural, landscape architectural, engineering design, or other professional services for a public improvement project. Procurements such as this must be conducted in accordance with the provisions in Section II of the Purchasing Policy Manual. D. Minimum thresholds for competitive bidding will be established in Iowa Code section 26.3 and adjusted pursuant to Iowa Code section 314.113. Public improvements that do not require competitive bidding under Iowa Code but are greater than $25,000 will be subject to the competitive quotation process as defined by Iowa Administrative Code chapter 180 and this policy. Public improvements that are estimated to cost less than $25,000 will be subject to the bidding procedures set in Section II.B of the Purchasing Policy Manual. Under Iowa Code Section 26.5, departments are prohibited from dividing the project into separate parts, regardless of intent. E. Thresholds for bidding are determined by the engineer's cost estimate for the total cost of the improvement. The estimated total cost to construct a public improvement, includes the cost of labor, materials, equipment, and supplies, but excludes the cost of architectural or engineering design services and inspection. F. The City will establish a uniform and consistent process for receiving bids and quotations for public improvement projects. G. The City will establish a uniform bid opening process to ensure uniformity and consistency with the way in which bids and quotations for public improvement projects are opened and reviewed. The department representative responsible for the bid opening shall follow this procedure for opening and announcing all bids and quotations pertaining to public improvement projects submitted by contractors and received by the designee. H. Any public improvement contract that is subject to the terms and conditions of a state or federal grant shall adhere to any additional requirements of the grant, and the necessary controls or procedures needed to properly monitor or report compliance with those requirements will be instituted. Any public improvement contract shall also adhere to any other limitations or requirements as determined by City Council. I. The City reserves the right to waive any minor informalities or irregularities contained in any bid or quote. II. Competitive Bid Process A. Solicitation of Bids 1. Detailed and written plans and specifications and a detailed cost estimate must be prepared for the public improvement project by a licensed engineer, licensed landscape architect and/or a licensed architect. The City Engineer or designee will approve the written plans and specifications and detailed cost estimate and will prepare the form of contract. The form of contract must be reviewed and approved by the City Attorney's office. 2. The City Engineer or designee shall prepare a memorandum summarizing the project plans and specifications, the scope of work, the project background, a 16 detailed cost estimate, and the funding sources. If the scope of the project has changed significantly from the scope that was approved in the Five -Year Capital Improvement Program, then any differences in scope must be explained in the memorandum as well. This memorandum must be reviewed by the City Attorney and the Finance Director and approved by the City Manager or their designees. The written plans and specifications and the detailed cost estimate shall then be placed on file with the City Clerk's office. 3. The City Council shall hold a public hearing and approve the proposed plans, specifications, form of contract, and estimated total cost. A notice of public hearing on the plans, specifications, form of contract, description of the project and its location, and the estimated total cost must be published by the City Clerk in the Iowa City Press Citizen and posted by the City Engineer or designee on the City's website more than 4 days but not more than 20 days before the public hearing. 4. Following the public hearing and Council approval of the plans, specifications, form of contract, and estimated total cost, the City Clerk shall post a notice to bidders in accordance with the resolution approving the plans and specifications. Those posting requirements may be satisfied by the City Clerk posting the notice on the Construction Update Network, operated by the Master Builders of Iowa, and the Iowa League of Cities website at least once, not less than 13 and not more than 45 days before the bid filing deadline. Additionally, the City Engineer or designee shall post the notice on the City's website within these same time limitations. This notice must state all information required by Iowa Code Section 26.7, including: a. Time, place and method for filing sealed proposals; b. Time, place and method sealed proposals will be opened and considered on behalf of the City, which shall be the same time and place stated in the Council approved plans and specifications; c. The general nature of the public improvements on which bids are being requested; d. In general terms, when the work must be commenced and when it must be completed; e. Bid security and bid bond requirements. B. Receiving Bids Process 1. Contractors shall file all bids with the City Clerk's Office before the time specified in the project specifications. 2. All bids shall be written on the appropriate City form. a. Competitive bids can only be filed in a sealed envelope and must be delivered to the City Clerk's office by personal delivery or other mail delivery service. Each competitive bid must be accompanied by a Resident Bidder Form. b. A bid bond must also be submitted in a separate, sealed envelope. If no such bond is timely filed, the bid will not be considered, and the Clerk or designee will return the bid unopened. 3. The City Clerk or designee who receives the bid shall note the time and date the bid is received. The City Clerk or designee shall make this notation on the outside of the sealed envelope. In addition to noting the time and date, as stated on the official City Clerk clock, the City Clerk or designee shall also sign his or her name or initials on the envelope upon receiving the bid. 4. No bids filed after the designated time will be received or considered. The City Clerk or designee shall return all late bids to the contractor unopened. C. Bid Opening and Consideration Process 1. The Bid Opening Process will occur at the place, date, and time stated in the project specifications. 2. The City Engineer or designee shall introduce him or herself and announce that it is now o'clock, the time specified for the receipt of bids and no more bids 17 shall be received on the project. (The closing of receipt of bids shall be exactly at the time specified). Any bids submitted after the time specified will not be accepted and will be returned to the bidder unopened. 3. The City Engineer or designee will introduce other representatives, consultants, local, State and/or Federal representatives in attendance. 4. The City Engineer or designee will open the bids individually. The bid bond envelope will be opened first followed by the competitive bid envelope. The City Engineer or designee will announce the name of the bidder and whether: a. A bid bond or other approved bid security has been received; b. A Resident Bidder Form has been received; c. The bid has been signed, is on the form specified and has acknowledged the addenda, if any exist; d. All documents and/or attachments required to be submitted as part of the proposal are enclosed; e. The Bid Proposal Form(s) has/have been completely filled out and the total amount of the bid can be readily determined. 5. If any of the above items are missing or incomplete the bids will not be read or accepted but will be placed back in the envelope and returned to the Bidder. If the above items are enclosed and complete, then the City Clerk or designee will read the total base bid and the bid for any alternates listed in the proposal. 6. After all bids have been read, the City Clerk or designee shall state verbally that "the bid opening is over, and the bids will be tabulated and posted on the City's website." 7. The City Engineer or designee will review the bids to determine the lowest responsive, responsible bidder. A bid tabulation of the responsive bids received shall then be posted on the City's website. Bids considered not responsive will not be posted. 8. Once the lowest responsive, responsible bidder has been determined by the City Engineer or designee, the results must be reviewed by the City Attorney and the Finance Director and approved by the City Manager or designee. Following City Manager approval, the results shall be submitted to the City Council for consideration at the next regularly scheduled meeting occurring after the bid filing deadline, or for consideration at a special meeting called by the City Council for the purpose of considering the recommendation. a. The City Engineer or designee shall recommend City Council award the contract to the lowest responsive, responsible bidder; b. If all bids received are considered by the City Engineer or designee to be non- responsive or are not acceptable, the City Engineer or designee will recommend that Council reject all bids and rebid the project; c. If the City only received one bid and it is 25% or higher than the Engineer's Estimate, the recommendation to Council will be to reject it unless the City Engineer determines that accepting the bid would be the most prudent course of action, and it is approved by the City Manager. 9. The City shall return the bidder's bond to all unsuccessful bidders as soon as the City Council has awarded the contract or within 30 days from the bid opening, whichever is sooner. III. Competitive Quotation Process A. Solicitation of Quotations 1. The City Engineer or designee shall solicit competitive quotations for a public improvement when the estimated total cost of the public improvement equals or exceeds $25,000 but is less than the competitive bid threshold established in Iowa Code section 26.3. 2. The City Engineer or designee shall make a good -faith effort to obtain quotations 18 for the work from at least two contractors regularly engaged in such work prior to letting a contract. Quotations shall be obtained by means of either an oral or a written solicitation directed to not less than two contractors. Solicitations shall also be posted on the City's website. Good faith effort shall include advising all contractors who have filed with the governmental entity a request for notice of projects. 3. Each solicitation shall include a description of the work to be performed, including the plans and specifications prepared by a licensed architect, landscape architect, or engineer if such plans are required for the project, and an opportunity to inspect the work site. Each contractor requesting to inspect the work site shall be provided an equal and adequate opportunity to do so. 4. Additional information deemed pertinent, or requested by a contractor, may be provided by the City Engineer or designee if the same information is provided to all contractors from which quotations are solicited. If the information is provided in written form to a contractor, it shall be provided in the same form to all contractors from which quotations are solicited. 5. In its solicitation, the City Engineer or designee shall: a. Specify the required form and content of quotations. A competitive quotation filed by a contractor shall be in writing and shall include the total price for labor, equipment, materials and supplies required to perform the work. A contractor shall not be required to include in its quotation or in individual quotation items a breakdown of costs for labor, materials, equipment and supplies. Competitive quotations filed by contractors shall include all other information, documentation, or commitments as specified in the solicitation; b. Require that quotations be filed with the City Clerk or designee in the City Clerk's office by a particular time; c. Establish the acceptable method(s) for delivery of quotations in accordance with Iowa law. d. Require that all quotations be sealed. B. Receiving Competitive Ouotations 1. Contractors shall file all quotations in the City Clerk's Office before the time specified. 2. The City Clerk or designee who receives the quotation shall note the time and date the quotation is received and the name of the person receiving the quote on the sealed envelope. 3. No quotations filed after the designated time will be received or considered. The City Clerk or designee shall return all late quotations to the contractor unopened. C. Opening and Considering Competitive Quotations 1. If a quoting contractor does not file a quotation in the form required, or does not provide all information or documentation or make all commitments required, or does not sign the quotation if required, the quotation shall be determined to be nonresponsive and shall be rejected. 2. The City Manager or designee shall award the contract for the work to the contractor submitting the lowest responsive, responsible quotation, subject to Iowa Code section 26.9, or may reject all of the quotations. A contract shall be considered awarded when the City Manager or designee executes a contract for the work with the selected contractor. 3. The City Engineer shall draft a memo to the City Council summarizing the competitive quotation, which shall be reported in the meeting minutes of the next regular Council meeting. 19 IV. Contract Administration 1. The City Clerk or designee will advertise and bid all contracts qualifying for formal bidding procedures. The City Clerk or designee will oversee receiving, opening, and announcing all formal bids. 2. Competitively bid contracts will be executed by the Mayor and attested to by the City Clerk unless the council resolution approving the contract provides otherwise. Competitively quoted contracts will be executed by the City Manager or his designee. 3. The City Manager or designee will administer all contracts on the authority of the City Council. 4. All change orders, change in contract estimates, or any other adjustments of the contract price will be subject to these requirements. a. Change orders or other changes in contract price must be in writing and be completed in advance of the work. They must include a description of the work, the agreed upon cost, and be signed by the contractor and the City Engineer or designee. b. Contract changes and changes in estimated quantities that are greater than 25% must be approved with the following limits and authority: 1. Less than $25,000 - City Engineer or designee; 2. $25,000 and $150,000 — City Manager or designee; 3. $150,000 or more — City Council; c. All change orders greater than $10,000 must be reviewed by the Finance Director. d. If a change order on a contract entered into by competitive quotation causes the entire contract price to exceed $150,000, the contract and amendments shall be submitted for City Council approval. e. If it is determined by the City Engineer or designee that the nature of the contract change is urgent and delay could jeopardize the progress of the project, the City Engineer or designee may authorize the contractor to initiate the work prior to obtaining the required approval set forth above. The required approval must be obtained, however, by the City Manager no more than 10 days from the City Engineer or designee's authorization and by the City Council within20 days from authorization or at the next scheduled City Council meeting. The change order should include the reasons for the urgency. 5. Contracts for public improvements cannot be amended by change order or any other adjustment for work that is unrelated to the project as described in the approved plans and specifications. 6. The scope of public improvement projects shall not be adjusted for the purpose of circumventing the authorization limits of this policy, Council resolution, and state or federal law. Contract amendments and change orders shall not be used as a means of circumventing the authorization limits of this policy, Council resolution, and state or federal law. 7. For all public improvement contracts $25,000 or higher, the contract must be accompanied by a bond, with surety, conditioned for the faithful performance of the contract, and for fulfillment of other requirements as provided by Iowa law in accordance with Iowa Code section 573.2. The amount of the performance and payment bond must be at least 100% of the contract price. 8. Where appropriate, retainage shall be withheld on contracts for public improvements as provided for by State law or on other contracts as deemed appropriate or necessary. Retainage on a contract shall be 5% of the cost of the public improvement, unless otherwise limited by state or federal grant programs. An application by a contractor for early release of a retainage requires City Council consideration and approval. 20 9. The final acceptance (certificate of completion), the final contractor payment, and the release of retainage authorization (unless early release applied for) of a formally bid contract shall be approved by City Council action at the same meeting. 10. All contracts awarded, change orders, or changes in contract price, must be entered into the City's financial computer system Munis along with supporting documentation. Contracts that include estimated quantities will be entered into Munis at the contract price plus 10% as a contingency. All contract payment requests must reference the Munis contract number. 11. Sales tax exemption certificates will be issued by the Engineering division upon request of the contractor. V. Emergency Repairs 1. In accordance with Iowa Code Section 384.103, when emergency repair of a public improvement is necessary and the delay of advertising and a public letting might cause serious loss or injury to the City, the City Manager shall make a finding of the necessity to institute emergency proceedings under Iowa Code Section 384.103, and shall procure a certificate from a licensed professional engineer or registered architect certifying that emergency repairs are necessary. 2. Where the City Manager has so certified, the City may accept, enter into, and make payment under a contract for emergency repairs without holding a public hearing and advertising for bids, and the provisions of Chapter 26 do not apply. 3. The work must be awarded to the lowest responsible, responsive bidder. 4. The emergency repair finding and the approved construction contract shall be entered into the City Council minutes at its next regularly scheduled or special called meeting. 5. If the emergency repair would otherwise be a public improvement requiring competitive bidding under Chapter 26: a. The City Engineer or designee must solicit at least two written quotations from qualified contractors or suppliers. b. The contractor must provide a performance and payment bond for a public improvement of $25,000 or more. 6. If the emergency repair would otherwise be a public improvement requiring Competitive Quotations: a. The Emergency Purchase provisions of Section III.I. of the Purchasing Policy Manual shall be followed. 21 APPENDIX I. PURCHASING TERMS AND DEFINITIONS Bid Bond: A monetary commitment (cashier's check or certified check) made by a third parry to accept liability and to guarantee that the bidder will not withdraw the bid. The certified check or cashier's check will not exceed 10% of the bid price and will accompany the bid upon submittal. If an award is made and the successful bidder fails to enter into a contract with the City, the City is entitled to the entire amount of the bid bond. Bid Opening: A specified time and date where formal bids are opened and the enclosed information is publicly read. The bidder's name, price, items offered, delivery, etc. are read during the opening. Capital Asset: Assets that have a life expectancy beyond one year and a cost of $5,000.00 per item or more (examples: land, land improvement, building, equipment). Capital Outlay/Expenditure: Expenditures for acquiring land, building, equipment or other property, or for their preservation, development or permanent improvement (i.e. the acquisition or renovation of capital assets). The threshold for capital outlay is $5,000 per item or more. Purchases of goods under $5,000 per item are considered supplies. Com: Shall mean the City of Iowa City, Iowa. Competition: The process by which two or more vendors attempt to secure the business of a third party through the offer of the most favorable price, quality, delivery terms or service. Contract: A legally binding agreement, oral or in writing, enforceable by law. Emergency Purchase: A purchase made due to an unexpected and urgent request, where health and safety or the conservation of public resources is at risk. Evaluation Committee: A group or team of advisors selected to assist in recommending a vendor for a contract award. Goods: Anything purchased other than services or real property. Online Bidding: A procurement process in which an invitation for bid or request for proposal is posted electronically over the internet in a real-time, competitive bidding event. Operating Services: The furnishing of labor and time by a contractor or a vendor, which may involve to a lesser degree, the delivery or supply of products. Examples of contractors providing operational services are those working within trades, such as plumbing, electrical services, and HVAC. Professional and Consulting Services are not Operational Services. Performance Bond: A bond, issued upon award of the contract, that secures the performance of all terms, conditions, and agreements stated within the contract by the vendor. A performance bond protects the buyer from the vendor's inability to complete the contract. Pre -Solicitation (Pre -Submission Conference): A meeting with prospective bidders or proposers to clarify the requirements of a contract to be put out for bid or proposal. Procurement: Purchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction; includes all functions that pertain to the acquisition, description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration; combining the functions of purchasing, inventory control, traffic and transportation, receiving, inspection, storekeeping, and salvage and disposal operations. 22 Professional and Consulting Services: Services provided by consultants or individuals or organizations possessing a high degree of education and training, such as lawyers, physicians, architects, planners, and engineers. The requested services may include information, professional advice, training, or direct assistance. Contractors working within other skilled or technical trades, such as construction, mechanical, plumbing, electrical services, etc. are considered as providing Operational Services, not Professional and Consulting Services. Purchasing Policy: Governing principle which establishes the general parameters for the organization to follow in carrying out its responsibility for procuring equipment, supplies and services, etc. in the most efficient and economical method possible. Professional or Technical Services: Services provided by individuals or organizations possessing a high degree of professional skill, such as lawyers, physicians, architects, engineers, and other consultants. Contractors working within trades, such as plumbing, electrical services, and HVAC are considered as providing Operational Services, not Professional and Consulting services. Public Improvement: Iowa Code Chapter 26 provides the following definition: 3. a. "Public improvement" means a building or construction work that is constructed under the control of a governmental entity and for which either of the following applies:(1) Has been paid for in whole or in part with funds of the governmental entity. (2) A commitment has been made prior to construction by the governmental entity to pay for the building or construction work in whole or in part with funds of the governmental entity b. "Public improvement" includes a building or improvement constructed or operated jointly with any other public or private agency, but excludes all of the following: (1) Urban renewal demolition and low -rent housing projects.(2) Industrial aid projects authorized under chapter 419.(3) Emergency work or repair or maintenance work performed by employees of a governmental entity. (4) A highway, bridge, or culvert project. (5) Construction or repair or maintenance work performed for a city utility under chapter 388 when such work is performed by its employees or when such work relates to existing utility infrastructure. For purposes of this subparagraph, "utility infrastructure" includes facilities used for the storage, collection, disposal, treatment, generation, transmission, or distribution of water, sewer, waste, electricity, gas, or telecommunications service. (6) construction or repair or maintenance work performed for a rural water district under chapter 357A by its employees. 4. "Repair or maintenance work" means the preservation of a building, storm sewer, sanitary sewer, or other public facility or structure so that it remains in sound or proper condition, including minor replacements and additions as necessary to restore the public facility or structure to its original condition with the same design. 5. "Under the control of a governmental entity" includes determining the construction work to be performed or establishing the specifications for a building or construction work to be occupied by the governmental entity. Real Property: Land and its permanently affixed buildings or structures. Responsible Bidder: A vendor who has the capability in all respects to fully perform the contract requirements, and the integrity and reliability which will assure good faith performance. Responsive Bidder: A vendor who submits a bid or proposal that fully conforms to all requirements contained within the solicitation. 23 Request for Qualifications (RFQL): A formal procurement method sometimes used in the formal process of procuring a product or service. The Request for Qualifications is typically used as a screening step to establish a pool of vendors (businesses or individuals to provide a product or service) that then undergo a qualifications evaluation. Request for Quote (RFO): A semi -formal procurement method used to procure a specific requirement (goods/services). A Request for Quote requires a minimum of three written quotations be sought, and an award will be made to the vendor who provides the quote with the best combination of cost and quality for the specified good or service. Request for Bid (RFB): A formal procurement method used to procure a specific requirement (goods/services). A Request for Bid requires the submission of sealed bids and a public bid opening. Award is made to the lowest responsible and responsive bidder meeting the standards, specifications, and terms and conditions contained within the solicitation. Request for Proposal (RFP): A formal procurement method similar to a Request for Bid, except that factors other than price (such as quality, timeliness, experience, ability to meet specifications) are also considered in making the award. Risk Management: The identification, measurement and treatment of property, liability, and personal loss exposures; includes analysis of potential risk situations and insurance needs, as well as the amount of financial coverage needed to protect the government. Sealed: The submission of responses to a solicitation in a form that prevents disclosure of the contents prior to a date and time established by the department or division for opening the responses. Specification: A detailed description of the physical, functional, or performance characteristics of a good or service that must be met before a contract is awarded. Sole Source: A purchase to fulfill a need for a commodity or service where there is only one product or service that meets the department's needs, and there is only one vendor offering the product or service. Only one vendor possesses the unique and singularly available capability to meet the requirements (technical specifications) of the solicitation. Surplus: Supplies or commodities that have completed their useful life and no longer have use to the original consumer, but may have some purpose or alternative use to another department within the City, or to an individual or entity outside the City. Tax Exempt: The City is exempt from all Federal, State of Iowa, and other states' taxes on the purchase of commodities and services used by the City of Iowa City within the State of Iowa. Vendor: A supplier/seller of goods or services. 24 APPENDIX II. PURCHASING UNDER FEDERAL AWARDS In addition to other provisions required by a Federal agency or the City, all contracts made by the City under a Federal award must contain provisions covering the following, as applicable. (A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. (B) All contracts in excess of $10,000 must address termination for cause and for convenience by the non -Federal entity including the manner by which it will be effected and the basis for settlement. (C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of "federally assisted construction contract" in 41 CFR Part 601.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." (D) Davis -Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non -Federal entities must include a provision for compliance with the Davis -Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non - Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non -Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland "Anti -Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non - Federal entity must report all suspected or reported violations to the Federal awarding agency. (E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non -Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous 25 or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. (F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the defmition of "funding agreement" under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that "funding agreement," the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. (G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non -Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 74017671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). (H) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. (I) Byrd Anti -Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non -Federal award. All vendors/contractors will be checked in www.sam.gov to verify that they are not debarred/suspended/excluded from being paid with federal funds. (J) Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. (1) The non -Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. (2) Affirmative steps must include: (a) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (b) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (c) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (d) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; 26 (e) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (f) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (a) through (e) of this section. (K) See §200.322 Procurement of recovered materials. 27 Item Number: 6.b. 1 CITY OF IOWA CITY ��.:. -4 in � at COUNCIL ACTION REPORT August 4, 2020 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Asphalt Resurfacing 2020 Project. Prepared By: Jason Reichart, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: To be updated with late handout Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the Asphalt Resurfacing 2020 Project. The Project Manual was approved at the July 7, 2020 City Council Meeting, and the estimated cost of construction was $2,150,000. Bid information will be updated when available and provided with a late handout. Construction is expected to be completed in Fall 2020. Background /Analysis: This is a recurring maintenance project that concentrates on asphalt resurfacing and chip sealing of various streets throughout Iowa City. In addition to the resurfacing, this project includes installation and repair of storm intakes, repair of curb and gutter as needed, and replacement of curb ramps to meet current ADA standards. This project also includes new pavement markings on Dodge Street to implement a one-way to two-way conversion from Burlington Street to Bowery Street and a four -lane to three -lane conversion from Bowery Street to Kirkwood Avenue. The new pavement markings will also include new bicycle facilities recommended by the Bicycle Master Plan. The Asphalt Resurfacing 2020 Project includes work at the following locations: Street Milling and 3 -inch Asphalt Overlay North Gilbert Street from Church Street to Market Street Bloomington Street from Dubuque Street to Dodge Street South Dodge Street from Burlington Street to Bowery Street Muscatine Avenue from Court Street to 2nd Avenue Hollywood Boulevard from Taylor Drive to Sycamore Street Benton Street and Miller Avenue Intersection Repair Chip Seal Taft Avenue from American Legion Road to Herbert Hoover Highway Camp Cardinal Road from Camp Cardinal Boulevard to approximately 350 feet north of Eagle Place Pavement Markings with New Bicycle Facilities Dodge Street one-way to two-way conversion with a buffered bike lane from Burlington Street to Bowery Street and four -lane to three -lane conversion with bike lanes from Bowery Street to Kirkwood Avenue Muscatine Avenue bike lanes from Iowa Ave to Burlington Street ATTACHMENTS: Description Resolution CITY OF IOWA CITY COUNCIL ACTION REPORT August 4, 2020 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Asphalt Resurfacing 2020 Project. Late, Prepared By: Jason Reichart - Senior Civil Engineer Reviewed By: Jason Havel - City Engineer Ron Knoche - Public Works Director Geoff Fruin - City Manager Fiscal Impact: $2,139,753.78, available in the Pavement Rehabilita ' count #S3824 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the Asphalt Resurfacing 2020 Project. The Project Manual was approved at the July 7, 2020 City Council Meeting, and the estimated cost of construction was $2,150,000. One (1) bid was submitted prior to the July 30th deadline, and L.L. Pelling Company of North Liberty, Iowa submitted the apparent low bid of $2,139,753.78. Staff recommends awarding the construction contract for the Asphalt Resurfacing 2020 Project to L.L. Pelling Company. Construction is expected to be completed in Fall 2020. Background / Analysis: This is a recurring maintenance project that concentrates on asphalt resurfacing and chip sealing of various streets throughout Iowa City. In addition to the resurfacing, this project includes installation and repair of storm intakes, repair of curb and gutter as needed, and replacement of curb ramps to meet current ADA standards. This project also includes new pavement markings on Dodge Street to implement a one-way to two-way conversion from Burlington Street to Bowery Street and a four -lane to three -lane conversion from Bowery Street to Kirkwood Avenue. The new pavement markings will also include new bicycle facilities recommended by the Bicycle Master Plan. The Asphalt Resurfacing 2020 Project includes work at the following locations: Street Milling and 3 -inch Asphalt Overlay North Gilbert Street from Church Street to Market Street Bloomington Street from Dubuque Street to Dodge Street South Dodge Street from Burlington Street to Bowery Street Muscatine Avenue from Court Street to 2nd Avenue Hollywood Boulevard from Taylor Drive to Sycamore Street Benton Street and Miller Avenue Intersection Repair ted r CITY OF IOWA CITY .► .Alt 1 J.. k"' 4 ®I�� COUNCIL ACTION REPORT Chip Seal Taft Avenue from American Legion Road to Herbert Hoover Highway Camp Cardinal Road from Camp Cardinal Boulevard to approximately 350 feet north of Eagle Place Pavement Markings with New Bicycle Facilities Dodge Street one-way to two-way conversion with a buffered bike lane from Burlington Street to Bowery Street and four -lane to three -lane conversion with bike lanes from Bowery Street to Kirkwood Avenue Muscatine Avenue bike lanes from Iowa Ave to Burlington Street Prepared by: Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240 Resolution No. Res lution awarding contract and author/zine Mayor to sign and te CityClerk to attest a contract truction of the Asphal Resurfacing 2020 Project Whereas, of has ubmitted the lowest responsible bid of $ for c\Policy f the above-named oject; and Whereas, funds for are available in a Annual Pavement Rehabilitation account #S3824; and Whereas, the City Enity Manag are authorized to execute change orders according to the City's Purchasthey ma become necessary in the construction of the above- named project. Now, therefore, be it resolved by the Kity Council of the City of Iowa City, Iowa, that 1. The contract for the co truc nof the above-named project is hereby awarded to ubject to the condition that awardee secure adequate performance and pay nt bond, i surance certificates, and contract compliance program statements. 2. The Mayor is her construction of t adequate perfor a program state en Passed and aoorov this Attest : :)y authorized to above-named pi ce and payment and the City Clerk to attest the contract for subject to the condition that awardee secure insurance certificates, and contract compliance day of 2020 Mayor Approved by ity Attorney's Office It was moved by and seconded by adopted and upon roll call there were: Ayes: Nays: Bergus Mims Salih Taylor Teague Thomas Weiner the Resolution be Prepared by: Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)356-5416 Resolution No. 20-180 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Asphalt Resurfacing 2020 Project Whereas, L.L. Pelling Company of North Liberty, Iowa, has submitted the lowest responsible bid of $2,139,753.78 for construction of the above-named project; and Whereas, funds for this project are available in the Annual Pavement Rehabilitation account #S3824;and Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The contract for the construction of the above-named project is hereby awarded to L.L. Pelling Company, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named, project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 4th day of Attest City Jerk It was moved by salih and seconded by adopted, and upon roll call there were: August ,2020 Ayes: X X X X X X X Nays: City Attorney's Office - 07/30/2020 Weiner the Resolution be Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 6.c. 1 CITY OF IOWA CITY ��.:. -4 in � at COUNCIL ACTION REPORT August 4, 2020 Resolution authorizing the Mayor to sign Change Order #1 to the contract between Vieth Construction Corporation and the City of Iowa City, Iowa for extra work on the Burlington and Madison Intersection Improvements Project. Prepared By: Jason Reichart, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $223,403 available in the Annual Sewer Main Replacement account # V3101 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Change Order #1 Executive Summary: During construction of the Burlington and Madison Intersection Improvements Project, a section of sanitary sewer under Burlington Street at the CRANDIC Railroad crossing was discovered to be in poor condition. Repair of this section of sanitary sewer necessitates additional work beyond the original scope of the project. Because of these changes, staff negotiated Change Order #1 in the amount of $223,403 which modifies the project scope, timeline and contract cost. Background /Analysis: As part of the Burlington Madison Intersection Improvements Project, the City planned to replace three brick sanitary manholes in Burlington Street. While working on the first manhole at South Front Street, the contractor discovered an issue with the sanitary sewer pipe crossing Burlington Street below the railroad crossing. The City cleaned and televised the line and confirmed the pipe was not flowing correctly because of a severe sag. It was determined the best course of action was to replace this section of pipe since the railroad tracks are currently removed and the contractor is replacing the manholes on the upstream and downstream ends of said pipe per the original contract. City staff worked with the prime contractor and their sub to determine the best method to replace the pipe. Given the number of height restrictions (railroad crossing signals and overhead electric/fiber) and existing underground utilities and tunnels, the team considered trenchless methods. However, due to the depth of excavation and equipment space requirements, the majority of the site would need to be excavated anyway. Therefore, the team decided trenching would be the best method for installing the new pipe. Estimates from multiple contractors were requested to complete this work and two quotes were collected, ranging from $223,710 to $238,160. With Burlington Street currently closed and work already occurring in the area, completing the repair now is expected to provide time and cost savings over having to complete the work at a future date. The new University of Iowa Art Museum, which is currently under construction, also ties into this sanitary sewer line. Given the site constraints, type of construction required, and timeframe to complete this work, City staff believe the estimated price to replace the sanitary sewer is reasonable and recommend approval of Change Order #1. Project Timeline: Sanitary Sewer Replacement Complete — May 15, 2020 Estimated Construction Completion —August 28, 2020 ATTACHMENTS: Description Resolution Change Order #1 Prepared by: Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436 Resolution No. R oilution authorizing the Mayor to sign Change Order #1 to the con act between Vieth Construction Corporation and the City of Iowa\ion a for extra work on the Burlington 'd Madison Interprovements Project. Whereas, the into a contract on January 7, 2020 wit ieth Construction Corporation of Cedar Fallonstruction of the Burlington and M dison Intersection Improvements Project; and Whereas, circumstances enc ntered during the i work beyond the original scopof the project as specifications; and Whereas, as a result of these chan s in modifies the project scope, timeline, a d t with the City's Purchasing Policy; and Whereas, it is in the public interest to Corporation; and Whereas, the Finance Director has Whereas, funds for this project V3101; and Now, therefore, be it 1. The attached content. 2. The Mayor is Passed and Attest: Clerk in of the project necessitated additional within the approved project plans and staff has negotiated a change order that ting City Council Approval in accordance appr a said negotiated change order with Vieth Construction iewed th change order; and available in t e Annual Sewer Main Replacement account # {5y the City Council of thCity of Iowa City, Iowa that: order hereto is in the publi interest, and is approved as to form and authorized and directed to execJte the attached Change order. this day of Mayor 2020 Approved b) n.4w 4. (Sara Greenwood Hektdpn — 07/28/2020) �,G G Late Handouts Distribu ed Prepared by: Jason Reichart, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436 Resolution No. 8 4 — �2C) Resolution authorizing the City Engineer to sign cha>'s"gte�rder #1 to the contract between Vieth Construction Corporation and the City of Iowa City for extra work on the 2020 Burlington & Madison Intersection Improvements. Whereas, the City entered into a contract on January 7, 2020 with Vieth Construction Corporation of Cedar Falls, Iowa; and Whereas, circumstances encountered during the construction of the project necessitated additional work beyond the original scope of the project as specified within the approved project plans and specifications; and Whereas, as a result of these changes in circumstances, staff has negotiated a change order that modifies the project scope, timeline, and budget necessitating City Council Approval in accordance with the Purchasing Policy; and Whereas, it is in the public interest to approve said negotiated change order with Vieth Construction Corporation; and Whereas, the Finance Director has reviewed the change order; and Whereas, funds for this project are available in the Annual Sewer Main Replacement account # V310; and Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: The attached change order hereto is in the public interest, and is approved as to form and content. 2. The City Engineer is hereby authorized and directed to execute the attached Change order. Passed and approved this day of , 20 Attest: City Clerk Mayor Approved / City Attorney's Office (Sara Greenwood Hektoen — 08/04/2020) Prepared by., Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436 Resolution No. 20-181 Resolution authorizing the City Engineer to sign change order #1 to the contract between Vieth Construction Corporation and the City of Iowa City for extra work on the 2020 Burlington & Madison Intersection Improvements. Whereas, the City entered into a contract on January 7, 2020 with Vieth Construction Corporation of Cedar Falls, Iowa; and Whereas, circumstances encountered during the construction of the project necessitated additional work beyond the original scope of the project as specified within the approved project plans and specifications; and Whereas, as a result of these changes in circumstances, staff has negotiated a change order that modifies the project scope, timeline, and budget necessitating City Council Approval in accordance with the Purchasing Policy; and Whereas, it is in the public interest to approve said negotiated change order with Vieth Construction Corporation; and Whereas, the Finance Director has reviewed the change order; and Whereas, funds for this project are available in the Annual Sewer Main Replacement account # V310; and Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: The attached change order hereto is in the public interest, and is approved as to form and content. 2. The City Engineer is hereby authorized and directed to execute the attached Change order. Passed and approved this 4th day of August 20 20 �J I Attest: 1) Cit Clerk Approved,by City Attorney's Office (Sara Greenwood Hektoen — 08/04/2020) (12, G Resolution No. 20-181 Page 2 It was moved by salih and seconded by adopted, and upon roll call there were: Ayes: Nays: Weiner the Resolution be Absent: Bergus Mims Salih Taylor Teague Thomas Weiner LZIOWADOT Form 831240 (08-18) CHANGE ORDER For Local Public Agency Projects No.: 1 Accounting ID No. (5 -digit number):36455 Contract Work Type: PCC Pavement with HMA Resurfp Contractor: Vieth Construction Corporation Non -Substantial: F Substantial: May 4, 2020 Administering Office Concurrence Date Project Number:NHSX-001-5(120)--3H-52 Local Public Agency: City of Iowa City Date Prepared: May 4, 2020 You are hereby authorized to make the following changes to the contract documents. A - Description of change to be made: DECREASE Item 0200 - Manhole, Sanitary Sewer, SW -301, 48 IN: 1 EACH 8001 ADD Item 8001 - Sanitary Sewer Replacement, Trenched, DIP, 24 IN: Perform work per Standard Specifications 2435 and 2504 for sanitary sewers, 2501 and 4167 for shoring, 2552 and 4119 for bedding and backfill, and per the attached plan sheet. Method of Measurement - Item will not be measured separately. Basis of Payment - Lump Sum. This payment is full compensation for all labor, equipment and materials needed to mobilize and complete the work as specified. B - Reason for change: 0200 - Manhole SSMH-1 will be set by the subcontractor as part of the work included in Item 8001. 8001 - While setting SSMH-2 the contractor discovered the inlet pipe elevation was lower than the outlet pipe elevation. The City cleaned and televised the sewer line and confirmed the pipe was not flowing correctly because of a severe sag. The City determined it would be best to replace this pipe as part of the project since the railroad tracks are currently removed and the contractor is replacing the manholes on the upstream and downstream ends of said pipe per the original contract. C - Settlement for cost(s) of change as follows with items addressed in Sections F and/or G: 0200 - Contract Unit Price 8001 - Agreed Lump Sum D - Justification for cost(s) (See I.M. 3.805, Attachment D, Chapter 2.36, for acceptable justification): 8001 - The City asked the Contractor to get estimates from multiple contractors to complete this work. This proved to be difficult as there are only a few local contractors capable of completing work of this nature, especially in the time frame given. Two quotes were collected for $230,253 (Maxwell Construction) and $238,160 (Dave Schmitt Construction). The Contractor asked a third contractor to submit an estimate, but never received a response. E - Contract time adjustment: ® No Working Days added ❑ Working Days added: ❑ Unknown at this time Justification for selection: Given the site constraints, type of construction required, and time frame given to complete this work, the City and the contractor agreed to suspend the charging of working days through Thursday May 21, 2020. This work is the controlling operation of work at this time. Page 1 of 3 L,IOWADOT Form 831240 (08-18) F - Items included in contract: Accounting ID No.(5-digit number):36455 Change Order No.:I Participating For deductions enter as "-x.xx" Federal- aid State- aid Line Number Item Description Unit Price Ax Quantity xxx Amount Ax Amount Ax 0200 Manhole, Sanitary Sewer, SW -301,48 IN $6,850.00 -1.000 -$6,850.00 230,253 $230,253.00 Add Row Delete Row TOTAL -$6,850.00 G - Items not included in contract: Participating For deductions enter as "-x.xx" Federal- aid State- aid Change Number Item Number Item Description Unit Price Ax Quantity xxx Amount Ax 8001 2599-9999010 Sanitary Sewer Replacement, Trenched, DIP, 24 IN $1.00 230,253 $230,253.00 230,253 Add Row I I Delete Row Page 2 of 3 TOTAL $230,253.00 H. Signatures Page 3 of 3 Doc Express Document Signing History Contract: 52-0015-120 Document: CO 01 This document is in the process of being signed by all required signatories using the Doc Express service. Following are the signatures that have occurred so far. Date Signed By Alex Weber 08/14/2020 Vieth Construction Electronic Signature (Approved by Contractor (Optional)) Jason Havel 08/14/2020 City of Iowa City - Iowa Electronic Signature (Recommended by Engineer / Approved) Kent Ellis 08/27/2020 Iowa Local Systems Electronic Signature (Approved by Administering Office or designee) (Approved by FHWA (when applicable)) 10 - _ _FA FA.1 WANAWN sl CONSTRUCTION REVISIONS / • REVISED EXISTING PIPE DIAMETERS �- ' -- c-��> ��>- - �- �� • ADDED NOTE TO REMOVE 10 LF OF SANITARY REMOVE & REPLACE SANITARY SEWER + w SEWER -- �— �— MANHOLE • ADDED NOTE "REMOVE & REPLACE SANITARY _ so MANHOLE" BURLINGTON STREET 650 SSMH — 1 STA: 56+85.09, 20.45 L RIM: 650.11 FL IN: 644.10, N, 24 FL OUT: 634.41, SE, 24" 1 640 1 630 SSMH — 2 RIM: 649.59 FL IN: 633.79, NW, 24" REMOVE &REPLACE SANITARY SEWER MANHOLE 00-- — a STA: 61+18.99, 7.50 L RIM: 652.1 FL IN: 639.10, E, 8" 650 FL OUT: 639.10, S, 12" 640 1 630 1 9+00 10+00 11+00 19+00 20+00 21+00 ROAD DESIGN * CADD * PRODUCED STATE OF IOWA FHWA REGION 7 FISCAL YEAR 2019 JOHNSON COUNTY PROJECT NUMBER NHSX-001 -5(120)--3H-52 SHEET NUMBER MA R Item Number: 6.d. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT August 4, 2020 Resolution accepting the work for the water main public improvements for Woodland Ridge Water Main Extension, and declaring public improvements open for public access and use. Prepared By: Josh Slattery, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: None Recommendations: Staff: Approval Commission: N/A Attachments: Engineer's Report Resolution Executive Summary: Woodland Ridge is an existing residential subdivision that is located between Dane Road SW and the Highway 218 / Riverside Drive interchange, outside of City limits. City water has been extended into this subdivision due to containments discovered in the private water supply. The Woodland Ridge Water Main Extension extends water main down Meadow view Lane SW, east of Dane Road SW, and along Meadow View SW, Red Fox Court SW, Arrow Wood Court SW, and Nutwood Drive SW. Background /Analysis: The construction of the water main improvements for the Woodland Ridge Water Main Extension have been completed in substantial accordance with the plans and specifications on file with the Engineering Division of the City of Iowa City. City policy allows for the extension of water main to areas outside the City's growth area in situations where a public health issue exists. In these situations, the property owners are responsible for all costs to build the infrastructure to extend the water main and will pay a water usage fee of 1.5 times the fee for City residents. Upon acceptance of the project, the City takes over maintenance of the infrastructure as a part of the City's water system. ATTACHMENTS: Description Engineer's Report Resolution I r i AA riZ ` OTC CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240 - 1826 (319) 356 - 5000 ENGINEER'S REPORT (319) 356 - 5009 FAX www.icgov.org July 28, 2020 Honorable Mayor and City Council Iowa City, Iowa Re: Woodland Ridge Watermain Extension Dear Honorable Mayor and Councilpersons: I hereby certify that the construction of the water main improvements for Woodland Ridge Watermain Extension have been completed in substantial accordance with the plans and specifications on file with the Engineering Division of the City of Iowa City. The required maintenance bonds are on file in the City Clerk's Office for the water main improvements constructed by Boomerang Corp. of Anamosa, Iowa. I recommend that the above -referenced improvements be accepted by the City of Iowa City. Sincerely, Jason Havel, P.E. City Engineer E-111 Prepared by: Josh Slattery, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5149 Resolution No. 20-182 Resolution accepting the work for the water main public improvements for Woodland Ridge Water Main Extension, and declaring public improvements open for public access and use Whereas, the Engineering Division has certified that the following improvements have been completed in accordance with the plans and specifications approved by the Engineering Division. Water main improvements for the Woodland Ridge Water Main Extension, as constructed by Boomerang Corp. of Hiawatha, Iowa. Whereas, the maintenance bond has been filed in the City Clerk's office; and Whereas, the City of Iowa City has notified those contractors listed previously of the date on which it will consider acceptance of the aforementioned public improvements; and Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said improvements are hereby accepted by the City of Iowa City, Iowa and that all dedications and public improvements previously set aside as not being open for public access are hereby formally accepted and declared open for public access and use. Passed and approved this 4th day of August 2020 l May proV!) Attest: Ap, Ci Clerk 0 City Attorney's Office (Sara Greenwood Hektoen - 07/28/2020) It was moved by Salih and seconded by Weiner the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: X Bergus X Mims X Salih x Taylor X Teague X Thomas X Weiner Item Number: 6.e. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT August 4, 2020 Resolution accepting the work for the 2019 Iowa City Kickers Soccer Park Field Addition Project. Prepared By: Joe Welter, Sr. Civil Engineer Reviewed By: Juli Seydell Johnson, Parks and Recreation Director Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: None Recommendations: Staff: Approval Commission: N/A Attachments: Engineer's Report Resolution Executive Summary: Construction of the 2019 Iowa City Kickers Soccer Park Field Addition Project has been completed by MBA Incorporated of North Liberty, Iowa, in substantial accordance with the Project Manual developed by the Engineering Division of the City of Iowa City. The Engineer's Report and Performance, Payment, and Maintenance Bonds are on file with the City Engineer. • Project Estimated Cost: $65,000.00 • Project Bid Received: $80,874.00 • Project Actual Cost: $83,757.00 Two change orders were approved for this project for extensions to the completion date, the layout of a portion of the drainage system network, and site grading due to conditions observed in the field. Background /Analysis: The project included installation of a drainage network consisting of 2 -inch sub -drains, 6 -inch drain collectors, 12 -inch storm sewer service, five drain clean -outs, a drain outlet to the ditch, various drain connections, and grading of a portion of the field. The project covered an area of approximately five acres, with approximately two acres of grading. ATTACHMENTS: Description Engineer's Report Resolution I r i :min "` ww'�"® CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240 - 1826 (319) 356 - 5000 (319) 356 - 5009 FAX ENGINEER'S REPORT www•icgov.org July 24, 2020 City Clerk Iowa City, Iowa Re: 2019 Iowa City Kickers Soccer Park Field Addition Project Dear City Clerk: I hereby certify that the 2019 Iowa City Kickers Soccer Park Field Addition Project has been completed by MBA Incorporated of North Liberty, Iowa, in substantial accordance with the Project Manual developed by the Engineering Division of the City of Iowa City. The project was bid as a unit price contract and the final contract price is $83,757.00. There were two (2) change orders on this project: 1. Revisions to the completion dates due to wet conditions $0.00 2, Revised tile line layout and site grading. $2,883.00 Total $2,883.00 I recommend that the above -referenced improvements be accepted by the City of Iowa City. Sincerely, 2— Jason Jason Havel City Engineer Prepared by: Joe Welter, Public Works, 410 East Washington Street, Iowa City, Iowa 52240 (319) 356-5144 Resolution No. 20-183 Resolution accepting the work for the 2019 Iowa City Kickers Soccer Park Field Addition Project Whereas, the Engineering Division has recommended that the work for construction of the 2019 Iowa City Kickers Soccer Park Field Addition Project, as included in a contract between the City of Iowa City and MBA Incorporated of North Liberty, Iowa, dated February 5, 2020, be accepted; and Whereas, the Engineer's Report and the performance, payment, and maintenance bond have been filed in the City Clerk's office; and Whereas, funds for this project are available in IC Kickers Park Soccer Field Addition, Account Number R4355; and Whereas, the final contract price is $83,757.00. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that said improvements are hereby accepted by the City of Iowa City, Iowa. Passed and approved this 4th day of August 2020 MaiQV Attest: Ci Clerk Approved '1. City Attorney's Office (Sara Greenwood Hektoen — 07/28/2020) It was moved by Salih and seconded by adopted, and upon roll call there were: Ayes: M Nays: Weiner the Resolution be Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 6.f. 1 CITY OF IOWA CITY in � at COUNCIL ACTION REPORT August 4, 2020 Resolution authorizing the City Manager to submit a Resource Enhancement and Protection (REAP) grant application for Whispering Meadows Park and to sign a grant agreement if awarded. Prepared By: Juli Seydell Johnson, Parks & Rec Director Reviewed By: Geoff Fruin, City Manager Fiscal Impact: none Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: The Iowa Dept. of Natural Resources administers Resource Enhancement and Protection (REAP) grants for development/enhancement of land for outdoor recreation, and the grant process requires Council approval of a grant submissions. Staff desires to submit an application for Whispering Meadows Park. Background /Analysis: This resolution authorizes City staff to apply for a $100,000 grant for ecological restoration and enhancement and interpretive signage in Whispering Meadows Park and the City Manager to sign the grant agreement if awarded. There is no local match. The 10 -acre Whispering Meadows Park is a neighborhood park which is in need of restoration. Previous work has identified reed canary grass and narrow -leaved cattail as the primary invasive plant issues. In addition, an upland prairie area is currently dominated by non-native plant species and requires a "re -set" in terms of removing non -natives and seeding with appropriate natives. The proposed ecological restoration is the first step toward making the park more inviting and functional. ATTACHMENTS: Description Resolution Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 Resolution No. 20-184 Resolution authorizing the City Manager to submit a Resource Enhancement and Protection (REAP) grant application for Whispering Meadows Park and to sign a grant agreement if awarded. Whereas, the Iowa Dept. of Natural Resources administers Resource Enhancement and Protection (REAP) grants for acquisition and/or development/enhancement of land for outdoor recreation; Whereas, the grant process requires the City Council approval of a grant submissions; Whereas, City staff would like to apply for a $100,000 grant for ecological restoration and enhancement and interpretive signage in the 10 -acre Whispering Meadows Park; and Whereas, there is no local match. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The City Manager is authorized to apply for the REAP grant for Whispering Meadows Park. 2. If the REAP grant is awarded, the City Manager is authorized to sign the grant agreement and amendments as needed. Passed and approved this 4th day of August, 2020. Wa�o Attest: (- t •� C ty Clerk City Attorney's Office (Sue Dulek — 07/29/2020) Resolution No. 20-184 Page 2 It was moved by Salih and seconded by Weiner Resolution be adopted, and upon roll call there were: AYES: NAYS: _x x x x x x X ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner the Item Number: 7.a. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT August 4, 2020 Resolution setting a public hearing on August 18, 2020 on project manual and estimate of cost for the construction of the Wetherby Park CDBG Trail Improvements Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said project manual on file for public inspection. Prepared By: Jason Reichart, Sr. Civil Engineer Reviewed By: Juli Seydell Johnson, Parks and Recreation Director Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: The construction estimate is $222,000 and the project will be funded with Capital Improvement Fund and CDBG dollars. Recommendations: Staff: Approval Commission: Attachments: Resolution Executive Summary: The Wetherby Park CDBG Trail Improvements Project includes the construction of an 8 -foot wide concrete trail and related work. Background /Analysis: Wetherby Park is an existing park located in south Iowa City. The park's current amenities include a splash pad, playground equipment, a picnic shelter, cooking grills, sports courts, restrooms, a disc golf course, community garden plots, and a hiking path. At the request of the South District Neighborhood Association and other park users, the City is looking to improve accessibility of the park by replacing the existing gravel trails with paved trails. Similar to other purely recreational trails in Iowa City, the improved trail will not be plowed in the winter season. ATTACHMENTS: Description Resolution Prepared by: Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240,(319)356-5416 Resolution No. 20-185 Resolution setting a public hearing on August 18, 2020 on project manual and estimate of cost for the construction of the Wetherby Park CDBG Trail Improvements Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said project manual on file for public inspection. Whereas, funds for this project are available in the Parks Annual Improvements/Maintenance account #R4130. Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that: 1. A public hearing on the project manual and estimate of cost for the construction of the above- mentioned project is to be held on the 18th day of August 2020, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. City Hall is currently closed to the public because of the coronavirus. If City Hall remains closed to the public, the meeting will be an electronic meeting using the Zoom Meetings Platform. For information on how to participate in the electronic meeting, see www.icgov.org/councildoGs or telephone the City Clerk at 319/356-5043. 3. The City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 4. A copy of the project manual and estimate of cost for the construction of the above-named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this 4th day of Attest: City Jerk August ,2020 M r fv d by / City Attorney's Office -/077/30/2020 It was moved by Salih and seconded by adopted, and upon roll call there were: Ayes: ii Nays: Weiner the Resolution be Absent: Bergus Mims Salih Taylor Teague Thomas Weiner 1. W Item Number: 11. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT August 4, 2020 Resolution approving Amendment No. 2 to the Heinz Road Urban Renewal Plan to add projects to the Urban Renewal Area. Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: Recommendations: Staff: Approval Commission: Attachments: Resolution Amendment No. 2 to the Heinz Road Urban Renewal Plan Executive Summary: This Amendment will allow the City to to provide economic development assistance for private projects within the Urban Renewal Area that improve the energy efficiency of industrial operations. The goal is to reduce carbon emissions required to power their operations and help the City reduce carbon emissions by 45% by 2030. According to the Accelerating Iowa City Climate Actions report, industrial users account for 27% of Iowa City's carbon emissions and commercial users account for another 20%. Due to the urgency of meeting emissions goals and the extent of industrial and commercial energy usage, the City has established a program to directly assist local business as they pursue greater building efficiency and emissions reduction measures. Background /Analysis: On August 6, 2019, Council declared a Climate Crisis and called on staff to accelerate action to address the climate crisis and limit global warming. To that end, Council adopted the I PCC (Intergovernmental Panel on Climate Change) targets of a 45% reduction in carbon emissions by 2030 and reaching "net -zero" by 2050. In 2007, the City of Iowa City took its first deliberate step to address Climate Change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. The next year a Climate Action Steering Committee was formed to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets, declared a Climate Crisis, and requested a report to accelerate the City's identified climate actions. The resulting 2020 Accelerating Climate Actions report has a "Building: Incentives" section which includes the following action: "Launch a TIF -funded climate action incentive program aimed at reducing industrial energy consumption." This initiative, geared toward energy efficiency, renewable energy sources, electrification and site improvements that will help reduce emissions is labeled as Phase 1, is slated for initiation in 2020. By addressing facility inefficiencies, users will reduce costs, energy use, and the amount of greenhouse gases emissions (Energy Star, U.S. Environmental Protection Agency). To encourage industry to make the sizable investments required to improve energy efficiency, the City is creating an program designed to offset some of those costs. Applicants would be eligible for up to a 50% match for energy efficiency improvements. While upfront costs are significant, companies that make energy efficiency improvements will begin to see an immediate return by a reduction of their energy costs. Over time, the cumulative reduction in carbon emissions required to power the buildings will be better for the planet. The Heinz Road Urban Renewal Area was established in 2002 to attract new business, boost business retention and expansion, and retain and attract newjobs to the area. The base year value was set in 2001 for a tax increment financing rebate projects with United Natural Foods Inc and Alpla. Those rebates ended in 2011 and since then, the taxable valuation of the area has increased by more than $21 M, and is now creating an unused available tax increment of more than $640,000 each year. The sunset for this TIF district is FY2025, leaving only 4 fiscal years from which to collect increment. The project amount detailed in the Amendment #2 of $2.5 million would allow for the maximum use of available increment, but likely would not approach the full amount. This tax increment, generated from taxes paid by property owners in this industrial area, would be used for matching funds on qualified industrial energy efficiency improvements. Industries would apply for the funds, projects would be vetted by professionals or contractors in the energy efficiency industry, and enter into a development agreement subject to City Council approval. A Resolution of Necessity (resolution #20-165) to consider Amendment #2 to the Heinz Road Urban Renewal Plan was adopted by City Council on July 7, 2020. On July 10, 2020 a meeting notice and invitation were sent for a consultation with the City of Iowa City and the other taxing entities, Johnson County and the Iowa City Community School District, concerning the proposed Amendment #2 to the Heinz Road Urban Renewal Area. The consultation was held on July 17, 2020 at 11:00 a.m. via the Zoom meeting platform. Duane Van Hemert represented the Iowa City community School District. No one from the Johnson County Board of Supervisors attended. State law requires that the taxing entities must submit any written recommendations for modification regarding the proposed division of revenue within 7 days after the consultation. There were no submissions. On July 16, 2020, notice of a Public Hearing to be held August 4, 2020 on Amendment #2 to the City -University Urban Renewal Plan was published in the Iowa City Press Citizen. ATTACHMENTS: Description Resolution Amendment #2 Heinz Road Urban Renewal Plan STAFF PRESENTATION TO FOLLOW: 1 r I C04;qui h CITY OF lOVVA CITY 410 East Washington Street Iowa City, Iowa S2240-1826 (319) 356-5000 (3I9) 356-5009 FAX www.icgov.org Urban Renewal Areas enabling Tax Increment Financing "m a 1 - No hgate Corporate Park 4 City -University Project 1 -Heinz Road 10- Towncrest 13 - Foster Road. r®mom 2= Sycamore and First Avenue rj = Lower Muscatine Road and Hwy 6 8 Hwy 6 Commercial Riverside Drive Forest View T IT� 11� 14 CITVOPIOWACITY 3= Scott Six Industrial Park 6 Industrial Park Road 9 - Moss Ridge 12- Camp Cardinal July 2099 IZJmd.: a 05 1 �M.r� � M 'so � - i. == �80 1 me. =� `VIII~ MEN NO MiiiNINi IlaROCHEI ■i son ISO -■ Gill. ilii � ._ �',�� I�■r'�� E .,.. _....NEE Emirs��r +� �`\� � =_= rig► ��' Urban Renewal Areas enabling Tax Increment Financing "m a 1 - No hgate Corporate Park 4 City -University Project 1 -Heinz Road 10- Towncrest 13 - Foster Road. r®mom 2= Sycamore and First Avenue rj = Lower Muscatine Road and Hwy 6 8 Hwy 6 Commercial Riverside Drive Forest View T IT� 11� 14 CITVOPIOWACITY 3= Scott Six Industrial Park 6 Industrial Park Road 9 - Moss Ridge 12- Camp Cardinal July 2099 IZJmd.: a 05 1 STAFF PRESENTATION CONCLUDED � r rrM as � h CITY OF IOWA CITY 410 East Washington Strect Iowa City, Iowa 52240-1826 (3 19) 356-5000 (3 19) 356-5009 FAX www. icgov. o rg STATE OF IOWA ) ) SS JOHNSON COUNTY ) I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 20-186 which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 4th day of August 2020, all as the same appears of record in my office. Dated at Iowa City, Iowa, this 7th day of August 2020. fijl, Kellick. Fruehling City Clerk fires 410 EAST WASHINGTON STREET • IOWA CITY, IOWA 52240-1826 • (319) 356-5000 • FAX (319) 356-5009 Prepared by: Wendy Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. 20-186 Resolution approving Amendment No. 2 to the Heinz Road Urban Renewal Plan to add projects to the Urban Renewal Area. WHEREAS, on July 7, 2020, City Council adopted a resolution of necessity (Res. No. 20-165) contemplating an amendment to the Heinz Road Urban Renewal Plan to facilitate reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency, said amendment being the 2nd amendment thereto, and WHEREAS, pursuant to Res. No. 20-165, consultation with affected taxing entities was duly held and all required responses to the recommendations made by the affected taxing entities, have been timely made as set forth in the report of the Economic Development Coordinator filed herewith and incorporated herein by the reference, which report is in all respects approved; and WHEREAS, pursuant to said Res. No. 20-165, a public hearing was held after due and proper notice of said public hearing was given, as provided by law, by timely publication in the Iowa City Press Citizen. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: Section 1. This Council finds that Amendment No. 2 to the Heinz Road Urban Renewal Plan conforms to the general plan for the development of the City as a whole; will not result in the displacement of families; and, does not contain open land to be acquired by the City; and, Section 2. That Amendment No. 2 is hereby approved and adopted as the "Amendment No. 2 to the Heinz Road Urban Renewal Plan for the Heinz Road Urban Renewal Area"; and the City Clerk is hereby directed to file a certified copy of said Amendment No. 2 with the proceedings of this meeting. Section 3. That the Heinz Road Urban Renewal Plan for the Heinz Road Urban Renewal Area, as amended herein, shall be in full force and effect from the date of this resolution until the later of the date of termination set forth in the Plan, as amended, or the date on which payment of all obligations issued or advances made to carry out the purposes thereof shall be fully provided for. Said Amendment No. 2 shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded in the manner provided by law. -1- Resolution No. 20-186 Page 2 PASSED AND APPROVED this 4th day of August , 2020. Mtryor ATTEST City Clerk Uw �APPROVED: City Attorney (Sara Greenwood Hektoen — 07/27/2020) -2- Resolution No. Page 3 20-186 It was moved by Mims and seconded by Taylor the Resolution be adopted, and upon roll call there were: AYES: NAYS: —x x x x — x x x ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner Urban Renewal Plan for the Heinz Road Urban Renewal Area FILM= �l `MA June 2020 Amendment No. 1, 2014 Original, 2002 SECTION 1 - INTRODUCTION The Urban Renewal Plan for the Heinz Road Urban Renewal Area, as amended, is being amended to add climate change goals and add a proposed project to be undertaken in the Area. The Heinz Road Area was originally adopted in 2002 pursuant to resolution 02-195 and amended in 2014 pursuant to Resolution 14-23 to add a project. The base valuation of the area will be unchanged by this Amendment. SECTION 2 — URBAN RENEWAL GOALS AND OBJECTIVES The Urban Renewal Goals and Objectives previously set forth in the Original Plan and Amendment 1 remain unchanged by this Amendment. This Amendment No. 2 adds the goal of reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency. In 2007, the City of Iowa City took an important step toward addressing climate change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. In 2017, the City formed a Climate Action Steering Committee to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the Committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets and declared a Climate Crisis. The average commercial building wastes about 30% of the energy it consumes. By capturing inefficiencies, users can reduce costs. By reducing energy use, users also reduce greenhouse gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). Reducing greenhouse gases released into the atmosphere is an effective way to stem climate change and results in a cleaner, healthier environment. The amendment to this plan seeks to assist users achieve those goals. SECTION 3 — DESCRIPTION OF THE URBAN RENEWAL AREA The legal description of the area is attached hereto as Attachment No. 1 SECTION 4—AREA DESIGNATION This area remains an economic development area, as that term is defined in the Iowa Code Chapter 403. SECTION 5— PROPOSED URBAN RENEWAL PROJECTS The eligible urban renewal projects under this Urban Renewal Plan include: Development Agreements Enter into development agreements with industrial users in the Urban Renewal Area to provide economic development assistance for projects that include improvements to the facilities making them more energy efficient. The proposed Urban Renewal Projects contemplated by this Amendment No. 2 may require evaluation by a qualified third -party engineering firm to determine and recommend the optimal energy efficiency solutions for industrial companies. Projects may range from adjustments to existing systems to the installation of new systems. They may include a change -over from natural gas to electric energy to the installation of solar panels to reduce carbon emissions. Project Date Estimated Cost Rationale Energy efficiency 2020— FY25 $2,500,000 To reduce carbon improvements at emissions Industrial properties SECTION 6 — DEBT 1. FY21 Constitutional Debt Limit: $342,894,916 2. Current general obligation debt: $54,850,000 3. Proposed amount of indebtedness to be incurred: Although a specific amount of tax increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds) for projects over time has not yet been determined, it is anticipated that the cost of the Proposed Urban Renewal Activities and Proposed Projects identified in Section 5 above will not exceed $2.6 million. In no event will debt be incurred that would exceed the City's debt capacity. It is further expected that loans, advances, indebtedness or bonds to be incurred for the Proposed Project or subsequent projects, including interest on the same, will be financed in whole or in part with tax increment revenues from the Urban Renewal Area. The City Council will consider each request for financial assistance or a project proposal on a case-by-case basis to determine if it is in the City's best interest to participate. SECTION 7 — CONFORMANCE WITH LAND USE POLICY AND ZONING ORDINANCES The Amendment is consistent with the Iowa City Comprehensive Plan, including the Southeast District Plan. SECTION 8 — URBAN RENEWAL PLAN AMENDMENTS If the City of Iowa City desires to amend this Plan, it may do so in conformance with applicable state and local laws. SECTION 9 — EFFECTIVE PERIOD This Urban Renewal Plan Amendment #2 will become effective upon its adoption by the City Council. Notwithstanding anything to the contrary in the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan shall remain in effect until terminated by the City Council, and the use of incremental property tax revenues, or the "division of revenue," as those words are used in Chapter 403 of the Code of Iowa, will be consistent with Chapter 403 of the Iowa Code. SECTION 10 —REPEALER Any parts of the previous Plan, as previously amended, in conflict with this Amendment are hereby repealed. SECTION 11 — SEVERABILITY CLAUSE If any part of the Amendment is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan as a whole or the previous amendments to the Plan, or any part of the plan not determined to be invalid or unconstitutional. rd Attachment #1 Legal Description Consisting of a tract of land described as follows: Commencing at the intersection of the northerly right-of-way Line of U.S. Highway 6 and the easterly right-of-way line of Scott Boulevard located in Section 19, Township 79 North, Range 5 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa; said point of beginning; Thence, northeasterly and northerly along easterly right-of-way line of Scott Boulevard to a point on the southerly right-of-way line of the Heartland Rail Corporation; Thence northwesterly along said southerly right -of way line of the Heartland Rail Corporation to the most northwesterly point of Lot 4, BDI Fifth Addition; Thence, southeasterly and then southerly along the westerly property line of Lot 4, BDI Fifth Addition to the most southwesterly point of Lot 4, BDI Fifth Addition, which is also the most northwesterly point of Lot 4 Second Addition; Thence, southerly and then southwesterly along the westerly property line of Lot 4 BDI Second Addition to the most northwesterly point of Lot 1, BDI Fourth Addition; Thence, southwesterly along the westerly property line of Lot 1, BDI Fourth Addition to the intersection of the westerly property line of Lot 1, BDI Fourth Addition and the northerly right-of-way line of US Highway 6; Thence, to a point perpendicular with the southerly right-of-way of US Highway 6; Thence, southeasterly along the southerly right-of-way of Highway 6 to a point perpendicular to the easterly right-of-way of Scott Boulevard, Thence, northeasterly to the intersection of the northerly right-of-way of US Highway 6 and the easterly right-of-way of Scott Boulevard, which is said point of beginning. (This area has also been referred to as the BDI Industrial Park Area.) Heinz Road Urban Renewal Area Urban Renewal Area Boundary IL y ® Urban Renewal Area q�A,fV7 Item Number: 12. AL CITY OF IOWA CITY =c�- Q T�q� COUNCIL ACTION REPORT August 4, 2020 Resolution approving Amendment No. 2 to the Scott Six Urban Renewal Plan to add projects to the Urban Renewal Area. Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: Recommendations: Staff: Approval Commission: Attachments: Resolution Amendment No. 2 to the Scott Six Urban Renewal Plan Executive Summary: This Amendment will allow the City to enter into agreements with industrial users to provide economic development assistance for projects that improve the energy efficiency of businesses and industrial users located within the urban renewal area. The goal is to reduce carbon emissions required to power their operations and help the City achieve a 45% reduction in carbon emissions by 2030. According to the Accelerating Iowa City Climate Actions report, industrial users account for 27% of Iowa City's carbon emissions and commercial users account for another 20%. Due to the urgency of meeting emissions goals and the extent of industrial and commercial energy usage, the City has established a program to directly assist local business as they pursue greater building efficiency and emissions reduction measures. Background /Analysis: On August 6, 2019, Council declared a Climate Crisis and called on staff to accelerate action to address the climate crisis and limit global warming. To that end, Council adopted the I PCC (Intergovernmental Panel on Climate Change) targets of a 45% reduction in carbon emissions by 2030 and reaching "net -zero" by 2050. In 2007, the City of Iowa City took its first step to address Climate Change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. The next year a Climate Action Steering Committee was formed to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets, declared a Climate Crisis, and requested a report to accelerate the City's identified climate actions. The resulting 2020 Accelerating Climate Actions report has a "Building: Incentives" section which included the following action: "Launch a TIF -funded climate action incentive program aimed at reducing industrial energy consumption." This initiative, geared towards energy efficiency, renewable energy sources, electrification and site improvements that will help reduce emissions is labeled as Phase 1, is slated for initiation in 2020. By addressing facility inefficiencies, users will reduce costs and by reducing energy use, they will reduce greenhouse gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). To encourage industry to make the sizable investments required to improve energy efficiency, the City is creating an Urban Renewal Program designed to offset some of those costs. Applicants would be eligible for up to a 50% match for eligible energy efficiency improvements. While upfront costs are significant, companies that make energy efficiency improvements will begin to see an immediate return by a reduction of their energy costs. Over time, the cumulative reduction in carbon emissions required to power the buildings will be better for the planet. The Scott Six Industrial Area was established in 1997 to attract new business, boost business retention and expansion, and retain and attract new jobs to the area. The base year value was set in 2001 for a tax increment financing rebate project with Owens -Brockway for an expansion. Those rebates ended in 2009 and since then, the taxable valuation of the area has increased by more than $45M, and is now creating an unused available tax increment of more than $1.36 million each year. Time is of the essence, however, as the sunset for this TI F district is FY 2023, leaving only 2 fiscal years from which to collect increment. The project amount detailed in the Amendment #2 of $2.7 million would allow for the maximum use of available increment, but likely would not approach the full amount. This tax increment, generated from taxes paid by property owners in this industrial area, would be used for matching funds on qualified industrial energy efficiency improvements. Industries would apply for the funds, projects would be vetted by professionals or contractors in the energy efficiency industry, and enter into a development agreement subject to City Council approval. A Resolution of Necessity (resolution #20-166) to consider Amendment #2 to the Scott Six Urban Renewal Plan was adopted by City Council on July 7, 2020. On July 10, 2020 a meeting notice and invitation were sent for a consultation with the City of Iowa City and the other taxing entities, Johnson County and the Iowa City Community School District, concerning the proposed Amendment #2 to the Scott Six Urban Renewal Area. The consultation was held on July 17, 2020 at 11:00 a.m. via the Zoom meeting platform. Duane Van Hemert represented the Iowa City community School District. No one from the Johnson County Board of Supervisors attended. State law requires that the taxing entities must submit any written recommendations for modification regarding the proposed division of revenue within 7 days after the consultation. There were no submissions. On July 16, 2020, notice of a Public Hearing to be held August 4, 2020 on Amendment #2 to the Scott Six Urban Renewal Plan was published in the Iowa City Press Citizen. ATTACHMENTS: Description Resolution Amendment #2 Scott 6 URP STATE OF IOWA ) ) SS JOHNSON COUNTY ) I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 20-187 which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 4th day of August 2020, all as the same appears of record in my office. Dated at Iowa City, Iowa, this 7th day of August 2020. 'a"0000 )'4S4A..QaD"ZQ Kellie k. Fruehling City Clerk fires 410 EAST WASHINGTON STREET • IOWA CITY, IOWA 52240-1826 9 (319) 356-5000 • FAX (319) 356-5009 Prepared by: Wendy Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 3565248 RESOLUTION NO. 20-187 Resolution approving Amendment No. 2 to the Scott Six Urban Renewal Plan to add projects to the Urban Renewal Area. WHEREAS, on July 7, 2020, City Council adopted a resolution of necessity (Res. No. 20-166) contemplating an amendment to the Scott Six Urban Renewal Plan to facilitate reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency, said amendment being the 2nd amendment thereto, and WHEREAS, pursuant to Res. No. 20-166, consultation with affected taxing entities was duly held and all required responses to the recommendations made by the affected taxing entities, have been timely made as set forth in the report of the Economic Development Coordinator filed herewith and incorporated herein by the reference, which report is in all respects approved; and WHEREAS, pursuant to said Res. No. 20-166, a public hearing was held after due and proper notice of said public hearing was given, as provided by law, by timely publication in the Iowa City Press Citizen. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: Section 1. This Council finds that Amendment No. 2 to the Scott Six Urban Renewal Plan conforms to the general plan for the development of the City as a whole; will not result in the displacement of families; and, does not contain open land to be acquired by the City; and, Section 2. That Amendment No. 2 is hereby approved and adopted as the "Amendment No. 2 to the Scott Six Urban Renewal Plan for the Scott Six Urban Renewal Area"; and the City Clerk is hereby directed to file a certified copy of said Amendment No. 2 with the proceedings of this meeting. Section 3. That the Scott Six Urban Renewal Plan for the Scott Six Urban Renewal Area, as amended herein, shall be in full force and effect from the date of this resolution until the later of the date of termination set forth in the Plan, as amended, or the date on which payment of all obligations issued or advances made to carry out the purposes thereof shall be fully provided for. Said Amendment No. 2 shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded in the manner provided by law. -1- Resolution No. 20-187 Page 2 PASSED AND APPROVED this 4th day of August 2020. Mayor ATTEST: City Jerk '^ / APPROVED: City Attorney (Sara Greenwood Hektoen — 07/27/2020) -2- Resolution No. Page I 20-187 It was moved by Salih and seconded by Thomas Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner the Urban Renewal Plan for the - Scott -Six Urban Renewal Area Amendment No. 2 June 2020 Amendment No. 1, 2011 Original, 1997 SECTION 1 -INTRODUCTION The Urban Renewal Plan for the Scott -Six Urban Renewal Area, as amended, is being amended to add climate change goals and add a proposed project to be undertaken in the Area. The Scott -Six Industrial Area was originally adopted in 1997 pursuant to resolution 97-255, and amended in 2011 pursuant to Resolution 11-260 to add more land to the area, update objectives, activities and add projects. The base valuation of the area will be unchanged by this Amendment. SECTION 2 — URBAN RENEWAL GOALS AND OBJECTIVES The Urban Renewal Goals and Objectives previously set forth in the Original Plan and Amendment 1 remain unchanged by this Amendment. This Amendment No. 2 adds the goal of reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency. In 2007, the City of Iowa City took an important step toward addressing climate change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. In 2017, the City formed a Climate Action Steering Committee to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the Committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets and declared a Climate Crisis. The average commercial building wastes about 30% of the energy it consumes. By capturing inefficiencies, users can reduce costs. By reducing energy use, users also reduce greenhouse gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). Reducing greenhouse gases released into the atmosphere is an effective way to stem climate change and results in a cleaner, healthier environment. The amendment to this plan seeks to assist users achieve those goals. SECTION 3 — DESCRIPTION OF THE URBAN RENEWAL AREA The legal description of the area is attached hereto as Attachment No. 1. SECTION 4 — AREA DESIGNATION 2 This area remains an economic development area, as that term is defined in the Iowa Code Chapter 403. SECTION 5 — PROPOSED URBAN RENEWAL PROJECTS The eligible urban renewal projects under this Urban Renewal Plan include: Development Agreements Enter into development agreements with industrial users in the Urban Renewal Area to provide economic development assistance for projects that include improvements to the facilities making them more energy efficient. The proposed Urban Renewal Projects contemplated by this Amendment No. 2 may require evaluation by a qualified third -party engineering firm to determine and recommend the optimal energy efficiency solutions for industrial companies. Projects may range from adjustments to existing systems to the installation of new systems. They may include a change -over from natural gas to electric energy to the installation of solar panels to reduce carbon emissions. Project Date Estimated Cost Rationale Energy efficiency 2020 — sunset $2,700,000 To reduce carbon improvements at emissions Industrial properties SECTION 6 — DEBT 1. FY21 Constitutional Debt Limit: $342,894,916 2. Current general obligation debt: $54,850,000 3. Proposed amount of indebtedness to be incurred: Although a specific amount of tax increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds) for projects over time has not yet been determined, it is anticipated that the cost of the Proposed Urban Renewal Activities and Proposed Projects identified in Section 5 above will not exceed $2.6 million. In no event will debt be incurred that would exceed the City's debt capacity. It is further expected that loans, advances, indebtedness or bonds to be incurred for the Proposed Project or subsequent projects, including interest on the same, will be financed in whole or in part with tax increment revenues from the Urban Renewal Area. The City Council will consider each request for financial assistance or a project proposal on a case-by-case basis to determine if it is in the City's best interest to participate. SECTION 7 — CONFORMANCE WITH LAND USE POLICY AND ZONING ORDINANCES The Amendment is consistent with the Iowa City Comprehensive Plan, including the Southeast District Plan. SECTION 8 — URBAN RENEWAL PLAN AMENDMENTS If the City of Iowa City desires to amend this Plan, it may do so in conformance with applicable state and local laws. SECTION 9 — EFFECTIVE PERIOD This Urban Renewal Plan Amendment #2 will become effective upon its adoption by the City Council. Notwithstanding anything to the contrary in the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan shall remain in effect until terminated by the City Council, and the use of incremental property tax revenues, or the "division of revenue,' as those words are used in Chapter 403 of the Code of Iowa, will be consistent with Chapter 403 of the Iowa Code. SECTION 10 — REPEALER Any parts of the previous Plan, as previously amended, in conflict with this Amendment are hereby repealed. SECTION 11 — SEVERABILITY CLAUSE If any part of the Amendment is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan as a whole or the previous amendments to the Plan, or any part of the plan not determined to be invalid or unconstitutional. 13 Attachment #1 Legal Description Commencing at the Southwest Corner of Section 19, Township 79 North, Range 5 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa; Thence NOO°03'29"W, along the West Line of the Southwest Quarter of said Section 19, a distance of 254.86 feet, to a point on the Northerly Right -of -Way Line of U.S. High -way No. 6 and the Point of Beginning; Thence continuing NOO°03'29"W, along said West Line, 404.57 feet, to a point on the Easterly Right -of - Way Line of Scott Boulevard; Thence Northeasterly, 386.13 feet, along the Easterly Right -of - Way Line of Scott Boulevard and a 1481.54 foot radius curve, concave Northwesterly, whose 385.04 foot chord bears N07°23'39"E; Thence N00°03'29"E, along said Right -of -Way Line, 1605.27 feet, to a point on the North Line of said Southwest Quarter, Thence NOW 18'56"W, along said Right -of -Way Line, 579.87 feet, to a point on the South Right -of -Way of the Heartland Rail Corporation; Thence S62°09'30"E, along said South Right -of -Way Line, 749.90 feet; Thence S00°03'29"E, 300.25 feet; Thence S11 °43'38"W, 1240.47 feet; Thence SO6°00'20"W, 173.94 feet; Thence S02°29'45"W, 230.00 feet; Thence S87'30'1 5"E' 266.70 feet; Thence S02°29'45"W, 861.87 feet; Thence Southwesterly, 16.33 feet, along a 300.00 foot radius curve, concave Southeasterly, whose 16.33 foot chord bears S01°12'12"W; Thence S00°21'22"E, 65.50 feet, to a point on the South Line of said Southwest Quarter, Thence S89°38'37"W, along said South Line, 209.90 feet, to a point on the Northerly Right -of -Way Line of U.S. Highway No. 6; Thence Northwesterly 175.60 feet, along said Right -of -Way Line and a 5830.00 foot radius curve, concave Southwesterly, whose 175.59 foot chord bears N59°59'08"W; Thence N60°50'54"W, along said Right -of -Way Line, 337.19 feet, to the Point of Beginning. Said tract of land contains 38.93 acres, and is subject to easements and restrictions of record hmb Commencing at the Southwest Corner of Section 19, Township 79 North, Range 5 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa; Thence NOO°03'29"W, along the West Line of the Southwest Quarter of said Section 19, a distance of 254.86 feet, to a point on the Northerly Right -of -Way Line of U.S. High -way No. 6; Thence S60°50'54"E, along said Northerly Right -of -Way Line, 337.19 feet; Thence Southeasterly 175.60 feet, along said Right - of -Way Line and a 5830.00 foot radius curve, concave Southwesterly, whose 175.59 foot chord bears S59°59'08"E, to a point on the South Line of said Southwest Quarter; Thence N89038'37"E, along said South Line, 209.90 feet, to the Point of Beginning; Thence NOO°21'22"W, 65.50 feet; Thence Northeasterly, 16.33 feet, along a 300.00 foot radius curve, concave Southeasterly, whose 16.33 foot chord bears N01 °12'12"E; Thence NO2°29'45"E, 861.87 feet; Thence N87°30'15"W, 266.70 feet; Thence NO2°29'45"E, 230.00 feet; Thence N06°00'20"E, 173.94 feet; Thence N11 °43'38"E, 1240.47 feet; Thence N00003'29"W, 300.25 feet, to a point on the Southerly Right -of -Way Line of Heartland Rail Corporation; Thence S62°09'30"E, along said Southerly Right -of -Way Line, 2261.25 feet, to a point on the East Line of said Southwest Quarter; Thence S00°00'45"E, along said East Line, 990.27 feet; Thence S89°38'37"W, 670.00 feet; Thence S00°00'45"E, 813.00 feet to a point on the South Line of said Southwest Quarter; Thence S89°38'37"W along said South Line, 1380.99 feet, to the point of Beginning. Said tract of land contains 101.57 acres, and is subject to easements and restrictions of record AND Amendment No. 1 Area The NW quarter of the NE quarter of Section 30, Township 79N, Range 5W of the Fifth Principal Meridian, Johnson County, Iowa; also including the west 5.32 acres of the NE quarter of the NE quarter of said Section 30; and including all of the NW, NE, and SW quarters of the SE quarter of Section 19, Township 79N, Range 5W of the Fifth Principal Meridian, Johnson County, Iowa, and all of the SE quarter of the SE quarter of said Section 19 lying north of the southern right-of- way boundary of the Iowa Interstate Railroad; thence beginning at the SE corner of Nathaniel's Addition of the County of Johnson County, which is on the centerline of 420th Street, west 40'; thence W295', N338', E295', and S386'; also that portion of land lying south of the Iowa Interstate Railroad to the centerline of 420th Street between the western boundary of Nathaniel's Addition and the eastern boundary of the SW quarter of the SE quarter of said Section 19. Con Item Number: 13. AL CITY OF IOWA CITY =c�- Q T�q� COUNCIL ACTION REPORT August 4, 2020 Resolution approving Amendment No. 3 to the Sycamore & First Avenue Urban Renewal Plan to add projects to the Urban Renewal Area. Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: Recommendations: Staff: Approval Commission: Attachments: Resolution Amendment No. 3 to the Sycamore and First Avenue Urban Renewal Plan Executive Summary: This Amendment will allow the City to enter into agreements with industrial users to provide economic development assistance for projects that improve the energy efficiency of industrial users located within the urban renewal area. The goal is to reduce carbon emissions required to power their operations and help the City achieve a 45% reduction in carbon emissions by 2030. According to the Accelerating Iowa City Climate Actions report, industrial users account for 27% of Iowa City's carbon emissions and commercial users account for another 20%. Due to the urgency of meeting emissions goals and the extent of industrial and commercial energy usage, the City has established a program to directly assist local business as they pursue greater building efficiency and emissions reduction measures. Background /Analysis: On August 6, 2019, Council declared a Climate Crisis and called on staff to accelerate action to address the climate crisis and limit global warming. To that end, Council adopted the I PCC (Intergovernmental Panel on Climate Change) targets of a 45% reduction in carbon emissions by 2030 and reaching "net -zero" by 2050. In 2007, the City of Iowa City took its first step to address Climate Change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. The next year a Climate Action Steering Committee was formed to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets, declared a Climate Crisis, and requested a report to accelerate the City's identified climate actions. The resulting 2020 Accelerating Climate Actions report has a "Building: Incentives" section which included the following action: "Launch a TIF -funded climate action incentive program aimed at reducing industrial energy consumption." This initiative, geared towards energy efficiency, renewable energy sources, electrification and site improvements that will help reduce emissions is labeled as Phase 1, is slated for initiation in 2020. By addressing facility inefficiencies, users will reduce costs and by reducing energy use, they will reduce greenhouse gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). To encourage industry to make the sizable investments required to improve energy efficiency, the City is creating an Urban Renewal Program designed to offset some of those costs. Applicants would be eligible for up to a 50% match for eligible energy efficiency improvements. While upfront costs are significant, companies that make energy efficiency improvements will begin to see an immediate return by a reduction of their energy costs. Over time, the cumulative reduction in carbon emissions required to power the buildings will be better for the planet. The Sycamore and First Avenue Urban Renewal Area was established in 2000 to attract new business, boost business retention and expansion, and retain and attract newjobs to the area. The base year value was set in 1999 for tax increment financing rebate projects with the Sycamore Mall and Plamor redevelopment. Those rebates ended in 2012. In 2003, the area was amended to add land including Procter & Gamble and the MidAmerican Energy properties, and in 2014, a second amendment was made for a new project with Iowa City Marketplace. That project has defaulted on their agreement, leaving unused available increment of approximately $440,000 in the single remaining fiscal year of the plan. The sunset for this TI F district is FY 2022, leaving one fiscal year from which to collect increment. The project amount detailed in the Amendment #3 of $425,000 would allow for nearly the full use of available increment. This tax increment, generated from taxes paid by property owners in this industrial area, would be used for matching funds on qualified industrial energy efficiency improvements. Industries would apply for the funds, projects would be vetted by professionals or contractors in the energy efficiency industry, and enter into a development agreement subject to City Council approval. A Resolution of Necessity (resolution #20-167) to consider Amendment #3 to the Sycamore and First Avenue Urban Renewal Plan was adopted by City Council on July 7, 2020. On July 10, 2020 a meeting notice and invitation were sent for a consultation with the City of Iowa City and the other taxing entities, Johnson County and the Iowa City Community School District, concerning the proposed Amendment #3 to the Sycamore and First Avenue Urban Renewal Area. The consultation was held on July 17, 2020 at 11:00 a.m. via the Zoom meeting platform. Duane Van Hemert represented the Iowa City community School District. No one from the Johnson County Board of Supervisors attended. State law requires that the taxing entities must submit any written recommendations for modification regarding the proposed division of revenue within 7 days after the consultation. There were no submissions. On July 16, 2020, notice of a Public Hearing to be held August 4, 2020 on Amendment #3 to Sycamore and First Avenue Urban Renewal Plan was published in the Iowa City Press Citizen. ATTACHMENTS: Description Resolution Amendment #3 Syc/First Ave U R P I r City of VAN STATE OF IOWA ) ) SS JOHNSON COUNTY ) I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 20-188 which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 4th day of August 2020, all as the same appears of record in my office. Dated at Iowa City, Iowa, this 7th day of August 2020. Kellie I Ftuehling City Clerk fires 410 EAST WASHINGTON STREET • IOWA CITY, IOWA 52240-1826 • (319) 356-5000 • FAX (319) 356-5009 13. Prepared by: Wendy Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. 20-188 Resolution approving Amendment No. 3 to the Sycamore & First Avenue Urban Renewal Plan to add projects to the Urban Renewal Area. WHEREAS, on July 7, 2020, City Council adopted a resolution of necessity (Res. No. 20-167) contemplating an amendment to the Sycamore & First Avenue Urban Renewal Plan to facilitate reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency, said amendment being the 3rd amendment thereto, and WHEREAS, pursuant to Res. No. 20-167, consultation with affected taxing entities was duly held and all required responses to the recommendations made by the affected taxing entities, have been timely made as set forth in the report of the Economic Development Coordinator filed herewith and incorporated herein by the reference, which report is in all respects approved; and WHEREAS, pursuant to said Res. No. 20-167, a public hearing was held after due and proper notice of said public hearing was given, as provided by law, by timely publication in the Iowa City Press Citizen. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: Section 1. This Council finds that Amendment No. 3 to the Sycamore & First Avenue Urban Renewal Plan conforms to the general plan for the development of the City as a whole; will not result in the displacement of families; and, does not contain open land to be acquired by the City; and, Section 2. That Amendment No. 3 is hereby approved and adopted as the "Amendment No. 3 to the Sycamore & First Avenue Urban Renewal Plan for the Sycamore & First Avenue Urban Renewal Area"; and the City Clerk is hereby directed to file a certified copy of said Amendment No. 2 with the proceedings of this meeting. Section 3. That the Sycamore & First Avenue Urban Renewal Plan for the Sycamore & First Avenue Urban Renewal Area, as amended herein, shall be in full force and effect from the date of this resolution until the later of the date of termination set forth in the Plan, as amended, or the date on which payment of all obligations issued or advances made to carry out the purposes thereof shall be fully provided for. Said Amendment No. 3 shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded in the manner provided by law. -1- Resolution No. 20-188 Page 2 PASSED AND APPROVED this 4th day of August 2020. .eA or ATTEST City Clerk (-f� / \ APPROVEDV' City Attorney (Sara Greenwood Hektoen — 07/27/2020) -2- Resolution No. 20-188 Page 3 It was moved by Thomas and seconded by Bergus Resolution be adopted, the and upon roll call there were: AYES: NAYS: x x x x x x x ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner Urban Renewal Plan for the Sycamore and First Avenue Urban Renewal Area Amendment No. 3 June 2020 Amendment No. 2, 2014 Amendment No. 1, 2003 Original, 2000 1 SECTION 1 - INTRODUCTION The Urban Renewal Plan for the Sycamore and First Avenue Urban Renewal Area, as amended, is being amended to add climate change goals and add a proposed project to be undertaken in the Area. The Sycamore and First Avenue Area was originally adopted in 2000 pursuant to resolution 00-295; amended in 2003 pursuant to Resolution 03-157 to add land to the area; and amended in 2014 pursuant to Resolution 14-301 to add a project. The base valuation of the area will be unchanged by this Amendment. SECTION 2 — URBAN RENEWAL GOALS AND OBJECTIVES The Urban Renewal Goals and Objectives previously set forth in the Original Plan and Amendments No. 1 and 2 remain unchanged by this Amendment. This Amendment No. 3 adds the goal of reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area improve energy efficiency. In 2007, the City of Iowa City took an important step toward addressing climate change by signing the U.S. Mayor's Climate Protection Agreement. In 2008, the Council agreed to participate in the "Cities for Climate Protection Campaign." In 2009, the City completed the first greenhouse gas inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014 and the Council set greenhouse gas emissions reduction goals in 2016. In 2017, the City formed a Climate Action Steering Committee to provide input on the development of a Climate Action Plan. Comprised of and representing many stakeholders in the community, the Committee sought and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a) increasing energy efficiency in businesses and b) increasing on-site renewable energy systems and electrification. In 2019, Council increased the carbon emission reduction targets and declared a Climate Crisis. The average commercial building wastes about 30% of the energy it consumes. By capturing inefficiencies, users can reduce costs. By reducing energy use, users also reduce greenhouse gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). Reducing greenhouse gases released into the atmosphere is an effective way to stem climate change and results in a cleaner, healthier environment. The amendment to this plan seeks to assist users achieve those goals. SECTION 3 — DESCRIPTION OF THE URBAN RENEWAL AREA The legal description of the area is attached hereto as Attachment No. 1 SECTION 4 — AREA DESIGNATION This area remains an economic development area, as that term is defined in the Iowa Code Chapter 403. SECTION 5 — PROPOSED URBAN RENEWAL PROJECTS The eligible urban renewal projects under this Urban Renewal Plan include: Development Agreements Enter into development agreements with industrial users in the Urban Renewal Area to provide economic development assistance for projects that include improvements to the facilities making them more energy efficient. The proposed Urban Renewal Projects contemplated by this Amendment No. 2 may require evaluation by a qualified third -party engineering firm to determine and recommend the optimal energy efficiency solutions for industrial companies. Projects may range from adjustments to existing systems to the installation of new systems. They may include a change -over from natural gas to electric energy to the installation of solar panels to reduce carbon emissions. Project Date Estimated Cost Rationale Energy efficiency 2020— FY22 $425,000 To reduce carbon improvements at emissions Industrial properties SECTION 6 — DEBT 1. FY21 Constitutional Debt Limit: $342,894,916 2. Current general obligation debt: $54,850,000 3. Proposed amount of indebtedness to be incurred: Although a specific amount of tax increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds) for projects over time has not yet been determined, it is anticipated that the cost of the Proposed Urban Renewal Activities and Proposed Projects identified in Section 5 above will not exceed $2.6 million. In no event will debt be incurred that would exceed the City's debt capacity. It is further expected that loans, advances, indebtedness or bonds to be incurred for the Proposed Project or subsequent projects, including interest on the same, will be financed in whole or in part with tax increment revenues from the Urban Renewal Area. The City Council will consider each request for financial assistance or a project proposal on a case-by-case basis to determine if it is in the City's best interest to participate. SECTION 7 — CONFORMANCE WITH LAND USE POLICY AND ZONING ORDINANCES The Amendment is consistent with the Iowa City Comprehensive Plan, including the Southeast District Plan. SECTION 8 — URBAN RENEWAL PLAN AMENDMENTS If the City of Iowa City desires to amend this Plan, it may do so in conformance with applicable state and local laws. SECTION 9 — EFFECTIVE PERIOD This Urban Renewal Plan Amendment #3 will become effective upon its adoption by the City Council. Notwithstanding anything to the contrary in the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan shall remain in effect until terminated by the City Council, and the use of incremental property tax revenues, or the "division of revenue," as those words are used in Chapter 403 of the Code of Iowa, will be consistent with Chapter 403 of the Iowa Code. SECTION 10 — REPEALER Any parts of the previous Plan, as previously amended, in conflict with this Amendment are hereby repealed. SECTION 11— SEVERABILITY CLAUSE If any part of the Amendment is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan as a whole or the previous amendments to the Plan, or any part of the plan not determined to be invalid or unconstitutional. 11 Attachment #1 Legal Description Commencing at the Southeast corner of the Northeast quarter of Section 23, Township 79N, Range 6W, in accordance with the Records of the Johnson County Auditor's Office; thence West along the South line of the Northeast quarter of Section 23 to the Southwest corner of the Northeast quarter of Section 23; thence 33 feet to a point perpendicular on the Western Right - of -Way line of Sycamore Street, thence Northerly along said Right -of -Way line to the intersection of the Western Right -of -Way line of Sycamore Street and the Northern Right -of - Way line of U.S. Highway 6, which is the Point of Beginning. Thence Northerly along the Western Right -of -Way line of Sycamore Street to the Southeastern corner of Johnson County Auditor's Parcel 10-14-386-003, thence 66 feet to a point perpendicular on the Eastern Right -of -Way line of Sycamore Street; thence Northerly along the Eastern Right -of -Way line of Sycamore Street to the Northwestern corner of Johnson County Auditor's Parcel 10- 14-457 -004; thence Easterly 147 .61 feet to an angle point of said Parcel; thence Northeasterly 413.83 feet; thence Northerly 57.36 feet to the Southern Right -of -Way line of Lower Muscatine Road; thence Northwesterly along the Southern Right -of -Way line of Lower Muscatine Road to a point perpendicular 33 feet from the Western corner of Johnson County Auditor's Parcel 10-14- 452-004; thence Northeasterly 256.82 feet to the Northern corner of said parcel; thence Southeasterly 40 feet to the Eastern corner of said parcel; thence Northeasterly along the property line of Johnson County Auditor's Parcel 10-14-452-002 to its Northern corner; thence Southeasterly 150 feet along the property line of said parcel to its Eastern corner; thence Southwesterly 224.9 feet to the intersection of said parcel's Southern corner and the Northern Right -of -Way line of Lower Muscatine Road. Thence Southeasterly along the Northern Right -of -Way line of Lower Muscatine Road to the Northern Right -of -Way line of Mall Drive; thence Northeasterly 1533.09 feet along the Northern Right -of -Way line of Mall Drive to the Southern Right -of -Way line of the Iowa Interstate Railroad; thence Southeasterly along said Right -of -Way line to its intersection with the Eastern line of Section 14. Thence South along the Eastern line of Section 14 to its intersection with the Eastern Right - of -Way line of First Avenue; thence Southwesterly along said Right -of -Way line to the Western corner of Johnson County Auditor's Parcel 10-13-353-003; thence Easterly to the Eastern line of Section 14; thence South along the Eastern line of Section 14 to the Northwest corner of Johnson County Auditor's Parcel 10-13-353-002; thence Easterly 176 feet to the Eastern property line of said parcel; thence Southwesterly along the Eastern property line of Parcel 10- 13-353-002 to it's Southeast corner; thence Northwesterly to the Eastern line of Section 23; thence South along the Eastern line of Section 23 to the Southeast corner of the Johnson County Auditor's Parcel described as 10-23-103, 001 through 029, then Southwesterly 988.76 feet to the Northern Right -of -Way line of Lower Muscatine Road, crossing said Right -of -Way line to the intersecting point of the Southern Right -of -Way line of Lower Muscatine Road and the Northeastern corner of Johnson County Auditor's Parcel number 10-23-105-003; thence Southwesterly 157.9 feet to the Northern Right -of -Way line of U.S. Highway 6; thence Northwesterly 307 .82 feet to the intersection of the Northern Right -of -Way line of U.S. Highway 6 and the Eastern Right -of -Way line of First Avenue; projecting across the First Avenue Right - of -Way along the Northern Right -of -Way line of U.S. Highway 6 to the intersection of the Western Right -of -Way line of First Avenue and the Northern Right -of -Way line of U.S. Highway 6; thence Westerly along the Northern Right -of -Way line of U.S. Highway 6 a distance of 1123.13 feet to its intersection with the Eastern Right -of -Way line of Sycamore Street, projecting across the Sycamore Street Right -of -Way along the Northern Right -of -Way of U.S. Highway 6 to the intersection of the Western Right -of -Way line of Sycamore Street and the Northern Right -of - Way line of U.S. Highway 6, to the Point of Beginning. Said parcel contains approximately 61 acres. And including a tract of land described as follows (2003 Amendment): Commencing at the northeast corner of Mall Drive Subdivision, which is the point of beginning. Thence northwesterly along the southern boundary of the Iowa Interstate Railway, to the northeast corner of Lafferty subdivision. Thence southerly along the eastern boundary of Lafferty Subdivision, to the centerline of Lower Muscatine Road. Thence southeasterly along said centerline of Lower Muscatine Road to a point on an extension of the westerly right-of-way of Sycamore Street. Thence southerly along said westerly right-of-way of Sycamore Street to the southeast corner of Johnson County Auditor Parcel #10-14-386-003; thence 66 feet to a point perpendicular on the eastern right-of-way line of Sycamore Street; thence northerly along the eastern right-of-way line of Sycamore Street to the northwestern corner of Johnson County Auditor's Parcel 10-14-457-004; thence easterly 147.61 feet to an angle point of said Parcel; thence northeasterly 413.83 feet, thence northerly 57.36 feet to the southern right-of-way line of Lower Muscatine Road; thence northwesterly along the southern right-of-way line of Lower Muscatine Road to a point perpendicular 33 feet from the western comer of a parcel formerly known as Johnson County Auditor's Parcel #10-14-452-004; thence northeasterly 223.82 feet to the northern corner of said parcel; thence southeasterly 40 feet to the eastern corner of said parcel; thence northeasterly along the property line of said parcel formerly known as Johnson County Parcel #10-14-452-002 to its northern corner; thence southeasterly 150 feet along the property line of said Parcel to its eastern corner; thence southwesterly 224.9 feet to the intersection of said Parcel's southern corner and the northern right-of-way line of Lower Muscatine Road. Thence southeasterly along the northern right-of-way line of Lower Muscatine Road to the northern right-of-way line of Mall Drive; thence northeasterly 1,533.09 feet along the northern right-of-way line of Mall Drive to the southern right-of-way line of the Iowa Interstate Railroad, which is the point of beginning. Said parcel contains approximately 51 acres. CITY OF 1O)FA CITY 5ouinrASF P pi Ox r9R ti.%J-��-C HE3063 Au ndm m ® Wginarurwn Rorw" Ano &A?