REQUEST FOR PROPOSAL SINGLE-FAMILY HOMEOWNER OCCUPIED REHABILITATION PROGRAM SERVICES JULY Tacoma Community Redevelopment Authority
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1 REQUEST FOR PROPOSAL SINGLE-FAMILY HOMEOWNER OCCUPIED REHABILITATION PROGRAM SERVICES JULY 2013 Tacoma Community Redevelopment Authority City of Tacoma Community and Economic Development 747 Market Street Room 836 Tacoma, WA Office: Fax:
2 Table of Contents I. INTRODUCTION... 1 a) Background... 1 b) Purpose of RFP... 2 c) Period of Contract... 2 d) Eligible Proposers... 2 e) Questions... 2 f) Deadline... 3 II. RFP CONDITIONS... 4 a) Contingencies... 4 b) Modifications... 4 c) Proposal Submission... 4 d) Incurred Costs... 4 e) Negotiations... 4 f) Acceptance or Rejection of Proposals... 5 g) Formal Agreement... 5 h) Final Authority... 5 III. SCOPE OF PROGRAM... 5 a) Program Functions... 6 b) Proposal Contents... 7 c) Fee Proposal... 8 IV. PROPOSAL SUBMISSION... 8 a) Threshold Requirements... 8 b) Submission Requirements... 9 V. SELECTION a) Factors and Maximum Points...10 i
3 ii EXHIBITS EXHIBIT A CERTIFICATION STATEMENT EXHIBIT B SINGLE FAMILY HOME OWNER OCCUPIED REHABILITATION LOAN PROGRAM ELIGIBLE IMPROVEMENTS EXHIBIT C EXHIBIT D EXHIBIT E INSURANCE CERTIFICATE REQUIREMENTS STANDARD OPERATING PROCEDURES (SOP) FOR THE ADMINISTRATION OF THE PROGRAM AND USE OF PROGRAM FUNDS MINIMUM BUILDING STANDARDS
4 I. INTRODUCTION a) Background In its efforts to meet the City of Tacoma s (City) current and future housing needs, the Tacoma Community Redevelopment Authority (Authority) adheres to the primary goals and objectives of the City s Five-Year Consolidated Plan: 1. Provide decent housing for all residents of the community through ongoing support of a continuum of housing opportunities; 2. Provide a suitable living environment through maintenance and improvement of existing neighborhoods, addressing service deficiencies and implementing the City s growth and development concepts; and 3. Expand economic opportunities by strengthening the downtown and making neighborhoods more livable for its residents, and through creation and retention of employment opportunities, especially for low and moderate income persons. In addition to these Consolidated Plan goals, the TCRA is interested in addressing the following objectives as it relates to the rehabilitation of the City s existing single family housing stock: 1. Provide TCRA resources in an effective and efficient manner wherein the City can have a more significant impact in various neighborhoods by addressing life safety issues primarily as a function of single family rehabilitation on an annual basis. 2. Allow for the timely and consistent expenditure of TCRA funds and completion of the rehabilitation of a set number of homes within a program year cycle. 3. Seek capable local vendors to complete these projects through a third party contract. 4. Focus TCRA staff on their core competencies which include contract development and administration and insuring the program adheres to all federal, state and local regulatory requirements. 1
5 2 Single-family homeownership and neighborhood revitalization is a key component of the TCRA s overall Strategy. Presently, the TCRA maintains an Affordable Housing Fund (AHF) designed to enhance residential neighborhoods and promote home ownership. The AHF is capitalized through an annual allocation of Community Development Block Grant (CDGB) and HOME Investment Partnership Program (HOME) funds. Both of these sources are awarded to the City based on a formula allocation from the U.S. Department of Housing and Urban Development (HUD). b) Purpose of RFP The TCRA is seeking proposals with price quotes from qualified firms and organizations that possess demonstrated experience providing the services described within this RFP and a working knowledge of the associated federal funding requirements that underlay the TCRA s program. c) Period of Contract The term of the contract resulting from this RFP shall commence when the TCRA executes the Professional Services Agreement (Agreement) and continue for a one-year contracting period after the execution date, with a TCRA option to extend the Agreement for an additional two one-year terms. The TCRA anticipates the term of the Agreement to commence sometime in September d) Eligible Proposers 1. The Proposer must not have caused a government authority to violate affordability/regulatory agreements of any City, Agency, or other housing agencies, nor have a record of discriminatory practices for at least the past five (5) years. 2. The Proposal must include team members with a successful track record in providing the types of services as defined within the Scope of Services section contained within this RFP document. Previous projects must be comparable, as determined by the TCRA in its sole discretion, to those presented in the project. 3. Proposals may be withheld from recommendation by the TCRA Administrator to its board members for consideration, in the event any proposing party of the application is currently in arrears or delinquent in payment of any obligation to the TCRA or is deemed to be in noncompliance with any TCRA contractual requirements. 4. The TCRA retains sole discretion to approve or reject Proposers based on a review of past performance. e) Questions Questions regarding the contents of this RFP must be submitted via to
6 3 Copies of the RFP may be obtained from Shannon Johnson at (253) f) Deadline 1. Questions regarding this RFP must be submitted in writing ( ed questions are preferred). Questions must be received by Monday, August 12 th, Written inquiries must be clearly marked Tacoma Community Redevelopment Authority Single-Family Homeowner Occupied Rehabilitation Program Services RFP. All inquiries must refer to the page and applicable RFP section to which the question relates. Proposers are encouraged to submit their questions regarding this RFP as soon as possible. Copies of the written inquiries and their answers will be posted online at as an addendum to the RFP and recipients of this RFP will be notified of the addendum. TCRA reserves the right to decline to answer specific questions. Responses to questions, in either written or oral form, will not be deemed to amend the RFP unless and until the response is included in a formal addendum to the RFP. Submit formal proposals including a statement of qualifications evidencing the minimum standards required herein and any proposed special conditions regarding your engagement in this matter to the attention of Shannon Johnson, Contract and Program Auditor. Submissions are due on or before Wednesday, September 11th, 2013, at 4:00 p.m. PST at the TCRA offices. Three (3) copies of the proposal must be enclosed in a sealed envelope identified clearly with the words: Proposal for Single-Family Homeowner Occupied Rehabilitation Program Services RFP Do Not Open With Regular Mail, addressed to: Request for Proposals Proposal for Single-Family Homeowner Occupied Rehabilitation Program Services RFP Do Not Open With Regular Mail Shannon Johnson, Contract and Program Auditor City of Tacoma Community and Economic Development Department 747 Market Street, Room 836 Tacoma, WA Proposals will NOT be accepted by or facsimile. All proposals must be received at the address listed in Section 1f, no later than 4:00 PM Wednesday, September 11th, Facsimile or electronically transmitted proposals will not be accepted since they will not contain original signatures. Postmarks will not be accepted in lieu of actual
7 4 receipt. Late proposals will not be opened and incomplete proposals may not be considered at the discretion of the TCRA. The TCRA reserves the right to waive any irregularities or informalities with the submittal of proposals pursuant to this RFP and to determine the basis at its sole discretion for the selection of the firm to enter into one or more service agreements with the TCRA. Acceptance of a proposal does not constitute a contract or commitment of any kind, nor does it obligate the TCRA to award funds or to make a commitment of any kind. Copies of the RFP may be obtained from Shannon Johnson at (253) or via the City s website at II. RFP CONDITIONS a) Contingencies This RFP does not commit the TCRA to award a contract. The TCRA reserves the right to accept or reject any or all proposals, if the TCRA determines it is in the best interest of the TCRA to do so. The TCRA will notify all proposers in writing in the event the TCRA elects to reject all proposals or to cancel this RFP process. b) Modifications The TCRA reserves the right to issue amendments to this RFP. c) Proposal Submission To be considered, all proposals must be submitted in the manner set forth in this RFP. It is the proposer s responsibility to ensure that its proposal arrives on or before the specified time. d) Incurred Costs This RFP does not commit the TCRA to pay any costs incurred by proposers in the preparation of a proposal in response to this request and proposers agree that all costs incurred by proposers in developing their individual proposals are the responsibility of each proposer and are considered a general marketing expense. e) Negotiations The TCRA may require the recommended proposer(s) to participate in negotiations and to submit a not-to-exceed price estimate, technical
8 5 information or other revisions of their proposals as may result from negotiations. f) Acceptance or Rejection of Proposals Proposals shall remain open, valid and subject to acceptance anytime within sixty (60) days after the proposal opening subject to the satisfactory negotiation of a final contract with prices and other acceptable terms of providing the requested services. g) Formal Agreement In the event a proposer or proposers is/are selected as a result of this RFP process, one or more proposers may be required to enter into a formal agreement(s) with the TCRA. This RFP sets forth some of the general provisions which will be included in the final contract. In submitting a response to this RFP, each proposer will be deemed to have agreed to each clause unless the proposal identifies an objection and the TCRA agrees to a change of language in writing. h) Final Authority The final authority to recommend the award of a contract shall be at the sole discretion of the TCRA administrator. Final authority authorizing the execution of a contract with any recommended proposer(s) shall remain with the TCRA Board. III. SCOPE OF PROGRAM The TCRA is seeking to execute an agreement for key functions of its owner occupied single family rehabilitation effort utilizing Community Development Block Grant (CDBG) Funds. A t t h i s t i m e t he function required of the TCRA consists of the following: A. Program(s): Single Family Homeowner Occupied Rehabilitation Loan (the Loan Program ) The Loan Program provides loans to qualified homeowners i n a n a m o u n t not t o e x c e e d $25,000. The loan funds are available for the correction of health and safety code violations and related habitability issues. To be eligible, an applicant s income must not exceed 80% of the AMI for Pierce County, adjusted for family size. The homeowner will be required to sign a covenant that requires them to o c c u p y the home and maintain the property otherwise the loan must be paid back.
9 6 a) Program Functions The functions include, but are not limited to: Source and manage a minimum number of loans per year, based on the capacity of the respondent; Work with the TCRA in identifying residential properties and property owners within specified citywide target areas; Work within the framework of a TCRA-led Application Review Committee in the loan approval process; Monitor and maintain the inclusion of eligible improvements permitted under the program (see Exhibit B); Administer and implement the Program as defined in the executed professional services agreement; Process program applications and applicable loan documents, to include, but not limited to a Deed of Trust ( DOT ), Promissory Note ( Note ), Homeowner Written Agreement ( Homeowner Agreement ) and Request for Notice, all referred to throughout the rest of this document as Loan Documents ; including obtaining and verifying all necessary property owner and property qualification documents and presenting a complete application and Loan Documents packet to TCRA staff for review and approval of the project. Obtain appraisals and work write-ups to be reviewed and approved by City staff; Coordinate the processing of TCRA contracts and Loan Documents to be reviewed and approved by City staff; Prepare and complete work write-ups, cost estimates and bid packages for the rehabilitation of each property to be reviewed and approved by City staff; Inspect eligible properties to determine the type of health and safety and code violation repair work needed; Ensure that all work performed is performed by pre-qualified State licensed contractors; Solicit bids for the rehabilitation work; Regularly inspect and monitor the rehabilitation work in progress; Compile invoices and payment requests and submit to City staff for review and approval; Coordinate final inspection and recommend payment of the contract retention to City staff; Obtain a lien release in the form of a Conditional Waiver and Release Upon Final Payment from Contractors and subcontractors prior to releasing final payment; Maintain accurate property and homeowner qualification, scope of work, permit records, Code Enforcement activity, etc. records for each project by site address;
10 7 Provide quarterly financial and program update reports to the TCRA; On request of the TCRA, coordinate inspection site visits to ensure that the work is performed properly and in accordance with applicable codes (Uniform Building Code, Uniform Plumbing Code, Uniform Mechanical Code, National Electrical Code and Health and Safety) and City Ordinances in accordance with the City of Tacoma and TCRA Minimum Building Standards (see Exhibit F) ; Make sure General Contractor and/or subcontractors have obtained all required City permits; Make sure General Contractor and/or subcontractors are not on the federal contractor debarment list; and Provide any and all services required by the Administrator of the TCRA or his/her designee, in order to effectively implement and complete the services under this Loan Program. b) Proposal Contents As it relates to your application, please respond to the following questions: 1. The first page of the Proposal shall be the Certification statement attached as Exhibit A. This document needs to be filled out and signed by the Lead Project Manager of the Proposer s Team. 2. Provide a timeline for identifying and performing all rehabilitation activities on properties identified within the City. This timeline should cover the period beginning with the identification of the property through to the final inspection to be conducted by the homeowner, proposers and TCRA Staff. 3. Identify how you would market the Loan Program to income eligible homeowners. 4. Provide complete written responses to the information requests listed below. Please be as complete as possible otherwise your response may be considered as non-responsive, in which case, your application may be disqualified. a. Provide a list of clients, public or private, that you have provided the services described in the Scope of Work for over the last f i v e (5) years. b. List the number of years your organization has provided rehabilitation services for residential properties that did not exceed one unit. c. Identify the ability of your firm to locate and analyze residential properties for possible rehabilitation under the Loan Program. Specifically, describe the process you would undertake in identifying and recommending properties for rehabilitation to the TCRA. d. Identify projects previously conducted o n b e h a l f o f other municipalities utilizing the services included within this RFP. Include within your identification the name of the municipality, dates of service
11 8 c) Fee Proposal and scope of services performed. e. List any professional designations or licenses you possess associated with the work being requested. For verification purposes, please provide a copy of the licenses and contact information of the licensing authority, including a phone number. f. Describe your experience working with federal CDBG program funds; g. Describe your experience in preparing loan documents for single family home owners utilizing federal affordable housing funds such as CDBG Program funds. h. Provide your understanding of rehabilitation work conducted on housing built prior to 1978 and the process needed to adhere to lead based paint safe work practices. i. Provide your experience working on rehabilitation projects that imposed a federal Section 3 requirement. If you can report on such experience, describe the project and the outcome. j. Specify whether your organization has been involved in any legal actions associated with the services being requested within the past five (5) years. If so, please provide adequate detail in your response. Provide a not-to-exceed administrative fee schedule on a per-unit and/or per door basis associated with the services being proposed. This fee will be in addition to the $25,000 cap the TCRA has placed on the rehabilitation of each home. IV. PROPOSAL SUBMISSION All proposals must meet the threshold requirements detailed below. If a proposal does not meet these threshold requirements, the Proposer will be advised that the proposal will not be reviewed further. a) Threshold Requirements 1. Have at least five (5) years of experience working with government agencies; local agencies preferred. 2. Be familiar with procedural and auditing requirements of CDBG funding sources. 3. Must not have violated affordability/regulatory agreements of the City, the TCRA or other housing agencies, nor have a record of discriminatory practices for at least the past five (5) years. 4. Possess a valid City Business License or have the ability to obtain one. 5. Current insurance policies meeting the Insurance Certificate Requirements attached as Exhibit C to this RFP.
12 9 6. Experience in the last five (5) years in working with local governments in rehabilitating residential properties. This experience includes having an understanding of government regulations in administering the various programs and their funding sources. 7. Ability to provide references of the above listed requirements as evidence of satisfactory experience and performance. 8. Reference letters from at least two (2) separate municipal jurisdictions and one (1) private business entity (i.e., contractor, supplier, bank, etc.) attesting to the amount and quality of the work completed as it relates to the programs contained within this RFP. Proposers must meet the above requirements for the application to be reviewed. Note: It is the sole responsibility of the Proposer to ensure that threshold requirements are met. Furthermore, the selection of any Proposals for Single Family Home Owner Occupied Rehabilitation Services will be further subject to the approval of the Board of the TCRA. b) Submission Requirements All Proposals must be typed and comply with the requirements detailed in this RFP. Any revisions or additions to the proposal after submission will not be accepted unless expressly requested for clarification purposes by the TCRA. Incomplete Proposals will not be considered for funding. It is the responsibility of the Proposer to ensure completeness of their submittal. Any False, misleading, incomplete or deceptively unresponsive statements in connection with a proposal shall be sufficient cause for rejection of the proposal. The evaluation and determination in this area shall be in the sole judgment of the TCRA and this judgment shall be final. The T C R A may require additional information for the determination of the Proposer s qualification to provide the proposed services. Submission of a Proposal shall constitute acknowledgment and acceptance of all terms and conditions contained in this RFP. The Proposal must be submitted in the legal name of the corporation or entity. Proposals must be signed by an authorized representative of the Proposer organization or entity who has legal authority to bind the entity in contract with the TCRA. Lack of compliance with legal or administrative submission requirements may lead to disqualification. Proposals that are disqualified will not be reviewed and rated. Proposers may withdraw their proposal at any time prior to the proposal
13 10 deadline. accepted. Proposals received after the specified time and date will not be V. SELECTION It is the intent of TCRA staff to review each qualified proposal and submit recommendations to the TCRA Board in an expedited manner (not to exceed 4 weeks from the time of initial receipt of all responses). The selected proposer will be expected to review and/or complete the following documents and submit to the TCRA for consideration prior to the execution of the Agreement. 1. Submission of valid insurance of the selected proposer which would include current insurance policies meeting the Insurance Certificate Requirements attached as Exhibit C to this RFP. 2. Standard Operating Procedures (SOP) for the administration of the program and use of program funds. An SOP template is attached as Exhibit D to this RFP for further reference. 3. Familiarity with all TCRA Loan Documents which will be completed by the selected proposer on behalf of the TCRA. Once signed by the property owner these documents would be forwarded to the TCRA for final execution and recordation. Upon execution of an Agreement between the TCRA and a chosen Contractor, a complete homebuyer loan packet will be provided and training on their proper use and completion will be offered by the TCRA staff. 4. Familiarity with all TCRA Minimum Building Standards document attached as Exhibit E to this RFP for further reference. 5. Marketing information and any direct marketing materials. Factors and Maximum Points: An internal TCRA committee will evaluate each response to this RFP. Respondents will be scored according to the evaluation criteria set out below. Respondents with the highest scores may be invited to interview with the TCRA committee. Final selection will be made following these interviews (if necessary). SCORING CRITERIA Experience and qualifications managing SFR rehabilitation loan programs Experience working with federal funds, specifically CDBG funds Cost competitiveness of fees Completeness of consultant s submittal package TOTAL POSSIBLE 20 points 15 points 10 points 5 points 50 Points
14 11 EXHIBIT A CERTIFICATION Certification: (to be completed by all Proposers on their letterhead). The undersigned hereby certifies that the statements contained in the application package are true and complete to the best of the applicant s knowledge, and further, understands that this is a public document open to public inspection. Original Signature: Name (Print): Title (Print): Company Name (Print): Address (Print): Date (Print):
15 EXHIBIT B Single Family Home Owner Occupied Rehabilitation Loan Program Eligible Improvements Eligible Improvements Permitted Under the Program The following types of improvements are permitted; work conducted to be primarily for the correction of health and safety code violations and related habitability issues: Roof replacement; Exterior and interior painting; Window replacement; Carpet replacement and/or flooring replacement; Heating and air system replacements; Electrical work; Sewer repair or sewer installation; Termite repairs; Onsite exterior concrete flatwork such as sidewalks, driveways, curbs, gutters, hand railings or ramps; Door or window screens repairs or replacements; Tub, shower, toilet repairs or replacements; Foundation or structural repairs; and Fencing and/or retaining walls.
16 EXHIBIT C Insurance Certificate Requirements Please furnish the Purchasing Division with a Certificate of Insurance with the following liability limits based on the contract amount: CONTRACT AMOUNT $25,000 and Under $500,000 and Under Over $500,000 LIABILITY LIMITS $500,000 Combined Single Limit $1,000,000 Per Occurrence / $2,000,000 Aggregate $5,000,000 Total Coverage A. Umbrella excess liability may be used to reach the limits stated above. Coverage must include: 1. Comprehensive General Liability 2. Automobile Liability - Hired and Non-Owned 3. Contractual Coverage 4. Broad Form Property Damage 5. Underground Explosion and Collapse Hazard (if necessary by the nature of the work) 6. Any additional coverage specifically required by the City's specification B. The following general requirements apply: 1. Insurance carrier must be authorized to do business in the State of Washington. 2. Coverage must include personal injury, protective and employer liability. 3. Contractor must provide with the certificate (a) evidence of the amount of any deductible or self-insured retention under the policy, and (b) policy endorsement(s) that verify compliance with the additional insured and the primary/non-contributory requirements specified in Section C. 1 and C. 2. below. 4. It is the contractor's responsibility to keep an up-to-date Certificate of Insurance on file with the City throughout the contract. 5. Contractor s insurance must be primary and non-contributory over any insurance the City may maintain, that is, any such City insurance shall be excess to limits stated in the certificate. C. The following statements are required on the Certificate of Insurance: 1. "The City of Tacoma is named as an additional insured" ("as respects a specific contract" or "for any and all work performed with the City" may be included in this statement). 2. "This insurance is primary and non-contributory over any insurance or self-insurance the City may have" ("as respects a specific contract" or "for any and all work performed with the City" may be included in this statement). 3. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, endeavor to mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out. See example below. DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS The below listed certificated holder is added as an additional insured as respects any and all work performed with the City (or as respects project ). This insurance is primary over any insurance or self-insurance the City may have for any and all work performed with the City (or as respects project ). CERTIFICATE HOLDER ADDITIONAL INSURED; INSURER LETTER: CANCELLATION CITY OF TACOMA PO BOX TACOMA WA Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will endeavor to mail 30 days written notice to the certificate holder named to the left, but failure to do so shall impose no obligation or liability of any kind upon the company, it s agents or representatives.
17 EXHIBIT D Standard Operating Procedures (SOP) for the Administration of the Program and Use of Program Funds
18 EXHIBIT E Minimum Building Standards
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