HomeMy WebLinkAboutItem 11 - Authorization to issue a RFP for a Below Market Rate Housing Program Administrator Department Name: Community Development
Cost Center: 4008
For Agenda of: May 4, 2021
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Cara Vereschagin, Housing Coordinator
SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR A
CONSULTANT TO SERVE AS THE CITY’S BELOW MARKET RATE
(BMR) HOUSING PROGRAM ADMINISTRATOR
RECOMMENDATION
1. Authorize the issuance of a Request for Proposals (RFP) for a Below Market Rate (BMR)
Program Administrator (Attachment A); and
2. Authorize the City Manager to enter into a consultant services agreement if proposals are
received within the available budget of $117,000 annually for the project.
DISCUSSION
Below Market Rate Program History and Portfolio
The City’s first Inclusionary Housing Ordinance was adopted in 1999 and since that time, the
City has made great strides in ensuring that a percentage of all new housing units are affordable
to income-eligible households, defined as extremely low, very-low, low, and moderate income.
These homes remain at Below Market Rate (BMR) prices for the required term through deed-
restrictions, covenants, and affordability agreements. Over the past several years, the City's
BMR portfolio has grown substantially, and staff has determined that the best way to effectively
accomplish the management and administration of BMR housing going forward is through a
consultant. As a result, staff is recommending issuance of an RFP to solicit outside consultant
expertise to oversee BMR housing administration, including ownership and rental units, and
administration of the City’s First-Time Homebuyer Loan program.
1. BMR Ownership Units
There are approximately 73 BMR homeownership units within the City’s portfolio. The
most recent additions are five moderate-income units within the South Morros neighborhood,
of which three have sold in the past eight months and the other two are expected to sell by
the end of summer. These units are restricted through provisions included in the Deed of
Trust, Promissory Note, and Resale Restriction Agreement that are recorded on title of each
property when it is sold. These documents, among other items, dictate the sale/resale
process, the allowable sales price, income qualifications of subsequent buyers, refinancing
provisions, and repayment requirements due upon sale or default.
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Management of these units by a BMR Administrator under contract with the City is expected
to provide a higher level of service to homeowners and potential homeowners under the
program. Currently, the City has one staff member who has the training and knowledge to
assist with these complex real estate transactions, while simultaneously engaging in other
housing programs, including the Housing Major City Goal workplan, Housing Element
programs, and coordination of new affordable housing development and financing. The use
of a consultant to perform this work will ensure timely processing of purchase and sale
agreements, refinancing, subordination agreements, and other time sensitive work.
2. BMR Rental Units
The City has approximately 106 affordable rental units scattered throughout the City. These
units are located within market-rate projects and require close oversight since they are not
normally managed by an experienced affordable housing administrator/provider. These units
are typically built by private developers, consistent with the Inclusionary Housing Ordinance,
and are secured as affordable through deed-restrictions (or affordability
covenants/agreements) entered into by the City and the project owners. The units subject to
these agreements are proposed to be managed by the BMR Administrator.
The City also has a healthy inventory of rental units managed by non-profit housing agencies
(i.e., HASLO, Peoples’ Self-Help Housing, etc.), which were partially developed by City
financing mechanisms (i.e., the Affordable Housing Fund, Community Development Block
Grants, Impact Fee Deferral loans). These units are within complexes that are 100%
affordable due to tax credit and/or other subsequent federal, state, and local requirements,
and thus have multiple deed-restrictions recorded on title of the properties due to the criteria
stipulated by those various funding sources. Because these units are managed by
experienced affordable housing administrators, the City is not proposing to have the
proposed BMR Administrator manage these units—compliance monitoring and coordination
with non-profit partners that manage these projects will stay within the scope of work of City
staff.
3. First-Time Homebuyer/BEGIN Program Loans
The City also has various first-time homebuyer assistance loans utilizing the State grant
BEGIN Program and City Affordable Housing Fund dollars. Currently, there are 11 active
loans and approximately $200,000 available for issuance. Funds are issued as 30-year loans,
that are executed via a Promissory Note, evidenced by a Deed of Trust that is recorded on
title of the property purchased. Repayment is due upon sale, may be made at the request of
the homeowner, or is due upon completion of the loan term. The BMR Administrator will
monitor existing loans and improve City marketing of the program to make additional loans
within the City’s balance of available funding.
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Anticipated Scope of Services for BMR Program Administrator:
The RFP solicits the services of a BMR program administrator to oversee the administration of
the City’s BMR ownership and rental units, as well as the First-Time Homebuyer Loan program.
It is anticipated that the BMR administrator will be responsible for the following:
1. BMR Program Administration Setup
a. Review, update (if necessary), and transfer the City’s existing BMR Interest List database
to consultant administration which will be owned by the City.
b. Review and organize San Luis Obispo BMR homeowner files, loan files, and the City’s
existing digital inventory and create a system for ongoing administration and monitoring.
c. Review existing BMR Agreement templates and suggest modifications that are in line
with industry best practices.
d. Update existing flow charts and protocols for BMR home transfers, loan
payoff/subordination, default remedies, and other processes associated with BMR
ownership transactions.
e. Review and develop recommendations to establish new City impact fees associated with
costs of BMR Program transactions.
f. Update City Affordable Housing webpage with content and information pertaining to
updated/amended policies and procedures for the BMR Program, online application
forms and other relevant information.
2. BMR Program Administration
a. BMR Inquiries (ongoing): The BMR Administrator will be responsible for handling
calls, emails, and in-person inquiries from current housing portfolio loan holders and
respond in a timely manner.
b. BMR Eligibility and Interest List (ongoing): The BMR Administrator will maintain a
list of qualified buyers and interested prospective buyers.
c. BMR Program Reports: The BMR Administrator will provide semi-annual updates to
staff and the City Council on the general status of the BMR program administration,
including:
i. General Program activity (e.g., BMR inquiries)
ii. BMR compliance. See item #3
iii. Loan activity. See item #4
iv. Current inventory of affordable units (subject to formal Agreement with the City)
v. Other information as needed for mandated State reporting
3. Annual BMR Compliance Monitoring
a. Documentation: Administrator will administer the program and assure Affordability
Deed Restrictions are recorded and followed by all parties as applicable for each
property.
b. BMR Homeowner Certification: The BMR Administrator will coordinate with
homeowners on an annual basis to certify that the original buyer continues to comply
with the signed BMR Agreement including living in the BMR home as their principal
residence. The BMR Administrator will work with the City to remedy potential BMR
defaults in accordance with the BMR Agreement.
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c. BMR Renter Certification: The BMR Administrator will coordinate with property
managers, tenants, and the Housing Authority of San Luis Obispo (HASLO) on an annual
basis to certify that all BMR units are occupied by renters who continue to meet income
requirements. The BMR Administrator will also ensure that the appropriate rent and
utilities are being charged given annual updates to the City’s Affordable Housing
Standards, based on State income limits for our area.
4. Existing Loan Administration
a. The BMR Administrator will maintain an updated database, to be owned by the City, of
all first-time-homebuyer and other housing loans (borrower name and address, loan
amount, interest rate, loan term, loan distribution date and due date). This database will
also include principal and interest received for loans that have been paid off, as well as
any principal written off as a result of foreclosure or other default.
b. The BMR Administrator will monitor existing first-time-homebuyer and other housing
loans annually to ensure that the borrower remains in compliance with the loan
agreement (e.g., current homeowner insurance, original buyer continues to reside on
property). In case of default, the BMR Administrator will contact the owner and work
with the City to see that the loan is repaid.
c. The BMR Administrator will work with the City to process all paperwork and legal
recordings required when first-time homebuyer loans and other housing loans are paid off
or refinanced (as needed basis).
5. BMR Home Sales/Resales (as needed basis)
a. BMR Marketing: The BMR Administrator will work with each Developer and/or the
City to market the availability of new and resale BMR homes to eligible households who
have expressed interest in the BMR program. BMR Administrator will also be
responsible ensuring developers’ compliance with sale provisions dictated in recorded
Development Agreements (i.e. San Luis Ranch and Avila Ranch) and Affordable
Housing Agreements. This task will include providing marketing materials in both
English and Spanish to City staff for the City’s website.
b. Interest Rates, Homeowner’s Association Fees, and Sales Price: Upon request, the
BMR Administrator will supply the City with current mortgage interest rates and other
information necessary to amend (if necessary) sales prices and/or interest rates of new
BMR homes and existing BMR homes being offered for resale.
c. Homeowner Eligibility: The BMR Administrator will submit the data on each eligible
applicant to the City for approval prior to formalizing any Agreement.
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6. BMR Programs: The BMR Administrator will work with City staff to recommend, develop
and implement programs. City Council will approve any new programs under this task.
a. Administrator will regularly update program guidelines and program materials in
conjunction with City staff to reflect the Administrator’s administrative process for
Program Administration including, but not limited to: applications, program pamphlets,
rent & resale calculations (i.e. Affordable Housing Standards), selection processes,
vacancies, sale and resale of units, refinancing requests, collection of Agency fees and
other applicable fees, and default monitoring/resolution process. Administrator’s
objective will be to work alongside Agency Staff to incorporate “learnings” from the
team’s collective history with housing affordability programs in California.
Next Steps
If approved, the RFP will be published on the City’s website and distributed to consultants
experienced in administering BMR Programs on behalf of local governments. After the
submission date has closed, staff will review proposals received and interview consultants, to
ultimately transfer the administration of the City’s BMR Portfolio. Contract award will occur
after July 1 if the budget for the proposed consultant services is approved as part of the 2021 -23
Financial Plan. Timing to get a BMR Administrator onboard this summer is critical, as staff
anticipating having little availability this fall amidst “grant season” and the Inclusionary Housing
policy update work effort will be underway.
Policy Context
The activity to consider outside consultant services to administer the City’s BMR Program is
currently identified in the 2021-23 Financial Plan and related Housing and Homelessness Major
City Goal workplan.
Public Engagement
Staff will notice the RFP release in alignment with proper procedures for public bidding as
mandated in the Municipal Code and Public Engagement Manual. Staff will also circulate the
notice to interested parties and publish the notice to various digital media channels.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Years: 2021-2023
Funding Identified: Yes
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Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Local Revenue
Measure G-20
$117,000 $234,00
Total $117,000 $234,000
The activity to consider outside consultant services to administer the City’s BMR Program is
currently identified in the 2021-2023 Financial Plan, under Significant Operating Program
Change (SOPC) – Housing and Homelessness Major City Goal (Consultant Contract) and
$117,000 has been estimated annually for this effort.
ALTERNATIVES
1. Provide different direction to staff. The City Council can provide additional or different
direction to staff regarding the scope of work, based on the identified issues and
considerations, and continue authorization of the RFP.
2. Continue this item. Continue the discussion regarding the authorization of the RFP and
provide staff direction on additional needed or necessary changes.
Attachments:
a - DRAFT Below Market Rate Program Administrator Request for Proposals
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The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Proposals for Below Market Rate Program Administrator
Spec. No. SLO-BMR-2021
The City of San Luis Obispo is requesting sealed proposals for a Below Market Rate (BMR) Housing
Program Administrator over a 2-year term (with an option to extend for another 2 years). All proposals
must be received by the Department of Finance (990 Palm Street) by 3:00 p.m. on June 4, 2021.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will
be required to complete a free registration proposal using BidSync (https://www.bidsync.com/bidsync-
app-web/vendor/register/Login.xhtml).
All proposals must be received via BidSync by the Department of Finance at or before June 4, 2021, when
they will be opened electronically in BidSync.
Proposals received after said time may not be considered. The preferred method of submission is
electronically via BidSync, but if you wish to send a hard copy, to guard against premature opening, each
proposal shall be submitted to the Department of Finance in a sealed envelope plainly marked with the
proposal title, project number, proposer name, and time and date of the proposal opening. Proposals
shall be submitted using the forms provided in the project package.
An optional pre-proposal conference will be held to answer any questions that the prospective proposers
may have regarding the City's request for proposals. [Pre-proposal conferences are optional but should
be included in the notice if one is held]
May 26, 2021 at 1:00 p.m.
Via Teleconference
Teleconferencing details TBD
Project packages and additional information may be obtained at the City’s BidSync website at
www.BidSync.com.
Please contact Dan Clancy at dclancy@slocity.org with any questions. For technical issues with BidSync,
please contact BidSync customer help at [800-990-9339]
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TABLE OF CONTENTS
A. INTRODUCTION ............................................................................................................................... 1
B. SCOPE OF WORK ............................................................................................................................. 2
C. PROJECT SCHEDULE ......................................................................................................................... 4
D. PROJECT BUDGET ............................................................................................................................ 4
E. GENERAL TERMS AND CONDITIONS ................................................................................................ 4
F. CONTRACT AWARD AND EXECUTION .............................................................................................. 5
G. CONTRACT PERFORMANCE ............................................................................................................. 6
H. SPECIAL TERMS AND CONDITIONS .................................................................................................. 9
I. PROPOSAL CONTENT ..................................................................................................................... 11
J. PROPOSAL REVIEW ....................................................................................................................... 13
K. FORM OF AGREEMENT .................................................................................................................. 15
L. INSURANCE REQUIREMENTS ......................................................................................................... 17
M. PROPOSAL SUBMITTAL FORM – SAMPLE .................................................................................. 18
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A. INTRODUCTION
The City’s first Inclusionary Housing Ordinance was adopted in 1999 and since that time, the City has made
great strides in ensuring that a percentage of all new housing units are affordable to income-eligible
households, defined as extremely-low, very-low, low, and moderate income. These homes are insured to
remain at prices “below the market rate (BMR)” through deed-restrictions, covenants, and affordability
agreements. Over the past several years, the City's BMR Portfolio has grown substantially, and staff is
experiencing that they do not have the capacity nor resources to effectively accomplish the management
and administration of this effort moving forward, especially given the high volume of affordable housing
development on the horizon, estimated to be approximately 160 units. It is for those reasons the City of
San Luis Obispo is soliciting outside consultant expertise to oversee the administration of this program for
BMR ownership and rental units, as well as the First-Time Homebuyer Loan program.
BMR Ownership Units
There are approximately 73 BRM homeownership units within the City’s Inclusionary Housing Portfolio.
The most recent additions are 5 units within the South Morros neighborhood, of which 3 have sold in
the past eight months and the other 2 are expected to sell by the end of summer. These units are
restricted with a mix of Deeds of Trust, Promissory Notes, and Resale Restriction Agreements that are
recorded on title of the properties. These documents, among other items, dictate the sale/resale
process, the allowable sales price, income qualifications of subsequent buyers, refinancing provisions,
and repayment requirements due upon sale or default.
BMR Rental Units
The City has approximately 106 affordable rental units scattered throughout the City in majority market-
rate complexes. These units were built consistent with the Inclusionary Housing Ordinance and are
secured affordable through deed-restrictions (or affordability covenants/agreements) entered into by
the City and the owners of the overall development. The units subject to these agreements are
proposed to be managed by the BMR Administrator Consultant.
The City also has a healthy inventory of rental units managed by non-profit housing agencies (i.e. HASLO,
Peoples’ Self-Help Housing, etc.), which were partially developed by City financing mechanisms (i.e. the
Affordable Housing Fund, Community Development Block Grants, Impact Fee Deferral loans). These
units are within complexes that are 100% affordable due to tax credit and/or other subsequent federal,
state, and local requirements, and thus have multiple deed-restrictions recorded on title of the
properties due to the criteria stipulated by those various funding sources. Because of the complexity of
these compliance requirements, the City is not proposing to have the BMR Administrator Consultant
manage these units and will stay within staff’s purview to monitor.
First-Time Homebuyer/BEGIN Program Loans
The City also has various first-time homebuyer assistance loans utilizing the State grant BEGIN Program
and City Affordable Housing Fund dollars. Currently, there are 11 active loans and approximately
$200,000 available for issuance. Funds are issued as 30-year loans, that are executed via a Promissory
Note, evidenced by a Deed of Trust that are recorded on title of the property purchased, which are due
upon sale or at the request of the homeowner. The City anticipates the BMR Administrator Consultant
will be able to monitor and market these loans given their anticipated expertise in loan management.
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B. SCOPE OF WORK
The subject RFP solicits the services of a BMR Program Administrator consultant to oversee the
administration of the City’s BMR ownership and rental units, as well as the First-Time Homebuyer Loan
program. It is anticipated that administrator will be responsible for the following:
1. BMR Program Administration Setup
a. Review, update (if necessary), and transfer the City’s existing BMR Interest List database to
consultant administration which will be owned by the City.
b. Review and organize San Luis Obispo BMR homeowner files, loan files, and the City’s existing
digital inventory and create a system for ongoing administration and monitoring.
c. Review existing BMR Agreement templates and suggest modifications that are in line with
industry best practices.
d. Update existing flow charts and protocols for BMR home transfers, loan payoff/subordination,
default remedies, and other processes associated with BMR ownership transactions.
e. Review and develop recommendations to establish new City impact fees associated with costs of
BMR Program transactions.
f. Update City Affordable Housing webpage with content and information pertaining to
updated/amended policies and procedures for the BMR program, online application forms and
other relevant information.
2. BMR Program Administration
a. BMR Inquiries (ongoing): The BMR Administrator will be responsible for handling calls, emails,
and in-person inquiries from current housing portfolio loan holders and respond in a timely
manner.
b. BMR Eligibility and Interest List (ongoing): The BMR Administrator will maintain a list of
qualified buyers and interested prospective buyers.
c. BMR Program Reports: The BMR Administrator will provide semi-annual updates to staff and
the City Council on the general status of the BMR program administration, including:
i. General Program activity (e.g., BMR inquiries)
ii. BMR compliance. See item #3
iii. Loan activity. See item #4
iv. Current inventory of affordable units (subject to formal Agreement with the City)vii. Other
information as needed for State reporting
3. Annual BMR Compliance Monitoring
a. Documentation: Administrator will administer the program and assure Affordability Deed
Restrictions are recorded and followed by all parties as applicable for each property.
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b. BMR Homeowner Certification: The BMR Administrator will coordinate with homeowners on an
annual basis to certify that the original buyer continues to comply with the signed BMR
Agreement including living in the BMR home as their principal residence. The BMR
Administrator will work with the City to remedy potential BMR defaults in accordance with the
BMR Agreement.
c. BMR Renter Certification: The BMR Administrator will coordinate with property managers,
tenants, and the Housing Authority of San Luis Obispo (HASLO) on an annual basis to certify that
all BMR units are occupied by renters who continue to meet income requirements. The BMR
Administrator will also ensure that the appropriate rent and utilities are being charged given
annual updates to the City’s Affordable Housing Standards, based on HUD income limits.
4. Existing Loan Administration
a. The BMR Administrator will maintain an updated database, to be owned by the City, of all first-
time-homebuyer and other housing loans (borrower name and address, loan amount, interest
rate, loan term, loan distribution date and due date). This database will also include principal
and interest received for loans that have been paid off, as well as any principal written off as a
result of foreclosure or other default.
b. The BMR Administrator will monitor existing first-time-homebuyer and other housing loans
annually to ensure that the borrower remains in compliance with the loan agreement (e.g.,
current homeowner insurance, original buyer continues to reside on property). In case of
default, the BMR Administrator will contact the owner and work with the City to see that the
loan is repaid.
c. The BMR Administrator will work with the City to process all paperwork and legal recordings
required when first-time homebuyer loans and other housing loans are paid off or refinanced
(as needed basis).
5. BMR Home Sales/Resales (as needed basis)
a. BMR Marketing: The BMR Administrator will work with each Developer and/or the City to
market the availability of new and resale BMR homes to eligible households who have
expressed interest in the BMR program. BMR Administrator will also be responsible ensuring
Developers compliance with sale provisions dictated in recorded Development Agreements (i.e.
San Luis Ranch and Avila Ranch) and Affordable Housing Agreements. This task will include
providing marketing materials in both English and Spanish to City staff for the City’s website.
b. Interest Rates, Homeowner’s Association Fees, and Sales Price: Upon request, the BMR
Administrator will supply the City with current mortgage interest rates and other information
necessary to amend (if necessary) sales prices and/or interest rates of new BMR homes and
existing BMR homes being offered for resale.
c. Homeowner Eligibility: The BMR Administrator will submit the data on each eligible applicant to
the City for approval prior to formalizing any Agreement.
6. BMR Programs: The BMR Administrator will work with City staff to recommend, develop and
implement programs. City Council will approve any new programs under this task.
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a. Administrator will regularly update program guidelines and program materials in conjunction
with Agency staff to reflect the Administrator’s administrative process for Program
Administration including, but not limited to: applications, program pamphlets, rent & resale
calculations (i.e. Affordable Housing Standards), selection processes, vacancies, sale and resale
of units, refinancing requests, collection of Agency fees and other applicable fees, and default
monitoring/resolution process. Administrator’s objective will be to work alongside Agency Staff
to incorporate “learnings” from the team’s collective history with Affordability Programs in
California.
C. PROJECT SCHEDULE
As this Project will be ongoing, no activity and scheduled dates are necessary. Instead, contractor will
comply with expectations and reporting deadlines outlined in the Scope of Work and subsequent
agreement to be executed upon selection of contractor. Please refer to Section I – Proposal Review
below for a tentative schedule regarding the review process for proposals received. Note that
administration of the BMR Program is due to commence on August 16, 2021.
D. PROJECT BUDGET
The administration of the City’s BMR Program is budgeted at $117,000 annually for the next two City
fiscal years (Year1: July 1, 2021 – June 30, 2022; Year 2: July 1, 2022 - June 30, 2023). Upon the end of
the two-year period, the City will consider extending contract budget for subsequent 2-year period.
E. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall
meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue
of its proposal submittal, the bidder acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the
Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To
guard against premature opening, the proposal should be clearly labeled with the proposal title,
project number, name of bidder, and date and time of proposal opening. No FAX or emailed
submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are
not required until contract award. The City’s insurance requirements are detailed in Section E.
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4. Proposal Quotes and Unit Price Extension . The extension of unit prices for the quantities
indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces
provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The
Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount
stated by any bidder for any item are not in agreement, the unit price alone will be considered as
representing the bidder’s intention and the proposal total will be corrected to conform to the
specified unit price.
5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior
to the time specified for the proposal opening, by submitting a written request to the Director of
Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.
No proposal received after the time specified or at any place other than that stated in the “Notice
Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared
publicly. Bidders or their representatives are invited to be present at the opening of the
proposals.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that
has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on
materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from
quoting prices to other bidders submitting proposals.
7. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged but will
be permitted. However, any such oral communication shall not be binding on the City.
F. CONTRACT AWARD AND EXECUTION
8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a
proposal and accept the other, except to the extent that proposals are qualified by specific
limitations. See the “special terms and conditions” in Section C of these specifications for
proposal evaluation and contract award criteria.
9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide,
in a timely manner, all information that the City deems necessary to make such a decision.
10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within ten (10) calendar days after notice of the award has been sent by
mail to it at the address given in its proposal. The contract shall be made in the form adopted by
the City and incorporated in these specifications.
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G. CONTRACT PERFORMANCE
11. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Section E of these specifications within 10 (ten) calendar days after
notice of contract award as a precondition to contract execution.
12. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license
& tax certificate before execution of the contract. Additional information regarding the City’s
business tax program may be obtained by calling (805) 781-7134.
13. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry
out and complete the work hereunder in compliance with all federal, state, county, city, and
special district laws, ordinances, and regulations.
14. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during its performance of the work.
15. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
16. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
17. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
18. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
19. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured
or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the
Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
20. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in the United
State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall
be employed in the performance of the work hereunder.
21. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination
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in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
22. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire,
earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor
due to federal government restrictions arising out of defense or war programs, then the time of
completion may, at the City’s sole option, be extended for such periods as may be agreed upon
by the City and the Contractor. In the event that there is insufficient time to grant such extensions
prior to the completion date of the contract, the City may, at the time of acceptance of the work,
waive liquidated damages that may have accrued for failure to complete on time, due to any of
the above, after hearing evidence as to the reasons for such delay, and making a finding as to the
causes of same.
23. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and
acceptance by the City of the materials, supplies, equipment, or services provided by the
Contractor (Net 30).
24. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done, and all materials furnished, if any,
shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve
Contractor of any of its obligations to fulfill its contract requirements.
25. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
26. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Contractor further covenants that, in the
performance of this work, no subcontractor or person having such an interest shall be employed.
The Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, the Contractor shall at all times be deemed an independent contractor
and not an agent or employee of the City.
27. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law
(including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall
indemnify, defend, and hold harmless the City, and its elected officials, officers, employees,
volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims,
liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs
of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to
perform its obligations under this Agreement or out of the operations conducted by Consultant,
including the City’s active or passive negligence, except for such loss or damage arising from the
sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a
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party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s
performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees
or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable
legal fees, incurred in defense of such claims.
(b) Non-design, construction Professional Services: To the extent the Scope of Services involve a
“construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall
apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to
California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold
harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City
Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations,
judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”),
arising out of the Consultant’s performance or Consultant’s failure to perform its obligations
under this Agreement or out of the operations conducted by Consultant, except for such loss or
damage arising from the active negligence, sole negligence or willful misconduct of the City. In
the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial
proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide
a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their
costs of defense, including reasonable legal fees, incurred in defense of such claims.
(c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope
of Services require Consultant to provide “design professional services” as those phrases are used
in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest
extent permitted by law (including, but not limited to California Civil Code Sections 2782 and
2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials,
officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims,
damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and
expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or
willful misconduct of Consultant, except to the extent caused by the sole negligence, active
negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any
subcontractor employed by Consultant shall be conclusively deemed to be the negligence,
recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In
the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial
proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide
a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their
costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event
shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s
proportionate percentage of fault. However, notwithstanding the previous sentence, in the event
one or more defendants is unable to pay its share of defense costs due to bankruptcy or
dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid
defense costs.
(d) The review, acceptance or approval of the Consultant’s work or work product by any
indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense
obligations. This Section survives completion of the services or the termination of this contract.
The provisions of this Section are not limited by and do not affect the provisions of this contract
relating to insurance.
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28. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
29. Termination for Convenience. The City may terminate all or part of this Agreement for any or no
reason at any time by giving 30 days written notice to Contractor. Should the City terminate this
Agreement for convenience, the City shall be liable as follows: (a) for standard or off -the-shelf
products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase
price; (b) for custom products, the less of a reasonable price for the raw materials, components
work in progress and any finished units on hand or the price per unit reflected on this Agreement.
For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of
a reasonable price for the services rendered prior to termination, or the price for the services
reflected on this Agreement. Upon termination notice from the City, Contractor must, unless
otherwise directed, cease work and follow the City’s directions as to work in progress and finished
goods.
30. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in
writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the
contract immediately by written notice to the Contractor to said effect. Thereafter, neither party
shall have any further duties, obligations, responsibilities, or rights under the contract except,
however, any and all obligations of the Contractor’s surety shall remain in full force and effect,
and shall not be extinguished, reduced, or in any manner waived by the terminations thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed
from the beginning date in which the breach occurs up to the day it received the City’s Notice of
Termination, minus any offset from such payment representing the City’s damages from such
breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Contractor as may be set forth in the
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by the Contractor shall be based solely on the City’s assessment of the value of the work-
in-progress in completing the overall work scope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a
full and complete accounting of costs. In no event, however, shall the Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
H. SPECIAL TERMS AND CONDITIONS
1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms
and Conditions) of these specifications, the contract will be awarded to the lowest responsible,
responsive proposer.
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2. Sales Tax Reimbursement.
For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues.
Therefore, for bids from retail firms located in the City at the time of proposal closing for which
sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the
proposal by the City in calculating and determining the lowest responsible, responsive proposer.
3. Labor Actions.
In the event that the successful proposer is experiencing a labor action at the time of contract
award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves
the right to declare said proposer is no longer the lowest responsible, responsive proposer and to
accept the next acceptable low proposal from a proposer that is not experiencing a labor action,
and to declare it to be the lowest responsible, responsive proposer.
4. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Contractor) fails to enter into
the contract: the award will be annulled; any bid security will be forfeited in accordance with the
special terms and conditions if a proposer's bond or security is required; and an award may be
made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if
it were the party to whom the first award was made.
5. Contract Term
The supplies or services identified in this specification will be used by the City for up to one year.
The prices quoted for these items must be valid for the entire period indicated above unless
otherwise conditioned by the proposer in its proposal.
6. Contract Extension.
The term of the contract may be extended by mutual consent for an additional one -year, and
annually thereafter, for a total of four years.
7. Supplemental Purchases.
Supplemental Purchases. Supplemental purchases may be made from the successful proposer
during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For
these supplemental purchases, the proposer shall not offer prices to the City in excess of the
amounts offered to other similar customers for the same item. If the propose r is willing to offer
the City a standard discount on all supplemental purchases from its generally prevailing or
published price structure during the contract term, this offer and the amount of discount on a
percentage basis should be provided with the proposal submittal.
8. Contractor Invoices
The Contractor may deliver either a monthly invoice to the City with attached copies of detailed
invoices as supporting detail, or one lump-sum upon completion.
9. Non-Exclusive Contract.
The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as
well as any supplemental items, from other vendors during the contract term.
10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general
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quality levels. Such references are not intended to be restrictive. Proposals will be considered for
any brand that meets or exceeds the quality of the specifications given for any item. In the event
an alternate brand name is proposed, supplemental documentation shall be provided
demonstrating that the alternate brand name meets or exceeds the requirements specified
herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer,
and the City shall be the sole judge in making this determination.
11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and
conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis
Obispo by the successful proposer and received by the City within 90 days after authorization to
proceed by the City.
12. Start and Completion of Work. Work on this project shall begin immediately after contract
execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated
with City by mutual agreement.
13. Change in Work. The City reserves the right to change quantities of any item after contract award.
If the total quantity of any changed item varies by 25% or less, there shall be no change in the
agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of
25% shall be subject to negotiation with the Contractor.
14. Submittal of References. Each proposer shall submit a statement of qualifications and references
on the form provided in the RFP package.
15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any
past governmental agency bidding or contract disqualifications on the form provided in the RFP
package.
I. PROPOSAL CONTENT
Proposals must, at a minimum, contain the information listed below, and may include any other
information that the candidate feels will facilitate the City’s consideration.
1. Cover Letter. Please include a cover letter which includes your interest in administering the City
of San Luis Obispo’s BMR Program and any other information that you would like to highlight.
(MAXIMUM OF ONE PAGE)
2. Qualifications. Describe your firm’s experience and qualifications to administer San Luis Obispo’s
BMR Program, including processing Resale Restriction Agreements and Deeds of Trust; loan
subordination and payoff transactions; compliance monitoring and certification; transfers and
defaults. Include a list of jurisdictions for which you provide similar services. Provide an example
of your experience in dealing with compliance issues (i.e., steps taken, outcome, etc.). (MAXIMUM
OF THREE PAGES)
3. Program Administration. Provide a detailed discussion of how your firm will implement and
administer the BMR Program, including the protocol your firm will use for each of the tasks
identified in the Scope of Services. Include a description of the anticipated interaction between
your firm, the City, and BMR clients. Include an organizational chart which identifies the primary
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role of each team member (e.g., BMR inquiries, document preparation, monitoring, etc.).
(MAXIMUM OF SIX PAGES, NOT INCLUDING EXAMPLES)
a. Provide example documents used to perform annual monitoring of both rental and
ownership units.
b. Provide example application forms (pre-qualification, etc.) and helpful documents (e.g.,
FAQs, process, etc.) that an applicant would access on the dedicated webpage that would
be set up for Gilroy’s BMR program.
4. Cost.
a. Submit in a separate sealed envelope a cost estimate for each task in the Scope of Services
(e.g., fixed fee for basic services, fee per transaction / sale). See attachment for example.
b. Include any other costs associated with administering the BMR program.
c. Include the estimated hours for each staff member assigned to each task, including the
associated cost and hourly rate.
d. Include a not-to-exceed amount that would be contained in a potential agreement with
the City.
e. Hourly rates may be used for pricing the cost of additional services (beyond the scope of
services), as needed.
5. Additional Information. Provide general suggestions regarding the City’s BMR program or the
requested scope of services. For example, provide suggestions on how the City might
improve San Luis Obispo’s BMR program or finance the BMR Administrator contract
through a self-sustaining fee structure, etc.
6. Identify Key Staff. Provide a resume for the BMR Program Manager, main point of contact, and
any other key staff who will be involved in the day-to-day administration of the City’s BMR
program (e.g., interacting with applicants and city staff, preparing and recording legal
documents, submitting reports, etc.).
7. References. Include the name, address, phone number, and email for a minimum of three (3)
references for which you administer their affordable housing program.
8. Insurance Coverage. Provide a statement verifying that your firm meets the insurance
requirements contained in Attachment A, Article 5, Section D. Identify carriers, A.M. Best
ratings, types, and limits of insurance carried by your firm.
9. Terminated Contracts/Litigation. Please provide a list of contracts/agreements terminated for
convenience or default within the past three years, if any. List any litigation that now
affects or may affect the firm’s ability to perform work in the future.
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10. Language Capabilities. Please describe your capacity to serve Spanish speaking clients in both
written and speaking form.
J. PROPOSAL REVIEW
1. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
ACTIVITY CONSULTANT CITY SCHEDULE
RFP sent to qualified consultants/Legal Ad X May 12, 2021
Pre-Proposal Conference (optional) X X May 26, 2021
Responses due X June 4, 2021
City response to consultants regarding
whether submittal will be considered through
subsequent interview
X
June 11, 2021
Interview consultants (If needed) X X June 21 – 24, 2021
Consultant selection and contract execution X July 9, 2021
Initial kick-off meeting with staff team X X July 19 – 22, 2021
Internal Organization of Materials and Duties X July 19 – August 6, 2021
Transfer of Materials to Consultant X X August 9 - 13, 2021
Consultant Will Commence Administration X August 16, 2021
2. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following
location, date, and time to answer any questions that prospective bidders may have regarding
this RFP:
May, 26, 2021 at 1:00 p.m.
Via Teleconference
(teleconferencing details TBD)
3. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
4. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by, or assembled by the Contractor as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Contractor without the prior written approval of the City.
5. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
6. Required Deliverable Products. The Contractor will be required to provide:
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a. One electronic submission - digital-ready original .pdf of all final documents. If you wish
to file a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. Corresponding computer files compatible with the following programs whenever possible
unless otherwise directed by the project manager:
Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign
Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. City staff will review any documents or materials provided by the Contractor and, where
necessary, the Contractor will be required to respond to staff comments and make such
changes as deemed appropriate.
ALTERNATIVE PROPOSALS
7. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each of the alternative
and discuss under what circumstances the City would prefer one alternative to the other(s).
8. Attendance at Meetings and Hearings. As part of the work scope and included in the contract
price is attendance by the Contractor at up to [number] public meetings to present and discuss
its findings and recommendations. Contractor shall attend as many "working" meetings with staff
as necessary in performing work-scope tasks.
9. Accuracy of Specifications. The specifications for this project are believed by the City to be
accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are
cautioned to undertake an independent analysis of any test results in the specifications, as City
does not guaranty the accuracy of its interpretation of test results contained in the specifications
package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall
bear sole responsibility for proposal preparation errors resulting from any misstatemen ts or
omissions in the plans and specifications that could easily have been ascertained by examining
either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the plans and specifications will be as determined by law, any patent
ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure
to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An
ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming
reasonable skill, ability and diligence on its part, knew or should have known of the existence of
the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in
writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any
right to assert said defects or ambiguities subsequent to submittal of the proposal.
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To the extent that these specifications constitute performance specifications, the City shall not be
liable for costs incurred by the successful bidder to achieve the project’s objective or standard
beyond the amounts provided there for in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged
ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall
immediately notify the City in writing, and the Contractor and all subcontractors shall continue to
perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and
irrespective of whether or not a change order, time extension, or additional compensation has been
granted by City. Failure to provide the hereinbefore described written notice within one (1) working day
of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the
right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the
dispute.
K. FORM OF AGREEMENT
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
[CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx]
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City
for said project;
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, until acceptance or completion of said project.
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2. INCORPORATION BY REFERENCE. City Specification No. ______ and Contractor's
proposal dated [date] is hereby incorporated in and made a part of this Agreement and attached
as Exhibit A. The City’s terms and conditions are hereby incorporated in an made a part of this
Agreement as Exhibit B. To the extent that there are any conflicts between the Contractor’s fees
and scope of work and the City’s terms and conditions, the City’s terms and conditions shall
prevail, unless specifically agreed otherwise in writing signed by both parties.
3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will
pay, and Contractor shall receive therefore compensation [xxxxxxx]. If there are installment payments?
Contractor shall be eligible for compensation installments after completion of milestone Tasks -E as shown
in the attached project schedule.
4. CONTRACTOR/CONSULTANT’S OBLIGATIONS. For and in consideration of the payments
and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City
to do everything required by this Agreement and the said specifications.
5. AMENDMENTS. Any amendment, modification, or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto.
No oral agreement, understanding or representation not reduced to writing and specifically incorporated
herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation
be binding upon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City Name
Dept.
Address
Consultant Name
Title
Address
Address
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8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that
everyone executing this agreement on behalf of each party is a person duly authorized and empowered
to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be execu ted the day
and year first above written.
CITY OF SAN LUIS OBISPO:
By: _____________________________________
City Manager
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
City Attorney Name of CAO / President
Its: CAO / President
L. INSURANCE REQUIREMENTS
Operation & Maintenance Contracts
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the performance of
the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
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either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3. The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required
coverage. Original endorsements effecting general liability and automobile liability coverage are also
required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind
coverage on its behalf. All endorsements are to be received and approved by the City before work
commences.
Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall
be subject to all of the requirements stated herein.
M. PROPOSAL SUBMITTAL FORM – SAMPLE
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A complete proposal must include the forms in this section plus the required insurance certificate.
THESE REQUIRED PROPOSAL DOCUMENTS SHALL BE ENCLOSED IN TWO SEPARATE SEALED
ENVELOPES.
The first envelope shall be labeled “Qualification Proposal” and shall include the following proposal
documents completed in full:
1. Information about the Proposing Firm
2. References
3. Statement of Past Contract Disqualifications
4. Insurance Certificate
The second envelope shall be labeled “Price Proposal” and shall include the Price Proposal form.
These envelopes shall be enclosed in a larger envelope that shall be sealed and addressed to the
Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401. In order
to guard against premature opening, the larger envelope should be clearly labeled with the proposal
title, specification number, and name of the proposing firm.
INFORMATION ABOUT THE PROPOSER
Firm Name
Mailing
Address
City, State, ZIP
Phone Number
FAX Number
Business Type (proprietorship/partnership/corporation)
Years Operating under this Firm Name
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Insurance Company’s A.M. Best Rating
Authorized Representative
Title of Authorized Representative
Signature of Authorized Representative and Date
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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide
the services included with the scope of the specifications. Attach additional pages if requi red. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
CURRENT CONTRACTS:
1.
2.
3.
4.
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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or f or any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
◼ Do you have any disqualification as described in the above paragraph to declare?
Yes ❑ No ❑
◼ If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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PRICE PROPOSAL
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