HomeMy WebLinkAboutItem 5g. Authorization to issue a RFP for Below Market Rate Housing Administration Services Item 5g
Department: Community Development
Cost Center: 4008
For Agenda of: 9/3/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR
A CONSULTANT TO SERVE AS THE CITY’S BELOW MARKET RATE
HOUSING ADMINISTRATOR
RECOMMENDATION
1. Authorize the issuance of a Request for Proposals (RFP) for a Below Market Rate
(BMR) Housing Administrator; and
2. Authorize the City Manager to enter into a consultant services agreement in an
amount not to exceed $150,000 annually for the project.
POLICY CONTEXT
The recommended action on this item is supported by the City’s Inclusionary Housing
Ordinance, as well as policies described in the Housing Element of the General Plan.
Housing is a major City Goal, with BMR homeownership and rental units making up a
significant part of the City’s housing continuum. The Inclusionary Housing Ordinance
(IHO), first adopted in 1999, has been a key policy that has increased production of BMR
homeownership and rental units in the City through requirements imposed on
development projects. The continued administration of these units through the RFP
ensures continued implementation of the BMR housing program that provides housing
opportunities to the community.
DISCUSSION
Background
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. Additional affordable units are built in the City using the State Density
Bonus provisions as well as Development Agreements for larger projects. These homes
remain at below market 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.
Page 145 of 229
Item 5g
There are currently 93 BMR for-sale units and 136 BMR rental units in the City’s portfolio,
with an additional 334 rental units managed by HASLO and 73 rental units managed by
People’s Self-Help Housing. There are 508 planned new BMR units in the pipeline.
In 2021, with the authorization of the City Council, staff issued an RFP for a third-party
administrator of the City’s BMR homeownership and rental unit program. HouseKeys, a
consultant with demonstrated experience managing other municipal BMR programs in
the state, was signed to a two-year contract, which expired on June 30, 2023. The
contract was then extended for an additional two years, with the option to terminate
services with 30-day notice provided to consultant. With the existing portfolio and sizeable
pipeline of BMR units in the City, there continues to be a need to facilitate the sale, rental,
and income recertification of these units according to established regulations. The
accelerated timelines and resources that are required to properly administer these
services are greater than the current capacity and expertise of City housing staff. Staff
has determined the need to issue a subsequent RFP to continue outside administration
of the City’s BMR program.
Role of BMR Administrator
The BMR Administrator facilitates the sale, resale, rental, re -rental, and recertification of
all new and existing BMR units in the City. The Administrator plays a critical role in
ensuring that BMR units are occupied by eligible households according to the deed
restrictions, City Below Market Rate standards, and City Municipal Code requirements
regarding a fair and transparent selection process for tenants and buyers of these units.
The Administrator also works to ensure that all requirements of State law and monitoring
requirements imposed by the Department of Housing and Community Development are
met and adhered to. The Administrator also serves as a consistent point of contact for all
parties interested in the City’s BMR program and available units. The Administrator
manages the process of BMR unit sales from initial interest through to buyer income
certification, underwriting, and sale.
Previous Council or Advisory Body Action
On May 4, 2021, Council authorized the initial RFP for BMR administration and authorized
the City Manager to enter into an agreement if proposals were received within the annual
budget of $117,000.
Public Engagement
Staff has made an effort to identify and engage several potential consultants that may be
able to respond to this RFP. 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
This RFP is not subject to the provisions of the California Environmental Quality Act
(CEQA) because it is not a project as defined in CEQA Guidelines 15378 (Definitions –
Project).
Page 146 of 229
Item 5g
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $
State
Federal
Fees
Other:
Affordable
Housing Fund
$150,000 $150,000 $150,000
Total $150,000 $150,000 $0 $150,000
In the 2021-2023 Financial Plan, BMR administration services were funded by the
General Fund. In the 2023-2025 Financial Plan, services were funded by the Affordable
Housing Fund due to lack of General Funds for this effort. The 2025-27 Financial Plan
will address the ongoing funding needs for this contract.
ALTERNATIVES
1. Continue this item and provide different direction to staff regarding the scope
of work or other terms included in the proposed RFP. Council could provide
additional or different direction to staff regarding the scope of work, based on any
identified issues and considerations, and continue the authorization of the RFP to a
later date.
2. Do not authorize the issuance of the RFP. Council could direct staff to develop
additional alternatives to the use of a consultant for administration of the City’s BMR
program. This could include capacity building and training resources to handle
program administration internally, or the creation of a new staff position dedicated to
BMR administration.
ATTACHMENTS
A - Draft Below Market Rate Administrator RFP
Page 147 of 229
Page 148 of 229
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 Housing Program Administrator
Spec. No. SLO-BMR-2024
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 September 27, 2024.
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 September 27 2024,
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.
Questions should be posted to BidSync where the City will answer.
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.
Page 149 of 229
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 .................................................................................................... 10
I. PROPOSAL CONTENT .......................................................................................................................... 11
J. PROPOSAL REVIEW ............................................................................................................................. 13
K. FORM OF AGREEMENT ....................................................................................................................... 15
L. INSURANCE REQUIREMENTS ............................................................................................................. 17
M. PROPOSAL SUBMITTAL FORM – SAMPLE .......................................................................................... 19
Page 150 of 229
Page | 1
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 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.
In 2021, with the authorization of the City Council, staff issued an RFP for a third party administrator of
BMR homeownership and rental units. HouseKeys, a consultant with demonstrated experience managing
other municipal BMR programs in the state, was signed to a two-year contract which expired in 2023 and
was extended for an additional two years. The City has determined the need to issue a subsequent RFP to
continue support for administration of the City’s BMR program.
BMR Ownership Units
There are currently approximately 93 BMR homeownership units within the City managed portfolio.
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.
Management of these units and future units by a BMR Housing Administrator under contract with the City
is expected to provide a higher level of service to homeowners and potential homeowners under the
program. The expertise provided by a consultant to perform this work will ensure timely processing of
purchase and sale agreements, refinancing, subordination agreements, and other time sensitive work.
BMR Rental Units
The City currently has approximately 136 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 or density bonus provisions, and
are secured as affordable through deed-restrictions (or affordability covenants/agreements) entered into
by the City and the project owners. Agreements are provided by the BMR Housing Administrator and
executed by the City and the new owners. Each year, anywhere between 5-15 units are added to the BMR
rental inventory.
The City also has a healthy inventory of rental units managed by non-profit housing agencies (i.e., the
Housing Authority of San Luis Obispo (HASLO), Peoples’ Self-Help Housing (PSHH), 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 generally 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 Housing Administrator manage these
units—compliance monitoring and coordination with non-profit partners that manage these projects is
expected to stay within the scope of work of City staff.
Page 151 of 229
Page | 2
SCOPE OF WORK
The subject RFP solicits the services of a BMR Housing Program Administrator consultant to oversee the
administration of the City’s BMR ownership and rental units. The administrator will be responsible for
the following:
1. BMR Program Administration Setup
a. Administer and update the City’s existing BMR Interest List database.
b. Coordinate information between City website and administrator customer service portal.
2. BMR Housing Program Administration
a. BMR Inquiries (ongoing): The BMR Housing Administrator will be the public facing entity on
behalf of the City responsible for handling inquiries related to current housing portfolio loan
holders and responding in a timely manner.
b. BMR Eligibility and Interest List (ongoing): The BMR Housing Administrator will maintain a list of
qualified buyers and interested prospective buyers.
3. Annual BMR Compliance Monitoring
a. Documentation: The BMR Housing 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 Housing Administrator will coordinate with
homeowners on a biannual 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
Housing Administrator will work with the City to remedy potential BMR defaults in accordance
with the BMR Agreement.
c. BMR Renter Certification: The BMR Housing Administrator will coordinate with property
managers, tenants, and the Housing Authority of San Luis Obispo (HASLO) on a biannual basis to
certify that all BMR units are occupied by renters who continue to meet income requirements.
The BMR Housing Administrator will also ensure that the appropriate rent and utilities are being
charged in compliance with the City’s Below Market Rate Housing Standards.
4. Existing Loan Administration
a. The BMR Housing 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. City staff will be provided access to the database.
b. The BMR Housing Administrator will monitor existing first-time-homebuyer and other housing
loans biannually 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
Page 152 of 229
Page | 3
default, the BMR Housing Administrator will contact the owner and work with the City to see that
the loan is repaid.
c. The BMR Housing 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/Resale Process
a. BMR Marketing: For each homeownership opportunity, Administrator will create a Marketing
Plan and organize meetings with developers to coordinate effective marketing with specific
performance milestones and dates. The developer and Administrator will also calculate final sales
price for units in accordance with the City’s Below Market Rate Housing Standards, as well as any
priorities for resident selection. The developer may choose a 30 or 60 day marketing period.
Administrator may be given as little as 2 weeks’ notice of pending sales opportunities.
Administrator shall maintain a website with photos and information regarding the opportunity,
as well as list the opportunity on the Multiple Listing Service (MLS.) Administrator shall maintain
a list of qualified preferred lenders familiar with the City BMR program. All marketing information
shall clearly direct interested buyers to a portal for interested applicants to sign up for an
opportunity drawing. Intake information shall include basic information regarding family size and
income. Administrator shall reach out to individuals on the waitlist to notify them of new
opportunities.
b. Applicant Opportunity Drawing: The BMR Housing Administrator shall conduct an opportunity
drawing after the defined marketing period to select buyers in a fair and open manner in
accordance with City municipal code requirements. All buyers who have signed up for the
opportunity shall be assigned a random ID number for the drawing. The drawing is to be
conducted in a lottery fashion electronically and witnessed virtually by City staff. Lottery results
will be posted on Administrator and City website.
c. Eligibility Screening, Pre-Qualification, and Income Certification: The BMR Administrator shall
screen buyers in the order of priority of the lottery. Administrator will contact buyers and request
a prequalification letter from their lender, as well as complete income certification or in the case
of two legacy developments (San Luis Ranch and Avila Ranch) provide audits as necessary.
d. Closing: Upon successful verification of income and loan prequalification, Administrator shall
work proactively with buyer’s lender to draft purchase contract and City closing documents (deed
restriction, equity sharing agreement if applicable). Administrator to notify City staff for
coordination of Community Development Director’s execution of agreements.
6. BMR Rental Process
a. Marketing: For each rental opportunity, Administrator will create a Marketing Plan and organize
meetings with developers to coordinate effective marketing with specific performance milestones
and dates. The developer and Administrator will also calculate final rental price for units in
accordance with City BMR Standards, as well as any priorities for resident selection. The developer
may choose a 30 or 60 day marketing period. Administrator may be given as little as 2 weeks’
notice of pending rental opportunities. Administrator shall maintain a website with photos and
Page 153 of 229
Page | 4
information regarding the opportunity. All marketing information shall clearly direct interested
tenants to a portal for interested applicants to sign up for an opportunity drawing. Administrator
shall reach out to individuals on the waitlist to notify them of new opportunities.
b. Applicant Opportunity Drawing: The BMR Housing Administrator shall conduct an opportunity
drawing after the defined marketing period to select tenants in a fair and open manner in
accordance with City municipal code requirements. All tenants who have signed up for the
opportunity shall be assigned a random ID number for the drawing. The drawing is to be
conducted in a lottery fashion electronically and witnessed virtually by Housing staff. Lottery
results will be posted on Administrator and City website.
c. Income Certification: The BMR Administrator shall screen buyers in the order of priority of the
lottery. Administrator will contact tenants and complete an income certification.
d. Closing: Upon successful verification of income, Administrator shall work with landlord and tenant
to draft lease agreement. Administrator shall ensure that the final lease stipulates rent inclusive
of a reasonable utility allowance.
B. 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.
C. PROJECT BUDGET
The administration of the City’s BMR housing program is budgeted at an amount not to exceed
$150,000 annually for the next two City fiscal years. Upon the end of the two-year period, the City will
consider extending contract budget for subsequent 2-year period.
D. PERFORMANCE MONITORING
The City holds the right to monitor performance of the BMR Housing Administrator, including but not
limited to, timeliness in response to inquiries and satisfaction of clients.
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,
Page 154 of 229
Page | 5
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 L
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
Page 155 of 229
Page | 6
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.
G. CONTRACT PERFORMANCE
11. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Section L 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.
Page 156 of 229
Page | 7
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 discrim ination
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
Page 157 of 229
Page | 8
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
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
Page 158 of 229
Page | 9
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.
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
Page 159 of 229
Page | 10
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. The contract will be awarded to the most qualified proposer that, in the City’s
sole discretion in accordance with the Proposal Evaluation and Selection criteria set forth herein
(if applicable), provides the best proposal.
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 most qualified lowest cost 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 most qualified lowest cost proposer and to
accept the next acceptable proposal from a proposer that is not experiencing a labor action, and
to declare it to be the most qualified lowest cost 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 most qualified lowest cost 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. Contract Amendments.
Additional services may be needed from Contractor during the contract term in addition to the
items listed in the Detail Proposal Submittal Form. For these services, the proposer shall not offer
prices to the City in excess of the amounts offered to other similar customers for the same item.
Page 160 of 229
Page | 11
City and Contractor shall agree to the Amendment in writing.
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
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 performed according to Section B of this RFP.
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)
Page 161 of 229
Page | 12
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
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 San Luis Obispo’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 Housing 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.).
Page 162 of 229
Page | 13
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 Section L of these specifications. 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.
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 September 4, 2024
Responses due X September 27, 2024
City response to consultants regarding
whether submittal will be considered through
subsequent interview
X
October 4, 2024
Interview consultants (If needed) X X October 7-11,2024
Consultant selection and contract execution X October 14, 2024
Initial kick-off meeting with staff team X X October 21, 2024
Transfer of Materials to Consultant X X October 21-25, 2024
Consultant Will Commence Administration X October 30, 2024
2. 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.
3. 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.
4. 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
Page 163 of 229
Page | 14
costs of duplicating of such copies at the Contractor's direct expense.
5. Required Deliverable Products. The Contractor will be required to provide:
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
6. 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).
7. 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.
8. 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 misstatements 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
Page 164 of 229
Page | 15
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.
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.
Page 165 of 229
Page | 16
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 and made a part of this Agreement as Exhibit
B. The City’s Insurance Requirements are hereby incorporated in and made a part of this Agreement as
Exhibit C. 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
Page 166 of 229
Page | 17
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 executed 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 - CONSULTANTS
Consultant 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. General Liability,
Errors and Omissions and Pollution and/or Asbestos Pollution Liability coverages should be maintained
for a minimum of five (5) years after contract completion.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 or Claims
Made Form CG 0002).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any
auto), or code 8, 9 if no owned autos.
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4. Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
Page 167 of 229
Page | 18
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability Insurance or other form with a general aggregate limit is used, 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 each accident, $1,000,000 policy limit bodily injury by disease,
$1,000,000 each employee bodily injury by disease.
4. Pollution and/or Asbestos Pollution Liability and/or Errors and Omissions: $1,000,000 each
occurrence/$2,000,000 policy aggregate.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the Entity.
Other Insurance Provisions. The following insurance provisions shall also apply:
1. The general liability, automobile liability, pollution and/or asbestos pollution and/or errors & omissions
policies are to contain, or be endorsed to contain, the following provisions:
a. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insureds
as respects: liability arising out of activities performed by or on behalf of the Contractor;
products and completed operations of the Contractor; pollution and/or asbestos
pollution and/or errors or omissions, 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 Entity, its officers, officials, employees, agents or volunteers.
Note: Automobile, Pollution, Asbestos Pollution and/or Errors and Omissions insurance carriers may not
name the City as Additional Insured. If the City cannot be named as Additional Insured, a
letter from the insurance company confirming their position required.
b. 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.
c. 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.
d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
canceled by either party except after thirty (30) days prior written notice has been given
to the City.
2. The automobile liability policy shall be endorsed to delete the pollution and/or the asbestos exclusion
and add the Motor Carrier Act endorsement (MCS-90).
3. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverages
are written on a Claims Made Form:
a. The "Retro Date" must be shown, and must be before the date of the contract or the beginning of
contract work.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years
after completion of the contract or work.
Page 168 of 229
Page | 19
c. If the coverage is canceled or non-renewed, and not replaced with another claims made policy form
with a "Retro Date" prior to the contract effective date, the Contractor must purchase
"extended reporting" coverage for a minimum of five years after completion of the
contract or work.
d. A copy of the claims reporting requirements must be submitted to the City for review.
4. The workers compensation policy shall be endorsed with a waiver of subrogation in favor of 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. Since Pollution and/or Asbestos Pollution coverages may not be available from an
"Admitted" insurer, the coverage may be written by a Non-Admitted insurance company. A Non-admitted
company should have an A.M. Best's rating of A:X or higher. Pollution and/or Asbestos coverages may
also be written by a Captive Insurance Company or Risk Retention Group or Captive Insurance Company,
the City will check with its Insurance Advisor for further information before approval.
Verification of Coverage. Contractor shall furnish the City with certified copies of endorsements effecting
coverage required by this clause. The endorsements are to be signed by a person authorized by that
insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City, unless
the insurance company will not use the City's form. All endorsements are to be received and approved
by the City before work commences. As an alternative to the City's forms, the Contractor's insurer may
provide complete, certified copies of all required insurance policies, including endorsements affecting the
coverage required by these specifications.
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
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.
Page 169 of 229
Page | 20
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
Insurance Company’s A.M. Best Rating
Authorized Representative
Title of Authorized Representative
Signature of Authorized Representative and Date
Page 170 of 229
Page | 21
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 required. 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
Page 171 of 229
Page | 22
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.
Page 172 of 229
Page | 23
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 for 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
Page 173 of 229
Page | 24
PRICE PROPOSAL
Page 174 of 229