256035 RFP.pdf

Public Works Department

Real Property Services

Consultant of Record (COR) for Appraisal and Related

Real Property Valuation

Consulting Services on a

Continuing Service Basis

RFP NUMBER: 256035

CLOSING DATE: May 16, 2025 AT 4:00 PM (LOCAL TIME)

Page 1 Request for Proposal

REQUEST FOR PROPOSALS (RFP) NUMBER: 256035

Consultant of Record (COR) for Appraisal and Related Real Property Valuation

Consulting Services on a Continuing Service Basis

INTRODUCTION

The City of Salem, hereinafter referred to as “City”is seeking qualified Proposers of Appraisal and

Related Real Property Valuation Consulting Services on a continuing service basis in the following

Appraisal and Associated Service Categories:

APPRAISAL AND ASSOCIATED SERVICE CATEGORIES

01 COMMERCIAL/INDUSTRIAL

02 RESIDENTIAL

03 AGRICULTURE

04 REVIEW

Interested firms may submit proposals for providing any number of the above stated categories, however, each category shall be proposed separately by naming the file with the category specified.

The intent of this RFP is to pre-qualify a group of appraisers as resources that the City, at its sole discretion, can select from to provide appraisal and associated services. The City would generally rotate project assignments to provide opportunities for all consultants selected to provide appraisal and associated services. There may be occasions, however, when the City would assign a project to a particular COR (Consultant of Record) because that COR has specific expertise needed for the project, has previously worked on the project, or is best able to meet project deadlines.

Proposals will be received until, but not after 4:00 PM (local time), May 16, 2025.

Completed proposals must arrive electronically via Equity Hub’s Bid Locker at https://bidlocker.us/a/salem_or/BidLocker. The City will not accept proposals submitted in any other manner.

NO LATE PROPOSALS WILL BE ACCEPTED.

Your proposal must be uploaded prior to the Closing Date and Time. The City strongly recommends that you give yourself sufficient time and at least ONE (1) day before the closing date and time to begin the uploading process and to finalize your submission. The City accepts no responsibility for non-receipt and/or delays in receipt caused by transmission and reception problems, equipment failure, or any other similar cause. Each Proposal is instantly sealed and will only be visible to the City after the closing date and time. Uploading large documents may take significant time, depending on the size of the file(s) and your internet connection speed. You will receive an email confirmation receipt once you finalize your submission.

Supported web browsers: Chrome, Firefox, Safari, and Vivaldi.

Need Help?

Please contact Equity Hub at help@equityhub.us or (267) 225-1407 for technical questions related https://bidlocker.us/a/salem_or/BidLocker mailto:help@equityhub.us

Page 2 Request for Proposal to your submission.

The Vendor Guide for Bid Locker can be found at Vendor Guide for Bid Locker.

Prospective proposers may obtain these solicitation documents by registering on the OregonBuys website and downloading them. Proposers shall consult the OregonBuys system regularly until closing date and time to avoid missing any notices. To register on OregonBuys go to https://oregonbuys.gov. The City shall advertise all Addenda on OregonBuys. Prospective proposers are solely responsible for checking OregonBuys to determine whether or not any

Addenda have been issued. RFP documents will not be mailed to prospective proposers.

Any objections to or comments upon the RFP specifications must be submitted in writing to the office of the Contracts and Procurement Manager, by email sself@cityofsalem.net.

They must be received no later than May 1, 2025 at 5:00 PM (local time).

Proposals received will be held confidential until a recommendation for award has been approved by the Department Director. Thereafter, all Proposals will be available for public inspection by submitting a Public Records Request through the City Recorders Office Public Records Request |

Salem, Oregon (cityofsalem.net).

The City will be the sole judge in determining award of Agreement and reserves the right to reject all Proposals.

Human Rights: It is the express policy of the City that no person shall be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity on the grounds of race, religion, color, national origin, sex, marital status, familial status or domestic partnership, age, mental or physical disability, sexual orientation, gender identity or source of income as provided by Salem Revised Code Chapter 97, Title VI of the Civil Rights Act of 1964, and other federal nondiscrimination laws. The City’s complete Title

VI Plan may be viewed at Equity & Accessibility | Salem, Oregon (cityofsalem.net). Proposer agrees to comply with all applicable requirements of federal, state, and local civil rights and rehabilitation statutes, rules, and regulations if awarded an agreement by the City.

Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding or negotiation made by the successful proposer for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the successful proposer of the successful proposer’s obligations under this Agreement and the Salem Revised Code Chapter

97, Title VI of the Civil Rights Act of 1964 and other federal nondiscrimination laws.

Note: Errors and Omissions Liability Insurance Coverage will be required.

The City is an Equal Employment Opportunity employer.

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Page 3 Request for Proposal

Questions regarding the City’s RFP process may be addressed to Shawna Self, CPPB, Contracts and Procurement Manager, who may be reached at (503) 588-6445 or by email at sself@cityofsalem.net during City business hours.

The City operates and maintains Americans with Disabilities Act compliant facilities.

Reasonable accommodations are available upon request.

Shawna Self, CPPB, Manager

Contracts and Procurement

FIRST DATE OF SOLICITATION: April 21, 2025

REQUEST FOR PROPOSAL NUMBER: 256035

REQUEST FOR PROPOSAL CLOSING: May 16, 2025 at 4:00 PM (Local Time) mailto:sself@cityofsalem.net

Page 4 Request for Proposal

RFP # 256035

CONSULTANT OF RECORD (COR) FOR APPRAISAL AND RELATED REAL

PROPERTY VALUATION CONSULTING SERVICES ON A CONTINUING SERVICE

BASIS

The City of Salem (“City”) is a municipal corporation serving a community with a population of approximately 177,600. It is the capital of the State of Oregon and the county seat of Marion

County. The City has a Council-Manager form of government with an elected mayor and council.

The City has approximately 1,300 employees and nine operating departments (listed below).

City Manager Legal

Community Services Community Planning and Development

Enterprise Services Police

Fire Public Works

Finance

SECTION 1: BACKGROUND

The City is seeking proposals to hire Consultants of Record (COR) to provide personal services on a continuing service basis in a number of Appraisal and Associated Service Categories (see table below). Services will be provided under a renewable annual contract with up to a maximum of four (4) additional one (1) year renewal periods. Under these Agreements, work will be assigned on a project-by-project basis. It is anticipated this method of procurement may be used to assist in handling peak workloads and also provide technical expertise not possessed by the City staff as needed for various assignments. There are no predetermined, known project assignments at the time of this RFP.

The City, via this competitive RFP process, will select a minimum of two (2) and a maximum of five (5) CORs in each Appraisal and Associated Service Category for award of continuing service contracts. The continuing service contracts are non-exclusive contracts. The City, at its sole discretion, can offer a project to any COR. The City will generally rotate project assignments to provide opportunities for all consultants selected to provide appraisal and related services. There may be occasions, however, when the City would assign a project to a particular COR because that

COR has specific expertise needed for the project, has previously worked on the project, or is best able to meet project deadlines.

Category of Service Annual Contract

Maximum

Individual Project

Maximum

RFP Reference

Number

Commercial/Industrial $350,000 $150,000 256035-01

Residential $350,000 $150,000 256035-02

Agriculture $350,000 $150,000 256035-03

Review $350,000 $150,000 256035-04

Consultant Reimbursable Expenses

See Appendix C for details.

Page 5 Request for Proposal

SECTION 2: SCOPE OF REQUESTED SERVICES

2.1 General Information

The COR shall provide personal and technical services on an "assignment by assignment" basis and for a "not to exceed" fee based on the established rates for the Agreement. The City makes no guarantee as to the volume of work, if any, that will be assigned in any given contract year. Generally, services shall include but not be limited to, the general scope as shown in subsection 2.4.

2.2 Project Assignment

The City would generally rotate project assignments to provide opportunities for all consultants selected to provide appraisal and related services. There may be occasions, however, when the

City would assign a project to a particular COR because that COR has specific expertise needed for the project, has previously worked on the project, or is best able to meet project deadlines. The selected COR shall deliver a written, signed project proposal within forty-eight (48) hours, (or as otherwise required by the City’s Contract Administrator), following the City’s verbal or written request for a specific project assignment. If the project assignment is refused by the COR, or not responded to within the time frame specified, the City will offer the project assignment to the next COR on the rotation list most familiar with the project or whose skills most closely relate to the demands of the project.

The project proposal shall include a detailed description of the scope of the project and breakdown of the hours required for the project utilizing the hourly rates as referenced in this

RFP. The proposal shall also include a schedule of work required to complete the project within the City’s required time frame. The City will review the proposal and, if approved, issue a Purchase Order Release. If a fee, scope, or schedule acceptable to the City is not negotiated within seventy-two (72) hours from the time of the delivery of the proposal, the City reserves the right to withdraw the offer and offer the project to another COR or use another method to procure the personal services.

The COR agrees to provide services for all projects offered by the City unless multiple projects exceed the COR's ability to complete the work within the required time frames. The City, at its sole discretion, can offer a project to another COR if the COR cannot perform within the required time frame, and/or the City and the COR cannot reach agreement on scope, fee, and/or schedule, and/or the City determines it is in the City’s best interest to do so.

2.3 Consultant's Contact Person

The COR shall designate a key staff person to be the City’s primary contact for the duration of the annual contract. Substitution of these persons shall be by written request and subsequent approval by the City. The City expects the COR to maintain the same project manager and key team members through the duration of the project. The City reserves the right to accept or reject requests by the COR to change the team during the project.

2.4 General Scope for All Appraisal and Related Real Property Valuation Consulting

Service Categories

2.4.1 Materials and Information to be Furnished by the City

Upon acceptance of an appraisal service contract, the City will furnish the following materials and information as applicable:

Page 6 Request for Proposal

A. Preliminary title report of the property

B. Legal description of the Taking- Exhibit "A"

C. Map depicting the taking and easement areas as applicable - Exhibit "B"

D. Vesting documents

E. Construction plans

2.4.2 Scope of Work to be Completed by Appraiser

A. Examination Notice. The Appraiser shall provide the property owner and Salem fifteen (15) days advance written notice of the inspection date and shall give the owner, or the designated representative, and the City an opportunity to accompany the

Appraiser during the inspection of the property, and a copy of the inspection notice shall be included in the appraisal report. The owner's representative’s name, address and phone number shall be provided in the Diary of Contact. The Appraiser shall certify that the signor of the appraisal report has personally visited the appraised property(ies) and all of the comparable transactions used in the comparative analysis.

The Appraiser shall contact the City two (2) weeks before inspection for staking of proposed right-of-way.

B. Testimony. Upon the request of the City Attorney's Office, the Appraiser shall, in any judicial proceedings, testify as to the value of any and all property included in the appraisal report as of the valuation date.

C. Definition of Terms. All terms, words, and processes (unless specifically defined and given herein) shall have the meaning and be interpreted in accordance with the definitions of same contained in the most recent edition of THE DICTIONARY OF

REAL ESTATE APPRAISAL, prepared and distributed by the Appraisal Institute.

2.4.3 Technical Specifications

A. Format. The report shall be typewritten on bond paper sized 8-1/2 x 11 inches, with all parts of the report legible and shall be bound with a durable cover. The face of the report shall be labeled to identify the appraised property and to show the contract number, Appraiser's name and address, and the date of the appraisal. All pages of the report, including the exhibits, shall be numbered.

The Appraiser shall provide two (2) hard copies and one digital copy in PDF form of the appraisal for each property appraised.

B. Report Type. If the subject is an entire take or the assignment is a Taking and Damages, the appraisal report will be written as a complete appraisal in a

Self-Contained Appraisal Report or as a Before and After appraisal written as a

Self-Contained Appraisal Report.

C. Contents. The report shall be divided into the following tabulated parts:

Page 7 Request for Proposal

Part I Introduction

Part II Factual Data

Part III Analysis and Conslusions

Part IV Addenda

Part V Additional Specifications for Right of Way Appraisal

The report should at minimum, contain the following:

PART I - INTRODUCTION

1) Letter of Transmittal. A letter of transmittal will preface the report. This letter shall include a reference to the authorization for the appraisal and the examination notices required by subsection 2.4.2-A.

2) Title Page. Include on the title page (a) a statement that the document is an appraisal report, (b) the name and location of the property, (c) the

Appraiser's name, (d) the date of valuation, and (e) the Appraiser's estimate of value.

3) Table of Contents. List topic headings in numerical order with corresponding page numbers.

4) Summary of Facts and Conclusions. Summarize basic facts and conclusions. Items which shall be included are:

a) Owner of record;

b) Location;

c) Size of area;

d) Zoning-comp plan;

e) Highest and best use;

f) A list of all improvements; real property, personal tenant owned property;

g) The date of value estimate;

h) The estimated value or just compensation of the property appraised.

5) References. List sources of such report data as records, documents, technicians, and other persons consulted, giving their qualifications and identifying their contributions to the appraisal.

6) Statement of Limiting Conditions and Assumptions. Include only factors relating to the appraisal problem. Assumptions and limiting conditions that are speculative in nature are inappropriate. Do not include limiting conditions which significantly restrict the application of the appraisal.

PART II – FACTUAL DATA

Page 8 Request for Proposal

1) Purpose and Function of the Appraisal. The purpose is to identify the function of the appraisal and estimate the fair market value of the subject property in fee simple title as a whole, when applicable; the fair market value of the property taken as part of the whole; the fair market value of the remainder after the taking as will be affected by contemplated improvements with consideration for damages, if any, and benefits, if any, to the remainder;

and the total just compensation due the property owner by reason of the taking.

2) Definition of Value Being Appraised. Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.

3) Legal Description. Identify the property appraised using applicable descriptions based on the public land surveys, rectangular survey system, lot and block system and metes and bounds. If a lengthy description would disrupt the narrative flow, summarize in the text and place the description in the addenda and refer to it in the text.

4) Estate to Be Appraised. Identify the estate to be appraised as instructed. List all reservations, outstanding rights, and other encumbrances. For multiple parcel parties, list by appraised parcels. Include copies of title evidence in the addenda; if not available, state the extent and findings of the Appraiser's investigation.

If the appraised property is a multiple parcel property in a single ownership, all portions of the appraised property are to be appraised as a single transaction.

If a multiple parcel property is in separate ownership or has been assembled at the request of Salem into a single ownership, the Appraiser may be instructed in writing by the Contracting Officer to appraise the various ownerships independently of one another and express the sum of the various ownerships as the value of the whole.

5) Area and Local Data. Include a concise discussion of the market area, trends in use, and neighborhood or area analysis. Identify significant trends and indicate their influence on the value of the property being appraised. The social, economic, and political data cited must provide information leading to a conclusion of the highest and best use. Include only information that directly affects the value of the property appraised.

6) Property Data. The report must include a narrative description of significant

Page 9 Request for Proposal land features and all improvements and show the availability, suitability, and adaptability of the property for the highest and best use. I t shall, as a minimum:

a) Describe the land, giving dimensions, size, shape, topography, utilities, or other characteristics that may affect value.

b) Describe each improvement, with reference to its physical condition, present and potential uses, obsolescence, and its contribution to highest and best use.

c) Include representative color photographs of the appraised property. If the improvement(s) are included in the taking, interior photographs of the primary rooms are required.

d) Discuss all outstanding rights or possessory interests (easements, permits, leases, adverse possession) describing their nature, size, extent, and condition. (Their influence on value will be discussed in the valuation section of the appraisal.) Identify the owners of such rights and the legal authority under which each right is claimed.

e) Discuss all proposed reservations or covenants stated in the estate to be appraised, giving the type and extent of each, and time each is to run.

f) Cite the zoning or other restrictions affecting the property.

g) State the current assessed value, assessment basis (classification, rates of assigned value, or assessed value), and dollar amount of current real market value.

PART III - ANALYSIS AND CONCLUSIONS

1) Definition of Highest and Best Use. That reasonable and probable legal use of vacant land or an improved property that is physically possible, legally permissible, appropriately supported, and financially feasible, and that results in the highest value.

2) Analysis of Highest and Best Use. Specifically define, describe, and support the opinion of the highest and best use or combination of uses that can be made of the property (land and improvements). Give evidence of the demand for such use in the current market.

If the highest and best use is different from the present use, discuss how the property is available, adaptable, and in demand for the new use. If it is determined to be that speculation or investment is the highest and best use of the property, there must be a description and explanation of the interim and most

Page 10 Request for Proposal probable ultimate physical use of the property.

Where the highest and best use is for plottage or assemblage, describe in detail the relationship of the appraised property to the property to which it would be adjoined.

Explain zoning restrictions or other uses that conflict with the highest and best use. If the highest and best use is not permitted by current zoning, discuss the probability of a zone change which would allow such a use.

3) Appraisal Methods or Approaches. Include a brief discussion of each of the approaches to value. In all cases, consider the direct sales comparison, cost, and income approaches to value, and use those that apply. The particular appraisal problem and type of market data available determine which approach best supports the value estimate. Discuss the reasons for selecting the approach or approaches used and the reasons for rejecting those not used.

4) Data Analysis. Analyze and discuss market trends and elements of value; use topic headings to divide sections. Refer in text to factual data in the report addenda. Specifically state a conclusion supported by the factual data calculations and the process of reasoning that led to that conclusion.

BASIC SPECIFICATIONS FOR REAL PROPERTY APPRAISALS

As a minimum, in the analysis section of each approach used, discuss the following:

1) Cash versus contract sales. Make all value estimates on the basis of cash or cash equivalence. Consider the effect of term sales on market value and document conclusions. Consider cash equivalence to be the price paid had the sale terms been all cash.

2) Price-time trends.

3) The effect on value of elements such as size, location, road or highway frontage, restrictive covenants, zoning, utilities, view, vegetative cover, water frontage, and other elements of value as demonstrated in the market. Consider only those uses that influence value in the private market.

4) Discuss which unit(s) of value will be used and why, i.e., acres, square feet, cubic foot, front foot, room, or condominium unit to cite only a few.

5) Estimate of value. Develop an estimate of value in a logical sequence using accepted approaches to value supported by confirmed factual data. Base value on the property’s highest and best use, which may differ from present use.

In all cases, consider the three approaches to value (cost, income, and direct

Page 11 Request for Proposal sales comparison) and use those that apply. The appraisal report must include a direct sales comparison approach that analyzes and compares the property appraised to all of the comparable sales and concludes with an appraised property value indicated by the direct sales analysis. Reconcile all such direct comparison indications to a final estimate of value.

1) Direct Sales Comparison.

Sales used in the direct sales comparison approach should have been purchased for the same or similar use as the assigned highest and best use of the appraised property. Where differences exist, the Appraiser shall make appropriate adjustments or explain why no adjustment is necessary.

The Appraiser will determine buyer motivation for all sales used.

When using the direct sales comparison approach for each sale listed, discuss: parties to the transaction; date of the transaction; zoning;

confirmation of the transaction; buyer motivation; size; legal description of the property; interest conveyed; consideration; conditions of payment

(cash or terms - discuss contract sales and conclusions regarding their cash equivalence); improvements (kind and whether they contribute to highest and best use); outstanding rights and reservations and their effect on value;

physical description influence; and other characteristics.

Discuss all adjustments in enough detail so that it is possible for the reader to readily determine the source of the adjustments. If it is not possible to extract quantified adjustments from the market data, compare the appraised property to the other sales analyzing its value as superior, inferior, or comparable. Conclude with an overall relationship and an indicated value for the appraised property.

If the cited transactions involve term sales, consider the effect of the terms.

Adjust the sale prices as necessary to their cash equivalence. Support the amount of the adjustments by presenting factual evidence and the

Appraiser's reasoning so a Review Appraiser may judge the validity and acceptability.

In the direct sales comparison approach, list the last sale of the appraised property. If current, qualify and consider the sale. If not used, explain why the last sale is not valid. Investigate, list in the report, and be prepared to testify with respect to all sales that may be pertinent.

Verify all transactions used with a party to the transaction. List the cited transactions in chronological order with the oldest transaction first.

Each comparable sale shall be described in narrative form in enough detail to indicate how it compared with the appraised property in all elements affecting value. Discuss buyer motivation and highest and best use of the comparable sale.

Page 12 Request for Proposal

Adjust the sale price of comparable sales used in the appraisal report for appreciation or depreciation, if any, for the period of time between the sale date and the valuation date. Clearly state the amount of adjustment. Give the basis for the adjustment in terms of an analysis of available pertinent evidence. For adjustment purposes, sales and resales of unaltered properties similar to the comparable sales and in the same market area are desirable when available.

To be useful, such sales and resales must have occurred during the approximate period for which comparable sales are being updated. Raw statistics on broad classes of property and covering large geographic areas are not a sufficient basis for the appreciation and depreciation adjustments.

If the value of the appraised property and comparable sale are very similar, lump sum adjustments are acceptable, but list the elements of dissimilarity affecting value.

When data exists to permit quantified adjustments, these adjustments should be supported by market data, including paired sales analysis.

List in the addenda sales considered but not actually used. Cite pertinent facts such as date, size, buyers and seller, price, terms, zoning, location, and explain why each sale was not used.

Foreclosures are not sales, but sales of foreclosed property may be used with extreme caution.

Properties purchased for sale or exchange to public entities are not necessarily reliable indicators of value and should not be used as the primary support for the value conclusion.

Listings for sale generally set the upper limit of value for a given market.

Unconsummated offers to purchase and options to purchase constitute evidence but cannot stand alone in support of a value conclusion. None of these market actions should be adjusted as a basis for the conclusion of value.

Color photos of those sales relied upon should be included in the narrative section of the report with the comparative analysis.

2) Income and Cost Approaches.

In the income and cost approaches, support all cost and income estimates by comparative cost or rental data for similar properties. Discuss the methods used to determine capitalization rates, accrued depreciations, and depreciation rates; show computations and comparisons. As feasible, Page 13 Request for Proposal develop comparison charts to demonstrate the data.

3) Interpretation and Reconciliation of Estimates.

Interpret the foregoing estimates and state reasons why one or more of the conclusions best indicates the estimated market value of the property.

Reconcile indicated value estimates derived through more than one approach to reach the final estimate of value.

If only the direct sales comparison approach is used, reconcile the indications given by the various sales to reach the final estimate. Show which sale or sales were considered most comparable and which provided the best value indications.

4) Certification.

Include in the report certification the following statements:

I certify that, to the best of my knowledge and belief:

a) "The statements of fact contained in this report are true and correct and no important facts have been withheld."

b) "The reported analyses, opinions, and conclusions are limited by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions."

c) "I have no (or the specified) present or prospective interest in the property that is the subject of this report, and I have no (or the specified) personal interest or bias with respect to the parties involved."

d) "My compensation is not contingent on an action or event resulting from the analyses, opinions, or event resulting from the analyses, opinions, or conclusions in, or the use of this report."

e) "My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards of Professional

Appraisal Practice."

f) "I have made a personal inspection of the appraised property which is the subject of this report and all comparable sales used in developing the estimate of value. The date(s) of inspection was __________, and the method of inspection was ."

g) If more than one person signs the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property.

h) ''No one provided significant professional assistance to the person signing this report." (If there are exceptions, the name and qualifications of each individual providing significant professional assistance must be stated.)

i) "The owner or the owner's representative jointly inspected the property with the Appraiser on (date)." (Or the owner was invited to jointly inspect the property and declined).

j) "In my opinion, the market value (or other value as required) is $ as

Page 14 Request for Proposal of __________."

PART IV - ADDENDA

Include the following items as applicable to the appraisal p roblem:

1) Maps. Ensure that all maps are of high quality, clearly identify properties, and show the date the map was prepared. Maps must be sufficiently detailed, showing legend, scale, and north arrow, so properties may be readily located on the ground.

a) Area Map. Include a small-scale map showing the general location of the subject.

b) Neighborhood Map. Show the appraised property and its immediate vicinity.

c) Plat Map. On a large-scale map, show the dimensions and topography of the appraised property in detail.

d) Comparable Sales Location Map. The map for comparable sales may cover only a portion of the general location map. Ensure that the map scale allows the appraised property, and all comparable sales used to estimate value to be located on one map.

2) Comparable Sales Write-ups. Include a comparable sale write-up sheet showing all information for each comparable used in the appraisal. With each write-up, include a plat and color photo of the comparable. The comparable number must match the number of comparables as listed in the appraisal report.

3) Legal Description and Title Information. Include a full legal description of the appraised property if not shown in the narrative section of the report.

4) Photographs. Provide original color photographs or high-quality color copies of photographs of the appraised property and all comparables in each copy of the final report. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales.

Show the following information with each photograph:

a) Identification of the scene; include direction of view and other pertinent information such as if the photo was taken from a distance, view of the taking area with approximate right-of-way and temporary construction easement areas identified;

Page 15 Request for Proposal

b) The name of the photographer;

c) The date the photograph was taken.

5) Other Pertinent Exhibits. Present any additional data such as documents, charts, and other information pertinent to the valuation and referred to in the body of the appraisal. Such data may document or illustrate a fact about which a Review Appraiser would require more information. It could include:

a) A copy of easement or other deed;

b) A copy of any technical reports from specialists; for example, a timber cruise summary signed by the timber cruiser, or environmental summary prepared by an environmental consultant.

6) Qualifications of the Appraiser. Summarize or list the qualifications of each Appraiser who contributed to the report. The qualifications must demonstrate the Appraiser's capability to make such an appraisal.

PART V - ADDITIONAL SPECIFICATIONS FOR RIGHT-OF-WAY

APPRAISAL

Appraisal reports are required for each parcel of land to be acquired or damaged unless donated. The appraisals will be in the form of either a "Taking and Damages" or a "Before and After" narrative appraisal report.

"Taking and Damages" Appraisals: When damages are minimal and can be accurately measured in and of themselves and there are no special benefits, certain right-of-way acquisitions do not merit the Before and After approach. When the effect of an acquisition is minimal in comparison with the larger parcel the

Appraiser is instructed to perform a Taking and Damages appraisal. In this approach, the Appraiser is required to value the acquisition as part of the larger parcel and add to it an estimate of damages in order to arrive at the estimate of fair market value.

A "Taking and Damages" Appraisal will include the following:

a) Title page

b) Table of contents

c) Project and parcel number

d) Owner's name and property address

e) Diary of meetings with property owner and/or their representative

f) Purpose and function of appraisal and property rights appraised

g) Five-year sales history of subject property

h) City data on urban properties; county or regional data on rural projects

i) Neighborhood map

j) Description, location, and area of property to be acquired

Page 16 Request for Proposal

k) Location map

l) Photos of area to be acquired

m) Zoning map and ordinance/comp plan (if applicable)

n) Flood plain maps

o) Tax and assessment data

p) Highest and best use

q) Data supporting land value and "cost to cure" items

r) Comparable sales map

s) Comparable rental map (if applicable)

t) Comparable sales and rentals

u) Indication of comparable sales and direct comparison to the subject

v) Effective date of valuation, date of estimate, Appraiser's signature, and certification

w) References

x) Limiting conditions

y) Notification letter to property owner of 15-day notice to inspect

z) Appraiser's certification

aa) Appraiser's qualifications

"Before and After" Appraisals: A partial acquisition involving a substantial portion of the larger parcel requires the Appraiser to value the entire larger parcel as existing prior to the acquisition. The next step is for another appraisal to be made of the remainder site as it would be situated after the project is completed.

A difference between the before appraisal and the after appraisal not equaling the value of the acquisition area indicates the presence of damages or benefits to the remaining land caused by the project. The value of the part acquired, as part of the larger parcel, plus damages offset by special benefits, if any, would be the

Appraiser's estimate of fair market value.

A "Before and After" Appraisal shall contain the following elements in a format similar to the following:

a) Letter of transmittal

b) Salient facts and conclusions

c) Project and parcel number

d) Property address

e) Recorded ownership

f) Legal description

g) Tenant and lease information

h) Highest and best use (before and after)

i) Zoning/camp plan/flood plain maps

j) Tax and assessment data

k) Five-year sales history of subject property

l) Purpose of the appraisal

m) Function of the appraisal

n) Diary of meetings with property owner and/or their representative

o) Property description

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1) Land (size, shape, topography, utilities, soil conditions, accessibility, etc.)

2) Improvements (size, age, condition, number of rooms, and all items necessary to properly describe)

p) Land valuation

q) Value of whole property before taking

1) Cost approach

2) Sales comparison approach

3) Income capitalization approach

4) Correlation

r) Description and effect of taking

s) Value of part taken

t) Value of remainder before taking

u) Value of remainder after taking

1) Cost approach

2) Sales comparison approach

3) Income capitalization approach

4) Correlation

v) Damages

w) Summary and breakdown of taking and damages

x) Leasehold interests

y) Addenda

1) Plat map

2) Floor plans

3) Photos

4) Sales and rental data (if not in the body of the report)

5) Sales map (if not in the body of the report)

6) Limiting conditions

7) Appraiser’s certificate

8) Appraiser's qualifications

The above is intended as a guide and all items may or may not be necessary in all situations. At other times, supplemental data or headings may be required.

In every case, unless specified otherwise, the purpose of the valuation document is to express and support the Appraiser's estimate of fair market value as determined through the use of standard valuation processes. In addition, three important facts must be kept in mind:

a) Fee Appraiser(s) will review the valuation report.

b) The valuation document will also be used to properly inform the negotiator of all pertinent facts to negotiation with the property owner. Such items as comparable sales must be selected, verified, and accurately reported so that the negotiator may use them in negotiations with the property owner.

c) The valuation document and the project report will be distributed to the owner of the property as a part of the negotiation process used by Salem.

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The Appraiser shall testify in court if required by the City and shall defend the

Compensation Estimate or Appraisal in the court testimony if the date of taking is within a reasonable time after the date of Compensation Estimate or Appraisal.

The Appraiser shall determine if the property is leased and value the lease to determine the lessor and lessee's interest, justify these interests if they exist, and compute the damages to these interests as part of the total damages.

Any tenant-owned building, structure, or other improvement, which would be considered to be real property if owned by the owner of the real property on which it is located, shall be considered to be real property and shall be appraised as such to determine its fair market value. This shall include any improvement of a tenant owner who has the right or obligation to remove the improvement at the expiration of the lease term.

In appraising income-producing property that contains personal property owned by the owner of the real estate, the income of the personal property will not be considered a part of the gross income of the real property. Therefore, the Appraiser is required to show a deduction from the gross income, the amount the personalty contributes to the gross income.

The following is a list of non-compensable items that the Appraiser agrees to review and also the Appraiser agrees that damages will not be estimated based upon these non-compensable items as listed in the tracts under this Agreement:

a. Loss of profits or business.

b. An option does not constitute an interest in land requiring compensation where it has not been exercised.

c. Circuitry of travel by reason of the blocking of existing city streets is not compensable where it is damage suffered in common with the public generally.

d. The placing of medians in the center of a street or thoroughfare does not entitle the owner to damages inasmuch as this is in accordance with the police power even though right-of-way is acquired at the same time.

e. In computing damages or assessing damages for property taken containing valuable deposits of minerals, sand, gravel, or other types of materials, the land must be valued considering the potentialities that it has and the minerals it contains as land and cannot be valued on a yard time price basis of the quantity of minerals contained.

f. Damages arising by reason of the police power or exercise thereof are not compensable.

g. Damages during the period of construction such as noise, dust, inability of customers to conveniently get to the owner's property, the closing off of street and detour of traffic are not compensable.

h. Damages by reason of the loss of anticipated profits that the owner claims they could have made had they been allowed to continue the use of the property are not compensable.

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When severance damages are estimated, the Appraiser will support the damages by use of comparable sales. If comparable sales aren't available, other recognized methods may be used.

The classification of equipment and fixtures as realty or personalty is necessary so that the Appraiser can list and evaluate each piece of equipment. This is only required when the building they are located in is being acquired as a result of the project. In other words, valuation of the equipment and fixtures, as personalty, is not required, if the City is not acquiring the building in which they are located.

The Appraiser understands that it is the policy of the City to make two offers to the owner. One offer will include all realty, including the equipment and fixtures considered a part of the realty. The other offer will include all realty, including the equipment and fixtures considered a part of the realty, and all equipment and fixtures considered to be personalty.

Therefore, it is necessary that the Appraiser list and make a determination on each piece of equipment and fixture as to whether it is realty or personalty.

Further, the Appraiser is to identify tenant owned improvements.

The valuation document must contain sufficient documentation, including valuation data and the Appraiser's analysis of that data, to support the opinion of value being placed on the equipment and fixtures considered a part of the realty, and all equipment and fixtures considered to be personalty.

Estimates will be required in those instances where the "cost to cure" method is used in determining damages to the property remainder or when the Appraiser decides to employ or obtain estimates of cost to be used as a part of the valuation document. The following shall apply concerning estimates:

a. The estimate shall contain sufficient analysis of description to be fully explained;

b. The party making the estimate shall sign the estimate;

c. Salem will pay the reasonable fee required for making the estimate provided the following actions are taken;

d. The invoice is made out to the City;

e. The Federal Identification Number of the estimator is noted on the invoice;

f. The invoice and estimate have been reviewed and found acceptable by the

Appraiser;

g. The Appraiser has forwarded the invoice to the City with their recommendation for payment.

When a sub-contractor is required to complete a Specialty Report, the Appraiser shall furnish the sub-contractor's qualifications and experience, along with the bid

Page 20 Request for Proposal amount to complete the Specialty Report to the City for approval.

The bid amount of the sub-contractor will be paid as a part of the original contract if the City notifies the Appraiser that a Specialty Report is required during the request for proposals process; or as a supplement contract if the City and the

Appraiser determine it is necessary to obtain the services of sub-contractor after the contract for Appraisal and Associated Services has been executed.

The Specialty Report value will not arbitrarily be added to the valuation of the realty but shall be considered to the extent of the contributory value in establishing the value of the whole property.

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SECTION 3: PROPOSAL SUBMITTAL REQUIREMENTS

3.1 Organization of the Proposal

Proposers must organize and present their proposal materials in the same order as presented below and include page numbers. Proposals received without following this format or received after the deadline and stated place of deliver may be rejected as non-responsive.

Special bindings, colored displays, promotional materials, etc., are not desired. Emphasis should be on completeness and clarity of the content. Proposals shall be a maximum of twenty (20) single-sided pages. Resumes of key personnel may be included above and beyond the ten-page maximum.

3.2 Required information

A separate proposal for each Appraisal and Associated Service Category is required if a firm is submitting on more than one Appraisal and Associated Service Category.

The proposal shall include, as a minimum, the following items:

A. Cover Letter: A cover letter indicating the Proposer’s experience and/or understanding of the services to be performed and the approach to providing these services to meet the needs of the City. Include, as reference, the title and RFP number in the heading of the letter. State that services will be provided on a time and material basis. Signatory of this letter shall be authorized to contractually bind the Proposer to a contract with the City. Include your company name, address, contact person, phone number, and email address.

B. Organization Structure and Approach to this Project: Brief summary of your organization, structure, and size.

C. Qualifications and Experience: A summary identifying specific individuals within the Proposer’s firm who will provide these services to the City. Include all licenses, designations, or certificates they possess. Describe the number of years experience they have related specifically to the scope of services required by this RFP. Summarize their qualifications to provide these services to the City.

D. References: Provide at least three (3) current or previous public agency clients for whom work has been completed within the last three (3) years that the City may contact for performance verification. Include the name and phone number of the client’s project manager/contact person.

E. Support from the City Staff: A brief summary of how you intend to rely on the City staff to provide the required services. Specifically, address how you will mobilize to perform property inspections with the City’s designated Real Property Services

Specialist and Project Engineer.

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F. Work Sample: Provide a work sample of a complete appraisal for the Appraisal and

Associated Service Category you are proposing, in a summary format for Takings and

Damages.

G. Fee Proposal: A fee schedule of hourly rates broken down per staff classification.

These hourly rates will be incorporated in the COR contract and will be those used for invoicing the City for the duration of the contract. Hourly rates shall include billing rates for straight and overtime. Also, include a statement as to the categories of reimbursable expenses not included in hourly rates. The City will not pay travel time and travel expenses. In an effort to provide consistency in evaluation, including but not limited to the following categories: Lead Appraiser, Appraiser Assistant, and

Administrative Assistant.

SECTION 4 PROPOSAL EVALUATION CRITERIA AND SELECTION PROCESS

4.1 Evaluation Criteria

Although the cost of services is important, the City will not necessarily select the lowest-cost proposal for the award. The City reserves the right to award a contract based on initial proposal submittals or, at the sole discretion of the City, to conduct interviews with any or all of the proposers. Any interviews shall be held for the purpose of clarity of proposals and will not be scored. However, the Proposal Selection Committee members may use the interview process as an opportunity to adjust their original proposal scores to reflect any additional understanding of proposals that they derived from the interviews. In addition to submitted proposal information, the City reserves the right to use any information that it is aware of, independent of the submitted proposals, in determining consideration of contract award.

The City will not pay for any costs incurred by the proposer in…