Appendix_A_-_Scope_of_Services_With_RM_Final_(1).docx

RFP No. 7793 Scope of Services Appendix A Scope of Services

1. Scope

Contractor shall provide appraisal services for property insurance coverage in accordance with the standard practices of the appraisal industry.

The City shall identify annually which City owned buildings/structures will be appraised and re-appraised through a physical inspection. This appraisal will be conducted annually during a one week window typically sometime during August-September. Occasionally newly acquired properties may need to be appraised outside of the normally scheduled annual appraisal. Contractor shall provide an annual update service (trending) to be provided for all buildings or structures included in the Statement of Values (SOV) by the appraiser. The number of properties that are identified for a physical inspection will vary yearly, but will not exceed the Estimated Annual Expenditures based on a pricing sheet issued by the appraisal company.

2. Term of Agreement

The term of Agreement shall be for three years with a two-year renewal period by mutual agreement of the parties.

3. Estimated Annual Expenditures

Annual budget for appraisal services may not exceed $15,000 per appraisal year.

4. Minimum Qualifications

At a minimum, Contractor shall meet the following qualifications:

a. Provide a single point of contact to administer the Agreement.

b. Have a minimum of three (3) years of experience in the requested area of practice.

c. Firm must provide qualified staff to be able to complete in-person appraisals and trending reports.

d. Appraisers performing appraisal services must be Accredited Senior Appraiser (ASA) or Accredited Member (AM) designated and Uniform Standards of Professional Appraisal Practice (USPAP®) compliant.

e. Contractor shall have the necessary technology and devices needed to perform services as rendered on the contract for property insurance valuation.

5. Contractor’s Appraisal Requirements

At a minimum, Contractor shall provide and meet the following responsibilities:

a. Provide a pricing sheet for each property or type of property that encompasses all costs for providing a physical inspection for the property.

b. Provide an annual update service (trending) to be provided for all buildings or structures included in the SOV by the appraiser.

c. Be available to provide answers to questions regarding the annual appraisal report within 30 days of request by the City, at no additional cost to the City. Comment by Blaise Mazzola: Let’s discuss

d. Provide the square footage of each building/structure at the location/site.

e. Contractor shall work with city staff regarding naming conventions, appropriate titles, and any changes of each building at the physical appraisal walkthrough.

f. Provide the total new replacement cost and determine the valuation of the exclusions (as is commonly used in the insurance industry) for each structure at the location/site.

g. Understand that there is no minimum threshold to consider in the valuation of personal property.

h. Determine the valuation of building/structure contents, such as furnishings and stationary equipment while taking into consideration the following:

(1) Stationary equipment shall include HVAC units, boilers, and generators.

(2) Internal heavy equipment that is not titled, licensed or driven over the road is considered contents and shall be appraised.

(3) Signage specific to the building/structure shall be included if it is the standard practice of the appraisal industry.

(4) A modeling method of valuation is acceptable.

(5) Contractor shall be responsible for all data gathering required, as plans and detailed asset lists are not available at all locations.

Provide photographs of the exterior from at least four views and multiple photographs of the interior of the property showing the overall use and equipment or furnishings; when multiple buildings are on the property, include a diagram showing each structure at the location/site.

i. Property appraisers shall coordinate with the City’s representative for availability and scheduling dates to come on site for a property inspection. Appraiser shall also provide backup dates in case of emergency or natural disaster that causes a rescheduling.

j. Additional property appraisals that are requested by the City shall be completed within 14 calendar days from notice to proceed.

k. Written report to include all buildings and contents of each property assigned for appraisal and the trending report shall be completed within 14 days of the completion of the scheduled visit.

l. Any revisions requested must be completed within 14 days of the request.

m. Provide any additional information that may be relative or customary to property insurance valuations.

6. City’s Responsibilities

At a minimum, the City shall provide and meet the following responsibilities:

a. Select buildings/structures to be appraised.

b. Provide Contractor with access to City buildings/structures.

c. Provide Contractor with previous appraisal and valuation data.

d. Provide Contractor with single point of contact.

7. Identification of Employees

Contractor’s employees, agents and subcontractors shall wear identification badges (furnished by Contractor) exhibiting its company name and the employee’s name while on City property providing services under this Agreement.

8. Reports

Contractor shall provide the following reports, in an electronic format, to the City within 14 calendar days of completion of its Appraisals:

a. Building Detail Report of each separate location appraised to include the following information:

(1) Location Data fund, department, name, address, square feet, number of stories, date constructed, date renovated if any, framing, ISO class

(2) Structure Data foundation, exterior walls, roofing, structural floor, floor covering, ceiling, partitions, fire safety & security, building service systems, additional features, equipment

(3) Note any information that does not fit in the categories above.

(4) Photos and site diagrams when multiple buildings involved.

(5) Replacement Cost New, valuation of exclusions, valuation of replacement cost less exclusions, valuation of equipment

b. Building Summary Report of the detailed appraised buildings/structures to include the following information:

(1) Building description and location

(2) Year Built

(3) ISO Classification

(4) No. Stories

(5) Sq. Footage

(6) Replacement Costs New

c. Statement of Values (“SOV”) / Trending Report to include the following information: (This is a customized report and based on the needs of the City. If additional fields are added, Contractor shall have a maximum of 30 calendar days to complete.):

(1) Main Category

(2) City Department

(3) Description

(4) Location

(5) Building / Property / Auto Values

(6) ISO Classification

(7) Protection Class

(8) No. Stories

(9) Flood Zone

(10) Year Built

(11) Basement

(12) Sq. Footage

(13) Sprinklers / Alarms

d. Special Reports

Contractor shall have a minimum of 30 calendar days to complete any special reports as requested.

9. Pricing

All costs shall be included in proposed fees. No additional fees and/or charges shall be paid by the City to either the Contractor or any subcontractor other than those specified in the Contractor's offer for the services specified in this RFP and subsequent Agreement.

10. Price Escalation/De-escalation

All prices (“base prices”) shall remain firm for the initial term of the agreement. After the initial term, adjustments in prices shall not exceed the U. S. Bureau of Labor Statistics Employment Cost Index (“ECI”) percent change for the most recent twelve month period (see http://www.bls.gov/, Employment Cost Index, Wages and salaries (not seasonally adjusted): Employment Cost Index for wages and salaries, for private industry workers, by occupational group and industry, management, professional and related. Approval of the price adjustment will establish a new base price, from which subsequent adjustments will be calculated.

11. Account Management

Contractor shall provide an Account Manager, who will be readily available during normal business hours to administer the Agreement. Contractor is responsible for notifying the City with any changes in account manager or contact information. Account Manager’s responsibilities shall include, but are not limited to, overseeing all aspects of implementation, servicing, reporting, and issue resolution.

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