Policy 7-1 PRE-SELECTION OF CONTRACTS FOR CDBG HOMEOWNER REHABILITATION

AMENDMENT TO ADMINISTRATIVE POLICY # 7-1


DISTRIBUTION:    Mayor and Council    
    All Departments

SUBJECT:    Procedures for selection of contractors for the CDBG Homeowner Rehabilitation  Program, amended to include the Rental Rehabilitation and the 312 Loan Programs.

STATEMENT
OF POLICY:    That as of the effective date of this Amendment the procedures outlined in Administrative Policy #5.20 for the CDBG Homeowner  rehabilitation program, shall be amended to include the 312 Loan Program.  We recognize there are differences in selection of Contractors for the Rental Rehabilitation Program, but once the  Bids have been opened, the procedures for Administrative Policy #5.20 shall apply to Rental Rehabilitation also.

RECISION:    None

EFFECTIVE
DATE:    August 26, 1988


Melissa Byrne
City Manager

******

ADMINISTRATIVE POLICY 7 -1

DATE:    July 1, 1981

DISTRIBUTION:    Mayor and City Council
    All Departments

SUBJECT:    Procedures for selection of contractors for the CDBG homeowner rehabilitation program.

BACKGROUND:    The CDBG Homeowner Rehabilitation Program provides the means through which qualified homeowners can have their houses rehabilitated     to assure safe decent, habitable homes.  The Program has been a stabilizing force and has reduced blighting conditions within neighborhoods.

STATEMENT
POLICY:    The owner of the house to be rehabilitated (homeowner) and the person(s) to perform the rehabilitation (contractor) are the parties to the rehabilitation contract.  The City of Lawton is not a party to the contract, but it does assist the homeowner by overseeing the work being done, by conducting progress and final inspections and making payments to the contractor through the homeowner.  To insure that the rehabilitation work is done in a professional and quality manner, at the least cost, the competitive bidding method will be adopted in selecting contractors to do the housing rehabilitation work.

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PROCEDURE:    A.    Contractors List.  The Housing Assistance Division shall maintain a current list of rehabilitation contractors.  The list shall include the names of persons who wish to compete in any rehabilitation work.

1.    For a person to be placed on the Contractors List, a Statement of Contractors Qualification  (Exhibit A) must be completed and filed with the Housing Assistance Division (HAD).

2.    When a contractor desires to be removed from the list, the contractor shall do so by notifying HAD.  To be reinstated to the list, the contractor must complete and     file a new Statement of Contractors Qualification.

B.    Work  Write-up and Estimates.  When HAD determines that the homeowner applicant  gualifies for rehabilitation assistance, a work write-up and a cost estimate of the rehabilitation work will be prepared.

1.    HAD will prepare a work write-up listing, by line item, the nature of rehabilitation work to be done.

2.    HAD will forward a copy of the work write-up for each     rehabilitation to Building and Safety Division at the same time that HAD invites contractors to bid on the rehabilitation. The work write-up copy forwarded to Building and Safety Division will have a notation as to the date, time and place for the bid opening for that particular rehabilitation work.

3.    Building and Safety Division will prepare written line item cost estimates on the work write-up it receives from HAD. Written estimates for each rehabilitation will be individually sealed in an envelope and forwarded to HAD so as to reach HAD in time for bid openings as notated in the work write-up (See b (2) above).

C.    Selection of Contractor.  The homeowner shall be given a copy of the Selection of Contractor form (Exhibit B).  The homeowner will be requested to elect one of two methods, indicate the method selected, and sign the form.

1.    Selection by homeowner (Method la)
        
(a)    The homeowner shall be provided a copy of the contractors list from which the homeowner may select four contractors within a 24-hour period. During the 24-hour period, the homeowner may


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contact any contractor on the list to inquire as to gualification, experience, references, etc. HAD shall not in any manner suggest or recommend which contractor should be selected.

(b)    The homeowner will select four (4) contractors. The homeowner has the option of selecting the contractors from the list, contractors who are not on the list, or a combination of contractors from the list and those who are not on the list.  In this situation, the contractors selected who are not on the list shall complete the Statement of Contractors Qualification and file it with HAD. The Senior Housing Specialist shall then verify the information contained therein.  If, in the opinion of the Senior Housing Specialist, it is     likely that any or all of the off-list contractors might not do quality work, he shall report that matter to the Community Development Director who will make the final determination whether the contractor (5) will bid on the rehabilitation project.

( c)    The contractors selected by the homeowner will     be invited to individually submit a sealed bid on the rehabilitation work.  The lowest bidder, whose bid is within the rriax:aum allowable cost and cost estimate, shall be awarded the contract.

2.    Selection by Other than by homeowner (Method 1b)

(a)    In the event that the homeowner elects not to select any contractor, HAD will make the selection.

(b)    The Senior Housing Specialist shall select, from the Contractors List, four contractors who will be contacted and requested to submit sealed bids on the rehabilitation work.  The lowest bidder, whose sealed bid is within the maximum allowable rehabilitation cost and cost estimate, shall be awarded the contract.

(c)    To insure that all contractors on the List are given the opportunity to bid, the Senior Housing Specialist will develop a system of selecting four contractors on a rotational basis.  The basic guide-line is that every contractor on the list must have been invited to bid equally on a rotational basis. Thus, if there are 20 contractors on the list, each of them will have     been invited to bid once at the end of the bid solicitation period for the fifth rehabilitation.

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3.    Rehabilitation Cost and Contract Price

(a)    Rehabilitation Cost.  The maximum allowable cost for each rehabilitated unit shall not exceed the amount stated in Council Policy No. 26.

(b)    Contract Price.  The contract price shall not exceed 10% of the written estimate prepared by Building and Safety Division.  If the lowest bid exceeds 10% of the Building and Safety Division estimate, the Senior Housing Specialist will attempt to negotiate with the lowest bidder as outlined in paragraph 4 below.

4.    Rejection and Negotiation

(a)    Rejection.  HAD, on behalf of the homeowner, may reject any and all bids.

(b)    Negotiation.
(1)    Where all the bids exceed the maximum allowable rehabilitation cost, the Senior Housing Specialist will attempt to reduce the total contract price by deleting, with the concurrence of the omeowner, some work by "line item". After such deletion the lowest bidder may be awarded the contract.
(2)    If the overall cost still exceeds the maximum allowable cost, the Senior Housing Specialist will negotiate with the lowest bidder to bring the total contract price within the maximum allowable cost without degrading the quality of the overall rehabilitation.

(3)    Should the borrener, under any situation, elect to pay the contract price in excess of the maximum allowable cost, the Senior Housing Specialist will negotiate with the lowest bidder only with the advice and consent of the homeowner.

5.    Bid Solicitation Documents.  The bid solicitation documents will include, as a minimum, the following information:

(a)    Name and address of homeowner
(b)    Nature/scope of the rehabilitation work to be done.
(c)    Date, time, and place for submission of sealed bids and bid opening.


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REFERENCES:    Council Policy No. 26

RECISION:    None

EFFECTIVE DATE:    July 1, 1981

        

                                          
Gilbert H.  Schumpert
City Manager