RFQ DN0121

GUY LAMMERS, CONTRACT ADMINISTRATOR (Adv. Date: October 18 , 2011 ) E-mai l : GUY.LAMMERS@LADWP.COM

DEPARTMENT OF WATER AND POWER

OF

THE CITY OF LOS ANGELES

No. RFQ DN0121

REQUEST FOR QUALIFICAITONS (RFQ) FOR

APPRAISAL SERVICES LADWP Copyright 2011

A DOWNLOADABLE REQUEST FOR PROPOSAL DOCUMENT IS AVAILABLE AT THE ELECTRONIC-REQUISITION-SOLICIT-PROCURE (eRSP) ONLINE

PURCHASING WEBPAGE. HTTP:/ /WWW.LADWP.COM/eRSP REGISTRATION IS REQUIRED.

NO HARD COPIES WILL BE AVAILABLE FOR MAILING OR PICKUP

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Department of Water & Power The City of Los Angeles

Request For Qualifications (RFQ)

No. RFQ DN0121

Appraisal Services

The Los Angeles Department of Water and Power (LADWP) is requesting qualifications from experienced Appraisers and appraisal management companies interested in providing appraisal services. Qualifications shall be submitted in accordance with the requirements set in this document. One electronic version via LADWP’s electronic-Request-Solicit-Procure (eRSP) Online Purchasing System and identical hardcopy written responses meeting the qualifications shall be considered. All materials submitted shall become a part of the response to this Request for Qualifications (RFQ). Appraisers must meet the Minimum Requirements in Section 6.5.1 of this RFQ as a first step in evaluating all received responses. Please submit your hardcopy written response, one original and three (3) copies, no later than 1:00 p.m. on November 15, 2011, in a sealed package, clearly marked with the RFQ number (“Response”). In addition, please submit one electronic version of your proposal no later than 1:00 p.m. on November 15, 2011, via the electronic-Request-Solicit-Procure (eRSP) system. Responses submitted via electronic mail or facsimile will not be accepted. Both the electronic and hardcopy proposal submittals must be received on or before 1:00 p.m. on November 15, 2011, or the proposal is non-responsive to this RFQ. The LADWP employs the electronic-Request-Solicit-Procure (eRSP) online purchasing system for posting its Requests for Qualifications/Proposals and receiving bid documents. Bidders shall log on to the LADWP’s website at http://www.ladwp.com and register at the eRSP online purchasing system web page http://www.ladwp.com/ersp to access, download, print, complete, sign, scan, and upload all required proposal documents electronically prior to the proposal due date and time. Proposal submittals shall be clean, legible, complete, and with no missing page(s).

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Bidders shall submit all uploaded proposal submittals in a portable document format (PDF) with an optimal resolution of 300 dpi. An uploaded proposal submittal shall be a true representation or an identical copy of the paper format original. The content and number of pages of both the electronic scanned copy and the paper original shall be identical with no alterations. Address the hardcopy Response to: Response shall be identified as:

Reynan Ledesma RFQ No. DN0121 Manager of Real Estate Title of RFQ: Appraisal Services Department of Water and Power Due date: November 15, 2011 c/o Vendor Liaison Center 111 North Hope Street, Room L43 Los Angeles, CA 90012

Received hardcopy Responses will be held, unopened, in a secure place until the response due date and time has elapsed. Responses shall be opened and their contents secured to prevent disclosure during the process of negotiating with qualified Appraisers. The Responses shall be opened publicly, but only the names of the Appraisers shall be revealed. Adequate precautions shall be taken to treat each Appraiser fairly and to insure that information gleaned from competing Responses is not disclosed to other Appraisers during this process. All hardcopy Responses shall be opened publicly on November 15, 2011 at 1:05 p.m. or as soon thereafter as practical. The location of the response opening shall be 111 North Hope Street, Room L43, Los Angeles, CA. All hardcopy Responses must be received by the LADWP at the exact address listed above. No allowance will be made for delays in the U.S. Mail, consumer mailing services, the LADWP internal mail service, off-site parking, or clearing security at the entrance to the John Ferraro Building. Responses will be time stamped prior to the1:00 p.m. closing time, unless otherwise instructed (by addendum). Submittals received after this time and date will be considered late and will not be opened or considered for evaluation and will be returned unopened in accordance with purchasing policies. For questions regarding this RFQ, submit all questions through eRSP using the Q&A tab. Questions must be received no later than October 31, 2011. LADWP’s responses to the questions will be posted on eRSP no later than November 7, 2011. LADWP recommends all proposers to visit the abovementioned eRSP Q&A tab on a regular basis as the responses may be posted earlier than the posting date. Instructions for how to use the Q&A functionality can be found on the eRSP splash page under the heading “User Guides” under bullet number 4, “Electronic Bidding Guide (PDF),” pages 5-7. The LADWP will not be responsible for any other explanation or interpretations via any other communication medium.

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Table of Contents 1.0 Introduction 61.1 Purpose 62.0 Terminology 63.0 Supporting References 64.0 Statement of Work 64.1 Scope of Work 64.2 Scope of Appraisal Reports 74.3 Deliverables 124.4 Schedule 125.0 Evaluation Criteria 125.1 Overview 125.2 Minimum Requirement (Pass/Fail) 135.3 Letter of Transmittal 135.4 Assigned Personnel 135.5 Fees and Labor Cost 136.0 Requirements for Qualifying 136.1 Writing Requirements for Responses to RFQ 136.2 Coverage of RFQ Items 146.3 Letter of Transmittal 146.4 Table of Contents 146.5 Assigned Personnel 146.6 Compensation: Fees and Labor Costs 156.7 References 156.8 Previous Services Provided to City of Los Angeles 156.9 Years Active 166.10 Office of Real Estate Appraisal (OREA) 16

6.11 Non-Discrimination/Equal Employment Practices/Affirmative Action Construction & Non-Construction Contractors (AAP) 16

6.12 Living Wage Ordinance 166.13 Child Support 176.14 Supplier Diversity 176.15 Insurance Requirements 176.16 Los Angeles City Tax Registration 176.17 Task Management System 186.18 Bidder Contribution and Fundraising Limits 187.0 Contract Period 197.1 Contract Period 198.0 Conditions for Submitted Qualifications 198.1 Responsiveness 198.2 Right To Reject 198.3 Incurred Costs 19

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8.4 Dispositions of Proposed Qualifications 198.5 Discussions 208.6 Qualified Appraisers 208.7 Council Review 208.8 Protest Policy 209.0 Standard Contract Provisions 209.1 Supplier Diversity 2010.0 Insurance Requirements 2310.1 Additional Insured Status Required 2410.2 Severability of Interests and Cross Liability Required 2410.3 Primary and Non-Contributory Insurance Required 2410.4 Deductibles Subject to Department’s Discretion 2410.5 Proof of Insurance for Renewal or Extension Required 25

10.6 Submission of Acceptable Proof of Insurance and Notice of Cancellation 25

10.7 Claims-Made Insurance Conditions 2510.8 Failure to Maintain and Provide as Cause for Termination 2510.9 Sub-Contractor Compliance 2610.10 Periodic Right to Review/Update Insurance Requirements 2610.11 Specific Insurance Requirements 2610.12 Indemnification 26

APPENDIXES Appendix A1 Terms and Conditions Appendix A2 Draft Professional Services Agreement Appendix B Business Tax Registration Certificate Appendix C Affirmative Action Plan Appendix D Contract Insurance Requirements Appendix E Rate Sheet Appendix F Child Support Obligations Appendix G Living Wage Ordinance Appendix H Bidder Contributions CEC Form 55 Appendix I Protest Policy and Procedures

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1.0 INTRODUCTION

1.1 Purpose

The purpose of this Request for Qualifications (RFQ) is to identify qualified Appraisers available to meet Los Angeles Department of Water and Power’s (LADWP’s) needs. The LADWP is soliciting a statement of qualifications from Appraisers for projects related to LADWP Renewal Portfolio Standards (RPS). These projects include but are not limited to, the Barren Ridge Renewable Transmission Line Project, easements, acquisitions, dispositions, rental studies and other related appraisal assignments. Also, this qualified list of Appraisers may be asked to provide services for non-RPS projects. The LADWP will establish a qualified list of California or appropriate state licensed Certified general real property Appraisers, appraisal firms, and appraisal management companies and a qualified list of personal property Appraisers (collectively “Appraisers,” unless otherwise specified).

2.0 TERMINOLOGY

A. Date of Value – Last day of inspection B. Date of Appraisal – Current date or to be determined C. Fair Market Value – The highest price on the date of valuation that would be

agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obligated to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property for which the property is reasonably adaptable and available.

D. Fee Simple Estate – Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

E. Leased Fee Interest – An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

3.0 SUPPORTING REFERENCES Appraisal Institute – The Dictionary of Real Estate Appraisal 4th Edition 4.0 STATEMENT OF WORK

4.1 Scope of Work

This RFQ is requesting a statement of qualifications for appraisal services. When the LADWP identifies a need for appraisal services for real property and/or personal property, LADWP will select Appraisers from the qualified list to submit proposals based on the general Scope of Appraisal Reports listed below in

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section 4.2, and based on the specific scope of work requested by the Department in its Task Order Proposal. Each appraisal requested could have additional and/or special guidelines set forth in a Task Order Proposal related to the property.

Depending on the need for real property and/or personal property appraisal services a Task Order Proposal will be developed. A Task Order Proposal will be an invitation for qualified Appraisers to bid upon a proposed scope of work or set of deliverables as described by LADWP, and to respond within a specified timeframe and in a prescribed form and manner. The Proposal and Appraiser’s Response will be negotiated to form a Task Order, which will be incorporated into the Professional Services Agreement binding the parties. A template of the Professional Services Agreement is attached to this RFQ as Appendix A2 and is incorporated into this RFQ by reference.

The Task Order Proposal could be assignment specific, such as appraising a certain parcel or it could be project-area general, such as requesting various parcels appraised in a given area(s) on an as needed basis. Based on the best value to the LADWP, a contract or multiple contracts may be awarded based on the terms setout in the Task Order Proposal. The Appraisers selected to participate in a given Task Order Proposal will be based on the qualifications presented in response to this RFQ.

Below, in section 4.2, is a list of general standards expected by LADWP for appraisal services.

4.2 Scope of Appraisal Reports

Below is an example of typical general standards that will be expected in Appraisal Reports for LADWP.

A. Report Appraisal Standards

When a Notice to Proceed is issued, Appraisers are required to provide confidential Appraisal Reports that at a minimum contain the below specifications as conditions of acceptance by the LADWP.

B. Confidentiality Agreement

The Appraiser shall keep all aspects of this Assignment Confidential from all non-intended users including but not limited to: lenders, title companies, city agencies, utility companies, assessors, other Appraisers, and members of your staff or company that are not directly involved in this assignment. All persons listed in the Certification shall sign a Confidentiality Agreement prepared by the City Attorney. The agreement shall be all-inclusive and include, but not be limited to, the appraisal, all

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knowledge, facts, files and work product of the assignment. All requests for information, data, or files regarding this assignment shall be immediately referred to the Manager of Real Estate at LADWP.

C. Subject Properties Locations

The subject property location will be described in each Task Order. The description will include all of the following if available: location, address, size, use, Assessor’s Parcel Number (APN) and other as per the Task Order.

D. Purpose

Once a Notice to Proceed is issued, an Appraiser will appraise the properties as identified in the Task Order to determine the Fair Market Value of the Fee Simple Estate and Fair Market Value Leased Fee Value, if applicable, for the total property for possible acquisition, sale, or for purposes specified in the Task Order.

E. Date of Value

Last Day of inspection

F. Date of Appraisal

Current date or to be determined

G. Subject Property Sales History

Identify the three most recent years of sales history of the subject property or as required by the Uniform Standards of Professional Appraisal Practice (USPAP), whichever time period is greater.

H. Interest Appraised

Once a Notice to Proceed is issued, the Appraiser will appraise the Fair Market Value of the Fee Simple Estate of the subject property and the leased fee value, if applicable, or as otherwise stated in the Task Order.

I. Client of the Appraisal

Los Angeles Department of Water and Power or as otherwise defined

J. Intended Use and User

The Appraisal Report is for the LADWP, including its Board of Water and

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Power Commissioners, and as identified in the Task Order.

K. Appraisal Standards Full compliance with USPAP (2010 edition or latest edition) and Specific Client Standards as set forth in this document and the appraisal contract is required. All real property appraisers shall be state licensed as Certified General Appraisers. A copy of the Appraiser’s licenses shall be submitted prior to the commencement of the assignment.

Personal property Appraiser must show qualifications for the Task Order.

L. Executive Summary

An Executive Summary or Summary of Salient Facts shall be included.

M. Personal Inspection

All Appraisers listed in the appraisal certification are required to make a personal inspection of the subject property and the comparable properties.

N. Improvement Description

All improvements must be described and analyzed in the Appraisal Report. The improvement description should include the size, condition, quality, construction materials, actual age, effective age and any other relevant data for each improvement. The Appraisal Report should have an appropriate drawing to illustrate the size and shape of the buildings.

O. Inspection and Analysis

The Appraisal Report shall at a minimum include the following: 1. Identify all inspection dates for the subject properties and all

comparable data. 2. Perform a regional and local analysis of the area which demonstrates

the Appraiser’s location awareness or steps taken to become knowledgeable of the area.

3. The Appraisal Report should include a discussion of all public and private restriction that effect the subject property’s Fair Market Value.

4. The Appraisal Report must, at a minimum, include a description and analysis of the subject property’s zoning, planning, site size, site shape, access, water rights, real estate taxes, utilities available and similar items.

5. Clearly identify the highest and best use as vacate and highest and best use as improved, if applicable.

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6. Disclose the use of subcontractors for special technical assistance beyond that of typical office support. Appraisers must obtain prior approval from the LADWP for subcontracting any appraisal services.

7. The Appraisal Report will have a complete highest and best use section as described below.

P. Letter of Transmittal

The letter of transmittal shall clearly state all of the real property value conclusions and all extraordinary assumptions of the report. It shall also contain a brief description of the properties appraised, interests appraised, dates of value, date of report, client, intended use, intended user, signature, type of Appraisal Report and report type.

Q. Highest and Best Use

The Appraisal Report will contain a highest and best use analysis and the property will be appraised to the highest and best use. If specified in the Task Order Proposal, the Highest and Best Use section of the Appraisal Report will review, discuss, and analyze the possibility that the Highest and Best Use of the subject property could be for solar power or geothermal electrical power production. If applicable, the information on solar and geothermal potential will be provided by LADWP.

R. Comparable Information

Each comparable land sale, improved sale, rental comparable and rate of return comparable shall be described in detail on a separate data sheet that will include the verification date and source, as well as other important features. A comparable location map that locates the subject property and all comparable data shall be included along with a summary table of the comparable data. All reports must include an adjustment grid that delineates each item of adjustment, as well as the direction and amount of each adjustment made. All adjustments are to be discussed in the pertinent analysis section of the Appraisal Report. The Appraisal Report must contain in the analysis a minimum of three (3) non Los Angeles Department of Water and Power comparable transactions.

S. Method of Appraisals – Scope of Assignment

Describe all information analyzed, the appraisal procedures followed, and the reasoning that supports the analysis, opinions and conclusions. All appraisal methods shall be considered and all appropriate appraisal methods shall be applied. If standard approaches to value are not included, the Appraisal Report must contain a discussion of the reason for

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the exclusions.

T. The Cost Approach

This approach if applicable will value the property as a whole and will set forth the replacement or reproduction cost (which ever is appropriate) new including direct costs, indirect costs and entrepreneurial profit. Indirect costs shall include, but not be limited to land carry, site costs, utility connection fees, estimated construction time, construction loan interest, taxes, long-term financing costs, insurance, permits and fees, architectural fees and engineering fees. A depreciation analysis will estimate total life, remaining economic life, effective age, and total accrued depreciation from all causes. All cost estimates will be referenced to cost manuals (including date and page) and cost services, and/or market data comparables. Before proceeding with this approach, the Appraiser will receive approval from LADWP for the choice of using the replacement or reproductive cost approach.

U. The (Sales) Comparative Approach

This required valuation method will include, where relevant, a direct comparison of sales, rental data and rates of return of other comparable properties. The Comparison Approach is required to include a direct comparison of land, improvement, market rent and or total property.

V. The Income Capitalization Approach

This approach, if relevant, will include an estimate of market rent to determine market rent to the total property, land and/or improvements. Values will be estimated base on the direct capitalization approach or discounted cash flow methodologies.

W. Reconciliation

The Appraisal Report shall reconcile the results of all approaches employed and provide an analysis that results in a final conclusion of the fair market value for the total property and the land value of the property. The reconciliation will state the effective dates of value, the interests appraised and the properties appraised.

X. Pictures

The Appraisal Report will have pictures showing the property and all improvements to the subject property, including a representative amount of interior pictures of the subject property. Also, the Appraisal Report will

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have a representative amount of street scenes of the subject property. In addition the report will have representative picture for all comparable data including sales and rentals.

Y. Special Instructions

All special instruction will be provided in the Task Order. Any changes from the minimum standard and Task Order must be approved by LADWP in advance of the completion of the Appraisal Report.

4.3 Deliverables

A. Report Type

Self-Contained Report

B. Number of Reports

The Appraiser will prepare and deliver one bound copy of the report by the due date. That copy will be reviewed by the LADWP. When the Appraisal Report is reviewed and approved by LADWP, the Appraiser will deliver three (3) bound copies, one unbound copy and one electronic copy of the Appraisal Report.

C. Other

Based on the LADWP’s need for other appraisals and appraisal management, assignments are possible. This RFQ does not limit the possible assignment in anyway.

4.4 Schedule

A. Due Date

The due date will be determined in the Task Order.

5.0 EVALUATION CRITERIA

5.1 Overview

Each Appraiser will be evaluated by an Evaluation Committee comprised of qualified LADWP staff, and LADWP will select Appraisers that will provide the best overall value. The LADWP will evaluate each bidder’s written proposals on the selection criteria listed below.

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5.2 Minimum Requirements (Pass/Fail)

The Appraisers must meet the Minimum Requirements in Section 6.5.1. Responses to this RFQ will be evaluated against these requirements as a first step in assessing all received responses.

Appraisers not able to meet the minimum requirements will be deemed non-responsive to the RFQ. Those found in compliance will be ranked against the evaluation criteria listed below.

5.3 Letter of Transmittal

LADWP will evaluate the Proposer’s understanding of the methodology and time frame and market area as seen in Section 6.3.

5.4 Assigned Personnel

LADWP will evaluate the Appraisers’ qualifications and experience with the property type and area as seen in Section 6.5.

5.5 Fees and Labor Cost

LADWP will evaluate the proposed cost to the LADWP as described in Section 6.6.

6.0 REQUIREMENTS FOR QUALIFYING

6.1 Writing Requirements for Responses to RFQ Submitted responses shall conform to the following requirements: A. One electronic version via LADWP’s eRSP Online Purchasing System and

identical hardcopy written responses shall be submitted. One original hardcopy written response, and three (3) copies shall be enclosed in a single, sealed package plainly marked with the words “Response to LADWP Appraisal RFQ.”

B. Responses shall be prepared simply and economically, without the inclusion of unnecessary promotional materials.

C. Responses submitted shall be written in the English language. D. Responses shall be submitted on recycled paper that has a minimum of 30-

percent post-consumer recycled content. E. The Responses shall be duplex copied (double-sided pages). F. Neon or fluorescent paper shall not be used. G. Company/Corporate letterhead or stationery that accompanies the Response

is exempt from these requirements.

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Responses to this RFQ shall be made in accordance with the format set forth in this section and must follow the same titling and numbering schemes. All pages of the proposal must be consecutively numbered.

6.2 Coverage of RFQ Items

The Response must include all the RFQ requirements. Any limitation in the ability to supply information requested in the RFQ or to support or to perform a particular function should be stated in detail in the appropriate section of the Response. Any omissions or deviations from the requirements set forth in this RFQ shall be fully described. Failure to adhere to the following format may be a cause for the rejection of the Response as non-responsive.

6.3 Letter of Transmittal

Each Response to this RFQ must contain the letter of transmittal including the following information: A. A statement that all the requirements in the RFQ are met or B. A summary of exceptions taken to the RFQ requirements, Scope of Work, specifications, and/or proposed contractual terms and conditions. C. The names of individuals authorized to represent the Appraiser, the titles, addresses, telephone numbers, and e-mail addresses. D. An officer authorized to bind the Appraisal Management Company, if applicable, must sign each Response on behalf of the Appraisal Management Company. E. Each response to this RFQ must include the following declaration on the

transmittal letter: This Response is genuine, and not sham or collusive, nor made in the interest or on behalf of any person not herein named; the Appraiser has not directly or indirectly induced or solicited any other Appraiser to put in a sham bid, or any other person, firm or corporation to refrain from submitting a response; and the Appraiser has not in any manner sought by collusion to secure for themselves an advantage over any other Appraiser.

6.4 Table of Contents

Include a clear identification of the Response by section and by page number.

6.5 Assigned Personnel

Please provide the names and California or appropriate state Certified General Real Estate Appraisal License Numbers for the principal appraiser and all staff appraisers that will sign the Appraisal Report. Please provide a list of appraisal reports, certifications and data sources that meet the requirements in Section 6.5.1.

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The Appraiser must list data sources available in the Appraiser’s office such as Loopnet, CoStar, Dataquick, LandVision, Parcelquest, MetroScan, Multiple Listing Service (MLS) by County or similar provider. The Appraiser must list other appraisal tools available to the Appraiser such as Argus, American Industrial Real Estate (AIR) and others.

The Appraiser must list the real and personal property types that existing appraisal staff is qualified to appraise and the market area that the office staff service.

6.5.1 Minimum Requirement for Real Estate Appraisers

Minimum Qualifications of the Appraiser Signing the Appraisal Report for this Assignment

The Appraiser must be California or appropriate state certified General Appraiser in good standing. It is preferred the signing Appraiser have an MAI designation (from the Appraisal Institute), but it is not required. Provide a copy of the Appraiser’s California or appropriate state certification. Proposals without a copy of the Appraiser’s California or appropriate state certification will be deemed non-responsive and will not be evaluated further.

6.6 Compensation: Fees and Labor Costs

Please provide your general fee quote range for a self contained Appraisal Report for the following property types.

Land Office building Industrial Building Neighborhood Shopping Center Retail Store Front

Additionally, please provide labor costs for such items as cost for court preparation, expert testimony and similar items. A suggested rate sheet is found in Appendix E.

6.7 References

Please provide company name, contact name, phone number and contact information of three (3) references you feel would provide LADWP with insight for its selection process.

6.8 Previous Services Provided to City of Los Angeles

Has the Appraiser, within the last three years, rendered any service to the

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City of Los Angeles or the LADWP, either as a contractor or subcontractor, either under the current Appraiser's name or any other name or organization? If so, please provide details.

6.9 Years Active

Please provide the amount of years active for each appraiser listed in the qualification submission.

6.10 Officer of Real Estate Appraisal (OREA)

Please explain all disciplinary action(s) listed on the California’s OREA web site, or the appropriate state equivalent, related to the appraiser(s) included in the qualification submission.

6.11 Non-Discrimination/Equal Employment Practices/Affirmative Action

Construction & Non-Construction Contractors (AAP)

The Appraiser and each of its known subcontractors shall complete and file an acceptable Affirmative Action Plan as set forth in Appendix C of this RFQ as a part of its written Response responding to the RFQ. Each Appraiser shall submit the following properly completed forms and documents for the City of Los Angeles’ Affirmative Action Program:

1. A signed Affirmative Action Certificate Form. 2. A signed Affirmative Action Plan. This plan must be reviewed and

approved by the LADWP to determine its acceptability. Each of the above documents, if approved, shall be effective for twelve (12) months following the date of approval for the Affirmative Action practices. An Affirmative Action Plan shall be in effect and on file with the LADWP for the duration of the contract period.

6.12 Living Wage Ordinance

Submittal of a Response to this Request for Qualifications stipulates and confirms that the undersigned (Proposer) agrees to comply with the applicable provisions of the Service Contract Workers Retention Ordinance (Section 10.36) and Living Wage Ordinance (Section 10.37) of the Los Angeles Administrative Code (SCWRO/LWO).

SCWRO/LWO forms must be completed by the successful proposer, only. Refer to instructions attached in Appendix G.

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6.13 Child Support Policy

In accordance with the City of Los Angeles Ordinance No. 172401, the LADWP requires all contractors and subcontractors performing work for the Department to comply with all reporting requirements and wage earning assignments relative to court ordered child support. All bidders and Appraiser's are required to complete the Certification of Compliance with Child Support Obligations in Appendix F. Failure to return the completed certification as part of the bid or proposal may result in the bid or proposal being deemed non-responsive to these specifications.

6.14 Supplier Diversity

It is the policy of the LADWP to provide Women Business Enterprises (WBEs), and Minority Business Enterprises (MBEs), and all other business enterprises an equal opportunity to participate in the performance of all LADWP contracts. Bidders shall assist the LADWP in implementing this policy by taking all reasonable steps to ensure that all available business enterprises, including WBEs and MBEs, have an equal opportunity to compete for and participate in the work being requested by this RFQ.

State whether the Appraiser is a Women or Minority Business Enterprise. The LADWP encourages Appraisers to use Women and Minority Business Enterprises and all other business enterprises and equal opportunity to participate in the performance of this contract. Provide the company name, contact person, address, and telephone number of all proposed subcontractors. If the Appraiser or any of the subcontractors are WBE/MBE firms, attach a copy of their certification.

6.15 Insurance Requirements

Describe the Appraiser’s ability to comply with the Insurance Requirements presented in Appendix D of this document. The Appraiser should know before any contract is issued with a notice to proceed, the insurance requirements must be met.

6.16 Los Angeles City Tax Registration Certificate

Provide the Appraiser’s Business Tax Registration Certificate or Business Tax Exemption Number. Policy regarding Business Tax Registration is presented in Appendix B.

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6.17 Task Management System

Once the list of qualified appraiser is established, the Department may issue Task Order Proposals for a specific scope of work. Appraisers will have the opportunity to submit Task Order Proposal Responses. Task Order Proposal Responses may be based either upon a lump sum or a time and materials basis, or both. The Department shall review and evaluate Task Order Proposal Responses that meet the specifications and technical requirements. The Department and the appraiser(s) will reach a mutually agreed upon Task Order, which will include the full and complete understanding among the Parties regarding the work and services. Awards will not be made strictly on lowest bid.

6.18 Bidder Contributions and Fundraising Limits

Appraisers who submit a response to this RFQ (qualifiers) are obligated to fully comply with City Of Los Angeles Charter Section 470(c)(12) and related ordinances, regarding limitations on campaign contributions and fundraising for certain elected City officials or candidates for elected City office if the contract is valued at $100,000 or more and requires approval of a City elected official. Additionally, Appraisers are required to provide and update certain information to the City as specified by law. Any Appraiser subject to Charter Section 470(c)(12) shall include the following notice in any contract with a subcontractor expected to receive at least $100,000 for performance under this contract:

Notice Regarding Los Angeles Campaign Contribution and Fundraising Restrictions

As provided in Charter Section 470(c)(12) and related ordinances, if you are a subcontractor on City of Los Angeles contract # _________, pursuant to City Charter Section 470(c)(12), subcontractor and its principals are prohibited from making campaign contributions and fundraising for certain elected City officials or candidates for elected City office for 12 months after the City contract is signed. Subcontractor is required to provide to Appraiser names and addresses of the subcontractor’s principals and contact information and shall update that information if it changes during the 12 month time period. Subcontractor’s information included must be provided to contractor within 5 business days. Failure to comply may result in termination of contract or any other available legal remedies including fines. Information about the restrictions may be found at the City Ethics Commission’s website at http://ethics.lacity.org/ or by calling (213) 978-1960.

Appraisers, Subcontractors, and their Principals shall comply with these requirements and limitations. Violation of this provision shall entitle the City to terminate the agreement with the Appraiser and pursue any and all legal remedies that may be available.

Qualifiers must submit CEC Form 55 (provided in Appendix H) to the awarding

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authority at the same time the Response is submitted. The form requires qualifiers to identify their principals, their subcontractors performing $100,000 or more in work on the contract, and the principals of those subcontractors. Qualifiers must also notify their principals and subcontractors in writing of the restrictions and include the notice in contracts with subcontractors. Responses submitted without a completed CEC Form 55 shall be deemed nonresponsive. Qualifiers who fail to comply with City law may be subject to penalties, termination of contract, and debarment.

7.0 CONTRACT PERIOD

7.1 Contract Period

Once the List of Qualified Appraisers is approved by the Board of Water and Power Commissioners, it will be valid for a period of three (3) years.

8.0 CONDITIONS FOR SUBMITTED QUALIFICATIONS

8.1 Responsiveness

The detailed requirements set forth in Section 6.0 of this RFQ are mandatory. Failure by an Appraiser to respond to a specific requirement may result in disqualification.

8.2 Right to Reject

The Department reserves the right to reject any or all responses to this RFQ. 8.3 Incurred Costs

The Department is not liable for any costs incurred by Appraisers in responding to this RFQ. Any and all costs incurred responding to this RFQ, including interviews or other related activity, shall be borne by the Appraiser.

8.4 Dispositions of Proposed Qualifications

All proposed Qualifications submitted in response to this RFQ shall become the property of the Department and a matter of public record. Also, the Appraiser must identify all copyrighted material, trade secrets or other proprietary information that they claim are exempt from disclosure under the Public Records Act (California Code Sections 6250 et seq.). In the event such an exemption is claimed, the Appraiser shall be requested to state in their response to this RFQ or in their Task Order Proposal Response that they will defend any action brought against the City or the Department to disclose the Appraiser’s claimed copyrighted material, trade secrets or other proprietary information.

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8.5 Discussions

The Department may deem an Appraiser qualified on the basis of the Responses, without discussions.

8.6 Qualified Appraisers

The Department reserves the right to qualify an Appraiser anytime after receipt of the Response, based on the original Response submitted.

8.7 Council Review

Any action taken by the Board of Water and Power Commissioners (Board) will be subject to review by the Los Angeles City Council and any Board action will not be final until such review process has been completed. The qualified Appraisers will be notified, in writing, when such review process has been completed. No payment will be made for action taken or work started prior to the issuance of a Notice to Proceed on a Task Order, and execution of bonds and insurance, if applicable.

8.8 Protest Policy

Policy regarding the protest policy is presented in Appendix I. 9.0 STANDARD CONTRACT PROVISIONS

At the conclusion of the evaluation process, the List of Qualified Appraisers will be established and forwarded to the Board of Water and Power Commissioners for approval. Subsequently when Appraisal services are required by LADWP, LADWP will prepare and issue to all Appraisers included on the List of Qualified Appraisers a Task Order Proposal, as described in section 6.17. A Task Order Proposal will be similar to a Request for Proposal (RFP), and the terms RFP and Task Order Proposal will be used interchangeably herein. Depending on the LADWP’s estimated cost for the Appraisal Services, the Task Order Proposal may include the following Supplier Diversity requirements.

9.1 Supplier Diversity

It is the policy of the Department to provide Women Business Enterprises (WBEs), and Minority Business Enterprises (MBEs), and all other business enterprises (OBEs) an equal opportunity to participate in the performance of all Department contracts. Appraisers shall assist the Department in implementing this policy by taking all reasonable steps to ensure that all available business enterprises, including WBEs and MBEs, have an equal opportunity to compete for and participate in the work being requested. Efforts to obtain participation of MBEs, WBEs, and other business enterprises could reasonably be expected to produce a level of participation by interested subcontractors.

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9.1.1 Good Faith Effort

All Appraisers, also referred to herein as bidders, shall make a good faith effort to reach out to WBEs, MBEs, and all other business enterprises in response to a RFP. The Department’s Outreach Program constitutes a requirement of this RFP, regardless of the number or kind of subcontractors a successful bidder may ultimately retain. If a bidder initially intends to perform all work under any contract resulting from a RFP through their own resources, without employing any subcontractors, it is nevertheless required that the bidder make a good faith effort as specified herein.

WBE/MBE Defined: “Women’s Business Enterprise” (WBE) or “Minority Business Enterprise” (MBE), as used herein means a business enterprise that is certified as meeting both of the following criteria:

A. A business that is at least 51 percent owned by one or more women or, minority person(s), in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more women or minority person(s).

B. A business whose management and daily business operations are controlled by one or more women or minority person(s).

9.1.2 LADWP’s Supplier Diversity Program

Each proposal shall include a statement of the proposer’s good faith effort in the form and format described below.

The Department will determine the adequacy of each bidder’s good faith effort based upon the documentation provided. Bidders not receiving a passing score may be found nonresponsive and disqualified from participating in any contracts resulting from a RFP.

9.1.3 Factors and Weights for Evaluation of Good Faith Effort

Bidder’s good faith effort to reach out to WBEs, MBEs and all other business enterprises will be determined by the factors specified herein. The Department will determine the adequacy of each bidder’s good faith effort to utilize this Outreach Program by considering all factors set forth and the weights for evaluation. The total points possible are 100, and a passing score of 75 points must be achieved. 1. Level of MBE/WBE participation proposed. (Weight: 0 points) 2. Attendance at the Bidders Conference. (Weight: 5 points)

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3. Identification of selected portions of the project to be performed by subcontractors in order to provide participation by WBEs, MBEs, and OBEs. Bidders shall when economically feasible, divide total contract requirements into small portions or quantities to permit maximum participation of WBEs, MBEs, and OBEs. (Weight: 5 points)

4. Advertise for bids from interested business enterprises not less than 10

calendar days prior to the submission of bids or proposals in newspapers, trade association publications, minority or trade oriented publications, trade journals, or other appropriate media. (Weight: 15 points)

5. Providing written notice of intent to bid on the contract to those

business enterprises including WBEs, MBEs, and OBEs, having an interest in participating in such contract. Such notice shall be provided not less than 10 calendar days prior to the bid submittal date. Bidders shall document that invitations for subcontracting bids were sent to available WBEs, MBEs, and OBEs, for each portion of the work. (Weight: 20 points)

6. Documenting efforts to follow up initial solicitations of interest by

contacting the business enterprises to determine whether the enterprises are interested in participating in the work. (Weight: 20 points)

7. Providing interested enterprises with information about the plans,

specifications, and requirements for the selected work. (Weight: 3 points)

8. Requesting assistance from organizations that provide assistance in

the recruitment and placement of MBEs, WBEs, and other business enterprises not less than 15 calendar days prior to the bid submittal date. (Weight: 3 points)

9. Negotiating in good faith with interested MBEs, WBEs, and OBEs and

not unjustifiably rejecting bids or proposals prepared by any enterprise. As documentation, the bidder shall submit a list of all sub-bidders for each portion of work solicited, including dollar amounts of potential work for MBEs, WBEs, and OBEs. (Weight: 26 points)

10. Documenting efforts to advise/assist interested MBEs, WBEs, and

OBEs in obtaining bonds, lines of credit, or required insurance. (Weight: 3 points)

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9.1.4 Monthly Records The successful bidder shall maintain records monthly to determine compliance with the Department's Outreach Program and shall submit such records to the Contract Administrator. The records shall be submitted on Department forms and shall show the following: 1. The name of each participating subcontractor. 2. Description of work each subcontractor has contracted to perform. 3. The percentage completion of the work under each subcontract. 4. The compensation contracted to be paid to each subcontractor. 5. The cumulative compensation earned by each subcontractor. 6. The cumulative compensation paid to each subcontractor.

Once received proposals are evaluated and depending on the contract value and duration, the resulting contract may either be a General Manager Awarded Purchase Order or a Board Awarded Agreement. In order to ensure the negotiations are successfully completed within an appropriate time frame, the standard terms and conditions required by LADWP is presented in Appendix A1, Standard Terms and Conditions for a General Manager Awarded Purchase Order, or Appendix A2, Professional Services Agreement, for a Board Awarded Agreement. These standard terms and conditions will be made part of the final contract including City/LADWP required socioeconomic programs and requirements.

10.0 INSURANCE REQUIREMENTS

Insurance – General Statement

It is the policy of Los Angeles Department of Water and Power (LADWP) that upon the award of a contract, the selected Bidder/Appraiser/Vendor must provide evidence of insurance that conforms to the insurance requirements of the bid/proposal/agreement. Insurance requirements are explained in detail in the following language and “Contract Insurance Requirements” sheet, which specifically outlines the types and amounts of coverage required for this project. For your information and use, “Special Endorsement Forms”, “Guidance for Submitting Evidence of Insurance” and information on our insurance program for small vendors are available on our website.

When and if you are awarded a contract/agreement, acceptable evidence of required insurance, from insurers acceptable to the Department, will be required to be submitted within 30-days of the date of award and maintained current throughout the term of the contract. Said evidence of insurance must be on file with the Risk Management Section in order to receive payment under any contract for services rendered, and in order to commence work under your contract.

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Insurance – Applicable Terms and Conditions 10.1 Additional Insured Status Required

Appraiser/Vendor shall procure at its own expense, and keep in effect at all times during the term of this Agreement, the types and amounts of insurance specified on the attached Contract Insurance Requirements page. The specified insurance shall also, either by provisions in the policies, by City's own endorsement form or by other endorsement attached to such policies, include and insure City, its Department of Water and Power, its Board of Commissioners (hereinafter referred to as "Board"), and all of its officers, employees and agents, their successors and assigns, as Additional Insureds (except for Professional Liability and Workers’ Compensation), against the area of risk described herein as respects Appraiser's/Vendor’s acts or omissions in its performance of the agreement, hereunder or other related functions performed by or on behalf of Appraiser/Vendor. Such insurance shall not limit or qualify the liabilities and obligations of the Appraiser/Vendor assumed under the contract.

10.2 Severability of Interests and Cross Liability Required Each specified insurance policy (other than Workers' Compensation and Employers' Liability and Property coverages) shall contain a Severability of Interest and Cross Liability clause which states, "It is agreed that the insurance afforded by this policy shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the company's liability," and a Contractual Liability Endorsement which shall state, "Such insurance as is afforded by this policy shall also apply to liability assumed by the insured under this Agreement with the City of Los Angeles."

10.3 Primary and Non-Contributory Insurance Required All such insurance shall be Primary and Noncontributing with any other insurance held by City's Department where liability arises out of or results from the acts or omissions of Appraiser/Vendor, its agents, employees, officers, assigns, or any person or entity acting for or on behalf of Appraiser/Vendor. Any insurance carried by the Department which may be applicable shall be deemed to be excess insurance and the Appraiser’s/Vendor’s insurance is primary for all purposes despite any conflicting provision in the Appraiser’s/Vendor’s policies to the contrary.

10.4 Deductibles Subject to Department’s Discretion

Deductibles and/or self-insured retentions shall be at the sole discretion of the Risk Manager of the Department (hereinafter referred to as "Risk Manager"). The Department shall have no liability for any premiums charged for such coverage(s). The inclusion of the Department of Water and Power, its Board,

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and all of its officers, employees and agents, and their agents and assigns, as additional insureds, is not intended to, and shall not, make them, or any of them a partner or joint venture with Appraiser/Vendor in its operations.

10.5 Proof of Insurance for Renewal or Extension Required At least ten (10) days prior to the expiration date of any of the policies required on the attached Contract Requirement page, documentation showing that the insurance coverage has been renewed or extended shall be filed with the Department. If such coverage is canceled or reduced in coverage, Appraiser/Vendor shall, within fifteen (15) days of such cancellation or reduction of coverage, file with the Department evidence that the required insurance has been reinstated or provided through another insurance company or companies.

10.6 Submission of Acceptable Proof of Insurance and Notice of Cancellation Appraiser shall provide proof to the Department’s Risk Manager of all specified insurance and related requirements either by production of the actual insurance policy(ies), by use of Department's own endorsement form(s), by other written evidence of insurance acceptable to the Risk Manager, but always in a form acceptable to the Risk Manager and the Office of the City Attorney. The documents evidencing all specified coverages shall be filed with the Department prior to Appraiser beginning operations hereunder. Said proof shall contain at a minimum, the applicable policy number, the inclusive dates of policy coverages, the date the protection begins for the Department of Water and Power, and the insurance carrier's name. It shall bear an original signature of an authorized representative of said carrier, and shall provide that such insurance shall not be subject to cancellation, material reduction in coverage or non-renewal except after written notice by certified mail, return receipt requested, to the City Attorney of the City of Los Angeles at least thirty (30) calendar days prior to the effective date thereof. The notification shall be sent by registered mail to: The Office of the City Attorney, Water and Power Division, Post Office Box 51111, JFB Room 340, Los Angeles, California 90051-0100.

10.7 Claims-Made Insurance Conditions Should any portion of the required insurance be on a "Claims Made" policy, the Appraiser/Vendor shall, at the policy expiration date following completion of work, provide evidence that the "Claims Made" policy has been renewed or replaced with the same limits, terms and conditions of the expiring policy, or that an extended three (3) years discovery period has been purchased on the expiring policy at least for the contract under which the work was performed.

10.8 Failure to Maintain and Provide as Cause for Termination Failure to maintain and provide acceptable evidence of the required insurance for

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the required period of coverage shall constitute a breach of contract, upon which the Department may immediately terminate or suspend the agreement.

10.9 Sub-Contractor Compliance The Appraiser/Vendor shall be responsible for all sub-contractors'/sub-vendors’ compliance with the insurance requirements.

10.10 Periodic Right to Review/Update Insurance Requirements

The Department and Appraiser/Vendor agree that the insurance policy limits specified on the attached Contract Insurance Requirements page may be reviewed for adequacy annually throughout the term of this Agreement by the Risk Manager/City Attorney, who may thereafter require Appraiser/Vendor to adjust the amounts and types of insurance coverage however the Risk Manager/City Attorney deems to be adequate and necessary. City reserves the right to have submitted to it, upon request, all pertinent information about the agent and carrier providing such insurance, including applicable license and ratings.

10.11 Specific Insurance Requirements See Appendix D, “Contract Insurance Requirements”.

10.12 Indemnification

Indemnification for Design Professionals Relating to Construction Contracts Relative to California Civil Code Section 2782

Except for the sole negligence or willful misconduct of the Department, the Consultant undertakes and agrees to defend, indemnify and hold harmless the Department, the City of Los Angeles, including but not limited to any of its boards, commissioners, officers, agents, employees, assigns and successors in interest (hereinafter, collectively, “Indemnitees”) from and against any and all suits and causes of action, claims, losses, demands, penalties, judgments, costs, expenses and disbursements of any kind or nature whatsoever, including but not limited to attorney’s fees (including allocated costs of internal counsel) and costs of litigation, damage, obligation or liability of any kind or nature whatsoever, in any manner arising by reason of, incident to, or connected in any manner to negligence, recklessness or willful misconduct of the Consultant, or negligent non-performance, or negligent breach of this Agreement, including but not limited to any such negligent act, error or omission or recklessness, or willful misconduct by or of the Consultant or Consultant’s officers, employees, agents or subconsultants of any tier, that results in death or injury to any person, or damage or destruction to property of any kind, or loss of use (hereinafter, collectively, “Indemnified Liabilities”). The provisions of this paragraph shall survive expiration or termination of this Agreement, and shall be in addition to,

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and not exclusive of, any other rights or remedies which Indemnitees have at law, in equity, under this Agreement or otherwise. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this subsection may be unenforceable in whole or in part, Consultant shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.

Indemnification for Non-Design Professionals

Except for the gross negligence or willful misconduct of the Department, the Consultant undertakes and agrees to defend, indemnify and hold harmless the Department, the City of Los Angeles, including but not limited to any of its boards, commissioners, officers, agents, employees, assigns and successors in interest (hereinafter, collectively, “Indemnitees”) from and against any and all suits and causes of action, claims, losses, demands, penalties, judgments, costs, expenses and disbursements of any kind or nature whatsoever, including but not limited to attorney’s fees (including allocated costs of internal counsel) and costs of litigation, damage, obligation or liability of any kind or nature whatsoever, in any manner arising by reason of, incident to, or connected in any manner to performance, non-performance or breach of this Agreement, or willful misconduct or any other act, error or omission by or of the Consultant or Consultant’s officers, employees, agents or subconsultants of any tier, including but not limited to any such act, error or omission or willful misconduct that results in death or injury to any person, including but not limited to Consultant, Consultant’s officers, employees, agents, and subconsultants of any tier, or damage or destruction to property of any kind, of either Party hereto, or of third Parties, or loss of use (hereinafter, collectively, “Indemnified Liabilities”). The provisions of this paragraph shall survive expiration or termination of this Agreement, and shall be in addition to, and not exclusive of, any other rights or remedies which Indemnitees have at law, in equity, under this Agreement or otherwise. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this subsection may be unenforceable in whole or in part because they are violative of any law or public policy, Consultant shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The provisions of this paragraph shall survive the expiration or termination of this Agreement.