REQUEST FOR PROPOSAL FOR PROPERTY APPRAISAL SERVICES FOR KLC GENERAL INSURANCE TRUST
Proposals must be received by 5:00pm E.D.T. on April 22, 2019.
Download this RFP and CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT
I. INTRODUCTION & SCOPE OF SERVICES
Kentucky League of Cities, Inc., (KLC), as administrator for Kentucky League of Cities Insurance Services Association (KLCIS), is soliciting proposals from qualified Property Appraisal Firms (Contractor) in accordance with the specifications provided herein. The selected Contractor will provide services as an independent contractor. All responses must address the services, requirements, terms and conditions as set forth in this Request for Proposal. It is KLC’s intent to implement the proposed services and retain the successful Contractor for a 12 month term beginning July 1, 2019, with an option to renew the contract annually for up to four (4) additional years beginning July 1, 2020.
KLC is seeking a Contractor to provide Property Valuation Services for the KLC General Insurance Trust (Property & Liability) (hereinafter referred to as Trust).
II. INFORMATION RELEVANT TO REQUESTED SERVICES
The Kentucky League of Cities, Inc., is a membership association of more than 375 Kentucky cities. Its purpose is to provide legislative, financial, insurance, and legal assistance to its members. This is primarily accomplished through lobbying, publications and training seminars.
The Kentucky League of Cities Insurance Services Association is an insurance pool formed by Kentucky municipalities and related entities as a self-insured group pursuant to Kentucky statutes. KLC administers the KLC General Insurance Trust (Property and Liability). Pertinent properties insured in KLCIS are listed in Exhibit A, Property Schedule, which will be provided to Contractor after Contractor executes and returns the Confidentiality Non-Disclosure Agreement attached to this R
III. SERVICES REQUESTED FOR KLC GENERAL TRUST (PROPERTY & LIABILITY)
The Contractor selected to provide property appraisal services shall agree to provide the following services for the KLC General Insurance Trust:
A. General: KLCIS is soliciting the services of qualified appraisal firms to provide certified appraisal of buildings and structures covered in its property program to provide supportable estimates of insurable values on a Replacement Cost Basis. Primary services include appraisal of buildings listed in Exhibit A.
Appraisals will be limited to designated buildings and structures on the Property Schedule, generally, where accumulated values at one site exceed $500,000. The total number of designated buildings and structures is 4,553, with an estimated real property value of $4,304,096,681 and contents of $243,459,760, as of January 1, 2019. These numbers and values are approximate, as new members may enter the program or existing members may leave the program during the term of the Agreement. It is anticipated the project will be completed over a four (4) to five (5) year period. Proposers should provide proposals for four (4) or five (5) year project timeframes. It is anticipated that the Contractor selected for this project will be retained for the selected time frame of the proposal, with annual evaluations made of the Contractor’s services.
B. Scope of Work: On-site appraisals of the building/structures are to include the contents and property in the open listed in Exhibit A of this Request for Proposals over a five (5) year period to commence within 60 days of the acceptance of proposal. The schedule of appraisals will be determined by KLC. An outline of accounts to be appraised is included in Exhibit A.
Deliverables to include electronic appraisal reports for each item grouped by location and entity. Reports to include appraisal reports in PDF Format, and two (2) bound hard copies for subsequent delivery to the member, as well as data in excel format and photographs in JPG format.
Reports should include, at a minimum, a certificate letter that will:
Identify the purpose of the appraisal
Review the methodologies used
Identify the properties appraised
Describe the nature of the property included / excluded from the appraisal
Specify the appraisal date
Specify the valuation used (replacement cost unless otherwise ordered)
Present the conclusions of value
Outline the qualifying and limiting conditions
Identify any obvious safety issues
Include the signature of an authorized officer of your firm
Reports should include, at a minimum, the following information for buildings and structures:
General Information: Building/Structure Replacement Cost; Contents Replacement Cost; Property in the Open Replacement Cost; Occupancy; Physical Address; Year Built; Year Acquired; Condition; Number of Stories; GPS Building Coordinates in digital degree format, 8 decimal places; Square Footage; Additions; Flood Zone; Basement Square Footage; Framing; Renovations; Lease Information
Building Characteristics: ISO Protection Class; Construction Type; Foundation; Exterior Wall; Roof; Interior Wall; Ceiling Finish; Floor Finish; Fire Protection
Energy Systems (HVAC); Special Features; Historical Structure Designation; Intended Use (if not currently used for intended use)
Buildings that are of a historic nature should be valued to be reproduced by construction methods of similar appearance and function, but not necessarily a historical reproduction.
C. Property Schedule Validation: When visiting members, Contractor should review the property schedule with the member to determine if there are properties that have been accidently omitted from the property schedule. Individual property schedules per member will be provided. Bid shall provide a per-item cost for appraising additional items identified in this process. Contractor shall appraise additional property while on-site if the individual item value is anticipated to exceed $100,000.
D. KLCIS Staff Assistance: Appraisal services may not be cost effective on smaller members of the program. KLCIS staff will visit these members and determine Insurable Values using tools such as Marshall & Swift Commercial Estimator. At times, KLCIS staff may require assistance with determining values for utility specific items, such as sewer lift stations, water pump stations, small utility plants, transformers, water tanks, etc. KLC recognizes that Contractor will add appropriate disclaimer language to their work, as they did not physically visit these items.
E. Optional Services: KLCIS also seeks to verify adequate values of lower value properties, specifically lift stations, pump stations and wells valued below our threshold of $500,000. We would like an option to the contract for the appraiser to collect the data from the member to perform a “desktop valuation” of these properties without physically visiting them from the data supplied by the member. These “desktop valuations” would be performed at the time of the actual visit to the member to perform other appraisal work. As of January 1, 2019, the number of these desktops to be performed are:
Lift Stations – 1040 - $84,612,974
Pump Stations – 765 - $77,251,748
Wells – 47 - $3,582,617
IV. CONTRACTOR QUALIFICATIONS AND REFERENCES
A. References. Please provide the name, address, telephone number and contact person for at least three (3) organizations for which the Contractor is now providing services similar to those sought by the Trust. Please provide the name, address, telephone number and contact person for at least three (3) organizations for which the Contractor did provide services similar to those sought by the Trust, but to which they no longer provide service. By submitting a proposal, permission is granted for KLC and/or KLCIS to contact the organizations listed as references.
B. Employee Qualification and Experience. A resume should be submitted for all persons in management and supervisory positions and all adjusters that will be involved in providing services to the Trust. A list of all employees to be involved in providing services to the Trust should be included within each proposal. This list should identify each employee, the position of each employee, number of years that employee has worked in that position with the Contractor, number of years that employee has worked in the area of Kentucky Liability exposure, and any degrees earned from an accredited college or university along with any professional designations earned by each employee. All employees must meet the appropriate state licensing requirements for the work being performed, including continuing education.
C. Contractor Insurance Requirements. Before performing any services on behalf of the Trust, each Contractor will be required to obtain, and maintain in force, professional liability (errors and omissions) insurance with a minimum of $250,000 per claim limit and employee dishonesty insurance with a minimum limit of $250,000. KLC, KLCIS and the Trust must be named as additional insures on the professional liability coverage. Both the professional liability coverage and the employee dishonesty coverage must be underwritten by insurers acceptable to KLC. Failure to furnish the required insurance or to maintain same shall be considered grounds for rejecting a proposal or terminating a contract.
D. Designated Liaison. To assure quality service and compliance with KLCIS service and management philosophies, the Contractor must identify senior management personnel to serve as liaisons with KLCIS.
E. Service Implementation Plan. The Contractor must describe in detail the plan to be utilized in preparing to provide the services requested herein. The proposed organizational structure and staffing level for each service office should be described in detail.
F. Additional Questions. Please respond to the following questions and submit them in the order in which they appear as a separate attachment in your Proposal:
1. Form of Organization (Corporation, Partnership, etc).
2. Name of all affiliated companies (if any).
3. Names and titles of principal officers of the company.
4. Please give a brief history of the company (date established, number of employees, annual volume of claims (general liability, work comp, etc).
5. What types and amounts of professional liability insurance and bonding are maintained? Please provide Certificates of Insurance.
6. What are your internal security procedures and techniques? Describe internal audit procedures.
7. Does your firm subcontract for any of the appraisal services requested? If yes, please answer the following questions:
a. What services are subcontracted?
b. How do you ensure the overall satisfaction of the Trust members in the services provided by subcontractors?
c. Will the Trust be held harmless for the acts of subcontractors? Please provide a Hold Harmless agreement signed by the subcontractor.
d. Will the Trust have prior written approval of the hiring and use of subcontractors?
8. What type of control system does management use to measure the quality of work?
9. How do you set yourself apart from your peers from a culture and a management style?
V. PROPOSED FEES
All proposed fees must be submitted as set forth below. The proposed fees must be stated as the fees to be charged to the Trust pursuant to term of the contract.
A. Appraisal of Designated Properties: Provide an annual fee to be charged for a five (5) year plan to appraise approximately or 1/5 of the total designated properties each year. Exhibit A indicates what year members are to be appraised. Fee each year to be paid when the appraisals scheduled for that year are 33%, 66%, and 100% complete.
B. Add or Drop fee – Unit Pricing: Provide pricing on a unit basis for items that are added to or removed from the designated items in Exhibit A. Reasons for adding and dropping include new members entering the program, existing members leaving the program, or existing members disposing of property on the designated appraisal schedule, or acquiring property at or above $500,000 in value to their property schedules during the course of this agreement.
C. Newly Discovered Property Appraisal Fee: Include additional pricing on a per-unit basis, for buildings or structures within the parameters of Section III. C. Property Schedule Validation, of this Request for Proposal. A price for low cost items, which would typically not fall into scope of this project (under $500,000 in TIV), and a cost for higher cost items should be provided.
D. KLCIS Staff Assistance Fee: Include additional pricing on a per-unit basis, for buildings or structures within the parameters of Section III. D. KLCIS Staff Assistance of this Request for Proposal. A price for low cost items such as lift stations and pump stations, and a price for high cost items, such as water tanks, utility plant buildings & basins, should be provided.
E. Optional Services Fee: Include additional pricing on a per-unit basis, for buildings or structures within the parameters of Section III. E. Optional Services of this Request for Proposal. A price for low cost items such as lift stations and pump stations, and a price for high cost items, such as water tanks, utility plant buildings & basins, should be provided.
VI. CONTRACTOR SELECTION PROCESS
Submitted proposals will be reviewed by an internal selection committee and the successful Contractor will be selected by the KLCIS board of trustees. Upon receipt of the proposals, KLC will review the proposals and select potential Contractors to schedule telephone or in-person interviews, if necessary. KLC may schedule visits to offices of potential Contractors to observe the performance of services as requested herein. Only after KLC has determined that a potential Contractor can provide the quality of service desired will a contract be awarded.
VIII. PROPOSAL SUBMISSION INSTRUCTIONS
A. Request Property Schedule: Interested Contractors should execute and return the Confidentiality and Non-Disclosure Agreement provided below to firstname.lastname@example.org to receive the Property Schedule referenced in this RFP. Exhibit A and a fully executed copy of the Confidentiality and Non-Disclosure Agreement will be returned to Contractor at the email address provided on the Agreement.
B. Proposal Format: Proposals submitted in response to these specifications should be submitted in the following format.
1. Identify and describe the service being proposed.
2. Confirm that the service being proposed complies with the specification.
3. Identify and describe in detail any exceptions to the specifications.
4. Describe Contractor qualifications and list references.
5. Describe service implementation plan.
6. Provide cost proposals as set forth in the specifications.
C. Proposal Quality and Evaluation: Each proposal submitted in response to these specifications must “speak for itself.” Proposals should respond to the specifications and describe clearly the services to be offered. Proposals will be evaluated by a team of evaluators. Telephone calls and other marketing efforts to KLC staff members will have no effect on proposal evaluations. Not every potential Contractor will necessarily be contacted for proposal clarification or an interview. Those potential Contractors contacted by KLC for additional discussion concerning their proposals will be selected based upon the evaluation of their proposals. A potential Contractor that believes it can provide the type and quality of service sought by KLC and the Trust should strive to communicate that belief within its proposal.
D. Proposal Due Date: Proposals must be received by 5:00pm E.D.T. on April 22, 2019.
E. Copies: Please submit five (5) copies of your proposal to:
Kentucky League of Cities, Inc.
ATTN: Jeri McCullough
100 East Vine Street, Suite 800
Lexington, KY 40507
Phone: 1-800-876-4552 (toll free) or 859-977-3780 (direct)
KLC reserves the option of withdrawing or modifying this RFP and to waive any defect or any irregularity in any proposal. It may also reject any or all proposals or portions thereof at any time.
Pursuant to KRS 65.312, KLC is a “public entity”. Any submissions in response to this RFP may be subject to Kentucky Open Records Act (ORA) laws. Any specific information which the proposer considers confidential and proprietary and possibly subject to exemption in accordance with ORA statutes, Kentucky Attorney General opinions and Kentucky case law, must be clearly designated as such. Please note that information designated as “confidential and proprietary” does not guarantee that it will be exempted from release, but will aid KLC in determining if any ORA exemptions apply. Please consult the ORA and/or your legal counsel regarding what information submitted, if any, may be exempted under the ORA.