Loading...
HomeMy WebLinkAboutAgenda - 03-24-20; 8-d - Approval of Amendment to the Procurement & Disbursement Policy, Housing Rehab. Programs, Including Local and NCHFA Urgent Repair Activities 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 24, 2020 Action Agenda Item No. 8-d SUBJECT: Approval of Amendment to the Orange County Procurement and Disbursement Policy, Housing Rehabilitation Programs, Including Local and North Carolina Housing Finance Agency (NCHFA) Urgent Repair Activities DEPARTMENT: Department of Housing and Community Development ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Draft Orange County Emila Sutton, Director, Housing and Procurement and Disbursement Community Development, (919) 245-2490 Policy PURPOSE: To approve an amendment to the Orange County Procurement and Disbursement Policy for County- and State-funded urgent repair projects to allow the Department of Housing and Community Development to 1) select eligible contractors from the Approved Contractor Registry, on a rotating basis, to submit responsive and responsible bids for projects funded by the North Carolina Housing Finance Agency (NCHFA) Urgent Repair Program; 2) eliminate the 10% retaining fee held for 60 days after the completion of an urgent repair project; and 3) make the partial payment requirements consistent with the standard contract used for rehabilitation work. BACKGROUND: To apply for NCHFA Urgent Repair Program funds, the County must submit a procurement and disbursement policy approved by the local legislative body. The most recent policy, approved by the BOCC on September 3, 2019, as well as previous policies, required a traditional bid procedure in which a minimum of three (3) eligible contractors were invited to bid on a project and the lowest responsive and responsible bidder was selected for the contract. Urgent repair projects funded solely with County funds have more flexibility. A Rehabilitation Specialist may use the Approved Contractor Registry and request a bid from the contractor next on the list. If the contractor submits a bid that is responsive and responsible, that bid is automatically accepted. After the successful completion of the project, that contractor is rotated to the end of the list and the next contractor on the list becomes eligible to submit a bid for the next local project. This flexibility for County-funded projects was previously added because it has become increasingly difficult to solicit bids for relatively small urgent repair jobs. Considerable time and effort are expended to solicit bids for an urgent repair project, and often only one or no bids are received. This request is to provide a more flexible procurement process to urgent repair projects funded by NCHFA. A request was sent to NCHFA regarding this proposed amendment and NCHFA responded that "there are too many projects and not enough contractors right now, so any new procedures that meet the expectations for procurement and disbursement for a critical repair program like URP will surely be encouraged and considered." This amendment would also eliminate the 10% retaining fee (also known as the holdback) held for 60 days after the final inspection. This would pertain only to urgent repair projects, which by 2 definition do not exceed a maximum of $10,000 (or $15,000 for septic or well activities). A retaining fee for a specific project has never had to be used and is considered redundant since all construction work has a one-year warranty. Moreover, a Rehabilitation Specialist must track down the homeowner and contractor for the required signatures before releasing payment. This amendment would also make the partial payment requirements consistent between this Policy and the standard contract used for urgent repair and rehab projects. Currently, this Policy allows the contractor to request partial payments (known as draws) based on the percentage of work completed, which is more open to interpretation. The standard contract is more definitive since the partial payments are based on the value of the items in the contract that have been completed. It also does not allow for partial payments for a contract valued at less than $10,000, which minimizes staff time devoted to processing multiple invoices in small amounts. As stated previously, these proposed amendments would apply only to urgent repair projects. Moderate and comprehensive rehab projects will continue to follow the conventional procurement and disbursement process. FINANCIAL IMPACT: There will be no financial impact to the County if the BOCC approves the revised Orange Country Procurement and Disbursement Policy. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. The revised Orange County Procurement and Disbursement Policy will enhance a program that makes critical repairs on homes owned by low-income residents, thereby helping those residents meet basic shelter needs. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal is applicable to this item: • GOAL: ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. The revised Orange County Procurement and Disbursement Policy will enhance a program that makes critical repairs on homes owned by low-income residents, including repairs that will allow those residents to conserve energy. RECOMMENDATION(S): The Manager recommends that the Board approve the amendment to the Orange County Procurement and Disbursement Policy for County- and State-funded urgent repair activities to allow the Department of Housing and Community Development to 1) select eligible contractors from the Approved Contractor Registry, on a rotating basis, to submit responsive and responsible bids for projects funded by the North Carolina Housing Finance Agency (NCHFA) Urgent Repair Program; 2) eliminate the 10% retaining fee held for 60 days after the completion of an urgent repair project; and 3) make the partial payment requirements consistent with the standard contract used for rehabilitation work. Attachment 1 3 ORANGE COUNTY PROCUREMENT AND DISBURSEMENT POLICY Housing Rehabilitation Programs, Including Local and North Carolina Housing Finance Agency (NCHFA) Urgent Repair Activities A. Procurement Policy 1. To the maximum extent practical, Orange County (the County) promotes a fair, open, and competitive procurement process as required under the NCHFA Urgent Repair Program (URP) and the County's local housing rehabilitation programs. Bids are invited from contractors who are included on the County's Approved Contractor Registry. Any current contractor listed with and approved by the County and in good standing (i.e., no unresolved past performance issues and not listed on the federal or state debarred list) will receive automatic approval status on the Approved Contractor Registry. 2. To be listed on the Approved Contractor Registry, a contractor must complete an application, submit proof of insurance, and have their recent work inspected and approved by the Rehabilitation Specialist. All contractors' insurance renewals must be submitted to the County on an annual basis. In order to bid on a pre-1978 property, the contractor's firm must be Renovate, Repair and Paint (RR&P) certified and have their RR&P certificate on file with the County. 3. To the maximum extent practical, a minimum of three (3) eligible contractors on the Approved Contractor Registry should be invited to bid on each job and the lowest, most responsive and responsible bidder shall be selected for the contract. "Responsive and responsible" means: (a) the contractor is deemed able to complete the work in a timely fashion; (b) the bid is within fifteen percent (15%) in either direction of the County's cost estimate; (c) the contractor has not been suspended or debarred; and (d) there is no real or perceived conflict of interest. Due to increasing difficulty of soliciting eligible bids for urgent repair projects, the County may solicit a bid from an eligible contractor on the Approved Contractor Registry based on their rotating placement on the Registry. If the selected contractor submits a responsive and responsible bid, it will be accepted. After successful completion of the project, that contractor will rotate to the end of the Registry. If the contractor does not submit a responsive and responsible bid or chooses not to submit a bid, the next contractor on the Registry will be eligible to submit a bid on the project. In emergency situations, telephone or email bids or quotes will be accepted and documentation of the bids or quotes will be maintained in the project file. 4. Although bid packages may be bundled for multiple job sites, these bids shall be considered separate when awarded and shall be awarded to the lowest responsive and responsible bidder(s) for each job site. No contractor shall have more than three (3) open jobs at any one time. Ajob shall be considered "open" once a contract is signed. Page 1 Orange County Urgent Repair Procurement and Disbursement Policy Revised 02-20-20 Attachment 1 4 5. Bid packages shall consist of an invitation to bid, work write-up(s), and bid sheet(s) for each job, including instructions for distribution and receipt of bids. For urgent repair projects, contractors will be given no less than seven (7) days in which to inspect the property and prepare bid proposals. Each contractor will need access to all parts of the house to prepare a bid. For moderate and comprehensive housing rehabilitation projects, contractors will be given no less than ten (10) days in which to inspect the property and prepare bid proposals. 6. Bids must include a cost-per-item breakdown with line item totals equaling the submitted bid price. Any discrepancies must be reconciled prior to a contract being awarded. 7. The County reserves the right to reject any or all bids at any time during the procurement process. 8. In an emergency situation, the County reserves the right to waive normal procurement procedures in favor of more expedient methods, which may include seeking quotes and bids by telephone, email, fax and the like. Should such methods ever be necessary, the transaction, including the nature of the emergency, will be fully documented in the project file. If telephone bids are used, the County will call the next eligible contractor on the Approved Contractor Registry who has indicated a desire to be on the Emergency Call List. The County will track who has been called and been responsive and will rotate through the Emergency Call List before beginning the rotation again. 9. All sealed bids will be opened publicly at the Department of Housing and Community Development (DHCD) located at 300 W. Tryon Street, Hillsborough, NC at a date and time specified in the bid invitation. All bidders are invited and welcome to attend. Within 72 hours of the bid opening, after the review of bid breakdowns and construction schedules, the winning bidder(s) will be selected. All bidders and the homeowner will be notified in writing of 1) the selection of the winning bid; 2) the amount of the winning bid; and 3) the specific reasons for the selection if the lowest bidder was not selected. 10. The contractor is responsible for obtaining a building permit for the project before beginning work. The permit must be posted at the project site during the entire period of construction. If applicable, the contractor will obtain a permit for lead and/or asbestos hazard-related activities. The Rehabilitation Specialist will closely monitor the construction to make sure that the work is done according to the work write-up (which is made part of the contract by reference) and in a timely fashion. Local code enforcement officials will, if required, inspect the work for compliance with the NC State Building Code and the local minimum housing code. The homeowner will be responsible for working with the contractor to clear their personal property from the work areas, as needed and as much as practicable. The contractor will be responsible for all clearing and cleaning activities necessary due to construction activities. Page 2 Orange County Urgent Repair Procurement and Disbursement Policy Revised 02-20-20 Attachment 1 5 11. Any change to the original scope of work must be made in the form of a written change order to be agreed upon and signed by all parties to the original contract and two representatives of the County. The change order must detail any changes to the original contract price. 12. No work may begin before a contract is executed and a written order to proceed provided to the contractor. A pre-construction conference and a "walk through" must also be held before commencement of the project. The pre-construction conference can be held at the DHCD. The walk through must be held at the project site. At this time, the homeowner, contractor, and the Rehabilitation Specialist will discuss the details of the work to be completed. Project start and end dates will be finalized, along with any special arrangements such as weekend or evening work hours and the disposition of items to be removed from the home. Within 24 hours of the pre-construction conference, the County will issue a "proceed order" formally instructing the contractor to commence work by the agreed upon date. 13. Orange County is an equal opportunity employer, implements non-discriminatory practices in its procurement and disbursement, and will make special outreach efforts to include Minority/Women Business Enterprise (MWBE) businesses within its contractor and subcontractor pool. Contractors will be chosen by the above criteria without regard to race, color, national origin, disability, religion, age, sex/gender, sexual orientation, gender identity and expression, marital status, or veteran status. B. Disbursement Policv 1. All repair work must be inspected by the Rehabilitation Specialist, the local Building or Minimum Housing Code Inspector, when applicable, and the homeowner prior to any payments to contractors. If all work is deemed satisfactory and all other factors and written agreements are in order, payment shall be issued upon presentation of an original cost-per-item invoice from the contractor. The contractor should allow up to 14 business days for processing the invoice for payment. 2. The contractor is entitled to request a maximum of two (2) partial payments and a final payment. For moderate and comprehensive rehabilitation projects only, there will also be a 10% retaining fee based on the value of the contract to be held for the 60-day retention inspection. No partial payments will be made for contracts less than $10,000. For contacts greater than $10,000, a maximum of three (3) partial payments can be requested by the contractor, each no less than 33% of the value of the contract (less the 10% retaining fee). When a payment is requested, the Rehabilitation Specialist will inspect the work within three (3) days, determine the percentage of job completion and calculate a payment based on the percentage completion. Page 3 Orange County Urgent Repair Procurement and Disbursement Policy Revised 02-20-20 Attachment 1 6 3. Following completion of construction, the contractor and the Rehabilitation Specialist will meet with the homeowner in a post-construction conference. At this time, the contractor will provide the owner's manuals and warranties on equipment and materials to the homeowner and be available to answer questions. 4. When the contractor declares the work complete, the Rehabilitation Specialist will thoroughly inspect the work as part of the project closeout. If any of the work is deemed unsatisfactory, it must be corrected prior to the authorization of final payment. If the contractor fails to correct the work to the satisfaction of the Rehabilitation Specialist, payment may be withheld until such time as the work is deemed satisfactory. If a dispute occurs, contractors may follow the procedure dealing with complaints, disputes and appeals in the County's Urgent Repair Loan Pool Assistance Policy. Contractors must abide by the final decision as stated in the policy. The homeowner, Rehabilitation Specialist and Housing and Community Development Manager must sign off on the work. After the receipt of the contractor's final invoice, inspections, certificate of completion and lien releases, the final payment will be processed. All material and workmanship will be guaranteed by the contractor for a period of one (1) year from the date of completion of the work. 5. Orange County assures, through this policy, that adequate funds shall be available to pay the contractor for satisfactory work. 6. All contractors, subcontractors and suppliers must sign a lien waiver prior to the disbursement of funds. The Orange County Procurement and Disbursement Policy, as revised, is adopted this day of , 20 ORANGE COUNTY, NC BY: Chair, Board of County Commissioners ATTEST: Page 4 Orange County Urgent Repair Procurement and Disbursement Policy Revised 02-20-20