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2012-099-1694 - Amending Section 5 of the Housing Program Policies  1515  NW  167  Street, Building  5  Suite  200    Miami  Gardens, Florida  33169    City of Miami Gardens Agenda Cover Memo Council Meeting Date: July 11, 2012 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading:(Enter X in box) 1 st Reading 2 nd Reading X Public Hearing:(Enter X in box) Yes No Yes No X Funding Source: N/A Advertising Requirement:(Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #:N/A X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name Dr. Danny O. Crew, City Manager Department:Community Development  Short  Title:  A  RESOLUTION  OF  THE  CITY  COUNCIL  OF  THE  CITY  OF  MIAMI  GARDENS, FLORIDA, AMENDING  SECTION  5  OF  THE  MIAMI  GARDENS  HOUSING  PROGRAM  POLICIES  ; PROVIDING  FOR  THE  ADOPTION  OF  REPRESENTATIONS; PROVIDING  FOR  AN  EFFECTIVE  DATE.  Staff  Summary:  Background   On  December  13, 2006, the  City  Council  approved  the  City  of  Miami  Gardens  Housing  Program  Policies, which  were  developed  by  the  Department  of  Community  Development  (CD) to  establish  and  administer  various  Housing  Programs.  Since  that  time, the  City  has  received  additional  funding  from  various  sources, requiring  amendments  to  the  City’s  Housing  Policies.   Such  amendments  we re  reflected  in  the  most  recent  versions, approved  by  City  Council  on  July  22, 2009, December  9, 2009, and  July  28, 2010. ITEM K-4) CONSENT AGENDA RESOLUTION Exterior Safeguard Program   1515  NW  167  Street, Building  5  Suite  200    Miami  Gardens, Florida  33169    As  a  reminder, the  purposes  of  the  Housing  Program  Policies  are:   To  ensure  the  City’s  compliance  with  the  requirements  of  the  various  funding  sources   To  achieve  program  effectiveness, including  consistency  and  fiscal  responsibility   Since  2007, CD  has  successfully  completed  158  housing  rehab  projects. This  number  amounts  to  approximately  32  houses  per  year.  A  significant  portion  of  the  funding  for  this  program  came  from  the  federally  funded  Disaster  Recovery  Initiative  (DRI) and  State  Housing  Initiatives  Partnership  (SHIP) Program  Funds  received  from  State  of  Florida.  Despite  this  notable  accomplishment, this  number  of  rehab  projects  represents  only  a  fraction  of  the  need  in  the  community.  Demand  for  this  program  continues  to  be  very  high  and  far  surpasses  the  City’s  financial  resources  with  which  to  address  the  need.  Current  Situation   Over  the  past  two  years, the  City  has  seen  significant  funding  cuts  to  its  CDBG  allocations; a  16.7% reduction  in  the  2011 ‐12  and  a  25.3% reduction  for  the  2012 ‐13  program  years.  Additionally, the  City’s  DRI  Funds  have  been  fully  expended; and  the  State  is  not  anticipated  to  continue  funding  the  SHIP  Program.  Based  on  this  trend, City  Staff  expects  future  funding  to  continue  to  decline  as  well.  Therefore, the  City  must  be  creative  with  the  reduced  funds  it  will  receive.    In  anticipation  of  limited  financial  resources  to  fund  the  Housing  Rehabilitation  Program, City  Staff  conducted  a  survey  of  other  similar  programs  being  implemented  throughout  the  country.  Staff  found  that  many  municipalities  focus  their  rehab  services  on  one  or  two  major  activities  such  as  roofs, shutters, and  doors  in  order  to  make  a  larger  impact  on  the  housing  stock  in  the  community.  Additionally, many  of  these  programs  provide  assistance  in  the  form  of  a  repayable  loan.  As  a  result  of  this  survey, City  Staff  is  recommending  the  following  changes  to  the  City’s  Housing  Program  Policy:  1) Limit  the  focus  of  housing  rehabilitation  activities  to  exterior  improvements  such  as  roofs, shutters  and  doors    2) Adoption  of  a  0% repayment  schedule  for  approved  homeowners; the  length  of  time  over  which  the  loan  is  amortized  will  range  from  5 ‐10  years, and  will  depend  on  the  household’s  income  level  and  the  total  amount  of  the  loan   3) Utilize  specialty  trade  contractors  for  the  limited  work  scope  (instead  of  general  contractors), thus  reducing  the  total  cost  of  repairs   By  limiting  the  scope  of  the  work, and  by  requiring  a  repayment  of  the  loan  amount, the  City  will  reduce  the  amount  of  assistance  needed  for  each  home  and  recycle  funds, thereby  allowing  the  City  to  continue  to  assist  more  low ‐to ‐moderate  income  homeowners.      1515  NW  167  Street, Building  5  Suite  200    Miami  Gardens, Florida  33169   Homeowner’s  monthly  payments  will  range  from  $30.00  to  $125.00  (loans  for  homeowners  earning  less  than  50% of  area  median  income  will  be  forgivable  after  5  years).  Payment  amounts  will  also  depend  on  the  term  of  the  loan.  An  Invitation  To  Bid  (ITB) will  be  issued  to  solicit  vendors  from  the  specified  trades. Every  effort  will  be  made  to  give  priority  to  local  vendors  in  each  of  the  previously  mentioned  trades. Local  vendors  who  respond  to  the  ITB  will  be  given  priority  during  the  selection  process.  The  cost  for  the  home  repairs  will  be  set  by  City  Staff  at  reasonable  industry  and  manufacturer  pricing.  The  selected  vendors  will  be  awarded  projects  on  a  rotation  basis.    City  Staff  recommends  amending  Section  5  of  the  Housing  Program  Policies, which  includes  language  that  will  authorize  the  City  Manager  in  carrying  out  this  program.   Proposed  Action:  That  the  City  Council  approve  the  attached  resolution.     Attachment:   Section  5  of  the  Housing  Program  Policies      Housing  Rehabilitation  Program   Under  the  Housing  Rehabilitation  Program, the  City  of  Miami  Gardens  provides  assistance  of  up  to  $35,000.00  to  qualified  applicants  requiring  necessary  repairs. This  program  is  limited  to  persons  or  households  whose  total  household  income  does  not  exceed  80% to  120% of  AMI.  (Please  see  Section  2  for  the  definition  of  AMI.) This  assistance  is  subject  to  funding  availability.  Per  City  Council’s  approval  of  Resolution  #    dated  July  11, 2012  the  City  will  be  performing  Tier  1  rehabilitation  work  only.  Loan  Terms  The  City’s  funding  will  be  provided  in  a  repayable  loan  form.  The  repayment  will  be  used  to  recycle  the  funding  for  future  applicants.    The  assistance  will  be  provided  as  a  five  (5) – ten  (10) repayable  loan  that  will  be  satisfied  at  maturity  provided  that  occupancy  requirements  are  met.    The  repayment  will  consist  of  sixty  (60) – one  hundred  and  twenty  (120) equal  monthly  installments  with  zero  percent  (0%) interest.   Payments  will  commence  on  the  first  day  of  the  month  following  the  closing  of  the  loan .  The  Loan  Rr ecipient  will  receive  payment  remitting  instructions  upon  closing.   Payments  received  will  be  considered  Program  Income  and  used  to  carry  out  activities  under  the  same  program. The  payment  amounts  will  be  calculated  as  follows:   i. Applicants  earning  fifty  (50%) or  less  of  AMI  will  not  have  to  repay  the  assistance  provided, it  will  remain  in  the  form  of  a  five  (5) year  forgivable  loan, ii. Applicants  earning  between  fifty  (50%) – eighty  (80%) of  AMI  will  repay  the  assistance  provided  in  the  form  of  a  five  (5) – ten  (10) year  loan   Security  Assistance  is  provided  as  a  five  (5) year  deferred  payment  loan  with  a  recapture  provision  that  requires  the  recipient  occupy  the  property  throughout  the  five  years  following  receipt  of  assistance. Upon  maturity, the  City’s  loan  converts  to  a  grant  and  is  thereby  forgiven.  This  provision  is  clearly  disclosed  on  the  Promissory  Note  to  be  executed  by  the  applicant  and  secured  with  a  mortgage  lien  placed  on  the  property.   In  the  case  of  the  death  of  the  homeowner, the  heirs  can  assume  the  indebtedness, provided  they  have  been  certified  as  income  eligible  by  the  City, and  that  they  reside  in  the  house  as  their  primary  residence. Otherwise, the  total  principal  and  all  accrued  interest  will  be  due  immediately.  Assistance  is  provided  with  a  recapture  provision.  This  provision  is  clearly  disclosed  on  the  Promissory  Note/s  to  be  executed  by  the  applicant.  The  Promissory  Note  is  thereby  secured  with  a  mortgage  lien  placed  on  the  property ..  Assistance  is  provided  by  the  following: Section   5 Formatted: No bullets or numbering Formatted: Numbered + Level: 1 +Numbering Style: i, ii, iii, … + Start at: 1 +Alignment: Right + Aligned at: 1.13" + Tab after: 1.38" + Indent at: 1.38"   Page 2 A pproved 07/28/2010 Reso2010 ‐1281309 iii. Applicants  with  fifty  (50%) or  less  of  AMI (Please  see  Section  2  for  the  definition  of  AMI)will  not  have  to  repay  for  the  assistance  provided, it  will  remain  in  the  form  of  a  five  (5) year  forgivable  loan  term, iv. Applicants  with  fifty  (50%) – eighty  (80%) of  AMI  will  repay  for  half  of  the  assistance  provided  with  monthly  installment  payments  at  zero  percent  (0%) interest  in  the  form  of  a  five  (5) – ten  (10) year  loan  term  and  the  other  half  will  remain  in  the  form  of  a  five  (5) – ten  (10) year  forgivable  loan  term, v. Applicants  with  eighty  (80%) – one  hundred  and  twenty  (120%) of  AMI  will  repay  for  the  assistance  provided  in  full  with  monthly  installment  payments  at  zero  percent  (0%) interest  in  the  form  of  a  five  (5) – ten  (10) year  loan  term, The  assistance  under  this  program  includes  a  With  provision  that  requires  that  the  recipient  occupy  the  property  throughout  the  five  (5) – ten  (10) year  loan  period  following  receipt  of  assistance. Upon  maturity, the  City  will  satisfy  the  loan.  This  provision  is  clearly  disclosed  on  the  Promissory  Note  to  be  executed  by  the  applicant  and  secured  with  a  mortgage  lien  placed  on  the  property.   In  the  case  of  the  death  of  the  homeowner, the  heirs  can  assume  the  indebtedness, provided  they  have  been  certified  as  income  eligible  by  the  City, and  that  they  reside  in  the  house  as  their  primary  residence. Otherwise, the  total  principal  will  be  due  immediately.  Inspection  and  Specification  of  Work   All  Rehabilitation  and  Replacement  loans  will  require  an  inspection  of  the  home  to  be  carried  out  by  an  approved  and  licensed  inspector  contracted  by  the  Department. The  cost  of  the  inspection  and  the  preparation  of  the  Specification  of  Work  Report  will  be  paid  from  the  loan  proceeds.    The  Inspector  will  meet  with  the  homeowner  and  inspect  the  residence  for  repairs  needed  for  the  health, safety  or  sanitary  conditions  of  the  home.   The  Inspector  will  also  review  for  violations  of  Housing  Quality  Standards  (HQS), as  well  as  Florida  Building  Code.   The  Tier  System  will  be  used  to  determine  the  priority  of  the  repairs  needed.   The  Inspector  will  prepare  a  Specification  of  Work  Report  that  will  be  reviewed  and  approved  by  the  homeowner  prior  to  it  being  released  to  the  contractors.  The  Report  will  not  be  approved  and  finalized  by  the  Department  until  after  the  Bid  closing  deadline.  The  Inspector  will  schedule  and  invite  the  contractors  to  a  Pre ‐Bid  Meeting.  Attendance  at  the  Pre ‐Bid  Meeting  is  mandatory.  Contractors  not  attending  are  disqualified  from  participating.  The  inspector  will  collect  names  and  signature  of  those  in  attendance  and  will  conduct  the  meeting  by  explaining  the  Specification  of  Work  Report, answering  questions  and  addressing  concerns.   After  the  Pre ‐Bid  Meeting, the  Inspector  will  provide  the  Department  with  a  Specification  of  Work  Report  as  provided  to  the  contractors, a  Specification  of  Work  Report  with  his  line  item  cost  estimate  and  the  sign  in  sheet  from  the  Pre ‐Bid  Meeting.  He  will  also  provide  pictures  to  reference  the  items  on  the  Report.   Eligible  Repairs  The  Specification  of  Work  report  will  be  based  on  a  Tiered  System.   This  System  was  developed  to  provide  a  guide  by  which  needed  repairs  are  identified  and  to  ensure  adherence  of  the  City’s  Housing  Rehabilitation  Standards  and  Housing  Quality  Standards  as  per  24  CFR  982 .  Priority  will  be  Formatted: Normal, Left, Indent: Left: 0"   Page 3 A pproved 07/28/2010 Reso2010 ‐1281309 given  to  hardening  and  mitigation  as  well  as  returning  homes  to  their  original  form  if  a  non ‐conforming  unit  exists.     Per  City  Council  Resolution  No. ______, only  Tier  1  repairs  will  be  performed  under  the  Housing  Rehabilitation  Program. Tier  I  Roof  Windows   Exterior  Doors  Shutters   Tier  II  Windows  Smoke  and  Gas  Alarm  System  Electrical  System  Plumbing   Tier  III  Exterior  Paint  & Structural  Repair  Bathroom  Fixture  Replacement   Kitchen  Cabinet  Replacement  Air  Conditioning  Replacement     Contractor  Participation  Contractor’s  wanting  to  participate  in  the  City’s  Housing  Programs  must  be  approved  through  the  City’s  Procurement  Department.  In  addition, the  Department  will  perform  an  assessment  to  confirm  the  contractor’s  eligibility.  This  includes  confirming  that  they  have  not  been  suspended  or  debarred  by  U.S. HUD  or  any  other  Federal  Executive  Branch  Agency.  If  so, they  will  be  excluded  from  participation  in  the  program.  The  Department  will  also  verify  with  the  State  of  Florida  Department  of  Business  and  Professional  Regulation  for  any  complaint  history  associated  with  the  applicant’s  license.  If  a  complaint  were  to  exist, the  particulars  will  be  reviewed  by  staff  and  a  recommendation  will  be  made  to  the  Department  Director  as  to  whether  to  approve  or  deny  the  contractor’s  request  for  participation.  The  Department’s  decision  will  be  made  in  writing  to  the  applicant  with  copy  to  the  Procurement  Department.    The  Department  will  maintain  a  current  listing  of  approved  contractors  that  will  be  utilized  to  seek  bids  for  the  Housing  Programs.  The  list  will  also  be  made  available  to  City  residents  on  the  Department’s  website.   The  contractors  will  be  responsible  for  updating  their  insurance  and  licensing  information  as  required.  All  contractors  must  have  an  operating  fax  and/or  e ‐mail  address.   Approved  Contractors  are  expected  to  actively  participate  in  the  bidding  process.  Those  who  are  unresponsive  to  3  or  more  bid  invitations  could  be  denied  continued  program  participation.  In  situations  such  as  this, contractors  will  receive  formal  notification  from  the  Department  advising  of  their  removal  from  the  Approved  Contractor  Listing.  Contractors  requesting  to  be  reinstated  must  provide  a  written  explanation, updated  license  and  insurance  information.  The  Department  will  reinstate  contractors  at  the  Department’s  discretion.   Any  changes  in  policy  or  procedure  related  to  the  housing  programs  will  be  communicated  to  the  contractors  via  a  Program  Directive.           Bidding  Process     Page 4 A pproved 07/28/2010 Reso2010 ‐1281309 Tier  1  Rehabilitation : The  procurement  of  the  vendors  will  be  limited  to  the  specific  trades  versus  utilizing  General  Contractors.  The  cost  of  the  replacement  units  will  be  set  by  Staff  at  reasonable  competitive  pricing.  The  vendors  will  be  awarded  projects  on  a  rotation  basis.   All  other  tiers: All  bids  will  be  made  available  through  a  formal  process  carried  out  by  the  Department  who  utilizes  a  procurement  service  such  as  DemandStar, which  will  make  these  bidding  opportunities  available  to  all  interested  parties.    The  Department  will  be  responsible  for  all  the  aspects  of  the  posting, collecting  and  tallying  the  bids  submitted.  In  addition, they  will  review  the  submittals  for  required  licensing  and  insurances.   All  eligible  contractors  will  be  invited  to  attend  Pre ‐Bid  meetings  held  by  a  City  appointed  Inspector  at  the  applicants’ homes.  Pre ‐Bid  Meetings  are  mandatory, contractors  can  only  submit  bids  if  they  attend  the  meeting.  At  times, depending  on  the  program  specifications, invitations  to  bid  could  be  sent  directly  by  the  Department  to  specific  contractors  based  on  licensing  or  trade  specialties.  When  this  is  the  case, Pre ‐Bid  meetings  will  be  held  at  the  Department’s  discretion  but  contractors  will  continue  to  be  subject  to  the  remainder  of  the  eligibility  components.   The  eligibility  to  be  awarded  a  bid  will  be  subject  to  various  components  such  as  the  number  of  projects  underway, bid  response, Performance  Scorecard  Ratings, contractor  capacity, new  contractor  status, etc.  The  Department  reserves  the  right  to  deny  a  contractor  from  bidding  if  they  are  currently  working  on  a  project  where  the  Department  believes  the  contractor’s  performance  is  lacking  or  is  perceived  to  not  meet  the  timeline  imposed  by  the  contract.   At  the  pre ‐bid  meetings, contractors  will  be  provided  with  the  approved  Specification  of  Work  Report  that  will  detail  the  work  to  be  completed  for  that  particular  project.  Contractors  will  be  given  a  deadline  to  submit  their  bids.  All  bids  should  be  presented  in  a  sealed  envelope  labeled  with  the  project  number, name, address  and  submitters  company  name.  If  a  Specification  for  Work  Addendum  is  issued  on  a  project, the  bid  package  must  include  the  Addendum.  Failure  to  include  the  Addendum  will  disqualify  a  bid  from  being  considered  for  award  as  will  the  failure  to  complete  the  bid  in  its  entirety.  A  minimum  of  3  responsible  bids  will  be  required  per  project.  If  less  than  3  bids  are  received, the  Specifications  of  Work  Report  could  be  amended  and  re ‐sent  to  all  contractors  who  originally  attended  the  Pre ‐Bid  meeting.  In  the  event  that  the  project  is  re ‐bid  and  3  bids  are  not  received, the  Department  will  notate  the  file  to  show  the  attempts  and  proceed  with  the  bids  received.  (In  an  emergency  situation  where  a  condition  is  deemed  unsafe  by  either  the  Inspector  or  the  City’s  building  official, this  requirement  may  be  waived  by  the  Director.)  Upon  the  expiration  of  the  established  Bid  Deadline, the  Department  will  notify  participating  contactors  of  the  time  and  place  of  the  Bid  Opening.   The  Bids  will  be  opened  in  the  presence  of  two  staff  members.  The  bidder  names  and  corresponding  amount  will  be  read  aloud.   The  results  will  then  be  itemized  on  a  Bid  Result  Report.   Award  shall  be  based  on  the  information  submitted  only, no  changes, additions  or  deletions  will  be  permitted  after  the  bids  are  accepted  by  the  Department.   The  lowest  responsible  and  responsive  bidder  will  be  selected.  The  Bid  Result  Report  will  be  noted  with  the  decision  and  supporting  documentation  kept  in  the  Loan  File.  The  homeowner  will  sign  the  final  version  of  the  Bid  Result  Report, further  indicating  their  approval  of  the  contractor  selection.  Exception  to  this  policy  rests  with  the  City  Manager.    The  Department  reserves  the  right  to  revise  the  Specification  of  Work  Report  if  the  lowest  responsible  bid  exceeds  the  program  maximum  amount.  The  Tier  System  will  be  used  to  determine  Formatted: Font: Bold Formatted: Indent: Left: 0.25"Formatted: Font: Bold   Page 5 A pproved 07/28/2010 Reso2010 ‐1281309 what  items  must  be  removed  or  revised.   The  Report  will  be  revised  prior  to  the  loan  closing  and  provided  to  all  interested  parties.    Contractors  can  requests  copies  of  the  bid  packages  after  a  project  is  awarded  and  will  be  charged  the  standard  Public  Document  Request  copy  fee.   A  deposit  of  $10.00  will  be  required  upon  request.  Contractors  can  request  a  Bid  Analysis  once  a  project  is  awarded  at  a  charge  of  $25.00.  The  fee  must  be  paid  upon  request.  Fees  collected  will  be  considered  Program  Income  and  will  be  used  as  such.   Contractor  Award  Criteria  Contractors  will  be  awarded  a  maximum  of  two  projects  concurrently.  Therefore, if  a  contractor  has  two  active  contracts, they  will  not  be  awarded  any  additional  contracts. Contractors  are  encouraged  to  participate  in  the  bidding  process  regardless  of  the  number  of  projects  awarded.   The  authority  to  approve  an  exception  to  the  Two ‐Contract  Policy  will  rest  with  the  Department  Director  and  the  file  will  be  documented  justifying  the  reason  for  the  exception.  Reasons  for  an  exception  can  be  related  to  the  next  highest  bid  being  significantly  higher, contract  status, the  work  capacity  previously  displayed  and  the  level  of  accomplishment  and  satisfaction  with  prior  contracts.   If  the  lowest  responsive  and  responsible  bidder  has  not  previously  performed  like  services  for  the  City  of  Miami  Gardens, the  City  reserves  the  right  to  award  only  one  contract  during  a  trial  period  or  until  such  time  that  Department  staff  can  determine  that  the  bidder  will  perform  to  the  City’s  complete  satisfaction. Approval  of  exceptions  to  this  policy  rest  with  the  Department  Director  and  must  be  documented  for  the  file. If  the  Department  finds  that  a  contractor  fails  to  meet  his/her  obligations  with  the  homeowner  and/or  the  City, and  does  not  remedy  the  situation  as  stipulated  by  the  Department, the  contractor  will  be  removed  from  the  Department’s  list  of  approved  contractors  and  not  be  allowed  to  participate  in  the  City’s  Housing  Programs.    Permits  and  Licenses  All  Contractors  are  required  to  have  all  applicable  licenses  and  insurance  coverage  and/or  exemptions.  Upon  receipt  of  a  new  contractor  application, the  Department  will  confirm  licensing  and  worker’s  compensation  status  with  the  Florida  Department  of  Business  and  Professional  Regulation.  Contractors  must  also  be  certified  by  the  U.S. Environmental  Protection  Agency  (EPA) as  a  RRP  Contractor.  (See  Section  8  for  further  information) The  Department  will  not  make  any  disbursements  unless  the  proper  permits  are  filed  and  the  work  being  performed  is  approved.   License  from  the  Department  of  Business  and  Professional  Regulation  and/or  from  Miami ‐Dade  County, depending  on  the  particular  trade, is  required.  It  is  the  responsibility  of  the  General  Contractor  to  ensure  that  all  sub ‐contractors  are  licensed  and  insured.  The  City  will  require  all  contractors  to  provide  proof  of  General  Liability  coverage  of  not  less  than  one  million  dollars  ($1,000,000).  Contractors  will  also  be  required  to  provide  proof  of  Workers' Compensation  Insurance  and  ensure  that  subcontractors  have  the  required  coverage.         Page 6 A pproved 07/28/2010 Reso2010 ‐1281309 All  contractors  awarded  with  a  Replacement  Home  Program  contract  will  be  required  to  add  the  City  of  Miami  Gardens  as  an  additional  insured  on  all  insurance  policies  and  will  be  required  to  purchase  Builder’s  Risk  coverage.   Contractor  Performance  Scorecard  In  order  to  ensure  a  high  level  of  quality  and  workmanship, the  Department  has  established  a  Performance  Scorecard  process  that  allows  us  to  evaluate  each  contractor’s  performance.   The  Performance  Scorecard  is  completed  once  the  final  inspection  is  performed.  The  scorecard  assigns  a  specific  point  value  to  each  established  criterion.  The  minimum  score  required  to  continue  participation  in  the  programs  is  75  out  of  100  points.  The  criterion  primarily  focuses  on  timeliness, quality  of  workmanship, homeowner  satisfaction, acquisition  of  permits  and  local  vendor  participation.   However, the  Department  reserves  the  right  to  amend  the  scorecard  as  deemed  necessary.    See  Appendix  for  sample.      A  new  contractor  who  is  awarded  their  first  project  and  does  not  score  the  minimum  points  will  be  removed  from  participating  in  the  program.  The  contractor  will  be  notified  in  writing  and  provided  a  copy  of  the  Performance  Scorecard.  Copy  of  the  correspondence  and  Scorecard  will  be  submitted  to  the  Procurement  Department  for  their  files.    An  existing  contractor  who  has  successfully  completed  projects  with  the  City  in  the  past  and  does  not  score  the  minimum  points  required  on  one  particular  project  will  be  placed  on  a  probationary  status.  While  in  probation, their  participation  will  mirror  that  of  a  new  contractor, including  the  same  limitation  on  projects  awarded.  They  will  be  notified  of  their  new  status  and  limitations  and  will  receive  a  copy  of  the  Scorecard.  Copy  will  be  provided  to  the  Procurement  Department  for  their  files.     All  contractors  will  be  given  a  reasonable  time  to  appeal  the  Department’s  decision.  Appeals  will  be  submitted  to  the  Director  for  his  assessment.  The  final  determination  will  be  provided  in  writing  to  the  Contractor, the  Procurement  Manager  and  Community  Development  Staff.      Remedy  Contractors  Although  the  Department  makes  every  effort  to  assure  that  Contractors  perform  as  per  the  Contract  Terms, there  are  times  where  the  Contractor  either  fails  to  perform  as  expected  or  does  not  complete  the  project; both  considered  a  default  of  the  Contract  Terms.   In  most  cases, the  default  is  identified  within  the  first  30  to  45  days  after  the  project  is  awarded.  In  these  cases, the  Department  would  follow  the  necessary  steps  in  working  with  the  homeowner  in  cancelling  the  existing  contract  and  terminating  the  Contractor  from  the  project.  Depending  on  the  circumstances, this  could  include  the  Department  removing  the  Contractor  from  the  overall  program.  The  Department  would  proceed  to  contact  the  next  lowest  bidder  to  complete  the  project  and  execute  the  necessary  documents  to  do  so.    Unfortunately, there  are  cases  where  the  initial  contractor  has  performed  partial  or  all  the  work  but  the  work  is  not  completed  in  accordance  with  the  Specification  of  Work  Report, the  workmanship  is  poor, or  the  contractor  has  failed  to  pull  permits  and/or  adhere  to  building  code  requirements.  Again, the  Department  would  proceed  to  contact  the  next  lowest  bidder  to  complete  the  project.   In  the  case  that  the  next  lowest  bidder  cannot  proceed  from  where  the  defaulted  contractor  stopped  either  because  of: a) the  lapse  of  time  from  when  he  initially  submitted  the  bid, b) he     Page 7 A pproved 07/28/2010 Reso2010 ‐1281309 cannot  honor  his  initial  bid  amount, c) he  cannot  commence  work  immediately  or  d) he  no  longer  wants  the  project, the  Department  then  reserves  the  right  to  select  a  Remedy  Contractor.  The  Remedy  Contractors  will  be  appointed  by  the  Department  using  the  following  criteria: a) they  must  have  the  capacity  to  begin  work  on  the  project  immediately, b) they  must  have  received  passing  scores  on  all  of  their  Scorecard  Evaluations, c) they  must  have  completed  8  or  more  projects  for  Miami  Gardens  and  d) they  must  accept  to  warrantee  all  the  work  for  which  they  were  not  initially  responsible.  The  Remedy  Contractor  will  also  be  asked  to  accept  the  original  bid  amount  when  the  work  being  performed  is  the  same.  Instances  where  the  cost  is  more, the  Department, at  its  discretion, will  evaluate  the  cost  and  make  the  determination  to  either  accept  the  proposed  cost  or  proceed  in  another  manner  which  could  include  re ‐bidding  the  project.  The  Department  will  review  its  Remedy  Contractors  on  an  annual  basis.   Sweat  Equity  The  City  of  Miami  Gardens  will  not  finance  any  rehabilitation  in  cases  where  the  applicant  performs  the  work.   The  City  will  not  reimburse  homeowner  for  work  completed  prior  to  or  during  the  time  whereby  the  City  sponsored  project  has  commenced.    Draw  Requests  Upon  execution  of  a  Contractor/Homeowner  Agreement, the  Department  will  provide  the  Contractor  with  a  Payment  Request  Form  and  a  Draw  Form.  The  Department  will  be  responsible  for  ensuring  that  payments  are  made  in  accordance  with  the  Specification  of  Work  Report, and  all  applicable  Department  and  City  procurement  and  contracting  policies.    To  request  a  draw, both  forms  must  be  signed  by  the  Contractor  and  Homeowner  and  presented  to  the  Department  of  Community  Development.  Copy  of  applicable  City  of  Miami  Gardens  Permit  Cards  must  accompany  the  Draw  Requests.  The  Permit  Card  must  show  an  approval  for  the  specific  trade  being  drawn  and  with  the  percentage  of  completion  being  drawn.    The  Department  will  not  make  payment  for  more  than  50% of  a  line  item  without  an  approved  final  inspection, Release  of  Lien  and  any  applicable  warranty.  All  Draw  Requests  must  be  approved  by  the  Loan  Program  Manager  and  the  Department  Director.  At  no  time  are  Draw  Requests  to  be  submitted  directly  to  the  Finance  Department.  The  Finance  Department  will  not  process  any  Draw  Requests  that  have  not  been  reviewed  and  approved  by  the  Director  or  his/her  designee.   Retainer  The  City  will  retain  10% of  all  Draws  until  final  inspection  and  project  completion.  The  retainer  is  released  upon  acceptable  project  completion  and  submission  of  the  required  documentation  including  releases  of  liens  from  all  subcontractors  who  performed  work  on  this  project.     Final  Inspections  Upon  completion  of  a  project, a  final  inspection  must  be  requested  by  the  contractor.  The  request  must  include  a  copy  of  the  Final  Draw  Form  and  copy  of  all  Permit  cards  with  Final  Approval  from  the  Building  Department  Inspectors. The  request  for  a  final  inspection  will  be  made  by  the  contractor  directly  with  the  Department’s  Housing  Inspector.      Page 8 A pproved 07/28/2010 Reso2010 ‐1281309 A  final  inspection  will  be  performed  and  will  determine  whether  the  work  performed  was  completed  as  per  the  Specification  of  Work  Report.  Any  line  item  not  completed  as  per  the  Specification  of  Work  Report  will  not  be  acceptable  and  considered  a  finding.  If  the  final  inspection  determines  that  there  are  findings, a  second  final  inspection  will  be  required  and  again  must  also  be  requested  by  the  contractor. There  will  be  a  charge  to  the  contractor  of  $200.00  for  any  inspection  beyond  the  second  final  inspection.  The  charge  will  be  deducted  from  the  project  retainer. Contractors  will  be  fined  $50.00  per  calendar  day, to  be  deducted  from  the  total  contract  as  liquidated  damages, for  each  day  the  project  remains  incomplete  beyond  the  date  specified  for  completion.   Contract  Dispute  If  a  problem  should  arise  between  the  Homeowner  and  the  contractor, it  is  the  responsibility  of  those  parties  to  resolve  the  issues.  The  Department  may  intercede  in  order  to  facilitate  the  progress  of  the  project.   If  the  Homeowner  does  not  receive  satisfaction  from  the  contractor, the  Department  reserves  the  right  to  intervene  on  his/her  behalf.  The  Department  could  withhold  payment  and/or  retainer  if  deemed  necessary.     Likewise, the  Department  reserves  the  right  to  intervene  on  the  contractor’s  behalf  if  the  Homeowner  is  refraining  from  approving  a  Draw  request  without  just  reason. The  Department  could  proceed  to  pay  the  contractor  for  the  work  completed  as  required  without  the  Homeowner’s  approval  if  it  can  inspect  and  justify  that  the  contractor  is  in  fact  due  payment.   In  the  event  that  a  homeowner  cancels  a  certain  line  item  or  activity  from  the  proposed  scope  of  work, the  contractor  could  be  allowed  to  draw  up  to  10% of  the  line  item  amount, provided  they  are  able  to  demonstrate  that  they  have  incurred  expenses  for  the  line  item  in  question.    The  file  must  be  documented  with  all  the  specifics  and  findings  for  each  case.