COVER SHEET INVITATION TO QUALIFY (ITQ) APPRAISAL SERVICES

Transcription

COVER SHEET
INVITATION TO QUALIFY (ITQ)
APPRAISAL SERVICES
Redevelopment Authority of
the City of Philadelphia
The Redevelopment Authority (RDA) is issuing this ITQ to prequalify appraisers interested
in providing categories of appraisal services of property transactions.
Question and Answer Period:
Direct all questions to Val Pasquarella via email ([email protected])
regarding this ITQ, responses to questions will be emailed and posted on the website.
Enrollment & Contract Period:
In order to qualify, applications must be complete and correct and contain all necessary
information including Client Reference Surveys. Submission deadline for this ITQ is rolling,
but responses received by 5:00 PM, June 3, 2010 will be processed and reviewed during the
month of June. It is in the best interest of all appraisers to submit the required information by
the June 3, 2010 submission date in order to qualify for the contract period. Enrollment for
the contract period will remain open and ITQ responses will be accepted at the address below
through October 30, 2013 (or through October 30, 2018 if the RDA chooses to renew this
contract for an additional five (5) years) and processed annually.
Response Mailing Address:
Attn: Val Pasquarella
Appraisal Division (ITQ)
Redevelopment Authority
1234 Market Street, 16th floor
Philadelphia, PA 19107-3701
RDA Appraisal Division Contact:
Val Pasquarella, Appraisal Division
Telephone: (215) 209-8773
E-mail: [email protected]
WHEN MAILING YOUR RESPONSE, PLEASE ALLOW SUFFICIENT TIME FOR
DELIVERY.
TABLE OF CONTENTS
THIS INVITATION TO QUALIFY CONTAINS THE FOLLOWING:
Cover Sheet
Table of Contents
ITQ Appraiser Application Signature Form
EXHIBIT “A”
ITQ Terms and Conditions
EXHIBIT “B”
Lobbying Certification Form
Disclosure of Lobbying Activities Form & Instructions for Completion
Insurance Requirements
EXHIBIT “C”
Qualification Information
Qualification Application
Client Reference Survey Form
EXHIBIT “D”
Contractor Update Form
EXHIBIT “E”
Confirmation of Service Form
EXHIBIT “F”
Standard RDA Agreement for Appraisal Services
EXHIBIT “G”
RDA Appraisal Procedure & Guideline Manual
EXHIBIT “H”
Questions and Answers
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Redevelopment Authority of the City of Philadelphia
Invitation to Qualify: Appraiser Application Signature Form
(Complete in INK or TYPE only--DO NOT use pencil)
READ ALL Directions/Instructions in Exhibit "A" (attached) Before Completing this Page, APPRAISER MUST
COMPLETE ALLAPPLICABLE AREAS
Company Name and Address
For Redevelopment Use Only
Appraiser’s Contact Person
Telephone Number
( )
Fax Number
( )
Federal Identification or Social Security No.
Are you a Disadvantaged Business Enterprise
certified by the City of Philadelphia?
_____ yes
Required e-mail Address:
_____ no
Are you an MBE/WBE certified with the State of
Pennsylvania?
_____ yes
_____ no
(It is mandatory for appraiser to have an active e-mail address and
the capability to conduct e-business. An appraiser will not be
qualified for any category of work if the appraiser fails to meet this
requirement.)
Appraiser acknowledges any and all handwritten information by
initialing & dating here.(The Appraiser’s authorized signatory must
initial & date where indicated at right)
Initial
___________
Date
___________
This contract consists of the following provision and exhibits, and Fee Appraisers shall comply with all provision as listed below:
1)
The RDA Appraisal Procedure & Guideline Manual; and
2)
The Lobbying Certification Form, Disclosure of Lobbying Activities Form (if applicable), and Insurance Requirements; and,
3)
Qualification, Licensure, and if applicable, MBE/WBE/DBE information.
1. APPRAISER’S SIGNATURE, DATE, TITLE
Signature:
Date:
Title:
Redevelopment Authority Use Only
Signature:
Date:
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EXHIBIT “A”
ITQ TERMS AND CONDITIONS
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Invitation to Qualify for Appraisal Service Contracts
TERMS AND CONDITIONS
The RDA invites you to respond to an Invitation to Qualify (ITQ) to supply appraisal
services.
1. GENERAL
(a) Scope. The purpose of this ITQ and resulting contracts with multiple vendors is to qualify
appraisers that can provide the RDA with appraisal services for the following purposes:
(1) The acquisition of property;
(2) The sale of property no longer needed; and,
(3) The lease of property.
(b) Prequalification. The contracts awarded will be structured under the multiple-award
contract approach and a prequalified list of appraisers will be developed from which the RDA
will solicit appraisal services. Appraisers must be on this prequalified list in order to perform
appraisal services as described in this ITQ. Each responsible appraiser who meets all
mandatory requirements and the qualification criteria of this ITQ will be qualified, unless the
RDA rejects all applications.
(c) Who shall be qualified? If the Appraiser employs one or more qualified appraisers, each
appraiser under the Appraiser’s employ shall be individually qualified.
(d) Work not guaranteed. There is no guarantee that the RDA will use the Appraiser’s
services under the multiple-award contract approach.
(e) Appraisal Problem Analysis. The RDA Appraisal Division will issue an Appraisal
Problem Analysis (APA) to solicit assignments under this Contract. An Appraisal Problem
Analysis will:
(1) Establish the scope of work and assists the Fee Appraiser in understanding
the assignment;
(2) Contain available factual information regarding the property, the claimants,
and the effects the project will have on the property; and
(3) Include specific requirements of the appraisal assignment based on the study
and understanding of the appraisal problem by the author of the APA.
(g) Appraisal assignment categories. Appraisers must complete all required information in
the Qualification Application attached as Exhibit “C,” including the specific category or
categories of assignment for which the appraisers wish to be qualified. Qualification will fall
into the following three (3) categories of appraisal assignments:
Category 1:
Category 1 Assignments under the ITQ, at minimum residential certification, use of
Appraisal Institute Form AI -100.01
All properties with an anticipated residential highest and best use For
example:
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(i)
(ii)
(iii)
(iv)
(v)
Total take, residential, four (4) units or less.
Total taking, vacant unimproved land, with a residential highest and
best use.
Partial take, residential, four (4) units or less, with no anticipated
impact on the remaining property.
Partial take, residential, four (4) units or less, with only minor
anticipated impact on the remaining property, requiring a before and
after analysis.
Partial take, vacant unimproved land, with a residential highest and
best use.
Category 2 & 3:
Category 2 Assignments under the ITQ, General certification, use of USPAP Narrative
Summary Appraisal Report & Category 3 Assignments under the ITQ, General certification,
use of the Machinery and Equipment Report
All properties with an anticipated non-residential highest and best use plus
partial take, residential, where there is significant impact anticipated on the
remaining property, requiring a before and after analysis. For example:
(i)
Total taking non-residential.
(ii)
Partial taking, non-residential, where there may be a significant
impact to the value of the remaining property.
(iii)
Unique or special purpose properties where there is little or no market
data readily available.
(iv)
Situations where the take severely impacts the remaining property
and/or where complex cost to cure estimates may be appropriate to
determine the impact of the taking.
(h) Qualification.
(1) Qualification deadline. The RDA will not accept applications for qualification
after October 30, 2013 (or after October 30, 2018 if the RDA chooses to renew
this contract for an additional five (5) years).
(2) Qualification update. The Appraiser, through the use of the ITQ Appraisal
Services Update Form attached to this ITQ as Exhibit “D,” may request any of the
following actions at any time after contract is awarded:
(i)
Change in address or contact information.
(ii)
Addition or deletion of an appraiser.
(iii)
Transfer of an already-qualified appraiser from one awarded company
to another awarded company.
(3) Notification:
(i)
It is the responsibility of the Appraiser to report to the RDA
any changes including, but not limited to:
(A) Name change;
(B) Address change;
(C) E-mail address change;
(D) Telephone number change;
(E) FAX number change; and
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(ii)
Exhibit “D” provides very clear instructions for filling out the
ITQ Appraisal Services Update Form. Failure to notify the
RDA of any changes may result in:
(A) The RDA not being able to notify the Appraiser of
RDA appraisal assignments in a timely manner, if at all; and,
(B) Delayed payment of invoices submitted by the Appraiser.
2. CONTRACT PERIOD
(a) General. The contract period is from the date the Contract is approved by all required
RDA signatories.
(b) Anticipated award date. The RDA will make every effort to award contracts beginning
June 3, 2010.
(1) Effective date. The RDA, in writing, will notify the Appraiser of the
effective date of the Contract.
(2) Subsequent contracts awarded under this ITQ. The RDA will make every
effort to award contracts within three months of receipt of an ITQ application.
Therefore, it is in the best interest of all appraisers to submit the required information
as soon as possible so that they can be qualified to perform appraisals for the RDA.
(c) Right to reject, re-advertise or cancel. The RDA, reserves the right to reject any or all
responses, and to re-advertise or cancel the ITQ or any APA, purchase order (“PO”) or other
purchasing document issued under the resulting contract.
(d) Other means of obtaining services. The RDA reserves the right to acquire these services
separately from this ITQ when it is in the best interest of the RDA to do so.
3. RENEWAL OPTION
The initial contract duration may be extended by the RDA with options for renewals up to an
additional five (5) years. The RDA may choose to renew this contract incrementally or in one
step. Renewal(s) shall be accomplished via a letter sent to all contractors qualified under the
ITQ renewing the contract at the RDA’s option signed by the RDA’s Executive Director.
4. OPTION TO EXTEND
The RDA reserves the right to extend this ITQ, or any purchasing document issued under this
ITQ. The RDA may exercise this option to prevent a lapse in contract coverage and only for
the time necessary, up to three (3) months, to issue a new contract.
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5. EXISTING CONTRACTS
(a) General. Appraisers approved under the initial ITQ process issued in October 2008 and
awarded contracts for appraisal services with the RDA shall remain effective. Exceptions to
this rule are for appraisal service POs or litigation services currently in the process of being
completed under an existing contract.
(b) Litigation services. If services for claims in litigation are required from an Appraiser
under an existing contract, but these services were not included in the existing contract, the
RDA may obtain those services under this ITQ.
6. CHANGES TO THE CONTRACT
(a) Changes not related to scope. The General Counsel will issue a change notice to all
Appraisers with Contracts issued under this ITQ whenever there is a change to the Contracts
not affecting the scope of work. Changes contemplated under this paragraph include:
(1) Changes mandated by federal or state law or regulations.
(2) Procedural changes.
(3) All other changes not related to scope.
(b) Changes related to scope. Changes that affect the scope of work of Contracts issued
under this ITQ shall be effective only upon receipt of a fully executed amendment to the
Contract by the Contractor and all RDA signatories who approved the contract.
7. INTEGRATION CLAUSE
The Contract resulting from this ITQ, including its attachments and exhibits, constitute the
entire agreement between the parties. No agent, representative, employee or officer of either
the RDA nor the Fee Appraiser has authority to make, or has made, any statement, agreement
or representation, oral or written, in connection with this contract, which in any way can be
deemed to modify, add to, detract from, or otherwise change or alter its terms and conditions.
No negotiations between the parties, nor any custom or usage, shall be permitted to modify or
contradict any of the terms and conditions of this Contract. No modifications, alterations,
changes or waivers to this Contract or any of its terms shall be valid or binding unless
accomplished by a written amendment signed by both parties. All such amendments or
modifications shall be made using the appropriate RDA form.
8. APPRAISER PERFORMANCE
During the contract period, the RDA may evaluate Fee Appraisers on each work assignment.
Appraisers who perform poor work, do not provide services on time or engage in other
unacceptable conduct may be considered in determining whether to exclude a Fee Appraiser
from award of assignments under this ITQ and may lead to termination of Fee Appraiser’s
Contract.
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9. LIQUIDATED DAMAGES
Time is of the essence in the provision of services under these procedures. The Fee
Appraiser, therefore, agrees to pay to the RDA as liquidated damages a sum equal to one (1)
percent of the amount contracted for under the PO for each working day beyond the
designated submission date during which the services have not been satisfactorily completed
and submitted. For the purposes of this section, a satisfactory submission is defined as an
appraisal document that is acceptable to the RDA. The RDA will deduct the total amount of
liquidated damages, if any, from the amount contracted for under the PO. The RDA, upon
receipt of the Fee Appraiser’s written request for extension because of factors beyond the
control of the Fee Appraiser, may extend, in writing, the date of completion and submission.
10. DEFAULT
(a) The RDA, in addition to its other rights under the Contract, may declare the Fee Appraiser
in default by written notice thereof to the Appraiser, and terminate the whole or any part of
this Contract for any of the following reasons:
(1) Failure to begin work within the time specified in the Contract or as otherwise
specified;
(2) Failure to perform the work with sufficient labor, equipment, or material to insure
the completion of the specified work in accordance with the Contract terms;
(3) Unsatisfactory performance of the work;
(4) Discontinuance of work without approval;
(5) Failure to resume work, which has been discontinued, within a reasonable time
after notice to do so;
(6) Insolvency or bankruptcy;
(7) Assignment made for the benefit of creditors;
(8) Breach of any provision of this Contract.
(b) In the event that the RDA terminates this Contract in whole or in part as provided in
Subparagraph a. above, the RDA may procure, upon such terms and in such manner as it
determines, services similar or identical to those so terminated, and the Fee Appraiser shall
be liable to the RDA for any reasonable excess costs for such similar or identical services
included within the terminated part of the Contract.
(c) If the Contract is terminated as provided in Subparagraph a. above, the RDA, in addition
to any other rights provided in this paragraph, may require the Fee Appraiser to transfer title
and deliver immediately to the RDA in the manner and to the extent directed by the RDA
Appraisal Division, such partially completed work, including, where applicable, reports,
working papers and other documentation, as the Fee Appraiser has specifically produced or
specifically acquired for the performance of such part of the Contract as has been terminated.
Except as provided below, payment for completed work accepted by the RDA shall be at the
Contract price. Except as provided below, payment for partially completed work including,
where applicable, reports and working papers, delivered to and accepted by the RDA shall be
in an amount agreed upon by the Appraiser and Appraisal Division. The RDA may withhold
from amounts otherwise due the Appraiser for such completed or partially completed works,
such sum as the Staff Appraiser determines to be necessary to protect the RDA against loss.
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(d) The rights and remedies of the RDA provided in this paragraph shall not be exclusive and
are in addition to any other rights and remedies provided by law or under this Contract.
(e) The RDA’s failure to exercise any rights or remedies provided in this paragraph shall not
be construed to be a waiver by the RDA of its rights and remedies in regard to the event of
default or any succeeding event of default.
11. TERMINATION PROVISIONS
TERMINATION FOR CONVENIENCE: As a Contract of convenience, any Contract
resulting from this invitation to qualify can be terminated for no cause. The RDA may
terminate for convenience, either in whole or in part, the Contract or any PO or other
purchasing document issued pursuant to the Contract if the RDA determines
termination to be in its best interest. The Fee Appraiser shall be paid for work
satisfactorily completed prior to the effective date of the termination, but in no event
shall the Fee Appraiser be entitled to recover loss of profits.
In addition to terminating for convenience, the RDA has the right to terminate the
Contract, or any PO or other purchasing document, either in whole or in part, for the
following reasons:
(a) NON APPROPRIATION: The RDA’s obligations to make payments during any
RDA fiscal year succeeding the current fiscal year shall be subject to availability and
appropriation of funds. When the funds (state and/or federal) are not appropriated or
otherwise made available to support the continuation of performance in a subsequent
fiscal year period, the RDA shall have the right to terminate, either in whole or in
part, the Contract or any PO or other purchasing document issued pursuant to the
Contract. The Fee Appraiser shall be paid for work satisfactorily completed prior to
the effective date of the termination, but in no event shall the Fee Appraiser be
entitled to recover loss of profits. The reimbursement amount may be paid from any
appropriations available for that purpose.
(b) TERMINATION FOR CAUSE: The RDA reserves the right to terminate for
Appraiser Default under Paragraph 12, Default, either in whole or in part, the
Contract, or any PO or other purchasing document issued pursuant to the Contract,
upon written notice to the Fee Appraiser. The RDA shall also have the right, upon
written notice to the Fee Appraiser, to terminate, either in whole or in part, the
Contract, or any PO or other purchasing document issued pursuant to the Contract,
for other cause as specified in the Contract or by law. If it is later determined that the
RDA erred in terminating the Contract, or any PO or other purchasing document
issued pursuant to the Contract, for cause, then, at the RDA’s discretion, the Contract,
or PO or other purchasing document, shall be deemed to have been terminated for
convenience under the Subparagraph 14a. The Fee Appraiser shall be paid for work
satisfactorily completed prior to the effective date of the termination, but in no event
shall the Fee Appraiser be entitled to recover loss of profits.
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12. INSURANCE REQUIREMENTS:
The RDA, at its option and as deemed necessary, may require the Fee Appraiser to provide a
Certificate of Insurance as outlined in Exhibit “B” for specific appraisal services.
13. CERTIFIED MINORITY BUSINESS ENTERPRISE (MBE), WOMEN BUSINESS
ENTERPRISE (WBE), & DISADVANTAGED BUSINESS ENTERPRISE (DBE)
The RDA strongly encourages and promotes through its Anti-Discrimination Policy that
proposers cooperate by the acknowledgement and utilization of qualified available
MBE/WBE/DBE firms in all aspects of its procurement of goods and services. All proposers
are required to draft and submit as part of their bid a MBE/WBE/DBE participation
compliance plan, which states specifically and unequivocally how they intend to engage the
MBE/WBE/DBE firms in their contract package.
14. SPECIFICATIONS
(a) Conformance with the RDA’s Appraisal Procedures & Guideline Manual. Appraisal
reports submitted under this contract shall be in conformity with the RDA’s most current
Appraisal Procedure & Guideline Manual (Exhibit “F”), and any subsequent revisions or
supplements to the manual, which is incorporated into this contract by reference, with
generally accepted appraisal practices and procedures, and in compliance with applicable
federal, state and local laws and regulations.
(b) Appraisal report. The final appraisal reports will be the property of the RDA. The Fee
Appraisal and all work papers shall be confidential and shall not be revealed by the Fee
Appraiser without the written expressed consent of the RDA; nor shall the Fee Appraiser
testify relative thereto in any court or other tribunal without such consent unless so ordered
by the court or other tribunal. The RDA shall pay appraisers in accordance with the RDA’s
approved fee schedule, as outlined within the Contract.
(c) Litigation services. If a claim for which the assignment is performed becomes subject to
litigation, the Fee Appraiser, if so directed by the RDA or any of its authorized
representatives, shall provide necessary services for litigation, including, but not limited to,
updates, revisions, preparation, testimony, and other litigation support. The RDA, for
services other than updates and revisions, shall pay appraisers and witnesses in accordance
with the RDA’s approved fee schedule at the time of performance of the duties required.
(d) Appraising other properties on same project. The Fee Appraiser may appraise for and
testify for parties other than the RDA in other claims on the same project as that involving
the assignment; provided, however, that written notice, including the name of the client, shall
be given to the appropriate RDA Appraisal Division no later than ten (10) days prior to such
undertaking.
(e) Warranty. The Fee Appraiser warrants for each assignment that he or she has not
employed or retained any company, firm or person, other than a bona fide employee working
solely for the Fee Appraiser, to solicit or secure the assignment; and that he or she has not
paid or agreed to pay any company, firm or person, other than a bona fide employee working
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solely for the Appraiser, any fee, commission, percentage, brokerage fee, gift or any other
consideration contingent upon or resulting from the award or making this contract. For
breach or violation of this warranty, the RDA shall have the right to annul this contract
without liability.
(f) Indemnification. The Fee Appraiser shall indemnify and save the RDA harmless, and (if
requested) defend the RDA from and against any and all losses, damages, expenses, claims,
demands, suits and actions which may arise as a result of the activities of the Fee Appraiser,
or the Fee Appraiser’s officers, agents or employees, under this Contract (and any POs or
other purchasing documents issued pursuant to this Contract), whether the same be due to
neglect in safeguarding the work, or by or on account of any act, omission, neglect or
misconduct of the Fee Appraiser, or the Fee Appraiser’s officers, agents or employees during
the performance of said work or thereafter, or to any other cause whatever, including, but not
limited to, all claims for personal injuries, death and property damages.
(g) Subcontracting. No part of assignments performed under this agreement shall be
subcontracted without the prior written consent of the RDA. This applies to, but is not limited
to, subcontracting to associates working out of the successful Fee Appraiser’s office as an
independent contractor. If the RDA gives prior written consent, the subcontractor must also
be qualified under this ITQ. Written consent for specialty reports necessary to complete an
assignment will be given in the APA.
15. CRITERIA FOR QUALIFICATION—Review and Evaluation of Qualification
Applications
(a) General. To be placed on the list of prequalified appraisers associated with this multipleaward contract, participating appraisers must meet all requirements of this ITQ. Appraisers
must be qualified separately for each category to which different qualifications apply, i.e.
Category 1, 2, and 3. Appraisers who submit applications which include all information
required, including all responses and documentation requested, and meet the mandatory
requirements for the category of assignment requested will be qualified. Contracts will be
awarded either to the company or partnership in which the qualified Fee Appraiser is
employed, the Fee Appraiser if a sole-proprietor, the partnership of which the qualified
Appraiser is a partner of, or the member or manager of a limited liability company.
(b) Condemnation appraisal assignments. For purposes of this ITQ, condemnation
appraisal assignments are those appraisals performed for an entity that has the right to
exercise the power of eminent domain.
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MANDATORY REQUIREMENTS BY CATEGORY OF APPRAISALS
CATEGORY 1:
Current Pennsylvania appraisal certification (residential or general).
Photocopy of current Pennsylvania certification.
An active e-mail address and capability to conduct e-business.
Provide three (3) client reference surveys relating to condemnation appraisal
assignments completed in the last five (5) years (unless written justification is provided
as outlined on the following page).
Achieve satisfactory reviews from each of the three (3) client references regarding past
performance.
CATEGORY 2 & 3:
Current Pennsylvania appraisal certification (general).
Photocopy of current Pennsylvania certification.
An active e-mail address and capability to conduct e-business.
Minimum of five (5) years real estate appraisal experience as a certified appraiser.
*Have completed five (5) condemnation appraisal assignments in the last five (5) years
that meet the requirements of Category 2.
*Provide three (3) client reference surveys relating to condemnation appraisal
assignments completed in the last five (5) years (unless written justification is provided
as outlined on the following page).
*Achieve an acceptable score, as determined by the RDA for each of the three (3)
client references regarding past performance.
16. CLIENT REFERENCE SURVEYS
(a) General. As part of the response to this ITQ, appraisers requesting qualification for
assignments are required to submit three (3) client reference surveys. Appraisers must
designate the name of the clients who will supply reference surveys on the application
included in Exhibit “C,” and must forward to each such client a blank copy of the four- (4)page client reference survey, with instructions, included in Exhibit “C.” The contents of
client reference surveys are considered public information and will not be kept confidential.
(b) Requirements. The three (3) client reference surveys must comply with the following:
(1) The surveys must be from three (3) separate condemnation appraisal assignments
completed within the last five (5) years that meet the requirements of Category
Assignments applying for under the ITQ.
(2) Three (3) separate clients must complete the surveys unless written justification is
supplied explaining why this cannot be done, e.g. the Fee Appraiser did not complete
assignments for more than one or two clients.
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(3) If the Fee Appraiser performed a condemnation appraisal assignment for the RDA
Appraisal Division within the last five (5) years that meets the requirements, the
RDA Appraisal Division must be one of the clients designated to supply a reference
survey.
(4) If the Fee Appraiser performed a condemnation appraisal involving a partial
taking within the last five (5) years that meets the requirements of Category 2, one of
the assignments for which a client reference survey is supplied must have involved a
partial taking.
(5) If the Fee Appraiser performed a condemnation appraisal involving an M&E
report or more than one approach to value within the past five (5) years meeting the
requirements of Category 2 & 3, one of the assignments for which a client reference
survey is supplied must have involved more than one approach to value.
(c) Clients must complete surveys independently. Clients must complete client reference
surveys independently from the appraiser and return the completed surveys DIRECTLY to
the RDA Appraisal Division as listed on the survey form.
(d) Award contingent on receipt of surveys. Client reference surveys MUST BE
RECEIVED before the RDA’s awarding of a Contract. Appraisers will not be qualified until
the RDA receives the mandated client reference surveys. Appraisers should encourage their
clients to submit their reference surveys as quickly as possible. If the RDA does not receive
the Client Reference Surveys December 4, 2008, the Appraiser will be evaluated for
qualification under the open enrollment process upon receipt of all required information.
17. PROCEDURES FOR ACQUIRING SERVICES FROM QUALIFIED
APPRAISERS
Refer to Section 12D of the RDA Appraisal Procedure & Guideline Manual, Exhibit “F”.
18. REJECTION OF QUOTES/SUBMISSIONS
The RDA reserves the right to reject any and all quotes and submissions received in response
to a solicitation.
19. ALTERATION OF ORDERING PROCEDURES
The RDA reserves the right to alter this procedure if it becomes too cumbersome and to
replace it with another system which allows all approved appraisers an opportunity to submit
quotes on assignments. If these procedures change, all qualified appraisers will be notified.
20. REVISIONS, UPDATES, AND SERVICES FOR LITIGATION
(a) Award without requesting quotes. The RDA may award assignments for revisions,
updates and services for litigation to the Fee Appraiser who previously prepared a fair market
value report, without requesting quotes from multiple appraisers, due to the Fee Appraiser’s
unique knowledge of the property based on preparing that report.
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(b) Litigation appraisals and services for litigation. The RDA may award appraisals and
services required for litigation purposes to a single appraiser, without a request for quotes
from multiple appraisers, upon the recommendation of the General Counsel.
21. PURCHASE ORDER OR OTHER PURCHASING DOCUMENT
(a) Issuance of PO. When the RDA has selected an appraiser to perform a specific
assignment, the RDA will issue a Purchase Order (PO), or other purchasing document
compatible with the RDA’s most current procurement system, against the Contract to obtain
the services.
(b) Authority to provide services. This PO or other purchasing document shall constitute
authority to furnish the services set forth in the appropriate quote, and shall be used in
combination with the appropriate quote when invoicing the RDA for services provided.
(c) Terms of ITQ and APA incorporated. Each PO or other purchasing document shall
incorporate the terms and conditions set forth in the ITQ, the APA or other solicitation
document.
(d) Time extensions. Extensions to the time within which an assignment must be completed
and submitted may be granted by written permission of the RDA. A change order to the PO
or other purchasing document must be entered in the system.
(e) Work cannot begin until PO fully executed. An Appraiser may not begin work without
a fully executed PO or other purchasing document in place, except as set forth under the
RDA Appraisal Procedure and Guideline Manual (Exhibit “F”). The RDA will not pay an
Appraiser for any services performed without a fully executed PO or other purchasing
document in place.
22. INVOICING
In order to facilitate prompt processing and payment of invoices the Fee Appraiser will do
the following:
Fee Appraiser will furnish a RDA Confirmation of Service Form (Exhibit “E”)
and submit to the Appraisal Division Office the Purchase Order or other
purchase document. The Fee Appraiser will furnish an original invoice at the
address listed on the Purchase Order. The total cost on the invoice should match
the total cost on the Confirmation of Services Form.
23. INVITATION TO QUALIFY SUBMISSION
(a) Rolling deadline. Submission deadline is rolling, but responses received by 5:00 PM,
June 2, 2010 will be processed and reviewed during the month of June. It is in the best
interest of all appraisers to submit the required information by the June 2, 2010 submission
date in order to qualify for the contract period.
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(b) All other applications. Additional qualification applications will be accepted after June
2, 2010 and the RDA will make every effort to process additional qualification applications
within 120 days after receipt.
(c) Response Delivery Location. Responses MUST be delivered or mailed to the
Redevelopment Authority, 16th Floor Information Desk. To be considered for work during
this enrollment period, all required documentation must be received at the address
below no later than 5:00 PM, June 3, 2010. Responses being sent through the mail are to be
addressed as follows:
Attn:
Val Pasquarella (ITQ)
(d) Enrollment period. The invitation to qualify for appraisal services will remain open
through October 30, 2013 (or through October 30, 2018 if the RDA chooses to renew the
contract for an additional five (5) years). The RDA will reject all applications received
after that date, regardless of the reason for late arrival. If mailing your response, please allow
sufficient mailing time.
24. INSTRUCTIONS FOR COMPLETION OF APPLICATION SUBMISSION:
(a) General. Your submitted response must be completed on the documents provided and
must include the completed ITQ Signature Page and forms contained in Exhibit “C”
(Qualification Application, Category Appraiser applying for, and Client Reference Survey).
ALL Exhibits, except for Exhibit “D”, Exhibit “E”, and Exhibit “F” must also be returned.
Use Exhibit “D” only to make changes once a Fee Appraiser is awarded a contract. Make a
copy of all documents for your records.
(b) Print or type information. Except for signatures, please print legibly or type all required
information.
(c) Errors. The Fee Appraiser’s authorized signatory must initial and date any error made
while completing information.
(d) Altering of forms or exhibits prohibited. Do not alter the form or its exhibits. Adding
anything other than information specifically required by the RDA may be interpreted as a Fee
Appraiser "conditioning" the ITQ which may cause the ITQ to be rejected by the RDA.
25. HOW TO COMPLETE THE ITQ SIGNATURE SHEET:
(a) Signature. The Fee Appraiser's signature shall be in ink. If any information is
handwritten or changed in any manner, the Fee Appraiser’s authorized signatory must date
and initial where indicated on the ITQ Signature Page.
16
(b) Full name and address. Complete the Company Name and Address. If sole
proprietorship doing business as (d/b/a) or trading as (t/a) another name, indicate such, for
example:
John Q. Brown d/b/a or t/a
Brown's Appraisal Service
(c) Additional requirements. Indicate whether or not you are a certified by the City as a
Minority Business Enterprise (MBE)/Women Business Enterprise (WBE)/Disadvantaged
Enterprise.
Complete the Fee Appraiser’s Contact Person, Phone Number, FAX Number, Federal
Identification Number or Social Security Number, Required E-Mail Address, Vendor
Number, and the Appraiser's signature blocks.
(1) An appraiser cannot provide both a Federal Identification number and a Social
Security Number.
Use of a social security number or a federal identification number depends on
which number is used to file income taxes.
(2) If applicable, provide information regarding MBE/WBE/DBE status.
(d) Appropriate signatures required. The ITQ may be rejected if not signed by an
individual(s) authorized to contractually bind the organization.
(1) For Corporations: Chairman, President, Vice President, Senior Vice President,
Executive Vice President, Assistant Vice President, CEO, or COO.
(2) For Partnerships: General Partner.
(i) If general partner is a corporation, then follow directions for corporations.
(ii) If general partner is a limited liability company, then follow the directions
for Limited Liability Company.
(3) For Sole Proprietorships: Owner.
(4) Limited Liability Company: Member or a Manager.
(e) Delegation of signature authority. If signature authority has been delegated by any of
the above principals to another person, a copy of the delegation signed by the required
principal delegating that signature authority to that specific individual must be provided prior
to execution of the contract. For a corporation, the delegation document must be either a
resolution of the board of directors or delegation provided by corporate by-laws.
26. INQUIRIES:
Appraisers are to direct all questions (technical and/or administrative) to the RDA Appraisal
Division listed on the Cover Page of this ITQ. All questions received via email will be
answered via emailed to all Appraisers. Appraisers are encouraged to review this entire
package and forward questions prior to the time and date stated above to be qualified
during the initial enrollment period.
17
EXHIBIT “B”
Lobbying Certification Form
Disclosure of Lobbying Activities Form & Instructions
Insurance Requirements
18
CERTIFICATION OF RESTRICTIONS ON LOBBYING
I, _________________________________, hereby certify on behalf of
__________________________________ that:
(1)
No Federal appropriated funds have been paid or will be paid, by or on
behalf of the undersigned, to any person for influencing or attempting to influence
an officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection
with the awarding of any Federal contract, the making of any Federal grant, the
making of any Federal loan, the entering into of any cooperative agreement, and
the extension, continuation, renewal, amendment, or modification of any Federal
contract, loan, or cooperative agreement.
(2)
If any funds other than Federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative agreement, the undersigned shall
complete and submit Standard Form LLL, “Disclosure Form to Report Lobbying,”
in accordance with its instructions.
(3)
The undersigned shall required that the language of this certification be
included in the award documents for all sub-awards at all tiers (including,
subcontracts, sub grants, and contras under grants, loans, and cooperative
agreements) and that all sub-recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance is placed when
this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352, title 31,
U.S. Code. Any person who fails to file the required certification shall be subject to a civil
penalty of not less than $10,000 and not more than $100,000 for each such failure.
Executed this _________ day of ______________, 2008.
____________________________
Signature of authorized official
____________________________
Title of authorized official
Please check one:
q Standard Form - LLL, “Disclosure of Lobbying Activities,” is not attached to this
Certification because it is not applicable.
q Standard Form - LLL, “Disclosure of Lobbying Activities,” is completed and attached.
19
DISCLOSURE OF LOBBYING ACTIVITIES
Complete this form to disclose lobbying activities.
1. Type of Federal Action:
2. Status of Federal Action:
3. Report Type:
____ a. contract
____ b. grant
____ c. cooperative agreement
____ d. loan
____ e. loan guarantee
____ f. loan insurance
_____ a. bid/offer/application
_____ b. initial award
_____ c. post-award
_____ a. initial filing
_____ b. material change
For material change only:
Year _______ quarter _______
Date of last report___________
1. Name and Address of Reporting Entity:
2. If Reporting Entity in No. 4 is Subawardee, Enter
Name and Address of Prime:
____ Prime ____ Subawardee
Tier______, if Known:
Congressional District, if known:
Congressional District, if known:
6. Federal Department/Agency:
7. Federal Program Name/Description: F
CFDA Number, if applicable: __________________
8. Federal Action Number, if known:
9. Award Amount, if known: A
$
10. a. Name and Address of Lobbying Registrant
(if individual, last name, first name, MI):
b. Individuals Performing Services (including address
if different from No. 10a)
(last name, first name, MI):
Signature: __________________________________
Print Name:_________________________________
Title:__________________________________
Telephone No.: ________________ Date: ____
11. Information requested through this form is
authorized by title 31 U.S.C. section 1352. This
disclosure of lobbying activities is a material
representation of fact upon which reliance was placed
by the tier above when this transaction was made or
entered into. This disclosure is required pursuant to
31 U.S.C. 1352. This information will be reported to
the Congress semi-annually and will be available for
public inspection. Any person who fails to file the
required disclosure shall be subject to a civil penalty
of not less than $10,000 and not more than $100,000
for each such failure.
Authorized for Local Reproduction Standard Form
20
DISCLOSURE OF LOBBYING ACTIVITIES
INSTRUCTIONS FOR COMPLETION OF
DISCLOSURE OF LOBBYING ACTIVITIES FORM
This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal
recipient, at the initiation or receipt of a covered Federal action, or a material change to a previous filing,
pursuant to title 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to
make payment to any lobbying entity for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with a covered Federal action. Complete all items that apply for both the initial
filing and material change report. Refer to the implementing guidance published by the Office of
Management and Budget for additional information.
1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to
influence the outcome of a covered Federal action.
2. Identify the status of the covered Federal action.
3. Identify the appropriate classification of this report. If this is a follow-up report caused by a material
change to the information previously reported, enter the year and quarter in which the change occurred.
Enter the date of the last previously submitted report by this reporting entity for this covered Federal action.
4. Enter the full name, address, city, State and zip code of the reporting entity. Include Congressional
District, if known. Check the appropriate classification of the reporting entity that designates if it is, or
expects to be, a prime or subaward recipient. Identify the tier of the subawardee, e.g., the first subawardee
of the prime is the 1st tier. Subawards include but are not limited to subcontracts, subgrants and contract
awards under grants.
5. If the organization filing the report in item 4 checks “Subawardee,” then enter the full name, address,
city, State and zip code of the prime Federal recipient. Include Congressional District, if known.
6. Enter the name of the federal agency making the award or loan commitment. Include at least one
organizational level below agency name, if known. For example, Department of Transportation, United
States Coast Guard.
7. Enter the Federal program name or description for the covered Federal action (item 1). If known, enter
the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, loans,
and loan commitments.
8. Enter the most appropriate Federal identifying number available for the Federal action identified in item
1 (e.g., Request for Proposal (RFP) number; Invitations for Bid (IFB) number; grant announcement
number; the contract, grant, or loan award number; the application/proposal control number assigned by the
Federal agency). Included prefixes, e.g., “RFP-DE-90-001.”
9. For a covered Federal action where there has been an award or loan commitment by the Federal agency,
enter the Federal amount of the award/loan commitment for the prime entity identified in item 4 or 5.
10. (a) Enter the full name, address, city, State and zip code of the lobbying registrant under the Lobbying
Disclosure Act of 1995 engaged by the reporting entity identified in item 4 to influence the covered Federal
action. (b) Enter the full names of the individual(s) performing services, and include full address if different
from 10(a). Enter Last Name, First Name, and Middle Initial (MI).
11. The certifying official shall sign and date the form, print his/her name, title, and telephone number.
According to the Paperwork Reduction Act, as amended, no persons are required to respond to a collection of
information unless it displays a valid OMB control Number. The valid OMB control number for this information
collection is OMB No. 0348-0046. Public reporting burden for this collection of information is estimated to average 10
minutes per response, including time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding
the burden estimate or any other aspect of this collection of information, including suggestions for reducing this
burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0046), Washington, DC 20503.
21
INSURANCE REQUIREMENTS
The RDA, at its option and as deemed necessary, may require the Fee Appraiser to
provide a Certificate of Insurance as outlined below for specific appraisal services.
When a Certificate of Insurance is requested it should be sent to the RDA Appraisal
Division that issued the solicitation. A Certificate of Insurance is NOT required with
this submission, but will be required when signing the RDA Agreement for
Appraisal Services.
1. Workmen’s compensation insurance sufficient to cover all of the employees of the contractor
working to perform this contract, as required by the laws of the Commonwealth.
2. Comprehensive general liability insurance, property damage insurance, and, where appropriate,
automobile liability insurance. Appraiser shall provide to the Authority a certificate of insurance
in a sum not less than One Million Dollars ($1,000,000.00), with an insurance company
satisfactory to the Authority, as evidence of Appraiser’s professional liability insurance coverage
for work performed under the RDA Agreement for Appraisal Services.
These coverages shall be occurrence-based. The policy(ies) shall name the Redevelopment
Authority as an additional insured and shall contain a provision that the coverages afforded
thereunder shall not be cancelled or changed unless at least thirty (30) days prior written notice
has been given to the Redevelopment Authority.
Prior to the commencement of work, the contractor shall provide the RDA with a current
certificate(s) of insurance showing the required coverages and provisions.
22
EXHIBIT “C”
Qualification Information
Qualification Application
Client Reference Survey Form
23
QUALIFICATION APPLICATION
Company Name: ___________________________
FID or SS No. (As shown on ITQ Signature Page): ___________________________________
Vendor No.: ____________
Appraiser’s Name: _________________________
Appraiser must complete separate applications (Exhibit C) for each appraiser for whom
qualification status is being pursued. Make additional copies as needed for each appraiser seeking
to be qualified under this contract.
----------------FOR RDA USE ONLY-----------Category 1
Category 2
Category 3
Appraiser’s Name
Please check all categories for which qualification status is being pursued by this
appraiser:
______ Category 1, (Complete Category 1 Sheet)
______ Category 2 & 3, (Complete Category 2 Sheet)
List names of companies to whom Client Reference Surveys were sent from this appraiser:
Client Reference:
Client Reference:
Client Reference:
I certify that the above statements and those on any attachment are true and complete and that I
will not accept appraisal assignments from the Department concerning properties in which I have
an undisclosed past, present or contemplated interest.
_______________________________
Appraiser’s Signature
_____________________
Date
24
CATEGORY 1
COMPLETE QUESTIONS IF APPLYING FOR CATEGORY 1
Company Name: ___________________________
Vendor No.: ____________
Appraiser’s Name: _________________________
No.
Question
Circle One
1.
Do you have a current Pennsylvania Appraiser Certificate?
General Residential
Pennsylvania Certification No.__________________________
Expiration Date____________________
YES
NO
2.
Did you attach a photocopy of your current Pennsylvania
Appraiser Certificate?
YES
NO
3.
Do you have an active e-mail address and the capability to
conduct e-business?
YES
NO
Applicant must respond, “YES” to all questions to be qualified for this Category.
YES
***FOR RDA USE ONLY***
Client Reference Surveys
Were three (3) client reference surveys provided?
Were all three (3) client reference surveys relating to condemnation appraisals?
Were all condemnation appraisal assignments referenced in the surveys completed during the past five (5) years?
Were all assignments referenced in the surveys different?
Were surveys provided by three (3) separate clients or justification provided for less than 3?
Were scores of all three (3) client reference surveys acceptable individually?
SCORES: __________ __________ __________
- Qualified
- Not Qualified
- Pending
NO
Reviewed by: ______________________________
Date: _____________
25
CATEGORY 2 OR 3
COMPLETE QUESTIONS IF APPLYING FOR CATEGORY 2 OR 3
Company Name: ___________________________
Vendor No.: ____________
Appraiser’s Name: _________________________
No.
1.
2.
3.
4.
5.
6.
7.
8.
Question
Circle One
Do you have a current Pennsylvania Appraiser Certificate?
YES
NO
General Certification No.______________________________
Expiration Date _______________________________
Did you attach a photocopy of your current Pennsylvania
YES
NO
Appraiser Certificate?
Do you have an active e-mail address and the capability to
YES
NO
conduct e-business?
Do you have a minimum of five (5) years real estate appraisal
YES
NO
experience as a certified appraiser?
Have you completed five (5) condemnation appraisal
NO
assignments in the last five (5) years that meets the requirements YES
of Category 2?
Have you performed a condemnation appraisal assignment for
YES
NO
the Redevelopment Authority within the last five (5) years?
Have you performed a condemnation appraisal assignment
YES
NO
involving a partial taking within the last five (5) years?
Have you performed a condemnation appraisal assignment
YES
NO
involving more than one approach to value within the past five
(5) years?
Applicant must respond, “YES” to questions 1—5 to be qualified for Category 2& 3 assignments,
unless you have been exempted by the Department.
***FOR RDA USE ONLY***
YES
Client Reference Surveys
Were three (3) client reference surveys provided?
Were all three (3) client reference surveys relating to condemnation appraisals?
Were all condemnation appraisal assignments referenced in the surveys completed during the past five (5) years?
Were all assignments referenced in the surveys different?
Were surveys provided by three (3) separate clients or justification provided for less than 3?
Were scores of all three (3) client reference surveys acceptable individually? SCORES: __________ __________
__________
N/A
YES
NO
NO
If #6 above was yes, is one of the surveys from RDA?
If #7 above was yes, is one of the assignments referenced in the surveys a partial taking?
If #8 above was yes, did one of the assignments referenced in the surveys involve more than one approach to value?
RDA Reviewer: Any “No” checked above will result in disqualification of applicant.
- Qualified
- Not Qualified - Pending
Reviewed by: ______________________________
Date: _____________
26
CLIENT REFERENCE SURVEY
Appraisal ITQ
INSTRUCTIONS:
The Redevelopment Authority (RDA) is developing a APPRAISAL SERVICES contract. Proposals
have been received from appraisers, and you/your company were listed as a client reference. The RDA
will use your evaluation to help qualify the appraiser(s) who used you/your company as a client
reference. The appraisers have been asked to provide each of their client reference
individuals/companies with a four (4)-page blank copy of this survey form, with instructions, for you to
complete and forward to the RDA Appraisal Division.
It is requested that your organization’s manager or the individuals responsible for the referenced
appraisal services provided a completed form, without consultation with the appraiser who provided the
services(s). Then the same person who fills out the form must sign and date the completed form. For all
appraisers that qualify for APPRAISAL SERVICES, the contents of the client reference surveys will be
considered public information and cannot be kept confidential.
Appraisal services being evaluated must be condemnation appraisal assignments and must have been
completed within the last 5 years. Condemnation appraisal assignments as used herein refer to those
appraisals performed for an entity that has the right to exercise the power of eminent domain.
The survey form has appraisal service header information and 9 questions. Appraisal service header
items include project name/title, type of appraisal, brief description of appraisal assignment, and the
start/end dates. Following the header information, each of the nine questions has a sliding scale for you
to rate the appraiser and an area for specific comments. The number on the scale that corresponds to the
performance you experienced is to be circled, and comments appropriate to each question may be added.
Comments are MANDATORY for questions 1-8 with a rating below a “7”. The following definitions
are to be used for the rating values on the sliding scale:
SCORE
10
9
8
7
6
5/4/3
2/1/0
DESCRIPTION
Consistently exceeds customer expectations (more than 90% of the time)
Frequently exceeds customer expectations (between 50% and 90% of the time)
Occasionally exceeds customer expectations (between 10% and 50% of the time)
Meets customer expectations
Occasionally fails to meet customer expectations (between 10% and 25% of the time)
Frequently fails to meet customer expectations (between 25% and 75% or the time)
Consistently fails to meet customer expectations (more than 75% of the time)
For questions 9, add 10 points to the score chart above to determine the appropriate score. Comments
are MANADATORY for a rating below a “14”. To qualify, appraisers must receive a score acceptable
to the RDA from each client reference form.
Individuals/companies must complete client reference surveys independently from the appraisers and
then return the completed surveys DIRECTLY to the contracting Officer via FAX at 215-854-6603 OR
to the address below no later than 3:30 PM, December 4 ,2008 to qualify under initial enrollment period:
Attn:
Val Pasquarella
Failure to return the completed client reference survey by the date and time noted above will result in the
evaluation of the appraiser’s application being delayed.
27
Name of Appraiser for whom this Client Reference Survey was completed: _______________________
RDA CLIENT REFERENCE SURVEY – Appraisal Services
PROJECT HEADER INFORMATION:
RDA Use Only
Score:
Project Name/Title:
Brief Description of the Condemnation Appraisal Assignment:
Project Start Date (Month/Year) __________ Projected End Date Month/Year):_____________
(End Date must have been completed within the last 5 years)
Instructions:
Rate performance on a scale of 0-10; 0-3 signifying a below average job performance, 4-6 signifying a
average job performance, 7-10 signifying a above average job performance. If any question does not
apply, indicate “Not Applicable” in the Comments portion of those questions. Briefly explain why.
1.
How would you rate the quality of the appraiser’s work performed? This factor is concerned
with the completeness, accuracy, neatness and technical proficiency of the work performed.
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Note: Comments are MANDATORY for a rating below “7”. See Page 1 of the Client Reference Survey.
Comments:
2.
How would you rate the appraiser’s dependability on the assignment? This factor is concerned with
the appraiser’s ability to complete the assignment within the established due dates.
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Note: Comments are MANDATORY for a rating below “7”. See Page 1 of the Client Reference Survey
Comments:
3.
How would you rate the appraiser’s compliance with following assignment directions and
objectives? This factor is concerned with the appraiser’s performing work independently and
satisfactorily after the initial assignment instructions were provided.
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
28
4.
How would you rate the appraiser’s performance concerning communication? This factor
measures the appraiser’s effectiveness in exchanging relevant information in a clear, concise
and articulate manner on a timely basis.
____________________________________________________________________
1
2
3
4
5
6
7
8
9
10
Comments:
5.
How would you rate the appraiser’s response to questions and appraisal review memos or critiques?
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
6.
How would you rate the appraiser’s compliance with established policies, Uniform Standards of
Professional Appraisal Practices (USPAP) and other rules and regulations relating to the
assignment?
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
7.
How would you rate the appraiser’s performance in serving as an expert witness? This factor
measures the appraiser’s pre-trial preparation, exhibits and supportive information,
communication/interaction with attorneys, and/or actual legal testimony.
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
29
8.
How would you rate the appraiser’s performance on providing adequate resources needed for the
appraisal assignment?
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
9.
How would you rate the appraiser’s overall performance on your specific project?
__________________________________________________________________________
0
1
2
3
4
5
6
7
8
9
10
Comments:
Name of Preparer:_______________________________________________________________
Company________________________________Signature:______________________________
Date____________________________________Title___________________________________
Telephone No:___________________ Fax No.__________________
The client reference companies must return the completed survey forms (only pages 2, 3, and 4)
DIRECTLY to the contracting Officer via FAX at 215-854-6753 OR to the address below no later than
3:30 PM, December 4, 2008 to qualify under the initial enrollment period:
Attn:
Val Pasquarella
RDA Use Only
Score
Points Received:
___________
(divided by)
=__________ x 100 =__________
Total Possible Points: ___________
30
EXHIBIT “D”
Contractor Update Form
31
APPRAISAL SERVICE CONTRACTOR UPDATE FORM
(Fee Appraiser Does NOT have to complete this form and submit it with Application. Use
Exhibit E Only to Make Changes Once an Appraiser Is Awarded Contract.)
Appraiser (Company) Name and Address:
(as shown on the original contract)
FID or S.S. No./Vendor No.
Name of Appraiser
FID/S.S._________________________
Vendor No. ______________________
To Add a New Appraiser: Submit Client Reference Surveys.
To Delete an Appraiser: Indicate name as shown on approved contract
To Change an E-Mail Address: Indicate new e-mail address:
Any Other Changes: Contact Val Pasquarella (or his designee or successor) at the RDA Appraisal Division
Attn:
Val Pasquarella
32
EXHIBIT “E”
Confirmation of Service Form
Example Only
33
RDA Confirmation
irmation of Appraisal Service Form
Date Service Rendered
SAP Vendor Number
Contractor Name
Phone
Address
Purchase Order #
Reference line items on purchase order that match the services performed
Appraisal Item
Description/Property Number
_______________________________
Contractor Signature
Total Price for
Appraisal
__________________________
Date
34
EXHIBIT “F”
Standard RDA Agreement for Appraisal Services
35
AGREEMENT FOR APPRAISAL SERVICES
THIS AGREEMENT is entered into this
day of
2005,
by and between the Redevelopment Authority of the City Of Philadelphia (the
“Authority”) and ________________________________________ (the “Appraiser”).
BACKGROUND
1.
The Authority is a public body, corporate and politic, organized pursuant
to the Pennsylvania Urban Redevelopment Law of 1945, as amended.
2.
In the course of performing certain of its urban renewal activities,
specifically the acquisition or disposition of real property and the underwriting of
mortgage loans, the Authority requires appraisal services that will provide the Authority
with professional opinions and analysis of market value of real property.
3.
The Appraiser represents that he/she is professionally qualified and
licensed to perform such appraisal services and is willing to accept appraisal
assignments from the Authority.
NOW, THEREFORE, the parties hereto, in consideration of these premises and
mutual undertakings, each intending to be legally bound hereby, do mutually agree as
follows
36
A.
General Provisions
1.
Compliance With USPAP
The Appraiser and all appraisal reports submitted to the Authority shall
adhere to and comply with the standards and procedures promulgated by the
Appraisal Standards Board in the Uniform Standards of Professional Appraisal
Practices. If the Appraiser or the appraisal report deviates from these standards,
the Appraiser must advise the Authority of the deviation and the reasons for the
deviation.
2.
Complete Self-Contained format
Unless otherwise specified in writing by the Authority, the appraisal report shall
be a Self-Contained Appraisal Report involving a complete appraisal.
3.
Intended Use and Intended Users of the Appraisal Report
The Authority’s purposes for securing an appraisal may involve one or several of
the following intended uses: acquisition of real property by purchase or condemnation;
disposition of real property by sale or lease; preparation of budgets for submission to
federal, state, or local funding sources; underwriting loan applications; fulfilling
contractual commitments under cooperation agreements with other governmental
agencies or with private parties; litigation and related uses; and other activities
necessary to perform the Authority’s urban renewal functions.
The Appraiser
acknowledges that the appraisal report is the property of the Authority and that the
Authority may use the appraisal report as the Authority deems necessary to fulfill its
responsibilities, including providing copies of the appraisal report to others. Appraiser
shall not restrict the Authority’s use of the appraisal report for any lawful purpose and
Appraiser may not require his/her consent to such distribution of the appraisal report.
37
This provision shall super-cede any statement to the contrary presented in an appraisal
report.
B.
Scope of Services
1.
From time to time, the Authority may issue a Notice to Proceed letter
instructing the Appraiser to perform appraisal services within certain project areas and/or
for certain parcels of property. Upon receipt of a Notice to Proceed, Appraiser shall:
a.
Perform the specific services requested in the Notice to Proceed
letter in the sequence and order directed by the Authority and shall also perform the
services set forth in the Addendum to this Agreement for the type of appraisal requested.
appropriate,
b.
Make a personal inspection of the project area or parcels, as
which
are
being
appraised
including
all
related
improvements,
appurtenances and other elements of value.
c.
Advise the Authority in a written appraisal report of the fair market
value of each parcel in accordance with the Pennsylvania Eminent Domain Code and
the Uniform Standards of Professional Appraisal Practices.
d.
Correct defective, inaccurate or incomplete work promptly upon
request by the Authority, at no additional cost to the Authority and whenever discovered,
notwithstanding acceptance or payment by the Authority.
e.
Upon request, conduct a re-inspection of the property and
provide an opinion of fair market value in an appraisal report in form requested
by the Authority.
2.
From time to time, the Authority may request Appraiser to perform
other appraisal services such as preliminary acquisition appraisals, reuse
appraisals, or bond appraisals. The Authority will provide Appraiser with the
38
guidelines for required content of such appraisals when requesting these
services.
C.
COMPENSATION
The Authority will pay Appraiser for work performed pursuant to this
Agreement as follows:
1.
For completion of the inspection and appraisal services specified in
any Addenda to this Agreement, the fee will be set forth in the Notice to Proceed
letter.
2.
For pre-trial preparation and Board of View or trial testimony, the fee will
be as stated in the Authority’s Approved Fee Schedule. Upon request, the Authority will
provide Appraiser with written notice of this fee schedule.
3.
In the event that Appraiser’s services are not completed within the
time limitations stated in the Notice to Proceed letter, the Authority may withhold
from payment an amount equivalent to one (1%) percent of the agreed fee for
each day’s delay until completion thereof. The Authority may extend the time for
completion for a period of not more than thirty (30) days in the event that such
extension of time shall be in its interest.
D.
TERMINATION OR MODIFICATION OF AGREEMENT
1.
Termination for Cause. If the Appraiser fails to perform any obligation,
covenant or undertaking under this Agreement or a Notice to Proceed, the Authority, in
its sole discretion and upon written notice consistent with section 7 below, may
immediately terminate this Agreement.
39
2.
Termination without Cause. The Authority, in its sole discretion and
upon ten (10) days written notice consistent with section 7 below, may terminate this
Agreement without cause.
3.
Rights of Appraiser upon Termination. The Authority acknowledges
and agrees that the Appraiser shall be entitled to compensation for all work delivered to
and accepted by the Authority in conformance with this Agreement prior to issuing a
notice of termination.
4.
Rights of Authority upon Termination. The Appraiser acknowledges
and agrees that upon termination of this Agreement by the Authority, the Authority shall
have the following rights:
a. The Authority shall be entitled to any damages the Authority may sustain by
reason of the Appraiser’s breach, violation or failure to perform any obligation,
covenant or undertaking under this Agreement or a Notice to Proceed;
b. The Authority shall have the benefit of all work completed up to the time of
termination or cancellation;
c. The Authority shall have no obligation to pay compensation for any work
performed by the Appraiser after the receipt of a notice of termination; and
d. The Authority shall have a right to withhold any amounts due to the
Appraiser pursuant to section 4 of this Agreement as security for any
amounts owed to Authority pursuant to this section.
5.
Assignments. Appraiser acknowledges that appraisal assignments will
be made as determined by the Authority in its sole discretion and that this Agreement
does not assure work assignments will be made to Appraiser.
Further, the Authority’s
obligations hereunder are conditioned on the availability and receipt by the Authority of
funds from local, state and federal governments. The adequacy and allocation of such
funds shall be determined by the Authority in its sole and absolute discretion.
6
Modification of Assignments. The Authority may at any time by notice
in writing to Appraiser exclude any parcel or parcels from an appraisal assignment and
in such event equitable adjustment shall be made by the Authority for all work completed
40
and accepted before such exclusion and for any substantial work or service performed to
the date of such exclusion but not then in form acceptable to the Authority.
7.
Notices. Notices to any party shall be in writing and shall be delivered by
certified mail return receipt requested addressed to the parties at the addresses set forth
below:
d. If to the Appraiser:
[Name]
[street]
[City, State, Zip Code]
Fax: [number]
Email: [email]
e. If to the Authority:
Executive Director
1234 Market Street, 16th Floor
Philadelphia, PA 19107
With a copy to:
General Counsel
1234 Market Street, 16th Floor
Philadelphia, PA 19107
Any notice shall be deemed effective upon receipt.
E.
ASSIGNMENT
1.
All appraisal reports shall be the professional work product of the
Appraiser himself/herself and must be signed by Appraiser. Appraiser shall not
assign or transfer any right or obligation hereunder.
2.
G.
The Authority may assign this Agreement.
CONFIDENTIALITY AND CONFLICT OF INTEREST
1.
The reports, opinions, and conclusions of Appraiser shall be confidential.
Appraiser shall not disclose in whole or in part, directly or indirectly, any such
41
information, opinion, or conclusions to any person or entity without the prior written
authorization of the Authority.
2.
Upon request by the Authority, but at least annually, Appraiser shall
complete an annual Disclosure Statement identifying Appraiser’s real estate
holdings within the City of Philadelphia. Appraiser further agrees to advise the
Authority whenever Appraiser: a) applies for purchase or transfer of property
from the City of Philadelphia, the Authority, or any of their agencies; and b)
applies for purchase of a property owned by a Community Development
Corporation.
3.
Appraiser agrees that from the date of an appraisal assignment through
90 days following completion of an appraisal report, he/she will not acquire any
direct or indirect interest in any property located within the Urban Renewal Area
of the appraisal assignment. Appraiser represents that he/she has not employed
and will not employ, in connection with the work or services to be performed
hereunder, any persons having any such interest.
E.
INDEMNIFICATION AND LICENSING
1.
Appraiser shall be considered an independent contractor.
2.
Appraiser agrees to indemnify, defend and hold harmless the
Authority, its officers, employees and agents, from and against any and all
losses, costs (including litigation costs and counsel fees) claims, suits, actions,
damages, liability and expenses, including but not limited to those in connection
with loss of life, bodily injury, personal injury or property damage, arising out of
any act or omission of Appraiser and/or his/her contractors, subcontractors,
42
licensees, invitees, or anyone directly or indirectly employed by Appraiser or
anyone for whose acts Appraiser may be liable, in or about the premises.
3.
Appraiser shall provide to the Authority a certificate of general liability
insurance in a sum not less than One Million Dollars ($1,000,000.00), with an insurance
company satisfactory to the Authority. The policy shall be Broad Form Comprehensive
General Liability, including Public Liability and Property Damage Coverage for bodily
injury, accidental death and damage to property, which may arise from Appraiser’s
performance under this Agreement, whether such operations are by the Appraiser or by
anyone directly or indirectly employed by the Appraiser.
4.
Appraiser shall provide to the Authority a certificate of
insurance in a sum not less than One Million Dollars ($1,000,000.00), with
an insurance company satisfactory to the Authority, as evidence of
Appraiser’s professional liability insurance coverage for work performed
under this Agreement.
5.
Appraiser shall submit to the Authority, within sixty (60) days
of renewal, an authentic copy of Appraiser’s Certificate issued by the
Commonwealth evidencing Appraiser’s certification to perform appraisals.
F.
NON-DISCRIMINATION PROVISIONS
1.
Appraiser shall not discriminate against any employee or applicant
for employment because of race, religion, creed, color, sex or national origin.
Appraiser shall take affirmative action to ensure that applicants are employed,
and that employees are treated during employment, without regard to their race,
43
religion, creed, color, sex or national origin. Such action shall include, but not be
limited to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoff or termination; rates of pay or other
forms of compensation; and selection for training, including apprenticeship.
Appraiser agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the Authority setting forth
the provisions of this nondiscrimination clause.
2.
Appraiser will, in all solicitations or advertisements for employees placed
by or on behalf of Appraiser, state that all qualified applicants will receive consideration
for employment without regard to race, religion, creed, color, sex or national origin.
3.
Appraiser will cause the foregoing provisions to be inserted in all
subcontracts for any work covered by this Agreement so that such provisions will be
binding upon each subcontractor.
G.
INDUCEMENT AND INTEREST
1.
Appraiser represents, warrants and agrees that he has not employed any
person to solicit or procure this Agreement, has not made, and will not make any
payments to anyone, nor agree for the payment of any commission, percentage,
brokerage, contingent fee, or other compensation to anyone in connection with the
procurement of this Agreement.
2.
No member of the Authority shall participate in any decision relating to
this Agreement which affects his/her personal interest or the interest of any corporation,
partnership, or association in which he/she is directly or indirectly interested nor shall
any member, officer, agent or employee of the Authority have any interest, direct or
indirect, in this Agreement or the proceeds thereof.
44
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day first above written.
CORPORATE SEAL-ATTEST:
REDEVELOPMENT AUTHORITY
OF THE CITY OF PHILADELPHIA
BY:
DEPUTY EXECUTIVE DIRECTOR
EXECUTIVE DIRECTOR
APPRAISER
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ADDENDUM A
ACQUISITION APPRAISAL
If Appraiser is requested to perform an Acquisition Appraisal, for each parcel
being appraised he/she shall:
1.
Verify, insofar as is practicable, all recent sales and leases of each parcel
and all recent sales and leases of comparable property which Appraiser has taken into
consideration as reflecting the fair market value of the property appraised.
Such
verification shall include interviewing the seller, buyer, agent, landlord, tenant or any
other person known to have participated in the transaction, to ascertain the
consideration, the terms and conditions of the sale or lease, any special factors affecting
the amount of the consideration or agreed rent, the actual condition of the property at the
time of transfer or lease, and any other relevant factors.
2.
Prepare an original and one copy of a written report which shall, in form
and substance, conform to sound professional appraisal practices and to the principles
of determining values of real property in accordance with the Pennsylvania Eminent
Domain Code.
Appraiser shall determine fair market value in accordance with the
following definitions:
(a) Fair market value shall be the price which would be agreed to by a willing and
informed seller and buyer, taking into consideration, but not limited to, the following
factors:
(1) The present use of the property and its value for such use.
(2) The highest and best reasonably available use of the property and its
value for such use.
(3) The machinery, equipment & fixtures forming part of the real estate
taken.
(b) Any change in the fair market value prior to the date of condemnation which
was substantially due to the general knowledge of the imminence of condemnation,
other than that due to physical deterioration of the property within the reasonable control
of the condemnee, shall be disregarded in determining fair market value.
(c) The most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller each acting
prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
46
Implicit in this definition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they
consider their best interest;
3. a reasonable time is allowed for exposure in the open market; payment is
made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and the price represents the normal
consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the
sale.
3.
The appraisal report shall include:
a.
One or more photographs of the exterior of the property and its
environs.
b.
One or more photographs of the interior of the property.
c.
Appraiser’s opinion of the fair market value of each parcel,
including improvements, structures, appurtenances, special uses, or other
elements of value thereunto belonging.
d.
If the parcel is improved, Appraiser shall state the age,
dimensions, kind, character and condition of each of the various structures,
improvements or fixtures on or in the parcel, together with Appraiser’s opinion of the
parcel’s highest and best use and an allocation of the value and utility of each such
structure, improvement, fixture or other element of value in relation to the highest and
best use to which the parcel, in Appraiser’s opinion, is adaptable.
e.
A statement of any and all circumstances found by Appraiser to
exist with respect to unlawful condition, use or occupancy of the parcel being appraised.
Appraiser shall make a visual inspection of the property for City Housing and Building
Code and Zoning Code violations and shall inform the Authority of possible violations.
g.
The names and addresses of the owners of the parcel and
the date and place of recording the instrument of conveyance under which the
47
owner claims title. If known, the Authority shall furnish Appraiser with
information as to tract ownership data.
h.
The assessed value of the parcel and the amount of the current
real estate tax levy.
i.
A record of all recent sales and leases of the parcel and a
statement of all sales and leases of comparable property which Appraiser has
taken into consideration in determining the fair market value of the parcel.
Information of sales and leases of comparable properties shall indicate the
factors of comparability and shall set forth the names of the grantor and grantee
or lessor and lessee, as applicable; a general description of the property and its
condition; applicable zoning; date of transfer, consideration, place of recording of
the conveyance; and a map, diagram, or other information indicating the location
of such sales in relation to the parcel. Appraiser shall provide copies of deeds for
each comparable sale. On business, commercial, and industrial properties,
Appraiser shall state specifically whether the consideration included any special
equipment, licenses or trade fixtures.
j.
A scale plat of the parcel, if significant in arriving at the value
k.
In the event of severance, Appraiser's opinion of the fair market
conclusion.
value of the whole parcel, the fair market value of the part not taken, and the value of
any special benefits accruing to the part not taken which may be taken into consideration
under applicable law.
l.
A statement of the rental value of the parcel and a history of the
rental experience, if Appraiser performs an Income Capitalization approach to value.
48
m.
A statement as to the existing utilities and the adequacy thereof
with respect to the services available to the property; a brief description of the character
of street improvements near the site of the property appraised; and a statement showing
transportation, school, marketing and other facilities such as churches, parks,
playgrounds and public libraries.
o.
A statement as to whether the property or any portion thereof is
subject to special assessments and, if so, the nature, amount and number of years
during which payment must be made.
p.
A detailed statement of all factors considered by Appraiser
which influence, either favorably or unfavorably, the market value of the parcel,
and a statement concerning the activity of the real estate market in the
immediate area within and surrounding the Project Area for the past several
years through the date of the appraisal.
q.
If the highest and best use requires demolition of existing
structure(s), a statement of demolition costs and/or removal.
Appraiser shall make
adjustments to the estimate of fair market value that he/she deems appropriate.
r.
Disclosure
of
any
known
adverse
conditions,
including
environmental hazards (such as evidence of underground storage tanks, waste disposal
or asbestos) that are readily apparent to Appraiser.
s.
If Appraiser is unable to gain access to the interior of the property,
Appraiser shall assume that the interior of the property is in poor condition unless
otherwise directed by the Authority in the Notice To Proceed letter.
4.
Bring to the attention of the Authority other factors bearing on the
value of the parcel, including Unity of Use, Assembled Economic Unit Doctrine or
the Industrial Plant Doctrine.
5.
Testify on behalf of the Authority in any legal proceeding as an expert
witness with respect to the appraisal report, utilizing adequate records, notes, and
source-of-valuation references.
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6.
Provide the owner advance notice that Appraiser will inspect the
property and allow the owner or his authorized representative to accompany
Appraiser during the inspection. A copy of this notification shall be included in
the appraisal report and Appraiser shall certify that the notification was delivered
to the owner, either personally or by certified mail, not less than 10 days prior to
the date of inspection. In the process of inspecting the property, Appraiser shall,
to the extent practicable, ascertain the rights of all parties in possession and note
for consideration all factual information and comments furnished by the owner or
his representative relevant to the appraisal.
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ADDENDUM B
ACQUISITION REINSPECTION APPRAISAL
If Appraiser is requested to perform an Acquisition Reinspection Appraisal, for
each parcel being appraised he/she shall:
1.
Determine any change in fair market value of each parcel from its last
acquisition appraisal value and advise the Authority of the present fair market value of
each parcel and whether it is the same, less than, or greater than the most recent
acquisition appraisal valuation.
2.
If the present fair market value has changed, verify, insofar as
practicable, provide a statement of all recent sales and leases of each parcel and all
recent sales and leases of comparable property which Appraiser has taken into
consideration as reflecting the change in fair market value of the property appraised.
Such verification shall include interviewing the seller, buyer, agent, landlord, tenant or
any other person known to have participated in the transaction, to ascertain the
consideration, the terms and conditions of the sale or lease, any special factors affecting
the amount of the consideration or agreed rent, the actual condition of the property at the
time of transfer or lease and any other relevant factors.
3.
Prepare an original and one copy of a Summary Appraisal Report that
shall, in form and substance, conform to sound professional appraisal practices and to
the principles of determining values of real property in accordance with the Pennsylvania
Eminent Domain Code. The appraisal report shall determine value as of the date of
condemnation and shall include:
a.
One or more photographs of the interior of the parcels
depicting the general conditions of the property and one or more photographs of
51
the exterior of the property if any changes are evident in the physical appearance
of the property since the last photograph was taken.
b.
Information and findings supporting the change in valuation,
including improvements, additions, renovations or repairs to structures and physical
items of real estate with actual or estimated cost thereof.
c.
Demolition, destruction, deterioration or removal of structures and
physical items of real estate with the causes thereof.
d.
Changes in market conditions affecting value based on recent
comparable sales, rentals or other specific market data.
e.
A determination of the highest and best use considering the
utilization of the property.
f.
Changes in permissible uses since the date of the last appraisal
with respect to zoning, variances, licensing or other governmental restrictions.
g.
A detailed statement of all factors taken into consideration by
Appraiser which influence, either favorably or unfavorably, the change in the market
value of the parcel, together with a statement covering the activity of the real estate
market in the immediate area within and surrounding the project area during the interval
between the last appraisal and the current appraisal.
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EXHIBIT
RDA APPRAISAL PROCEDURES & GUIDELINE MANUAL
Refer to ITQ “Exhibit G” for Appraisal Procedures & Guideline Manual
53
EXHIBIT “G”
RDA Appraisal Procedure & Guideline Manual
54
of the City of Philadelphia
Appraisal Procedure & Guideline Manual
Table of Contents
Section 1
Purpose & Objective
Section 2
Application of the Uniform Act & USPAP
Section 3
Compensation
Section 4
RDA Appraisal Policies & Procedures
Section 5
Distribution of Procedures & Guideline Manual
Section 6
Elements of General Damages
Section 7
Compensable Verse Non-compensable Elements of Damage
Section 8
General versus Special Benefits
Section 9
Machinery & Equipment Report
Section 10
Appraiser Qualification
Section 11
Appraisal Project Management
Section 12
Appraisal Invitation to Qualify (ITQ)
Appendix A
Appraisal Institute Form AI-100.01
Appendix B
USPAP Summary Report & Machinery & Equipment Report
55
Appraisal Procedure & Guideline Manual
Section 1
PURPOSE AND OBJECTIVE
The Redevelopment Authority (RDA) Appraisal Procedure & Guideline Manual outlines the process for
determining the amount of compensation to offer property owners for the purchase and possible
condemnation of their property, including the procedures for preparing appraisals and appraisal reports.
The main objective is to provide the negotiator with an estimate of compensation to be offered each
property owner for the taking of their private property for public purposes.
The manual establishes general guidelines for determining the amount of compensation offered. Exceptions
to following these guidelines may be granted by the RDA Executive Director or a designated
representative, on a case-by-case basis depending on the circumstances. The RDA has the responsibility to
assure that appraisals:
1. Reflect established and commonly accepted Federal and federally-assisted program appraisal practice.
2. As a minimum, comply with both of the following:
a. Definition of an appraisal
The term appraisal means a written statement independently and impartially prepared by
a qualified appraiser setting forth an opinion of defined value of an adequately described
property as a specific date, supported by the presentation and analysis of relevant market
information.
b. Appraisal Requirements
(1) An adequate description of the physical characteristics of the property being
appraised.
(2) All relevant and reliable approaches to value consistent with established appraisal
practices.
(3) A description of comparable sales.
(4) A statement of value of the real property to be acquired.
(5) The effective date of valuation.
The Appraisal Institute Form AI -100.01 contained in Appendix A is the approved RDA appraisal format
and will be the standard when conducting assignments involving 1-4 unit residential properties, small
vacant lots and small mixed use properties. When needed, the RDA Appraisal Division may request the
use of the Uniform Standards of Professional Appraisal Practice (USPAP) Narrative Summary Appraisal
Report or Machinery and Equipment (M&E) Report (Appendix B) be completed in addition to the
Appraisal Institute Form AI -100.01.
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Section 2
APPLICATION OF THE UNIFORM ACT AND USPAP
A. Jurisdictional Exception.
The Jurisdictional Exception (JE) Rule of Uniform Standards of Professional Appraisal Practice (USPAP)
recognizes the pre-eminence of governmental law and public policy over USPAP when there are, or appear
to be, differences. The effect of the JE is to protect certified and licensed appraisers when they appraise
following the requirements of a government agency. When JE is invoked and RDA appraisal requirements
are followed, the appraiser is still operating within the bounds of and is not violating USPAP.
B. Supplemental Standards.
The purpose of the Supplemental Standards Rule is to provide a reasonable means to augment USPAP with
requirements that add to the requirements set forth by USPAP. Supplemental standards cannot diminish the
purpose, intent, or content of the requirements of USPAP.
Supplemental standard applicable to assignments prepared for specific purposes or property types may be
issued (i.e. published) by government agencies, government sponsored enterprises, or other entities that
establish public policy.
C. USPAP Library.
RDA is required to keep copies of all current and applicable USPAP reference material. Past issues may
apply to revised or updated appraisal reports.
Section 3
COMPENSATION
A. Just Compensation.
Just compensation is defined under Pennsylvania law as the difference between the fair market value of the
condemnee’s entire property interest immediately before the condemnation and as unaffected thereby and
the fair market value of his property interest remaining immediately after such condemnation and as
affected thereby, and such other damages as are provided in the Code (Section 702(a) of the Pennsylvania
Eminent Domain Code). This definition incorporates two basic types of damages—general damages and
special damages.
The term “general damages” as referred to throughout this manual means damages for real estate based on
the difference between the before and after condemnation value of the property. The term “special
damages” encompasses all other damages payable under the Pennsylvania Eminent Domain Code, such as
those for the displacement of businesses, and residential occupants and the limited reimbursement for
appraisal, attorney and engineering fees.
This manual deals predominantly with the determination of general damages to real estate, including that
for property taken as well as any loss in value due to severance and/or depreciation to remaining property.
There are certain elements that may affect value of a property that must be considered in arriving at general
damages. These elements are addressed in subsequent sections of this manual.
B. Fair Market Value.
Fair market value is defined under Pennsylvania law as the price which would be agreed to by a willing and
informed seller and buyer, taking into consideration, but not limited to, the following factors:
1. The present use of the property and its value for such use.
2. The Highest and Best Use.
3. The machinery, equipment and fixtures forming part of the real estate taken.
57
4. Other factors as to which evidence may be offered as provided by Article VII of the Pennsylvania
Eminent Domain Code (Section 703 of the Pennsylvania Eminent Domain Code).
The comment to this section clarifies that a “willing” seller and buyer means that neither is under abnormal
pressure or compulsion, and both have a reasonable time within which to act, and that an “informed” seller
and buyer means that both are in possession of all the facts necessary to make an intelligent judgment.
There are similar definitions of fair market value in various recognized sources in the appraisal literature.
The term “fair market value” is synonymous with “market value.” This definition of Market Value is in
accord with the general definitions that are present in any appraisal terminology. Implicit in these
definitions are the consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions whereby:
• Buyer and seller are typically motivated.
• Both parties are well informed or well advised, and acting in what they consider their own best
interest.
• A reasonable time is allowed for exposure in the open market.
• Payment is made in cash or its equivalent.
• Financing, if any, is on terms generally available in the community at the specified date and typical
for the property type in its locale.
• The price represents a normal consideration for the property sold unaffected by special financing
amounts and/or terms, services, fees, costs or credits incurred in the transaction.
C. Approved Amount and Offer of Just Compensation for General Damages.
The result of the appraisal and appraisal review process is an approved amount representing damages to the
property in question. The offer of just compensation to be made to a claimant for general damages to real
property shall not be less than market value. Under certain circumstances, the offer of just compensation
for general damages may be greater than market value. Any acquisition under the threat of condemnation
may be said to violate the “willing seller” concept of market value. Therefore, RDA Staff Appraisers are
encouraged to recognize and consider the non-market circumstances of eminent domain. Accordingly, the
Staff Appraiser may recommend just compensation for general damages in excess of market value. The
Staff Appraiser will remind the Fee Appraiser of possible “value in use” considerations above and beyond
fair market value.
An example where a RDA Staff Appraiser may recommend just compensation greater than market value
would be on a claim where the owners have constructed industrial buildings to suit their special and
particular needs. The market value of such special use buildings may not adequately recognize their value
to the owners. Had it not been for the City needing the land for a project, these owners would likely have
continued to use the facilities for many years to their satisfaction, regardless of their market value. This also
applies to commercial and residential owners who may have created a unique situation by building in
obsolescence or features for which “the market” would assign no value, but which the owners consider
desirable and important features. In such cases, what the market would pay (market value) may not fairly
represent just compensation for general damages.
Establishing an approved amount based on a Staff Appraiser’s recommendation for greater than market
value is different from an administrative settlement. An administrative settlement is above the approved
amount to be paid for settlement of the claim.
D. Offer to Purchase Property Prior to Condemnation & Estimated Just Compensation After
Condemnation.
Pennsylvania law does not require that an offer of just compensation be made prior to condemnation.
However, federal law for federal-aid projects and RDA policy for all projects require a pre-condemnation
offer to purchase the property at the approved amount. The offer of just compensation for general damages
made prior to condemnation is made to fulfill these requirements, not those of the Pennsylvania Eminent
Domain Code.
Under Section 307 of the Pennsylvania Eminent Domain Code, a condemnor is entitled to possession of the
property condemned only upon a written offer to pay or actual payment to the condemnee the amount of
58
just compensation as estimated by the condemnor. This is consistent with federal law for federal-aid
projects and RDA policy for all projects that, absent a right of entry agreement, possession of the required
property will not be taken until after payment is made.
The estimated just compensation, offered and paid by the RDA under the Pennsylvania Eminent Domain
Code after condemnation, will be at least the amount of the pre-condemnation approval. It may also be
based on a greater approved amount updated to the date of condemnation. The purpose of the precondemnation offer is to amicably purchase the required property by the execution of a deed without the
need for condemnation. On the other hand, the offer and payment of estimated just compensation under the
Pennsylvania Eminent Domain Code is for the purpose of securing possession of the required property after
negotiations have failed and a condemnation is filed. The claimant then has a right to file for the
appointment of a board of viewers to determine whether any additional amount above the estimated just
compensation is due for the condemnation.
Section 4
RDA APPRAISAL POLICIES & PROCEDURES: THE APPLICATION OF
UNIFORM APPRAISAL STANDARDS PURSUANT TO FEDERAL LAW AND
STATE EMINENT DOMAIN REQUIREMENTS
The Commonwealth of Pennsylvania, Real Estate Appraiser Certification Act (REACA) adopted a broad
definition of what constitutes an appraisal. Essentially, an appraisal is any written analysis, opinion or
conclusion relating to the nature, quality, value or utility of specified interests in, or aspects of, identified
real property. RDA, as a user of appraisal services in order to implement critical elements of its
development program, will follow Federal Acquisition Guidelines.
A. RDA Appraisal Function and Legal Jurisdictional Authority.
The RDA has the power to acquire real property as provided by law. In cases of condemnation, the RDA is
required to follow the exclusive provisions of the Eminent Domain Code with respect to both the offer of
estimated just compensation (EJC) as well as the determination of all legal elements of damage on the
broad question of what constitutes just compensation. The Eminent Domain Code makes no reference to
the terms appraisal or appraiser in those provisions that concern either the establishment of just
compensation or evidence in legal proceedings. The Code, however, does provide:
A qualified valuation expert may, on direct or cross-examination, state any and all facts and data which
he considered in arriving at his opinion, whether or not he has personal knowledge thereof, and his
statement of such facts and data and the sources of his information shall be subject to impeachment
and rebuttal.
The Eminent Domain Code, most recently in 2006, incorporates decades of court decisions interpreting the
question of just compensation in the Commonwealth. The applicable law of just compensation is dynamic
since a court having jurisdiction over RDA could render an opinion that can have an impact on some aspect
of the appraisal function in any given case.
B. The Legal Authority Governing Appraisal Practice in the Commonwealth.
In 1990 the General Assembly enacted the Real Estate Appraisers Certification Act (REACA), to establish
an education, certification and regulatory program for the practice of real estate appraising in the
Commonwealth. In addition to sound public policy, however, the enactment of REACA was also made
necessary by the enactment of a federal law entitled the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA).
Both FIRREA and, by separate provision of state regulatory law, REACA incorporate USPAP as their
primary guidance standard for the performance and reporting of appraisals. In compliance with this law, all
RDA personnel, acquisition consultants and appraisal consultants performing any aspect of RDA’s
appraisal function pursuant to this manual are required to carry the appropriate REACA state certification.
The RDA recognizes the professional obligations of state certified appraisers in the performance of its
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appraisal function and, additionally, certified appraisers are frequently called-upon by the RDA to provide
analyses as to real estate value as qualified valuation experts under the Eminent Domain Code.
C. The Use of Standard Appraisal Forms.
As stated in Section 1, the Appraisal Institute Form AI -100.01 (Appendix A) is the approved RDA
appraisal form and will be the standard when conducting assignments involving 1-4 unit residential
properties, small vacant lots and small mixed use properties. The RDA prescribes the mandatory use of
Appraisal Institute Form AI -100.01 in order to ensure uniform, city-wide compliance with the law, policy
and procedures required in order for the RDA to perform its appraisal function. When needed, the RDA
Appraisal Division may request a USPAP Narrative Summary Appraisal Report or M&E Report (Appendix
B).
Section 5
DISTRIBUTION OF PROCEDURE & GUIDELINE MANUAL
The RDA Appraisal Division must provide a current copy of the manual to all fee appraisers performing
work. The manual is made available to all Staff and Fee Appraisers and will guide appraisers in the
appraisal process. The manual also addresses substantive legal principles relating to valuation under the
Pennsylvania Eminent Domain Code and provides a copy of the standard RDA Professional Services
Contract (Appendix C).
Section 6
ELEMENTS OF GENERAL DAMAGES
There are two basic categories of general damages—direct and indirect. Direct damages are those paid for
land and improvements actually taken. Indirect damages are those paid for negative impacts on land and
improvements remaining after the taking. There are several major factors that must be considered and
supported in an estimate of just compensation for general damages:
1. The value of the land actually taken (direct damage).
2. The contributory value of any improvement situated on the land taken (direct damage).
3. The contributory value of any machinery, equipment and fixtures forming part of the real estate
situated within the land and improvements taken (direct damage).
4. Severance or consequential damages to property remaining after the acquisition, including a
reduction in the value of remaining land and a reduction in the value of remaining improvements
(indirect damages).
5. A cost to cure is to be considered indirect damages because the cost to cure mitigates indirect
damages to the residue that would have been severance or depreciation if let uncured.
The appraiser must consider how and why the elements of damage mentioned above affect the after value
of the property being appraised. Additional information on various elements of damage is included in the
Appraisal Guide included in this Manual.
Section 7
COMPENSABLE VERSUS NONCOMPENSABLE ELEMENTS OF DAMAGE
There are many elements to consider in appraising real estate. While most of these elements can be
considered when appraising for condemnation in Pennsylvania, there are certain elements of damage and
other factors that by law should not be considered when appraising for condemnation purposes. The most
frequent considerations that raise issues relate to interference with access, business related damages, costs
to cure, drainage, change of grade, fencing, retaining walls, flowers, shrubs, trees and other amenities. Any
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problems encountered by the appraiser or Staff Appraiser in determining if an element of damage or other
factor is legally compensable should be referred to the Executive Director, who can then obtain a legal
opinion from the General Counsel.
Section 8
GENERAL VERSUS SPECIAL BENEFITS
Pennsylvania law provides that, in determining the fair market value of property remaining after a partial
taking, consideration shall be given to the use to which the property condemned is to be put and the
damages or benefits specially affecting the remaining property, due to its proximity to the improvement for
which the property was taken. Future damages and general benefits that will affect the entire community
beyond the properties directly abutting the property taken shall not be considered in arriving at the after
value. Special benefits to the remaining property will in no event exceed the total damages, except where
the condemnor is authorized under existing law to make a special assessment for benefits (Section 706 of
the Pennsylvania Eminent Domain Code).
Special benefits and damages that can be considered in partial taking cases are only those that are peculiar
and direct to the remaining property. General benefits and damages that accrue to the community as a
whole are not to be considered in arriving at the after value of a property being appraised. Special benefits
are those that are direct and peculiar to the particular property, as distinguished from the incidental benefits
enjoyed to a greater or lesser extent by the entire general area surrounding the improvement. There is no
restriction that the property being appraised is the only property specially benefited by the project.
Under the law, special benefits may not exceed the total damages payable; that is, the claimant cannot be
requested to pay the RDA. As a matter of policy, the RDA will offer the claimant at least the value of the
land actually taken even if the special benefits concept results in a lesser determination of damages.
When a Fee Appraiser determines that the special benefits concept applies, the Fee Appraiser must fully
explain and substantiate the basis for the determination. Due to the difficulty and sensitivity in applying the
concept and ascertaining the extent of any special benefits, the RDA Staff Appraiser must submit all
appraisals indicating special benefits to the Executive Director and General Counsel for review and
concurrence prior to approval of the appraisal.
Section 9
SPECIALITY REPORT
If the RDA chooses to obtain a specialty report other than an M&E report, the RDA may do so through
another consultant on the project using normal contracting procedures. All Specialty Reports must comply
with the provisions of the Competency Rule of the Uniform Standards of Professional Appraisal Practice
(USPAP).
Section 10
APPRAISER QUALIFICATIONS
A. Use of Fee Appraisers.
Generally, Fee Appraisers (hired under the ITQ) prepare appraisal reports. Appraisals are generally
reviewed by the Staff Appraisers. Both Staff and Fee Appraisers are licensed (board certified) professionals
hired to perform appraisals in order to estimate property values and damages to real estate subject to the
acquisition activities of the RDA.
The State Board of Certified Real Estate Appraisers governs all appraisers working in the Commonwealth
of Pennsylvania. All appraisers must maintain a current and valid certification.
Qualification Standards for Fee Appraisers
1. Competency Rule
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It is the responsibility of the appraiser to assure competency in any category of appraisal
assignment in which the appraiser works.
2. Appraiser Pre-Qualification
a. Except as set forth below, all Fee Appraisers must qualify under the Invitation to
Qualify (ITQ) requirements.
b. Except as set forth below, all Fee Appraisers must be included on the ITQ list to
participate in the RDA’s competitive selection of Fee Appraisers.
c. The RDA reserves the right to utilize sole source procedures and to waive prequalification standards when necessitated by the uniqueness or complexity of the
appraisal problem or when required for litigation purposes.
3. Categories of Assignment, Required Appraiser Certification & Use of Standard Appraisal Forms
a. Category 1 Assignments under the ITQ
At minimum residential certification, use of Appraisal Institute Form AI -100.01
b. Category 2 Assignments under the ITQ
General certification, use of USPAP Summary Appraisal Report in Narrative Format
c. Category 3 Assignments under the ITQ
General certification, use of the Machinery and Equipment Report
B. Appraisal Certificate Renewal.
All appraisers are required to maintain their certification in good standing, which includes continuing
education requirements and renewal every two years. The appraiser is required to pay the renewal fee. The
Staff Appraiser will monitor the Pennsylvania Department of State Bureau of Professional & Occupational
Affairs website to verify certification status of all appraisers doing work for the RDA. The status of all
certificates will be reviewed immediately following the expiration of the previous year’s certification. If a
licensee does not possess a current, valid license, his/her status will be changed to “unavailable” in the
system. The licensee will not receive solicitations or be able to perform as an appraiser as long as his/her
status is listed as “unavailable” and they will be notified of this action. It is the responsibility of the Fee
Appraiser to notify the RDA Staff Appraiser if their status is to be reinstated.
If a Fee Appraiser does not renew their license or if their license has been suspended or revoked they will
be notified that further action regarding their contract status is in jeopardy.
C. Appraisal Assignments and Activities.
When a Fee Appraiser is assigned a Category 1, 2, or 3 Assignment, the individual/s identified by the firm
to perform the task will have to hold the required certification and be deemed qualified and knowledgeable
by the RDA Appraisal Division. The Appraisal Division will coordinate all RDA appraisal requests, along
with managing and reviewing the appraisals.
The Fee Appraisers will only work on a category of assignment that their license will permit as set forth in
ITQ Categories of Assignment. Under no circumstances will any other RDA staff member act in the
capacity of a Staff Appraiser, unless state certified to perform appraisals.
D. Conflict of Interest.
The RDA will not restrict the tasks that a Fee Appraiser can perform as long as they do not place
themselves in a position of conflict. The RDA must monitor the activities of the vendors working on their
projects. The appraiser may appraise for and testify for parties other than the RDA in other claims.
Personnel shall be of high professional, personal and ethical integrity, and avoid conflicts of interest. The
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reputation and caliber of the appraiser and their unbiased interaction with the public on behalf of the RDA
is of the utmost importance.
E. Termination Provisions and Procedure
TERMINATION FOR CONVENIENCE: As a Contract of convenience, any Contract can be
terminated for no cause. The RDA may terminate for convenience, either in whole or in part, the
Contract or any PO or other purchasing document issued pursuant to the Contract if the RDA
determines termination to be in its best interest. The Fee Appraiser shall be paid for work
satisfactorily completed prior to the effective date of the termination, but in no event shall the Fee
Appraiser be entitled to recover loss of profits.
In addition to terminating for convenience, the RDA has the right to terminate the Contract, or any PO or
other purchasing document, either in whole or in part, for the following reasons:
(a) NON APPROPRIATION: The RDA’s obligations to make payments during any RDA fiscal year
succeeding the current fiscal year shall be subject to availability and appropriation of funds. When the
funds (state and/or federal) are not appropriated or otherwise made available to support the continuation of
performance in a subsequent fiscal year period, the RDA shall have the right to terminate, either in whole
or in part, the Contract or any PO or other purchasing document issued pursuant to the Contract. The Fee
Appraiser shall be paid for work satisfactorily completed prior to the effective date of the termination, but
in no event shall the Fee Appraiser be entitled to recover loss of profits. The reimbursement amount may be
paid from any appropriations available for that purpose.
(b) TERMINATION FOR CAUSE: The RDA reserves the right to terminate for Appraiser Default under
Paragraph 12, Default, either in whole or in part, the Contract, or any PO or other purchasing document
issued pursuant to the Contract, upon written notice to the Fee Appraiser. The RDA shall also have the
right, upon written notice to the Fee Appraiser, to terminate, either in whole or in part, the Contract, or any
PO or other purchasing document issued pursuant to the Contract, for other cause as specified in the
Contract or by law. If it is later determined that the RDA erred in terminating the Contract, or any PO or
other purchasing document issued pursuant to the Contract, for cause, then, at the RDA’s discretion, the
Contract, or PO or other purchasing document, shall be deemed to have been terminated for convenience
under the Subparagraph 14a. The Fee Appraiser shall be paid for work satisfactorily completed prior to the
effective date of the termination, but in no event shall the Fee Appraiser be entitled to recover loss of
profits.
F. City of Philadelphia Business Privilege License
A City Business Privilege License will be required of the successful respondent(s). The Business Privilege
License and instructions can be downloaded from the City’s website at www.phila.gov/forms/index.html.
Section 11
APPRAISAL PROJECT MANAGEMENT
The RDA Appraisal Division is responsible for overall appraisal project management; the following are the
major steps in the appraisal project management process.
A. Project Scope of Work & RDA Staff Field View.
An important preliminary step in the appraisal project management is the Project Scope of Work/Field
View in conjunction with the Project Managers within the Development Division. This is a first inspection
of the proposed project and provides an opportunity for the RDA group discussion of real property. Every
effort should be made by the Appraisal and Development Division to be represented at this field view.
The Appraisal Division staff members will complete an in-depth field view to assist in preparing the
appraisal assignments. Each claim (parcel) will be inspected to observe any improvements that will be
affected. Exact details of each claim and comments from the viewers shall be noted; potential areas of
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concern should be addressed immediately via written order to the Project Manager. The Senior Staff
Appraiser will determine the complexity of each case and the associated appraisal problems.
Following the field view, the Staff Appraiser completes a scope/concurrence form. This preliminary report
provides the Development Division with the concerns and questions. Early involvement and input by the
Appraisal Division in this process is crucial. As a result of the field view, the Appraisal Division will set up
a file containing rough estimates of the number and type of claims involved.
B. Preliminary Data Collection.
The RDA Appraisal Division should begin to collect preliminary data for all types of appraisals and include
gathering potential comparable sales data and other market data deemed appropriate.
Data sources should include but not be limited to the following: public records; various sale data reporting
services; real estate agents and multiple listing services; appraisers, owners and tenants; and internal
Department appraisals and files. Information collected may include but not be limited to the following:
general and local demographic statistics and other pertinent data; zoning maps; codes and ordinances;
FEMA flood plain maps; deed restrictions/covenants; land use and subdivision plans; availability of
municipal utilities; planning department projections; tax assessment data; environmental reports; and all
other information that may pertain or have an affect on the subject property, the immediate neighborhood
or the general area.
C. Appraisal Assignments.
Appraisal assignments should be made after the field view. The Appraisal Division must manage the
workload related to the number of appraisals in various projects, time constraints due to letting dates, and
the complexity of the appraisal assignments. Consideration must be given to claims that are litigation
candidates. Fee Appraisers may be utilized at the discretion of the RDA. Additionally, the Appraisal
Division should be consulted to determine if the review function would require a Fee Appraiser’s services.
If the appraisal problem is complex or involves the dislocation of a business or resident, the Appraisal
Division must initiate procedures for determining whether Assembled Economic Unit Doctrine (AEVD)
applies
The Appraisal Division may arrange for a pre-appraisal conference if necessary. Reasons for a conference
would include the level of complexity of the assignment and the familiarity of the appraisers with RDA
requirements. The purpose of this conference is to discuss with the selected appraisers the assignment and
the documentation required.
The Staff Appraiser, considering the resources available and other circumstances, will assign staff
appraisers to applicable assignments. Other assignments will be given to Fee Appraisers under the ITQ.
Normally only one appraisal per case will be required. However, the RDA Staff Appraiser, in consultation
with the RDA Executive Director and General Counsel, has discretion on the number of appraisal reports
required for each parcel and in situations where necessary.
D. Coordination of the Review Function.
Concurrent with determining the appraisal assignments, the Senior Staff Appraiser will approve the use of
the Fee Appraiser, and will be informed on the letting date and the estimated completion dates of the
appraisal assignments. The Appraisal Division and/or assigned representative will forward the comments to
the Fee Appraiser and be responsible for ensuring a timely response. In order to expedite the process,
correspondence may be by fax or electronic transmission. Fee Appraisers (as applicable) will be
responsible for providing assigned representative a written response to the review concerns within ten
business days of receiving the RDA Staff Appraiser’s written request. The Fee Appraiser must request any
extensions in writing and the Appraisal Division approval of the extension must also be in writing.
E. Revising and Updating Appraisals.
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Appraisal revisions may be necessary due to changing circumstances. These may include a legal decision
impacting the appraisal problem or a change in local land use or market conditions. Updates within 6
months to one year and/or minor revisions to the appraisal may be requested as part of the fee proposal if
the RDA so chooses.
F. If the Fee for Updating is Not Included in the Initial Bid.
If the fee for updating is not included in the initial bid, then a fee may be negotiated based on fair and
reasonable compensation for the work involved. If a revision is required due to extenuating circumstances
beyond the control of the appraiser, the fee for such revision is to be negotiated commensurately with the
work to be performed.
G. Litigation.
1. File Review and Updating Appraisals
When a petition for the appointment of viewers is filed, the trial attorney assigned to the case will notify the
RDA General Counsel and Senior Staff Appraiser or designee. The Staff Appraiser is responsible for
reviewing the file to determine whether any appraisal work is required to proceed to a board of viewers
hearing. This will include assuring that a appraisal exists, that the appraiser is available to testify, and that a
contract exists to pay the appraiser for preparing and testifying. The RDA must also have the appraisal
updated to the date of condemnation and any revisions due to changed circumstances since the effective
date of the original appraisal. Although performed by the RDA, all these activities must be coordinated
with the trial attorney.
2. Updating Offers
Where an updated or revised appraisal is obtained and the case is in litigation, the applicable Staff
Appraiser in coordination with General Counsel will inform the trial attorney of whether damages are
unchanged or revised. If the approval has been revised, the trial attorney must transmit the revised offer in
writing to the claimant and/or his attorney. If a revised offer does not give rise to a legal settlement, the trial
attorney shall instruct the RDA to pay the increased amount, if any, to the claimant.
3. Obtaining Specialty Reports Other Than Machinery and Equipment (M&E) Reports
The ITQ procedures do not apply to directly hiring experts other than real estate appraisers for claims in
litigation. That is, specialty reports other than M&E evaluations are not included under the ITQ procedures.
However, similar to non-litigious situations, the ITQ procedures can be used for this purpose where an ITQ
qualified appraiser is required to obtain a specialty report from another type of expert as part of their
contract with the RDA. The RDA should perform this function through standard contracting avenues, with
the assistance of the attorney. In extraordinary circumstances, counsel may assume direct responsibility for
processing a service purchase contract for a specialty report needed for litigation purposes.
Sole source procedures can be justified for obtaining these services for testimony. Counsel must provide a
sole source justification. The justification should be similar to that set forth above for obtaining appraisers
and M&E experts in litigation. It must explain that the services are needed for litigation testimony purposes
and why the particular expert was chosen.
4. Appraiser Evaluation Form
The RDA Staff Appraiser remains responsible for completing an appraiser evaluation at the conclusion of
each assignment even though the claim is in litigation. Following a board of viewers hearing or trial,
counsel should also complete an appraiser evaluation, to be supplied by the RDA. Counsel should answer
all applicable questions, particularly those concerning the appraiser’s testimony.
H. Appraisal Services for Emergency Situations.
An emergency exists when there is a threat to public health, welfare or safety; when circumstances outside
the control of the RDA create urgent needs that do not permit the delay involved in using more formal
competitive methods; or in any situation in which the Mayor has declared a state of emergency. Approval is
required in writing from the RDA Executive Director prior to using emergency appraisal services. The
Appraisal Division may request written fee appraisal quotations in the most expedient manner possible, e.g.
fax communication from a minimum of two contractors. The Appraisal Division evaluates the bids and
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may give the selected appraiser a verbal notification to proceed. Upon receipt and acceptance of an invoice
for emergency services, the Appraisal Division will prepare and process the appropriate documentation for
payment.
I. Payment for Appraisal Services and Penalty.
An appraiser will be paid for services upon submission of the report. A penalty may be applied for late
submission according to the appraisal contract. Under the ITQ, the Fee Appraiser is required to pay as
liquidated damages a sum equal to one percent of the consideration for each working day beyond the
designated submission date during which the services have not been completed and submitted or made
available to the RDA. The total amount of liquidated damages, if any, shall be deducted from the
consideration which otherwise would be payable by the RDA. However, the date of completion and
submission or availability may be extended, in writing by the RDA, due to factors beyond the control of the
appraiser upon their written request for an extension. In cases in which a penalty is applied, the Appraisal
Division will adjust the payment upon submission to the Finance Division.
Section 12
APPRAISAL INVITATION TO QUALIFY (ITQ)
A. Purpose.
The ITQ contract for appraisal services is a multiple award contract and serves as an alternative to the
invitation for bid and request for proposal. It enables the RDA to issue a Purchase Order (PO) to acquire
services from qualified fee appraiser contractors who are awarded a contract under the ITQ. The ITQ
qualifying process is ongoing and contract applications are reviewed and processed as they are received.
The purpose of the ITQ and resulting multiple-award contracts is to provide the RDA with appraisal
services in connection with the acquisition, sale and lease of property, and to qualify appraisers for these
purposes. Effective January 1, 2009, past approved RDA appraisal service contracts will come to an end
and will be replaced by appraisers selected through the ITQ.
B. Categories of Assignments.
Category 1 assignments require a Pennsylvania Residential Appraiser Certification to prepare residential
appraisal reports, while Category 2 & 3 requires a Pennsylvania General Certification to perform nonresidential, Machinery & Equipment, and residential appraisals.
C. Best Value Option for Selection.
Best Value is a new concept for obtaining appraisals as outlined in this ITQ for services over $5,000. Best
Value refers to the process of selecting the quote which provides the greatest value to the RDA based on
evaluating and comparing all pertinent criteria, including cost, so that the overall combination which best
suits the RDA’s needs is selected
D. Ordering of Appraisals and Selection Procedures.
The ordering procedures fall into three classes based on the cost of the services: $5,000.00 and less;
$5,000.01 to $10,000.00; and $10,000.01 and above. There are two alternatives for selecting appraisers
when the estimated amount of the assignment is $5,000.01 or greater: low bid and best value. The RDA
will make a decision as to which selection alternative will be used for assignments over $5,000.00. The
RDA may alter these procedures if they become too cumbersome and replace it with another system.
1. Ordering Procedures (Appraisal Services anticipated to cost $0.00 - $5,000.00)
For Appraisal Services anticipated to cost $0 -$5,000.00, the RDA will contact any Fee Appraiser
from the list of prequalified appraisers under this ITQ who is qualified for the category of appraisal
assignment and has expressed an interest. The RDA reserves the right to solicit interest from a
qualified appraiser. The Fee Appraiser will submit a quote signed by an authorized representative. The
RDA will issue an authorized purchasing order compatible with the RDA’s most current system
providing authorization for work as agreed upon.
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2. Ordering Procedures (Appraisal Services anticipated to cost $5,000.01 - $10,000.00)
a. Low Quote Option:
For Appraisal Services anticipated to cost $5,000.01—$10,000.00, the RDA may choose to
award the contract based upon low quote when the RDA determines that it is in its best interest
to do so. The RDA will solicit via telephone, FAX or e-mail a minimum of three (3) appraisers
from the list of prequalified appraisers under this ITQ who are qualified for the category of
appraisal assignment. If available, one of the three (3) appraisers shall be a certified MBE/WBE.
Pre-qualified appraisers who have been contacted by the RDA may submit a quote signed by an
authorized representative, within the specified time period. The RDA will award to the lowest
responsive and responsible appraiser.
OR
b. Best Value Option:
For Appraisal Services anticipated to cost $5,000.01—$10,000.00, the RDA may choose to
award the contract based upon best value criteria when the RDA determines that it is in its best
interest to do so. The RDA will include the best value criteria that will be applied and detail
what information will be required in the quote. For the purposes of this ITQ “best value” refers
to the process of selecting the quote which provides the greatest values to the RDA based on
evaluating and comparing all pertinent criteria, which may include cost, so that the overall
combination which best suits the RDA’s needs is selected. Best value criteria may include, but is
not limited to, such evaluation criteria as cost, ability to meet the requirements based upon prior
experience with the subject matter of the appraisal, prior experience with the RDA in meeting
time requirements, prior performance in delivering quality products, and prior performance in
litigation. The RDA will solicit a minimum of three (3) appraisers from the list of prequalified
appraisers under this ITQ who are qualified for the category of appraisal assignment. If
available, one of the three (3) appraisers shall be a MBE/WBE. Prequalified appraisers who have
been contacted by the RDA may submit a sealed quote, signed by an authorized representative,
within the specified time period. The RDA will award to the Appraiser whose quote best meets
the RDA’s evaluation criteria to provide the needed appraisal service.
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APPENDIX A
Appraisal Institute Form AI -100.01
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69
70
71
72
73
74
75
76
77
78
APPENDIX B
USPAP Narrative Summary Report & M&E Form
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Narrative Summary Appraisal Report
The Summary Narrative Appraisal Report should contain a summary of all information significant to the
solution of the appraisal problem. USPAP Standards Rules 2-2(b)(vii) and 8-2(b)(vii) require a summary of
the scope of work used to develop the appraisal and the final Summary Narrative Appraisal Report
submitted to the RDA should chart all significant data reported in tabular or abbreviated narrative formats,
following the outline below:
Summary Narrative Appraisal Report
a. state the identity of the client and any intended users, by name or type;
b. state the intended use of the appraisal;
summarize information sufficient to identify the real estate or personal property involved in the
c. appraisal, including the physical and economic property characteristics relevant to the assignment;
d. state the property interest appraised;
e. state the type and definition of value and cite the source of the definition;
f. state the effective date of the appraisal and the date of the report;
g. summarize the scope of work used to develop the appraisal;
summarize the information analyzed, the appraisal methods and techniques employed, and the
h. reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison
approach, cost approach, or income approach must be explained;
state the use of the property existing as of the date of value and the use of the real estate or
i. personal property reflected in the appraisal; and, when an opinion of highest and best use was
developed by the appraiser, summarize the support and rationale for that opinion;
clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and that
j. their use might have affected the assignment results; and
k. include a signed certification in accordance with USPAP Standards Rule 2-3 or 8-3.
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Machinery & Equipment Valuation Report Form
Parcel Number/Address:
Date of Property Inspections:
Effective Date of Value:
Purpose of Report -The purpose of this Valuation Report is to estimate 1) the Cost New, 2) Cost New In
Place 3) Fair Market Value in Place & 4) the Fair Market Value Severed of the Subject Machinery and
Equipment as of the Effective Date of Valuation.
1) Cost New (CN) is defined as the current cost of replacing the item described with a new
identical model or its nearest equivalent.
2) Cost New in Place (CNIP) is defined as the Transportation and Installation costs plus the Cost
New of the item. Installation allowances incorporate the cost of placement, wiring and connections
to existing hookups, special assembling, millwright requirements, as well as engineering fee for
layout and reasonable administrative cost as applicable.
3) Fair Market Value in Place (FMVJP) is defined as the value the personal property would have,
installed in the real property housing a going business, considering such factors as original cost,
delivery and installation costs, physical and economical depreciation and functional obsolescence.
4) Fair Market Value Severed (FMVS) is defined as the price that could be realized in the event
the machinery and equipment were offered for sale on the open market in a well-publicized sales
offering allowing sufficient time for attendance. It is assumed the equipment is sold ‘as is” and
“where is” with the timely removal being the responsibility of the purchaser. Additionally, the
FMVS would consider the following parameters:
Under this premise, an allowance of up to____________(
) months would be allowed to complete all
required arrangements for conducting a properly advertised, competently marketed and handled public sale
and assumes:
•The passing of full title, free and clear of any liens or encumbrances.
Two or more interested purchasers, speculators, dealers or users would be attracted to the public
sale and actively bid for the assets appraised.
•The buyer of the assets would be responsible for all costs of rigging/removal and associated
transportation costs to another location.
•Any damage or property alterations necessary to facilitate the removal of the assets would be
repaired or compensation made by the buyer.
•Market/Economic conditions at the time of sale would be comparable to those on the Effective
Date of Valuation.
Final M & E Value Conclusions:
Total (CNIP) - $
Total (FMVIP) - $
Total (FMVS) - $
The appraiser is asked to consider all applicable approaches to value, but to develop only those approaches
necessary to produce a credible and persuasive appraisal.
_______________________
Signature of M&E Appraiser
____________
Date
_____________________
Print Name
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SUMMARY OF VALUES - Section A
The property appraised in this report is known by the M&E appraiser as property owned by the following
claimants:
Claimant (Indicate Owner or Tenant)
Moveable Items
(Total of Values from
Sections G)
FMVIP
FMVS
Non-Moveable Items
(Total of Values from
Section H)
FMVIP
FMVS
NOTE: Use Consecutive Page Numbers for additional pages through Section A
Machinery & Equipment Valuation Report Form Section A – Page – 1
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INTENDED USE AND PROPERTY FACTS - Section B
Intended User and Intended Use.
The Intended User of this report is the Redevelopment Authority of the City of Philadelphia.
The intended use of this report is for the acquisition of property by the Redevelopment Authority of the
City of Philadelphia for related projects under the Pennsylvania Eminent Domain Code.
Brief Description of Property Appraised and Ownership
Use of the Subject Property on the Effective Date of Valuation (Brief History & Use Description)
NOTE; Use Consecutive Page Numbers through the end of Section B
Machinery & Equipment Valuation Report Form Section B - Page -1
83
METHODOLOGY - Section C
Summarize the Methodologies used to develop the Appraisal:
NOTE: Use Consecutive Page Numbers through the end of Section C
Machinery & Equipment Valuation Report Form Section C - Page - 1
84
ITEM DESCRIPTION - Section D
Item Number & Description of
Personal Property
CN
CNIP
%
Good
FMVIP
FMVS
Age Life Analysis
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
Moveable: ___yes ___no
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
Actual Age:
Attachment:
Effective Age:
Remaining Life:
Condition:
Power Supply/type:
NOTE: Use Consecutive Page Numbers through the end of Section D
Machinery & Equipment Valuation Report Form Section D - Page -1
85
VALUATION DOCUMENTATION - Section E
Cost and Market Data Sources
Item Number and Abbreviated Description of Person Property
Source of Data
NOTE: Use Consecutive Page Numbers through the end of Section E
Machinery & Equipment Valuation Report Form Section E – Page – 1
86
PHOTOGRAPHS - Section F
Attach Photographs of all major Items or Lots of Items Valued in the report. Each photo must be
identified to coincide with the item or lot number Valuation Sections (Original, Digitized or Scanned
Color Photos Only)
NOTE; Use Consecutive Page Numbers through the end of Section F
Machinery & Equipment Valuation Report Form Section F- Page —1
87
SUMMARY LIST OF MOVEABLE ITEMS - Section G
List and describe all MOVEABLE Items with concluded FMVIP and FMVS
Owner, Claimant, Tenant ________________________
(NOTE: Begin a new page for each owner, claimant or tenant)
Item Number & Abbreviated Description of Personal Property
FMVIP
FMVS
NOTE: Use Consecutive Page Numbers through the end of Section G
Machinery & Equipment Valuation Report Form Section G – Page -1
88
SUMMARY LIST OF NON-MOVEABLE ITEMS - Section H
List and describe all NON-MOVEABLE Items with concluded FMVIP and FMVS
Owner, Claimant, Tenant __________________________________
(NOTE: Begin a new Page for each owner, claimant or tenant)
Item Number & Abbreviated Description of Personal Property
FMVIP
FMVS
NOTE: Use Consecutive Page Numbers through the end of Section H
Machinery & Equipment Valuation Report Form Section H - Page — 1
89
Machinery & Equipment Valuation
CERTIFICATION - Section I
Parcel Number/Address:
Owner(s): (see Sections G & H for breakdown if there are more than one owner)
I hereby certify, that to the best of my knowledge and belief
The statements of fact contained in this report are true and correct.
That the analysis, opinions, and conclusions were developed in conformity with the Uniform
Standards of Professional Appraisal Practice (USPAP).
That such appraisal has been prepared in conformity with the USPAP and Appraisal Procedure &
Guidelines of the Redevelopment Authority of the City of Philadelphia.
That the appraisal report is subject to the appraisal review process in conformity with USPAP,
applicable state and federal law, regulations and public policy.
The reported analyses, opinions, and conclusions are limited only by the reported exceptional
assumptions and limiting conditions and are my personal, impartial, and unbiased professional
analyses, opinions, and conclusions. I have no present or prospective interest in the property that
is the subject of this report and no personal interest with respect to the parties involved.
I have no bias with respect to the property that is the subject of this report or to the parties
involved with the assignment. My engagement in this assignment was not contingent upon
developing or reporting predetermined results.
My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this report.
I have made a personal inspection of the property that is the subject of this report.
The property owner(s) and any tenant owners of buildings, structures or other improvements
located on the property, or their designated representatives, were provided an opportunity to
accompany the appraiser on the inspection of the property. The following owners or tenants did
accompany the appraiser on the inspection.
The following owners or tenants did not accompany the appraiser on the inspection.
Except as NOTED below, no one provided significant personal property appraisal assistance to the
person signing this certification.
Date(s) of Inspection of the Subject Property:
Effective Date of Value:
COMMENTS:
________________________________
Signature of M&E Appraiser
___________
Date
________________________
Type or print name
Machinery & Equipment Valuation Report Form Section I -Certification Page
90
EXHIBIT “H”
ITQ Questions & Answers
91

COVER SHEET INVITATION TO QUALIFY (ITQ) APPRAISAL SERVICES

Transcription

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