ADDENDUM # 1 To: File RFP for: New Affordable Home Construction Services

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1 Procurement Department ADDENDUM # 1 To: File RFP for: New Affordable Home Construction Services Please note the following change: Change #1 RFP closing date and time is changed to July 1, 2016 at 2:00 p.m. The following questions are asked: Question 1: In the specifications, Page A1 of each plan, Under Wood - Veneer - Faced Architectural Cabinets, Item #3 Base Bid: Question: There is no stated Manufacturer for the Cabinets. Does this imply that the Base Bid for the cabinets shown be Custom Made Cabinets by Builder's choice of Cabinet Maker? Answer 1: The cabinets must meet HUD Severe/Heavy Duty requirements and may either be custom or stock as per the builder s choice, builder must also provide an alternate deduct for standard factory produced cabinets. Question 2: Answer 2: Question 3: Answer 3: Question 4: Answer 4: Question 5: Answer 5: Question concerning repair of existing fence as show on the Site Plan: Visiting the Site we noticed that all the existing Cyclone Fencing was removed at the demolition phase. Does the Bid require the Builder to include in the proposal the installation of a new Cyclone Fence to the specifications shown for the existing fence on the Site Plan of each plan. Yes, adjacent properties may have common fence lines and shall reflect accordingly in the bids. In the specifications, Page A1 of each plan, Under Stile and Rail Wood Doors, Items #2, #8, #9: Question: Do these specifications only apply to the Door leading from the Interior of the house to the Garage Area. Or are you requiring all doors be Fire Rated? Only the door to the Garage is required to be fire rated. Could you please provide a plumbing fixture schedule? See MEP Specification References sheet A-1 for plumbing schedule. MEP specification reference #5; at minimum plumbing equal to Moen Chateau package for Kitchen and bathrooms. Please clarify the plumbing specs regarding piping to be used. PEX is to be used.

2 Question 6: Answer 6: Question 7: Answer 7: Question 8: Answer 8: Question 9: Answer 9: There are no ceiling joist nor rafter plans. It appears that trusses will be used. Please clarify. Builder may use Pre-Engineered Trusses or conventionally frame using 2x materials that meet code requirements. Please clarify what size stud is to be used as the architectural plans (see typical wall section) call for 2x4 studs, but the structural plans (see foundation plan notes section) call for 2x6 studs (see key note 6.2). Wall studs are S4S 2 X 4 nominal with plumbing walls being framed from 2x6 material. Please clarify what grade of shingle is to be used regarding the warranty term. Three-tab asphalt shingles are called for in the shingle specs (see section ), but there is not a warranty term specified. 30 Year warranty on shingles. Please clarify if the kitchen micro-hood will need to be vented to the outside. Yes. Question 10: There will be many site specific items that will add cost to each plan depending on whether or not they come into play or not. For example, fill dirt in order to properly build a pad for the new home s foundation. Other examples include flatwork, fencing, sod, trees, demolition, etc. How will these site specific items be accounted for since they cannot be captured in each individual plan s pricing? Will there be some form of composite pricing that may be drawn from when certain aspects arise? Answer 10: Demolition has been performed and sites leveled to receive new foundations. All drives and sidewalks are indicated on the plans. Fencing is indicated on the plans and there may be a deduct when adjacent properties are constructed and fences are shared. Question 11: Will the builder be responsible for city permit fees, surveyor fees, etc.? Answer 11: Yes. Question 12: Will there be any additional inspection fees that the builder will be responsible for (outside of city code inspections)? Answer 12: To our knowledge there are no additional inspection fees. Question 13: Please clarify the construction schedule that the contractor will be held to when it comes to how long will be allowed to build each home before liquidated damages are inflicted. Answer 13: Contractor shall provide the number of days to complete each home type with their bid which shall become the basis for the time frame.

3 Question 14: Please clarify the detail sheet show granite tops, the architectural show plastic laminate. Answer 14: Please bid laminate counter tops. Question 15: Has there been any geological site assessment, or soil samples taken to provide data used to generate slab designs? If not, how can we be confident in using the slab designs that are part of the plans? Answer 15: Yes, bid per the foundation plans. Foundation plans have been prepared by Structural Engineer Question 16: If homes are initially started in blocks of five, how will you replace units as they sell? If two out of the first five sold in say 60 days, would there be an opportunity to replace those with two more units or would we be waiting for the next block of five homes to start? Answer 16: The intent is to have five houses under construction to complete every six months; if two sell in 60 days these two will be replaced with two other address locations. SAHA must weigh demand with the number of new, vacant structures in the neighborhood. Our goal is to pre-sell as many houses as possible. Currently, market conditions indicate that there will be a lot of demand for these homes. However, pricing and other factors will impact the demand. Question 17: Can you provide any details on the level of security after hours that would be provided? SAPD? SAHA employees? A guy in a car all night? Answer 17: May be a combination SAPD and private security and security cameras in the homes. SAHA staff is consulting with our Director of Security to employ the most effective strategies necessary for securing building sites/vacant homes are after work hours. Question 18: In the narrative, certain specifications are mentioned but in the notes section of the blueprints, different specifications are chosen. Which is correct? For example, page 5 of the narrative says granite countertops are to be used, but the notes say formica. Answer 18: See previous answers above. Question 19: I would like a plat showing typical lot sizes. This is needed for several things. First can each plan fit on any lot with the exception of the plan used for corner lots? Second, the 2015 IECC has requirements for the construction of roof overhangs if they are closer than 5' to the property line. Third, landscaping is part of the specifications and we would need to know lot sizes to determine that cost. Answer 19: Yes each plan was designed to fit on any lot with the exception of the plan for the corner lot. Second, all overhangs are shown to be within setback lines. Please review site plans. The recorded Blueridge Subdivision plat (Volume 9548, page 18) shows lots dimensions with legal descriptions, setbacks, easements, topography, etc. can be viewed by contractors on Bexar County Clerk s website.

4 Question 20: With regard to landscaping, on page 5 it states that flowers and shrubs should be chosen from the SAWS recommendations. It does not state how many plants or flowers to plant. Do you have a number in mind? Answer 20: SAHA does not have a specific number in mind. Question 21: Page 21 states that the builder will provide a 2 year warranty. Is that the only warranty to be made? Are there any warranties for structure or foundation that are in excess of 2 years? Answer 21: Contractors shall provide a 10-year warranty on the foundation and structure and a two-year warranty on HVAC and water heater equipment. Contractor shall state the warranties on other items in their bids. Question 22: The plans show in many cases one type of resilient flooring for the main living and kitchen area and another type of sheet vinyl for the bathrooms. They transition in the doorway to the baths. The makers of these products do not provide any type of transitional pieces to change from one material to the other. Would it make more sense to continue the same material from the main part of the house into the bathrooms? Answer 22: Contractor shall provide a standard vinyl transition piece between the two flooring systems and submit to architect under , item 1. Question 23: What is the time frame allowed to complete construction of a home? The documents state that there is a $100 penalty assessed to the contractor for every day the project is delayed. Our typical contracts state that we cannot be held responsible for acts of god, unavailability of materials or labor, or other factors beyond our control in guaranteeing a time schedule. Answer 23: See answer to Question 13. Five houses every six months is the schedule from notice to proceed. The penalty will be only for the contractor that is failing to manage the construction process to complete the five houses in six months. Acts of God or other factors beyond the contractor s control will be adjusted accordingly on the time schedule. Question 24: Are there as builts available for the location of sewer laterals so our plumbers can hook up to those? Answer 24: No, see additional information below: Water Utility: Water meters were pulled. Water meter boxes are typically located at the property line in close proximity to the drive apron. Water taps are in place (from main line to meter box) Contractor should plan on installing line from Meter Box to House. Water Meter boxes are located at each lot for location. Sewer: Typically, located in front yard (toward middle of existing home footprint). Clean outs located there but may have to dig to find them. There is a possibility that the clean-outs were damaged when the foundation was demolished. Recommend that Contractor include a cost to run pipe from existing sewer line to house. Sewer taps are in place.

5 Electrical: Underground transformers exist. There is an existing conduit running from existing house to transformer. Electrical cables have been removed form conduit by CPS. Contractor shall extend existing conduit to new house. Question 25: How many awards does SAHA intend to make? Answer 25: SAHA expects to award to two contractors. SAHA reserves the right to award in its best interest including awarding to a single contractor or more than two. Question 26: Please clarify the HUD Safe Harbor requirements. Answer 26: The HUD Safe Harbor requirements are part of the RFP. The guidelines stipulate hard construction percentages: Overhead 2%; Profit 6%; and General Conditions 6%. Question 27: What is the expected date that the project will get funded? Answer 27: Funding is already in place. Question 28: When is the expected date that SAHA expects to start the initial houses (first six month period), and how many will be built at this start period? Answer 28: This depends upon the award date, current projection is late August Early September. Five houses per awarded builder based on two builders being awarded contracts. Question 29: Does SAHA already have qualified customers ready for move-in? Answer 29: SAHA has an active Home Ownership Program and may have participants interested in these homes, however; this has no bearing on this procurement as the builders have no responsibility for marketing or sales. Their only responsibility is to construct the homes. At least one bank has agreed to sponsor a Realtor tour once building starts. There will be 1-2 model homes, and, a meeting with lenders will be held in advance of the build as part of SAHA s marketing plan for these homes. Question 30: As per the RFP, it is stated that SAHA may not approve certain subcontractors; what is the general criteria SAHA will use to determine if a subcontractor is or is not eligible to work on this project or cannot be used on this project? Answer 30: Subcontractors must meet the same general requirements as the Prime this typically means they must be clear on the HUD Limited Denial List, the federal System for Award Management list, Comptroller of Public Accounts Debarred list, current on their Franchise taxes (if applicable), currently licensed and in good standing and not barred by SAHA. Question 31: As stated in the RFP, in the section Cost Control and Safe Harbor Standards, it is stated that 9% is the ceiling that a developer can charge concerning Profit and Overhead. Will this apply to the builders on this project? Answer 31: See previous clarification.

6 Question 32: If SAHA's desire is to have one of the selected builders build 5 houses in the first six months of the contract, does this mean that the builder must have the Bonding Capacity to bond all five homes individually at one time. Does the builder need to have the Bonding Capacity equal to the total Sales Price of the five homes? Answer 32: The builder must be able to bond all five homes at their Bid price for each home, not the sales price. Question 33: Concerning the number of days allowed for construction, when will the house be considered complete; after the house has passed all city inspections and deemed habitable or after SAHA has performed their final inspection and all items on the punch list are completed? Answer 33: A house will be considered completed after SAHA s final inspection and any punch list is completed. Question 34: What will be the allowable hours for construction, and will the contractor be allowed to work on Saturday and Sunday? Answer 34: Normal construction hours would be M-F 7:00 a.m. to 6:00 p.m. Saturday and Sunday work would have to be pre-approved through the project manager. Question 35: Concerning number of days for construction, does one count allowable work days only or are non-work days counted as well; such as Saturdays and Sundays? Answer 35: The time limit is 5 houses during a given 6 month period so this would include weekends and holidays within the given 6 month time period. By: CharlesRBode Date: Jun 22, 2016 Charles Bode Asst. Director of Procurement

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