Staff recommends the City Council awards a professional services contract for Hail Project Management Services related to the August 2019 Hail Insurance Claim to Quest Services Corporation.

The City of Billings has submitted an insurance claim for over $4 Million of identified damage to multiple City-Owned buildings due to weather-related damage sustained in 2019. The City of Billings Facilities Services Division issued an RFP for Project Management Services to assist in managing construction repair projects. The services provided will vary with each specific project, but will include investigation, design, permitting, bidding, and construction administration services.

The RFP was advertised on August 21st and 28th, 2020 and 4 proposals were submitted by September 11th, 2020. A selection committee reviewed the proposals. Quest Services Corporation was selected based on the following categories:

•            Experience of Supplier with Project Management Services for weather-related exterior building damage
•            Experience working with insurance companies on building repair claims
•            Experience with City of Billings bidding policies and procedures
•            Knowledge of state and city building codes, permitting, and inspection requirements
•            Ability to produce accurate and complete design and specification documents for permitting, bidding, and construction
•            Capacity to assume new business
•            Perceived ability to meet the City of Billings requirements
•            Qualifications of staff who would provide these services
•            Company’s financial stability
•            Ongoing support
•            Reporting capability
•            Ability to conduct on-site inspections prior to, and during construction
•            Process Improvements
•            Compliance with the City of Billings Terms and Conditions
•            Price

Quest Services Corporation was found to have the most relevant experience in the area of insurance claims and acting as the owner's agent for multiple public and municipal organizations.
 

City Council may:

• Award a professional services contract for the 2019 Hail Claim Project Management Services; or
• Do not award a professional services contract and provide direction to staff

The cost for project management services is included in the City's hail settlement award and additional expenses for this service will be reimbursed by the City's insurance carrier for insurance claim projects. The City has been awarded a settlement amount of $3,274,147.06 based on 'Actual Cash Value', which is the depreciated value of the damaged asset. The total estimated 'Replacement Cost Value' for the entire scope of damage is nearly $4.8 Million, which will be reimbursed to the City as the projects are completed and actual costs are submitted. It is in the City's best interest to retain the services of an experienced project manager to ensure the City receives its full reimbursement for these repairs.

The consultant's costs will be incurred on an hourly basis based on the pricing matrix they provided below:
 
 

Service	Hourly Rate
Initial Survey and/or Investigative Report	$125.00
Design Documents	$90.00
Permitting and Bidding	$90.00
Construction Administration	$125.00
Project Close-Out	$90.00

Attached is a letter from the City's Insurance Broker regarding the benefits of hiring a consultant to act as our agent in this process and also confirming that the insurance company, Affiliated FM, will reimburse these costs.