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Home My WebLink AboutC22690C Amendment 2 - University Park CFD 2005-1'u- IC-1 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE CONTRACT AMENDMENT NO. 2 TO CONTRACT NO. C22690-C WITH MUNIFINANCIAL FOR ADDITIONAL PROFESSIONAL SERVICES ASSOCIATED WITH THE UNIVERSITY PARK CFD 2005-1 DISTRICT FORMATION SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING CONSULTANT: MUNIFINANCIAL 27368 VIA INDUSTRIA, STE. 110 TEMECULA, CA 92590 DATE: FEBRUARY 23, 2006 CONTENTS: CONTRACT AMENDMENT NO. 2 (CONTRACT C22690-C) Recommendation: By Minute Motion, that the City Council approve Contract Amendment No. 2 to Contract No. C22690-C with Munifinancial in a total amount not - to -exceed $6,000 for provision of additional professional services. The remaining $6,000 necessary for the contract amendment is available in Trust Account No. 610-0000-228-2100, per the Reimbursement Agreement (Contract No. C22690-A) with the developers of the University Park CFD. Discussion: On 24 December 2004, the City Manager approved a contract to MuniFinancial in the amount of $24,000 for provision of professional services related to the district formation costs associated with University Park Community Facilities District 2005-1. A change order in the amount of $5,500 was approved by City Council on December 8, 2005. Charges for these services are paid from the deposit made by the developers of the district, per the Reimbursement Agreement (Contract No. C22690-A). The formation is approximately 90% complete and MuniFinancial has been performing the required services in a satisfactory manner. During the course of district formation, numerous adjustments to the configuration of the district due to negotiations with the developers, and modifications in their plans of development have impacted work activities on the consultant's critical path. Late adjustments to the configuration, list of improvements, and cost estimates have required additional analysis by the consultant. Bond Counsel, representing the City, requested Staff Report Approve Contract Amendment No. 2 to MuniFinancial Page 2 of 2 February 23, 2006 preparation of detailed analysis in several forms, to support their work on the allocation agreement being executed between the City and the developers on the project. Finally, as a result of the appraisal, it was necessary to obtain an updated tax spread to support the tax rates being proposed for the commercial portion of the project. As a result of the increased scope of work, the consultant contract warrants modification to compensate for the additional professional services required. Contract Amendment No. 2, in the amount of $6,000, provides compensation for additional services associated with the increase in scope. These services include additional work related to revised district configuration and changes to the facilities cost estimates to be included in the Rate and Method of Apportionment. Staff recommends approval of the subject contract amendment in order to facilitate the completion of the University Park CFD 2005-1. Submitted by: 0 Yrigoy Director Re elopment/Housing Approval: Paul S. Gibson, Director of Finance Approval: G ,JdIs'lir McCarthy ACM redevelop Carlos L. O ga, City Manager GARDA\Veronica Tapia\Word Fdes\Staff Reports\Staff Report -Muni Univ Park 2.doc fill« PAILM DESERT tON RAC'T AMENDMENT Contract Purpose: University Village CFD Contractor's Name: Muni Financial Contract # / P.O. # C22690C Change Order No. Contingency: YES Account No. Project No. I NO 610-0000-228-2100 You are hereby requested to comply with the following changes from the contract plans and specifications: DESCRIPTION OF CHANGES DECREASE INCREASE (Supplemental Plans and Specifications Attached) In Contract Price In Contract Price Additional tasks NTE $6,000.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: $6,000.00 TOTAL BUDGET FOR PROJECT: + 29,500.00 CONTINGENCY: Less: Expend. & Encumb. To Date: - 29,600.00 Amount Approved by Council: + Less: This Change Order Amount: - 6,000.00 Less: Prior Change Order(s): - BALANCE OF BUDGET Less: This Change Order: - REMAINING FOR PROJECT:-6,000.00 Balance Remaining of Contingency: 0.00 The amount of the Contract will be (B- ...,_ ..) Increased by the Sum of: Six Thousand and NO/100 Dollars ($ 6,000.00 ). This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1. REQUESTED BY: DEPARTMENT HEAD 3. CERTIFIED 2. ACCEPTED BY: CONTRACTOR FUNDS AVAILABLE: 4. APPROVED BY: 2/23/06 FINANCE DIRECTOR JIM FERGUSON, MAYOR Date Approved NOTE: No payments will be made prior to City Manager and Council approval 2/23/06 CITY MANAGER Date Approved Amend-CPD February 13, 2006 Mr. Paul S. Gibson Director of Finance/City Treasurer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 .Re: MuniFinancial Fee Increase for Community Facilities District Formation Services Dear Paul: As we move toward the conclusion of the University Park CFD formation project, we have encountered some changes in direction on the project that required us to perform work beyond the original scope of services. As you and I discussed some time ago, since our agreement provides for adjustments to our fee based on changes to the scope of services for the project, we would apprise you of any changes in writing, and request the necessary change in our contract amount. As such, the purpose of this letter is to request a fee increase for services we are currently providing to the City for the University Park Community Facilities District Formation project. Our current fee for the project is $29,500, as adjusted by our first fee increase letter, executed in December 2005. We request that this fee be increased by $6,000 to a total of $35,500 for the project. As you are aware, fees for these services are recoverable from the developer, and from the bond proceeds for this project. This increase is needed due to following. • There were late adjustments to the configuration of the district and to the list of improvements and cost estimates for the facilities to be financed in the district. • MuniFinancial had to prepare additional analysis and an additional tax spread to help determine if one of the developers could finance additional fees for their parcel. It was decided after reviewing the data, that the gates would remain the same. • MuniFinancial was asked by counsel representing the City to prepare detailed analysis in several forms, to support their work on the allocation agreement being executed between the City and the developers on the project. We also participated in several conference calls on this matter. • As the result of the updated appraisal, we were asked to prepare another updated tax spread to support the tax rates being proposed for the commercial portions of the project. I have enclosed two (2) original amendments to our current agreement. If acceptable, please execute both copies and return one to me in the envelope provided for your convenience. Please contact me at (951) 587-3528 if you have any questions. Thank you and we look forward to the successful bond issue for this project. Sincerely, MuniFinancial l Chris Fisher, Principal Consultant Financial Consulting Services ADDENDUM 2 TO AGREEMENT FOR PROFESSIONAL SERVICES The Agreement between M- uniFinancial and the City of Palm Desert for Community Facilities District Formation Services dated December 24, 2004 (hereinafter the "Agreement") is amended as follows: Exhibit A of the Agreement entitled "Scope of Services" is amended to include the following additional tasks: • Additional work related to revised district configuration and changes to the facilities cost estimates to be included in the Rate and Method of Apportionment. Exhibit B of the Agreement entitled "Fees for Services" is amended to include an additional fee of $6,000, for a project total of $35,500. All other terms and conditions contained in the Agreement shall remain in full force and effect. Executed this 7th day of February 2006. MuniFinancial City of Palm Desert B �'' _ /-� s F ank G. Tripepi Jim Ferguson Title: President & CEO Title: Mayor Address: 27368 Via Industria, Suite 110 Temecula, California 92590-3661 Address: 73-510 Fred Waring Drive Palm Desert, California 92260-2578