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Home My WebLink AboutC23340 Amendment 1 Section 29 ADCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE CONTRACT AMENDMENT NO. 1 TO CONTRACT NO. C-23340 WITH MUNIFINANCIAL FOR ADDITIONAL PROFESSIONAL SERVICES ASSOCIATED WITH THE SECTION 29 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. 1 (CONTRACT NO. C23340) Recommendation: By Minute Motion, that the City Council approve Contract Amendment No. 1 to Contract No. C23340 with MuniFinancial in a total amount not -to - exceed $17,000 for provision of additional professional services associated with the Section 29 District Formation. The remaining $17,000 necessary for the contract amendment is available in Trust Account No. 610-0000-228-2100, per the Reimbursement Agreement (Contract No. C23200) with the developers of the Section 29 Assessment District. Discussion: On 27 January 2005, the City Council approved a contract to MuniFinancial in the amount of $44,000 for provision of professional services related to the district formation costs associated with Section 29 Assessment District. Charges for these services are paid from the deposit made by the developers of the district, per the Reimbursement Agreement (Contract No. C23200). The formation is approximately 50% 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. The most significant changes have been changes in the development scenarios, inclusion of an additional property to the district late in the process (Debonne), and requests for different assessment scenarios based upon varying scenarios. Specifically, the Noble Staff Report Approve Contract Amendment No. 1 to MuniFinancial Page 2 of 2 February 23, 2006 property was at first proposed to be included in the district, and then was partially taken out. Associated with this change, and the sale of the Noble property, was the revision of the assessment spread to account for the modified development plan, such as the changes to 35th Avenue and Dinah Shore. Simultaneously, there have been eleven meetings to which the consultant has been involved, which is far beyond the number outlined in the original scope. As a result of the increased scope of work, the consultant's contract warrants modification to compensate for the additional professional services required. Contract Amendment No. 1, in the amount of $17,000, 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 final Engineer's Report. Staff recommends approval of the subject contract amendment in order to facilitate the completion of the Section 29 Assessment District. Submitted by: Dave Yrigoye Director R evelopmentlHousing Approv ., ,,Oo,� Paul S. Gibson, Director of Finance Approval: 04 W%044 McCarthy AT Carlos L. Ortega ity Manager G:\RDA\Veronica Tapia\Word Files\Staff Reports\Staff Report -Muni Section 29.doc r,, it it f OF PAILM DESERT CONTRACT AAWNDN1E1Wf Contract Purpose: Section 29 Assessment District Formation Contractor's Name: Muni Financial Contract # / P.O. # C23340 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 $17,000.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 44,000.00 CONTINGENCY: Less: Expend. & Encumb. To Date: - 44,000.00 Amount Approved by Council: + Less: This Change Order Amount: - 17,000.00 Less: Prior Change Order(s): - BALANCE OF BUDGET Less: This Change Order: - $17, 000.00 REMAINING FOR PROJECT:-17,000.00 Balance Remaining of Contingency: 0.00 The amount of the Contract will be (Oeeressed) Increased by the Sum of: Seventeen Thousand and NO/100 Dollars ($ 17,000.00 ). 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 ... Amcnd-CPD February 13, 2006 Mr. Paul S. Gibson Director of Finance/City Treasurer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: MuniFinancial Fee Increase for Local Improvement District (LID) Formation Services for the Section 29 Project Dear Paul: As you and I discussed yesterday, the purpose of this letter is to request a fee increase for services we are currently providing to the City for the Section 29 Assessment District Formation project. Since our agreement provides for an adjustment to our fee based on adjustments to the scope of services for the project, I indicated that I 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 Local Improvement District (LID) Formation project. Our current fee for the project is $44,000.We request that this fee be increased by $17,000 to a total of $61,000 for the project. As you are aware, fees for these services are recoverable from the developers, and from the bond proceeds for this project. This increase is needed due to following: • There have been numerous changes in the development scenarios, inclusion of additional property to the district late in the process (the Debonne parcel), and requests for different assessment scenarios based upon changing scenarios. Specifically, the Noble property was at first proposed to be included in the district, and then was partially taken out. Associated with this change, and the sale of the Noble property, was the revision of the assessment spread to account for the modified development plan, i.e. the changes to 35`' Avenue and Dinah Shore. • We have attended 11 meetings thus far for the project, either at the MSA offices or the City. This is beyond the number outlined in the scope, and we still anticipate additional meetings and attendance at City Council as the district formation progresses. 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 Chris Fisher, Principal Consultant Financial Consulting Services a ADDENDUM 1 TO AGREEMENT FOR PROFESSIONAL SERVICES The Agreement between MunitFinancial and the City of Palau Desert for Local Improvement District (LID) Formation Services dated December 30, 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 continuing changes in the composition of the district, and the increasing number of meetings. Exhibit B of the Agreement entitled "Fees for Services" is amended to include an additional fee of $17,000, for a project total of $61,000. All other terms and conditions contained in the Agreement shall remain in full force and effect. Executed this 7th day of February 2006. MuniFinancial By: �i✓ �� r J Y Frank G. Tripepi Title: President & CEO Address: 27368 Via Industria, Suite 110 Temecula, California 92590-3661 City of Palm Desert By: Jim Ferguson Title: Mayor Address: 73-510 Fred Waring Drive Palm Desert, California 92260-2578