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Home My WebLink AboutC23340 - CA2 - Sec 29 Dist. FormationREQUEST: SUBMITTED BY: CONSULTANT: DATE: CONTENTS: Recommendation: - CITY OF PALM DESERT STAFF REPORT APPROVE CONTRACT AMENDMENT NO. 2 TO CONTRACT NO. C-23340 WITH MUNIFINANCIAL FOR ADDITIONAL PROFESSIONAL SERVICES ASSOCIATED WITH THE SECTION 29 DISTRICT FORMATION DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING MUNIFINANCIAL 27368 VIA INDUSTRIA, STE. 110 TEMECULA, CA 92590 JANUARY 11, 2007 CONTRACT AMENDMENT NO. 2 (CONTRACT NO. C23340) By Minute Motion, that the City Council approve Contract Amendment No. 2 to Contract No. C23340 with MuniFinancial in a total amount not -to - exceed $24,000 for provision of additional professional services associated with the Section 29 District Formation. The remaining $24,000 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 23 February 2006, the City Council approved Contract Amendment No. 1 to MuniFinancial increasing the amount of the contract to $61,000 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 75% complete and MuniFinancial has been performing the required services in a satisfactory manner. During the course of district formation, numerous repeated 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, additional extensive analysis and calculation of distribution of construction bids, and Staff Report Approve Contract Amendment No. 2 to MuniFinancial Page 2 of 2 January 11, 2007 requests for different assessment scenarios based upon varying scenarios. Simultaneously, there have been an additional six 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. 2, in the amount of $24,000, provides compensation for additional services associated with the increase in scope. These services include additional work related to revised district configuration and analysis of construction bids with calculations 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 Yrig n Director development/Housing Approv, Approval: in McCarthy Redevelop Oh/72, Paul S. Gibson, Director of Finance Carlos L..brtega ity Manager ^,ITY COUNCIL ACTION: APPROVED, ✓ DENIED, RECEIVEDOTHER. MEET G DATE AYES: NOES: nlnA)/ ,ABSENT: ABSTAIN: NO tOr VERIFIED BY: iQ Tel 1 r Original on File withiCity Clerk's Offire G \RDA\Veronica Tapia\Word Files\Staff Reports\Staff Report -Muni Section 29-2 doc ��'�'�� ontract#/P.o.# C23340 AmendmenU 2 � , �F ��i��` Change Order No. Contingency: YES NO X Contract Purpose Section 29 AD Formation Account No. 610-0000-228-2100 ConsultanPs Name MuniFinancial Project No. Address: 27368 Via lndustria, Ste. 110; Temecula, CA 92590 vendor No. 391 You are hereby requested to comply with the following changes from the contract plans and specifications: DECREASE INCREASE DESCRIPTION OF CHANGES In Contract Price In Contract Price Additional professional services for Section 29 AD formation 24,000.00 TOTALS: - 24,000.00 NET CHANGE IN CONTRACT PRICE: 24,000.00 JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 61,000.00 CONTINGENCY: Less: Expend. & Encumb. To Date: - 61,000.00 Amount Approved by Council: + Less:This Change Order Amount: - 24,000.00 Less: Prior Amendment(s): - BALANCE OF BUDGET Less: This Amendment: - REMAINING FOR PROJECT: 24,000.00 Balance Remainin of Contin enc : - The amount of the Contract will be (Bes�ease�) Increased by the Sum of: Twentv-four Thousand and N0/100 Dollars ($24,000.00 ). G:\RDA\Laurel Knutson\WorG Data\ROAVlmndmts-Chng Ordrs\MuniFlnandal C23340-2.doc Continued on reverse ... Contract C23340 Amendment No. 2 Continued from front This Contract Amendment covers changes to the subject contract as described herein. The consultant shall perform all work as necessary or required to complete the Contract Amendment items for a lump sum price agreed upon befinreen the Consultant and the City of Palm Desert, otherwise referred to as Owner. Contract Time Extension Days. Revised Contract Total Eiahtv-five Thousand and NO/100 Dollars . The undersigned Consultant approves the foregoing Contract Amendment # 2 as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Contract Amendment # 2 . The Consultant agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Contract Amendment items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Contract Amendment shall be effective when approved by the Owner. Execution of this Contract Amendment by the Consultant constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Contract Amendment, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, and loss of productivity, as well as any and all consequential damages. 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: 2. ACCEPTED BY: DEPARTMENT HEAD CONSULTANT 3. CERTIFIED FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR RICHARD S. KELLY, MAYOR Date Approved NOTE: No payments will be made prior to City Manager and Council approval CITY MANAGER Date Approved G:�RDA\Laurel Knutson\Wad Data\RDA�Amndmts-Chng Ordrs\MuniFinanaal C23340-2.doc Continued on reverse ... MuniFinancial December 21, 200G :�1r. Paul S. Gibson Director of Finance/City Treasurer City of Palm Desert 73-510 Fred Waring Drive I'alm Desert, California 92260 Re: MuniFinanrial Fee Increase for Local Improvement District(LID)Formation Services for the Section 29 Project Dear I'aul: l�s }�ou and I recently discussed, the purpose of this letter is to request a second fee increase for the Section 29 ;�ssessment District Formation project. Since our agreement pro�ides fc�r an adjustment to our fee based on adjustments to the scope of ser�•ices for the project, I indicated that I would apprise you of an�� changes in writin�, and request the necessar}� change in our contract amount. As such, the purpose of this letter is to request a fee increase for services we are currendy pro�•iding to the Cit�• for the Secrion 29 I.ocal Improvement District (I.ID) Pormation project. (�ur current amended fee for the project is �G1,000. We reyuest that this fee be increased by �24,000 to a total of �85,000 for the project. :1s }�ou are aware, fees for these sen�ices are recoverable from the developers, and from the bond proceeds for this project. This increase is needed due to following: • There have been repeated changes in development plans and requests for new assessment spreads based upon changing scenarios, negotiations among the developers, and negotiations between the City, School District and the developers. We prepared special cost estimates for City and School District contributions, and detailed analysis for several of the developers to explain the assessments, and gain their support, particularl�� I��1acl.eod and Rilington. In addition, due to the extended time frame of this project, databases and spreads pre�-iousl�� completed required updates due to the release of new Counri� secured roll information. • "1'he construction bids for the project were received without all of the necessarS� details. Because of the need to produce an F,ngineer's Report in a very short period of time fr�m the receipt of the bids, we performed cxtensive anal}'sis and calculation, be}'ond�vhat is normall}' required, to apporrion the cost of the improvements to the components of the project. "I'his was necessary so that we could assign the benefit for the improvements ro the �arcels in the district. • We have attended six (6) additional meerings thus far for the project, since the last update, primarily at the City. This is beyond the number outlined in the scope, and we anticipate addirional meetings and attendance at City Council meean� as the district f�rmarion progresses. 273G8 I'ia lndu.rtriu,Ste. 110 Tel. (951)�87-3�00 Temecu/a, Califorrria 92�90 wu�u�.muni.�om 1�ax(9�1) 587-j�1(1 .'I�Ir.PaulS. GiGron, C7t}�ojPalm De.rert Fee Inirea.re�orL.ocallmprovement Dirinct N�ormation Sen�iie.r De�emGer 21,2006 Puge 2 n(3 I have enclosed t�uo (2) original amendments to our current agreement. If acceptable, please execute both copies and return one to me in the em�elope provided for your con��enience. Please contact me at (951) 587-3528 if y�ou have any yuestions. Thank you and we look forward to the successful bond issue for this project. Sincerel��, l � � :�1L'tiIFt\.jtiCI_1I, Chris Pishcr, Principal Consultant Financial Consulting Services Group .I�lr. 1'ruil.l�. Gil��an. <�.r1��n/�I��dn�1)�-re�7 1•i�r Inrnvui•/i�i�I.nrr�/li�r�nr�c��riirnl 1)i.;/iirl Fornraliaii.Srir.�r<:-r 1�errmGrr''G, 101)/, 1'��{r i��/�i ADDENDUM 2 TO AGREEMENT FOR PROFESSIONAL SERVICES I}1C .'��YCcmcnr bcr��rcn �Iunil�inancia] anci thc Cin• of Palm Dcscrt for Local Impro�•cment I�isrrict (I.[f�) l�c�rmation Sen�ices dated llecember 30, 2OO� (hereinaft�r the"��greement") is amcncicci as t��li<>ws: L�.xhibit :1 c>f the :\�reement entitled "Sec>}�e c�f Services" is amended tc�include the follo�Ling adcliti<mal tasl:s: • :\clelit.ional wc.�ek relateci tc� COIlI1IlU1t1� chan�;es in the mmposiuon of the distriet, and the incrc;��in� numbcx c>f mcctings. I�.shil�it 13 c>f the .\�reement entitlecl "I�ees fc�r Sert-ices" is amencicd co include an additional fee c�f �,2-},UUII f<>r a ��r<>jcct t<>tal c�f SB�,OU(1. :Ul ��iher terms anci c<�nciiric>ns conrainecl in the ;1�;reement shall remain in full force ancl cffect. I:�ccutcd this da�� f 2UU MuniFinancial City of Palm Desert I��-: li��: I�ranl; (;. '1'ri��c��i Richard S. Kcllt• '1'itic: Presicicnt :ind (;I�O �I'idc: _1'Ia}'�i ;�ciclress: ?73C,H V'ia lnclust�ria, Suite 1 10 :lddress: 73-�10 I�rcci��'arin�l�ri��c "I'cinecula,Califr�rnia 92�90-3G�il Palm Dcscrt, California 922G0-2578