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HomeMy WebLinkAboutR23070 Commercial Diversified, Inc. - Community Room for Catalina Gardens and Pueblo ApartmentsContract No. R23070 PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AWARD OF CONTRACT NO. R23070 TO COMMERCIAL DIVERSIFIED, INC. FOR THE CONSTRUCTION OF A COMMUNITY ROOM FOR CATALINA GARDENS AND THE PUEBLOS APARTMENTS SUBMITTED BY: EZELL JAMES, HOUSING PROGRAM COORDINATOR CONTRACTOR: COMMERCIAL DIVERSIFIED, INC. 72033 TWENTY-NINE PALMS HWY TWENTY-NINE PALMS, CA 92277 DATE: JANUARY 27, 2005 CONTENTS: CONTRACT NO. R-23070 ELEVATION AND FLOOR PLAN Recommendation: By Minute Motion, that the Agency Board: 1. Award Contract No. R23070 to Commercial Diversified, Inc. in the amount of $990,000.00 for the construction of a Community Room for Catalina Gardens and the Pueblos Apartments; 2. Authorize the Finance Director to set aside the amount of $99,000.00 as a ten percent contingency (use of contingency requires additional action); 3. Authorize the Finance Director to appropriate $1,089,000.00 from unobligated Project Area No. 1 Funds to Account No. 850-4433-433- 4001; and 4. Authorize Chairman to execute all necessary documents. Executive Summarv: Approval of the staff recommendation will allow construction to commence on the Community Room for Catalina Gardens and the Pueblos Apartments. Rejection of the staff recommendation will result in significant delays in the construction of this project. G:\RDA\Deanna Baugher\EZELL JAMES STAFF REPORTS\1-5-05 Staff Report.doc Contract No. R23070 Staff Report Award of Contract for Construction of Community Room - Catalina and Pueblos Apartments Page 2 of 2 January 18, 2005 Discussion: On June 26, 2003, the Agency Board awarded a contract to Kristi Hanson, Inc. for architectural services to design a Community Room for Catalina Gardens and the Pueblos Apartments. Ms. Hanson has completed this phase of the project. Catalina Gardens and the Pueblos Apartments are senior complexes of 72 and 15 units respectively, with approximately 100 residents in total. The new Community Room will be approximately 2982 square feet in size, and will contain a kitchen with serving counter, dining area, TV room, computer room, office, two storage areas and men's and women's restrooms. In addition, there will be an outdoor patio area with a barbecue. On September 23, 2004, the Agency Board authorized the City Clerk to advertise and call for bids for the construction of a Community Room for Catalina and the Pueblos Apartments. On January 12, 2005, the bid opening took place and the bids received were as follows: Name Amount Doug Wall Construction (Palm Desert) $ 1,546,000.00 Commercial Diversified, Inc. (Twenty-nine Palms) $ 990,000.00 Recommendation is hereby made to accept the bid of Commercial Diversified, Inc. Submitted by: tr c�- Ezell 5aies Housing Programs Coordinator Approval: f G J M tin cCarthy CM/ edevelopment Carlos L. OrtegV, Executive Director Department Head: Dave Yri Director.,", Redevelopment/Housing 641t,101� Paul S. Gibson, Director of Finance CONTRACT NO. R-23070 AGREEMENT THIS AGREEMENT is made and entered into this 27th day of January 2005, by and between the Palm desert Redevelopment Agency of Palm Desert, California, hereafter called "OWNER," and Commercial Diversified, Inc., hereinafter called "CONTRACTOR." WITNESSETH RECITALS: CONTRACTOR has submitted to OWNER its CONTRACTOR's Proposal for the construction of OWNER Project, 1. CATALINA PUEBLOS COMMUNITY ROOM — 73-750 CATALINA WAY, PROJECT NO. 960-04, CONTRACT NO. R-23070 in strict accordance with the Contract Documents identified below and OWNER has accepted said Proposal. 2. CONTRACTOR states that it has re-examined its CONTRACTOR's Proposal and found it to be correct, has ascertained that its subcontractors are properly licensed and possess the requisite skill and forces, has examined the site in its Proposal to be paid as provided in the Contract Documents. AGREEMENT: IT IS AGREED BY THE PARTIES AS FOLLOWS: 1. Contract Documents: The entire contract consists of the following: (A) The NOTICE INVITING SEALED BIDS; (B) The INSTRUCTION TO BIDDERS; (C) The CONTRACTOR'S PROPOSAL; (D) The INFORMATION REQUIRED OF BIDDER; (E) The NONCOLLUSION AFFIDAVIT; (F) The BIDDERS BOND; (G) The AFFIRMATIVE ACTION PROGRAM; (H) The ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS; (1) PALM DESERT REDEVELOPMENT AGENCY CONTRACTOR CERTIFICATION REGARDING STATUS AS A SECTION 3 BUSINESS CONCERN; (J) The CERTIFICATION OF BIDDER AND QUALIFICATIONS; (K) The CONTRACTOR'S LICENSE; (L) This AGREEMENT; (M) The WORKER'S COMPENSATION CERTIFICATION; (N) The WORKER'S COMPENSATION/EMPLOYERS LIABILITY ENDORSEMENT; (0) The PAYMENT BOND; (P) The PERFORMANCE BOND; (Q) The GENERAL CONDITIONS AIA DOCUMENT A201; ( R) The STANDARD SPECIFICATIONS as modified in other portions of the Contract Documents; (S) The PLANS; (T) The ADDENDA NOS. N/A; (U) The Determination of Prevailing Wage Rates for Public Work; (V) Any Change Orders issued; (W) Any additional or supplemental specifications, notices, instructions and drawings issued in accordance with the provisions of the Contract Documents. All of said Documents presently in existence are by this reference incorporated herein as if K-1 CONTRACT NO. R-23070 here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. 2. CONTRACTOR shall commence the work within ten calendar days after the date of the Notice to Proceed and will do all things necessary to construct the work generally described in Recital No. 1 in accordance with the Contract Documents and will complete said work for the on -site improvements within 180 calendar days from the Notice to Proceed date to the satisfaction of the ARCHITECT. 3. That the CONTRACTOR agrees to indemnify, defend, and hold harmless the OWNER, and its officers, and employees, and the ARCHITECT from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers, and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Agreement. 4. Attention is directed to Section 6-9, "Liquidated Damages" of the Standard Specifications and is hereby amended to substitute the Palm Desert Redevelopment Agency in place of the Agency. Liquidated damages shall be $200,000 dollars per calendar day of delay. 5. Should any litigation or arbitration be commenced between the parties concerning the works of improvements as referenced herein, the prevailing party in any such litigation, being the OWNER or the CONTRACTOR, should be entitled to a reasonable sum for attorney's fees incurred in any such litigation relating to this Contract. 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 7. CONTRACTOR shall be paid in the manner set forth in the Contract Documents the amount of its proposal as accepted by OWNER, subject to such additions and deductions as may be made pursuant to the Contract Documents and applicable law. 8. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes CONTRACTOR's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes Contractor's CERTIFICATION as follows: "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for worker's compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract." K-2 CONTRACT NO. R-23070 IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. PALM DESERT REDEVELOPMENT AGENCY in Buford A. Crites, Chair Attest: Rachelle D. Klassen, Secretary Approved as to form: Dave Erwin, City Attorney COMMERCIAL DIVERSIFIED, INC. (Signature to be notarized) Attest: Title Title K-3 CONTRACT NO. R23070 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, the Palm Desert Redevelopment Agency (sometimes referred to hereinafter as "Obligee") has awarded to Commercial Diversified, Inc. (hereinafter designated as the "CONTRACTOR"), an agreement dated January 27, 2005, described as follows: CATALINA PUEBLOS COMMUNITY ROOM — 73-750 CATALINA WAY, PALM DESERT, CALIFORNIA, PROJECT NO. 960-04, CONTRACT NO. R-23070, (hereinafter referred to as the "Contract"); and WHEREAS, said CONTRACTOR is required to furnish a bond in connection with said Contract, and pursuant to Section 3247 of the California Civil Code; NOW, THEREFORE, we, Commercial Diversified, Inc., the undersigned CONTRACTOR, as Principal, and a corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the Palm Desert Redevelopment Agency and to any and all persons, companies or corporations entitled to file stop notices under Section 3181 of the California Civil Code, in the sum of Nine Hundred Ninetv Thousand and NO/100 Dollars ($990,000.00), said sum being not less than one hundred percent (100%) of the total amount payable by the said Obligee under the terms of the said Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said CONTRACTOR, his or its heirs, executors, administrators, successors or assigns, or Subcontractors, shall fail to pay for any materials, provisions or other supplies, implements, machinery or power used in, upon, for or about the performance of the Public Work contracted to be done, or to pay any person for any work or labor of any kind, or for bestowing skills or other necessary services thereon, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said CONTRACTOR and his or its Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor as required by the provisions of Sections 3247 through 3252 of the Civil Code, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board or Internal Revenue Service from the wages of employees of the CONTRACTOR or his or its Subcontractors, the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In addition to the provisions herein above, it is agreed that this bond will inure to the benefit of any and all persons, companies and corporations entitled to serve stop notices under Section 3181 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the said Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, N-1 CONTRACT NO. R23070 extension of time, alteration or addition to the terms of the Contract or to the Specifications. No final settlement between the Obligee and the CONTRACTOR hereunder shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied. CONTRACTOR and Surety agree that if the Obligee is required to engage the services of an attorney in connection with the enforcement of the bond, each shall pay Obligee's reasonable attorney's fees incurred, with or without suit, in addition to the above sum. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20 PRINCIPAL/CONTRACTOR: (Typed Name of CONTRACTOR) By: (Signature) (Typed Name and Title) The rate of premium on this bond is SURETY: (Typed Name of Surety) In (Signature of Attorney -in -Fact) (Typed Name of Attorney -in -Fact) The total amount of premium charged: $ (the above must be filled in by corporate surety). per thousand. IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or project is financed, in whole or in part, with federal, grant or loan funds, it must also appear on the Treasury Department's most current list (Circular 570 as amended). THIS IS A REQUIRED FORM. N-2 CONTRACT NO. R23070 Any claims under this bond may be addressed to: (Name, Address and Telephone No. of Surety) (Name, Address and Telephone No. of agent or representative for service of process in California if different from above N-3 CONTRACT NO. R23070 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That whereas the Palm Desert Redevelopment Agency has awarded to Commercial Diversified, Inc.after designated as the "Principal," a contract for: CATALINA PUEBLOS COMMUNITY ROOM -- 73-750 CATALINA WAY, PALM DESERT, CALIFORNIA, PROJECT NO. 960-04. CONTRACT NO. R-23070. WHEREAS, said Principal is required under the terms of said contract to furnish a good and sufficient bond for the performance of said contract: NOW THEREFORE, WE, the Principal, and as Surety, are held and firmly bound unto the Palm Desert Redevelopment Agency hereinafter called the OWNER, in the penal sum of Nine Hundred Ninetv Thousand and NO/100 Dollars ($990,000.00), being 100% of the contract amount in lawful money of the United States of America for the payment of which sum well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the above bounded Principal, his executors, heirs, administrators, and successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants and agreements in the said contract and any alterations thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the OWNER, its officers and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and virtue. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to terms of the contract or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the contract or to the work or the specifications. Should it become necessary for the OWNER to institute a lawsuit or any other legal proceeding to enforce the terms and conditions of this bond, then all costs of said proceeding, including attorneys' fees, shall be awarded to the prevailing party. O-1 CONTRACT NO. R23070 IN WITNESS WHEREOF, identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on this day of , 2004. SURETY PRINCIPAL BY: BY: INSURANCE COMPANY and/or AGENT ADDRESS TELEPHONE NUMBER O-2 Z 0 w I fll CATAUN"PUEBLOS COMMUNITY ROOM CATALINA GARDENS Palm Desert, Callfomla 92260