HomeMy WebLinkAboutR23390 - COMDYN PD, LLC - Fee Developer SvcsPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROPRIATE $1,245,490.88 FROM UNOBLIGATED HOUSING
SET -ASIDE FUNDS TO ACCOUNT NUMBER 870-4698-466-4001
FOR ADDITIONAL FUNDS AUTHORIZED BY THE AGREEMENT
BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY
(OWNER) AND COMDYN PD, LLC (DEVELOPER) FOR FEE
DEVELOPER SERVICES FOR AGENCY OWNED PROPERTY
(CONTRACT NO. R23390)
SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST
CONTRACTOR: COMDYN PD, LLC
2800 28th STREET, SUITE 206
SANTA MONICA, CA 90405
DATE: AUGUST 24, 2006
CONTENTS: EXHIBIT B.3 TO SUBJECT AGREEMENT
ACKLOWLEDGEMENT OF SECOND STAGE CONTRACTS WITH
GENERAL CONTRACTOR
Recommendation:
By Minute Motion, that the Agency Board:
1. Appropriate $1,245,490.88 from unobligated Housing Set -Aside Funds
to account number 870-4698-466-4001 for additional funds authorized
by the Agreement between the Palm Desert Redevelopment Agency
and ComDyn PD, LLC (Contract No. R23390); and
2. Ratify execution by the Executive Director.
Executive Summary
Section F of Exhibit B.3 of the Agreement between the Palm Desert Redevelopment
Agency and ComDyn PD, LLC, requires that the Agency authorize additional funds if
vertical, common area, and lot improvement construction costs exceed the Developer's
Budget of $13,494,284 for certain line items by less than 10% of the funds budgeted for
those improvements. The Agency has reviewed and approved the Developer's request
for additional funding and is seeking a budget adjustment in the amount of
$1,245,490.88. This additional funding does not exceed 10% of the $13,494,284
budgeted for these improvements.
Staff Report
ComDyn PD, LLC, Budget Adjustment to Contract No. R23390
Page 2
August 24, 2006
Discussion:
The Agency Board approved the Agreement between the Palm Desert Redevelopment
Agency and ComDyn PD, LLC, for Fee Developer Services for Agency Owned Property
Located in the City of Palm Desert on July 14, 2005. In anticipation of fluctuations in the
cost of construction materials, provisions were made in Section F of Exhibit B.3 to the
Agreement for an "Excess Amount" adjustment to the Stipulated Sum.
As part of the Agreement, the Developer submitted a Schedule of Values and
description of bidding protocol for the Second Stage Improvements as defined by the
Agreement. The Schedule establishes the line items of the General Contractor (as
defined in the Agreement) for vertical, common area, and lot improvement construction.
If this amount exceeds the Developer's budgeted total of $13,494,284 for Second Stage
2300, 3000, and 3900 categories (as described in the Agreement) by less than 10% of
the total project budget, then the Agency must approve the increase to the total
Stipulated Sum.
On May 16, 2006, ComDyn PD, LLC, submitted sufficient evidence to the Agency that
costs associated with bids received for 2300, 3000,and 3900 cost categories in second
stage general contracts exceeds the budgeted total by 9.23%, or $1,245,490. The
Agency recommends appropriation of the additional funding as outlined by the
Agreement.
Submitted by:
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Catherine Walker
Senior Management Analyst
Approval:
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Orteg�-,Oxecutive Director
Department Head:
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Dave Yrigoyen
Director of Redevelopment/Housing
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Paul S. Gibson, Director of Finance
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VERIFIED BY— Pk_bJk-1 ((!�
Original on file with City Clerk's Office
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Exhibit B.3
Development & Construction Plan
A. Owner's Role
Contract No. R-23390
Owner previously (i) processed and obtained Tentative Map approval for the Project, (ii)
procured and processed permit ready engineered drawings for rough grading and improvements
in the public right of way, permit ready architectural documents for the senior apartments, and
schematic drawings for the single family homes. Owner, as Owner of the Property, is
contracting with the Developer for fee based development and construction services as defined
below, and retains the right and responsibility to review and approve all major decisions
affecting the Project.
B. Developer's Role
As further described in this Agreement, the Developer will, on Owner's behalf, (i) contract for and
oversee portions of the design, engineering and construction documentation for the Project, (ii)
process plan check, and pay fees and permits, and (iii) contract for and oversee construction, all as
more specifically set forth below.
C. Design, Engineering and Construction Documentation
Owner has delivered or will deliver to the Developer permit ready construction documents prepared
by MSA Consulting, Inc. for all rough grading and improvements in the public right of way, the PM-
10 plan, the Project SWPP and any other documents required by the NPDES permit program.
Owner has delivered or will deliver to the Developer permit ready construction documents prepared
by Kristi Hanson Architects for the senior apartments.
Owner has delivered or will deliver schematic design drawings for the single family homes prepared
by Kristi Hanson Architects, along with evidence of that firm's assignment of the schematic design
drawings to Owner for construction documentation by others.
The Developer will retain KTGY Group, Inc. as Architect of Record, along with a consulting
structural engineer and mechanical design consultants to create permit ready construction documents
from the above referenced schematics for the single-family homes. Said construction documents will
include universal design features to enhance accessibility and energy conserving features and
technology to reduce dependence on nonrenewable energy sources.
The Developer will retain an architect and structural/civil engineer to create permit ready
construction documents for the carports serving the senior rental units and for block walls.
The Developer will retain RGA Landscape Architects to deliver conceptual and permit ready
construction documents for all landscape, irrigation and hardscape in accordance with the design
review requirements of the City of Palm Desert.
P6402\0001\814779.11
Contract No. R-23390
{ All consultants will indemnify both Owner and Developer against any claims for errors, omissions
and/or defects in their work, or damage to the Project resulting from their willful or negligent acts.
D. Desis?n Review and Plan Check Processing
The Developer will pay for, submit and oversee the processing of all design review and plan
check applications and such approvals as are necessary for the construction, completion, use and
occupancy for the single family homes, the block walls, common areas, senior rental unit
carports and the landscape architectural plans in accordance with the requirements of the City of
Palm Desert and other agencies having jurisdiction, collectively "Remaining Approvals".
E. Permits. Fees and Bonds
The Developer and/or Community Dynamics, Inc. as its general contractor ("General
Contractor'), will pay for and obtain/submit all permits, fees and subdivision improvement
bonds, and file the approved Final Map for recordation, as required by the City of Palm Desert's
Public Works Department prior to commencing rough grading and improvements in the public
right of way.
Provided that the General Contractor proceeds with vertical construction and common area and
lot improvements, the Developer and/or its General Contractor, will pay for and obtain/submit all
permits, fees and performance and payment bonds for 100% of the costs of such construction as
required by the City of Palm Desert's Public Works and Building Departments and this
'- Agreement prior to commencing such work. Owner and the City of Palm Desert recognize that
time is of the essence and shall endeavor to prioritize and expedite the processing of all Project
plans and .its
F. General Contracts
Developer will divide all construction related costs into two separate categories, (i) those
associated with rough grading and improvements in the public right of way ("First Stage
Improvements"), and (ii) those associated with vertical construction and lot and common area
improvements ("Second Stage Improvements").
General contract for First Stage Improvements: The Developer will enter into a contract with the
General Contractor for the First Stage Improvements within 60 days of the date of this
Agreement for an amount not to exceed total costs for this category of construction as shown in
the Budget. Cost increases due to Owner Caused Delays, Excusable Delays, as well as delays
resulting from Force Majeure, as defined in Section 8.11 of this Agreement, shall not be included
in the Contract Sum.
General contract for Second Stage Improvements: During the construction of the First Stage
Improvements, the Developer will oversee the delivery of permit ready construction documents
for the single family homes and the landscape, hardscape and irrigation of the Project. Within 60
days of the date Developer submits those documents into plan check with the City of Palm
Desert, the General Contractor will submit a bid to the Developer for its consideration. If the
P6402100011814779.11 f
Contract No. R-23390
total of the General Contractor's line items for vertical, common area and lot improvement
construction does not exceed the Developer's budgeted total of $13,494,284 for the Second
Stage 2300, 3000 and 3900 categories by more than 10%, excluding the cost of any owner
approved changes to the scope of the original agreement, then the Developer shall enter into one
contract for each phase with the General Contractor for the Second Stage Improvements, and the
Stipulated Sum as defined in Section 4 of the Agreement shall be adjusted to include the above
referenced excess amount. The General Contractor shall indemnify the Developer and Owner
against any claims for construction defects in its work on the Project.
Ifihe•total-eMe al ctor's a items for vertic , comma ea and improve
construction exceeds the Developer's budge udgeted total of 13,494,284 for the
Second Stage 2300, 3000 and 3900 categories by more than 10%, excluding the cost of any
owner approved changes to the scope of the original agreement, then the Developer shall have
not less than 10 days to present to, and document its General Contractor's costs for, Owner. If
Owner approves the costs, then the Developer shall enter into one contract for each phase with
the General Contractor for the Second Stage Improvements, and the Stipulated Sum as defined in
Section 4 of the Agreement shall be adjusted to include the above referenced excess amount.
The General Contractor shall indemnify the Developer and Owner against any claims for
construction defects in its work on the Project.
If, following its review, Owner so chooses, it shall notify the Developer of its decision not to
approve the Developer's proposed contract with the General Contractor for the Second Stage
Improvements.
In the event Owner notifies the Developer of its decision not to approve the Developer's
proposed contract with the General Contractor for the Second Stage Improvements, then Owner
shall have the right to either (i) suspend / terminate the Project, or (ii) solicit bids from third
party general contractors. If Owner elects to solicit bids, then the Developer shall (i) in the
course of a 30 day pre -bid period, prepare bid specifications for one guaranteed maximum
contract for each phase on Owner's behalf, and (ii) in the course of a 30 day bid period, obtain
proposals from not less than three general contractors subject to Owner's prior review and
approval of the proposed bidding contractors and specifications. At no time prior to or during
the 30 day bid period will the Developer, Owner or their employees or agents disclose to any
third party the amount of the General Contractor's prior bid. Owner will reimburse the
Developer for all additional costs associated with soliciting bids from and negotiating with third
party contractors subject to the Developer's submittal of documentation for reimbursement
verification.
If the Developer is able to solicit a bid for the construction of the Second Stage Improvements
for a contract sum which is less than that which the General Contractor first proposed, and
provided said sum reflects a scope of work and specifications which are equal to or better than
those of the General Contractor, then Owner shall have the right to select the low bidder as the
new general contractor for the Second Stage Improvements ("New General Contractor"). If
Owner selects a New General Contractor for the Second Stage Improvements, then the
Developer shall continue to serve as the Project's Developer and receive its full Developer Fee.
The Developer shall enter into one guaranteed maximum contract for each phase, in a form
P6402\000 1 \814779.1 1
ACKNOWLEDGEMENT OF SECOND STAGE CONTRACTS
WITH GENERAL CONTRACTOR
The Palm Desert Redevelopment Agency (the "Agency") does hereby acknowledge that:
1. The Agency and Comdyn PD, LLC ("Developer") are parties to that certain
Agreement Between The Palm Desert Redevelopment Agency and Comdyn PD, LLC For Fee
Developer Services For Agency Owned Property Located In The City Of Palm Desert, dated as
of July 14, 2005 (the "Agreement");
2. The Developer has submitted to the Agency a schedule of values and description
of bidding protocol dated May 1, 2006 (the "Schedule") for the Second Stage Improvements (as
defined in the Agreement);
3. The Schedule establishes that line items of the General Contractor (as defined in
the Agreement) for vertical, common area and lot improvement construction exceeds the
Developer's budgeted total of $13,494,284 for Second Stage 2300, 3000 and 3900 categories (as
described in the Agreement) by $ 1,245,490.88 (the "Excess Amount"), which Excess Amount is
less than ten percent (10%) of the $13,494,284 budgeted total; and
4. The Developer is authorized under Section F of Exhibit B.3 of the Agreement to
enter into contracts with the General Contractor which reflects the line item bids for the Second
Stage Improvements set forth in the Schedule, and the Stipulated Sum (as defined in Section 4 of
the Agreement) shall be adjusted to include the Excess Amount.
Dated: July 18, 2006 PALM DESERT REDEVELOPMENT AGENCY
By: %Oa,�
Carlo
Executive Director