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Home My WebLink AboutR23390 - CA#2 - Falcon Crest & La Rocca VillasPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE AMENDMENT NO. 2 FOR THE DEVELOPMENT OF FALCON CREST AND THE LA ROCCA VILLAS (CONTRACT R23390) FOR THE PURPOSE OF INCREASING THE SCOPE OF WORK THAT INCLUDES AGENCY APPROVED CHANGES TO DESIGN AND ENGINEERING, ENERGY EFFICIENCY MEASURES, HOUSING MIX, AND INCREASES IN PUBLIC AGENGY PERMITS AND IMPACT FEES. SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST CONTRACTOR: COMDYN PD, LLC 2800 28T" STREET, SUITE 206 SANTA MONICA, CA 90405 DATE: JULY 13, 2006 CONTENTS: CONTRACT AMENDMENT NO. 2 Recommendation: By Minute Motion, that the Agency Board: 1. Approve Amendment No. 2 in the amount of $509,284 for the development of Falcon Crest and La Rocca Villas (Contract No. R23390) for the purpose of increasing the scope of work that includes Agency approved changes to design and engineering, energy efficiency measures, housing mix, and increases to public agency permits and impact fees; and 2. Approve appropriation of $509,284 from the unobligated 20% Housing Set -aside fund monies to Account No. 870-4698-466- 4001. Executive Summary: Approval of the staff recommendation will allow for increases to the Project Costs excluded from the Stipulated Sum to accommodate both work outside the scope of the Agreement, and Agency approved increases to design and engineering costs. All items are necessary for the timely completion of the Falcon Crest and the La Rocca Villas developments. Staff Report Approve Amendment No. 2 to ComDyn PD, LLC, for Increasing the Scope of Work July 13, 2006 Page 2 of 3 Discussion: On July 14, 2005 the Agency Board entered into an 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 (Contract No. R23390). ComDyn PD, LLC was awarded the contract to develop affordable housing on a 20-acre site located adjacent to Hovley Gardens at Merle Drive/42"d Avenue, the developments currently known as Falcon Crest and La Rocca Villas. The original Stipulated Sum Agreement addressed public agency fees and permits, however, since negotiation these fees have increased. Also City/Agency requested changes to the streetscape, hardscape, and housing design have amended the original scope of services, resulting in increased project costs. The changes to the streetscape/hardscape provided for the inclusion of street trees throughout the development as proposed by the City of Palm Desert Planning Department. These revisions have been reviewed and approved by the Landscape Beautification Committee, and all design element changes were included in the final package reviewed and approved by the Architectural Review Committee. The Agency approved contract expressly states and defines the Owner's responsibility for additional costs in Section 4.1, Items (a) through 0). Staff has reviewed ComDyn's request for additional funding and agrees that all requests are valid and substantiated by the Development Agreement. Please refer to the attached table shown in Exhibit A, which outlines all additional costs associated with this Amendment. Submitted by: Cath/ her Walker Senior Management Analyst Approval: njMcCarthy, �J v Carlos L. Ort a, Executive Director Depa mentHead: �d: 1 A<-f Dave Yrigoyen Director of Redevelopment/Housing nt Pa S. , irector of Finance .oD veOl BY RDA ON �—►31c��p VERIFIED BY_J?�&-J �- Original on file with city Clerk's Office Staff Report Approve Amendment No. 2 to ComDyn LLC, PD for Increasing Scope of Work July 13, 2006 Page 3 of 3 Exhibit A: Stipulated Sum Adjustment Summary No. Description of Change Transportation Uniform Mitigation Fee 1 (TUMF) Desert Sands Unified School District 2 Impact Fee 3 CVWD Sewer & Water Plan Check Fee 4 CVWD Sanitation Capacity Charge 5 CVWD 3/4 Inch Meter Charge Reason for Change Elimination of low income housing fee waiver for i) 46 units due to change to 100% moderate income single family homes, and ii) 27 senior apartments originally excluded from the stipulated sum On March 8, 2006 the Desert Sands Unified School District impact fees were increased $0.39 per square foot for single family housing and $0.06 per square foot for senior housing CD paid the required CVWD plan check fee in order to expedite the release of sewer & water improvement plans On July 1, 2005 the CVWD Sanitation Capacity Charge was increased $526 per dwelling unit, from $2,991 to $3,517 Budget Change Authorized By Section 5.9 of the $ 52,307.43 Development Agreement Section 4.1(i) of the $ 57,735.66 Development Agreemen+ Exhibit B.3 (C) of the $ 1,525.50 Development Agreemen' Section 4.1(i) of the $ 63,646.00 Development Agreemen' On July 1, 2005 the CVWD 3/4 inch meter charge was increased $120 per Section 4.1(i) of the meter, from $250 to $370 $ 14,760.00 Development Agreemen' CVWD encroachment permit CVWD Inspection Fee for Encroachment inspection fee for retaining wall demo Section 2.5 of the 6 Permit and construction at lots 75 and 108 $ 500.00 Development Agreemen' Single family home plan check and permit fees exceed the Development Agreement figures provided by the Single Family Home Plan Check and Palm Desert Department of Building & Section 4.1(i) of the 7 Permit Fees Safety on 4.14.05. $ 21,096.68 Development Agreemen' Agency approved changes to the Change to Stage One Street Improvement design of the Street & Storm Drain Section 4.1(a) of the 8 Plans Plan $ 132,335.79 Development Agreemen' CD was invoiced for and paid costs outside of its scope of work and Signed memos by RDA Civil Engineering - MSA Consulting therefore are not included in the staff on 12/8/2005 and 9 Invoices 81768, 81965 and 82331 stipulated sum. $ 1,948.75 3/2/06 Agency approved energy efficiency measures in excess of 2005 Title-24 requirements, including: 2x6 walls Energy Program (Architectural / with R19 insulation; radiant barrier, R- Section 4.1(b) of the 10 Structural) 6.0 ducts. $ 157,428.00 Development Agreemen, Agency approved redesign of single Architectural fees for the redesign of Plan family home Plan 4 in order to reduce Section 4.1(a) of the 11 4 the square footage. $ 6,000.00 Development Agreemen+ Increase to the Stipulated Sum $ 509,284 G %RDA Beth Longman'Staff Reports ti alker'Comf) n Amend 2 071 306.doc PALM DESERT REDEVELOPMENT AGENCY Contract # / P.O. # R24000 CONTRACT AMENDMENT Change Order No. 2 Contingency: YES I NO Contract Purpose: Develop affordable housing on 20 AC site Account No. 870-4698-466-4001 Contractor's Name: ComDyn PD, LLC Project No. 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 Increase scope of work to include changes to design and engineering, energy $509,284.00 efficiency measures, housing mix, and increases to public agency permits and impact fees. See attached Exhibit A for full detail. TOTALS: NET CHANGE IN CONTRACT PRICE: $509,284.00 JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 25,674,845.00 CONTINGENCY: Less: Expend. & Encumb. To Date: - 25,674,845.00 Amount Approved by Council: + Less: This Change Order Amount: - 509,284.00 Less: Prior Change Order(s): - BALANCE OF BUDGET Less: This Change Order: - REMAINING FOR PROJECT:-509,284.00 Balance Remaining of Contingency: 0.00 The amount of the Contract will be Increased by the Sum of: Five Hundred Thousand Two Hundred Eiqhtvfour and no/100 Dollars ($509,284.00). 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: EXECUTIVE DIRECTOR 2. ACCEPTED BY: CONTRACTOR FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR JIM FERGUSON, CHAIRMAN 7/13/06 NOTE: No payments will be made prior to Exec Dir and Agency Board approval SECRETARY 7/13/06 \m,nd K I I \ Exhibit A: Stipulated Sum Adjustment Summary No. Description of Change Reason for Change Budget Change Authorized By Elimination of low income housing fee waiver for 1) 46 units due to change to 100% moderate income single family homes, and 11) 27 senior apartments Transportation Uniform Mitigation Fee originally excluded from the stipulated Section 5 9 of the 1 (TUMF) sum $ 52,307 43 Development Agreement On March 8, 2006 the Desert Sands Unified School District impact fees were increased $0 39 per square foot Desert Sands Unified School District for single family housing and $0 06 Section 4 1(1) of the 2 Impact Fee per square foot for senior housing $ 57,735 66 Development Agreement CD paid the required CVWD plan check fee in order to expedite the release of sewer & water Exhibit B 3 (C) of the 3 CVWD Sewer & Water Plan Check Fee improvement plans $ 1,52550 Development Agreement On July 1, 2005 the CVWD Sanitation Capacity Charge was increased $526 per dwelling unit, from $2,991 to Section 4 1(1) of the 4 CVWD Sanitation Capacity Charge $3,517 $ 63,646 00 Development Agreement On July 1, 2005 the CVWD 3/4 inch meter charge was increased $120 per Section 4 1(1) of the 5 CVWD 3/4 Inch Meter Charge meter, from $250 to $370 $ 14,760 00 Development Agreement CVWD encroachment permit CVWD Inspection Fee for Encroachment inspection fee for retaining wall demo Section 2 5 of the 6 Permit and construction at lots 75 and 108 $ 50000 Development Agreement Single family home plan check and permit fees exceed the Development Agreement figures provided by the Single Family Home Plan Check and Palm Desert Department of Building & Section 4 1(1) of the 7 Permit Fees Safety on 4 14 05 $ 21,096 68 Development Agreement Agency approved changes to the Change to Stage One Street Improvement design of the Street & Storm Drain Section 4 1(a) of the 8 Plans Plan $ 132,335 79 Development Agreement CD was invoiced for and paid costs outside of its scope of work and Signed memos by RDA Civil Engineering - MSA Consulting therefore are not included in the staff on 12/8/2005 and 9 Invoices 81768, 81965 and 82331 stipulated sum $ 1,94875 3/2/06 Agency approved energy efficiency measures in excess of 2005 Title-24 requirements, including 2x6 walls Energy Program (Architectural / with R19 insulation, radiant barrier, R- Section 4 1(b) of the 10 Structural) 6 0 ducts $ 157,428 00 Development Agreement Agency approved redesign of single Architectural fees for the redesign of Plan family home Plan 4 in order to reduce Section 4 1(a) of the 11 4 the square footage $ 6,00000 Development Agreement Increase to the Stipulated Sum $ 509,284