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Home My WebLink AboutSR - R21780A - CA1 - Const. Mgmnt Svcs - Palm Village Apts.PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE AMENDMENT NO. 1 IN THE AMOUNT OF $78,300 TO CONTRACT NO. R21780A WITH HARRIS & ASSOCIATES FOR EXPANDED PROFESSIONAL CONSTRUCTION MANAGEMENT SERVICES AT THE PALM VILLAGE APARTMENTS PROJECT SUBMITTED BY CONTRACTOR Ion9:1 CONTENTS Recommendation: BRYCE LYNN WHITE, PROJECT ADMINISTRATOR HARRIS & ASSOCIATES 74-333 HIGHWAY 111, STE. 101 PALM DESERT, CA 92260 NOVEMBER 16, 2006 HARRIS & ASSOCIATES PROPOSAL AMENDMENT NO. 1 TO CONTRACT NO. R21780A By Minute Motion, that the Agency Board authorize Amendment No. 1 in the amount of $78,300 to Contract No. R21780A with Harris & Associates for performing expanded professional construction management services for the Palm Village Apartments project. Funds are available in Account No. 870- 4349-433-4001. Executive Summary: By approval of staff recommendation, the Agency Board will authorize Amendment No. 1 in the amount of $78,300 to Professional Services Agreement ratified by the Agency Board on August 24, 2006. This will expand and extend professional inspection and quality control services for the Palm Village Apartments project to help protect against the adverse consequences of the deterioration in quality of construction seen by staff over the course of the construction project. The Amendment will also provide greater oversight as project closeout issues, including resolution of potential claims issues, are negotiated. Discussion: On April 15, 2005, the Notice to Proceed for Contract No. R21780 was issued to Taylor Frager, Inc. for the construction of a 36-apartment complex known as Palm Village Apartments. During the first eight to ten months of construction, the quality of the workmanship performed was good and the project moved steadily forward. However, Staff Report Authorize Amendment No. 1 to Contract R21780A with Harris & Associates — Palm Village Apartments Project Page 2 of 2 November 16, 2006 the ownership of the company has changed due to prolonged illness and death of the remaining principal, and there has been a continued steady turnover in supervisory personnel and replacement of numerous subcontractors, all of which has contributed to a noticeable decline in the quality of workmanship by City inspectors and by staff. The Contractor has liquidated assets and reported that they will be going out of business at the completion of this project. It has been evident that the Contractor's work must be reviewed once or twice a day in order to prevent workers from covering up unacceptable work before it has been identified or corrected. The performance of the Contractor has continued to deteriorate further, and the project has been substantially delayed. In order to respond to these needs, additional professional construction management services are required. Harris & Associates presented a proposal to address these issues and expand and extend professional construction management services at an hourly rate for a total fee not -to -exceed $78,300. The expanded services include negotiating change orders, reviewing pay applications, identifying and recommending corrections to construction deficiencies, conducting weekly meetings, and conducting closeout negotiations relating to potential claims. The delay in completing the project has increased the duration of the work requiring a four -month extension of services. Staff recommends authorization of Professional Services Amendment No. 1 in the amount of $78,300 to Harris & Associates. Submitted by: kjectd istrator mh Approval: Carlos L Department Head: Dave Yrigoyen Director of Redevelopment/Housing pment Paul S. Gibson, Director of Finance �/'�-C . BY RDA ON ctor VERIFIED BY 2� Original on file with City Cle 's Office G 1RDA\Maria Hunt\WPDATA\HOUSING\WHITEIstfrptsN 11606Amendl Contract R21780A doc PALM DESEUREDEVEEORMF AGENT PROFESSIONAL SIRVI A N[ENDMNT Contract Purpose Quality control & construction management services Consultant's Name Harris & Associates Address: 74-333 Highway 111 Palm Desert, CA 92260 Contract q / P.O. * R21780A Amendment/ 1 Change Order No. Contingency: I YES NO Account No. 870-4349-433-4001 Protect No. Vendor No. 16862 13495 9 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 Expand service to include construction management services 78,300.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 24,500.00 CONTINGENCY: Less: Expend. & Encumb. To Date: - 24,500.00 Amount Approved by Board: + Less: This Change Order Amount: - 78,300.00 Less: Prior Amendment(s): - BALANCE OF BUDGET Less: This Amendment: REMAINING FOR PROJECT: (78,300.00) Balance Remaining of Contingency: 78,300.00 78,300.00 The amount of the Contract will be (Doer-oaee-4) Increased by the Sum of: Seventy-eiqht Thousand Three Hundred and NO/100 Dollars ($78,300.00 ). G RDA\Beth LongmamProlectstPalm VdIageViarns Prot Svc Amend t doc See reverse Contract R21780A Amendment No. 1 Continued from front This Professional Service Amendment covers changes to the subject contract as described herein. The consultant shall perform all work as necessary or required to complete the Professional Service Amendment items for a lump sum price agreed upon between the Consultant and the Palm Desert Redevelopment Agency, otherwise referred to as Owner. Contract Time Extension 90 workina days to January 31. 2007. Revised Contract Total $102.800.00 The undersigned Consultant approves the foregoing Professional Service Amendment # 1 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 Professional Service Amendment # 1 . 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 Professional Service 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 Professional Service 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 Professional Service 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. REQUESTED BY: 3. CERTIFIED FUNDS AVAILABLE: EXECUTIVE DIRECTOR FINANCE DIRECTOR NOTE: No payments will be made prior to Executive Director and Agency Board approval 2. ACCEPTED BY: CONSULTANT Date Accepted 4. APPROVED BY: 11/16/06 JIM FERGUSON, CHAIRMAN Date Approved 11 /16/06 SECRETARY Date Approved G tRDA%Beth Lonpman\Pro1ects\Pa1m Vivage\Harns Prot Svc Arneno 1 ooc See reverse October 19, 2006 Bryce White Palm Desert Redevelopment Agency 73-510 Fred Waring Dr Palm Desert, CA 92260 Re: City of Palm Desert Redevelopment Agency Palm Village Apartments Contract Amendment #01 Dear Mr. White, Harris & Associates Program Managers Construction Managers Civil Engineers RECEivr� ACT 2 0 2006 Palm Desert RDA In accordance with our your recent request for expanded professional construction management services, in addition to the quality control support services for Palm Village Apartment, please see the below described personnel and cost proposal. Kurt Gray will be remaining under your direction for providing construction management services in accordance with requested scope of services. John Johnson has already been assigned to continue with daily quality control support services and Adriana Sanchez will be needed for administration support to catalog documents and information involved. The requested extension of services beyond the original contract completion date of 28SEP06 to a current projected completion date of 31 JAN07 or 90 working days is as follows: R. Herrera @ $ 180/hr for 20 hrs total $ 3,600 K. Gray @ $ 130/hr for 4hr/day $ 46,800 J. Johnson @ $ 120/hr for 2hr/day $ 21,600 A. Sanchez @ $ 70/hr for 1 hr/day $ 6,300 Total Amendment #01 Proposed Amount $ 78,300 We believe that our participation to date have helped achieve a process for mutual resolution between all parties to the contract. If you have any questions or require additional information, contact me at your earliest convenience. Sincerely, Hard & Associat s miro Herrera egional Manager 74-333 Highway 111, Suite 101 Palm Desert, California 92260 760.340.6111 FAX 760.340.6433 coachellava[ley@harris-assoc.com