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HomeMy WebLinkAboutSR - R22720 - CA1 - Palm Village Apts.�D PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE PROFESSIONAL SERVICE AMENDMENT NO. 1 IN AN AMOUNT NOT TO EXCEED $21,000 TO KUNIKLO CORPORATION (CONTRACT NO. R22720) FOR ADDITIONAL CERTIFIED PAYROLL PROCESSING SERVICES FOR THE PALM VILLAGE APARTMENTS PROJECT SUBMITTED BY: BRYCE LYNN WHITE, PROJECT ADMINISTRATOR CONTRACTOR: KUNIKLO CORPORATION P.O. BOX 5205 GLENDALE, AZ 85312 DATE: MARCH 8, 2007 CONTENTS: PROFESSIONAL SERVICE AMENDMENT NO. 1 CONFIRM COMPLIANCE WITH PREVAILING WAGE REQUIREMENTS Recommendation: By Minute Motion, that the Agency Board: Authorize Professional Service Amendment No. 1 in an amount not to exceed $21,000 to Kuniklo Corporation (Contract No. R22720) for additional certified payroll processing services for the Palm Village Apartments project; and 2. Authorize the appropriation of $21,000 from the Agency's unobligated funds to Account No. 870-4349-433-4001. Discussion: The City of Palm Desert received $600,000 in HOME funds through the Riverside County Economic Development Agency for construction of the Palm Village Apartments. The HOME funds require compliance with the Davis Bacon Act for Federally assisted projects, which requires all subcontractors to submit weekly certified payroll reports. The certified payroll reports must be reviewed for compliance with the prevailing wage requirements established by the Department of Housing and Urban Staff Report Professional Service Amendment No. 1 to Kuniklo Corporation Contract No. R22720 Page 2 of 2 March 8, 2007 Development, and also the California Department of Industrial Relations Special Prevailing Wage Determination. On March 24, 2006, the Redevelopment Agency Board entered into a contract with Kuniklo Corporation in the amount of $24,900 to monitor certified payroll reports and confirm compliance with the prevailing wage requirements for the Palm Village Apartments project. Due to the extended time of construction on this project, and in order to continue monitoring the certified payroll as required, additional funds are requested. It is anticipated that these services will be required through May 2007 in an amount not to exceed $21,000. . Liquidated damages in the amount of $127,500 have been withheld from the general contractor on this project due to their failure to complete the work within the contract time. Liquidated damages are currently accruing at the rate of $2,000 per calendar day and will be used to compensate the Agency for additional costs, such as this, that the Agency incurs due to the delayed completion of the project. Submitted by: y Lynhite P ject Approval: >pment Carlos L. Ortega, ecutive Director Department Head: i Dave Yrig Director 9&`Mdevelopment/Housing )Wtva� Paul S. Gibson, Director of Finance *mLd— BY RDA ON 4! VERIFIED BY k8ej r- -- Original on file with City Clerk's Office G:\rda\Beth Longman\Staff Reports\White\Kuniklo Amend 1 030807.doc P__A_Lm DESEEr REDEYELOnIIENT AGENCY PROFESSWAL SIR -VICE AMENDAUNT Contract Purpose Certified Payroll Processing Services Consultant's Name Kuniklo Corporation Address: P.O. Box 5205 Glendale, AZ 85312 Contract # / P.O. # R22720 13032 Amendment/ Change Order No. 1 Contingency: YES NO X Account No. 870-4349-433-4001 Project No. Vendor No. 19241 I � 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 certified payroll processing service 21,000.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 45,900.00 Less: Expend. & Encumb. To Date: - 45,900.00 Less: This Change Order Amount: - 21,000.00 BALANCE OF BUDGET REMAINING FOR PROJECT: (21,000.00) CONTINGENCY: Amount Approved by Board: + Less: Prior Amendment(s): - Less: This Amendment: - Balance Remaining of Contingency: 21,000.00 21,000.00 The amount of the Contract will be ("ear-essedi Increased by the Sum of: Twenty-one Thousand and no/100 Dollars ($21,000.00). G.\rda\Beth Longman\Staff Reports\White\Kiniklo Amend 1 Form.doc See reverse Contract $22720 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 -0- Days. Revised Contract Total $45,900.00 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: 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: 3/8/07 RICHARD S. KELLY, CHAIRMAN Date Approved 318107 SECRETARY Date Approved G \rda\Beth Longman\Staff Reports\Whyte\Kiniklo Amend 1 Form doc See reverse ... Confirm Compliance- with Prevailing Wage Requirements: 1. Ensure payroll reports contain the correct project information, payroll information, and original signatures 2. Compare wages paid with prevailing wages set forth by Department of Labor schedules and provided by Riverside County, Economic Development Agency 3. Compare wages paid with prevailing wages, and according to adjustment schedule, set forth by California Department of Industrial Relations and provided by Palm Desert Redevelopment Group a. Ensure fringe benefits adjustments have been adhered to by each subcontractor and for each applicable wage classification. 4. Note report errors, wage discrepancies, and missing payroll reports 5. Prepare memos to the subcontractors noting these discrepancies and omissions 6. Prepare payroll reports packages for transmittal to Tom Fan, or Laura Ballesteros, Riverside County Economic Development Agency to include the following: a. One original of DOL form WH-347 Certified Payroll Report for each subcontractor performing work on site b. Original signatory forms, specifically... i. Certification of Understanding and Authorization ii. Certification of Applicable Fringe Benefits Payments iii. Subcontractor's Acknowledgement of Receipt of HUD 2554 c. Original request for wage authorizations d. Proof of restitution payments e. Copy of memos informing the subcontractor of report errors and discrepancies 7. Submit packages to Riverside County Economic Development Agency every other Wednesday, or as requested 8. Update General Contractor submittal logs as necessary and respond to requests for information from project management regarding up to date subcontractor paperwork 9. Coordinate as necessary, but no less than one, subcontractor orientation at the project site to review required forms, reporting processes, regulations, common errors and omissions 10. Assist subcontractors as requested to understand and comply with the Riverside and HUD requirements for Davis Bacon & Related Acts 11. Assist subcontractors as requested to understand and comply with California Prevailing Wage requirements.