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Home My WebLink AboutSR - R21780A CA2 - Palm Village AptsPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE AMENDMENT NO. 2 IN AN AMOUNT NOT -TO- EXCEED $59,840 TO CONTRACT NO. R21780A WITH HARRIS & ASSOCIATES FOR EXTENDED PROFESSIONAL CONSTRUCTION MANAGEMENT SERVICES AT THE PALM VILLAGE APARTMENTS PROJECT SUBMITTED BY: BRYCE LYNN WHITE, PROJECT ADMINISTRATOR CONTRACTOR: HARRIS & ASSOCIATES 74-333 HIGHWAY 111, STE. 101 PALM DESERT, CA 92260 DATE: MARCH 22, 2007 CONTENTS: HARRIS & ASSOCIATES AMENDMENT 2 PROPOSAL AMENDMENT NO. 2 TO CONTRACT NO. R21780A Recommendation: By Minute Motion, that the Agency Board authorize Amendment No. 2 in an amount not -to -exceed $59,840 to Contract No. R21780A with Harris & Associates for extended 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. 2 in an amount not -to -exceed $59,840 to Professional Services Agreement ratified by the Agency Board on August 24, 2006. This will extend professional inspection and quality control services for the Palm Village Apartments project and will also provide continued oversight of project closeout issues, including negotiation of potential claims issues. 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. The ownership of the company has changed due to the leaving of one principal and the prolonged illness and death of the remaining principal, which has resulted in both a steady turnover in supervisory personnel and substitution of numerous subcontractors. The Contractor has liquidated assets and reported that they will be going out of business at the completion of this project. These have all contributed to substantial delays in completing the project. In order to respond to the Contractor's delays and deterioration in their performance, additional professional construction management services are required. Harris & Associates proposal will extend professional construction management services at an hourly rate for a total fee not -to - exceed $59,840. The services include negotiating change orders, reviewing pay applications, identifying and recommending corrections to construction deficiencies, conducting weekly Staff Report Authorize Amendment No. 1 to Contract R21780A with Harris & Associates — Palm Village Apartments Project Page 2 of 2 November 16, 2006 meetings, and conducting closeout negotiations relating to potential claims. Due to the delay in completing the project, the duration of the work has increased requiring an anticipated three- month extension of professional services. 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. Staff recommends authorization of Professional Services Amendment No. 2 in an amount not - to -exceed $59,840 to Harris & Associates. Submitted by: AD ),- 4�� h' Pro' Ad ini trator mh Approval: �7stin McCarthy, -ACM opment Carlos L. Ortega, cecutive Director Department Head: ve Yri Directo o edevelopment/Housing 1;a,4� Paul S. Gibson, Director of Finance AJ)FQ&d BY RDA ON 2" Xia -0 VERIFIED BY Original on file with City Jerk's Office G:\rda\Maria Hunt\WPDATA\HOUSING\WHITE\stfrpts\032207Amend2 Contract R21780A.doc PALM DESERT 1 REDEVELOPMNT AGENCY L' PR A7U AL SERWE NT Contract Purpose Quality control & construction management services Consultant's Name Harris & Associates Address: 74-333 Highway 111 Palm Desert, CA 92260 Contract # / P.O. # I R21780A 13495 Amendment/ 2 Change Order No. Contingency: YES NO X Account No. 870-4349-433-4001 Project No. Vendor No. 16862 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 Extend construction management services 59,840.00 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: TOTAL BUDGET FOR PROJECT: + 162,640.00 Less: Expend. & Encumb. To Date: - 162,640.00 Less: This Change Order Amount: - 59,840.00 BALANCE OF BUDGET REMAINING FOR PROJECT: (59,840.00) CONTINGENCY: Amount Approved by Board: + Less: Prior Amendment(s): - Less: This Amendment: - Balance Remaining of Contingency: 59,840.00 59,840.00 The amount of the Contract will be arsed) Increased by the Sum of: Fiftv-nine Thousand Eiaht Hundred Fortv and NO/100 Dollars ($59,840.00 ). G Vda\Beth Longman\Staff Reports\White\Hams Prof Svc Amend 2 032207.doc See reverse Contract R21780A Amendment No. 2 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- Revised Contract Total $59,840.00 The undersigned Consultant approves the foregoing Professional Service Amendment # 2 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 # 2 . 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: 3/22/07 Richard S. Kelly, CHAIRMAN Date Approved 3/22/07 SECRETARY Date Approved G:uda\Beth Longman\Staff Reports\White\Hams Prof Svc Amend 2 032207 doc See reverse ... February 23, 2007 Bryce White Palm Desert Redevelopment Agency 73-510 Fred Waring Dr Palm Desert, CA 92260 Re: City of Palm Desert Palm Village Apartments Contract Amendment #02 Dear Mr. White, Harris & Associates Program Managers Construction Managers Civil Engineers In accordance with our recent discussions, please find the below requested cost proposal for continued professional construction management services for Palm Village Apartments. Our previous approved contract extension to 31JAN07 has been exceeded and the current projected construction completion is now mid-MAR07, not including the contract closeout phase. The requested extension of services beyond the revised contract date of 31 JAN07 to a current projected contract completion date of 30APR07or 63 working days, are as follows: R. Herrera PM @ $ 180/hr as needed (No Charge) $ 0 K. Gray CM @ $ 130/hr for 4hr/day $ 32,760 J. Johnson PI @ $ 120/hr for 3hr/day $ 22,680 A. Sanchez Admin. @ $ 70/hr for 1 hr/day $ 4,400 Total Amendment #02 Proposed Amount $ 59,840 We appreciate the confidence the City has in our performance to date and we will continue to work hard to facilitate all parties to the contract in bringing this project to closure. If you have any questions or require additional information, contact me at your earliest convenience. Sincerely, Harris & Associa es amiro Herrera Regional Manager 74-333 Highway 111, Suite 101 Palm Desert, California 92260 760.340.6111 FAX 760.340.6433 coachellavalley@harris-assoc.com