HomeMy WebLinkAboutR23390 - CA13 - Falcon Crst & La RoccaPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE CONTRACT AMENDMENT NO. 13 IN THE DEDUCTIVE
AMOUNT OF $160,000 TO CONTRACT NO. R23390 BETWEEN THE
PALM DESERT REDEVELOPMENT AGENCY AND COMDYN PD, LLC,
FOR THE PURPOSE OF REMOVING THE REMAINING PURCHASE OF
THE CALHFA FORWARD COMMITMENT
SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST
CONTRACTOR: COMDYN PD, LLC
2800 28th STREET, SUITE 206
SANTA MONICA, CA 90405
DATE: OCTOBER 25, 2007
CONTENTS: CONTRACT AMENDMENT NO. 13
Recommendation:
By Minute Motion, that the Agency Board:
Authorize Contract Amendment No. 13 in the deductive amount of $160,000
to ComDyn PD, LLC (Contract No. R23390) for the purpose of removing the
remaining purchase of a California Housing Finance Agency (CaIHFA)
forward commitment from the Falcon Crest project scope;
2. Reaffirm the payment of the CaIHFA forward commitment fees for Phases II
and III through the close of escrows up to $47,040; and
3. Authorize the Chairman to execute the same.
Funds are available in Account No. 870-4698-466-4001.
Executive Summary:
Approval of this request will authorize a deductive contract amendment in the amount of
$160,000 for the purpose of removing the purchase of the CaIHFA forward commitment from
ComDyn's project scope. As is customary in similar transactions, these fees will be paid directly
from the escrow closings. However, they will be significantly less than originally anticipated due
to the projects progress; i.e., original cost $160,000 vs. revised cost of $47,040.
Discussion:
On September 14, 2007, the Agency Board approved Contract Amendment No. 4 in the amount
of $220,000 to purchase forward commitments securing the primary loan interest rates for the
Staff Report
Authorize Deductive Contract Amendment No. 13 to Contract R23390 (ComDyn)
Page 2 of 2
October 25, 2007
buyers at Falcon Crest. Upon approval, ComDyn purchased the forward commitment for Phase
I at a cost of $60,000, and while it seemed efficient, has created issues with regard to funding
the loans at escrow closing. As such, the lenders have requested that these fees be paid
directly through escrow by the Agency as is customary with similar transactions.
It was the Agency's intention to lock interest rates for Phases If and III ensuring affordability for
future buyers. However, the forward commitments could not be purchased for Phases II and III
until such time as funds became available. The project is progressing and expectations are that
all phases will be sold and closed by January 2008. This allowed the commitments for Phases
II and III to be shorter in duration, which will cost substantially less than the original estimated
fees.
The associated fees for Phases II and III are reduced from $80,000 per phase, to $24,990 and
$22,050 respectively. The total amount expected to be expended for all phases will not exceed
$107,040, which represents an $112,960 cost savings to the Agency.
The CaIHFA forward commitment fees will be paid by the Agency through closing costs, as this
is more in line with standard procedure in conventional closings, and will make the process
smoother for the buyers, escrow, and the lenders. The approval of the Falcon Crest Sales
Program allowed for such fees to be paid as closing costs.
Staff recommends approving the deductive amendment in the amount of $160,000 to ComDyn,
PD, LLC's scope of work for the Falcon Crest project and reaffirm the payment of the revised
forward commitment fees through the close of escrows at Falcon Crest for loans submitted
under the CaIHFA forward commitment.
Submitted by:
Cat brine Walker
Senior Management Analyst
Approval:
� McCarthy, ACM Red opment
10,K4
Carlos L. Ortega,i0ecutive Director
Department Head:
Dave Yrigo
Director Redevelopment/Housing
Paul S. Gibson, Director of Finance
VERIFIED BY
BY RDA ,E
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PALM DESE RE VELO NT AGENCY
PROFESSIONAL SE I AMEN N�
Contract Purpose Develop affordable housing on 20 AC site
Consultant's Name ComDyn PD, LLC
Address: 2800 28'h Street, Suite 206
Santa Monica, CA 90405
Contract # / P.O. # I R23390
Amendment/ 13
Change Order No.
Contingency: YES NO X
Account No. 1870-4698-466-4001
Project
Vendor No. 1 8948
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
Deduct remaining Falcon Crest CaIHFA forward commitment
160,000.00
TOTALS: 160,000.00 NET CHANGE IN CONTRACT PRICE: (160,000.00)
JUSTIFICATION:
TOTAL BUDGET FOR PROJECT: + 29,662,334.76 CONTINGENCY:
Less: Expend. & Encumb. To Date: - 29,662,334.76 Amount Approved by Board: +
Less: This Change Order Amount: - (160,000.00) Less: Prior Amendment(s): -
BALANCE OF BUDGET Less: This Amendment: -
REMAINING FOR PROJECT: 160,000.00 Balance Remaining of Contingency: -
The amount of the Contract will be (Decreased) IR6,Feased by the Sum of: (One Hundred Sixtv Thousand and
N011001 Dollars ($160,000.00).
G.\rda\Mana Hunt\WPDATA\Staff Reports\Amend 13 ComDyn.doc See reverse
Contract R23390 Amendment No. 13 Continued from front
This Contract Amendment covers changes to the subject contract as described herein. The consultant shall perform
all work as necessary or required to complete the Contract 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 29,502,334.76
The undersigned Consultant approves the foregoing Contract Amendment # 13 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
Contract Amendment # 13 . 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 Contract
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 Contract 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 Contract 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
4. APPROVED BY:
RICHARD S. KELLY, CHAIRMAN
SECRETARY
10/25/07
Date Approved
10/25/07
Date Approved
G Vda\Mana Hunt\WPDATA\Staff ReporWAmend 13 ComDyn.doc See reverse