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HomeMy WebLinkAbout8/1/2001 - STAFF REPORTS DATE: AUGUST 1, 2001 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF REDEVELOPMENT FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT WITH R.M. DENNIS, GENERAL CONTRACTOR FOR NEIGHBORHOOD REVITALIZATION PROGRAM RECOMMENDATION: It is recommended that the Agency approve the first amendment to a contract services agreement with R.M. Dennis, General Contractor in the amount of $75,000.00 to perform as construction superintendent of the Neighborhood Revitalization Program, increasing the total contract to $125,000 and extending the term. SUMMARY: The Agency approved a contractual services agreement with R.M. Dennis, General Contractor, in April, 2000 to provide construction superintendent services to the Neighborhood Revitalization Program (Single Family Rehab Program). The original contract was for $50,000, which covered about 30 homes based on the contractual fee schedule. The Contractor has now fully completed 18 homes and is in the process of overseeing the rehabilitation of 36 units and has an additional 25 to commence, after 21 of the original 100 qualified applicants either withdrew, passed away, or did not respond to followup correspondence. BACKGROUND: On September 15, 1999 the Redevelopment Agency approved the creation of the Neighborhood Revitalization Program (NRP). The NRP provides grants and deferred loans to very low to moderate-income households for improvements to the interior and exterior of owner-occupied single-family homes and mobile homes. From the time of Agency approval, staff has fine-tuned all the elements of the program. One essential part of the program was hiring a construction superintendent to handle the details of the actual improvements to the properties. Staff desired to find an individual that possessed construction management experience and the ability to communicate with homeowners on all aspects of the program. Staff recommended Ralph Dennis as the construction superintendent. Mr. Dennis specializes in home rehabilitation — something of utmost importance to the Agency in the implementation of the NRP. Under his contract, Mr. Dennis is responsible for making contact with all qualified homeowners. His contact with the homeowner spans all phases of the residential improvement process. Preliminary visits to determine the type of work to be done, priority scoring of the proposed project, additional visits to detail the exact work to be completed, contractor bids and selection, approving progress payments, and monitoring the rehabilitation until the job is complete — these are his basic responsibilities. Mr. Dennis is also very instrumental in explaining the phases of the program to the homeowners and answering their questions and easing their concerns. The Scope of Services of the Original Agreement, included in this contract amendment, details the different tasks which Mr. Dennis performs. The term of the Original Contract was eighteen months from date of d d Gd� , T execution. This amendment makes the term one year from the date of the amendment, or about an additional six months in contract term. NRP applications were mailed out in late November, 1999. There were originally 100 qualified applications for the program. The status of the applications is as follows: Completed Units 18 Clients' work completed and files closed out. Units in Process 6 Clients have work started by Contractors. 4 Bid Tabulations & Analysis are being completed and Construction Contracts are pending execution between Owners and Contractors. 10 Clients have completed the Preliminary Feasibility Analysis (Task A) and are proceeding to the Project Analysis (Task B). 7 Clients to have Task A completed. 9 Clients on hold due to personal circumstances. Applicants Dropped 9 Withdrew (i.e., seven due to personal consideration, one pending Airport Mitigation Program and another passed away). 12 Clients that did not respond to follow-up mailer from Agency (mail non-forwarding or did not accept/refused Certified letter). Units to be Started 25 Applicants, all larger projects, have work yet to be started Most of the projects that have been completed were in the lowest restriction category, the "Low Doc" program. This program provides grant funds of up to $5,000 per house, with the contract superintendent fees paid from the general budget of the rehab program. The other categories, "Restricted Grant" (up to $10,000) and "Forgivable Loan" (up to $25,000) charge the inspection fees into the project cost. Staff is eager to complete the original set of applications before the end of the calendar year though, depending on the dropout rate of the final 25 applications, it could be as late as February before the original batch is completely finalized. It will likely take one more contract amendment with R.M. Dennis to completely finish all pending files; the final amount will be determined as the last batch begins to move through the process. All of the final 25 applications are in the "Forgivable Loan" category and a high percentage are very low income. These two categories have the highest dropout rate before completion because of the applicants' resistance to the program's affordability and owner occupancy restrictions. No new additional funds need to be appropriated for this contract; the funds for this contract are already encumbered in the Single Family Rehab Program (882- 8382-651'..2). /J jJOHN YMONIJ Rede elopme, t irector APPROVED: City Manager ATTACHMENTS: 1. Resolution 2. Contract Amendment REVIEWED BY DEPT.OF FINANCE r: GRa4 � -3 FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT WITH RALPH M. DENNIS FOR CONSTRUCTION SUPERINTENDENT SERVICES FOR NEIGHBORHOOD REVITALIZATION PROGRAM THIS FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT ("Amendment') is entered into this _ day of , 2001 (the "Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic, ("Agency") and RALPH M. DENNIS ("Contractor'). RECITALS A. On 2000, Agency and Contractor entered into that certain Contract Services Agreement ("Original Agreement') pursuant to which Contractor agreed to provide construction superintendent services for the Neighborhood Revitalization Program. B. Agency and Contractor desire to amend the terms of the Original Agreement as more particularly described herein. C. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement. The Original Agreement, as modified by this Amendment, is hereinafter referred to as the "Agreement." NOW, THEREFORE, the parties hereto agree as follows: 1. Section 2.1 of the Original Agreement entitled "Contract Sum" shall be amended to read as follows, the specific amendments shown below as highlighted text: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($125 000 00) (herein "Contract Sum"), except as provided in Section 1.8. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with the percentage of completion of the services, (iii) payment for time and materials based upon the Contractors rates as specified in the Schedule of Compensation, but not exceeding the Contract Sum or (iv) such other methods as may be specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the Agency; Contractor shall not be entitled to any additional compensation for attending said meetings. -1- 2. Full Force and Effect. Except as expressly stated herein, all other terms of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF the Agency and Contractor have executed this Agreement as of the date first written above. "AGENCY" ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic By: By. Assistant Secretary Chairman APPROVED AS TO FORM: BURKE WILLIAMS & SORENSEN, LLP By: Agency Counsel "Contractor" Ralph M. Dennis R.M. Dennis, General Contractor -2- ev .4 • s"' EXHIBIT"A" SCOPE OF SERVICES The Contractor shall act as the Agency's Construction Superintendent on the Agency's Neighborhood Revitalization Program (NRP). The Contractor shall deal with Palm Springs homeowners and contractors in assisting with the implementation of the NRP by overseeing minor and major repairs to single-family residential homes and mobile homes. The following tasks to be performed by Contractor shall be on a case by case basis. Only after the completion of Task A will it be determined if any other Tasks are to be completed. Contractor shall coordinate with Contract Officer before proceeding forward with additional tasks. Services to be provided include: TASK A. Preliminary Feasibility Analysis: Contact property owner to arrange consultation; consult with owner to determine scope of work; perform rough cost estimate of work; complete and submit to Contract Officer the Agency Application Scoring Sheet. TASK B. Proiect Analysis: Consult with owner to create detailed estimate (bid) specification, including health, safety, UBC and zoning requirements; prepare bid specification exhibits. TASK C. Bid Submission: Invite contractors to prepare bids; arrange visits for contractors at property; confer with contractors at property; collect contractor bids; review bids for omissions and corrections; submit bids to Contract Officer and homeowner. TASK D. Proiect Management: Visit project regularly to verify work and schedule compliance; interface between owner and contractor to ensure cooperation and satisfaction; interface between owner and Contract Officer regarding project details; guide contractor and owner regarding work changes and additions; mediate owner and contractor disputes. TASK E. Draw Inspections: Visit jobsite and review compliance of work with specifications; review contractor draw request; determine completion of draw request items by contractor; approve and submit draw request to Contract Officer. -3- ew ,�-,4 EXHIBIT "C" SCHEDULE OF COMPENSATION For each applicant/project, Contractor to submit invoice to Agency upon completion of Task A for the cost of Task A. Invoice to be paid by Agency within regular cycle of Agency's accounts payable. For grants through the Neighborhood Revitalization Program (NRP) that are under $5,000.00, the Contractor shall submit a detailed invoice describing elements of Tasks performed. Invoice to be submitted upon completion of all work at residential unit, unless otherwise approved by Contract Officer in writing. Invoice to be paid by Agency within regular cycle of Agency's accounts payable. In most cases, Tasks completed on grants and deferred loans over $5,000.00 shall be paid to Contractor through loan or grant proceeds from respective rehabilitation project upon completion of respective Task. On any given project, should the rehabilitation project stall or cease to move forward and no loan or grant agreement is executed with the homeowner, the Agency shall pay the Contractor's costs incurred under Tasks B and C. Tasks D and E shall be paid from loan or grant proceeds upon the completion of rehabilitation project. FEE SCHEDULE: Task A $100.00 Preliminary Feasibility Analysis: Contact property owner to arrange consultation; consult with owner to determine scope of work; perform rough cost estimate of work; complete and submit to Contract Officer the Agency Application Scoring Sheet. Task B $400-$700 $400 for projects <$5,000.00 $500 for projects up to $10,000,00 $600 for projects up to $20,000.00 $700 for projects >$20,000.00 Project Analysis: Consult with owner to create detailed estimate (bid) specification, including health, safety, UBC and zoning requirements; prepare bid specification exhibits. -4- 64ed 4-7 Task C $300-$600 $300 for projects <$5,000.00 $400 for projects up to $10,000.00 $500 for projects up to $20,000.00 $600 for projects >$20,000.00 Bid Submission: Invite contractors to prepare bids; arrange visits for contractors at property; confer with contractors at property; collect contractor bids; review bids for omissions and corrections; submit bids to Contract Officer and homeowner. Task D $500-$2,000 $500 for projects <$5000.00 $1000 for projects up to $10,000.00 $2000 for projects up to $25,000.00 Project Management: Visit project regularly to verify work and schedule compliance; interface between owner and contractor to ensure cooperation and satisfaction; interface between owner and Contract Officer regarding project details; guide contractor and owner regarding work changes and additions; mediate owner and contractor disputes. Task E $90 each Draw Inspections: Visit job site and review compliance of work with specifications; review contractor draw request; determine completion of draw request items by contractor; approve and submit draw request to Contract Officer. -5- C� Q-� RESOLUTION NO. 1140 OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE FIRST AMENDMENT TO A CONTRACT SERVICES AGREEMENT WITH RALPH DENNIS IN THE AMOUNT OF $75,000.00 TO PERFORM AS CONSTRUCTION SUPERINTENDENT FOR THE NEIGHBORHOOD REVITALIZATION PROGRAM, CONTRACT FORM SUBJECT TO APPROVAL BY AGENCY COUNSEL -- -- - - -- - - - - - - WHEREAS, on September 15, 1999 the Redevelopment Agency approved the creation of the Neighborhood Revitalization Program (NRP). The Program provides grants and deferred loans to very low to moderate-income households for improvements to the interior and exterior of single family homes and mobile homes; and WHEREAS, an important element of the NRP is the position of Construction Superintendent. This individual is responsible for doing work write-ups on the prospective rehabilitation projects and ensuring quality work is completed for the qualified homeowners; and WHEREAS, Ralph Dennis has successfully performed under the terms of the contract; and WHEREAS, the Agency desires to amend the contract to add funds to bring the program closer to completion. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, that it does hereby approve the First Amendment to a Contract Services Agreement with Ralph Dennis in the amount of $75,000.00 to continue to perform as construction superintendent for the Neighborhood Revitalization Program. Contract form subject to approval by Agency Counsel. ADOPTED this 1st day of August 2001. AYES: Agency Members Hodges, Jones, Oden, Reller-Spurgin and Chairman Kleindienst NOES: None ABSENT: None ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED &APPROVED AS TO FORM ekp m