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HomeMy WebLinkAbout7/31/2002 - STAFF REPORTS (14) DATE: July 31, 2002 TO: City Council FROM: Director of Public Works/City Engineer INDIAN CANYON DRIVE AND ALEJO ROAD IMPROVEMENT REIMBURSEMENT AGREEMENT RECOMMENDATION: It is recommended that the City Council: 1. Approve the Indian Canyon Drive and Alejo Road Improvement Reimbursement Agreement between the City of Palm Springs and The Heavenstone Collections, LLC; and 2. Amend Resolution 20417 to authorize the City Managerto award a construction contract for City Project 00-35, following solicitation of construction bids, for an amount not to exceed $700,000, with subsequent ratification of the construction contract by the City Council at its next regularly scheduled meeting following award of the construction contract by the City Manager. SUMMARY: Approval of this reimbursement agreement will facilitate coordination of improvements to be constructed at Indian Canyon Drive and Alejo Road, the subject of improvements included in the Indian Canyon Drive Two-Way Modification, City Project 00-35, and improvements related to development of Tentative Tract Map(TTM)30453/Planned Development District (PD) 266, BACKGROUND: On July 3, 2002, the City Council approved Final Map 30453, for The Heavenstone Collections, LLC, for development of property located at the northeast corner of Indian Canyon Drive and Alejo Road. The entitlements for Final Map 30453 include widening of Indian Canyon Drive and Alejo Road to their General Plan widths, and require relocation of existing traffic signal and lighting facilities, storm drainage improvements, and other improvements. On July 17, 2002, the City Council approved the plans and specifications, and authorized advertisement for construction bids forthe Indian Canyon Drive Two-Way Modification,City Project 00-35 This project will relocate the one-way to two-way conversion point from Granvia Valmonte to Alejo Road, and requires construction of raised medians within Indian Canyon Drive, between Alejo Road and Granvia Valmonte to channelize southbound traffic east and west at Alejo Road. Currently, staff is preparing City Project 00-35 for construction bidding with a bid opening date of August 13, and expects construction to commence by September 13. Subsequent to the Council's approval of Final Map 30453, the developer has completed processing of associated improvement plans for the street widening, as well as on-site grading. Discussion with the developer indicates that timing of construction related to their project is likely to conflict with the timing of construction related to City Project 00-35. y l Ad Indian Canyon Drive and Nato Road Improvement Reimbursement Agreement July 31, 2002 Page 2 In order to avoid any potential conflicts between the two construction projects, staff extended to the developer the opportunity to partner with the Cityin the construction of their off-site improvements as part of City Project 00-35. In this way, those portions of Indian Canyon Drive and Alejo Road may be widened and modified at the same time, avoiding conflicts between the two projects and challenges for traffic control and public safety. Staff has prepared a reimbursement agreement between the City and the developer, The Heavenstone Collections, LLC, to secure payment for construction of the offsite improvements related to Final Map 30453. Upon opening of construction bids, staff will coordinate with the developer regarding the costs for the Final Map 30453 offsite improvements, and in accordance with the terms of the reimbursement agreement, the developer will submit payment for those costs within 10 days and prior to award of a construction contract for City Project 00-35 of which the Final Map 30453 offsite improvements have been included as part. Included in the Council's approval of the plans and specifications for City Project 00-35 was authorization to allow the City Manager to award a construction contract, following solicitation of construction bids, for an amount not to exceed $575,000, with subsequent ratification of the construction contract by the City Council at its next regularly scheduled meeting following the opening of construction bids. With approval of the reimbursement agreement, adding the developer's offsite improvements to the overallcost of the project, staff is recommending that Council amend its previous authorization to allow the City Manager to award a construction contract for an amount not to exceed $700,000, to reflect the additional cost of thee Final Map 30453 offsite improvements. SUBMITTED: DAVID J. BARAKIAN Director of Public Works/City Engineer APPROVED: , =�` �,��� City Manager ATTACHMENTS: 1. Indian Canyon Drive and Alejo Road Reimbursement Agreement 2. Minute Order 3. Resolution REVIEWED BY DEPT.OF FINANCE .e qft;L CITY OF PALM SPRINGS INDIAN CANYON DRIVE AND ALEJO ROAD IMPROVEMENT REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT (herein "Agreement') is made and entered into this _ day of , 2002, by and between the CITY OF PALM SPRINGS, a municipal corporation, (herein "City") and The Heavenstone Collections, LLC, a California Limited Liability Company (herein "Contractor"). WHEREAS, Indian Canyon Drive and Alejo Road are designated major thoroughfares, designated on the City of Palm Springs General Plan; and WHEREAS, Indian Canyon Drive and Alejo Road are located adjacent to residential property owned and developed, or to be developed, by Contractor; and WHEREAS, Indian Canyon Drive and Alejo Road are not constructed to the full width required by the City of Palm Springs General Plan in the area adjacent to the residential property owned and developed, or to be developed, by Contractor; and WHEREAS, as a condition of approval of Tentative Tract Map 30453 and Planned Development District (PD-266) for a six lot multi-family residential complex located on the property owned by Contractor and to be developed by Contractor, Contractor is obligated to construct, or provide for the construction of specified improvements to Indian Canyon Drive and Alejo Road; and WHEREAS, for the benefit, in part of Tentative Tract Map 30453 and PD-266, the City has initiated City Project 00-35 to construct the portions of Indian Canyon Drive and Alejo Road adjacent to the residential property owned and developed, or to be developed, by Contractor; and WHEREAS, in order to fulfill its obligation to construct, or provide for the construction of specified improvements of Indian Canyon Drive and Alejo Road, Contractor has agreed, and hereby agrees to provide payment to the City for the full costs of constructing the Indian Canyon Drive and Alejo Road street improvements to which Contractor is obligated as specified in Tentative Tract Map 30453 and PD-227 and related City Planning documents, as well as pay a construction management and inspection fee; and WHEREAS, in order to fulfill its obligation to construct, or provide for the construction of specified improvements to Indian Canyon Drive and Alejo Road, Contractor agrees that all payments to which Contractor is obligated, as specified in this Agreement, shall be made in one lump sum in advance of the execution of the Contract awarded to the prevailing bidder as determined by the City; and WHEREAS, Contractor agrees that the determination and selection of the prevailing bidder shall be at the sole and exclusive determination of the City; and NOW, THEREFORE, the parties agree as follows: IVY 1032/014084-0001 CONTRACT SVCS AGR 84704.02 a07/24/02 -1 of 8- WITH 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services In compliance with all of the terms and conditions of this Agreement, the Contractor shall perform its obligations as set forth in the "Scope of Services" attached hereto asEzhibit "A" and incorporated herein by reference. Contractor warrants that its obligations set forth in the Scope of Services will be performed in a timely and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits Fees and Assessments Contractor or the selected construction contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 2.0 ADVANCE PAYMENT TO CITY: SUM 2.1 Agreement Sum. As set forth in Exhibit "A", Contractor agrees that it shall pay the City the total sum of twenty-five percent (25%) of Bid Item 25 of Bid Schedule A and one hundred percent (100%) of Bid Schedule B, as determined by reference to the Bid Schedules of the Bid Documents for City Project 00-35, submitted by the lowest, responsive prevailing bidder, as determined and accepted by the City. The Agreement Sum shall be subject to modifications for City-approved change orders in accordance with Exhibit "A". The method and timing of the payment amount is discussed and set forth inExhibits "A" and "B". 3.0 COORDINATION OF WORK 3.1 Representative of Contractor. Mark Temple, Manager of Palm Springs Canyon Gate, LLC, a Managing Member of Contractor, is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the obligations specified herein and make all decisions in connection therewith. 3.2 Contract Officer. The City Engineer is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith ("Contract Officer"). The City Manager of City shall have the rightto designate another Contract Officer by providing written notice to Contractor. 1032/014084-0001 CONTRA AA R 84704.02 a07/24/02 -2 of 8- WITH 3.3 Prohibition Against Subcontracting or Assignment Contractor shall not contract with any entity to perform in whole or in part the obligations required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 4.0 TERM 4.1 Term. Unless earlier terminated in accordance with Section 4.2 below, this Agreement shall continue in full force and effect until the completion of the construction of improvements to portions of Indian Canyon Drive and Alejo Road that are the subject of Bid Item 25 of Bid Schedule A and Bid Schedule B. 4.2 Termination. The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. Where termination is due to the fault of the Contractor, the period of notice may be a shorter time as may be determined by the Contract Officer. In addition, Contractor may terminate this Agreement, with or without cause, before the condition in Tentative Tract Map 30453 and PD-266 requiring Contractor to perform the obligations under this Agreement becomes effective and upon sixty (60) days written notice to the City. In the event of termination by the City, the City shall be entitled to retain only that portion of the advance payment covering the value of the work product actually completed at the time of the effective date of termination. In the event of termination by Contractor as provided hereunder, the City shall be entitled to retain only that portion of the advance payment covering the value of the work product actually completed at the time of the effective date of termination in addition to any termination costs charged by the construction contractor performing the work, and an amount sufficient to cover all costs associated with the City having to obtain a new construction contractor. To this end, in the event of termination by the Contractor, the City shall reimburse to Contractor the amount equal to the difference between the advance payment set forth in Exhibit "A", and the value of the work product actually completed at the time of the effective date of termination excluding the aforementioned termination costs and costs associated with having to obtain a new construction contractor, but reimbursement shall be made only after City obtains a replacement construction contractor. In the event of termination without cause pursuant to this section, the terminating party need not provide the non- terminating party with any opportunity to cure. 5.0 MISCELLANEOUS 5.1 Covenant Against Discrimination Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. tosvoom CONTRACT SVCS AGR , sn7oa.02.ox a07 amnaoa -3 of 8- WITH 5.2 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 5.3 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 5.4 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, CA 92263-2743, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. 5.5 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 5.6 Integration; Amendment It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement with the exception of City land use and planning documents relating to Tentative Tract Map 30453 and PD-266. Such City planning documents may be used to determine the scope of Contractor's obligations and are hereby incorporated by reference for that limited purpose. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 5.7 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. osvoiaosa-000i CO * NT 84704.02 aon24/o>_ -4 of 8- WIT 5.8 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 5.9 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees, whether or not the matter proceeds to judgment. 5.10 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. [END— SIGNATURE PAGE FOLLOWS] 1032/014084-0001 CONT R 84704.02 a07/24/02 -5 of 8- WITH 7 EXHIBIT "A" SCOPE OF SERVICES 1. The Proiect: The project consists of those improvements to Indian Canyon Drive and Alejo Road required to be constructed by Contractor as specified in Tentative Tract Map 30453 and PD-266. The required improvements include, but are not limited to, removal of existing curb, gutter, sidewalk, catch basin, asphalt concrete pavement, and traffic signal and lighting facilities; and construction of curb, gutter, sidewalk, catch basin and storm drainage improvements, driveway approach, asphalt concrete paving, and installation of traffic signal and lighting facilities for the portion of Indian Canyon Drive and Alejo Road that is adjacent to the Contractor's development which is the subject of Tentative Tract Map 30453 and PD-266. 2. City to Obtain Bids for the Project: For the purpose of determining the cost of the improvements required to be paid by Contractor, the City shall advertise the project with Bid Schedule A and Bid Schedule B. Bid Item 25 of Bid Schedule A represents one hundred percent (100%) of the modification and relocation of the existing traffic signal and lighting facilities at the intersection of Indian Canyon Drive and Alejo Road, of which twenty-five percent (25%) represents the Contractor's obligated portion as set forth in Tentative Tract Map 30453 and PD-266. Bid Schedule B represents one hundred percent (100%) of the construction of Indian Canyon Drive and Alejo Road street improvements, all of which are the Contractor's obligation as set forth in Tentative Tract Map 30453 and PD-266. 3. Contractor Obligated to Pay its Construction Costs: To fulfill its obligations to construct or provide for the construction of the specified Indian Canyon Drive and Alejo Road improvements, Contractor shall pay the City the total sum of twenty-five percent (25%) of Bid Item 25 of Bid Schedule A and one hundred percent (100%) of Bid Schedule B, as bid by the lowest responsive bidder accepted by the City. This payment shall be made in accordance with the schedule of payment set forth in Exhibit "B". 4. Contractor Obligated to Pay Management Fee: In addition to the payment obligation specified in Section 3 of Exhibit "A", Contractor shall pay a management and construction inspection fee equal to ten percent (10%) of the total sum of twenty-five percent (25%) of Bid Item 25 of Bid Schedule A and one hundred percent (100%) of Bid Schedule B, as determined by referencing the bids accepted by the City. 5. Change Orders: The City may make any change order to the specifications of the Project as may be necessary from time-to-time to complete the Project, and any costs therefore shall be payable by Contractor and shall be made in accordance with the schedule of payment set forth in Exhibit "B". Any City authorized change order shall require prior written notice by City to Contractor's representative. After Contractor's receipt of such notice and unless waived by Contractor, City and Contractor shall meet to discuss any proposed change order. Contractor shall be entitled to review the proposed change orders, including any plans therefore prior to the City's approval of the change order. Aq EXHIBIT"B" (Page 1 of 1) 1032/014094-0001 TO CONTRACT SVCS AGR 84704.02 a07/24/02 -7 of 8- WITH EXHIBIT "B" SCHEDULE OF PAYMENT 1. Contractor Obligated to Make a Single Advance Payment: Once the City has selected a general construction contractor (following the bid process) to construct the Indian Canyon Drive and Alejo Road improvements, the City shall notify the Contractor in writing of the Contractor's obligated costs, as specified in Sections 3 and 4 of Exhibit "A". Within 5 calendar days following the receipt of such notice, Contractor shall provide a single lump sum payment equal to the total sum of twenty-five percent (25%) of Bid Item 25 of Bid Schedule A and one hundred percent (100%) of Bid Schedule B, plus ten percent (10%) of that total sum to the City. 2. Change Orders: Any additional costs payable by Contractor as a result of any City authorized change order shall be paid by Contractor to City within 5 calendar days of the City's approval of such change order in accordance with the requirements of Exhibit "A". 1 Y)41 EXHIBIT"B" (Page I of 1) ID32/014084-0001 TO CONTRACT SVCS AGR 84704.02 a07/24/02 -8 of 8- WITH MINUTE ORDER NO APPROVING THE INDIAN CANYON DRIVE AND ALEJO ROAD IMPROVEMENT REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND THE HEAVENSTONE COLLECTIONS, LLC I HEREBY CERTIFY that this Minute Order, approving the Indian Canyon Drive and Alejo Road Improvement Reimbursement Agreement between the City of Palm Springs and The Heavenstone Collections, LLC, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 31" day of July, 2002. PATRICIA A. SANDERS City Clerk RESOLUTION NO OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING RESOLUTION 20417 BE IT RESOLVED by the City Council of the City of Palm Springs that Section 4 of Resolution 20417 shall be amended as follows: 4. That the City Manager is hereby authorized to award a construction contract to the lowest responsible bidder, pursuant to law,following solicitation of construction bids,for an amount not to exceed $700,000, with subsequent ratification of the construction contract by the City Council at its next regularly scheduled meeting following award of the construction contract by the City Manager. ADOPTED this day of , 20 AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED AS TO FORM