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2004 10 05 RDAe4 4 4496& Redevelopment Agency Agendas are Available on the City's Web Page @ www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, October 5, 2004 - 2:00 P.M. Beginning Resolution No. RA 2004-15 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson PUBLIC COMMENT At this time, members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. CLOSED SESSION - NONE NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when the Agency is considering acquisition of real property. RECONVENE AT 3:00 P.M. Redevelopment Agency Agenda 1 October 5, 2004 PUBLIC COMMENT At this time members of the public may address the Agency Board on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Agency Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to the Agency beginning consideration of that item. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF SEPTEMBER 22, 2004. CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 5, 2004. 2. APPROVAL OF A CONTRACT AMENDMENT WITH GMA INTERNATIONAL FOR MONUMENT SIGNAGE DESIGN SERVICES FOR SilverRock RESORT. 3. APPROVAL OF A CONTRACT CHANGE ORDER WITH WEITZ GOLF FOR THE IRRIGATION WELL WATERLINE AT SilverRock RESORT, GOLF COURSE NO. 1, PROJECT NO. 2002-07C. 4. APPROVAL TO AWARD A CONTRACT FOR THE SilverRock RESORT ON -SITE AND LANDSCAPE IMPROVEMENTS FOR THE MAINTENANCE FACILITY AND TEMPORARY CLUBHOUSE, PROJECT NO. 2002-071. BUSINESS SESSION - NONE STUDY SESSION - NONE Redevelopment Agency Agenda 2 October 5, 2004 CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — 1. JOINT PUBLIC HEARING BETWEEN THE REDEVELOPMENT AGENCY AND THE CITY COUNCIL TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 53-195 AVENIDA ALVARADO BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND FRANCISCO NUNEZ AND MARIA MACIAS. A. MINUTE ORDER ACTION ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on October 19, 2004, commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, October 5, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 1 1 1, on Friday, October 1, 2004. DATED: October 1, 2004 S�— '-ef -"� JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 3 October 5, 2004 October 4, 2004 Via Hand Delivery Honorable Mayor and City Council City of La Quinta Post Office Box 1504 La Quinta, CA 92247-1504 Lic. #766304-A&B 1 OCT 0 4 2004 Re: SilverRock Resort On -Site and Landscape Improvements for the Maintenance Facility and Temporary Clubhouse Subject: Declaration of Non -Responsible Bid Dear Sirs: In a communication we received from Mr. John Freeland dated October 1, 2004, we were advised of the City's intent to declare the bid from Cora Constructors to be non -responsive. The letter from Mr. Freeland sets forth three purported grounds for declaring our bid non -responsive. We believe that the items raised by Mr. Freeland are, at most, immaterial deviations over which the City of La Quinta can, and should, exercise its discretion to waive. Below, we've set forth the particular reasons why we believe the issues raised by the City of La Quinta are, at most, immaterial deviations, however, before reviewing our specific response, I thought it would be helpful to set forth what we consider to be the standard for determining whether or not a public works bid is non -responsive: The specifications for this project adopt some Caltrans regulations as part of the specifications, and these regulations require an authorized signature. But the board does have discretion to waive details of the bid specifications if it determines that such a waiver will not make the bidding process unfair, i.e., if the deviation from the specifications is inconsequential. (47 ps.Cal.Atty.Gen. 129 (1966).) Menefee v. County of Fresno (1985) 163 Cal.App.3d 1175, 1180. Here, the only irregularity regarding the bid submitted by Cora Constructors is that we did not do the math to calculate the percentage of work being performed by us, though we did provide the numbers from,which this number can be determined. Anyone can see from totaling the amounts for the subcontracts and dividing by the total amount of our bid that less than 50% of Cora Constructors' bid is being performed by subcontractors. Performing this calculation after the bid based upon information included in our bid does not give Cora Constructors an unfair advantage against any other bidder since we're being held to the same standard. In response to Item #1: I recognize that we did not write in the percentage of work to be performed by each subcontractor, however this information was set forth in the bid schedule. We simply ran out of time while closing the bid. The trades listed as being subcontracted are landscaping, pavement striping, asphalt paving, and electrical. Each of the subtrade's value of work is reflected in the sixty-one item bid schedule and can be easily calculated. 74885 JONI DRIVE, SUITE 4 PALM DESERT, CA 92260 PH. (760) 674-3201 •. FAX (760) 674-3202 Honorable Mayor and City Council City of La Quinta October 4, 2004, Page 2 Attached is a copy of the Public Contract Code Section 4104. It is not a legal requirement to "state the percentage of work to be performed by each subcontractor listed". Therefore, the bid is not in nonconformance with the Public Contract Code as claimed by Mr. Freeland in his attached letter. In response to Item #2: As noted in the response to Item #1 above, the percentage of work to be contracted can be calculated from the bid schedules. The summary is: Zoltan Paving — Asphalt Paving Bid Item #7 $153,340.00 Bid Item #35 124,436.40 Sierra Landscape — Landscaping Bid Item #31 $110,000.00 Bid Item #52 157,000.00 C-18 — Striping Bid Item #14 $500.00 Bid Item #15 1,230.00 Bid Item #41 500.00 Bid Item #42 3,260.00 Brudvik Electric — Electrical Bid Item #29 $16,000.00 Bid Item $51 110,000.00 Total Subcontracted Work $676,266.00 Total Percent of Subcontracted Work 35% Mr. Freeland states that "Cora failed to show it will perform 50% or more of the project scope of work", however this is not a requirement of the Public Contract Code, Standard Specifications for Public Works Construction, or the Instructions to Bidders. Attached is a copy of the Standard Specification for Public Works Construction Section 2-3.2 which required the General Contractor to perform at least 50% of the work, but there is no requirement to "show" this in the bid documents. We have "shown" that we are performing 65% of the work in this letter, which can be verified in the proposal. We chose to subcontract work based upon the shortest possible time for completion. In response to Item #3: We respectfully disagree that we did not submit the required Non -Collusion Affidavit with our bid. Just before leaving the office with the proposal documents, we made a copy for our records. Our copy includes the executed Non -Collusion Affidavit. Our proposal was turned in with a binder clip holding it together, not a staple. The Affidavit was likely misplaced while reviewing the bid. Attached is a new wet -signed Affidavit as well as a copy of our proposal as it existed when it left the office. The only difference is that we hand wrote the remaining bid schedule figures and listed Honorable Mayor and City Council City of La Quinta October 4, 2004, Page 3 one additional subcontractor. We have also included a swom statement from the person responsible for preparing the bid documents. Even though we are certain the Affidavit was submitted, we also offer the following. We have attached a copy of Public Contract Code 7106. The Affidavit reads that it is to be submitted with the bid but there is not language that indicates the bid will be non -responsive for failure to submit. This Section does require that the "Public Works Contract shall include the affidavit. No advantage was gained by Cora even if the Affidavit was not submitted with the bid. Considering the above, we do not believe that the bid is non -responsive and therefore should be awarded to Cora Constructors. As noted in the Invitation to Bid, the City reserves the right to .waive any irregularities in the bids. It is important to note that Cora had no advantage over the other bidders due to any omissions or irregularities. We have consulted with our attorney in this matter, and he offered the following information: "In reviewing this matter, I determined that La Quinta's personnel are probably reacting to a decision in Valley Crest Landscape v. Co of Davis wherein the low bidder was allowed to recalculate his percentage of subcontractors after the bid was opened to restate the percentage of work subcontracted from something in excess of 80% to something less than the 50% required in the call for bids. The Court of Appeal said you can't do that because he could have withdrawn his bid based upon this "mistake", even though he didn't withdraw it. This is not your situation as I understand it because all information for calculating the percentage of subcontracted work is within your bid, you just didn't make the calculation. But, if you had, or if someone else would do it now, the percentage was and is less than 50%". Cora has the resources available to meet the tight schedule restraints for this project. We produce only first Gass workmanship, even under the toughest conditions. We look forward to a successful and mutually beneficial project. If you have any questions or need further information, please contact me on my cell phone at (760) 954-1049. 1 will also attend the City Council meeting on October 5, 2004 to answer any questions or concerns. Sincerely, CORA CONSTRUCTORS Dennis E. Stockton Manager Enclosures October 4, 2004 Lic. #766304-A&B I, Karen P. Lowe, an employee of Cora Constructors, do solemnly swear that the following is true and correct: • 1) That I was responsible for the bid documents turned in to the City of La Quinta for the SilverRock Resort On -Site Landscape Improvements for the Maintenance Facility and Temporary Clubhouse; 2) That I did notarize the Non -Collusion Affidavit and verified that it was included in the bid package prior to delivery; 3) That just before the bid left the office for delivery to the City of La Quinta, I did make a complete copy of the bid for our records. A copy of the Non -Collusion Affidavit that I notarized is attached to this document. 74885 JONI DRIVE, SUITE 4 PALM DESERT, CA 92260 PH. (760) 674-3201 • FAX (760) 674-3202 10/04/2004 16:01.FA% 17609300681 Q 001 Qomcro.C_)rcnera1 Construction Corn. Gcnc:rcil Ngine.erin8 C'.ontmctor - ticcnec: #657359 ■ DBE/mht - UUCP Cc:rtified #15511 t�CltY Of la uinta 10/4/0� _ Public Works/ Engineering -� o PO Box 1504 IA Quinta, CA 92253-1504 rr, Attn: John M. Freeland RE: Silverrock Resort Onsite and Landscape Improvements For The Maintenance cn Facility and Temporary Clubhouse mEn Dear Mr. John M. Freeland, In response to your letter dated October 1 `t 2004; Romero General Construction feels that the reasons indicated in your letter are not terms for a "Non -Responsive" Bid. The factors indicated in your letter are "minor irregularities." Romero General will be self - performing over 50'/0 of the contract and' will be happy to forward the subcontractors percentages at your request. It is our understanding that the City has the right to waive any minor irregularities it deems. Romero General Construction would like to formally request that the City waive this "minor irregularity." By waiving this "minor irregularity" the City will be saving $166,878 of public funds. Romero General Construction respectfully submits that the City with draws their "Non -Responsive Bid" and awards the above referenced contract. Thank you for taking the time to review this matter, we look forward to your reply. If you have any questions or concerns please feel free to give me a call. Respectfully, Sarah Valdez Project Manager 2150 N. Centric City Pkvy . (Suit:; 1 k FAcondido. CA 92026 (760) 489.-&1.2 a fex: (760) 489-1460 CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — 1. JOINT PUBLIC HEARING BETWEEN THE REDEVELOPMENT AGENCY AND THE CITY COUNCIL TO APPROVE' AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 53-195 AVENIDA ALVARADO BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND FRANCISCO NUNEZ AND MARIA MACIAS. A. MINUTE ORDER ACTION ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on October 19, 2004, commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of Tuesday, October 5, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 111, on Friday, October 1, 2004. DATED: October 1, 2004 JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 3 October 5, 2004 COUNCEURDA MEETING DATE: OCTOBER 5, 2004 ITEM TITLE: Demand Register Dated October 5, 2004 RECOMMENDATION: It is recommended the Redevelopment Agency Board: AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated October 5, 2004 of which $166,107.44 represents Redevelopment. Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA COUNCIL/RDA MEETING DATE: October 5, 2004 ITEM TITLE: Approval of a Contract Amendment with GMA International for Monument Signage Design Services for SilverRock Resort RECOMMENDATION: �rw AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: c.�+ STUDY SESSION: PUBLIC HEARING: Approve a contract amendment with GMA International in an amount not to exceed $20,000 for monument signage design services for SilverRock Resort, and authorize the Executive Director to execute the amendment. FISCAL IMPLICATIONS: The City's Capital Improvement Program 2004/2005 budget includes $5,184,200 for professional services for the SilverRock Resort project. An additional $576,102 has previously been transferred from the project contingency account to cover grow -in services and other contract amendments, for a total professional services budget of $5,760,302. There is $731,739 in professional services funds available. Of this amount, $640,000 has been designated for permanent clubhouse architectural services. BACKGROUND AND OVERVIEW: In November 2002, the Agency Board awarded a contract to GMA International in the amount of $234,650 to create a conceptual master plan for SilverRock Resort. Subsequently, a second contract was approved by the Agency Board on June 17, 2003, in the amount of $144,600 for additional master plan coordination services, including: preparation of a water management plan (via a subcontract with PACE), master plan refinement in coordination with Palmer Course Design Company's golf course design, preparation of a conceptual grading and drainage plan, preparation of a conceptual landscape plan, preparation of project entry concepts for Jefferson Street and Avenue 54, preparation of a detailed design for the Avenue 52 entry, and website maintenance services. On December 16, 2003, the Agency Board approved a third contract with GMA in the amount of $92,100 to provide site planning for several key areas (clubhouse to resort core area, special use and casitas areas in relation to the golf course), resort golf course conceptual routing, facility site plan coordination with the Dahlin Group (building architect), detailed design for the Jefferson and Avenue 54 entrances, updating of the illustrative master plan, and miscellaneous planning/coordination services. With the award of a perimeter landscape construction contract on September 7, 2004, it is imperative to address the issue of monument signage. Because of GMA's previous involvement with the project, staff requested GMA to create signage concepts under their third contract. GMA presented these concepts to the Agency Board on September 22, 2004. The Agency Board requested modifications (i.e., sign verbiage, size, materials, etc.), as well as a life-size mock-up to be placed on -site. This extra work necessitates a contract amendment (Attachment 1) in an amount not -to - exceed $20,000. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a contract amendment with GMA International in an amount not to exceed $20,000 for monument signage design services for SilverRock .Resort, and. authorize the Executive Director to execute the amendment; or 2. Do not approve a contract amendment with GMA International in an amount not to exceed $20,0000 for monument signage design services for SilverRock Resort, and do not authorize the Executive Director to execute the amendment; or 3. Provide staff with alternative direction. Respectfully submitted, V Mark Weiss, Assistant Executive Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. GMA Contract Amendment 2 ATTACHMENT 1 Planning + Landscape Architecture ----M A jA Entitlement + Environmental Specializing in Golf and Resort Communities September 27, 2004 Mr. Mark Weiss Assistant Executive Director La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 Re: SilverRock Resort, Proposal Signage Design Services Dear Mark: In regards to our recent discussions, our understanding of the additional signage design work necessary, as well as and the work necessary to assist the RDA in granting an approval for the project signs, we have summarized for your review and approval our proposed scope of work and associated budget to accomplish the necessary tasks, as follows: Task One: Refine conceptual design as directed by the RDA, as well as prepare additional options pursuant to the request and comments received at the September 22na RDA public hearing. • Color scheme alternatives • Materials alternatives • Verbiage contained on the signs • Size of letters, size of sign panel • Signage placement refinement options • Lighting options Prepare design sketches depicting the refinements and the appropriate options, suitable for city staff and RDA review and analysis purposes. Task Two: Prepare a mock up suitable for "in the field" sign placement review purposes. • Prepare overall dimensioned and labeled drawings of the conceptual design and the various options to be considered suitable for the City of La Quinta public works fabrication purposes. • Coordination with the appropriate City staff members during the City's preparation of a rough fabrication of a "baseline" sign/monument design. • Assist with identifying "in the field" signage/monument placement location options 2700 Newport Blvd- Ste 190 • Newport Beach, CA 92663 'hone_ (949) 675-9559 fax: (949) 675-9552 e-mail: gmaDGMAintl.net • websitea www_GMAint7.net Mr. Mark Weiss September 27, 2004 Page 2 of 3 Task Three: Provide photography documenting the signage size and location options as placed in the field. Based on the field photography, GMA will digitally manipulate and electronically stitch the various size options of the signage/monument into the field photographs. Analyze the options and identify the preferred option that best incorporates RDA priorities. Task Four: Prepare information suitable for city staff report purposes. This task will involve the preparation of a fully colored illustrative sign/monumentation plan and elevation design for RDA review and public hearing purposes. The drawings will reflect the recently approved components for the two project areas, such as, grading plans, landscape plans, improvement plans, lake/rock placement plans, utility box placement and signalization poles. The illustrative elevation sketches will also include the Coral Mountains in the back ground. In addition, this task will also involve the preparation of a power point presentation for RDA public hearing purposes. Task Five: Prepare a preliminary cost estimate of the preferred plan and design for fabrication, construction and installation of the signage/monumentation. This task will involve working with a sign company that will provide a preliminary cost estimate for the signage fabrication, construction and installation. Task Six: Attend and conduct a presentation to the RDA for review and acceptance of a preferred signage/monumentation plan, elevations and location placement. Task Seven: Based on comments received from the RDA and city staff, prepare minor refinements to the signage design selected. This task assumes minor comments will be received from the RDA. Drawings will be prepared suitable to be transmitted to the appropriate team members for fabrication, construction and installation. Task Eight: Provide miscellaneous coordination as directed by the RDA. The above scope of work will be provided as expeditiously as possible so as to provide a seamless "design -to -construction" process for this portion of the first phase of development. Upon receiving your construction schedule for this component of the project we will schedule your timing requirements into our "GMA" work load and assign the necessary resources to meet your timeline. Our fee to accomplish the above will be as follows: Task One: Refine Conceptual Design and Analyze Options $ 4,500.00 q Mr. Mark Weiss September 27, 2004 Page 3 of 3 Task Two: Coordination of Mockup Preparation for In -the -Field Review $ 1,600.00 Task Three: Provide a Photo Analysis and Determine Preferred Option $ 2,500.00 Task Four: Prepare Presentation Package $ 3,500.00 Task Five: Prepare a Preliminary Cost Estimate $ 1,850.00 Task Six: Presentation to the RDA $ 800.00 Task Seven: Finalize Sign Design Refinements $ 1,200.00 Task Eight: Miscellaneous Coordination $ 1,500.00 $17,450.00 This work will be considered an extra to our existing contract dated December 17, 2003. All terms of that contract will apply. For the purposes of this contract, we suggest that you allocate $2,500.00 for reimbursable, out-of-pocket expenses. Mark, if you and/or the RDA agree with the above scope of work, please indicate with your signature below and return a signed agreement to our office for our files and we will continue with our design effort so as to not cause a delay in your construction schedule. Sincerely, GMA International • Steve Garcia Vice President q•Z9�o� Dee Cc: Gil Martinez Accepted, City of La Quinta Redevelopment Agency Signature Title Date ce4l,�, 4 �0,9b(r PROFESSIONAL SERVICES AGREEMENT AMENDMENT PROJECT: SilverRock Resort Planning Services CONSULTANT: GMA International Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following described work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, general conditions, and special provisions of the original Contract. DESCRIPTION OF CHANGE Provide monument signage design services for SilverRock Resort. Contract #1 Amount $23400.00 Contract #2 Amount $144,600.00 Contract #3 Amount $92,100.00 Add this Amendment $ Total Submitted By: Date: Approved By: Date: We, the undersigned Consultant, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all services necessary to complete the above specified work, and hereby accept as full payment the amount shown above. Accepted By: Consultant: Title: Date: PSA96041.doc O� �a/VV►► •�p ' , o '9wS AGENDA CATEGORY: F BUSINESS SESSION: COUNCIL/RDA MEETING DATE: October 5, 2004 CONSENT CALENDAR: ITEM TITLE: Approval of a Contract Change Order with Weitz Golf for the Irrigation Well Waterline at SilverRock STUDY SESSION: Resort, Golf Course No. 1, Project No. 2002-07C PUBLIC HEARING: RECOMMENDATION: Approve a Contract Change Order (CCO) No. 24 (Attachment 1) in the amount of $148,298.78 for the Irrigation Well waterline at SilverRock Resort, Golf Course No. 1, Project No. 2002-07C. FISCAL IMPLICATIONS: None. This CCO moves the construction of the irrigation well waterline from the Irrigation Well Project (Project No. 2002-07J) to the Golf Course No. 1, Project No. 2002-07C. Staff anticipates the Irrigation Well Project will therefore be reduced by approximately the CCO amount when bids are opened within the next 30 days. BACKGROUND AND OVERVIEW: On August 3, 2004, the Agency approved for advertisement the plans and specifications for the SilverRock Resort Irrigation Well, Project No. 2002-07J.. A pre -bid meeting was held with the potential bidders for the project where it was discussed that the 3,810 feet of waterline that connects the proposed well to the on -site water system could be constructed more economically by the Agency's golf course contractor, Weitz Golf. Weitz Golf also has a portion of the required materials on -site that will be credited if used for the irrigation waterline. For these reasons, staff believes a small savings could be realized by shifting the waterline portion of the Irrigation Well Project to the golf course contractor. The savings should be realized when the irrigation well bids are opened within the next 30 days. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1 . Approve Contract Change Order No. 24 in the amount of $148,298.78 for the Irrigation Well waterline at SilverRock Resort, Golf Course No. 1, Project No. 2002-07C; or 2. Do not approve a Contract Change Order No. 24 in the amount of $148,298.78 for the Irrigation Well waterline at SilverRock Resort, Golf Course No. 1, Project No. 2002-07C and leave the waterline construction in the Irrigation Well Project No. 2002-07J; or 3. ' Provide staff with alternative direction. Respectfully submitted, 1z �Tothy ona n, P. E. Public Works Director/City Engineer Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Contract Change Order No. 24 T:\PWDEPT\COUNCIL\2004\10-05-04\C 3 2002-07 C.doc 2 ATTACHMENT 1 Sheet 1 of 1 CONTRACT: SilverRock Resort Golf Coarse Construction PROJECT NO. 2002 — 07J CONTRACTOR: Weitz Golf International CONTRACT CHANGE ORDER NO. # 24 Pursuant to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following described work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, general conditions, and special provisions of the original Contract. DESCRIPTION OF CHANGE Site well construction Is not included In Weitz contract. Weitz Gulf's proposal is to supply and install 3810 linear feet of 14" C905 PVC wipe, jncladjoe ductile iron MW per alas. Weitz will be able to use the 14" pipe that was oarchased for the turnout at hole #15, which will reduce the cost of the #15 turnout installation. Weitz has requested an additional 12 days be added to their contract; Project # 2002- 07J See attached cost breakdown Previous Contract Amount Through Change Order No. 23 $11,7449905.54 Add This Change Order No.24 S 148 98.78 Revised Contract Total $ 1198912204.32 By reason of this contract change order the time of completion is adjusted as follows: 12 days added/deleted to contract time. The original coatraet conrWon date is.- INN 4 The revised contract completion date shill be: 11/ 22 N04 Submitted By: Date: 09-23-04 Approved By: Date: We, the undersigned Contractor, ham gim cwVwl cons t e proposed and hereby agree if this proposal is approved that we will provide all equipment, furnish 1 materials, pe or t as may noted above, and perform all services necessary to complete the above speed work, and here t as s n above, hick includes all direct and indirect overhead expenses for any delays. � � �� _� scow► Accepted By: - TYtle. Contractor: LZ Date: ZG�LI 3 Weitz Golf Construction, Inc. 8/27/2004: Silver Rock Resort 43525 RidgePark Drive, Suite 200 14 inch Well Line Project: G12500 Temecula, CA 92590 CCD Exhibit Scope of Work: Supply and Install 3810 Linear feet of 14" C905 PVC pipe, including ductile iron fittings per plan. Our proposal is ONLY for the installation of the pipe, we have not included any portions of the work pertaining to the construction of the well and related appurtenances required to complete the scope of Project # 2002-07J. Description of Work 14" C905 PVC Pipe and Fittings Dust Control Additional Bond and Insurance 2% Additional N My: Richard G. Stevens Weitz Golf Construction, Inc. Qty Unit Unit Price Total 3810 LF $ 35.59 $ 135,590.96 1 LS $ 9,800.00 $ 9,800.00 Subtotal $ 145,390.96 1 LS $ 2,907.82 $ 2,907.82 Total $ 148,298.78 12 4 T4bt 4 s4P COUNCIL/RDA MEETING DATE: October 5, 2004 ITEM TITLE: Approval to Award a Contract for the SilverRock Resort On -Site and Landscape Improvements for the Maintenance Facility and Clubhouse and Retreat, Project No. 2002-071 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Declare Cora Constructors bid as Non -Responsive for failure to properly complete the bid documents; and Declare Romero General Construction Corp. bid as Non -Responsive for failure to properly complete the bid documents; and Approve an allocation of $554,000.00 from Project Area No. 1 economic development reserves to Project 2002-071; and Approve an award of contract to Pacific Hydrotech Corporation in the amount of $2,138,107.85 to construct Project No. 2002-071, SilverRock Resort On -Site and Landscape Improvements for the maintenance facility and temporary clubhouse. FISCAL IMPLICATIONS: The Capital Improvement Program (CIP) 2003/2004 budget included funds for construction of the SilverRock Resort project. On August 17, 2004, the Agency approved the plans and specifications for advertisement for the miscellaneous paving and landscaping improvements for the SilverRock Resort Clubhouse and Retreat and the maintenance facility. On September 30, 2004, the Agency received four bids for the Project (Attachment 1). Pacific Hydrotech Corporation of Perris, California is now recognized as the lowest responsive bidder with a bid of $2,138,107.85. The engineer's estimate for constructing the miscellaneous paving and landscaping improvements around the clubhouse and retreat and the maintenance facilities is $1,691,000 which included a 10% contingency. S:\CityMgr\STAFF REPORTS ONLY\10-5-04\C 9 2002-071.doc Based on the lowest responsive bid, the proposed revised construction budget for this project is as follows: Construction: Contingency (5%): Grand Total: $2,138,108 $ 106,905 $ 2, 245,013 In consideration of the difference between the previously proposed budget and the actual recommended amount of award, staff is recommending a project contingency budget of 5 %. This project will be constructed with Agency funds. The contractor is required to pay prevailing wages. Administration, testing, and inspection of this project are included within the construction management contract with Heinbuch Golf. The Keith Companies included construction survey for this project within the scope of their contract for civil engineering services; therefore, no additional funding is required for construction surveying. BACKGROUND AND OVERVIEW: Upon review and evaluation of the bids received, staff noted that both Cora Constructors and Romero General failed to state percentages of work to be performed for their respective subcontractors listed. This is in violation of California Public Contract Code and the Standard Specifications for Public Works Construction and the reason supporting staff's recommendation to declare these bidders as "Non -Responsive." In addition, Cora Constructors did not submit a "Non -Collusion Affidavit" which is required to be submitted with the bid. The City Council approved the Fiscal Year 2003/2004 CIP on May 20, 2003. This year's CIP includes the construction of the SilverRock Resort Phase I Improvements. Previous actions approved the award of construction for both the maintenance facility and temporary clubhouse on the project site. This project will complete these improvements by adding perimeter landscaping, entry drives, and parking lots for both facilities. Contingent upon Agency approval of the award of contract, the following is the project schedule: . Construction Award October 5, 2004 Construction Period October through December 2004 2 S:\CityMgr\STAFF REPORTS ONLY\10-5-04\C 9 2002-071.doc FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Declare Cora Constructors 'and Romero General Construction Corp. bids as Non -Responsive for failure to properly complete the bid documents; approve an allocation of $554,000.00 from Project Area No. 1 economic development reserves to Project 2002-071; and approve an award of contract to Pacific Hydrotech Corporation in the amount of $2,138,107.85 to construct Project No. 2002-071, SilverRock Resort On -Site and Landscape Improvements for the maintenance facility and temporary clubhouse; or 2. 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FISCAL IMPLICATIONS: The Agreement would result in the Agency receiving approximately $87,000 from the sale proceeds. The Agency would also issue a $70,000 silent second trust deed loan to insure that the dwelling is affordable to a very low-income household. BACKGROUND AND OVERVIEW: In August, 1995, the Agency acquired 50 single-family homes located in the Cove to secure these units from bankruptcy proceedings filed by the then owner, Coachella Valley Land. Prior to the bankruptcy, the Agency invested $1.0 million to maintain the dwellings as very low-income rental units. Since then, the Agency has been substantially rehabilitating these dwellings to correct deficiencies and improve their appearance. These costs have been funded from rental income. In February 1998, the Agency directed staff to sell two (2) units per year first to qualified tenants, and secondly, to other eligible very low-income households. Eleven dwellings have been sold to date, eight to existing tenants and three to non -tenant households. When the Agency initiated relocation activities at the Vista Dunes Mobile Home Park, staff initiated efforts to identify Park residents who were interested in, and who may qualify for, purchasing single-family dwellings that were either in the Agency's rental housing program or featured an Agency sponsored silent second trust deed mortgage. Staff is contacted by the property manager (in the case of the rental housing program) or realtors (in the case of homes with silent second trust deed mortgages) when these dwellings are available for sale. Mr. Nunez and Ms. Macias, who are Vista Dunes residents, expressed interest in purchasing a home and took the required actions to qualify for a first trust deed loan. This home then became available, and upon inspection, they elected to purchase it. The sale transaction would be structured as other Agency affordable housing projects, wherein an Agency silent second trust deed mortgage would cover the difference between the market sales price and an affordable first trust deed mortgage. The proposed purchaser is not an existing tenant; however, this property was vacant and the buyer is .a very low-income household. If this sale is authorized, the unit will be sold for the market value of $165,000, with the buyer funding an 18% down payment and a private lender originating a $65,000 first trust deed mortgage (the maximum loan the homebuyer can obtain). The Agency would convert $70,000 of its equity in the property into a silent second trust deed loan. This unit has been substantially rehabilitated and therefore, can be counted toward the Agency's inclusionary housing requirement. FINDINGS AND ALTERNATIVES: Alternatives available to the Redevelopment Agency include: 1. Approve an agreement to. sell real property located at 53-195 Avenida Alvarado to Francisco Nunez and Maria Macias for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale; or 2. Do not approve an Agreement to sell real property located at 53-195 Avenida Alvarado to Francisco Nunez and Maria Macias for a purchase price of $165,000 and do not authorize the Executive Director to execute the necessary documents to complete the property sale; or 3. Provide staff with an alternative direction. Respectfully submitted, Oscar Orci, Interim Community Development Director 2 Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Summary Report 3 laquinta\lghp\rental housing\PH 3 RDA house sale ATTACHMENT 1 SUMMARY REPORT FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND FRANCISCO NUNEZ AND MARIA MACIAS October 5, 2004 INTRODUCTION This document is the Summary Report ("Report") for the proposed Sale Agreement ("Agreement") between the La Quinta Redevelopment Agency ("Agency") and Francisco Nunez and Maria Macias ("Buyers"). The purpose of Agreement is to facilitate the sale by the Agency of a single-family dwelling to the Buyer. This Report has been prepared pursuant to Section 33433 of the California Health and Safety Co.de ("California Community. Redevelopment Law") and presents the following: • A summary of the proposed transaction. • The cost of the sale to the Agency. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the Agency's Redevelopment Plan. • The estimated value to be conveyed, determined by the use and with the conditions, covenants, and development costs required by the Agreement. • An explanation of why the sale, pursuant to the Agreement, will assist in the elimination of blight. SUBJECT PROPERTY The home is a vacant 3-bedroom 2-bath single-family dwelling located at 53-195 Avenida Alvarado within La Quinta Redevelopment Project Area No. 1 ("Property"). The Agency acquired the Property in 1995 to preserve single-family homes that were affordable to very -low income Section 8 households. These homes have been rented to said households since 1995. The Property was vacated in the summer of 2004. At the same time the Agency initiated the process of relocating residents from the Vista Dunes Mobile Home Park. The Buyer, a Vista Dunes resident who was being relocated, expressed interest in purchasing a home in La Quinta and subsequently qualified for a first trust deed loan. The Agency then elected to enter into the Agreement to facilitate this sale. THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT The Agreement will accommodate the sale of the Property to the Buyer, who will occupy the dwelling. The sales price of $165,000, which represents the fair market value, will be funded through a combination of the Buyer's down payment of $30,000, a first trust deed mortgage of $65,000, and the Agency's equity of $70,000 that will be converted into a silent second trust deed loan. This second trust deed loan will include covenants to insure that the Property will remain affordable to very low income -households for 45 years. History of Property This Property is part of the Agency Rental Property Purchase Program. In May 1998, the Agency offered these properties first to the existing tenants for purchase and secondly to other qualified very low income households. This property was vacated by the previous tenant and the Buyer subsequently expressed an interest in purchasing the unit. Recently, the Buyer was approved by Total Financial Group for a mortgage up to the amount of $65,000. The Buyer qualifies as a very low income household and is relocating from the Vista Dunes Mobile Home Park. The Cost of the Sale to the Agency To date the Agency has invested $127,750 in the Property through a combination of the initial purchase cost ($86,500) and expenses related to rehabilitating the dwelling ($41,250). Per the Agreement the Agency will sell the Property for $165,000; of this amount the Agency will receive $87,000 in sale proceeds and retain a silent second trust deed of $70,000 in order to insure that the annual costs are affordable to very low income households. Estimated Value of the Interest to be Conveyed, Determined at the Highest and Best Uses Permitted by the Agency's Redevelopment Plan The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that the Property shall be used for low -density residential development. Based upon current residential property sales of like dwellings in the Cove market area the estimated value of the Property is $165,000, given the uses permitted by the Agency's Redevelopment Plan. Estimated Value of the Interest to be Conveyed, Determined at the Use With the Conditions, Covenants, and Development Costs Required by the Agreement The Agreement provides that the Property will be sold at the current market value of $165,000, which reflects the fair market value. Oil G:\WPDOCS\SumRpt-53-195 alvarado.doc Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist in the Elimination of Blight The Agreement does not eliminate blight in that it does not facilitate a transaction that remedies blight. Instead the Agreement expands that Agency's affordable housing efforts and increases .the community's supply of affordable housing. Prior to the sale, the Agency substantially rehabilitated the Property extending the Property's economic life while improving its appearance. Thus, the transaction will insure the continued affordability of a substantially rehabilitated single-family dwelling to a very low income household. no G:\WPDOCS\SumRpt-53-195 alvarado.doc