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2013 04 16 HAI Housing Authority agendas and staff reports are available on the City's web site: www.la-quinta.org HOUSING AUTHORITY AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta REGULAR MEETING ON TUESDAY, APRIL 16, 2013 AT 4:00 P.M. CALL TO ORDER ROLL CALL: Authority Members: Adolph, Evans, Franklin, Henderson, Chairperson Osborne VERBAL ANNOUNCEMENT — AB 23 [AUTHORITY SECRETARY] PUBLIC COMMENT At this time, members of the public may address the Housing Authority on any matter not listed on the agenda. Please complete a request to speak" form and limit your comments to three minutes. The Housing Authority values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.21b1. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. MINUTES OF MARCH 19, 2013 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. DEMAND REGISTER DATED APRIL 16, 2013 2. TREASURER'S REPORT DATED FEBRUARY 28, 2013 r .• 0 A HOUSING AUTHORITY AGENDA 1 APRIL 16, 2013 3. REVENUE AND EXPENDITURE REPORT DATED FEBRUARY 28, 2013 AND INVESTMENT SUMMARY REPORT FOR QUARTER ENDING MARCH 31, 2013 4. AMENDMENT OF PROFESSIONAL SERVICES AGREEMENT WITH THE ALTUM GROUP FOR ENGINEERING SERVICES RELATED TO THE WASHINGTON STREET APARTMENTS REHABILITATION PROJECT 5. AMENDMENT OF PROFESSIONAL SERVICES AGREEMENT WITH STUDIO E ARCHITECTS FOR ARCHITECTURAL SERVICES RELATED TO THE WASHINGTON STREET APARTMENTS REHABILITATION PROJECT BUSINESS SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE ADJOURNMENT Y•YNMNiFNMiFMNYNYMMiFYiI IF iFNN#iiYNN NM NYMYNM#• The next regular meeting of the Housing Authority will be held on May 21, 2013 at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, Authority Secretary of the La Quinta Housing Authority, do hereby declare that the foregoing agenda for the La Quinta Housing Authority was posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on April 11, 2013. DATED: April 11, 2013 5a /h SUSAN MAYSELS, Aut rity Secretary La Quinta Housing Authority HOUSING AUTHORITY AGENDA 2 APRIL 16, 2013 Public Notices • Any writings or documents provided to a majority of the Housing Authority regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. HOUSING AUTHORITY AGENDA 3 APRIL 16, 2013 CITY/SA/ Taf 4 44 a" / FA MEETING DATE: April 16, 2013 AGENDA CATEGORY: ITEM TITLE: Demand Register Dated April 16, 2013 BUSINESS SESSION: CONSENT CALENDAR: J- STUDY SESSION: PUBLIC HEARING: It is recommended the Housing Authority Board receive and file the demand register dated April 16, 2013. There are no expenditures to report. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA EXECUTIVE SUMMARY: None. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: None. ALTERNATIVES: None. Respectfully submitted, Robbeyn gird, Finance Director CITY OF LA QUINTA BANK TRANSACTIONS 3/27/13 - 4/09/13 3/28/13 WIRE TRANSFER - PIERS 3/28/13 WIRE TRANSFER - PERS 3/28/13 WIRE TRANSFER - DEBT SVC PYMT 4/02113 WIRE TRANSFER - TASC 4103/13 WIRE TRANSFER - HEALTH PREMIUM 4/09/13 WIRE TRANSFER - LANDMARK $43,779.71 $2,651.75 $95,043.75 $738.43 $89,243.84 $128,618.81 TOTAL WIRE TRANSFER OUT $360 076 29 035 3� 4 CITY/SA H TA MEETING DATE: April 16, 2013 ITEM TITLE: Receive and File Transmittal of Treasurer's Report as of February 28, 2013 RECOMMENDED ACTION: It is recommended the La Quinta Housing Authority: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: 2, STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA cFboe r� AGENDA CATEGORY: CITY/SAtUXA MEETING DATE: April 16, 2013 BUSINESS SESSION: ITEM TITLE: Receive and File Revenues and CONSENT CALENDAR: 3 Expenditures Report dated February 28, 2013 and STUDY SESSION: Investment Summary Report for the Quarter Ending March 31, 2013 PUBLIC HEARING: RECOMMENDED ACTION: Receive and File, EXECUTIVES SUMMARY: Monthly and year-to-date revenues and expenditures of the La Quinta Housing Authority and Investment Summary Report for the Quarter Ending March 31, 2013. FISCAL IMPACT: None. BACKGROUND/ANAYLSIS: Receive and File Transmittal of the February 28, 2013 Statement of Revenues and Expenditures for the La Quinta Housing Authority and Investment Summary Report for the Quarter Ending March 31, 2013. ALTERNATIVES: None. Respectfully submitted, Robbeyn bird, Finance Director Attachment: 1. Revenues and Expenditures Report for February 28, 2013 2. Investment Summary Report for the Quarter Ending March 31, 2013 031 0710112012.02(2812013 LA OUINTA HOUSING AUTHORITY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO 1 HOUSING AUTHORITY(241) Proceeds From Hone Sale 125.000.00 122,113.08 2,886.92 97.690% Allocated Interest Income 3,800.00 3,253.24 546.76 65.610% Non Allocated Interest Income 0.00 495.14 (495.14) 0.000% Rental Income 240,000.00 209.000.43 30,999.57 87.080% 2nd Trust Deed Repayments 0.00 119,731.42 (119,731.42) 0.000% Transfer In 192,876.00 0.00 192,876.00 0.000% TOTAL LG HOUSING AUTHORITY PA 1 561,676.00 454,593.31 107,082.69 80 940% PROJECT AREA NO 2 HOUSING AUTHORITY(242) WSA Fed Govt Assistance Pymts 451.400.00 289,051.00 162,349.00 64.030% WSA Fed Govt Interest Rate Subsidy 46,800.00 0.00 46,800.00 0.000% WSA Interest Income 0.00 0.00 0.00 0.000% WSA Non Allocated interest Income 1,090.00 1.222.66 (132.66) 112.170% WSA Rental Income 163,300.00 119,869.00 43.431.00 73.400% WSA Other Revenues 3.700.00 16,925.33 (13,225.33) 457.440% Transfer In 18,141,988.00 17,939,497.78 202.490.22 95,880% TOTAL LO HOUSING AUTHORITY PA 2 18,808,278.00 18,366,565.77 441,712.23 97650% 0`38 IA QUINTA HOUSING AUTHORITY ADJUSTED W&WH3 REMAINING EXPENDITURE SUMMITRY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO I HOUSING AUTHORITY SERVICES 69,5W.00 74.994.70 (5,496.70) 2ND TRUST DEED PROGRAM 6S,000.00 W,275,W 4,725.W FORECLOSURE ACQUISITION 0.00 HOUSING DEVELOPMENT PROGRAM 350,000.00 130,680,10 219,319.W TRANSFER OUT 118.150.00 W865298 (190W2961- TOTALPROJECT AREA NOIHOUSING AUTHORITY W],M0 574.M2.76 000 282<726 PROJECT AREA NO2 HOUSING AUTHOR SERVICES 3,0W.00 826.91 2,113.09 WASH ST APTS EXPENSES W2,710.W 212,200.38 1 W,509.62 WSA PRINIPROVIOENT LOAN 32,51&00 21.374.74 11,1M26 NSA PRINNSDA LOAN 10,267.W 8.149.0 6,117." WSA INTEREST/PROVIDENT LOAN 121,959.00 81,W6.22 M,3W.78 WSA INTERESTA150A LOAN 71.014.00 17,434.61 M,579.39 WSA ADVANCE INTEREST EXPENE 0.00 0.00 000 TRANSFER OUT 24.972.905.00 26,972 W5.00 000 TOTAL PROJECTAREA NO2HOUSING AUTHORITY 25,5]8,3]0.00 25,310,/98.61 0.00 2638]059 TOTAL HOUSING AUTHORITY 26,181,02600 25,888,802.t] 000 29211T 83 0,)9 rn ° E 20 7E . t$' / �IEk ■( t2 : 2klcc f|f{ /kk ]{ f 90 , ,l.. c l2 41 !@ 42 22 )!/! )§ k! \&k kt |! 5�®� ki {)/E $\ �) {{ \k)9 �k !.0 .c -9$§$ �� ƒ�|# _m Ram �� °��` � 0kk /) j�kk ƒk §k!{ \k %|/ LL 20 I J\ CITY / SA HA FA MEETING DATE: April 16, 2013 ITEM TITLE: Amendment of Professional Services Agreement with The Altum Group for Engineering Services Related to the Washington Street Apartments Rehabilitation Project RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Amendment No. 1 to the Professional Services Agreement with The Altum Group for engineering services related to the Washington Street Apartments Rehabilitation Project and authorize the Executive Director to execute the Agreement. EXECUTIVE SUMMARY: • The Washington Street Apartments and an adjoining vacant parcel were purchased in 2008 and 2007, respectively. • The project was suspended in February 2012 when the Redevelopment Agency (RDA) was disbanded. • The project was restarted in June 2012 and in August 2012, the Housing Authority elected to initiate negotiations with National CORE Housing to secure Tax, Credit funding to underwrite some of the cost to substantially rehabilitate 72 units and construct 68 new units. • The current contract does not cover design services for 42 of the 68 new units. The contract Amendment (Attachment 1) expands the scope of services and provides funds for these design services. FISCAL IMPACT: The contract Amendment will procure $24,000 of additional services. The current contract with The Altum Group ("Altum") is for $146,250. This Amendment 011 would increase the total contract amount to $170,250. This increased cost was included on the current Recognized Obligation Payment Schedule ("ROPS") that was approved by the Successor Agency, Oversight Board and the State Department of Finance ("DOF"). BACKGROUND/ANALYSIS: The former La Quinta RDA purchased the Washington Street Apartments and an adjoining vacant parcel in 2008 and 2007, respectively. The RDA then proceeded to secure entitlements and prepare plans to substantially rehabilitate the existing units and build additional units. The project was suspended in February 2012 when the RDA was disbanded. In June 2012, the Successor Agency of the RDA, the Housing Authority, and the Oversight Board of the Successor Agency adopted resolutions that approved restarting the Washington Street Apartments Rehabilitation Project, and approved using 2004 and 2011 RDA housing bond proceeds for this project. Both the Oversight Board and DOF approved these and subsequent actions regarding continuing this project and using bond funds for project expenses. The Housing Authority approved a contract with Altum in August 2012, after the project was restarted. During that month, the Housing Authority directed staff to negotiate with National Community Renaissance ("National CORE") in order to secure California Tax Credit Allocation Committee funding; National CORE is a non- profit affordable housing owner/operator that specializes in securing tax credit funding. The RDA was negotiating with National CORE in 2011 regarding this project and placed these negotiations on hold in February 2012 (when the RDA shut down). At the August 2012 meeting, the Housing Authority directed staff to pursue funding to both substantially rehabilitate the existing 72 units and to construct an additional 68 new units. The current Altum contract funds architectural services for the rehabilitation of existing units and 26 of the 68 new units. In order to complete the design and entitlement process for the 42 new units (proposed for the westerly portion of the site), the Housing Authority must amend its Agreements with the design team. For the sake of consistency, expediency and potential project savings, staff recommends amending these contracts. This amendment modifies the scope of work and contract sum to accommodate the design work needed for the 42 new units. No other provisions are modified. This includes a provision whereby the Agreement can be terminated for any reason and at any time with a 30-day notice. Thus, the Agreement can be terminated if the DOF changes their current position and determines that the bond funds can no longer be used for this project. ALTERNATIVES: The Housing Authority could elect to not proceed with the design and development of the 42 additional units. submitted, Community Development Director Attachment: 1. Contract Amendment �� 013 ATTACHMENT 1 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH THE ALTUM GROUP FOR ENGINEERING SERVICES RELATED TO THE WASHINGTON STREET APARTMENTS REHABILITATION PROJECT The Professional Services Agreement ("Agreement") was approved by the Housing Authority on July 3, 2012 and dated July 13, 2012, by and between the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic ("Housing Authority"), and Studio E Architects, Inc., a California corporation ("Consultant") is hereby amended as follows: Section 1.1, Scope of Services, is deleted and replaced with the following language: 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Washington Street Apartments Rehabilitation Project, as specified in the original scope of services dated June 27, 2012 and supplemented with additional scope of services "Amendment No. 1 to Scope of Services" attached hereto as Exhibit "D" incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Section 2.1, Contract Sum, is deleted and replaced with the following language: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit `B" (the "Schedule of Compensation") in the total amount not to exceed One Hundred Seventy Thousand Two Hundred Fifty Dollars ($170,250) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation is set forth in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses with and if specified in the Schedule of Compensation. Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement, "Additional Services." In addition, the rate of compensation shall not exceed the amount authorized for the Washington Street Apartments Rehabilitation Project in the approved Recognized Obligation Payment Schedule. Exhibit B, Schedule of Compensation, is deleted and replaced with the following language: 119/015610-0074 _se 508121.1 a04/11/13 Exhibit B Schedule of Compensation. With the exception of compensation for Additional Services, provided for in Section 2.2 of this Agreement, the maximum total compensation to be paid to Consultant under this Agreement is One Hundred Seventy Thousand Two Hundred Fifty Dollars ($170,250) ("Contract Sum"). The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultant's Schedule of Compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of the Agreement. See original Fee Schedule dated June 27, 2012 and supplemented with additional Fee Schedule in Exhibit D, Amendment to the Scope of Services, Attached Exhibit D, Amendment to the Scope of Services, attached hereto is added to the Agreement. In all other respects, the Agreement remains in full force and effect. LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic Date Frank J. Spevacek, Executive Director ATTEST: Susan Maysels, Housing Authority Secretary APPROVED AS TO FORM M. Katherine Jenson, Housing Authority Counsel 119/015610-0074 015 508721.1 s04/11/13 -2- "CONSULTANT" Name: Title: 119/015610-0074 508721.1 a04111/13 -3- Exhibit "D" Washington Street Apartments — Amendment No. 1 La Quinta Housing Authority MIS La Quinta, California 7be Altunn Group March 8, 2013 O INTRODUCTION The Altura Group (Altum) has been requested by the La Quinta Housing Authority (Client) to provide a scope and fee for the entitlement and preliminary design of the southeast portion of the Washington Street Apartment Rehabilitation Project (Project). The site consists of approximately 11.32 acres, including APNs 609-04-007, -023 and -028, and is located at the southeast corner of Hidden River Road and Washington Street, in the City of La Quinta. The scope identified herein is based on Altum's professional experience with numerous projects in the City as well as our current commitment to this project. Although grading and drainage, circulation and other key aspects were considered along with the current design, this scope of work will include the preliminary design necessary for entitlement of the southeast portion. In general, these efforts consist of the preparation of a site plan, preliminary grading plans, preliminary drainage study and other plans/reports in support of a Site Development Permit (SDP) through the City of La Quinta. This scope of services is described in further detail herein. ♦ SCOPE OF SERVICES A. Entitlement and Preliminary Design Services Task I — Site Plans Altum understands that the Client developed an initial site plan concept for southeast portion, consisting of approximately 42 dwelling units. Based on direction from the March 5, 2013 team meeting, the architect will prepare two concept plans: the first, utilizing the Indian Wells concept and the second utilizing the WSA concept. Altum will work with the architect, landscape architect and team to prepare these initial concepts for City review and consideration. The project team will meet on March 191h to review plans and determine the preferable direction. Discussion will likely include type of architecture, number of units, circulation and fire department access, grading and drainage. Once the concept has been chosen, Altura will work with the team to finalize the site plan. Altum will prepare a digital (ACAD format) site plan, one time. Said plan will be used by the entire design team in completing all entitlement and final construction documents. A site plan exhibit (to scale) will be prepared for the SDP submittal. M:IfinancelrontraclslCl047_WashingionSt_AptsIC1047.21Proposa(_Revised 4-10-13.doc Page I of 4 017 Exhibit "M Washington Street Apartments — Amendment No. 1 La Quinta Housing Authority MIS La Quinta, California -Ile Allun, Group March S, 2013 Task 2 — Preliminary Grading and Drainage Exhibit Based on the Client approved site plan, Altum will prepare a preliminary grading and drainage in support of the SDP submittal. A site specific geotechnical report (prepared previously by Petra Geotechnical) and update letter (included herein) will be required. The report includes items/recommendations such as: site borings, building pad preparation, foundations and flatwork, soil characteristics for earthwork (shrinkage, subsidence and overexcavation), paving sections and site specific percolation testing. Altum will prepare one (1) earthwork calculation using the geotechnical recommendations and it is anticipated that the earthwork will not "balance" within the site. Minor grading and drainage adjustments are anticipated. Grading studies and earthwork analysis beyond this scope are not included herein. Once the earthwork analysis is complete, Altum will prepare an exhibit which illustrates overall site grading with horizontal and vertical relationship to adjoining buildings/property. The plan will identify setbacks, proposed site improvements including building structures, on -site retention areas, hardscape, ADA access and fire department access. The preliminary grading and drainage exhibit will be submitted as part of the SDP and will be used as the basis for a final precise grading plan. Task 3 - Preliminary On -Site Hydrology Report Altum will prepare a preliminary hydrology analysis to confirm drainage paths, size of retention area(s), etc. A preliminary on -site hydrology report will be prepared as part of the SDP process, and later utilized as the basis for a final hydrology report (to be prepared during the final design). The analysis will include relocation of some retention to the new proposed retention basin. No off -site drainage analysis or floodplain mapping (CLOMR/LOMR) requirements are included. An exhibit identifying existing drainage paths will be prepared as part of this task and will be submitted as part of the SDP submittal. Task 4 — Preliminary Water Quality Management Plan (WQMP) Altum will prepare a preliminary Water Quality Management Plan (WQMP) based on the site plan and preliminary grading and drainage exhibit prepared in the tasks above. The preliminary WQMP will be submitted as part of the SDP process and will provide recommendations for post - construction BMP's for the Project in accordance with the NPDES and MS-4 permit requirements. Altum will coordinate with the Client and City regarding BMP's applicable to the proposed project. The preliminary WQMP will be used as the basis for the final WQMP to be prepared during final design. M.9financelconiracWC1047_WashinglonSt_AplsIC1047.2lProposal_Revised 4-10-13.doc Page 2 of 4 018 Exhibit "D" Washington Street Apartments — Amendment No. 1 La Quinta Housing Authority MIS La Quinta, California The Alturn Croup March 8, 2013 Task 5 — Project Management, Coordination and Meetings (T&M) Altum will provide project management, coordination and attend project meetings as required to complete the entitlement and preliminary design for the project. Meetings may include team meetings and attendance at public meetings such as Architectural Review and Planning Commission. In the event that the project requires additional coordination or meetings beyond this initial budget, Altura will request a contract addendum for the necessary budget. Said contract addendum will be prepared by Altum and processed by the Client prior to incurring budgetary overruns. Task 6 — Reimbursables Estimate (T&M) An estimate for reimbursables is included for the WSA southeast portion entitlement and preliminary design. Reimbursables are items such as plots, reports, printing, mileage, etc. and will be billed at cost plus fifteen (15) percent. In the event that the project requires additional reimbursables beyond this initial budget, Altum will request a contract addendum for a supplementary budget. Said contract addendum will be prepared by Altura and processed by the Client prior to incurring budgetary overruns. ♦ DELIVERABLES A. Entitlement and Preliminary Design Services ➢ Site Plans, Exhibit ➢ Preliminary Grading and Drainage Exhibit, Earthwork Analysis ➢ Preliminary On -site Hydrology Report, Exhibit ➢ Preliminary Water Quality Management Plan ♦ ASSUMPTIONS AND EXCLUSIONS The following list is not intended to be all-inclusive. If there are items that are deemed incorrect or are necessary for the successful completion of the project, please notify us so that we may amend the scope of services and associated fee. 1. All submittal fees, application/permit fees are the responsibility of the Client; 2. Site Development Permit exhibits include a site plan, preliminary grading plan and preliminary on -site hydrology report. All other required exhibits will be provided by others. Altura assumes Client will coordinate all entitlement submittals; and 3. All plans, reports, exhibits and services not specifically identified herein are excluded. Mr lfinancelcontractslC1047 WashingtonSt AptsIC1047.21PmposaLRevised 4-10-13.doc Page 3 of 4 MAY 019 Exhibit "D" Washington Street Apartments — Amendment No. 1 La Quinta Housing Authority La Quinta, California 'the Altum Group March 8, 2013 ♦ FEESCHEDULE A. Entitlement and Preliminary Design Services TASK I Initial Site Plans..................................................................... $ 2,000 Final Site Plan, Exhibit.......................................................... $ 3,500 TASK 2 Preliminary Grading and Drainage Exhibit ........................... $ 5,500 Geotechnical Update Letter (Petra Geotechnical) ................. $ 1,000 TASK 3 Preliminary On -Site Hydrology Report ................................. $ 2,500 TASK 4 Preliminary Water Quality Management Plan ....................... $ 3,500 TASK 5 Project Mgmt, Coordination and Meetings (T&M)............... $ 5,000 TASK 6 Reimbursables Estimate(T&M)............................................ 1,000 TOTAL $ 24,000 U. IfinancelwnlmcisIC1047_WaahingronSr ApisIC1047.21Proposal Revised 4-10-13doc Page 4 of 4 ,:. 020 CITY / SAMFA MEETING DATE: April 16, 2013 ITEM TITLE: Amendment of Professional Services Agreement with Studio E Architects for Architectural Services Related to the Washington Street Apartments Rehabilitation Project RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Amendment No. 1 to the Professional Services Agreement with Studio E Architects for architectural services related to the Washington Street Apartments Rehabilitation Project and authorize the Executive Director to execute said Agreement. EXECUTIVE SUMMARY: • The Washington Street Apartments and an adjoining vacant parcel in were purchased in 2008 and 2007, respectively. • The project was suspended in February 2012 when the Redevelopment Agency was disbanded. • The project was restarted in June 2012 and in August 2012, the Housing Authority elected to initiate negotiations with National CORE Housing to secure Tax Credit funding to underwrite some of the cost to substantially rehabilitate 72 units and construct 68 new units. The current contract does not cover design services for 42 of the 68 new units. The contract Amendment (Attachment 1) expands the scope of services and provides funds for these design services. FISCAL IMPACT: The contract Amendment will procure $26,950 of additional services. The current contract with Studio E Architects is for $275,000. This Amendment would increase the total contract amount to $301,950. This increased cost was included on the current Recognized Obligation, Payment Schedule ("ROPS") that was approved by the Successor Agency, Oversight Board and the State Department of Finance (DOF). BACKGROUND/ANALYSIS: The former La Quinta RDA purchased Washington Street Apartments and an adjoining vacant parcel in 2008 and 2007, respectively. The RDA then proceeded to secure entitlements and prepare plans to substantially rehabilitate the existing units and build additional units. The project was suspended in February 2012 when the RDA was disbanded. In June 2012, the Successor Agency of the RDA, the Housing Authority, and the Oversight Board of the Successor Agency adopted resolutions that approved restarting the Washington Street Apartments Rehabilitation Project, and approved using 2004 and 2011 RDA housing bond proceeds for this project. Both the Oversight Board and DOF approved these and subsequent actions regarding continuing this project and using bond funds for project expenses. The Housing Authority approved a contract with Studio E Architects in August 2012, after the project was restarted. During that month, the Housing Authority directed staff to negotiate with National Community Renaissance ("National CORE") in order to secure California Tax Credit Allocation Committee funding; National CORE is a non-profit affordable housing owner/operator that specializes in securing tax credit funding. The RDA was negotiating with National CORE in 2011 regarding this project and placed these negotiations on hold in February 2012 (when the RDA shut down). At the August 2012 meeting, the Housing Authority directed staff to pursue funding to both substantially rehabilitate the existing 72 units and to construct an additional 68 new units. The current Studio E contract funds architectural services for the rehabilitation of existing units and 26 of the 68 new units. In order to complete the design and entitlement process for the 42 new units (proposed for the westerly portion of the site), the Housing Authority must amend its Agreements with the design team. For the sake of consistency, expediency and potential project savings, staff recommends, amending these contracts. This amendment modifies the scope of work and contract sum to accommodate the design work needed for the 46 new units. No other provisions are modified. This includes a provision whereby the Agreement can be terminated for any reason and at any time with a 30-day notice. Thus, the Agreement can be terminated if the DOF changes their current position and determines that the bond funds can no longer be used for this project. 022 ALTERNATIVES: The Housing Authority could elect to not proceed with the design and development of the 42 additional units. submitted, Development Director Attachment: 1. Contract Amendment r. 023 i ATTACHMENT 1 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH STUDIO E ARCHITECTS FOR ARCHITECTURAL SERVICES RELATED TO THE WASHINGTON STREET APARTMENTS REHABILITATION PROJECT The Professional Services Agreement ("Agreement") was approved by the Housing Authority on August 7, 2012 and dated September 11, 2012, by and between the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic ("Housing Authority"), and Studio E Architects, Inc., a California corporation ("Consultant") is hereby amended as follows: Section 1.1, Scope of Services, is deleted and replaced with the following language: 1.1 Scone of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Washington Street Apartments Rehabilitation Project, as specified in the original scope of services dated June 27,_ 2012 and supplemented with additional scope of services "Amendment No. 1 to Scope of Services" attached hereto as Exhibit "D" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Section 2.1, Contract Sum, is deleted and replaced with the following language: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit `B" (the "Schedule of Compensation") in the total amount not to exceed Three Hundred One Thousand Nine Hundred and Fifty Dollars ($301,950) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation is set forth in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses with and if specified in the Schedule of Compensation. Consultant's overall compensation shall not exceed the Contract Sum, except as provided in Section 1.6 of this Agreement, "Additional Services." In addition, the rate of compensation shall not exceed the amount authorized for the Washington Street Apartments Rehabilitation'Project in the approved Recognized Obligation Payment Schedule. Exhibit B, Schedule of Compensation, is deleted and replaced with the following ,language: v�,►. 024 119/015610-0074 508721.1 a04/11/13 _1_ Exhibit B Schedule of Compensation. With the exception of compensation for Additional Services, provided for in Section 2.2 of this Agreement, the maximum total compensation to be paid to Consultant under this Agreement is Three Hundred One Thousand Nine Hundred and Fifty Dollars ($301,950) ("Contract Sum"), which consists of $294,950 for architectural services and $7,000 as a budget for reimbursibles. The Contract Sum shall be paid to Consultant in installment payments made on a monthly basis and in an amount identified in Consultant's Schedule of Compensation attached hereto for the work tasks performed and properly invoiced by Consultant in conformance with Section 2.2 of the Agreement. See original Fee Schedule dated June 27, 2012 and supplemented with additional Fee Schedule in Exhibit "D", Amendment to the Scope of Services. Attached Exhibit D, Amendment to the Scope of Services, attached hereto is added to the Agreement. In all other respects, the Agreement remains in full force and effect. LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic Date ATTEST: Susan Maysels, Housing Authority Secretary APPROVED AS TO FORM Frank J. Spevacek, Executive Director M. Katherine Jenson, Housing Authority Counsel 025 119/015610-0074 508721.1 a04/11/13 _2_ "CONSULTANT" 0 119/015610-0074 .5 " 026 508721.1 a04111/13 -3- - Exhibit "D" STUDIO E A R C H I T E C T S 2259 First Avenue Amendment No. 1 Architectural Services San Diego, C.Iilwrio 92101 7619.235.9262 F 619.2350522 Date: March 27, 2013 Owner. La Quinta Housing Authority P.O. Box 1504 La Quinta, CA 92253 Architect: Studio E Architects, a California Corporation Project: Washington Street Apartments Southeast Portion, La Quinta, California project The project is to conceptually design and entitle the Southeast Portion of the Description existing entitled Washington Street Apartments Rehabilitation in La Quinta, California. This will add 42 senior housing one -bedroom units to the site and extend planned fire access. The project will also consist of a commons building, laundry room(s), maintenance room, private patios and additional parking areas. All buildings are to be single -story wood -framed construction or light gauge steel with conventional slab -on -grade concrete foundations. Scope of Services The Architect will provide services consisting of the following phases and tasks: Task One: This portion of this work is to develop the conceptual design work, assess any Conceptual Design necessary changes or revisions and complete the conceptual design. 1.1: CODE RESEARCH Discuss any relevant codes affecting the project. 1.2: SITE ANALYSIS AND CRITICAL ISSUE IDENTIFICATION Analyze the site and its surroundings to understand climatic conditions, views, visibility, access, future development and the like. Identify key design opportunities. Document these observations. Research sustoinability options. 1.3: GOALS AND PRINCIPLES Establish design principles based on the desired spatial character, the opportunities inherent in the site and the Owner's program. 1.4: SITE PLANNING Design site layouts incorporating access and fire department, trash collection and other service requirements. Coordinate with the Owners Civil Engineer and Landscape Architect. Acknowledge previously entitled development phase. Develop two options: the first to include unit/building types from the existing project and the second to be based on units from the Architect's previous work at Indian Wells Villas. 021 Amendment No.1 Architectural Services Exhibit " D" Washington Street Apartments Southeast Portion, La Quinta, California Page 2 of 5 1.5: FLOOR PLANS Refine new unit and building plans in conjunction with site planning concepts based on the Indian Wells Villas site concept. 1.6: BUILDING ELEVATIONS For the Indian Wells Villas site concept, explore the architectural character based on the site context, existing planned buildings, design criteria and construction budget. Design building facades regarding articulation, openings, fenestration, materials and use of color. 1.7: CONCEPTUAL DESIGN DRAWINGS Prepare Conceptual Design Drawings including an architectural site plan, Floor/building plans, one to two typical building sections, roof plans, building elevations and an exterior lighting plan per the Site Development Permit Application requirements. 1.8: NEIGHBORHOOD MEETINGS Meet with neighbors to communicate design intentions. One such meeting is included. 1.9: RENDERED VIEWS Prepare two to three rendered views of the project for use in communicating design character during the entitlement phase. 1.10: COLOR AND MATERIALS BOARD Prepare a color and materials board showing the intended building materials and finishes. 1.11: MEETINGS Meet with the Owner and/or their representatives, other than as previously noted, a maximum of three times during this phase. Task Two: This work obtains development and design approval through the City of La Entitlements Quinta. 2.1: DRAWING SUBMITTAL Submit the Conceptual Design package to the City for review. 2.2: STAFF MEETINGS Meet with City staff to review the project design. Make minor changes as requested. A maximum of three such meetings is included. 2.3: ENTITLEMENT HEARINGS Attend up to two hearings to present the project to decision makers. Additional Additional services include, but are not limited to: Services a Those identified as additional services within in the above Scope of Services. • Revisions and changes to the program or work contrary to previous direction, including those required during or as a result of the Entitlement/Design Review process. • Meetings and presentations beyond those listed above. • Preparation of finished models or marketing exhibits. • Attendance at meetings/hearings or exhibits beyond those listed above. • Work associated with preparation of a specific plan or other planning documentation beyond those listed above. •'t. 0 2 8 Exhibit "D" Amendment No. 7 Architectural Services Washington Street Apartments Southeast Portion, Lo Quinta, California - Page 3 of 5 Additional services will be performed on an hourly basis at the following rates: Principal 175.00 Project Manager/Lead Designer 155.00 Project Architect/Designer 125.00 Job Captain 95.00 Technical/Design Support 75.00 Services Not These consultant services are specifically not included in this scope of service: Included Schematic Design Design Development Construction Documents Bidding Construction Administration Geotechnical Engineering .Civil Engineering Landscape Design Fire Sprinkler Drawings Environmental Engineering Traffic Engineering Acoustical Engineering Utility Company Coordination Offsite Improvements Fire Alarm/Protection Plans LEED Documentation Fees Based on the Scope of Services listed above, tasks one through two will be completed for a fixed fee of $26,950. The professional fees are based on the Project Description and Scope of Services outlined above. The fee shall be modified correspondingly if there is significant revision to either. Reimbursable expenses are in addition to the fixed fee stated above and will be billed at 1.15 times actual expense of the Architect's costs and will include: any subconsultants not included in the basic scope of work, reprographics, blueprinting, delivery service, postage and similar expenses. Mileage will be billed at the current allowable rate by the Internal Revenue Service. This rate is currently set at $.565/mile but is subject to change by the IRS. Billings shall occur monthly and are due and payable within 60 days of the date of invoice. A 1.5% late charge will be added to all balances past due and will be increased 1.5% every 30 days thereafter until the total amount is paid in full. The Architect may stop work, without penalty, if any balance is outstanding after 60 days from date of invoice. Additional Provisions ASSIGNMENT The parties hereto agree that an Affordable Housing Developer as selected by or partnered with the Authority may assume the rights and obligations under this contract as required to achieve additional project funding through tax credits or other financing mechanisms. REPRESENTATION The Owner and Architect each agree to designate one person to act on their behalf as their representative agent in regard to communicating all direction and decisions relevant to this work. AVAILABILITY OF PREDEVELOPMENT FUNDS The Owner hereby states that funds to pay the Architect for this work have been designated and are now available and accessible and will remain so throughout the duration of this work. w. 029 Exhibit "M Amendment No. 7 Architectural Services Washington Street Apartments Southeast Portion, Lo Quinta, California Page 4 of 5 OWNERSHIP OF INSTRUMENTS OF SERVICE All reports, plans, specifications, field data and notes and other documents, including all documents on electronic media, prepared by the Architect as instruments of service shall remain the property of the Architect. The Owner shall not reuse or make any modifications without the prior written authorization of the Architect. The Architect will furnish the Owner with progress drawings during the course of the project and provide one reproducible set of final documents. LIMITATION OF LIABILITY In recognition of the relative risks and benefits of the project to both the Owner and the Architect, the risks have been allocated such that the Owner agrees, to the fullest extent permitted by law, to limit the liability of the Design Professional and his or her subconsultants to the Owner and to all construction contractors and subcontractors on the project for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorney's fees and cost and expert -witness fees and costs, so that the total aggregate liability of the Architect and his or her subconsultants to all those named shall not exceed the Architect's total fee for services rendered on this project. Such claims and causes include, but are not limited to negligence, professional errors or omissions, strict liability, breach of contract or warranty. It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, unless otherwise prohibited by law. The Owner agrees, to the fullest extent permitted bylaw, to indemnify and hold the Architect harmless from any damage, liability, or cost (including reasonable attorneys' fees and cost of defense) to the extent caused by the Owner's negligent acts, errors or omission in the performance of professional services under this Agreement and those of his or her subconsultants or consultants anyone for whom the Owner is legally liable, and arising from the project that is the subject of this Agreement. The Architect is not obligated to indemnify the Owner in any manner whatsoever for the Owner's own negligence. OWNER'S CONSULTANTS Unless otherwise indicated, design services contracted separately by the Owner shall be performed by licensed professional consultants who shall affix their seals on the appropriate documents prepared by them. The contracts between the Owner and Owner's consultants shall require the consultants to coordinate their drawings and other instruments of service with those of the Architect and to advise the Architect of any potential conflict. The Architect shall have no responsibility for the components of the Project designed by the Owner's consultants. Review by the Architect of the consultants' drawings and other instruments of service is solely for consistency with Architect's design concept for the Project. The Architect shall be entitled to rely on the technical sufficiency and timely delivery of documents and services furnished by the Owner's consultants, as well as on the computations performed by those consultants in connection with such documents and services, and shall not be required to review or verify those computations or design for compliance with applicable laws, statues, building codes, and rules and regulations. The Owner shall indemnify and hold harmless the Architect, Architect's consultants, and agents and employees of any of them from and against claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of the services performed by the other consultants of the Owner. GEOTECHNICAL CONDITIONS The scope of services contained in this proposal is based on standard geotechnical conditions. This scope assumes standard slab on grade and spread footings. TERMINATION Either party upon seven days written notice may terminate this agreement. In the event of termination, the Architect shall be compensated for all services performed, and reimbursable expenses incurred, to the termination date. CORPORATE ENTITY It is intended by the parties to this Agreement that the Architect's services in connection with the Project shall not subject the Architect's individual employees, officers or directors to any personal legal exposure for the risks associated with this Project. Therefore, and notwithstanding anything to the contrary contained herein, the Owner agrees that as the Owner's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against the Architect, a California corporation, and not against any of the Architect's individual employees, officers or directors. r;'i. 030 Amendment No. 1 Architectural Services Exhibit " ®„ Washington Street Apartments Southeast Portion, La Quinta, California Page 5 of 5 ENTIRE AGREEMENT This Agreement, and any exhibits attached hereto, represents the entire Agreement between the parties in connection with the transactions contemplated hereby and the subject matter hereof and this agreement supersedes and replaces any and all prior and contemporaneous agreements, understandings and communications between the parties, whether oral or written, with regard to the subject matter hereof. There are no oral or written agreements, representations or inducements of any kind existing between the parties relating to this transaction that are not expressly set forth herein. This Agreement may not be modified except by a written agreement signed by both parties. CONSTRUCTION This Agreement has been negotiated at arm's length, and each party has consulted with or been given full opportunity to consult with such party's own legal counsel with respect to such party's rights and obligations under this agreement. Accordingly, any rule of law (including, without limitation, California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party drafting it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to affect the intent of the parties and the purpose of this Agreement. NO THIRD PARTY BENEFICIARY RIGHTS This Agreement is entered into for the sole benefit of the parties hereto and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. Agreed Upon By: OWNER Name: Title: On Behalf Of: Date: ARCHITECT Name: Eric C. Noslund, FAIA Title: Principal On Behalf Of: Studio E Architects, Inc. License: C77113, California Date: 031