HomeMy WebLinkAboutE-15 Staff Report - Phase 3 - Owners RepresentativeCONSENT ITEM
E-15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: SEPTEMBER 21, 2020
SUBJECT: REQUEST TO APPROVE A SECOND AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT WITH PROJECT DIMENSIONS, INC. TO SERVE AS
OWNER’S REPRESENTATIVE FOR THE PROMENADE AT CITRUS (890 THE
PROMENADE)
BACKGROUND:
On February 4, 2019, the City Council approved a Professional Services Agreement (PSA) with Project
Dimensions, Inc. (PDI) to serve as the City’s Owner’s Representative for The Promenade at Citrus (890
The Promenade), a City owned property. The PSA awarded Phase 1 (Set-up Activities) and Phase 2
(Leasing Phase Activities) to PDI with Phase 3 (Construction Oversight) contingent on the successful
completion of Phases 1 and 2, budget availability and City Council approval. A First Amendment was
approved by the City Council on April 20, 2020 amending the agreement by extending the term and
revising key personnel. The subject action would approve a Second Amendment to the Professional
Services Agreement with Project Dimensions, Inc. to include Phase 3 Project Management/Construction
Management in the amount not to exceed $115,690 for a total contract amount of $191,690.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1) Approve a Second Amendment to the Professional Services Agreement with Project Dimensions,
Inc. in an amount not to exceed $115,690 for a total contract amount of $191,690; and
2)Authorize the City Manager to execute the amendment, in substantial form, subject to minor
modifications acceptable to the City Attorney, on behalf of the City.
APPROVED
CITY COUNCIL
9/21/2020
Approve Second Amendment to the Professional Services Agreement with Project Dimensions, Inc.
September 21, 2020
Page 2
ANALYSIS:
On February 4, 2019 the City Council approved a Professional Service Agreement with Project
Dimension Inc. (PDI) to serve as the City’s Owner’s Representative for The Promenade at Citrus (890
The Promenade). The Agreement was divided into three phases. Within Phase 1 (Set-up Activities),
PDI’s scope of services included but were not limited to the review of all pertinent plans and documents,
preparation of a project pro-forma and identification of tenant allowances. Since then, Phase 1 has been
completed. Phase 2 (Leasing Phase Activities) includes but is not limited to consultation throughout all
tenant negotiations and constructability review for all proposed tenant improvements. Phase 2 is
currently on-going. However, it is anticipated to be completed in approximately two months. Subsequent
to the successful completion of Phase 1 and Phase 2, Staff indicated it would return to the City Council
with recommendations for proceeding with Phase 3, which will include the day-to-day monitoring and
management of site activities through the completion of all construction activities. This includes but is
not limited to:
• Plan Check Coordination – the preparation, processing and approval of construction documents
and related permits. This will include but not limited to Building, Light & Water, Public Works,
AQMD etc.
• Bid and Award – PDI will review, prepare, manage and award the bid construction documents
and FF&E bid documents. All stages will be coordinated with prospective tenant and the City.
• Construction and Close Out – In coordination with the tenant and the City, PDI will manage
the execution of the Tenant Improvements from the pre-construction meeting through notice of
final completion. This will include but is not limited to reviews of schedule, track and process all
RFIs, review and process change orders, prepare and monitor punch list at substantial
completion, coordinate final inspection, obtain final certificate of occupancy, and file and record
notice of completion etc.
PDI has been instrumental in preparing the lease agreement documents, the preparation of conceptual
tenant improvement plans and the draft completion of the design development documents. Currently the
City and tenant are reviewing the draft design development plans so that the architect may proceed to
prepare construction documents. Further, the tenant is reviewing comments to the Office Lease
Agreement. Once the final Lease Agreement is prepared, it will be placed on a future City Council
Agenda for approval.
At this time, Staff is requesting the approval of a Second Amendment to the Professional Services
Agreement to amend Section 3.1.1 General Scope of Services and Section 3.3.1 Compensation of the
Agreement.
FISCAL IMPACT:
Funding for the recommended actions was included in the FY2020-21 budget and is available in the
Economic and Community Development – Real Estate Development account number 10-35-645-000-
6399. The City anticipates it will recover costs under account 10-35-645-000-4699 associated with
tenant improvements that exceed the City’s $30 per square foot contribution limitas it moves closer to
securing a long-term agreement with LA Metro for lease of the entire building.
Approve Second Amendment to the Professional Services Agreement with Project Dimensions, Inc.
September 21, 2020
Page 3
Prepared by: Reviewed and Approved:
Carina Campos Matt Marquez
Economic Development Specialist Economic and Community Development
Director
Reviewed and Approved
Sergio Gonzalez
City Manager
Attachments:
1) Second Amendment to the Professional Service Agreement with Project Dimension Inc.
2) Project Dimensions Inc. Scope of Services
CITY OF AZUSA
SECOND AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT FOR THE PLANNING, LEASING AND DEVELOPMENT SERVICES
FOR THE PROMENADE AT CITRUS
1.PARTIES AND DATE.
This Second Amendment to the Professional Services Agreement for the Planning,
Leasing and Development services for The Promenade at Citrus Project (“Second Amendment”)
is entered into on the ____ day of ________, 2020, by and between the City of Azusa
(hereinafter referred to as the “City”) and Project Dimensions Inc. (hereinafter referred to as the
“Consultant”). City and Consultant are sometimes collectively referred to herein as the
“Parties.”
2.RECITALS.
2.1 Agreement. The Parties entered into that certain Agreement for the Planning,
Leasing and Development Services dated February 4, 2019 (“Agreement”).
2.2 First Amendment. The Parties amended the Agreement in order to extend the
term of the Agreement for an additional one-year term; and revised key personnel to include
additional staff.
2.3 Second Amendment. The Parties now desire to amend the Agreement in order to
revise the scope of services of the Agreement to include Phase 3 Project
Management/Construction Management of the project and modify the compensation amount.
3.AMENDMENTS.
3.1 General Scope of Services. Section 3.1.1 of the Agreement is hereby amended to
read as follows: “Consultant promises and agrees to furnish to the City all labor, materials, tools,
equipment, services, and incidental and customary work necessary to fully and adequately supply
the professional Planning, Leasing and Development consulting services necessary for the
Project (“Services). The Services are more particularly described in Amended Exhibit “A”
attached hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.2 Compensation. Section 3.3.1 of the Agreement is hereby amended to read as
follows: “Consultant shall receive compensation, including authorized reimbursements, for all
Services rendered under this Agreement at the rates set forth in Amended Exhibit “A” attached
hereto and incorporated herein by reference. The total compensation shall not exceed One
Hundred Ninety One Thousand Six Hundred Ninety Dollars and Zero Cents ($191,690) without
written approval of the City Council. Extra work may be authorized, as described below, and if
authorized, will be compensated at the rates and manner set forth in this Agreement.”
Attachment 1
3.3 Remaining Provisions of Agreement. Except as otherwise specifically set forth in
this Second Amendment, the remaining provisions of the Agreement shall remain in full force
and effect.
[SIGNATURES ON THE NEXT PAGE]
IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement
on this ____ day of __________, 2020.
CITY OF AZUSA PROJECT DIMENSIONS INC.
By:
Robert Gonzales Mayor Date:
By:
George Peterson President Date:
ATTEST:
By:
Jeffrey Lawrence Cornejo, Jr. City Clerk Date:
By:
Name: _________________________
Date:
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney Date:
AMENDED EXHIBIT “A”
SCOPE OF SERVICES, SCHEDULE OF SERVICES AND COMPENSATION
Exhibit “A” of the Agreement is hereby amended to read as follows:
Task 1: Perform all duties on an as-needed basis necessary to coordinate set-up (phase) activities
for the lease-up of The Promenade at Citrus Project, including but not limited to: review of
building construction documents and leasing plan; review lease documents and City approval
process; prepare project budget, procedure plan and baseline schedule for occupancy of tenant
spaces; and attend meetings with staff and City Council meetings as requested.
Task 2: Perform all duties on an as-needed basis necessary to coordinate leasing (phase)
activities for the development of The Promenade at Citrus Project, including but not limited to:
attend meetings with broker(s), contractors and potential tenants; manage tenant space planning;
review lease documents; prepare work letters for each lease; perform constructability review;
prepare construction cost estimates; update schedules and pro forma; prepare written reports and
attend meetings with staff and City Council meetings as requested.
Task 3: Perform all duties on an as-needed basis necessary to coordinate Construction Oversight
for the development of The Promenade at Citrus Project, including but not limited to: day-to-day
monitoring and management of site activities through the completion of all construction
activities. This includes but is not limited to:
• Plan Check Coordination – the preparation, processing and approval of construction
documents and related permits. This will include but not limited to Building, Light &
Water, Public Works, AQMD etc.
• Bid and Award – PDI will review, prepare, manage and award the bid construction
documents and FF&E bid documents. All stages will be coordinated with prospective
tenant and the City.
• Construction and Close Out – In coordination with the tenant and the City, PDI will
manage the execution of the Tenant Improvements from the pre-construction meeting
through notice of final completion. This will include but is not limited to reviews of
schedule, track and process all RFIs, review and process change orders, prepare and
monitor punch list at substantial completion, coordinate final inspection, obtain final
certificate of occupancy, and file and record notice of completion etc.
Professional Fees
FEE: Not-to-Exceed amount of $191,690 on a Time and Material Basis (with hourly rates) for a
period of one (1) year. The following hourly rates will apply:
Stephen Sandland (Project Manager): $180 Per Hour
Chris Larsen (Senior Project Manager): $160 Per Hour
Blair Fickett (Construction Manager): $140 Per Hour
Administrative Support: $ 85 Per Hour
Note: The Optional Service of the “Review of Tenant Business Plans” can be provided for an
additional Not-to-Exceed Fee of $3,300; reimbursable expenses shall not exceed $1,000.
Attachment 2