HomeMy WebLinkAboutF-14 Staff Report - Project Dimensions, Inc. - Third AmendmentCONSENT ITEM
F-14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: JUNE 21, 2021
SUBJECT: REQUEST TO APPROVE A THIRD AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT WITH PROJECT DIMENSIONS, INC. TO SERVE AS
CONSTRUCTION MANAGER 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. A Second Amendment was approved by the City Council on September 21,
2020 amending the Agreement to include project/construction management services as well as an
increase to the total contract amount. The subject action would approve a Third Amendment to the
Professional Services Agreement with Project Dimensions, Inc. to extend the term for an additional one
(1) year term.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Approve a Third Amendment to the Professional Services Agreement with Project Dimensions,
Inc. to extend the term for an additional one (1) year term; 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
6/21/2021
Approve Third Amendment to the Professional Services Agreement with Project Dimensions, Inc.
June 21, 2021
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. In anticipation of Phase 3, the City Council approved an Amendment on September
21, 2020 revising the scope of work to include Phase 3, which includes the day-to-day project and
construction management.
Although progress has been made in tenant negotiations and a final draft lease agreement has been
prepared, unforeseen delays from the tenant have resulted in a project schedule change. The tenant
experienced internal delays in the processing and approval of an unrelated project consequently creating
a backlog and delaying our project. The project schedule has been revised to reflect the new project
schedule and incorporate necessary measures to get back on schedule. The draft lease agreement will be
placed on the tenant’s governing board agenda for approval and thereafter will be placed on a future
City Council agenda for consideration and approval.
As a result of the project schedule delay, Staff is requesting the approval of a Third Amendment to the
Professional Services Agreement with PDI to amend Section 3.1.2 Term of the Agreement extending the
agreement for an additional one (1) year term. Such extension will allow Staff to continue to utilize their
services and assist in the completion of the project.
FISCAL IMPACT:
There is no fiscal impact for the recommended actions.
Prepared by: Reviewed and Approved:
Carina Campos Matt Marquez
Economic Development Specialist Economic and Community Development
Director
Reviewed and Approved Reviewed and Approved
Nico De Anda-Scaia Sergio Gonzalez
Deputy City Manager City Manager
Attachments:
1) Third Amendment to the Professional Service Agreement with Project Dimension Inc.
Attachment 1