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HomeMy WebLinkAboutHolland Construction, Inc. - 2012-06-18City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk June 21, 2012 Holland Construction, Inc. Attn: Bert Levesque 5000 East Spring Street, Ste. 630 Long Beach CA 90815 Dear Mr. Levesque: Enclosed for your records is an original signed copy of the "Reimbursement Agreement Between the City of Huntington Beach and Holland Construction, Inc. for Costs Incurred for Special Services." Sincerely, -ix4j J n L. Flynn, CMC City Clerk JF:pe Enclosure G:followup:a�rmtltr Sister ('itzes: Anjo, Japan ♦ Waitakere, New Zealand Council/Agency Meeting Held: 6 - Deffe red/Continued to: A� _ !9 Approv Conditionally Approved ❑ Denied City Clerk's Sighat r Coun it Meeting Date: June 18, 2012 Department ID Number: PL 2012-014 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Scott Hess, AICP, Director of Planning and Building SUBJECT: Approve Professional Services Contract with CSG Consultants, Inc. for Contract Inspection Services at The Village Residential at Bella Terra II; approve a Reimbursement Agreement with Holland Construction, Inc.; and, appropiate funds to be fully reimbursed Statement of Issue: Transmitted for City Council's consideration is a professional services agreement with CSG Consultants, Inc. for Building Division staffing services at The Village at Bella Terra II residential project and a reimbursement agreement with Holland Construction, Inc. to fund the special building inspection services requested. Financial Impact: None. An appropriation of $150,000 from the General Fund to the Planning and Building Department Professional Services Account 10060401.69365 is required. However, these funds will be offset by the attached reimbursement agreement with the developer of the project, Holland Construction, Inc. Recommended Action: Motion to: A) Approve and authorize the Mayor and City Clerk to execute the "Professional Services Contact between the City of Huntington Beach and CSG Consultants, Inc. for Building Staff Services" in the amount of One Hundred and Fifty Thousand Dollars ($150,000), as prepared by the City Attorney; and, B) Approve and authorize the Mayor and City Clerk to execute the "Reimbursement Agreement Between the City of Huntington Beach and Holland Construction, Inc. for Costs Incurred for Special Services" in the amount of One Hundred and Fifty Thousand Dollars ($150,000), as prepared by the City Attorney; and, C) Appropriate funds in the amount of $150,000 from the City's General Fund to the Planning and Building Department Professional Services Account 10060401.69365 for the Professional Services contract between the City and CSG Consultants, Inc., which is funded by the reimbursement agreement. HB -103- Item 10. - 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 6/18/2012 DEPARTMENT ID NUMBER: PL 2012-014 Alternative Action(s): The City Council may make the following alternative motions: Deny the Professional Services Contract between the City and CSG Consultants, Inc. and the Reimbursement Agreement between the City and Holland Construction, Inc. or 2. Continue the item and direct staff accordingly. Analysis: Holland Construction, Inc. has begun construction at The Village at Bella Terra II residential project. In order to help expedite the project, the developer has requested that the Planning and Building Department commit sufficient resources to provide special inspection services. The special services are to include a full-time Building Inspector assigned to the project for twelve months. In order to provide for the special services, it will be necessary for the City to hire a contract inspector. To pay for these services, the City and Holland Construction, Inc. will enter into a Reimbursement Agreement in the amount of $150,000. The payments have been divided into two equal payments of $75,000, the first due on or before June 25, 2012 and the second payment by December 25, 2012. CSG Consultants, Inc. currently provides contract inspectors to the City. Staff recommends the City Council approve the agreement with CSG Consultants, Inc. for a not -to -exceed total contract amount of $150,000 and authorize the Mayor and City Clerk to execute the documents. CSG Consultants, Inc. is well respected in the industry and continues to provide exceptional services for the City of Huntington Beach, Also, CSG Consultants, Inc. works exclusively for government agencies avoiding any conflict of interest with private developers. If the Reimbursement Agreement and budget appropriation to the Planning and Building Department are not approved, the City will not be able to provide the proposed special services in order to meet the developer's construction schedule. Staff solicited proposals from the following three qualified vendors for this project: - CSG Consultants, Inc. - Scott Fazekas & Associates, Inc. - Charles Abbott and Associates, Inc. Staff distributed Requests for Proposals for Building Staffing Services to these three consultants. One proposal was received from CSG Consultants, Inc. One consultant indicated that they were committed to other projects and elected to decline to submit a proposal, and one consultant did not respond to the Request for Proposal. The proposal was reviewed by staff, and then other cities were contacted to determine the fair prevailing wage for the services to be performed. It was determined that CSG Consultants, Inc proposal to be competitive. Staff recommends approval of the professional services agreement with CSG Consultants, Inc. and the reimbursement agreement with Holland Construction, Inc. Item 10. - 2 HB -104- REQUEST FOR COUNCIL ACTION MEETING DATE: 6/18/2012 DEPARTMENT ID NUMBER: PL 2012-014 Environmental Status: Not Applicable Strategic Plan Goal: Improve the City's infrastructure Attachment(s): * b6w,-t "0 HB -105- Item 10. - 3 xs -147- Item 10. - 45 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND HOLLAND CONSTRUCTION, INC. FOR COSTS INCURRED FOR SPECIAL SERVICES THIS AGREEMENT ("Agreement") is made and entered into by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "City," and HOLLAND CONSTRUCTION, INC., hereinafter referred to as "Developer." WHEREAS, Developer is proposing to develop an area within the City of Huntington Beach known as The Village; and Developer is required to have various inspections performed regarding its project; and Developer desires that all entitlements, zone changes, land use approvals and environmental assessments be processed as soon as possible; and Developer is required to pay normal inspection fees, for which Developer shall receive normal building inspection services; and Developer desires to have the City commit sufficient resources to enable the delivery of special inspection services, NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: 1. PAYMENT Developer agrees to reimburse City for its special inspection services as follows: A. Within ten (10) days following execution of this Agreement by City, Developer will make an initial payment to City in the amount of Seventy Five Thousand Dollars ($75,000) (hereinafter the "Amount of Deposit"). Thereafter, on the first day of each third month, Developer shall replenish the Amount of Deposit by paying to City an amount equal to the amount paid by City for services funded by this Agreement (the "Quarterly Payment"). The parties 12-3249/76669 1 of 7 acknowledge that the Amount of Deposit will be used to pay services funded by this Agreement, and if, prior to the payment of any Quarterly Payment, the Amount of Deposit is less than One Thousand Dollars ($1,000), Developer shall make the next Quarterly Payment within ten (10) days' notice from City. Developer acknowledges that the amount referenced in this Agreement is the City's best estimate of the costs for the services described herein, and that the actual cost of said services may be higher. In the event that the actual cost of said services exceeds the estimated costs, Developer agrees to pay the actual cost within ten (10) days after receiving City's invoice for same. In the event the actual costs of Reimbursement Services are less than the estimated costs, City will refund the difference between the actual and estimated costs. B. The estimated cost to cover twelve (12) months of services is One Hundred Fifty Thousand Dollars ($150,000.00). C. A late payment fee of ten percent (10%) will be assessed if City receives any payment later than the thirtieth (30th) day after that payment is due but unpaid. In addition, one and one-half percent (1 %) interest per month shall be added for each month the payment hereunder is due but unpaid. 2. STATEMENT OF INTENT The amounts reimbursed to City pursuant to this Agreement will help defray the cost of delivery of special inspection services requested by the Developer. City agrees to provide special building & safety inspection services, and to provide a full time on -site inspector for a continuous period of approximately twelve (12) months, to be mutually established by the City and Developer based on the actual start date of building improvements and schedule of construction of Developer's Project. Full time shall mean forty (40) hours within a seven (7) day period. It is anticipated that generally the work day will consist of eight (8) hours between 7:OOa.m. and 6:OOp.m.; however the schedule may vary as the needs of the Project dictates. The exact working hours will be at the 12-3249/76669 2 of 7 discretion of the City. Such full time inspection shall be qualified to provide multi -disciplinary inspection services as the project dictates. In the event such inspector is not qualified to provide some of the services, City may in its sole discretion, provide an additional qualified inspector to assist the full time inspector in a timely manner on as "as needed" basis. 3. EXCLUSIVE CONTROL BY City Agreement: City will maintain exclusive control over the work described herein. Nothing in this A. Shall be deemed to require City to approve any plan, proposal, suggestion, application or request submitted by Developer. B. Shall be deemed to limit, in any respect whatsoever, City's sole authority to direct and control the employee(s) assigned to Developer's various development projects. C. Shall be deemed to impose any liability on City different from any liability as may otherwise be established by law. 4. CITY EMPLOYEES AND OFFICIALS Developer shall employ no City official nor any regular City employee in the work performed pursuant to this Agreement. No officer or employee of City shall have any direct financial interest in this Agreement. 5. TIME IS OF THE ESSENCE City agrees that time is of the essence for the performance of the work to be funded pursuant to this Agreement and therefore, thirty (30) days prior to each quarterly invoice, Developer shall submit a list of proposed activities to be performed by the City for approval by the Planning Director. 12-3249/76669 3 of 7 6. TERMINATION OF AGREEMENT Either party may terminate this Agreement at any time with or without cause, upon ten (10) days' prior written notice to the other party. Developer shall be responsible for all costs incurred prior to termination, including any and all costs incurred after notice of termination has been given. 7. TERM This Agreement shall be effective on the date of its approval by the City Council of City. This Agreement shall expire when terminated as provided herein. 8. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to Developer's agent or to City as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below; provided that City and Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent: TO CITY: City of Huntington Beach ATTN: Director of Planning & Building 2000 Main Street Huntington Beach, CA 92648 9. MODIFICATION TO DEVELOPER: Holland Construction, Inc. ATTN: Bert Levesque 5000 East Spring Street, Ste 630 Long Beach, CA 90815 Cell: 213-280-7834 Office: 652-285-5305 No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 12-3249/76669 4 of 7 10. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 11. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 12. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of 12-3249/76669 5 of 7 the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 13. IMMIGRATION Developer shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 14. LEGAL SERVICES SUBCONTRACTING PROHIBITED Developer and City agree that City is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. Developer understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable for payment of any legal services expenses incurred by Developer. 15. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 16. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 17. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 12-3249/76669 6 of 7 18. ENTIRETY This Agreement, and the attached exhibits, contains the entire agreement between the parties respecting the subject matter of this Agreement and supersedes all prior understanding and agreements whether oral or in writing between the parties respecting the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on C� C , 20 . Developer, HOLLAND CONSTRUCTION, INC By: 1 print name ITS: (circle one) Chairman/President/ ice President AND By: qt2q��+ " print name ITS: (circle one) Secretar�ire Financial Officer/Asst. Secretary — Trea e 12-3249/76669 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor 4eot) Clerk AND APP .O or • • ' • : • REVIEWT AND APPROVED AS TO CONTE/, 17 PROVED AS TO FORM: C- / C ty A orney IQ) 1J2 7 of 7