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HomeMy WebLinkAboutItem 02 - First Amend. to On -Call Agree. for Affordable Housing Financial, Analytical, and Advisory ServicesCommunity Development Agency www.santa-ana.org/community-development Item # 2 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 16, 2023 TOPIC: First Amendment to On -Call Agreements for Affordable Housing Financial, Analytical, and Advisory Services AGENDA TITLE Approve a First Amendment to Agreements with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc. for On -Call Affordable Housing Financial, Analytical, and Advisory Services on an As —Needed Basis in a Shared Amount not to exceed $500,000 RECOMMENDED ACTION Authorize the Executive Director to execute a First Amendment to three joint on -call consultant agreements for affordable housing financial, analytical, and advisory services with Keyser Marston Associates, Inc., David Paul Rosen & Associates, and RSG, Inc., to add an additional $250,000 and to extend the term for two years until November 1, 2026, for a total shared amount not to exceed $500,000, subject to non -substantive changes approved by the Executive Director and Authority General Counsel. DISCUSSION Due to the large volume of grants and activities to provide affordable housing for our residents, staff is supported by real estate consultants who provide affordable housing financial, analytical, and advisory services. These consultants provide general multifamily and single family affordable housing financial, analytical, and advisory services, bond issuance services, and assist with the City's inclusionary housing ordinance and density bonus ordinance. Following a competitive procurement process, on November 16, 2021, the City Council and Housing Authority authorized the City Manager and Executive Director of the Housing Authority to enter into on -call consultant agreements for affordable housing financial, analytical, and advisory services with Keyser Marston Associates, Inc. (KMA), David Paul Rosen & Associates (DRA), and RSG, Inc. (RSG) for a three-year term beginning November 16, 2021 through November 1, 2024, in a total shared amount not to exceed $250,000. Halfway through the term of these three on -call agreements, staff has exhausted the $250,000 in available funds originally allocated by the City Council and the Housing Authority. This is because staff has worked on various major projects with these consultants to provide affordable housing for our residents including the funding of three large multifamily affordable housing projects: Westview House, Crossroads at Washington, and WISEPlace Permanent Supportive Housing. These three projects First Amendment to Agreements for Affordable Housing Financial, Analytical, and Advisory Services May 16, 2023 Page 2 involved the allocation of $13,805,577 in affordable housing funds and 66 project -based vouchers that will lead to the creation of 218 new units of affordable and permanent supportive housing. In particular, KMA assisted staff with extensive financial analyses and technical support for these three projects. Representatives from both KMA and RSG assisted staff with the City's most recent Request for Proposals for Affordable Housing Development (RFP #21-136) issued on December 8, 2021 with City Council approval. This RFP led to an award of funds for the development of WISEPlace and a commitment of funds for the development of six new affordable homeownership opportunities with Habitat for Humanity of Orange County. In addition to the consulting services needed to finance affordable housing projects, KMA recently completed an update to the City's Affordable Housing Opportunity and Creation Ordinance manuals and Inclusionary Housing Plan forms. These manuals had not been updated since 2015. RSG performed a disparate housing analysis for the requested project at 2202 East First Street where RSG analyzed a number of data points to help the City determine if the project was consistent with fair housing laws and City planning policies. Furthermore, RSG assisted housing staff with compliance monitoring activities to ensure that tenants in City -funded affordable housing units were not overpaying for housing, income qualified, and living in decent, safe, and sanitary housing. In addition, DRA also provided consultation services for density bonus agreements and for local home owner's association (HOA) issues for troubled HOAs in the City. The work on all of these major projects exhausted the $250,000 in available funds for these three on -call agreements. Therefore, staff is returning to the City Council and the Housing Authority to request approval to amend these three agreements (first amendment) to add an additional $250,000 (Exhibits 1, 2, and 3). Staff is also seeking to extend these agreements by an additional two years (from three- year agreements to five-year agreements). In the coming months, staff will be working with KMA for additional consulting work on North Harbor Village, a proposal from the Illumination Foundation to develop permanent supportive housing on Bewley Street (pending consideration by the City Council), the loan closing for FX Residences, and a possible Homekey application to the State of California, amongst various other projects and priorities. Staff is also working on a new request for proposals for affordable homeownership opportunities to bring to the City Council. Staff anticipates needing additional affordable housing financial, analytical, and advisory services to support us with the volume of grants and activity to provide affordable housing for our residents. FISCAL IMPACT Prior to utilizing any of these on -call services, staff will ensure sufficient funds are available in the appropriate program budget and will track expenditures to ensure the City and Housing Authority does not exceed the aggregate $500,000 maximum total. First Amendment Advisory Services May 16, 2023 Page 3 to Agreements for Affordable Housing Financial, Analytical, and The Housing Authority anticipates that a variety of affordable housing funds may be utilized for these on -call agreements, including, but not limited to the following programs: Accounting Unit- Fund Description Accounting Unit, Account Account Description 14018760-62300 Housing Choice Vouchers HCV, Contract Services - Professional 60718810-62300 Low and Moderate Income Housing LMIHAF, Contract Services - Asset Fund Professional EXHIBIT(S) 1. First Amendment to Agreement with Keyser Marston Associates, Inc. 2. First Amendment to Agreement with David Paul Rosen & Associates 3. First Amendment to Agreement with RSG, Inc. Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager FIRST AMENDMENT TO AGREEMENT TO PROVIDE ON -CALL AFFORDABLE HOUSING FINANCIAL, ANALYTICAL AND ADVISORY SERVICES (Keyser Marston Associates, Inc.) THIS FIRST AMENDMENT ("First Amendment") to the above referenced agreement is entered into this 10h day of May, 2023, by and between Keyser Marston Associates, Inc., a California corporation ("Consultant"), and jointly the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and the Housing Authority of the City of Santa Ana, a public body, corporate and politic ("Authority"). City and Authority shall jointly or interchangeably, as applicable, be referred to as "City" for purposes of this First Amendment. RECITALS A. On November 16, 2021, the City entered into Agreement #A-2021-229-01 ("Agreement"), with Consultant to provide on -call affordable housing financial, analytical and advisory services for general multifamily affordable housing financial advisory services; general single family affordable housing program financial analytical services; multifamily and/or single family bond issuance financial advisory services; and the City's Inclusionary Housing Program financial analysis on an as -needed basis. B. The Agreement is one of three agreements for vendors selected in response to RFQ No. 21-107. The Agreement provides for each Consultant to share in an aggregate compensation amount for the on -call services detailed in the Agreement. The Agreement runs through November 1, 2024, includes the ability to extend its term upon a writing executed by the City Manager and the City Attorney, and is current and in -effect. C. The parties now wish to amend the Agreement to update the current fee schedule, increase the overall compensation amongst the selected vendors by $250,000.00, and agree to extend the term of the Agreement by two (2) years. The increase in compensation is to accommodate an exhaustion of funds. Consultant assisted with extensive financial analyses and technical support for major City projects. There are additional pending projects and updates of manuals that still require the assistance of Consultant. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 2.a, COMPENSATION, shall be amended to read in its entirety as follows: a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B-l.. Consultant is one of three (3) Consultants selected to provide affordable housing financial, analytical, and advisory services on an as needed basis under RFQ No. 21-107. The total compensation for services provided by all Consultants selected under RFQ No. 21-107 is a collective amount not to exceed Five Hundred Thousand Dollars ($500,000.00) during the term of the Agreement, including any extension periods. 2. Section 3, TERM, shall be amended to read in its entirety as follows: This Agreement shall commence on the date first written above and continue for three (3) years through November 15, 2024, unless terminated earlier in accordance with Section 17, below. Upon execution and commencement of the Term of this Agreement, Agreement No. A-2018-203 between the City and Consultant shall be terminated. The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. The parties hereby agree to extend the term of this Agreement for an additional two (2) year period through November 1, 2026. 3. Except as modified by this First Amendment, all terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to said Agreement the date and year first above written. ATTEST: JENNIFER L. HALL City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney y: Andrea arcia-Miller Assistant City Attorney RECOMMENDED FOR APPROVAL: Michael L. Garcia Executive Director Community Development Agency OA CITY OF SANTA ANA KRISTINE RIDGE City Manager CONSULTANT KEYSER 7MARSTON ASSOCIATES, IN . Tim Bretz Senior Principal FIRST AMENDMENT TO AGREEMENT TO PROVIDE ON -CALL AFFORDABLE HOUSING FINANCIAL, ANALYTICAL AND ADVISORY SERVICES (David Paul Rosen & Associates) THIS FIRST AMENDMENT ("First Amendment") to the above referenced agreement is entered into this 10h day of May, 2023, by and between David Paul Rosen & Associates, a sole proprietorship ("Consultant"), and jointly the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and the Housing Authority of the City of Santa Ana, a public body, corporate and politic ("Authority"). City and Authority shall jointly or interchangeably, as applicable, be referred to as "City" for purposes of this First Amendment. RECITALS A. On November 16, 2021, the City entered into Agreement #A-2021-229-02 ("Agreement"), with Consultant to provide on -call affordable housing financial, analytical and advisory services for general multifamily affordable housing financial advisory services; general single family affordable housing program financial analytical services; multifamily and/or single family bond issuance financial advisory services; and the City's Inclusionary Housing Program financial analysis on an as -needed basis. B. The Agreement is one of three agreements for vendors selected in response to RFQ No. 21-107. The Agreement provides for each Consultant to share in an aggregate compensation amount for the on -call services detailed in the Agreement. The Agreement runs through November 1, 2024, includes the ability to extend its term upon a writing executed by the City Manager and City Attorney, and is current and in -effect. C. The parties now wish to amend the Agreement to increase the overall compensation amongst the selected vendors by $250,000, and agree to extend the term of the Agreement by two (2) years. The increase in compensation is to accommodate an exhaustion of funds. Consultant assisted with extensive financial analyses and technical support for major City projects. There are additional pending projects that still require the assistance of Consultant. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 2.a, COMPENSATION, shall be amended to read in its entirety as follows: a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B-1. Consultant is one of three (3) Consultants selected to provide affordable housing financial, analytical, and advisory services on an as needed basis under RFQ No. 21-107. The total compensation for services provided by all Consultants selected under RFQ No. 21-107 is a collective amount not to exceed Five Hundred Thousand Dollars ($500,000.00) during the term of the Agreement, including any extension periods. 2. Section 3, TERM, shall be amended to read in its entirety as follows: This Agreement shall commence on the date first written above and continue for three (3) years through November 1, 2024, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. The parties hereby agree to exercise the option to extend the term of this Agreement for an additional two (2) year period through November 1, 2026. 3. Except as modified by this First Amendment, all terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to said Agreement the date and year first above written. ATTEST: JENNIFER L. HALL City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Assistant City Attorney RECOMMENDED FOR APPROVAL: Michael L. Garcia Executive Director Community Development Agency 2 CITY OF SANTA ANA KRISTINE RIDGE City Manager CONSULTANT Altlel't' e - B : David Rosen Title: Principal FIRST AMENDMENT TO AGREEMENT TO PROVIDE ON -CALL AFFORDABLE HOUSING FINANCIAL, ANALYTICAL AND ADVISORY SERVICES (RSG, Inc.) THIS FIRST AMENDMENT ("First Amendment") to the above referenced agreement is entered into this 16th day of May, 2023, by and between RSG, Inc., a California corporation ("Consultant"), and jointly the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and the Housing Authority of the City of Santa Ana, a public body, corporate and politic ("Authority"). City and Authority shall jointly or interchangeably, as applicable, be referred to as "City" for purposes of this First Amendment. RECITALS A. On November 16, 2021, the City entered into Agreement #A-2021-229-03 ("Agreement"), with Consultant to provide on -call affordable housing financial, analytical and advisory services for general multifamily affordable housing financial advisory services; general single family affordable housing program financial analytical services; multifamily and/or single family bond issuance financial advisory services; and the City's Inclusionary Housing Program financial analysis on an as -needed basis. B. The Agreement is one of three agreements for vendors selected in response to RFQ No. 21-107. The Agreement provides for each Consultant to share in an aggregate compensation amount for the on -call services detailed in the Agreement. The Agreement runs through November 1, 2024, includes the ability to extend its term upon a writing executed by the City Manager and the City Attorney, and is current and in -effect. C. The parties now wish to amend the Agreement to increase the overall compensation amongst the selected vendors by $250,000.00, and agree to extend the term of the Agreement by two (2) years. The increase in compensation is to accommodate an exhaustion of funds. Consultant assisted with extensive financial analyses and technical support. There are additional pending projects that still require the assistance of Consultant. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 2.a, COMPENSATION, shall be amended to read in its entirety as follows: a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B-1. Consultant is one of three (3) Consultants selected to provide affordable housing financial, analytical, and advisory services on an as needed basis under RFQ No. 21-107. The total compensation for services provided by all Consultants selected under RFQ No. 21-107 is a collective amount not to exceed Five Hundred Thousand Dollars ($500,000.00) during the term of the Agreement including any 1 extension periods. 2. Section 3, TERM, shall be amended to read in its entirety as follows: This Agreement shall commence on the date first written above and continue for three (3) years through November 1, 2024, unless terminated earlier in accordance with Section 17, below. The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. The parties hereby agree to exercise the option to extend the term of this Agreement for an additional two (2) year period through November 1, 2026. 3. Except as modified by this First Amendment, all terms and conditions of the Agreement remain in full force and effect. IN WITNESS VaIEREOF, the parties hereto have executed this First Amendmentto said Agreement the date and year first above written. ATTEST: JENNIFER L. HALL City Clerk APPROVED AS TO FORM: SONIA R_ CARVALHO City Attorney 4- CL- y: Andrea Garcia -Miller Assistant City Attorney Michael L. Garcia Executive Director Community Development Agency 2 CITY OF SANTA ANA KRISTINE RIDGE City Manager locale 130 0 lr.:l 20 1 Iar�a � �) By: Tara E. Matthews Title: Principal/Vice President