HomeMy WebLinkAbout01 - CC-1 - Amendment Four to the PSA with Keyser - 6/23/2015CITY OF COSTA MESA
COSTA MESA HOUSING AUTHOR/TY
MEETING DATE: JUNE 23, 2015 ITEM NUMBER: CC -1
SUBJECT: AMENDMENT FOUR TO THE PROFESSIONAL SERVICES AGREEMENT
WITH KEYSER-MARSTON ASSOCIATES CONSULTING
DATE: JUNE 17, 2015
FROM: DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND COMMUNITY
DEVELOPMENT/NETWORK FOR HOMELESS SOLUTIONS DIVISION
PRESENTATION BY: DAN BAKER, PUBLIC AFFAIRS MANAGER
714.754.5156 dan.baker@costamesaca.gov
FOR FURTHER INFORMATION WILLA BOUWENS-KILLEEN, PRINCIPAL PLANNER
CONTACT: 714. 754.5153 willa.bouwens-killeen@costamesaca.gov
RECOMMENDATION
1. Approve Amendment Four, revise existing cap not to exceed $107,917 and extend
the term to June 30, 2016 to the Professional Services Agreement with Keyser
Marston Associates (KMA) Consulting.
BACKGROUND
The City entered into a Professional Service Agreement with KMA Consulting on July 1,
2012, in the amount of $100,000. Amendment One was approved by the City Council and
went into effect on December 14, 2012 increasing the compensation amount not to exceed
a total of $130,000. Amendment Two was also approved by Council and went into effect
on May 21, 2013 to increase the total compensation amount by $10,000, and not to exceed
$140,000 in total compensation. Amendment Three was approved by Council on February
18, 2014 increasing the total compensation not to exceed $200,000.
KMA Consulting provides services for a variety of Housing and Community Development
and Costa Mesa Housing Authority projects. The City Council and the former
Redevelopment Agency (RDA) have engaged financial and real estate consultants via the
RDA and City approved agreements in a variety of development projects to provide
specialized financial consulting services to supplement staff expertise. These projects
included the First Time Home Buyer Program, St. Johns Manor, and other senior and low -
to -moderate housing projects. Their scope of services included support in negotiations,
financial analysis of residential receipt notes and any housing loan modifications,
evaluation of developer business financials, and assistance to City staff in reviewing
responses to Request for Proposal's for major development projects. Additionally, they
have been instrumental, along with special counsel to the Redevelopment Agency and
Successor Agency, in assisting in the preparation of documents necessary to implement
ABX126, (RDA Dissolution legislation). They have also provided programmatic assistance
due to staff reductions for such projects as the Neighborhood Stabilization Program and
the Homeless Task Force Supportive Housing strategy.
Specifically, KMA consultant Muriel Ullman has been instrumental in coordinating efforts to
provide assistance to at -risk and homeless Costa Mesa residents. Ms. Ullman has also
assisted with community relations with local churches, residents, businesses and outside
jurisdictions regarding City initiatives regarding neighborhood improvement and homeless
services.
ANAI YSIS
The scope, breadth and depth of independent financial review and analyses required for
complex development projects, coupled with confidentiality that must be maintained during
various stages of the project, necessitate the services of independent financial consultants
to augment staff expertise. KMA has been such a consultant in the past and has provided
the City with comprehensive real estate and financial consulting services of the highest
professional standard. Additionally, given the abolishment of the RDA and the necessity to
reduce staff and implement programmatic reductions, this firm is readily available to
assume many tasks including affordable housing management, community relations,
homeless coordination, and ABX126 coordination, and document preparation.
The City has contracted with KMA since the early nineties. KMA has a proven track record
of success on complex development financing projects, previous work experience with
California RDA's, the ability to manage numerous projects with varying complexity, and
experience in housing program services including Neighborhood Stabilization Program,
supportive housing strategies for homeless, senior housing strategies, etc., and is
intimately familiar with numerous City of Costa Mesa projects.
Due to the multitude of new programs created by City Council, as well as the complexity of
the new laws and requirements pertaining to the Housing Authority, staff recommends that
the City Council and the Costa Mesa Housing Authority approve Amendment Four to the
existing agreement with Keyser Marston Associates Consulting, not to exceed $107,917
on tasks to be performed, as assigned by the CEO, City Attorney, City Council or other
authorized persons during the term of the Agreement.
ALTERNATIVES CONSIDERED
The City Council can decide not to approve Amendment Four to the Professional Services
Agreement with Keyser Marston Associates Consulting and maintain the cap not to exceed
the current amount of $200,000, as approved under Amendment Three.
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FISCAL IMPACT
Funding for Amendment Four will be accommodated in Housing and Community
Development, Housing Authority, and the General Fund FY15-16 budget.
LEGAL IMPACT
The City Attorney's Office has prepared and approved documents as to form.
CONCLUSION
Staff recommends approval of Amendment Four, revise the existing cap to the total
compensation not to exceed $107,917 and extend the term to June 30, 2016.
GARY ARMSTRONG, AICP
Economic Development &
Development Services Director/
Deputy CEO
STEPHEN DUNIVENT
Interim Finance Director
Exhibit A - Amendment Four
Exhibit B - Fee Schedule
Exhibit C - Scope of Work
Exhibit D -.Purchase Requistion
Richard L. Francis
Assistant CEO
Thomas Duarte
City Attorney
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