HomeMy WebLinkAbout09 - CC-6 - Amendment Three to the PSA with Keyser-M - 2/18/2014CITY OF COSTA MESA
COSTA MESA HOUSING AUTHOR/TY
CITY OF COSTA MESA SUCCESSOR
A GENC Y TO THE REDEVELOPMENT
AGENCY
MEETING DATE: FEBRUARY 18, 2014 ITEM NUMBER:
SUBJECT: AMENDMENT THREE TO THE PROFESSIONAL SERVICES
AGREEMENT WITH KEYSER-MARSTON ASSOCIATES CONSULTING
DATE: JANUARY 22, 2014
FROM: DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND COMMUNITY
DEVELOPMENT
PRESENTATION BY: WILLA BOUWENS-KILLEEN, PRINCIPAL PLANNER
SILVIA KENNERSON, MANAGEMENT ANALYST
FOR FURTHER INFORMATION WILLA BOUWENS-KILLEEN, PRINCIPAL PLANNER
CONTACT: 714. 754.5153 willa.bouwens-killeen@costamesaca.gov
SILVIA KENNERSON, MANAGEMENT ANALYST
714. 754.5023 silvia.kennerson@costamesaca.gov
RECOMMENDATION
1. Approve Amendment Three, revise existing cap not to exceed $200,000 to the
Professional Services Agreement with Keyser Marston Associates (KMA)
Consulting.
2. Authorize the City Chief Executive Officer to sign the amended Professional
Services Agreement with 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.
KMA Consulting provides services for a variety of Housing and Community Development,
Successor Agency, 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.
ANALYSIS
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 Successor Agency and Housing
Authority, staff recommends that the City Council, acting as Successor Agency to the
Costa Mesa Redevelopment Agency, and the Costa Mesa Housing Authority approve
Amendment Three to the existing agreement with Keyser Marston Associates Consulting,
not to exceed $200,000.00 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 approve Amendment Three to the Professional Services
Agreement with Keyser Marston Associates Consulting and maintain the cap not to
exceed the current amount of $140,000.
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FISCAL IMPACT
No fiscal impact because funding for the current agreement is already accommodated in
the General Fund, Housing and Community Development, and the Costa Mesa Housing
Authority budgets. Any expenditures in excess of existing approvals will be required to
be pre -authorized with total expenditures not to exceed the approved cap.
LEGAL IMPACT
There is no adverse legal impact anticipated by the Council's taking the recommended
action(s), based upon the documents and information provided to this office.
CONCLUSION
Staff recommends approval of Amendment Three, revise the existing cap to the total
compensation not to exceed $200,000 to the Professional Services Agreement due to an
increase of new programs as well as the complexity of new laws and requirements,
pertaining to the Successor Agency and the Housing Authority.
GARY ARMSTRONG
Economic and Development Services
Director
STEPHEN DUNIVENT
Interim Finance Director
Attachments: Attachment A - Amendment Three
WILLA BOUWENS-KILLEEN
Principal Planner
SILVIA KENNERSON
Management Analyst
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