Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers. This form must be completed 15 minutes prior to the scheduled meeting time.
Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.
COMPTON CITY COUNCIL
AGENDA
09/27/2022
5:30 PM
Closed Session 4:30 P.M.
Public Meeting 5:30 P.M.
CITY COUNCIL CHAMBERS
205 SOUTH WILLOWBROOK AVENUE
COMPTON, CALIFORNIA 90220
OPENING
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC COMMENTS ON CLOSED SESSION AGENDA ITEMS
(Persons wishing to address the City Council on the Closed Session items may do so at this time.
Comments are limited to one (1) minute per speaker and shall be limited to Closed Session agenda items)
-2- City Council Agenda
9/27/2022 5:30 PM
CLOSED SESSION – 4:30 p.m.
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
One (1) Potential Claim
Pursuant to Government Code Section 54956.9(a)
RECESS TO CLOSED SESSION
PUBLIC MEETING – 5:30 P.M.
REPORT ON CLOSED SESSION ACTION(S)
COMMENDATORY RESOLUTIONS/PRESENTATIONS
1. PLAQUE PRESENTATION - FOR THE LOVE OF OUR VETERANS AND COMPTON CHAMBER OF COMMERCE - 19TH ANNUAL VETERANS STAND DOWN (Councilwoman Deidre Duhart)
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
CONSENT AGENDA
Consent items are routine and expected to be non-controversial. They will be acted upon by the Council at one time without discussion unless a Council Member requests an item be removed or discussed..
CITY MANAGER/CITY ATTORNEY/CITY CONTROLLER/CITY TREASURER
REPORTS
2. 2022 LOCAL AGENCY BIENNIAL NOTICE (Receive/File)
REGULAR AGENDA
CITY MANAGER'S REPORT
3. POWER POINT PRESENTATION - STREET REHABILITATION UPDATE - Alvin Bautista, City Engineer
4. ORAL PRESENTATION - CRIME STATISTICS UPDATE - Craig Walker, Acting Captain
5. ORAL PRESENTATION - CHRISTMAS PARADE
-3- City Council Agenda
9/27/2022 5:30 PM
NEW BUSINESS
7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER TO
SOUTH BAY MILLWORKS FOR THE CUSTOMER SERVICE AND
TREASURER'S OFFICE FRONT COUNTER REPLACEMENT PROJECT IN THE
AMOUNT OF TWO HUNDRED THIRTY-SEVEN THOUSAND TWO HUNDRED DOLLARS ($237,200.00)
8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON, ACTING
IN ITS CAPACITY AS THE HOUSING SUCCESSOR AGENCY AUTHORIZING
THE CITY MANAGER TO ENTER INTO A FIRST AMENDMENT TO A
PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON
ASSOCIATES, INC.; TO AUTHORIZE A FISCAL YEAR 2022-2023 BUDGET AMENDMENT; AND TO ISSUE PURCHASE ORDERS IN THE AMOUNT OF FOURTEEN THOUSAND, FOUR HUNDRED DOLLARS ($14,400) TO PAY
OUTSTANDING INVOICES AND SIXTY-FIVE THOUSAND, SIX HUNDRED DOLLARS ($65,600) TO CONTINUE TO PROVIDE FEASIBLITY ANALYSIS AND
FINANCIAL ASSESSMENT SERVICES FOR LOCAL HOUSING DEVELOPMENT
PROJECTS
COUNCIL COMMENTS
ADJOURNMENT
NEXT REGULAR MEETING: 10/4/2022 @ 5:30 PM
Visit our website at http://www.comptoncity.org
2. September 27, 2022
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER
TO SOUTH BAY MILLWORKS FOR THE CUSTOMER SERVICE AND
THE TREASURER’S OFFICE FRONT COUNTER REPLACEMENT
PROJECT IN THE AMOUNT OF TWO HUNDRED THIRTY-SEVEN
THOUSAND TWO HUNDRED DOLLARS ($237,200.00)
SUMMARY
Adoption of this resolution will authorize the City Manager to issue a purchase order to South Bay Millworks in the amount of $237,200.00 for the Customer Service and the Treasurer’s Office front counter replacement project.
BACKGROUND
On April 17, 2017, the Municipal Water Department (Department) hired a private consultant to perform an Ergonomic Evaluation of several work stations throughout the Department, which included having an evaluation performed at the front counter. The front counter was deemed to be out of ADA (Americans with Disability Act of 1990) compliance, which ultimately led to the recommendation by the private consultant to completely replace the front counter as quickly as possible to be compliant with current standards and to prevent further injury to Department staff. At this time, the front counter has still not been replaced and has remained out of compliance.
The Department uses the front counter to assist walk-in customers with various transactions, which include, but are not limited to: opening and closing water accounts; assisting with water bill and payment related questions; and other customer service related tasks. Given the nature of the front counter and the customer service workload, several Customer Service Representatives have suffered and continue to suffer medical issues related to the front counter, which has affected the Department’s productivity.
Furthermore, the Treasurer’s Office uses the front counter to collect payments for departments throughout the City.
STATEMENT OF THE ISSUE
On April 11, 2022, the Department opened the Request for Proposal (RFP) process to solicit bids for the Customer Service and the Treasurer’s Office front counter replacement project. The Department attempted to solicit quotes from three (3) reputable companies; however, upon the submission deadline of April 28, 2022, we were only able to garner a
7.7. Staff Report – Resolution to Authorize P.O. South Bay Millworks September 27, 2022, Page 2
response from one (1) company. Furthermore, this is the second time the RFP process was initiated for the same project, and the first RFP process resulted in one (1) submission from the same company as well. The price for the front counter replacement project has more than doubled from the initial quote due to inflation (higher cost of materials), which makes it fiscally responsible to correct the issue as quickly as possible.
The company and their response are listed below:
Vendor Purchase Price
South Bay Millworks $237,200.00
Staff has determined that South Bay Millworks was deemed the lowest responsive and responsible bidder.
The proposal is itemized as follows:
Description Amount
Treasurer Office - Cashier Counter $86,000.00
Customer Service Counter $59,400.00
Level 3 Ballistic Glass $87,000.00
Shop Drawings $4,800.00
Total $237,200.00
ALTERNATIVES
Staff does not recommend any alternatives.
FISCAL IMPACT
Funds for this project will be allocated from the Department’s fund balance.
ACCOUNT NO. DESCRIPTION AMOUNT
5000-000-000-2710 Fund Balance $237,200.00
Increase Expenditures in the following Accounts:
ACCOUNT NO. DESCRIPTION AMOUNT
5000-890-000-4262 Other Professional Services $237,200.00 Staff Report – Resolution to Authorize P.O. South Bay Millworks September 27, 2022, Page 3
The Water Enterprise Fund has a projected (unaudited) fund balance of $16.5 million as of June 30, 2022.
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution, which authorizes the City Manager to issue a purchase order to South Bay Millworks in the amount of $237,200.00 for the Customer Service and the Treasurer’s Office front counter replacement project.
THOMAS THOMAS
CITY MANAGER
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER TO
SOUTH BAY MILLWORKS FOR THE CUSTOMER SERVICE AND THE
TREASURER’S OFFICE FRONT COUNTER REPLACEMENT PROJECT IN
THE AMOUNT OF TWO HUNDRED THIRTY-SEVEN THOUSAND TWO
HUNDRED DOLLARS ($237,200.00)
WHEREAS, on April 17, 2017, the Municipal Water Department (Department) hired a private consultant to perform an Ergonomic Evaluation of several work stations throughout the Department, which included having an evaluation performed at the front counter. The private consultant recommended that the Department completely replace the front counter as quickly as possible to be compliant with current standards and to prevent further injury to Department staff; and
WHEREAS, the Department uses the front counter to assist walk-in customers with various transactions, which include, but are not limited to: opening and closing water accounts, assisting with water bill and payment related questions, and other customer service related tasks; and
WHEREAS, the Treasurer’s Office uses the front counter to collect payments for departments throughout the City; and
WHEREAS, the Department attempted to solicit quotes from three (3) reputable companies; however, upon the submission deadline of April 28, 2022, we were only able to garner a response from one (1) company; and
WHEREAS, staff has determined that South Bay Millworks was deemed the lowest responsive and responsible bidder; and
WHEREAS, funds in the amount of $237,200.00 will be allocated from the Department’s fund balance in Account No. 5000-000-000-2710. The Water Enterprise Fund has a projected (unaudited) fund balance of $16.5 million as of June 30, 2022.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to issue a purchase order to South Bay Millworks in the amount of two hundred thirty-seven thousand two hundred dollars ($237,200.00).
SECTION 2. That $237,200.00 be allocated from the Fund balance, and increase expenditures in Account No. 5000-000-000-4262 (Fund Balance) by $237,200.00 for this expenditure.
SECTION 3.That a copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk and the Compton Municipal Water Department.
SECTION 4.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _______ day of ________________, 2022.
________________________________
MAYOR OF THE CITY OF COMPTON
Resolution No. ____________
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the forgoing Resolution was adopted by the City Council, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the _______ day of ________________, 2022.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
___________________________________
CITY CLERK OF THE CITY OF COMPTON
September 27, 2022
TO: HONORABLE MAYOR AND COUNCIL
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON,
ACTING IN ITS CAPACITY AS THE HOUSING SUCCESSOR AGENCY
AUTHORIZING THE CITY MANAGER TO ENTER INTO A FIRST AMENDMENT
TO A PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON ASSOCIATES, INC.; TO AUTHORIZE A FISCAL YEAR 2022-2023 BUDGET AMENDMENT; AND TO ISSUE PURCHASE ORDERS IN THE AMOUNT OF FOURTEEN THOUSAND, FOUR HUNDRED DOLLARS ($14,400) TO PAY
OUTSTANDING INVOICES AND SIXTY-FIVE THOUSAND, SIX HUNDRED DOLLARS ($65,600) TO CONTINUE TO PROVIDE FEASIBLITY ANALYSIS
AND FINANCIAL ASSESSMENT SERVICES FOR LOCAL HOUSING
DEVELOPMENT PROJECTS
SUMMARY
Adoption of this resolution authorizes the City Manager to enter into a first amendment to an existing professional services agreement with Keyser Marston Associates, Inc and to authorize the establishment of two (2) purchase orders, one for Fourteen Thousand, Four Hundred Dollars ($14,400) to pay outstanding invoices immediately, and the other for Sixty-Five Thousand, Six Hundred Dollars ($65,600) to provide feasibility analysis and financial assessment services for local housing development projects. Additionally, this resolution authorizes a budget amendment to appropriate Eighty Thousand Dollars ($80,000) from the Housing Successor Fund Balance for this item.
BACKGROUND
On June 10, 2010, the former Community Redevelopment Agency (“CRA”), of the City of Compton issued Series 2010A Tax Exempt Housing Bonds for the implementation of various affordable housing programs involving the acquisition of specific sites for development of low- and moderate-income housing in the community. In accordance with bond covenants, the sites must be conveyed to qualified developers as subsidies to facilitate development of affordable housing for low to moderate income households.
The City, acting in its capacity as the Housing Successor Agency (“Housing Successor”) is utilizing the former CRA’s Series 2010A Tax Exempt Housing Bonds for the development of various affordable housing projects in accordance with the provisions of the bonds. The bond covenants require that properties and/or projects acquired/subsidized with bond proceeds must be developed and sold at below fair market value to qualified low-income homebuyers. Keyser Marston Associates Inc. has worked directly with the City and Successor Agency for over ten years to analyze projects and ensure compliance with spending of the City’s bond proceeds.
8.8.8.8. Staff Report- Resolution to Amend FY 22-23 Budget, Authorize KMA Contract September 27, 2022- Page 2
This firm maintains a wealth of city history that is necessary to complete the work needed for these projects.
The Housing Successor entered into a professional services agreement on July 14, 2020 with Keyser Marston Associates for Fifty Thousand Dollars ($50,000), as authorized by City Council adoption of Resolution No. 25,314. The expiration date of this contract is based on when the compensation amount is exhausted. Currently, there remains a very low balance in this fund, and additional funds are needed to complete the work already in progress. The current projects in review have already been reviewed previously by KMA during the last fiscal year, and thus, there is extensive background knowledge that no other firm possesses. Consequently, KMA is the only firm that can provide this work to the City.
STATEMENT OF THE ISSUE
Staff is requesting a first amendment to the professional services agreement with Keyser Marston Associates, Inc. to increase the total compensation by $80,000, establishment of two purchase orders totaling $80,000 to facilitate payment of outstanding invoices and future obligations, and encumbrance of funds from the Housing Successor Agency Fund Balance to use for this contract amendment.
Historically, KMA has provided financial feasibility analysis on a number of developer proposals on behalf of the City, and has also tracked Low- and Moderate-Income Housing Fund expenditures to ensure compliance with state law. Currently the City is negotiating with a number of housing developers including but not limited to Linc Housing (16208 Atlantic Ave), KBK Developers (500-601 Compton Blvd), The Win Project (1716 Rosecrans), and Landspire Group (1434 West Compton) etc., to provide affordable housing utilizing the 2010A Bond proceeds. In order to ensure that projects funded with bond proceeds meet bond covenant requirements, it is necessary for the City to enter into an amended professional services agreement with KMA to finalize the already in progress review of pro forma submittals from developers to validate the amount of subsidies necessary to assure project feasibility.
KMA has the unique mix of experience and knowledge skill set that will provide this service within a specified time frame as they are currently working on developer proposals and have an abundance of knowledge about those proposals that have critical grant deadlines. Employing the services of a different consultant at this juncture would significantly slow down the process and jeopardize timely conclusion of Exclusive Negotiation Agreement with various prospective developers that need to be completed this year. Further, the institutional knowledge held by KMA cannot be replicated by other firms.
FISCAL IMPACT
There is no impact to the General Fund Account. The funds in the amount of $80,000.00 are available in the Housing Successor Agency’s Fund Balance. The Fund Balance is approximately Twenty-Six Million Dollars ($26,000,000).
Staff Report- Resolution to Amend FY 22-23 Budget, Authorize KMA Contract September 27, 2022- Page 3
These funds shall be appropriated from the Fund Balance and the appropriations in the following account shall be increased by $80,000: Account No. 1205-910-000-4262. The cost for service will be $80,000 and will be charged to the same account. Authorization for two purchase orders, one for $14,400 to pay outstanding invoices immediately, and a second for the remaining $64,400, are also being requested to facilitate payment to KMA.
RECOMMENDATION
Staff recommends that City Council, acting in its capacity as the Housing Successor Agency adopt the attached Resolution.
THOMAS THOMAS.
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON,
ACTING IN ITS CAPACITY AS THE HOUSING SUCCESSOR AGENCY
AUTHORIZING THE CITY MANAGER TO ENTER INTO A FIRST AMENDMENT
TO A PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON ASSOCIATES, INC.; TO AUTHORIZE A FISCAL YEAR 2022-2023 BUDGET AMENDMENT; AND TO ISSUE PURCHASE ORDERS IN THE AMOUNT OF FOURTEEN THOUSAND, FOUR HUNDRED DOLLARS ($14,400) TO PAY
OUTSTANDING INVOICES AND SIXTY-FIVE THOUSAND, SIX HUNDRED DOLLARS ($65,600) TO CONTINUE TO PROVIDE FEASIBLITY ANALYSIS
AND FINANCIAL ASSESSMENT SERVICES FOR LOCAL HOUSING
DEVELOPMENT PROJECTS
WHEREAS, on June 10, 2010, the former Community Redevelopment Agency (“CRA”), of the City of Compton issued Series 2010A Tax Exempt Housing Bonds for the implementation of various affordable housing programs involving the acquisition of specific sites for development of low- and moderate-income housing in the community; and
WHEREAS, the City, acting in its capacity as the Housing Successor Agency (“Housing Successor”) is utilizing the former CRA’s Series 2010A Tax Exempt Housing Bonds for the development of various affordable housing projects in accordance with the provisions of the bonds, which require that properties and/or projects acquired/subsidized with bond proceeds must be developed and sold at below fair market value to qualified low-income homebuyers; and
WHEREAS, in order to ensure that projects funded with bond proceeds meet bond covenant provisions, the City needs to retain the services of an experienced consulting firm with expertise to provide the City with advice and assistance in reviewing and evaluating the financial and pro forma submittals from developers associated with these projects and validate the amount of subsidies necessary to assure project feasibility in accordance with the tax-exempt status of the 2010A Bonds; and WHEREAS, The Housing Successor entered into a professional services agreement on July 14, 2020 with Keyser Marston Associates for Fifty Thousand Dollars ($50,000), as authorized by City Council adoption of Resolution No. 25,314. The expiration date of this contract is based on when the compensation amount is exhausted.
Currently, there remains a very low balance in this fund, and additional funds are needed to complete the work already in progress.
WHEREAS, historically, KMA has provided financial feasibility analysis on a number of developer proposals, including Meta Housing, the City Ventures at 930 West Compton Boulevard and 900 Dwight on behalf of the City, and staff believes that KMA has the unique mix of experience and knowledge skill set necessary to provide this service within a specified time frame, as they are currently working on developer proposals and have an abundance of knowledge about those proposals that have critical deadlines; and
WHEREAS, the City is currently negotiating with a number of housing developers to provide affordable housing utilizing the 2010A Bond proceeds.
WHEREAS, there is no other consultant that has the institutional knowledge of Compton’s redevelopment history to conduct all of the work necessary, and employing the services of a different consultant at this juncture would significantly slow down the process and jeopardize development projects and funding; and WHEREAS, staff is requesting that City Council authorize the City Manager to enter into a first amendment to the existing professional services agreement with KMA to increase not to exceed compensation in the amount of $80,000.00 to complete the RESOLUTION NO. _______________
analyses they are currently working on and additional analyses expected to occur within the contract period; and
WHEREAS, the funds shall be appropriated from the Fund Balance and the appropriations in the following account shall be increased by $80,000: Account No. 1205-910-000-4262. The cost for service will be $80,000 and will be charged to the same account.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON, ACTING
IN ITS CAPACITY AS THE HOUSING SUCCESSOR AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to execute a professional services contract with Keyser Marston Associates, Inc. to provide consultation and assistance in reviewing and evaluating financial and pro forma submittals from Developers for Housing Successor Agency projects utilizing 2010A Tax Exempt Housing Bonds for the implementation of various housing developments within the City.
SECTION 2. That a purchase order in the amount of $14,400 is hereby authorized to be established for Keyser Marston Associates, Inc. to immediately pay outstanding invoices.
SECTION 3. That a second purchase order in the amount of $64,400 is authorized to be established for Keyser Marston Associates, Inc.
SECTION 4. That funds shall be appropriated from the Fund Balance and the appropriations in the following account shall be increased by $80,000: Account No. 1205-910-000-4262. The cost for service will be $80,000 and will be charged to the same account.
SECTION 5. That certified copies of this Resolution shall be filed in the offices of the City Controller, City Clerk, City Manager, and the City Attorney.
SECTION 6. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ___________ day of ____________, 2022.
________________________________
MAYOR OF THE CITY OF COMPTON
RESOLUTION NO. _______________
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor, and attested by the City Clerk at the regular meeting thereof held on the _______ day of ___________, 2022.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
_____________________________________
CITY CLERK OF THE CITY OF COMPTON
FIRST AMENDMENT TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
CITY OF COMPTON
(ACTING IN THE CAPACITY OF THE HOUSING SUCCESSOR)
AND
KEYSER MARSTON & ASSOCIATES
This FIRST AMENDMENT (“Amendment”) to the Professional Services Agreement entered into on August 25, 2020, is made and entered into effective September 27, 2022 by and between the CITY OF COMPTON, a municipal corporation of the State of California, acting in the capacity as the Compton Housing Successor (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and KEYSER MARSTON & ASSOCIATES_ (hereinafter referred to as “CONSULTANT”), located at 500 South Grand Avenue, Los Angeles, California 90071
RECITALS:
WHEREAS, the Successor Agency of the City of Compton is utilizing the Agency’s Series 2010A tax-exempt housing bonds for development of various affordable housing projects involving acquisition of specific sites for development of low- and moderate-income housing in the community; and WHEREAS, in accordance with bond covenants, the sites must be conveyed to qualified developers as subsidies to facilitate development of affordable housing for low to moderate income households; and
WHEREAS, the City has determined that there is a need to procure the services of KMA to complete analysis of the development proformas of prospective developers to validate the amount of subsidies necessary to ensure construction of the affordable housing developments in compliance with the bond covenants in a timely manner; and
WHEREAS, the City has determined that the Keyser Marston and Associates has the necessary experience, competence, and the resources to provide such services required by this Agreement in the timeframe needed to meet certain deadlines; and
WHEREAS, the City and Consultant entered into that certain Professional Services Agreement on August 25, 2020, for a not to exceed compensation of Fifty Thousand Dollars ($50,000); and
WHEREAS, the City seeks to amend that Professional Services Agreement to add Eighty Thousand Dollars ($80,000) for a total compensation not to exceed One Hundred Thirty Thousand Dollars ($130,000).
First Amendment to Professional Services Agreement – Keyser Marston & Associates 2 NOW, THEREFORE, in consideration of the premises above stated and the terms, conditions, covenants and agreements contained herein, the City and Consultant (each a “Party” and collectively, the “Parties”) do hereby mutually agree to amend the original Professional Services Agreement as follows:
1. The parties agree to amend Section 3- Compensation- of the original Professional Services Agreement to increase compensation to a not-to-exceed amount of One Hundred Thirty Thousand Dollars ($130,000).
2. Except as provided for above, all other terms, provisions and conditions of the original Professional Services Agreement and any amendments thereto between the City and the Company all remain in effect.
IN WITNESS WHEREOF, Consultant has executed this First Amendment to the above-identified Professional Services Agreement, and the City, by its City Manager, who is authorized to do so, has executed this First Amendment.
KEYSER MARSTON & ASSSOCIATES
By _____________________________________ Dated:
_______________
JIM RABE, SENIOR PRINCIPAL
CITY OF COMPTON
Approved by:
Dated: _______________
By______________________________________
Thomas Thomas, EXECUTIVE DIRECTOR
Approved as to form:
First Amendment to Professional Services Agreement – Keyser Marston & Associates 3 By ___________________________________ Dated:
______________
Eric Perrodin/ City Attorney
ATTEST:
Dated: _______________ By
_____________________________________
Alita Godwin, City Clerk
500 SOUTH GRAND AVENUE, SUITE 1480 LOS ANGELES, CALIFORNIA 90071 PHONE 213.622.8095 2206021:COM;JLR
WWW.KEYSERMARSTON.COM 99900.000.002
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
A. Jerry Keyser
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
James A. Rabe
Gregory D. Soo-Hoo
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
S
AN DIEGO
Paul C. Marra
June 28, 2022
Kofi Sefa-Boakye
Successor Agency
City of Compton
205 S. Willowbrook Avenue
Compton, California 90220
Dear Kofi:
Keyser Marston Associates, Inc. (KMA) is pleased to provide the City of Compton (City) with a proposal to provide real estate financial analysis services associated with housing and mixed-use projects. KMA understands that the City has several housing development projects that will require financial analysis.
STATEMENT OF QUALIFICATIONS
Description of Firm
KMA is a full-service real estate, financial, redevelopment and economic consulting firm specializing in real estate advisory and evaluation services. KMA is a privately held corporation that was incorporated in 1973. KMA has one of the larger real estate advisory practices on the West Coast. The majority of KMA assignments involve long-standing client relationships.
KMA has 22 professional staff members in offices located in Los Angeles, Berkeley and San Diego. The Los Angeles office provides advisory services to government agencies and private sector clients throughout Southern California.
After nearly 50 years, KMA has held the same commitment to clients: to provide creative pragmatic solutions to complex urban development. Our practice areas include:
Kofi Sefa-Boakye June 28, 2022
City of Compton Page 2
2206021:COM;JLR
99900.000.002
Public Private Real Estate Transactions Infrastructure and Public Finance Fiscal and Economic Impacts Transit-Oriented Neighborhoods Public Benefits and Entitlements Affordable and Inclusionary Housing Economic Development
We approach all our assignments from a reality-based perspective. Our objective is to provide decision-makers with sound advice supported by strong technical analysis of all economic factors that impact success, including:
Market Conditions Financial Investment Requirements
Community Needs and Benefits Development Issues
KMA’s unique strength is the depth, continuity and availability of our principals who average more than twenty years of practical experience in working with business and government. Their personal involvement is a key factor in the firm’s ongoing success.
Their knowledge and expertise bring clarity to the complexities of real estate development.
KMA’s principals are frequent speakers to such industry groups as the Urban Land Institute and the California League of Cities. They have also served on policy-advisory committees for the State Legislature and Governor on issues such as affordable housing, economic development and military base reuse.
The increased complexities of real estate transactions demand a strong technical understanding of market opportunities and constraints. KMA can provide services that are grounded in a fundamental understanding of the Southern California real estate market, project valuation and project financing. Unique characteristics possessed by KMA include:
EXPERIENCE
KMA has nearly 50 years of experience assisting clients throughout the West in real estate market and evaluation services; negotiation services; structuring public/private transactions; and project implementation services.
COST EFFECTIVENESS
KMA is able to be cost effective for our clients given our ability to provide comprehensive services relating to market and financial feasibility, economic analysis, direct implementation experience and public finance without the need for multiple consultants.
Kofi Sefa-Boakye June 28, 2022
City of Compton Page 3
2206021:COM;JLR
99900.000.002
COMMITMENT
KMA offers the commitment of principals who are recognized leaders in real estate advisory services throughout California. Our philosophy and structure results in clients having maximum direct contact with the firm’s principals.
Relevant Areas of Expertise
KMA has a robust practice in evaluating the development economics of individual projects, and our staff are experts in analyzing a full range of residential uses including rental and for-sale projects; projects in urban, suburban and rural locations; and very-low income to luxury unit types. From this practice, we understand construction costs, financing structures and the “feasibility gap” associated with developing affordable units. The use of market demand analyses and pro forma financial analyses to evaluate the financial feasibility of a wide range of projects is one of KMA’s notable strengths. Financial feasibility analyses are typically geared toward providing KMA's public sector clients with a perspective on the private sector development economics for proposed projects.
KMA provides a complete range of financial analyses and consulting services for development projects. These include market analyses, highest and best use studies, financial feasibility analyses, preparation of requests for qualifications and proposals, developer selection, and disposition negotiations including ground lease negotiations.
Uniquely, KMA combines its real estate advisory services with a range of financial and economic evaluation services, projection of public revenues, fiscal impact analyses and economic analyses of alternative land use options. This integration of disciplines allows extremely cost effective coordinated services for our clients.
MARKET AND FINANCIAL ANALYSIS OF PROJECTS WITH AN AFFORDABLE HOUSING COMPONENT KMA prepares market and financial analyses that result in identifying an appropriate level of client investment in a project. We evaluate the impact of burdens and incentives on affordable housing programs and advise on all aspects of project financing. KMA is practiced in all aspects of housing finance and underwriting and brings in-depth expertise in a variety of financing techniques such as the following:
Kofi Sefa-Boakye June 28, 2022
City of Compton Page 4
2206021:COM;JLR
99900.000.002
The successful disposition of properties and the structuring of affordable housing transactions requires a strong technical understanding of real estate, financing markets and a keen understanding of California laws and various funding sources that affect the disposition of public property. The firm is unique among other real estate consulting firms in that we possess this entire array of skills. The combined knowledge and expertise in these areas has resulted in KMA’s ability to provide services, which not only comply with the current policies and practices pertaining to local development but are also based on a fundamental understanding of real estate markets, valuation and financing.
Our services include the following:
Financial Gap Analysis & Site Valuation
Analyses
Ongoing Covenant & Residual Receipts
Monitoring
Business Terms Negotiations Public-Private Transactions Layering & Leveraging Tests
REFERENCES
Examples of our experience and long-term relationships are provided below:
City of Los Angeles Housing Department (LAHD)
KMA provides on-going real estate and negotiations assistance to LAHD on a variety of land transactions including ownership and rental projects. LAHD received numerous properties from the former Community Redevelopment Agency of the City of Los Angeles, as well as surplus properties from other City departments. These properties are Debt Sources
•Conventional
loans
•Tax-exempt
multi-family
housing bonds
•Section
221d3/4 FHA
mortgage
insurance
•CalHFA
programs
Tax Credits
•9% and 4%
Low Income
Housing
•State of
California
•Historic
•New Market
Tax Credits
HUD
•HOME
•Section 8
•Section
202/811
•McKinney Act
•CDBG
•New Issue
Bond Program
HCD
•Multi-Family
Housing
Program
•BEGIN
•CalHOME
•Veteran's
Housing and
Homelessness
Prevention
Program
•No Place Like
Home Program
•Mental Health
Services Act
Other Funding
Sources
•Property tax
increment
housing set-
aside (LMIHAF)
•FHLB AHP
•Local In-Lieu
Fees
•Project
Homekey
•Infill
Infrastrucutre
Grant (IIG)
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proposed to be developed with affordable housing projects with a focus on providing permanent supportive housing (PSH) units. KMA’s tasks include financial and feasibility analyses, property disposition, developer selection and negotiation for long term ground leases. The projects are financed with a variety of funding sources including Low Income Housing Tax Credits, State of California funding sources, as well as the City’s HHH funds which are designated for PSH units. KMA summarizes each transaction in a memorandum and presents each project to LAHD’s Loan Committee for approval. For these tasks, KMA draws on our extensive knowledge and experience with project economics, including construction costs, financing structures, and the “feasibility gap” associated with developing affordable units. KMA has also assisted LAHD’s Land Development Unit (LDU) with structuring a ground lease template for affordable housing projects.
LADOT owns four parcels located at Hollywood & Wilcox in Hollywood which will be developed with new commercial space and 154 residential units, of which 61 units will be affordable for low income artist households. KMA worked with LAHD on pro forma analysis and negotiations with the developer in preparation for approval by the Loan Committee. The schedule was driven by the funding sources (including tax credits, AHSC funds, and tax-exempt bonds) and City approval deadlines. KMA also assisted LAHD with ground lease negotiations for the commercial building adjacent to the residential project that the developer will rehabilitate utilizing CDBG and NMTC funding sources and use for below market rate offices, art gallery and performance space for artists.
Assigned Staff Julie Romey, Tim Bretz, Kathe Head
Project Schedule _____ - present (ongoing basis)
Reference Daniel Huynh, Assistant General Manager
213-808-8901
[email protected]
Los Angeles County Development Authority (LACDA)
Since 2015, KMA has been providing on-going financial consulting services to LACDA. In particular, KMA has reviewed development proposals from throughout the County that are submitted through the LACDA’s NOFA process. This task includes performing a threshold review of the financial and economic components of the project as well as a technical review that considers the LACDA’s underwriting guidelines and funding/market conditions to determine the feasibility as well as need for assistance. KMA then presents the proposals to the LACDA NOFA Committee and discusses how to resolve identified issues.
KMA has also been on various developer selection review panels for LACDA, including the recent USC + LA County Restorative Care Village that is owned by the County and the medical center. KMA has also assisted LACDA staff with finalizing and closing the Kofi Sefa-Boakye June 28, 2022
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numerous transactions and ensuring that the LACDA investment is protected. This involves weekly closing calls with multiple funding sources representatives and legal teams. KMA also reviews and suggests legal language for the LACDA agreement and presents the project to the Underwriting Committee to get the final approval to fund the project.
Assigned Staff Julie Romey, Kathe Head
Project Schedule 2015 - present (ongoing basis)
Reference Lynn Katano, Director/Housing Investment & Finance Division 626-586-1806
[email protected]
City of Long Beach
KMA has represented Long Beach since the late 1970’s, including in the areas of real estate disposition, fiscal and economic analyses, market feasibility studies, property tax increment projections, and affordable housing projects. Affordable housing services provided by KMA include developer selection, financial analysis and negotiations services for market rate housing and affordable housing transactions, capital planning for the use of affordable housing funds, financial feasibility analysis for a proposed inclusionary housing program, fiscal consultant services related to bond financings and refinancings, and a replacement housing program for projects located in the Coastal Zone that are subject to the Mello Act.
KMA is currently assisting Long Beach with the financial evaluation and developer negotiations for a proposed affordable apartment project that will consist of the adaptive reuse of the Long Beach Armory building, as well as the new construction of additional affordable units on the site.
KMA also works with the City’s Housing Department to evaluate and negotiate transactions in the downtown area and throughout the City. KMA conducted an inclusionary housing feasibility study for the City, including evaluating the financial feasibility of on-site and in-lieu fee requirements.
Assigned Staff Tim Bretz, Kathe Head, Julie Romey
Project Schedule Ongoing basis
Reference Mary Frances Torres, Acting Real Estate Development Bureau Manager
562-570-6846
[email protected]
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KEY PERSONNEL & EXPERTISE
KMA’s unique strength is the depth, continuity and availability of our principals who average more than twenty years of practical experience in working with business and government. Their personal involvement is a key factor in the firm’s ongoing success.
Their knowledge and expertise bring clarity to the complexities of real estate development.
It also allows them to clearly speak on complex projects to senior management and at executive sessions and public meetings. KMA’s principals are frequent speakers to such industry groups as the Urban Land Institute, the California League of Cities, and the California Association for Local Economic Development. They have also served on policy- advisory committees for the State Legislature and Governor on issues such as affordable housing, economic development and military base reuse.
KMA’s principals have acted as instructors at the following CRA Institute courses: Beginning and Advanced Affordable Housing; Affordable Home Ownership; Pro Forma Analysis; Components of the DDA; Developer Selection; and Redevelopment Finance. KMA principals have also lectured at the UCLA Anderson School of Business, the UCLA Graduate School of Urban Planning, the USC Graduate School of Urban Planning; and the California State University at Long Beach Graduate School of Public Administration.
Julie Romey
Senior
Principal
Ms. Romey is a Senior Principal in the Los Angeles office who has over 20 years of real estate and affordable housing experience. Ms. Romey has had a role in structuring development agreements, affordable housing strategies, HOME Program policies and procedures manuals, preparing HOME Layering Analyses, and monitoring affordability restrictions and loan agreements. She also assists Successor Agencies with shut down, long range property management plans and SB 341 issues. In addition, Ms. Romey has assisted LACDA and LAHD with closing transactions.
Kathleen Head
President,
Managing
Principal
Ms. Head is the Managing Principal of the Los Angeles office and has been with KMA since 1983. Ms. Head manages the housing related services performed by the Los Angeles office and has extensive experience in program creation, policy analysis, feasibility evaluations and transaction structuring. Ms. Head has analyzed hundreds of projects utilizing tax-exempt financing and tax credits, as well as various local, state and federal assistance packages.
Tim Bretz
Senior
Principal
Mr. Bretz is a Senior Principal in the Los Angeles office of KMA. Mr.
Bretz has been with KMA since 2008. During that time, he has assisted a number of public agencies with affordable housing and real estate Kofi Sefa-Boakye June 28, 2022
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assignments. Mr. Bretz has performed affordable housing feasibility analyses, and market and reuse analyses for residential, mixed-use, hotel, office and industrial projects. In addition, he has prepared value enhancement analyses to assist in the negotiation of community benefits agreements. He has also assisted public jurisdictions with structuring ground leases for residential and commercial projects. He has prepared residential nexus and commercial linkage fee studies to support impact fees to be used to produce affordable housing.
PROPOSED SCOPE OF SERVICES
Given that KMA has not been provided with the specifics of the housing and mixed-use projects that will be assigned, the following outlines the services typically provided during a financial analysis of a project:
1. Review documents, project description, pro forma for a proposed project.
2. Prepare a financial analysis, including:
a. A residual land value analysis for the project that will include an analysis of the proposed construction costs, the stabilized net operating income including the impact of any affordability restrictions, anticipated available funding sources and a cash flow analysis;
b. Identification of issues facing the proposed project; and c. Recommendations of how to structure the Disposition and Development Agreement (DDA).
d. If any Low and Moderate Income Housing Asset Fund (LMIHAF) money is proposed to assist a project, KMA will calculate the SB 341 metrics and work with the Developer and City to make sure the project will help the City stay in compliance with the State of California’s affordable housing requirements.
e. The KMA analysis will be presented in a technical memorandum.
3. KMA will assist the City with negotiations with the Developer to establish deal terms.
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4. KMA will review and comment on the DDA.
5. KMA will prepare a 33433 report for the conveyance of Successor Agency parcels.
6. KMA will be available to present the proposed projects to decision makers, as requested by staff.
Information Request
In order to perform the analysis described above efficiently, KMA requests that the following information be provided for each project:
1. A site plan, elevations and detailed project description, including current zoning, site conditions and ownership.
2. What entitlements are needed to construct the proposed project?
3. A detailed pro forma from the developer that matches the site plan.
4. A written proposal of what the Developer is requesting from the City, as well as proposed terms.
5. What services and amenities will be provided to the tenants?
6. If the project includes market rate residential units or commercial space, information needs to be provided to back up the market rent assumptions.
7. Will the project require the payment of State of California prevailing wage requirements?
8. A detailed proposed schedule of development and financing.
9. The City should provide a summary of up to date negotiations with the developer and what potential funding sources are available to meet the developer’s request for financial assistance.
PROPOSED BUDGET AND SCHEDULE
As KMA has not been provided with a budget amount or the number of projects that will be included in this contract, KMA has provided an estimate of the cost on a per project Kofi Sefa-Boakye June 28, 2022
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basis. At the beginning of each assignment, KMA will provide staff with a budget estimate and time frame to complete the assignment. If a project is straightforward and all of the information requested is received in a timely manner, KMA can complete the scope of services for $10,000 to $15,000. The number of meetings and the length of negotiations can cause the budget to increase. KMA will keep the City informed of the status of the budget as the analysis moves forward.
It typically takes approximately three weeks for KMA to finish a financial analysis for a project. However, this timeline is sensitive to how quickly developer and the City can respond to questions that arise.
For reference purposes, the KMA billing rates for staff members that will be assigned to this engagement are presented in the following table:
Fiscal Year 2021/22 Hourly Rates
Chairman, President, Managing Principals* $290.00
Senior Principals* $280.00
Principals* $260.00
Managers* $235.00
Senior Associates $195.00
Associates $175.00
Senior Analysts $160.00
Analysts $140.00
Technical Staff $100.00
Administrative Staff $85.00
Directly related job expenses not included in the above rates are: auto mileage, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost.
Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date.
* Rates for individuals in these categories will be increased by 50% for time spent in court testimony.
KMA appreciates the opportunity to submit this proposal. If the proposal can be modified to better serve your purposes, please let me know.
Sincerely,
Keyser Marston Associates, Inc.
Julie Romey
Senior Principal