RESOLUTION NO. 5081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO EXECUTE PROFESSIONAL
SERVICES AGREEMENTS WITH DAVID ROSEN & ASSOCIATES, KEYSER
MARSTON, AND HEART OF SAN MATEO COUNTY FOR FINANCIAL
CONSULTING SERVICES FORAN AMOUNT NOT-TO-EXCEED $125,000, $125,000, AND $50,000, RESPECTIVELY
WHEREAS, the City adopted an Affordable Housing Strategy on October 16, 2018, which lays out the City's affordable housing goals and objectives for the next five years; and
WHEREAS, the Affordable Housing Strategy identifies the need to engage financial consultants to help the City meet its affordable housing goals and objectives; and
WHEREAS, the City must build its capacity to negotiate, process, and complete several market-rate residential developments as well as non-residential projects; and WHEREAS, the Community and Economic Development Department ("CEDD") issued a Request for Proposals on October 26, 2018, to identifY consultants who would provide the City with financial consulting services; and WHEREAS, staff received proposals from David Rosen & Associates, Keyser Marston, and HEART of San Mateo County; and
WHEREAS, CEDD staff reviewed the proposals and determined all three firms have the necessary experience with the tasks included in the scope of work; and WHEREAS, staff recommend awarding three contracts, one to each proposer (David Rosen & Associates, Keyser Marston, and HEART of San Mateo County) because each firm provides capacity to support City staff efforts, and contracting with three finns provides staffwith options according to their unique expertise and availability at any given time; and
WHEREAS, the Scope of Work for each contract would be modeled after Exhibit-A of this Resolution; and
WHEREAS, the contract amounts would be capped at $125,000 for David Rosen & Associates, $125,000 for Keyser Marston, and $50,000 for HEART of San Mateo County, respectively, according the anticipated level of consulting activity that would be requested of each; and
WHEREAS, the Affordable Housing Fund has sufficient funds to allocate to these contracts; and
WHEREAS, to the maximum extent feasible, the City will be reimbursed for these costs from associated development projects.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL
OF THE CITY OF EAST PALO ALTO HEREBY authorizes the City Manager to execute a professional services agreements, in a form approved by the City Attorney, with David Rosen & Associates for an amount not-to-exceed $125,000, Keyser Marston for an amount not-to-exceed $125,000, and HEART of San Mateo County for an amount not-to-exceed $50,000, for financial Consulting Services described in Exhibit A attached to this Resolution.
PASSED AND ADOPTED this 5th day of February 2019, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
MOODY, ROMERO, ABRICA, GAUTHIER, WALLACE-JONES
NONE
NONE
NONE
SIGNED:
APPROVED AS TO FORM:
EXHIBIT-A
GENERAL SCOPE OF WORK FOR FINANCIAL CONSULTING SERVICES The City of East Palo Alto had identified the need to contract financial consultant services, thereby increasing the City's capacity to achieve its goals in preserving and enhancing the supply of affordable housing, as well as efficiently managing other types of development activity.
The selected consultant (Contractor) shall provide the services that will include, but will not be limited to financial feasibility assessment, affordable housing underwriting assistance, land use planning, public benefit analysis, inclusionary housing and impact fee analysis services, developer agreements, replacement housing compliance, and review of financial assistance requests to the City for affordable housing and/or mixed-use development.
Contractor will be expected to provide "on-demand" services in response to City staff requests in the areas of Affordable Housing and General Financial Consulting. Specific tasks in each area are detailed, as follows:
Affordable Housing Consulting Services
Financial Analysis
Review project and sponsor financial statements to understand projects' financial feasibility, operating contexts, risks, and the sponsors' financial strength.
Originations and Loan Restructurings
Representing the City on deal team calls and orchestrating work done by the City Attorney's office, Finance Department, external counsel and advisors, and transaction support staff in the Community and Economic Development Department to close loans and bond issuances.
• Request for Proposals
Managing the RFP process for disposition of City-owned properties for development of affordable housing.
• Transactions
In coordination with the City Attorney's Office, preparation and processing of documents evidencing housing development loans, including loan originations or restructurings underwritten by others.
Policies and Procedures for Multifamily Underwriting/Transactions Suggesting policy solutions for situations not already addressed in the Policies and Procedures Manual for origination, asset management, and bond-related activities. • Preparing summary reports pursuant to section 33433 of the California Health and Safety Code.
Assistance in updating the City's inclusionary and linkage fee programs.
General Financial Consulting Services
Financial, economic analysis, development, and negotiation advisory services for development projects;
Real estate market analyses;
Rent stabilization analyses;
• Assistance with calculating potential public benefits for development projects; Support local, county, regional, state, and federal legislation that will expand affordable housing;
Annual preparation of property tax data identifying parcels subject to the Measure HH tax and verifying the total square footage subject to the tax; Relocation analysis consistent with the Uniform Relocation Act, the California Relocation Assistance Law, and other regulations tied to relocation; and Other services as may be requested by the City.
Term
• Initial Term: 3 Years
• Extension: City Manager can extend for up to one additional year.