AHS Exhibit B — Lancaster City Council, April 8, 2025

AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT
This Amendment (“Amendment No. 1”) is hereby entered into effective August 8, 2023 by and between the City of Lancaster, a Municipal Corporation, in the State of California, and Affordable Housing Solutions & Development of Southern California, LLC (CONTRACTOR) with respect to Exhibit “B” of the Agreement for Services between the parties dated February 2, 2021 (“Agreement”).

The Parties agree as follows:

1. The term of the Agreement is extended to and including August 8, 2026.

2. Exhibit B to the Agreement is hereby deleted in its entirety and replaced with “Term, Payment and Time for Commencement and Completion Clause Update,” attached hereto as Exhibit “A”.

3. All other terms and provisions of the Agreement and subsequent amendments are hereby reaffirmed.

CITY OF LANCASTER CONTRACTOR
Affordable Housing Solutions
____________________________ __________________________ Jason Caudle, City Manager Timothy Sales, Principal
ATTEST:
____________________________
Andrea Alexander, City Clerk
____________________________
City Attorney
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 X Risk Management Approval
Kathleen Stenback, Acting City Clerk

EXHIBIT “A”

EXHIBIT A - TERM, PAYMENT AND TIME FOR COMMENCEMENT AND

COMPLETION CLAUSE UPDATE
Term
This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the CONTRACTOR. This Amendment shall continue in full force and effect for a period of three (3) additional years from the effective date of the Agreement (the “Term”), unless the Agreement is sooner terminated in accordance with the Terms and Conditions in the Original Agreement dated February 2, 2021; provided, however, that the City and the CONTRACTOR may mutually agree in writing to extend the Term of this Agreement for one (1) additional two-year period.

Payment
The City of Lancaster shall reimburse the CONTRACTOR for the performance of the work, in an amount not to exceed $125,000.00 per year, with a total of $375,000.00 for the length of the agreement.

Time for Commencement and Completion
CONTRACTOR shall commence performance of the work no later than three (3) calendar days following issuance of Notice to Proceed.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

EXHIBIT A

SCOPE OF SERVICES

AND RATES SCHEDULE
Consultant will provide professional affordable housing finance and development advisory services on an as-needed basis in the potential areas of engagement listed below. Services will be billed on a time & materials (T&M) basis against this contract authorization. Scope of Services is illustrative and is to be prioritized based on Client needs and authorization. Consultant will manage work plan approach to each item in coordination with Client.

1. Manage RFP (Request for Proposal) processes and assist in selection of qualified real estate development firms or development-related contractors.
oHNR-1: On-going; services to be specifically covered by this contract include post-DDA required developer implementation support.

OHNR-3: Work with selected development team to negotiate ENA and DDA(s); finalize planning concepts for site; create federal, state, and local funding subsidy program strategy and schedule; identify other partners and stakeholder groups for participation in infrastructure improvements and community-based programs for the site and the surrounding neighborhoods, and other post- DDA required developer implementation support as necessary.

OScattered Site RFP: solicit proposals from potential developers seeking to develop smaller scale affordable home ownership units on sites throughout the City and negotiate DDA(s).

2. Develop scattered site strategy for marketing and development of LHA & City-owned properties, including:
oHNR-5 & HNR-7
oOther HNR scattered sites comprised located primarily in central and northeastern Lancaster OHerald Tract sites
OOther sites owned by City / Successor Agency

3. Conduct market, product & financial feasibility investigations, including outreach to prospective developers, management of RFP process in support of developer selection and negotiation of DDA(s), in support of sourcing alternative higher density products for HNR-6 & HNR-9.

4. Provide affordable housing finance and development advisory services in support of LHA- proposed affordable housing developments or affordable housing developments submitted by third-parties seeking financial or other assistance from City.

5. Provide assistance with motel conversions and other permanent supportive housing projects, including working with selected developers on potential funding opportunities for both acquisition/rehab and supportive services.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

6. Keep City staff apprised of local, state and HUD regulatory changes, as well as new resource opportunities.

7. Assist with monitoring and compliance with state and HUD programs and regulations (I.e., PLHA 5- Year Plan, CalHome, Con Plan, etc.).

8. Prepare County, state and private funding applications, strategic plans, etc. as necessary.

9. Support and coordinate LHA site marketing and development efforts with on-going design and implementation of the proposed City Microgrid and Spot Muni efforts.

10. Provide other owners representative services in support of the needs of LHA efforts and site development.

Team MemberHourly Rates
Timothy Sales $225
Sue Sturmer $225
Allan D. Kotin $225
Faith Backus $185
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

STAFF REPORT
City of Lancaster
CC 7
8/08/2023
JC
Date:August 8, 2023
To: Mayor Parris and City Council Members
From:Larissa De La Cruz, Director – Community Development Chenin Dow, Assistant Director – Housing & Economic Development Christopher Aune, Manager – Housing
Subject:Amendment to Extend Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC for an Additional Three Years
Recommendations:

1. Approve the Amendment to the Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC (AHS) for an additional three (3) years.

2. Authorize the City Manager, or his designee, to finalize and execute all documents related to the Amendment.

Fiscal Impact:

Up to $125,000.00 annually for the three-year life of the contract, for a total not to exceed $375,000.00 in Housing funds.

Background:

In February 2021, the City entered into an agreement with consultant Affordable Housing Solutions (AHS) following a Request for Proposals (RFP) process to procure technical assistance services related to affordable housing projects, programs, and funding sources.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 1 3
3 7
Examples of services provides by AHS include assistance with drafting Requests for Proposals consistent with the requirements of various funding sources, providing technical services and assistance to draft and carry out Disposition & Development Agreements, monitoring emerging funding sources and Notice of Funding Availability (NOFA) schedules, monitoring and supporting the Zero Net Energy (ZNE) alliance project, and providing expert advice to support miscellaneous programs and projects.

Due to their extensive expertise, thorough familiarity with the City’s existing programs, and current status assisting with the execution of several pending long-term projects, staff proposes to extend the existing Professional Services Agreement for a period of three (3) years.

CD/CA/sm
Attachments:

Exhibit A – Amendment No.1
Exhibit B – Original Professional Services Agreement
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?

ADDL SUBRINSR

LTR INSD WVD

DATE (MM/DD/YYYY)
CONTACTPRODUCER NAME:

FAXPHONE
(A/C, No):(A/C, No, Ext):

E-MAIL
ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITSPOLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY)

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Addit ional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $

DAMAGE TO RENTED
CLAIMS-MADE OCCUR $PREMISES (Ea occurrence)
MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $
PRO-POLICY LOC PRODUCTS - COMP/OP AGG $JECT
$OTHER:

COMBINED SINGLE LIMIT $(Ea accident)
ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $(Per accident)AUTOS ONLY AUTOS ONLY $
EACH OCCURRENCE $OCCUR
CLAIMS-MADE AGGREGATE $
$DED RETENTION $

PER OTH-

STATUTE ER
E.L. EACH ACCIDENT $
E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY
Y/N
N/A
(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

The ACORD name and logo are registered marks of ACORDACORD 25 (2016/03)

CERTIFICATE OF LIABILITY INSURANCE
Policy Number:

TIMOTHY SALES
275 ANITA DR.

PASADENA, CA 91105
Sandra Macdonald Agency
17141 Ventura Blvd., #202
Encino, CA 91316
(818)906-1042
Date Entered:
(818)906-0210
AFFORDABLE HOUSING SOLUTIONS & DEVELOPMENT OF S. CA LLC PSL0339610110 02/21/2023
A
PSL0339610110 02/21/2023 02/21/2024
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
5,000
A PSL0339610110 02/21/2023 02/21/2024
1,000,000

AFFORDABLE HOUSING FINANCIAL & DEVELOPMENT ADVISOR
“REQUEST FOR PROPOSALS - RFP”

ADDITIONAL COVERED PARTIES, BUT ONLY INSOFAR AS THE OPERATIONS UNDER THIS CONTRACT ARE CONCERNED

CITY OF LANCASTER
44933 FERN AVE

CERTIFICATE HOLDER AS ADDITIONAL INSURED
30 DAY NOTICE OF CANCELLATION AND 10 DAY FOR NON-PAYMENT OF PREMIUM 7/13/2023

THE CITY OF LANCASTER, ITS ELECTED OFFICIALS, OFFICERS, EMPLOYEES AND VOLUNTEERS ARE INCLUDED AS LANCASTER, CA 93834
1,000
B PREOFESSIONAL LIABILITY PSL0339610110 02/21/2023 02/21/2024 $1,000,000 $2,500

EACH CLAIM/OCCUR

DEDUCTIBLE

LLOYDS OF LONDON

ADDITIONAL INSURED ENDORSEMENT

ATTACHING TO
POLICY NUMBER:

PSL0339610110
THE INSURED: Affordable Housing Solutions and Development of Southern California LLC
WITH EFFECT FROM: 01 Aug 2023
It is understood and agreed that the following amendments are made to this Policy:

1. The following DEFINITION is added:
"Additional insured" means

THE LANCASTER HOUSING AUTHORITY C/O CITY OF LANCASTER
(Effective From: 21 Feb 2020)
44933 FERN AVE
LANCASTER, CA 93834
US

CITY OF PASADENA
100 GARFIELD AVENUE
PASADENA, CA 91101
US

2. Where an “Additional insureds” CONDITION exists in this Policy, additional insureds are included as a third party.

3. Where an “Additional insureds” CONDITION does not exist in this Policy, the following CONDITION is added:

Additional insureds
Additional insureds are indemnified under this Policy as if they were you, but only in respect of sums which they become legally obliged to pay (including liability for claimants' costs and expenses) as a result of any claim arising solely out of an act, error or omission committed by you or on your behalf, provided that had the claim been made against you, then you would be entitled to indemnity under this Policy.

Before we indemnify any additional insured, they must prove to us that the claim arose solely out of an act, error or omission committed by you or on your behalf and fully comply with CONDITION 1 as if they were you.

When this CONDITION applies, it will be primary and non- contributory to the additional insured's own insurance but only if you and the additional insured have entered into a contract that contains a provision requiring this.

Whilst additional insureds are indemnified under this Policy, any claim made by additional insureds against you will be treated by us as if they were a third party and not as a named insured.

4. The following CONDITION is added:

Notice of cancellation to additional insureds
If we give you notice of cancellation in accordance with the “Cancellation” CONDITION, we will endeavour to provide the same notice of cancellation to additional insureds; however, not doing so will not place any additional liability upon us.

SUBJECT OTHERWISE TO THE TERMS AND CONDITIONS OF THE
POLICY
Authorised Signatory
CFC Underwriting Ltd
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

275 Anita Drive | Pasadena, California | 91105-2168 13 July 2023 Risk Management City of Lancaster 44933 Fern Avenue Lancaster, California 93534 RE: Waiver of Workers Compensation Insurance Dear Sir or Madame: I, Timothy Sales, am sole proprietary of Affordable Housing Solutions & Development of Southern California, LLC (“AHS”) and swear under penalty of perjury that we are exempt from the State of California requirement to carry Worker’s Compensation insurance because we do not have any employees. We look forward to working with you! Please to contact me directly at [email protected] or 323-578-0550 if further information is required. Sincerely, Timothy Sales DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

Lancaster City CouncilApril 8, 2025

Lancaster City Council
April 8, 2025