Via Electronic Mail
April 15, 2025
Ethan Bindernagel, City Manager
Erick Cheung, Chief Financial Officer
Troy Fujimoto, City Planner
CITY OF PLEASANT HILL
100 Gregory Lane
Pleasant Hill, CA 94523
PLEASANT HILL HOUSING SUCCESSOR SERVICES FY 2026-27 THROUGH 2028-29 Dear Messrs. Bindernagel, Cheung, and Fujimoto:
RSG is pleased to submit a proposed work program for the next three fiscal years to provide the City of Pleasant Hill continued services to administer certain affordable housing projects and programs as Housing Successor to the former Pleasant Hill Redevelopment Agency. RSG has worked with Pleasant Hill since 2015 and our current three-year contract expires on June 30, 2026. Housing Services include compliance monitoring of existing affordable properties, assistance managing affordable housing projects proposed by Habitat for Humanity (“Habitat”) and Satellite Affordable Housing Associates (“SAHA”), and general advisory services as needed.
The scope of work and fee proposal are as follows:
1. SAHA Choice in Aging: The City executed a $736,000 Predevelopment Loan in March 2022 with Satellite Affordable Housing Associates (SAHA). The City has committed an additional $2 million Construction Loan. RSG will coordinate with City staff and the City Attorney to draft construction loan documents after SAHA has secured other gap financing. As of May 2025, this was estimated to occur in Winter 2025, however is dependent on the award of other financing sources such as tax credits. This timeline may shift if SAHA applies for different rounds of funding.
2. Habitat 85 Woodsworth Lane: Manage the implementation of a Disposition and Development Agreement. According to the latest extension granted in March 2025, Habitat has a December 31, 2025 deadline to obtain project entitlements; June 30, 2026 deadline to obtain other funding commitments; and July 31, 2026 deadline to close escrow. An additional extension is pending Habitat’s input. RSG will track Schedule of Performance milestones to help all parties coordinate to close escrow. If Habitat requests further extensions, RSG will prepare necessary City Council agenda items.
3. Habitat 250 Cleaveland Road: This property closed escrow in 2023. If needed, RSG will coordinate with City staff and the City Attorney to amend a Loan Agreement and Affordability Covenant to address potential floodplain constraints.
Ethan Bindernagel, et. al.
CITY OF PLEASANT HILL
April 15, 2026
2 4. Ongoing annual reporting services of the City as housing successor to the former redevelopment agency, including the annual housing expenditure report due April 1 annually.
5. Preparation of staff reports and resolutions and attendance at City Council meetings as required for the above activities.
6. Compliance monitoring of 10 rental properties and 12 homeownership units. Tasks include reviewing agreements for new projects, maintaining a project database, tenant file management, analyzing rent rolls and other tenant/homeowner data, preparing written reports, and coordinating with property managers/owners on compliance issues as needed.
7. Other tasks as may be assigned by City staff.
FEE PROPOSAL, BILLING RATES, AND INVOICES:
Based on the forgoing and assumed implementation schedule, RSG is proposing a 3-year budget as shown below. Housing Successor services may be paid from the Low and Moderate Income Housing Asset Fund administrative allowance. 2026-27 2027-28 2028-29 3 Year Total
$45,000 $45,000 $45,000 $135,000
Services will be charged on a time and materials basis based on the fee schedule below:
Fee Schedule
RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys), parking, standard telephone/fax expenses, general postage, or incidental copies. However, we do charge for messenger services, overnight shipping/express mail costs, and teleconferencing services. We also charge for copies of reports, documents, notices, and Principal $305
Director $295
Senior Associate $250
Associate $205
Senior Analyst $185
Analyst $170
Research Assistant $145
Technician $120
Clerical $100
Reimbursable Expenses Cost plus 10%
Ethan Bindernagel, et. al.
CITY OF PLEASANT HILL
April 15, 2026
3 support material in excess of five copies. These costs are charged back at the actual expense plus a 10% surcharge.
RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance.
Invoices identify tasks completed to date, hours expended, and the hourly rate.
If the work programs meet your needs, please include the attachments in a contract form of your choice and we can proceed with formal approval and execution per your requirements.
Sincerely,
James C. Simon, Principal