May 16, 2023
Community Development
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
SUBJECT:
Contract Amendment No. 1 with David Paul Rosen and
Associates
FINANCIAL IMPACT: The proposed contract will not have an impact on the General Fund as the cost associated with preparing
financial and economic analyses related to real property negotiations will be charged to developers to facilitate and fast track applicant proforma review and evaluation.
For City-proposed projects that require proforma review or preparation, Planning professional services funds will be used as budgeted in account string 15061219-
400201.
PREVIOUS COUNCIL
ACTION:
November 1, 2022 – Original On-call contract with DRA
was approved.
STATEMENT OF THE
ISSUE:
City staff is requesting authorization to execute an
amendment no. 1 to the contract with David Paul Rosen
& Associates for an amount not to exceed $150,000 to
continue to support the City in financial and economic
analyses related to real property negotiations.
RECOMMENDED ACTION:
APPROVE amendment No. 1 to the contract with David
Paul Rosen & Associates to increase the contract limit by $150,000, for a total contract amount not to exceed
$200,000, to continue to support the City in financial and economic analyses related to real property negotiations and project evaluation, with a term extending through
October 31, 2024 – Community Development
Department (Lina Velasco/Jesus M. Morales 510-620-
6706).
AGENDA
REPORT
May 16, 2023
DISCUSSION:
On November 1, 2022, the City Council approved an on-call contract with three financial consulting firms, including David Paul Rosen & Associates (DRA). The original contract was $50,000 and additional funds are needed to provide capacity to take on additional projects, and to complete on-going projects. Specifically, DRA is currently working on the review of the proformas for the Metrowalk Phase II project and 12th and Macdonald, and assisting the City in the review of the budget/profroma for a potential partnership grant for a Project Homekey application. Additional funds are needed to complete the evaluation of the above projects. City staff is also requesting additional contract capacity for future projects that may include affordable units and related funding sources.
On September 8, 2022, the Community Development Department solicited a Request for Quotes (RFQ) for On-Call Financial and Economic Analyses Services. The RFQ was sent to three vendors via email as an informal solicitation. The RFQ responses were due on September 16, 2022. There were three respondents to the RFQ: Land Econ Group (LEG), David Paul Rosen & Associates (DRA), and CSG Advisors (CSG).
The City Council approved on-call contracts in an amount not-to-exceed $50,000 over a one-year term, from November 1, 2022 through October 31, 2023, with an option to extend the contracts for one year.
On-call financial services contracts assist the City in completing timely review of complex financial development proformas. In addition, having on-call contracts will save City staff time needed to bid work on a project-by-project basis. This is critical in completing timely real property negotiations. The proposed amendment No. 1 would add an additional $150,000 to the contract, for a total not to exceed amount of $200,000, for a term ending October 31, 2024.
DOCUMENTS ATTACHED:
Attachment 1 – Contract Amendment No. 1
Attachment 2 – Original Contract