City of Richmond
Sole Source Justification
THIS FORM MUST BE COMPLETED AND APPROVED PRIOR TO ANY PURCHASE Contact the Purchasing Division and discuss your rationale before completing this form. If Purchasing can help you make this a competitive purchase, then this form will not be required.
Attach this completed/approved form to requisitions when competitive quotes/bids/proposals are not solicited. (Required for requisitions > $3,000)
Requested Sole Source Supplier:
Company Name: Structure Development Advisors Contact Name: Mike Andrews Address: 2826 NE Hamblet St
City: Portland State: OR Zip Code: 97212
Phone Number ( 503) 249-5658 E-Mail [email protected] Duration of Contract: March 25, 2025 - June 30, 2028
Estimated Cost: $ 600,000 Funding Source (Account String) 42141191-400217 Is the product/service IT related? Yes No X If Yes, please attach the approved IT Authorization Form For Product: Is the recommended company the manufacturer of the product? Yes No For Product: Does the manufacturer sell the items) through distributors? Yes_ No Description of Product or Service:
Describe the full scope of work or service contemplated including installation if required; items should include brand model and part number if applicable; (if additional space is needed, include them in a separate page) RHA is seeking to continue using the consulting services from Structure Development Advisors for public housing repositioning and development to support the successful completion of its remaining repositioning transactions. These transactions include excess land at Hacienda, excess land at Nevin Plaza (Nevin II project), Richmond Village and Nystrom Village. HUD is the original contract holder of this vendor and has canceled the contract effective 3/7/2025.
Sole Source Rationale: PLEASE ANSWER ALL THE FOLLOWING QUESTIONS: Explain why the recommended company is the only company that can meet the requirement. Address the following: Are there any other companies who can do this job? What condition (e.g. technological superiority, or performance risks, etc.) exists so that the recommended company has a significant advantage over any other company who can do this job? It is important to sufficiently address the key reason for awarding an order/contract without soliciting competitive bids. The rational must be clear and convincing, avoiding generalities and unsupported conclusions.
Structure Development Advisors has extensive experience working with RHA on previous repositioning transactions. Their proven track record includes successfully assisting with the repositioning of Triangle Court, Friendship Manor, Nevin Plaza, Hacienda, and RHA's administrative building. Additionally, they played a key role in facilitating the transfer of RHA's Housing Choice Voucher Program to the Housing Authority of Contra Costa, demonstrating their deep understanding of RHA's needs and repositioning goals. Given their in-depth knowledge of RHA's operations and ongoing projects, engaging a new consulting agency could result in significant time delays. (if additional space is needed, include them in a separate page)
Complete the following checklist
A specific contractor is the only source of the required item because (check all that apply):
The required items are proprietary to the Contractor, and contractor solely transacts (sells) direct to the customer. (There are no dealers or distributors for contractor).
The required items are proprietary to the Contractor, and contractor does not sell direct to the customer. Contractor solely distributes the item or service through only one dealer or distributor in the United States. (There are no dealers or distributors for contractor).
Note: If item or service is available from more than one source, the item or service may be treated as proprietary, but must be competitively solicited from multiple (two or more) sources.
A specific item is needed:
To be compatible or interchangeable with existing hardware As spare or replacement hardware For the repair or modification of existing hardware Federal or state grant names vendor as condition of funding. (Attach copy of grant that names vendor)
There is a substantial risk in contracting with any other contractor, (e.g., only one contractor has been successful to date in implementing a difficult manufacturing process or the services sought). In a brief explanation, provide supporting evidence of why other contractors are considered to be unable to overcome the substantial risk.
RHA is currently operating under a PHARS agreement with HUD and is already significantly behind schedule. Selecting a new contractor at this stage could further delay the repositioning process, increasing the risk of non-compliance with the agreement. Additionally, if the current negotiations for Nystrom Village are unsuccessful, HUD is prepared to take over RHA, which could result in a loss of Board of Commissioners control and further complicate the repositioning efforts. Given the urgency of these transactions, any disruption in consulting services could create additional setbacks, making it even more challenging for RHA to meet its obligations and timelines.
Continuation of prior Work - Additional item, service or work required, but not known to have been needed when the original order was placed with vendor, and it is not feasible or practicable to contract separately for the additional need. Provide brief explanation and supporting evidence.
Currently, HUD holds the contract for the vendor, which they have canceled effective 3/7/2025. To ensure continuity of work and prevent further delays in the repositioning process, it is important for RHA to secure a direct contract with the Structure Development Advisors.
This will allow ongoing projects to move forward without disruption and minimize the risks associated with a lapse in consulting services.
(if additional space is needed, include them in a separate page) 2 | Page
I acknowledge the City's requirements for soliciting competitive quotes/bids for purchases over $3,000.00 and the criteria for justification for Sole Source purchases. I have gathered the required information, have made a concerted effort to review comparable/equal equipment/services (e.g., market research), and further affirm that there is no conflict of interest involved in the selection made.
Department: Richmond Housing Authority
Requester Name and Title: Gregory Palomino Admin Assistant Note: Requester must be able to defend this justification.
Date: 3/7/2025
Department Director (Print) Antoinette Tene Phone: x1361 Submit completed form to the Purchasing Division (Prior to submission to City Manager) Finance Director:
APPROVED: DATE: 31712025
NOT APPROVED: COMMENTS:
City Manager City Clerk Attesting to Council Approval
(Under $10,000.00) (Over $10,000.00) (Copy of Minutes may be substituted) Note: Richmond Municipal Code Section 2.52.326 Sole Source Procurement requires final approval by the City Manager and/or City Council. Sole Source must be approved by Finance Director, PRIOR to Council Approval.
PROCEDURE
Sole Source purchase/service are exceptions to the normal bidding process and require a detailed justification. In processing Sole Source requests for supplies, services and/or equipment, the Purchasing Division adheres to and is governed by the principles set forth in City of Richmond Municipal Code Section 2.52.326 Sole Source Procurement.
If you are requesting a particular vendor, brand or product, you must make this fact clear on your Sole Source form.
Your request will then be restrictive and non-competitive, and will fall into a sole source category. If the sole source justification is approved, the requisition can be expedited without the normal bidding requirements.
Such a request should not be made unless you are confident that your request is reasonable and appropriately justified to meet the City's requirements and withstand any possible audit. The City's requirements and the format for submitting such requests are contained herein. Sole Source form must be signed by authorized department representative(s). The certification will remain on file for audit purposes.
The following factors DO NOT apply to sole source requests and should not be included in your sole source justification. They will not be considered and only tend to confuse the evaluation process.
1. Personal preference for product or vendor.
2. Cost, vendor performance, and local service (these are generally considered award factors in competitive bidding).
3. Features which exceed the minimum department requirements. 3 | Page
Antoinette Terrell
From: [email protected]
Sent: Friday, March 7, 2025 11:16 AM
To: radmessage
Cc: [email protected]
Subject: Changes to RAD Technical Assistance for PHAs
You don't often get email from [email protected]. Learn why this is important This email originated from outside of the City's email system. Do not open links or attachments from untrusted sources.
Good afternoon,
The Office of Recapitalization (Recap) is writing to inform your PHA that, due to unforeseen circumstances, our technical assistance contract that provides direct support to PHAs contemplating the Rental Assistance Demonstration (RAD) program was recently cancelled.
Please be assured that Recap is committed to minimizing any disruptions this may have to your operations. As an alternative solution, Recap's Transaction Managers are going to step in to provide direct support to PHAs with questions about RAD. If you would like to continue receiving on-call support/assistance, please reach out to us at [email protected].
Thank you for your continued partnership.
• The RAD Team at HUD's Office of Recapitalization
1 ¿STRUCTURE
IDEAS + PROJECTS
PROJECT UNDERSTANDING
The Richmond Housing Authority (RHA) is a public entity chartered by the City of Richmond, California in 1941 as a separate legal entity under California Law. It is funded by the Federal Government and is subject to the rules and guidelines of the United States Department of Housing and Urban Development (HUD). RHA is controlled by the State of California, Health and Safety Code Division 24, Community Development and Housing, Part 2 Housing Authorities.
The City Council of the City of Richmond acts as the Board of Commissioners for the Housing Authority with two appointed resident commissioners. The Richmond Housing Authority's purpose is to provide decent, safe, and sanitary housing for low-income individuals in the City of Richmond, California.
RHA has been operating under a Public Housing Agency Recovery and Sustainability (PHARS) Initiative agreement with the U.S. Department of Housing and Urban Development since March 2018.
This agreement has been amended from time to time. The goal of the agreement was to establish performance targets, including creating and implementing a plan to reposition all of RHA public housing property.
As of March 2025, RHA has successful repositioned Triangle Court, Friendship Manor, Nevin Plaza, Hacienda, and its administrative building. RHA also successfully transferred its Housing Choice Voucher program to the Housing Authority of Contra Costa County (HACCC). Properties remaining the RHA's public housing portfolio to be repositioned include excess land at Hacienda, excess land at Nevin Plaza, Richmond Village and Nystrom Court.
RHA seeks public housing repositioning and development consulting services to assist with successfully completing the remaining of public housing repositioning transactions.
FIRM QUALIFICATIONS AND RELEVANT HUD/RAD EXPERIENCE
Structure Development Advisors provides expert strategy, analysis, and project management support to owners and developers of projects with a community purpose. We assist clients with identifying and refining ideas that further their strategic objectives. We provide analysis of policy, program, and financial options. We help with implementation through solid project management. We know development, finance, asset management, and operations.
Creating and preserving buildings that contribute to the built environment while serving people's basic needs are core to our work. We focus on identifying projects that will have a profound positive impact on the lives of people. We communicate this vision to key stakeholders. We execute successful projects through careful analysis, stakeholder collaboration, and attention to detail.
Our expertise includes identifying opportunities, developing a concept or "story" compelling to partners and investors, identifying project sites, developing designs, and managing all project phases. We are RHA Proposal - 1- Structure Development Advisors
experienced with new construction, acquiring and rehabilitating occupied buildings, relocation, asset management, and public/private partnerships.
Leveraging the collective strengths of the public and private sectors can produce more significant benefits for the partners and the community. Identifying opportunities, understanding the partners' interests, setting clear expectations, and defining roles are key elements of a successful partnership.
Structure is a national leader in repositioning public housing. Additionally, Structure works for the U.S.
Department of Housing and Urban Development (HUD), providing technical assistance and producing tools and products for repositioning public housing. Mike Andrews, Structure's founder and principal, is a co-author of HUD's A Guide to Public Housing Repositioning.
KEY PERSONNEL
Mike Andrews
Over his 30-year career, Mike has shown an ability to identify opportunities and successfully execute complex real estate transactions that provide an essential community benefit. He can understand and communicate complex structures and ideas in simple, compelling ways to various audiences, residents, investors, general contractors, board members, neighbors, and elected representatives.
His experience includes a range of project types: urban mixed-use development, public elementary school and Head Start facilities, homeless shelters, large-scale neighborhood redevelopment projects, and preservation of existing affordable housing.
Mike is experienced with various financial tools, including Low Income Housing Tax Credits, New Market Tax Credits, tax-exempt bonds, credit enhancements, derivatives, conventional debt, public housing capital and operating subsidy, Housing Choice Vouchers, Mixed-Finance, Section 18 Disposition, and Rental Assistance Demonstration program. Some of Mike's most notable projects have resulted from public/private and public/public partnerships. The American Institute of Architects, Urban Land Institute, Affordable Housing Finance, NAHRO, Environmental Protection Agency, and U.S. Department of Urban Development have recognized his projects Kim Hasty
Kim has over 18 years of experience in different facets of the range of housing and community development programs. In 2015, she expanded her expertise into federal public housing repositioning.
She has supported the RAD Collaborative and assisted consultants working with housing authorities nationwide. In addition, her background in implementing and overseeing CBDG and HOME programs, conducting Part 58 Environmental Review Records, and training in the federal Low-Income Housing Tax Credit (LIHTC) program allows her to provide additional technical support in those areas to consultants assisting in the RAD conversion process.
Theresa Auld
Theresa has 30 years of experience in financing and developing affordable housing. Theresa structures development financing to maximize development proceeds and financial return, minimize risk, and strengthen the owner's position. She has worked as the Finance Manager for a public housing authority, closing HOPE VI, LIHTC, NMTC, RAD, and Section 18 transactions. In addition, her background includes underwriting and relationship management with Key Bank and U.S. Bank, providing debt to affordable housing, and being a finance coordinator for a nonprofit developer.
RHA Proposal - 2- Structure Development Advisors
PROJECT APPROACH
Below is a framework we will use to guide RHA thought a decision-making process to determine the optimal strategy and tools to best serve your organization and community.
1. Establish Existing Conditions and Goals:
Gathering important information about the relevant existing conditions and affirm their vision and goal (outcomes) related to addressing the housing needs in their community.
2. Analysis and Planning:
Determine the tools available to HACC for each public housing property. Calculate the economic implications for each eligible tool. Consider intangible factors along with economic results to recommend a preferred approach. Provide implementation plan for the preferred approach.
3. Implementation:
Carrying out the desired repositioning and/or recapitalization steps to achieve the desired outcome.
FEE STRUCTURE AND PRICING PROPOSAL
Structure proposes the following fees for proposed services.
Rate Schedule Hourly Rate
Mike Andrews $ 265.00
Theresa Auld $ 200.00
Kim Hasty $ 125.00
Cost of Alternatives
Direct travel costs (air and ground transportation,
meals and hotel). Direct cost plus 8%
REFERENCES
Gerard Windt
Director - Office of Public Housing
U.S. Department of Housing & Urban Development
[email protected]
415-489-6444
Vickie Ybarguen
Executive Director
RHA Proposal - 3- Structure Development Advisors
Housing Authority of Yamhill County
[email protected]
503-883-4318
Vanessa Cooper
Executive Director
Alameda Housing Authority
[email protected]
510-871-0120
Leonard J. Spicer
Executive Director
Newark Housing Authority
[email protected]
973-273-6677
Matt Knipprath
Director
Citi Community Capital
[email protected]
805-368-8713
RHA Proposal - 4 - Structure Development Advisors