December 16, 2025
Community Development
DATE: December 16, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Subject:
Contract Amendment No. 3 with Keyser Marston
Associates (KMA) for Financial Analysis and Advice on
Real Property
FINANCIAL IMPACT: There is no fiscal impact on the General Fund. The proposed $250,000 expenditure is included within the
approved Fiscal Year 2025-2026 Community
Development/Planning/Professional Services budget and
will be funded using various sources including applicant fees (Account String: 12031063-400201).
PREVIOUS COUNCIL
ACTION:
June 1, 2021
STATEMENT OF THE
ISSUE:
Community Development staff is requesting City Council
approval of Amendment No. 3. The current contract with
Keyser Marston Associates (KMA) will provide market,
financial, and feasibility analyses to support the City's commercial, residential, and redevelopment efforts.
KMA's services will be delivered on an as-needed basis, encompassing both technical and financial reviews, as
well as strategic advisory support for real property
negotiations and development projects. The proposed
amendment would increase the contract amount by
$250,000, for a total not to exceed amount of $285,000, for a term ending December 31, 2028.
AGENDA
REPORT
December 16, 2025
RECOMMENDED ACTION:
APPROVE a third contract amendment with Keyser
Marston Associates (KMA) for $250,000, not to exceed a
total amount of $285,000, through December 31, 2028, to assist the City in preparing market, financial, and
feasibility analyses to support the City's commercial,
residential, and redevelopment efforts – Community
Development (Lina Velasco 510-620-6706).
DISCUSSION:
As a subcontractor to the Metropolitan Transportation Commission (MTC), Keyser Marston Associates (KMA) collaborated with the City to complete an Affordable Housing Nexus Study, which quantified the relationship between new market-rate residential and non-residential development and the resulting demand for affordable housing within the City. Following that effort, in January 2016, the City Council approved a contract with KMA to prepare a Financial Feasibility Study, evaluating how potential changes to the City’s housing programs could impact the viability of future residential development. In February 2018, at the direction of the City Council, KMA updated this analysis to reflect the evolving market conditions.
Subsequent community meetings and public hearings before the Planning Commission and City Council culminated in the adoption of revisions to the City’s Inclusionary Housing Program and the addition of a Non-residential Linkage Fee Program in 2020.
Since adoption, City staff have received numerous inquiries from housing developers regarding administration and compliance with these programs, including:
Affordable Housing Plan submittal requirements;
Determination of affordable housing prices and household income; Asset limitations for inclusionary unit occupants;
Criteria for off-site inclusionary units or dedicated property; Eligibility and occupancy requirements;
Procedures for changes in household income or size;
Compliance monitoring; and
Conflict-of-interest limitations for inclusionary unit eligibility.
Additionally, staff is seeking authorization for additional funding for KMA to assist with reviewing initial project submittals under these programs, providing technical and financial expertise to ensure compliance with City requirements.
KMA will provide market, financial, and feasibility analyses, as well as advisory services, to support the City’s housing, commercial, and redevelopment initiatives. Services will be performed on an as-needed basis. They will include both technical and financial reviews, as well as strategic advisory support related to real property negotiations and development projects.
Under the amended scope, KMA will:
December 16, 2025
Prepare guidelines to clarify requirements for affordable housing plans, income and price determinations, eligibility, occupancy, and compliance monitoring. Assist staff in reviewing initial developer submittals under the Inclusionary and Linkage Fee programs.
Continue providing market, financial, and feasibility analyses for residential, commercial, and redevelopment projects.
Support the City through pro forma reviews, economic impact analyses, and real estate advisory services.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract and Amendments 1 - 2
Attachment 2 – Amendment No. 3