CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 7, 2026
To: Honorable Mayor and City Council Members
From: Cassandra Searcy
Department: Community Development & Housing
Subject: Approval of Amendment No. 1 to the Professional Services Agreement Between the City of San Bernardino and
Keyser Marston Associates Inc. (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement between the City of San Bernardino and Keyser Marston Associates Inc., to extend the term of agreement to March 31, 2027 and increase the total compensation amount by $50,000, bringing the total not to exceed compensation amount to $150,000.
2. Authorize the City Manager, or designee, to execute Amendment No. 1 to the Professional Services Agreement between the City of San Bernardino and Keyser Marston Associates Inc.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The City currently utilizes Keyser Marston Associates, Inc. (KMA) to provide financial advisory and real estate consulting services in support of the City’s affordable housing activities. KMA assists the City with evaluating affordable housing projects, analyzing financing structures and project feasibility, and determining appropriate levels of City financial participation.
Staff recommends approval of Amendment No. 1 to the Professional Services Agreement with KMA to extend the agreement for an additional six months through March 31, 2027, and increase the total not-to-exceed compensation amount by $50,000, from $100,000.00 to $150,000.00. The six-month extension will provide continuity of financial advisory services while the City completes a competitive procurement process for longer-term affordable housing financial and real estate consulting services. During the extension period, staff intends to release a Request for Proposals (RFP) to evaluate qualified firms and select a consultant for services beyond March 31, 2027.
Background
In December 2023, the City released a Request for Proposals (RFP) for affordable housing, real estate development advisory, and Community Housing Development consulting services, for which Keyser Marston Associates, Inc. (KMA) was the sole respondent. The City evaluated available alternatives and determined that, while other firms provide similar services, KMA offered a strong combination of technical expertise, institutional knowledge, and service continuity. KMA’s longstanding familiarity with the City’s development history and housing and homelessness initiatives further positioned the firm to support the City’s ongoing affordable housing activities effectively.
On October 1, 2025, the City entered a one-year Professional one-year Professional Services Agreement with Keyser Marston Associates Inc. (KMA) for Affordable Housing Transactions Services, totaling $100,000, to support the Housing and Homeless Division in analyzing viable affordable housing projects by performing Pro forma analysis of new development project and, multi-family affordable housing projects funded with, but not limited to, HOME, Neighborhood Stabilization Program, Mortgage Revenue Bonds, Mental Health Services Act Funds, Low-Income Housing Tax Credits, and New Market Tax Credits.
Discussion
The City of San Bernardino (City) is an entitlement jurisdiction that annually receives federal and state housing and community development funding, including Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP), Permanent Local Housing Allocation (PLHA), Low- and Moderate-Income Housing Asset Funds (Low-Mod), and other funding administered by the U.S. Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD). These resources support the development and preservation of affordable housing, suitable living environments, and expanded economic opportunities for low- and moderate-income residents.
To support the effective use of funding and advance the City’s affordable housing activities, the City entered into a Professional Services Agreement with Keyser Marston Associates, Inc. (KMA) on October 1, 2025. Under the Agreement, KMA provides affordable housing and real estate consulting services, including pro forma analysis of multifamily affordable housing projects, recommendations regarding the appropriate level of City financial participation, analysis of financing structures and project risks, transactional financial advisory services, and assistance in structuring financing to leverage City funding sources. KMA also assists staff with evaluating development proposals and provides other housing finance and real estate consulting services, as requested. These activities are consistent with the Scope of Services in the Master Agreement.
The existing Professional Services Agreement with KMA has a total not-to-exceed amount of $100,000.00.The City utilized a sole-source procurement process for the original agreement based on KMA’s specialized expertise, institutional knowledge, and familiarity with the City’s affordable housing and community development programs.
As the City continues to advance multiple affordable housing projects and evaluate the use of federal, state, and local housing resources, continued financial advisory support.
Amendment No. 1 will provide an additional six months of services through March 31, 2027, and increase the total not-to-exceed compensation by $50,000.00, from $100,000.00 to $150,000.00, so that the city may execute a competitive procurement process for services beyond March 31,2027.
Strategic Goals and Priorities
The request for the approval of Amendment No.1 to the Professional Services Agreement with Keyser Marston Associates Inc. aligns with Strategic Target No. 3:
Improved Quality of Life, by reducing the burden of homelessness and advancing the City’s commitment to collaborative solutions and housing stability.
Fiscal Impact
Amendment No. 1 will result in an additional cost of $50,000.00, increasing the total not-to-exceed compensation to $150,000.00, funded as follows:
General Fund: $10,000.00
HOME Investment Partnerships Program (HOME): $22,500.00 Low and Moderate-Income Housing Asset (Low-Mod): $17,500.00 Total Amendment No. 1 increase amount: $50,000.00
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 to the Professional Services Agreement between the City of San Bernardino and Keyser Marston Associates Inc., to extend the term of agreement to March 31, 2027 and increasing the total compensation by $50,000, bringing the total not to exceed compensation amount to $150,000.
2. Authorize the City Manager, or designee, to execute Amendment No. 1 to the Professional Services Agreement between the City of San Bernardino and Keyser Marston Associates Inc.
Attachments
1. KMA Professional Services Agreement (2025 - 2026)
2. KMA Professional Services Agreement (2025 – 2026) Amendment No.1
Ward:
All Wards
Synopsis of Previous Council Actions:
CC
Eric Levitt, City Manager