TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
SUBJECT: See Below DATE: April 20, 2026
Approved
Date:
4/28/26
COUNCIL DISTRICT: Citywide
SUBJECT: First Amendment to the Master Consultant Agreement with Kitchell/CEM, Inc. for Consulting Services
RECOMMENDATION
Adopt a resolution authorizing the Housing Director, or his designee, to negotiate and execute a First Amendment to the Master Consultant Agreement with Kitchell/CEM, Inc., to increase the compensation by $700,000, for a total maximum compensation not to exceed $1,000,000, for owner's representative and construction management services for the City's housing development projects, for the term ending June 30, 2027.
SUMMARY AND OUTCOME
The proposed contract amendment will allow Kitchell/CEM, Inc. to continue supporting the City's portfolio of housing development projects. The increase in maximum compensation reflects the expanded scope of work required across multiple concurrent projects. Kitchell/CEM, Inc. has the technical capacity and subject-matter expertise to effectively complete the work requested.
BACKGROUND
The City’s Housing Department oversees a portfolio of below market rate housing development projects that require specialized construction management and technical oversight expertise. To meet these needs, the Housing Department has engaged Kitchell/CEM, Inc. and its subconsultants on an as-needed basis to provide facility condition assessments, owner's representative services, and construction management oversight.
COUNCIL AGENDA: 5/12/26
FILE: 26-549
ITEM: 2.9
HONORABLE MAYOR AND CITY COUNCIL
April 20, 2026
Subject: First Amendment to the Master Consultant Agreement with Kitchell/CEM, Inc. for Consulting Services
ANALYSIS
The Housing Department's growing housing portfolio has exceeded the capacity of the original contract. The proposed amendment will increase the maximum contract value by $700,000, from $300,000 to $1,000,000, to support additional projects through the contract term ending June 30, 2027. Kitchell/CEM, Inc. was selected through a competitive procurement process and has demonstrated the ability to deliver the required services. Procuring a new consultant would require a new competitive selection process and result in a loss of continuity, making the contract increase the most efficient and cost-effective approach.
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
The $700,000 contract increase will be funded through the Housing Department's existing Housing Predevelopment Activity appropriation in Fund 346. Costs will be incurred on an as-needed basis through individual service orders, with no additional maintenance costs, matching grant requirements, or associated revenues. The contract runs through June 30, 2027.
COORDINATION
This memorandum was coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the May 12, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
April 20, 2026
Subject: First Amendment to the Master Consultant Agreement with Kitchell/CEM, Inc. for Consulting Services
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Erik L. Soliván
Director, Housing Department
For questions, please contact Banu San, Deputy Director, Housing Department, at [email protected].