TO:Andrew P. Powers, City Manager
FROM:Tracy M. Noonan, City Attorney
DATE:August 25, 2026
SUBJECT: Legal Services for Real Estate and Affordable Housing RECOMMENDATION:
1. Approve First Amendment to the Legal Services Agreement, Contract No. 13089-2022 with Kane, Ballmer and Berkman (Los Angeles, CA) in the amount of $50,000 for a revised not-to-exceed amount of $150,000.
2. Approve budget appropriation and authorize expenditure in FY 2026-27 in amount of $50,000 from A/C #001-0000-311-1000 (General Fund - Fund Balance) to A/C #001-1610-611-5199 (City Attorney - Legal) for legal services relating to real estate transactions and affordable housing regarding 384 N. Erbes Road (Hillcrest Property).
3. Find that this action does not constitute a project as identified in the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$50,000 Increase to Adopted FY 2026-27 General Fund Budget. $50,000 increase to the Adopted FY 2026-27 General Fund Budget for legal services related to real estate transactions for the Hillcrest Property affordable housing project.
BACKGROUND:
The City acquired the Hillcrest Property at 384 N. Erbes Road for the purpose of making the site available for the development of affordable housing. The City entered into a Disposition and Development Agreement (DDA) with People’s Self- Help Housing (and others) for the construction of 78 affordable, for sale housing units on the site (Project). The law firm Kane, Balmer and Berkman assisted the City in the negotiation and drafting of the DDA. An update on the Project was provided at the April 14, 2026, City Council meeting, during which City Council
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9 directed the City Manager to negotiate amendments to the DDA to accommodate requested changes to the Project.
DISCUSSION/ANALYSIS:
As discussed at the April 14, 2026, City Council meeting, People’s Self-Help Housing requested changes to the Project and the DDA. Kane, Ballmer and Berkman to provide legal services related to the DDA and the potential amendments thereto. In addition, staff anticipates there will be a need for additional legal services as the project progresses, including, but not limited to, final disposition of the property and various other legal services as they arise during Project construction through Project completion.
Kane, Ballmer and Berkman has extensive experience in real estate transactions involving affordable housing. Amending the legal services agreement with Kane, Ballmer and Berkman will assist the City with the transfer and ultimate development of the Hillcrest Property. Staff recommends approval of the First Amendment to the Legal Services Agreement with Kane, Ballmer and Berkman (Attachment #1) in the amount of $50,000, increasing the not-to-exceed amount to $150,000.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made (Attachment #2).
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9 COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Noel Doran, Assistant City Attorney
Attachments:
Attachment #1 – First Amendment to Legal Services Agreement Attachment #2 – Levine Act Form
CAO:650-90\mlp\Legal Files\Hillcrest Christian School Site\Staff Report