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HomeMy WebLinkAboutKeyser Marston Associates, Inc. - Create For-Sale Homeownership Opportunities - Amendment No. 1 - 2026 AMENDMENT TO THE AGREEMENT BY AND BETWEEN COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AND KEYSER MARSTON ASSOCIATES,INC. (KMA) THIS FIRST AMEDNMENT TO THE AGREEMENT is entered into this of Fib , 2026 by and between the COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY OF THE COMMUNITY DEVELOPMENT, a municipal corporation ("CDC- HA"), and KEYSER MARSTON ASSOCIATES, INC. (KMA), a California corporation ("CONSULTANT"). RECITALS WHEREAS,the CDC-HA and the CONSULTANT entered into an Agreement on January 21, 2025 ("Agreement"), wherein the CONSULTANT agreed to provide consulting services related to drafting, soliciting, and evaluating an RFP/Q for City-owned properties to create for- sale homeownership opportunities, for a not-to-exceed amount of $89,000, and an initial term through June 30, 2026,with the option to extend this term for up to three(3)one-year extensions; and WHEREAS,the parties desire to amend the Agreement by exercising the first of the three (3) one year options to extend the term of the Agreement to June 30, 2027; and WHEREAS, the parties desire to extend the scope of services to continue the evaluation of proposals, including supplemental feasibility analyses and additional meetings; and WHEREAS,the parties desire to amend the Agreement to cover the cost of providing the increased scope of services from the amount of$89,000 to the not-to-exceed amount by $20,000, for a total not-to-exceed amount of$109,000. AGREEMENT NOW,THEREFORE,the parties hereto agree that: 1. The January 21,2025 Agreement in exercise of the option provision,is hereby amended to extend the term of the Agreement by one (1)year to June 30, 2027. 2. Exhibit"A"of the January 21,2025 Agreement is hereby amended to expand the scope of services as set forth in the June 22, 2026 letter, attached as Attachment 1. 3. The January 21, 2025 Agreement is hereby amended to cover the cost of the increased scope of services from the original contract amount of$89,000 to the not-to-exceed amount by $20,000, for a total not-to-exceed amount of$109,000. Amended Agreement Page 1 of 2 CDC-HA and Revised January 2024 Keyser Marston Associates,Inc.(KMA) 4. The parties further agree that, with the foregoing exceptions, every other term and provision of the January 21, 2025 Agreement shall remain the same and in full force and effect. IN WITNESS WHEREOF,the parties hereto have executed this First Amendment to the Agreement on the date and year written first above. COMMUNITY DEVELOPMENT KEYSER MARSTON ASSOCIATES,INC COMMISSION-HOUSING AUTHORITY (Corporation—signatures of two corporate officers required) OF THE CITY OF NATIONAL CITY (Partnership or Sole proprietorship one signature) By: ougl J lze, i e -7,lazy\ ive Director By: Paul C. Marra Vice President, Managing Principal Date: j Vol C, Date: 06-24-26 APPROVED AS TO FORM: By: t--. By: eidi Skinner, innie A. Gavino City Attorney Senior Principal Date: c7 — I C-06 Date: 06-24-26 Amended Agreement Page 2 of 2 CDC-HA and Revised January 2024 Keyser Marston Associates,Inc.(KMA) BERKELEY LOS ANGELES SAN DIEGO LARKSPUR KEYSER MARSTON ASSOCIATES June 22, 2026 City of National City Housing Authority Attn: Angelita Palma, Community Development Manager 140 E 12th Street, Suite B National City, CA 91950 Subject: OWN NC RFP- Request for Budget Amendment Dear Ms. Palma: Keyser Marston Associates, Inc. (KMA) requests a budget modification to the Agreement by and between the Community Development Commission-Housing Authority of the City of National City(CDC- HA) and KMA effective January 21, 2025. KMA has been assisting the CDC-HA with the developer solicitation and evaluation of development proposals on six(6) City-owned properties (Properties).As part of this effort, tasks completed to date have included: • Preparation of a developer Request for Proposals (RFP)for the development of the Properties, released on March 19, 2025 • Evaluation of development proposals and financial pro formas, received on June 6, 2025 • Review of developer financial statements and qualifications • Modelling of financial pro formas for each development proposal itemizing: acquisition, development costs, affordable sales prices, and proposed investment by the CDC-HA • Preparation of a presentation package summarizing the KMA findings and accompanied by our supporting technical analyses • Attendance at the City Council meeting on May 29, 2026 to present the KMA findings and respond to comments from Council members The work completed to date has exhausted the budget limit of$89,000. In order to continue to assist the CDC-HA, KMA requests a budget increase of$20,000.This budget increase will allow KMA to continue to move the project forward and undertake the following tasks: • Participate in one (1)virtual meeting with CDC-HA staff to review goals,timeline, and other background information • Review of an updated financial pro forma from Otumba LLC/San Andres Real Estate Group (Developer)for Site 4(A Avenue Lot)to include development planned on two (2) additional parcels (APN 556-553-15-00 and APN 556-553-14-00) owned by the Developer 555 WEST BEECH STREET, SUITE 460 • SAN DIEGO, CA 92101 • (619) 718-9500 • WWW.KEYSERMARSTON.COM 26047ka1 16104.017 Angelita Palma, Community Development Manager June 22, 2026 City of National City Page 2 • Model the Developer's updated pro forma, itemizing acquisition costs,development costs (direct, indirect, and financing), affordable sales prices, and proposed sources of financing • If needed, submit one (1) data request to the Developer in order to obtain missing information or clarification • Evaluate up to one (1) subsequent development/pro forma alternative pertaining to project description, costs, income,and/or overall financing plan • Document our findings in a presentation to City staff, accompanied by supporting technical analyses. • Participate in up to two (2) briefings with City Council members • Prepare for and attend one (1) public meeting with the City Council. Preparation will include presentation materials and/or responses to comments from Council members The requested budget amendment includes the following maximums: • Analysis of one (1) updated development proposal for Site 4 from the Developer • Analysis of one (1) subsequent development/pro forma alternative based on clarification or missing information provided by the Developer • Maximum of two (2) meetings with CDC-HA staff • Maximum of three (3) public meetings, including briefings, with Council members • Maximum of two (2)versions of each deliverable, i.e., draft and final, in PDF format only Our scope and budget specifically excludes: • Review of any updated development proposals for Site 4 from Community HousingWorks • Review of any updated proposals for the other Properties • Negotiations of business terms with selected developers • Analyses of matters of a legal, planning/design, or environmental nature Thank you in advance for your consideration. If you have any questions regarding this proposal, please do not hesitate to call me at(619) 718-9500 x104. Best regards, KEYSER MARSTON ASSOCIATES, INC. Linnie A. Gavino Senior Principal 26047ka1 16104.017 KEYSER MARSTON ASSOCIATES, INC. PUBLIC SECTOR HOURLY RATES 2026/2027 CHAIRMAN, PRESIDENT, MANAGING PRINCIPALS* $320.00 SENIOR PRINCIPALS* $310.00 PRINCIPALS* $290.00 MANAGERS* $260.00 SENIOR ASSOCIATES $215.00 ASSOCIATES $195.00 SENIOR ANALYSTS $180.00 ANALYSTS $155.00 TECHNICAL STAFF $115.00 ADMINISTRATIVE STAFF $95.00 Directly related job expenses not included in the above rates are: auto mileage, parking, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost. Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date. * Rates for individuals in these categories will be increased by 50% for time spent in court testimony.