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HomeMy WebLinkAboutKeyser Marston Associates Inc; 2020-08-24;DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E AGREEMENT FOR AFFORDABLE HOUSING POLICY CONSUL TIN G SERVICES KEYSER MARSTON ASSOCIATES, INC THIS AGREEM ENT is made and entered into as of the ______ day of ___________ , 20_, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and KEYSER MARSTON ASSOCIATES, INC a California corporation, ("Contractor"). RECITALS A. City requires the professional services of a real estate analytic firm that is experienced in municipal affordable housing policies and housing in-lieu fees, with knowledge of the local San Diego County real estate market and development in Carlsbad specifically. B. Contractor has the necessary experience in providing professional services and advice related to affordable housing policy development. C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one (1) year from the date first above written. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will not exceed fifty thousand dollars ($50,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". City Attorney Approved Version 6/12/18 24thAugust20 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled . City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California's List of Approved Surplus Line Insurers (LASLI) with a rating City Attorney Approved Version 6/12/18 2 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E in the latest Best's Key Rating Guide of at least "A:X"; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverage and Limits. Contractor will maintain the types of coverage and minimum limits indicated below, unless the Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. 10.1 .1 Commercial General Liability (CGL) Insurance. Insurance written on an "occurrence" basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1 .2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. City Attorney Approved Version 6/12/18 3 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Co ntractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWN ERS HIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City Name Kerry Jezisek Title Sr. Program Manager Department Community Development City of Carlsbad Address 1635 Faraday Ave Carlsbad,CA 92008 Phone No . 760-602-277 4 For Contractor Name Paul C. Marra Title Managing Principal Address 555 West Beech St., Suite 460. San Diego, CA 92101 Phone No. (619) 718-9500 Email pmarra@keysermarston.com Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests in all categories. YesD No ■ City Attorney Approved Version 6/12/18 4 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regul ations. Co ntractor will be aware of the req uirements of the Immigration Reform and Control Act of 1986 and will comply with those requ irements, includin g, but not limited to , verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimin ation and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that City Attorney Approved Version 6/12/18 5 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIM S AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTION AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. City Attorney Approved Version 6/12/18 6 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E 26. AUTHORITY The individuals executing this Agreement and the in struments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. KEYSER MARSTON ASSOCIATES, INC. (sign here) Paul C. Marra, Managing Principal (print name/title) By: (sign here) (print name/title) CITY OF CARLSBAD, a municipal corporation of the State of California By: ATTEST: Scott Chadwick City Manager j~ R... ~ ~ BARBARA ENGLESON City Clerk If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER, City Attorney BY: -------------Assistant City Attorney City Attorney Approved Version 6/12/18 7 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E CERTIFICATE OF SECRETARY I, the undersigned, do hereby certify that: (1) I am the duly elected and acting Secretary of Keyser Marston Associates, Inc. a California Corporation; and (2) That Paul C. Marra, acting in his capacity as Vice Pres ident of Keyser Marston Associates, Inc., is authorized on behalf of the Corporation to sign the Agreement for Affordable Housing Policy Consulting Services between the City of Carlsbad and Keyser Marston Associates, Inc. (3) Further, all corporate officers of Ke yser Marston Associates, Inc. are authorized to enter into contracts and execute instruments in the name of the Corporation or on behalf of the Corporation, pursuant to the Corporation's By laws, adopted September 14, 1990. IN WITN ESS WHEREOF, I have hereunto subscribed my name and affixed the seal of such corporation this 4th day of August 2020. Diane M. Chambers, Secretary DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E EXHIBIT "A" SCOPE OF SERVICES Scope of Services Summary The contractor will provide the services required under this scope of work for an amount not to exceed $50,000. (Task Number/ Name Schedule Cost (calendar days) (Not to exceed) Task #1 Project Initiation 15 days $4,500 Task #2 In-Lieu Fee Financial Analysis: Citywide 45 days $10,000 Task #3 Economic Impact of In-Lieu Fee Levels: 30 days $5,000 Citywide Task #4 In-Lieu Fee Financial Analysis: Village 45 days $8,000 and Barrio (concurrent w/ Task #3) Task #5 Economic Impact of In-Lieu Fee Levels: 30 days $4,000 Village and Barrio (concurrent with Task #4) Task #6 Key Findings and Recommendations 15 days $4,000 Task #7 Documentation 15 days $6,000 (Administrative Draft) Task #8 Presentation TBD $8,500 Total (not to exceed) $50,000 Scope of Services Breakdown lnclusionary Housing Ordinance and In-Lieu Fee Assessment 1. Project Initiation (a) Project Initiation -At the outset of the assignment, KMA will participate in a meeting or teleconference via Zoom with City staff (City staff meeting #1) to clarify the City's objectives, the KMA work program, data requirements, and the timeline for completion. (b) Ordinance Review -KMA will review the City's existing Ordinance and historical results in terms of unit production and in-lieu fee revenue. This historical review will consider: • The number of units produced on-site by market-rate developers vs. funded by the City through in-lieu fee revenues; • The mix, type, and affordability levels of units produced. • This information will be tabulated separately for the Village and Barrio Master Plan area vs. the balance of the City. City Attorney Approved Version 6/12/18 8 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E (c) In-Lieu Fees and Impact Fees in Other Jurisdictions -KMA will compile data pertaining to inclusionary housing in-lieu fees and/or affordable housing impact fees currently being charged by selected other Southern California communities, with a primary focus on San Diego County. This information will be used to provide a relative perspective on how the fee levels calculated for the City would compare to the in-lieu fees/impact fees currently being charged in other jurisdictions. Where possible, KMA will also gather information on how the surveyed cities calculated their in-lieu or impact fee. 2. In-Lieu Fee Financial An alysis: Citywide In order to provide the City with a framework for setting possible fee levels, KMA will consider two approaches: • Approach 1: The economic impact of incorporating affordable housing on-site; and • Approach 2: The funding level required for the City to implement inclusionary housing production in an off-site location. (a) Approach 1: Economic Impact of Incorporating Affordable Housing On-Site i. Identification of Market-Rate Residential Prototypes -The economic impact to market-rate developments resulting from incorporation of the City's existing inclusionary requirement on-site can be measured by preparing financial models representative of the types of developments likely to be experienced in Carlsbad over the next five to ten years. KMA will coordinate with City staff to formulate a range of conceptual development prototypes. Prototypes may vary in terms of project size and density, parking type and ratio, tenure (rental vs. for-sale), and potential sites/locations within the City. Based on these discussions, KMA will recommend five (5) development prototypes reflective of the types of residential development anticipated to occur throughout the City (Citywide prototypes). ii. Financial Pro Forma Analyses -On-Site Compliance -For each of the five (5) Citywide prototypes identified above, KMA will prepare financial pro forma models with variations in terms of tenure and affordability mix, as described below: Affordability Scenarios Level Tenure Parameters Scenario #A 100% For-One (1) base case 100% market-rate pro Market-Rate Sale/Rental forma model for each prototype Scenario #B Mixed-Income For-One (1) 85% market-rate I 15% affordable Sale/Rental pro forma model for each prototype The pro forma analysis for each prototype will include estimates of development costs, value upon completion, targeted developer return, and/or potential funding sources. The "financing gap" outcome of this analysis will illustrate the economic impact of incorporating affordable housing on-site for each Citywide prototype. City Attorney Approved Version 6/12/18 9 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E (b) Approach 2: Funding Level Required for City to Create Affordable Housing Off- Site The second approach to setting fees is based on the affordability gap associated with developing affordable housing in an off-site location. This approach estimates the funds that the City would need to receive from a developer of a market-rate residential project in order to create affordable rental housing in a separate off-site location. KMA will prepare financial pro form a models reflective of 100% affordable housing developments financed with Low Income Housing Tax Credits (LIHTC), as described below: Affordability : Scenarios Level Tenure i Parameters Scenario #C 100% Affordable Rental One (1) 100% affordable proforma model assumed to be financed with Low Income Housing Tax Credits for two (2) prototypes projects (e.g., garden apartments and podium apartments) The "financing gap" outcome of this "off-site" compliance analysis will illustrate the in- lieu fee needed to deliver housing to lower income households in an off-site location. (c) Potential In-Lieu Fee -KMA will summarize and compare the "financing gap" outcomes for the two approaches described above. These figures represent the potential in-lieu fee levels that should be evaluated further in terms of economic impact on market-rate residential developments, as described below. 3. Economic Impact of In-Lieu Fee Levels: Citywide Impact of Potential In-Lieu Fee Levels on New Market-Rate Residential Construction -In adopting new fee programs, many jurisdictions find it informative to have an accompanying real estate financial feasibility analysis that analyzes the impacts that fees can have on the financial feasibility of new construction. KMA will prepare an estimate of the impact of the potential in-lieu fee levels on the feasibility of the five (5) Citywide residential prototypes. (a) Economic feasibility will be measured in terms of economic impact on residual land value and/or developer return . (b) In-Lieu Fee Comparison -As a measure of the economic impact of a potential increase in the in-lieu fee, KMA will also present a comparison among: (1) the existing fee; (2) the potential fee levels; and (3) typical in-lieu fees/impact fees charged in other San Diego County jurisdictions. Where possible, fees will be expressed relative to building area (SF), construction costs, and/or market value upon completion. Based on these comparisons, KMA will: (1) identify whether potential fee level ranges will incentive/disincentivize market-rate housing production; and (2) recommend an appropriate Citywide fee level on either a per- unit and/or per-SF basis. City Attorney Approved Version 6/12/18 10 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E 4. In-Lieu Fee Financial Analysis: Village and Barrio Master Plan Area KMA will undertake an in-lieu fee analysis specific to the Village and Barrio Master Plan area. The analysis will take into consideration the unique characteristics of the Village/Barrio area such as its proximity to the coast, fine grain block and parcel pattern, higher land values, small in-fill developments, allowance for higher densities, and greater reliance on structured parking . The work tasks associated with the in -lieu fee analysis for the Village and Barri o Master Plan area will parallel the methodology and analysis outlined above in Tasks #2 and #3 for the Citywide in-li eu fee analysis, as more fully described below. KMA will consider two approaches for setting possible fee levels for the Village and Barrio Master Pl an area: • Approach 1: The economic impact of incorporating affordable housing on -site; and • Approach 2: The funding level required fo r the City to implement targeting inclusionary housing production in an off-site location within the Village/Barrio are a. (a) Approach 1: Economic Impact of Incorporating Affordable Housing On-Site i. Identification of Market-Rate Residential Prototypes -KMA will coordinate with City staff to formulate a range of conceptual development prototypes for the Village/Barrio area. Based on these discussions, KMA will recommend four (4) development prototypes reflective of the types of residential/mixed- use development likely to be occurring within the Village and Barrio Master Plan area (Village/Barrio prototypes). ii. Financial Pro Forma Analyses -On-Site Compliance -For each of the four (4) Village/Barrio prototypes identified above, KMA will prepare financial pro form a models with variations in terms of tenure and affordability mix, as described below: Affordability I I Scenarios Level Tenure Parameters Scenario #D 100% For-One (1) base case 100% market-rate pro Market-Rate Sale/Rental forma model for each prototype Scenario #E Mixed-Income For-One (1) 85% market-rate/ 15% affordable Sale/Rental pro forma model for each prototype The "financing gap" outcome of this analysis will illustrate the economic impact of incorporating affordable housing on-site for each Village/Barrio prototype. (b) Approach 2: Funding Level Required for City to Create Affordable Housing Off-Site The second approach to setting fees is based on the affordability gap associated with developing affordable housing in an off-site location within the Village/Barrio area. This approach estimates the funds that the City would need to receive City Attorney Approved Version 6/12/18 11 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E from a developer of a market-rate residential project in order to create affordable rental housing in a separate off-site location. KMA will prepare financial pro forma models reflective of a 100% affordable housing development constructed in the Village/Barrio area and financed with LIHTCs, as described below: Affordability ' Scenarios Level Tenure Parameters Scenario #F 100% Affordable Re ntal One (1) 100% affordable proforma model financed with 9% LIHTCs and one (1) 100% affordable pro form a model financed with 4% LIHTCs for one (1) rotot e e. . , odium a artments The "fin ancing gap" outcome of this "off-site" compliance analysis will illustrate the in-lieu fee needed to deliver housing to lower income households in an off-site location. (c) Potential Recommended In-Lieu Fee -KMA will summarize and compare the "financing gap" outcomes for the two approaches described above. These figures represent the potential in-lieu fee levels that should be evaluated further in terms of economic impact on market-rate re sidential developments, as described below. 5. Economic Impact of In-Lieu Fee Levels: Village and Barrio Master Plan Area (a) Impact of Potential In-Lieu Fee Levels on New Market-Rate Residential Construction -KMA will prepare an estimate of the impact of the potential in-lieu fee levels on the feasibility of the four (4) Village/Barrio prototypes. Economic feasibility will be measured in terms of economic impact on residual land value and/or developer return. (b) In-Lieu Fee Comparison -As a measure of the economic impact of a potential increase in the in-lieu fee, KMA will also present a comparison among: (1) the existing fee; (2) the potential fee levels; and typical in-lieu fees/impact fees charged in other San Diego jurisdictions. Where possible, fees will be expressed relative to building area (SF), construction costs, and/or market value upon completion. Based on these comparisons, KMA will: (1) identify whether potential fee level ranges will incentive/disincentivize market-rate housing production; and (2) recommend an appropriate fee level for the Village/Barrio area on either a per-unit and/or per-SF basis. 6. Key Findings and Recommendations KMA will participate in one (1) teleconference or meeting via Zoom with City staff (City staff meeting #2) to present our findings and key recommendations. The KMA recommendations will include: • Recommended methodology on calculating an economically viable and legally defensible affordable housing in-lieu fee • Recommended Citywide in-lieu fee level City Attorney Approved Version 6/12/18 12 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E • Recommended in-lieu fee level for the Village/Barrio Master Plan area • Potential annual adjustments/escalators for the in-lieu fee • Other potential approaches to mitigate differing geographic regions of the City and affordable housing impacts over the long term KMA will prepare a summary of these recommended changes for potential incorporation into an updated lnclusionary Housing Ordinance. 7. Documentation (a) Administrative Draft -We will submit an Administrative Draft Report containing an executive summary, technical memorandum, and supporting appendices. We will participate in a meeting or teleconference via Zoom with City staff and industry representatives (City staff meeting #3) to review our findings and recommendations and receive feedback. (b) Draft Report -Following the receipt of consolidated comments and feedback to the Administrative Draft, KMA will prepare and submit a Draft Report. If needed, KMA will participate in one (1) teleconference with City staff to review City comments on the Draft Report. (c) Final Report-Once we have received consolidated comments on the Draft Report from the City, KMA will prepare and submit a Final Report. 8. Presentation II II (a) Presentation Materials -KMA will prepare a PowerPoint presentation and/or other handouts summarizing the KMA methodology, findings, and recommendations. (b) Study Session and Public Meetings -KMA will attend up to four (5) public meetings (may be Zoom meetings) to present the Draft Report, as follows: • One (1) study session with public officials • One (1) meeting with the Housing Commission • One (1) meeting with the Planning Commission • One ( 1) meeting with the City Council Remainder of page intentionally left blank City Attorney Approved Version 6/12/18 13 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E Project Deliverables: • Up to five (5) Citywide residential development prototypes • A maximum of 12 Citywide proforma models (Scenarios A and B @ 5 prototypes x 2 scenarios+ Scenario C @ 2 prototypes x 1 scenario = 12 pro form a models) • Up to four (4) Village/Barrio residential prototypes • A maximum of 10 Village/Barrio pro forma models (Scenarios D and E @ 4 prototypes x 2 scenarios+ Scenario F @ 1 prototype x 2 scenarios = 10 pro form a models) • Three (3) versions of the report: Administrative Draft, Draft, and Final • Three (3) meetings or teleconferences via Zoom with City staff, inclusive of one (1) meeting with City staff and industry representatives • One ( 1) PowerPoint presentation • Up to four (4) public meetings with the Housing Commission, Planning Commission, or City Council, inclusive of one (1) study session The project scope and budget specifically excludes preparation of a residential nexus analysis. City Attorney Approved Version 6/12/18 14 DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E ACORD0 CERTI FICATE OF LIABILITY INSURANCE I DATE (MM/0D/YYYY) ~ 11/20/2019 THIS CERTIFICATE IS ISSUED ASA MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the pollcy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER NAME7~ Hali dee Callej as MOC I n surance Services PHONE (415) 957-0600 I rffc Nol: IUS) 5157-0511 IA.Ir Mo_ Cvll• License No . 0589960 !~'ll~ss: h callejas@mocins . c om 101 Montgomery St ., Suite 800 INSURER/SI AFFORDING COVERAGE NAIC • San Francisco CA 94104 INSURER A: Massachusetts Bav Ins. Co. 22306 INSURED INSURERB :Allmerica Financial Benefi t Co. 41840 Keyser Marston Associates , Inc. INSURER C: Hanover Insurance Company 22292 1299 4th Sr eet Suit e 408 INSURERD: INSURERE: San Rafael CA 94901 INSURERF: COVERAGES CERTIFICATE NUMBER:2019-2020 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDI. SUBR POUCYEFF POLICY EXP LlR ,,...n == POLICY NUMBER IMMIDrvvvYV\ IMMIDDIYYYYI LIMITS X COMMERCIAL GENERAL LIABIUlY EACH OCCURRENCE s 1,000,000 -D CLAIMS-MADE woccUR DAMJ\c,E TO RENTED A PREMISES /Ea """"''""'" s 500,000 -X ZOFM 9104 905 12/1/2019 12/1/2020 MED EXP (Any one pe,son) $ 10,000 - 'PERSONAL & ADV INJURY $ 1 ,000,000 - GEN'LAGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $ 2,000,000 RPOLICY@ff& □LOC PRODUCTS -COMP/OP AGG s Included OTHER: s AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 tea accident\ ,__ X ANY AUTO BODILY INJURY (Pe< person) $ B -ALL OVVNED -SCHEDULED AUTOS AUTOS X AW'FA490049 12/1/2019 12/1/2020 BODILY INJURY IPer acd<lenQ s --NON-OWNED PROPERTY DAMAGE X HIRED AUTOS X AUTOS lPer acddenll $ --X CompS500 X Col $500 Vnln.sured molorlst combined single $ 1,000,000 X UMBREUA LIAB HOCCUR EACH OCCURRENCE $ 4 000 ODO - C EXCESSLIAB CLAIMS-MADE AGGREGATE s 4,000,000 OED I X I RETENTION s 0 .00 X UltFJ\49117105 12/1/2019 12/1/2020 s WORKERS COMPENSATION 1mTUlE I I OTH- AND EMPLOYERS' LIABILITY ER YIN ANY PROPRIETOR/PARTNER/EXECUTIVE □ NIA E.L EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? (M1ndatory In NHI E.L DISEASE -EA EMPLOYEE $ lf yes, desulbo urder DESCRIPTION OF OPERATIONS below E.L DISEASE· POLICY LIMIT $ -C--Profoe:sional-Liabi-lity ·-------·-·-'--··--. --.... -LHrD42ti16502---·---· --·-········ ·· --·-· ·12/1/2019.---12/1/2020 .• .Eich IM'ooglulM . ···-------··------$1,000,000. Retention $25 ,000 Aogre,gale limit $2,000,000 OESCRJPTION OF OPERATIONS/ LOCATIONS /VEHICLES (ACORD 101, Additional Rernarka S<.hadulo, may be attached If more spaeo Is requlr1d) City of Carlsbad, it's officers, agents, and employees are Additional Insureds as respects their interest appears in written contract with the insured. Insurance provided is Primary and Non-Contributory with any other insurance. 30 Day notice of cancellation/lo CERTIFICATE HOLDER City of Carlsbad CED Department 1635 Faraday Carlsbad, I ACORD 25 (2014/01) INS025 (201401! CA Avenue 92008 Day for non-payment of premium CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTl10RlZED REPRESENTATIVE Halidee Callejas/HCA /J,,/;J ... e.,'J,,) © 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E Key s er Marston Ass o c iates , Inc Policy No : AWFA490049 COMMERCIAL AUTO CA 00 010306 BUS INESS AUTO CO VERAGE FORM Various prov1s1ons in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and wh at is and is not covered. SECTION I -COVERED AUTOS Item Two of the Declarations shows the "autos" that are covered "autos" for each of your coverages. The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos". Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company pro- viding this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions. A. Description Of Covered Auto Designation Symbols Symbol Description Of Covered Auto Designation Symbols 1 Any "Auto" 2 Owned "Autos" Only those "autos" you own (and for Liability Coverage any "trailers" you don't own Only while attached to power units you own). This includes those "autos" you acquire ownership of after the policy beoins. 3 Owned Private Only the private passenger "autos" you own. This includes those private passenger Passenger "autos" you acquire ownership of after the policy begins. "Autos" Only 4 Owned "Autos" Only those "autos" you own that are not of the private passenger type (and for Li- Other Than Pri-ability Coverage any "trailers" you don't own while attached to power units you vale Passenger own). This includes those "autos" not of the private passenger type you acquire "Autos" Onlv ownership of after the oolicv begins. 5 Owned "Autos" Only those "autos" you own that are required to have No-Fault benefits in the state Subject To No-where they are licensed or principally garaged. This includes those "autos" you ac- Fault quire ownership of after the policy begins provided they are required to have No- Fault benefits in the state where they are licensed or principally qaraoed. 6 Owned "Autos" Only those "autos" you own that because of the law in the state where they are Ii- Subject To A censed or principally garaged are required to have and cannot reject Uninsured Compulsory Un-Motorists Coverage. This includes those "autos" you acquire ownership of after the insured Motor-policy begins provided they are subject to the same state uninsured motorists re- ists Law auirement. 7 Specifically De-Only those "autos" described in Item Three of the Declarations for which a pre- scribed "Autos" mium charge is shown (and for Liability Coverage any "trailers" you don't own while attached to anv oower unit described in Item Three). 8 Hired "Autos" Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" Only you lease, hire, rent, or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households. 9 Nonowned Only those "autos" you do not own, lease, hire, rent or borrow that are used in con- "Autos" Only nection with your business. This includes "autos" owned by your "employees", part- ners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your personal affairs. CA 00 010306 © ISO Properties, Inc., 2005 Page 1 of 12 □ DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E (2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household. (3) Someone using a covered "auto" while he or she is working in a business of selling, servicing, repairing, parking or storing "autos" unless that business is yours. (4) Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto". (5) A partner (if you are a partnership), or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household. c. Anyone liable for the conduct of an "in- sured" described above but only to the ex-. tent of that liability. 2. Coverage Extensions a. Supplementary Payments We will pay for the "insured": (1) All expenses we incur. (2) Up to $2,000 for cost of bail bonds (in- cluding bonds for related traffic law vio- lations) required because of an "acci- dent" we cover. We do not have to fur- nish these bonds. (3) The cost of bonds to release attach - ments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day be- cause of time off from work. (5) All costs taxed against the "insured" in any "suit" against the "insured" we de- fend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "in- sured" we defend, but our duty to pay in- terest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the Limit of Insurance. b. Out-Of-State Coverage Extensions While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Li- ability Coverage to meet the limits speci- fied by a compulsory or financial re- sponsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passengers or prop- erty. (2) Provide the minimum amounts and types of other coverages, such as no- fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. Exclusions This insurance does not apply to any of the follow- ing : 1. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the "in- sured". 2. Contractual Liability assumed under any contract or agree- ment. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily in- jury" or "property damage" occurs subse- quent to the execution of the contract or agreement; or b. That the "insured" would have in the ab- sence of the contract or agreement. 3. Workers' Compensation Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar law. 4. Employee Indemnification And Employer's Liability "Bodily injury" to: a. An "employee" of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or CA 00 010306 © ISO Properties, Inc., 2005 Page 3 of 12 D DocuSign Envelope ID: 0432A539-8705-4326-8832-41340495B59E ~ ACORDe CERTIFICATE OF LIABILITY INSURANCE I DATE (MMIDDIYYYYI ~ 05/15/20 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the poficy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsementls). PRODUCER CONTACT Aon Risk Services, Inc of Florida Aon Risk Services, Inc of Florida NAME; 1001 Brickell Bay Drive. Suile #1100 PHONE Ir~ Nol: 800-522-7514 Miami, FL 33131-4937 ·rAJC No Extl: 800-743-8130 EMAIL ADDRESS: ADP.COI.Center®Aon.com INSURER(S) AFFORDING COVERAGE NAIC# INSURER A : American Home Assurance Co. 19380 INSURED INSURER B: ADP TolalSource DE IV, Inc. 10200 Sunset Drive INSURERC : Miami, FL 33173 UC/F INSURER D : Keyser Marston Associates, Inc. INSURER E: 1299 Fourth Slreel, Suite 408, San Rarael, CA 94901 INSURER F: COVERAGES CERTIFICATE NUMBER: 2883612 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LIMITS SHOWN ARE AS REQUESTED. INSR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSR WVD IMM/DDIYYYYl IMM/DD/YYYYl -COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE s D CLAIMS-MADE □ OCCUR DAMAGE TO RENTED -PREMISES {Ea occurrence) s .• MED EXP rAnv one oersonl $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE s ==i POLICY □ PROJECT □ LDC PRODUCTS • COMP/OP AGG s OTHER $ SINGLE L/Ml1 AUTOMOBILE LIABILITY IEa accdenll s - ANY AUTO BODILY INJURY (Per oersonl s --OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY !Per accidenll s --HIRED NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY !Per accident) $ --s UMBRELLA LIAB OCCUR EACH OCCURRENCE s ~ - EXCESS LIAB CLAIMS-MADE AGGREGATE s DEC I I RETENTION s WORKERS COMPENSATION I PER I I OTH- AND EMPLOYERS' LIABILITY Y/N X STATUTE ER A ANY PROPRIETOR/PARTNER/EXECUTIVE □ WC 027119589 CA 7/1/2020 7/1/2021 E.L. EACH ACCIDENT s 2,000,000 OFFICER/MEMBER EXCLUDED? NIA (Mandatory In NH) E.L. DISEASE· EA EMPLOYEE 5 2,000,000 If yes, describe under 2,000,000 DESCRIPTION OF OPERATIONS below E.L. DISEASE· POLICY LIMIT 5 DESCRIPTION OF OPERATIONS I LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is required) All worksile employees working (or KEYSER MARSTON ASSOCIATES, INC .. paid under ADP TOTALSOURCE, INC's payroll, are covered under !he above slated policy. CERTIFICATE HOLDER CANCELLATION City of Carlsbad SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE CED Department THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 1635 Faraday Avenue ACCORDANCE WITH THE POLICY PROVISIONS, Carlsbad, CA 92008 AUTHORIZED REPRESENTATIVE of 011 d{_alc 8 ett.vi.c1u, 'lnc of eflowl.a. © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD 1011680