Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director Department of Housing
Subject: Third Amendment to Agreement between the County of San Mateo and Capital Program Management, Inc. for Project Management Services
RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Department of Housing, or designee(s), to execute a Third Amendment to the Agreement between the County and Capital Program Management, Inc. for project management services for the 721 Airport Permanent Supportive Housing Project, updating the payment terms and extending the term of the Agreement through December 31, 2026, increasing the County’s maximum fiscal obligation by $189,000 for a new total amount not to exceed $779,700.
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BACKGROUND:
On June 13, 2023, this Board adopted a Resolution authorizing the County’s Department of Housing (DOH) to apply to the State Homekey program for funding to acquire and convert the Ramada Inn, located at 721 Airport, South San Francisco to Permanent Supportive Housing (PSH) for individuals experiencing or at risk of homelessness. Pursuant to this Board’s authorizations, DOH co-applied to the Homekey program with Episcopal Community Services (ECS) to develop the property if Homekey funding was awarded.
In anticipation of the potential Homekey award, DOH sought a consultant to assist in effectively managing the developer relationship between the County and ECS during the pre-development and development stages of the project.
Based on a competitive bidding process conducted by the County’s Project Development Unit for other development projects, DOH contracted with Capital Program Management, Inc. (CPM) on June 25, 2023, to provide project management services in connection with the predevelopment of potential Homekey properties in exchange for payment in an amount not to exceed $195,000 (the “Agreement”). The County has since been awarded Homekey funds and has proceeded with the acquisition and development of the 721 Airport PSH project.
During this period, CPM has provided valuable consulting services to the County in connection with the predevelopment of the County’s Homekey projects. Their expertise in construction management has assisted DOH in ensuring timely and accurate invoicing for predevelopment on Homekey projects. CPM consulting and project management services will be needed beyond the predevelopment stage and throughout the development of the Ramada 721 Airport PSH project.
On December 3, 2024, pursuant to this Board’s authorization, the County and CPM entered into a First Amendment to the Agreement to increase the County’s maximum fiscal obligation by $370,700 for a new total amount not to exceed $565,700, modify the services to focus on specified on-call project management services, to extend the term of the Agreement through December 31, 2025, to update the payment terms, and to make other amendments required by the American Rescue Plan Act funding source.
The Agreement briefly lapsed and was reinstated and amended in January 2026 to increase the County’s maximum fiscal obligation by $25,000 pursuant to this Board’s prior authorization for a new total amount not to exceed $590,700, to update the payment terms, and to extend the term of the Agreement through February 28, 2026.
The Agreement is funded with Federal American Rescue Plan Act (“ARPA”) monies, allocated by this Board in connection with the December 2024 first amendment to the Agreement. Providing services for affordable housing projects is an eligible use of ARPA funds.
DISCUSSION:
In order to secure CPM’s services through the full development period for the 721 Airport PSH project, DOH recommends that the Board approve a Third Amendment to the Agreement. The proposed amendment would increase the County’s maximum fiscal obligation by $189,000, for a new total amount not to exceed $779,700. This increase will provide sufficient funding for CPM’s consulting services throughout the construction and conversion of the 721 Airport property to PSH. The proposed Third Amendment will also extend the term of the Agreement through December 31, 2026, and update the payment terms.
The proposed amendment further provides that the federal ARPA funds used to fund the Third Amendment are for substantially the same scope and purpose as the original Agreement under which the funds were obligated prior to December 31, 2024, and are required to be expended no later than December 31, 2026.
The County Attorney has reviewed the proposed Third Amendment to the Agreement and the resolution as to form.
COMMUNITY IMPACT:
This amendment to the Agreement will positively impact lives of at least 45 seniors who are either homeless or at risk of homelessness. Staff from the Center on Homelessness and Coordinated Entry have identified some of the persons who will have the opportunity to reside in this community. Developing this property to help this population is crucial to the well-being of the County and its occupants.
FISCAL IMPACT:
The proposed Third Amendment to the Agreement increases the County’s maximum fiscal obligation by $189,000 for a new total amount not to exceed $779,700 over the term of the Agreement, ending December 31, 2026. This Third Amendment to the Agreement is funded by ARPA funds. Budgetary appropriation for this Agreement is included in the FY 2025-2026 Adopted Budget. There is no Net County Cost associated with this Agreement.