Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director Department of Housing
Subject: Amendment to Agreement between the County of San Mateo and Capital Program Management, Inc.
RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Department of Housing, or designee(s), to execute a first amendment to the agreement between the County of San Mateo and Capital Program Management, Inc. (CPM) to increase the County’s maximum fiscal obligation for project management services for the Ramada Homekey to an amount not to exceed $565,700, extending the term to December 31, 2025, and to make other amendments.
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BACKGROUND:
On June 13, 2023, the Board of Supervisors adopted Resolutions authorizing the San Mateo County Department of Housing (DOH) to apply to the State Homekey program under which the County would acquire and convert two hotels - La Quinta, located at 1390 El Camino Real, Millbrae, and Ramada Inn, located at 721 Airport, South San Francisco - to Permanent Support Housing (PSH) for individuals experiencing or at risk or homelessness. DOH co-applied to the Homekey program with Episcopal Community Services (ECS) to develop the two properties predicated on receiving Homekey funding.
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 predevelopment stage. Based on a competitive bidding process conducted by the County’s Project Development Unit for other development projects, DOH contracted with Capital Program Management (CPM) on June 23, 2023 to oversee the predevelopment of both potential Homekey properties in exchange for payment in amount not to exceed $195,000, for a term through June 30, 2025 (the “Agreement”).
DISCUSSION:
CPM has provided valuable consulting services to DOH 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 the Homekey projects. Given the complexities of the development, CPM consulting and project management services will be needed beyond the predevelopment stage and throughout the development of the Ramada project.
In order to secure CPM’s services through the full development period for the Ramada project, DOH recommends that the Board approve an amendment to the Agreement to increase the County’s maximum fiscal commitment by $370,700 for a new total amount not to exceed $565,700. This increase will ensure sufficient funding for CPM’s consulting services throughout the construction of the Ramada Inn conversion to PSH. The proposed amendment will also modify the services to focus on specified on-call project management services, extend the term through December 31, 2025, update the payment terms and make other amendments required by the American Rescue Plan Act (ARPA) funding source.
The County Attorney has reviewed the proposed amendment to the Agreement and the resolution as to form.
FISCAL IMPACT:
The proposed amendment to the Agreement increases the County’s maximum fiscal obligation by $370,700 for a new total amount not to exceed $565,700 over the term of the Agreement, ending December 31, 2025. This amended Agreement is funded by ARPA funds. Budgetary appropriation for this Agreement is included in the FY 2024-25 Adopted Budget. There is no Net County Cost associated with this Agreement.