CONTRACT 7035 Professional Services AgreementL/UI:UJIly1I CIIvuiuptC ILI. V/ IJVUUh-Cr/ C-Y/ / I-DDD-F-DOZ1J Il.'F/ / / CC
Agreement No. 7035
Agreement No.
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND RSG, Inc.
This AGREEMENT is entered into this 15 day of July 2024, by and between the
CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and
RSG, Inc., a California Corporation ("CONSULTANT").
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed
in the SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by
the terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not
to exceed $50,000 for CONSULTANT's services. CITY may modify this
amount as set forth below. Unless otherwise specified by written
amendment to this Agreement, CITY will pay this sum as specified in the
attached Exhibit 'A" which is incorporated by reference.
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit "A,"
which is incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor,
technical, administrative, professional and other personnel, all supplies
and materials, equipment, printing, vehicles, transportation, office space
and facilities, and all tests, testing and analyses, calculation, and all other
means whatsoever, except as herein otherwise expressly specified to be
furnished by CITY, necessary or proper to perform and complete the work
and provide the professional services required of CONSULTANT by this
Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT
will use the appropriate generally accepted professional standards of practice existing at
the time of performance utilized by persons engaged in providing similar services. CITY
will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of
any deficiencies and CONSULTANT will have fifteen (15) days after such notification to
cure any shortcomings to CITY's satisfaction. Costs associated with curing the
deficiencies will be borne by CONSULTANT.
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4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and
hourly rates for each personnel category and reimbursable costs (all as set forth in
Exhibit "A") the tasks performed, the percentage of the task completed during the billing
period, the cumulative percentage completed for each task, the total cost of that work
during the preceding billing month and a cumulative cash flow curve showing projected
and actual expenditures versus time to date.
5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT
for current services are within the current budget and within an available, unexhausted
and unencumbered appropriation of the CITY. In the event the CITY has not
appropriated sufficient funds for payment of CONSULTANT services beyond the current
fiscal year, this Agreement will cover only those costs incurred up to the conclusion of
the current fiscal year.
6. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
Carefully investigated and considered the scope of services to be
performed;
Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending
performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that
CONSULTANT has or will investigate the site and is or will be fully
acquainted with the conditions there existing, before commencing the
services hereunder. Should CONSULTANT discover any latent or
unknown conditions that may materially affect the performance of the
services, CONSULTANT will immediately inform CITY of such fact and will
not proceed except at CONSULTANT's own risk until written instructions
are received from CITY.
7. TERM. The term of this Agreement will be from July 15, 2024 to June 30, 2025.
Unless otherwise determined by written amendment between the parties, this
Agreement will terminate in the following instances:
A. Completion of the work specified in Exhibit "A";
B. Termination as stated in Section 15.
8. TIME FOR PERFORMANCE.
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A. CONSULTANT will not perform any work under this Agreement until:
CONSULTANT furnishes proof of insurance as required under
Section 22 of this Agreement; and
CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving
written authorization to proceed, any such professional services are at
CONSULTANT's own risk.
9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the
contracted services. If delay occurs, CONSULTANT must notify the Manager within
forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how
such delay interferes with the Agreement's schedule. The Manager will extend the
completion time, when appropriate, for the completion of the contracted services.
10.CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the
main body of this Agreement takes precedence over the attached Exhibits; this
Agreement supersedes any conflicting provisions. Any inconsistency between the
Exhibits will be resolved in the order in which the Exhibits appear below:
A. Exhibit A: RSG Proposal
11. CHANGES. CITY may order changes in the services within the general scope of
this Agreement, consisting of additions, deletions, or other revisions, and the contract
sum and the contract time will be adjusted accordingly. All such changes must be
authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY
resulting from changes in the services will be determined in accordance with written
agreement between the parties.
12.TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and
maintain during the term of this Agreement, all necessary permits, licenses, and
certificates that may be required in connection with the performance of services under
this Agreement.
14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared
by CONSULTANT under this Agreement will not be construed to operate as a waiver of
any rights CITY may have under this Agreement or of any cause of action arising from
CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant,
or condition contained in this Agreement will not be deemed to be a waiver of any
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subsequent breach of the same or any other term, covenant, or condition contained in
this Agreement, whether of the same or different character.
15. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any
time with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's
mutual consent. Notice will be in writing at least thirty (30) days before the
effective termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately
cease performance under this Agreement unless otherwise provided in the
termination notice. Except as otherwise provided in the termination notice,
any additional work performed by CONSULTANT after receiving a
termination notice will be performed at CONSULTANT" own cost; CITY
will not be obligated to compensate CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data,
studies, surveys, drawings, maps, reports and other materials prepared by
CONSULTANT will, at CITY's option, become CITY's property, and
CONSULTANT will receive just and equitable compensation for any work
satisfactorily completed up to the effective date of notice of termination,
not to exceed the total costs under Section 1(C).
E. Should the Agreement be terminated pursuant to this Section, CITY may
procure on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this
Section.
16.OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps,
models, photographs and reports prepared by CONSULTANT under this Agreement are
CITY's property. CONSULTANT may retain copies of said documents and materials as
desired, but will deliver all original materials to CITY upon CITY's written notice. CITY
agrees that use of CONSULTANT's completed work product, for purposes other than
identified in this Agreement, or use of incomplete work product, is at CITY's own risk.
17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service
under this Agreement, no copies, sketches, or graphs of materials, including graphic art
work, prepared pursuant to this Agreement, will be released by CONSULTANT to any
other person or public CITY without CITY's prior written approval. All press releases,
including graphic display information to be published in newspapers or magazines, will
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be approved and distributed solely by CITY, unless otherwise provided by written
agreement between the parties.
18.INDEMNIFICATION.
A. CONSULTANT agrees to the following:
i. Indemnification for Professional Services. CONSULTANT will
save harmless and indemnify and at CITY's request reimburse
defense costs for CITY and all its officers, volunteers,
employees and representatives from and against any and all
suits, actions, or claims, of any character whatever, brought
for, or on account of, any injuries or damages sustained by
any person or property resulting or arising from any negligent
or wrongful act, error or omission by CONSULTANT or any of
CONSULTANT's officers, agents, employees, or
representatives, in the performance of this Agreement.
iii. Indemnification for other Damages. CONSULTANT indemnifies
and holds CITY harmless from and against any claim, action,
damages, costs (including, without limitation, attorney's fees),
injuries, or liability, arising out of this Agreement, or its
performance. Should CITY be named in any suit, or should
any claim be brought against it by suit or otherwise, whether
the same be groundless or not, arising out of this Agreement,
or its performance, CONSULTANT will defend CITY (at CITY's
request and with counsel satisfactory to CITY) and will
indemnify CITY for any judgment rendered against it or any
sums paid out in settlement or otherwise.
B. For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will
survive termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be
maintained by CONSULTANT as required by Section 222, and any
approval of said insurance by CITY, are not intended to and will not in any
manner limit or qualify the liabilities and obligations otherwise assumed by
CONSULTANT pursuant to this Agreement, including, without limitation, to
the provisions concerning indemnification.
19.ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without
CITY's written approval are prohibited and will be null and void.
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20.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that
CONSULTANT will act as an independent contractor and will have control of all work
and the manner in which is it performed. CONSULTANT will be free to contract for
similar service to be performed for other employers while under contract with CITY.
CONSULTANT is not an agent or employee of CITY and is not entitled to participate in
any pension plan, insurance, bonus or similar benefits CITY provides for its employees.
Any provision in this Agreement that may appear to give CITY the right to direct
CONSULTANT as to the details of doing the work or to exercise a measure of control
over the work means that CONSULTANT will follow the direction of the CITY as to end
results of the work only.
21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with
respect to all services and matters covered under this Agreement. CITY will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. CONSULTANT will retain such financial and program
service records for at least three (3) years after termination or final payment under this
Agreement.
22.INSURANCE.
A. Before commencing performance under this Agreement, and at all other
times this Agreement is effective, CONSULTANT will procure and
maintain the following types of insurance with coverage limits complying,
at a minimum, with the limits set forth below:
Type of Insurance
Commercial general liability
Professional Liability
Business automobile liability
Workers compensation
Limits
$1,000,000
$1,000,000
$1,000,000
Statutory requirement
B. Commercial general liability insurance will meet or exceed the
requirements of ISO-CGL Form No. CG 00 01 11 85 or 88. The amount of
insurance set forth above will be a combined single limit per occurrence
for bodily injury, personal injury, and property damage for the policy
coverage. Liability policies will be endorsed to name CITY, its officials,
and employees as "additional insureds" under said insurance coverage
and to state that such insurance will be deemed "primary" such that any
other insurance that may be carried by CITY will be excess thereto. Such
endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or
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equivalent. Such insurance will be on an "occurrence," not a "claims
made," basis and will not be cancelable or subject to reduction except
upon thirty (30) days prior written notice to CITY.
C. Professional liability coverage will be on an "occurrence basis" if such
coverage is available, or on a "claims made" basis if not available. When
coverage is provided on a "claims made basis," CONSULTANT will
continue to renew the insurance for a period of three (3) years after this
Agreement expires or is terminated. Such insurance will have the same
coverage and limits as the policy that was in effect during the term of this
Agreement, and will cover CONSULTANT for all claims made by CITY
arising out of any errors or omissions of CONSULTANT, or its officers,
employees or agents during the time this Agreement was in effect.
D. Automobile coverage will be written on ISO Business Auto Coverage Form
CA 00 01 06 92, including symbol 1 (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of
Insurance evidencing maintenance of the insurance required under this
Agreement and such other evidence of insurance or copies of policies as
may be reasonably required by CITY from time to time. Insurance must
be placed with insurers with a current A.M. Best Company Rating
equivalent to at least a Rating of "A:VII."
F. Should CONSULTANT, for any reason, fail to obtain and maintain the
insurance required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from
payments due to CONSULTANT under this Agreement or terminate
pursuant to Section 15.
23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such
approval must approve of the proposed consultant and the terms of compensation.
24.INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative
description of progress during the past month for each major task, a description of the
work remaining and a description of the work to be done before the next schedule
update.
25. NOTICES. All communications to either party by the other party will be deemed
made when received by such party at its respective name and address as follows:
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If to CONSULTANT: If to CITY:
Attention: Alex Lawrence Attention: Michael Allen
RSG City of El Segundo
170 Eucalyptus Ave Suite 200 350 Main Street
Vista, CA El Segundo, CA 90245
(714) 541-4585 (310) 524-2345
Alawrence@rsgsolutions.com Mallen@elsegundo.org
Any such written communications by mail will be conclusively deemed to have been
received by the addressee upon deposit thereof in the United States Mail, postage
prepaid and properly addressed as noted above. In all other instances, notices will be
deemed given at the time of actual delivery. Changes may be made in the names or
addresses of persons to whom notices are to be given by giving notice in the manner
prescribed in this paragraph.
26. PROHIBITED USE OF ARTIFICIAL INTELLIGENCE.
A. Restriction on Artificial Intelligence Usage. CONSULTANT must not
utilize, employ, or incorporate any form artificial intelligence, machine
learning, or other similar technologies (collectively, "Al") in the provision of
professional services in this Agreement without CITY's express written
consent.
B. Exclusions. The Al prohibition set forth directly above will not apply to
general business tools and software that may have Al components but are
not directly involved in the execution or delivery of professional services
that this Agreement covers, provided that such tools and software do not
significantly impact the quality or nature of such services.
C. Notification. CONSULTANT must promptly notify CITY, in writing, of any
proposal to employ Al in connection its provision of services to the CITY
under this Agreement. CITY will have the sole discretion to grant or deny
such proposal.
27. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest
laws and regulations including, without limitation, CITY's conflict of interest regulations,.
28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed
nor retained any company or person, other than CONSULTANT's bona fide employee,
to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not
paid nor has it agreed to pay any company or person, other than CONSULTANT's bona
fide employee, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement.
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Should CONSULTANT breach or violate this warranty, CITY may rescind this
Agreement without liability.
29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of
CONSULTANT's or CITY's obligations under this Agreement.
30.INTERPRETATION. This Agreement was drafted in, and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this agreement will be in Los Angeles County.
31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state,
and local laws applicable to this Agreement.
32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms or other
agreements expressed or implied, oral or written. This Agreement will bind and inure to
the benefit of the parties to this Agreement and any subsequent successors and
assigns.
33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review
this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as
a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or
against either Party.
34. SEVERABILITY. If any portion of this Agreement is declared by a court of
competent jurisdiction to be invalid or unenforceable, then such portion will be deemed
modified to the extent necessary in the opinion of the court to render such portion
enforceable and, as so modified, such portion and the balance of this Agreement will
continue in full force and effect.
35. AUTH ORITY/MODI FI CATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this
Agreement and to engage in the actions described herein. This Agreement may be
modified by written amendment. CITY's executive manager, or designee, may execute
any such amendment on behalf of CITY.
36. ELECTRONIC SIGNATURES; SIGNATURE AUTHORITY. This Agreement may be
executed by the Parties on any number of separate counterparts, and all such
counterparts so executed constitute one Agreement binding on all the Parties
notwithstanding that all the Parties are not signatories to the same counterpart. In
accordance with Government Code § 16.5, the Parties agree that this Agreement,
Agreements ancillary to this Agreement, and related documents to be entered into in
connection with this Agreement will be considered signed when the signature of a party
is delivered by electronic transmission. Such electronic signature will be treated in all
respects as having the same effect as an original signature. CONSULTANT warrants
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that its signatory (or signatories, as applicable) to this Agreement has the legal authority
to enter this Agreement and bind CONSULTANT accordingly.
37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience
of reference only and will not affect the interpretation of this Agreement.
38.TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire,
flood, explosion, acts of terrorism, war, embargo, government action, civil or military
authority, the natural elements, or other similar causes beyond the Parties' reasonable
control, then the Agreement will immediately terminate without obligation of either party
to the other.
40.STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT
represents that it has demonstrated trustworthiness and possesses the quality, fitness
and capacity to perform the Agreement in a manner satisfactory to CITY.
CONSULTANT represents that its financial resources, surety and insurance experience,
service experience, completion ability, personnel, current workload, experience in
dealing with private consultants, and experience in dealing with public agencies all
suggest that CONSULTANT is capable of performing the proposed contract and has a
demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY.
[Signatures on next page]
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IN WITNESS WHEREOF the parties hereto have executed this contract the day
and year first hereinabove written.
CITV OF EL SEGUNDO
Darrell George,
City Manager
ATTEST:
Tra Wwaver,
City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
By:
RSG, Inc. D"uSignedby:
�awtt,S S wtbw
By:
Principal
Title:
Taxpayer ID No..
Joaqui Vazquez, Assistant City Attorney
95-3435849
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Agreement No. 7035
1 PSG
BETTER COMMUNITIES.
BOLDER FUTURES.
June 14, 2024
Michael Allen, Community Development Director
CITY OF EL SEGUNDO
350 Main Street
El Segundo, CA 90245
Via EIectronk-MAiil
PROPOSAL FOR AFFORDABLE HOUSING PLAN IMPLEMENTATION AND ON -CALL
HOUSING CONSULTING SERVICES
PSG, Inc ("RSG") is pleased to present this proposal to the City of El Segundo ("City") to
assist with the implementation of the Affordable Housing Strategic Plan ("Strategic
Plan") and provide on -call, as needed housing consulting services.
PSG has over 40 years of expertise in affordable housing finance, development, fiscal
management, and community engagement. We have supported or managed every
phase of affordable housing programs and projects for cities, counties,
redevelopment agencies, and housing authorities. Our experience includes
developing effective affordable housing strategies, conducting technical reviews,
structuring financial deals, negotiating with developers, and using various funding
sources from local, state, and federal levels. We collaborate closely with City staff to
provide tailored, precise, and detailed solutions and analyses for specific projects.
In Los Angeles County, we work for nearly two dozen different jurisdictions and
agencies, with ongoing assignments in Carson, Inglewood, South Gate, West Los
Angeles, Willowbrook, Chinatown, West Hollywood, among others. Statewide, PSG
served nearly 120 clients in 2023.
RSG PROFILE
PSG, Inc. is a California -based, Subchapter "S" Corporation. Founded in 1979, the firm
is currently managed by active Principals Jim Simon and Tara Matthews and has a
staff of 27 employees. RSG's corporate address is 170 Eucalyptus Ave. Suite 200, Vista,
CA 92084, and we have four hub locations in California, including San Diego, Los
Angeles, Corona, and Oakland, where we collaborate periodically as a team to
accommodate the needs of our clients and growing firm.
PSG is a creatively charged consultant to California public agencies. We collaborate
with the people responsible for creating vibrant places to accomplish their goals. The
inspired leaders at PSG create stronger communities capable of achieving bolder
S A N D I EGO L O S AN G E LES OAKLAND C O R O N A
170 Eucalyptus Ave, Suite 200, Vista, CA 92084 1 714.541.4585 1 webrsg.com
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Agreement No. 7035
Michael Allen, Community Development Director
CITY OF EL SEGUNDO
June 14, 2024
Page 2
futures by bringing more than four decades of native knowledge to each
engagement. As diverse as the agencies we work with, our services span real estate,
economic development, fiscal health, and housing initiatives.
PSG is a California licensed real estate broker (DRE License No. 01933174) and a Small
Business Enterprise ("SBE") certified by the California Department of General Services
(Certification ID 2006876).
Mission Statement
PSG creates solutions to enhance communities' physical, economic, and social future.
Core Values
Our core values define who we are as people and the standards by which we provide
services to our clients. At RSG, we:
SCOPE OF SERVICES
RSG understands that the City is seeking a three to five-year collaboration to carry out
the short-term goals detailed in the Strategic Plan, with particular emphasis on the
Council -identified priorities as summarized below:
1) Funding: Establish and Grow a Local Housing Trust Fund
2) Planning Incentives: Create Policies and Practices for Local Preferences
3) Affordable Housing Sites: Engage Property Owners and ESEDC to Add
Affordable Housing in High Resource Areas and Downtown
Working off the initial work program identified in the Housing Strategy, RSG will
pursue the following activities and milestones:
FUNDING: LOCAL HOUSING TRUST FUND
Almost no affordable housing can be built without local subsidies in the current
market, so this will be a high priority. The City had $5.48 million (as of June 2023) in its
Affordable Housing Special Revenue Fund, but there is not yet any ongoing stream
for new revenue into the fund.
Specifically, RSG would recommend the following activities be pursued:
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Michael Allen, Community Development Director Agreement No. 7035
CITY OF EL SEGUNDO
June 14, 2024
Page 3
1. Confirm It Lbirit� d-ap-p-lv for P HA.fundin f o HQ-Q. PLHA funds provide
the City resources for investment in housing projects defined by the City.
2. Pro .. j r Analy i IT_ nd reco Lion for eft fishing a "ommerciaj
Linka e Fee ipLhe�Cit to incentivize development of housing along with new
commercial development. While there has been limited residential
development in the City over recent years, commercial development in El
Segundo and the greater South Bay is still occurring. This development
increases demand for housing in all income categories and a commercial
linkage fee can be used to incentivize developers to fund or provide affordable
housing which is often most difficult to obtain. The peer review will evaluate
practices of other LA County jurisdictions and provide a recommendation
whether to proceed with a feasibility study to establish the fee for staff and the
City Council's consideration.
3. I,y.for BCD`s Loc f H+ousin a; �C..:Fund in S ng_ 2�. For the past several
years, HCD typically releases a LHTF notice of funding availabilityfor state funds
to augment a local housing trust fund. It has been our experience that HCD's
criteria may be too strict to have a high probability of success without first
establishing an ongoing source of local funding, but the application process is
relatively simple and may be worth pursuing in 2025 (presumably after the City
establishes its own source of local funds such as a commercial linkage fee). PSG
would handle the preparation of the grant application, including facilitating a
debrief with HCD staff at the conclusion of the award process as appropriate.
4. Issuance of Loc-aL. OFA for M' PSG recommends that the City issue its own
notice of funding opportunity in conjunction with some of the targeted
housing sites described below. PSG would prepare the NOFA to invite
affordable housing developers to bring forward projects where they secure site
control for the City's consideration.
PLANNING INCENTIVES: LOCAL PREFERENCES
PSG understands that the City aims to ensure that low income households are not
pushed out of El Segundo, and wishes to establish policies and practices to prevent
displacement as well as preferences for local residents. We see two initial program
initiatives under this goal that should be pursued right away:
Pr p r :_ itmy f ordabl bgua"0"—ui elinestoaddress.how the City will orQvid
rp�ef rg! :t5 in future ffor able h u it _pr ec�ts,. Within the Fair
Housing Act, communities do have the ability to provide some preferences to
El Segundo residents and the workforce in future affordable housing,
particularly those that may be displaced in future redevelopment activities.
PSG will provide the City a draft policy based on our work in other communities
to ensure that such activities mitigate the impacts on the El Segundo
community.
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Michael Allen, Community Development Director Agreement No. 7035
CITY OF EL SEGUNDO
June 14, 2024
Page 4
2. aluate and! enhance ......pr act es a ucLc?.... encouraai Q .ran _rdbat
develo_p,rnent to add'rss im acts of new iobs can tlwe Rocal' i uup. The
City can request applicants seeking discretionary approvals address the impact
of their projects on the local housing supply, which is increasingly becoming a
practice around California, resulting in community benefit agreements and/or
commercial linkage programs targeting housing production, particularly
affordable housing. PSG will review recent discretionary approvals and new
projects in El Segundo to understand project requests and entitlements and
provide a peer review of best practices that the City may wish to consider
addressing these challenges for both by -right and discretionary approvals.
INFILLAND REDEVEOPMENTOPPORTUNTIES
These activities are focused on pursuing creation of affordable housing projects in
areas where the City has identified potential and provide a means to link the financial
resources the City has today to delivery of affordable housing in the current 6` Round
Planning Cycle.
1. Par i�_.Housin Credit . PSG will provide advisory services related to the
potential conversion of Park Vista units into deed -restricted affordable housing
units to receive credit towards the City's Regional Housing Needs Allocation.
RSG will perform due diligence to ensure the units are eligible for conversion
pursuant to AB 787 (2021), which went into effect in January 2023 and specifies
requirements for earning RHNA credit on existing housing units. If PSG finds
the units are eligible and the City chooses to pursue conversion, PSG would
assist with necessary actions to record the necessary covenants.
2. III. Qppgrtunit it , :. After discussing with the City what staff and the ESEDC
have heard from property owners, including schools and churches which have
unique capabilities to develop affordable housing on their sites, PSG will
prepare a high-level design and feasibility analysis on up to 5 sites within the
downtown and other focus areas identified by the City's Housing Strategy. The
purpose of this analysis would be to develop information that would both
identify sites with near -term potential as well as provide information that may
be shared with property owners to discuss possible partnership with the City.
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Michael Allen, Community Development Director Agreement No. 7035
CITY OF EL SEGUNDO
June 14, 2024
Page 5
OTHER SERVICES AS MAY BE NEEDED
RSG will advise and support staff as needed on affordable housing -related questions
or issues as they arise. Affordable housing efforts are intricately linked to other fields
such as real estate, finance, and economic development. We pride ourselves on being
a trusted adviser to clients and are available to answer questions on a wide range of
topics based on our broad experience. RSG will assist with general as -needed services
for miscellaneous items and studies as requested by staff.
PROPOSED TIMELINE
STAFFING
RSG dedicates a Principal to each project assignment and creates a core group of
project managers and staff who work on the individual assignments on a consistent
basis throughout all stages of the contract engagement. Our staff is focused,
committed, and passionate about the work we do. We conduct our engagements
around our Core Values and are proud of it. We pride ourselves on our ability to
appropriately allocate our time and resources to ensure that a project is completed
on time and within budget.
This engagement will be led by Jim, Simon, Principal -in -Charge. Additional PSG staff
assisting with the engagement include Alex Lawrence, Senior Associate and Project
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Michael Allen, Community Development Director Agreement No. 7035
CITY OF EL SEGUNDO
June 14, 2024
Page 6
Manager. Other PSG staff may be assigned as needed. Resumes for all RSG staff can
be viewed at www.webrsg.com.
FEE ESTIMATE
PSG recommends a not -to -exceed fee of $50,000 for Year 1 services with subsequent
budgets to be determined annually. Services will be billed on a time -and -materials
basis at the following hourly rates:
Principal
$
295
Director
$
275
Senior Associate
$
225
Associate
$
195
Senior Analyst
$
160
Analyst
$
145
Research Assistant
$
135
Technician
$
100
Clerical
$
60
Reimbursable Expenses Cost plus 10%
RSG does not charge clients for travel or mileage (except direct costs related to field
work/surveys), parking, standard telephone/fax expenses, general postage, or
incidental copies. However, we do charge for messenger services, overnight
shipping/express mail costs, and teleconferencing services. We also charge for copies
of reports, documents, notices, and support material in excess of five copies. These
costs are charged back at the actual expense plus a 10% surcharge.
RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in
advance. Invoices identify tasks completed to date, hours expended, and the hourly
rate.
We look forward to speaking with you to discuss our proposal in detail. In the
meantime, should you have any questions, please feel free to contact Alex Lawrence,
Senior Associate at (714) 316-2104 or via email at alaare owers�..:r,.
Sincerely,
RSG, Inc.
Jim Simon
Principal
Alex Lawrence
Senior Associate