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EXHIBIT A <br />SCOPE OF SERVICES <br />(August 1, 2006 -June 30, 2007) <br />When and as directed by Agency, Consultant shall consult, assist and advise the Agency/City with respect <br />to financial issues for residential real estate projects to include, but not limited to, the following: <br />Review updated financial information on the Islander Motel Revitalization Project. At the direction <br />of Agency staff, Consultant will review updated construction cost and operating statements from <br />the project developer and property manager (Mercy Housing California) in support of Agency <br />subsidy payments. <br />2. Review the reasonableness of an affordable housing project's development costs including <br />estimates of hard and soft construction costs for each project. The purpose of the review is to <br />verify that the cost estimates are adequate and consistent with the design and quality of the <br />proposed development, that the Agency/City fees are accurately represented and that the <br />developer fees are not excessive. <br />3. Review the reasonableness of a project's revenue and operating cost projects relative to available <br />market data'as well as State HCD's ren#/pricing ceilings to assess the reasonableness of the <br />developer's estimates for rental rates and/or sale prices, absorption rates, vacancy rates, and <br />operating expenses. <br />4. Prepare a financial pro forma of the development and determine the warranted Agency/City <br />assistance. The pro forma will consist of: a) estimate of the development cost of the project, b) <br />estimate of the project's stabilized net operating income or net sales proceeds, c) evaluation of the <br />magnitude of private investment supported by the project, d) evaluation of the magnitude of tax <br />credit equity dollars supported by the project when applicable, and e) evaluation of the need for <br />Agency/City assistance. <br />Recommend development deal points or business terms to the Agency/City to improve the <br />project's viability and to mitigate the Agency/City risk. <br />6. Participate in formal and informal discussions and presentations with potential developers and <br />community officials. <br />7. Preparation of reports as required by State law. <br />Method and Time of Performance <br />Consultant shall perform the various services described herein only as and when requested by the <br />Agency and within a time schedule as mutually agreed upon by the parties to this Agreement. <br />Consulting Services Agreement between Redevelopment Agency of <br />San Leandro and Keyser Marston Associates, Inc. -Exhibit A <br />