CC SR 20260707 H - Amendments VBP Program Appraisers
CITY COUNCIL MEETING DATE: 07/07/2025
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider Amendment No.1 to the Professional Service Agreements (PSA) for appraisal
services related to the Greater Portuguese Bend Landslide Voluntary Property Buyout
Program (VPB Program).
RECOMMENDED COUNCIL ACTION:
(1) Ratify the City Manager’s approval of the urgency change order to the PSA with
The Property Sciences Group for the initial Round No. 2 appraisals in the amount
of $11,600;
(2) Approve Amendment No.1 to the PSA with Integra Reality Resources for appraisal
services thereby extending the term through March 18, 2028 and increasing the
contract amount by $29,000 for a total contract sum of $63,800 with a not-to-
exceed cost of $2,900 per appraisal;
(3) Approve Amendment No.1 to the PSA with The Property Sciences Group for
appraisal services thereby extending the term through March 18, 2028 and
increasing the contract amount by $29,000, inclusive of the urgency change order
amount of $11,600, for a total contract sum of $63,800 with a not-to-exceed cost
of $2,900 per appraisal; and
(4) Authorize the Mayor and City Clerk to execute both Amendments, in forms
approved by the City Attorney.
FISCAL IMPACT: The VPB Program is funded by the Federal Emergency Management
Agency (FEMA), through its Hazard Mitigation Grant Program
(HMGP), which pays 75% of all eligible expenses. The remaining
cost share of 25% must be borne by the seller (property owner)
except for certain in-kind costs borne by the City. The program is a
reimbursable grant, requiring the City to initially cover eligible costs
and submit grant billing to FEMA. Currently, an additional
appropriation of $58,000 is needed to fund both Amendments to
complete appraisals for additional properties selected (Round Nos 2
and 3 of the VPB). The cost associated with the appraisals are
tracked in the Federal Grant Fund – Voluntary Buyback Program
account.
Amount Budgeted: None
Additional Appropriation: $58,000
Account Number(s): 331-400-9103-5101
(Federal Grant – Voluntary Buyback Program – Prof/Tech Services) VR
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ORIGINATED BY: Lisa Garrett, Senior Administrative Analyst
REVIEWED BY: Brandy Forbes, AICP, Director of Community Development
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Amendment No. 1 for Integra Reality Resources for Appraisal Services.
(Page A-1)
B. Draft Amendment No. 1 for The Property Sciences Group for Appraisal Services.
(Page B-1)
C. March 2, 2026 Letter of Extension for Integra Reality Resources for Appraisal
Services. (Linked)
D. March 2, 2026 Letter of Extension for The Property Sciences Group for Appraisal
Services. (Linked)
E. Professional Service Agreement for Integra Reality Resources for Appraisal
Services. (Linked)
F. Professional Service Agreement for The Property Science s Group for Appraisal
Services. (Linked)
BACKGROUND:
On October 28, 2024, the City, FEMA, and Cal OES announced a $42 million VPB
Program for property owners affected by the Greater Portuguese Bend Landslide
Complex (Landslide Complex). The funding comes from FEMA's HMGP in response to a
federally declared disaster from winter storms in early 2024. While FEMA will cover 75%
of all eligible costs, the property owners will be responsible for the remaining 25%.
Through the VPB, the City will buy properties from affected residents based on an
appraisal of the fair market value at a predetermined date, acquire title, demolish the
structure(s), and revert it to open space in perpetuity.
On March 18, 2025, City Council approved two PSAs with Integra Reality Resources and
The Property Sciences Group to provide the required appraisal services for 23 prioritized
real property sites that qualified for Round No. 1 funding through the VPB Program. The
appraisals were finalized and distributed to the property owners in May 2025. On June 2,
2025, one of the property owners withdrew from the program. After reviewing the
appraisals for the remaining 22 prioritized properties and updating the application budget
as required by FEMA, Staff determined that Round No. 1 funding would only be able to
fund the acquisition of the remaining 22 program properties.
In May 2025, the City applied to join a waitlist for additional HMGP funding that could
become available to local jurisdictions. The application sought $29 million for a second
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round of the program. Earlier this year, CalOES informed Staff that additional funding had
become available, and the City has been selected to receive $10.16 million (a reduced
amount from the original $29 million request), which could fund the acquisition of
approximately five more homes in Round No. 2. Staff revised its HMGP application based
on the available funding amount and is actively working with CalOES and FEMA to
complete the process and potentially receive funding for Round No. 2. Additionally, Staff
submitted a separate HMGP grant application for $19 million to fund Round No. 3, which
could fund the acquisition of approximately eight additional homes. In total, the City’s
funding requests for Round Nos. 1-3 total an estimated $71 million for approximately 35
homes.
DISCUSSION:
On March 2, 2026, via written letter, Staff extended the PSAs with Integra Reality Group
and The Property Sciences Group by one year through March 18, 2027. This extension
was necessary to continue providing appraisal services for homes qualifying for Round
Nos. 2 and 3 of the VPB Program, if and when funding for each round is awarded to the
City.
On June 17, 2026, the City Manager approved an urgency change order to the PSA
amount for The Property Sciences Group to cover the Round No. 2 appraisals. Although
this increase exceeds the allowed 15% administrative approval amount ($5,220 per
contract), the amount of the urgency change order was $11,600 and was limited to
appraisals for Round No. 2 properties to address the urgency of providing an updated
budget for FEMA’s review of funding. This urgency change order only addresses the initial
Round No. 2 appraisals due to the urgent nature of completing those, but does not include
the costs for appraisal services to address any appeals or additional appraisals required
to address potential withdrawals from the program.
Staff is now requesting that City Council approve a PSA amendment of $29,000 for each
PSA ($58,000 total additional funding) to facilitate appraisals for the acquisition of
additional homes selected in Round No. 2 (ratifying the City Manager’s approved
amount), Round No. 3 (in case the City is selected for funding), and contingency for any
properties where the owner withdraws from the VBP Program after an appraisal has
already been conducted and/or additional appraisals are needed (Attachments A and B).
Funds will only be spent if appraisals are conducted. Also, Staff is requesting that City
Council extend the PSAs for one additional year, through March 18, 2028, to allow time
to complete appraisals for the additional homes identified.
CONCLUSION:
Staff recommend the City Council ratify the previous City Manager’s approval of the
urgency change order for the initial Round No. 2 appraisals and approve the attached
Amendment No. 1 to the PSA with Integra Reality Resources and Amendment No. 1 to
the PSA with The Property Sciences Group to for appraisal services related to any
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appeals or additional appraisals required to address potential withdrawals from the
program, as well as appraisal services for additional rounds of the VPB Program.
ALTERNATIVES:
In addition to Staff’s recommendations, the following alternative actions are available for
the City Council’s consideration:
1. Do not approve one or more of the proposed Amendments.
2. Take such other action as the City Council deems appropriate.
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AMENDMENT NO. 1
TO AGREEMENT FOR PROFESSIONAL SERVICES
THIS AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES
(Amendment No. 1”) by and between the CITY OF RANCHO PALOS VERDES a California
municipal corporation (City) and INTEGRA REALTY RESOURCES., a California Corporation
(“Consultant”) and is effective as of July 7, 2026.
RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services
dated March 18, 2025 (“Agreement”) whereby Consultant agreed to provide appraisal services in
support of the Greater Portuguese Bend Landslide Voluntary Property Buyout Program for a term
of one years and a contract sum of $34,800.
B. On March 2, 2026 City and Consultant extended services via written letter to extend
the Agreement one-year without increasing the contract sum.
C. City and Consultant now desire to enter into Amendment No. 1 to extend the
Agreement one additional year and increase the Contract Sum $29,000 for a total not to exceed
amount of $63,800 for additional appraisals identified for the Greater Portuguese Bend Landslide
Voluntary Property Buyout Program -Round 2 and Round 3.
Contract Changes
bold italics
Section 2.1 Contract Sum is amended to read:
amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C”
$63,800 (SIXTY-THREE THOUSAND EIGHT HUNDRED
Dollars.(the “Contract Sum”), unless additional compensation is approved pursuant to
Section 3.4, Term is amended to read:
two- years
Exhibit “D”
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01203.0005/984355.2 -2-
2.Continuing Effect of Agreement. Except as amended by Amendment No. 1, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it
shall mean the Agreement, as amended by Amendment No. 1.
3.Affirmation of Agreement; Warranty Re Absence of Defaults. City and
Consultant each ratify and reaffirm each and every one of the respective rights and obligations
arising under the Agreement. Each party represents and warrants to the other that there have been
no written or oral modifications to the Agreement other than as provided herein. Each party
represents and warrants to the other that the Agreement is currently an effective, valid, and binding
obligation.
4.Compensation and Method of Payment. Consultant represents and warrants to
City that, as of the date of this Amendment No. 1, City is not in default of any material term of the
Agreement and that there have been no events that, with the passing of time or the giving of notice,
or both, would constitute a material default under the Agreement.
5.Adequate Consideration. The parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this Amendment No. 1.
6.Authority. The persons executing this Amendment No 1. on behalf of the parties
hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to
execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this
Amendment No. 1, such party is formally bound to the provisions of this Amendment No.1, and
(iv)the entering into this Amendment No. 1 does not violate any provision of any other agreement
to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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01203.0005/984355.2 -3-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first-above written.
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
____________________________________
Paul Seo, Mayor
ATTEST:
_________________________________
Teresa Takaoka, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_________________________________
William W, Wynder, City Attorney
CONSULTANT:
INTEGRA REALTY RESOURCES
By:
Name: Eric Segal, MAI
Title: Senior Managing Director
By:
Name: Noah Kauffman
Title: Managing Director
Address: 12100 Wilshire Blvd., Suite 800
Los Angeles, CA 90025
Two corporate officer signatures required when Consultant is a corporation, with one signature required from
each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES
SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR
REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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AMENDMENT NO. 1
TO AGREEMENT FOR PROFESSIONAL SERVICES
THIS AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES
Amendment No. 1") by and between the CITY OF RANCHO PALOS VERDES a California
municipal corporation (City) and THE PROPERTY SCIENCES GROUP, INC., a California C -
Corporation ("Consultant") and is effective as of July 7, 2026.
RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services
dated March 18, 2025 ("Agreement") whereby Consultant agreed to provide appraisal services in
support of the Greater Portuguese Bend Landslide Voluntary Property Buyout Program for a term
of one years and a contract sum of $34,800.
B. On March 2, 2026 City and Consultant extended services via written letter to extend
the Agreement one-year without increasing the contract sum.
C. City and Consultant now desire to enter into Amendment No. I to extend the
Agreement one additioanl year and increase the Contract Sum $29,000 for a total not to exceed
amount of $63,800 for additional appraisals identified for the Greater Portuguese Bend Landslide
Voluntary Property Buyout Program -Round 2.
TERMS
I. Contract Changes. The Agreement is amended as provided herein. Deleted text is
indicated in tr°and added text in bold italics.
Section 2.1 Contract Sum is amended to read:
Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the
amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and
incorporated herein by this reference. The total compensation, including reimbursement
for actual expenses, shall not exceed $31,800 (THIRTY FOUR THOUSAND EIGHT
HUNDRED Dollars) $63,800 (SIXTY-THREE THOUSAND EIGHT HUNDRED
Dollars. (the "Contract Sum"), unless additional compensation is approved pursuant to
Section 1.9. Each Appraisal shall not exceed $2,900.00 (Two Thousand Nine Hundred
Dollars)
Section 3. 4, Term is amended to read:
Unless earlier terminated in accordance with Article 7 of this Agreement, this
Agreement shall continue in full force and effect until completion of the services
but not exceeding one year two- years from the date hereof, except as otherwise
provided in the Schedule of Performance (Exhibit "D"). The City may, in its
discretion, extend the Term by one additional -year terms.
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2. Continuing Effect of Agreement. Except as amended by Amendment No. 1, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment No. 1, whenever the term "Agreement" appears in the Agreement, it
shall mean the Agreement, as amended by Amendment No. 1.
3.. Affirmation of Agreement; Warranty Re Absence of Defaults. City and
Consultant each ratify and reaffirm each and every one of the respective rights and obligations
arising under the Agreement. Each party represents and warrants to the other that there have been
no written or oral modifications to the Agreement other than as provided herein. Each party
represents and warrants to the other that the Agreement is currently an effective, valid, and binding
obligation.
4. Compensation and Method of Payment. Consultant represents and warrants to
City that, as of the date of this Amendment No. I, City is not in default of any material term of the
Agreement and that there have been no events that, with the passing of time or the giving of notice,
or both, would constitute a material default under the Agreement.
5. Adequate Consideration. The parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this Amendment No. 1.
6. Authority. The persons executing this Amendment No 1. on behalf of the parties
hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to
execute and deliver this Amendment No. I on behalf of said party, (iii) by so executing this
Amendment No. I, such party is formally bound to the provisions of this Amendment No.1, and
iv) the entering into this Amendment No. I does not violate any provision of any other agreement
to which said party is bound.
SIGNATURES ON FOLLOWING PAGE]
0 203.0005/984355.2 -2-
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first -above written.
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
Paul Seo, Mayor
ATTEST:
Teresa Takaoka, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
William W. Wynder. City Attorney
CONSULTANT:
The Property Sciences Grout, Inc.
By:
Name: Dean Huynh
Title: President
vm ft sciezes
David KiMR I
By:
Name: David Kim
Title: Chief Operating Officer
Address: 395 Taylor Blvd. Suite 250
Pleasant Hills, CA 94523
Two corporate officer signatures required when Consultant is a corporation, with one signature required from
each of the following groups: 1) Chairman of the Board, President or any Vice. President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT'S SIGNATURES
SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR
REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY.
012030005/984355.2 -3-
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