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May 19, 2026
ITEM TITLE
Approve Property Management Agreement: Approve an Agreement with Ryan Companies US, Inc. to Provide Property Management Services for the City-Owned Building Located at 1775 Millenia Avenue Report Number: 26-0122
Location: 1775 Millenia Avenue
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to State California Environmental Quality Act Guidelines Section 15301 (Existing Facilities).
Recommended Action
Adopt a resolution approving an agreement between the City of Chula Vista (“City”) and Ryan Companies US, Inc. to provide property management services for the Mi llenia Library Building located at 1775 Millenia Avenue.
SUMMARY
City requires specialized property management services for the Millenia Library Building located at 1775 Millenia Avenue. The Millenia Library Building is a 168,000 square foot Class “A” office building, which will house the 60,000 square foot City library and other tenants , including but not limited to San Diego State University and Sweetwater Union High School District.
Staff conducted a competitive procurement process in accordance with the Chula Vista Municipal Cod e Section 2.56.110 for professional property management services . After reviewing the proposals, staff recommend awarding a five-year contract to Ryan Companies US, Inc. with one (1) additional five-year renewal period.
ENVIRONMENTAL REVIEW
The proposed project has been reviewed for compliance with the California Environmental Quality Act (“CEQA”), and it has been determined that the project qualifies for a Categorical Exemption pursuant to State P a g e | 2
CEQA Guidelines Section 15301 (Existing Facilities), which consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and where the exceptions listed in State CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts were identified, no significant effects on the environment were identified, the project is not adjacent to a scenic highway, no historical resources would be affected by the action, and the project was not identified on a list of hazardous waste sites pursuant to Section 65962.5 of the Government Code. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Millenia Library Building located at 1775 Millenia Avenue is a 168,000 square foot Class “A” office building, which will house the 60,000 square foot City library and other tenants, including but not limited to San Diego State University and Sweetwater Union High School District . The Millenia Library Building is a unique building and unlike any other City owned real estate , and as such requires the management and oversight of a professional property management company.
On August 22, 2025, the City issued Request for Proposal (“RFP”) P06-2026 to procure property management services for the Millenia Library Building. The City received two proposals by the September 12, 2025 submission deadline, from Portside Property Management, LLC and Ryan Companies US, Inc. A selection committee composed of representatives from the Library, Information Technology Services, and the City’s contracted Project Manager overseeing the construction of the Millenia Library Building , invited the two firms to participate in presentations and interviews. The selection committee reviewed and discussed the firms based on experience, personnel, qualifications, fee proposal, interview , and adherence to RFP guidelines. After completing a comprehensive assessment, the selection committee recommends awarding the contract to Ryan Companies US, Inc.
Ryan Companies US, Inc. is a nationally recognized leader in commercial real estate services, founded in 1938 with 17 offices nationwide. Corporate headquarters for Ryan Companies US, Inc. are located in Minneapolis, MN with a Southern California regional office based in La Jolla. The firm is a full-service provider, with over
23.5 million square feet of property under management that includes a 1.2 million square feet public sector portfolio that includes the San Diego County James Mills Building in downtown San Diego that is owned by the San Diego Metropolitan Transit System.
The property management contract will include an initial five -year term with a five -year renewal period.
The contract will include a monthly Management Fee of $11,200.00 that will escalate four percent (4%) per year as well as reimbursements for salary, employee burden, taxes and ancillary costs for a Senior Property Manager and a Real Estate Coordinator. Employee salaries and ancillary costs will increase at four percent (4%) per annum with employee burden and taxes increasing at seven percent (7%) per annum. The not-to- exceed amount for the Initial Term is $1,604,006.09 with a maximum not-to-exceed amount of $3,608,626.26 including the renewal period.
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DECISION-MAKER CONFLICT
Staff have reviewed the property holdings of the City Council members and have found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff are not independently aware, and have not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact as services will begin in July 2026.
ONGOING FISCAL IMPACT
The table below outlines the monthly management fee, monthly staffing and ancillary costs, total monthly cost and the total annual cost, along with the not-to-exceed amount including the renewal period.
Period Monthly
Management Fee
Monthly Staff and
Ancillary Cost**
Total Monthly Total Annual
FY 2026-2027 $11,200.00 $13,222.96 $24,442.96 $293,075.56 FY 2027-2028 $11,648.00 $13,876.07 $25,524.07 $306,288.85 FY 2028-2029 $12,113.92 $14,564.00 $26,677.92 $320,134.99 FY 2029-2030 $12,598.48 $15,278.74 $27,887.22 $334,646.59 FY 2030-2031 $13,102.42 $16,052.42 $29,154.84 $349,858.10 FY 2031-2032* $13,626.52 $16,857.30 $30,483.82 $365,805.86 FY 2032-2033* $14,171.48 $17,705.88 $31,877.36 $382,528.27 FY 2033-2034* $14,738.44 $18,600.38 $33,338.82 $400,065.89 FY 2034-2035* $15,327.98 $19,543.82 $34,871.80 $418,461.57 FY 2035-2036* $15,941.10 $20,538.95 $36,480.05 $437,760.59 TOTAL $3,608,626.26
* Renewal period.
*** Monthly staff and ancillary costs may fluctuate depending on staffing levels and attrition but will not exceed this amount.
Note: Amounts may not foot due to rounding.
Other costs that will be included in the ongoing fiscal impact will include maintenance contracts, repair and maintenance, utilities, and other building operation costs which are bei ng included as part of the City Manager’s fiscal year 2026-27 proposed budget.
ATTACHMENTS
1. Property Management Agreement with Ryan Companies US, Inc.
Staff Contact: Scott Dickson, Real Property Manager
Tiffany Allen, City Manager