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item 11 Award a contract to Silverstone Property Management Company to provide comprehensive property, facilities, and project management services for the city-owned property located at 11277 Garden Grove Blv

Garden Grove City Council
December 10, 2024

Document
item 11 Award a contract to Silverstone Property Management Company to provide comprehensive property, facilities, and project management services for the city-owned property located at 11277 Garden Grove Blv
Meeting
December 10, 2024
Body
Garden Grove City Council
Pages
3
Original file
232 KB
Text extracted from the city's file for reading and search. Open the original on agendasuite.org. That file is the official record.

Item 509/2024
Final

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Ursula Luna-Reynosa
Dept:

City Manager Dept: Economic Development and
Housing

Date: 12/10/2024

Subject: Award a contract to Silverstone Property Management Company to provide comprehensive property, facilities, and project management services for the city-owned property located at 11277 Garden Grove Blvd. (Cost: $50,000) (Action Item)

OBJECTIVE

To award a contract to Silverstone Property Management Company (SSPM) for the provision of comprehensive property, facilities, and project management services for the city -owned Purcell Building located at 11277 Garden Grove Boulevard (“Property”).

BACKGROUND
On July 12, 2022, the City Council approved the purchase of the Property, a two-story office building with approximately 16,000 square feet per floor. The Property provides office space for City tenants, including:
 Garden Grove Housing Authority
 Garden Grove Police Department
 Garden Grove Emergency Operations Center
 Garden Grove Channel 3 TV
Additionally, the Property includes leased tenants, such as Be Well OC, OC Wellness Center, and Clark Construction.

To ensure proper oversight of the property, including day-to-day management, maintenance, and future improvements, a commercial property management firm is necessary to address the City’s operational and ownership objectives.

DISCUSSION

The City issued a formal Request for Proposals (R FP-GPM-NO.2401) via PlanetBids to solicit comprehensive real estate services for the Property. The scope included, but was not limited Item 509/2024

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to, operational oversight, financial reporting, procurement, maintenance, repair, and project management services. Three firms submitted proposals, which were evaluated by a selection panel consisting of representatives from the Economic Development and Finance Departments. The evaluation criteria included:
 Relevant experience and qualifications
 Ability to perform the required scope of services
 Financial reporting capability
 Maintenance and repair management expertise
 References and oral interviews
Silverstone Property Management Company (SSPM) demonstrated qualifications to meet the City’s criteria. Reference checks confirmed their expertise in managing similar properties.

Under the proposed agreement, SSPM Scope of Services will provide:

1. Property Management Services: Day -to-day operational management, budget preparation, monthly statements, routine inspections, and security oversight.

2. Facilities Management Services: Maintenance and repair of building systems (HVAC, plumbing, electrical, and mechanical), janitorial services, grounds keeping, waste disposal, and emergency response planning.

3. Project Management Services: Oversight of tenant improvement projects, including building code compliance, zoning, planning, and environmental due diligence. Notably, this includes the procurement and installation of a new HVAC system planned for spring 2025.

FINANCIAL IMPACT
Funds are available and will be expended from the Real Property Account (212 -715-1000- NC1348000) in the FY 24 -25 Economic Development and Housing Department operational budget. No additional appropriations are needed at this time.

The annual property management cost is $15,000. Additional project management and on - call repair costs, up to $35,000, may be incurred. The total contract amount is not-to-exceed (NTE) $50,000 per year.

RECOMMENDATION
It is recommended that the City Council:
 Award a contract to Silverstone Property Management Company (SSPM) in the amount of $50,000.00, to provide property management and project management services for the city-owned Purcell Building located at 11277 Garden Grove Boulevard; and

Item 509/2024

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 Authorize the City Manager or designee to execute the agreement, additional option years, amendments, and make minor modifications as necessary, on behalf of the City.

By: Greg Blodgett, Deputy Director
Alana Cheng, Administrative Officer

ATTACHMENT(S)

1. Silverstone PM Proposal - 11277 Garden Grove Blvd

2. Silverstone Property Management Agreement. 12.10.24

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