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
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
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