Item 316/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing Department
Date: 9/9/2025
Subject: Approval of an agreement with Silverstone Property Management Company to provide comprehensive property management services for the Central Cities Navigation Center. (Cost: Not to exceed $100,000/year) (Action Item)
OBJECTIVE
For the City Council t o approve an agreement with Silverstone Property Management Company (SSPM) in the amount of $100,000, for comprehensive property management services, for the Central Cities Navigation Center located at 13871 West Street, Garden Grove, CA 92843.
BACKGROUND
The property for the Central Cities Navigation Center (CCNC ) was acquired by the City of Garden Grove in November 2022 to establish a low -barrier transitional emergency shelter providing comprehensive wrap-around services to homeless individuals in Orange County's Central Service Planning Area. The CCNC opened in June 2024. To ensure proper oversight of the property, including daily facilities management, as well as maintenance and emergency repair services on an as -needed basis, the City determined that a commercial property management firm was necessary to meet the Center’s operational and ownership objectives.
To that end, the City issued a formal Request for Proposals (RFP -GPM-No. 2401) to solicit comprehensive property management services. The scope included, but was not limited to, operational oversight, financial reporting, procurement, maintenance, and 24/7 on -call availably and repair services.
In July 2024, Silverstone Prope rty Management (SSPM) was selected for a 6 -month pilot agreement valued at $50,000, based on their property management experience, particularly with another homeless shelter . During this pilot period, SSPM demonstrated excellent performance by being proactive, highly responsive, and providing thorough monthly reports to the City. In January, the City approved an amendment for an additional 6-month term to complete the full fiscal year, bringing the total combined annual cost to $100,000. Based on the pilot year results, staff confirmed that $100,000 is the appropriate annual budget required to address the on-going maintenance needs of the CCNC.
Item 316/2025
A formal RFP was completed in 2024, through which SSPM was competitively selected. Since then, SSPM has been providing critical service for the CCNC, including facility management, routine inspections, emergency repairs, 24/7 on -call availability. More importantly, SSPM developed a strong working relationship with the Center operations staff and internally manages and tracks all financial transactions.
DISCUSSION
Entering Fiscal Year 2025–26, given the specialized nature of the CCNC, continuity of service is critical due to the Center’s daily operations and nature of its clientele. Transitioning to a potential new vendor would risk disruption of emergency response capacity, delay in urgent repairs, and potential loss of institutional knowledge SSPM has built over the past year. For these reasons, the City finds it is in the “Best Interest of the City” to continue servi ces with SSPM through June 30, 2026 , with the option to extend the agreement for up to four (4) additional one-year terms.
FINANCIAL IMPACT
There is no fiscal impact on the General Fund. Funding for property management services has been included in for the CCNC operations budget, and no additional appropriation is required.
RECOMMENDATION
It is recommended that the City Council:
Approve to dispense of the bidding process per Municipal Code 2.50.060 (G) in the best interest of the City;
Approve the agreement with Silverstone Property Management Company in the not to exceed amount of $100,000 per year, to provide comprehensive property management services of the Central Cities Navigation Center; Authorize the City Manager, or designee(s), to execute the agreement and make minor modifications, on behalf of the City, as appropriate thereto; Authorize the City Manager, or designee(s), to execute any amendments, or option years specified in the agreement, on behalf of the City.
By: Christy Le, Administrative Analyst
ATTACHMENT
Silverstone Agreement FY25-26