Item 135/2026
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: 4/28/2026
Subject: Approval of Amendment No. 1 with Silverstone Property Management Company to provide comprehensive property management services for the Central Cities Navigation Center during Fiscal Year 2025-26. (Cost: $100,000) (Action Item)
OBJECTIVE
To request City Council approval Amendment No. 1 with Silverstone Property Management Company ( Silverstone) for comprehensive property management services at the Central Cities Navigation Center (CCNC), located at 13871 West Street, increasing the total contract amount from $100,000 to $200,000 for the current term and all subsequent option years.
BACKGROUND
The 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. In July 2024, Silverstone was selected to provide compr ehensive property management under a pilot program based on their extensive property management expertise. Silverstone has demonstrated excellent service as they timely complete due diligence, are responsive , and actively provide thorough monthly reports to the City; as a result, the City executed another agreement in the amount of $100,000 with Silverstone in September 2025.
DISCUSSION
As we approach the end of the second year of operations, the CCNC has experienced typical facility wear and tear due to the high level of use by shelter residents and the nature of the services provided. The City has faced numerous maintenance requests, some of which have resulted in unforeseen costs. The following repairs hav e placed additional strain on the facility’s infrastructure, with unforeseen maintenance costs arising from continued heavy usage:
Item 135/2026
Electrical Work: Replacement of light bulbs and wall outlets inside the dormitories.
Laundry Equipment: Service and repairs to washers and dryers due to heavy use, with adjustments to laundry hours and detergent usage to minimize strain.
Plumbing Issues: Routine maintenance and Hydro Jet services to address plumbing backups from high usage of showers, toilets, and sinks. Miscellaneous Repairs: Wall damage, scuffs, and peeling paint in common areas were also repaired.
Silverstone’s agreement for fiscal year 2025 -2026 was allocated as follows: $50,800 for property maintenance and emergency repairs, and $49,200 for property and facility management fees. As of April 2026, the remaining balance for maintenance and repair services is $16,000. Based on a detailed review of monthly expenditures, staff has identified the need for an additional $100,000 to maintain facility func tionality and ensure ongoing upkeep.
It is important to note that a ddressing these issues is critical to meeting the County’s standards during their annual inspection. The most recent inspection, conducted on March 26, identified only minor concerns, whi ch highlights the value of having reliable property management services in place.
FINANCIAL IMPACT
The cost of Amendment No. 1 with Silverstone to provide comprehensive property management services for the Central Cities Navigation Center is $100,000. Additional appropriation in the amount of $100,000 is necessary . An additional appropriation of $100,000 is therefore required. This cost will be shared among the cities of Garden Grove, Fountain Valley, and Westminster in accordance with the Memorandum of Understanding executed by all three cities in November 2022.
RECOMMENDATION
It is recommended that the City Council:
Approve Amendment No. 1 with Silverstone Property Management Company, increasing the total contract amount from $100,000 to $200,000 for the current term and all subsequent option years;
Authorize the Finance Director to appropriate $100,000.00 to the Central Cities Navigation Center operating budget (GL: 260 -711-1210-51257, JL:
NC1368000); and
Authorize the City Manager, or designee(s), to execute the amendment, including additional option years, and make minor modifications as appropriate thereto, on behalf of the City.
By: Christy Le, Administrative Analyst
Item 135/2026
ATTACHMENT(S)
1. Property Management Meeting Summary
2. Silverstone Agreement FY 25-26
3. Silverstone Draft Amendment 1