CED Committee
October 24, 2023
AGENDA REPORT
TO: Jestin D. Johnson FROM: Sofia Navarro
City Administrator Interim Director, Economic
and Workforce
Development Department
SUBJECT: On-Call Appraisal, Title and Escrow
Contracts
DATE: September 29, 2023
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt A Resolution Authorizing The City Administrator To Negotiate And Execute Seven (7) On Call Professional Service Agreements For Real Estate Appraisal, Title And Escrow Services In Amounts Not To Exceed Five Hundred Thousand Dollars ($500,000) Per Vendor, Totaling Three Million Five Hundred Thousand Dollars ($3,500,000) For All Vendors Combined Over A Five-Year Term, With Bender Rosenthal Inc., Colliers International, Yovino-Young Inc., Integra Realty Resources, Valbridge Property Advisors, Chicago Title Company and Old Republic Title Company
EXECUTIVE SUMMARY
The proposed resolution would authorize professional service agreements with seven (7) vendors that provide appraisal, title and escrow services, each of which are essential to participation by the City of Oakland (City) in real estate transactions. The resulting agreements would be for a period of five years and allow for expenditures of up to $500,000 per vendor and $3.5 million in aggregate. The five appraisal and two title/escrow vendors were selected pursuant to competitive requests for proposals/qualifications. The resolution would establish a set of on-call contracts from which City real estate staff can procure services on an as-needed basis in support of all City departments. Funding would be provided by the department or project requiring the service. While no certified local or small local businesses are currently providing these services in Oakland, the City’s Real Estate Division will work closely with the Department of Workplace & Employment Standards and the awarded bidders to encourage potential partnerships if new local or small local businesses are certified during the five-year contract period.
BACKGROUND / LEGISLATIVE HISTORY
The City's Real Property Asset Management Division (Real Estate Division) of the Economic and Workforce Development Department administers professional service contracts for real property appraisal, title and escrow services. Appraisal services are used to determine the fair Oct 12, 2023
Jestin D. Johnson, City Administrator
Subject: On-Call Appraisal, Title and Escrow Contracts
Date: September 29, 2023 Page 2
CED Committee
October 24, 2023
market value of real property in which the City has some transactional interest and thereby ensure compliance with Oakland Municipal Code requirements governing the purchase, sale, and lease of real property. The title and escrow services are used to facilitate real property transactions to which the City is party, research and demonstrate property ownership, and related activities.
In 2015, City Council passed Resolution 85662 authorizing professional service agreements (PSAs) with multiple appraisal and title and escrow vendors selected through a competitive bid process to provide these services through June 30, 2020 in amounts not to exceed $750,000 per vendor and $3.75 million in aggregate. In March 2022 the City Administrator authorized PSAs with the appraisal firm Yovino-Young, Inc. and the title/escrow company Old Republic Title Company for amounts not to exceed $49,999.99 and with terms ending October 3, 2023.
Section 2.04.051.A of the Oakland Municipal Code requires the City conduct a competitive selection process for the award of professional services contracts that exceed Fifty Thousand Dollars ($50,000). Therefore, in July 2023 the Real Estate Division published a formal Request for Proposals/Qualifications (RFP/Q) for appraisal services and in August 2023 the Real Estate Division published a separate RFP/Q for title and escrow services. The City received nine (9) proposals for appraisal services and two (2) proposals for title and escrow services. Staff evaluated and scored each proposal and recommends that the City enter into PSAs with the following top-scoring vendors.
Appraisal firms
1. Bender Rosenthal, Inc. (Sacramento)
2. Colliers International (San Francisco)
3. Yovino-Young, Inc. (Oakland & Berkeley)
4. Integra Realty Resources (San Jose)
5. Valbridge Property Advisors (San Jose)
Title/escrow firms
1. Chicago Title Company (Oakland)
2. Old Republic Title Company (Oakland)
The Department of Workforce & Employment Standards (DWES) conducted availability analyses prior to issuance of the RFP/Qs and found that there are no certified local or small local businesses currently providing these services. Consequently, there will be no Local and Small Local Business Enterprise Program requirement under the proposed contracts.
However, if new local or small local businesses are certified during the five-year contract period the Real Estate Division will work closely with DWES and the awarded bidders to encourage potential partnerships with the new businesses.
ANALYSIS AND POLICY ALTERNATIVES
The proposed resolution will allow the City to efficiently procure appraisal, title and escrow services when they are needed by authorizing on-call contracts with five-year terms and ample contract maximums.
Each vendor offers a unique area of expertise to address a range of City real estate needs.
Having multiple vendors will provide redundancy so that multiple projects can advance concurrently and meet time-sensitive deadlines.
Jestin D. Johnson, City Administrator
Subject: On-Call Appraisal, Title and Escrow Contracts
Date: September 29, 2023 Page 3
CED Committee
October 24, 2023
Alternatively, City Council could reject the recommended resolution. The City would then have no available contracts for appraisal, title or escrow services. This would prevent the City from advancing many of its real estate projects, including projects to develop affordable housing and create emergency shelter programs.
Approval of the recommended resolution would advance the Citywide priority of housing, economic, and cultural security by enabling the City to advance a range of projects involving City participation in real estate transactions.
FISCAL IMPACT
The proposed resolution does not involve an appropriation or expenditure of any funds. Rather, it would create budget authority of up to $500,000 for each of the seven proposed PSAs up to a total of $3.5 million. All expenditures under the PSAs would be paid by the department or project that is requesting the real estate services using funds appropriated by City Council. The real estate services will be provided and funds expended only as needs and funding are identified.
PUBLIC OUTREACH / INTEREST
Notification of the RFP/Qs were published in the Oakland Tribune and the solicitations were open on iSupplier for several weeks. Real Estate staff held public information sessions for each of the solicitations prior to the deadline for proposals.
COORDINATION
The Real Estate Division coordinated on this agenda item with the Department of Workplace and Employment Standards, the Finance Department’s Contract Administration division and Budget Bureau, and the Office of the City Attorney.
SUSTAINABLE OPPORTUNITIES
Economic: The appraisal, title and escrow services will support real estate transactions involving the City and thereby enable affordable housing development, commercial and industrial development, activations of public space and provision of public services.
Environmental: There are no direct environmental impacts associated with providing the real estate services described herein.
Race & Equity: The real estate services support multiple equity-centered City activities, including the use of public land for affordable housing development, emergency shelter provision, and community activations.
Jestin D. Johnson, City Administrator
Subject: On-Call Appraisal, Title and Escrow Contracts
Date: September 29, 2023 Page 4
CED Committee
October 24, 2023
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Authorizing The City Administrator To Negotiate And Execute Seven (7) On Call Professional Service Agreements For Real Estate Appraisal, Title And Escrow Services In Amounts Not To Exceed Five Hundred Thousand Dollars ($500,000) Per Vendor, Totaling Three Million Five Hundred Thousand Dollars ($3,500,000) For All Vendors Combined Over A Five-Year Term, With Bender Rosenthal Inc., Colliers International, Yovino-Young Inc., Integra Realty Resources, Valbridge Property Advisors, Chicago Title Company and Old Republic Title Company
For questions regarding this report, please contact Brendan Moriarty, Real Property Asset Manager, at 510-238-6354.
Respectfully submitted,
SOFIA NAVARRO
Interim Director, Economic & Workforce
Development
Reviewed by:
Brendan Moriarty, Real Property Asset
Manager,
Economic & Workforce Development
Prepared by:
Tracy Irvin, Supervising Real Estate Agent,
Economic & Workforce Development