TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
SUBJECT: Agreement with Bell
Properties, Inc. for
Professional Property
Management Services
DATE: July 20, 2026
Approved
Date:
7/28/26
COUNCIL DISTRICT: Citywide
RECOMMENDATION
Adopt a resolution authorizing the Housing Director, or his designee to:
(a) Negotiate and execute an agreement, amendments, modifications, extensions, and all related documents necessary with Bell Properties, Inc., for professional property management services for the City of San José’s Shelter Portfolio locations for an initial 10-month term beginning on or about September 1, 2026 through June 30, 2027, for compensation not to exceed $5,220,080; and
(b) Exercise up to three additional one-year options to extend the term of the agreement, subject to the appropriation of funds.
SUMMARY AND OUTCOME
This memorandum provides the City Council with recommended actions that will allow the Housing Director, or his designee, to negotiate and execute an agreement and all related documents with Bell Properties, Inc. (Bell Properties) for professional property management services.
Authorizing the Housing Director, or his designee, to take these actions will enable the Housing Department (Department) to centralize property maintenance services across the City’s Shelter Portfolio (SP) sites. These actions will support the continued operation of SP sites by providing routine and preventive maintenance, janitorial services, emergency repairs, landscaping, pest control, and other facility maintenance services COUNCIL AGENDA: 8/11/26
FILE: 26-837
ITEM: 7.1
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
necessary to maintain a safe, functional, and habitable environment for residents and staff.
BACKGROUND
Over the past several years, the Department has significantly expanded its SP in response to the homelessness crisis, reaching 22 sites in Fiscal Year 2025-2026. As the City’s SP has grown, the Department has shifted its focus toward developing a centralized operational model that supports long-term fiscal sustainability and improves preventive maintenance planning, emergency repair response, asset preservation, and property oversight across the SP system. Through a comprehensive cost analysis conducted during Fiscal Year 2025-2026, the Department identified the potential to reduce annual costs by up to 20% by consolidating property management services from individual service providers to a centralized property manager. Although cost savings are estimated to be less than 20% in Fiscal Year 2026-2027 due to the phased transition plan discussed further below, full cost savings at that level are anticipated to be realized in future fiscal years.
The Department conducted a competitive request-for-proposals process to identify a qualified contractor to provide professional property management services for the SP.
Following an evaluation of five proposals received in accordance with the criteria established in the Request for Proposals, Bell Properties was selected as the most qualified candidate to provide centralized property management services.
ANALYSIS
Operational Efficiency and Cost Savings
Centralizing property maintenance operations will create more consistent service levels, response times, and performance standards. It will improve preventive maintenance, unit turnover, emergency response, and oversight through shared staffing, work-order tracking, and standardized reporting. Centralization will also reduce duplicative administrative and vendor costs while creating purchasing efficiencies. This structure will allow social service providers to focus more fully on participant services rather than property and facility maintenance.
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
Portfolio Transition and Implementation
Beginning October 1, 2026, Bell Properties will assume responsibility for centralized property management and maintenance services across 15 SP sites through a phased implementation process, with Bell Properties assuming full responsibility of the portfolio by December 1, 2026. Table 1 below provides site details and transition schedules for each site.
The remaining six motel-based shelter sites, Alura Hotel, Bristol Hotel, Casa Linda, Fontaine Inn, Motel 6, and the Motel Voucher Program at 1560 N First Street, as well as the Navigation Center, are not included within the scope of this agreement. The motel- based sites are excluded because the City does not own the leased facilities, and responsibility for building maintenance remains with the respective property owners under the terms of the lease agreements. The Navigation Center is excluded because operations at the facility are scheduled to conclude by the end of calendar year 2026.
Prior to the first properties transitioning to Bell beginning October 1, 2026, Bell Properties will conduct comprehensive site assessments, establish preventive maintenance schedules, develop site-specific maintenance plans, implement a centralized work order and dispatch system, and coordinate closely with each service provider to ensure continuity of shelter operations.
Under the agreement, Bell Properties will provide routine and preventive maintenance, emergency minor repairs, unit turnover services, janitorial services, groundskeeping and landscaping, pest and rodent control, asset management and deferred maintenance tracking, and other facility maintenance services necessary to maintain safe, functional, and well-maintained shelter facilities. Bell Properties will provide comprehensive, full- service facility maintenance and operations support through a centralized maintenance management system that allows the City and site operators to submit maintenance requests and track work orders from initiation through completion.
The system will provide real-time updates on work order status, response times, maintenance activities, and service history. Preventive maintenance inspections of HVAC, plumbing, electrical, fire and life safety systems, building exteriors, and other critical infrastructure will help reduce equipment failures, preserve City assets, and minimize operational disruptions. Standardized unit turnover procedures will include cleaning, repairs, inspections, and quality assurance to minimize vacancy periods and ensure each unit meets established habitability standards before occupancy. Capital improvements will remain the responsibility of the City’s Public Works Department and are not included within the scope of this agreement.
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
Bell Properties proposes hiring three maintenance supervisors and 26 maintenance technicians. Supervisors will float between sites, and one to two maintenance technicians will be stationed at each site daily.
Table 1: Fiscal Year 2026-2027 Bell Properties Site Portfolio Site Name Location Unit
Capacity
Type of Building Transition to
Bell Properties
by
1) Rue Ferrari 5898
Rue Ferrari
190 Single and double occupancy modular
pods with en-suite restrooms, shared
kitchen/office/laundry modular buildings
Oct 1
2) Monterey/
Bernal
6066
Monterey Road
78 Single occupancy modular pods with
en-suite restrooms, shared
kitchen/office/laundry modular buildings
Oct 1
3) Via del Oro 6370
San Ignacio
135 Single occupancy modular pods, shared
kitchen/restrooms/office/laundry
modular buildings
Oct 1
4) Santa Teresa
Safe Parking
6360
Santa Teresa
Boulevard
42 RV parking spots, Conex Box office
building
Oct 1
5) Branham 1 Branham Lane 168 Multi-level (three floors) buildings.
Single, double, and flex
(multigenerational families) units, with
en-suite restrooms and kitchens.
Shared laundry/community rooms and
office.
Oct 1
6) Cherry
Avenue
5200
Cherry Avenue
130 Single and double occupancy modular
pods, shared
kitchen/restrooms/office/laundry
modular buildings
Nov 1
7) Plaza Hotel 96 S. Almaden
Avenue
43 Hotel building with 43 rooms, communal
bathrooms/showers
Nov 1
8) Pacific Motor
Inn
455 S. Second
Street
72 Motel building refurbished as shelter,
Single occupancy rooms only
Nov 1
9) Guadalupe 702 Guadalupe
Parkway
96 Single occupancy modular pods with
en-suite restrooms, shared
kitchen/office/laundry modular buildings
Nov 1
10) Arena Hotel 817 The Alameda 89 Hotel building refurbished as shelter, single and double occupancy rooms,
outdoor space developed in parking lot
Nov 1
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
Site Name Location Unit
Capacity
Type of Building Transition to
Bell Properties
by
11) Felipe 928 Felipe Avenue 39 Single occupancy modular pods, shared kitchen/office/laundry modular buildings
Dec 1
12) Evans Lane 2078 Evans Lane 48 Family-sized modular pods with en- suite restrooms, shared
kitchen/office/laundry modular buildings
Dec 1
13) Berryessa
Safe Parking
1300 Berryessa
Road
86 RV parking spots, shared office,
laundry/restroom, modular buildings
Dec 1
14) Mabury 1410 Mabury
Road
38 Single occupancy modular pods, shared
kitchen/office/laundry modular buildings
Dec 1
15) Cerone 3950 Zanker Road 162 Single and double occupancy modular pods, shared
kitchen/restrooms/office/laundry
modular buildings
Dec 1
Total units: 1,416
EVALUATION AND FOLLOW-UP
During Fiscal Year 2026-2027, the Department will closely monitor implementation of the centralized property management model and evaluate its operational and fiscal performance across the SP. Staff will track key performance indicators, including maintenance response times, preventive maintenance completion, work order trends, unit turnover timelines, administrative workload, contractor performance, and overall maintenance expenditures.
The Department will also conduct a comprehensive cost analysis comparing the centralized property management model to the previous decentralized approach, including evaluation of realized operational efficiencies, administrative cost reductions, and impacts on service provider operations. Findings from this evaluation will be reported to the City Council and will inform future recommendations regarding continuation, expansion, or modification of the centralized property management model for Fiscal Year 2027-2028 through the annual budget and contracting process.
FISCAL IMPACTS
The action recommended in this memorandum will authorize the Housing Director, or his designee, to negotiate and execute an agreement with Bell Properties for centralized property management and maintenance services across the Department’s SP, for an initial 10-month term beginning on or about September 1, 2026 through June 30, 2027,
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
at compensation not to exceed $5,220,080. A total of approximately $6.1 million is budgeted in 2026-2027 for property management in the existing service provider agreements for the 15 sites that will be covered by the proposed agreement. Due to the phased transition plan, where Bell Properties will commence property management activities between October and December, property management services will be covered by the existing service agreements until the transition to Bell Properties is complete at each site. As each site transitions, the remaining budget for property management services will be liquidated from the existing service provider agreements and reallocated to the Bell Properties agreement, as needed, up to the not-to-exceed contract amount of $5,220,080. The total 2026-2027 property management expenditures will remain within the existing approximately $6.1 million budget, and no additional appropriation adjustments will be required. Any budgeted funds remaining after the transition that are not needed for the Bell Properties agreement will remain unspent and result in cost savings. The term of the contract is five years, subject to four additional one-year options and the appropriation of funds in the applicable fiscal year.
Future option-year extensions will continue to be funded through the same reallocation mechanism from existing service provider agreements, subject to future budget appropriations in each applicable fiscal year.
BUDGET REFERENCE
The table below identifies the fund and the appropriations to support the contract recommended in this memorandum.
Fund
#
APPN
#
Appropriation
Name
Total
APPN
Amt. for
Contract
2026-2027
Proposed
Budget
Page
Last Budget
Action (Date,
Ord. No)
404 230G
Interim
Housing
Construction
and Operations
(15% HSP)
$51,750,000 $5,220,080 944 06/16/2026
*The 2026-2027 Proposed Operating Budget was approved on June 9, 2026, and adopted on June 17, 2026, by the City Council.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
HONORABLE MAYOR AND CITY COUNCIL
July 20, 2026
Subject: Agreement with Bell Properties Inc. for Professional Property Management Services
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the August 11, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Erik L. Soliván
Housing Director
For questions, please contact Monica Velarde, Senior Analyst, Housing Department, at [email protected] or (408) 795-1808.