City Council Agenda Report
Meeting Date: May 19, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Dulce Gonzalez, Management Analyst
Subject
Services Agreement with Superior Management and Realty Services, Inc. for Residential Property Management Services
Recommendation
Approve and authorize the City Administrator, as Housing Commission Director, to execute a Services Agreement with Superior Management and Realty Services, Inc. (Superior), in substantially the same form as submitted, for Residential Property Management Services for a total amount not-to-exceed $96,000.00, for a one (1) year term.
Background
The City owns and operates 26 rental housing units subject to California Fair Housing regulations, U.S. Department of Housing and Urban Development (HUD) requirements, and various tenant protection statutes. These laws have undergone substantial and frequent changes in recent years. Remaining current with applicable requirements demands specialized expertise in property management, compliance auditing, rent-setting protocols, income certification, and tenant relations.
Housing management functions have historically been administered in-house by the Housing Division within the Public Works Department (Department). The increasingly complex state and federal housing regulatory environment, however, now presents compliance risks that in-house administration alone cannot adequately mitigate. Following an internal review and consultation with the City Attorney's Office, the Department determined that contracting professional property management services are essential to ensure continuous regulatory compliance, reduce legal and financial exposure, and provide tenants with consistent, impartial, and professional service.
On September 10, 2025, the Vernon Housing Commission (VHC) authorized the Commission Director or their designee, to solicit proposals for property management services. Subsequently, pursuant to Vernon Municipal Code (VMC) Section 3.32.080, the City issued a Request for Proposals (RFP) for Residential Property Management Services through PlanetBids on November 18, 2025 and again on January 13, 2026. On both occasions, proposals received were evaluated by a panel of qualified staff, however, a selection was not made, as the proposals did not align with the City’s needs, expectations and/or budget. An RFP for Residential Property Management Services was again issued on February 24, 2026. The solicitation closed on March 11, 2026, yielding two responsive proposals. Proposals were evaluated by a panel of staff from Public Works and City Administration based on qualifications and responsiveness to the City's requirements. The firm with the top rating, Superior Management and Realty Services, Inc. (Superior) was invited to interview with the rating panel.
Following the proposal evaluations and interview, Superior was identified as the most qualified firm to oversee day-to-day operations and ensure regulatory compliance related to property management of the City-owned housing stock. Superior possesses the requisite professional experience and regulatory knowledge to provide the desired residential property management services.
At its Special meeting on April 28, 2026, the Vernon Housing Commission (VHC) received a report from staff regarding the Superior proposal. VHC Commissioners asked questions of staff and Superior (in attendance at the meeting) regarding cost and service delivery. The VHC deliberated on whether a third-party property management company would meet the service standards expected by Vernon residents. At the meeting, City staff and Superior assured the VHC that the following would be addressed:
• Timely response to resident issues
• Legal compliance with current housing laws
• Resident introductions to property management team
• Gentle transition to online issue reporting system with training available for residents • Multiple communication channels to connect with property management team • Constant coordination between City staff and property management team to ensure highest levels of customer service
• Coordination of in-house and third-party maintenance teams for efficiency and cost effectiveness
After thorough discussion, the VHC recommended that City Council approve the proposed Services Agreement with Superior. The Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $96,000. Sufficient funds are available in the General Fund, Public Works Department, Facilities Maintenance, Professional Services - Other Account No. 011-040-415-529215 for the remainder of current fiscal year and is budgeted in the subsequent year.
Attachments
1. Superior Management and Realty Services, Inc. Services Agreement