SR 12-06-2016 3G
Ci ty Council
Report
City Council Meeting : December 6, 2016
Agenda Item: 3.G
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To: Mayor and City Council
From: Andy Agle, Director , Housing and Economic Development, Housing Division
Subject: Sixth Modification of Property Management Contract with Real Estate
Consulting and Services, Inc.
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
e xecute a sixth modification to C ontract #9183 in the amount not to exceed $281,571,
including a ten percent contingency, with Real Estate Consulting and Services, Inc., a
California -based compan y, to provide property management services at City -owned
Mountain View Mobile Home Park. The proposed amendment would result in an eighty -
seven month amended contract with a new total contract amount not to exceed
$3,694,887, and would extend the contract term for six months through June 2017.
Executive Summary
Real Estate Consulting and Services, Inc. (RECS) provides property management
services for Mountain View Mobile Home Park (MVMHP), a City -owned mobile home
park community with 105 rental spaces for affordable housing. Staff recommends
extending the contract for an additional six months through June 2017 resulting a an
eighty -seven month total contract term to provide consistent property management until
anticipated transfer of MVMHP to a new owner by June 2017. The increase in contract
budget of $281,571 includes management fees, estimated operating expenses for a six -
month period, and a standard ten percent contingency.
Background
A professional service agreement with RECS was first approved by Coun cil on March 9,
2010 (Attachment A) to provide property management services for MVMHP. On
September 13, 2011 (Attachment B), Council approved a second modification,
consolidating property management services with RECS for four City -owned residential
proper ties. RECS has performed well, demonstrating expertise in property management
services, familiarity with City rental regulations, and professionalism in their
communications with residents. Recognizing the benefits residents have from a provider
with a loc al presence, Council approved the third modification on June 11, 2013
(Attachment C) extending contract services through June 2015, and a fourth
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modification on April 28, 2015 (Attachment D) extending contract services with RECS
through December 2016. On M arch 1, 2016, Council approved the fifth modification
(Attachment E) to increase the contract budget due to unanticipated capital repairs and
additional property management services.
On April 12, 2016, Council authorized the issuance of a Request for Propo sal (RFP) to
solicit proposals from affordable housing organizations to acquire and operate MVMHP
as affordable housing. The RFP was issued on September 28, 2016, and transfer of the
property is anticipated to occur by June 2017.
Discussion
The scope of p roperty management duties that RECS currently performs covers all
necessary routine functions, including: handling day -to -day operations; supervision and
coordination of maintenance and repair contracts; payment of all operating expenses
such as utilities, maintenance, repairs and fees; occupancy responsibilities, including
leasing and rent collection. City’s Housing staff provides direct oversight of RECS to
ensure effective and efficient management of the City properties, including conferring
with RECS we ekly and reviewing monthly status reports.
Mountain View Mobile Home Park is a unique property with a varied mix of homeowners
and renters. To comprehensively understand the concerns and expectations of all
residents and incorporate comments and feedbac k into the RFP, staff facilitated three
open forums with MVMHP residents and presented the draft RFP at a Housing
Commission meeting, over a five -month period. The review and comment period
garnered valuable feedback for the RFP, but delayed issuance of th e RFP, and
correspondingly, the anticipated transfer of MVMHP. Therefore, staff recommends
extending the existing property management contract with RECS for an additional six
months through June 2017, which would allow for continuity of services through th e
anticipated transfer period. The current contract expires on December 31, 2016. The
projected budget is a 21% increase over the previous period. Major contributors to the
increase include modernization of pool plumbing and electrical systems, increase in
utility costs, and repairs and maintenance due to vandalism to the irrigation and
drainage systems along the frontage of the property.
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Financial Impacts and Budget Actions
The contract modification to be awarded to RECS is $281,571, for an amended contra ct
total not to exceed $3,694,887. Funds are available in the FY 2016 -17 budget in the
Housing and Economic Development Department. The contract will be charged to
account 01264.533220.
Prepared By: Ava Lee, Senior Development Analyst
Approved
Forwarde d to Council
Attachments:
A. March 9, 2010 Staff Report
B. Septe mber 13, 2011 Staff Report
C. June 11, 2013 Staff Report
D. April 28 , 2015 Staff Report
E. March 1, 2016 Staff Report
F. Written Comments
1
Vernice Hankins
From:Cris Mac <crismac11111@gmail.com>
Sent:Tuesday, December 06, 2016 1:56 PM
To:councilmtgitems
Subject:City Council Meeting 12/06/2016 Agenda item 3-G
Dear Councilors, REC&S is a misuse of Public funds, they should be paid half of what they get.
They are never present, only do maintenance when something like this contract renewal is happening, or the RFP walk
around etc.
The contract calls for the park manager to be paid $95: per ‐hour, a lot of money for someone who is no t present. A time
clock would help fix this hemorrhage of City Funds, so that the hrs of operation are actually in operation etc Cris McLeod
MVMHP INC Secretary/ PNA Chair
Item 3-G
12/06/2016
Item 3-G
12/06/2016
1
Vernice Hankins
From:mickey475@juno.com
Sent:Tuesday, December 06, 2016 3:42 PM
To:councilmtgitems
Subject:Vote no on item 3G/management at 1930 Stewart St.
Dear Councilmembers:
I do not support Item 3G which is an extension of Contract 9183 with Real Estate Consulting and Services Inc ‐ for
management at 1930 Stewart St.
I believe an audit should be done of the large amounts of money they supposedly spend. One drive through this park
should cause one to question the yearly park maintenance fees in the 10's of thousands.
Thank you
Michele Cole
____________________________________________________________
Warning: Don't Use Probiotics Before You See This Gundry MD
http://thirdpartyoffers.juno.com /TGL3131/58474cd5ee5654cd512edst01vuc
Reference:
Modify Contract No. 9183
(CCS)