REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to the Agreement with Orchard Commercial, Inc. for Property Management Services for the Santa Clara Convention Center Complex located at 5001, 5101, and 5201 Great America Parkway
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure.
BACKGROUND
The Department of Public Works is responsible for administering and coordinating the ongoing maintenance of the Santa Clara Convention Center Complex (Maintenance District No. 183). Maintenance obligations include items such as parking lots, landscaping, electrical, painting, janitorial, water fountain, security, and parking control.
In 2016, the City entered into an agreement with Orchard Commercial, Inc. (OCI) for property management services at the Santa Clara Convention Center Complex. OCI was selected through a competitive Request for Proposal (RFP) process.
DISCUSSION
OCI has been providing property management services for the Santa Clara Convention Center Complex (SCCC) since 2016. The initial term of the original Agreement with OCI was for three years, with an expiration date of July 31, 2019. The original Agreement and Agenda Report are included as Attachments 1 and 2. In July 2019, Council approved Amendment No. 1 to extend the Agreement for an additional two years, bringing the new expiration date to July 31, 2021. Amendment No. 1 and the related Agenda Report are included as Attachments 3 and 4.
Staff is recommending a one-year extension to the existing Agreement with OCI for continued property management services. Staff is currently working on seven solicitations for the SCCC site for services such as as-needed parking, electrical maintenance and repair, sweeping, janitorial, landscaping, and fountain maintenance that are set to term out prior to June 30, 2022. If new vendors are selected, OCI’s oversight, expertise and continuity of service will allow us to onboard new vendors and provide necessary training and guidance. Staff will conduct a new RFP process with sufficient time to transition to a new vendor prior to the expiration date of this Amendment. OCI has agreed to not increase their base management fee of $6,450 per month during the one-year extension period. OCI has been performing well under the current agreement and the Convention Center Maintenance District partners are supportive of a one-year extension.
ENVIRONMENTAL REVIEW
The action being considered is not a project subject to CEQA review according to section 15378(b)(2) of the CEQA Guidelines, as property management services are a continuing maintenance activity.
FISCAL IMPACT
The current not-to-exceed compensation with OCI is $395,518, including contingency. The proposed not-to-exceed compensation to be paid to OCI under Amendment No. 2 is $77,400. This will increase the total not-to-exceed compensation amount to $472,918, subject to budget appropriation. These costs were included in the Maintenance District No. 183 Proposed FY 2021/22 and FY 2022/23 Operating Budgets.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute Amendment No. 2 to the Agreement with Orchard Commercial, Inc. for property management services to increase the amount of the agreement by $77,400 and to extend the term of the agreement through July 31, 2022 for a revised not-to-exceed maximum compensation of $472,918, subject to the appropriation of funds.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Original Agreement
2. Agenda Report for Original Agreement
3. Amendment No. 1
4. Agenda Report for Amendment No. 1
5. Amendment No. 2