Title
Recommendation to Authorize the Interim City Manager to Execute the Second Amendment to the Sub-Management Agreement with Cerda Zein Real Estate, for an Additional Four-Month Term, for Residential Property Management Services at Alameda Point. (Base Reuse and Economic Development 29061821)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
Cerda Zein Real Estate (CZRE), provides residential property management services for sixty-seven (67) City of Alameda-owned market rate residential units at Alameda Point, located between Main Street and Pan Am Way, and north of West Midway Avenue, under an existing Sub-Management Agreement (Agreement), overseen by the City of Alameda’s (City) commercial property manager, LPC West LP (LPC). The CZRE Agreement expires on April 30, 2026 (Exhibit 1).
Staff recommends that the City extend the existing agreement for four additional months with no changes to the compensation structure, while staff completes a competitive public process to select a provider and negotiate a new multi-year agreement for residential property management services.
BACKGROUND
LPC is the City’s primary commercial property manager. In addition to commercial property management, LPC oversees various sub-contracts on behalf of the City, including the supervision of the City’s current residential property management company, CZRE, through a “sub management agreement.” The City executed a new commercial property management agreement with LPC West in July 2025, and this agreement was necessary for the City to commence a competitive residential property management services request for proposal, which is currently publicly posted.
The City previously competitively bid residential property management services in 2022 and selected CZRE to provide services under a sub-management agreement overseen by the City’s commercial property manager. The sub-management agreement’s three-year term expired in April 2025, and City Council authorized a First Amendment with a one-year extension through April 30, 2026. CZRE was selected at the time, in part, due to their familiarity with the Alameda residential rental market, rental and housing laws, and standard residential property management procedures.
Under the terms of the current sub-management agreement, CZRE’s compensation for residential property management services is calculated based upon a percentage-fee of gross rental income, commission, and hourly rates, including:
• Property Management: 8% of gross rental income or $100 per unit, whichever is greater.
• Regular Maintenance: $65 per hour during regular business hours (9 AM to 5 PM Monday through Friday); $97.60 per hour overtime, plus materials.
• Leasing Commission Fee: 30% of one month’s rent.
• Project Management Coordination: 10% of final invoice for project management coordination beyond regular routine maintenance.
• Other reimbursements or ongoing expenses, as agreed to.
Historic annual compensation for CZRE is as follows:
• Fiscal Year 2022-23: $145,775.69
• Fiscal Year 2023-24: $166,522.43
• Fiscal Year 2024-25: $224,306.34.
• Fiscal Year 2025-26: As of December 2025, CZRE’s fees to date are $116,618.12, including project management fees.
CZRE provides all aspects of residential property management, including the collection of residential lease revenues on the City’s behalf, the completion of work orders for routine maintenance, and the turnover and leasing of vacant units.
The 67 City-owned market rate residential units at Alameda Point provided total revenue, before expenses of $998,150.50 from the start of Fiscal Year 2025-26 through December 31, 2025.
DISCUSSION
A four-month extension of the CZRE sub-management agreement will provide time to complete the competitive public procurement process necessary to negotiate a new contract for residential property management services.
On February 6, 2026, staff issued a public Request for Proposals (RFP) for residential property management services at Alameda Point. At the completion of the RFP process staff will seek City Council approval for a new, long-term agreement with the successful proposer. A four-month extension on the existing agreement with CZRE maintains continuity of service with the City’s experienced provider, while the RFP process is completed.
Staff recommends extending the existing agreement for four additional months, with no change to the existing compensation structure. Due to the nature of the compensation structure, the sub-management agreement does not include a not-to-exceed amount.
ALTERNATIVES
• Authorize the Interim City Manager to execute the Second Amendment to the Service Provider Agreement with CZRE for an additional four-month term.
• Direct staff to negotiate different terms and authorize the Interim City Manager to execute an agreement that includes such terms, if acceptable to CZRE. City Council should provide specific direction for acceptable terms in this case. This may also result in a disruption of service if CZRE does not agree.
• Do not authorize a Second Amendment to the Service Provider Agreement for residential property management services at Alameda Point. This will cause a disruption in residential property management services and staff work on other assignments will be delayed.
FINANCIAL IMPACT
The proposed Second Amendment would be paid out of budgeted funds from the Base Reuse and Economic Development Department Alameda Point Rental - Residential (29061821) and are deducted from residential rental income. This proposal would have no impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code, and the City’s Strategic Plan Priorities to attract and retain Alameda Point businesses. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required. Additionally, in accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15061 (Common Sense).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the Interim City Manager to execute the Second Amendment to the Sub-Management Agreement with Cerda-Zein Real Estate, for an additional four-month term, for residential property management services at Alameda Point.
Respectfully submitted,
Abby Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alexis Krieg, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Sub-Management Agreement and First Amendment
2. Proposed Second Amendment