Title
Recommendation to Ratify Service Provider Agreements between RiverRock Real Estate Group, as an Agent for the City of Alameda, and Patrol Solutions, LLC for Security Services for a Not to Exceed Amount of $304,012, Gothic Landscape, Inc. for Landscape Services a Not to Exceed Amount of $268,230, and Bay Ship & Yacht, Co. for Pier/Port Management Services for a Not to Exceed Amount of $800,404. (Community Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Since January 2017, RiverRock Real Estate Group (RiverRock) has provided and continues to provide property management services for certain real estate assets owned or controlled by the City of Alameda (City), including Tidelands Trust properties, Alameda Beltline, Alameda Point properties, Alameda Theater and its adjacent businesses, Carnegie Library, Grand Pavilion, and cell towers.
The property management agreement between RiverRock and the City provides RiverRock the authority to enter contracts as an agent of the City with the goal of allowing RiverRock to respond to property management needs as quickly as possible. However, the City Attorney’s office has determined that the contracting procedures followed by RiverRock until recently must be modified to ensure that RiverRock is in compliance with all applicable requirements of the City Charter, Alameda Municipal Code (AMC), and Purchasing Policy. This determination means, among other things, that all contracts entered into by RiverRock must be reviewed and approved in advance by the City Attorney’s Office. Additionally, contractual purchases of materials and services over $75,000 must be approved by City Council.
Community Development Department staff have implemented these changes to RiverRock’s contracting procedures on a go-forward basis. However, a few existing contracts previously entered into by RiverRock on the City’s behalf did not comply with these procedures and therefore require post-approval ratification by the City Council. Specifically, staff seeks ratification of three (3) agreements to provide particular services at Alameda Point, as follows: (i) agreement for security services with Patrol Solutions, LLC (Patrol Solutions) dated May 15, 2022, (ii) agreement for landscaping with Gothic Landscape, Gothic Grounds Management, Inc. (Gothic Landscape) dated November 24, 2020, and (iii) agreement for pier management with Bay Ship & Yacht, Co. (Bay Ship & Yacht) dated October 8, 2018 (collectively, the Agreements).
BACKGROUND
In 2016-17, pursuant to a City-issued Request for Proposals for property management services, the City selected RiverRock as its property manager for an initial five-year term. During the term, in acknowledgment of the quality of services provided by RiverRock and in the interest of ensuring continuity for the City’s tenants, staff recommended that the City continue the term beyond the initial five years. On January 18, 2022, City Council approved a new service provider agreement with RiverRock (Exhibit 1) providing for an additional three-year term with compensation in an amount not-to-exceed $1,209,374.19. The expenditures for the RiverRock agreement are funded from Alameda Point/Base Reuse lease activity (29061822).
The RiverRock agreement requires that i) to the extent RiverRock enters into any property management-related contracts on behalf of the City, it does so as the City’s agent, ii) in entering into such contracts, RiverRock complies with the City’s procurement policies, iii) RiverRock obtains City written pre-approval of contracts before entering into them, and iv) RiverRock’s employees and agents communicate with and take direction from designated City’s representative. The City also requires RiverRock to use City Attorney’s Office-approved contract templates. Additionally, as noted above, the City Charter, AMC, and Purchasing Policy require that all contracts be reviewed and approved in advance by the City Attorney’s Office, and contractual purchases of materials and services over $75,000 must be approved by City Council.
To comply with the City Attorney’s recommendation with respect to existing contracts, staff is seeking ratification of the three Agreements previously entered into between RiverRock with respect to Alameda Point maintenance and services.
DISCUSSION
Below is background on and a description of each of the three existing contracts entered into by RiverRock on behalf of the City for maintenance and services at Alameda Point for which staff is seeking City Council ratification.
Security Services
On December 1, 2020, the City issued an RFP for security services at Alameda Point. Four (4) proposals were received and Patrol Solutions was the lowest proposer. Pacwest’s proposal was only $1,562.73 higher than Patrol Solutions, however, Pacwest has twenty-seven (27) years of experience compared to Patrol Solutions ten (10) years. Additionally, Pacwest has experience partnering with other municipalities, such as the Central Contra Costa Sanitarily District and City of West Hollywood. Pacwest’s proposal outscored Patrol Solutions’ by two points due to these differences. The City awarded the contract to Pacwest, and RiverRock entered into this contract on behalf of the City on July 20, 2021. However, RiverRock terminated the contract on behalf of the City on May 20, 2022, just ten (10) months into the term due to dissatisfaction with the quality of service being provided. As a very close second in RFP panel ratings, Patrol Solutions was awarded the remainder of the contract.
On May 15, 2022, RiverRock, on behalf of the City, entered into a service provider agreement with Patrol Solutions (Exhibit 2). The agreement has a one (1) year term with two (2) one-year extension options. The initial one-year term commenced on May 15, 2022 and expires on May 14, 2023. The maximum compensation under the initial term of the agreement may not exceed $304,012 with fuel billed separately.
Landscaping Services
On August 13, 2020, the City issued an RFP for commercial and residential landscape services at Alameda Point. Three proposals were received and Gothic Landscape was the lowest bidder and was awarded the contract.
On November 24, 2020, RiverRock, on behalf of the City, entered into a service provider agreement with Gothic Landscape (Exhibit 3). The agreement has a two (2) year term that commenced on January 1, 2021 and expires on December 31, 2023. The agreement provides four (4) one-year extension options. The maximum compensation under the agreement may not exceed $268,230 per year.
Pier/Port Management Services
On May 24, 2018, the City issued a RFP for pier management services. Two responses were received; both respondents had previously served as pier managers for the City. One response was from Bay Ship & Yacht, and while it was not the lowest bidder, the prior service quality, level of organization, and responsiveness previously demonstrated to the City as a pier manager far exceeded that which the lowest bidder had demonstrated. As a result, the contract was awarded to Bay Ship & Yacht.
On October 8, 2018, RiverRock, on behalf of the City, entered into a service provider agreement with Bay Ship & Yacht (Exhibit 4). The contract has a two-year term with four (4) one-year extension options exercisable at the sole discretion of the City Manager. The initial term of the agreement terminated on October 7, 2020. With City Manager approval, RiverRock exercised three (3) of the four (4) extension options; one (1) one-year extension option remains. The current expiration date of the agreement is October 7, 2023. The maximum compensation under the agreement may not exceed $800,404.
ALTERNATIVES
• Authorize ratification of the three Agreements between RiverRock Real Estate Group, as agent for the City, and Patrol Solutions, Gothic Landscape, and Bay Ship & Yacht.
• Do not authorize ratification of the three Agreements, which will cause a disruption in the provision of pier management, landscaping and security services at Alameda Point due to the time required to re-issue the RFPs for service, conduct the interview process and bring contracts back to City Council for approval.
FINANCIAL IMPACT
There is no financial impact from this action. The funds for these contracts were budgeted and approved by City Council as part of the FY 2022-23 budget. Funding for pier management, landscaping, and security services are included in the proposed FY 2023-25 biennial budget under the property management line item, subject to City Council approval in June 2023.
These expenditures are funded by Alameda Point/Base Reuse lease activity (29061288), which is consistent with the permitted uses under the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
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.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Ratify service provider agreements between RiverRock Real Estate Group, as an agent for the City of Alameda, and Patrol Solutions, LLC, Gothic Landscape, Inc., and Bay Ship & Yacht for property management related maintenance and services at Alameda Point.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By,
Lorie Curtis, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. RiverRock Real Estate Group Agreement
2. Patrol Solutions, LLC Agreement
3. Gothic Landscape, Inc. Agreement
4. Bay Ship & Yacht, Co. Agreement