Title
Authorization to Amend Contract with Plaza Del Rio Management Corporation dba Plaza Companies (Ordinance S-52217) - District 4
Description
Request to authorize the City Manager, or his designee, to amend Contract 152663 with Plaza Del Rio Management Corporation dba Plaza Companies (Plaza) for property management services at 2120 N. Central Avenue. Specifically, to add funding that supports Common Area Maintenance (CAM) expenses for suites occupied by the Police Department, in an amount not to exceed $1,782,960 for the term of the contract. The initial term of the contract is from July 1, 2025, through June 30, 2026, with four one-year options to extend through June 30, 2030. Further request authorization for the City Controller to disburse all funds related to this item for the life of the contract. Funding is available in the Police Department's General Fund budget.
Report
Summary
Plaza provides property management services in connection with the continued operations of the building located at 2120 N. Central Avenue. Plaza is responsible for property management of the entire campus, which includes the collection of operation and maintenance (O&M) fees and non-City tenant rent. O&M fees are used to pay CAM expenses such as utilities, janitorial services, security, general maintenance and capital improvement projects.
Ordinance S-51879 was approved by City Council at the May 5, 2025, meeting. This ordinance added funding for property management fees to the contract for the suites occupied by the Human Services Department in an amount not to exceed $1,257,540 over the life of the contract. The funding for the property management fees for the Police Department was not included. The total amount of funding required for the term of the contract for the Police Department is $1,782,960. The revised aggregate value of the contract for the Police Department and the Human Services Department is $3,040,500. Funding is available in the Human Services and Police departments' budgets.
Contract Term
The contract term remains unchanged, ending on June 30, 2030.
Financial Impact
The total value of this agreement will not exceed $3,040,500 over the life of the contract. Funding is available in the Human Services and Police departments' budgets.
Concurrence/Previous Council Action
On May 5, 2025, City Council authorized staff to enter into a contract with Plaza Companies to provide property management services with Ordinance S-51879.
Location
2120 N. Central Avenue.
Council District 4
Department
Responsible Department
This item is submitted by Assistant City Managers Lori Bays and Inger Erickson, Deputy City Manager Gina Montes and the Police and Human Services departments.