FROM: Robert Thompson, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET AND 18250 EUCLID STREET, FOUNTAIN VALLEY
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
Ratify Amendment No. 7 to the sole source agreement with The Muller Company for Property Management Services at 18350 Mt. Langley Street and 18250 Euclid Street in Fountain Valley, on a month to month basis, for management fees of $5,241.90 per month plus other incurred expenses; and an additional renewal period of twelve (12) months.
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BACKGROUND
The Orange County Sanitation District (OC San) Board of Directors previously approved a sole source agreement with The Muller Company for property management services for OC San owned buildings at 18350 Mt Langley Street and 18368-18375-18381-18384 Bandilier Circle in Fountain Valley. The properties were occupied by staff and commercial tenants with leases that expire in 2021 and 2023.
OC San purchased these properties as part of its overall strategy to build its Headquarters facilities and maximize the land available for treatment plant process area. Once the demolition of the Bandilier Circle buildings was completed, an Amendment No. 6 was executed to remove those buildings and reduce the management fees.
On February 24, 2026, OC San closed escrow on an industrial property located at 18250 Euclid Street to support warehouse and operational functions. Warehouse operations are currently housed at Plant No.1, with the possibility of fully relocating those functions to this property, thereby allowing Plant No. 1 facilities to be repurposed for core treatment process operations. The property is currently occupied by a tenant whose lease is scheduled to expire at the end of the year. Immediate property management services are necessary to safeguard and maintain the asset.
RELEVANT STANDARDS
• Protect OC San assets
PROBLEM
OC San-owned properties have commercial tenants and there is a need to professionally manage them utilizing services such as maintenance, tenant relations, and repairs. Due to the new purchase, Amendment No. 7, which adds management of the 18250 Euclid Street property, was executed by the General Manager and General Counsel with the concurrence of the Board Chairman.
PROPOSED SOLUTION
Ratify Amendment No. 7 to add the 18250 Euclid Street property to the current sole source property management agreement until the properties are repurposed.
TIMING CONCERNS
The term of the agreement will remain month to month, terminable for either party on 30 days’ notice to other party.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will lose continuity of care of the property and of services to tenants.
PRIOR COMMITTEE/BOARD ACTIONS
November 2021 - Approved Amendment No. 5 to the sole source agreement with The Muller Company for Property Management Services for 18350 Mt. Langley Street and 18368-18375-18381- 18384 Bandilier Circle in Fountain Valley, for the period of January 1, 2022 through January 31, 2023 for a management fee of $3,200 per month plus other incurred expenses, including an additional renewal period of twelve (12) months.
July 2020 - Approved Amendment No. 4 of the sole source agreement with The Muller Company for Property Management Services for 18350 Mt. Langley Street and 18368- 18375- 18381- 18384 Bandilier Circle in Fountain Valley for the period of September 1, 2020, through June 30, 2021 for a management fee of $3,200 per month plus other incurred expenses, including an additional renewal period of six months.
May 2019 - Approved Amendment No. 3 with The Muller Company for Property Management Services, to extend the services for twelve-months from September 1, 2019 through August 31, 2020 with all terms and provisions of the Agreement remaining unmodified and in full force and effect.
September 2018 - Approved an amendment with The Muller Company for Property Management Services, for an additional management fee of $3,293 per month plus other incurred expenses, for the additional of District acquired properties on Bandilier Circle and Pacific Street including two additional renewal periods of six months each.
February 2018 - Approved a sole source agreement with The Muller Company for Property Management Services, for the period March 1, 2018 through August 31, 2018, for a management fee of $4,200 per month plus other incurred expenses, including two additional renewal periods of six months each.
ADDITIONAL INFORMATION
Monthly expenses for services such as utility bills and repair work vary month to month. All expenses will be reviewed and approved by OC San staff.
CEQA
N/A
FINANCIAL CONSIDERATIONS
The property management costs will be offset by rents collected on the commercial leases.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Executed Amendment No. 7
• Executed Amendment No. 6