TITLE
Recommendation to adopt Specifications No. RFP EP18-079 and award contracts to Cardinal Escrow Inc., of Long Beach, CA; Chicago Title Company, of Los Angeles, CA; International City Escrow, of Long Beach, CA; Stewart Title of California, of Newport Beach, CA; and Ticor Title Company of California, of Glendale, CA, for as-needed escrow and title services, in an aggregate amount not to exceed $500,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments, provided that the aggregate total amount is not exceeded. (Citywide)
DISCUSSION
As part of real estate matters involving the City of Long Beach (City), staff utilizes outside firms to perform various escrow and title functions necessary to complete the transaction. Escrow firms provide essential services to the City by acting as a neutral third party, ensuring both parties are in compliance with the terms and conditions of the transaction, as well as with California escrow law. Title companies offer a multitude of services including researching real property title issues, clearing title exceptions, and insuring the validity of title during a land transfer. These services are being procured to meet the needs of City departments for current, as well as unforeseen transactions, that will arise over the next few years. At this time, all prior agreements for these specialized professional services have expired.
The RFP was advertised in the Long Beach Press-Telegram on March 9, 2018, and 5,223 potential proposers specializing in real estate broker services were notified of the RFP opportunity. Of those proposers, 30 downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 local, minority, and women-owned business groups. Eight proposals were received on April 11, 2018. Of those eight proposers, one was a Minority-owned Business Enterprise (MBE), two were Women-owned Business Enterprises (WBEs), two were certified Small Business Enterprises (SBEs), and three were Long Beach businesses (Local).
A Selection Committee, comprised of City staff from the Department of Economic Development and the Long Beach Community Investment Company, evaluated the five responsive proposals submitted. The proposals were evaluated in accordance with the criteria set forth in the RFP including demonstrated competence, experience in performance of comparable engagements, expertise and availability of key personnel, financial stability, and reasonableness of cost. The Selection Committee selected all five firms, outlined below, in anticipation of forecasted assignments over the next few years and to adequately respond to Department requests for service.
• Cardinal Escrow, Inc. - Long Beach, CA (SBE, MBE, WBE, Local)
• Chicago Title Company - Los Angeles, CA
• International City Escrow - Long Beach, CA (SBE, WBE, Local)
• Stewart Title of California - Newport Beach, CA
• Ticor Title Company of California - Glendale, CA
Staff is proposing to execute Professional Services Agreements with these firms under the following terms and provisions:
• Term: To commence on July 1, 2018, and terminate on June 30, 2020.
• Options to Extend: The agreements may be extended for up to three additional one-year extensions, at the discretion of the City Manager.
• Contract Amount: The combined aggregate contract amount of all agreements across all terms will not exceed $500,000.
• Termination: Either the City or the firm may terminate the respective agreement at any time during the Term by providing the other party with 30 days prior written notification.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the RFP specifications. Through outreach, 580 Long Beach vendors were notified to submit proposals, of which five downloaded and three submitted proposals. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 23, 2018 and by Budget Analysis Officer Julissa José-Murray on August 6, 2018.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP EP18-079 and award contracts concurrently is requested on August 21, 2018, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
Contract authority of $500,000 is requested for a two-year term with three additional one-year options to extend. No appropriation increase is requested at this time. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. Upon approval, requests for these services would be issued to the various firms and funded by the requesting department for each particular project as the need arises. The anticipated job impact created by this action is unknown at this time, and will depend on the type of funds and work assigned over the term of the contracts.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER