DATE: March 7, 2023
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with First Shield Security and Patrol, Inc. to Provide Unarmed Security Services at Various City Locations For a Term of Three Years With Two One-Year Options to Extend in a Contract Amount of $4,600,900 and a Contingency Amount of $225,000, for a Total Not-to-Exceed Amount of $4,825,900
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a three-year agreement with two one-year options to extend with First Shield Security and Patrol, Inc (First Shield) to provide security services at various City locations in a total not-to-exceed amount of $4,825,900.
SUMMARY
Contacted security services are utilized at various City-owned locations, specifically at Hayward City Hall, Watkins and Cinema Place Parking Garages, Heritage Plaza, 21st Century Library and Learning Center, Weekes Branch Library, and the Hayward Executive Airport, to protect City property and the property of residents and visitors, monitor access, and support a safe environment both within and surrounding these City facilities. Staff released a request for proposals (RFP) in September 2022 to seek a qualified contractor. Staff recommends awarding the contract to First Shield in a total not-to-exceed amount of $4,825,900, which includes a $225,000 contingency budget, and three-year term, as well as two, one-year options to extend.
BACKGROUND AND DISCUSSION
Previously, the City contracted with ABC Security Services from 2009 – 2016 and with National Security Industries from 2016 – 2022. Per the City’s purchasing and procurement policies, it is prudent to regularly solicit new bids to receive competitive pricing, compare services, and evaluate knowledge and experience. On September 6, 2022, staff released RFP #2305-090522 to seek a qualified contractor to provide much needed security services. The awarded contract will be for three years with two, one-year extensions. If the City chooses to exercise the options, the base annual base contract will be subject to a CPI increase each extension. The CPI, usually verified with the U.S. Bureau of Labor Statistics (BLR), will be reported in all reports and/or contract extensions. Additionally, an annual contingency of $45,000 is necessary to support additional security time related to special events. The table below outlines the expected contract costs by department requiring these services, assuming a 3% CPI.
Staff received and reviewed ten proposals and recommends awarding the contract to First Shield based on their experience, competitive rates, customer service, and performance during the interview process. As an enhancement from the current contract, First Shield will supply golf carts or vehicles for their outdoor-based assignments, which will allow security guards to cover more areas more often, providing a regular presence of on-site security to the public and our employees.
Department
FY24
FY25
FY26
FY27
FY28
5-Year Sum
5-Year Contingency
Contract Total
Maintenance Services
524,160
539,885
556,081
572,764
589,947
2,782,837
125,000
2,907,837
Library
203,840
209,955
216,254
222,741
229,424
1,082,214
50,000
1,132,214
Hayward Executive Airport
138,600
142,758
147,041
151,452
155,996
735,846
50,000
785,846
Total
866,600
892,598
919,376
946,957
975,366
4,600,897
225,000
4,825,897
FISCAL AND ECONOMIC IMPACT
The adopted annual operating budgets for the Maintenance Services Department and Library Department will fund the contract for services provided at each location. The Hayward Executive Airport’s portion of the contract will be funded by the Airport’s Enterprise Fund and will not impact the City’s General Fund.
This item will provide a positive economic impact to the City by sustaining safe environments at various City locations for all residents, visitors, and employees.
STRATEGIC ROADMAP
While this item does not directly support a Strategic Priority, security services will help promote a safe and collaborative work environment at the locations noted previously.
SUSTAINABILITY FEATURES
This item has no direct sustainability features.
PUBLIC CONTACT
The RFP was publicized on the City’s website in September 2022. In November 2022, staff invited three bidders to interview.
NEXT STEPS
If Council approves this request, the City Manager will be authorized to execute the agreement with First Shield in a total not-to-exceed amount of $4,825,900, which includes a $225,000 contingency, and a three-year term, as well as two one-year options to extend.
Prepared by: Manny Grewal, Management Analyst II
Liz Sanchez, Management Analyst II
Recommended by: Todd Rullman, Director of Maintenance Services Approved by:
_________________________________
Kelly McAdoo, City Manager