City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: March 24, 2025
Report #:2411-3808
TITLE
Approval of General Services Contract No. C25193187 with Universal Security Company in the Amount of $220,752 for Security Services at the Municipal Service Center and the Regional Water Quality Control Plant for a Period of Nine Months; CEQA status - Categorically Exempt under Sections 15301 and 15302
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract No. C25193187 with Universal Security Company for security services at the Municipal Service Center (MSC) and the Regional Water Quality Control Plant (RWQCP) for a nine-month term in the amount of $220,752, including $190,512 for basic services and $30,240 for additional services.
BACKGROUND
For the past five years, Universal Security Company has provided security services at MSC and RWQCP under contract C20176003 which expired on October 7, 20241. In January 2020, City Council approved Amendment No. 1 which expanded contract’s scope of work to include security services at RWQCP2. In 2024, while the Public Works Department (PWD) was in the process of finalizing solicitation documentation for a new contract, the City began discussing service needs at City Hall. The finalization of solicitation documents was paused while needs at City Hall were evaluated. Ultimately, staff pursued in-house public safety support as needed for City Council meetings allowing the RFP for services at other facilities to continue. 1 City Council, October 7, 2019; SR #10574; https://portal.laserfiche.com/Portal/DocView.aspx?id=147875&repo=r- 704298fc&searchid=3c00fd1a-510b-42b4-981f-875c2db5673f
2 City Council, January 13, 2020; Agenda Item #3; SR #10735; https://portal.laserfiche.com/Portal/DocView.aspx?id=147876&repo=r-704298fc&searchid=b376d176-7fe5-4813- b163-38eb87e93133
ANALYSIS
The recommended contract (Attachment A) maintains uninterrupted security services at the MSC and RWQCP with two staff positioned at each location respectively. Each guard will work eight hours per day, excluding City holidays, at a pay rate of $31.50 per hour. The contract also includes a provision for overtime hours to address unplanned events requiring additional security coverage.
The contract will cover the period from February 1, 2025, to October 31, 2025, allowing time for the solicitation process. The total cost for the nine-month contract is $220,752. A sum of $30,240 has been set aside for additional services to allow for 640 hours of unplanned/ overtime services. The base labor hourly rate in the interim contract increased by $9.10, from $22.40 per hour in the final year of the previous five-year contract to $31.50 per hour in the interim contract. During the previous contract term, the service provider-maintained a below- market hourly rate of $22.40 without any annual increases to account for inflation or rising labor costs in the San Francisco Bay Area for the full contract term. PWD staff conducted a market analysis for unarmed security guard services in the region and determined that the current market rate ranges from $34.00 to $39.00 per hour. Therefore, while the interim contract reflects an increase of $9.10 per hour, the new rate remains below the prevailing labor market costs for this geographic area.
To optimize resources and maintain service continuity, the City is using the existing service provider for the interim contract until the solicitation process for a new security contract is completed.
FISCAL/RESOURCE IMPACT
The security services contract will be funded through contributions from the Public Works Department General Fund, Wastewater Treatment Fund, and the Utilities Department Fiscal Year 2025 adopted operating budgets. Contract funding (base and overtime hours) will be allocated by funding source as follows:
Funding Source Contract Amount
Wastewater Treatment Fund $110,376
General Fund
(PWD contract services)
$110,376
(via the cost allocation plan, utilities enterprise funds reimburse costs of $25,386)
TOTAL CONTRACT $220,752
STAKEHOLDER ENGAGEMENT
Departments and groups contributing funding for the security services at the MSC and RWQCP have been apprised of funding requirements for the contract and the projected costs of the new contract in developing their Fiscal Year 2026 operating budgets.
ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Contract with Universal Security Company; C25193187 APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer