City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: August 18, 2025
Report #:2505-4636
TITLE
Approval of General Service Contract No. C26194766 with Securitas Technology Corporation, Utilizing Sourcewell Cooperative Agreement No. 121024-SCS, to Procure Fire Alarm Systems Monitoring, Inspection, Testing, Repair, and Related Services for a Period of Four Years in the Not-To-Exceed Amount of $404,646; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract No. C26194766 with Securitas Technology Corporation for fire alarm systems monitoring, inspection, testing, repair, and related services for a four-year contract term in the not-to-exceed amount of $404,646, which includes $276,000 for monitoring, inspection, and testing services and $128,646 for repairs, upgrades, and parts due to misuse, vandalism, and other unforeseen circumstances not covered by the maintenance agreement.
BACKGROUND
There are twenty-eight City facilities with fire alarm systems. The National Fire Protection Association (NFPA) requires monitoring, inspection, and testing of all the City’s fire alarm systems. Securitas Technology Corporation currently provides 24/7/365 fire alarm system monitoring, inspection, testing, and repair services for the City’s 28 facilities. In the early 1990s, fire alarm services for the City were provided by Honeywell, who provided and installed some of the City’s fire alarm panels that are still in use today. In 2005, Stanley Security acquired Honeywell’s fire alarm division, including their monitoring centers, Honeywell trained technicians, and Original Equipment Manufacturer (OEM) parts supply chain. This allowed for uninterrupted service for the City’s fire alarm systems. In 2022, Stanley Security was purchased by Securitas Technology Corporation. The City has continued to receive uninterrupted fire alarm services from Securitas Technology Corporation. Previous contract renewals have been accomplished by using a Sole Source Exemption from Competitive Solicitation because of proprietary fire alarm panels and the excessive costs of reprogramming all fire alarm panels to a new Central Station monitoring company.
ANALYSIS
Procurement Process
The four-year Pricing Sheet (Attachment A) is issued pursuant to Sourcewell Cooperative Purchasing Agreement # 121024, dated March 19, 2025. The scope of work includes 24/7/365 monitoring and annual fire alarm system inspection and testing for all 28 City facilities. The scope of work also includes additional services, which include repairs, upgrades, and parts replacement due to vandalism, and other unforeseen circumstances not covered by the maintenance agreement.
Per Palo Alto Municipal code 2.30.360(j), the City can take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. Sourcewell provides discounts for government entities purchasing fire alarm monitoring, testing, and repair service.
The cooperative purchasing agreement contract was competitively solicited and publicly awarded through the cooperating purchasing organizations and the purchase orders are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. Using a new contractor, rather than taking advantage of the Sourcewell agreement, would require reprogramming all the fire alarm panels to a new Central Monitoring Center at an estimated cost of $2,000 to $3,000 per panel.
Cost Comparison to Prior Contract
The last three-year Purchase Order with Stanley Security Solutions totaled $142,181 and ended on February 10, 2023. The new four-year Sourcewell contract amount with Securitas Technologies is higher as new City buildings, such as the Public Safety Building, City Hall, Fire Station 3, Junior Museum and Zoo, and Sherman Garage have been added to the new contract.
Prevailing wage rates are now included in the new contract as well which contributes to the increased cost. This new contract also includes an increase in Additional Services funding due to the aging fire alarm systems. A required semi-annual inspection was added at each location as well as part of the new contract, which is also a factor in the increased cost.
FISCAL/RESOURCE IMPACT
Funding for Year 1 of this contract is included in the Fiscal Year 2026 Adopted Operating budgets for the Public Works Department, and Office of Transportation in the University Avenue and California Avenue Parking District Funds1. Appropriations for subsequent contract years will be determined through the annual budget development process and are subject to 1 Securitas General Services Contract for Fire Alarm Maintenance C26194766; https://www.paloalto.gov/files/assets/public/v/1/public-works/public- services/contracts/c26194840_sercuritas_4-yr_maint_halfexec.pdf Council approval. The following table shows the breakdown of the annual cost per department as well as the total cost of the contract:
Term Annual Cost PWD OOT
Year 1 $ 96,721 $ 80,278 $ 16,443 Year 2 $ 99,623 $ 82,687 $ 16,936 Year 3 $ 102,612 $ 85,168 $ 17,444 Year 4 $ 105,690 $ 87,723 $ 17,967 Total $404,646 $335,856 $68,790
STAKEHOLDER ENGAGEMENT
Staff and the public will be notified if testing or repair work will be disruptive to their use of workspaces or parking facilities.
ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 of the CEQA guidelines as maintenance to an existing facility and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Securitas - Sourcewell Four-Year Pricing Sheet for Fire Alarm Systems Monitoring, Inspection, Testing, and Repair
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer