City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 23, 2026
Report #:2511-5432
TITLE
Approval of Amendment No. 2 to Contract No. C25193187 with Universal Security Company for Fire Watch Services at City Hall in the Amount of $80,915 for a New Total Not-to-Exceed Amount of $301,667, and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Categorically Exempt under Sections 15301 and 15302
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract No. C25193187 with Universal Security Company to provide fire watch services at City Hall in the Amount of $80,915, for a new total not-to-exceed amount of $301,667; and
2. Amend the Fiscal Year 2026 Operating Budget Appropriation for the General Fund (requires a 2/3 vote) by:
a. Increasing the Public Works Department Public Services Division contract expense appropriation by $80,915; and
b. Decreasing the Budget Stabilization Reserve by $80,915.
BACKGROUND
On Monday, August 18, 2025, it was discovered that the drive shaft connecting a diesel engine to the City Hall fire pump was sheared in half, making the fire pump inoperable. The fire pump provides water pressure to the fire sprinkler system on the upper floors of City Hall. Section
15.5.2 of the National Fire Protection Association 25 mandates the provision of a fire watch whenever an automatic fire sprinkler system malfunctions for 10 hours in a 24-hour period. The 24 hours a day, 7 days per week fire watch service began on August 19, 2025, and ended on November 10, 2025, when the repair to the fire pump was completed. The fire watch services were performed by Universal Security Company.
Universal Security Company provides security services at the Municipal Service Center and the Regional Water Quality Control Plant under contract No. C251931871 and staff’s recommended action amends the contract scope and compensation for these additional services.
ANALYSIS
The need for fire watch service at City Hall was unexpected and immediate, leaving no time for a competitive solicitation process (See Section PAMC 2.30.360). Contingency funds totaling $9,553 remaining in the contract were used to pay initial invoices for fire watch services.
Although the amount needed for the contract amendment was known in November, the administrative process to develop the amendment and Staff Report has delayed approval by Council.
The repair parts for the fire pump needed to be custom fabricated by the manufacturer and there was no option to expedite the process. The total amount spent on fire watch services was $90,468. Universal Security Company’s contracted straight time business hours pay rate was $31.50 per hour, and their nonbusiness hours overtime rate was $47.25 per hour. The contract end date for contract No. C25193187 was October 31, 2025. Amendment No. 1 was executed for a four-month extension prior to the contract termination date. Amendment No. 2 adds $90,468 to the contract to cover the fire watch expense.
FISCAL/RESOURCE IMPACT
To fund the recommended contract amendment for fire watch services, staff recommends increasing the Fiscal Year 2026 budget by $80,915 in the Public Works operating budget and decreasing the Budget Stabilization Reserve (BSR) by the same amount.
STAKEHOLDER ENGAGEMENT
City Hall staff were notified of the fire pump failure and the resulting fire watch services.
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: Amendment No. 2 City Hall Fire Watch Final; C25193187 APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
1 https://www.paloalto.gov/files/assets/public/v/1/public-works/public- services/contracts/contract-with-universal-security-company-c25193187.pdf