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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Police
Meeting Date: February 23, 2026
Report #:2602-5924
TITLE
Approval of Amendment No. 1 to Contract No. S26196996 for One Year with Yosh Enterprises Inc. dba Orion Security for Track Watch Services at Four Grade Crossings in the Amount of $1,623,314 for a New Total Not-to-Exceed Amount of $1,708,314; Authorize the Negotiation and Execution of a Cost Sharing Agreement with Palo Alto Unified School District for $854,157; and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Not a project.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. S26196996 (Attachment A) with Yosh Enterprises Inc. dba Orion Security to provide track watch services at four Caltrain grade crossings in the Amount of $1,623,314, for a new total not-to-exceed amount of $1,708,314;
2. Approve and authorize the City Manager or their designee to negotiate and execute a Cost Sharing Agreement with Palo Alto Unified School District (PAUSD) for $854,157 for 50% of the track watch services contract cost (Draft - Attachment B); and
3. Amend the Fiscal Year 2026 Operating Budget Appropriation for the General Fund (requires a 2/3 vote) by:
a. Increasing the Police Department revenue by $427,078 b. Increasing the Police Department contract expense appropriation by $854,157; and
c. Decreasing the Budget Stabilization Reserve (BSR) by $427,078
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BACKGROUND
The City of Palo Alto has used the services of contract track monitors at the grade crossings twice before; January 2010-June 20111 and again July 2016 to June 20182. The service provided on-site monitoring in response to teen fatalities that have occurred along the Caltrain corridor in Palo Alto.
In February 2026, the Mayor reinstated the Rail Safety/Youth Mental Health Ad Hoc Committee (the Committee) in response to teen fatalities in the Caltrain right-of-way. The Committee recommended, among other measures, to reinstate, on a temporary basis (for one year) a formal contract for the Track Watch program. This program in recent months has been a volunteer-run program and through the recommended contract in this report, the service would increase presence at the train crossings through hired monitors being present at each grade crossing for 24 hours per day, seven days a week including weekends and holidays. The individuals are intended to be a high visibility presence to observe and report activity around their post. This contract will supplement the existing Intrusion Detection System.
The current recommended contract will be paid for as a shared cost between the City and the Palo Alto Unified School District (Attachment B). The District will reimburse the City for 50% of the costs, up to $854,157.
ANALYSIS
In order to provide track watch services as quickly as possible, the City Manager approved an exemption from formal competitive solicitation under PAMC section 2.30.360(b) (substantial interference with City operations) and staff conducted an informal request for proposals. Staff awarded a professional services contract to Orion Security that was within staff’s signing authority for $85,000 so services could begin on February 23, 2026, without waiting for Council approval for the entire contract. This Amendment increases the not-to- exceed amount by $1,623,314, from $85,000 to $1,708,314 with no other changes to the original contract (Attachment C).
Amendment No. 1 provides for a full year of service, totaling $1,708,314. While this contract provides a temporary one-year solution, it spans two fiscal years. The first six months of service are funded through the FY 2026 budget amendment. The remaining six months of the contract term will be included in the FY 2027 budget development process.
Staff acknowledges that the program’s continuity beyond this specific contract term will 1 September 13, 2010, City Council Meeting, Information Report: Contracts Awarded by City Manager https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=74230&dbid=0&repo=PaloAlto 2 June 5, 2017 City Council Meeting, Item #6, Link: https://www.paloalto.gov/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2017/id-8032.pdf 9 3
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require further evaluation during the upcoming budget cycle to ensure long-term rail safety goals are met.
Procurement Process
Table #1: Summary of Informal Request for Proposal Process Request for Proposals Name Track watch service
Total Days to Respond to RFP 3 calendar days
Pre-Proposal Meeting N/A
# of Company Attendees at Pre-Proposal Meeting N/A
# of Proposals Received 5
Proposal Price Range $1.7M - $4.4M (One year)
On February 10, 2026, the Department issued an Informal Request for Proposals to five vendors, receiving five responses. Police staff evaluated each submission against the criteria specified in the RFP and determined all proposals to be responsive. Following a comprehensive review of qualifications, service quality, cost, and the City's prior experience with the firm, police staff selected Orion Security as the most qualified vendor. Orion Security's proposal best meets the City's needs and represents a reasonable cost for the scope of work outlined in the RFP.
FISCAL/RESOURCE IMPACT
The total not-to-exceed amount for the one-year Track Watch contract is $1,708,314.
Under a 50/50 cost-sharing agreement, the PAUSD will reimburse the City for $854,157.
The City’s total net contribution for the contract is $854,157.
For Fiscal Year 2026, the City will fund its initial 50% portion of the contract (representing the first six months of service) for a total of $427,078 from the Budget Stabilization Reserve (BSR). The corresponding revenue and expense appropriations are reflected in the recommendation section of this report.
For Fiscal Year 2027, the City’s General Fund commits to paying the second half of the contract amount, an additional $427,078. This funding may also be sourced from the BSR and will be formally discussed and finalized as part of the FY 2027 budget development process in the context of other General Fund supported services. Funding for solutions beyond the time period of this contract will be discussed during the FY 2027 budget development process as well.
STAKEHOLDER ENGAGEMENT
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This service has been discussed at the City Council Rail Safety/Youth Mental Health Ad Hoc Committee in collaboration with Caltrain staff and the Palo Alto Unified School District.
Additionally, community members, in partnership with Project Safety Net, have been organizing a volunteer-led track watch program over the past several months. There has been community dialogue on the topic and requests for the installment of monitors at the track 24/7 at least for the time being as an additional safety measure at the train tracks. This contract is in response to these discussions.
ENVIRONMENTAL REVIEW
Council action on this item is not subject to CEQA because approval of these agreements will have not have significant effects on the environment. CEQA regulation 15601(b)(3).
ATTACHMENTS
Attachment A: Amendment #1 to dba Orion Security; Contract S26196996 Attachment B: DRAFT Cost sharing agreement with PAUSD; Contract S26196996R Attachment C: Original Track Watch; Contract S26196996
APPROVED BY:
Andrew Binder, Police Chief