City Council Agenda Report
Meeting Date: July 18, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Amendment No. 3 to Services Agreement with S&S Labor Force Inc., dba JRM for Unarmed Security Guard Services
Recommendation
Approve and authorize the City Administrator to execute Amendment No. 3 to the 2020 Services Agreement with S&S Labor Force Inc., dba JRM, in substantially the same form as submitted, for unarmed security guard services for a not-to-exceed amount of $22,542.39.
Background
Following a Request for Proposal process, on May 19, 2020, City Council approved a Services Agreement with S&S Labor Force, Inc., dba JRM (JRM) for unarmed security guard services in the amount of $1,809,000.00, for a term of three years (2020 Services Agreement). On June 1, 2021, City Council approved Amendment No. 1 to the 2020 Services Agreement with JRM in the amount of $507,500 due to factors related to the state of emergency, as well as factors that were not known or expected at the start of the contract and at the time of the budget adoption. At that time, the COVID-19 pandemic and related impacts and countermeasures continued to evolve, and with high social tensions peaking, the City made necessary adjustments to increase security arrangements. On February 15, 2022, City Council approved Amendment No. 2 for $992,000 due to continued evaluation on how to best leverage the services of JRM to aid in safeguarding public and City property during the emerging impacts of the highly communicable COVID-19 variants.
On January 7, 2023, staff requested additional security services from JRM to ensure the secure storage of materials and equipment needed to upgrade Vernon Public Utilities (VPU) Electric System due to new customer capacity requirements. The upgrade work was to energize a new customer with a capacity requirement of 50 megawatts (MW), which VPU’s current configuration could not meet. As a result, additional line crews, materials, and equipment were brought in to construct new high-voltage 66kV lines and a new substation. JRM was directed to protect these valuable materials and equipment to ensure that VPU remained on an aggressive timeline to meet the new customer's deadlines.
It is anticipated that the new customer will reimburse VPU for security service charges related to the upgrades, estimated at $150,000. Due to the added security service for the new customer electric upgrades performed, there are insufficient funds available to cover outstanding costs incurred from January through April 2023. Accordingly, staff is seeking approval of Amendment No. 3 in the amount of $22,542.39 to cover payment on outstanding invoices and close out the 2020 Services Agreement, which expired on May 20, 2023.
On April 4, 2023, City Council approved a new three-year Services Agreement with JRM, with an effective date of May 1, 2023, to provide unarmed security guard services. All security guard services performed by JRM after May 1, 2023 will be paid under the new 2023 Services Agreement.
Although there are sufficient funds in VPU’s budget and no budget adjustments are necessary for this service in FY 2022-23, approval of the proposed Amendment No. 3 to the 2020 Services Agreement with JRM would allocate additional funds to this contract to cover the special new customer-driven electric upgrades to the VPU Electric System.
Amendment No. 3 has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
Amendment No. 3 with JRM would add $22,542.39 to the 2020 Services Agreement for a grand total not-to-exceed amount of $3,331,042.39. Sufficient funds for unarmed security guard services are available in the Light & Power Fund, Administration Department, Professional Services-Other Account No. 055-050-580-529215 for fiscal year 2022-23.
Attachments
1. Amendment No. 3 – S&S Labor Force Inc., dba JRM