REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Issue Purchase Orders and Negotiate and Execute an Agreement for Services with ZOM Inc., (Doing Business as Eagle Security Service) to Provide As-Needed Services of Physical Access Control Systems for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), operates and maintains over 40 critical facilities that require robust physical security infrastructure. To support ongoing operations and ensure compliance with the North American Electric Reliability Corporation (NERC) Critical Infrastructure Protocol (CIP) and SVP’s safety and security requirements, staff requires contracted services for the maintenance and support for the Physical Access Control Systems (PACS).
The required services include locksmith support, installation and maintenance of security cameras, card access systems, and gate operators. SVP currently manages over 100 security cameras that require regular servicing including testing, repair, and upgrades. SVP requires a contractor who will also provide cabling services for CAT6+ and fiber installations and support for software upgrades related to the existing PACS software platform including Open Options DNA Fusion and Milestone Software.
DISCUSSION
Pursuant to Section 2.105.140(c) of the Santa Clara City Code, a formal Request for Proposals (RFP) was conducted for Physical Access Control Systems services.
The RFP for Physical Access Control Systems was published on the City’s e-procurement system. One proposal was received from ZOM Inc., doing business as Eagle Security Service (Eagle). The proposal was independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, which included experience, technical capability, and cost. The panel determined that Eagle’s proposal met the requirements of the RFP.
Based on this evaluation, staff recommend entering into a master service agreement with Eagle to provide as-needed PACS-related services. The proposed agreement has a four-year initial term, starting on June 1, 2025, and ending on May 31, 2029, with options to renew for up to five additional years. The initial maximum compensation is $1,000,000, based on historical usage and anticipated projects.
Services will be quoted and invoiced on either a fixed price or time-and-materials basis at the rates specified in the agreement. As an authorized reseller of Open Options DNA Fusion and Milestone Software, Eagle will also provide support services associated with those solutions.
Given the potential for increased service needs due to unanticipated events or regulatory changes, staff is also seeking authorization for the City Manager to negotiate and execute amendments to the agreement as further detailed in the recommendations. This additional authority will ensure continued compliance with NERC CIP requirements and support the maintenance of critical physical security infrastructure at SVP locations.
While staff is finalizing the agreement for execution, staff recommend that the City Manager is authorized to issue purchase orders for critical services needed between the time of this authorization and the execution of the final agreement.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulation in that it can be seen with certainty that there is no possibility that the proposed actions may have a significant effect on the environment.
FISCAL IMPACT
The maximum compensation for the initial four-year term under the proposed Agreement with Eagle Security is $1,000,000. Sufficient funds are available in the FY 2024/25 Operating Budget in the Electric Utility Fund.
Funds required for this agreement in future years and, if needed, funds required for any increases to the maximum compensation will be included in proposed budgets for the corresponding years.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, or by email to: clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to issue purchase orders to and negotiate and execute an agreement with ZOM Inc., doing business as Eagle Security Service (Agreement), to provide as-needed Physical Access Control Systems (PACS) services or other services for Silicon Valley Power for a term starting on June 1, 2025, and ending on May 31, 2029, with a maximum compensation of $1,000,000, to be funded by the Electric Utility Fund, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement, and to negotiate and execute amendments to the Agreement to: (a) add or delete services consistent with the scope of services, (b) adjust future rates based on market conditions, (c) extend the term by up to five additional years through May 31, 2034, (d) make de minimis changes, and (e) increase the maximum compensation by up to $1,000,000 for a total maximum compensation of $2,000,000 over the nine-year term, subject to the appropriation of funds and review and approval as to form by the City Attorney.
Staff
Reviewed by: Nico Procos, Acting Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager