REPORT TO COUNCIL
SUBJECT
Title
Action on Agreements with First Shield Security & Patrol, Inc. for Citywide Security Guard Services, Including Ratification of Prior Expenditures and Authorization of Future Expenditures During Exercised Option Periods
Report
BACKGROUND
The City contracts with private security firms to provide security services at various City facilities and locations. Security services are required to safeguard persons and property, assist visitors and employees, and provide supplemental security services for citywide special events. Security guards provided under these agreements are unarmed and are primarily responsible for monitoring City facilities and property, deterring and identifying suspicious activities, and reporting incidents to the appropriate authorities.
In 2021, the City conducted a competitive Request for Proposals (RFP) process pursuant to the City’s procurement process. First Shield Security & Patrol, Inc. (First Shield) was selected to provide security services for the Public Works and Parks & Recreation Departments, as well as other City departments as needs arise.
On October 26, 2021 (RTC# 21-1274), the City Council approved agreements with First Shield with a maximum compensation of $656,453 for the Department of Public Works and $801,000 for the Parks & Recreation Department (PRD) during the initial three-year term from November 1, 2021 through October 31, 2024. The City Council action also authorized the City Manager to exercise up to five one-year options, for a potential total contract term of eight years ending on October 31, 2029, if all options are exercised. Exercise of the option periods was expressly made subject to the appropriation of funds.
In addition, the City Council authorized the City Manager to execute additional agreements with First Shield for additional locations as needed, subject to the same terms and conditions and the appropriation of funds. Under this authority, staff subsequently entered into agreements for security services with First Shield for the Water & Sewer Utilities Department (W&S), the Library Department, and Silicon Valley Power (SVP).
DISCUSSION
As security services continued to be provided across City departments and locations, staff administered the First Shield agreements based on the understanding that the City Council’s approval to exercise the contract options and enter into additional agreements, together with annual appropriation of funds, authorized continued performance under the agreements. Accordingly, staff exercised Option 1 for the period November 1, 2024 through October 31, 2025, and Option 2 for November 1, 2025 through October 31, 2026.
In reviewing the agreements and associated compensation, staff identified that while the 2021 City Council action authorized the option periods and additional agreements, it did not expressly identify maximum compensation for each option period or total aggregate maximum compensation for all First Shield agreements over the full authorized contract term. Staff is therefore returning to the City Council to ratify compensation associated with prior actions and authorize maximum compensation for the remaining option periods.
Staff is requesting that the City Council ratify $1,739,432 in maximum compensation associated with the W&S, the Library Department, and SVP agreements during the initial term and all First Shield agreements during Options 1 and 2. Staff is also requesting authorization of $2,198,960 in maximum compensation for Options 3, 4, and 5, plus a contingency of $439,792 to address unanticipated security needs. Together with compensation previously approved by the City Council, these actions would authorize a total aggregate maximum compensation of $5,835,637 for all First Shield agreements through October 31, 2029.
The tables below summarize the maximum compensation by department and contract period, the corresponding City Council actions, and the total aggregate maximum compensation.
Table 1 - Maximum Compensation by Department and Contract Period
|
Contract Period |
DPW |
PRD |
Library |
W&S |
SVP |
|
Initial Term (11/1/21 - 10/31/24) |
$656,453 |
$801,000 |
$150,000* |
$30,000* |
$0 |
|
Option 1 (11/1/24 - 10/31/25) |
$207,720* |
$338,800* |
$98,212* |
$10,000* |
$0 |
|
Option 2 (11/1/25 - 10/31/26) |
$194,200* |
$388,300* |
$112,200* |
$10,000* |
$200,000* |
|
Option 3 (11/1/26 - 10/31/27) |
$202,000 |
$388,300 |
$114,444 |
$10,000 |
$0 |
|
Option 4 (11/1/27 - 10/31/28) |
$202,000 |
$407,715 |
$112,200 |
$10,000 |
$0 |
|
Option 5 (11/1/28 - 10/31/29) |
$202,000 |
$428,101 |
$112,200 |
$10,000 |
$0 |
|
Department Total |
$1,664,373 |
$2,752,216 |
$699,256 |
$80,000 |
$200,000 |
*Amounts included in the $1,739,432 for ratification.
Table 2 - Compensation Summary
|
Council Action |
Amount |
|
Previously Approved - DPW & PRD Initial Term |
$1,457,453 |
|
Presented for Ratification |
$1,739,432 |
|
Requested - Options 3, 4, & 5 |
$2,198,960 |
|
20% Contingency on Options 3, 4, & 5 |
$439,792 |
|
Total Aggregate Maximum Compensation |
$5,835,637 |
Going forward, staff will identify both the contract term and the maximum compensation applicable to the initial term and all potential option periods when seeking City Council authorization, as appropriate.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations in that they are fiscal activities that do not involve any commitment to any specific project which may result in a potential significant physical impact on the environment.
FISCAL IMPACT
Funding for this agreement is included in the adopted operating budgets of the respective departments. This includes funding in the General Fund, Convention Center Maintenance District Fund, and Electric, Water and Sewer Utility Funds. Future year funding is subject to the appropriation of funds, and any necessary adjustments will be included as part of the annual budget process.
COORDINATION
This memorandum was coordinated with the Public Works, Parks and Recreation, Library, Water and Sewer Utilities, and Silicon Valley Power Departments, the City Manager’s Office and the City Attorney’s Offices.
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, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to exercise Options 3, 4, and 5 under the agreements with First Shield Security & Patrol, Inc. for security guard services for participating City departments and locations, extending the agreements through October 31, 2029, and authorize a total aggregate maximum compensation of $5,835,637, inclusive of the $1,739,432 ratified under Recommendation No. 2 and a contingency of $439,792, subject to budget appropriations and review and approval as to form by the City Attorney;
2. Ratify spend of $1,739,432 associated with previously executed agreements with First Shield Security & Patrol, Inc. for the Water & Sewer Utilities Department, Library, and Silicon Valley Power during the initial term and all First Shield agreements during Options 1 and 2; and
3. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreements, and negotiate and execute future amendment(s) to (a) add or delete services associated with the services, (b) reallocate approved maximum compensation among departments as needed to support operational needs, (c) adjust future rates in accordance with the terms of the agreements, and (d) make de minimis changes, provided that such actions do not increase the total aggregate maximum compensation or extend the agreements beyond October 31, 2029, subject to budget appropriations and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck Director, Public Works Department
Damon Sparacino, Director, Parks and Recreation Department
Patty Wong, City Librarian, Santa Clara City Library
John Ramirez, Director, Water & Sewer Utilities Department
Nico Procos, Director, Silicon Valley Power
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Agreement with First Shield - DPW
2. Agreement with First Shield - PRD
3. Agreement with First Shield - Library
4. Agreement with First Shield - W&S
5. Agreement with First Shield - SVP