HomeMy WebLinkAboutStaff Report 10735
City of Palo Alto (ID # 10735)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 1/13/2020
City of Palo Alto Page 1
Summary Title: Water Quality Control Plant Security Guard Services
Title: Approval of an Exemption from Competitive Solicitation and Approval
of Amendment Number 1 to Contract Number C20176003 With Universal
Semiconductor Inc. d/b/a Universal Security Company for Security Guard
Services, Increasing Maximum Compensation by $425,062 to Add These
Services at the Regional Water Quality Control Plant, for a Total Contract
Amount Not to Exceed $897,344
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve an exemption from competitive solicitation, and
authorize the City Manager or his designee to execute Amendment No. 1 (Attachment A) to
Contract No. C20176003 with Universal Semiconductor Inc. d/b/a Universal Security Company
(Universal Security Company) for security guard services at the Regional Water Quality Control
Plant (RWQCP) for an additional amount of $425,062. This amendment results in a revised total
contract not-to-exceed amount of $897,344, including $874,854 for Basic Services and $22,490
for Additional Services.
Background
The City currently contracts with Universal Security Company to provide security guards at the
main vehicle and pedestrian entrance during operating hours at the Municipal Service Center
(MSC) to prevent unauthorized entry. A Request for Quotes for MSC security guard services was
posted on the City’s eProcurement system on July 11, 2019. The lowest responsive and
responsible bidder was Universal Security Company. Security guard services under a five-year
contract at the MSC were approved by Council on October 7, 2019 (Staff Report 10574).
Discussion
Adding a secuity guard at the main gate of the RWQCP had been under consideration for some
time due to the high value of the equipment at the Plant, the presence of many hazardous
materials, and concerns for worker and visitor safety. A number of issues needed to be
resolved, including complications from a major construction project at the Plant. Those issues
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were resolved and security guard services through Universal Security Company began on July
24, 2019 via short term purchase orders. Since that time, Public Works department staff
worked with Universal Security Company’s management to establish hours of operation and
detailed work requirements for the guards at the RWQCP, which are substantially similar to
those at MSC. To provide security guard services over a longer term at the RWQCP, staff
recommends amending the existing Universal Security Company contract for MSC security
guard services. Universal Security Company offered the same hourly billing rates for services at
the RWQCP as provided for the MSC, which are valid until the end of contract term on October
7, 2024 (Attachment A, Exhibit C - Compensation and Schedule of Fees). Given that a
competitive solicitation for security guard services for the MSC occurred only a few months
ago, a new solicitation for security guard services explicitly for the RWQCP would not be
expected to result in rates lower than those in the existing contract for the MSC.
Stakeholder Engagement
RWQCP operating costs are distributed among the RWQCP Partner organizations in proportion
to the volume and strength of their sewage contribution to the RWQCP. The Partners were
briefed on the new security measures and associated costs and did not object to them. RWQCP
staff support the security guard services.
Timeline
The current Security Guard Services contract expires October 7, 2024. Pending Council approval
of this recommended Amendment No. 1 with Universal Security Company, the contract term
will remain unchanged.
Resource Impact
The approved five-year contract C20176003 with Universal Security Company has a total not-
to-exceed amount of $472,282, including $449,792 for Basic Services and $22,490 for
Additional Services. With the approval of this amendment, the total not-to-exceed amount will
be revised to $897,344, including $874,854 for Basic Services and $22,490 for Additional
Services. The additional funding associated with this amendment only impacts the Wastewater
Treatment Fund.
Funding for the first year of this amendment to the contract, $65,228.80, is available in the FY
2020 Operating Budget of the Wastewater Treatment Fund. Funding for future years is subject
to the annual budget appropriation and contingent upon Council approval. Contract expenses
are distributed in proportion to the anticipated usage of the security guard services by the
following departments at MSC and the RWQCP: Utilities, Public Works, and Administrative
Services.
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Funding Allocations
Fund Department
Annual Amount
for year 1
Annual Amount
for year 2-5
Vehicle Replacement and
Maintenance Public Works $18,891.28 $18,891.28
Utilities Administration Utilities $34,004.30 $34,004.30
General Fund Public Works $34,948.87 $34,948.87
General Fund Administrative Services $6,611.95 $6,611.95
Current Annual Amount $94,456.40 $94,456.40
Wastewater Treatment (new) Public Works $65,228.80 $89,958.40
Amended Annual Amount $159,685.00 $184,414.80
Amended Contract Total
(5 years) $897,344.00
Environmental Review
This project is categorically exempt from the provisions of the California Environmental Quality
Act (CEQA) under Sections 15301 and 15302 of the CEQA Guidelines as operation, repair,
maintenance, and alteration of an existing facility and no further environmental review is
necessary.
Attachments:
Attachment A: Amendment #1 Contract S20176003 Universal Security
Vers.: Aug. 5, 2019
Page 1 of 10
AMENDMENT NO. 1 TO CONTRACT NO. C20176003
BETWEEN THE CITY OF PALO ALTO AND
UNIVERSAL SEMICONDUCTOR, INC., DBA UNIVERSAL SECURITY COMPANY
This Amendment No. 1 (this “Amendment”) to Contract No. C20176003 (the “Contract” as
defined below) is entered into as of January 13, 2020 by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and UNIVERSAL SEMICONDUCTOR, INC., DBA
UNIVERSAL SECURITY COMPANY, a California Corporation located at 1925 Zanker Road, San Jose,
CA 95112 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in
this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of October 8, 2019 for a five-year term for security guard services at the Municipal
Services Center, as detailed therein.
B. The Parties now wish to amend the Contract in order to add the equivalent security
guard services to the Water Quality Control Plant, with an increase in compensation, as authorized
by City Council approval including its approval of an exemption from competitive solicitation for the
additional scope of work.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20176003
between CONSULTANT and CITY, dated October 8, 2019.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 1, SERVICES, of the Contract is hereby amended to read as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibits A and A-2.
Optional Additional Services (This provision only applies if checked and an
amount for Additional Services is provided under Section 5.)
Additional Services (as defined in Section 5, “Compensation for Original Term”) will
be authorized by CITY, as needed, with a Task Order assigned and approved by
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CITY’s Project Manager, as identified in Section 8 (“Invoicing”). Each Task Order
shall be in substantially the same form as Exhibit A-1 (“General Services Task
Order”). Each Task Order shall contain a specific proposed scope of services,
schedule of performance and compensation amount, in accordance with the
provisions of this Agreement. To accept a Task Order, CONSULTANT shall sign the
Task Order and return it to the Project Manager within the time specified by the
Project Manager, and upon acceptance by CITY, the signed Task Order shall become
part of this Agreement. The cumulative total compensation to CONSULTANT for all
Task Orders issued under this Agreement shall not exceed the amount of
compensation set forth for Additional Services in Section 5 of this Agreement.
CONSULTANT shall only be compensated for Additional Services performed under
an authorized Task Order and CITY may elect to, but is not required to, authorize
Additional Services work up to the maximum compensation amount set forth for
such services in Section 5. Performance of and payment for any Additional Services
are subject to all requirements and restrictions in this Agreement.
SECTION 3. Section 5, COMPENSATION FOR ORIGINAL TERM, of the Contract is hereby
amended to read as follows:
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to
accept as not-to-exceed compensation for the full performance of the Services and
reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ ); OR
The sum of dollars ($ ) per hour, not to exceed a total maximum
compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit C, not
to exceed a total maximum compensation amount of Eight Hundred Ninety-
Seven Thousand Three Hundred Forty-Four dollars ($897,344).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total
maximum compensation set forth above. Any hours worked or services performed by
CONTRACTOR for which payment would result in a total exceeding the maximum amount of
compensation set forth above for performance of the Services shall be at no cost to CITY.
CITY has set aside the sum of Twenty-Two Thousand Four Hundred Ninety dollars
($22,490) for Additional Services (as defined below). CONTRACTOR shall provide
Additional Services only by CITY-approved Task Order as detailed in Section 1
(“Services”) of this Agreement. Compensation shall be based on the hourly rates set
forth above or in Exhibit C (whichever is applicable), or if such rates are not
applicable, a negotiated lump sum. “Additional Services” shall mean any work that
is determined by CITY to be necessary for the proper completion of the Project, but
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which is not included within the Scope of Services described at Exhibits “A” and “A-
2”. Additional Services may only be added as provided for in Section 1 (“Services”)
of this Agreement.
SECTION 4. Section 4, SCHEDULE OF PERFORMANCE, of the Contract is hereby amended
to read as follows:
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based
upon the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibits B and B-1. Time is of the essence in this
Agreement.
SECTION 5. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby
incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A-2” entitled “Scope of Services”, AMENDMENT NO. 1 (ADDED).
b. Exhibit “B-1” entitled “Schedule of Performance”, AMENDMENT NO. 1
(ADDED).
c. Exhibit “C” entitled “Compensation and Schedule of Fees” (REPLACES
PREVIOUS).
SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager or Designee
APPROVED AS TO FORM:
City Attorney or designee
(Contract over $25k)
UNIVERSAL SEMICONDUCTOR INC.,
dba UNIVERSAL SECURITY COMPANY
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
Exhibit “A-2” entitled “SCOPE OF SERVICES”, ADDED
Exhibit “B-1” entitled “SCHEDULE OF PERFORMANCE, ADDED
Exhibit “C” entitled “COMPENSATION AND SCHEDULE OF FEES” AMENDED REPLACES PREVIOUS
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Tim Gorsulowsky
President
George Yan
CFO
Vers.: Aug. 5, 2019
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EXHIBIT A-2
SCOPE OF SERVICES
AMENDMENT NO. 1
CONTRACTOR shall supply all labor, materials, equipment and incidentals necessary to provide
unarmed security guard services at the Regional Water Quality Control Plant (WQCP) facility at
the City of Palo Alto located at 2501 Embarcadero Way, Palo Alto.
CONTRACTOR shall perform unarmed security guard services including, but not limited to, the
following services and activities:
• Control vehicle and pedestrian access to the WQCP during the business hours specified
below.
• Perform inspections, detection, and investigation of all security-related incidents,
violations of City regulations and City employee safety, and report to appropriate
authorities and the CITY’s Project Manager.
• Respond promptly and appropriately to all security-related emergencies.
• On a quarterly basis, CONTRACTOR shall send CITY a proposed schedule of the guards on
duty, which will include the name of each security personnel, working hours, and
emergency contact number for each employee. CITY understands that the staffing
schedule submitted may be subject to change.
• Patrol the entire facility to provide a visible presence to discourage vandalism or
unauthorized entry throughout the day.
• Notify the appropriate law enforcement agency and project manager of any unlawful
activity.
• All non-City vehicles will be stopped at the gate before entry subject to Post Orders.
• All visitors, except as noted herein, must have an appointment with staff on site. CITY
Staff will notify security guards of their visitors with contacts to call when a visitor is
onsite. No one will be allowed on-site without authorization from an authorizing WQCP
employee. If no City employee is onsite to accept the visitor, the visitor will not be
allowed on the premises.
• Valid ID (Driver’s license/City ID badge) is required on all entries from both City
employees and non-City employees who are not driving City marked vehicles. Sign in
records are required for all visitors. Security officer shall be logging visitor’s name,
driver license number, company name, date, and time.
• Commercial deliveries (with routine deliveries) will not be treated as visitors, and will be
allowed to deliver to the stores warehouse located inside the WQCP.
• Shipping and receiving hours are 6 am to 2 pm Monday through Friday excluding
Holidays. No deliveries will be admitted outside these hours unless approved by plant
employees in advance or over the plant radio, for example.
• CITY has an authorized vendor and visitor list that will be provided to the Security
Officer by the City’s Project Manager with periodic updates. These visitors and vendors
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will be checked at the gate and allowed entrance without requiring contact with a plant
employee by the security guard.
• Check ID (Valid Driver’s License) and keep copious written record (who they are visiting,
date, & time) of visitors who enters the premises during normal working hours for daily
reporting. Turn in visitor log no less than weekly to WQCP administrative staff in the
administration building.
• All security officers must be prompt and on time wearing a security uniform with a
name badge. High visibility apparel is recommended due to the requirement of working
in vehicle traffic situations.
• WQCP employee and visitor parking lots are within the facility. Employees will enter the
front main vehicle gate via the security service or through the key-code entry back
vehicle gate.
• Visitors to the WQCP with a legitimate business purpose are authorized to park inside
the WQCP. City employees are allowed to park their personal vehicles inside the WQCP.
• Issue and receive tickets to recycled water trucks filling up at the recycled water
standpipe; turn away recycled water trucks without a legitimate permit to use the
standpipe.
Reports:
In the event of an unusual occurrence, the CONTRACTOR shall submit an Incident Report to the
CITY’s Project Manager.
Immediate threats at WQCP must be reported immediately to public safety officials, as
necessary, and in person or by phone to the onsite Operations Supervisor/Senior Operator,
Assistant Manager of WQCP, and/or Plant Manager.
CONTRACTOR may use their own forms, subject to prior approval from the CITY’s Project
Manager. All reports should be submitted via email. Any and all reports prepared during the
term of this CONTRACT shall become the property of the CITY.
Personnel:
Security officers assigned to perform work under this AGREEMENT shall wear uniforms at all
times. These uniforms must clearly identify the name of the security CONTRACTOR and the
name of the individual security guard, in conformance with the California State Requirements.
This identification may be accomplished through the use of shoulder patches, silk screening or
stitched company emblems, insignias or logos. Security officer shall come equipped with proper
clothing and footwear suited for outdoor conditions. All uniform (collar shirts and pants) shall
be cleaned and pressed regularly. All collar shirts shall be tucked in neatly while on shift with
dark color slacks and shoes. All uniforms shall be approved by the CITY’s Project Manager prior
to wearing them onsite.
Security officers assigned to perform work under this AGREEMENT shall:
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• Be able to communicate effectively in both written and oral English.
• Possess a valid California Driver’s License or Identification.
• Be a legal resident of the United States of America.
• Have successfully completed the educational requirements and successfully passed the
examinations required by the State of California, Department of Consumer Affairs.
• Be capable of performing the assigned tasks.
• Passed background check and have no disqualifying criminal conviction record as
determined by City.
• Must ensure that at least one person every day has a working knowledge of the WQCP.
• Possess a current security guard card.
Code of Conduct
• Staff shall always stand and greet every vehicle (even CITY marked vehicles) as it arrives
to make their presence known to arriving visitors.
• Communications should be firm but polite with all visitors and staff
• Violators of the security Standard Operating Procedure shall be identified to the Project
Manager immediately
• No security staff is allowed on the premises outside of the assigned hours of this
AGREEMENT unless authorized by the CITY’s Project Manager.
• The City Guard shack will be properly maintained at all times.
• Computer, phone, and radio issued by the CITY shall be kept in good condition.
• Security staff shall only park in assigned parking spaces.
• Security staff is not allowed to have visitors while on duty.
Equipment:
CONTRACTOR shall furnish all equipment necessary to perform the work as described herein.
All equipment shall be kept in good condition.
Required equipment shall include but not be limited to:
• Flashlights and two-way radios/smart phones.
• Appropriate winter and summer wear for staff meeting guidelines in the “Personnel”
section above.
Wages:
CONTRACTOR must follow the federal, state, and local minimum wage law each year of the
contract.
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EXHIBIT B-1
SCHEDULE OF PERFORMANCE
AMENDMENT NO. 1
Required Duties:
CITY requires two unarmed security officers for the Water Quality Control Plant with operation
hours from 5:30 am to 4:00 pm, Monday through Friday, excluding holidays. The morning shift
shall be from 5:30 am to 1:30 pm and the later (mid-morning) shift shall be from 8:00 am to
4:00 pm. A security sweep and inspection of the entire WQCP facility shall occur as required in
post orders, including perimeter fence lines, building exterior doors, storage containers,
employee parking lots, and all vehicle and pedestrian gates. A security officer shall be on post at
the main entrance gate from 5:30 am to 4:00 pm at all times. The different time shifts will allow
for coverage at the guard station during lunch and regularly scheduled breaks, as well as
restroom breaks.
If for any reason the security officers cannot meet the required schedule, CONTRACTOR shall
notify the CITY’s designated Project Manager at least 24 hours in advance.
Holidays
There are 11 City holidays.
DATE
January 1 - New Years Day
3rd Monday in January - Martin Luther King Jr.
3rd Monday in February - Lincoln’s Birthday
Last Monday in May – Memorial Day
4th of July
1st Monday of September - Labor Day
2nd Monday of October – Columbus Day
November 11 - Veteran’s Day
Thanksgiving Day (2)
December 25 - Christmas Day
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EXHIBIT C
COMPENSATION AND SCHEDULE OF FEES
(AMENDED, REPLACES PREVIOUS)
CITY shall pay CONTRACTOR according to the following rate schedule.
A. Maximum Compensation
The maximum amount of compensation to be paid to CONTRACTOR, including both payment
for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5
and 6 of the Agreement. Any services provided for hours worked for which payment would
result in a total exceeding the maximum amount of compensation set forth herein shall be at
no cost to CITY.
The maximum compensation on an annual basis are as follows:
Year 1: Basic Services $155,187.20
Additional Services $4,497.92
Year 2: Basic Services $179,916.80
Additional Services $4,497.92
Year 3: Basic Services $179,916.80
Additional Services $4,497.92
Year 4: Basic Services $179,916.80
Additional Services $4,497.92
Year 5: Basic Services $179,916.80
Additional Services $4,497.92
B. Additional Services
Additional Services, as defined in Section 5 of this Agreement shall be compensated at the
following hourly rates:
Year 1 (October 8, 2019 – October 7, 2020)
Job Class/Title
Rate Type
Base
Labor
Rate
Direct &
Indirect
Overhead
Rate
Mark Up
Total
Hourly
Rate
Security Officer Straight $ 18.00 $ 3.42 $ .98 $ 22.40
Security Officer Overtime $ 27.00 $ 4.60 $ 2.00 $ 33.60
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Year 2 (October 8, 2020 – October 7, 2021)
Job Class/Title
Rate Type
Base
Labor
Rate
Direct &
Indirect
Overhead
Rate
Mark Up
Total
Hourly
Rate
Security Officer Straight $ 18.00 $ 3.42 $ .98 $ 22.40
Security Officer Overtime $ 27.00 $ 4.60 $ 2.00 $ 33.60
Year 3 (October 8, 2021 – October 7, 2022)
Job Class/Title
Rate Type
Base
Labor
Rate
Direct &
Indirect
Overhead
Rate
Mark Up
Total
Hourly
Rate
Security Officer Straight $ 18.50 $ 3.42 $ .48 $ 22.40
Security Officer Overtime $ 27.75 $ 4.80 $ 1.05 $ 33.60
Year 4 (October 8, 2022 – October 7, 2023)
Job Class/Title
Rate Type
Base
Labor
Rate
Direct &
Indirect
Overhead
Rate
Mark Up
Total
Hourly
Rate
Security Officer Straight $ 18.50 $ 3.42 $ .48 $ 22.40
Security Officer Overtime $ 27.75 $ 4.80 $ 1.05 $ 33.60
Year 5 (October 8, 2023 – October 7, 2024)
Job Class/Title
Rate Type
Base
Labor
Rate
Direct &
Indirect
Overhead
Rate
Mark Up
Total
Hourly
Rate
Security Officer Straight $ 18.50 $ 3.42 $ .48 $ 22.40
Security Officer Overtime $ 27.75 $ 4.80 $ 1.05 $ 33.60
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