REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SUBJECT
Title
Approve an increase to the citywide security services Requirements Contract with Universal Protection Services, LP dba Allied Universal Services of Fresno, California in the total amount of $2,095,000 per year, for a revised total annual amount not-to-exceed $5,595,000 for the remainder of the contract term plus annual CPI adjustments, to provide security for the Sequoia Brewery property through the close of escrow, provide security services of parking facilities beginning January 2026 for the Planning and Development Department and provide security services for the Department of Transportation/FAX (Bid File 9686)
Body
RECOMMENDATION
Staff recommends Council approve an increase to the citywide security services Requirements Contract with Universal Protection Services, LP dba Allied Universal Services of Fresno, California in the total amount of $2,095,000 per year, for a revised total annual amount not-to-exceed $5,595,000 for the remainder of the contract term plus annual CPI adjustments, to provide security for the Sequoia Brewery property through the close of escrow, provide security services of parking facilities beginning January 2026 for the Planning and Development Department and provide security services for the Department of Transportation/FAX.
EXECUTIVE SUMMARY
On April 24, 2025, City Council approved a contract with Allied for $3,500,000 per year for one year with four optional one-year extensions to provide Citywide security services. In accordance with Resolution 2018-075, individual amendments which exceed 1% of the total agreement price or $100,000 (whichever is greater) and multiple amendments which aggregate more than 10% of the agreement price shall be subject to prior authorization from the City Council. To date, multiple amendments for additional locations and security services throughout the City have been authorized totaling 2.1% ($73,874.82).
Recent change orders have expanded services to include security guard coverage at the offsite FAX employee parking lot and 24/7 coverage at Sequoia Brewery. Additionally, security of City parking facilities will transition from ACE Parking Management in January 2026 to this citywide Requirements Contract. These increases, along with prior change orders totaling $73,874.82 necessitate a revised not-to-exceed annual contract ceiling.
Staff recommends increasing the contract by $2,095,000 per year for the remaining contract term and any extensions, resulting in a total revised annual not-to-exceed amount of $5,595,000, plus annual CPI adjustments. This increase will ensure sufficient authority to address emerging and unforeseen security needs citywide.
BACKGROUND
A Notice Inviting Proposals was advertised on September 19, 2024 and posted on the City’s website. Over 600 potential proposers were notified of the RFP, 75 of which downloaded the RFP documents. Nineteen proposals were received by the October 22, 2024 deadline. A Selection Committee determined Universal Protection Services, LP dba Allied Universal Services (Allied) provided the best value to the City and recommended an award.
On April 24, 2025, City Council approved a contract with Allied for $3,500,000 per year for one year with four optional one-year extensions to provide Citywide security services.
Since the award, several additional security assignments have been added to address emerging needs citywide, including:
1. Minor security assignments as shown in the attached Exhibit A totaling $74,000.
2. Security coverage at an offsite FAX employee parking area adjacent to the Municipal Service Center (MSC) located at Department of Public Utilities Administration building estimated at $140,000 annually. Security coverage will eventually be discontinued upon completion of various construction projects impacting the FAX and MSC employee parking areas.
3. 24/7 security coverage at Sequoia Brewery property estimated at $111,000. The City will be reimbursed by Sequoia Brewery for security services provided from October 31, 2025, through the close of escrow. The estimated reimbursement is $59,362 if services are provided through close of escrow.
4. Security coverage of City parking facilities will begin January 2026. Security is currently provided under an agreement for parking management services with ACE Parking Management. When the agreement expires in January 2026, the Planning and Development Department, Parking Division, will begin self-management of the City’s parking facilities. As a result, security services provided under ACE Parking Management will transition to this citywide contract. The security assignments will be comparable to those provided by ACE Parking Management. The hourly rate for security services under this contract are 2% less in comparison to the rates billed by ACE Parking Management. The cost of security for the City’s parking facilities beginning in January 2026 is estimated at $620,000 through the end of FY2026 and sufficient appropriations exist within the adopted Planning and Development budget for this expense. The estimated annual cost thereafter is $1,470,000.
5. As future increases to this agreement are subject to Council approval per Resolution 2018-075, General Services has included $300,000 in spending authority to quickly respond to unforeseen Department requests for added security during the remainder of the contract duration. If security needs arise, each Department will be responsible for identifying funding within their adopted budget to fund each individual security assignment.
A summary of the original contract amount and requested changes is as follows:
|
Original annual contract amount: |
$3,500,000 |
|
|
|
|
Minor security assignments per Exhibit A: |
$74,000 |
|
Offsite FAX/MSC employee parking lot security: |
$140,000 |
|
Sequoia Brewery property security: |
$111,000 |
|
Security of City’s parking facilities |
$1,470,000 |
|
Unforeseen future security needs: |
$300,000 |
|
|
|
|
Subtotal of Requested Increases |
$2,095,000 |
|
Total revised annual contract amount: |
$5,595,000 |
|
|
|
All services are billed hourly as services are incurred by the security services contractor.
Approval of this increase will grant the General Services Department with the spending authority to provide security services up to the maximum annual amount as listed above.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was considered during the original award. Universal Protection Services, LP dba Allied Universal Services, has an office within the City of Fresno limits.
FISCAL IMPACT
The funding has been included in each department’s line-item budget as part of the FY2026 adopted budget to cover the cost of security services.
The cost of security for the City’s parking facilities beginning in January 2026 is estimated at $620,000 through the end of FY2026 and sufficient appropriations exist within the adopted Planning and Development budget for this expense. The estimated annual cost thereafter is $1,470,000 and equal to the Planning and Development’s FY2026 line-item budget for security services of parking facilities, subject to Council approval in future fiscal years.
Attachment:
Exhibit A Summary of Change Orders Through November 19, 2025