"Tempers flared on Tuesday as the City Council grudgingly agreed to extend a contract with a security company that is linked to a figure in the FBI corruption investigation. Five councilmembers voted to extend the city's contract with ABC Security Services through mid 2026, enough time for staff to conduct a new search for a vendor. The city will also pay ABC Security $818,989 to cover outstanding invoices."
"All told, the firm stands to make up to approximately $6.75 million, placing the lifetime value of the contract at approximately $35.3 million. The council amended the proposal by shortening the extension by three months. Councilmembers Zac Unger, Charlene Wang, Janani Ramachandran, Ken Houston, and Rowena Brown voted for the extension. Carroll Fife voted no, Noel Gallo was absent, and Kevin Jenkins abstained."
"Repeated extensions became more of an issue in 2024 when reports emerged that ABC Security has ties to Mario Juarez, a Fruitvale businessman connected to the federal corruption investigation into former Mayor Sheng Thao and others. According to public records, Juarez and the owner of ABC Security have done real estate deals together, and Juarez lobbied the city in 2022 when it looked like the firm was on the verge of losing its contract."
City Council extended ABC Security Services' contract through mid-2026 to allow staff time to conduct a new vendor search while agreeing to pay $818,989 in outstanding invoices. The firm could receive up to about $6.75 million during the extension, with a lifetime contract value near $35.3 million. Council shortened the extension by three months. The contract has been repeatedly extended since ABC began guarding city properties in 2018 after failed replacement attempts. Controversy intensified in 2024 after reports linked ABC to Mario Juarez and suggested past lobbying and possible intervention by former Mayor Sheng Thao.
Read at The Oaklandside
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