City Council
Agenda Report

Julian Lee, Director of Public Works

Christopher Diaz, Public Works Superintendent

The City relies on elevators and vertical-transportation equipment at five municipal facilities to provide safe and accessible public services. TRE Elevator Corporation currently provides recurring monthly maintenance and inspection services and responds to repair calls as needed. Staff recommends extending these services through Fiscal Year (FY) 2026–27 and increasing the compensation amount in the current agreement by $24,900. The proposed amendment would preserve uninterrupted service at the same rates charged during the prior fiscal year. Because the total cumulative agreement amount would exceed the City Manager's $30,000 contracting authority, City Council approval is required.

Early in Fiscal Year 2024–2025, the City conducted an informal procurement process for citywide elevator maintenance and repair services after determining that it would not continue with its previous service provider. TRE Elevator Corporation was the only vendor to respond to the City’s request, met the City’s service and compliance requirements, and offered acceptable monthly inspection rates. The City subsequently entered into an agreement with TRE Elevator Corporation in November 2024 for an amount not to exceed $15,000, with a term ending June 30, 2025. TRE provided services during the remaining months of FY 2024–25.

Following satisfactory performance during the initial service period, the City entered into a one-year agreement with TRE Elevator Corporation for FY 2025–26 in an amount not to exceed $26,400, with the agreement expiring June 30, 2026.

At the time the FY 2025–26 agreement was being considered, staff also considered pursuing a multi-year agreement for elevator maintenance and repair services. However, the initial direction was to proceed with a one-year agreement to allow the City additional time to evaluate the vendor’s performance and service needs while preparing for a formal solicitation for a potential multi-year agreement. This approach was also intended to allow the City to fill the vacant Facilities Supervisor position, providing dedicated oversight of the elevator maintenance program and the vendor’s performance, service levels, and compliance with the City’s operational requirements.

Due to organizational changes within the Department at the beginning of FY 2026–27, the City’s pursuit of a formal solicitation was delayed. Because elevator maintenance and inspection services are necessary to maintain compliance with applicable requirements and support public safety, an extension of the existing agreement was determined to be the most appropriate approach to avoid disruption to these essential services while the City continues its procurement planning. The City intends to proceed with a formal solicitation for citywide elevator maintenance and repair services, with consideration of a multi-year agreement, once the solicitation process can be appropriately completed.

The existing services support elevator and vertical-transportation equipment at City Hall, the Library, the Public Works facility, the Police Department, and the facility at 825 Mission Street. Continued preventive maintenance, inspections, and timely repair response are necessary to support equipment reliability, accessibility, compliance, and uninterrupted City operations.

The proposed First Amendment with TRE Elevator Corporation would extend the agreement through June 30, 2027, and add $24,900 in additional compensation for the services (Attachment 1). The amendment would continue regular monthly maintenance and inspection services as well as on-call repairs. TRE Elevator Corporation has confirmed that its rates will remain unchanged from the prior fiscal year.

Under the City’s Purchasing Policy, agreements exceeding $30,000 require City Council approval. Although the FY 2026–27 increase is $24,900, the amendment would raise the total cumulative agreement amount to $51,300. Accordingly, the amendment is being presented to the City Council for approval.

Staff recommends continuing with TRE Elevator Corporation because the firm was the only responsive and available provider during the prior outreach, is familiar with the City’s equipment and service locations, and can continue service without interruption. Maintaining the same contractor also avoids a gap in recurring maintenance and call-out coverage while preserving the prior-year rates. These factors support proceeding with fewer than three quotations under the City’s purchasing procedures.

The proposed amendment is limited to one additional fiscal year. During the amended term, staff will evaluate future procurement options, including a competitive solicitation for a multi-year agreement, to determine the approach that best meets the City’s operational and procurement needs.

Approval of the First Amendment would increase the agreement by $24,900, resulting in a total not-to-exceed amount of $51,300. Funding for the FY 2026–27 services is available in both GL Accounts 105-6010-6601-8180-000 Facilities Maintenance and Improvement Contract Services and 500-6010-6710-8120-000 Water Distribution Building Maintenance.

No additional appropriation is requested.