Fremont City Council Meeting: 07/15/25 07:00 PM
3300 Capitol Avenue Div/Dept: Maintenance Operations
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5493) DOC ID: 5493
Updated: 7/11/2025 8:41 AM by Dina Lewis Page 1
BOILER MAINTENANCE SERVICES - Approval of a Service Agreement with Silicon Valley Mechanical for Boiler Maintenance Services at City-Owned Buildings
Contact Persons:
Name: Pat Kendrick Kelly King
Title: Building Maintenance Manager Maintenance Operations Director Div/Dept: Maintenance Operations Maintenance Operations Phone: 510-979-5768 510-979-5753
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to facilitate boiler maintenance services for boilers located in buildings owned by the City of Fremont (“City”).
BACKGROUND: There are thirteen boilers in nine City-owned buildings. Nine boilers are heating hot water boilers that provide heating for indoor climate control. Four boilers are domestic hot water boilers that provide hot water for general purpose use. Boilers are located at the Animal Shelter, Police Department, Jail, Development Services Center, Fremont Main Library, Fire Station 7, Maintenance Center, Age Well Center Lake Elizabeth, and Warm Springs Community Center.
Boiler preventive maintenance services are a necessity as scheduled routine maintenance will keep City boilers running smoothly, increase boiler efficiency, reduce repair needs with unexpected downtime, and prolong their useful lifecycle. Boiler services will include semi-annual and annual maintenance services. During these services, a checklist of components will be inspected, cleaned, and adjusted as required for optimum performance based on manufacturer’s recommendations and industry standards.
DISCUSSION/ANALYSIS: A Request for Proposals (RFP) was put out for bid on May 13, 2025, and closed on June 3, 2025.
The City received three proposals for this service: Silicon Valley Mechanical, Mesa Energy Systems, and A&B Mechanical. These proposals were evaluated by a team of City staff applying the following factors: qualifications, feasibility, responsiveness, service agreement, and service rates. Based on the results of the evaluation process, staff recommends approval of the service agreement with Silicon Valley Mechanical to provide the services outlined in the RFP.
The service agreement will be a seven-year term, beginning July 1, 2025 through June 30, 2032. The total not-to-exceed amount for Fiscal Year 2025/26 is $134,715 ($34,715 for scheduled maintenance services plus up to $100,000 annually for reactive maintenance contingency).
FISCAL IMPACT: The initial annual cost of the Service Agreement with Silicon Valley Mechanical is $134,715 ($34,715 for scheduled maintenance services plus up to $100,000 annually for reactive maintenance contingency). Annual price increases for the scheduled Council Staff Report (ID # 5493) Meeting of July 15, 2025 Updated: 7/11/2025 8:41 AM by Dina Lewis Page 2
maintenance services amount are included based on the San Francisco-Oakland-Hayward Consumer Price Index for All Urban Consumers (CPI-U), which will be calculated on an average for the period of April to April; however, the price increase shall not exceed 4 percent in any year. Price increases will take effect on July 1 of each year, with the first increase scheduled to occur on July 1, 2026. If no increase is indicated in the CPI Index, the Contractor will not be allowed a price increase. Sufficient funding for the first year of services was appropriated to the Maintenance Operations Department in the General Fund FY 2025/26 adopted operating budget. Funding for future year services will be included in the proposed operating budgets for those years.
ENVIRONMENTAL REVIEW: The proposed action and project are categorically exempt from the requirements of the California Environmental Quality Act (CEQA) per each on a separate and independent basis, the following sections of Title 14 of the California Code of Regulations: (1) CEQA Guidelines Section 15061(b)(3), in that the service agreement does not have the potential to cause a significant effect on the environment, and is not subject to CEQA review; and, (2) CEQA Guidelines Section 15301(d), as the scope of work involves repair and maintenance of existing mechanical equipment involving negligible or no expansion of existing or former use.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager, or designee, to execute a seven-year service agreement (July 1, 2025 to June 30, 2032) with Silicon Valley Mechanical for boiler maintenance services of City owned boilers, at an annual cost of $134,715 ($34,715 for scheduled maintenance services plus up to $100,000 annually for reactive maintenance contingency), with annual price increases based on CPI-U but capped at 4 percent per year.