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agenda-report ENERGY MANAGEMENT SYSTEM SERVICES - Approval of a Service Agreement with Syserco Inc., for Support Services and Part Purchases for the City’s Energy Management System

Fremont City Council
April 21, 2026

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agenda-report ENERGY MANAGEMENT SYSTEM SERVICES - Approval of a Service Agreement with Syserco Inc., for Support Services and Part Purchases for the City’s Energy Management System
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April 21, 2026
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Fremont City Council
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Fremont City Council Meeting: 04/21/26 07:00 PM
3300 Capitol Avenue Div/Dept: Maintenance Operations
Fremont, CA 94538 Category: Agreements and Contracts

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5675) DOC ID: 5675
Updated: 4/17/2026 11:20 AM by Dina Lewis Page 1
ENERGY MANAGEMENT SYSTEM SERVICES - Approval of a Service Agreement with Syserco Inc., for Support Services and Part Purchases for the City’s Energy Management System
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 support services for the Energy Management System (EMS System) used for City buildings.

Background: The City’s EMS System provides building automation for Heating, Ventilation, and Air Conditioning (HVAC) equipment. A local server runs the Compass Software platform that directly communicates with Ascent Control Module (ACM) global controllers at 37 City buildings. Each ACM communicates with the building’s HVAC system. Through this platform, equipment is programmed through a schedule to start, run, and stop at specific times, measures and control airflow, establishes and monitors temperature setpoints, and aids in equipment maintenance and troubleshooting.

Buildings with this advanced technology include City Hall, all Fire Stations, the Police Department Campus, Animal Shelter, Community Centers, Family Resource Centers, Senior Centers, Libraries, and Administration Buildings.

Discussion/Analysis: Alerton manufactured products have been adopted for use by the City for all EMS locations. For compatibility purposes, it is necessary to continue using Alerton products for the EMS system, and Syserco Inc. is the manufacturer’s authorized local sole source distributor for Alerton products. The City’s most recent five-year agreement with Syserco Inc. expired on March 31, 2026.

The recommended agreement is a five-year Technology Service Agreement beginning July 1, 2026, through June 30, 2031, for preventive maintenance, annual software and cyber security updates, controller firmware updates, disaster recovery, on-call technical support, a 20% discount for onsite technical support, and a 60% discount for all Alerton product purchases.

Council Staff Report (ID # 5675) Meeting of April 21, 2026 Updated: 4/17/2026 11:20 AM by Dina Lewis Page 2
Fiscal Impact: The initial annual cost of the Technology Service Agreement with Syserco Inc. is $108,857 ($33,857 scheduled services, $25,000 for as needed sole source parts purchases plus $50,000 annually for reactive maintenance contingency). Annual price increases for the scheduled maintenance services amount are based on the
San Francisco-Oakland-Hayward Consumer Price Index for All Urban Consumers (CPI-U) and shall not exceed 4% in any year. Sufficient funding is available in the FY 2026/27 Maintenance Operations Department General Fund adopted operating budget. Future year services will be included in the proposed General Fund operating budget 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.

Recommendation: Authorize the City Manager, or designee, to execute a 5-year service agreement (July 1, 2026 to June 30, 2031) with Syserco Inc. at an annual cost of $108,857 ($33,857 scheduled services, $25,000 for as needed sole source parts purchases plus $50,000 annually for reactive maintenance contingency), with annual price increases based on CPI-U but capped at 4% per year.

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