CITY COUNCIL ACTION REQUEST
Department(s)
Finance
CEQA
Not a Project, File No.
PP17- 003,
Agreements/Contracts
(New or Amended)
resulting in no physical
changes to the
environment.
Coordination
City Attorney’s Office;
City Manager’s Budget
Office; Public Works
Department;
Transportation
Department
Dept. Approval
/s/
Maria Öberg
Council District(s)
Citywide
CMO Approval
9/16/2025
SUBJECT: Seventh Amendment to the Agreement with Kone, Inc. for Elevator Maintenance Services
RECOMMENDATION
Adopt a resolution authorizing the City Manager, or her designee, to negotiate and execute the Seventh Amendment to the Agreement with Kone, Inc. (Moline, Illinois) for elevator maintenance services to:
(a) Extend the term of the Agreement for up to two additional one-year option terms for a total of 19 options through November 20, 2027, subject to the appropriation of funds; (b) Amend the scope of services to include approximately 34 elevators not previously covered under the Agreement; and
(c) Increase the total compensation by $1,591,220 for a maximum compensation not-to-exceed $5,341,192 to cover the estimated cost for the option term beginning on or about November 21, 2025 and ending on or about November 20, 2026, subject to the appropriation of funds.
BASIS FOR RECOMMENDATION
The Public Works Department, in coordination with the Transportation Department, oversees the maintenance and repair of elevators at various City Hall facilities. The elevators require regular maintenance, testing, and inspection services to ensure proper and safe operation for City employees and the public, and compliance with state law.
In May 2007,
1 City Council authorized staff to enter into an agreement with Kone, Inc. to provide elevator maintenance services to the City. Between June 2009 and May 2023,2 the agreement was amended multiple times to extend the term, revise the scope, and adjust the compensation to meet the City’s changing needs. The current term of the agreement expires on November 20, 2025. Staff are currently working on a new solicitation for comprehensive Citywide elevator maintenance services. Staff expect that solicitation will be released by January 2026. Given the complexity and comprehensiveness of the solicitation however, staff does not expect that the solicitation and award of contract or contracts will be completed before January 2027. In the meantime, it is important to service and repair the elevators as needed without any interruption to meet safety and compliance requirements.
1 May 2007 Council Resolution: https://records.sanjoseca.gov/Resolutions/RES73770.PDF 2 Council Resolutions and Memos for Amendments:
June 2009: https://records.sanjoseca.gov/Resolutions/RES75028.PDF October 2010: https://records.sanjoseca.gov/Resolutions/RES75602.PDF May 2013: https://records.sanjoseca.gov/Resolutions/RES76668.PDF February 2021: https://records.sanjoseca.gov/Contracts/CON630767-018.pdf May 2021: https://sanjose.legistar.com/View.ashx?M=F&ID=9380480&GUID=F47C171C-A4DB-4E6D- BD07-AE61C01CB4BD
May 2023: https://records.sanjoseca.gov/Resolutions/RES2023-136.pdf COUNCIL AGENDA: 10/7/25
FILE: 25-1063
ITEM: 2.9
Approval of these recommendations means the City will continue to receive elevator maintenance and repair services to ensure safe and efficient operation without interruption while a new procurement is in process.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input associated with this action.
Office of Equality Assurance: Prevailing Wage is applicable to this agreement.
COST AND FUNDING SOURCE
The recommended amendment to this agreement of an increase of $1,591,220 is funded by the Public Works Non-Personal/Equipment appropriation in the General Fund. The 2025-2026 Adopted Operating Budget was approved on June 10, 2025 and adopted on June 17, 2025 by the City Council.
FOR QUESTIONS CONTACT: For program related questions, please contact Walter Lin, Deputy Director of Public Works, at [email protected]. For procurement and contracts related questions, please contact Albie Udom, Deputy Director of Finance – Purchasing and Risk Management, at [email protected].