Title
[Change Order] Citywide Elevator, Escalator and Lift Repair and Maintenance Services
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FileID
File ID: 2026-01345
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Change Order No. 4 to Contract No. 2022-1488 with Kone, Inc. for an amount not-to-exceed $500,000 for a new total amount not-to-exceed $1,961,850; 2) ratifying the City Manager or designee’s approved Change Orders No. 1-3 to City Contract No. 2022-1488; and 3) resetting the City Manager or designee’s authority to issue change orders for Contract No. 2022-1488.
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Contact
Contact: Norm Colby, Facilities Maintenance Superintendent, (916) 808-8335, ncolby@cityofsacramento.org; James Christensen, Facilities Manager, (916) 808-5863, jechristensen@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Change Order No.4 Kone, Inc.
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Description/Analysis
IssueDetail
Issue Detail: On November 15, 2022, the City Council awarded a five-year contract to Kone, Inc for citywide elevator, escalator, and lift repair and maintenance services with a not-to-exceed amount of $1,421,350.
The original contract amount has been exhausted due to unforeseen operational and market conditions that could not have been reasonably anticipated at the time of contract execution. During the contract term, the City experienced a significant increase in emergency service calls and major repairs to aging elevator systems that have reached or exceeded their expected service life.
Most of these elevators serve the City's public parking garages, where reliable service is essential to maintain public access between parking levels, comply with accessibility requirements, and support daily operations. Elevator outages can significantly impact customers, particularly individuals with disabilities and others who rely on elevator access.
In addition, repair costs have increased due to higher labor rates for specialized elevator technicians, escalating material and equipment costs, manufacturer price increases, tariffs, supply chain disruptions, and the limited availability of replacement parts for obsolete systems. Collectively, these unforeseen conditions have exhausted the original contract authority. Additional funding is necessary to maintain safe, reliable elevator service and minimize disruptions to the public.
To date, three change orders have been executed: Change Order No. 1 added wireless communication to Capital Garage Elevators so Kone can provide value-added service. No. 2 added maintenance to the lift at Winn Park to the list of equipment supported by the Kone Contract. Change Order No. 3 replaced a failed drive for elevator #2 at Capital Garage for an amount not to exceed $40,500. Change Order No. 4 - in the amount not to exceed $500,000, is required to be executed to continue the elevator maintenance and repair contract terms, providing uninterrupted service throughout the remaining year of the contract term.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code
Chapter 3.04.020(3), which requires City Council approval for contract amendments exceeding 8% of the original contract price on contracts originally awarded for over $1,000,000.
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EconomicImpacts
Economic Impacts: The recommended contract is expected to create 3.70 (2.35 direct jobs and 1.35 job through indirect and induced activities) and create $488,261 in total economic output ($312,988 of direct output and another $175,273 of output in indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act: The action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301. The action involves the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The exemption covers interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances; existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety); restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety, unless it is determined that the damage was substantial and resulted from an environmental hazard such as earthquake, landslide, or flood.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Ratifying Change Orders No. 1, 2, and 3, approving Change Order No. 4 and resetting the City Manager’s authority to approve change orders ensures the City’s elevators, escalators and lifts can be maintained and repaired as required by the State of California and the Citywide needs through the elevator maintenance Contract No. 2022-1488.
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FinancialConsiderations
Financial Considerations: The Department of Public Works is responsible for elevator, escalator, and lift repair and maintenance services in multi-tenant facilities. Funding for this work is provided by the Facilities Maintenance operating budget (General Fund, Fund 1001). Sufficient funding is available in this budget for FY2027 to purchase these services through June 30, 2027.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Kone, Inc. is an LBE.
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