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APPROVE MOTION TO AWARD A SERVICE CONTRACT FOR CITY OF STOCKTON ELEVATOR MAINTENANCE AND REPAIR SERVICES
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a five-year Service Contract in the amount not to exceed $209,120 to KONE, Inc. of Sacramento, CA, for City of Stockton Elevator Maintenance and Repair Services, Project No. OM-23-087.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The City maintains 10 elevators and two wheelchair lifts. The City contracts for regular inspection, preventative maintenance, and repair of this equipment to reduce downtime and comply with State-mandated inspections.
On February 6, 2023, the City advertised a Request for Proposals (RFP) for Elevator Maintenance and Repair Services, Project No. OM-23-087. On February 23, 2023, the City received three proposals for this project. A Selection Committee evaluated the proposals and found KONE, Inc. of Sacramento, CA, to be the most qualified vendor for this project.
Staff recommends that Council approve a motion to award a five-year Service Contract in the amount not to exceed $209,120 ($41,824 annually) to KONE, Inc. (Attachment A). Contracted services will begin July 1, 2023, and expire June 30, 2028, with no option for extension. The Service Contract will be funded from Public Works, Police, and Community Development Departments' Annual Operating Budgets (Attachment B).
DISCUSSION
Background
The City of Stockton Public Works Facilities Maintenance Division is responsible for maintaining 10 elevators and two wheelchair lifts located in City Facilities. The City contracts for regular inspection, preventative maintenance, and repair on this equipment to reduce downtime and comply with State-mandated inspections. The elevators are located at the Cesar Chavez Library, City Hall, Main Police Department, and the Stewart Eberhart Building. The wheelchair lifts are located at the Permit Center and the Podesto Teen Impact Center. The City does not have staff with the technical training to perform the preventative maintenance and repairs to the elevators and wheelchair lifts.
On June 19, 2018, by Motion No. 2018-06-19-1118, Council approved a Service Contract with Otis Elevator Company for City of Stockton Elevator Maintenance and Repair Services, Project No. OM-18-087. The Service Contract, in the amount of $182,000, was for elevator services for a three-year term, which began June 28, 2018, with the option of one two-year extension. The contract will end on June 30, 2023.
Present Situation
On February 6, 2023, the City advertised an RFP for Elevator Maintenance and Repair Services, Project No. OM-23-087. On February 23, 2023, three proposals were received from the following vendors:
• EnPro Elevator, Inc. (Rancho Cordova, CA)
• KONE, Inc. (Sacramento, CA)
• TK Elevator Company (West Sacramento, CA)
A Selection Committee evaluated and ranked all proposals based on each firm's experience, quality of work, qualifications of staff, communication, and cost. KONE, Inc. received the highest ranking based on the noted criteria and was determined to be the most qualified vendor for this project. The fixed fee provides services for complete preventative maintenance, repairs, and required testing pursuant to the manufacturer's standards or current Elevator Safety Orders of the California Code of Regulations, whichever is more stringent.
Staff recommends that Council approve a motion to award a five-year Service Contract in the amount not to exceed $209,120 ($41,824 annually) to KONE, Inc. for Elevator Maintenance and Repair Services, Project No. OM-23-087 (Attachment A). Contracted services will begin July 1, 2023, and expire June 30, 2028, with no option for extension.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The City does not have staffing available to perform elevator maintenance services and repairs.
2. Use of the RFP process is appropriate for this Service Contract because it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of the criteria helps ensure the selection of a vendor that will provide the highest quality professional service, which is in the public interest.
3. The City negotiated a contract following the solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
FINANCIAL SUMMARY
The Service Contract is proposed to be funded at the set fees listed below and in accordance with the Scope of Work in the Service Contract (Attachment A).
ORIGINAL FIVE-YEAR TERM ANNUAL COST
July 1, 2023 - June 30, 2024 $ 41,824
July 1, 2024 - June 30, 2025 $ 41,824
July 1, 2025 - June 30, 2026 $ 41,824
July 1, 2026 - June 30, 2027 $ 41,824
July 1, 2027 - June 30, 2028 $ 41,824
TOTAL CONTRACT AMOUNT $209,120
The $41,824 annual cost includes $10,000 in contingency funds to cover possible vandalism and major equipment failure that is not covered in the monthly services for the Elevator Maintenance and Repair Services, Project No. OM-23-087.
Funding is available for expenditures, including the $10,000 contingency, in the first one-year term of the contract through June 30, 2024. The contract, including the $10,000 contingency, will be funded from Public Works, Police, and Community Development Departments' FY 2023-24 Operating Budgets for the first year of the contract. Funding for the remaining years of the contract will be contingent on future annual budget appropriations. The funding split will remain the same over the life of the contract as outlined in the Original Five-Year Term table (Attachment B).
There is no additional impact to the City's General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Service Contract with KONE, Inc.
Attachment B - Funding Accounts for Contract