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APPROVE MOTION TO AWARD A SERVICE CONTRACT TO OTIS ELEVATOR COMPANY FOR CITY OF STOCKTON ELEVATOR MAINTENANCE AND REPAIR SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a three-year Service Contract in the amount not to exceed $109,200 to Otis Elevator Company of North Highlands, CA, for City of Stockton Elevator Maintenance and Repair Services, Project No. OM-18-087.
2. Authorize the City Manager to execute one optional two-year extension to this Service Contract in the amount not to exceed $72,800, for a total aggregate amount of $182,000.
3. 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 on this equipment to reduce downtime and comply with State-mandated inspections.
On March 28, 2018, the City advertised a Request for Proposals (RFP) for Elevator Maintenance and Repair Services, Project No. OM-18-087. Two firms submitted proposals for this project. The Selection Committee evaluated the proposals and found Otis Elevator Company of North Highlands, CA, to be the most qualified and highest ranked firm.
It is recommended that Council approve a motion authorizing the City Manager to execute a three-year Service Contract in the not to exceed amount of $109,200 ($36,400 annually) with Otis Elevator Company (Attachment A). Contracted services will begin July 1, 2018, and will expire June 30, 2021, with the option of one two-year extension at the same annual rates. With the extension, in the not to exceed amount of $72,800, the total contract amount is $182,000. The contract will be funded from Public Works, Police, and Community Development Departments’ Operating Budgets.
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 on the elevators and wheelchair lifts.
On July 15, 2016, the City entered into a contract with Otis Elevator Company for elevator maintenance and service with an initial term of one-year and nine months. On April 16, 2018, Contract Change Order (CCO) No. 1 was approved to modify the original contract term expiration date from March 31, 2018 to June 30, 2018, at the agreed upon contract price to synchronize the contract dates with the City’s fiscal year calendar.
Present Situation
On March 28, 2018, the City advertised a RFP for Elevator Maintenance and Repair Services, Project No. OM-18-087. On April 16, 2018, two proposals were received from the following firms:
• Elevator Technologies (El Dorado Hills, CA)
• Otis Elevator Company (North Highlands, CA)
A Selection Committee evaluated and ranked all proposals based on each firm’s experience, quality of work, qualifications of staff, communication, and cost. Otis Elevator Company received the highest ranking based on the noted criteria and was determined to be the most qualified firm 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 Council approve a motion to award a three-year Service Contract with set annual rates not to exceed the amount of $109,200 ($36,400 annually) with Otis Elevator Company for Elevator Maintenance and Repair Services, Project No. OM-18-087 (Attachment A). Contracted services will begin July 1, 2018, and expire June 30, 2021, with the option of one two-year extension at the same annual rates. With the extension, the total not to exceed aggregate contract amount is $182,000.
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 this criteria helps ensure 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 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 in Attachment B and in accordance with the Scope of Work in the Service Contract.
The $36,400 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-18-087 (Attachment A).
Funding is available for expenditures, including the $10,000 contingency, in the first one-year term of the contract through June 30, 2019. The contract, including the $10,000 contingency, will be funded from Public Works, Police, and Community Development Departments’ FY 2018-19 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 Three-Year Term table in Attachment C.
If the contract is extended, the extensions will be funded as outlined in the Optional Two-Year Extension table in Attachment C.
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 Otis Elevator Company
Attachment B - Financial Summary
Attachment C - Funding Accounts for Contract