HomeMy WebLinkAboutAgenda Report - December 18, 2019 C-18c4g
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AGENDA TITLE:Adopt Resolution Authorizing City Manager to Waive the Bid Process and Execute
Professional Services Agreement with KONE, lnc., of Sacramento, for Monthly
lnspection and Maintenance Services of Elevators in City Facilities, Utilizing U.S.
Communities Contract No. EV2516 ($75,000)
MEET¡NG DATE: December 18,2019
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to waive the bid process
and execute Professional Services Agreement with KONE, lnc., of
Sacramento, for monthly inspection and maintenance services of
elevators in City facilities, utilizing U.S. Communities Contract No. EV2516, in the amount of $75,000.
BACKGROUND INFORMATION: This service contract will provide ongoing elevator services for both
regularly scheduled maintenance and on-demand repair services on
11 elevators located at City Hall, Carnegie Forum, Police Facility, Lodi
Station Parking Structure, City Hall Annex, and Hutchins Street Square. These 11 elevators represent all
elevators in City-owned facilities. Annual elevator inspections performed separately by the State of
California are not covered under the service contract and will incur a separate charge levied by the State.
The City requested and received a proposalfrom KONE, lnc. for regularly scheduled maintenance and on-
demand repair services. KONE, lnc. was the successful bidder for U.S. Communities Contract No. EV2516,
for competitively-bid elevator services. The proposal pricing for scheduled maintenance of $1,760 per
month, or $21 ,120 per year, is the maximum allowable contract price charged for the elevator maintenanee
services.
The initial one-year contract term cost of $25,000 includes the scheduled maintenance plus an allowance
for on-demand repair services based on hourly rates and a percentage mark-up on parts and materials.
The proposal also includes discount pricing for the monthly maintenance service, should the City choose to
pay annually in advance. lf monthly maintenance service is paid annually in advance, the proposed pricing
would be $1,672 per month, for a savings of $1,056 per year. The annual payment method is
recommended.
By using the U.S. Communities contract, the formal bidding process has already been performed, allowing
staff to more efficiently procure labor and materials for specialty type work, such as elevator maintenance
and repair, while maintaining compliance with purchasing requirements. The Professional Services
Agreement includes all insurance requirements included in City contracts.
Per Lodi Municipal Code Section 3.20.045, State and Local Agency Contracts, the bidding process may be
waived when it is advantageous for the City, with appropriate approval by City Manager and City Council, to
use contracts that have been awarded by other California public agencies, provided that their award was in
compliance with their formally-adopted bidding or negotiation procedures.
TM
APPROVED
K:\WP\COUNCIL\20 1 9\CKONE PSA.doc
Manager
1211112019
Adopt Resolut¡on Author¡zing City Manage¡ to Waive the Bid Process and Execute Professional Services Agreement with KONE, lnc., of Sacramento, for Monthly
lnspect¡on and Maintenance Serv¡ces of Elevators in City Facilities, Utilizing U.S. Communities Contract No. EV2516 ($75,000)
December 18, 2019
Page 2
Staff recommends authorizing City Manager to waive the bid process and execute Professional Services
Agreement with KONE, lnc., of Sacramento, for monthly inspection and maintenance services of
elevators in City facilities, utilizing U.S. Communities Contract No. EV2516, in the amount of $75,000.
FISCAL IMPAGT:This work is required by the State of California to legally operate City-owned
elevators. lt is estimated that 90 percent of the contract work will be funded
by the General Fund, with the remaining costs associated with the Lodi
Station Parking Structure funded by the Transit Division.
FUNDING AVAILABLE Funds for elevator services will be funded by Facilities Services Operating
(1 0051000) and Transit Operations (6005a1 05).
Andrew Keys
Deputy City Manager/lnternal Services Director
rles E. Swimley, Jr
Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
CES/RAY/tdb
Attachment
K:\WP\COUNCIL\20 1 9\CKONE PSA.doc 1211112019