Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval of Third Amendment for Elevator Maintenance Services with TK Elevator Corporation in the Amount of $23,724 for the July 1, 2023 to June 30, 2024 Contract Term
REPORT IN BRIEF
Considers approving a third amendment for elevator maintenance services with TK Elevator Corporation in the amount of $23,724 for the 23/24 Fiscal Year.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Third Amendment with TK Elevator Corporation for Elevator Maintenance Services for an annual not-to-exceed amount of $23,724; and,
B. Authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 et seq. of the Merced City Charter.
Services with an estimated value greater than $36,000.00 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the FY 2023/2024 adopted budget.
DISCUSSION
The Public Works Department previously invited proposals to provide monthly elevator maintenance services for seven (7) elevators located at the Merced Civic Center (2), Ralph Shannon Parcade (2), Merced Center Parking Garage (2), and Central Police Station (1). Maintenance services include cleaning the elevator equipment (removing dirt, lint, excess oil and grease), lubricating elevator equipment, providing a thorough examination by a State of California Certified Competent Conveyance Mechanic, making adjustments and minor repairs as needed, as well as providing testing services as required by the State of California.
ThyssenKrupp Elevator Corporation was the sole proposer for these services and on September 21, 2020, Council approved an agreement with ThyssenKrupp Elevator Corporation in the amount of $16,800 annually to provide elevator maintenance services for these 7 locations. The original contract term was from July 1, 2020 through June 30, 2022 with the option to extend for three additional one-year periods.
Subsequent to the contract award, ThyssenKrupp Elevator Corporation rebranded to TK Elevator Corporation (TK Elevator). A contract amendment was approved on May 17, 2021 reflecting the vendor name change, as well as added services for 1 additional elevator at 3156 N. HWY 59. This is an elevator that goes underground at a sewer lift station; the cost of the additional elevator service was $185 per month, for an additional $2,220 annually.
The Second Amendment extended the contract through Fiscal Year 2022-23 with no pricing changes. TK Elevator has proposed an increase in costs for the 2023-24 Fiscal Year due to rising material and labor costs. The proposed contract amendment is for $23,724 annually, for a total increase of $4,724.
The City Attorney’s Office has drafted the amendment (attachment 1) and staff recommends Council approval to continue the elevator maintenance services.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 2023-24 adopted budget.
ATTACHMENTS
1. Third Amendment
2. Second Amendment
3. First Amendment
4. Original Contract