Report Prepared by: Cosmo Orduñez, Public Works Manager - Internal Services
Title
SUBJECT: Approval of Services Agreement and First Amendment with TK Elevator Corporation, in the Annual Amount of $32,327.04 for Elevator Maintenance Services for a Two (2) Year Term Beginning July 1, 2025 Through June 30, 2027, with an Option to Extend the Agreement for Three (3) Additional One (1) Year Term(s) through June 30, 2030
REPORT IN BRIEF
Considers approving a Services Agreement and First Amendment with TK Elevator Corporation in the annual amount of $32,327.04 for maintenance of eight (8) elevators located at the Merced Civic Center, Ralph Shannon Parcade, Merced Center Parking Garage, HWY 59 Lift Station, and Central Police Station.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Services Agreement and First Amendment with TK Elevator Corporation in the annual amount of $32,327.04 for elevator maintenance services for a period of two-years, with an option to renew for a maximum of (3) three additional one-year periods; and,
B. Authorizing the City Manager to execute the necessary documents; and,
C. Authorizing the City Manager to execute future contract amendments exercising the option(s) to renew, if the annual amount does not exceed $32,327.04, through June 30, 2030.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
Services with an estimated value greater than $38,000.00 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 Fiscal Year 2025/2026 Proposed Budget.
DISCUSSION
The Public Works Department recently invited proposals to provide monthly elevator maintenance services for eight (8) elevators located at the Merced Civic Center (2), Ralph Shannon Parcade (2), Merced Center Parking Garage (2), HWY 59 Lift Station (1), 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.
TK Elevator Corporation (TKE) was the sole proposer for these services. TKE, previously operating as ThyssenKrupp Elevator, has provided quality elevator maintenance services to the City since 2011 to present.
The proposed contract agreement will be for a period of two (2) years, commencing on July 1, 2025, and ending on June 30, 2027. The City has the option to extend the terms of the agreement, at the annual cost of $32,327.04, through future contract amendments for up three additional periods of one-year term, ending on June 30, 2030.
TKE has proposed a First Amendment to include updated agreement terms. The City Attorney’s Office has drafted the agreement (attachment 1) and approved as to form the First Amendment (attachment 2). Staff recommends Council approval to continue the needed elevator maintenance services, including the approval to execute future amendments extending the contract term through June 30, 2030. Should future extensions exceed the $32,327.04 annual amount, staff will bring the item back to Council for consideration.
IMPACT ON CITY RESOURCES
The proposed cost of monthly service is $2,693.92 monthly. The elevator maintenance service has been budgeted in the proposed FY 25/26 budget in Fund 7007-Facilities ($31,283.40 for the Civic Center, Police Station, and parking garages) and in Fund 6000-WWTP Enterprise ($1,043.64 for the HWY 59 Lift Station).
ATTACHMENTS
1. Services Agreement
2. First Amendment