Report Prepared by: Cosmo Orduñez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase Elevator Modernization Services from TK Elevator Corporation Utilizing the OMNIA Cooperative Purchasing Contract #R200502 in the Amount of $431,673.63 for the Shannon Parcade Elevator Project CP250038
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 as a result of cooperative purchasing and approving the purchase of elevator modernization services for the Shannon Parking Structure through the OMNIA Cooperative Purchasing Program, Contract #R200502 in the amount of $431,673.63.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.4.210 for purchases necessary for standardization on particular types of equipment; and,
B. Approving the purchase elevator modernization service from TK Elevator Corporation, in the amount of $431,673.63; and,
C. Authorizing the City Manager or designee to execute the contract documents, and approval of future contract amendments not to exceed 10% of the total contract price.
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
City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the
bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
The City of Merced Public Works Department - Internal Services Division is responsible for maintaining City-owned facilities, including the Shannon Parcade located at 639 W. 18th Street. The existing elevator systems at this facility are aging and require modernization to ensure reliability, safety, and compliance with current codes and accessibility standards.
The proposed project includes modernization of two hydraulic elevator units, replacement and upgrades of key mechanical and electrical components, and improvements to fire and life safety systems. Benefits of the modernization include durability and reliability, improved fire and life safety features, reduced operational costs, and enhanced service performance.
Staff is recommending the use of the OMNIA Cooperative Purchasing Program to procure these services from TK Elevator Corporation. The OMNIA contract has been competitively solicited and awarded in accordance with public procurement requirements, allowing the City to leverage cooperative pricing and avoid duplicative bidding processes.
Utilizing the OMNIA Cooperative Purchasing contract provides cost savings, ensures competitive pricing, and expedites project delivery. In addition, TK Elevator is the original equipment manufacturer and service provider, making them uniquely qualified to perform the modernization work efficiently and ensure compatibility with existing systems.
Therefore, staff is requesting that the City Council wave the competitive bidding requirements and approve the purchase through the OMNIA Cooperative Purchasing contract in the amount of $431,673.63, plus contingency up to 10% of the total estimated cost.
IMPACT ON CITY RESOURCES
This project was established as a Capital Improvement Project and funding is available within project CP250038. Project CP250038 includes $350,000 from Fund 9100-Parking Authority and the remaining contract amount from Fund 7007-Facilities Maintenance.
ATTACHMENTS
1. TK Elevator Contract