COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

December 23, 2004

BOARD MEETING DATE:

January 11, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Amendments to Agreements with D & D Elevator Company and Kone, Inc. for Elevator Maintenance and Repair Services at County Facilities

 

Recommendation

Adopt a resolution:

 

a)

Approving an amendment to the agreement with:

 
 

1)

D & D Elevator Company (D&D) for elevator maintenance and repair services for the San Mateo County Health and Hospital Facilities; and

 
 

2)

Kone, Inc. (Kone) for elevator maintenance and repair services for all other County Facilities; and

 

b)

Authorizing the Director of Public Works to extend the term of the agreements for two additional years if it is determined to be mutually agreeable to the County and the respective companies.

 

Vision Alignment

Commitment: ensure the basic health and safety for all.

Goal 7: maintain and enhance the public safety of all residents and visitors.

 

Your Board’s approval of the amendments to the maintenance agreements and authorizing the Director of Public Works to extend the agreements will insure that the elevator equipment in County facilities is maintained in a safe condition for both the employees and the public who use these facilities.

 

Background

Previous Board Action

Entered into two-year agreements with D&D and Kone in 2003 for elevator maintenance and repair services for the County facilities as described above.

 

History

The current agreements are for regular maintenance services with contingencies to cover minimal additional costs of necessary parts and services that are due to misuse, vandalism, or accidental damage to the elevator equipment.

 

Additional elevators have been added to the maintenance contracts as a result of:

 

a)

The Department assuming maintenance responsibility for the Medical Center’s Long Term Care Facility in Burlingame; and

 

b)

The end of the warranty period for two elevators in the Hall of Justice that were rebuilt.

 

We have, and are anticipating additional work outside the scope of normal maintenance service to repair damage to the elevator doors and due to the high usage of this equipment.

 

Both agreements have optional 24-month extension clauses, and the current “not-to-exceed” amounts as provided for in each agreement will not cover all anticipated costs of servicing the additional elevators and other work that may have to be performed during the 24-month extension period.

 

The authority to enter into extended agreements for elevator maintenance was inadvertently left out of the resolution authorizing the extension of the agreements.

 

Discussion

A.

Increase in the “not-to-exceed” amount for the initial first two years of the agreements

 
 

We are recommending that the “not-to-exceed” amount for the initial two-year term of the existing agreements be increased for Kone from $158,400 to $177,400 (net increase of $19,000), and for D&D from $37,452 to $60,509 (net increase of $23,057). The basis for the increases are shown on the attached Exhibits “A” and “B” and includes the costs of maintaining the additional equipment as well as any additional work on the equipment that is not covered by normal maintenance. Additional work is usually associated with damage to the elevator doors. Funds for any additional work will only be expended if authorized by the County in writing.

 

B.

Contract Extensions

 

The “not-to-exceed” amounts as authorized by your Board’s Resolution No. 066108, in the event that the County exercises its option to extend the agreements for two additional years per Resolution No. 066108, will also be exceeded due to the additional equipment now being covered by the maintenance agreements. We are recommending that the “not-to-exceed” amounts be increased for Kone from $158,400 to $ 190,800 (net increase of $32,400) and for D&D from $37,452 to $72,207 (net increase of $34,755). The basis for the increases are shown on the attached Exhibits “A” and “B” and includes the cost of maintaining the equipment as well as any additional work on the equipment that is not covered by normal maintenance. Additional work is usually associated with damage to the elevator doors. Funds for any additional work will only be expended if authorized by the County in writing.

 

C.

Authority to Extend Agreements

 

Your Board’s Resolution No. 066108 provides for the extension of the two agreements under the same terms and conditions of the original agreements if mutually agreeable to both the County and the companies. However, the resolution inadvertently omitted the authority to extend the agreements without a separate action of your Board. We are recommending that the Director of Public Works be given the authority to extend the agreements as they are for necessary maintenance type services. We will evaluate extending the agreements based on the services provided by these two companies over the next three months.

 

County Counsel has approved as to form a resolution and amendment to the agreements and Kone and D&D have executed the agreements.

 

Fiscal Impact

The total combined increase in the “not-to-exceed” amounts for the current agreement is $42,057, and $67,155 for the two-year extensions. An appropriation is included in the Maintenance Services Division 2004/2005 budget, and will be included in future Maintenance Services Division budgets as an ongoing expense. The cost of this work is paid for through Facility Maintenance fees that are charged to the Departments occupying these facilities.

 

The impact to the General Fund is through the Facility Charges that are paid for by General Fund supported County Departments.