COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

June 6, 2008

BOARD MEETING DATE:

July 22, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Elevator Maintenance Agreement with Kone, Inc.

RECOMMENDATION:

Adopt a resolution authorizing the execution of a three-year agreement with Kone, Inc. for elevator maintenance and repair services at various County Facilities (non-health and hospital) managed by the Department of Public Works Division of Facilities Maintenance and Operations (FM&O), for an amount not to exceed $452,491, with an option to renew for an additional two years at a cost not to exceed $354,677.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

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

This service contributes to the commitment and goal by awarding an agreement to maintain and repair County elevators for the benefit of both the public and employees that use this facility.

PREVIOUS BOARD ACTION:

1.

Adopted Resolution Number 066108 on June 24, 2003, which authorized execution of agreements with D&D and Kone, Inc. elevator companies to provide elevator maintenance and repairs to various county facilities.

2.

Adopted Resolution Number 067153 on January 11, 2005, which authorized the Director of Public Works to extend the term of the agreement for two additional years for elevator maintenance with D&D Elevator and Kone, Inc. elevator companies.

3.

Adopted Resolution Number 069477 on June 3, 2008, which authorized an agreement with Ascent Elevator Company to maintain the elevators at County Health and Hospital facilities.

BACKGROUND:

The County has 14 elevators in various Health and Hospital facilities and 34 elevators in the remaining facilities, which require routine maintenance and repairs

DISCUSSION:

Bid instructions were prepared and elevator services were grouped into two geographical areas (Health & Hospital facilities and remaining facilities) with contractors having the option of bidding one or both areas.

“Invitation to Submit Bids” letters were sent to twenty-eight (28) Bay Area elevator companies. A mandatory pre bid meeting was held on January 29^th, 2008 and four companies were represented.

On Thursday, February 21, 2008, four companies submitted bids for both geographical areas, which were publicly opened.

On June 3, 2008 the Board awarded a contract Ascent Elevator Company, which was the lowest bidder for the Health and Hospital facilities. The results of the bids for the remaining facilities are as follows with the lowest bidder in boldface.

Bidder Name

One-Year

Three-Years
(including escalation)

Kone Inc.

$116,280

$377,491

Star Elevator

$120,960

$392,683

Ascent Elevator Co.

$141,780

$460,274

ThyssenKrupp Elevator

$149,220

$484,427

Staff has reviewed the lowest bidder’s proposal and believe it accurately reflects the costs for this work.

The Contractor has certified compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other agreement provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination, and equal benefits.

A resolution has been approved as to form by County Counsel.

FISCAL IMPACT:

The proposed agreement is for three (3) years with an option to renew for an additional two (2) years. The two-year extension gives the County flexibility to extend the agreement subject to favorable performance by the Contractor and gives the Contractor the incentive to perform well. In evaluating past experiences with shorter time periods on full service maintenance agreements such as the elevator maintenance agreement, the Department believes that the longer term agreement will provide an incentive for the Contractor to have greater ownership in keeping the County elevators well maintained and making the necessary repairs on schedule rather than deferring them for the next Contractor.

The three-year agreement with Kone, Inc is for a total of $452,491. This amount includes a contingency of $75,000 for emergency and non-routine repairs such as retrieving keys dropped by customers into the elevator shaft, damage caused by customers and/or deliveries, and vandalism. These items are not included in the bid price. Prior authorization from the Public Works Department is required for the expenditure of any contingency funds.

Funding to support this agreement has been included in the Public Works budget for Fiscal Year 08-09 and will be financed through rent charges. There is no additional impact to the General Fund.