DEPARTMENT
Infrastructure
AGENDA NO.
9 MEETING DATE
January 10, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Chris Anderson
Award Contract No. PUC-0004(I), 525 G olden Gate Elevator Maintenance and Repair Services
Summary of
Proposed
Commission Action:
Award sole source Contract No. PUC-0004(I), 525 G olden Gate Elevator Maintenance and Repair Services , in an amount not- to-exceed $950,000, and with a duration of 2,920 consecutive calendar days (eight years) , to O tis Elevator Company, which is the only elevator contractor authorized to maintain and support proprietary components in the elevators at the SFPUC headquarters building, in accordance with San Francisco Administrative Code section 6.73(a).
Background: The existing elevator mainte nance services contract for the San Francisco Public Utilities Commission ( SFPUC) headquarters building at 525 Golden Gate Avenue, San Francisco, necessary for the permit to operate the elevators, is expiring at the end of February. O tis Elevator Company (Otis) is the only licensed elevator contractor that can provide legally required maintenance services for proprietary elevator components.
In 2012, the SFPUC constructed its headquarters building at 525 Golden Gate Avenue, San Francisco. Otis
manufactured and installed the headquarters
building’s seven elevators . Ot is has provided maintenance services for the elevators under a contract with the City's Real Estate Department ( RED) from the completion of construction until the present time. The current elevator maintenance services contract with Otis will expire on F ebruary 28, 2023.
RED has advised that S FPUC must procure its own contract for elevator maintenance and repair.
The State of California prohibits operation of an elevator without a valid, current permit issued by the Division of Industrial Safety, De partment of Industrial Relations. To qualify for a permit, the building’s owner must have a full maintenance services contract with a contractor that holds a California C-11 elevator contractor’s license.
Contract: PW-009R, As-Needed Electrical Distribution Installation & Construction Support Commission Meeting Date: January 10, 2023
Before staff may begin negotiations for a sole so urce contract, the SFPUC's General Manager must make a written justification that a sole source procurement is necessary based on one of five specified circumstances. ( San Francisco Administrative Code Section 6.73(c).) One of the permissible circumstances is where documented rights in or singular ownership of systems make the work or services, or maintenance of such work or services, available only from one source. ( Id. at (c)(2).) For the SFPUC to award a sole source contract, the Commission must adopt a resol ution approving the General Manager's justi fication of the sole s ource and awarding the contract. ( Id. at (a).)
The elevators are equipped with Otis proprietary components including Gen 2 Traction Belts, Compass Destination Entry System, and Elevator Management System (EMS) Panorama with remote mo nitoring. These options were included in the original installation and are an integral part of SFPUC’s day- to-
day elevator operations. The equipment and software are proprietary, and no other elevator contractor can maintain and support these components.
The attached memo from the General Manager provides a written justification that a sole source elevator maintenance services contract with Otis for the elevators at the SFPUC h eadquarters building at 525 Golden Ga te Avenue, San Francisco, is necessary because t he elevator maintenance services required by law are available only from Otis.
Description of Scope
of Work:
The contract work location is the SFPUC headquarters high-rise building at 525 Golden Gate A venue in San Francisco, C alifornia. T he contract work consists of providing full elevator maintenance and repair services for th e building’s elevators . Otis has offered to enter into a n eight year full maintenance services contract with the SFPUC to maintain the seven elevators at the SFPUC hea dquarters building for compensation in the amount of $617,292, and the SFPUC deems it prudent to include in the contr act an allowance to provide for any nece ssary r epairs during t he cont ract duration that brings the total contract amount to $950,000.
Funding, Budget &
Costs:
Funding: Operating and Maintenance Budget of the 525 Golden Gate Building
Engineer’s Estimate: Not to exceed $950,000 for eight years Award: $950,000
Schedule: Estimated Notice-to-Proceed Date: March 1, 2023 Estimated Completion Date: February 28, 2031
Contract Duration: 2,920 consecutive calendar days (eight years)
Compliance with
Chapter 14B: Local
Business Enterprise
and Non-
Discrimination in
Contracting
The Contra ct Moni toring Division waived the Local Business Enterprise subcontracting participation requirement for this contract.
Contract: PW-009R, As-Needed Electrical Distribution Installation & Construction Support Commission Meeting Date: January 10, 2023
Ordinance:
Environmental
Review:
This action does not constitute a “project” under the California Environmental Quality Act Guidelines Section 15378(a) because there would be no physical change in the environment
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachment: 1. SFPUC General Manager’s Sole Source Justification Memo
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) owns and operates seven elevators manufactured by the Otis Elevator Company ( Otis) in the SFPUC headquarters building located at 525 Golden Gate Avenue in San Francisco; and WHEREAS, The State of California prohibits operation of an elevator without a valid, current permit issued by the Division of Industrial Safety, Department of Industrial Relations , and, to qualify for a permit, the building’s owner must have a full ma intenance services contract with a contractor that holds a California C-11 elevator contractor’s license; and WHEREAS, The seven elevators at the SFPUC headquarters building include proprietary components that only Otis can maintain and repair; and
WHEREAS, Otis holds a California C-11 elevator contractor’s license; and WHEREAS, The General Manager has provided a written justification, in acco rdance with San Francisco Administrative Code section 6.73(c)( 2), for a sole source elevator maintenance services contract with Otis on the bas is that the elevator mainten ance services required by law are available only from Otis; and
WHEREAS, The Engineer’s Estimate for a full maintenance services c ontract with an allowance for any necessary rep airs for the el evators at the SFPUC headquarters building is $950,000 for a contract with an eight year duration; and WHEREAS, Otis has offered to enter into a n eight year full maintenan ce services contract with the SFPUC to maintain the seven elevators at the SFPUC headquarters building for compensation in the amount of $617,292, and the SFPUC deems it prudent to include in the contract an allow ance to provide for any necessary r epairs during t he cont ract’s duration that brings the total contract amount to $950,000; and
WHEREAS, The Contract Monitoring Division has waived San Francisco Administrative Code section 14B requirements for Contract No. PUC-0004(I); and WHEREAS, This action does not constitute a “project” under the California Environmental Quality Act Guidelines Section 15378(a) because there would be no physical change in the environment; now, therefore, be it
RESOLVED, That this Com mission approves the General M anager’s justification for a sole source elevator maintenance servi ces contractor with Otis to maintain and repair the elevators at the SFPUC headquarters building; and be it FURTHER RESOLVED, That this Commission hereby awards Contract No.
PUC-0004(I), 525 Golden Gate Elevator Maintenance and Rep air Services, in the amount not to exceed $950,000, and with a duration of 2,920 consecutive calendar days (eight years), to
Otis Elevator Company.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 10, 2023.
Secretary, Public Utilities Commission
London N. Breed
Mayor
Newsha Marra
President
Sophie Maxwell
Vice President
Tim Paulson
Commissioner
Tony Rivera
Commissioner
Kate Stacy
Commissioner
Dennis J. Herrera
General Manager
San Francisco
Water Power Sewer
Services of the San Francisco Public Utilities Commission Project Administration Bureau
525 Golden Gate Avenue, 8th Floor
San Francisco, CA 94102
T 415.554.4603
F 415.554.3225
rry 415.554.3488
MEMORANDUM
To: Dennis J. Herrera, General Manager
Through: Stephen D. Robinson, Assistant General Manager ojk Infrastructure
From: Ivy Fine, Manager of Project Administration Bureau Subject: Justification for Sole Source Elevator Maintenance Services Contract with for OTIS Elevator Company for 525 Golden Gate Date: December 8, 2022
The elevator maintenance services contract for the San Francisco Public Utilities Commission ("SFPUC") headquarters building, which is required for the permit to operate the elevators, is expiring at the end of February. OTIS Elevator Company ("OTIS") is the only licensed elevator contractor that can provide legally required maintenance services for OTIS' proprietary elevator components. Staff recommends that you adopt this memorandum's justification for a sole source elevator maintenance services contract with Otis.
Background
In 2012, the SFPUC constructed its headquarters building at 525 Golden Gate Avenue, San Francisco. OTIS manufactured and installed the headquarters building's elevators ("Elevators"). OTIS has provided maintenance services for the Elevators under a contract with the City's Real Estate Department's (RED) elevator contract with OTIS from the completion of construction until the present time. The current elevator maintenance services contract with OTIS will expire on February 28, 2023. RED has advised that SFPUC needs to procure its own contract for elevator maintenance and repair.
Permit to Operate Required
The State of California prohibits operation of an elevator without a valid, current permit issued by the Division of Industrial Safety, Department of Industrial Relations. (Cal. Admin. Code tit. 8, § 3001(c).) To qualify for a permit, the OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
building's owner must have a full maintenance services contract with a contractor that holds a California C-11 elevator contractor's license. (Ibid.) Kequirements tor a 501e source uontract
Before staff may begin negotiations for a sole source contract, the SFPUC's General Manager must make a written justification that a sole source procurement is necessary based on one of five specified circumstances. (S.F.
Admin. Code, Section 6.73(c).) One of the permissible circumstances is where documented rights in or singular ownership of systems make the work or services, or maintenance of such work or services, available only from one source. (Id. at (c)(2).) For the SFPUC to award a sole source contract, the Commission must adopt a resolution approving the General Manager's justification of the sole source and awarding the contract. (Id. at (a).) Basis for Sole Source Contract Justification
As documented in the attached letter from OTIS dated November 22, 2022, the Elevators are equipped with OTIS proprietary components including Gen 2 Traction Belts, Compass Destination Entry System, and Elevator Management System (EMS) Panorama with remote monitoring. These options were included in the original installation and are an integral part of SFPUC's day-to-day elevator operations. The equipment and software are proprietary, and no other elevator contractor can maintain and support these components.
Recommendation
Staff recommends that you adopt the sole source contract justification provided herein for a sole source contract with OTIS to maintain and services the Elevators.
General Manager's Sole Source Contract Justification
I hereby adopt the justification provided herein for a sole source elevator maintenance services contract with OTIS Elevator Company for the elevators at the SFPUC headquarters building at 525 Golden Gate Avenue, San Francisco, because the elevator maintenance services required by law are available only from OTIS. 2-1(-1-2.022-
11 Dennis J. I-Iserrera Date
General Manager
San Francisco Public Utilities Commission