CITY COUNCIL STAFF REPORT
DATE: March 25, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 5 TO COOPERATIVE PURCHASE AGREEMENT NO. 23C004 WITH TK ELEVATOR CORPORATION FOR
ELEVATOR AND ESCALATOR MAINTENANCE AND REPAIR SERVICES
FOR THE PALM SPRINGS INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will approve Amendment No. 5 to Cooperative Purchase Agreement No. 23C004 (Agreement) with TK Elevator Corporation (TK Elevator) in the amount of $66,721.16, and extend the term one year, for a revised contract amount not to exceed $737,908.48 to provide elevator and escalator maintenance and repair services for the Palm Springs International Airport (Airport).
RECOMMENDATION:
1. Approve Amendment No. 5 to Cooperative Purchase Agreement No. 23C004 with TK Elevator Corporation to provide elevator and escalator maintenance and repair services for the Palm Springs International Airport for an additional amount of $66,721.16 and for a revised contract amount not to exceed $737,908.48, and extend the term for one year through April 2, 2027.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B) submitted on March 3, 2026, TK Elevator Corporation is a Delaware corporation registered to do business in California.
BACKGROUND:
The Airport has three hydraulic elevators and two escalators that require monthly maintenance and repair services to remain operational for use by Airport passengers,
City Council Staff Report
March 25, 2026 -- Page 2
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0 tenants and staff. One elevator is located in the main terminal, while the other two elevators, along with both escalators, are located at the Sonny Bono Concourse. These vertical transportation systems provide access between the ground-level Courtyard and the second-level Sonny Bono Concourse, which houses ten passenger gates serving aircraft.
On March 9, 2023, City Council approved Cooperative Purchase Agreement No. 23C004 with TK Elevator Corporation (Attachment C) to provide monthly maintenance and repair services for a three-year term with two one-year extension options, commencing on April 3, 2023, and ending on April 2, 2026, for a total contract amount not to exceed $84,600.
Simultaneously, on March 9, 2023, City Council approved Amendment No. 1 to Agreement No. 23C004 (Attachment D), which was incorporated to revise certain provisions within the Cooperative Purchase Agreement and to include clean-down services for the escalators for an additional amount of $20,510.90, resulting in a revised total contract amount not to exceed $105,110.90.
On June 7, 2023, Amendment No. 2 to Agreement No. 23C004 (Attachment E) was executed to incorporate handrail, demarcation parts, and comb plates to repair a malfunction in the existing escalators components, for an increased contract amount of $66,146.48 and for a revised total contract amount not to exceed $171,257.38.
From June 2023 to September 2023, the Airport’s escalators required eight repairs totaling $82,986.19 and the elevators required three repairs totaling $3,152.52, for a total repair cost of $86,138.71. During ongoing maintenance activities, additional unforeseen services and repairs were identified by TK Elevator. To ensure funding for the monthly preventative maintenance costs and any additional services and repairs, staff determined that it would be necessary to increase the contract compensation for an additional amount of $100,000 for each year of the three-year contract, and a contingency fund in the amount of $60,000 for a total compensation increase of $360,000.
On September 14, 2023, City Council approved Amendment No. 3 to Agreement No. 23C004 (Attachment F) to provide additional elevator and escalator labor and parts necessary to continue services for an additional amount of $360,000, for a revised total contract amount not to exceed $531,257.38.
On August 12, 2025, Amendment No. 4 to Agreement No. 23C004 (Attachment G) was executed to increase compensation by an additional $139,929.94 to provide escalator component replacement and system rehabilitation services for the down escalator, for a revised total contract amount not to exceed $671,187.32, in order to continue maintenance and repair services to ensure the escalators remained operational for the term of the Agreement.
City Council Staff Report
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0 STAFF ANALYSIS:
The current Agreement expires on April 2, 2026. Exercising the first extension option will ensure uninterrupted maintenance and repair services.
The current available contract balance is $65,382.39, which includes pending invoices in the amount of $5,083.52. The proposed annual cost for maintenance and repair services is $31,721.16. In addition, staff recommend allocating an additional $35,000 to cover potential labor and parts as well as unforeseen escalator shutdowns that require a trained technician to respond and restart the equipment. Accordingly, staff recommend increasing the contract compensation by $66,721.16.
Staff recommend approval of Amendment No. 5 to Agreement No. 23C004 with TK Elevator, exercising the first one-year extension option, extending services through April 2, 2027, for an additional amount of $66,721.16, for a revised contract amount not to exceed $737,908.48.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve a contract for maintenance and repair services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports the City of Palm Springs’ Strategic Plan Broad Goals of Infrastructure and Facilities, and it also supports the Airport’s 2025-2029 Strategic Plan’s Strategic Priorities for Operational Excellence and Infrastructure.
FISCAL IMPACT:
Sufficient funds are available in Fiscal Years 2025-26 and 2026-27 in the Department of Aviation, Terminal Building Operations Contractional Services Account 4157050.40105.
REVIEWED BY:
Department Director: Harry Barrett Jr.
Procurement and Contracting Manager: Tabitha Richards
City Attorney: Geremy Holm
City Manager: Scott Stiles
City Council Staff Report
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0 ATTACHMENTS:
A. Cooperative Purchase Amendment No. 5 to Agreement No. 23C004 B. Public Integrity Disclosure
C. Cooperative Purchase Agreement No. 23C004
D. Cooperative Purchase Amendment No. 1 to Agreement No. 23C004 E. Cooperative Purchase Amendment No. 2 to Agreement No. 23C004 F. Cooperative Purchase Amendment No. 3 to Agreement No. 23C004 G. Cooperative Purchase Amendment No. 4 to Agreement No. 23C004