City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.L
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of Agreement with Otis Elevator Company for Parking Structure #5 Elevator Repair
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Otis Elevator Company (Otis) for repairs to the Parking Structure 5 elevator for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.240 (a1, b, c, d3) and 2.24.250 (b) and is for a total amount not to exceed $503,000.
Summary
In 2014, the City executed a project to replace all the elevators in parking structures 2, 4 and 5. These new elevators were manufactured and installed by Otis Elevator, a proprietary product.
In fall of 2021, one of the elevators in Parking Structure 5 was set on fire with an accelerant and the damage was extensive to the cab and equipment, with unknown damage to the equipment in the shaft. This made the elevator unsafe to use. Staff received pricing from the elevator manufacturer to repair the elevator cab and equipment to make the elevator operable again. Staff recommends moving forward with Otis Elevator to make the required emergency repairs.
Discussion
Otis Elevator is the only company certified to work on their proprietary elevator systems.
Allowing a different vendor to repair the elevator would void the City’s current manufacturer’s warranty. After several months of investigation, Otis provided a quote for 2 of 3
the initial repairs needed to make the elevator operational. The proposal to repair the elevator cab and equipment in the elevator control room only, is $303,000 (including 10% contingency). Damage to the elevator shaft, and the equipment in the shaft, cannot yet be investigated because the area cannot be safely accessed until the initial cab repairs are completed. Once it is safe to do so, Otis will provide an additional proposal to make the necessary final repairs. While the exact extent of the damage cannot yet be quantified, staff anticipate requiring an additional $200,000, making the total estimated cost not to exceed $503,000.
Staff recommends Otis Elevator Company to furnish and provide material and labor to repair the fire damaged elevator in Parking Structure 5 as an exception to competitive bidding per Muni Code 2.24.240 Procedures for Emergency Needs (a.1, b, c, and d.3) and 2.24.250 (b) Exemptions to the Competitive Process. The existing elevator was manufactured and installed by Otis in 2014 and must be repaired by Otis to achieve optimum performance and maintain the original warranty. The scope of work included in this contract is an urgent repair due to unforeseen events and must be repaired to meet building codes.
The Risk Management division has submitted an insurance claim to fund the repairs and the claim has been approved. The City is responsible for a $100,000 deductible.
The insurance company will reimburse the City for applicable expenses after the deductible is met.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Self-insurance Fund to award a contract with Otis Elevator for elevator repair services.
Construction Service Agreement
FY2022-23 Amount Account # Total Amount
$503,000 72800002.534500 $503,000
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Prepared By: Alex Parry, Senior Architect
Approved Forwarded to Council
Attachments:
A. Otis_Oaks_6-27-22