Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH KONE, INC., FOR ELEVATOR MAINTENANCE AND REPAIR SERVICES AND RATIFICATION OF EXPENDITURES
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Kone, Inc. to provide, elevator maintenance and repair services in an amount not to exceed $204,480 for the entire term of the Agreement, and to authorize the City Manager to renew the agreement, at the City Manager’s discretion, for an additional four, one-year renewals, and to ratify expenditures in an approximate amount of $6,200 for the monthly services provided between February 1, 2017 and award of the agreement. The initial term of the Agreement is effective until January 30, 2018.
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Background
The Agreement with Kone, Inc. will be used for monthly maintenance and repair services of elevators at City of Glendale facilities on an as-needed basis.
On July 15, 2015, the city entered into a Linking Agreement for elevator repair and maintenance with Kone, Inc., Contract No. C-10147, in an amount not to exceed $25,000, utilizing the State of Arizona Contract No. ADSPO12-012973 for Elevator Repair and Maintenance. The term of this contract ended on January 31, 2017.
Kone, Inc. was awarded a bid by the State of Arizona as described in the Elevator, Escalator, Dumbwaiter, and Moving Walkway Repair and Maintenance Contract and staff is requesting to utilize the Arizona Procurement Cooperative Purchasing Agreement, of which Glendale is a member. Contract ADSPO17-160330 was awarded on January 31, 2017 and is effective through January 30, 2018, and includes an option to renew the contract an additional four, one-year renewals, allowing the contract to be extended through January 30, 2022.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
Facilities Management staff oversees 3.5 million square feet of city facilities dispersed over 55 square miles throughout the city. This Agreement will allow Facilities Management to continue to provide elevator maintenance and repairs on an as-needed basis to its tenants in city facilities, without interruption of service.
Kone will provide monthly elevator maintenance at nine facilities (Municipal Airport, Main Library, Public Safety Building, Fire Station 157, City Hall Complex, Foothills Recreation & Aquatic Center, Adult Center, Glendale Regional Public Safety Training Center, and the Sine Building) and repair services on an as-needed basis.
The State of Arizona awarded the cooperative purchasing agreement on January 31, 2017, which was too late to sign an agreement for the January Council voting sessions, and the prior contract expired on January 31, 2017. Therefore, staff is requesting that Council ratify expenditures in an approximate amount of $6,200.
Community Benefit/Public Involvement
Maintenance and repair of the city’s elevators for city facilities is necessary for the safety and comfort of employees who work at and individuals who visit these public facilities.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2016-17 Operating and Maintenance budgets for the various city departments. Expenditures with Kone, Inc. are not to exceed $204,480 for the entire term of the Agreement, contingent upon Council budget approval.
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Cost |
Fund-Department-Account |
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$204,480 |
Various |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?