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HomeMy WebLinkAboutStaff Report 2410-3570CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 03, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     5.Approval of Purchase Order C25190365 with Kone, Inc. in the Not To Exceed Amount of $672,686 for Elevator, Chairlift, and Platform Lift Maintenance, Repair, Testing, and Related Services for Five Years; CEQA Status – Categorically Exempt under Sections 15301 and 15302 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: March 3, 2025 Report #:2410-3570 TITLE Approval of Purchase Order C25190365 with Kone, Inc. in the Not To Exceed Amount of $672,686 for Elevator, Chairlift, and Platform Lift Maintenance, Repair, Testing, and Related Services for Five Years; CEQA Status – Categorically Exempt under Sections 15301 and 15302 RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to approve Purchase Order C25190365 with Kone, Inc. for elevator, chairlift, and platform lift maintenance, repair, testing, and related services for a five-year contract term in the not-to- exceed amount of $672,686, which includes $372,686 for basic maintenance services and $300,000 for repairs, upgrades, parts due to misuse, vandalism, and other unforeseen circumstances not covered by the maintenance agreement for a five year term. BACKGROUND There are seventeen passenger elevators, one chair lift, and one dumb waiter located within City buildings. The California Division of Occupational Safety and Health (Cal/OSHA) Elevator Section regulates all elevators in the State of California. The Section recommends standards, regulations, and amendments to the California Elevator Rules as outlined in the Labor Code Section 7300–7324.2 and Title 8 subchapter 6: Elevator Safety Orders. These Safety Orders mandate periodic maintenance and inspections to ensure the safety of the riding public and elevator workers. The City executed contract S16159873 with Kone, Inc with the term of July 1, 2015 through June 30, 2018, utilizing Omnia Cooperative Agreement, formerly US Communities. The City executed contract S19172537 with Kone, Inc with the term of July 1, 2018 to March 31, 2019 while staff attempted to process another US Communities cooperative agreement. Unfortunately, legal teams for the City and Kone were unable to agree on contract language after several months of negotiations. COVID further hindered finalizing a contract. This new cooperative purchasing agreement establishes a new five-year contract with Kone, Inc. ANALYSIS Procurement Process The Statement of Work # 1 (“SOW”, Attachment A) is issued pursuant to Purchasing Agreement # 2019.001564 dated October 1, 2019, between University of California, CA and Supplier, Kone, Inc. (“Agreement”)1, and Amendment No. 2 with renewal date of September 1, 2024 through August 31, 20292. Amendment No. 1 dated December 23, 2019, updates Section 4 of the Agreement regarding price increases and price decreases.3 This Agreement was established through OMNIA Partners (OMNIA). The scope of work includes contracted services for elevator, chairlift, and platform lift maintenance, repair, testing, and related services. Depending on the type of elevator this will include monthly, quarterly, and annual preventative maintenance. The scope of work also includes additional services, which include repairs, upgrades, parts due to misuse, vandalism, emergency response to entrapments, and other unforeseen circumstances not covered by the maintenance agreement. Per Palo Alto Municipal code 2.30.360(j), the City can take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. OMNIA Partners (OMNIA) provides discounts for government entities purchasing elevator service and maintenance. The cooperative purchasing agreement contract was competitively solicited and publicly awarded through the cooperating purchasing organizations and the purchase orders are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. The use of this OMNIA Partners agreement will allow for substantial saving compared to the current agreement. The City is currently paying $525 per hour for the services of a licensed elevator mechanic. The first year per hour rate for the licensed elevator mechanic using the OMNIA Partners agreement is $293. The purchase order (Attachment C) recommended in this report will be funded jointly by the Public Works Department (PWD) and the Office of Transportation (OOT). Maintenance costs are determined by the elevator’s type, age, and the number of floors in the structure. Attachment B provides a breakdown of the monthly cost for each City facility. The majority of 1 Kone General Service Cooperative Agreement for the Maintenance and Repair of Elevators 2019.00156; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/public- services/contracts/2019001564_kone_-university-of-california-purchasing-agreement.pdf 2 Kone Amendment #2 to the General Service Cooperative Agreement for the Maintenance and Repair of Elevators 2019.00156; 2019.001564_kone-university-of-california-amendment-2-to-agreement.pdf 3 Kone Amendment #1 to the General Services Cooperative Agreement for the Maintenance and Repair of Elevators 2019.00156; 2019.001564_kone-university-of-california-amendment-1-to-agreement.pdf elevators requiring higher maintenance are located within public parking facilities, which fall under the OOT administration. This is reflected in a cost-sharing split where 45% of funding is provided by PWD and 55% by OOT. Funding for Year 1 of this contract is available in the Fiscal Year 2025 Adopted operating budgets of both departments. The funding for the remaining four years of the contract will be subject to appropriation of funds through the annual budget process. The total contract amount of $672,686 includes $372,686 for basic services and $300,000 for additional services for repairs, upgrades, parts due to misuse, and vandalism not covered by the maintenance agreement. The fee schedule is detailed below according to the contract terms and funding sources: STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Revised 7/12/17 Page 1 of 3 KONE Internal ATTACHMENT A TO PURCHASING AGREEMENT # 2019.001564 STATEMENT OF WORK This Statement of Work # 1 (“SOW”) is issued pursuant to Purchasing Agreement # 2019.001564 dated October 1, 2019 between UC and Supplier (“Agreement”). And Amendment #2 with renewal date of September 1st, 2024 through August 31st, 2029. 1. Term of SOW This SOW will begin on September 1st, 2024 (“Effective Date”) and continue through June 30th, 2029. This SOW may not be renewed or otherwise amended except through a Change Order pursuant to the Change Management section below. 2. Vertical Transportation - Scope of Work Description Below is a sample of the type of coverage that can be provided to various UC facilities. Actual Scope will be determined by individual campus or agency requirements. ELEVATOR, ESCALATOR AND WALKWAY MAINTENANCE, REPAIR AND MODERNIZATION SERVICES AND RELATED SOLUTIONS OFFERED BY SUPPLIER. Elevator, Escalator, Walkway, Wheelchair Lift, Platform Lift, and Dumbwaiter Maintenance: This includes the furnishing of all material, labor, supervision, tools, supplies, and other expenses necessary to provide full service and preventative maintenance services, and repairs of every description, including inspections, adjustments, test and replacement of parts as herein specified for all equipment covered under this Request for Proposal. Include the complete range of maintenance services and solutions offered by Supplier for all manufacturers' equipment to keep equipment in safe, fully operational condition. Such maintenance services are to include reliable established and documented maintenance procedures and schedules to insure reliable performance of equipment under a regularly scheduled program. This includes using a structured maintenance management program to deliver high quality service tailored to each specific unit's needs. Equipment type, component life, equipment usage, and building environment should be taken into account by the Supplier in this scheduling system, which will be used to plan maintenance activities in advance. The Supplier is to have an established system for fully documenting maintenance procedures performed, service calls received and answered and major repairs scheduled and completed. The Supplier is to have an effective system of self-audit mechanism to insure designated tasks are completed as scheduled, with the ability to provide periodic written condition report covering each piece of equipment. Elevator, Escalator, Walkway, Wheelchair Lift, Platform Lift and Dumbwaiter Modernization: This includes the furnishing of all material, labor, supervision, tools, supplies and other expenses necessary to provide repairs, upgrades and modernization of every description for all equipment covered under this Request for Proposal. Supplier is to offer the complete range of repairs and upgrade solutions ranging from any improvement, modification, renovation or additional equipment or features added or made to existing elevators, escalators, and walkway equipment to better the performance, safety, cosmetic appearance or to meet any new code (building or equipment) requirements, local jurisdiction requirements, insurance requirements or to repair any equipment that may need to be modified or replaced due to obsolescence, flood, fire, any damage done to equipment for any reason, part failure, misuse or age. Examples include, but are not limited to, new or update controllers for all types of equipment, new or update signal fixtures for all types of equipment, new hydraulic jack, machine or pump unit modifications or replacements, new or modifications to elevator cab interiors, new door edges, new valves, new ropes, new or modified door equipment, new or modified car door operators, new or modified hoistway doors or equipment, ADA upgrades, any code upgrades, and escalator or walkway steps or pallets, complete replacement (except for truss) and handrails. Related Products, Services and Solutions: Additional related products, services or solutions offered by Supplier. Examples include but are not limited to the following: • Dedicated route mechanics • Phone Monitoring • 24/7 Remote Monitoring services Revised 7/12/17 Page 2 of 3 KONE Internal PROPOSED SCOPE OF WORK: KONE has been selected to provide goods and services to the City of Palo Alto by virtue of having an existing contract in place with the OMNIA via the University of California Contract award under Purchasing Agreement #2019.001564. Supplier agrees to continue to provide the same services and deliverables under the existing KONE Contract #41081759 dated July 1st, 2015 with all Terms and Conditions remaining unchanged except the for the terms and conditions set forth in this Attachment A dated September 1st, 2024. Site Name Street City Equipment Equipment Type 2024- 2025 Monthly Price 2025- 2026 Monthly Price 2026- 2027 Monthly Price 2027- 2028 Monthly Price 2028- 2029 Monthly Price PALO ALTO CIVIC CENTER 250 HAMILTON AVENUE PALO ALTO 4 PASSENGER $ 1,214.00 $ 1,262.56 $ 1,313.06 $ 1,365.58 $ 1,420.21 $ 1,338.00 $ 1,391.52 $ 1,447.18 $ 1,505.07 $ 1,565.27 CITY OF PA FIRE STATION 3 BILLING RATES (2024): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $ 293 $ 506 $ 596 $ 250 $ 422 $ 497 $ 328 $ 556 $ 655 BILLING RATES (2025): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $327.30 $556.41 $654.60 $273.69 $465.28 $547.38 $359.28 $610.77 $718.56 Revised 7/12/17 Page 3 of 3 KONE Internal BILLING RATES (2026): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $338.75 $575.88 $677.51 $283.27 $481.56 $566.54 $371.85 $632.15 $743.71 BILLING RATES (2027): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $350.61 $596.04 $701.22 $293.19 $498.42 $586.37 $384.87 $654.27 $769.73 BILLING RATES (2028): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $362.88 $616.90 $725.76 $303.45 $515.86 $606.89 $398.34 $677.17 $796.68 BILLING RATES (2029): LOCATION 2024 LICENSED MECHANIC 2024 MECHANIC HELPER 2024 Adjuster IUEC LOCAL UNION NO CITY/CITIES AND SURROUNDING AREAS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/ HOLIDAYS NORMAL HOURS OVERTIME SUNDAYS/HOLIDAYS 8 San Francisco, CA $375.58 $638.49 $751.16 $314.07 $533.92 $628.14 $412.28 $700.88 $824.56 Contract will also include $60,000 allowance per year for repairs,upgrades, parts due to misuse, vandalism, acts of God not covered under the maintenance agreement. This Statement of Work is signed below by the parties’ duly authorized representatives. CITY OF PALO ALTO KONE, Inc Kone Five-Year Costs Summary Site Name Street Equipment Cost Center 2024-2025 Monthly Price CIVIC CENTER 250 Hamilton Avenue 4 Passenger Elevators 50030004 $1,214.00 BRYANT STREET GARAGE 445 Bryant Street 2 Passenger Elevators 50236001 $670.00 HIGH STREET GARAGE 528 High Street 1 Passenger Elevator 50236001 $165.00 WEBSTER STREET GARAGE 520 Webster Street 2 Passenger Elevators 50236001 $670.00 RINCONADA LIBRARY 1213 Newell Road 1 Dumb Waiter 50030004 $26.00 CUBBERLEY WING I 4000 Middlefield Road 1 Passenger Elevator 50030006 $165.00 MITCHELL PARK LIBRARY 3700 Middlefield Road 2 Passenger Elevators 50030008 $712.00 ART CENTER 1313 Newell Road 1 Chair Lift 50030008 $26.00 LOT Q GARAGE 430 High Street 1 Passenger Elevator 50236001 $304.00 SHERMAN AVENUE GARAGE 350 Sherman Avenue 2 Passenger Elevators 50237001 $1,338.00 FIRE STATION 3 799 Embarcadero Road 1 Passenger Elevator 50030004 $215.00 DOWNTOWN COMMUNITY CENTER 445 Bryant Street 1 Passenger Elevator 50030004 $229.00 Monthly Cost $5,734.00 Annual Costs $68,808.00 Annual Additional Service Costs $60,000.00 Total Annual Costs $128,808.00 Total Five-Year Contract Costs $672,686.28 2025-2026 Monthly Price 2026-2027 Monthly Price 2027-2028 Monthly Price 2028-2029 Monthly Price $1,262.56 $1,313.06 $1,365.58 $1,420.21 $696.80 $724.67 $753.66 $783.81 $171.60 $178.46 $185.60 $193.03 $696.80 $724.67 $753.66 $783.81 $27.04 $28.12 $29.25 $30.42 $171.60 $178.46 $185.60 $193.03 $740.48 $770.10 $800.90 $832.94 $27.04 $28.12 $29.25 $30.42 $316.16 $328.81 $341.96 $355.64 $1,391.52 $1,447.18 $1,505.07 $1,565.27 $223.60 $232.54 $241.85 $251.52 $238.16 $247.69 $257.59 $267.90 $5,963.36 $6,201.89 $6,449.97 $6,707.97 $71,560.32 $74,422.73 $77,399.64 $80,495.63 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $131,560.32 $134,422.73 $137,399.64 $140,495.63 *** PURCHASE ORDER AGREEMENT *** This City of Palo Alto (City) Purchase Order agreement (PO) with Kone made pursuant and subject to Omnia Master Agreement #: 2019001564 for the procurement of Elevator, Escalator, Chairlift and Platform Lift Maintenance & Repair and Related Services University of California, CA Renewal Term September 1, 2024 through August 31, 2029 Notwithstanding the Master Contract, this PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO hereby attaches and incorporates the following contract documents into this PO by reference as though fully set forth herein, and should any conflict arise, shall be interpreted in the following priority: 1. Omnia Master Agreement #: 2019001564 for the procurement of Elevator, Escalator, Chairlift and Platform Lift Maintenance & Repair and Related Services 2. Amendment #1 To agreement Adding the following section after the first paragraph of Section 4. Pricing, Invoicing Method, and Settlement and Terms. 3. Amendment #2 Exhibit B # UC Pricing Schedule is hereby Vendor Address KONE INC 15021 WICKS BLVD SAN LEANDRO CA 94577 Tel: 510-351-5141 Fax: 510-351-5341 Bill To: Police Department City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Ship To: Facilities Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25190365 Date 01/12/2025 Vendor No.104410 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to provide services Term 02/10/2025 - 08/31/2029 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 3 amended with the addition of the attached 2025-29 UC-Kone National Contract Price File (see enclosed Excel Spreadsheet) 4. ATTACHMENT (A)TO PURCHASING AGREEMENT # 2019.001564 STATEMENT OF WORK #1 (SOW) with Terms and Conditions 0010 Elevator Basic Svcs YR1 68,808 USD 1.00 68,808.00 Elevator Maintenance and Repair Services. NTE for 5 yrs $672,686; term 09/01/2024 - 08/31/2029 Facilities Division of PWD PS. Manager: Dennis Huebner 650-496-6970 YR1 $128,808 (Basic $68,808, Add'l $60,000) FY 25/26 2.10.25 to 2.9.26 YR2 $131,560 (Basic $71,560, Add'l $60,000) FY 26/27 2.10.26 to 2.9.27 YR3 $134,423 (Basic $74,422, Add'l $60,000) FY 27/28 2.10.27 to 2.9.28 YR4 $137,400 (Basic $77,399, Add'l $60,000) FY 28/29 2.10.28 to 2.9.29 YR5 $140,496 (Basic $80,495, Add'l $60,000) FY 29 2.10.29 to 8.31.29 Vendor Address KONE INC 15021 WICKS BLVD SAN LEANDRO CA 94577 Tel: 510-351-5141 Fax: 510-351-5341 Bill To: Facilities Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Ship To: Facilities Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25190365 Date 01/12/2025 Vendor No.104410 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to provide services Term 02/10/2025 - 08/31/2029 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 3 0020 Elevator Add'l Svc YR1 60,000 USD 1.00 60,000.00 ------------------------- Sub-Total 128,808.00 **** PRICE HAS BEEN QUOTED **** Vendor Address KONE INC 15021 WICKS BLVD SAN LEANDRO CA 94577 Tel: 510-351-5141 Fax: 510-351-5341 Bill To: Facilities Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Ship To: Facilities Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer Total 128,808.00 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25190365 Date 01/12/2025 Vendor No.104410 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to provide services Term 02/10/2025 - 08/31/2029 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 3 of 3