REPORT TO COUNCIL
SUBJECT
Title
Authorize the Execution of an Agreement with Otis Elevator Company in the Amount of $454,150 for the Repair and Modernization of the Department of Public Safety Headquarters Elevator and Approve Budget Modification No. 9 in the Amount of $499,565
Report
REPORT IN BRIEF
Approval is requested to award a contract to Otis Elevator Company of San Jose in the amount of $454,150 with a 10% contingency in the amount of $45,415 to repair and modernize the Public Safety Headquarters elevator located at 700 All American Way.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, City Council approval is required for goods and/or services exceeding $250,000 in any one transaction.
Pursuant to Sunnyvale Municipal Code Section 2.08.070(b)(4), the Purchasing Officer may authorize a purchase without competitive bidding when only one vendor is capable of providing the required goods or services due to the unique nature of the item or service. City Council approval is required for any sole-source purchase exceeding the City Manager’s purchasing authority.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which applies to the operation, repair, maintenance, and minor alteration of existing public structures and mechanical systems involving negligible or no expansion of use.
BACKGROUND AND DISCUSSION
The passenger elevator at the Department of Public Safety Headquarters is approximately 41 years old and recently experienced a malfunction that affected its ability to operate. Over the past several months, staff and service technicians from Otis Elevator Company (“Otis”) have tried multiple smaller repairs to address ongoing issues, but those efforts have not fixed the problem. The elevator’s hydraulic cylinder, which lifts and lowers the car, has failed and must be replaced. Unfortunately, the elevator has reached the end of its useful life and needs a significant overhaul.
The proposal from Otis Elevator Company will fully repair and modernize the elevator. The work includes replacing the failed hydraulic cylinder that lifts and lowers the elevator, along with upgrading the power unit, controller, door equipment, car fixtures, and other key components. Once completed, the elevator will operate more safely and efficiently, meet current building codes, and provide dependable service for City employees.
The vendor, Otis, is the original manufacturer and sole provider authorized to service and supply parts for this specific elevator’s equipment. Furthermore, approval of this action will ensure continuity of service, maintain operational efficiency, and align with the City’s established purchasing policies. The sole-source justification and supporting documentation have been reviewed by the Purchasing Division and are on file for audit purposes.
FISCAL IMPACT
Budget modification No. 9 has been prepared to appropriate $499,565 from the General Fund Budget Stabilization fund to the new Project - Public Safety Headquarters Elevator Repair and Modernization.
Budget Modification No. 9
FY 2025/26
|
General Fund |
Current |
Increase/ (Decrease) |
Revised |
|
Expenditures |
|
|
|
|
Project New - Public Safety Headquarters Elevator Repair and Modernization |
$0 |
$499,565 |
$499,565 |
|
|
|
|
|
|
Reserves |
|
|
|
|
General Fund Budget Stabilization Fund |
$90,385,209 |
($499,565) |
$89,885,644 |
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a purchase order to Otis Elevator Company of San Jose in the amount of $454,150 to repair and modernization the Public Safety Headquarters elevator at 700 All American Way;
- Authorize 10% contingency in the amount of $45,415, for a total not-to-exceed contract amount of $499,565; and
- Approve Budget Modification No. 9 in the amount of $499,565.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Sean Smith, Deputy Director of Public Works Operations
Reviewed by: David Battaglia, Purchasing Officer
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Services Agreement