REPORT TO COUNCIL
SUBJECT
Title
Modify a Purchase Order with Otis Elevator Company for Elevator Repairs (F20-063)
Report
REPORT IN BRIEF
Approval is requested to amend an existing blanket purchase order with Otis Elevator Company of Sunnyvale, CA, for elevator repairs, increasing the not-to-exceed amount by $44,000 for a new total not-to-exceed amount of $139,000.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Further, Section 2.08.070(b)(3) of the Sunnyvale Municipal Code exempts from competitive bidding those purchases in which solicitations of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City contracts with Otis Elevator Company (Otis) annually for City elevator maintenance. Otis was selected as the sole vendor for necessary repairs and maintenance for all City of Sunnyvale elevators and the multi-modal Caltrain Station parking structure elevators, which the City maintains, through an exemption to competitive bidding requirements. During the term of the blanket purchase order, the contract amount increased from an initial amount of $34,000 to its current limit of $95,000 under the City Manager’s award authority. These increases were necessary based on unplanned mechanical failures. Further increase for the elevator repair service was required due to ongoing mechanical repairs of the multi-modal elevators at the Caltrain Station, as a result of continuing vandalism. The request will increase the blanket purchase order by $44,000 and provide funding to pay outstanding invoices for services and repairs completed before the blanket purchase order expired on September 23, 2019 and will extend the termination date until December 31, 2019. Services performed after September 23 will be placed on a new Blanket Purchase Order awarded under the City Manager’s award authority.
FISCAL IMPACT
Funding for the increase of the purchase order is available in the City’s operating programs for Parks and Open Space Management (for multi-modal costs) and Facilities Management (for City facility related costs). The City has a Cooperative Agreement with the Peninsula Corridor Joint Power Board (PCJPB) which reimburses the City for 90% of the maintenance cost of the Caltrain station.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to amend the existing Blanket Purchase Order with Otis Elevator Company for elevator repairs, increasing the not-to-exceed amount by $44,000 for a new total not-to-exceed amount of $139,000 and extend the termination date until December 31, 2019.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Change Order to Blanket Purchase Order