DATE: August 6, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Agreement with TK Elevator Corporation
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a First Amendment to Agreement with TK Elevator Corporation for elevator maintenance and repair services, effective upon execution, with no change to the term of January 21, 2020, through January 20, 2025, and increasing the maximum compensation by $500,000 to a total of $6,000,000.
REPORT
There is no additional Net County Cost associated with the approval of the recommended action, which will allow the Internal Services Department - Facility Services division (ISD - Facility Services) to continue to complete unanticipated, or “as-needed,” repairs and upgrades to elevator equipment throughout the County. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board choose to not execute the recommended amendment, ISD - Facility Services will need to find alternative solutions for additional elevator repairs and upgrades not already covered under the current agreement, resulting in slower response time and higher costs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended amendment will increase the maximum compensation by $500,000 to $6,000,000. ISD - Facility Services recovers all costs associated with these services through chargebacks to user departments. Sufficient appropriations and estimated revenues have been included in ISD - Facility Services Org 8935 FY 2024-25 Recommended Budget.
DISCUSSION:
On January 21, 2020, your Board approved Agreement No. 20-035 (Agreement) with ThyssenKrupp Elevator Corporation (TKE) to provide ongoing services, maintenance, and inspections, alongside repairs and upgrades for the reliability and safety of the County’s elevator systems.
On March 5, 2021, TKE officially changed their name with the Secretary of State from ThyssenKrupp Elevator Corporation to TK Elevator Corporation.
The County has been working to identify elevators operating in County-owned facilities that, due to the age and obsoleteness of the equipment, are in need of modernization and are at risk of being taken out of commission, should unanticipated issues occur. ISD - Facility Services is requesting to increase the maximum compensation allowable for “as-needed” repairs and upgrades to help ensure adequate funds are available should any emergency or unanticipated repairs arise in the final months of the Agreement, in addition to planned upgrades already underway. With the average age of the equipment being 40 years old, repairs are more likely to be required, even with regular maintenance, and could be significant and costly should any equipment malfunction or breakdown occur.
TKE has been successful in providing modernization upgrades to County equipment, including the modernization of the controller and drive for the elevators located at the Hall of Records, and is currently working on upgrades to Car 4 and repairing an automatic transfer switch concern for Car 1 at the Main Jail.
The Agreement is for a five-year term, which includes a three-year initial term and two optional one-year extensions, with $2,000,000 for scheduled maintenance services and $3,500,000 for repairs and upgrades. ISD - Facility Services is requesting an increase of $500,000 to the maximum compensation for the remaining 5 months of the term, in order to cover unanticipated repairs that have already occurred, and additional issues that may arise moving forward due to the age of the equipment.
Approval of the recommended action will amend the Agreement with TKE to account for unanticipated repairs to County elevators, increasing the maximum compensation by $500,000 to $6,000,000, with no other change to the terms of the Agreement.
REFERENCE MATERIAL:
BAI #33, January 21, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement with TKE
CAO ANALYST:
Ahla Yang