DATE: January 8, 2019
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Third Amendment to Agreement with Schindler Elevator Corporation
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Third Amendment to Agreement No. 15-026 with Schindler Elevator Corporation for preventative maintenance, repair, and additional elevator services, effective upon execution with no change in term to January 12, 2020 and increasing the maximum compensation by $800,000, for a total potential 5-year not to exceed amount of $3,688,120.
REPORT
Approval of the recommended action will allow the Internal Services Department - Facility Services Division (ISD Facilities) to fulfill an increased demand for preventative maintenance, repair, and additional elevator services for elevators at various County-owned facilities throughout the County. Approval of the recommended action will increase the potential 5-year compensation by $800,000, to a total not to exceed compensation amount of $3,688,120. Approval of the recommended action will also remove the yearly limitation of amounts payable for services, which will allow ISD Facilities to fulfill the continued increase of work requests for preventative maintenance, repair, and additional elevator services at various County-owned facilities throughout the County. This will give ISD Facilities more flexibility in allocating and spending funds throughout the remaining term of the Agreement. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, ISD Facilities may be unable to fulfill departmental work requests for preventative maintenance, repair, and additional elevator services at various County-owned facilities throughout the County.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. All costs associated with these services are recovered through charge-backs to user departments. Sufficient appropriations and estimated revenues are included in Facility Services Org 8935 FY 2018-19 Adopted Budget. Sufficient appropriations for the remaining term of the Agreement will be included in subsequent recommended budgets.
DISCUSSION:
On January 13, 2015, the County executed Agreement No. 15-026 for elevator preventative maintenance and repair services. The Agreement awarded vendor, Schindler Elevator Corporation, a total potential 5-year agreement (a 3-year base term plus 2 successive 1-year extensions), with specified annual compensation amounts, and a 5-year maximum compensation amount not to exceed $2,568,120.
On July 14, 2015, the County executed the First Amendment to Agreement No. 15-026 and on November 17, 2015, the County executed the Second Amendment.
The First Amendment added additional elevator services (in addition to preventative maintenance and repair services) to the Agreement. Both amendments increased the total compensation for the first year of the Agreement, which consequently increased the 5-year maximum each time. In the First Amendment, the first-year compensation amount of the Agreement increased by $120,000, for a 5-year maximum of $2,688,120. In the Second Amendment, the first-year compensation amount increased by an additional $200,000, for a 5-year maximum of $2,888,120. The annual maximum compensation for the remaining subsequent years (years 2-5) remained the same on both amendments ($513,624 annually).
Approval of the recommended action will increase the potential 5-year compensation by $800,000, to a total not to exceed compensation amount of $3,688,120. Approval of the recommended action will also remove the yearly limitation of amounts payable for services. This will allow ISD Facilities to fulfill the continued increase of work requests for preventative maintenance, repair, and additional elevator services at various County-owned facilities throughout the County and will give ISD Facilities more flexibility in allocating and spending funds throughout the remaining term of the Agreement.
The County is presently in the 4th year (ending January 12, 2019) of the potential 5-year term of the Agreement. The Agreement will expire January 12, 2020.
All other provisions, terms, covenants, conditions and promises contained in the Agreement will remain unchanged.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Third Amendment
CAO ANALYST:
Yussel Zalapa