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City of City Council Report
Santa Monica'
City Council Meeting: November 8, 2011
Agenda Item: 3 F
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Sole Source Approval for Elevator Service & Maintenance at the Public
Safety Facility and Main Library
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a sole source contract service agreement for elevator maintenance and service at
the Main Library and Public Safety Facility to Mitsubishi Electric & Electronics USA, Inc., a
California -based company, in the amount of $305,797 for a five -year period.
Executive Summary
The purpose of this sole source contract service agreement is to provide routine service
and maintenance to four Main Library and four Public Safety Facility Mitsubishi traction
and hydro elevators. Mitsubishi Electric & Electronics USA, Inc. is recommended to
perform this service due to the proprietary nature of their equipment for the amount of
$305,797 over a term of five years.
Background
Mitsubishi provided the original installation of the elevators for the Main Library in 2006
and the Public Safety Facility (PSF) in 2004. Since then, the company has been servicing
these elevators for the City. Several factors demonstrate the proprietary nature of
Mitsubishi elevator equipment, which are:
• All local, in -house parts are sold to Mitsubishi service providers only. All other
companies must order parts from Japan, which can take from 2 to 10 weeks to
arrive.
• If original equipment manufacturer parts are not used for repairs, the warranty is
voided.
• Non original equipment manufacturer parts will not communicate with Mitsubishi
control panels.
• Troubleshooting tools are not available for purchase by other service companies. If
the proper diagnostic tools are not used, the warranty is voided.
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a Equipment drawings are not available to other service companies.
• Mitsubishi technicians are factory trained.
• The warranty remains in place as long as the service agreement with Mitsubishi is
kept intact.
Discussion
Staff contacted several major elevator repair companies in the Southern California area.
Kone, Inc., Schindler Elevator Corp., Superior Alliance Elevator, and AMTECH Elevator
Services all declined to provide service for Mitsubishi elevators after performing a site
inspection based on the lack of access to original equipment manufacturer parts,
diagnostic equipment and equipment specs.
Based on the proprietary nature of Mitsubishi elevator equipment, staff recommends that a
sole source contract service agreement be granted to Mitsubishi Electric & Electronics
USA, Inc. for elevator maintenance service. Mitsubishi would furnish all materials, labor,
and equipment necessary to provide monthly preventive maintenance, replacement and
repair service for elevator equipment at the Main Library and PSF. Mitsubishi is also
offering a 5% discount on both facilities and one month free for both facilities if the City
enters into a five -year service agreement.
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Financial Impacts & Budget Actions
The purchase order to be awarded to Mitsubishi Electric & Electronics USA, Inc. is
$305,797 for a term of five years. This amount includes a 5% price adjustment per year
and a $5,500 contingency per facility per year. Funds in the amount of $115,778 for the
first two years of service are included in the FY2011 -13 budget at the following accounts:
01484.533225 $ 63,803
01484.533226 51,975
TOTAL $115,778
Budget authority for subsequent years will be requested in each budget cycle for Council
approval. Future funding is contingent upon Council approval.
Prepared by: Ryan Kraemer, Sr. Administrative Analyst
Forwarded to Council:
Rod Gould
City Manager
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Reference Contract No.
9505 (CCS)