SR 06-28-2016 3F
City Council
Report
City Council Meeting: June 28, 2016
Agenda Item: 3.F
To: Mayor and City Council
From: Martin Pastucha, Director, Public Works, Facilities Maintenance
Subject: Sole Source Approval for Elevator Services and 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 an agreement with Mitsubishi Electric US, Inc., a California-based
company, for elevator services and maintenance at the Main Library and the Public
Safety Facility. This recommended award is made as an exception to the competitive
bidding process pursuant to Section 2.24.080 (d) and is for a total amount not to exceed
$296,600 (including a 20% contingency) for a five-year period with future year funding
contingent on Council budget approval.
Executive Summary
Since installation, Mitsubishi Electric US., Inc. (Mitsubishi) has been providing routine
services, maintenance, and repairs of eight Mitsubishi traction and hydro elevators: four
at the Main Library and four at the Public Safety Facility (PSF). The current sole source
agreement expires on October 31, 2016. Due to the proprietary nature of the
equipment as well as safety, liability, and logistical considerations, staff recommends
that Mitsubishi continues to service these elevators under a sole source agreement with
a total amount not to exceed amount of $296,600 over five years.
Background
Mitsubishi provided the original installation of the elevators for the Main Library (601
Santa Monica Blvd.) in 2006 and the PSF (333 Olympic Dr.) in 2004. Since then, the
company has been servicing these elevators for the City.
In November 8, 2011 (Attachment A), City Council approved a five-year sole source
contractual services agreement with Mitsubishi for routine elevator services and
maintenance. This agreement is scheduled to expire on October 31, 2016.
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Discussion
In order to provide uninterrupted elevator services and maintenance to the eight
Mitsubishi elevators at the Main Library and Public Safety Facility, staff recommends
Mitsubishi to furnish and provide elevator services and maintenance as an exception to
the competitive process. A suitable alternate vendor does not exist due to the following
factors demonstrating the proprietary nature of Mitsubishi elevator equipment:
Safety
The maintenance of Mitsubishi elevators at the Library and the PSF require proper
training and expertise to ensure safety, reliability, and product longevity. Only
Mitsubishi technicians and engineers are factory-trained and properly equipped to
maintain, test, and modify control operations and software for Mitsubishi elevators.
Since installation, Mitsubishi has all the maintenance history and records, and its
technicians are familiar with the conditions of the equipment. Should there be any
malfunction during diagnostic testing, Mitsubishi would be most capable of proper
troubleshooting.
Liability
Proper maintenance techniques and parts replacement employed by Mitsubishi protect
the City by minimizing liability exposure from any incidents that could result from
improper practices by a third party.
Logistics
Mitsubishi original equipment manufacturer parts are stored locally. Although other
elevator maintenance companies may order service parts from Mitsubishi, inventory
p
elevator maintenance company that staff contacted indicated that delivery time could
take six weeks.
Furthermore, staff contacted several major elevator maintenance companies regarding
elevator services for the sites referenced above. Amtech Elevator Services, KONE
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Elevators & Escalators, and ThyssenKrupp Elevator America all declined to provide
service based on the following reasons: highly proprietary nature of Mitsubishi elevator
equipment; lack of access to exclusive Mitsubishi computer, diagnostic, and mechanical
equipment to perform necessary diagnostic testing, troubleshooting, service, and
repairs; lack of access to original equipment manufacturer parts; inability to provide
Mitsubishi factory trained and certified technicians; or inability to provide service in the
Los Angeles area.
Vendor Selection
Based on the proprietary nature of Mitsubishi elevator equipment, staff recommends
that a sole source agreement be granted to Mitsubishi Electric US, Inc., for elevator
maintenance service. Mitsubishi would furnish all supplies, materials, labor and
equipment necessary to provide monthly preventive maintenance, replacement and
repair service for elevator equipment at the Main Library and the PSF. Mitsubishi is
offering a 5% discount and first month free for both facilities if the City enters into a five-
year agreement. The agreement includes up to 3% price adjustment per year and a
20% contingency for repairs per year for both sites (Attachment B & Attachment C).
Financial Impacts & Budget Actions
The contractual services agreement to be awarded to Mitsubishi Electric US, Inc. is for
an amount not to exceed $296,600 for a five-year period starting on November 1, 2016.
Funds in the amount of $33,100 for November 1, 2016 June 30, 2017 are included in
the FY 2016-17 budget plan in the Public Works Department. The contractual services
agreement will be charged to the following accounts:
Account Number Amount Contingency Total
014523.533225 (PSF) $15,530 $3,110 $18,640
014523.533226 (Library) $12,050 $2,410 $14,460
Total Not To Exceed, FY 2016-17: $27,580 $5,520 $33,100
Full budget breakdown for the duration of the contract is included in Attachment C.
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Future year funding is contingent on Council budget approval.
Prepared By:
Yvonne Yeung, Senior Administrative Analyst
Approved Forwarded to Council
Attachments:
A. November 8, 2011 staff report
B. Scope of Work & Pricing Sheet
C. Contract Budget
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California Contractor’s License # 791291
VERTICAL TRANSPORTATION MAINTENANCE AGREEMENT
I.SCOPE OF AGREEMENT
MEUS shall select and furnish all supplies, materials, labor, labor supervision, tools, equipment
and lubricants necessary to provide preventive maintenance, adjustment, replacement and repair
service for the Equipment at the Location strictly in accordance with the terms and conditions of
this Agreement.
A. Extent of Coverage
1. MEUS shall regularly and systematically examine, adjust, lubricate and, if conditions warrant as
determined by MEUS, repair or replace the items listed below. MEUS shall not be responsible for
maintaining any other component.
Machines:
(a) The gears, worm shafts, sprockets, chains, bearings, bushings, oil seals, sheaves, brake coils,
brake linings, spring pins, switches and switch components, motor windings, rotors, armatures, brushes,
brush holders, wiring, isolation components, encoders, transducers and ventilating equipment mounted on
the machine.
Power Converters:
(b) The motor generator set windings, coils, armatures, bearings, oil seals, brushes, brush
holders, wiring, isolation components, static converters, thyristors, transistors, diodes, transformers,
reactors, resistors, chokes, relays, coils, fuses, printed circuit boards, ventilating fans, and VVVF Drive
components.
Control Panels:
(c) The relays, contacts, coils, conductors, switches, fuses, transformers, reactors, resistors,
chokes, printed circuit boards, ventilating fans, air filters, wiring, indicating lamps and isolation components.
Position Control Devices:
(d) The encoders, transducers, inductors, tape drives, plates, switches, contacts,
gears, chains, bearings, shafts, cams, sheaves, conductors, relays, coils, fuses, transformers, resistors,
printed circuit boards and indicating lamps.
Governors:
(e) The sheaves, bearings, bushings, seals, switches, contacts, jaws, wire ropes, rope fastenings
and solid state components.
Car and Counterweight Equipment:
(f) The safeties, guide shoes, roller guides, switches, load weighing
equipment, car door operators, drive belts, drive chains, contacts, solid state components, door protective
devices, car door hangers, relating cables, door gibs, wiring, fixture buttons and button contact assemblies,
buzzers, chimes, indicator lamps and emergency light units.
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Hoistway Equipment:
(g) The sheaves, governor tension assemblies, guide rails, switches, compensating
sheave assemblies, compensating chains or cables, wire ropes, traveling cables, wiring, door interlocks,
relating cables, door hangers, door gibs, door closers and landing door operators.
Landing Equipment:
(h) The hall fixture buttons and button contact assemblies, chimes, gongs, indicator
lamps, alarms and annunciators.
Lobby Panels and Fire Control Panels:
(i) The fixture buttons and button contact assemblies, switches,
indicator lamps, alarms and annunciators.
Hydraulic Components:
(j) The cylinder and piston packing, valves, pumping units, drive belts, tank heaters,
low oil alarm units, strainers, mufflers and exposed piping in the machine room or hoistway.
Escalator Components:
(k) The handrail, handrail drive, handrail brush guards, guide rollers and alignment
devices, steps, step treads, comb plates, gears, bearings and bushings, pulleys, coils, linings, chains,
wheels, belts and tracks.
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2. Replacement parts may be new, refurbished, original equipment or equivalent, as selected by
MEUS and shall be furnished on an exchange basis. Any parts replaced become the property of
MEUS. MEUS shall also periodically clean the following areas and equipment, but not more
frequently than listed:
(a) Hoistways - Annually;
(b) Pits, Machine Rooms and Car Tops - Quarterly.
3. Not withstanding the foregoing, the items listed below show significant wear. Accordingly,
Customer shall be separately charged for the replacement cost of each such item, in addition to
the maintenance fee specified below.
B. Excluded From Coverage.
The following equipment and services are hereby expressly excluded from coverage under this
agreement and are not the responsibility of MEUS, with the understanding that this list is not
intended to be exhaustive:
1. Car enclosure, including all finish materials, ceilings, handrails, decorative panels, car fans,
telephones or other in-car emergency communications devices, air conditioning, flooring,
subflooring, returns, gates, doors, and sills;
2. Car light fixtures and decorative lighting, including lamps, ballast, and transformers;
3. Entrance enclosures, including all finish materials, hoistway doors, jambs and sills;
4. Cover plates and attachments for signal and operating fixtures and key switches;
5. Car light fixtures and decorative lighting;
6. Power or main line switches, shunt-trip breakers, fuses, feeders and controllers;
7. Cylinders, plungers and casings;
8. All piping and connections unless exposed in the machine room or hoistway;
9. Security, access or monitoring equipment, fire and/or life safety systems, telephone equipment
and conduit;
10. Seismic devices, smoke sensors, fire sprinklers, emergency power systems, and emergency
lighting fixtures;
11. Obsolete parts no longer available through normal supply sources;
12. Special cleaning of hoistways and related equipment to remove excessive debris as a result of
work by other contractors or sub-contractors.
,
13. Escalator finish materials, lighting, wedge guards, moldings, panels,decking, floor-plates and
balustrades.
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C. Hours and Manner of Work.
MEUS shall perform all work under this Agreement, including callback service, during regular
working hours of MEUS’s regular working days. MEUS shall perform emergency minor
adjustment callback service as indicated below:
() On a 24-hour, 7-days-a-week basis
( ) On overtime callbacks; provided that MEUS shall absorb the worked hours at single time rates
and Customer shall be charged for the overtime premium portions only at MEUS’s regular billing
rates.
( ) On overtime callbacks; Customer shall be charged for the hours worked, at MEUS’sthen
current overtime billing rates.
( ) Other:
D. Customer’s Responsibilities.
Customer Shall:
1. Retain exclusive ownership, possession and control of the Equipment, including the day-to-day
use, operation and management of the Equipment.
2. Be responsible for instructing and warning passengers in the proper use of the Equipment and
for taking the Equipment out of service when it becomes unsafe, operates in a manner that might
cause injury to a user or fails to function normally.
3. Promptly report to MEUS any and all accidents, incidents and/or conditions that arise while
maintaining necessary and proper control of the Equipment.
4. Keep the elevator pits and machine room free and clear of water and trash and not permit them
to be used for storage.
5. Not permit any third party to adjust, repair, service or replace any of the Equipment.
6. Sustain the nominal rated voltage and/ or frequency of the electrical service to the Equipment.
7. Provide MEUS full and free access to the Equipment for the purpose of providing maintenance
and/or conducting evaluations in accordance with this Agreement.
8. Provide MEUS with all necessary utility connections in order to service the Equipment.
9. Provide MEUS with a complete set of as-built wiring diagrams if necessary to the performance of
the work. If required by MEUS, Owner shall provide diagnostic devices and related documentation
required to troubleshoot, service and adjust the Equipment.
E. Additional Work.
1. For a separate and additional fee then quoted by MEUS for each such test, upon the request and
authorization of Customer, MEUS shall conduct tests for the governors, safeties and buffers
and/or the hydraulic system as required by applicable code authorities. It is agreed and
understood that MEUS shall not be held liable for any damage to the equipment or to the building
or other attributed damages resulting from these tests. Testing of all related Life Safety Systems
shall be an additional and separate cost.
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2. MEUS shall not be required to install, modify, remove or maintain equipment which may be
recommended by insurance companies, federal, state, municipal or other governmental
authorities, or as may be required by any federal, state or local law, unless additionally
compensated by Customer for such work or installation in an amount agreed upon by the parties.
3. MEUS shall not be responsible for adjustment, repairs or replacement of the Equipment
necessitated by any cause other than normal wear and tear, including, but not limited to, design
defects for non-MEUS products, accidents, vandalism, misuse, abuse or neglect of the
Equipment, acts of God, or any other causes beyond MEUS’s direct and reasonable control.
Customer shall authorize MEUS in writing to make all such adjustments, repairs or replacements
of the Equipment which become necessary due to such causes and shall separately compensate
MEUS for such work; provided that if Customer fails to provide such written authorization or the
parties are unable to agree to MEUS compensation for such work, MEUS may terminate this
Agreement upon thirty (30) days notice to Customer.
Submitted By: Harrison Gray Date: May 9, 2016
Under a full service contract Mitsubishi Electric will warranty all parts and Labor while
maintaining the vertical transportation equipment for the City of Santa Monica under our
care. This includes everything except miss-use, abuse, vandalism or act of God.
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MITSUBISHIMONTHLYPRICINGSHEET-CITYOFSANTAMONICAPUBLICSAFETY&MAINLIBRARY
Machine/1stYear2ndYearMonthlyPrice3rdYearMonthlyPrice4thYearMonthlyPrice5thYearMonthlyPrice
ControllerMonthlyPricew/3%CapIncreasew/3%CapIncreasew/3%CapIncreasew/3%CapIncrease
BuildingUnitNameCapacity/SpeedFloorsServicedEquipmenttypeCurrentPricing5%Discount
SantaMonicaPublicSafety#1-Lobby3500#/350FPMMitsubishiGPM6EEDTRACTION$693.64$34.68$658.96$678.73$699.09$720.06$741.66
SantaMonicaPublicSafety#2-LeftService4500#/350FPMMitsubishiGPM7EEDTRACTION$693.64$34.68$658.96$678.73$699.09$720.06$741.66
#3-RightService4000#/350FPMMitsubishiGPM6EEDTRACTION$693.64$34.68$658.96$678.73$699.09$720.06$741.66
SantaMonicaPublicSafety
SantaMonicaPublicSafety#4-Jail4000#/125FPMMitsubishiIDH2EEDHYDRO$253.50$12.68$240.83$248.05$255.49$263.16$271.05
TotalMonthlyPrice$2,334.42$116.72$2,217.70$2,284.23$2,352.76$2,423.34$2,496.04
TotalAnnualPrice$26,612.39$27,410.76$28,233.08$29,080.07$29,952.48
Machine/1stYear2ndYearMonthlyPrice3rdYearMonthlyPrice4thYearMonthlyPrice5thYearMonthlyPrice
ControllerMonthlyPricew/3%CapIncreasew/3%CapIncreasew/3%CapIncreasew/3%CapIncrease
BuildingUnitNameCapacity/SpeedFloorsServicedEquipmenttypeCurrentPricing5%Discount
SantaMonicaMainLibrary#1-Left2500#/350FPMMitsubishiGPM5EEDTRACTION$652.11$32.61$619.50$638.09$657.23$676.95$697.26
#2-Right2500#/350FPMMitsubishiGPM5EEDTRACTION$652.11$32.61$619.50$638.09$657.23$676.95$697.26
SantaMonicaMainLibrary
SantaMonicaMainLibrary#33500#/125FPMMitsubishiGPH2EEDHYDRO$253.50$12.68$240.83$248.05$255.49$263.16$271.05
SantaMonicaMainLibrary#4-Service5000#/150FPMMitsubishiIDH3EEDHYDRO$253.50$12.68$240.83$248.05$255.49$263.16$271.05
TotalMonthlyPrice$1,811.22$90.56$1,720.66$1,772.28$1,825.45$1,880.21$1,936.62
TotalAnnualPrice$20,647.91$21,267.35$21,905.37$22,562.53$23,239.40
*Uponexecutionofcontractthe1stmonthofserviceswillperformedfreeofchargeatbothproperties.*
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1.Annualincreasenottoexceed:3%
2.5%discountforbothproperties
3.1stmonthfreeforbothproperties
BUDGETBYCONTRACTYEARS
11.1.201610.31.201711.1.201710.31.201811.1.201810.31.201911.1.201910.31.202011.1.202010.31.2021
LocationAccountNumberYear1Year2Year3Year4Year5
1
Annually
MonthlyMonthlyAnnuallyMonthlyAnnuallyMonthlyAnnuallyMonthlyAnnually
MainLibrary014523.533226 1,720.6618,927.26$1,772.2821,267.36$1,825.4521,905.38$1,880.2122,562.54$1,936.6223,239.42
PublicSafetyFacility014523.533225 2,217.7024,394.70$2,284.2327,410.77$2,352.7628,233.10$2,423.3429,080.09$2,496.0429,952.49
BothSites:3,938.3643,321.964,056.5148,678.134,178.2150,138.474,303.5551,642.634,432.6653,191.91
Contingency:20%8,664.399,735.6310,027.6910,328.5310,638.38
AnnualContract(Actual):51,986.3558,413.7660,166.1761,971.1563,830.29
AnnualContract(Rounded):52,000.0058,500.0060,200.0062,000.0063,900.00
TotalContract(20162021):296,600.00
BUDGETBYFISCALYEARS
11.1.20166.30.20177.1.20176.30.20187.1.20186.30.20197.1.20196.30.20207.1.20206.30.20217.1.202110.31.2021
LocationAccountNumberFY201617FY201718FY201819FY201920FY202021FY202122
1
Annually
AnnuallyAnnuallyAnnuallyAnnuallyAnnually
MainLibrary014523.533226 12,044.6221,060.8821,692.7022,343.4923,013.797,746.47
PublicSafetyFacility014523.533225 15,523.9027,144.6527,958.9928,797.7629,661.699,984.16
BothSites:27,568.5248,205.5349,651.6951,141.2452,675.4817,730.64
Contingency:20%5,513.709,641.119,930.3410,228.2510,535.103,546.13
AnnualContract(Actual):33,082.2257,846.6359,582.0361,369.4963,210.5821,276.76
AnnualContract(Rounded):33,100.0057,900.0059,600.0061,400.0063,300.0021,300.00
TotalContract(20162021):296,600.00
1.Firstmonthfree
wĻŅĻƩĻƓĭĻʹ
AgreementNo.10329
(CCS)