SR 10-25-2022 5L
City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.L
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services
Subject: Approval of Agreement with Otis Elevator Company for Parking Structure #5
Elevator Repair
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Otis Elevator Company (Otis) for repairs to the Parking
Structure 5 elevator for the Public Works Department. This recommended award is
made as an exception to the competitive bidding process pursuant to Section 2.24.240
(a1, b, c, d3) and 2.24.250 (b) and is for a total amount not to exceed $503,000.
Summary
In 2014, the City executed a project to replace all the elevators in parking structures 2, 4
and 5. These new elevators were manufactured and installed by Otis Elevator, a
proprietary product.
In fall of 2021, one of the elevators in Parking Structure 5 was set on fire with an
accelerant and the damage was extensive to the cab and equipment, with unknown
damage to the equipment in the shaft. This made the elevator unsafe to use. Staff
received pricing from the elevator manufacturer to repair the elevator cab and
equipment to make the elevator operable again. Staff recommends moving forward with
Otis Elevator to make the required emergency repairs.
Discussion
Otis Elevator is the only company certified to work on their proprietary elevator systems.
Allowing a different vendor to repair the elevator would void the City’s current
manufacturer’s warranty. After several months of investigation, Otis provided a quote for
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the initial repairs needed to make the elevator operational. The proposal to repair the
elevator cab and equipment in the elevator control room only, is $303,000 (including
10% contingency). Damage to the elevator shaft, and the equipment in the shaft, cannot
yet be investigated because the area cannot be safely accessed until the initial cab
repairs are completed. Once it is safe to do so, Otis will provide an additional proposal
to make the necessary final repairs. While the exact extent of the damage cannot yet be
quantified, staff anticipate requiring an additional $200,000, making the total estimated
cost not to exceed $503,000.
Staff recommends Otis Elevator Company to furnish and provide material and labor to
repair the fire damaged elevator in Parking Structure 5 as an exception to competitive
bidding per Muni Code 2.24.240 Procedures for Emergency Needs (a.1, b, c, and d.3)
and 2.24.250 (b) Exemptions to the Competitive Process. The existing elevator was
manufactured and installed by Otis in 2014 and must be repaired by Otis to achieve
optimum performance and maintain the original warranty. The scope of work included in
this contract is an urgent repair due to unforeseen events and must be repaired to meet
building codes.
The Risk Management division has submitted an insurance claim to fund the repairs
and the claim has been approved. The City is responsible for a $100,000 deductible.
The insurance company will reimburse the City for applicable expenses after the
deductible is met.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Self-insurance Fund to
award a contract with Otis Elevator for elevator repair services.
Construction Service Agreement
FY2022-23 Amount Account # Total Amount
$503,000 72800002.534500 $503,000
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Prepared By: Alex Parry, Senior Architect
Approved
Forwarded to Council
Attachments:
A. Otis_Oaks_6-27-22
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CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
ty Nata Monlea
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains
certain information. That information includes the name of any person or persons who is seeking a "public
benefit." If the "public benefit" is sought by an entity, rather than an individual person, the information includes
the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of$25,000 over a 12- month
period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the
decision has a value in excess of $25,000;
6. Tax "abatement, exception, or benefit" of a value in excess of $5,000 in any 12- month period; or
7. Payment of "cash or specie" of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
Otis Elevator Company
Name(s) of trustees, directors, partners, and officers:
Judy Marks, CEO & President
Alex Reznik, CFO Americas
Jim Cramer, President Otis Americas
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
N/A
Ross Peare Regional Sales Manager [r9pa[e] [V. r_[[t[e' - «.. fEu EE Date: (/24/2.2
Email: Ross.Peare@otis.com Phone: 323-342-4500
FOR CITY USE ONLY:
Bid/PO/Contract# _ Permit# _
5.L.a
Packet Pg. 575 Attachment: Otis_Oaks_6-27-22 (5315 : Parking Structure #5 Elevator Repair)