Title
Resolution to Approve a Contract with Schindler Elevator Corporation for the Modernization of Two Elevators ($379,910.00)
Memorandum
We recommend your approval of the attached resolution authorizing a contract in the amount of $379,910.00 with Schindler Elevator Corporation for the modernization of two elevators in City facilities. The project involves the removal of the existing elevator machine room components, control system, cab interior and other components from the traction style, freight elevator in the rear of the Larcom City Hall. The project also includes the removal of the hydraulic system, control system, cab interior and other components from the hydraulic elevator located in Fire Station #1. New equipment would replace the obsolete equipment and many other components would be either reused or refurbished based on the elevator study completed earlier this year by an outside consulting firm.
The rear freight elevator is original to City Hall and is 55 years old. The unit has never been modernized or upgraded and is unreliable. Parts are very difficult to obtain and frequently require using salvaged parts to keep the unit operable. As the unit is the only elevator that accesses the 7th floor (mechanical penthouse), keeping it in service is important.
The hydraulic elevator is also original to Fire Station #1 and is 40 years old. The unit has never been modernized or upgraded and is prone to breakdowns. Parts are difficult to obtain and used parts have been necessary in the recent past. This is the only elevator in Fire Station #1 and provides the required ADA access to the third floor dispatch center and their 24/7 operations.
Complete replacement of these elevators would require significant and costly changes to both buildings. A modernization project upgrades the necessary equipment to extend the lifecycle of the units while triggering a lower level of building modifications under the State codes. Anticipated building modifications include work on the fire suppression system, fire alarm system and HVAC system. These modifications are outside of the scope of work for the elevator contractor and will be handled by the City.
Modernization proposals were solicited under RFP #17-16 and two proposals were received on July 20, 2017. Staff evaluated the proposals, interviewed both firms and finalized the scope of work, pricing and schedule details. Staff recommends that Schindler Elevator Corporation, as the most responsive proposal, be awarded the contract.
Budget Impacts
Funding for each elevator was provided in different projects within the approved General Fund Capital Budget. The City Hall Elevator Replacement project has $229,400.00 in funding. The Fire Station #1 elevator replacement work was included as part of a larger Fire Stations #1 & #6 Rehabilitation project, which has $221,000.00 in funding. Both projects will be over budget because of the elevator modernization.
The revised project budget for the City Hall Elevator Replacement project includes design/engineering ($6,500.00), elevator work ($286,900.00), building modifications by Owner ($8,000.00) and a 5% contingency ($13,500.00) for a total of $314,900.00. The revised project budget for the Fire Stations #1 & #6 Rehabilitation project includes Fire Station #1 HVAC rooftop replacement ($89,900.00), elevator replacement ($110,500.00), interior renovations ($46,500.00) and Fire Station #6 interior renovations ($39,500.00) for a total of $286,400.00. The elevator replacement cost of $110,500.00 is comprised of design/engineering ($3,500.00), elevator work ($93,000.00), building modifications by Owner ($9,000.00) and a 5% contingency ($5,000.00).
After meeting with Finance to discuss the deficiencies and the best way to fund them, it was determined to utilize funding from other approved General Fund Capital Projects was the most prudent way of staying within approved funding without tapping General Fund fund balance.
Staff proposes that the $85,500.00 project deficit for the City Hall Elevator Replacement project comes from the $280,000.00 approved for the City Hall Primary Chiller Replacement project. Staff further proposes that the $65,400.00 project deficit for the Fire Stations #1 & #6 Rehabilitation project comes from the $100,000.00 approved for the Fire Stations #3 & #4 Rehabilitation project. The Primary Chiller project is still important and will move forward so it is just a matter of setting priorities to stay within available funding. As the work on this project has not yet started, it also allows staff to incorporate scope of work changes to address the reduced budget if needed. Work is still needed at Fire Stations #3 & #4 but it again becomes a matter of priorities.
Schindler Elevator Corporation complies with the requirements of the City’s Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, There is a need to provide safe and reliable elevators in both Larcom City Hall and Fire Station #1;
Whereas, The existing freight elevator in Larcom City Hall is 55 years old and the existing elevator in Fire Station #1 is 40 years old and both are well beyond their useful life and in need of replacement;
Whereas, Two proposals for the modernization of these elevators were received July 20, 2017, and Schindler Elevator Corporation of Morristown, NJ, submitted the most responsive proposal under RFP #17-16;
Whereas, Schindler Elevator Corporation complies with the City’s Living Wage, Prevailing Wage and Non-Discrimination ordinances; and
Whereas, The project was included in the City’s Capital Improvement Plan and funding is available in the General Fund Capital Budget.
RESOLVED, That City Council approve a contract, per RFP #17-16 and the revised proposal dated August 18, 2017, with Schindler Elevator Corporation, in the amount of $286,899.00 for the Larcom City Hall elevator replacement and $93,011.00 for the Fire Station #1 elevator replacement for a total amount of $379,910.00;
RESOLVED, That City Council approve a construction contingency in the amount of $13,500.00 for the Larcom City Hall elevator replacement and $5,000.00 for the Fire Station #1 elevator replacement to cover potential contract change orders;
RESOLVED, That funding for the project comes from the approved General Fund Capital Budget;
RESOLVED, That the project deficit in the amount of $85,500.00 for the City Hall Elevator Replacement project comes from the City Hall Primary Chiller Replacement project and that the project deficit in the amount of $65,400.00 for the Fire Stations #1 & #6 Rehabilitation project comes from the Fire Stations #3 & #4 Rehabilitation project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator is authorized to take all necessary actions to implement this resolution including the approval and execution of change orders within the approved contingency amount.