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HomeMy WebLinkAbout2/6/2013 - STAFF REPORTS - 2I iOQ P A LM Sp9 .y Y N . 'Lao qq MYfFO Y cgOF010" CITY COUNCIL STAFF REPORT DATE: February 6, 2013 CONSENT CALENDAR SUBJECT: AIRPORT ESCALATOR MAINTENANCE AGREEMENT FROM: David H. Ready, City Manager BY: Airport SUMMARY The City Council will consider awarding a sole source agreement to KONE Inc. for a three year service agreement for escalator maintenance and repair at Palm Springs International Airport. RECOMMENDATION: 1. Approve a three year service contract with KONE Inc. in the amount of $21,084.00 per year, for a total amount of $63,252.00, for specified preventive maintenance services for the two escalators located at the Airport, in a form acceptable to the City Attorney. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The Airport Terminal's Bono Concourse has two escalators that require the use of a contracted firm to provide routine maintenance. Since the installation of the units in 1999, the manufacturer KONE Inc. has been under contract to provide these services because of the special expertise, parts, and proprietary equipment programming requirements. Staff recommends continuing with this arrangement for a three year period. Section 7.04.030 of the Municipal Code provides that the City Council may authorize the acquisition of supplies, equipment or services without competition when it is determined that an unusual or unique situations exists, in that due to experience and expertise demonstrated in prior contracts with the city a particular contractor is uniquely qualified for a particular task, that makes the application of all requirements of competitive sealed bidding or competitive sealed proposals contrary to the public interest. The prior contract performance and special expertise provided by KONE Inc. for escalator repair and maintenance services at the airport has been deemed acceptable and will REM NO. 21 City Council Staff Report February 6, 2013 - Page 2 Airport Escalator Maintenance Agreement adequately protect the public interest in that the total cost of the services to be provided will likely be equal to or less than what could be obtained through an independent City competitive process at this time. FISCAL IMPACT: The Airport includes the cost of escalator maintenance services in the operating budget each year. The current annual cost is $19,090.80. The quoted annual cost for each year of the proposed 3 year agreement will be $21,084.00. The primary reason for the increase in annual cost is because of the increasing age and demand for maintenance on the equipment. The cost of the proposed services total $63,252.00 over the 3 year period. Funding for the work is included in account#415-6200-43200. es��a�M� Thomas o an, Executive Director, Airport David H. Ready, City Manager Attachments: 1. KONE Inc. Agreement 02 KNE Escalators Elevators PLUS (COMPLETE MAINTENANCE) AGREEMENT FOR VERTICAL TRANSPORTATION PURCHASER (Equipment Owner): City of Palm Springs 3400 East Tahquitz Canyon Way PO Box2743 Palm Springs, CA 92263 SERVICE LOCATION: Palm Springs International Airport 3400 East Tahquitz Canyon Way PO Box 2743 Palm Springs, CA 92263 EQUIPMENT DESCRIPTION Make Model Frei ht Passe er Escalator Walk Other Traction H draulic I Traction Mraubc KONE E-SERIES r rj r 2 Palm Springs international Airport Rev.4 9105/08 Page 7 Of 8 03 This contract/agreement,dated 0 1101/2 01 3, by and between City of Palm Springs , (Purchaser)and KONE Inc.(KONE Contractor) is for Complete Maintenance for the vertical transportation located at Palm Springs International Airport. KONE and Purchaser, in consideration of the terms, covenants & conditions set forth, hereby agree as follows: PERFORMANCE KONE will systematically examine, maintain, adjust and lubricate the equipment In addition, unless specifically excluded elsewhere, KONE will repair or replace the following if the repair or replacement is, in KONE's judgment, necessitated by normal wear and tear. ESCALATORS ESERIES 5000V-GLASS BALUSTRADE ESCALATOR SYSTEM COMPONENTS CONTROL SYSTEM CPU board, brake control board, controller annunciator display, starter panel, control temperature switch, control power transformer, power supply board, isolation transformer, high voltage, upper and lower junction boxes- DRIVE MACHINERY AND MOTOR EQUIPMENT AC motor, encoder, permanent magnet brake, gearbox, bull gear, ring and pinion gear, oil bucket and lower reversing station. The gear case will be periodically drained and flushed to remove sediment and grit and refilled with new gear oil. HANDRAIL DRIVE SYSTEM Handrails, handrail drive wheel; handrail roller cluster, handrail drive chain, handrail take-up device and handrail guide assemblies. SAFETY SWITCH SYSTEM Missing step detector, handrail inlet switches, step upthrust inlet switches, combplate impact device, skirt switches, pit stop switches, access cover switches, out-of-level step switches, emergency stop switches, alarm on the stop switch cover, broken step chain switches, key start switches, brake temperature switch and motor pit stop switch. GUIDANCE AND ALIGNMENT SYSTEMS Rollers, handrail tracks, novatex boards, sprockets, pulleys, comb segments and comb plates, landing plates, lubricators and comb lighting. Balustrades and decks, shall be examined, adjusted, properly fastened and aligned. HOUSEKEEPING Purchaser and KONE have a shared responsibility to clean escalator equipment, pits, pans and balustrade interiors. HOURS OF SERVICE All work covered under this Agreement is to be performed during the regular working hours of regular working days of the elevator trade, unless otherwise indicated herein- Palm Springs international Airport Rev.4 9(05108 Page 2 of 04 KONE SERVICE CENTER The KONE Service Center is available 24-hours a day, seven days a week to respond to all calls and dispatch a service technician if necessary, in the unlikely event of an entrapment, a highest priority response will be given. If your unit is equipped with remote monitoring capabilities, KONE reserves the right to utilize this functionality and the phone line for the unit to collect data related to the use and operation of your equipment. SERVICE REQUESTS(CALLBACKS) This Agreement covers minor adjustment service requests during the regular working hours of regular working days of the elevator trade, unless otherwise indicated herein_ If Purchaser should require, at any time, service requests (unless included above) to be made on overtime, Purchaser will be charged only for the difference between KONE's regular hourly billing rate and KONE's regular overtime billing rate applicable for each overtime hour worked. All work outside the scope of this Agreement is to be performed by KONE at an agreed upon rate. Purchaser will also be charged for travel time to and from project location at KONE's regular billing rates. Service requests are defined as minor adjustments, corrections or emergency entrapments that require immediate attention and are not caused by reasons beyond KONE's control. Service requests do not include work that requires more than one technician or more than two hours to complete. EXCLUSIONS KONE assumes no responsibility for the following items or services, which are excluded from the Agreement ESCALATOR Refinishing, repairing, replacement or cleaning of balustrades, sideplate devices, steps, step treads, step chains, decks, skirt panels, handrails, anti-slide devices, brushes, guards and damage or deterioration to escalator skirt deflector brushes. Purchaser agrees that escalators are for the sole purpose of transporting passengers, to prevent other items from being transported on escalators and agrees to prevent safety devices from being damaged. GENERAL KONE shall not be obligated to make other safety tests other than those specified herein, equipment adjustments, or to install new attachments whether or not recommended or directed by insurance companies, or by federal, state, municipal, A.S.M.E. codes, or other governmental or non-governmental authorities. KONE will maintain the equipment performance and its components to the operating condition at the effective date of this agreement. KONE shall not be required to perform and keep records of firefighter's service testing, unless specifically included elsewhere in this agreement. KONE shall not be obligated to make equipment adjustments to achieve Code required EscalatorStep(Skirt Performance Index or loaded gap values. KONE shall not be obligated to make changes or adjustments required by new or retroactive code changes. KONE will not be responsible to perform tests or correct outstanding violations or deficiency lists cited by code authorities or any third party agency prior to the effective date of this agreement. KONE will not be required to make renewals or repairs necessitated by fluctuations in the building AC power systems, adverse machine room conditions (including temperature variations below 60 degrees and above 90 degrees Fahrenheit), excessive humidity, adverse environmental Palm Springs h temational Airport Rev,4 9/05108 Page 3 of 8 05 conditions, water damage, prior water exposure, rust, fire, explosion, acts of God, misuse, vandalism, theft, war, acts of government, labor disputes, strikes, lockouts or tampering with the elevator equipment by unauthorized personnel. KONE shall not be obligated to make repairs or renewals for damage or deterioration caused by UV rays. KONE shall not be required to make renewals or repairs necessitated by negligence or misuse of the equipment or any other cause beyond its control except ordinary wear and tear. Obsolete items are excluded from this agreement. Obsolete items and the labor to replace them will be at the owner's expense. Obsolete items(including, but not limited to, assemblies, parts, components or systems) are defined as follows: An item for which the original design is no longer regularly manufactured by the OEM or the original item has been replaced with an item of different design. No exception to this exclusion will be made for items defined as obsolete above simply because they can be custom made or acquired at any price. Any modifications to existing equipment necessary to accommodate replacement components will also be at the owner's expense. KONE will not be required to furnish reconditioned or used parts. INDEMNITY CLAUSE (See attachment A) P a t KONE. of PURCHASER ASSURANCES AUTHORIZED PERSONNEL Purchaser agrees to furnish KONE with a list of authorized personnel responsible for building operations. WRING DIAGRAMS Purchaser agrees to provide KONE with a complete set of as built wiring diagrams. NOTIFICATION In the event that the equipment is not functioning properly, purchaser agrees to ,shut down equipment and notify KONE for repair. Purchaser agrees to notify KONE in the event of any injury or accident in or about the equipment included in this agreement. Verbal notification must be provided immediately and written notification must be provided within seven days. OPERATION Purchaser shall at all times be solely liable for the proper use of the equipment. Purchaser agrees to post any and all instructions and warnings to passengers related to the use of the equipment. Purchaser shall not permit anyone other than KONE to make repairs additions, modifications, upgrades or adjustments to the equipment covered herein during the term of the agreement. TESTING AND SERVICING Purchaser agrees to perform the monthly firefighter's service testing and keep record of such tests, if required and not specifically included elsewhere herein. Purchaser agrees to annually maintain the mainline disconnect switch by a certified electrician and repair as necessary. EQUIPMENT ACCESS Purchaser agrees to provide safe access to the equipment and machine room areas for service and keep all machine rooms and pit areas free from water, stored materials and debris. Pahn Springs International Airport Rev,4 9/05r08 Page 4 of 8 06 Purchaser agrees to remove and dispose of any hazardous materials, water or waste according to applicable laws and regulations. Purchaser agrees to provide a safe workplace for our personnel. SATISFACTION If you are ever less than very satisfied with KONE's performance, Purchaser agrees to contact KONE immediately. CONTRACT TERM(See Attachment"A") The service specified will be furnished from the effective date stated herein, and shall continue for an initial, cancelable term of THREE (3) years with the right for either party to renew the agreement each year. This Agreement will automatically renew for successive terms of One (1) years thereafter. s I-) y ) da date greemerrt, e*p{ation d the. ffa� rf"t nf any s_h._.q t h f th.t c ,-h P ,h.9Ar ic,made_a4'tafP�f this AqrP,aMPru nri a c a r a + h h ,n.+ by discretiorr, ntten-not ce rrr-terminate entirely upen 0-1AHaeHays wr+tEep ce tea-due•t nt widi�rg-pal3iiE e�K9NE=sµteakr�ieat�sr~ dieg, but not limitpri to P�irrhzcpr"c art of rreatjng.-Of-dtt(dwtr' --{dFaGtIFiB6 f epairs or K6f iE-may-tmmediatety t 1t5-BRtiF6ty-Up©Fl-wFttt41�-R�tICe. CONTRACT PRICE KONE in consideration of $5,262.00 (FIVE THOUSAND TWO HUNDRED SIXTY TWO AND 001100 DOLLARS) payable by Purchaser quarterly in advance (equivalent to $1,754.00 //month), hereby agrees to furnish services herein described on the equipment within the agreement. The monthly service amount above will remain same for term of the contract. r er ourThe ield labor rates will be adjusted ann nuary 1 of each year of the contract. The ho e or decrease-in-Iat7a7 rosts� label Rates The current striugbLtme labor cost is the sum of the straight time hourly rate plus of fringe benefits (fringe benefits inc u sion, vacations, paid holidays, insurance, and other uni paid to elevator exams the equipment is ma' K9NE--reserves-tlae-- ghi-- --asdtenaNy- ad}ust ttx-earrtset-{�ri cirsuM9taac4s f-thscost.of fue Palm Springs International Airport Rev.4 9/05/08 Page 5 of 8 07 PAYMENTTERMS Payments are due within thirty (30) days of date of invoice. A delinquent payment charge calculated at the rate of 1'/2% per month, or if such rate is usurious then at the maximum rate under applicable law, shall be applied to delinquent payments. In the event of default of the payment provisions herein, Purchaser agrees to pay, in addition to any defaulted amount, all attorney fees, collection cost or court cost in connection therewith. Failure to pay any sum due by Purchaser within sixty (60) days will be a material breach. KONE may at KONE's option declare all sums due or to become due for the unexpired term immediately due and payable as liquidated damages, and until the same are paid, KONE may suspend service, and be discharged from further obligations under the contract. If KONE exercises its right to suspend service, KONE shall not be responsible for injury or damage resulting from the lack of service. When service is resumed, Purchaser will be responsible for any costs KONE incurs as a result of the lapse in service. These payment terms shall also be applicable to any charges for work outside the scope of this Agreement. EXTENDED TERM SAVINGS OPTION It is agreed that in consideration of Purchaser's selection of one of the extended contract terms set forth below, KONE will apply, upon acceptance of this agreement by Purchaser, the appropriate savings discount to the contract price throughout such contract term and all term periods subsequent thereto. Contract Term Savings Applied By Indicate Purchaser's Selection by Selected by KONE Signing the Appropriate Line Purchaser Ten (10)years 3% Fifteen (15) years 5% Twenty(20)years 7% PERFORMANCE CLAUSE r r I e. I er outstandingNvt withstanding this �Vrtj--Parctrasm nernainsr ob,"gated 'M -pay an Previously b' PREPAYMENT DISCOUNT 2% Discount for annual payment in advance Accepted 1% Discount for semi-annual payment in advance Accepted TAX Purchaser shall pay, in addition to the price, any tax imposed upon Purchaser by any existing or future law and the amount of tax imposed upon KONE, KONE's suppliers or Purchaser under any Paint Springs International Airport Rev.4 9/05/08 Pave 6 of 8 0R statute, court decision, rule or regulation currently effective or becoming effective after the date of this Agreement which is based upon or incident to the transfer, use, ownership, or possession of the materials or equipment involved in the performance hereof or the services rendered, hereunder. OBLIGATIONS OF THE PARTIES Nothing in this Agreement shall be construed to mean that KONE assumes any liability of any nature whatsoever arising out of, relating to or in any way connected with the use or operation of the equipment covered by this Agreement. Purchaser shall be solely responsible for supervising the use of the equipment and for taking such steps including but not limited to providing attendant personnel, warning signs and other controls necessary to ensure the safety of the user or safe operation of the equipment. Purchaser shall at all times and at Purchaser's own cost, maintain a commercial general liability policy covering bodily injury and property damage with the limits of liability Purchaser's customarily carry for the life of this contract(naming KONE as an additional insured)arising out of the services provided under the Agreement and/or the ownership, maintenance, use or operation of the equipment described herein. Neither KONE nor its affiliates shall be liable for any loss, damage, detention or delay caused by accidents, strikes, lockouts, material shortages or by any other cause which is beyond its reasonable control, or in any event, for incidental or consequential damages. KONE shall not be liable for any work, service or material other than that specifically mentioned herein. KONE and the purchaser will not be liable to the other party for any indirect, consequential, or special damages including but not limited to fines, penalties, loss of profits, goodwill, business or loss of use of equipment or property. ADDITIONAL TERMS This Agreement shall constitute, exclusively and entirely, the agreement for the service described and all prior representations or agreements relating thereto, whether written or verbal, shall be deemed to be merged herein and this Agreement including changes in or additions to shall not be binding upon KONE until approved by a local Office Manager or one of its executive officers at Moline, Illinois. Submission of this contract does not void or otherwise nullify the existing contract until this new contract is signed and approved by both parties. The Terms and Conditions set forth herein shall prevail over and supersede any terms and conditions contained in any documents provided by Purchaser. KONE disclaims any warranty of,any kind, either express or implied, including without limitation the implied warranties of mechantability or fitness for a particular purpose, or noninfringement. This Agreement is confidential between Purchaser and KONE and shall not be distributed to third parties. VENUE The Purchaser does hereby agree that the exclusive venue for any dispute between the parties shall be in the County of Riverside, State of California. Palm Springs International Airport Rev.4 9I05/08 Page 7 of n� Contract Information Customer Contact KOINE Contact - KONE Account Representative servicetocation Hal Benington Palm Springs International Airport `Telephone Number Service Agreement Number C951-682-5305 (Fax Number !Agreement Effective Date 951-682 4001 01/0112 0 1 3 ! E-Mail Address Contact Person harold.benington@kone.com Steve Bowser KONE Service Manager Telephone Number Andrew Panagopoulos 760-318 0359 24 Hour Call Center Fax Number 877-276-8691 760-318-3815 Website Address Email Address www.kone.com . .... Purchaser (Equipment Owner) ACCEPTANCE The parties-to-the sem"agreement agree to Address the conditions contained herein: City of Palm Springs 3400 East Tahquitz Canyon Way Signed for and on behalf of City of Palm Springs PO Box2743 Palm Springs, CA 92263 Contact Person (Signature) i Steve Bowser Telephone Number I 7604W"359 (Print Name) Fax Number j 760-318-3815 II Email Address (Print Title) Date:—1 1 Respectfully submitted, KONE Inc. f) (Submitted By) Hal Beningtoon�� i (Approved By) Authorized Representative i i Date: Patin Springs International Airport Rev.4 9/05/08 Page 8 of 8 .1 � 81.9 j Hilt Its -tit I " I nj 0 jm:::� y , Baba p