REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: BUD TICKEL, Assistant Director Department of Public Utilities - Water Division MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Approve a Cooperative Purchase Agreement with TK Elevator Corporation, in the amount of $160,258, to modernize the passenger elevator at the Department of Public Utilities Operations and Maintenance Facility located at 1625 G Street (Council District 3). ..Body RECOMMENDATION Staff recommends that Council approve a Cooperative Purchase Agreement with TK Elevator Corporation, a Delaware Company (TKE), in the amount of $160,258 under the Sourcewell August 4, 2020, Request for Proposal for the procurement of Elevators, Escalators, and Moving Walks with Related Equipment Services, and Supplies; and authorize the Purchasing Manager, or designee, to sign the contract on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) purchased the property located at 1625 G Street, for the purpose of consolidating operational and maintenance facilities, and a number of department divisions. The sole passenger elevator in the DPU Operations and Maintenance Facility (O&M Facility) was installed as part of the original construction and is now 47 years old. A modernization upgrade by TKE will provide increased durability and reliability; improved fire and life safety; reduced energy consumption, reduced operating costs, and reduced troubleshooting repair times. BACKGROUND The DPU O&M Facility was originally constructed in early 1970's. The O&M Facility is a three-story industrial building and requires the use of a passenger elevator to gain access to the second and third floors. The existing passenger elevator is 47 years old. Most elevators have an expected life cycle of about 20-25 years. TKE has been providing elevator maintenance for the Facility, but there have not been any modernizations to the equipment. While still functioning, the 47 year old elevator requires modernization improvements that will bring it to current standards. TKE surveyed the passenger elevator at the O&M Facility and provided a proposal for modernization improvements. The identified improvements include upgrades to the controllers, power unit, jack, car, hoistway, cab, intercom & phone system; as well as upgrades to the car/hall fixtures and fire service improvements. The modernization upgrades will provide increased durability and reliability; improved fire and life safety; reduced energy consumption, reduced operating costs and reduced troubleshooting repair times. The Cooperative Purchase Agreement (CPA) allows the City to piggyback off certain contracts that have already gone through a competitive bidding process. This allows the City to use their pricing and not go through the traditional Request for Qualifications/Proposals. CPA's are done for purchases with Products and Services with the majority of the spend being the Product portion of the purchase. TKE, a national corporation, is under contract with Sourcewell, a State of Minnesota local government agency and service cooperative. The City of Fresno Finance Department/Purchasing Unit (Purchasing) has arranged for the use of a CPA through Sourcewell. Staff recommends that Council authorize the Purchasing Manager, or designee, to sign a CPA with TKE, in the amount of $160,258, for the modernization of the passenger elevator at the DPU O&M Facility. City Attorney has reviewed as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this agreement for the modernization services does not qualify as a "project" for the purposes of CEQA. LOCAL PREFERENCE Local preference was not implemented because this item will be procured through a cooperative purchase agreement. FISCAL IMPACT There is no impact to the General Fund. Funds are available in the FY 2022 Capital Improvement Program budget within the DPU Operations and Maintenance Facility Fund (55003). Attachments: Attachment 1 - Passenger Elevator Upgrade Cooperative Purchase Agreement Attachment 2 - TKE Proposal DPU O&M Facility - Passenger Modernization Attachment 3 - Sourcewell - Thyssenkruup Elevator Contract