TAMRMS#: B06
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Sole Source Award Library Elevator Replacement
Presented by: Anthony Lake, Director, Public Works.
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RECOMMENDATION(S)
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That a Sole Source contract be awarded to Edmonton Elevator Ltd. in the amount of $119,681.00 to replace the St Albert Place Library Elevator.
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PURPOSE OF REPORT
This report is intended to inform Council of the plan to complete the replacement of the last elevator of three elevators within St Albert Place. This Sole Source award will ensure that the third elevator will be a proprietary match to the two main elevators to provide common functionality for operations staff, facility staff and public users.
COUNCIL DIRECTION
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BACKGROUND AND DISCUSSION
The Library elevator was installed in 1982, when replaced in 2017 it will be 35 years old. Typical life expectancy of an elevator of this type is 25 years. There is a concern that the below ground hydraulic cylinders have corroded and may fail. There is no way to determine the state of the cylinder without removing it from the ground. The secondary concern is that there are significant challenges over obsolescence and the availability of replacement parts.
The plan to replace the elevators in St. Albert Place began with Phase 1 in 2015 and in 2016 both the main elevators were completely modernized. Phase 2 is the replacement of the Library elevator which is scheduled for 2017.
In 2015 Edmonton Elevator was the successful bidder from the tender process to replace the two main elevators. Both elevators were installed within budget and schedule.
City Administrative Policy A-PUR-01 Purchasing states that the City may award a sole source contract based on the need to maintain proprietary compatibility with existing equipment, systems or services.
The 2017 price for the Library elevator is $119,681.00. This sum represents 13% less than the second place bid from the 2015 tender process.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Public Works engaged the services of a professional elevator consultant in 2014 to investigate the state of the elevators and assist in confirming need for replacement. Consultation on process and approval of recommendation received from purchasing department.
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
The total cost of the contract is $119,681. Funding is partially derived from the remaining carry forward budget in the 2015 capital project 415810 in the amount of $68,000. The balance of funding will be a portion of the 2017 SAP Building Envelope Replacement Plan in the amount of $52,000.
Legal / Risk:
There is some risk as regards the safety of a 34 year old hydraulic elevator. Some failures of this type of elevator have occured in other jurisdictions. In response, the elevator industry has advised building owners to take steps to replace aging below ground hydraulic cylinders.
Program or Service:
This is a demonstration of the City’s commitment to an asset management strategy with timely replacement of aging assets to keep assets in an acceptable condition.
Organizational:
A sole source award will ensure proprietary matching elevators within one building, resulting in familiarity of use and savings in service contracts and replacement parts.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The City could publicly tender the 2017 replacement. However, due to proprietary compatibility, it could create challenges if a different vendor was selected, resulting in higher operating costs in the future. In addition, the results of the 2015 tender are public knowledge.
STRATEGIC CONNECTIONS
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Report Date: January 23, 2017
Author(s): Chris Richards
Committee/Department: Public Works
General Manager: Glenn Tompolski
City Manager: Kevin Scoble