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7.1.D. - Page 2 <br /> Staff is confident in KONE's ability to provide preventative maintenance and necessary <br /> repairs as defined by the manufacturers. Staff recommends awarding the contract to <br /> KONE Inc. <br /> ALTERNATIVES <br /> Council may elect not to approve the agreement. This will result in having to perform <br /> elevator maintenance work on an on-call, time and material basis, which is significantly <br /> more expensive than the proposed prices presented in the RFP process. <br /> FISCAL IMPACT <br /> The cost of the agreement for its initial three-year term is $86,400. The total cost if <br /> extended for two additional years would be $144,000. Funds for elevator maintenance <br /> and services are budgeted in the Facilities Division's budget. <br /> ENVIRONMENTAL REVIEW <br /> The action proposed in this report is Categorically Exempt pursuant to Section 15301 <br /> (Class 1) of the California Environmental Quality Act (CEQA) Guidelines. Class 1, <br /> "Existing Facilities", which allows for maintenance and repair of existing facilities <br /> involving negligible or no expansion of use of the existing facilities. <br /> TERENCE KYAW <br /> ASSISTANT PUBLIC WORKS DIRECTOR <br /> FOR RAMANA CHINNAKOTLA <br /> PUBLIC WORKS DIRECTOR <br /> FOR ROBERT B. BELL <br /> CITY MANAGER <br /> ATTACHMENTS <br /> 1. General Services Agreement (KONE Inc.) <br />