One of the items included in the Airport's annual operating budget is a maintenance agreement for the Airport's elevators and escalators.  The Billings Logan International Airport Terminal Building has eight elevators, two escalators, and one lift, and the Operations Building has one lift. Due to the specialized nature of this equipment, it is more cost effective for the Airport to contract for the monthly service and repair work.  Specifically, this Three Year Maintenance Service Agreement will require the contractor to provide all of the necessary equipment, tools, and personnel to conduct systematic inspections, adjustments, and maintenance for all of the major components of the elevators/escalators.  This Agreement will also ensure compliance with all State of Montana Operating Certificate regulations for the elevators/escalators. 

This Service Agreement was advertised in the Billings Times on August 25, September 1 and 8, 2011, and on the City's Web Site.  One bid was received on September 13, 2011 from ThyssenKrupp Elevator for the amount of $1,699 per month for the existing elevator and escalators and an additional $99.87 per month starting in 2013 for the new elevator being installed in the Airport Business Park office building, IP-9.

The City Council may:

• Approve the award of the 3-Year Elevator/Escalator Maintenance Service Agreement; or
• Decline to approve the the award of the 3-Year Elevator/Escalator Maintenance Service Agreement, reject the bid, and not complete this Agreement at this time.

The total annual cost of this Service Agreement will be $20,388 for the first twelve months of the Agreement, and then $21,586.44 for the remaining two years once the new IP-9 elevator is added to the Agreement.  The source of funding for this Agreement is the Airport's annual operating budget.

Staff recommends that the City Council approve the award of the Three Year Elevator/Escalator Maintenance Service Agreement for Billings Logan International Airport with the sole bidder, ThyssenKrupp Elevator.