HomeMy WebLinkAbout2000-02-08 - AGENDA REPORTS - TENANT IMPROV PURCH FURN (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: February 8, 2000
City Manager Approval:
Item to be presented by:
SUBJECT: SANTA CLARITA CITY HALL SECOND FLOOR TENANT
IMPROVEMENT — APPROVAL FOR PURCHASE OF MODULAR
FURNITURE — PROJECT NO. F1003
DEPARTMENT: Transportation & Engineering Services
City Council approve an expenditure in an amount not to exceed $150,000.00 for the
City Hall Second Floor Tenant Improvement project to Office Depot. City Council authorize
the City Manager or designee to execute all documents, subject to City Attorney approval.
Staff will be making the purchase utilizing a pre-existing Los Angeles County contract for
modular furniture that is now in force with the supplier.
Phase II of City Hall's Five -Year Space Plan specified the relocation of the Administrative
Services/Finance Department from the third floor to the second floor. The plan then
detailed the expansion of the Transportation & Engineering Services Department (T&ES),
as well as the Planning Division, into the area vacated by Administrative Services/Finance.
This project completes the first half of Phase II.
On January 25, 2000, City Council directed staff to look into the ability of local vendors to
supply modular office furniture, and return to Council with an answer. Following Council's
direction, staff has determined that there are no local vendors within Santa Clarita that.
provide Steel Case modular furniture. However, there are vendors that provide other
brands. The City currently utilizes Steel Case modular furniture throughout the majority
of its offices. To allow for the flexibility to reconfigure office space as needed for our over-
growing staff without having to purchase new furniture, consistency is required within the
type of modular office furniture used. Given this consideration, Steel Case modular
furniture was specified for this expansion. Therefore, staff is proposing Office Depot
Business Services in San Fernando, for the subject purchase.
On July 11, 1995, City Council authorized staff to take advantage of "piggybacking" or
volume discount opportunities when found to be in the best interest of the City. This type
of arrangement allows smaller agencies to realize the economies of scale and cost savings
typically achieved through volume buying. The primary intent of the City's policy of
CITY HALL SECOND FLOOR TENANT IMPROVEMENT
February 8, 2000 - Page 2
competitive bidding is to ensure the City receives the best value for its money. Los Angeles
County's competitively awarded contract currently in force with Office Depot for modular
furniture achieves a 54 percent cost savings from the manufacturer on the basis of
purchases exceeding $1 million. By utilizing this Los Angeles County contract, a savings of
up to $175,000.00 is realized by the City on this purchase. The City's purchase volume
alone would not generate such a significant discount rate.
Once the construction of tenant improvements is complete, the modular furniture will be
installed to define workspaces. Due to the needs of additional staffing, additional modular
furniture is required. The existing furniture on the third floor will eventually be
reconfigured to accommodate the expanding needs of T&ES and the Planning Division.
Staff recommends that the City Council approve this expenditure utilizing the pre-existing
Los Angeles County contract with Office Depot in an amount not to exceed $150,000.00.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Funds for this project have been approved and budgeted in the General Fund for Fiscal
Year 1999-2000. Currently, $412,960.00 is available in Account No. F1003001/8001, which
has been appropriated for all costs associated with the second floor tenant improvements,
including the future purchase of furniture, all phone and data cabling expenses, and
moving expenses. To date, a total of $193,982.00 has been encumbered for construction of
the project. A balance of $218,978.00 remains to cover the modular furniture purchase and
the remaining expenses.
ATTACHMENT
None.
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