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HomeMy WebLinkAbout2001-02-13 - AGENDA REPORTS - CITY HALL TENANT IMPROVEMENTS (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Chris Dastd 167.1V 14 February 13, 2001 SUBJECT: SANTA CLARITA CITY HALL THIRD FLOOR TENANT IMPROVEMENT — APPROVAL FOR PURCHASE OF MODULAR FURNITURE — PROJECT No. F1003 DEPARTMENT: Field Services City Council approve an expenditure in an amount not to exceed $90,000 for the City Hall Third Floor Tenant Improvement Project to Office Depot Business Services. Funds have been budgeted in Fiscal Year 2000/2001 in Account F1003001. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND Phase II of City Hall's Five -Year Space Plan specified the relocation of the Administrative Services Department from the third floor to the second floor. The plan then detailed the expansion of the Transportation and Engineering Services Department, as well as the Planning Division, into the area vacated by the Administrative Services Department. This project completes the second half of Phase 11. 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 ever-growing staff without having to purchase new furniture, consistency is required within the type of modular office furniture used. 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 intention of the City's policy of competitive il`bDinnm `��DD Agenda Item:_, CITY HALL THIRD FLOOR TENANT IMPROVEMENT February 13, 2001— Page 2 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 $92,000 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 the Transportation and Engineering Services Department and the Planning Division. 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 2000-2001. Currently, $163,115 is available in Account No. F1003001/8001, which has been appropriated for all costs associated with the third floor tenant improvements, including the future purchase of furniture, all phone and data cabling expenses, and moving expenses. To date, a total of $228,115 has been encumbered for construction of the project. A balance of $163,115 remains to cover the modular furniture purchase and the remaining expense. ATTACHMENT None. JR:CD:ss sAsua.Davc\ARsums.da