REPORT TO COUNCIL
SUBJECT
Title
Action on Purchase Orders with Pivot Interiors, Inc. and Other Suppliers/Authorized Dealers for the Purchase of and Installation of Cubicles, Office Furniture and Related Products and Services at City Facilities
Report
COUNCIL PILLAR
Manage Strategically Our Workplace Capacity and Resources
BACKGROUND
Silicon Valley Power (SVP) operates from several locations, including a leased facility at 881 Martin Avenue, the Electric Corporation Yard located at 1705 Martin Avenue, the Donald Von Raesfeld (DVR) power plant, City Hall, and other plant locations and substations. Due to significant growth at SVP, there is a need for additional cubicles, workstations, and office furniture. Layouts may need adjustments to improve productivity and employee ergonomics and new furniture may be required for tasks such as reviewing and storing engineering drawings or storing employee uniforms. In addition, SVP may need to acquire additional office space in the future.
DISCUSSION
The recommendations in this report to use cooperative purchasing agreements are made pursuant to City Code Section 2.105.270(c), which states that the City may, without observing formal bidding requirements, “contract with a vendor under a contract awarded using preestablished cooperative purchasing agreements, when such agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bid process.” There are several cooperative purchasing organizations, such as OMNIA Partners, Sourcewell, and National Cooperative Purchasing Alliance (NCPA), which bring together cooperative purchasing contracts for government agencies by working with public lead agencies in conducting the competitive solicitation process, including evaluation and award. Cooperative purchasing agreements combine procurement requirements and purchasing power of several public agencies. The City benefits from these agreements through economies of scale based on aggregate spending and the convenience of a contract that has already been advertised and publicly competed.
As of the date of this report, staff have identified cooperative purchasing agreements with OMNIA Partners that were competitively solicited and awarded by public lead agencies, as listed in Table 1. In accordance with section 2.105.270(c) of the City Code, the Purchasing Division Manager has determined that the competitive bid process resulting in the agreements with Miller Knoll and Workrite Ergonomics, LLC listed in Table 1 meet or exceed the City’s competitive bid process. Under these cooperative purchasing agreements, quotes, delivery, and/or any installation may be performed by the suppliers’ authorized representatives (dealer network). That is, Purchase Orders may be issued directly to the suppliers or their authorized dealers under the terms and conditions established in the respective master agreements. In addition, the discounts off manufacturers’ list prices can vary. As such, staff evaluates the available cooperative purchasing agreements and determines the best value to the City. Pivot is an authorized local dealer for the MillerKnoll and Workrite Ergonomic products.
Table 1
|
Public Agency |
Supplier (Pivot) |
% Discount off List Price |
Term |
|
City of Charlotte, North Carolina / Contract # 2020000622 |
MillerKnoll |
35% - 68% |
1/1/2020 - 12/31/2024 with options to renew through 12/31/2026 |
|
Region 4 ESC - Texas Contract # R2210-05 |
Workrite Ergonomics, LLC |
Up to 50% |
01/01/2023 - 12/31/2025 with options to renew through 12/31/2027 |
|
University of California Contract # 2019.001890 |
MillerKnoll |
33% - 75% |
5/28/2020 - 4/30/2027 with options to renew through 4/30/2029 |
Staff has authorized Purchase Order(s) with Pivot Interiors, Inc. (Pivot) in the amount of $242,819 for the immediate purchase and installation of cubicles, office furniture and related products utilizing the cooperative purchasing agreements listed above and within the staff authorization level.
As mentioned above, there are several cooperative purchasing agreements that are available to the City. There are current needs for modified or new furniture at both SVP offices at 801 Martin Avenue (new cubicles and desk lifts) and SVP offices at the City’s yard (furnishing new lab/office spaces and modifying existing cubicles). In addition, approximately $100,000 is included for any other City needs (to be funded by other City-funds). Therefore, staff further requests approval to purchase additional cubicles, office furniture, and related products from Pivot and/or other suppliers through available cooperative purchasing agreements, subject to the review and approval of the Purchasing Division Manager to ensure that they comply with the City Code. The staff is requesting approval to issue Purchase Orders with a total aggregate maximum compensation of $600,000 to support anticipated needs. It is anticipated that a future City Council action will be needed for additional funds when SVP relocates to a new office space when its current lease expires in 2025.
Where applicable, the vendors will perform services subject to prevailing wage requirements.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15301 (Class 1 - Existing Facilities) of Title 14 of the California Code of Regulations as the proposed purchases involve interior alterations to existing structures.
FISCAL IMPACT
Funds are available in the Electric Utility Operating Fund budget for FY 2024/25. Funds for future years will be requested through the normal budget process.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 of Title 14 of the California Code of Regulations;
2. Authorize the City Manager or designee to execute Purchase Orders and related documents with Pivot Interiors, Inc., other suppliers, and/or their authorized dealers for the purchase and installation of office cubicles and furniture under cooperative purchasing agreements with a total aggregate maximum compensation of $600,000, subject to (1) Purchasing Division Manager’s determination pursuant to Section 2.105.270(c) of the Santa Clara City Code, (2) the appropriation of funds, and (3) approval as to form by the City Attorney; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Purchase Orders in alignment with the associated cooperative purchase agreements.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager