AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GRISSEL CHAVEZ
DEPUTY CITY MANAGER
THOMAS BEKELE
PUBLIC WORKS DIRECTOR
SUBJECT:
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AGREEMENTS WITH BLUESPACE INTERIORS, LLC., AND MOHAWK COMMERCIAL, INCORPORATED FOR THE PURCHASE AND INSTALLATION OF CITY HALL FURNITURE, ARCHITECTURAL WALLS, AND FLOORING
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Summary:
The recent public outreach effort associated with the Civic Center Master Plan found that the community desires to preserve City Hall as a place to conduct City business, a community gathering place, and a landmark. While the City has maximized the use of City Hall over the past few decades, certain elements have suffered from deferred maintenance. One of the key goals of the City Hall Renovation project is to significantly enhance the long-term viability of the building so it may continue serving the public for many years. The City Council recently approved a renovation budget for City Hall that will provide for the replacement of office furnishings, replace flooring, make various repairs, and create more usable space. To advance this project, staff recommends approval of agreements with Bluespace Interiors, LLC. (Bluespace) and Mohawk Commercial, Incorporated (Mohawk) for the purchase and installation of new furniture, construction of architectural walls, and installation of flooring for City Hall, in a combined amount not-to-exceed $673,479.04. The proposed improvements would create 10 additional workstations and add a conference room to the ground floor of City Hall. Subject to City Council approval, the new furniture and flooring installation would begin by fall 2024 and be completed by early 2025.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, system, and processes to increase the effectiveness and efficiency of City services.
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Recommendations:
Staff is recommending approval of agreements with:
1) Bluespace Interiors, LLC., for the purchase and installation of new furniture and architectural walls for City Hall, in an amount not to-exceed $529,474.37, in a form approved by the City Attorney, and authorize the City Manager to utilize a project contingency of up to 10% ($52,947.43) in the event of changed or unforeseen conditions, for a total budget of $582,421.80; and
2) Mohawk Commercial, Incorporated for the purchase and installation of new flooring for City Hall, in an amount not to-exceed $144,004.67, in a form approved by the City Attorney; and authorize the City Manager to utilize a project contingency of up to 10% ($14,400.46) in the event of changed or unforeseen conditions, for a total budget of $158,405.13.
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Fiscal Impact:
The cost of the proposed furniture, architectural walls, and flooring improvement is $673,479.04 (plus added contingency of $67,347.89). The FY 2023-24 City Hall Renovation Project 90.19004 budget includes an appropriation of $2,400,000, as recently approved by the City Council with the addition of a portion of the Fiscal Year 2022-2023 surplus funds. The total project budget includes the costs for furniture, painting, flooring, and various building repairs. The remaining project balance will cover the costs of improvements such as the construction of new public counters and lobby areas as well as other improvements throughout City Hall to align with current building standards.
Background:
The interior offices and flooring at City Hall require replacement, the last major renovation occurred in 1991. Most of the existing furniture and flooring in the offices and workstations are in a state of deferred maintenance. The proposed contracts are part of a broader refurbishment of City Hall aimed at modernizing office spaces with improved workstations and upgrading flooring throughout the building. Recognizing the need for improvements to City Hall, the City Council authorized funds for a refurbishment, including the purchase of new furniture, flooring replacement, and various other tenant improvements.
Analysis:
City Hall currently has 31 workstations and 2 conference rooms. To improve the long-term usability of City Hall, the proposed renovation efforts would create 10 new workstations and one additional conference room. The ground floor would have four new workstations and the basement, and second floors would each have three new workstations. Additionally, the ground floor would have a new conference room. This expansion of workspace is necessary to enhance functionality and optimize the physical layout of the space for current employees, while also accommodating for potential growth. Additionally, all existing flooring would be replaced with new carpeting in offices and conference rooms, and vinyl tile planks for the lobbies and stairs.
Within the comprehensive City Hall renovation project, various repairs are needed for the building. Additionally, modifying and rebuilding the public counters will enhance staff’s ability to better serve the community. Staff is in the process of securing contractors for tasks such as repainting the interior walls and installing new counter walls. These steps must precede the installation of the flooring and furniture. The contracts with different vendors for these distinct tasks would involve a separate bidding process, requiring future City Council approval.
Staff recommends the proposed furnishings and flooring (as shown in the contract drawings and floor plans), based on comfort, aesthetics, and pricing. Staff also considered feedback from City Hall employees regarding the proposed redesign and finishes as part of the final product selection.
Schedule:
The City Manager’s Office and the Public Works Department will collaborate to complete the improvements with the least interruption to staff and service to the community. Staff estimates construction of the improvement project would take approximately 6 months. This timeframe is designed to ensure services to residents are not discontinued, while maintaining a safe work and visitor space during construction. The ground floor and second floor would be under construction while the basement floor remains operational. Conversely, when the basement is under reconstruction, the ground and second floors would be open.
Staff will work on providing alternative accommodation for staff during construction and communicate these changes in advance of any physical improvements. Tenant improvements are often subject to unforeseen conditions, such as abatement (hazardous material mitigation), code compliance issues, environmental mitigation, and hidden structural damage. Therefore, staff will apprise the City Council regarding impacts to staffing, project schedule, or cost due to unforeseen conditions.
Staff anticipates the new furniture and flooring installation would begin by fall 2024 and be completed by early 2025. Prior to installation, the painting of the interior walls and construction of the basement and ground floor counter walls would be completed by a separate contractor. Staff anticipates receiving bids for the additional scope of work by summer 2024.
Compliance with Purchasing Policy
Under Section 3.20.120 E of the Signal Hill Municipal Code, the City's purchasing policy allows for an exception to the purchasing policy.
There shall be no informal quote process, formal RFP or RFQ process, or formal bid process required for the purchases of goods, services, or public projects under any of the following circumstances:
Competitive Bidding Already Completed. When the city manager or city council determines that: (1) a competitive bid procedure has been conducted by another public agency, including, but not limited to, another local agency, the State through the California Multiple Award Schedule (CMAS), the federal government through the general services administration (GSA), or a joint powers agency, authority or alliance that procures competitive contracts; and (2) the price to the city is equal to or better than the price to that public agency.
Mohawk
The City is a member of Sourcewell, which is a national purchasing cooperative that offers access to competitively procured purchasing contracts to its membership resulting in lower prices due to economies of scale. Sourcewell is authorized to establish competitively awarded cooperative purchasing contracts on behalf of itself and participating agencies. Sourcewell also follows the competitive contracting law process to solicit, evaluate, and award cooperative purchasing contracts for goods and services. The City’s access to Sourcewell contracts results in time savings and ensures the City receives bids from companies that have the financial and technical resources necessary to fulfill bid requirements as well as access to competitive pricing based on nationally bid contracts.
On April 28, 2020, Mohawk was awarded contract # 080819-MCD through a Sourcewell cooperative purchasing bidding process (RFP #080819), for flooring materials with related supplies and services, with an initial expiration date of October 11, 2023. On July 25, 2023, the contract was renewed, setting a new contract expiration date of October 11, 2024. Pricing for the new furniture is based on the current Sourcewell contract pricing structure. The proposed contract with Mohawk through Sourcewell satisfies the City’s purchasing ordinance requirements.
Bluespace
The City is a member of OMNIA Partners, which is a national purchasing cooperative that offers access to competitively procured purchasing contracts to its membership resulting in lower prices due to economies of scale. OMNIA Partners is authorized to establish competitively awarded cooperative purchasing contracts on behalf of itself and its participating agencies. OMNIA also follows the competitive contracting law process to solicit, evaluate, and award cooperative purchasing contracts for goods and services. The City’s access to OMNIA contracts results in time and cost savings as these firms have the financial resources necessary to fulfill bid requirements and the City obtains access to pricing based on nationally bid contracts.
On April 28, 2020, HON was awarded contract # R191804 through an OMNIA Partners cooperative purchasing bidding process (RFP #19-18), for furniture, installation, and related services, set to expire on April 30, 2023. On October 28, 2022, the contract was issued a renewal, setting a new contract expiration date of April 30, 2024. On November 30, 2023, Teknion LLC was awarded contract #091423-TKN through a Sourcewell cooperative purchasing bidding process (RFP #091423) for furniture solutions with related accessories and services, set to expire on December 4, 2027. HON and Teknion sell their products exclusively through a national and international dealer network and Bluespace Interiors is an authorized dealer for the HON company and Teknion LLC. This company has full access to the material and special pricing under Omnia Contract No. R191804 and Sourcewell Contract 091423-TKN. Bluespace’s pricing for the new furniture and architectural wall system is based on the OMNIA Partners and Sourcewell contract pricing structure. The proposed contract with Bluespace Interiors through OMNIA Partners and Sourcewell satisfies the City’s Purchasing Ordinance requirements.
Next Steps:
Subject to City Council approval of the proposed contracts, staff would place an order for the new furniture and flooring. Due to manufacturer lead times, staff anticipates a 3-month timeframe for delivery. The product installation would begin following completion of the painting and construction of new counter walls.
Reviewed for Fiscal Impact:
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Sharon del Rosario
Attachments:
A. Agreement - Bluespace
B. Agreement - Mohawk