HomeMy WebLinkAboutStaff Report 3764
City of Palo Alto (ID # 3764)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/20/2013
City of Palo Alto Page 1
Summary Title: Approval to Increase PO with One Workplace
Title: Approval of Change to Purchase Order for One Workplace to Add
$89,000 of Storage Costs for a Total Amount Not to Exceed $792,794 for
Standard Furniture and Associated Storage Costs for the Mitchell Park Library
and Community Center
From: City Manager
Lead Department: Library
Recommendation
Staff recommends that Council authorize the City Manager or designee to approve an $89,000
increase to Purchase Order 4513000340 to One Workplace for storage of standard furniture for
the Mitchell Park Library and Community Center building project for a total not to exceed
$792,794.
Background
The Mitchell Park Library and Community Center, located at 3700 Middlefield Road, is a joint
facility funded by the November 2008 voter-approved Measure N. The library will be a two-
story 41,000 square foot facility adjacent to the 15,000 square foot single story community
center, requiring the provision and installation of over 1,163 pieces of 85 different furniture bid
items.
A request for quotation for the provision of the selected standard furniture was issued in
November 2011. Three proposals were received and evaluated, and in February 2012 staff
recommended that Council approve and authorize the City Manager or designee to execute a
purchase order with One Workplace (OWP) in the amount of $632,148 for standard furniture
for the joint facility. At that time the facility was expected to open to the public in fall 2012.
In May 2012, it became clear to City staff the project would be delayed and notified OWP to
hold off placing the order for the standard furniture based on the analysis it would be more
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cost effective to pay material price increases to purchase the furniture at a later date than to
order the furniture and pay storage costs until the building was ready for furniture installation.
In October 2012 Council approved a purchase order addition of $38,646 to cover price
increases due to the delay and a $33,000 for contingency for a total not to exceed $703,794. At
that time, the facility was expected to be completed in spring 2013.
Discussion
In November 2012, OWP completed ordering of furniture from approximately 25 different
vendors, in anticipation of a February 2013 delivery and installation date per the Flintco
construction schedule at that time. In December 2012 the construction schedule was extended
by six weeks and the City asked OWP to investigate options and costs of both a delay in
fabrication of the furniture and furniture storage until the project was ready for delivery and
installation. Five of the 25 vendors had already started manufacturing and were directed to
finish and ship their product to OWP for storage at OWP’s warehouse. An additional vendor
was to complete manufacturing and store the product at its own warehouse. The
approximately 19 remaining vendors were able to delay manufacturing dates to mid-February
in anticipation of a mid-March delivery without any cost impact. In March 2013, the building
construction schedule was again revised. The facility is now expected to open to the public in
fall 2013. To respond to changing construction timelines with as much flexibility as possible,
the City asked OWP for a price quote on both a monthly and weekly basis for the cost to store
the furniture until October 2013. The storage costs are $8,385 per month. Additional costs
were incurred in March when OWP moved offices and warehouses from Milpitas to Santa Clara
and had to make special arrangements to transfer the finished product from six vendors to
trailers outside the new office.
Resource Impact
Measure N bond funds already budgeted in a Mitchell Park capital project will be used to pay
for the storage costs associated with construction. There is no impact on the General Fund.
Environmental Review
This is not a project requiring environmental review under the California Environmental Quality
Act (CEQA).
Attachments:
Attachment A: One Workplace Quotations April 2013 (PDF)