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HomeMy WebLinkAboutStaff Report 2605-6348CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 24, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     6.Approval of a Purchase Order with Pivot Interiors Inc. in the Amount of $441,056 for Furniture for the New Laboratory and Environmental Services Building Project (WQ- 14002); CEQA Status – Not a Project 9 9 6 5 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: August 24, 2026 Report #:2605-6348 TITLE Approval of a Purchase Order with Pivot Interiors Inc. in the Amount of $441,056 for Furniture for the New Laboratory and Environmental Services Building Project (WQ-14002); CEQA Status – Not a Project RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute a Purchase Order with Pivot Interiors, Inc. for the New Laboratory and Environmental Services Building Project (WQ-14002) utilizing a cooperative purchase agreement via OMNIA, in an amount not to exceed $441,056. This total includes $400,960 for basic materials and services and a 10% contingency of $40,096 to address minor scope adjustments, installation modifications, and potential storage costs. BACKGROUND On May 19, 2025, the Council approved a lease at 2470 Embarcadero Way for office and laboratory space.1 The building will provide modern laboratory and engineering group workspaces directly across the street from the Regional Water Quality Control Plant (RWQCP). Staff completed the design of the tenant improvements and began construction in mid-2026, with occupancy expected by late 2026 / early 2027. During design, staff worked with project stakeholders to identify furniture, storage, and workspace requirements necessary to support laboratory operations, engineering functions, administrative activities, collaboration spaces, and records management. Following substantial completion, staff will complete furniture installation, IT and laboratory equipment commissioning, and relocation of staff. The move-in phase is expected to continue up to four months after substantial completion. 1 City Council, May 19, 2025; Agenda Item #9; SR #2501-4063 9 9 6 5 ANALYSIS The furniture package was developed to furnish offices, conference rooms, huddle rooms, engineering workstations, hoteling stations, laboratory support areas, locker areas, document storage rooms, and shared collaboration spaces throughout the facility. Furniture finishes and materials were selected to provide durability, flexibility, and ease of maintenance while supporting the long-term operational needs of the RWQCP. The proposed purchase from Pivot Interiors, Inc. (Pivot) includes Herman Miller systems furniture and related furnishings, seating, storage units, conference room furniture, and height- adjustable workstations. Based on the furniture plan, the City will be purchasing approximately: 5 furnished private offices 10 office cubicles and hoteling workstations 3 laboratory sit/stand workstations 20 staff lockers 3 meeting tables 33 chairs for conference rooms, collaboration areas, and offices 22 document storage bookcases Multiple storage cabinets, pedestals, and communal storage units Technology accessories including table power modules and workstation power connections Per Palo Alto Municipal Code Section 2.30.360(j), the City may utilize cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. OMNIA Partners (OMNIA) provides discounts for government entities purchasing furniture from brands such as Herman Miller. The cooperative purchasing agreement contracts were competitively solicited and publicly awarded through the cooperating purchasing organizations and the purchase orders are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. Staff has determined that use of the cooperative purchasing agreement is consistent with City procurement requirements and represents the best value for the City. The proposed purchase order includes material costs for furniture and accessories, project management, technical design services, delivery, and installation. The proposed purchase order components are summarized below: 9 9 6 5 Table 1: Purchase Order Summary Item Amount Amount Furniture and Accessories $350,705 Project Management & Technical Design Services $18,366 Sales Tax (estimated)$31,889 10% Contingency $40,096 Total $441,056 The 10% contingency is recommended to address minor scope adjustments, unforeseen installation modifications, and potential storage costs should project completion or occupancy schedules change. FISCAL/RESOURCE IMPACT The RWQCP treats combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and East Palo Alto Sanitary District (partners). This project is funded through the RWQCP partner-funded structure, with costs shared by the City and its regional partners consistent with established partner agreements and related amendments. Palo Alto’s share of this project is approximately 38%, with the remaining 62% funded by the partners based on wastewater flows and strength contributions. Funding for the purchase order is available in the New Laboratory and Environmental Services Building Project (WQ-14002). Any additional funding needed in subsequent fiscal years (e.g. future maintenance and/or replacement costs) would be subject to the City’s standard budget appropriation process. STAKEHOLDER ENGAGEMENT The five partner agencies are regularly updated on both the need for and the progress of RWQCP projects. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff. With respect to Palo Alto itself, the City's budget process provides the primary opportunity for public review of capital projects and associated rate impacts. For this purchase order, staff coordinated furniture planning and workspace layouts with RWQCP Laboratory and Engineering Group representatives to ensure the furnishings meet operational and functional requirements. ENVIRONMENTAL REVIEW The furniture procurement is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(2), Continuing administrative or maintenance activities. ATTACHMENTS None 9 9 6 5 APPROVED BY: