Report Prepared by: Venus Rodriguez, Finance Officer
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements, Approving a Supplies and Service Agreement with Ward Office Furniture in the Amount of $65,920.87 Plus 10% Contingency, and Approving a Professional Service Agreement with Kelly Timmins Corporate Services for Delivery and Installation in the Amount of $23,120 Plus 15% Contingency
REPORT IN BRIEF
Considers waiving of competitive bidding requirements, approving a Supplies and Service agreement with Ward Office Furniture and approving a Professional Service agreement with Kelly Timmins Corporate Services
RECOMMENDATION
City Council - Adopt a motion:
A. Authorizing to waive competitive bidding requirements due to single sourcing as permitted by Merced Municipal Code Section 3.04.210 for the purchase of office furniture; and,
B. Approving the Supplies and Services agreement with Ward Office Furniture in the amount of $65,920.87 plus 10% contingency for the purchase of office furniture; and,
C. Approving the Professional Services agreement with Kelly Timmins Corporate Services in the amount of $23,120 plus 10% contingency for delivery and installation of office furniture; and,
D. Authorizing the City Manager or Deputy City Manager to execute any necessary contracts or documents and the Finance Officer to make any necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions outlined by Council; or,
3. Continue to a future meeting; or,
4. Deny.
AUTHORITY
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget.
DISCUSSION
The Finance Department includes 24 full-time and currently 6 part-time positions. Three make up the purchasing division and offices are located in Applegate Park. Three make up the payroll division and are located in City Hall but in the Human Resources area. This was determined because as the department grew spacing was limited and they work very closely with Human Resources. The remaining 24 employees are located on the first floor of City Hall designated as the Finance Department.
The City of Merced installed cubicles throughout City Hall over twenty years ago. Over the years, it has become increasingly difficult to find replacement pieces as cubicle parts break due to wear and tear. The company who initially provided the cubicles no longer works with the original vendor. As other departments restructure their areas parts are kept as replacement pieces for other areas as items fall apart.
Due to the difficulty in locating replacement cubicle parts, continuous electrical glitches which impact productivity, and inefficiencies in work-space which makes working together a challenge, the department has been working on the best options to remodel and upgrade office furniture and use of space. Upgrades to the electrical is also part of the project but will likely be handled internally by the Facilities Division.
The Finance Department initially requested quotes from two different vendors. Ward Office Furniture was the best priced and was able to most accommodate our needs in a most cohesive manner. Although the replacement furniture is not cubicles, they do create modular units. Due to the COVID-19 pandemic, the project was put on hold for a year. We recently requested updated quotes and revised the request to include 14” glass pieces that would be added to the top of office furniture separating the work-stations in order to continue to mitigate the spread of COVID-19. Due to spacing and some of the configuration of the office, not all work-stations will have this piece but we included it where we could. The cost to replace 21 works-stations through Wards Office Furniture with new office furniture is $65,920.87. In addition, the cost to deliver and install the furniture over two weekends by Kelly Timmins Corporate Services is $23,120. This has been determined to be a prevailing wage project.
The recommendation is requesting the City Council to authorize waiving the competitive bidding requirements in order to single source the purchase of office furniture through Wards Office Furniture since it exceeds the threshold of $33,000 which is allowed by Merced Municipal Code Section 3.04.210. Single source purchases are allowed for standardization of specific equipment, supplies, or for reasons of equipment compatibility. There are multiple reasons to request single source. One, there are several different types of office furniture being purchased. Wards can standardize so that they all function cohesively as modular units (see attached renderings). Two, if parts break, they are more likely to be able to provide replacement parts since it is all purchased through the same vendor. Three, there is some furniture that needs to be customized due to workers compensation ergonomic determinations and for continuing to mitigate the spread of COVID-19. Wards can provide the customized furniture.
IMPACT ON CITY RESOURCES
Funding is available within Fiscal Year 2021-22 budget in the General Fund, Finance Division 001-0701-617-65-00 Project #118047 Finance Remodel. The cost of the 14” glass is approximately $4,518. Staff will include this for reimbursement from the ARPA funds.
ATTACHMENTS
1. Agreement with Wards Office Furniture
2. Agreement with Kelly Timmins Corporate Services
3. Example of Modular Units structure