REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to Bibliotheca ITG in an Amount Not-to-Exceed $635,106.11 for a Flex Automated Materials Handling System and Nine Additional Years of Support and Maintenance for the Main Library (F27-018)
Report
REPORT IN BRIEF
Approval is requested to issue a purchase order to Bibliotheca ITG of Norcross, Georgia in the amount not to exceed $635,106.11 for the purchase of Flex automatic materials handling equipment and nine years of support and maintenance for the Sunnyvale Main Library. Approval is also requested for a 10% contingency in the amount of $63,510.
EXISTING POLICY
Pursuant to Chapter 2.08, City Council approval is required for contracts exceeding $250,000.
Further, SMC Section 2.08.220(a) authorizes the Purchasing Officer to direct the City’s participation with one or more governmental, public, or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids using methods similar to those set forth in SMC Section 2.08.060.
This purchase supports the goal of Community Character, CC-7: Appropriate Library Facilities. The Automatic Material Handlers are essential operational infrastructure for the Sunnyvale Main Library, enabling efficient check-in, sorting, and processing of returned library materials at a facility that will serve thousands of Sunnyvale residents.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Automated Materials Handling System (AMHS) at the Sunnyvale Main Library has played a central role in supporting the circulation of a high-volume of materials since its installation in 2010 and subsequent replacement in 2015. The current AMHS equipment, provided by Bibliotheca, was procured through a competitive Request for Proposals (RFP) process and has been in continuous operation for over a decade. The AMHS serves as the primary mechanism for automated check-in and sorting of returned library materials.
Over the past several years, the existing AMHS has reached the end of its expected service life, which was established as being ten years under the City’s equipment lifecycle management practices, and manufacturer support and the availability of replacement parts have been discontinued. This status has resulted in increased maintenance needs, longer repair times, and a heightened risk of service interruptions. The City’s standard practice is to proactively replace critical technology infrastructure at the end of its supported lifecycle to ensure operational continuity and minimize the risk of system failure.
The proposed procurement of a new FLX Automated Materials Handling System and an additional nine-year support and maintenance agreement with Bibliotheca is designed to ensure uninterrupted library operations. The replacement aligns with the City’s established technology refresh cycles and capital asset management policies, which prioritize timely renewal of essential systems to support public service delivery. The City proposes to purchase the equipment and additional nine years of support and maintenance from Bibliotheca through Equalis Group Contract No. COG-2181A. The contract was competitively solicited by the Cooperative Council of Governments (CCOG), on behalf of Equalis Group, through RFP No. COG-2181 for Library Operations and Management Solutions and awarded to Bibliotheca. The CCOG/Equalis master agreement serves as the cooperative purchasing vehicle under which participating public agencies may purchase products and services from Bibliotheca. The City's purchase order will establish the City's purchase of the equipment and associated support and maintenance
FISCAL IMPACT
Budget for Automatic Material Handling Equipment and nine additional years of support and maintenance in the amount of $635,106.11 is appropriated in Fund 7027 - Technology and Communications Fund as follows:
• The equipment replacement cost in the amount of $520,150 is appropriated under Project P21605 - Office Equipment, which includes funding for library technology infrastructure replacements.
• The cost of ongoing maintenance in the amount of $124,956.11 is accounted for in the 20-year resource allocation plan under Program 15204 - IT Infrastructure Services.
Information Technology services are funded through transfers from other funds via internal service charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a purchase order to Bibliotheca for the purchase of Flex Automated Materials Handling System and 9 additional years of support and maintenance for the Main Library in the amount not to exceed $635,106.11;
- Authorize the City Manager to execute the Purchase Order when all necessary conditions have been met; and
- Approve a 10% contingency in the amount of $63,510.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Cooperative Council of Governments (CCOG) Agreement
2. Bibliotheca Quote - QUO-US22895