REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of Purchase Orders to Pivot Interiors in the Amount of $647,023.38 for Lakewood Branch Library and Learning Center Furniture (F26-254)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of purchase orders to Pivot Interiors of Santa Clara in a not-to-exceed amount of $647,023.38 for the purchase, delivery, and installation of furniture for the Lakewood Branch Library and Learning Center. Staff also requests approval of a 10% contingency in the amount of $64,702 to account for potential storage needs and any unforeseen cost changes related to supply chain impacts or installation labor.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitations of bids or proposals would be impractical, unavailing, or impossible.
Pursuant to Section 2.08.220(a), the purchasing officer may authorize the City’s participation with one or more other 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 Section 2.08.060.
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 design contract with Anderson Brule Architects (“ABA”) for the Lakewood Branch Library and Learning Center project (“Lakewood Library Project”) included a task for interior design services. (RTC No. 20-0377.) The design team and City staff sought furniture from vendors with current contracts through OMNIA Partners, a national cooperative procurement organization that offers publicly solicited contracts to government entities nationwide. After reviewing several options and evaluating samples, staff selected MillerKnoll as the primary furniture vendor based on project requirements, furniture selection, and quality.
Subsequently, Pivot Interiors, an authorized dealer for MillerKnoll, was selected to further develop the furniture design package for the new building and to create shop drawings for custom pieces, such as the circulation desk.
In 2021 and 2022, contracts were issued to Pivot Interiors, under either the City Manager’s authority or Council’s authority (RTC No. 22-0366), to provide workstations, office furniture, and ancillary furniture and chairs for the DPS Emergency Operation Center (EOC) and for furniture for the new City Hall building through a national cooperative contract with OMNIA Partners. As a result of these recent contracts, City staff is familiar with Pivot Interiors and satisfied with the quality and durability of the MillerKnoll furniture in use at these facilities.
The Pivot Interiors team worked with ABA and City staff to finalize the selection of furniture pieces, materials, and finishes for the Lakewood Library Project. The furniture selection process involved viewing samples of furniture features, fabric finishes, and furniture style for staff work areas, public spaces, conference rooms, school district partner community rooms, the children’s library, the teen space, and other public interior seating areas. Staff from the Library and Recreation Services Department were involved throughout the process to ensure that the furniture selections reflect the project's vision and comply with the City’s goals for the facility's operation. Pivot Interiors then finalized their portion of the furniture package, and shop drawings for the circulation desk were provided for final staff review and approval.
This contract with Pivot Interiors includes furniture items from nine (9) OMNIA Partners’ cooperative contracts (see Attachments 1-9 to the report). While MillerKnoll is the primary furniture vendor, additional vendors were required since the cooperative contract with MillerKnoll, dba Herman Miller, Inc., could not fulfill all project requirements. The OMNIA Partners cooperative contracts provided an initial discount on a majority of the selected furniture. During negotiations for the EOC and City Hall furniture contracts, staff was able to secure deeper discounts than what was listed within the cooperative contracts due to the volume of furniture being purchased. Pivot Interiors has agreed to extend the same discounts for the current contract for the Lakewood Library Project.
In addition, the vendor has extended the same pricing discount to furniture items selected but not listed in the cooperative contracts (see Attachment 11 to the report). These purchases are exempt from competitive bidding pursuant to SMC Section 2.08.070(b)(3) which authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitations of bids or proposals would be impractical, as it would be impractical to coordinate delivery of these furniture items from multiple vendors.
Staff recommends issuing a purchase agreement to Pivot Interiors in a not-to-exceed amount of $647,023.38. These costs include the furniture, shipping, delivery and installation, management services and taxes. Staff also requests a 10% contingency of $64,702 for the agreement to account for potential product storage costs (if necessary) and any changes due to supply chain issues or installation labor rates.
FISCAL IMPACT
The funding for the fixtures, furniture and equipment (FF&E) is available in Fund 3101 - Capital Projects Fund - General Fund Assets under Project 830600 - Lakewood Branch Library Facility (Attachment 13 to the Report). The funding for the Lakewood Branch Library and Learning Center comes, in part, from a donation from the Friends of the Sunnyvale Public Library as well as the General Fund, the Park Dedication Fund, and contributions from the two school district partners.
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 purchase orders to Pivot Interiors in a not-to-exceed amount of $647,023.38 for Lakewood Branch Library and Learning Center furniture; and
- Approve a 10% contingency in the amount of $64,702 for unexpected furniture needs.
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, Finance
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Omnia Partners Contract - MillerKnoll
2. Omnia Partners Contract - Arcadia
3. Omnia Partners Contract - Davis
4. Omnia Partners Contract - Exemplis
5. Omnia Partners Contract - Humanscale
6. Omnia Partners Contract - Leland
7. Omnia Partners Contract - OFS
8. Omnia Partners Contract - Versteel
9. Omnia Partners Contract - Watson
10. Pivot Interiors Quote - Omnia Partners Items
11. Pivot Interiors Quote - Non-Contract Items
12. Lakewood Library Furniture Package
13. Project 830600 - Lakewood Branch Library Facility