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HomeMy WebLinkAbout10A - Furniture New City Hall & Police Station 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCil AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: June 26, 2006 10A Kelly Meyer, Asst. to the City Manager AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO THE CITY'S STANDARDIZED CONTRACT FOR THE PURCHASE AND INSTALLATION OF OFFICE FURNITURE FOR THE NEW POLICE STATION AND CITY HALL. DISCUSSION: Introduction As construction progresses on the new police station and city hall facilities, the project now must also focus on outfitting the internal systems and fixtures for the facilities. These systems include, for example, card reader and security systems, audio visual equipment, work stations and furniture, data and phone systems, and filing systems. Some of these systems, such as card reader and security, are part of the contract with Shaw Lundquist. The other systems have a budget estimate assigned in the Building Fund, but acquisition of those items is to be accomplished by City staff. These items could have been contracted through the architect, but it would have meant an added 6% to the cost estimate of the budgeted item. In the case of the furniture, fixtures and equipment budget, which is $300,000, this is a savings of $18,000. By electing to manage the acquisition of all these systems in house, the City has saves $32,700 in estimated project costs. Current Circumstances The largest system acquisition, both from a volume and budget perspective, is the acquisition of furniture and fixtures. Items attributable to this budget include not only work stations and office furniture, but also conference room tables, seating for work stations, reception areas, and the Council Chambers, appliances, a track filing system in the police department, and the architectural ceiling sails in the City Hall lobby. For the purposes of this agenda item, staff is asking the Council to consider the acquisition and installation of all furniture and seating. The furniture items can be purchased through one vendor. Items such as appliances, track filing for evidence storage in the Police Department, and ceiling sails would be acquired through different vendors. The track filing system was addressed as a consent item on this agenda. The others are likely to be considered by the Council in August. Conclusion Early on in the needs assessment for the new facilities, the architect met with individual departments on a number of occasions to identify both existing and future needs. Based upon feedback during those meetings, an overall design for the facilities emerged. A general layout of where and how departments and individual spaces would layout was identified. The layout includes standardized office sizes and components. The initial office furniture acquisition would be for existing employees. www.cityofpriorlake.com 1:\COUNCIL\AGNRPTS\2006\Furritur~8RJ952.447.4230 / Fax 952.447.4245 Chief O'Rourke and I have worked with several vendors to define which work stations are necessary immediately, to refine sizes and identify types of equipment, to review specific layouts with department heads, and to obtain pricing. At this time, staff believes it appropriate to proceed with authorization to the purchase the equipment. ISSUES: Process: With respect to furniture systems, there are several ways staff could have approached this acquisition: (1) Issue a Request for Bids, or (2) Utilize a public sector contract either through the State of Minnesota or Hennepin County Cooperative. Staff knew at the beginning of this process that the Council would expect that the City get not only the best possible price, but also quality equipment that was fitting for the facilities being constructed. We also believed that given the number of items attributed to this budget, that the budget would be tight. So, we began looking at what other cities and counties had done when they constructed new facilities. All of the cities or counties that we contacted have utilized a state or county cooperative contract for office furniture. The state has two contracts for office furniture - one for new Herman Miller products, and one for refurbished Herman Miller A02. The Hennepin County Cooperative Purchasing contract is for new All-Steel products. To double-check the "competitiveness" of the state bids, we asked various vendors to quote a "typical" private office design and a "typical" open office design. We found that while the public sector contracts were within $100 of each other, the retail vendor costs was 35% higher. Below is the breakdown: Alternative General Office Intereum Innovative Business Systems Products (Herman Furniture remanufactured AIS Miller Private $1712.00 $1878.73 $1811.89 $3000 Office (does not (does not incl. (does not (does not T ical incl. install instal incl. instal incl. instal Open $1375.00 1494.73 $1442.65 $1621.81 $2200 Office (does not incl. (incl. instam (does not incl. (does not (does not T ical install instal incl. instal incl. instal From that point, staff proceeded to work with two vendors who hold public sector cooperative contracts to make sure that we understood what was available, and got the best value within our budget. For each of the vendors selected, staff shared the overall floor plan for the facilities, identified our current and future needs, including the features and function for spaces, viewed each of the product lines, and asked each to design and quote a total package that would meet our needs. The two vendors, their products, and the public sector contract they quoted under are: Com an Hendrickson Public Sector Group Product New All-Steel Public Sector Contract Hennepin County Coo rative Purchasin A t. State of Minnesota Alternative Business Systems Refurbished Herman Miller Action Office Intereum was not included in this process because they did not provide timely information. I :\eOUNeIL \AG N R PTS\2006\F urniture2. ;Joe Innovative Furniture was not included because the costs seemed outside what the City could afford within our budget. General Office Products was evaluated but we have no verification that the City can purchase from the federal GSA contract and their proposal was not low. Products for the two vendors are shown below: Products: 1. Hendrickson Public Sector Group is proposing new All-Steel Terrace products available under the Hennepin County Cooperative Purchasing Agreement. It is a segmented stackable tile system. As indicated by its name, the framework and file cabinets are all steel. Because of the segmented nature of the product, the tiles can be more easily rearranged or replaced than monolithic panels, and are much more conducive to changing needs. 2. Alternative Business Products holds a state contract for remanufactured Herman Miller A02. They take previously used components, and refurbish them at their local production site with new paint, laminates and fabrics. The systems look like traditional work stations. Cost: Using their respective cooperative purchasing programs, we asked the two vendors for total costs including product, installation, design services, project management, delivery and sales tax. Each design is done in such a way that meets our needs, but also utilizes the respective products to be most cost-effective. When quotes were submitted by the vendors, the total package not to exceed costs were as follows: Vendor Package Price for City Hall & Police Station Hendrickson (New All-Steel) $228,871.32 Alternative Business Systems $233,000.00 (refurbished Herman Miller) Staff is recommending that we utilize the Hennepin County Cooperative Purchasing Contract through Hendrickson Public Sector Group and purchase the All-Steel Product. There are a variety of reasons in addition to cost that staff believes makes this our most prudent approach long-term, including: 1. The All-Steel product offered through Hendrickson has a long-standing reputation as being a very good quality product. Hendrickson PSG has provided its product to over 70 municipal and county public facilities. I :\eOU Nel L \AG N R PTS\2006\F urniture2. DOC 2. The lifetime warranty on the All-Steel product includes Darts and the labor to service the warranty. The bid for refurbished equipment offers only a 15 year warranty. 3. The All-Steel company has existed for 60 years, and has been a part of the Hennepin County Cooperative Purchasing Program for over 15 years. The existing discounts under the program will be available through October of 2008, with options to renew for an additional 4 year term. The longevity of this product and the cooperative purchasing agreement will ensure that it is available at a cost-effective price when we are ready to modify, add or change future work stations. 4. While staff was ready to purchase remanufactured furniture if a savings would be realized, we are able to buy brand new equipment less expensively than remanufactured. Timina: It appears that the construction of the police station is on schedule for its September 1st move in target. In order to have furniture systems ready and installers scheduled, it is important to give the vendor as much time as possible. All vendors have indicated that they can accommodate our phased move-in and meet the City's deadlines. FINANCIAL IMPACT: The Building Fund budget estimate for furniture, fixtures and equipment for the new facilities is $300,000. The total not to exceed price from Hendrickson Public Sector Group for design services, product, delivery, installation and sales tax is $228,871.32. The attached resolution requests that the bid be awarded in this amount. The resolution also requests that since there may be additional adjustments or features required as layouts are installed, that an additional $11,128.68 be allocated to allow for such contingencies. This would make the total expenditure $240,000 which is $60,000 lower than our budget. AL TERNA TIVES: 1. Motion and Second to Approve Resolution 06-XXX Authorizing the Purchase of Furniture and Fixtures for the New Police Station and City Hall Facilities. 2. Take no action and direct staff accordingly. RECOMMENDED MOTION: Alternative (1). Reviewed by: I :\eOU Nel L \AG NRPTS\2006\F urniture2. DOC WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx A RESOLUTION AUTHORIZING THE PURCHASE OF OFFICE FURNITURE THROUGH THE HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM FOR THE NEW POLICE STATION AND CITY HALL FACILITIES FROM HENDRICKSON PUBLIC SECTOR GROUP. Motion By: Second By: the construction of new Police Station and City Hall facilities is underway; and the internal systems for the project, such as furniture, phones, data, and audio visual equipment are to be solicited outside the construction or architect contracts in order to save project costs; and analysis by staff has recommended that the City would receive its best value by utilizing the discounts offered through a public sector cooperative purchasing program, and an evaluation by staff of several public sector contracts has indicated that the best product and service that would address the City's current and long-term needs is the All-Steel Terrace product offered by Hendrickson Public Sector through the Hennepin County Cooperative Purchasing program; and the Hendrickson Public Sector Group bid is the lowest bid for new furniture; and the City Council believes Hendrickson Public Sector Group and the All-Steel product is the best alternative because Hendrickson Public Sector Group offered the lowest quoted price, has extensive experience with public sector needs, and offers a lifetime warranty on product and labor to service its warranty; and the project estimate is within the budget provided for the project. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Staff is hereby authorized to purchase office furniture through the Hennepin County Cooperative Purchasing Program for the new Police Station and City Hall public buildings from Hendrickson Public Sector Group in an amount not to exceed $228,871.32. 3. The Mayor and City Manager are hereby authorized to enter into the City's Standardized Contract for the project. 4. Staff is hereby authorized to use an additional $11,128.68 if necessary for contingency items as final systems are installed. 5. Funding for this acquisition shall be allocated from the Building Fund Account 420-70205-570. PASSED AND ADOPTED THIS 17TH DAY OF JULY, 2006. YES NO Haugen Haugen Dornbush Dornbush Erickson Erickson LeMalr LeMair Millar Millar Frank Boyles, City Manager I. \COU NC I L \RESOLUTI\ADM I N RE S\2006\fu rn itu re. DOOVWW. cityofpriorlake. com Phone 952.447.4230 / Fax 952.447.4245 PUBLIC WORKS . Hennepin County Public Works Facility Coon Rapids Public Works Facility Shakopee Public Works Facility Pine County Public Works Facility Ramsey County Public Works Facility Hugo Public Works Facility Golden Valley Public Works Facility Apple Valley Public Works Facility MUNICIPAL GOVERNMENT Hugo City Hall/Public Works City of Cambridge City of Edina City of Cottage Grove Minneapolis Public Housing Authority City of Eden Prairie Coon Rapids City Center/Coon Rapids Public Works Golden Valley City Hall Shakopee Public Utilities Commission City of Minneapolis Water Department City of Isanti Metro Transit Heywood Office Building Metro Transit Police City of Plymouth Metro Transit Operations City of Minnetrista East Metro Transit White Bear Lake City Hall City of Mound City of St. Paul Public Works Department Minneapolis Park and Recreation Wayzata City Center City of Rosemount St. louis Park City Hall COUNTY GOVERNMENT Anoka County Hennepin County Public Works Facility Chisago County Dakota County Hennepin County Centrex Communications Center Sherburne County Social Services Freeborn County Government Center Pine County Crow Wing County Pine County Courthouse Ramsey County Courts/Sheriff/Public Works Sherburne County Clerk of Courts Partial List of Clients PUBLIC SAFETY Anoka Police Department Brooklyn Park Police Department St. Louis Park Fire Stations Farmington Fire Stations Bloomington Fire Department Hennepin County Public Safety Facility Wayzata City Center/Police Department Brooklyn Center Fire Department Eden Prairie Police Department Mound Public Safety Facility South Lake Minnetonka Police St. Louis Park Public Safety Facility Brooklyn Center Police Department Excelsior Fire District Shakopee Fire Department Ramsey County Sheriff Golden Valley Public Safety Facility Woodbury Fire Department HOSPITAL & HEAL THCARE HCMC Administration Hennepin County Medical Examiner North Point Health Center HCMC Clinic Portals HCMC Electronic Health Records Sherburne County Public Health HCMC Family Medical Center MN International Health Volunteers JUDICIAL Hennepin County District Court US District Court Minneapolis Sherburne County Clerk of Courts Anoka County District Court Ramsey County District Court Freeborn County District Court NON-PROFIT Catholic Charities Wilder Research Foundation YMCA of Mpls and St. Paul Paul & Sheila Wellstone Neighborhood House Shalom Home College of St. Catherine HECUA HCMC Service League MN International Health Volunteers Frequently Asked Questions Q: Will purchasing under this contract meet the competitive bid requirements set by our council or board? A: Yes. Because of the contract bid process by the state's largest county government, councils and boards typically do not require an additional bidding process-now and always. Q: How do I know I'm receiving the best price? A: This contract is the result of a competitive bid against other manufacturers and their distributors as well as other Allsteel distributors and is based upon a large annual volume of purchases. This pricing consistently meets or beats pricing on "open bid" processes. Q: Who can purchase under this contract? A: Any county, city or municipal organization in Minnesota the Judicial Branch of the State of Minnesota government, and all MNSCU-affiliated organizations. Q: What products are covered under this contract? A: All products that are manufactured by Allsteel - recognized as one of the largest and highest quality commercial furniture manufacturers, Gunlocke - one of the nation's leading wood office furniture manufacturers and Trendwall- a leading non-progressive demountable wall system. Q: What is the minimum purchase to qualify for contract discounts? A: There are no minimums. Customers are entitled to the same discount regardless of the order size. Q: Are the discounts better on some products than on others? A: All series within a category i.e. systems and desking, storage, seating, etc. carry the same discount, enabling design consultants and public sector organizations to mix and match without concern for discount levels. Q: I've heard that under contracts like these that the furniture pricing is great but there are additional charges for freight, delivery, installation, project management and design support that can add significant costs. A: These services are automatically provided under this contract. * There is also a below-market labor rate for after-hours work and reconfigurations providing full price protection by eliminating variables. Q: What is Henricksen Public Sector Group? A: Henricksen PSG is a dedicated division comprised of experienced personnel to ensure consistent service levels, product knowledge, and sensitivity to the unique issues and stakeholders associated with public sector organizations. Q: Are there any other advantages to purchasing under a contract like this? A: Yes: o By enabling public organizations and their design consultants to decide up front which product lines and distributor they will work with, a "generic" space planning process is unnecessary. Generic space planning does not maximize the unique advantages of a furniture system. o This approach allows free movement throughout product lines and prevents "change order premiums." o It also guards against inferior quality substitutes and the time- consuming evaluation that often results from a public bid process. o There is a "built-in" insurance policy as public sector organizations share information on vendors, products etc. Henricksen PSG Partial List of Clients LIBRARIES Brookdale Library Hennepin County Ridgedale Library Hopkins Library Maple Grove Library Southdale Library St. Bonifacius Library Oxboro Library Penn Lake Library Willmar Library Minneapolis East Lake Library Eden Prairie Library St. Paul Rice Street Library Minneapolis Sumner Library St Peter Public Library Rockford Road Library Wayzata Library Ridgedale Library Minneapolis Central Library Edina Library Minneapolis North Regional Library Minneapolis Franklin Library EDUCATION Hennepin Technical College Maple Grove Senior High School Normandale Community College Math Building Normandale Community College Administration Normandale Community College Art Dept College of St. Catherine Osseo Schools (various locations) Willow Lane Elementary Osseo Elementary Elm Creek Elementary Park Center High School Minneapolis Community and Technical College Osseo Adult Education Center Shakopee Schools Administration Building MN Zoo School FEDERAL GOVERNMENT Air Force Bldg 761 Fort Snelling Cemetary