City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: November 12, 2024
Report #:2410-3554
TITLE
Approval of Construction Contract No. C25190935A with Valhalla Builders in the Amount Not- to-Exceed $392,800 for Children’s Library as part of the Library Automated Materials Handling System Project, Capital Improvement Program Project LB-21000 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $39,280; CEQA Status – Exempt under Section 15070
RECOMMENDATION
Staff recommends that the Council:
1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C25190935A with Valhalla Builders, in the amount not to exceed $392,800 for the construction and installation of an Automated Materials Handling system pursuant to the Library Automated Materials Handling System Project, Capital Improvement Program Project LB-21000; and
2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Valhalla Builders, for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $39,280.
BACKGROUND
The Library Department has made a significant investment in Radio Frequency Identification (RFID) tagging of their entire collection. Installing an Automated Materials Handling (AMH) System leverages that RFID investment to improve overall library system efficiency and speed up the process of moving materials to shelves for library patrons’ hold requests. An AMH system can speed materials processing and reduce staff time needed for processing books and media; it also decreases the likelihood of repetitive strain injury for staff. Staff time would be freed from processing materials manually to focusing on public projects and revenue generating projects.
AMH systems were installed at the Mitchell Park and Rinconada Library branches as part of projects funded by Library Bond Proposition Measure N, and they have proven to increase staff
efficiency at the City's two largest branches. Measure N funded the construction of Mitchell Park Library, historical renovation of Rinconada (formerly Main) Library, and remodel of Downtown Library. AMH systems were installed at Mitchell Park Library and Rinconada Library in 2014.
ANALYSIS
Public Works Engineering staff studied the feasibility of installing AMH systems at the remaining three branches: Children’s Library, Downtown Library, and College Terrace Library. Though smaller than Rinconada and Mitchell Park in square footage, Children's Library has a high circulation rate of library materials. It was determined that adding an AMH system at Children’s Library would have a true benefit given the cost, space constraints, and staff efficiency benefits.
The Children's Library AMH System Project will modify the existing sorting room for installation of the new AMH system. The scope includes installing a six-bin sorting AMH system with a public interior return slot and a public exterior return slot with an ADA compliant pathway to the sidewalk. Staff recommends approval of Contract No. C25190935A1 to construct and install an AMH system.
Solicitation Process
On April 5, 2024, a notice inviting formal bids for the Children's Library Automated Materials Handling System Project was posted on the OpenGov, the City’s eProcurement platform. The bidding period was 25 days. A mandatory pre-bid meeting was held on April 17, 2024, and four potential bidders were present. Only one bid was submitted on April 30, 2024 and exceeded the City’s budget. The City decided to rebid the project with changes to the Invitation of Bids (IFB) including additional as-builts information and reformatting of the Bid Form. Public Works Engineering staff also contacted local companies to raise awareness about the project.
The City issued a rebid of the project on July 31, 2024. Another notice inviting formal bids for the Children's Library Automated Materials Handling System Project was posted on the OpenGov. The bidding period was 37 days. Bids were received from three contractors on September 6, 2024, as listed in the attached Bid Analysis in Attachment A.
Table 1: Summary of Invitation of Bids
Project Bid Name/Number Children’s Library Automated Materials Handling System Project-REBID, IFB
#190935A
Proposed Length of Project 200 calendar days
Number of Bid Packages Downloaded by
Contractors
24 Number of Bid Packages Downloaded by
Builder’s Exchanges
0 1 Valhalla Builders, Children’s Library Automated Materials Handling System Project, Contract #C25190935A; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/staff-reports-all/2025/c25190935a-valhalla- builders_cc_11.12.2024_staff-report-003.pdf
Table 1: Summary of Invitation of Bids
Total Days to Respond to Bid 37 days
Mandatory Pre-Bid Meeting Yes
Number of Company Attendees at Pre-Bid
Meeting
4 Number of Bids Received 3
Base Bid Price Range $392,800 - $685,999
Public Link to Solicitation https://procurement.opengov.com/portal/pa lo-alto-ca/projects/107994
The apparent low bidder was selected based upon the base bid only. The bids ranged from $392,800 to $685,999 and from 6% to 85% above the engineer’s estimate of $369,549. Staff reviewed the submitted bids and recommends acceptance of the base bid submitted by Valhalla Builders, in the amount of $392,800, and that Valhalla Builders be declared the lowest responsible bidder. The construction contingency amount of $39,280, which equals 10% of the contract value, is requested for related, additional, but unforeseen work which may develop during the project, implemented via City-approved Change Order.
FISCAL/RESOURCE IMPACT
Funding for the installation of the AMH system is available in the Fiscal Year 2025 Adopted Capital Improvement Program budget for the Library Automated Materials Handling System project LB-21000. A total transfer of $540,000 from the Library Development Impact Fee Fund was added to CIP LB-21000. The equipment will cause a slight increase in electric bills and will require annual equipment maintenance. Ongoing operating costs are estimated to be about $20,000 and anticipated to increase by 3 percent annually thereafter.
STAKEHOLDER ENGAGEMENT
Public Works Engineering staff consulted with the Library staff on the operation and workflows at each Library branch in order to determine the feasibility of an AMH system at each location.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) under section 15070 of the CEQA Guidelines as the project scope involves only the repair, maintenance, and/or minor alteration of existing facilities. No further environmental review is necessary.
ATTACHMENT
Attachment A: Bid Analysis
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer