TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:July 2, 2024
SUBJECT: Workspace Renovation and Technology Upgrade Pilot (MI 2666) RECOMMENDATION:
1. Approve a piggyback agreement with BKM Office Environments (BKM) (Camarillo, CA), using Steelcase Sourcewell (formally National Joint Powers Alliance) cooperative purchasing agreement in an amount not to exceed $509,951.85 for a workspace renovation and technology upgrades pilot program, with $463,917.59 for project costs and $46,034.26 as contingency for unexpected design modifications and related equipment.
2. Authorize expenditure for FY 2024-25 in the amount of $509,951.85 as follows: $378,759.53 from A/C #001-3570-612-3300 (General Fund - Management and Support/Equipment Less Than $5,000), $94,779.38 from A/C #001-3570-612-8400 (General Fund - Management and Support/Equipment More than $5,000), $32,837.94 from A/C #001-3570-612-5510 (General Fund - Construction/Office Reconfiguration), $3,575 from A/C #001-3570-612-5300 (General Fund - (Management and Support/Design).
3. Approve budget appropriation for FY 2024-25 in the amount of $509,951.85 from A/C #001-0000-311-0000 (General Fund – Fund Balance) as follows: $378,759.53 to A/C #001-3570-612-3300 (General Fund - Management and Support/Equipment Less Than $5,000) $94,779.38 to A/C #001-3570-612-8400 (General Fund - Management and Support/Equipment More than $5,000) $32,837.94 to A/C #001-3570-612-5510 (General Fund - Construction/Office Reconfiguration), and $3,575 from A/C #001-3570-612-5300 (General Fund - (Management and Support/Design).
4. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
Workspace Renovation and Technology Upgrade Pilot (MI 2666) July 2, 2024
FINANCIAL IMPACT:
$509,951.85 Increase to FY 2024-25 General Fund Budget. An increase of $509,951.85 to the Adopted FY 2024-25 General Fund Budget is requested for the workspace renovation and technology upgrades pilot program.
BACKGROUND:
The Facilities Division is responsible for the procurement, installation, maintenance, and modifications to workspaces throughout City Hall and other City facilities. Office workspace furniture is purchased as needed through office furniture vendors as new facilities or workspaces are constructed or as furniture reaches the end of its useful life. City Hall currently uses Haworth standard modular systems furniture. The Thousand Oaks Library, Newbury Park Library, Municipal Service Center, and Hill Canyon Treatment Plant use the Herman Miller standard modular systems furniture.
Most of the existing workspace furniture at City Hall is original, with minor updates made over the past 30 years. As furniture and workstations approach the end of their useful life, there is an opportunity to redesign workspaces to be more functional, versatile, and reflect modern office environments. There is also an opportunity to establish a uniform modular systems standard and design layout across City facilities, tailoring to the needs of each work group while maintaining a core design and theme. A uniform modular systems standard can be brought to other work groups through future workspace modernization projects.
The primary goals of this workspace modernization and technology upgrades pilot program are to better support hybrid meeting space interfacing between customers, consultants, and staff; create areas suitable for intra- and inter- departmental collaboration; and improve ergonomics in the workplace. The observations gleaned from this pilot will help inform future modernization efforts at City Hall and other City facilities.
Staff researched possible office systems, had meetings with other cities and their staff, and determined that Steelcase was the optimum product due to its versatility, integration with technology, and ergonomic design. Staff visited a showroom to confirm that this was the desired product to meet City staff needs. BKM is the area’s sole authorized and licensed seller of Steelcase products in Ventra County.
BKM routinely provides consulting services to potential customers without charge or obligation to purchase. No purchases have been made as of yet; staff worked with BKM on design ideas, possible configurations and layouts.
Workspace Renovation and Technology Upgrade Pilot (MI 2666) July 2, 2024
DISCUSSION/ANALYSIS:
After identifying Steelcase as the preferred furniture system, staff worked with BKM design consultants from October 20, 2023, to June 5, 2024, on the design and layout plans for the proposed pilot program. The total cost for design consultation, should the City choose to go forward with the pilot program, would include $3,575 for 55 hours of consultation. The program includes the Planning Division in Community Development, an improved workstation and hybrid meeting area at the Permit Counter, and new task seating in Public Works. The pilot will be refined over time as feedback is received from staff. The workspace modernization could be later applied to other work groups and facilities as part of future projects.
Maintaining quiet work areas is a key goal of the proposed plan. Virtual and hybrid meetings have become the norm to interface with applicants, fellow staff members, and consultants since the pandemic. Although efficient and convenient, the simultaneous meetings in close proximity can be disruptive.
As part of the pilot program, workstations will be reconfigured to accommodate a variety of collaborative work areas. The newly created collaborative spaces are designed to hold in-person and hybrid meetings, away from personal workstations, thereby reducing audible disruptions near work areas. Staff members on the same call will be able to make use of “huddle rooms” equipped with capable technology to join a hybrid meeting. The proposed design leverages the City's investments in mobile technology that will continue to be deployed to staff as existing devices reach end of useful life.
The pilot project also includes an auxiliary workstation near the Permit Counter with an enclosed meeting pod. The meeting pod will be used by the on-call planner, responsible for providing technical assistance at the Permit Counter. The proximity to the Permit Counter will allow the on-call planner to assist customers quickly and even cue up hybrid meetings spontaneously.
In addition to the workspace pilot in the Planning Division, staff identified the need for a hybrid conference room in the City Manager’s Office and new task chairs for the Public Works Department. The hybrid conference room will be used as a demonstration of the new collaborative work areas that could be developed in other work groups. The task chairs will replace equipment that has reached the end of its lifecycle.
Pursuant to Thousand Oaks Municipal Code (TOMC) Section 3-10.203(b), the City may “piggyback” onto, or join, an existing written purchase contract obtained through a competitive bidding process prepared and awarded by another local, state, or federal government agency. On July 27, 2023, Sourcewell, a local Workspace Renovation and Technology Upgrade Pilot (MI 2666) July 2, 2024
government unit and service cooperative in the state of Minnesota, issued public solicitation #091423 for Furniture Solutions with Related Accessories and Services. On December 1, 2023, Sourcewell awarded Steelcase a contract with a four-year term to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts, of which the City is a Participating Entity (Attachment #1). BKM completed a Participating Dealer Agreement with Steelcase, thereby extending the terms of the contract to allow participating agencies to use BKM as a local authorized dealer. Through the cooperative purchasing contract, the City can execute an agreement for the purchase and installation of office equipment and furniture. A new agreement can be signed into effect using this contract as a “master contract,” whose terms will be valid through the life of any new agreements signed before the master contract expiration date of December 4, 2027. The cooperative agreement will meet the City’s needs for an office supplies distributor at a competitive market value (Attachment #2).
BKM has a demonstrated history of successful space planning and furnishing projects throughout Ventura County with other public agencies including municipalities, school sites, and hospitals. BKM is the authorized dealer of Steelcase products for Ventura County. Steelcase products are technology- forward furnishings, with modularity and flexibility at the core of their design, which are key elements of staff’s vision. BKM offers services that include design consultation, project management, and workspace installation. A majority of the selected products Steelcase offers for this program are listed at a 40 percent - 64 percent discount (Attachment #3).
The proposed agreement authorizes staff to procure the workstation furniture and technology needed to implement the pilot program from BKM.
The following is a cost breakdown for the project and project components (Attachment #4):
Planning Division & Permit Center
Furniture / Equipment $336,504.48
Sales Tax $ 26,319.76
Labor $ 26,526.67
Contingency (10%) $ 38,935.09
Total $428,286.00
Workspace Renovation and Technology Upgrade Pilot (MI 2666) July 2, 2024
City Manager’s Office – Conference Room
Furniture / Equipment $ 21,139.31
Sales Tax $ 1,705.87
Labor $ 2,390.00
Contingency (10%) $ 2,523.52
Total $ 27,758.70
Public Works Task Chairs (52)
Furniture $ 41,727.40
Sales Tax $ 3,093.10
Labor $ 936.00
Contingency (10%) $ 4,575.65
Total $ 50,332.15
Totals
Furniture / Equipment $399,371.19
Sales Tax $ 31,118.73
Labor $ 29,852.67
Design Fee $ 3,575.00
Subtotal $463,917.59
Contingency (10%) $ 46,034.26
GRAND TOTAL $509,951.85
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Council members who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Council member within the preceding 12 months. Council members are prohibited from accepting, soliciting, or directing a campaign contribution of more than $ 250 Workspace Renovation and Technology Upgrade Pilot (MI 2666) July 2, 2024
aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially interested participant is prohibited from contributing more than $250 (aggregated) to a Council member during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Joshua Koenig-Brown, Facilities Manager
Alexander Wallsten, Assistant Analyst
Attachments:
Attachment #1 - Sourcewell Agreement #091423-STI
Attachment #2 - Sourcewell Participation Addendum
Attachment #3 - Products and Pricing
Attachment #4 - BKM Sales Quotes
FIN:201-10\aw\jkb\H:\COMMON\Council\2024\Facilities\06182024 Workspace Renovation & Technology Upgrades Pilot.docx