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    8.    
Finance Committee
Meeting Date: 09/13/2022  
FROM: Bill Gallardo

Subject:
Amendment No. 2 with PeopleSpace for Civic & Cultural Center 3rd Floor Redesign and Furniture Purchase
RECOMMENDATION
  1. Approve Amendment No. 2 with PeopleSpace in an amount not-to-exceed $250,000 - 265,000 (estimate) resulting in a total contract not-to-exceed $754,000 - 769,000 (estimate); and
  2. Authorize Public Works Director to approve change orders up to 5% of the not-to-exceed amount; and
  3. Appropriate up to $15,000 from the Fixed Asset Replacement Fund (182) to the Capital Improvement Program (CIP) Budget to complete the project. 
BACKGROUND/DISCUSSION
The Civic & Cultural Center 3rd Floor Redesign Project has been an operational goal for over ten years and began to be implemented in 2018. At that time, a cross-departmental working group was formed to determine the needs of the organization, and how those needs relate to offering premier customer service to the Brea community.

On July 16, 2019, the City Council authorized a contract in the amount $347,606, plus a 10% contingency, with PeopleSpace to implement Phase 1 of the Civic & Cultural Center 3rd Floor Redesign Project. This phase included the purchase and installation of approximately 90 workstations for staff working on the 3rd floor. Since the existing cubicle furniture on the 3rd floor was original to the building, the main goal of this phase was to bring the current office up to date to improve safety and reduce potential hazards of old infrastructure. An additional goal was to bring individuals from the same teams closer together, as many were separated, to increase efficiency, collaboration and innovation.

On August 18, 2020, the City Council authorized Amendment No. 1 to implement Phase 2, bringing the aggregate not-to-exceed amount to $503,468, plus a 5% contingency. This phase included the purchase and installation of office furniture for mid-level managers, as well as additional furniture for collaborative spaces and meeting rooms across the 3rd floor. 

City Council authorized funding for Phase 3, the final phase, as part of the Capital Improvement Program for Fiscal Year 2021-22. Staff is now seeking City Council approval to amend the original contract to implement Phase 3. This final phase would include purchasing furniture for the remaining existing offices on the 3rd floor to achieve consistency with the recent improvements and a professional, yet affordable, aesthetic across City offices. This would complete the project and provide office furniture needs for the next decade or more. 

PeopleSpace recently made staff aware that the product manufacturer is anticipating an overall pricing increase of 15% effective October 1, 2022, which could equate to roughly $40,000 in additional charges. Staff has been working with PeopleSpace to expedite ordering product in advance of this price increase, however, staff is still awaiting the final and complete cost estimate. Staff is estimating a final cost proposal will be available by the time Finance Committee meets and will be able to facilitate a discussion at that time. Currently, staff is anticipating the cost to be near the CIP budget amount of $250,000, but due to other cost increases over the past year related to supply chain issues there is a chance prices could exceed that original budget. If so, staff's recommendation would be to appropriate additional funds to complete and close out this project, as opposed to deferring any purchases and risk additional price increases. 

When this project was first implemented, PeopleSpace was selected as the preferred vendor due to their participation in the County of Orange's competitive bid process. For this reason other local agencies have also recently utilized PeopleSpace to refurnish their office spaces, including the cities of La Habra, Laguna Niguel, Westminster, and Buena Park.
SUMMARY/FISCAL IMPACT
City Council has already authorized $250,000 for Phase 3 of this project to be included in the Capital Improvement Program. Upon receipt of the final cost estimate, staff will be able to determine if additional funds (up to $15,000 from the Fixed Asset Replacement Fund (182)) are needed to complete the project.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by: Jenn Colacion, Management Analyst and
Melissa Davis, Management Analyst
 
Attachments
Amendment No. 2 - Draft
Amendment No. 1
Original Professional Services Agreement

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