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  Agenda Item   25.    
City Council Meeting
Meeting Date: 06/16/2020  
FROM: Bill Gallardo

Subject:
Construction Contract for Civic Center Space Improvements, CIP No. 7955
RECOMMENDATION
  1. Award a construction contract to PeopleSpace for $180,805 for the installation of walls and doors for office construction; and
  2. Authorize City Engineer to approve change orders up to 10% of the contract amount.
BACKGROUND/DISCUSSION
On July 16, 2019, City Council approved an agreement with PeopleSpace for $347,606 to design and construct 3rd floor office space improvements to enhance employee workflows, efficiency and collaboration, which included:  
 
  1. New updated office workstations to improve both safety and the ability to reconfigure spaces as time goes on; and
  2. Consolidating staff from Management Services, Community Services, and Administrative Services.

The overall scope of the 3rd floor space improvements has always included the construction of offices for mid-managers. Currently these managers are situated in open cubicles that do not foster the necessary enclosed privacy for managers to work and converse with employees and community members. This contract also includes building two small conference rooms in the modified, open cubicle environment to provide fixed spaces for collaboration, as well as a dedicated “mother’s room” to meet the needs of the organization in providing a comfortable and convenient option for employees in need of this accommodation. Due to time-sensitivity in obtaining the best pricing for the office furniture, the construction of private offices was not included in the July 16, 2019 agreement since the design had not yet been completed.

The design for the walls has now been completed and staff has obtained a proposal from PeopleSpace for construction. The proposed cost is $180,805 and includes the construction of new demountable walls and doors per the attached drawings. These demountable walls will allow for adjustments to be made more easily in the future, compared to installing more permanent walls using drywall. Since PeopleSpace is the approved vendor for the current cubicle workstation installation, staff recommends awarding a sole source contract for this construction project to PeopleSpace to maintain design continuity and to provide seamless coordination among projects. Finally, since PeopleSpace was selected as the most qualified firm for the overall project from a number of proposals received in April 2019, staff feels that the contractor selection process has been fulfilled. 
COMMISSION/COMMITTEE RECOMMENDATION
Finance Committee received an oral report on this item at their June 9, 2020 meeting since the staff report was not ready at the time the agenda was published and delayed approval of this item could delay the schedule.  Finance Committee wanted to better understand the entire project and recommended that this item be presented at City Council Study Session on June 16, 2020 for discussion.
FISCAL IMPACT/SUMMARY
This scope of work is included in Capital Improvement Program Project No. 7955.  There are sufficient funds in said project to fund these services.  The approved CIP project budget of $835,000 is funded by the Fixed Asset Replacement Program.  There will be no General Fund impact.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Michael Ho, Deputy Public Works Director / City Engineer
Concurrence:  Tony Olmos, Public Works Director
 
Attachments
Contract
Proposal
Design Drawings

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