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Approve a contract with Metropolitan Van & Storage, Inc. for a three (3)-year term commencing March 1, 2024 and expiring February 28, 2027 in an amount not to exceed $150,000 to provide moving, storage, and inventory management services for the Department of Health & Social Services, Public Health Division; and Delegate authority to the County Administrator or designee to execute the Contract and any subsequent amendments, pending County Counsel concurrence, up to an aggregate of $74,999
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a Contract with Metropolitan Van & Storage, Inc. for a three (3)-year term commencing March 1, 2024, and expiring February 28, 2027 in an amount not to exceed $150,000 to provide moving, storage, and inventory management services for the Department of Health & Social Services, Public Health Division (“Agreement”); and
2. Delegate authority to the County Administrator or designee to execute the Contract and any subsequent amendments, pending County Counsel concurrence, up to an aggregate of $74,999.
SUMMARY:
The Public Health Division of the Department of Health & Social Services desires to relocate inventory, equipment, and other property stored separately in several buildings in Fairfield to a common storage area. The proposed relocation will consolidate Public Health Division property into professionally managed secure storage facilities, enabling the Department of Health & Social Services to better utilize vacated County building space. A local firm, Metropolitan Van & Storage, Inc. (“Contractor”) has been selected to provide the moving, storage, and inventory management services to relocate Public Health Division property to the Contractor’s secure storage facilities located at 2250 South Watney Way and/or 2290 Cordelia Road in Fairfield. In addition, the Contractor will provide eight (8) County vehicle storage stalls at the Contractor’s secure storage facility at 2290 Cordelia Road.
FINANCIAL IMPACT:
The initial term of this Agreement is a three-year term with a fixed rate commencing March 1, 2024 and expiring February 28, 2027, for $3,050 per month plus one-time moving costs of $9,345. The rent is comprised of $800 per month for eight (8) vehicle stalls, and $2,250 per month for approximately 1,500 square feet of storage space. If the 1,500 square feet are exceeded, the County will be charged $1.50 per square foot per month. Special projects shall be charged at a rate of $60.00 per hour and moves conducted outside of regular business hours will be charged at a rate of $90.00 per hour, with a four-hour minimum. The maximum amount for this Contract is $150,000. Additionally, the Agreement has an option to renew the Lease Term for an additional three-years, after applying a 5% increase to costs. Funding for the Agreement is included in Department of Health and Social Services FY2023/24 Working Budget. There is no financial impact to the County General Fund.
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2023/24 Working Budget.
DISCUSSION:
The Public Health Division of the Department of Health & Social Services wishes to relocate inventory, equipment, and other property from Public Health building locations at 520 Chadbourne Road (Kaiser facility), 435 Executive Court, 275 Beck Avenue, and 2101 Courage Drive in the city of Fairfield into a single warehouse at 2250 S. Watney Way, adjacent to the 275 Beck Avenue Health & Social Services campus. The 520 Chadbourne Road space, which contains approximately 3,000 square feet of inventory, is owned by Kaiser Permanente, who has requested that their space be vacated.
The Department of General Services, Real Estate Division reviewed several possible leasing opportunities to accommodate the Public Health moving, storage, and inventory management needs, including vacant warehouse and commercial building space within a five-mile radius of the Department of Health & Social Services Beck Avenue Campus in Fairfield. After reviewing possible locations and alternatives, it has been determined that the Contractor can provide the moving, secure storage, and inventory management services in the most efficient and cost-effective manner, eliminating the need for the County to provide personnel and equipment to manage the Public Health Division inventory. Additionally, of all the options, the Contractor’s storage facility is situated closest to the Public Health Division’s operational headquarters.
The relocation will free up space at four building locations and consolidate the Public Health Division’s emergency preparation inventory in secure storage facilities with professional inventory management and convenient access. In addition, the vacated space owned by the County will enable the Department of Health & Social Services to use remaining County building space more efficiently.
The Standard Contract requires the Contractor to move and relocate the inventory and securely store vehicles from the designated Public Health Division locations to the Contractor’s secure storage facilities in Fairfield. The total cost for moving, storage, and inventory management services shall not exceed $150,000 over the 3-year term of the Agreement and is detailed in Exhibit B of the Agreement (Attachment A).
The Agreement contains an option to extend the term at a fixed rate or terminate upon thirty-day advance notice to provide the County with maximum flexibility in managing its program operations.
ALTERNATIVES:
The Board of Supervisors may:
1. Choose not to approve the proposed Agreement; or
2. Choose to propose other terms and conditions for the Agreement, which will require additional negotiations with the Contractor.
These alternatives are not recommended as the proposed Contract provides suitable and cost-effective professional moving, secure storage, and inventory management services for the Department of Health & Social Services, Public Health Division.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the Contract as to form. The Department of Health & Social Services, Public Health Division has been involved in developing the proposed Contract terms to support its program operations and concurs with the Departmental recommendation.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION