Staff ReporttowN oc MEETING DATE: 11/17/15
ITEM NO:
tos�aos COUNCIL AGENDA REPORT
DATE: NOVEMBER 9, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
d
SUBJECT: AUTOMATED MATERIALS HANDLING SYSTEM
A. AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT
WITH BIBLIOTECA, LLC IN THE AMOUNT OF $134,025 FOR AN
AUTOMATED MATERIALS HANDLING SYSTEM FOR THE LOS GATOS
LIBRARY
B. AUTHORIZE A BUDGET ADJUSTMENT WITHIN THE CLELLES NESS
TRUST FUND IN THE AMOUNT OF $59,025
RECOMMENDATIONS:
1. Authorize the Town Manager to execute an agreement with Biblioteca, LLC in the
amount of $134,025 for an automated materials handling system for the Los Gatos
Library; and
2. Authorize a budget adjustment within the Clelles Ness Trust Fund in the amount of
$59,025
BACKGROUND:
The new Los Gatos Library opened its doors in February of 2012. Since that time, circulation
has increased to more than 607,000 items per year. Currently, Library staff members check-in
and sort each of these items by hand, at a rate of more than 1,700 items each day. This is a
tedious and repetitive process requiring a large amount of staff time. Many of the libraries in
neighboring cities have automated a significant portion of this process with great success. These
libraries have found automated materials handling provides:
• Significant productivity gains through reduction in key labor intensive workflow
processes
• Enhanced customer service with 100% check-in accuracy
• Reduced materials loss
• Detailed and integrated reports and configuration tools
• Streamlined patron self check-in
PREPARED BY: HEIDI MURPHY
Library Director
Reviewed by: /Assistant Town Managerown Attorney
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: LOS GATOS LIBRARY AUTOMATED MATERIALS HANDLING SYSTEM
NOVEMBER 9, 2015
BACKGROUND (Cont'd):
• Streamlined staff check-in
• Reduced incidents of staff repetitive motion injuries
• Increased capacity for staff to complete higher-level and more varied tasks
DISCUSSION:
On September 10, 2015, Library staff issued a Request for Proposal for an automated materials
handling (AMH) solution for the Los Gatos Library that would automate the check-in and sorting
process of Library materials. The Library received four proposals for the project from: 3M (now
Biblioteca and hereinafter referred to as such), Lyngsoe Systems, P.V. Supa, and Tech Logic. A
panel of four staff raters from three Town departments judged these proposals on a 100 point
scale, using the following criteria:
• Vendor reputation, experience, and qualifications in the Library AMH field (5 points)
• Vendor's references for similar projects (5 points)
• Design, functionality, and suitability of the proposed solution (15 points)
• Suitability of on-site and remote service support provided to the Library (15 points)
• Clarity and completeness of the submitted proposal, and adherence to the specifications
(15 points)
• Ability to deliver requested products in accordance with the Library's timeline (20
points)
• Affordability of the proposed system with clearly defined annual costs (25 points)
In addition to the reference checks, the raters conducted site visits to local libraries that are using
each of the four proposed systems. Biblioteca, LLC, came out as the highest ranking vendor for
the Los Gatos Library based upon the criteria mentioned above and set forth in the Request for
Proposal.
The proposed solution offers both an automated system for the public to return Library materials
at one existing book drop and maintains one traditional book drop. The traditional book drop
will allow patrons who are not ready for this change to continue to use the Library return in a
manner with which they are familiar. However, the staff side of this traditional book drop will
be automated, with staff members able to feed materials from the bin into AMH system for
quicker, more accurate, and less labor intensive check-in and sorting. Use of the AMH system
will reduce staff time currently being spent on material check-in and processing, allowing for
this time to be reallocated to enhance the Libraries innovative programs and front-line customer
service.
NEXT STEPS:
Upon approval of the contract, Biblioteca, LLC will begin construction of the AMH system
immediately and complete installation during the holiday closure period from December 24,
2015 to January 1, 2016. As part of the installation project, the Biblioteca system will
synchronize data collection from Library security gates, self -checks, and the new AMH system.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: LOS GATOS LIBRARY AUTOMATED MATERIALS HANDLING SYSTEM
NOVEMBER 9, 2015
NEXT STEPS (Cont'd):
This will streamline Library data collection for door counts and circulation, and provide
additional tools for Library staff to analyze these data.
It is projected that the AMH system would be in full operation by January 2, 2016, with
continued staff training for optimization of the system. We anticipate Library Pages would be
able to take on new and varied duties such as program set-up and support for our librarians and
inventory checks by February 2016.
CONCLUSION:
As a way to enhance productivity and redirect staff time to the Library's innovative programs
and front-line customer service, staff recommends that the Town Council authorize the Town
Manager to execute an agreement with Biblioteca, LLC (Attachment 1) in the amount of
$134,025 for an automated materials handling system for the Library. To fund this project, staff
recommends that the Town Council approve a budget adjustment within the Clelles Ness Trust
Fund in the amount of $59,025.
ENVIRONMENTAL ASSESSMENT:
The Council's discussion of this matter is not a project defined under the California
Environmental Quality Act (CEQA), and no further action is required.
FISCAL IMPACT:
Money for this project is available in the Clelles Ness Trust Fund (Fund 713). The Clelles Ness
Trust Fund was established in 1961 by Ansten R. Ness, M.D. as a memorial to his wife, Clelles
Ness. The original intent of the fund was to use interest and income from the trust to purchase
library materials and services not ordinarily available from public funds such as special art
books. In 1999 the Town began to plan for a new Library and therefore a new agreement was
made with the daughter of Clelles Ness to use the trust monies for a new Library facility. Per
this agreement, the balance of the trust fund may be used to purchase items for the new building,
such as furniture, shelving, and equipment. The current available balance in this trust fund is
$166,470.
The Library originally budgeted $75,000 from this trust for fiscal year (FY) 2015/16 to complete
a passive noise reduction project in the building. However, an AMH system for the Library is a
more urgent need with a greater cost benefit for both operations and customer service.
Increasing the budgeted amount of money for this project from the Trust by $59,025 will fully
fund the $134,025 project. After the completion of this project, the trust will have a remaining
balance of $32,445 to be used for future projects, including the passive noise reduction project.
The remainder of the passive noise project is expected to be less than $50,000. Library staff
would identify additional sources of funds, either trust accounts or Friends of the Library
support, to make up any remaining costs for the passive noise project in FY 2016/17.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: LOS GATOS LIBRARY AUTOMATED MATERIALS HANDLING SYSTEM
NOVEMBER 9, 2015
FISCAL IMPACT (Cont'd):
Beginning in FY 2016/17 there will be a reoccurring annual ongoing maintenance fee of
$11,747. The annual cost will be incorporated into the Library's annual operating budget during
the budget development process, and subject to Council approval at that time.
Attachment:
1. Draft Agreement for Services with Biblioteca, LLC
PURCHASE AND SERVICE AGREEMENT
THIS AGREEMENT is dated for identification this 17 of November, 2015 and is made by and
between TOWN OF LOS GATOS, a California municipal corporation, ("Town") and Biblioteca,
LLC, ("Supplier"), whose address is 3M Center, Building 225-4N-01, St. Paul, MN 55144-1000.
This Agreement is made with reference to the following facts. This contract will remain in effect
from November 18, 2015 to December 31, 2016.
I. RECITALS
1.1 Town sought proposals for the purchase and service described in this Agreement, and
Supplier was found to be the most qualified and lowest price responsible supplier for this
purchase. During the selection process, supplier indicated its name change from 3M to
Biblioteca LLC.
1.2 Supplier informed the Town that it manufactures, installs, and services the 3M Intelligent
Return and Sorter FX product.
1.3 Supplier represents that it is a qualified and competent supplier of the items to be purchased
and serviced under this Agreement.
1.4 The Town desires to engage Supplier to provide an AUTOMATED MATERIALS
HANDLING SYSTEM for the Los Gatos Library.
1.5 The Supplier represents and affirms that it is qualified and willing to perform the desired
work pursuant to this Agreement.
II. AGREEMENTS
2.1 Supplies and Terms. Supplier hereby agrees to deliver to Town at 100 Villa Ave., Los
Gatos, CA 95030 the items and materials described in the Revised Pricing document
(Exhibit A), which is attached hereto and incorporated by reference. The terms and
conditions are as follows:
(1) Price. Town shall pay Supplier the amounts defined in Exhibit A, not to exceed
$134,025, which include sales tax and delivery charges. Payment shall be net 30
days from delivery.
(2) Delivery. The delivery of the items and materials shall be no later than December
28, 2015. Delivery shall be made between 8:00 a.m. and 6:00 p.m. on weekdays
that are not Town holidays or furlough days.
2.2 Time of the Essence. Prompt delivery of the items and materials is essential to this
Agreement.
2.3 Scope of Services. Supplier shall provide services as described in that certain PROPOSAL
submitted by 3M and sent to the Town on October 12, 2015, which is hereby summarized:
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
ATTACHMENT 1
• System manufacturing to align with Final Layout Drawing (Exhibit A, Page 2)
• System Delivery
• System installation, including the Command Center which centralizes data from
self -checks, AMH system, and door gates
• Staff training on system functionality, maintenance, daily operations, and reports
• One year system maintenance and warranty
2.4 Time of Performance. The services to be performed are as follows:
• System delivered December 21-28, 2015
• System installed December 28-31, 2015
• System training December 21, 2015 -January 7, 2016
• Systems maintenance and warranty December 21, 2015 -December 31, 2016
2.5 Compliance with Laws. The Supplier shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Supplier represents
and warrants to Town that it has all licenses, permits, qualifications and approvals of
whatsoever nature which are legally required for Supplier to practice its profession.
Supplier shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the
Code of the Town of Los Gatos.
2.6 Sole Responsibility. Supplier shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
2.7 Information/Report Handling. All documents furnished to Supplier by the Town and all
reports and supportive data prepared by the Supplier under this Agreement are the Town's
property and shall be delivered to the Town upon the completion of Supplier's services or at
the Town's written request. All reports, information, data, and exhibits prepared or
assembled by Supplier in connection with the performance of its services pursuant to this
Agreement are confidential until released by the Town to the public, and the Supplier shall
not make any of the these documents or information available to any individual or
organization not employed by the Supplier or the Town without the written consent of the
Town before such release. The Town acknowledges that the reports to be prepared by the
Supplier pursuant to this Agreement are for the purpose of evaluating a defined project, and
Town's use of the information contained in the reports prepared by the Supplier in
connection with other projects shall be solely at Town's risk, unless Supplier expressly
consents to such use in writing. Town further agrees that it will not appropriate any
methodology or technique of Supplier which is and has been confirmed in writing by
Supplier to be a trade secret of Supplier.
2.8 Compensation. Compensation for the supplies and materials delivered and for supplier's
professional services shall not exceed $134,025, inclusive of all costs. Payment shall be
based upon Town approval of each task.
2.9 Billing. Billing shall be by invoice within thirty (30) days of the rendering of the services
and shall be accompanied by a detailed explanation of the work performed by whom at
what rate and on what date. Also, plans, specifications, documents or other pertinent
materials shall be submitted for Town review, even if only in partial or draft form.
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.10 Availability of Records. Supplier shall maintain the records supporting this billing for not
less than three years following completion of the work under this Agreement. Supplier
shall make these records available to authorized personnel of the Town at the Supplier's
offices during business hours upon written request of the Town.
2.11 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Supplier. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.12 Independent Contractor. It is understood that the Supplier, in the performance of the work
and services agreed to be performed, shall act as and be an independent contractor and not
an agent or employee of the Town. As an independent contractor he/she shall not obtain
any rights to retirement benefits or other benefits which accrue to Town employee(s). With
prior written consent, the Supplier may perform some obligations under this Agreement by
subcontracting, but may not delegate ultimate responsibility for performance or assign or
transfer interests under this Agreement. Supplier agrees to testify in any litigation brought
regarding the subject of the work to be performed under this Agreement. Supplier shall be
compensated for its costs and expenses in preparing for, traveling to, and testifying in such
matters at its then current hourly rates of compensation, unless such litigation is brought by
Supplier or is based on allegations of Supplier's negligent performance or wrongdoing.
2.13 Conflict of Interest. Supplier understands that its professional responsibilities are solely to
the Town. The Supplier has and shall not obtain any holding or interest within the Town of
Los Gatos. Supplier has no business holdings or agreements with any individual member of
the Staff or management of the Town or its representatives nor shall it enter into any such
holdings or agreements. In addition, Supplier warrants that it does not presently and shall
not acquire any direct or indirect interest adverse to those of the Town in the subject of this
Agreement, and it shall immediately disassociate itself from such an interest, should it
discover it has done so and shall, at the Town's sole discretion, divest itself of such interest.
Supplier shall not knowingly and shall take reasonable steps to ensure that it does not
employ a person having such an interest in this performance of this Agreement. If after
employment of a person, Supplier discovers it has employed a person with a direct or
indirect interest that would conflict with its performance of this Agreement, Supplier shall
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
promptly notify Town of this employment relationship, and shall, at the Town's sole
discretion, sever any such employment relationship.
2.14 Equal Employment Opportunity. Supplier warrants that it is an equal opportunity employer
and shall comply with applicable regulations governing equal employment opportunity.
Neither Supplier nor its subcontractors do and neither shall discriminate against persons
employed or seeking employment with them on the basis of age, sex, color, race, marital
status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or
medical condition, unless based upon a bona fide occupational qualification pursuant to the
California Fair Employment & Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Supplier agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: one million dollars ($1,000,000) combined single limit
per occurrence for bodily injury, personal injury and property damage.
ii. Supplier agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his/her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Supplier shall provide to the Town all certificates of insurance, with original
endorsements effecting coverage. Supplier agrees that all certificates and
endorsements are to be received and approved by the Town before work
commences.
iv. Supplier agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which is
sufficient to insure Supplier for professional errors or omissions in the
performance of the particular scope of work under this agreement.
General Liability:
The Town, its officers, officials, employees and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of the Supplier; products and completed operations of Supplier,
premises owned or used by the Supplier. This requirement does not apply to
the professional liability insurance required for professional errors and
omissions.
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
ii. The Supplier's insurance coverage shall be primary insurance as respects the
Town, its officers, officials, employees and volunteers. Any insurance or
self -insurances maintained by the Town, its officers, officials, employees or
volunteers shall be excess of the Supplier's insurance and shall not contribute
with it.
iii. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Supplier's insurance shall apply separately to each insured against whom
a claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk Administrator.
3.3 Workers' Compensation. In addition to these policies, Supplier shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Supplier shall ensure that all subcontractors employed by Supplier provide the required
Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Supplier shall save, keep, hold harmless and indemnify and defend
the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of
performing work which may be occasioned by a willful or negligent act or omissions of the
Supplier, or any of the Supplier's officers, employees, or agents or any sub -contractor.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of a
subsequent breach of the same or any other provision of this Agreement.
4.2 Severability. If any term of this Agreement is held invalid by a court of competent
jurisdiction, the remainder of this Agreement shall remain in effect.
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
4.3 Warranty. Supplier shall remedy any defects due to faulty materials and/or workmanship
and pay for any damages to other work and/or existing facilities resulting therefrom which
shall appear within a period of one year from the date of recording of final acceptance.
4.4 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.5 Termination of Agreement. The Town and the Supplier shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written notice
of termination. In the event of termination, the Supplier shall deliver to the Town all
supplies and services scheduled to be delivered to Town within that fifteen (15) day period.
4.6 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Supplier.
4.7 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.8 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos Biblioteca, LLC
Attn: Town Clerk Attn: Mary Zilles
110 E. Main Street 3M Center, Building 225-4N-01
Los Gatos, CA 95030 St. Paul, MN 55144-1000
OR personally delivered to Supplier to such address or such other address as Supplier
designates in writing to Town.
4.9 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
4.10 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Supplier. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Supplier have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Heidi Murphy, Library Director
Approved as to Form:
Robert Schultz, Town Attorney
Biblioteca, LLC, by:
Mary Zilles, Bid and Contracts Manager
N:/MASTER/Agreements/Purchase and Service Agreement Template.rtf
The following information details the costs associated with purchasing the 3M AMH System products we propose for the
Los Gatos Library. These prices include installation, shipping, project management, training and a 12 -month
warranty/license.
PRODUCTS
QUANTITY
PRICE PER
EXTENDED
Year 5
Year 6
UNIT
PRICE
AMH
$9,179
$9,454
$9,833
3M Intelligent Return and Sorter FX
1
$88,763
$88,763
Includes:
$1,092
Years 2-6 Prepaid
$44,991
One Intelligent Return - Classic Exterior
$11,747
1 $11,747
1 $11,982
One Sided Sorter FX, with 6 Sort locations
1 $12,836
Years 2-6 Prepaid
$52,862
Six Standard Bins
Two Site VISIts
Installation
12 Month Warranty
Command Center Software, Enterprise — No Charge is' year)
Shipping
$1,575
Shipping is based upon the items and quantities shown above,
any changes may increase/decrease shipping costs.
TOTAL AMH SOLUTION:
$90,338
Add Staff Station and one conveyance
add
$23,273
Upgrade from "Classic"to 'Plus" Intelligent Return
add
4,948
Upgrade to Premium bins
add $600
$3,600
6
each
Add extended shelf kit
1
add $625
$625
Base Plate for Sorter
1
add $457
$457
TOTAL AMH WITH OPTIONS:
$123,241
Tax
8.75%**
$10,784
TOTAL AMH WITH TAX
$134,025
** Note: Tax will be included on the invoice at the current applicable rate.
Annual Service
Year 2
Year 3
Year 4
Year 5
Year 6
Base System
$8,999
$8,999
$9,179
$9,454
$9,833
Command Center, Enterprise
$999
$999
$1,019
$1,050
$1,092
Years 2-6 Prepaid
$44,991
With Staff Station
$11,747
1 $11,747
1 $11,982
1 $12,341
1 $12,836
Years 2-6 Prepaid
$52,862
LOS GATOS LIBRARY / AUTOMATED MATERIALS HANDLING SOLUTION EXHIBIT A
Final Layout with Staff Station
LOS GATOS LIBRARY / AUTOMATED MATERIALS HANDLING SOLUTION