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Community Development Services, Department of Transportation, recommending the Board approve and authorize the Chair to sign the following on-call agreements for equipment rental:
1) Agreement 286-O1811 with Herc Rentals Inc. in the not-to-exceed amount of $200,000, for a term to become effective upon execution and expiring three years thereafter; and
2) Agreement 273-O1811 with Holt of California in the not-to-exceed amount of $200,000, for a term to become effective upon execution and expiring three years thereafter.
FUNDING: Local Discretionary Funds and Road Fund. (No Federal Funding)
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DEPARTMENT RECOMMENDATION
Community Development Services, Department of Transportation (Transportation) recommending the Board approve and authorize the Chair to sign the following on-call agreements for equipment rental:
1) Agreement 286-O1811 with Herc Rentals Inc. (Herc) in the not-to-exceed amount of $200,000, for a term to become effective upon execution and expiring three years thereafter; and
2) Agreement 273-O1811 with Holt of California (Holt) in the not-to-exceed amount of $200,000, for a term to become effective upon execution and expiring three years thereafter.
DISCUSSION / BACKGROUND
Transportation's Maintenance and Operations unit (Maintenance) rents equipment when it would be more cost effective to rent than it would be to own the equipment such as equipment which is only needed for short periods for specialized or emergency projects. Additionally, Maintenance relies on rental equipment when department owned equipment is out of service. Types of equipment rentals include, but are not limited to: water trucks, compactors, bulldozers, excavators, paving rollers, sand blasting equipment and power tool equipment.
In September 2017, at the request of Transportation, the Procurement and Contracts Unit of the Chief Administrative Office (CAO) issued a Request for Proposal (RFP) for short-term equipment rental. Proposals were received from five (5) companies but all were deemed non-responsive and the RFP was cancelled. After discussion with the Purchasing Agent, Transportation decided to issue multiple on-call agreements with established firms that offer a wide selection of inventory in the local area.
ALTERNATIVES
The Board could choose to not approve the Agreements. Transportation would be unable or limited to perform necessary road maintenance.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have reviewed and approved the Agreements.
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
There is no change to net County cost associated with these Agreements. Maintenance has included rental equipment charges in the FY 2017-18 Adopted Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on two (2) originals of each Agreement.
2) The Clerk of the Board will forward one (1) original of each Agreement to the CDS Contracts and Procurement Unit for further processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Community Development Services, Department of Transportation