Title
Community Development Agency, Transportation Division, recommending the Board approve and authorize the Chair to sign Agreement for Services No. 395-O1411 with Saba Holding Company, LLC dba Volvo Construction Equip & Services, in the amount of $200,000 for a term of three years for short-term rental of equipment used to support operations.
FUNDING: Road Fund (No Federal Funds).
Body
BUDGET SUMMARY:
Total Estimated Cost…………… $200,000
Budget - Current FY…………… $50,000
Budget - Future FY……………… $150,000
New Funding…………………….
Savings…………………………
Other……………………………
Total Funding Available………… $200,000
Change To Net County Cost…… $0
Fiscal Impact/Change to Net County Cost
Funding for equipment rental will be provided by the Road Fund for the Community Development Agency, Transportation Division (Division) road maintenance activities. It is included in the current fiscal year budget and will be budgeted in future fiscal years.
Background
The Division has several agreements with multiple companies to ensure availability of the equipment needed at the time of the job. Backup vendors are needed for the same type of equipment due to the increasing volume of demand on rental fleets today, which often depletes vendors' inventory during construction season. Multiple agreements also allows for choosing the best equipment to rent for a particular job, as some vendors do not carry all types of equipment.
Reason for Recommendation
The Division rents equipment when it is more cost effective to rent than it would be to own the equipment. The Division rents the equipment for a broad spectrum of activities including work on the Rubicon, changeable message sign board coverage, and heavy construction. Rental equipment is also needed to cover for the job when the Division's equipment breaks down.
This Agreement provides for short-term rental of equipment used to support operations for the Division. This Agreement will permit the Division...
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