Title
Transportation Department recommending Amendment I to the Master Equipment Rental Agreement AGMT 07-1618 with Holt of California increasing contract amount by $210,000 to $300,000 for the term February 26, 2008 through February 28, 2011 for as-requested equipment rental for said Department.
RECOMMENDED ACTION: Approve.
FUNDING: Road Fund.
Body
BUDGET SUMMARY: |
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|
Total Estimated Cost |
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$300,000 |
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|
|
Funding |
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Budgeted |
$112,000 |
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New Funding |
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Savings |
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Other** |
$188,000 |
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Total Funding Available |
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$300,000 |
Change to Net County Cost |
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$0 |
** to be included in subsequent year budgets
Fiscal Impact/Change to Net County Cost:
Sufficient funding for equipment rental is included in the Road Fund budget for fiscal year 2008/2009 and will be included in the proposed budgets for the ensuing fiscal years. There is no net County cost.
Background:
The Department of Transportation Maintenance Division rents equipment when County-owned equipment is out of service, when it is more cost effective to rent equipment than to own it, or when efficiency of road maintenance work is increased by adding more equipment to an operation.
Master Rental Agreement for Equipment Rentals AGMT #07-1618 with Holt of California was approved for a three year term and an amount of $90,000 at the February 26, 2008 Board of Supervisors meeting, agenda, item 11. This Agreement was put in place because Holt of California has a variety of construction equipment including rollers, excavators, loaders and backhoes that meet the need to supplement County-owned equipment on a short term basis.
Reason for Recommendation:
When the Master Rental Agreement for Equipment Rentals with Holt of California was approved in February of this year, the amount was set at $90,000 based on historical use and anticipated needs for the term of the Agreement. During the spring and summer of this year, the Department of Transportation completed a slip out repair on White Meadows Road and work on the Rubicon Trail that required rental of equipment beyond the anticipated level. The Department is requesting approval of Amendment I to increase the Agreement by $210,000 to a total of $300,000. While it is not anticipated that the volume of rental in the next two years will be as high as this year, the increase is requested to allow sufficient balance to address unforeseen circumstances that require equipment rental.
The Purchasing Agent has determined that no competitive selection process is required for equipment rental because the Department of Transportation contracts with multiple equipment rental firms. Additionally, the Purchasing Agent, with the concurrence of the Chief Administrative Officer, has determined that it is not necessary to engage an individual for outside review for the purposes of renting equipment.
Action to be taken following Board approval:
The Chairman will sign Amendment I to Master Rental Agreement for Equipment Rentals AGMT #07-1618. The Board Clerk will return one original to the Department for further processing.
Contact: Tom Celio x 4905
Concurrences: County Counsel, Purchasing Agent